Realizing the Potential of Blockchain a Multistakeholder Approach to the Stewardship of Blockchain and Cryptocurrencies
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Central Banks and Digital Currencies a Revolution in Money
Central banks and digital currencies A revolution in money omfif.org Wednesday 28 April 2021, 12:00 UK/07:00 ET All sessions will take place live unless stated otherwise. 12:00-12:05 Welcome address: OMFIF 12:05-12:30 Keynote in-conversation: The first retail CBDC John Rolle, Governor, Central Bank of the Bahamas 12:30-13:30 Panel I: Retail CBDCs: policy implications and rollout strategies • The need for retail CBDC from a policy perspective • Programmability and its potential impact on monetary and fiscal policy • Addressing disintermediation concerns • Implementation strategies: bringing in banks and fintechs • Legal implications and common standards Speakers: Hanna Armelius, Senior Adviser, Payments Department Analysis and Policy Division, Sveriges Riksbank Neha Narula, Director, Digital Currency Initiative, Massachusetts Institute of Technology Jose Fernandez da Ponte, Vice President, General Manager Blockchain, Crypto and Digital Currencies, PayPal Atul Bhuchar, Executive Director & Group Payments Head, DBS Bank 13:30-13:45 BREAK: On-demand presentation: CBDCs and digital identity 13:45-14:45 Private roundtable: Introducing a digital yuan (invite only) Mu Changchun, Director, Digital Currency Research Institute, People’s Bank of China 14:45-15:00 BREAK: On-demand presentation: Solving offline functionality omfif.org 15:00-16:00 Panel II: The payments revolution from the consumer’s perspective • PsPs and CBDC landscape: How best to combat financial exclusion • Addressing consumers, merchants and sectors that lack digital infrastructures -
Beauty Is Not in the Eye of the Beholder
Insight Consumer and Wealth Management Digital Assets: Beauty Is Not in the Eye of the Beholder Parsing the Beauty from the Beast. Investment Strategy Group | June 2021 Sharmin Mossavar-Rahmani Chief Investment Officer Investment Strategy Group Goldman Sachs The co-authors give special thanks to: Farshid Asl Managing Director Matheus Dibo Shahz Khatri Vice President Vice President Brett Nelson Managing Director Michael Murdoch Vice President Jakub Duda Shep Moore-Berg Harm Zebregs Vice President Vice President Vice President Shivani Gupta Analyst Oussama Fatri Yousra Zerouali Vice President Analyst ISG material represents the views of ISG in Consumer and Wealth Management (“CWM”) of GS. It is not financial research or a product of GS Global Investment Research (“GIR”) and may vary significantly from those expressed by individual portfolio management teams within CWM, or other groups at Goldman Sachs. 2021 INSIGHT Dear Clients, There has been enormous change in the world of cryptocurrencies and blockchain technology since we first wrote about it in 2017. The number of cryptocurrencies has increased from about 2,000, with a market capitalization of over $200 billion in late 2017, to over 8,000, with a market capitalization of about $1.6 trillion. For context, the market capitalization of global equities is about $110 trillion, that of the S&P 500 stocks is $35 trillion and that of US Treasuries is $22 trillion. Reported trading volume in cryptocurrencies, as represented by the two largest cryptocurrencies by market capitalization, has increased sixfold, from an estimated $6.8 billion per day in late 2017 to $48.6 billion per day in May 2021.1 This data is based on what is called “clean data” from Coin Metrics; the total reported trading volume is significantly higher, but much of it is artificially inflated.2,3 For context, trading volume on US equity exchanges doubled over the same period. -
Overview of Crypto Currency`S Role in India
www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 Volume-8, Issue-1 February 2018 International Journal of Engineering and Management Research Page Number: 105-110 Overview of Crypto Currency`s Role in India Dr. R. Chandrasekaran1 and K. Anitha2 1Assistant Professor, Department of Management, Dr. N.G.P Arts and Science College, Coimbatore, INDIA 2Assistant Professor, Department of Commerce (Finance), Dr. N.G.P Arts and Science College, Coimbatore, INDIA 1Corresponding Author: [email protected] ABSTRACT Bitcoin Cryptocurrencies are digital assets that Bitcoin is a globalcrypto currency and digital use cryptography, an encryption technique, for security. payment system noted to be the first decentralized digital Cryptocurrencies are primarily used to buy and sell goods currency, as the system works lacking a central source or and services, though some newer cryptocurrencies also single overseer. It was developed by an unidentified person function to provide a set of rules or obligations for its or a set of people under the name Satoshi Nakamoto and holders—something we will discuss later. They possess no intrinsic value in that they are not redeemable for another released as open-source software in 2009.The arrangement commodity, such as gold. Unlike traditional currency, they is peer-to-peer, and dealings take place between users are not issued by a central authority and are not considered straight, without an midway. These transactions are legal tender. confirmed by network bulges and recorded in a public circulatedjournal called a block chain. Keywords-- Bitcoin, Cryptocurrency, Zebpay Bitcoins are formed as a recompense for a procedure known as mining. -
