Block Chain Enabling Digitization of Financial Market: A Study on Technology behind Bitcoins Name: Amir LAMA TAMANG Student ID: 11586374 Instructor: Chandana Withana Course: Emerging Technology and Innovation ITC 571 Institution: Charles Sturt University Literature Review Student Name Amir LAMA TAMANG 11586374 Project Topic Title Block Chain Enabling the Growth, Transparency, Digitization of Financial Market: A Study On Technology Behind Bitcoins Version 1.0 _ Week 1 1 Reference in APA format Crosby, M., Pattanayak, P., Verma, S., & Kalyanaraman, V. (2016). Blockchain technology: Beyond bitcoin. Applied Innovation, 2, 6-10. URL of the Reference Authors Names and Emails Keywords in this Reference http://scet.berkeley.edu/wp-content/uploads/AIR-2016-Blockchain.pdf Michael Crosby, Sanjeev Verma, Pradhan Pattanayak, and Vignesh Kalyanaraman Block chain technology, Bitcoin, and Financial market. The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? The current financial system is centralized and has a middle body that manages the transactions. The purpose of this document is to evaluate how the block chain technology is applied in the financial and non-financial setting. The intention of the authors is to inform the readers on how financial institutions are adapting to the block chain technology. Description of the block chain technology. Application of the block chain technology in financial and non-financial settings. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process The adoption of the block chain technology has enhanced the security of financial transactions. For Instance, the block chain technology acts a public ledger whereby every transaction is added to the chain. Therefore, there are no unauthorized financial transactions which can take place. For transaction to be added to the block chain, it has to be fully verified via various mathematical calculations. Major Impact Factors in this Work This work highlights the key financial areas in which the Block chain technology is applied by the financial institutions. The authors have evaluated the existing financial market and noted the impact it will have. The block chain technology does not require a third party to safeguard and validate the online transaction process. Dependent Variable Independent Variable Success of asset transaction Entry validation Success of asset transaction Safeguard of entries. Success of asset transaction Preservation of historic record. Entry validation Safeguard of entries Relationship Among The Above 4 Variables in This article If the process of validating an entry fails, the transaction of an asset is bound to fail while if the validation of entry succeeds then the transaction process is assured to succeed. Feature of This Solution Contribution & The Value of This Work It entails a group of individuals known as miners. It has given rise to a new technology known as colored coins for digital assets. The authors described alternative block chains such as sidechains and colored coins and how they have been applied in managing digital assets and contract management. Analyse This Work By Critical Thinking The Tools That Assessed this Work The authors have first acknowledged the fault of the current financial system and explained how the block chain technology assists in solving the security threat. This work contains the explanation of the technology works which is key to understanding how the security issue is enhanced. They have theoretically justified their claim. They have used reports from previous researches. The graph report shows how the technology gained popularity in financial setting. Diagram/Flowchart 2 Reference in APA format Wyman, O. (2016). Blockchain in Capital Markets: The Prize and the Journey. euroclear, February. URL of the Reference Authors Names and Emails Keywords in this Reference http://www.oliverwyman.com/content/dam/oliver-wyman/global/en/2016/feb/BlockChain-In-Capital-Markets.pdf Oliver Wyman Block chain and capital market. The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Blockchain in Capital Markets: The Prize and the Journey The goal of Wyman is to assist capital market leaders understand the potential of the blockchain technology and lay out decisions and paths required in adopting the technology. A look of how blockchain might be applied in capital market. Examination of major hurdles involved in the adoption of the technology. Path to the adoption of the technology and potential use cases. The next steps of the capital market industry. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process Process Steps Advantage Disadvantage (Limitation) 1 Unpicking of components: enables the creation of single version of truth that can be used by every participant. Enhances the security of the capital market by developing a process that makes use of transparent real-time information and thus, quick validation of transaction N/A 2 Identifying key application areas of blockchain technology It helps to understand how the technology works and how it will impact capital market. 3 Examination of major hurdles. This step is important in identifying the problems which might be encountered as a result of adopting the technology. Major Impact Factors in this Work The major impact factors of Wyman’s work entails the speed of transaction verification, real-time transaction, and automatic supervision and reporting of a particular transaction. Input and Output Feature of This Solution Contribution in This Work The technology is highly scalable. The legislation and regulation of the technology. This work is very key because it helps in identifying on key hurdles of adopting the technology. Analyse This Work By Critical Thinking The Tools That Assessed this Work The purpose of Wyman’s report is to describe the adoption of this technology in capital market. He describes how the technology works, how its applied and hurdles which need to be handled. He intends to convince leaders of the capital market on the importance of adopting the use of the block chain technology. He theoretically justifies his work. Diagram/Flowchart 3 Reference in APA format Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. URL of the Reference Authors Names and Emails Keywords in this Reference http://www.cryptovest.co.uk/resources/Bitcoin%20paper%20Original.pdf Satoshi Nakamoto Bitcoin The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Bitcoin: A Peer-to-Peer Electronic Cash System The objective of this solution is to provide a way of handling the double-spending issue or problem. Online payment without the involvement of financial institutions. Digital signatures. Hashing encryption mechanism. