4,888 research outputs found

    Review of Peer-to-Peer (P2P) Lending Based on Blockchain

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    Peer-to-Peer (P2P) lending is a financing business model that has gained popularity in recent years due to the ease of loan application, disbursement, and repayment processes. The volume of Peer-to-Peer (P2P) Lending transactions have a significant growth. One of the reasons for the popularity of Peer-to-Peer (P2P) lending is its utilization of technology in both the application and loan repayment processes. One such technology gaining traction in Peer-to-Peer (P2P) lending is blockchain technology. The popularity of blockchain technology lies in its ability to enhance the transparency of the transaction process. This literature study aims to address three main questions: What are the characteristics of blockchain suitable for Peer-to-Peer (P2P) lending , the benefits of implementing blockchain technology in Peer-to-Peer (P2P) lending and the challenges of Peer-to-Peer (P2P) lending based on blockchain. The findings reveal that there are characteristics of blockchain that can be applied to Peer-to-Peer (P2P) lending, bringing numerous benefits to the overall Peer-to-Peer (P2P) lending process. However, challenges persist in the implementation of blockchain technology in Peer-to-Peer (P2P) lending. The insights gained from this literature review are intended to guide researchers interested in studying the application of blockchain technology in the context of Peer-to-Peer (P2P) lending

    Unveiling Ethereum’s Future: LSTM-Based Price Prediction and a Systematic Blockchain Analysis

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    Cryptocurrency has emerged as a revolutionary innovation that has been replacing traditional finances and enthralling the worldwide technology landscape. This has gained a lot of popularity worldwide for its potential to enable peer-to-peer transactions and offer opportunities for investment and novelty. Nevertheless, it gives rise to issues concerning regulatory adherence, instability, and security apprehensions, turning them into a topic of continuous evaluation and investigation within the fields of finance and technology. This research paper presents a comprehensive exploration of the historical evolution of “Ethereum” as one of the leading blockchain platforms, with a primary focus on price prediction using a long-short-term memory (LSTM) machine learning model. The study includes various critical aspects of Ethereum, starting from its historical evolution to its potential future scope in scaling solutions and payments, and also covering the insights of Ethereum’s tokenomics, utility, and beyond. In addition, the methodology involves using the LSTM model to analyze data from Ethereum. The accuracy of price predictions is assessed by evaluating error metrics and further improved by visualizing the data through graphs that show indicators. This paper gives an in-depth perspective for anyone who is seeking a holistic understanding of cryptocurrencies, mainly concentrated on Ethereum, and also provides valuable guidance to investors, developers, and enthusiasts, encouraging them to make knowledgeable decisions in the ever-changing blockchain ecosystem

    Securing NextG networks with physical-layer key generation: A survey

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    As the development of next-generation (NextG) communication networks continues, tremendous devices are accessing the network and the amount of information is exploding. However, with the increase of sensitive data that requires confidentiality to be transmitted and stored in the network, wireless network security risks are further amplified. Physical-layer key generation (PKG) has received extensive attention in security research due to its solid information-theoretic security proof, ease of implementation, and low cost. Nevertheless, the applications of PKG in the NextG networks are still in the preliminary exploration stage. Therefore, we survey existing research and discuss (1) the performance advantages of PKG compared to cryptography schemes, (2) the principles and processes of PKG, as well as research progresses in previous network environments, and (3) new application scenarios and development potential for PKG in NextG communication networks, particularly analyzing the effect and prospects of PKG in massive multiple-input multiple-output (MIMO), reconfigurable intelligent surfaces (RISs), artificial intelligence (AI) enabled networks, integrated space-air-ground network, and quantum communication. Moreover, we summarize open issues and provide new insights into the development trends of PKG in NextG networks

