Transactional Contract Research Articles

Blockchain oracles for decentralized agricultural insurance using trusted IoT data

Agricultural insurance is one of the formal and reliable risk management instruments to cope with agrarian risks. Presently, agricultural insurance products rely heavily on centralized systems that lack transparency and traceability, leading to suboptimal risk assessment and delays in payouts. To address these concerns the fintech industry has started to embrace a popular decentralized technology called blockchain. However, blockchain operates as a deterministic and synchronized state system, which means it cannot directly access real-world data for decentralized applications. A mechanism called oracle is required for the trusted access of agricultural risk factor data to smart contracts from external sources such as Internet of Things (IoT) devices, web services and databases. Hence, the present study proposes a blockchain-based AgriInsureDON framework with a privacy-preserving decentralized oracle for risk factor data access from trusted IoT devices for agricultural insurance. Initially, a method for computing the direct reputation score of IoT devices based on behavioral and data reputation is illustrated. Next, a privacy preserved decentralized oracle mechanism is designed and implemented using a masked secret sharing and secure aggregation scheme. Later, we demonstrate the working of weather-indexed insurance contracts based on decentralized oracle. Finally, a performance analysis of smart contract transactions w.r.t average latency, throughput, average CPU utilization and total memory usage is conducted on Ganache and Sepolia test networks. The evaluation results of privacy-protected decentralized oracle and an indexed insurance contract within AgriInsureDON framework confirms that transactions are efficient and scalable to meet the requirements of expedited claim settlement.

Akad Jual Beli Dalam Transaksi Online Pada Aplikasi Grab-Food Ditinjau Dari Fikih Muamalah

This study aims to analyze the suitability of contracts in online transactions on the Grab-Food application with the principles of muamalah fiqh. In this application-based food delivery transaction, three types of contracts used are rental contracts, sale and purchase contracts, and wakalah contracts. The rental contract occurs between the application provider company and the driver and seller, while the sale and purchase contract is between the user (buyer) and the food seller. In addition, the wakalah contract occurs when the user gives the driver power to complete the purchase and delivery of food. The results of the study show that each contract has fulfilled the pillars and requirements of sharia, where the roles and responsibilities of each party have been clearly regulated, thereby reducing the potential for ambiguity (gharar) in the transaction. This finding supports previous studies and strengthens the concept of flexible muamalah fiqh that can be applied in various forms of digital transactions. The study concludes that app-based transactions such as Grab-Food can be adjusted to remain compliant with sharia values, providing confidence for Muslim consumers in conducting halal digital transactions. Recommendations for further research include analysis of blockchain technology to strengthen transparency in online transactions.

The Problem of the Jurisprudential Concept in Islamic Banking Products

This study delves into the intricacies of the concept and its multifaceted levels to examine the intermingling of certain financial transaction contracts, such as Al-wadīʻah (Deposit), Mudaraba (Speculation), and the concept of “Naqd” (Currency). The study analyzes the diverse ways in which these terms are employed, leading to a multiplicity of interpretations and, consequently, a divergence of legal rulings and a plurality of Islamic juristic opinions based on the understanding of these concepts and their applications.

Demand-Side Effects of Open Innovation: The Case of Cryptocurrency Forking

Many digital products follow an open-innovation model, wherein the open boundaries facilitate copying (forking) the codebase and creating new products, which may compete with the parents for user demand. Although a rich body of literature highlights the benefits of open source such as the availability of developers with diverse skill sets and accelerated innovation, the competition effects of forked products on the demand of their parents remain understudied. Using data from major cryptocurrencies and their forked products created between 2011 and 2021, we study how these entrants impact the demand for parent cryptocurrencies. We categorize cryptocurrencies as transaction or platform types. Transaction coins are primarily used for the exchange of goods and services, whereas platform coins offer additional capabilities such as hosting applications or third-party services. We find that parents with only transaction capabilities experience a negative impact on demand. Although popularity may shield the parents to a certain extent, the substitution effect is still dominant. However, popular coins with platform capabilities do not experience a decrease in demand when competing with forked entrants; an increase in smart contract transactions due to their compatibility with the competing forked products offsets the negative substitution effect observed for regular transactions. Our study underscores the competitive dynamics of open innovation and provides managerial insights for firms considering open models for product development. Our results highlight the importance of considering both substitution and complementarities when assessing the risks and benefits of the open-innovation model. This paper was accepted by Anindya Ghose, information systems. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2021.03132 .

