Managed Blockchain Based Cryptocurrencies with Consensus Enforced Rules and Transparency
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Central Banking in a Digital Age: Stock-Taking and Preliminary Thoughts
A p r i l 2 0 1 8 Over Central Banking in a Digital Age: Stock-Taking and Preliminary Thoughts Eswar Prasad ______________________________________________________________________ THIS PAPER IS ONLINE AT https://www.brookings.edu/research/how-will-fintech- and-digital-currencies-transform-central-banking ABOUT THE AUTHOR Eswar Prasad is the Tolani Senior Professor of Trade Policy at Cornell University. He is also a Senior Fellow in the Global Economy and Development Program at the Brookings Institution, where he holds the New Century Chair in International Economics, and a Research Associate at the National Bureau of Economic Research. A CKNOWLEDGEMENT S I am grateful to Isha Agarwal, Ritesh Shinde, Kaiwen Wang, Ethan Wu, Eva Zhang, and Yujin Zhang for excellent research assistance. I also thank my colleagues at Brookings, especially David Wessel, for thoughtful comments and discussions. Central Banking in a Digital Age: Stock -Taking and Preliminary Thoughts 2 HUTCHINS CENTER ON FISCAL & MONETARY POLICY AT BROOKINGS 1. Introduction This note provides a broad overview of how technological changes are likely to affect the practice of central banking. While the advent of decentralized cryptocurrencies such as Bitcoin has dominated the headlines, a broader set of changes wrought by advances in technology are likely to eventually have a more profound and lasting impact on central banks. While it is premature to speak of disruption of traditional concepts of central banking, it is worth considering if the looming changes to money, financial markets, and payments systems will have significant repercussions for the operation of central banks and their ability to deliver on key objectives such as low inflation and financial stability. -
Examining the Lightning Network on a Protocol Level
Examining the Lightning network on a protocol level Rene Pickhardt (Data Science Consultant) https://www.rene-pickhardt.de & https://twitter.com/renepickhardt München 19.7.2018 I've been told I should start any talk with something everybody in the audience should know A standard Bitcoin Transaction has 6 data fields ( The following is a brief summary of https://en.bitcoin.it/wiki/Transaction#Input ) ● Version number (4 Bytes) ● In-Counter (1-9 Bytes) ● List of inputs (depending on the Value of <In-Counter>) ● Out-Counter (1-9 Bytes) ● List of Outputs (depending on the Value of <Out-Counter>) ● Lock_time (4 Bytes) ( Bitcoin Transaction with 3 inputs and 2 outputs Data consists mainly of executable scripts! A chain of Bitcoin Transactions with 3 UTXO ● Outputs are references by the inputs ● The Script in the output defines how the transaction can be spent ● Owning Bitcoins means being able to spend the output of an unspent transaction ○ Provide an input script ○ Concatenate it with with some outputscript of an unspent transaction ○ The combined Script needs to evaluate to True Spending a Pay-to-PubkeyHash (standard TX) ● ScriptPubKey (aka the Output Script) ○ OP_DUP OP_HASH160 <pubKeyHash> OP_EQUALVERIFY OP_CHECKSIG ● ScriptSig: (aka the Input Script) ○ <sig> <pubKey> ● Explainations ○ OP_CODES are the instructions of the script language within Bitcoin ○ <data> is depicted like html tags with lesser than and greater than signs ○ The complete script is concatenated as Input || Output and then being executed on a Stack machine <sig> <pubKey> -
YEUNG-DOCUMENT-2019.Pdf (478.1Kb)
Useful Computation on the Block Chain The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters Citation Yeung, Fuk. 2019. Useful Computation on the Block Chain. Master's thesis, Harvard Extension School. Citable link https://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37364565 Terms of Use This article was downloaded from Harvard University’s DASH repository, and is made available under the terms and conditions applicable to Other Posted Material, as set forth at http:// nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of- use#LAA 111 Useful Computation on the Block Chain Fuk Yeung A Thesis in the Field of Information Technology for the Degree of Master of Liberal Arts in