Cryptocurrency Technology Research Articles

Social cryptocurrencies as model for enhancing sustainable development

PurposeGrowing inequality and socioeconomic and environmental degradation concerns forces us to think about how innovative technologies can contribute to reduce this problem. This study aims to analyze the potential of social cryptocurrencies to enhance the community development and cooperation between small businesses of the near environment. The evolution of these technology-based schemes could be key factors for generating innovative social enterprises, improving the quality of life in the community; in this way generate a conceptual model to sustainable development, while being more transparent, efficient and scalable as they are supported by technological applications.Design/methodology/approachBased on an in-depth study of the relevant literature, a conceptual model was designed. The concept of social cryptocurrency is proposed as a new approach to virtual currencies for social purposes and sustainable development.FindingsThe key findings point out that actors such as innovation and social entrepreneurship will come together in a new generation of social currencies, extending cryptocurrency technology to social business domains.Research limitations/implicationsThe impact of this will result in a better quality of life for society and the achievement of several sustainable development goals. However, a limitation would be that its scope depends on certain characteristics of the local environment. Furthermore, the proposed model will require validation in later phases through social experiments.Originality/valueThe main contribution of this paper is in structuring a formal model that, based on empirical experiences and the use of the technology that underlies cryptocurrencies, proposes a set of constituent elements and characterizes them to contribute to achievement of sustainable development.

ТЕХНОЛОГІЯ БЛОКЧЕЙН У БУХГАЛТЕРСЬКОМУ ОБЛІКУ: ПЕРЕВАГИ ТА НЕДОЛІКИ ЗАСТОСУВАННЯ

The article reviews the possibilities and expected results of the potential transition of enterprises from traditional accounting with double entry to a unique triple system using blockchain technology. The essence of blockchain technology, its constituent elements and features of the triple record system are studied, as well as its comparison with the double record. The impact of using blockchain technology from two points of view: enterprises and stakeholders are considered. There are two scenarios: a partial transition to blockchain accounting of large corporations or a complete transition of all enterprises, regardless of size. The list of the main expected advantages of using the blockchain in accounting according to organizational and managerial, economic, qualitative, professional and technological aspects is indicated. It is considered how blockchain technology will make adjustments to such elements of the method of accounting as documentation, inventory, valuation, calculation, accounts, double entry, balance and reporting. The impact of blockchain technology on stakeholders such as tax authorities, auditors and banks has been analyzed, noting that in the event of a transition to triple accounting, they may experience significant changes in all financial processes and economic activities, deal with large-scale automation and transition to IT-based operations. Some problems and shortcomings that may arise in the process of technology implementation are highlighted. Emphasis is placed on the complexity of the transition to the system of triple records, as this will include radical changes in the way of accounting around the world. Recommendations for eliminating the identified shortcomings are given, namely that the main prerequisite for the introduction of triple accounting is to understand the inevitability of new changes in the digitalization of accounting, recognition of blockchain and cryptocurrency technology, study of best practices in other countries to develop regulatory framework and, accordingly, the creation of its own legislation. The need to eliminate a lot of misinformation about blockchain technology was emphasized.

Building a digital economy (the case of BRICS)

The main direction of our research on building a digital economy includes the introduction of blockchain and cryptocurrency in the BRICS countries; advantages, obstacles, and prospects of the digital economy; the impact of robotization on the economic development of countries. The digital transformation of the economy of the BRICS group can be facilitated by the use of blockchain technology. The study identified the main advantages, threats and directions for the creation and use of a new cryptocurrency (BRICScoin) and blockchain technology by the BRICS countries. The digital economy is on the agenda around the world today, it is a new paradigm for the development of countries’ cooperation, and can become a driver of their economic growth. On the basis of the analysis, the advantages, obstacles and recommendations for the development of digital transformation in the BRICS countries were identified. Research in the development of robotics has revealed the benefits and challenges of this process. The use of a mathematical model made it possible to conclude that the growth of an existing fleet of industrial robots in the country affects the growth of its economy. The further development of robotics in the country will help increase its economic potential, product quality and export of innovative high-tech products.