BLOCKCHAIN REVOLUTION: Surviving and Thriving in the 2Nd Era of the Internet
BLOCKCHAIN REVOLUTION: Surviving and Thriving in the 2nd Era of the Internet Alex Tapscott TWITTER: @alextapscott Swiss Re January 23rd, 2017 © 2016 Don Tapscott and Alex Tapscott. All Rights Reserved. The Technological Revolution mobility social big web data internet machine of things learning the cloud drones & robotics 2 | © 2016 The Tapscott Group. All Rights Reserved. The Technological Revolution mobility social big web data internet BLOCKCHAIN machine of things learning the cloud drones & robotics 3 | © 2016 The Tapscott Group. All Rights Reserved. The Internet of Information Web Photos Sites Word INFORMATION PDFs Docs PPT Voice Slides 4 | © 2016 The Tapscott Group. All Rights Reserved. The Internet of Information ▶ The Internet of Value Social Reputation Capital Intellectual Money property Loyalty Attestations Identity points ASSETS Contracts Deeds Carbon credits Energy ASSETS Coupons Other Financial Assets Bonds Premiums Music Art Votes Stocks Other Futures Receivables Swaps IOUs Visual Art Film 5 | © 2016 The Tapscott Group. All Rights Reserved. The Middleman 6 | © 2016 The Tapscott Group. All Rights Reserved. BLOCKCHAIN: The Second Era of the Internet 7 | © 2016 The Tapscott Group. All Rights Reserved. Just Another Block in the Chain 1 2 3 4 5 Block 53 Block50.dat Block51.dat Previous Block52.dat block: 00000zzxvzx5 Timestamp Proof of work: 00000090b41b 04.19.2016.09.14.5 x 3 Block53.dat Transaction: 94lxcv14 Community Reference to Distributed ledger New blocks added Permanent validation previous blocks time-stamp 8 | © 2016 The Tapscott Group. All Rights Reserved. 9 | © 2016 The Tapscott Group. All Rights Reserved. 10 | © 2016 The Tapscott Group. All Rights Reserved. Seven Transformations for a Prosperous World 1. -
Asymmetric Proof-Of-Work Based on the Generalized Birthday Problem
Equihash: Asymmetric Proof-of-Work Based on the Generalized Birthday Problem Alex Biryukov Dmitry Khovratovich University of Luxembourg University of Luxembourg [email protected] [email protected] Abstract—The proof-of-work is a central concept in modern Long before the rise of Bitcoin it was realized [20] that cryptocurrencies and denial-of-service protection tools, but the the dedicated hardware can produce a proof-of-work much requirement for fast verification so far made it an easy prey for faster and cheaper than a regular desktop or laptop. Thus the GPU-, ASIC-, and botnet-equipped users. The attempts to rely on users equipped with such hardware have an advantage over memory-intensive computations in order to remedy the disparity others, which eventually led the Bitcoin mining to concentrate between architectures have resulted in slow or broken schemes. in a few hardware farms of enormous size and high electricity In this paper we solve this open problem and show how to consumption. An advantage of the same order of magnitude construct an asymmetric proof-of-work (PoW) based on a compu- is given to “owners” of large botnets, which nowadays often tationally hard problem, which requires a lot of memory to gen- accommodate hundreds of thousands of machines. For prac- erate a proof (called ”memory-hardness” feature) but is instant tical DoS protection, this means that the early TLS puzzle to verify. Our primary proposal Equihash is a PoW based on the schemes [8], [17] are no longer effective against the most generalized birthday problem and enhanced Wagner’s algorithm powerful adversaries. -
Smart Contracts: Building Blocks for Digital Markets
1/25/2018 Nick Szabo -- Smart Contracts: Building Blocks for Digital Markets Smart Contracts: Building Blocks for Digital Markets Copyright (c) 1996 by Nick Szabo permission to redistribute without alteration hereby granted Glossary (This is a partial rewrite of the article which appeared in Extropy #16) Introduction The contract, a set of promises agreed to in a "meeting of the minds", is the traditional way to formalize a relationship. While contracts are primarily used in business relationships (the focus of this article), they can also involve personal relationships such as marraiges. Contracts are also important in politics, not only because of "social contract" theories but also because contract enforcement has traditionally been considered a basic function of capitalist governments. Whether enforced by a government, or otherwise, the contract is the basic building block of a free market economy. Over many centuries of cultural evolution has emerged both the concept of contract and principles related to it, encoded into common law. Algorithmic information theory suggests that such evolved structures are often prohibitively costly to recompute. If we started from scratch, using reason and experience, it could take many centuries to redevelop sophisticated ideas like property rights that make the modern free market work [Hayek]. The success of the common law of contracts, combined with the high cost of replacing it, makes it worthwhile to both preserve and to make use of these principles where appropriate. Yet, the digital revolution is radically changing the kinds of relationships we can have. What parts of our hard-won legal tradition will still be valuable in the cyberspace era? What is the best way to apply these common law principles to the design of our on-line relationships? Computers make possible the running of algorithms heretofore prohibitively costly, and networks the quicker transmission of larger and more sophsiticated messages. -