Extension Studies Harvard University November 2019 Copyright 2019 [Fuk Yeung] Abstract The recent growth of blockchain technology and its usage has increased the size of cryptocurrency networks. However, this increase has come at the cost of high energy consumption due to the processing power needed to maintain large cryptocurrency networks. In the largest networks, this processing power is attributed to wasted computations centered around solving a Proof of Work algorithm. There have been several attempts to address this problem and it is an area of continuing improvement. We will present a summary of proposed solutions as well as an in-depth look at a promising alternative algorithm known as Proof of Useful Work. This solution will redirect wasted computation towards useful work. We will show that this is a viable alternative to Proof of Work. Dedication Thank you to everyone who has supported me throughout the process of writing this piece. -
Virtual Currencies in the Eurosystem: Challenges Ahead
STUDY Requested by the ECON committee Virtual currencies in the Eurosystem: challenges ahead Monetary Dialogue July 2018 Policy Department for Economic, Scientific and Quality of Life Policies Authors: Rosa María LASTRA, Jason Grant ALLEN Directorate-General for Internal Policies EN PE 619.020 – July 2018 Virtual currencies in the Eurosystem: challenges ahead Monetary Dialogue July 2018 Abstract Speculation on Bitcoin, the evolution of money in the digital age, and the underlying blockchain technology are attracting growing interest. In the context of the Eurosystem, this briefing paper analyses the legal nature of privately issued virtual currencies (VCs), the implications of VCs for central bank’s monetary policy and monopoly of note issue, and the risks for the financial system at large. The paper also considers some of the proposals concerning central bank issued virtual currencies. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs. This document was requested by the European Parliament's Committee on Economic and Monetary Affairs. AUTHORS Rosa María LASTRA, Centre for Commercial Law Studies, Queen Mary University of London Jason Grant ALLEN, Humboldt-Universität zu Berlin Centre for British Studies, University of New South Wales Centre for Law Markets and Regulation ADMINISTRATOR RESPONSIBLE Dario PATERNOSTER EDITORIAL ASSISTANT Janetta CUJKOVA LINGUISTIC VERSIONS Original: EN ABOUT THE EDITOR Policy departments provide in-house and external expertise to support EP committees -
Pdf [2] Popper, N
Journal of Mathematical Finance, 2021, 11, 495-511 https://www.scirp.org/journal/jmf ISSN Online: 2162-2442 ISSN Print: 2162-2434 The Investors’ Behavior towards the Relationship between Bitcoin, Litcoin, Dash Coins, and Gold: A Portfolio Modeling Approach Asma Maghrebi, Fathi Abid Department of Management, Faculty of Economics and Management, Sfax, Tunisia How to cite this paper: Maghrebi, A. and Abstract Abid, F. (2021) The Investors’ Behavior towards the Relationship between Bitcoin, This study considers a market-based economy that is composed of two asset Litcoin, Dash Coins, and Gold: A Portfolio classes: one is a digital, cryptocurrency, and the other is real, gold. We dem- Modeling Approach. Journal of Mathemat- onstrated that coins like (BTC, LTC, and DASH) can substitute a traditional ical Finance, 11, 495-511. https://doi.org/10.4236/jmf.2021.113028 safe haven “gold” in an intertemporal investment portfolio to become a new form of safe haven. The cryptocurrency follows a Jump-diffusion process. How- Received: June 29, 2021 ever, gold prices follow an Ornstein-Uhlenbek process to characterize the Accepted: August 16, 2021 stochastic nature of the market. The stochastic optimal control approach, Published: August 19, 2021 combined with the strategic asset allocation and the intertemporal utility Copyright © 2021 by author(s) and theory, are used through the derivation of a Hamilton-Jacobi-Bellman (HJB) Scientific Research Publishing Inc. equation to determine an explicit solution of the optimal allocation problem This work is licensed under the Creative for investors with CRRA utility function. We considered the Gamma Lévy Commons Attribution International process to solve the optimization problem. -
Deviant Decentralized Exchange