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process Although most online transactions use the traditional approach more often, the system faces some weaknesses. Therefore, as a result there are some disputes which have to be settled by the financial institutions which results in an increase in transaction cost. Thus, the adoption of an electronic payment system which does not require a third party. The system is cryptographic proof which ensures that the security of transaction is enhanced. In this system, the owner of the bitcoin to another individual by first digitally signing the hash of the previous transaction and then adding the public key of the receiver at the end of the coin. The receiver verifies the information using a digital signature. Major Impact Factors in this Work Entails the introduction of timestamp server. The purpose of the timestamp server is to take the hash value of the blockchain and publish it so that miners can view it. It proves that that particular information existed before and thus, eliminates any cases of third party involvement in solving the transaction dispute. Input and Output Feature of This Solution Contribution in This Work Proof of work: it involves the process of scanning of a value which whenever its hashed it starts with a number which has zero bits. Nakamoto has played a crucial role in the adoption of the bitcoin system. He introduced a system which is decentralized and very safe and secure. Analyse This Work By Critical Thinking The Tools That Assessed this Work As Nakamoto notes in his work, the electronic payment system is quite secure and does not rely on trust of a third party. The proposed system is quite effective although as time goes on the mathematics has been becoming difficult every time. Nakamoto has incorporated both the theoretical and practical approach. In the practical part, he has done some calculations which are used by miners in verifying a particular transaction. The theoretical approach has entailed a critical description of transaction is verified. Diagram/Flowchart 4 Reference in APA format Enterprise, H. P. (2016). Business white paper. Blockchain in the financial services industry. URL of the Reference Authors Names and Emails Keywords in this Reference https://www.hpe.com/h20195/v2/GetPDF.aspx/4AA6-5864ENW.pdf Hewlett Packard Enterprise Blockchain technology The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Blockchain in the financial services industry The goal of this work is to explain how advancements in technology has resulted in the elimination of a third party. Description of a blockchain works. Key advantages blockchain technology. The implementation of the technology as it evolves. The current situation or landscape of the technology. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process Process Steps Advantage Disadvantage (Limitation) 1 Understanding how the technology works. Enables individuals involved in the transaction process to understand how the technology is secure N/A 2 Identifying the advantages of the technology Helps in better understanding of how the system works. Helps in identifying the strengths and weaknesses of the system. Major Impact Factors in this Work N/A Input and Output Feature of This Solution Contribution in This Work N/A Permissioned blockchain: it is only available to a particular group and thus, it is private. Has two distinct variants which are private and distributed permissioned. Permission-less blockchain: it is open to anyone and thus, can be categorized as public. The bitcoin technology is a clear example of permission-less technology. The Hewlett Packard Enterprise was able to provide the current situation of the technology in the financial market. Analyse This Work By Critical Thinking The Tools That Assessed this Work The author provides a clear report of the current state of the technology and how it is evolving while being implemented. The author is quite persuasive in the section where he presents the advantages of implementing the technology system. Hewlett Packard Enterprise have employed a theoretical approach in that they have provided a detailed description of the technology. Diagram/Flowchart Version 2.0 _ Week 2 5 Reference in APA format Wall, E., & Malm, G. (2016). Using Blockchain Technology and Smart Contracts to Create a Distributed Securities Depository. URL of the Reference Authors Names and Emails Keywords in this Reference http://lup.lub.lu.se/student-papers/record/8885750 Eric Wall, [email protected]. Gustaf Malm, [email protected]. Blockchain technology, smart contracts, and distributed system. The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Using Blockchain Technology and Smart Contracts to Create a Distributed Securities Depository. The aim of this paper is to show how Blockchain technology can be used to solve the current problem in the financial market. Some of the problems include lack interoperable financial infrastructures and disalignment of various business practices. The blockchain technology is decentralized. Uses cryptocurrency. It employs the use of smart contract. