scholarly journals Smart Contracts as a New Technology in the Digital Economy

2018 ◽  
Vol 18(33) (4) ◽  
pp. 146-151
Author(s):  
Irina Glazkova ◽  
Dorota Kozioł-Kaczorek ◽  
Sergey Shmatko
Keyword(s):  
Business Processes ◽  
New Technology ◽  
Digital Technologies ◽  
Distributed Database ◽  
Smart Contracts ◽  
Government Organization ◽  
Storage Devices ◽  
Smart Contract ◽  
Wide Range ◽  
Reducing Costs

Digital technologies have a number of advantages that contribute to the development of the economy and make it more transparent. Some of the main features of modern digital technologies are speeding up business processes, reducing costs, eliminating the possibility of fraud, ensuring the transparency of the system and the ability to check and analyze the system. Regardless of whether a commercial or government organization uses the technology, in any case, there is a wide range of possibilities of its application. One of these technologies is blockchain. A blockchain is a distributed database in which storage devices are not connected to a shared server. This database stores an ever-growing list of ordered records called blocks. Each block contains a timestamp and a link to the previous block. The article defines a smart contract, describes the main areas of its application and provides processes similar to smart contracts, but working outside the blockchain. We also consider some of the risks that arise when working with smart contracts.

scholarly journals THE ESSENCE OF BLOCKCHAIN TECHNOLOGY AND ITS APPLICATION IN THE FINANCIAL SPHERE

2021 ◽  
Author(s):  
Viktor Stepura
Keyword(s):  
Business Processes ◽  
Banking Sector ◽  
New Technologies ◽  
Distributed Database ◽  
Smart Contracts ◽  
Process Step ◽  
Customer Data ◽  
Legal Norms ◽  
Theoretical Substantiation ◽  
Blockchain Technology

The constant demand of society to improve the speed and security of business processes is the driving force behind the emergence of new technologies and solutions, one of which is the blockchain. The article provides a theoretical substantiation of the essence of blockchain technology as an economic category. The object and subjects of the blockchain are defined, its inherent functions and principles are formed. The article also proposes an approach to the classification of blockchain types, all this allows a comprehensive approach to the study of the process of using blockchain technology in the financial sphere. The paper describes and reveals the blockchain process step by step. The process is described in a universal way, suitable for working with any projects based on a distributed database. The article provides examples of the use of blockchain technology in various areas of financial activity. In the banking sector, blockchain can improve the security and speed of domestic and international payments, and such payments will also be practically free for the parties. In insurance, the introduction of blockchain technology will help companies instantly exchange customer data, and the use of smart contracts will speed up the work with insurance policies. Thanks to the blockchain in accounting, information about transactions, contracts, etc. will be recorded in the general register in real time, so the verification of compliance with legal norms will occur automatically. This will significantly increase the operational efficiency of organizations. The use of blockchain in audit will make this process more transparent, and the time of its implementation will be significantly reduced due to reliable and up-to-date accounting records between counterparties. In the securities market, the blockchain will digitize securities, which will increase their liquidity, as well as help to better comply with the law, and will allow flexible transfer and accounting of ownership of such assets. In working with smart contracts, thanks to the code running on the blockchain, the contract can be executed automatically. At the end of the article, the conclusions are formed and the forecast of the development of the blockchain market for the coming years is given.

scholarly journals An Oracle-Based On-Chain Privacy

Computers ◽  
2020 ◽  
Vol 9 (3) ◽  
pp. 69
Author(s):  
Yu-Jen Chen ◽  
Ja-Ling Wu ◽  
Yung-Chen Hsieh ◽  
Chih-Wen Hsueh
Keyword(s):  
Homomorphic Encryption ◽  
Distributed Database ◽  
Smart Contracts ◽  
Logic Function ◽  
Sensitive Data ◽  
Privacy Issue ◽  
The Public ◽  
Smart Contract ◽  
Privacy Issues ◽  
Real Assets