DDEEVVXX Deviant Decentralized Exchange A hybrid exchange leveraging Smartcoins on the Bitshares (BTS) blockchain. CONTENTS 03 What is the current landscape for trading crypto assets? 05 Centralized Exchanges 08 Decentralized Exchanges 11 Hybrid Exchanges 13 DEVX Platform 14 Platform Overview 16 DEVX Smart Coin 17 DEVX off-chain engine - The DEVX Transient Protocol (DEVTP) 19 Trading Process 25 What is the status of development / roadmap for these innovations? 26 DEVX Team 03 Crypto assets are here to stay. According to Apple co-founder Steve Wozniak, Bitcoin and WHAT IS THE blockchain will be the next major IT revolution, and will achieve full CURRENT potential in a decade. According to LANDSCAPE FOR Paypal co-founder Peter Thiel, Bitcoin is the next Digital Gold. TRADING CRYPTO Since Bitcoin’s release in 2009, 1,622 altcoin variants have been issued. ASSETS? 2018 has already broken all records with 345 Initial Coin Offerings, and over US$ 7.7 billion of capital raised. DEVX the next revolution 04 Growth in the number of crypto assets has also driven an increase in crypto asset trading, in order to satisfy the requirements of the increasingly numerous universe of holders, investors, arbitrageurs, market makers, speculators and hedgers. There are presently more than 500 crypto asset exchanges to bring together buyers and sellers, where crypto assets are traded for either different digital currencies, or for other assets such as conventional fiat money. These exchanges operate mostly outside Western countries, and range from fully-online platforms to bricks-and-mortar businesses. Currently, almost two thirds of all daily global crypto asset trading volume results from activity on just ten of these exchanges. -
Blocksci: Design and Applications of a Blockchain Analysis Platform
BlockSci: Design and applications of a blockchain analysis platform Harry Kalodner Steven Goldfeder Alishah Chator [email protected] [email protected] [email protected] Princeton University Princeton University Johns Hopkins University Malte Möser Arvind Narayanan [email protected] [email protected] Princeton University Princeton University ABSTRACT to partition eectively. In fact, we conjecture that the use of a tra- Analysis of blockchain data is useful for both scientic research ditional, distributed transactional database for blockchain analysis and commercial applications. We present BlockSci, an open-source has innite COST [5], in the sense that no level of parallelism can software platform for blockchain analysis. BlockSci is versatile in outperform an optimized single-threaded implementation. its support for dierent blockchains and analysis tasks. It incorpo- BlockSci comes with batteries included. First, it is not limited rates an in-memory, analytical (rather than transactional) database, to Bitcoin: a parsing step converts a variety of blockchains into making it several hundred times faster than existing tools. We a common, compact format. Currently supported blockchains in- describe BlockSci’s design and present four analyses that illustrate clude Bitcoin, Litecoin, Namecoin, and Zcash (Section 2.1). Smart its capabilities. contract platforms such as Ethereum are outside our scope. Second, This is a working paper that accompanies the rst public release BlockSci includes a library of useful analytic and visualization tools, of BlockSci, available at github.com/citp/BlockSci. We seek input such as identifying special transactions (e.g., CoinJoin) and linking from the community to further develop the software and explore addresses to each other based on well-known heuristics (Section other potential applications. -
Accounting for and Auditing of Digital Assets Digital Assets Working Group