Enforcement of smart contracts in cross-jurisdictional transactions

Purpose This research aims to explore the complexities surrounding smart contracts enforcements in cross-jurisdictional transactions. Design/methodology/approach To achieve the aim of this study, doctrinal legal analysis was adopted. Although the subject is multidisciplinary, the aspect of enforcement in cross-jurisdictional transactions from legislative analysis does not require a technical method to be analysed, hence the adoption of this method. Where relevant legal academic journal articles were sourced and analysed along different legislative frameworks in some jurisdictions under review. To determine the legality of smart contracts, applicable law and court with jurisdiction to enforce blockchain smart contract disputes. Findings It was discovered that there remain fundamental questions regarding jurisdiction, applicable law and enforcement. Due to the problem of a uniform legislation to manage smart contract transactions. Research limitations/implications This study limits itself to the legality of smart contracts within a conflict of laws, and it propels the need for either a choice of domestic legislation for parties to be bound or the adoption of a universal legal framework for all smart contract formation through an international treaty or convention that has a binding effect on contracting parties to a smart contract. Originality/value This study highlights the fact that the key elements of smart contracts within traditional contract requirements as provided in domestic legislation vary across jurisdictions. This variation results not only in conflict of law but also affects enforcement in cases of dispute in the contractual terms.

Event log extraction methodology for Ethereum applications

The adoption of smart contracts in decentralized blockchain-based applications enables reliable and certified audits. These audits allow the extraction of valuable information from blockchains, which can be used to reconstruct the execution of the application and facilitate advanced analyses. One of the most commonly used techniques in this context is process mining, which leverages event logs to trace and accurately represent the process execution of applications. However, extracting execution data from blockchains poses significant challenges, and the current methodologies developed have some limitations. Most approaches are tailored to specific use cases, requiring that analysis techniques are defined during the smart contract’s development. Other techniques are applied a posteriori, relying on blockchain events that often lack a standardized format. This absence of standardization requires complex processing steps to correlate logs with the executed actions and such approaches are not universally applicable to all smart contracts on the blockchain, further limiting their scope. Lastly, none of the existing techniques can extract information from event logs embedded in internal transactions of smart contracts.To address these limitations, we propose EveLog an application-agnostic methodology that can be applied to any EVM-compatible application without predefined constraints. Its primary goal is to extract information from smart contracts, capturing both public and internal transactions, and organizing the results into a structured XES event log. The EveLog methodology consists of five key steps: (i) extraction of data from smart contract transactions, (ii) decoding raw data, (iii) selection of sorting criteria, (iv) construction of traces, and (v) generation of the XES event log. EveLog has been implemented in a client–server application and tested on existing solutions, specifically the CryptoKitties application, a blockchain-based game on the Ethereum blockchain. The study was conducted using 12,996 blocks, including over 8000 real transactions from the Ethereum mainnet.