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process Wall and Malm first describe about how the technology works and give a brief description of Bitcoin and an abstract description of blockchain technology such as characteristics. After understanding how the technology works, the financial personnel are then introduced on classification of assets for security purposes and a description of how to trade the assets. A proposal of how to adopt the blockchain technology in financial institutions. Major Impact Factors in this Work The structure of blockchain can be considered in terms of a database. However, in this concept, it is a distributed database structure which entails adding of records continuously in chain blocks which are hashed for security purpose. The network is decentralized and thus, it enables the verification of actions of other available nodes in the network. This mode of network is suitable for scalability. Input and Output Feature of This Solution Contribution in This Work N/A Transparency: it ensures transparency of records for ownership of assets. immutability: the technology effectively minimizes counterparty risks which are associated with the settlement of third party groups in a transaction. Wall and Malm have described the consensus model which entails a discussion of proof-of-work, proof-of- stake, threshold signature scheme, and consensus ledgers. Analyse This Work By Critical Thinking The Tools That Assessed this Work There is clear and quite detailed description of how to validate the transaction process. This work contains elaborate illustrations of how proof-of work mathematical calculations are conducted which are suitable for any technology enthusiast to understand. However, the explanation of certain concepts is quite difficult to grasp and requires further research from various scholars. Descriptive analysis. The authors use the theoretical approach in describing how certain calculations are handled and what the concept entails. They have used graphs to try to prove how the technology is being adapted by various financial institutions. Diagram/Flowchart 6 Reference in APA format Cresitello, D.B. (2016). Application of the Blockchain for Authentication and Verification of Identity. URL of the Reference Authors Names and Emails Keywords in this Reference http://www.cs.tufts.edu/comp/116/archive/fall2016/bcresitellodittmar.pdf Ben Cresitello-Dittmar Blockchain The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Application of the Blockchain for Authentication and Verification of Identity The aim of this paper is to show how the blockchain technology identifies and individual by decentralizing of ownership credentials. Also, the paper aims to show how the technology grants access to particular information and eliminate the need of including a third party Problems associated with the current system: two-factor authentication. Addition of ID in blockchain technology. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process The authentication of a blockchain can be made possible by use of an ID. The ID simply entails a block of data that be verified by any other node in the network and only display necessary data. During the process of adding an ID, the technology binds a public key and then it transfers ownership to another user in terms of private key. It is through the private key that a user is allowed to sign a digital signature so as to verify the users in the network. The authentication of the user serves as a decentralized source of an authentication process. Major Impact Factors in this Work Dependent Variable Independent Variable Identity authentication ID Identity authentication Block chain data Identity authentication Encryption key Identity authentication Proof-of -work Current transaction block chain Previous transaction block chain Relationship Among The Above 4 Variables in This article The authentication of the identity of an individual in a transaction is always dependent on the user’s iD, encryption key, and proof-of-work. Without this variables identity authentication is not possible. Input and Output Feature of This Solution Contribution in This Work N/A The system is decentralized. The technology makes use of private and public key for authentication. The author describes how the technology successfully applies authentication of a user. This work is key to understanding the authentication process and how the public and private key works. Analyse This Work By Critical Thinking The Tools That Assessed this Work Cresitello-Dittmar uses a simple language that can be understood by any scholars. It is clear that the authentication process entails the use of an ID, private, and public key. The hash based encryption technique is secure when compared to the current two-authentication factor. However, this work is quite detailed on how the encryption works and therefore, it can leave a scholar hanging. Cresitello-Dittmar has used the descriptive research approach whereby he just describes the blockchain technology authentication process. This theory is theoretically based. Diagram/Flowchart N/A 7 Reference in APA format Böhme, R., Christin, N., Edelman, B., & Moore, T. (2015). Bitcoin: Economics, technology, and governance. The Journal of Economic Perspectives, 29(2), 213-238. URL of the Reference Authors Names and Emails Keywords in this Reference http://www.ingentaconnect.com/content/aea/jep/2015/00000029/00000002/art00010 Rainer Bohme. Nicolas Christin. Benjamin Edelman. Tyler Moore. Bitcoin, Miners. The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Bitcoin: Economics, Technology, and governance. The objective of this paper is to describe the benefits of bitcoin technology and its respective limitation. The paper addresses the need of a more private, less oversight, and more flexible form of payment. N/A The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process When the Bitcoin software is downloaded, and installed in the node, it creates a wallet file that stores a user’s bitcoin. Bitcoins are always identified as transactions. The Bitcoin network provides an access to blockchain’s structure that verifies a particular bitcoin transaction. These transactions are widely replicated and are accessible to everyone in the network. Major Impact Factors in this Work Scarcity is a very critical element for placing a value to any type of money. Scarcity is important in establishing price stability and monetary base of money. Bitcoin technology has been adopted as a mechanism which provides absolute scarcity. The technology issues new currency options to various private groups in a controlled environment and pace so as to provide an incentive. Input and Output Feature of This Solution