The new distributed digital technology world trade and MNEs: another step in the inventive process

Major innovations are about reducing transactions costs. This has been true since the beginning of the Industrial Revolution and it continues along the inventive process in the last 220 years. The innovative technology of blockchains and cryptocurrencies with smart contracts (distributed digital technology) has a potential for substantial reduction of transactions costs that are rooted in human nature. Like earlier transformational innovative technologies, such as the steam locomotive and the internet, the new distributed digital technology may create disruptions in the market today, but if successful it will increase welfare by transforming the way that people transact in the market in the future. The major feature of the new digital technology is that it makes it possible for individuals to match their supply and demand without intervention of organisations like firms, financial intermediaries and regulating agencies. The new digital technology gets us closer to the neoclassical perfect market model. Distributed digital technology progresses in a step-by-step fashion. The first step was the Bitcoin: electronic peer-to-peer cash transfers without the need for central regulations. A number of services, particularly those that can be traded digitally, are next in line. Two potential applications of distributed digital applications are global trade in services and to MNEs.

Cryptocurrency and Privacy - Disruptive Technology Disarray the Laws

Cryptocurrency’s disruptive technology gained significant and growing attention from policymakers across the globe for its increased use by the malicious users to undermine legal controls prescribed under the existing laws and regulations.The technology in the Cryptocurrencies among other technical intricacies includes Data Security involving dimensions such as ‘Integrity’, ‘Non-repudiation’, ‘Authenticity’, ‘Confidentiality’ etc. Data Privacy relates to provision of data control including prevention against data delays or removal and data disclosure. Privacy is related to individual while Cyber security on the other hand is more complex and includes the entire ecosystem. In the background as set above, the present work studies the structure and functionality of Bitcoin - the most popular Cryptocurrency in order to gain an understanding as to how the Cryptocurrency technology works with its players in the given platforms, what are the security and privacy threats involved in such technology. The work gives a glance at various cryptocurrency platforms with brief on technology use. The author opines that answers to some of these questions could be useful to take cognizance of the legal implications such technology creates. The most important thing is to comprehend what the technology can do and Cryptocurrency with its public distributed ledger based on blockchain technology and consensus protocols already made much inroads into financial and legal arena touching the core issues of Individual’s privacy rights and State’s law and financial security policies. The cryptocurrency technology has disrupted the existing laws and regulations calling for a global comprehensive approach from the policymakers. In the conclusion it is opined that technology involved in the cryptocurrency and its insights could be one of the guiding factors to the policymakers to frame effective regulations and control the illicit use of cryptocurrency technology.

Blockchain-driven supply chain finance solution for small and medium enterprises

Blockchain has attracted much attention in recent years with the development of cryptocurrency and digital assets. As the underlying technology of cryptocurrency, blockchain has numerous benefits, such as decentralization, collective maintenance, tamper-resistance, traceability, and anonymity. The potential of the block-chain technology (BT) is widely recognized in the financial field. Although some scholars have proposed the combination of blockchain and supply chain finance (SCF), the details of this combination is rarely mentioned. This study first analyzes the coupling between SCF and blockchain technology. Second, the conceptual framework of block-chain-driven SCF platform (BcSCFP) is presented. Third, the operation process of three SCF models on the BcSCFP is proposed. Finally, a case study combined with actual events is conducted. This paper has a positive practical significance in the operation and management of banks and loan enterprises.

SHARI’AH ORIENTED PRECIOUS METAL BACKED CRYPTOCURRENCY: FROM SHARI’AH ADVISORS’ AND FINANCIAL EXPERTS’ PERCEPTIONS

The suitability of assets-backed money has been the subject of considerable debate, although hampered in part by lack of theoretical and empirical evidence. Therefore, the motivation of this research is to investigate the perceptions of Shari’ah scholars and financial experts on the concepts and salient features of Shari’ah-compliant precious metal backed crypto-currency (PMC). To achieve this, this study adopted a qualitative method using semi-structured interview based on saturation technique. The results from Shari’ah advisors and financial experts indicated that the informants have differences of views on the assets-backed money, but they agreed that it ensures stability of money and adding the cryptocurrency technology is found to be desirable and recommendable. It is also found that PMC would be subjected to financial regulation challenges and using blockchain technology will increase the transparency. The informants agreed that PMC is closer to Maqāsid al-Shari’ah and there is some form of justice and equality compared to the current interest-based financial system. Therefore, the informants recommended the implementation of PMC.

