Infrastructure For Transactions Research Articles

Blockchain solutions with consensus algorithms and immediate finality: Toward Panopticon-style monitoring to enhance anti-money laundering

Banks can reduce resources spent on anti-money laundering (AML) compliance with blockchain-based transaction infrastructure. We consider AML compliance as a superset of know-your-customer (KYC) and transaction monitoring capabilities. We carried out this research with Danske Bank and Concordium, using internal documents and interviews that served as empirical data. We show how storing digital representations of verified IDs with a blockchain can automate tasks and reduce redundant verification in KYC onboarding. Blockchain transparency also improves identifying counterparties, determining funds sources, and creating alerts in transaction monitoring. These reduce time and labor costs for AML compliance, which may lead to smaller banks. When more banks commit to layer-1 blockchain technology, the benefits of blockchain-based AML will increase. We carried out this theory-based qualitative research and encourage ECRA readers to recognize that the emerging technology innovations we study in this article have not yet been widely adopted and implemented by financial services firms. We also include a theoretical model with study hypotheses to make the main constructs that we investigate easily understood by non-technical ECRA readers. The findings we have developed are consistent with early-stage exploration in our research context and are intended to encourage more well-developed empirical results as the passage of time permits such work to be undertaken.

Game-theoretic peer-to-peer solar energy trading on blockchain-based transaction infrastructure

The growing share of distributed, renewable resources in energy mix to combat climate change calls for a significant efficiency improvement through market-based solutions such as peer-to-peer (P2P) transactive energy systems. This paradigm shift requires an energy market that supports its functions through well-designed market rules and transaction infrastructure—the two ingredients that form a marketplace. Blockchain technology can facilitate the implementation of both market rules and transaction infrastructure for newly emerging P2P transactive energy markets. In this paper, we propose a model for the design of a transactive energy marketplace using blockchain as transaction infrastructure based on game-theoretic market rules that incentivize a more sustainable energy generation and consumption behavior while preserving the privacy of economic agents in the market. We propose a novel consensus mechanism named Proof-of-Reserve (PoR) to perform consumer-prosumer transactions and block mining activities on a distributed ledger. The model is numerically analyzed on a test system to illustrate its effectiveness. The results demonstrate the effectiveness of game-theoretic modeling in establishing market equilibrium and showcase the efficiency of blockchain technology in facilitating a functional, decentralized transaction settlement process.

The Effect of Using Cashless (QRIS) on Daily Payment Transactions Using the Technology Acceptance Model

Bank Indonesia launched a digital payment system innovation to build a better Indonesian economic system. The payment system established is QRIS. QRIS payments can facilitate the settlement of transactions made by the people of Indonesia and can also be effective, efficient, and a guaranteed technology security system. The variables used in this study are Social Influence, Perceived Usefulness, Perceived Ease of Use, and Perceived Trust using the Technology Acceptance Model (TAM) research method. Research data is processed using the Smart-PLS application to obtain valid calculation results. This study aims to determine the effectiveness of QRIS users, user trust in the QRIS security system, and user satisfaction using QRIS. Based on the research results that have been carried out, implementing a cashless has made good progress in using transactions through QRIS. From the research survey results, 522 respondents used QRIS, and 54 respondents did not use QRIS. This can be seen from the respondents influence in every Indonesian region. It can be seen that the implementation of QRIS has made good progress in the use of transactions through QRIS users, which can be seen from the presence of respondents in every region of Indonesia. However, in some cases, there is a lack of facilities and infrastructure for transactions via QRIS because interest in using QRIS is still lacking in areas outside Jabodetabek. From the results of research conducted by the author, the hypothesis that the author obtained was 8, namely Social Influence (SI) has a positive effect on Perceived Usefulness (PU), Social Influence (SI) has a positive effect on Perceived Ease of Use (PEOU), Perceived Usefulness (PU) positively influenced by Perceived Ease of Use (PEOU), Perceived Trust (PT) is positively influenced by Perceived Usefulness (PU), Perceived Trust (PT) is positively influenced by Perceived Usefulness (PU), Behavior Intention of Use (BI) is influenced positively by Perceived Trust (PT), Behavior Intention of Use (BI) is positively influenced by Perceived Usefulness (PU), Use Behavior is positively influenced by Behavior Intention of Use (BI).