    Explainable Artificial Intelligence Methods in FinTech Applications

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    The increasing amount of available data and access to high-performance computing allows companies to use complex Machine Learning (ML) models for their decision-making process, so-called ”black-box” models. These ”black-box” models typically show higher predictive accuracy than linear models on complex data sets. However, this improved predictive accuracy can only be achieved by deteriorating the explanatory power. ”Open the black box” and make the model predictions explainable is summarised under the research area of Explainable Artificial Intelligence (XAI). Using black-box models also raises practical and ethical issues, especially in critical industries such as finance. For this reason, the explainability of models is increasingly becoming a focus for regulators. Applying XAI methods to ML models makes their predictions explainable and hence, enables the application of ML models in the financial industries. The application of ML models increases predictive accuracy and supports the different stakeholders in the financial industries in their decision-making processes. This thesis consists of five chapters: a general introduction, a chapter on conclusions and future research, and three separate chapters covering the underlying papers. Chapter 1 proposes an XAI method that can be used in credit risk management, in particular, in measuring the risks associated with borrowing through peer-to-peer lending platforms. The model applies correlation networks to Shapley values and thus the model predictions are grouped according to the similarity of the underlying explanations. Chapter 2 develops an alternative XAI method based on the Lorenz Zonoid approach. The new method is statistically normalised and can therefore be used as a standard for the application of Artificial Intelligence (AI) in credit risk management. The novel ”Shapley-Lorenz”-approach can facilitate the validation of model results and supports the decision whether a model is sufficiently explained. In Chapter 3, an XAI method is applied to assess the impact of financial and non-financial factors on a firm’s ex-ante cost of capital, a measure that reflects investors’ perceptions of a firm’s risk appetite. A combination of two explanatory tools: the Shapley values and the Lorenz model selection approach, enabled the identification of the most important features and the reduction of the independent features. This allowed a substantial simplification of the model without a statistically significant decrease in predictive accuracy.The increasing amount of available data and access to high-performance computing allows companies to use complex Machine Learning (ML) models for their decision-making process, so-called ”black-box” models. These ”black-box” models typically show higher predictive accuracy than linear models on complex data sets. However, this improved predictive accuracy can only be achieved by deteriorating the explanatory power. ”Open the black box” and make the model predictions explainable is summarised under the research area of Explainable Artificial Intelligence (XAI). Using black-box models also raises practical and ethical issues, especially in critical industries such as finance. For this reason, the explainability of models is increasingly becoming a focus for regulators. Applying XAI methods to ML models makes their predictions explainable and hence, enables the application of ML models in the financial industries. The application of ML models increases predictive accuracy and supports the different stakeholders in the financial industries in their decision-making processes. This thesis consists of five chapters: a general introduction, a chapter on conclusions and future research, and three separate chapters covering the underlying papers. Chapter 1 proposes an XAI method that can be used in credit risk management, in particular, in measuring the risks associated with borrowing through peer-to-peer lending platforms. The model applies correlation networks to Shapley values and thus the model predictions are grouped according to the similarity of the underlying explanations. Chapter 2 develops an alternative XAI method based on the Lorenz Zonoid approach. The new method is statistically normalised and can therefore be used as a standard for the application of Artificial Intelligence (AI) in credit risk management. The novel ”Shapley-Lorenz”-approach can facilitate the validation of model results and supports the decision whether a model is sufficiently explained. In Chapter 3, an XAI method is applied to assess the impact of financial and non-financial factors on a firm’s ex-ante cost of capital, a measure that reflects investors’ perceptions of a firm’s risk appetite. A combination of two explanatory tools: the Shapley values and the Lorenz model selection approach, enabled the identification of the most important features and the reduction of the independent features. This allowed a substantial simplification of the model without a statistically significant decrease in predictive accuracy

    Indie encounters: exploring indie music socialising in China

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    Indie music, a genre deeply rooted in rock and punk music, is renowned for its independence from major commercial record labels. It has emerged as a choice for music consumers seeking alternatives to mainstream popular music, catering to a niche music preference. The minority nature of indie music not only provides its lovers with a profound space for individual expression and a sense of collective belonging but also introduces other challenges into their social lives. Recently, the field of music sociology has proposed a more diverse perspective to observe and analyse the intricate role of music for individuals and society. In this context, regarding Chinese indie music lovers with niche music preferences, how their indie music practices integrate into their social lives and how they navigate their niche music tastes have become worthwhile topics of exploration. Drawing on interviews with 31 Chinese indie music lovers and extensive online ethnography, this thesis investigates how Chinese indie music lovers comprehend and engage with indie music, and how the power of indie music shapes them and their social behaviours. I employ the theoretical framework of ‘music in action’ (Hennion, 2001; DeNora, 2011, 2016) and symbolic interactionism (Mead, 1934; Goffman, 1959; Blumer, 1969) to examine the dynamic and multifaceted roles of indie music in the social lives of Chinese indie music lovers. I develop a concept of ‘music socialising’ to delve into several key aspects of music lovers’ social practices. I contend that through various forms of musical activities such as music selection, live music attendance, and digital practices, indie music lovers exhibit strategic and reflexive characteristics in their music practices. These practices actively contribute to constructing and maintaining self and identity, negotiating social ties, and forming and mediating collectivity within a broader social landscape. It is through these processes that the music practices of Chinese indie music lovers are endowed with meanings, thereby shaping their social reality. This thesis presents a rich and nuanced picture of the social experiences of Chinese indie music lovers, uncovering the transformative power of their indie music practices. It presents a compelling argument for the significance of music as a social agency, highlighting the complex interactions between music, individuals, and society. By bridging theoretical insights with rich empirical data, this thesis contributes to our understanding of the socio-cultural dimensions of music, offering fresh perspectives on the role of indie music in contemporary Chinese society

