10,112 research outputs found
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Bitcoin (and other virtual currencies) have the potential to revolutionize the way that payments are processed, but only if they become ubiquitous. This Article argues that if virtual currencies are used at that scale, it would pose threats to the stability of the financial system—threats that have been largely unexplored to date. Such threats will arise because the ability of a virtual currency to function as money is very fragile—Bitcoin can remain money only for so long as people have confidence that bitcoins will be readily accepted by others as a means of payment. Unlike the U.S. dollar, which is backed by both a national government and a central bank, and the euro, which is at least backed by a central bank, there is no institution that can shore up confidence in Bitcoin (or any other virtual currency) in the event of a panic.
This Article explores some regulatory measures that could help address the systemic risks posed by virtual currencies, but argues that the best way to contain those risks is for regulated institutions to out-compete virtual currencies by offering better payment services, thus consigning virtual currencies to a niche role in the economy. This Article therefore concludes by exploring how the distributed ledger technology pioneered by Bitcoin could be adapted to allow regulated entities to provide vastly more efficient payment services for sovereign currency-denominated transactions, while at the same time seeking to avoid concentrating the provision of those payment services within “too big to fail” banks
Beyond Bitcoin: Issues in Regulating Blockchain Transactions
The buzz surrounding Bitcoin has reached a fever pitch. Yet in academic legal discussions, disproportionate emphasis is placed on bitcoins (that is, virtual currency), and little mention is made of blockchain technology—the true innovation behind the Bitcoin protocol. Simply, blockchain technology solves an elusive networking problem by enabling “trustless” transactions: value exchanges over computer networks that can be verified, monitored, and enforced without central institutions (for example, banks). This has broad implications for how we transact over electronic networks.
This Note integrates current research from leading computer scientists and cryptographers to elevate the legal community’s understanding of blockchain technology and, ultimately, to inform policymakers and practitioners as they consider different regulatory schemes. An examination of the economic properties of a blockchain-based currency suggests the technology’s true value lies in its potential to facilitate more efficient digital-asset transfers. For example, applications of special interest to the legal community include more efficient document and authorship verification, title transfers, and contract enforcement. Though a regulatory patchwork around virtual currencies has begun to form, its careful analysis reveals much uncertainty with respect to these alternative applications
Sustainable Development Report: Blockchain, the Web3 & the SDGs
This is an output paper of the applied research that was conducted between July 2018 - October 2019 funded by the Austrian Development Agency (ADA) and conducted by the Research Institute for Cryptoeconomics at the Vienna University of Economics and Business and RCE Vienna (Regional Centre of Expertise on Education for Sustainable Development).Series: Working Paper Series / Institute for Cryptoeconomics / Interdisciplinary Researc
Sustainable Development Report: Blockchain, the Web3 & the SDGs
This is an output paper of the applied research that was conducted between July 2018 - October 2019 funded by the Austrian Development Agency (ADA) and conducted by the Research Institute for Cryptoeconomics at the Vienna University of Economics and Business and RCE Vienna (Regional Centre of Expertise on Education for Sustainable Development).Series: Working Paper Series / Institute for Cryptoeconomics / Interdisciplinary Researc
Technologie RFID a Blochkchain v dodavatelském řetězci
The paper discusses the possibility of combining RFID and Blockchain technology to more effectively prevent counterfeiting of products or raw materials, and to solve problems related to production, logistics and storage. Linking these technologies can lead to better planning by increasing the transparency and traceability of industrial or logistical processes or such as efficient detection of critical chain sites.Příspěvek se zabývá možností kombinace technologií RFID a Blockchain pro účinnější zabránění padělání výrobků či surovin a řešení problémů spojených s výrobou, logistikou a skladováním. Spojení těchto technologií může vést k lepšímu plánování díky vyšší transparentnosti a sledovatelnosti průmyslových nebo logistických procesů, nebo například k efektivnímu zjišťování kritických míst řetězce
Do consumers need a ‘Bit’ more protection under Australian consumer laws? The regulatory risks and challenges of Bitcoin