Prism: Scaling Bitcoin by 10000
Prism: Scaling Bitcoin by 10,000× Lei Yang∗ Vivek Bagaria† Gerui Wang‡ Mohammad Alizadeh∗ David Tse† Giulia Fanti§ Pramod Viswanath‡ ABSTRACT and throughput in the blockchain (§4). A recent theoretical paper Bitcoin is the first fully-decentralized permissionless blockchain described the core protocol and analyzed its security properties [6]. protocol to achieve a high level of security: the ledger it maintains While these theoretical results are promising, it is not clear has guaranteed liveness and consistency properties as long as the ad- how well they can translate into real-world performance. First, the versary has less compute power than the honest nodes. However, its Prism consensus protocol is much more complex than the longest throughput is only 7 transactions per second and the confirmation chain protocol: clients must maintain over 1000 distinct blockchains, latency can be up to hours. Prism is a new blockchain protocol that is which refer to each other to create an intricate directed acyclic graph designed to achieve a natural scaling of Bitcoin’s performance while (DAG) structure, and they must process blocks at very high rates maintaining its full security guarantees. We present an implementa- (e.g., 100-1000s of blocks per second at 100s of Mbps) to update these tion of Prism that achieves a throughput of over 70;000 transactions blockchains and confirm transactions. Second, Prism’s theoretical per second and confirmation latency of tens of seconds on networks analysis relies on several simplifying assumptions (e.g., round-based of up to 1000 EC2 Virtual Machines. The code can be found at [5]. -
Banking on Bitcoin: BTC As Collateral
Banking on Bitcoin: BTC as Collateral Arcane Research Bitstamp Arcane Research is a part of Arcane Crypto, Bitstamp is the world’s longest-running bringing data-driven analysis and research cryptocurrency exchange, supporting to the cryptocurrency space. After launch in investors, traders and leading financial August 2019, Arcane Research has become institutions since 2011. With a proven track a trusted brand, helping clients strengthen record, cutting-edge market infrastructure their credibility and visibility through and dedication to personal service with a research reports and analysis. In addition, human touch, Bitstamp’s secure and reliable we regularly publish reports, weekly market trading venue is trusted by over four million updates and articles to educate and share customers worldwide. Whether it’s through insights. their intuitive web platform and mobile app or industry-leading APIs, Bitstamp is where crypto enters the world of finance. For more information, visit www.bitstamp.net 2 Banking on Bitcoin: BTC as Collateral Banking on bitcoin The case for bitcoin as collateral The value of the global market for collateral is estimated to be close to $20 trillion in assets. Government bonds and cash-based securities alike are currently the most important parts of a well- functioning collateral market. However, in that, there is a growing weakness as rehypothecation creates a systemic risk in the financial system as a whole. The increasing reuse of collateral makes these assets far from risk-free and shows the potential instability of the financial markets and that it is more fragile than many would like to admit. Bitcoin could become an important part of the solution and challenge the dominating collateral assets in the future. -
Social Network
DEADLINE.com FROM THE BLACK WE HEAR-- MARK (V.O.) Did you know there are more people with genius IQ’s living in China than there are people of any kind living in the United States? ERICA (V.O.) That can’t possibly be true. MARK (V.O.) It is. ERICA (V.O.) What would account for that? MARK (V.O.) Well, first, an awful lot of people live in China. But here’s my question: FADE IN: INT. CAMPUS BAR - NIGHT MARK ZUCKERBERG is a sweet looking 19 year old whose lack of any physically intimidating attributes masks a very complicated and dangerous anger. He has trouble making eye contact and sometimes it’s hard to tell if he’s talking to you or to himself. ERICA, also 19, is Mark’s date. She has a girl-next-door face that makes her easy to fall for. At this point in the conversation she already knows that she’d rather not be there and her politeness is about to be tested. The scene is stark and simple. MARK How do you distinguish yourself in a population of people who all got 1600 on theirDEADLINE.com SAT’s? ERICA I didn’t know they take SAT’s in China. MARK They don’t. I wasn’t talking about China anymore, I was talking about me. ERICA You got 1600? MARK Yes. I could sing in an a Capella group, but I can’t sing. 2. ERICA Does that mean you actually got nothing wrong? MARK I can row crew or invent a 25 dollar PC. -