A java servlet based transaction broker for internet of things edge device communications

Internet of things (IoT) technology is growing exponentially in almost every sphere of life. IoT offers several innovation capabilities and features, but they are also prone to security vulnerabilities and risks. These vulnerabilities must be studied to protect these technologies from being exploited by others. Cryptography techniques and approaches are commonly used to address and deal with security vulnerabilities. In general, the message queuing telemetry transport (MQTT) is an application layer protocol vulnerable to various known and unknown security issues. One possible solution is to introduce an encryption algorithm into the MQTT communication protocol for secure transmission. This study aims to solve the security problem of IoT traffic by using a secure and lightweight communication proxy. The strategy behind this communication broker acts as a network gateway providing secure transaction keys to all IoT nodes in the network. This task uses a java servlet and elliptic curve cryptography (ECC) algorithm to generate identity encryption keys in a component-based web transaction infrastructure. This approach encrypts the data before it is sent via the MQTT protocol to secure the communication channel and raise the security device and network transactions.

A The Comparison Of Stock Price Before and After Dividend Sharing On The Property and Real Estate Sector Coorporations Which Listed In The Indonesian Stock Exchange Period Of 2014-2019

Abstract
 The economic progress of a country is reflected in the capital market activities in that country. Economic progress as described on the basis of the market function as a capital transaction infrastructure that can affect a country's economic development. This study aims to see and analyze stock prices before and after dividend distribution listed on the Indonesia Stock Exchange (IDX). This study uses a comparative analysis with a quantitative approach. The data source used is secondary data. This data is obtained from the official website of the Indonesia Stock Exchange (Internet Data Exchange / BEI). The results of this study indicate that there are significant differences in stock prices before and after dividend distribution. This is based on the test results on the paired sample t-test which shows the significance value is smaller than the alpha value a (0.000 <0.05) so that Ho is rejected and Ha is accepted.
 Keywords: Stocks, Dividends, BEI.

Innovation technology and cyber frauds risks of neobanks: gravity model analysis

In the system of global information space, it is important to adequately calculate and assess the factors of successful functioning of the banking system, which are directly the engines of the country's development, economic stability, especially from the standpoint of qualitative measurement of innovative technology and human capital in rapid cyber fraud. The work is devoted to studying factors that describe the components of efficiency and potential use of innovative technologies in neo-banking in 90 countries to determine the level of risk of their use for money laundering based on gravitational modeling methodology. The authors substantiated that using four factors consisting of 13 components of digital evolution is expedient. Three indicators (access infrastructure, transaction infrastructure, and fulfillment infrastructure) allowed forming the supply condition factor. It provides a score on developing digital and physical infrastructure to ensure the digital economic system's quality. The «demand conditions» factor consists of 4 indicators (human quality level, device absorption level and digital broadband level, digital payment absorption), which show how much consumers are willing and able to participate in the digital economic system and whether they have the tools and skills needed to connect to the digital economy. Three indicators (institutional effectiveness and trust, institutions and the business environment, institutions and the digital ecosystem) shaped the «institutional environment» factor. It relates to research on countries' support for digital legislation, governments' investment in digitalization, and regulations. Regulate the quality of storage and access to digital data. The fourth factor of «innovation and change» consists of three features that characterize the state of key innovative economic system inputs (talents and capital), processes (i.e., cooperation between universities and industry), and outputs (i.e., new scalable digital products and services). The generalized indicator was formed based on these indicators. It characterizes the degree of risk of using the services of neobanks of the studied countries by economic agents or individuals to legalize criminal proceeds. At the first stage of the proposed method, the authors substantiated the statistical significance and possibility of using the studied indicators. The procedure of logarithmic normalization was carried out. The toolkit of descriptive statistics of the Statgaphics Centurion package provided the normalization parameters. In the second stage, the indicators were collapsed using a geometric weighted average, which provides meaningful information about the average dynamics rate. The third stage provided calculating the value of the integrated rating assessment of the degree of risk of using innovative technologies, services, and neobanking services for money laundering based on gravity modeling methods. The findings showed that 12.22% of the studied countries had a high degree of risk, 25.56% – a medium level of risk, 25.56% – a risk below the average level, for 36.66% of countries – the risk was almost absent.