The creation of Bitcoin, as a digital currency, has been a significant development in the world of finance, in that it provides an alternative method of payment to consumers and businesses who use Bitcoin as a means to buy or sell goods or simply as an investment arrangement. The use of Bitcoin, as a decentralised peer-to-peer network, provides numerous benefits as a payment system, but at the same time, creates challenges for consumers due to its unregulated nature and volatile status. Therefore, when Bitcoin users enter into agreements with Initial Coin Offering (ICO) hosted companies and Bitcoin exchange platforms, the conduct by these ICOs and exchanges may be misleading and unconscionable in relation to the information they disclose to the Bitcoin user (as a consumer). This paper will consider the application of the Competition and Consumer Act 2010 (Cth) and whether the Australian Consumer Law is suited to take into consideration Bitcoin transactions under the misleading and unconscionable provisions
TRIDEnT: Building Decentralized Incentives for Collaborative Security
Sophisticated mass attacks, especially when exploiting zero-day
vulnerabilities, have the potential to cause destructive damage to
organizations and critical infrastructure. To timely detect and contain such
attacks, collaboration among the defenders is critical. By correlating
real-time detection information (alerts) from multiple sources (collaborative
intrusion detection), defenders can detect attacks and take the appropriate
defensive measures in time. However, although the technical tools to facilitate
collaboration exist, real-world adoption of such collaborative security
mechanisms is still underwhelming. This is largely due to a lack of trust and
participation incentives for companies and organizations. This paper proposes
TRIDEnT, a novel collaborative platform that aims to enable and incentivize
parties to exchange network alert data, thus increasing their overall detection
capabilities. TRIDEnT allows parties that may be in a competitive relationship,
to selectively advertise, sell and acquire security alerts in the form of
(near) real-time peer-to-peer streams. To validate the basic principles behind
TRIDEnT, we present an intuitive game-theoretic model of alert sharing, that is
of independent interest, and show that collaboration is bound to take place
infinitely often. Furthermore, to demonstrate the feasibility of our approach,
we instantiate our design in a decentralized manner using Ethereum smart
contracts and provide a fully functional prototype.Comment: 28 page
Trends in crypto-currencies and blockchain technologies: A monetary theory and regulation perspective
The internet era has generated a requirement for low cost, anonymous and
rapidly verifiable transactions to be used for online barter, and fast settling
money have emerged as a consequence. For the most part, e-money has fulfilled
this role, but the last few years have seen two new types of money emerge.
Centralised virtual currencies, usually for the purpose of transacting in
social and gaming economies, and crypto-currencies, which aim to eliminate the
need for financial intermediaries by offering direct peer-to-peer online
payments.
We describe the historical context which led to the development of these
currencies and some modern and recent trends in their uptake, in terms of both
usage in the real economy and as investment products. As these currencies are
purely digital constructs, with no government or local authority backing, we
then discuss them in the context of monetary theory, in order to determine how
they may be have value under each. Finally, we provide an overview of the state
of regulatory readiness in terms of dealing with transactions in these
currencies in various regions of the world
A Decentralised Digital Identity Architecture
Current architectures to validate, certify, and manage identity are based on
centralised, top-down approaches that rely on trusted authorities and
third-party operators. We approach the problem of digital identity starting
from a human rights perspective, with a primary focus on identity systems in
the developed world. We assert that individual persons must be allowed to
manage their personal information in a multitude of different ways in different
contexts and that to do so, each individual must be able to create multiple
unrelated identities. Therefore, we first define a set of fundamental
constraints that digital identity systems must satisfy to preserve and promote
privacy as required for individual autonomy. With these constraints in mind, we
then propose a decentralised, standards-based approach, using a combination of
distributed ledger technology and thoughtful regulation, to facilitate
many-to-many relationships among providers of key services. Our proposal for
digital identity differs from others in its approach to trust in that we do not
seek to bind credentials to each other or to a mutually trusted authority to
achieve strong non-transferability. Because the system does not implicitly
encourage its users to maintain a single aggregated identity that can
potentially be constrained or reconstructed against their interests,
individuals and organisations are free to embrace the system and share in its
benefits.Comment: 30 pages, 10 figures, 3 table
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