How do Web 3.0, blockchain- and token-based businesses create and capture value?

The development of technology is constantly being driven forward. With that companies are in the need to adapt their business model to certain technologies to optimize their economic value. In the age of Web 3.0, blockchain technology and the possibilities and risk that come with decentralized applications and digital currencies plays a central role in the current state of technological development. Hence, it is of utmost importance to understand how this technology is used or can be used to optimize the company’s activities. This thesis aims to gain knowledge about the way businesses utilize blockchain technology to gain economic value. For that, the following research question has been examined: How do Web 3.0, blockchain- and token-based businesses create and capture value? To answer the question, existing literature about blockchain and business models has been reviewed and semi-structured interviews have been carried out. Specifically, the study looks at areas or existing business problems for which solutions can be found through the application or support of blockchain technology to generate or optimize economic value. Therefore, current literature as well as information collected through semi-structured interviews with four experts, founders, and employees in the German blockchain space have been analyzed. The research shows that the technology currently finds the most use in the financial sector and supply chain management, in which in a B2B relationship the value is created through offering a blockchain-based service network to improve security and transparency and the value is mostly captured through charging fees for that service.A fim de maximizar o seu valor económico, as empresas precisam de adaptar o seu modelo de negócio ao desenvolvimento de certas tecnologias. Na era Web 3.0, a tecnologia blockchain e as suas possibilidades e riscos, consequência de aplicações descentralizadas e moedas digitais, têm um papel importante no desenvolvimento tecnológico atual. Portanto, é da maior importância entender como esta tecnologia pode ser utilizada para melhorar as atividades das empresas. Esta dissertação tem como objetivo entender como é que as empresas utilizam a tecnologia blockchain de forma a obter valor económico. Para tal, a seguinte pergunta de investigação será analisada: Como é que a Web 3.0, Blockchain e empresas baseadas em tokens criam e obtêm valor? Para responder a esta pergunta, recorreu-se a literatura sobre blockchain e modelos de negócio, e foram realizadas entrevistas semiestruturadas. Este estudo analisa áreas ou problemas de empresas, para os quais é possível encontrar uma solução através da implementação ou ajuda da tecnologia blockchain de modo a gerar ou otimizar valor económico. Assim sendo, e para além da literatura, foi analisada a informação obtida através de entrevistas semiestruturadas com quatro especialistas, fundadores e funcionários do espaço blockchain alemão. Este estudo demonstra que esta tecnologia tem atualmente bastante utilidade no setor financeiro e na gestão de cadeia logística onde, numa relação B2B o valor é criado através da oferta de um serviço baseado em rede blockchain para melhorar a segurança e transparência, sendo que o valor é maioritariamente obtido através das taxas cobradas por esse serviço

The Causal Relationship between Cryptocurrencies and Other Major World Economic Assets: A Granger Causality Test

This study examines the causal relationship between cryptocurrencies and other major world economic assets, such as gold, stocks, oil, and bonds, using both Granger causality and correlation analyses. The study focuses on the period between 2018 and 2022, using a vector autoregressive model (VAR) to analyze data on cryptocurrencies and other major world economic assets, which collectively represent over 90% of the market during the observed period. Results show that correlation clearly identifies causal interdependency between cryptocurrencies and other major world economic assets and that the variation in cryptocurrencies increasingly explains other major world economic assets. The results reveal that there is Granger causality between the cryptocurrencies (Tether, USD Coin, and Binance USD) and the other major world economic assets (BOND, SP500, and GOLD). Additionally, the study finds evidence that market inefficiency in the cryptocurrency market increased between 2018 and 2022. The findings suggest that the properties of the cryptocurrency market are highly dynamic and that researchers should be hesitant to generalize the market properties observed during idiosyncratic periods. The relevant information is swiftly reflected in asset prices when investors are more interested in a news event, increasing volatility. Strong evidence suggests that volatility spill overs increase sharply at this time. The structure of these markets frequently changes, and a large number of cryptocurrencies appear and disappear every day. &nbsp

Levels of Decentralization and Trust in Cryptocurrencies: Consensus, Governance and Applications

Since the apparition of Bitcoin, decentralization has become an ideal praised almost religiously. Indeed, removing the need for a central authority prevents many forms of abuse that could be performed by a trusted third party, especially when there are no transparency and accountability mechanisms in place. Decentralization is however a very subtle concept that has limits. In this thesis, we look at the decentralization of blockchains at three different levels. First we look at the consensus protocol, which is the heart of any decentralized system. The Nakamoto protocol, used by Bitcoin, has been shown to induce centralization through the shift to mining pools. Additionally, it is heavily criticized for the enormous amount of energy it requires. We propose a protocol, Fantômette, that incorporates incentives at its core and that consumes much less energy than Bitcoin and other proof-of-work based cryptocurrencies. If the consensus protocol makes it possible to decentralize the enforcement of rules in a cryptocurrency, there is still the question of who decides on the rules. Indeed, if a central authority is able to determine what those rules are then the fact that they are enforced in a decentralized way does not make it a decentralized system. We study the governance structure of Bitcoin and Ethereum by making measurements of their GitHub repositories and providing quantitative ways to compare their level of centralization by using appropriate metrics based on centrality measures. Finally, many applications are now built on top of blockchains. These can also induce or straightforwardly lead to centralization, for example by requiring that users register their identities to comply with regulations. We show how identities can be registered on blockchains in a decentralized and privacy-preserving way