scholarly journals Monopoly without a Monopolist: An Economic Analysis of the Bitcoin Payment System

2021 ◽  
Author(s):  
Gur Huberman ◽  
Jacob D Leshno ◽  
Ciamac Moallemi
Keyword(s):  
Service Providers ◽  
Waiting Times ◽  
Transaction Processing ◽  
Payment System ◽  
Protocol Design ◽  
The Novel ◽  
Free Entry ◽  
Payment Systems ◽  
Blockchain Technology ◽  
Decentralized Design

Abstract Bitcoin provides its users with transaction-processing services which are similar to those of traditional payment systems. This article models the novel economic structure implied by Bitcoin’s innovative decentralized design, which allows the payment system to be reliably operated by unrelated parties called miners. We find that this decentralized design protects users from monopoly pricing. Competition among service providers within the platform and free entry imply no entity can profitably affect the level of fees paid by users. Instead, a market for transaction-processing determines the fees users pay to gain priority and avoid transaction-processing delays. The article (i) derives closed-form formulas of the fees and waiting times and studies their properties, (ii) compares pricing under the Bitcoin Payment System to that under a traditional payment system operated by a profit-maximizing firm, and (iii) suggests protocol design modifications to enhance the platform’s efficiency. The Appendix describes and explains the main attributes of Bitcoin and the underlying blockchain technology.

scholarly journals Penerapan Teknologi Blockchain Sebagai Media Pengamanan Proses Transaksi E-Commerce

2020 ◽  
Vol 5 (1) ◽  
pp. 28 ◽  
Author(s):  
Untung Rahardja ◽  
Qurotul Aini ◽  
Muhamad Yusup ◽  
Aulia Edliyanti
Keyword(s):  
Identity Management ◽  
Transaction Processing ◽  
Payment System ◽  
Security System ◽  
Payment Systems ◽  
Blockchain Technology ◽  
Transaction Process ◽  
Product Authenticity

The application of blockchain technology in an E-commerce service is a necessity in the transaction processing required by a security system to ensure data confidentiality.Through the SWOT method, blockchain technology can be applied as a security medium in the e-commerce transaction process. Unfortunately there are still very few e-commerce industries that use a blockchain-based platform, so there is still a lack of trust in the security of safe and decentralized business transactions.Specifically, there are 2 benefits of this research, the first is the security system for transaction processing through the implementation of the blockchain and the second is the payment system that is easier, more efficient and well documented. Please for students, lecturers and other parties in the transaction process. The use of Blockchain technology to streamline identity management, build approved systems and manage product authenticity, and is expected to synchronize data stored in the blockchain to all user networks. can make payment systems easier, more efficient and well-defined. Please for students, lecturers and other parties in the transaction process.

scholarly journals Digitalization of Payment Systems in Ukraine

2020 ◽  
Vol 8 (5) ◽  
pp. 4590-4596
Keyword(s):  
Service Providers ◽  
Banking System ◽  
Payment System ◽  
Security Level ◽  
Payment Systems ◽  
Theoretical Understanding ◽  
Basis Expansion ◽  
Methodical Approach ◽  
Financial Infrastructure ◽  
National Bank

The world is changing due to technological innovations that are reflected in both the customers’ needs and the payment systems themselves. Payment systems that operate on the territory of Ukraine have certain properties, which the potential client draws attention to when choosing one of them. Let's conduct complex research and we will propose solutions of a relevant scientific task which consists of the development of theoretical and methodological foundations, methodological approaches and practical recommendations on the implementation and improvement of the functioning of payment systems in Ukraine in the light of world experience. Modern payment systems are one of most the important and fundamental parts of Ukraine`s financial infrastructure. The article offers a theoretical understanding of the payment system and considers the peculiarities of the payment systems functioning in Ukraine at the present stage. The payment systems market and its structure are presented in details. Payments and transfers number are highlighted. The statistics on illegal payment card transactions are reviewed. The payment systems of the leading European countries are characterized. The prospects of the National Bank of Ukraine with the largest European payment systems are described. On a basis expansion of the structure of criteria of the importance of payment service providers and accounting of the presence of crucial participants in payment service providers is developed a methodical approach to the assessment of the priority of payment service providers. The practical value of the received results consists in their use for the development of normative legal acts of the National Bank of Ukraine, the safety of payment service provider of Ukraine regulating an order. Measures to increase payment system`s security level in Ukraine are outlined. For the banking system of Ukraine, European experience in the field of payment systems is very important, as today the concept of borders is quite conventional when it comes to payment services. In this regard, determining the priority of payment systems that operate in Ukraine is of particular importance, which determines the relevance of the chosen topic.