Contribution in This Work N/A Regulatory option: it is difficult to regulate every user of the Bitcoin network because of geographical distribution, privacy protections, and quantity. Bitcoins can be considered as financial assets. Investments of Bitcoins as financial assets provides a wide diversification benefits. In this work, Bohme et al. describe various regulatory and privacy issues associated with the use of technology. Also, it contains important information about the future of the technology in financial settings. Analyse This Work By Critical Thinking The Tools That Assessed this Work The Bitcoin technology is an effective alternative approach for conducting transactions as described by Bohme et al. The authors have described key areas which raise a lot of debate among bitcoin users and traditional finance regulators. It is clear that there is a problem associated with the adoption if the new technology which has to be addressed. The theoretical approach was applied in this particular approach whereby the authors have employed the use of graphs to justify their claim about governance of the technology. Diagram/Flowchart 8 Reference in APA format Victoria, K. L. (2016). Impact from the blockchain technology on the Nordic capital market. URL of the Reference Authors Names and Emails Keywords in this Reference http://www.diva-portal.org/smash/record.jsf?pid=diva2:937451 Victoria Karlsson Lundstrom Blockchain technology and capital market. The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Impact from the Blockchain Technology on the Nordic Capital Market. The goal of this paper is to explore the effect of blockchain technology on capital market. Description of the relationship between capital market and the blockchain technology. Description of the regulatory and ethical aspects of the technology in capital marketing. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process Process Steps Advantage Disadvantage (Limitation) 1 Discussion of the problem Discussing the current problem affecting the capital markets helps understanding the risks the market faces. The capital market faces risk of being exposed to attacks and interfering with the regulations. 2 Identification of research questions and objectives Identifying the objectives of the research helps in highlighting possible impacts and issues associated with blockchain technology in a capital market setting. 3 Delimitation Helps to establish focus on blockchain technology and capital market Fails to incorporate transfer of money because of different workflows and regulations. 4 Choosing the method of collecting information: literature study and interview The information collected is concise and accurate. Major Impact Factors in this Work Dependent Variable Independent Variable Accuracy of response Accuracy of the interview questions Accuracy of response Accuracy of the interview questions Satisfaction of the answers Reliability of answers via telephone Satisfaction of answers Reliability of answers Face to face Relationship Among The Above 4 Variables in This article The accuracy of the answers provided by the respondents depend on how accurate the interview process was. This means that if the interview questions are not asked properly, the answers provided will not be accurate. The satisfaction of the answers depends on the reliability of the answers. If the answers are more reliable, it means that the answers to the interview are satisfactory. Input and Output Feature of This Solution Contribution in This Work Input Output Interview questions Reliability and accuracy of the questions. The integration of the technology to the capital market entails market stakeholders or participants, regulations, and ethical aspects. This work plays an important role in describing how the blockchain technology is being applied in the capital market. It also highlights key regulation issues associated with capital market and blockchain technology. Analyse This Work By Critical Thinking The Tools That Assessed this Work The blockchain technology is continuously being adopted in capital marketing situation. It is likely that the post-trade part of capital market will be highly prioritized during the implementation process. The technology is likely to develop and update the post-trade sector. However, the implementations of the technology are minor because of the conflicting ethical and regulation issues. The tool used is theoretical description of the literature study about the technology. Also, a qualitative analysis of the interview responses. Diagram/Flowchart Version 3.0 _ Week 3 9 Reference in APA format Buterin, V., Coleman, J., & Wampler-Doty, M. (2015). Notes on Scalable Blockchain Protocols (verson 0.3). URL of the Reference Authors Names and Emails Keywords in this Reference https://pdfs.semanticscholar.org/ae5b/c3aaf0e02a42f4cd41916072c87db0e04ac6.pdf Vitalik Buterin Jeff Coleman Matthew Wamper-Doty Scalable Blockchain, protocols. The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Scalable Blockchain Protocols: Version 0.3.2 The objective of this paper is to propose various techniques of achieving scalability in blockchain technology. Transactions are split into collations (manageable groups). Entails “sample and fall-back”: For validating the headers of collations for different individuals. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process This mechanism entails splitting of transactions into collations which do affect certain parts of the blockchain. It then incorporates sample and fall-back so as to validate the headers of different collations. So that a particular collation is termed as valid, a sample of validators is chosen randomly and if a bad collation is identified, the transaction is reverted. Theoretically, sampling is the only sufficient element rather than fall-back. Major Impact Factors in this Work N/A Input and Output Feature of This Solution Contribution in This Work N/A Has high degree of generalization. The design provides scalability for any particular underlying transition state. Consensus-neutral and works properly with the proof of work and proof of stake. This piece of work is important in describing the scalability ability of the technology. Analyse This Work By Critical Thinking The Tools That Assessed this Work It is possible to create blockchain protocols which have the ability to process any transactions in a setting that no particular user accesses more than one computational power. The design does make a few compromises in terms of interoperability, security, or scalability. The design adds complexity to the design of the blockchain technology. The tools applied in this work entails a qualitative description of the design. Also, the proof is provided via mathematical calculation . Diagram/Flowchart 10 Reference in APA format Treasury, H. M. (2015). Digital currencies: response to the call for information. London: HM Treasury. URL of the Reference Authors Names and Emails Keywords in this Reference H.M Treasury The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? The purpose of this document is to summarize the responses of stakeholders in the digitization of currency. There are diverging views concerning the benefits of digital currency and risks faced. Comprises of different stakeholders: payment scheme company, banks, developers of digital currency, business institution that offer services related to digital currency. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process There are certain barriers of digital currency which the government considers to hinder the success of the digital currency in the future. Thus, there are certain steps the government has followed in achieving the outcome. Process Steps Advantage Disadvantage (Limitation) 1 Description of objectives Provide certainty and clarity of the application for the current regulation and legislation for businesses and users. Helps create the right environment for legal entrepreneurs of digital currency. 2 Application of anti-laundering legislation for the exchange of digital currency. Helps prevent any criminal intentions and support new innovations. Different geographical locations have different legislations which might result in conflict. 3 Establishment of regulatory body responsible for executing the legislation Some stakeholders might not be aware of regulations of a particular region and thus, wrongful conviction. 4 Stakeholders work together with the government in an effort to enhance consumer protection. 5 Launching of new research initiatives Major Impact Factors in this Work The responses provided by the stakeholders, present different views which outline the benefits of digital currency and risk posed by the system. The responses of the individuals provided have listed a number of benefits of digital currencies on consumers, charities, and businesses. Dependent Variable Independent Variable Accuracy of response Accuracy of the interview questions Price of digital currency Consensus of stakeholders Adoption of technology Regulations and legislations Accuracy of response Accuracy of the interview questions Input and Output Feature of This Solution Contribution in This Work N/A Digital currency secure, fast, and efficient. Provides a permanent record. This work is very important in that it highlights about the key stakeholders of digital currency system. Analyse This Work By Critical Thinking The Tools That Assessed this Work This work entails a detailed description of the digital currency. It contains various benefits associated with digital currency and some of the risks. Also, it shows the relationship between digital currency and smart contract technology. The organization employs the theoretical approach in analysing this piece of work. The organization employs a descriptive approach. Diagram/Flowchart N/A 11 Reference in APA format Kroll, J. A., Davey, I. C., & Felten, E. W. (2013, June). The economics of Bitcoin mining, or Bitcoin in the presence of adversaries. In Proceedings of WEIS (Vol. 2013). URL of the Reference Authors Names and Emails Keywords in this Reference http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.364.5595&rep=rep1&type=pdf Joshua A. Kroll Ian C. Davey Edward W. Felten Bitcoin Mining, Bitcoin The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Distributed log record structures often have some inconsistencies. The objective of this work is to discuss how mining helps protect the Bitcoin against particular technical issues. Bitcoin mining consensus The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process Process Steps Advantage Disadvantage (Limitation) 1 Understanding the background of bitcoins. It is very key in determining how bitcoin transactions work. 2 Definition of basics of Bitcoin mining economics. Important for identifying consensus of mining. Helps understand the model of mining and mining strategy. 3 Determining the stability of mining game. Important for determining the cost of transaction. Major Impact Factors in this Work Dependent Variable Independent Variable Price of Bitcoin Stability of economy. Price of Bitcoin Consensus about rules Price of Bitcoin Consensus about State Price of Bitcoin Consensus about Bitcoin value Relationship Among The Above 4 Variables in This article The price of the Bitcoin is depended on the status of the four above independent variables. For instance, if the market stability of Bitcoin drops, the price of the bitcoin increases Input and Output Feature of This Solution Contribution in This Work N/A Consensus about Bitcoin values: miners have to agree that Bitcoin has value so that they can be payed using Bitcoins. Consensus concerning state: Miners have to come into an agreement about the transactions which have already taken place. The contribution of this work concerning the Bitcoin technology is that it explains the model of mining Bitcoins and how the mining process takes place. Analyse This Work By Critical Thinking The Tools That Assessed this Work This work is very important for individuals who want to invest their resources in mining Bitcoins. It provides miners with insight of how the model of mining works. Also, the study explains about key mining strategies. The explanation of the mathematical calculation by the miners are quite standard and understandable. Thus, interested miners can use this