Piecework: Generalized Outsourcing Control for Proofs of Work
(Short Paper): PieceWork: Generalized Outsourcing Control for Proofs of Work Philip Daian1, Ittay Eyal1, Ari Juels2, and Emin G¨unSirer1 1 Department of Computer Science, Cornell University, [email protected],[email protected],[email protected] 2 Jacobs Technion-Cornell Institute, Cornell Tech [email protected] Abstract. Most prominent cryptocurrencies utilize proof of work (PoW) to secure their operation, yet PoW suffers from two key undesirable prop- erties. First, the work done is generally wasted, not useful for anything but the gleaned security of the cryptocurrency. Second, PoW is natu- rally outsourceable, leading to inegalitarian concentration of power in the hands of few so-called pools that command large portions of the system's computation power. We introduce a general approach to constructing PoW called PieceWork that tackles both issues. In essence, PieceWork allows for a configurable fraction of PoW computation to be outsourced to workers. Its controlled outsourcing allows for reusing the work towards additional goals such as spam prevention and DoS mitigation, thereby reducing PoW waste. Meanwhile, PieceWork can be tuned to prevent excessive outsourcing. Doing so causes pool operation to be significantly more costly than today. This disincentivizes aggregation of work in mining pools. 1 Introduction Distributed cryptocurrencies such as Bitcoin [18] rely on the equivalence \com- putation = money." To generate a batch of coins, clients in a distributed cryp- tocurrency system perform an operation called mining. Mining requires solving a computationally intensive problem involving repeated cryptographic hashing. Such problem and its solution is called a Proof of Work (PoW) [11]. As currently designed, nearly all PoWs suffer from one of two drawbacks (or both, as in Bitcoin). -
TRUST, but VERIFY: WHY the BLOCKCHAIN NEEDS the LAW Kevin Werbach†
TRUST, BUT VERIFY: WHY THE BLOCKCHAIN NEEDS THE LAW Kevin Werbach† ABSTRACT The blockchain could be the most consequential development in information technology since the Internet. Created to support the Bitcoin digital currency, the blockchain is actually something deeper: a novel solution to the age-old human problem of trust. Its potential is extraordinary. Yet, this approach may not promote trust at all without effective governance. Wholly divorced from legal enforcement, blockchain-based systems may be counterproductive or even dangerous. And they are less insulated from the law’s reach than it seems. The central question is not how to regulate blockchains but how blockchains regulate. They may supplement, complement, or substitute for legal enforcement. Excessive or premature application of rigid legal obligations will stymie innovation and forego opportunities to leverage technology to achieve public policy objectives. Blockchain developers and legal institutions can work together. Each must recognize the unique affordances of the other system. DOI: https://doi.org/10.15779/Z38H41JM9N © 2018 Kevin Werbach. † Associate Professor of Legal Studies and Business Ethics, The Wharton School, University of Pennsylvania. Email: [email protected]. Thanks to Dan Hunter for collaborating to develop the ideas that gave rise to this Article, and to Sarah Light, Patrick Murck, and participants in the 2017 Lastowka Cyberlaw Colloquium and 2016 TPRC Conference for comments on earlier drafts. 488 BERKELEY TECHNOLOGY LAW JOURNAL [Vol. 33:487 -
The Basics of Cryptocurrency February 2021
The Basics of Cryptocurrency February 2021 © 2021 What Is Cryptocurrency? The Basics of Cryptocurrency Key Players www.onepagethinking.net Overview Fiat Currency Cryptocurrency Uses of Crypto Blockchain Digital Wallet Cryptocurrency Network Investors Cryptocurrency (crypto) is a digital currency A way to understand cryptocurrency and its Crypto uses encryption technology to quickly Two common transactions Each crypto transaction is communicated to all participating peer-to-peer (P2P) computers Crypto is stored in that can be used to buy goods and services. It vocabulary is to compare it to the U.S. dollar. process, secure, and verify transactions. involve crypto: (1) the use of (nodes) in the crypto network. Each P2P node verifies the transaction according to network a digital wallet, Computer Network Storage Role: Safekeeping of Market Operators Influencers and Investors uses an online ledger and encryption to U.S currency is issued by the Federal Reserve Each transaction conducted in crypto is crypto to buy and sell goods and rules. A group of verified transactions form a block (like a link in a chain) which is added to secured by a 24- of Miners Role: Facilitate Efficient Role: Promote Investment Role: Mine and Validate Blocks, Add Digital Wallet and Private Key secure transactions. Bitcoin was released in System (a central bank), and as such is called published in a ledger (the “blockchain”) that is services, and (2) the acquisition the blockchain by the miner who wins a “guessing game” built into the system. Miners are word private key. Exchange of Cryptocurrency In, and Adoption of, Cryptocurrency (i.e., Owner’s Password) 2009 as open-source software, developed by “fiat” currency.