Blockchain Technology: Intrinsic Technological and Socio-Economic Barriers

Buldas, Ahto; Draheim, Dirk; Nagumo, Takehiko; Vedeshin, Anton

doi:10.1007/978-3-030-63924-2_1

Cited by 12 publications

(14 citation statements)

References 24 publications

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“…A monetary system regulates the money supply. Governments are steering the money supply via a set of complex measures in a tiered, collateralized system [1,2] -in these endeavors they are supported by resp. team together with independent, legally trusted, accountable institutions [3,4].…”

Section: Introductionmentioning

confidence: 99%

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A Unifying Theory of Electronic Money and Payment Systems

Buldas¹,

Saarepera²,

Steiner³

et al. 2021

Preprint

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We present a general theory of payment systems that is capable of describing both traditional and electronic forms of payment. Starting from the three basic functions of money and general non-functional requirements, we derive the necessary and sufficient properties of technical implementations of money and payments. We describe possible scalable implementations of e-money schemes based on a general description of their data structures (money distributions) and payments. We define the notion of bill scheme, in which the value units are bills with invariant values, and show that only the bill scheme allows for scalable and practically efficient implementations through decomposition, where the components have to process a considerably smaller amount of data and a number of payment requests, compared to the whole system.

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Section: Introductionmentioning

confidence: 99%

“…They are large-scale systems that consist of organizational and technical measures [5]. Payment systems enable monetary systems; but must not be confused with them [1,2]. In the last decades, electronic payment systems have been crucial for the development of economies and societies.…”

Section: Introductionmentioning

confidence: 99%

A Unifying Theory of Electronic Money and Payment Systems

Buldas¹,

Saarepera²,

Steiner³

et al. 2021

Preprint

Self Cite

View full text Add to dashboard Cite

show abstract

“…The fact that the X-Road security server might exploit cryptographic data structures and algorithms that are also used by blockchain technology [51] (such as Merkle trees [48] for implementing audit logs) does not make it a blockchain. A blockchain -as introduced with the cryptocurrency Bitcoin by Satoshi Nakamoto in 2019 [50] -is a peer-to-peer network that implements a distributed, replicated database that achieves consensus via an entirely de-centralized consensus protocol [5,9]. X-Road makes no efforts to achieve consensus, except for authentication, despite there is no centralized ledger.…”

Section: X-road Usage Patternsmentioning

confidence: 99%

“…The KSI blockchain achieves a practical implementation of an idea that goes back to Stornetta et al in 1993 [6], i.e., it stores timestamped document hashes in a Merkle tree [48] and publishes the root hash of the tree periodically (e.g., once a month) in a newspaper (e.g., in the Financial Times, among others, in case of the Guardtime solution) [10,8], see also [9]. Solid Solid 23 (Social Linked Data) is a technology originally designed and advocated by Tim Berners Lee.…”

Section: Auxiliary Technologies For Digital Governmentmentioning

confidence: 99%

On State-Level Architecture of Digital Government Ecosystems: From ICT-Driven to Data-Centric

Draheim

Krimmer

Tammet

2021

Lecture Notes in Computer Science

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The "digital transformation" is perceived as the key enabler for increasing wealth and well-being by politics, media and the citizens alike. In the same vein, digital government steadily receives more and more attention. Digital government gives rise to complex, large-scale state-level system landscapes consisting of many players and technological systems -and we call such system landscapes digital government ecosystems. In this paper, we systematically approach the state-level architecture of digital government ecosystems. We will discover the primacy of the state's institutional design in the architecture of digital government ecosystems, where Williamson's institutional analysis framework supports our considerations as theoretical background. Based on that insight, we will establish the notion of data governance architecture, which links data assets with accountable organizations. Our investigation results into a digital government architecture framework that can help in large-scale digital government design efforts through (i) separation of concerns in terms of appropriate categories, and (ii) a better assessment of the feasibility of envisioned digital transformations. With its focus on data, the proposed framework perfectly fits the current discussion on moving from ICT-driven to data-centric digital government.

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“…In addition, existing tokenization platforms are limited as they either oversimplify today's established monetary system [17] or neglect the reality of today's institutional stack [17], [18] and (inter-)/organizational settings [19] or both. Typically, new tokenization solutions proclaim disruptiveness in their field (at different levels: organizations, business domains, the whole monetary system, or the whole society).…”

mentioning

confidence: 99%

An Ultra-Scalable Blockchain Platform for Universal Asset Tokenization: Design and Implementation

Buldas

Draheim

Gault³

et al. 2022

IEEE Access

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Since its introduction with Bitcoin in 2009, blockchain technology has received tremendous attention by academia, industry, politics and media alike, in particular, through extended blockchain-based visions such as smart contracts, decentralized finance, and, most recently, Web3. The critical prerequisite for any such blockchain-based vision to be turned into reality is uncapped scalability. Furthermore, and equally important, blockchain technology needs to transcend the stage of specialized tokens into an adaptive, heterogeneous tokenization platform. In this paper, we explain the Alphabill family of technologies that addresses both unlimited scalability and unrestricted adaptivity. We deliver a sharded blockchain technology with unlimited scalability and performance, called KSI Cash, which is based on a new form of electronic money scheme, the bill scheme. We present performance tests of KSI Cash that we have conducted with the European Central Bank and a group of eight national central banks from the Eurosystem in order to assess the technological feasibility of a digital euro. We show the system operating with 100 million wallets and 15 thousand transactions per second (under simulation of realistic usage); having an estimated carbon footprint of 0.0001g CO2 per transaction (Bitcoin = 100 kg and more). Furthermore, we show the system operating with up to 2 million payment orders per second, an equivalent of more than 300,000 transactions per second (in a laboratory setting with the central components of KSI Cash), scaling linearly in terms of the number of deployed shards. We explain, in detail, the key concepts that unlock this performance (i.e., the concepts of the bill money scheme). The results provide evidence that the scalability of our technology is unlimited in both permissioned and permissionless scenarios, resulting into the Alphabill Money technology. Next, we contribute the architecture of a universal tokenization platform that allows for universal asset tokenization, transfer and exchange as a global medium of exchange, called Alphabill platform. We reveal the crucial conceptual and technical contributions of the platform's architecture and their interplay, including the data structures of KSI Cash and Alphabill Money, the dust collection solution of Alphabill Money, and the atomic swap solution of the Alphabill platform.

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Blockchain Technology: Intrinsic Technological and Socio-Economic Barriers

Cited by 12 publications

References 24 publications

A Unifying Theory of Electronic Money and Payment Systems

A Unifying Theory of Electronic Money and Payment Systems

On State-Level Architecture of Digital Government Ecosystems: From ICT-Driven to Data-Centric

An Ultra-Scalable Blockchain Platform for Universal Asset Tokenization: Design and Implementation

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