material to learn more about Bitcoin mining. This work uses theoretical approach to justify the mathematical calculations in Bitcoin mining. Diagram/Flowchart 12 Reference in APA format Mainelli, M., & Smith, M. (2015). Sharing ledgers for sharing economies: an exploration of mutual distributed ledgers (aka blockchain technology). The Journal of Financial Perspectives, 3(3), 38-69. URL of the Reference Authors Names and Emails Keywords in this Reference http://inpluslab.sysu.edu.cn/files/Paper/Summary/Sharing_Ledgers_For_Sharing_Economies__An_Exploration_Of_Mutual_Distributed_Ledgers__Aka_Blockchain_Technology_.pdf Michael Mainelli Mike Smith Mutual Distributed Ledger (MDLs). The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Sharing ledgers for economies: an exploration of MDL (Blockchain technology). The goal of this work is to discuss about MDL and how it helps financial organizations manage debt, identity, and transaction information. EALOUS/Yin’s methodology The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process The MDL technology is a distributed ledger that store records of transactions in multiple secure locations. MDL allows individuals to record, track, and validate transactions across a Bitcoin network. It is evident through the InterchainZ project. Process Steps Advantage Disadvantage (Limitation) 1 Statement of the problem: what elements of a 3rd party involved in a transaction are replaced by the MDL technology. 2 Choosing the methodology of research: EALOUS methodology Helps determine the approach, scope, and objectives of the research. 3 Identification of the use-cases to use Agreement on the use cases to be tested and determine the type of data to be anonymized. 4 Uploading of information derived from the use-cases 5 Exploration of network architectures and storage options for the InterchainZ project. Expansion of use-cases. 6 Analysis of the findings from the previous steps Helps create a user-guide that can be circulated to the team members. 7 Creating an overview of distributed ledgers. Major Impact Factors in this Work The main factors in this work depend on the choice of use-cases. Dependent Variable Independent Variable Price of Bitcoin Stability of economy. Choice of validation Network structure Network architecture Use-cases Use-cases Financial organization Input and Output Feature of This Solution Contribution in This Work Input Output Use-cases Reliability of MDL MDL can transform how people manage personal and identity information. Provides public transaction information or record. It is globally available and verifiable. This work is important in determining how the distributed ledger technology manages identity and verifies a transaction in different use-case. Analyse This Work By Critical Thinking The Tools That Assessed this Work The MDL technology will replace the traditional elements of a third party. The research team has done an extensive research by choosing different use cases so as to determine the effectiveness of MDL technology. EALOUS methodology Diagram/Flowchart Version 4.0 _ Week 4 13 Reference in APA format Badev, A. I., & Chen, M. (2014). Bitcoin: Technical background and data analysis. URL of the Reference Authors Names and Emails Keywords in this Reference https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2544331 Anton Badev Matthew Chen Bitcoin The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? The purpose of this work is describing the transaction process of Bitcoin and explain how the technology uses cryptographic technology to enhance the security of the transaction process. The problem being solved is determining the rate of growth of Bitcoins. N/A The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process Process Steps Advantage Disadvantage (Limitation) 1 Discussion of Bitcoin’s transaction structure. 2 Presentation of an empirical analysis Identification of common patterns of using Bitcoins. 3 Conclusion of empirical analysis Major Impact Factors in this Work Dependent Variable Independent Variable Price of Bitcoin Stability of Bitcoin Stability of Bitcoin Consensus of Bitcoin value Stability of Bitcoin Consensus of State Consensus of state Legislation and regulation Input and Output Feature of This Solution Contribution in This Work N/A Empirical analysis This work determines the growth and usage of Bitcoins both locally and internationally. Analyse This Work By Critical Thinking The Tools That Assessed this Work From the empirical analysis of the data collected from the online gambling site, Satoshi Dice, Bitcoin has been used as a mode payment and has been growing rapidly. Empirical analysis Diagram/Flowchart 14 Reference in APA format Pilkington, M. (2015). Blockchain technology: principles and applications. Browser Download This Paper. URL of the Reference Authors Names and Emails Keywords in this Reference https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2728593 Marc Pilkington Blockchain technology The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Determining the principles of blockchain technology. The goal of this work is to determine main principles that behind the success of blockchain technology. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process Process Steps Advantage Disadvantage (Limitation) 1 Presentation of the basic concept of blockchain technology. Assists in understanding how the technology works. N/A 2 A sketch description of a shift towards hybrid resolutions. 