Analysis of the Implementation of As-Salam Contract in White Garlic Purchase Transactions between Retailers and Distributors: Case Study White Garlic Industry Supply Chain in Medan City

Purpose: This study aims to analyze the application of the As Salam contract in the purchasing system of garlic between retail traders and importers in Medan, Indonesia. Research Methodology: The research utilizes a qualitative approach, employing observation and structured interviews with key participants in the garlic trading industry. The instruments include interview guides and observational checklists to gather detailed insights into the contract negotiation and execution process. Results: The findings indicate that the trading practice involves detailed contract agreements, including specific terms on quantity, quality, and delivery schedules. The principles of the As Salam contract are strictly adhered to, ensuring clarity and minimizing the potential for disputes. Prepayment is an integral part of the contract, facilitating efficient stock planning and delivery logistics. Limitations: The study is limited to the garlic trade within the Medan region, which may restrict the broader applicability of the findings to other commodities or regions. Contribution: This research contributes to the discipline of Islamic economics by providing practical insights into the implementation of As Salam contracts in commodity trading, offering a model for ensuring fairness and transparency in accordance with Islamic law.

Analysis Of Food Ordering Agreement Through Application Of Online Transportation System In Islamic Economic Overview

This research analyzes food ordering contracts via online transportation applications from an Islamic economic perspective. It was found that there are various electronic contracts that influence society, including the perception that booking contracts can be considered haram or contain gharar, affecting beliefs and the online transportation ecosystem. This research methodology is descriptive qualitative with primary data sources from interviews and secondary sources from books and papers. Data collection techniques include observation, interviews and documentation. The research results show that in Go-Food services by PT Go-Jek there are ijarah, wakalah, sale and purchase and musyarakah contracts. Ijarah contracts occur in service transactions, wakalah contracts when consumers represent purchases, sale and purchase contracts when drivers buy food, and musyarakah contracts in collaboration between PT Go-Jek and drivers. In addition, analysis of OVO top-up transactions shows that it is compatible with the Sarf contract, although a small number of users still consider it a Qardh contract due to the lack of socialization regarding the type of contract in OVO transactions

Financing a push and pull supply chain under revenue sharing: value addition and default risk transmission mechanism

Supply chain finance (SCF) releases participants' capital constraints and facilitates their operations. SCF and transactional contracts can have synchronised effects on participants' performance. This research analyses how credit financing and bank loans with revenue-sharing contracts can help capital-constrained suppliers and retailers improve their financial and risk management performance in the push and pull supply chains. Results suggest that SCF generates greater profits than capital-constrained supply chains without SCF and well-capitalised supply chains, demonstrating a leverage effect. In a push scenario, SCF enhances the wholesale price effect and risk-sharing effect of the revenue-sharing contract, resulting in increased order quantity and profits for participants, albeit with an amplified default risk transmission effect. Conversely, in a pull scenario, SCF boosts participant profitability by strengthening the order quantity effect of the wholesale price contract, although its risk-sharing effect is weakened by the revenue-sharing contract, thereby mitigating the default risk transmission effect. When the revenue-sharing rate is low, the push model performs better in terms of profit enhancement but exhibits higher default risk transmission levels compared to the pull model, and vice versa. The findings guide participants in leveraging SCF and revenue-sharing contracts to enhance their benefits and control the default risk transmission level.

HIERARKI PERATURAN PERUNDANG-UNDANGAN HUKUM EKONOMI SYARIAH DALAM PERBANKAN SYARIAH

Legal hierarchy is a term used for a legal structure that is tiered to become the basis for the authorities authorized to form it. Low norms are based on high norms, so that low (inferior) norms do not conflict with higher (superior) norms. The basis of the highest hierarchical sharia law is Islamic law, then other laws refine and are formed based on previous laws. This research uses a library research approach, with a qualitative descriptive method, looking for relevant sources related to the problem and then describing the data to describe the regulatory framework for Islamic economic law for use in sharia banking. This article will discuss the hierarchy of sharia economic law and regulations used in sharia banking. The two legal bases used in sharia banking are normative law (Islam) and positive law (state). Sharia financial institutions and the public can use this hierarchy as a reference in carrying out sharia contract transactions and resolving sharia economic law disputes.