Special issue “New Possibility of Cryptocurrencies and Digital-Community Currencies”

This special issue features the theme “New Possibilities of Cryptocurrencies and Digital-Community Currencies” by collecting five articles presented at RAMICS2019 held in Hida-Takayama, Japan. Community currencies, which can be understood as integrative communication media combining the economic domain and the social-cultural domain, have been actively practiced since the 1980s in Europe and North America and the late 1990s in Japan. Due to the progress of Blockchain/DLT, and QR code payment technologies and the diffusion of smartphones, cryptocurrencies and digital-community currencies (DCCs), in which the vision of CCs and the technology of cryptocurrencies are fused, have rapidly increased their presence and coexisted with national currencies as legal tender. The striking example of this trend is Facebook’s new digital coin called “Libra.” It can be understood not just as a blockchain-based stable coin for global payment system backed by multinational currencies, but also as a vast glocal digital-community currency to empower its billions of members larger than any national currency. To fully understand the new possibilities of cryptocurrencies and DCCs, we must reconsider the nature of currently dominant national currencies, particularly central banknotes, in the world. Controversially, inconvertible central banknotes are IOU entered on the liability side of the balance sheet of the central bank, but are also cash on the asset side of the balance sheets of all other economic agents. Tracing back the evolution of money, we conceive them as ‘informational money’ that integrates the properties of both material money and credit money. Their asset value is not endured as compulsory power forced by the laws of the state, but as self-generating purchasing power created by non-material self-fulfilling ideas such as custom and expectations. For CCs and Libra to persist, it is necessary to tempt users to follow the rules of self-fulfilling enjoyment or share to the future projection different from those of custom and expectations. The defect of Modern Monetary Theory (MMT) lies in overestimation of strength of self-generating value of central banknotes and neglecting the present trend of diffusing private money.

DAO, Blockchain and Cryptography

In Classical Athens, as well as in our modern digital era, governance has been achieved through tokens. Tokens enabled voting on projects, representation, and belonging. The Distributed Autonomous Organisation (DAO) launched on the basis of cryptocurrency and blockchain technology was conceived as a form of algorithmic governance with applications in the organisation of companies. The visionaries of the DAO envisaged, among other things, a new form of sociality, which would be transparent and fair and based on a decentralised, unstoppable, public blockchain. These hopes were dashed when the DAO was exploited and drained of millions of dollars' worth of tokens within days after launching. The conversation published in the present article is conceived as an interdisciplinary discussion about the phenomenon of the Decentralised Autonomous Organisation and its impact on perceptions of sociality. Topics include the idea of the DAO as an algorithmic authority, the lessons learned when the project failed, the revolutionary beginnings of cryptocurrency technology and its potential in voting technologies, as well as the changing notions of cryptography in light of cryptocurrency technologies.

Food Supply Chain Traceability using Block Chain

In this paper, the main idea is to have a transparent food supply chain by the use of blockchain technology. The architecture uses an authentication protocol which is similar to the protocol involved in the crypto currency technology. For this feature to be available in all the products a radio frequency identification (RFID)-based sensor was used. The architecture is built by having the cyber layer having the Blockchain and RFID sensor in the physical layer. The main idea of RFID is to provide real time monitoring of data by the use of a unique identifier. For a food supply chain to be transparent, every product has to have a proper link to the concerned origin and the status of the products. In order to achieve this blockchain provides a highly secured digital database for each of the food products. In order to prevent cyber-attacks different security analysis was being conducted at different architectural stages.

