Cryptocurrencies offer decentralized peer-to-peer transactions without intermediaries.
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Peer-reviewed literature and reference texts establish that cryptocurrencies and decentralized finance applications utilize blockchain technology to facilitate peer-to-peer asset exchange and financial transactions without relying on traditional intermediaries.
Due to the involvement of a large number of intermediaries across different time zones in the correspondent banking process, existing interbank payment systems cannot provide cost-effective cross-border transactions. They also suffer from lack of transparency and long transaction delays. These issues can be solved by designing a cryptocurrency in an auditable manner using a permissioned blockchain where a group of authorities can govern the network. In this article, we propose a low-cost, seamless cross-border payment system based on an auditable cryptocurrency that enables unspent transaction output-based transactions in a consortium blockchain network. To manage the blockchain, participating countries execute the energy-efficient proof of authority consensus algorithm with equal rights. Unlike conventional cryptocurrencies, dynamic decentralized identifiers (DIDs) are used as transacting addresses so that self-manageable authentication can be performed on-chain without any interaction with a trusted third party. The identity of transacting parties is known to respective DID issuers only. This approach enables peer-to-peer transactions while protecting user privacy and ensuring transparency without jeopardizing auditability. For user convenience, multi-party computation and multi-signature protocols are also provided. The system was implemented in Python, and the transaction mechanism was tested. This paper can help with ongoing research on blockchain-based cross-border payment solutions worldwide.
AbstractThe number of users approaching the world of cryptocurrencies exploded in the last years, and consequently the daily interactions on their underlying distributed ledgers have intensified. In this paper, we analyze the flow of these digital transactions in a certain period of time, trying to discover important insights on the typical use of these technologies by studying, through complex network theory, the patterns of interactions in four prominent and different Distributed Ledger Technologies (DLTs), namely Bitcoin, DogeCoin, Ethereum, Ripple. In particular, we describe the Distributed Ledger Network Analyzer (DiLeNA), a software tool for the investigation of the transactions network recorded in DLTs. We show that studying the network characteristics and peculiarities is of paramount importance, in order to understand how users interact in the DLT. For instance, our analyses reveal that all transaction graphs exhibit small world properties.
Atomic swaps represent a groundbreaking advancement in decentralized asset exchange, enabling peer-to-peer trading of cryptocurrencies across different blockchains without the need for intermediaries. By utilizing smart contract technology, these swaps allow users to securely trade assets in a trustless environment, removing the need for centralized exchanges. This paper explores the technical underpinnings of atomic swaps, the benefits they offer over traditional exchange models, and their potential to shape the future of cross-chain transactions. We examine the core mechanisms of hash time-locked contracts (HTLCs), the role of liquidity pools, and the scalability challenges inherent in atomic swap technology. Furthermore, the paper discusses the broader implications of atomic swaps for decentralized finance (DeFi), financial sovereignty, and the global cryptocurrency ecosystem. As the market for decentralized exchanges continues to expand, atomic swaps may emerge as a vital tool for enhancing the efficiency, security, and inclusivity of digital asset trading.
Atomic swaps represent a groundbreaking advancement in decentralized asset exchange, enabling peer-to-peer trading of cryptocurrencies across different blockchains without the need for intermediaries. By utilizing smart contract technology, these swaps allow users to securely trade assets in a trustless environment, removing the need for centralized exchanges. This paper explores the technical underpinnings of atomic swaps, the benefits they offer over traditional exchange models, and their potential to shape the future of cross-chain transactions. We examine the core mechanisms of hash time-locked contracts (HTLCs), the role of liquidity pools, and the scalability challenges inherent in atomic swap technology. Furthermore, the paper discusses the broader implications of atomic swaps for decentralized finance (DeFi), financial sovereignty, and the global cryptocurrency ecosystem. As the market for decentralized exchanges continues to expand, atomic swaps may emerge as a vital tool for enhancing the efficiency, security, and inclusivity of digital asset trading.