Mitigating work alienation in public sector service-delivery projects caused by perceived overqualification: the roles of empowering leadership and the psychological contracts

PurposeThe study investigates the nature of an understudied yet salient relationship between perceived overqualification (POQ) and work alienation in project management. It employs relative deprivation theory to propose two dimensions of the psychological contract, i.e. relational and transactional, as underlying mediating mechanisms and how empowering leadership mitigates the adverse effects of POQ.Design/methodology/approachTo this end, in two waves, we surveyed 232 project members of three public-sector information and communication technologies (ICT) projects in Punjab, Pakistan. The data was analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM).FindingsThe key findings are: (1) POQ leads to work alienation, (2) relational and transactional contracts mediate this relationship, and (3) empowering leadership can mitigate the adverse effects of POQ in project management settings.Originality/valueThis research adds valuable insights to the scant POQ literature in public-sector project management settings. It also contributes by identifying the mediating role of relational and transactional psychological contracts and the moderating role of empowering leadership to mitigate the adverse effects of POQ in these settings.

Fabrication of Fiqh Doctrines and its Impact on Financial Transaction Contracts (A Study on Samples of Sharia Standards issued by The Accounting and Auditing Organization for Islamic Financial Institutions AAOIFI)

One of the Fiqh topics that are raised in the scientific community from time to time is the topic of fabricating between Fiqh doctrines, there are those who exaggerate the Prohibition of fabricating at all and reject it on its basis and claim consensus to prevent it, there are those who open the door of fabricating wide with no control to control it, and there are those who mediate between the two teams and accept the fabrication but with controls and restrictions. This research sheds light on the topic of concocting Fiqh doctrines and its impact on financial transactions contracts, specifically in the Sharia standards issued by the accounting and Auditing Organization for Islamic financial institutions (AAOIFI), as the importance of this topic comes from two aspects, the first is related to the fact of concocting Fiqh doctrines, and the correct Sharia position on it, and the second aspect is related to the Sharia standards that have become a major reference for Islamic financial institutions, such as Islamic banks, Islamic insurance companies, etc. The first is entitled: The concept of fabricating Fiqh doctrines and its relationship with tradition and tracking licenses, the second is entitled: The sayings of Jurists in fabricating Fiqh doctrines, and the third is entitled: Fabricating in Sharia standards and its impact on them, then concluding with the most important findings and recommendations, the research concluded with the statement of the fact of fabrication and the Sharia position and his lack of legality.

Purchase Order Transactions in Islamic Economic Law: A Case Study of PT Segara Artha Investama (PT. SAI)

Purpose – This study aims to explore the implementation of Sharia contracts in purchase orders, contributing to the existing literature in the field of the Islamic economy.Method – Employing qualitative research methods with a descriptive research design, the researcher conducted in-depth interviews to gain a comprehensive understanding of purchase order activities. Data analysis was carried out both in the field and through policy analysis. The data analysis technique used was qualitative.Result – The findings of this study indicate that the implementation of purchase orders is in line with Sharia contracts, specifically “Salam” and “ Istishna' ”.Implication –The implications of this research are to offer literature research as a reference for community transactions following Islamic law and to enhance understanding of the concept of transaction contracts in Islamic law.

Analisis Hukum Islam dalam Transaksi Layanan Pesan Antar Makanan Online: Studi Kasus pada GoFood

This research aims to determine Islamic law in online food delivery service transactions on GoFood delivery services and to assess the effectiveness of contracts in GoFood delivery service transactions. (1) Observation, interviews, and documentation are all used in this research as quantitative data collection methods. In the GoFood delivery service, 8 informants in total participated in this research consisting of 3 merchants, 2 drivers and 3 consumers. used random sampling and sampling approaches to identify informants. Based on the research findings, (1) the practice of using contracts in delivery service transactions using Islamic contracts by identifying the relationship between the parties who carry out relationships and transactions in the GoFood delivery service, apart from that it also sharpens the views of contemporary jurisprudence scholars who are pro and Contradictions regarding transactions on the GoFood delivery service, (2) Looking at the Islamic legal perspective on this delivery service transaction by looking at the arguments and views of experts to be able to determine whether or not GoFood delivery service transactions are permissible.