In this work, we demonstrate how the blockchain and the off-chain storage interact via Oracle-based mechanisms, which build an effective connection between a distributed database and real assets. For demonstration purposes, smart contracts were drawn up to deal with two different applications. Due to the characteristics of the blockchain, we may still encounter severe privacy issues, since the data stored on the blockchain are exposed to the public. The proposed scheme provides a general solution for resolving the above-mentioned privacy issue; that is, we try to protect the on-chain privacy of the sensitive data by using homomorphic encryption techniques. Specifically, we constructed a secure comparison protocol that can check the correctness of a logic function directly in the encrypted domain. By using the proposed access control contract and the secure comparison protocol, one can carry out sensitive data-dependent smart contract operations without revealing the data themselves.

Towards Adoption of Smart Contract in Construction Industry in Malaysia

2021 ◽  
Vol 30 (1) ◽  
pp. 141-160
Author(s):  
Dewi Noorain Bolhassan ◽  
Chai Changsaar ◽  
Ali Raza Khoso ◽  
Loo Siawchuing ◽  
Jibril Adewale Bamgbade ◽  
...  
Keyword(s):  
Construction Industry ◽  
Human Error ◽  
New Technology ◽  
Smart Contracts ◽  
Implementation Framework ◽  
Contract Administration ◽  
Contract Duration ◽  
Smart Contract ◽  
Research Findings ◽  
Short Term Contract

The revolution of Malaysian Construction 4.0 through emerging technologies has brought a paradigm shift that has digitalized the construction sector. There is a need to adopt a computerized protocol to assist in automating the performance of a contract to meet future digital challenges. Therefore, this paper aims to serve as a pioneer study to investigate the implementation of the Malaysian construction industry to adopt smart contracts. This study adopted a qualitative scientific methodology, whereby a systematic review was conducted to gather the benefits and challenges of implementing smart contracts in the construction industry. Further, interview sessions were arranged to collect data from the construction contract management experts. The research findings unveil that due to the self-executing attribute of smart contracts, the implementation of smart contracts could provide a better apportionment of risks in a contract. The study also finds that the challenges in implementing smart contracts are severe. For instance, the smart contract is irreversible and immutable and prone to human error. The study concludes that it is more suitable to apply and implement a smart contract to a short-term contract that is not subjected to variation. Furthermore, a smart contract can enhance the efficiency in managing the contracts, such as reducing time and managing the conflicts and disputes that arise during the contract duration. The developed implementation framework is significant for the construction personnel, especially those dealing with the contract administration. The implementation of smart contracts in construction could boost contract administration and management discipline via investment in this new technology.

THE ATTRACTION OF ADDITIONAL SOURCES OF FINANCING TO DEVELOP THE OBJECTS OF A CONCESSION AGREEMENT BASED ON THE USE OF DIGITAL FINANCIAL INSTRUMENTS

2021 ◽  
pp. 46-51
Author(s):  
O. A. Mishchenko ◽  
Keyword(s):  
New Technologies ◽  
Digital Technologies ◽  
The State ◽  
Financial Assets ◽  
Smart Contract ◽  
The Creation ◽  
Digital Transactions ◽  
Reducing Costs ◽  
Contractual Obligations ◽  
A Company

Being an actual and promising direction of economic development in Russia, directly related to the country’s infrastructure facilities, concession activity attracts increasing interest from investors. Concession activity is an activity on the state assets management and their operation. The attraction of additional sources of financing for the development of concession objects is the more prospective and less risky area for investors as the share of the issue of concession bonds increases each year within the entire structure of bonds emitted in Russia. The paper deals with the applied aspects of using digital technologies in the concession activity. The author considered the approach to the creation of a digital eco-environment aimed at the interaction of the state, a concession holder, and investors. Digital financial assets and financial technologies are the core of the digital eco-environment. According to the author, the creation of a digital eco-environment in a company-concession holder can become an additional possibility of traditional attraction of investments to its development due to its flexibility and new technologies. The author justifies the possibility of the development and introduction of digital technologies in the concession holder’s activity to increase the investors’ interest in the financing of this sphere. The use of a blockchain platform and a smart-contract system will allow automating the process of concluding and fulfilling contractual obligations to finance a concession project. The author concludes that this direction will give the possibility to the companies performing concession activity to increase the investors’ interest in the development of important social and infrastructure facilities of the country, and new digital technologies will allow managing, controlling, and reducing costs when carrying out digital transactions.