Blockchain is a decentralized transaction and data management technology developed first for Bitcoin cryptocurrency. The interest in Blockchain technology has been increasing since the idea was coined in 2008. The reason for the interest in Blockchain is its central attributes that provide security, anonymity and data integrity without any third party organization in control of the transactions, and therefore it creates interesting research areas, especially from the perspective of technical challenges and limitations. In this research, we have conducted a systematic mapping study with the goa
Abstract The increasing trend of energy generation and management systems towards decentralized structures such as using renewable energy resources makes it necessary to use digital and smart platforms for exchanging information and even conducting financial transactions in a decentralized manner, known as the peer‐to‐peer model. The decentralized transaction verification of cryptocurrencies makes it possible to use these encrypted currencies and decentralized blockchain networks in energy management systems and carry out financial transactions related to carbon trading. Carbon and other greenhouse gas (GHG) emission trading systems reduce the competitiveness of fossil fuel projects in the market and accelerate investment in low‐carbon energy sources such as wind and photovoltaic power generation units. This market mechanism allows large entities such as countries and companies that emit GHGs into the atmosphere to buy and sell these gases. This paper reviews the blockchain solutions developed for carbon markets. Studies related to the design of smart contracts in the platform of blockchain are investigated. Special cryptocurrencies that are used in the field of green energy transactions and carbon trading are introduced. In addition, the application of artificial intelligence and game theory in energy trading is stated. The study of different blockchain frameworks for carbon trading shows that the use of decentralized platforms in carbon trading can have a significant impact
Regulation section. Decentralized exchanges (DEX) are a type of cryptocurrency exchange, which allow for either direct peer-to-peer, or Automated Market
Decentralized finance (often stylized as DeFi) provides financial instruments and services through smart contracts on a programmable, permissionless blockchain. This approach reduces the need for intermediaries such as brokerages, exchanges, or banks. DeFi platforms enable users to lend or borrow funds, speculate on asset price movements using derivatives, trade cryptocurrencies, insure against ri
Decentralized finance (often stylized as DeFi) provides financial instruments and services through smart contracts on a programmable, permissionless blockchain. This approach reduces the need for intermediaries such as brokerages, exchanges, or banks. DeFi platforms enable users to lend or borrow funds, speculate on asset price movements using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. The DeFi ecosystem is built on a layered architecture and highly composable building blocks. While some applications offer high interest rates, they carry high risks. Coding errors and hacks are a common challenge in DeFi. DeFi protocols exhibit varying degrees of decentralization, with truly decentralized protocols potentially acting as neutral infrastructure, while false decentralization leaves protocols open to…
Cryptocurrency is a well-developed blockchain technology application that is currently a heated topic throughout the world. The public availability of transaction histories offers an opportunity to analyze and compare different cryptocurrencies. In this paper, we present a dynamic network analysis of three representative blockchain-based cryptocurrencies: Bitcoin, Ethereum, and Namecoin. By analyzing the accumulated network growth, we find that, unlike most other networks, these cryptocurrency networks do not always densify over time, and they are changing all the time with relatively low node
July 2015. Ethereum allows anyone to deploy decentralized applications onto it, which anyone can then use. Decentralized finance (DeFi) applications provide
Ethereum is a decentralized blockchain with smart contract functionality. Ether (abbreviation: ETH) is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-source software.
Ethereum was conceived in 2013 by programmer Vitalik Buterin. Other founders include Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph
Ethereum is a decentralized blockchain with smart contract functionality. Ether (abbreviation: ETH) is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-source software.
Ethereum was conceived in 2013 by programmer Vitalik Buterin. Other founders include Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin. In 2014, development work began and was crowdfunded, and the network went live on 30 July 2015. Ethereum allows anyone to deploy decentralized applications onto it, which anyone can then use. Decentralized finance (DeFi) applications provide financial instruments that do not directly rely on financial intermediaries like brokerages, exchanges, or banks. This facilitates borrowing against cryptocurrency holdings or lending them out for interest. Ethereum allows users to create fungible (e.g. ERC-20) and non-fungible tokens (NFTs) with a variety of properties, and to create smart contracts that can receive, hold and send those assets in accordance with the contract's immutable code and a transaction's input data.
On 15 September 2022, Ethereum transitioned its consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS) in an update known as "The Merge", which cut the blockchain's energy usage by over 99%.
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