Akad-Akad Transaksi Perbankan Syariah Dalam Tinjauan Studi Hadits

This study aims to describe and analyze 1) contracts in Islamic banking, 2) hadith about contracts in Islamic banking transactions, 3) implementation of hadith in Islamic Banking transactions. The research method uses the interpretation research method, with a descriptive analysis method. The hadith studies used in this study are in the following arrangement: 1) hadith texts and sanad hadith, 2) translation of hadith, 3) brief biography of sanad / hadith scholar, 4) analysis of hadith, 5) implementation of hadith in Islamic Banking transactions. The results of the study 1) contracts in Islamic Banking transactions consist of a) Mudharabah, b) Musyarakah, c) Murabahah, d) Ijarah, e) Qard al Hasan, f) Wakalah, g) Kafalah; 2) In general, hadith in the context of Islamic banking transactions serves to show the validity of a contract and provide guidance in carrying out these transactions in sharia. The hadith is also evidence of the initial agreement between the parties involved in Islamic banking transactions and serves as a handle in resolving disputes in the event of a dispute between them; 3) In mudharabah and musyarakah agreements, banks and customers share risks and benefits with each other. It aims to encourage partnerships and cooperation in business, as well as minimize the risk of failure. In its application, Islamic banking follows islamic sharia rules and principles, including in determining profits and risks that must be shared fairly between banks and customers.

Privacy-preserving and scalable federated blockchain scheme for healthcare 4.0

IoT plays a significant role in the growth of clinical data for identifying hazardous diseases and building drugs for patient diagnosis and medical care. Blockchain and federated learning are widely proposed in existing studies for localized data training and storage in a secure, decentralized environment. However, several studies rely on the federated averaging method in federated learning, which introduces high energy consumption during several training rounds. Frequent transactions for storing patient records in blockchain and smart contract processing present network congestion challenges. In this paper, we propose a privacy-preserving federated learning and scalable blockchain scheme. First, we present a satisfaction scoring method for model aggregation to improve energy efficiency during the federated learning process. Secondly, we design an Ethereum-based blockchain network with sidechains to process smart contract transactions separately and reduce computation overload in the blockchain mainchain. Evaluation of the proposed scheme is compared with the baseline federated average method and transaction processing of smart contracts with the Ethereum main chain. Results demonstrate reduced CPU consumption using the proposed model aggregation method, an improvement over the federated average method, and an improvement of 43.65 % in transaction processing speed using two sidechains ensuring side.

Construction and Application of the Double Game Model for Direct Purchase of Electricity by Large Consumers under Consideration of Risk Factors

With the development of global clean energy and the implementation of carbon emission reduction policies, the direct purchase of electricity by large consumers has been increasingly promoted as a special form of electricity trading. Therefore, on the basis of the completion of low-carbon emission reduction targets in each country, how to rationalize the electricity purchase by large consumers in the electricity market so as to reduce their electricity purchase costs has become the main target of attention in each country. Currently, there are fewer studies in existing research on the direct electricity purchase strategy of large consumers under the consideration of the weight of consumption responsibility and risk. Based on this, this paper constructs a dual-game model for direct electricity purchase by large consumers based on the Stackelberg game and non-cooperative game theory. The concept of value at risk is further introduced, and the optimal strategy of direct electricity purchase by large consumers is proposed. The results of this study show that when market players make decisions on the purchase and sale of electricity, power suppliers will increase their biddings to obtain the highest returns, and large consumers can reduce the transaction costs by combining the medium- and long-term market with the spot market to purchase electricity. In the choice of electricity purchase market, with the increasing risk factor, large consumers shift from the risky spot market to the less risky medium- and long-term market and option market. This paper provides a reference for the issues of power suppliers’ contract bidding and large consumers’ electricity purchase strategy in the medium- and long-term contract transactions.