Digitalization of the service economy: advantages and threats

2020 ◽  
Vol 26 (9) ◽  
pp. 111-120
Author(s):  
N. Tarkhanovа ◽  
◽  
V. Romanov ◽  
Keyword(s):  
Service Sector ◽  
Business Models ◽  
Business Processes ◽  
Digital Technologies ◽  
Digital Economy ◽  
Doing Business ◽  
New Business ◽  
Consumer Segment ◽  
Reducing Costs

Recently, the number of businesses using digital technologies has increased. The service sector is no exception. The article is devoted to the use of digital technologies in the service sector. The authors reviewed the advantages and threats of digitalization. As a result of the analysis, the concept of “digital economy” and “service sector” is clarified, and the need for digitalization is justified. The advantages obtained through the use of innovative technologies, both for the industry and for individual enterprises, are indicated. In relation to the industry, this will include: the use of new business models and forms of doing business; increasing the availability and promotion of services on the market up to the world; the emergence of new types of services; the use of control systems that replace humans. As a result of the analysis, the concept of “digital economy” and “service sector” has been clarified, and the need for digitalization is justified. For a single service enterprise, the benefits of implementing digital technologies can be expressed in: reaching the optimal consumer segment; determining the customer’s need for certain services; designing more flexible services; improving the quality of service by improving control of business processes; minimizing the time for services to enter the market; reducing costs by accelerating business processes; minimizing costs; increasing the availability of services through the dissemination of information in social networks; eliminating intermediaries in the delivery of services to the consumer and reducing costs, reducing the number of personnel performing routine operations. Digitalization provides not only the benefits but also pose a threat. These include various types of fraudulent schemes, an underdeveloped regulatory framework, a reduction in the number of employees, and changes in the labor market. As a result, there are increasing requirements for planning at the strategic, tactical and operational levels. Otherwise, the benefits of implementing digital technologies may be lost

scholarly journals Smart contract: from definition to certainty

2021 ◽  
Vol 1 (1) ◽  
pp. 100-122
Author(s):  
Yuriy Truntsevsky ◽  
Vyacheslav Sevalnev
Keyword(s):  
Social Relations ◽  
New Technologies ◽  
Theory And Practice ◽  
Information Support ◽  
Smart Contracts ◽  
Legal Definition ◽  
Advantages And Disadvantages ◽  
Smart Contract ◽  
Wide Range ◽  
Definition Of

The purpose of the present article is to gain an understanding of the opportunities and difficulties created by the introduction and development of the practice of network (smart) contracts. Our research methodology is based on a holistic set of principles and methods of scholarly analysis employed by modern legal science. It uses a dialectical method involving both general approaches (structural system method, formal logical method, analysis and synthesis of individual elements, individual features of concepts, abstraction, generalization, etc.) and particular methods (legal technical, systematic, comparative, historical, and grammatical methods, method of the unity of theory and practice, etc.). We analyze the views of lawyers and other specialists from Russia and abroad, legislative innovations in the field of digital technologies, the practice of blockchain-based smart contracts, and the main risks (whether legal, technological, operational, or criminogenic) of smart contracts for economic activities with a study of their causes. In the present-day situation, it is necessary to move from the legal definition of the smart contract and its legal and technological characteristics, advantages and disadvantages to the implementation of startups in a wide range of areas, especially business, public regulation, and social relations. Scholarly and information support for such processes will contribute to the development of industry, public administration and digital technology applications to improve the life of individual citizens and society as a whole. The introduction of smart contracts does not require the adoption of new laws or regulations. Instead, one should adapt and, possibly, modify existing legal principles at the legislative and judicial levels to pave the way for the use of smart contracts and other new technologies. The system of contract law provides a sufficient framework for regulating transactions without the introduction of any new legal categories. We propose approaches to the legal definition of the smart contract and identify a set of problems that must be solved at the legislative and technical legal levels in order to implement smart contracts effectively in different spheres of life.