3 Identification of potential drawbacks and risks of the blockchain technology Major Impact Factors in this Work Literature review Input and Output Feature of This Solution Contribution in This Work Literature review Literature review. It describes and highlights about major principles behind the blockchain technology. Analyse This Work By Critical Thinking The Tools That Assessed this Work This work is a critical literature review of previous work on the same topic about principles. The success of the blockchain technology is depended on these principles which have are clearly stated. Literature review Diagram/Flowchart N/A 15 Reference in APA format Nugent, T., Upton, D., & Cimpoesu, M. (2016). Improving data transparency in clinical trials using blockchain smart contracts [version 1]. URL of the Reference Authors Names and Emails Keywords in this Reference https://www.researchgate.net/profile/Timothy_Nugent/publication/309331665_Improving_data_transparency_in_clinical_trials_using_blockchain_smart_contracts/links/580f38f608aea04bbcba3137.pdf Timothy Nugent David Upton Mihai Cimpoesu Smart contract, clinical trials, and blockchain The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? Improving data transparency in clinical trials using blockchain smart contracts. The goal of this work is to describe how smart contract, an application of blockchain technology, is applied in clinical trials so as to enhance transparency. It describes how trust is enforced in clinical trials. Consensus algorithm. Digital signing. Ethereum blockchain network. The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process It involves a detailed description of key functionalities, concepts, and features of Blockchain technology and Bitcoin. A review of how blockchain technology enhances trust in clinical trials is done. Major Impact Factors in this Work Literature review Input and Output Feature of This Solution Contribution in This Work Literature review Application of the technology: smart contract. Regulator contract: data structure contains CTA (Clinical Trial Authorization). Trial contract: deployed by CROs (Contract Research Organization). description of how Bitcoin technology started and challenges faced in the implementation the technology. Areas of application of the technology. Analyse This Work By Critical Thinking The Tools That Assessed this Work This work is a literature review of how clinical trial trust would be enhanced. Smart contract is an appropriate technology which can enhance trust and validates a transaction. Qualitative research and theoretical description. Diagram/Flowchart 16 Reference in APA format Trautman, L. J. (2016). Is Disruptive Blockchain Technology the Future of Financial Services? URL of the Reference Authors Names and Emails Keywords in this Reference https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2786186 Lawrence J. Trautman Blockchain technology and Bitcoin The Name of the Current Solution (Technique/ Method/ Scheme/ Algorithm/ Model/ Tool/ Framework/ ... etc ) The Goal (Objective) of this Solution & What is the problem that need to be solved What are the components of it? The purpose of this work is to evaluate the history of digital virtual currency and explore the impact of Bitcoin in financial market. Also, it is intended enhance a reader’s understanding of the challenges faced in the implementation of the technology N/A The Process (Mechanism) of this Work; Means How the Problem has Solved & Advantage & Disadvantage of Each Step in This Process Process Steps Advantage Disadvantage (Limitation) 1 Discussion of the disruptive changes experienced in the financial market. 2 Exploration of virtual currency and how Bitcoin started. 3 Description of the blockchain technology Helps define what and why is the blockchain technology important. 4 Discussion of recent developments made in the implementation of the technology Identifies key blockchain applications in the financial sector. 5 A review of the regulatory changes made so as to adapt to the technology. Major Impact Factors in this Work The economic state of the financial market determines the stability of the price of a bitcoin. The changing legislations and regulations governing financial transactions using digital currency. Input and Output Feature of This Solution Contribution in This Work Literature review Literature review The contribution of this work includes: description of how Bitcoin technology started and challenges faced in the implementation the technology. It highlights key changes made in regulation and legislation of the technology. Also, it describes about the future of the technology. Analyse This Work By Critical Thinking The Tools That Assessed this Work It starts with the basic description of the blockchain technology and develop the growth in the technology in a systematic manner. It uses theoretical approach. Diagram/Flowchart EVALUATION TABLE JOURNAL ID Authors Objective Methodology Technical Justification Advantages Limitations Research Relevance Findings 1 Michael Crosby, Sanjeev Verma, Pradhan Pattanayak, and Vignesh Kalyanaraman (2016) Evaluate the adaptation of blockchain on financial sectors. Theoretical Justification and Past Research Report Address Security Issues N/A N/A Applicability of Blockchain Digital Assets and Contract Management 2 Oliver Wyman (2016) Understand Potential of Blockchain Theoretical Justification Scalability and Real Time Validation Security Enhancement N/A Adoption on Capital Markets Automatic Supervision and Reporting 3 Satoshi Nakamoto (2008) Handle Double Spending Theoretical and Practical(calculations) Hashing and Digital Signatures N/A N/A Avoids Third Party for Payment Timestamp Server 4 Hewlett Packard Enterprise (2016) Explain the eliminating role of third party Theoretical Blockchain Implementation Identify strengths and weakness N/A Current Landscape of the technology Private VS Public Blockchain 5 Eric Wall, Gustaf Malm (2016) Solve the current problem in financial market Descriptive Proof-of-work Mathematical Calculations N/A N/A Characteristics of blockchain technology Smart Contracts 6 Ben Cresitello-Dittmar (2016) Decentralization of ownership Descriptive Research Approach Authentication Process N/A N/A Encryption Key Secured Encryption Technique 7 Rainer Bohme, Nicolas Christin, Benjamin Edelman, Tyler Moore (2015). Address flexible form of payment Theoretical, Use of Graph Cryptocurrency N/A N/A Governance of Digital Payment Alternative approach for transcation 8 Victoria Karlsson Lundstrom (2016). Explore the effect of blockchain technology Qualitative analysis of interview response Technology Integration Understands problem and risk High risk exposure Ethical aspects of technology in capital marketing Regulation issues 9 Vitalik Buterin, Jeff Coleman Matthew Wamper-Doty (2015). Propose techniques for scalable blockhchain