SP-PoR: Improve blockchain performance by semi-parallel processing transactions

As is well known, performance is always an obstacle to blockchain’s further development and application. However, limited by information propagation latency and the existence of conflicted transactions, neither shortening block generation interval, expanding block capacity, nor designing noval parallel processing supported blockchain structures cannot actually improve the performance. To address the performance improvement dilemma, in this paper, starting with the transaction relation, we propose a semi-parallel transaction processing protocol called the “Semi-Parallel Proof-of-Relevance” (SP-PoR). By analyzing the relevance determination condition of different types of transactions, we found that splitting and processing normal transactions and contract transactions respectively are key factors in boosting the entire blockchain performance. Then, theoretically, the parallel processing of unrelated blocks has been proven to have no influence on final consensus achievement. Based on this, a semi-parallel processing method is proposed to parallel and serially process normal and contract transactions based on relevance determination. Furthermore, multi-way tree DAG structure and tangle structure are designed to support our research. Finally, extensive experiments based on real Ethereum transaction data prove that our proposed method can indeed improve blockchain performance in which normal transactions and contract transactions of our method have 8.575 times and 2.54 times improvement respectively. The entire blockchain can experience 2.117 times performance improvement on blockchain synchronization considering practical execution environment deductions.

The Application of Khiyar Principles to E-Commerce Transaction: The Islamic Economy Perspective

This essay seeks to analyze the utilization of khiyar in e-commerce transactions within the context of Islamic economics. The principle of khiyar allows individuals to exercise the option to either proceed with or terminate a transaction. This theory is applicable to various types of buying and selling transactions, including those conducted in the realm of e-commerce. This study employs a normative legal methodology with an Islamic economic perspective, which is evaluated descriptively. The data was gathered through an extensive analysis of literary sources, including journal articles, books, journals, legal documents, and other relevant references pertaining to the topic of discussion. Islamic economic theory is applied as an analytical framework to examine the concept of khiyar (option) in the context of buying and selling in e-commerce transactions in Indonesia. The research findings indicate that the utilization of khiyar in e-commerce transactions, in accordance with the Islamic law, is permissible as long as it adheres to the prerequisites and fundamental principles of buying and selling. These include honesty, fairness, and the absence of any fraudulent elements. However, if harm is inflicted upon one of the parties involved, the transaction becomes unlawful. In the Islamic law, there is a rule stating that all forms of muamalah transactions are permissible, as long as there are no contradictory arguments prohibiting them. The contract and payment mechanisms in e-commerce transactions are considered to be in accordance with Islamic law and contain benefits, also in line with the opinion of the ulama in the fatwa of the Indonesian Ulema Council. From an Islamic economic standpoint, engaging in e-commerce transactions for buying and selling is sufficient to contribute to the nation's economic expansion, particularly benefiting the middle class and streamlining transactions.

Media Safety Threshold for the Digital Protection and Inheritance of Dunhuang Culture

This paper delves into the utilization of NFT (Non-Fungible Token) technology for safeguarding and perpetuating Dunhuang culture, with a focus on media safety. It proposes a research methodology aimed at constructing a digital resource library and management platform utilizing this innovative technology. Addressing the imperative requirements of safeguarding work copyrights and establishing robust transaction mechanisms, it introduces the unique features of NFTs, such as non-fungibility and smart contract transactions, in a novel manner. By digitizing cultural artifacts, this approach establishes clear copyright and ownership attributes, facilitating transparent transactions and seamless transfers of ownership. Moreover, the paper explores the integration of NFT technology into the online dissemination and preservation of Dunhuang cultural works, which encompasses the creation of digital exhibitions and online museums. Through collaborative efforts both domestically and internationally, the digital works of Dunhuang culture are poised to garner global exposure, thereby enhancing its international significance. By delving into the future potential of NFT technology for safeguarding and perpetuating Dunhuang culture, this paper seeks to foster better cultural dissemination strategies, ultimately contributing to the enhanced protection, inheritance, and promotion of Dunhuang culture on a global scale.