scholarly journals Using Ethereum blockchain to store and query pharmacogenomics data via smart contracts

2019 ◽  
Author(s):  
Gamze Gürsoy ◽  
Charlotte M Brannon ◽  
Mark Gerstein
Keyword(s):  
Drug Interaction ◽  
Data Storage ◽  
Query Time ◽  
Smart Contracts ◽  
Interaction Data ◽  
Time And Space ◽  
Disk Space ◽  
Smart Contract ◽  
Wide Range ◽  
Linear Query

AbstractBackgroundWith the advent of precision medicine, pharmacogenomics data is becoming increasingly critical to patient care. These data describe the relationship between a particular variant in the genome and the response to a drug by the patient. As utilizing this kind of data becomes more integral to medical treatment decisions, appropriate storage and sharing of this data will be critical. A potential way of securely storing and sharing pharmacogenomics data is a smart contract with the Ethereum blockchain. This is an open-source blockchain platform for decentralized applications. A transaction-based, state machine, the “world” of Ethereum maintains user accounts and storage in a network state. Immutable pieces of code called “smart contracts” may be deployed to the Ethereum network and run on the Ethereum Virtual Machine when called by a user or other contract. The 2019 iDASH (Integrating Data for Analysis, Anonymization, and Sharing) competition for Secure Genome Analysis challenged participants to develop time- and space-efficient smart contracts to log and query gene-drug relationship data on the Ethereum blockchain.MethodsWe designed a smart contract to store and query pharmacogenomics data (gene-drug interaction data) in Ethereum using an index-based, multi-mapping approach allowing for time and space efficient storage and query. Our solution to the IDASH competition ranked in the top three at a workshop held in Bloomington, IN in October 2019. Although our solution performed well in the challenge, we wanted to improve its scalability and query efficiency. To that end, we developed an alternate “fastQuery” solution that stores pooled rather than raw data, allowing for significantly improved query time for 0-AND queries, and constant query time for 1- and 2-AND queries.ResultsWe tested the performance of both of our solutions in Truffle (v5.0.31) using datasets ranging from 100 to 1000 entries, and inserting data at 25, 50, 100, and 200 observations at a time. On a private, proof-of-authority test network, our challenge solution requires approximately 70 seconds, 500 MB of memory, and 80 MB of disk space to insert 1000 entries (200 at a time); and 400 ms and 5 MB of memory to query a two-AND query from 1000 entries. This solution exhibits constant memory for insertion and querying, and linear query time. Our alternate fastQuery solution requires approximately 60 seconds, 500 MB of memory, and 80 MB of disk space to insert 1000 entries (200 at a time); and 83 ms and 5 MB of memory to query a two-AND query from 1000 entries. This solution exhibits constant memory for insertion and querying, linear query time for 0-AND queries, and constant query time for 1- and 2-AND queries in a database of up to 1000 entries.ConclusionIn this study we showed that pharmacogenomics data can be stored and queried efficiently on the Ethereum blockchain. Our approach has the potential to be useful for a wide range of datasets in biomedical research; while we focused on gene-drug interaction data, our solution designs could be used to store a range of clinical trial data. Moreover, our solutions could be adapted to store and query data in any field where high-integrity data storage and efficient access is required.

scholarly journals Global Trends in the Business Processes Management of Enterprise

2020 ◽  
Vol 10 (513) ◽  
pp. 407-412
Author(s):  
Dongcheng Wang ◽  
Keyword(s):  
Business Processes ◽  
Business Management ◽  
Digital Technologies ◽  
Modern World ◽  
Digital Revolution ◽  
Global Trends ◽  
Process Systems ◽  
Wide Range ◽  
Significant Interest