Practice aid Accounting for and auditing of digital assets Digital Assets Working Group Accounting Subgroup Matthew Schell, Chair Kevin Jackson Mark Murray Crowe LLP PwC RSM US LLP Michael Bingham Jin Koo Amy Park US Government Accountability BDO USA LLP Deloitte & Touche LLP Office Corey McLaughlin Beth Paul Brian Fields Cohen & Company PwC KPMG LLP Lan Ming Aleks Zabreyko Rahul Gupta Ernst & Young LLP Connor Group Grant Thornton LLP Christopher Moore Crowe LLP Auditing Subgroup Amy Steele, Chair Angie Hipsher-Williams Shelby Murphy Deloitte & Touche LLP Crowe LLP Deloitte & Touche LLP Michael Bingham Michael Kornstein Christian Randall US Government Accountability Office Ernst & Young LLP Cohen & Company Jay Brodish Sara Krople Jay Schulman PwC Crowe LLP RSM US LLP Damon Busse Bryan Martin Robert Sledge Baker Tilly Virchow Krause, LLP BDO USA LLP KPMG LLP Mary Grace Davenport Dylan McDermott Jagruti Solanki PwC Coinbase Aprio Jeremy Goss Grant Thornton LLP AICPA Senior Committees Financial Reporting Executive Committee Angela Newell, Chair Mark Crowley Jeff Sisk Kelly Ardrey Jr. Sean Lager Dusty Stallings Michelle Avery Mark Northan Lynne Triplett Lee Campbell Bill Schneider Mike Winterscheidt Cathy Clarke Rachel Simons Aleks Zabreyko Assurance Services Executive Committee Jim Burton, Chair Mary Grace Davenport Brad Muniz Christine Anderson Chris Halterman Dyan Rohol Daniel Balla Elaine Howle Kimberly Ellison-Taylor Jennifer Burns Bryan Martin Miklos Vasarhelyi Auditing Standards Board Tracy Harding, Chair AICPA staff Diana Krupica, -
Litecoin Emerges As the Next Dominant Dark Web Currency
REPORT Litecoin Emerges as the Next Dominant Dark Web Currency By Andrei Barysevich and Alexandr Solad Recorded Future CTA-2018-0208 CYBER THREAT ANALYSIS Executive Summary In mid-2016, Recorded Future noticed members of the cybercriminal underground discussing their growing dissatisfaction with Bitcoin as a payment vehicle, regardless of their geographical distribution, spoken language, or niche business. Recorded Future conducted an extensive analysis on 150 of the most prominent message boards, marketplaces, and illicit services, which unexpectedly revealed that Litecoin is surpassing other cryptocurrencies in preference, and is currently the second most dominant coin on the dark web after Bitcoin. Key Judgments ● In 2016, criminals began voicing their dissatisfaction with the performance and cost of initiating Bitcoin transactions. ● Upon initial assessment of underground chatter, it appeared Dash was slated to become the next major dark web currency. However, after further research, this was proven false. ● To obtain the most accurate statistical information, Recorded Future analyzed 150 of the most prominent message boards, marketplaces, and illicit services. ● Final results show that alongside Bitcoin, Litecoin is the second most accepted cryptocurrency, followed by Dash. Background Beginning in the middle of 2016, Recorded Future began noticing an increase in frequency of discussions regarding the functionality, security, and usability of cryptocurrency among members of the cybercriminal underground. Regardless of their geographical distribution, spoken language, or niche business, everyone was sharing their growing dissatisfaction with Bitcoin as a major payment vehicle. The meteoritic rise in popularity of Bitcoin among household users, speculators, and institutional investors around the world since mid-2017 has placed an enormous load on the blockchain network, resulting in larger payment fees. -
Coinbase Explores Crypto ETF (9/6) Coinbase Spoke to Asset Manager Blackrock About Creating a Crypto ETF, Business Insider Reports
Crypto Week in Review (9/1-9/7) Goldman Sachs CFO Denies Crypto Strategy Shift (9/6) GS CFO Marty Chavez addressed claims from an unsubstantiated report earlier this week that the firm may be delaying previous plans to open a crypto trading desk, calling the report “fake news”. Coinbase Explores Crypto ETF (9/6) Coinbase spoke to asset manager BlackRock about creating a crypto ETF, Business Insider reports. While the current status of the discussions is unclear, BlackRock is said to have “no interest in being a crypto fund issuer,” and SEC approval in the near term remains uncertain. Looking ahead, the Wednesday confirmation of Trump nominee Elad Roisman has the potential to tip the scales towards a more favorable cryptoasset approach. Twitter CEO Comments on Blockchain (9/5) Twitter CEO Jack Dorsey, speaking in a congressional hearing, indicated that blockchain technology could prove useful for “distributed trust and distributed enforcement.” The platform, given its struggles with how best to address fraud, harassment, and other misuse, could be a prime testing ground for decentralized identity solutions. Ripio Facilitates Peer-to-Peer Loans (9/5) Ripio began to facilitate blockchain powered peer-to-peer loans, available to wallet users in Argentina, Mexico, and Brazil. The loans, which utilize the Ripple Credit Network (RCN) token, are funded in RCN and dispensed to users in fiat through a network of local partners. Since all details of the loan and payments are recorded on the Ethereum blockchain, the solution could contribute to wider access to credit for the unbanked. IBM’s Payment Protocol Out of Beta (9/4) Blockchain World Wire, a global blockchain based payments network by IBM, is out of beta, CoinDesk reports. -