    Distributed Ledger Technology (DLT) Applications in Payment, Clearing, and Settlement Systems:A Study of Blockchain-Based Payment Barriers and Potential Solutions, and DLT Application in Central Bank Payment System Functions

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    Payment, clearing, and settlement systems are essential components of the financial markets and exert considerable influence on the overall economy. While there have been considerable technological advancements in payment systems, the conventional systems still depend on centralized architecture, with inherent limitations and risks. The emergence of Distributed ledger technology (DLT) is being regarded as a potential solution to transform payment and settlement processes and address certain challenges posed by the centralized architecture of traditional payment systems (Bank for International Settlements, 2017). While proof-of-concept projects have demonstrated the technical feasibility of DLT, significant barriers still hinder its adoption and implementation. The overarching objective of this thesis is to contribute to the developing area of DLT application in payment, clearing and settlement systems, which is still in its initial stages of applications development and lacks a substantial body of scholarly literature and empirical research. This is achieved by identifying the socio-technical barriers to adoption and diffusion of blockchain-based payment systems and the solutions proposed to address them. Furthermore, the thesis examines and classifies various applications of DLT in central bank payment system functions, offering valuable insights into the motivations, DLT platforms used, and consensus algorithms for applicable use cases. To achieve these objectives, the methodology employed involved a systematic literature review (SLR) of academic literature on blockchain-based payment systems. Furthermore, we utilized a thematic analysis approach to examine data collected from various sources regarding the use of DLT applications in central bank payment system functions, such as central bank white papers, industry reports, and policy documents. The study's findings on blockchain-based payment systems barriers and proposed solutions; challenge the prevailing emphasis on technological and regulatory barriers in the literature and industry discourse regarding the adoption and implementation of blockchain-based payment systems. It highlights the importance of considering the broader socio-technical context and identifying barriers across all five dimensions of the social technical framework, including technological, infrastructural, user practices/market, regulatory, and cultural dimensions. Furthermore, the research identified seven DLT applications in central bank payment system functions. These are grouped into three overarching themes: central banks' operational responsibilities in payment and settlement systems, issuance of central bank digital money, and regulatory oversight/supervisory functions, along with other ancillary functions. Each of these applications has unique motivations or value proposition, which is the underlying reason for utilizing in that particular use case

    Assessing the Role and Regulatory Impact of Digital Assets in Decentralizing Finance

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    This project will explore the development of decentralized financial (DeFi) markets since the first introduction of digital assets created through the application of a form of distributed ledger technology (DLT), known as blockchain, in 2008. More specifically, a qualitative inquiry of the role of digital assets in relation to traditional financial markets infrastructure will be conducted in order to answer the following questions: (i) can the digital asset and decentralized financial markets examined in this thesis co-exist with traditional assets and financial markets, and, if so, (ii) are traditional or novel forms of regulation (whether financial or otherwise) needed or desirable for the digital asset and decentralized financial markets examined herein? The aim of this project will be to challenge a preliminary hypothesis that traditional and decentralized finance can be compatible; provided, that governments and other centralized authorities approach market innovations as an opportunity to improve existing monetary infrastructure and delivery of financial services (both in the public and private sector), rather than as an existential threat. Thus, this thesis seeks to establish that, through collaborating with private markets to identify the public good to which DeFi markets contribute, the public sector can foster an appropriate environment which is both promotive and protective of the public interest without unduly stifling innovation and progress
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