Cryptocurrency Technology and Financial Reporting

Cryptocurrency technology is considered as smart technology that would transform our way of doing business in the near future. Its unique features are said to be far superior than our existing business technology which mainly based on cash and credit, especially in time, security and cost. Nevertheless, its entrance into the business arena has also turns our existing systems of financial reporting and taxing upside down as both systems were moulded, formulated and evolved just to suit the systems of cash and credit. Therefore, the financial regulators and inland revenue boards should come out with a new system that can properly and fairly adapt to the technology of cryptocurrency, in order to secure the imbalances between financial application and its law and order.

Blockchain Technology and How It Will Affect Accounting in the Future

Rapid technology development nowadays brings out a major impact for many professions in the world. This phenomenon often called industrial revolution 4.0. This industrial revolution demand automation in various sectors, including in economic and financial sectors. In the financial sector, there is blockchain technology which becomes the basis technology of cryptocurrency and smart contract. This development could also affect the accounting profession, which required to follow technology development in the future. From this case, writers will discuss strength, weakness, opportunity, and the threat from the blockchain system and smart contract for accounting in the future. There will be a high demand for the blockchain system for companies since this technology make the transaction process could be more efficient, faster and secure. The research methodology that the writers use in this research is inductive reasoning with the qualitative method. The way data collected is using literature studies by using SWOT analysis framework. Keywords: Blockchain, Technology, Accounting DOI: 10.7176/RJFA/11-10-06 Publication date: May 31 st 2020

Cryptocurrencies Perception Using Wikipedia and Google Trends

In this research we presented different approaches to investigate the possible relationships between the largest crowd-based knowledge source and the market potential of particular cryptocurrencies. Identification of such relations is crucial because their existence may be used to create a broad spectrum of analyses and reports about cryptocurrency projects and to obtain a comprehensive outlook of the blockchain domain. The activities on the blockchain reach different levels of anonymity which renders them hard objects of studies. In particular, the standard tools used to characterize social trends and variables that describe cryptocurrencies’ situations are unsuitable to be used in the environment that extensively employs cryptographic techniques to hide real users. The employment of Wikipedia to trace crypto assets value need examination because the portal allows gathering of different opinions—content of the articles is edited by a group of people. Consequently, the information can be more attractive and useful for the readers than in case of non-collaborative sources of information. Wikipedia Articles often appears in the premium position of such search engines as Google, Bing, Yahoo and others. One may expect different demand on information about particular cryptocurrency depending on the different events (e.g., sharp fluctuations of price). Wikipedia offers only information about cryptocurrencies that are important from the point of view of language community of the users in Wikipedia. This “filter” helps to better identify those cryptocurrencies that have a significant influence on the regional markets. The models encompass linkages between different variables and properties. In one model cryptocurrency projects are ranked with the means of articles sentiment and quality. In another model, Wikipedia visits are linked to cryptocurrencies’ popularity. Additionally, the interactions between information demand in different Wikipedia language versions are elaborated. They are used to assess the geographical esteem of certain crypto coins. The information about the legal status of cryptocurrency technologies in different states that are offered by Wikipedia is used in another proposed model. It allows assessment of the adoption of cryptocurrencies in a given legislature. Finally, a model is developed that joins Wikipedia articles editions and deletions with the social sentiment towards particular cryptocurrency projects. The mentioned analytical purposes that permit assessment of the popularity of blockchain technologies in different local communities are not the only results of the paper. The models can show which country has the biggest demand on particular cryptocurrencies, such as Bitcoin, Ethereum, Ripple, Bitcoin Cash, Monero, Litecoin, Dogecoin and others.

Cryptocurrency (Blockchain) Technology as a Means of Leveraging the Nigeria Economy

Cryptocurrency is generally known to be a digital record of ownership of nominal balance which can be used to pay for transactions. Thus, for any transaction, the buyer gives instructions to transfer ownership of a certain amount of his balances tothe seller. The use of cryptocurrencies such as Bitcoin and Ethereum in performing online transactions has been on the rise andalmost accepted generally in the world. Africa as a continent is not left out in the adoption of blockchain and cryptocurrencies.Today, in 2019, the question of whether or not digital money can actually become a useful and secure part of the Nigerianeconomy is being seriously debated. This paper explores how cryptocurrency technology can be a means of leveraging theNigeria economy and its extremely large population.