IT Role in Fulfillment of Profit & Loss Sharing (PLS) Mechanism

In this paper, we are going to introduce a new IT master solution to improve non-usury banking performance. All divine religions emphasize on usury prohibition. It is concluded that with some IT solutions, it may be possible to fulfill the worldly requirement by use of IT systems without any incredulity. Since depositors are shareholders of Non-Usury Bank Corporation (NU Bank Co), therefore integrated information systems can provide suitable infrastructure for transactions recording and management done by all participants' chains; and the end of process the yields of investment capital of depositors that invest in real economy can be distributed by safe delivery channels such as branches, ATM, WEB, Meaningful WEB. IT (as BPR, ERP, CRM, SCM, MES, MEX, HRM, WFM) that use single and integrated data warehouses) accompanying with standardization in all processes not only prepare PLS mechanism as main difference between conventional and non-usury banking but also simplify risk management and decline operational risk in comparison with conventional non-usury banking. Foundation of real non-usury banking can be based on an integrated IT system that links depositors, NU Bank Co, business partners, investors, stock exchange agencies, social security organization, certificate authorities (CA). Therefore, all related sectors may access the working flow of capital; IT processes, investment returns, and this causes stability in financial markets and achieve social justice establishment. In this paper, we are going to find a solution to this question: is it possible to connect depositors, bank, and investors in an integrated IT system to bring out PLS mechanism? Accordingly, we use a new kind of bank named by "Non-Usury Bank Corporation (Nu bank Co)" to fulfill the PLS criterion. This kind of non-usury bank will be capable of being established in different commercial law systems around the world. Thus, it will provide a suitable environment to automate non-usury banking operations that connect profits of depositors, bank, and loaners all together by using financial automatic communication channels.

The Limits of Smart Contracts

This essay investigates the potential of smart contracts to replace the legal system as an infrastructure for transactions. It argues that (contract) law remains relevant for most transactions even if they are entirely structured by way of smart contract. The reason for this is that the power of smart contracts to create and enforce obligations against attempts by the legal system to thwart their executionis limited. These limitations are most relevant for obligations to perform certain actions outside the blockchain, but also apply to other obligations contingent on facts outside the records stored on the blockchain.

Transactional Infrastructure of the Economy: the Evolution of Concepts and Synthesis of Definitions

Transactional Infrastructure of the Economy: the Evolution of Concepts and Synthesis of Definitions

Incentivizing biodiversity conservation in artisanal fishing communities through territorial user rights and business model innovation.

Territorial user rights for fisheries are being promoted to enhance the sustainability of small-scale fisheries. Using Chile as a case study, we designed a market-based program aimed at improving fishers' livelihoods while incentivizing the establishment and enforcement of no-take areas within areas managed with territorial user right regimes. Building on explicit enabling conditions (i.e., high levels of governance, participation, and empowerment), we used a place-based, human-centered approach to design a program that will have the necessary support and buy-in from local fishers to result in landscape-scale biodiversity benefits. Transactional infrastructure must be complex enough to capture the biodiversity benefits being created, but simple enough so that the program can be scaled up and is attractive to potential financiers. Biodiversity benefits created must be commoditized, and desired behavioral changes must be verified within a transactional context. Demand must be generated for fisher-created biodiversity benefits in order to attract financing and to scale the market model. Important design decisions around these 3 components-supply, transactional infrastructure, and demand-must be made based on local social-ecological conditions. Our market model, which is being piloted in Chile, is a flexible foundation on which to base scalable opportunities to operationalize a scheme that incentivizes local, verifiable biodiversity benefits via conservation behaviors by fishers that could likely result in significant marine conservation gains and novel cross-sector alliances.