scholarly journals REASONS OF APPEARANCE AND ASSESSMENT FEATURES OF RISK IN ELECTRONIC PAYMENT SYSTEMS

2018 ◽  
pp. 6-10
Keyword(s):  
High Speed ◽  
New Technologies ◽  
Service Providers ◽  
Electronic Payment ◽  
Payment Systems ◽  
Single Chain ◽  
Business World ◽  
Blockchain Technology ◽  
Secure Environment ◽  
High Level

In this era of digital technology, when many new technologies were aimed at integrating new technologies, the blockchain turned out to be the most effective. Blockchain is an innovation in the virtual business world for creating a payment gateway that allows you to create a more secure environment for users. If we are talking about blockchain wallets, they are mainly designed to quickly and securely manage online payments. In this regard, the demand and popularity of the development of blockchain collages is constantly increasing. This article development of electronic payment systems study is devoted. The article discusses the issues of modeling and risk assessment, approaches to risk prevention in the field of electronic payments. In particular, a new blockchain technology wallets is being considered, which will make it possible to prevent a number of risks in electronic payment systems, allow payments to be made at high speed, ensuring a high level of security. Ultimately, companies are looking for convenient, fast and reliable payment systems to streamline processes, and blockchain technology has the potential to make all this a reality - and therefore we expect companies to increasingly look for payment service providers who can help them with access to blockchain . This is likely to be particularly relevant in areas with high levels of exposure, such as multicurrency payments or multi-country payments, which relatively small payment gateways comprehensively cover even in the world, not connected by a single chain. Entering the partner market of other states also apply for legal audits.

scholarly journals ELECTRONIC PAYMENT SYSTEM AND BLOCKCHAIN AS ITS VITAL PART

2020 ◽  
Author(s):  
M.Sh. Agzamova (Nuriddinova)
Keyword(s):  
Payment System ◽  
Review Article ◽  
Electronic Payment ◽  
Payment Systems ◽  
Vital Part ◽  
Blockchain Technology ◽  
Electronic Payment System

The proposed review article provides information on modern electronic payment systems, especially focusing on how the mechanism of bitcoin works, blockchain technology, also describes the scope of blockchain’s application

PROSPECTS FOR THE DEVELOPMENT OF THE LEGAL MECHANISM FOR THE FUNCTIONING OF PAYMENT SYSTEMS

2020 ◽  
Vol 13 (3) ◽  
pp. 079-084
Author(s):  
ELIZAVETA SALINA ◽  
Keyword(s):  
Legal Framework ◽  
Legal Regulation ◽  
Payment System ◽  
State University ◽  
Payment Systems ◽  
Proper Functioning ◽  
Money Transfer ◽  
Level Of Significance ◽  
Transfer Services ◽  
Legal Mechanism