The article is aimed at researching and making a generalization of modern world-wide trends observed in the sphere of the business processes management of enterprise. The article stipulates the need to study modern trends in the sphere of the business processes management of enterprise. The dynamics of interest in the sphere of the business processes management and its nature in modern enterprises is examined. The projects that are of more significant interest among entrepreneurs in the sphere of development of management of own business processes are defined. The rating of the most common factors that act as the driving force for the focus of the enterprises’ activity on changing business processes has been built. The costs of managing changes in relation to the total costs associated with the implementation of ERP projects at enterprises are analyzed. The approaches to building up the architecture of business processes used in modern organizations are researched. The modern attitude of companies to the role of process manager in changing the business processes of enterprise is studied. It is determined how the vast majority of business processes management professionals approach to expanding their competencies and researching modern world trends. The generalization of modern world trends in the sphere of the business processes management is specified. The role of the digital revolution and the corresponding emergence of new types of business management technologies have been defined. Examples of the combination of modern digital technologies and business processes management instruments are provided. The essence of the intellectualization of process systems and the introduction of low-code platforms for the elaboration and development of the enterprise’s business processes management system are considered. The directions of possible development of business processes management systems are defined, which will provide the possibility of free combination of a wide range of digital technologies, namely: creation of integrated digital business platforms.

The Impact of Chatbots in Driving Digital Transformation

2021 ◽  
Vol 13 (4) ◽  
pp. 88-104
Author(s):  
Hyrmet Mydyti ◽  
Arbana Kadriu
Keyword(s):  
Artificial Intelligence ◽  
Natural Language Processing ◽  
Language Processing ◽  
Business Processes ◽  
Evaluation Criteria ◽  
Digital Technologies ◽  
Digital Transformation ◽  
Call Centres ◽  
Reducing Costs ◽  
The Impact

Digital transformation is the process of consuming digital technologies that drives business improvements and customer experience. Artificial intelligence plays a crucial role in businesses' digital transformation agendas. Technologies and algorithms are an important perspective in the implementation of chatbots. AI chatbots use natural language processing technology and offer solutions for modernizing traditional business processes. The key advantage of the implementation of chatbots in different domains is the impact by improving customers' experience and reducing costs. Chatbots are pieces of software that simulate human conversation through voice commands and/or text chats, intending to offer companies an approach on how to use this software to revolutionize their businesses. The aim of this paper is the analysis of the evaluation criteria; the study of insights into how chatbots can be implemented in the domains of banking, e-commerce, tourism, and call centres; and the discussion of some benefits and challenges of chatbots in driving the digital transformation of businesses.

scholarly journals LEGAL RISKS OF SING DIGITAL TECHNOLOGIES IN BANKING

2019 ◽  
pp. 32-39
Author(s):  
V. M. Kamalyan
Keyword(s):  
Digital Technologies ◽  
Legal Regulation ◽  
International Standards ◽  
Smart Contracts ◽  
National Legislation ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Legal Risks ◽  
Proceeds Of Crime ◽  
Financing Of Terrorism

Based on the analysis of legal risks of using smart contracts in banking activities, the author concludes that there is a need for special legal regulation of the use of digital technologies in banking, which would minimize the legal risks examined in the paper. The author believes that such legal regulation in order to minimize legal risks should define a smart contract as a way of fulfillment of obligations rather than as a design of a contract concluded in writing. Analyzing the legal risks associated with the person identity during the introduction of digital technologies in banking, the author suggests the use of blockchain technology as the basis of the system of identification of customers using exclusively the advantages of this technology in compliance with the requirements of international standards and national legislation regulating counteraction to laundering of proceeds of crime and financing of terrorism. This solution will simplify and protect the system of identification and processing of data regarding the clients of banks, but it requires effective state support and legal regulation.

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