Cryptocurrency and Privacy - An Introduction to the Interface

The largest and best-known Cryptocurrency in the global economy is Bitcoin but it is only one of approximately 2,000 cyptocurrencies in circulation today. A Bitcoin was worth 8,790.51 U.S. dollars as of March 4, 2020 and all the Bitcoins in the world were worth roughly $160.4 billion. In Bitcoin you don’t need to explicitly register or reveal your real world identity, but the pattern of your behavior might itself be identifying. This is the fundamental privacy question in a Cryptocurrency like Bitcoin leading to emergence of Privacy coins such a Monero and Zcash that utilize complex cryptography to achieve the greater Privacy levels with more anonymity features. However, in the zest for increased Privacy with focus on anonymity in Cryptocurrency transaction, the law and order issues are compromised wherein it would be near to impossible for the law enforcement agencies to track criminals dealing in money laundering, terrorist financing, tax evasion and other frauds by using Crypto currencies. In this background, it is necessary to understand “Cryptocurrency and Privacy” as an interface to better comprehends the subject of Cyptocurrency which is very dynamic in technology with multiple global implications on the economic and legal front. The present work aims to study Cryptocurrency in the context of Privacy. The foundational concepts and definitions of the two competing subjects: ‘Cryptocurrency and Privacy’ is taken up for better understanding the background of the interface. Tor, an anonymous communication network is referred in brief to state that the dilemma in the Privacy context is not unique to use of Crypto currencies technology in so far its negative effects are concerned . The conclusion suggest for finding an appropriate balance between an individual’s privacy and State’s security in Cryptocurrency technology.

Криптовалюта и технология блокчейн – новые реалии современной экономики

Криптовалюта и технология блокчейн – новые реалии современной экономики

Cryptocurrency, Stablecoins and Blockchain: Exploring Digital Money Solutions for Remittances and Inclusive Economies

For sizable populations in low- and middle-income countries (LMICs), remittances from abroad form significant portion of their income. The remittances are monies sent to them by their close relatives or friends who work as migrant workers in high income countries. The total remittance amounts have been steadily growing over the last several decades to hundreds of billions of dollars as of 2019 (World Bank). For some low-income countries, these funds account for as much as 10 to 15% of their annual GDP. As important as this source of income is for those living in LMICs, the transfer of money may involve untrusted third parties that charge hefty fees to facilitate such transfers. These fees can be anywhere from 5% to 10% of the total funds per transaction. Even if majority of these transactions occur without any problems, there is always possibility of fraud and theft resulting in loss of income for those who depend on such funds. The use of cryptocurrencies and blockchain technologies is an alternative to money transfers. Use of these technologies eliminate need for untrusted third parties in funds transfer operations. With increasing penetration of mobile phone technologies all, even those who may be “unbanked” are likely to have access to mobile phones. In such case, cryptocurrency/blockchain technology can be utilized for funds transfer to their mobile devices. There are at least two well-known cryptocurrency companies (Ripple and Stellar) that help in near instantaneous digital funds transfer for a tiny fraction of fees charged by banking industry and other money transfer operators; although their global reach is limited to high-income countries. What is needed in the LMIC case is an entity that has global appeal and reach. The recent announcement of a new cryptocurrency called “Libra” by Facebook may be one such candidate; given that Facebook has a vast social network spanning the entire globe with nearly 2.5 billion active users. That could help its cryptocurrency Libra as medium of exchange and cross-border funds transfer. In this paper we consider remittance operations with and without cryptocurrency and blockchain technologies in general and present pros and cons of Libra for cross-border payments and money transfers. We also present a brief discussion on challenges posed by global cryptocurrencies to central bank governing bodies all over the world and policy implications arising out of potential conflicts between sovereign currencies and future of global cryptocurrencies such as Libra.