1 Lomonosov Moscow State University, Moscow, Russia The presented research reveals an approach to the construction of a legal mechanism for the functioning of payment systems. The proposed approach is based on the application of the principles of legal regulation. The purpose of a work is to determine the existing legal mechanism for the functioning of payment systems, identify its drawbacks and propose a new approach to legal regulation to ensure the proper functioning of payment systems. The proposed approach to legal regulation takes into account the specifics of the functioning of payment systems, which consists in the presence of three elements in its activities: institutional, procedural and organizational. These elements reflect the subject structure of the payment system, the process of providing money transfer services by them, and the ways in which payment system entities interact during providing payment services. Each of the elements must be defined within the legal framework of the payment system to ensure its proper functioning. The proposed principles of legal regulation take into account the features of these elements, in particular, the principles are classified into three groups, depending on the element they affect. The paper describes ways to implement the principles in the legal mechanism: the possibility of their direct application, depending on the type of significance of the payment system, is analyzed. It is also concluded that the implementation of the principles in the legal mechanism will reduce the regulatory burden on payment systems by using an approach depending on the level of significance of the payment system. The paper defines the role of the principles, which is that the principles allow to eliminate the legal gaps in the legislation on the national payment system, and prevent the emergence of new gaps.

ANALYSIS OF THE SCO NATIONAL PAYMENT SYSTEMS AND PROPOSALS FOR OPTIMIZATION OF THE SETTLEMENTS IN SCO

2020 ◽  
Vol 2 (6) ◽  
pp. 147-158
Author(s):  
L. N. KRASAVINA ◽  
◽  
L. I. KHOMYAKOVA ◽  
Keyword(s):  
External Factor ◽  
Digital Technologies ◽  
Central Banks ◽  
Payment System ◽  
Payment Systems ◽  
Shanghai Cooperation Organization ◽  
Regional Features

The article discusses the features of the functioning of national payment systems of the countries of the Shanghai Cooperation Organization (SCO). The specifics of the payment systems of the SCO countries are revealed, the emphasis is placed on their regional features. The role of central banks in ensuring the stable and safe functioning of national payment systems is highlighted. The importance of the supervisory function of central banks in order to control the payment system operators of the SCO countries is emphasized. Forecasts of the development of remote and digital technologies in the payment sector are given taking into account the influence of a new external factor (pandemic).

scholarly journals Analysis of the Optimal Application of Blockchain-Based Smart Lockers in the Logistics Industry Based on FFD-SAGA and Grey Decision-Making

Symmetry ◽  
2021 ◽  
Vol 13 (2) ◽  
pp. 329
Author(s):  
Shen-Tsu Wang ◽  
Meng-Hua Li ◽  
Chun-Chi Lien
Keyword(s):  
Web Application ◽  
Success Factors ◽  
Service Providers ◽  
Cost Effective ◽  
Application Programming Interface ◽  
Fractional Factorial ◽  
Office Workers ◽  
Logistics Industry ◽  
Blockchain Technology ◽  
Multiple Attribute

Blockchain technology has been applied to logistics tracking, but it is not cost-effective. The development of smart lockers has solved the problem of repeated distribution to improve logistics efficiency, thereby becoming a solution with convenience and privacy compared to the in-store purchase and pickup alternative. This study prioritized the key factors of smart lockers using a simulated annealing–genetic algorithm by fractional factorial design (FFD-SAGA) and grey relational analysis, and investigated the main users of smart lockers by grey multiple attribute decision analysis. The results show that the Web application programming interface (API) concatenation and money flow provider are the key success factors of smart lockers, and office workers are the main users of the lockers. Hence, how to better meet the needs of office workers will be an issue of concern for service providers.

scholarly journals An Incentive-based Mechanism for Volunteer Computing Using Blockchain

2021 ◽  
Vol 21 (4) ◽  
pp. 1-22
Author(s):  
Ismaeel Al Ridhawi ◽  
Moayad Aloqaily ◽  
Yaser Jararweh
Keyword(s):  
Resource Sharing ◽  
Secure Communication ◽  
Service Providers ◽  
Volunteer Computing ◽  
Resource Usage ◽  
Content Filtering ◽  
Computing Device ◽  
Blockchain Technology ◽  
Smart Agriculture ◽  
Industrial Solutions