technology Qualitative Description Design High Degree of generalization N/A N/A Blockchain Protocol Transactions splits in collations 10 H.M Treasury (2015). Summarize response of stakeholder Descritpive Decribes digital currency Innovative Environemt Stakeholder unaware of the regulation Relation between digital currency and smart contract Benefits of digital currency 11 Joshua A. Kroll, Ian C. Davey, Edward W. Felten (2013) Protect bitcoin against specific issues Theoretical and mathematical calculations Model of mining and strategies Determines how bitcoin transaction works N/A Mining process Bitcoin value and state 12 Michael Mainelli, Mike Smith (2015) Use of MDL in finance EALOUS Identity management and verification Data type anonymization N/A Shared ledger MDL effectiveness 13 Anton Badev, Matthew Chen (2014). Describe transaction process of Bitcoin Empirical analysis Rate of Bitcoins Growth Common Pattern Identification N/A Security Enhancement Bitcoins Usage 14 Marc Pilkington (2015) Determine the principles of Blockchain Technology Literature Review Blockchain Principle Assess Blockchain Technology N/A Blockchain Principle Blockchain Drawbacks and risk 15 Timothy Nugent, David Upton, Mihai Cimpoesu (2016) Application of Smart contract Qualitative Research Key Functionalities N/A N/A Blockchain Application Blockchain Review 16 Lawrence J. Trautman (2016) Understand challenges of Blockchain Technology Theoretical Approach Regulation and legislation of the technology Define Blockchain Importance N/A Challeneges of Blockchain Implementation Challeneges of Blockchain Implementation Conceptual Framework Trade finance is one of the core banking products which requires innovation and improvements for the global growth of potential markets, increasing market demands and various challenges. Currently, the trade finance operation is paper-based, delayed payments and settlement, difficult cross-border payments and doesn’t have real-time access of data. In order to handle growth of increasing transaction and address various flaws of the trade finance, digitization of whole trade finance process through blockchain technology would be the best solution (Trade Finance, 2012). The basic principle of trade finance is documentary credit also known as letter of credit (LC) is the contractual agreement between buyer/seller, importer/exporter and various parties involved in trade finance. Such LC is completely paper-based, non-scalable which lacks standards and common definitions between financial institutions. LC has been used as primary tools in trade finance for decades which is time consuming, can’t handle large volume of payments and has various security issues. Figure: Paper-based trade finance with documentary credit (Dillenberger, 2016) Communication Standard The exchange of financial information that allows parties to communicate with each other regarding payment details, product and services, trade documents is defined by SWIFT.SWIFT stands for "Society for Worldwide Interbank Financial Telecommunication" which provides communication platform for financial institution and secondly definition of message formats during the issuance of LC .In order to transmit the financial messages related to trade finance must be based on SWIFT message format which guides every process to conduct the transaction from start to finish. Figure: Message exchanges in Trade Finance (Jeroen van Oerle, 2016) The current landscape Trade Finance can be transformed into another dimension with the potential of Blockchain technology delivering the expectation and real need of business. The global trade finance is affected by delayed payments across the border which makes the trade settlement process tremendously slow and large volume payment troublesome to B2B process (Wright, 2016). The ungoverned miners rely upon unregulated digital currency as payment also makes the foreign exchange and currency exchange difficult in trade finance. When applying blockchain operational areas need to be considered as it can have direct consequences on various financial applications. Upon digitization of trade finance various unanticipated situation may raise which cause need to be analysed and solution should be determined, requirement of staff training, planning as per resources must be done. Blockchain has been applied in trade finance but not with full capacity and potential. Blockchain can make the trade finance transparent and instant with the growing number of transactions added to the block. Trade finance being predominantly paper based and the communication defined by SWIFT blockchain could replace intermediaries and replace the paper-based transaction done in trade finance. Proposed Blockchain Model Trade finance is conducted upon parties with common interest and their business process is also similar. Due to this reason hyperledger fabric could be the solution for digitization of trade finance as in this system closed group of participants is only added on the block. Real time tracking of the data can be done being anonymous provided with secured network. The proposed blockchain model is private and public which keeps the track of their users meaning the access on network can be predefined. It is an implementation of a distributed ledger platform for running smart contracts with the leverage of best techniques and modular architecture having various functions. Various challenges in blockhain distributed ledger technology has been addressed in hyper ledger technology which is scalable and more secured. It has security infrastructure for confidentiality purpose with public-key certificates and chain code encryption. Bibliography Dillenberger, D. (2016). IBM talks Blockchain at InterConnect . Jeroen van Oerle, P. l. (2016, May). Distributed ledger technology for the financial industry. Retrieved from robeco: https://www.robeco.com/images/201605-distributed-ledger-technology-for-the-financial-industry.pdf Trade Finance. (2012). The great trade transformation. proquest. Retrieved from https://search-proquest-com.ezproxy.csu.edu.au/docview/1143886072?accountid=10344 Wright, G. (2016). Blockchain Voyages of Discovery8100. Global Finance, 54.