Overview of Polkadot and its Design Considerations

In this paper we describe the design components of the heterogenous multi-chain protocol Polkadot and explain how these components help Polkadot address some of the existing shortcomings of blockchain technologies. At present, a vast number of blockchain projects have been introduced and employed with various features that are not necessarily designed to work with each other. This makes it difficult for users to utilise a large number of applications on different blockchain projects. Moreover, with the increase in number of projects the security that each one is providing individually becomes weaker. Polkadot aims to provide a scalable and interoperable framework for multiple chains with pooled security that is achieved by the collection of components described in this paper

Digital Inheritance in Web3: A Case Study of Soulbound Tokens and the Social Recovery Pallet within the Polkadot and Kusama Ecosystems

In recent years discussions centered around digital inheritance have increased among social media users and across blockchain ecosystems. As a result digital assets such as social media content cryptocurrencies and non-fungible tokens have become increasingly valuable and widespread, leading to the need for clear and secure mechanisms for transferring these assets upon the testators death or incapacitation. This study proposes a framework for digital inheritance using soulbound tokens and the social recovery pallet as a use case in the Polkadot and Kusama blockchain networks. The findings discussed within this study suggest that while soulbound tokens and the social recovery pallet offer a promising solution for creating a digital inheritance plan the findings also raise important considerations for testators digital executors and developers. While further research is needed to fully understand the potential impacts and risks of other technologies such as artificial intelligence and quantum computing this study provides a primer for users to begin planning a digital inheritance strategy and for developers to develop a more intuitive solution.Comment: To be published in IEEE Acces

Blockchain Nodes are Heterogeneous and Your P2P Overlay Should be Too: PODS

At the core of each blockchain system, parties communicate through a peer-to-peer (P2P) overlay. Unfortunately, recent evidence suggests these P2P overlays represent a significant bottleneck for transaction throughput and scalability. Furthermore, they enable a number of attacks. We argue that these performance and security problems arise because current P2P overlays cannot fully capture the complexity of a blockchain system as they do not offer flexibility to accommodate node heterogeneity. We propose a novel approach to address these issues: P2P Overlay Domains with Sovereignty (PODS), which allows nodes in a single overlay to belong to multiple heterogeneous groups, called domains. Each domain features its own set of protocols, tailored to the characteristics and needs of its nodes. To demonstrate the effectiveness of PODS, we design and implement two novel node discovery protocols: FedKad and SovKad. Using a custom simulator, we show that node discovery using PODS (SovKad) architecture outperforms both single overlay (Kademlia) and multi-overlay (FedKad) architectures in terms of hop count and success rate, though FedKad requires slightly less bandwidth

Facilitating cross-chain cryptocurrency exchanges: An inquiry into blockchain technology and interoperability with an emphasis on cryptocurrency arbitrage

Since the introduction and proliferation of the blockchain-based cryptocurrency Bitcoin, alternative cryptocurrencies also based on blockchain technology have exploded in number. It was once believed that one, or very few, cryptocurrencies would eventually dominate the market and drive out competitors. This assumption, however, was incorrect. Thousands of cryptocurrencies exist concurrently. The vast number of cryptocurrencies leads to a problem—what if the cryptocurrency that an individual possesses does not meet their current needs as well as another cryptocurrency might? The attempt to solve this problem has led to the rise of many cryptocurrency exchanges and exchange schemes. In this paper, we will discuss the motivations for an individual to be interested in exchanging two or more cryptocurrencies by describing and comparing various popular cryptocurrencies with different desirable attributes. While we will discuss these attributes, this paper will give special focus to arbitrage in particular. In addition, we will describe various cryptocurrency exchange schemes and their advantages and disadvantages. Finally, we contribute to the understanding of cryptocurrency exchangeability and interoperability by comparing the historical price data of several cryptocurrencies to determine how often arbitrage has been possible in the past

Factors driving enterprise adoption of blockchain technology

Amidst the rapidly evolving advancement of blockchain technology (BT), enterprises face notable challenges in leveraging its transformative potential, starting with a need to understand the technology and how it can be used for particular applications. Two challenges are that many BT trials have not been successful and large-scale implementations that have led to continued use are scarce. This research provides a comprehensive examination of factors that drive the successful adoption of BT for enterprise use cases. A dual-phased approach was employed. First, I introduce a taxonomy matrix correlating BT design characteristics with use case characteristics, offering a framework for BT design and benefits across different enterprise contexts. Second, I conducted case studies of five successful BT cases in large enterprises that led to the adoption in terms of continued use and contrasted them with one failure case. The data collection and analysis of the case studies encompassed technological, organizational, environmental, and inter-organizational variables that led to BT\u27s continued use. The cross-case analysis revealed that compatibility, relative advantage, and observability are primary technological factors contributing to continued use. Within the organizational dimension, organizational knowledge and internal characteristics emerged as crucial elements, while regulatory compliance came out to be a significant factor. Based on the cross-case analysis, I develop theoretical propositions about the factors that lead to the continued use of BT, which can be further validated and tested in future research

Towards Safer Smart Contracts: A Survey of Languages and Verification Methods

With a market capitalisation of over USD 205 billion in just under ten years, public distributed ledgers have experienced significant adoption. Apart from novel consensus mechanisms, their success is also accountable to smart contracts. These programs allow distrusting parties to enter agreements that are executed autonomously. However, implementation issues in smart contracts caused severe losses to the users of such contracts. Significant efforts are taken to improve their security by introducing new programming languages and advance verification methods. We provide a survey of those efforts in two parts. First, we introduce several smart contract languages focussing on security features. To that end, we present an overview concerning paradigm, type, instruction set, semantics, and metering. Second, we examine verification tools and methods for smart contract and distributed ledgers. Accordingly, we introduce their verification approach, level of automation, coverage, and supported languages. Last, we present future research directions including formal semantics, verified compilers, and automated verification

Developing a foundation for a globally coordinated approach to the taxation of crypto-asset transactions

Crypto-assets and blockchain technology have created much uncertainty within the field of taxation. While some jurisdictions have attempted to formulate responses, others have yet to meaningfully engage with the topic. In contrast to the taxation of the digitalised economy, a coordinated global approach to the taxation of crypto-asset transactions is notably lacking. Rather than focusing on individual jurisdictions, this study addresses the consequences of crypto-asset transactions within the international tax system. It begins by applying an adapted form of the constant comparison method traditionally employed in grounded theory research to a selection of crypto-assets white papers to inductively identify possible taxable events, and from these to develop ten transaction categories, each with definitive characteristics. These categories then form the basis of a doctrinal analysis of the nature within the international tax system of the income arising and its classification within the text of the articles of the model tax conventions. Finally, the study considers the potential future impact of measures to tax the digitalised economy. The study finds that while it is possible to classify each of the identified transaction categories within the articles of the model tax conventions, alternative constructions within treaties and existing differences in interpretation may still significantly impact the allocation of taxing rights. In addition, crypto-asset transactions may further challenge the role of the permanent establishment concept in determining taxing rights and contribute to base erosion. While such transactions may fall within the measures to tax the digitalised economy, the pseudonymous, decentralised nature of blockchain technology may frustrate the application of these measures. This study may inform individual jurisdictions in designing the scope and outcomes of a comprehensive response to crypto-asset transactions. It may also provide a basis for the classification of these transactions within the international tax system, and support the development of a globally coordinated response to the taxation of crypto-assets. Finally, it may contribute to the broader development of the taxation of the digitalised economy, in which crypto-asset transactions may play an increasingly significant role in the future