A Survey on Volatility Fluctuations in the Decentralized Cryptocurrency Financial Assets
Journal of Risk and Financial Management Review A Survey on Volatility Fluctuations in the Decentralized Cryptocurrency Financial Assets Nikolaos A. Kyriazis Department of Economics, University of Thessaly, 38333 Volos, Greece; [email protected] Abstract: This study is an integrated survey of GARCH methodologies applications on 67 empirical papers that focus on cryptocurrencies. More sophisticated GARCH models are found to better explain the fluctuations in the volatility of cryptocurrencies. The main characteristics and the optimal approaches for modeling returns and volatility of cryptocurrencies are under scrutiny. Moreover, emphasis is placed on interconnectedness and hedging and/or diversifying abilities, measurement of profit-making and risk, efficiency and herding behavior. This leads to fruitful results and sheds light on a broad spectrum of aspects. In-depth analysis is provided of the speculative character of digital currencies and the possibility of improvement of the risk–return trade-off in investors’ portfolios. Overall, it is found that the inclusion of Bitcoin in portfolios with conventional assets could significantly improve the risk–return trade-off of investors’ decisions. Results on whether Bitcoin resembles gold are split. The same is true about whether Bitcoins volatility presents larger reactions to positive or negative shocks. Cryptocurrency markets are found not to be efficient. This study provides a roadmap for researchers and investors as well as authorities. Keywords: decentralized cryptocurrency; Bitcoin; survey; volatility modelling Citation: Kyriazis, Nikolaos A. 2021. A Survey on Volatility Fluctuations in the Decentralized Cryptocurrency Financial Assets. Journal of Risk and 1. Introduction Financial Management 14: 293. The continuing evolution of cryptocurrency markets and exchanges during the last few https://doi.org/10.3390/jrfm years has aroused sparkling interest amid academic researchers, monetary policymakers, 14070293 regulators, investors and the financial press. -
Research and Evaluations in Social, Administrative and Educational Sciences
RESEARCH AND EVALUATIONS IN SOCIAL, ADMINISTRATIVE AND EDUCATIONAL SCIENCES EDITED BY Assist. Prof. Dr. Özlem KAYA AUTHORS Prof. Dr. Anil K. BERA Prof. Dr. Bülent GÜLOĞLU Assoc. Prof. Dr. Cevdet KIZIL Assoc. Prof. Dr. Ergun DEMIREL Assoc. Prof. Dr. Laura Sînziana CUCIUC ROMANESCU Assist. Prof. Dr. Ayhan BULUT Assist. Prof. Dr. Dilaysu ÇINAR Assist. Prof. Dr. Özlem KAYA Assist. Prof. Yılmaz DELİCE Dr. Abdullah TÜRK Dr. İlkay ERARSLAN Dr. Halil KÜÇÜKLER Dr. H. Vedat AKMAN Dr. Necip İhsan ARIKAN Dr. Osman DOĞAN Sevdenur KÜÇÜKLER RESEARCH AND EVALUATIONS IN SOCIAL, ADMINISTRATIVE AND EDUCATIONAL SCIENCES EDITED BY Assist. Prof. Dr. Özlem KAYA AUTHORS Prof. Dr. Anil K. BERA Prof. Dr. Bülent GÜLOĞLU Assoc. Prof. Dr. Cevdet KIZIL Assoc. Prof. Dr. Ergun DEMIREL Assoc. Prof. Dr. Laura Sînziana CUCIUC ROMANESCU Assist. Prof. Dr. Ayhan BULUT Assist. Prof. Dr. Dilaysu ÇINAR Assist. Prof. Dr. Özlem KAYA Assist. Prof. Yılmaz DELİCE Dr. Abdullah TÜRK Dr. İlkay ERARSLAN Dr. Halil KÜÇÜKLER Dr. H. Vedat AKMAN Dr. Necip İhsan ARIKAN Dr. Osman DOĞAN Sevdenur KÜÇÜKLER Copyright © 2021 by iksad publishing house All rights reserved. No part of this publication may be reproduced, distributed or transmitted in any form or by any means, including photocopying, recording or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. Institution of Economic Development and Social Researches Publications® (The Licence Number of Publicator: 2014/31220) TURKEY TR: +90 342 606 06 75 USA: +1 631 685 0 853 E mail: [email protected] www.iksadyayinevi.com It is responsibility of the author to abide by the publishing ethics rules.