The rise of fast communication media both at the core and at the edge has resulted in unprecedented numbers of sophisticated and intelligent wireless IoT devices. Tactile Internet has enabled the interaction between humans and machines within their environment to achieve revolutionized solutions both on the move and in real-time. Many applications such as intelligent autonomous self-driving, smart agriculture and industrial solutions, and self-learning multimedia content filtering and sharing have become attainable through cooperative, distributed, and decentralized systems, namely, volunteer computing. This article introduces a blockchain-enabled resource sharing and service composition solution through volunteer computing. Device resource, computing, and intelligence capabilities are advertised in the environment to be made discoverable and available for sharing with the aid of blockchain technology. Incentives in the form of on-demand service availability are given to resource and service providers to ensure fair and balanced cooperative resource usage. Blockchains are formed whenever a service request is initiated with the aid of fog and mobile edge computing (MEC) devices to ensure secure communication and service delivery for the participants. Using both volunteer computing techniques and tactile internet architectures, we devise a fast and reliable service provisioning framework that relies on a reinforcement learning technique. Simulation results show that the proposed solution can achieve high reward distribution, increased number of blockchain formations, reduced delays, and balanced resource usage among participants, under the premise of high IoT device availability.

scholarly journals Clustered continuous-time random walks: diffusion and relaxation consequences

2012 ◽  
Vol 468 (2142) ◽  
pp. 1615-1628 ◽  
Author(s):  
Karina Weron ◽  
Aleksander Stanislavsky ◽  
Agnieszka Jurlewicz ◽  
Mark M. Meerschaert ◽  
Hans-Peter Scheffler
Keyword(s):  
Random Walks ◽  
Power Law ◽  
Continuous Time ◽  
Waiting Times ◽  
Scaling Limit ◽  
Fractional Diffusion ◽  
Diffusion Equations ◽  
The Novel ◽  
Fractional Diffusion Equations ◽  
Continuous Time Random Walks

We present a class of continuous-time random walks (CTRWs), in which random jumps are separated by random waiting times. The novel feature of these CTRWs is that the jumps are clustered. This introduces a coupled effect, with longer waiting times separating larger jump clusters. We show that the CTRW scaling limits are time-changed processes. Their densities solve two different fractional diffusion equations, depending on whether the waiting time is coupled to the preceding jump, or the following one. These fractional diffusion equations can be used to model all types of experimentally observed two power-law relaxation patterns. The parameters of the scaling limit process determine the power-law exponents and loss peak frequencies.

scholarly journals Towards Secure Network Computing Services for Lightweight Clients Using Blockchain

2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Yang Xu ◽  
Guojun Wang ◽  
Jidian Yang ◽  
Ju Ren ◽  
Yaoxue Zhang ◽  
...  
Keyword(s):  
Service Providers ◽  
Security Analysis ◽  
Service Provisioning ◽  
Network Computing ◽  
Security Risks ◽  
Blockchain Technology ◽  
Computing Services ◽  
Viable Solution ◽  
Secure Network ◽  
Iot Devices

The emerging network computing technologies have significantly extended the abilities of the resource-constrained IoT devices through the network-based service sharing techniques. However, such a flexible and scalable service provisioning paradigm brings increased security risks to terminals due to the untrustworthy exogenous service codes loading from the open network. Many existing security approaches are unsuitable for IoT environments due to the high difficulty of maintenance or the dependencies upon extra resources like specific hardware. Fortunately, the rise of blockchain technology has facilitated the development of service sharing methods and, at the same time, it appears a viable solution to numerous security problems. In this paper, we propose a novel blockchain-based secure service provisioning mechanism for protecting lightweight clients from insecure services in network computing scenarios. We introduce the blockchain to maintain all the validity states of the off-chain services and edge service providers for the IoT terminals to help them get rid of untrusted or discarded services through provider identification and service verification. In addition, we take advantage of smart contracts which can be triggered by the lightweight clients to help them check the validities of service providers and service codes according to the on-chain transactions, thereby reducing the direct overhead on the IoT devices. Moreover, the adoptions of the consortium blockchain and the proof of authority consensus mechanism also help to achieve a high throughput. The theoretical security analysis and evaluation results show that our approach helps the lightweight clients get rid of untrusted edge service providers and insecure services effectively with acceptable latency and affordable costs.

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