Blockchain-Based Distributed Trust and Reputation Management Systems: A Survey

Distributed Ledger Technologies (DLTs), like Blockchain, are characterized by features such as transparency, traceability, and security by design. These features make the adoption of Blockchain attractive to enhance information security, privacy, and trustworthiness in very different contexts. This paper provides a comprehensive survey and aims at analyzing and assessing the use of Blockchain in the context of Distributed Trust and Reputation Management Systems (DTRMS). The analysis includes academic research as well as initiatives undertaken in the business domain. The paper defines two taxonomies for both Blockchain and DTRMS and applies a Formal Concept Analysis. Such an approach allowed us to identify the most recurrent and stable features in the current scientific landscape and several important implications among the two taxonomies. The results of the analysis have revealed significant trends and emerging practices in the current implementations that have been distilled into recommendations to guide Blockchain's adoption in DTRMS systems

Fintech and the future of financial services: What are the research gaps?

New financial technologies (FinTech) have erupted around the world. Consequently, there has been a considerable increase in academic literature on FinTech over the last five years. Research tends to be scantily connected with no coherent research agenda. Signi - cant research gaps and important questions remain. There is much work to be done before this area becomes an established academic discipline. This paper offers coherent research themes formulated through focus group meetings with policymakers and academics, and also based on a critical assessment of the literature. We outline seven key research gaps with questions that could form the basis of academic study. If these are addressed it would help this area become an established academic discipline

On Cyber Risk Management of Blockchain Networks: A Game Theoretic Approach

Open-access blockchains based on proof-of-work protocols have gained tremendous popularity for their capabilities of providing decentralized tamper-proof ledgers and platforms for data-driven autonomous organization. Nevertheless, the proof-of-work based consensus protocols are vulnerable to cyber-attacks such as double-spending. In this paper, we propose a novel approach of cyber risk management for blockchain-based service. In particular, we adopt the cyber-insurance as an economic tool for neutralizing cyber risks due to attacks in blockchain networks. We consider a blockchain service market, which is composed of the infrastructure provider, the blockchain provider, the cyber-insurer, and the users. The blockchain provider purchases from the infrastructure provider, e.g., a cloud, the computing resources to maintain the blockchain consensus, and then offers blockchain services to the users. The blockchain provider strategizes its investment in the infrastructure and the service price charged to the users, in order to improve the security of the blockchain and thus optimize its profit. Meanwhile, the blockchain provider also purchases a cyber-insurance from the cyber-insurer to protect itself from the potential damage due to the attacks. In return, the cyber-insurer adjusts the insurance premium according to the perceived risk level of the blockchain service. Based on the assumption of rationality for the market entities, we model the interaction among the blockchain provider, the users, and the cyber-insurer as a two-level Stackelberg game. Namely, the blockchain provider and the cyber-insurer lead to set their pricing/investment strategies, and then the users follow to determine their demand of the blockchain service. Specifically, we consider the scenario of double-spending attacks and provide a series of analytical results about the Stackelberg equilibrium in the market game

The State of Crypto: How Blockchain Changes the Private Money Debate and the Innovation of Digital Value

This paper seeks to explore how cryptocurrencies improve on past issues with private currencies and assess where they fit within the broader economic and regulatory context. This paper finds that blockchain technology provides a solid foundation for cryptocurrencies to improve on many of the past issues associated with private currencies, but concludes that, given the infancy of the industry and the lack of an established regulatory framework, we cannot confirm that they are truly infallible, nor that they provide a clear answer to the debate over whether private currencies actually improve the financial system as laid out by Hayek, Ingham, and Selgin. We conclude that cryptoassets are creating a more inclusive and efficient economic system overall by spurring improvements to outdated processes, expanding access to banking and finance, improving transparency within private and government institutions, and forcing regulatory bodies to update and formulate legislation suited to the digital age

Implementing a Central Bank Issued Digital Currency with Economic Implications Considerations

A central bank-issued digital currency (CBDC) could solve the volatility of a privately-issued cryptocurrency as well as keep intact its potential benefits. This research intended to analyze the possibilities for implementing a CBDC in a viable format that is also Shariah-compliant which may have the capacity to tackle issues plaguing the current financial system. We discuss possible scenarios and the resulting impact and consequences of CBDC implementation, through a deep examination of the benefits, opportunities, costs and issues of several conceptual formats. Methodologically, we used qualitative, comparative and analytical assessments on the critical impact on crucial levers like dilution to monetary policy, and the stability of the financial system. Finally, we found that the best format was a non-interest bearing CBDC for the interbank settlement and wholesale payment systems which would have the least disruption to the economy but strongest monetary policy transmission

The Legal Classification of Cryptocurrency in South African Law: An Argument for Classification as Currency.

Cryptocurrency - and indeed the underlying blockchain technology in general - have the potential to become a dominant method of effecting the transfer of value in a manner that fundamentally shifts the way in which electronic transactions take place. South Africa is a strong emerging market with the potential to attract substantial investment in new technologies should its regulatory response to such innovation remain principled. The primary purpose of this dissertation is to investigate the most appropriate classification of cryptocurrency in South African law. The research is qualitative in nature. It considers selected aspects of the existing legislative framework and scholarly opinion in determining whether cryptocurrency is best classified as property or as currency. The necessary corollary of this research focus is to consider the fundamental importance of such a classification for legal policy design generally, and the practical effects thereof. This dissertation hypothesises that the value of the blockchain technology lies in its commercial viability and its potential scalability, particularly in the African context. Thus, the required objective of regulatory intervention should be to preserve the commercial viability of cryptocurrency and avoid stifling technological advancement, whilst simultaneously ensuring the protection of vulnerable users. The conclusion is that cryptocurrency is best classified as foreign currency. This dissertation acknowledges that although it is possible to fit such a classification into existing legislative frameworks, a more specialised structure is ultimately required. Additionally, it raises concern about the harm caused by reactive regulatory intervention and instead recommends a principled policy approach, cognisant of the need for maturation of the technology