Token Model and Interpretation Function for Blockchain-Based FinTech Applications

Abstract

Financial Technology (FinTech) is considered a taxonomy that describes a wide range of ICT (information and communications technology) associated with financial transactions and related operations. Improvement of service quality is the main issue addressed in this taxonomy, and there are a large number of emerging technologies including blockchainbased cryptocurrencies and smart contracts. Due to its innovative nature in accounting, blockchain can also be used in lots of other FinTech contexts where token models play an important role for financial engineering. This paper revisits some of the key concepts accumulated behind this trend, and shows a generalized understanding of the technology using an adapted stochastic process. With a focus on financial instruments using blockchain, research directions toward stable applications are identified with the help of a newly proposed stabilizer: interpretation function of token valuation. The idea of adapted stochastic process is essential for the stabilizer, too.

Blockchain Technology Aimed at Solving Internet of Things Challenges: A Systematic Literature Review

“…[42] 2017 3 [11], [44], [45] 2018 12 [27], [41], [18], [20], [29], [18], [16], [26], [31], [10], [1], [17] 2019 9 [36], [35], [43], [28], [30], [24], [32], [39], [34] 2020 3 [19], [38], [40] 2021 3 [21], [48], [23] 2022 3 [33], [46], [37] Environment Related Studies Home [21], [11], [36] Companies [31], [10], [1], [39] Industry [45], [43], [26], [18] According to the results obtained, one of the consensus protocols mostly used by blockchain technology is POW or proof of work [17], [18], [20], since it is the most used protocol for cryptocurrencies, but in this case this protocol could not be used, because of the feature that consumes too many resources [26], [28], [29], …”

“…As can be seen, one of the benefits of blockchain technology is security [1], [10], [11], [17], [18], [20], [24], [27], [30], [31], [34], [38], [41], [42], [44], [46], evidenced by the way blockchain works, its ease of usage and the reliability it provides to users.…”

“…Related Studies Improved scalability [26], [33], [29], [36], [37] Improved security [34], [27], [41], [18], [20], [44], [42], [11], [31], [10], [1] , [17] , [30], [24] , [38] , [46] Improved response time [40], [32] Cost savings [35], [43], [40] Efficiency in the consumption of resources [23], [45], [21], [48] The most appropriate protocol is based on trust and the choice of nodes responsible for allowing or denying transactions within the IoT, improves response time by 25% compared to the use of a traditional consensus protocol such as POW, which takes 25% less time to receive and send information on a computer using this technology [32].…”