Secure Information Sharing with Distributed Ledgers

In 2009, blockchain technology was first introduced as the supporting database technology for digital currencies. Since then, more advanced derivations of the technology have been developed under the broader term Distributed Ledgers, with improved scalability and support for general-purpose application logic. As a distributed database, they are able to support interorganizational information sharing while assuring desirable information security attributes like non-repudiation, auditability and transparency. Based on these characteristics, researchers and practitioners alike have begun to identify a plethora of disruptive use cases for Distributed Ledgers in existing application domains. While these use cases are promising significant efficiency improvements and cost reductions, practical adoption has been slow in the past years. This dissertation focuses on improving three aspects contributing to slow adoption. First, it attempts to identify application areas and substantiated use cases where Distributed Ledgers can considerably advance the security of information sharing. Second, it considers the security aspects of the technology itself, identifying threats to practical applications and detection approaches for these threats. And third, it investigates success factors for successful interorganizational collaborations using Distributed Ledgers

Risks and opportunities in arbitrage and market-making in blockchain-based currency markets. Part 1 : Risks

This study provides a practical introduction to high-frequency trading in blockchain-based currency markets. These types of markets have some specific characteristics that differentiate them from the stock markets, such as a large number of trading exchanges (centralized and decentralized), relative simplicity in moving funds from one exchange to another, and the large number of new currencies that have very little liquidity. This study analyzes the possible risks that specifically characterize this type of trading operation, the potential opportunities, and the algorithms that are mostly used, providing information that can be useful for practitioners who intend to operate in these markets by providing (and risking) liquidity

Tokenization of Real Estate on Blockchain

This thesis presents research at the junction of law, governance, blockchain technology and real estate. The concept of real estate tokenization includes legal, technological, and organizational aspects. The research introduces a theory of a Title Token - a digital record of ownership on the blockchain. It is discussed the principle of technological neutrality, where the traditional land (property) registry is not necessarily abandoned in favor of blockchains, but instead, people gain the right to choose. The key output of this research is an architecture of the system presented as a cross-blockchain protocol designed to support free choice and transferability of assets across blockchains. Another important feature of the protocol is enforceability to address the constraint of the blockchain technology, i.e., the intolerance to retroactive transactions. To resolve disputes and other legal issues, the protocol provides a framework for smart laws and digital authorities. Among objects of interest were questions on the effectiveness of governance and bureaucracy, corruption, automation, fraud on the market, and the role of the government and other intermediaries in the protection of property rights and interests. The multilevel analysis undertaken in this thesis is a preliminary step towards making any policymaking suggestion. It also aims at delivering a solid ground for further research and experimentation. Such analysis aims to address the thorny issue of effectively applying emergent technologies to law and governance. The outcome is a set of reflections and conclusions for policymakers and researchers regarding the capabilities and limits of blockchain technology, wrapped into a consistent concept of improving the current system

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

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

An assessment of the potential for legal redress for systematic errors in unpermissioned blockchain technology under English law

This thesis focuses on the potential for legal redress to be afforded to users who suffer loss resulting from transactions impacted by systematic errors in unpermissioned blockchains. Blockchain technology, which enables a cryptographically secure form of record keeping, is an emerging topic that has the potential to be adopted in many contexts, notably in cryptocurrencies. Unpermissioned blockchain technology provides a unique and decentralised technology in which anyone can participate or alter, and it gives rise to questions as to its compatibility with traditional legal frameworks. The regulatory landscape concerning unpermissioned blockchain technology has hitherto largely focused on the issue of money laundering via cryptocurrencies. However, this has resulted in limited legal protection for users in respect of liability for systematic errors. This thesis will explore the potential for development of the current English legal framework to enable protection to users who suffer loss attributable to systematic errors. Further to this, there shall be the exploration of creative legal solutions for regulating unpermissioned blockchain with the aim of enhanced clarity and legal protection for users in three different contexts: peer to peer, cryptocurrency exchange and DeFi exchange transactions. The public are most likely to encounter unpermissioned blockchain technology in these contexts, through cryptocurrency trading, and therefore risks in each instance may present the most likely case for regulation. Employing a decentred view of regulation, Ostrom’s self-management principles are drawn upon as one potential model of self-regulation that might be adapted for unpermissioned blockchain technology

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

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

Disrupting Finance

This open access Pivot demonstrates how a variety of technologies act as innovation catalysts within the banking and financial services sector. Traditional banks and financial services are under increasing competition from global IT companies such as Google, Apple, Amazon and PayPal whilst facing pressure from investors to reduce costs, increase agility and improve customer retention. Technologies such as blockchain, cloud computing, mobile technologies, big data analytics and social media therefore have perhaps more potential in this industry and area of business than any other. This book defines a fintech ecosystem for the 21st century, providing a state-of-the art review of current literature, suggesting avenues for new research and offering perspectives from business, technology and industry