Medical Applications using Blockchain and Machine Learning

Blockchain was particularly used in Cryptocurrency technologies. Prior to 20th century there was no other technologies for determining the health of a person naturally. At the dawn of the 21st Century machine learning played a vital role in determining the health of a person using various algorithms and natural language processing techniques. Now for every machine learning technique to work for it needs data. Data is very important as far as providing information is concerned. Data sharing plays a vital role in improving accuracy of techniques involved. Along the blockchain technology plays a vital role in this aspect. Thus, the merging of these two techniques involve provides highly accurate results in terms of machine learning with privacy and reliability of Blockchain technology. This technique uses natural language processing techniques which focuses basically mainly on healthcare techniques such as cancer detection, prediction of machines used in healthcare etc. Prior to healthcare which is used in blockchain it was used in cryptographic techniques only. Also, this technology can be used to provide medical suggestions to the doctors based on the condition of the patient. The accuracy of this method can be increased more using providing as much data as we can. This combination of Blockchain and machine learning algorithms can be used widely in healthcare, where the data is highly secured and there is no fear of data loss. This paper involves how combining these two technologies can be helpful in healthcare.

Current State and Development Trends of blockchain Technology in the Financial Sector

The article analyzes the main reasons for the slow adoption of blockchain technology, in particular, in the financial sector. The authors critically analyzed the main declared properties of blockchain technologies: trust, security, decentralization, immutable data storage, lack of intermediaries, hardware protection against attacks, and openness. The aim of the study are to show that these blockchain properties are overestimated, the expectations of its adoption are inflated, and the delays in its adaptation outside of cryptocurrencies, in particular, in the financial sector, are natural. The article is based on a methodology for the qualitative and quantitative analysis of scientific publications and statistical sources on the blockchain adaptation from the perspective of the theory of diffusion of innovations, the conditions and the specifics of economic and sociological approaches for consensus-building. The study resulted in the following new systemic findings. Blockchain and distributed ledgers are not fundamentally new technologies. In general, they do not have the properties of the immutable data storage, trust, anonymity, low transaction and adoption costs. All current consensus technologies have fundamental faults. Cryptocurrency technology is original, but it was a private experimental solution to a specific ideological problem of the libertarian political agenda. Consensus does not provide trust. Delayed blockchain adoption, in particular in traditional financial institutions, is natural, since the technology does not show better results than current digital solutions, and traditional economic institutions have greater public trust. The practical implications of the findings are that they may be used by investors.

Prerequisites for the Introduction of Virtual Currency (Cryptocurrency) Control in Ukraine

Observing the rapid uptake and active use of virtual currencies that are not found in every country in the world, regulators are asking questions about the ability to control and regulate their operations. Therefore, the article describes approaches to determining the economic nature of virtual currencies and analyzes their legal regulation and transactions with them in the world and in Ukraine. The status and official attitude of the regulatory bodies of different countries, consolidation of legislation and taxation of virtual currencies are reflected. In recent years, there have been significant changes in the attitude of most cryptocurrencies in most of the leading countries of the world, from “illegal payment” to “promising financial instrument”. The increasing interest of government in progressive innovation has led to an increase in the influx of new entrants (both individuals and institutions) who are actively using virtual currencies. Yes, cryptocurrencies have caused a lot of concern about the risks they may bring since the first digital currency, Bitcoin. Over a period of time, cryptocurrency exchanges have been steadily increasing their interest in underwriting to ensure the secure process of exchanging and buying cryptocurrencies, reducing theft. Virtual currencies contain a large amount of capitalization in terms of fiat currencies, but the disorder and even the unstable state of cryptocurrencies, as well as the lack of historical loss data, complicate the process of controlling their turnover. However, given the interest, popularity and attention of the media, many, including lawyers, political scientists, economists, are trying to understand the basics of technology and its implications for politicians and other departments. The development of blockchain-based cryptocurrency technology has been introduced in areas that have traditionally been widely regulated, such as capital raising and money transfer. Politicians and other government officials often try to apply laws that have been developed for decades for the latest technology. The US in each state has a different definition and approach to cryptocurrency transactions. A similar situation is observed in the international arena, where some countries have sought to promote the growth of technology and others have sought to remove technology from their jurisdiction. Therefore, the legal field of law requires in-depth research and analysis on virtual currency transactions, the development and implementation of a new cryptocurrency exchange rate verification mechanism that is similar to those existing for traditional financial processes.