Facilitating offshoring with enterprise technologies: Reducing operational friction in the governance and production of services

The development of cheap and robust communications technologies has lowered the cost of conducting business transactions across international boarders and opened up low wage rate global labor markets to firms facing demand for cheap and efficient service delivery. A review of transaction cost theory and operations management models of service process disaggregation reveals parallels between the how firm boundaries are determined and how certain service process elements can be disaggregated from face-to-face customer contact. This theoretical background is used to identify challenges to the effective offshoring of service processes. The competitive capability literature offers suggestions as to how firms might acquire the internal capabilities required to manage offshore service processes. Propositions are developed on how the standardized transactional infrastructure of enterprise technologies (and the organizational competencies developed by successful enterprise system adopters) may help mitigate the challenges of offshore governance.

Innovative products on the internet: the role of trust and perceived risk

The emergence of e-commerce has brought a new opportunity for selling new products on the internet. However, little research has been conducted to analyse the implications of product innovativeness on purchase intention and other related variables such as perceived risk and website trust. The intrinsic characteristics of new products and the open nature of the internet as a transaction infrastructure can enhance the positive or negative relationships between these variables. The aim of our investigation is to assist organisations in their innovative initiatives through a survey among 1396 internet customers. According to our results, firms selling innovative products on the internet should take into account not only the positive implications on purchase intention or website trust, but also the negative consequences that can arise from the increase in customer-perceived risk. This study has proven important recommendations from academic and managerial points of view.

Technology Trust in Internet-Based Interorganizational Electronic Commerce

Trust in Internet-based Business-to-Business (B2B) e-commerce is an important issue for both practicioners and academicians. Whereas the traditional notion of dyadic interfirm trust primarily focuses on trust in a trading partner firm, trust in e-commerce also implicitly incorporates the notion of trust in the transaction infrastructure and underlying control mechanisms (technology trust), which deals with transaction integrity, authentication, confidentliality, non-repudiation, and best business practices. This researcch explicitely examines this new institutional character of trust in B2B e-commerce, arguing that business value realization is heavily dependent on the dimension of technology trust, captured as perceived benefits and actual organizational performance, even after controlling for the positive effects of partner trust. Given the absense of adequate metrics to capture the notion of technology trust in B2B e-commerce, this research develops and validates a measure for technology trust and tests its effec on benefits and performance. This paper contributes to theory by bridging the gap between technological solutions (technology trust) from an institutional trust perspective, trading partner trust (relationship trust) and business value (perceived benefits and organizational performance). The proposed theoretical model is tested in organizations actively involved in B2B e-commerce using survey methodology. The findings from 288 firms validated the importance of technology trust for organizational success in B2B e-commerce.

Is there persistence in the growth of manufactured exports? Evidence from newly industrializing countries

Applying cointegration techniques in a panel data setting, we document persistent growth of manufactured exports from certain developing countries. To complement the investigation of persistence (measured by the country ‘fixed-effects’), we analyze asymmetries in income elasticities: for all developing countries, the decline in exports with world income contraction is sharper than is the rise on the upswing; the decline is, however, especially pronounced for countries with low or negative persistence. The results are consistent with long-term buyer-supplier relationships that create ‘insiders’ and ‘outsiders’ in manufactured goods trading. Exports are also influenced by the transactional infrastructure (proxied by telecommunications penetration).