scholarly journals Lifecycle Optimization of Smart Contract for Flexibility

2021 ◽  
Author(s):  
Hong Su
Keyword(s):  
Waiting Time ◽  
Smart Contracts ◽  
Smart Contract ◽  
Additional Step ◽  
Lifecycle Model ◽  
Proposed Model ◽  
Additional Burden ◽  
Transaction Fees

<div>Smart contract-based methods are used to implement the blockchain applications. While smart contracts have separate pre-deployed steps, which are suitable for applications that are deployed once and invoked many times. However, there are smart contracts that are used only one time (the disposable smart contract) or few times. Pre-deployment requires an additional step and additional transactions, which bring burdens (such as longer waiting time and more transaction fees) to users. In this paper, we propose a new Lifecycle model of smart contracts, which allows combining the pre-deployment with function invocations. This facilitates the usage of the disposable smart contract, as users are only required to send one transaction to perform both the pre-deployment and the function invocation. Together with the smart contract separation, it also allows participants to customize their special smart contracts at the request time. At last, we verify the proposed model and it shows the potential to save additional burden and to facilitate the usage of the smart contract.</div>

scholarly journals Lifecycle Optimization of Smart Contract for Flexibility

2021 ◽  
Author(s):  
Hong Su
Keyword(s):  
Waiting Time ◽  
Smart Contracts ◽  
Smart Contract ◽  
Additional Step ◽  
Lifecycle Model ◽  
Proposed Model ◽  
Additional Burden ◽  
Transaction Fees

<div>Smart contract-based methods are used to implement the blockchain applications. While smart contracts have separate pre-deployed steps, which are suitable for applications that are deployed once and invoked many times. However, there are smart contracts that are used only one time (the disposable smart contract) or few times. Pre-deployment requires an additional step and additional transactions, which bring burdens (such as longer waiting time and more transaction fees) to users. In this paper, we propose a new Lifecycle model of smart contracts, which allows combining the pre-deployment with function invocations. This facilitates the usage of the disposable smart contract, as users are only required to send one transaction to perform both the pre-deployment and the function invocation. Together with the smart contract separation, it also allows participants to customize their special smart contracts at the request time. At last, we verify the proposed model and it shows the potential to save additional burden and to facilitate the usage of the smart contract.</div>

scholarly journals Cross-chain Exchange by Transaction Dependence with Conditional Transaction

2021 ◽  
Author(s):  
Hong Su
Keyword(s):  
Special Structure ◽  
Second Step ◽  
Smart Contracts ◽  
Two Phase ◽  
Smart Contract ◽  
Proposed Model ◽  
Three Phase ◽  
Simulation Results ◽  
Role Based ◽  
Transaction Commit

<div>Cross-chain exchange swaps assets among different blockchains, which facilitates cooperation among blockchains. A cross-chain exchange contains several transactions from different blockchains. It requires to synchronize asset transfers in those associated blockchains to avoid partial transfers. Current cross-chain methods are divided into two main types. One locks the assets first and transfers the frozen asset to receivers later. The second one is the two-phase or three-phase transaction commit protocol. Those methods require at least two steps, which makes those blockchains coherent to synchronize at different time(steps). Serialization is required as the second step has to wait for the completion of the first step, and even some steps in the same stage are required to be serialized. Meanwhile, their implements are either by smart contracts or special blockchain structures/roles. Smart contract based methods require to pre-deploy a smart contract and cannot change dynamically. Special structure or role-based methods force associated blockchains to have those special requirements. In this paper, we propose a new cross-chain exchange model based on the dependence of associated transactions, which is expressed inside a transaction and can change when sending transactions. It saves the step to lock the asset or perform a pre-commit and has no special requirements for blockchains or pre-deployment of smart contracts. The simulation results show the proposed model exchanges asset effectively among different blockchains.</div>

scholarly journals Cross-chain Exchange by Transaction Dependence with Conditional Transaction

2021 ◽  
Author(s):  
Hong Su
Keyword(s):  
Special Structure ◽  
Second Step ◽  
Smart Contracts ◽  
Two Phase ◽  
Smart Contract ◽  
Proposed Model ◽  
Three Phase ◽  
Simulation Results ◽  
Role Based ◽  
Transaction Commit

<div>Cross-chain exchange swaps assets among different blockchains, which facilitates cooperation among blockchains. A cross-chain exchange contains several transactions from different blockchains. It requires to synchronize asset transfers in those associated blockchains to avoid partial transfers. Current cross-chain methods are divided into two main types. One locks the assets first and transfers the frozen asset to receivers later. The second one is the two-phase or three-phase transaction commit protocol. Those methods require at least two steps, which makes those blockchains coherent to synchronize at different time(steps). Serialization is required as the second step has to wait for the completion of the first step, and even some steps in the same stage are required to be serialized. Meanwhile, their implements are either by smart contracts or special blockchain structures/roles. Smart contract based methods require to pre-deploy a smart contract and cannot change dynamically. Special structure or role-based methods force associated blockchains to have those special requirements. In this paper, we propose a new cross-chain exchange model based on the dependence of associated transactions, which is expressed inside a transaction and can change when sending transactions. It saves the step to lock the asset or perform a pre-commit and has no special requirements for blockchains or pre-deployment of smart contracts. The simulation results show the proposed model exchanges asset effectively among different blockchains.</div>

scholarly journals Hierarchical Multi-Blockchain System for Parallel Computation in Cryptocurrency Transfers and Smart Contracts

2021 ◽  
Vol 11 (21) ◽  
pp. 10173
Author(s):  
Nam-Yong Lee
Keyword(s):  
Parallel Computation ◽  
Thought Experiment ◽  
Parallel Execution ◽  
Smart Contracts ◽  
Threat Analysis ◽  
Smart Contract ◽  
Proposed Model ◽  
State Changes

Most of the existing smart-contract-based cryptocurrencies, such as Ethereum, use an account-based ledger. However, while the account-based model is advantageous for the efficient use of smart contracts and the increased exchangeability of cryptocurrencies, it is not well-suited to the parallel execution of smart contracts. However, unspent transaction output (UTXO)-based cryptocurrencies such as Bitcoin are advantageous for parallel cryptocurrency transfers but not well-suited to smart contracts. In this paper, we propose a hierarchical multi-blockchain system that uses multiple pairs of sidechain and dual-sidechains extended by independent block mining in their blockchain networks and a mainchain to control the branching and connection process of sidechains and dual sidechains. In the proposed method, one pair of a sidechain and dual sidechain forms one shard. The proposed method uses multiple shards to execute cryptocurrency transfers and smart contracts in parallel. In addition, the proposed model uses an accoutchain to record the resulting state changes generated by smart contract executions in each shard and securely share them with all other nodes. The proposed method uses a modifiable blockchain structure for the accountchain to obtain the database to record the smart contract execution results in each shard in as small and secure a manner as possible to ensure that all nodes trust the recorded results without executing smart contracts themselves. To examine the validity of the proposed method, we conducted a threat analysis of the proposed method by examining possible attacks in various scenarios as a thought experiment. This threat analysis concludes that the proposed blockchain system can execute smart contracts in parallel while keeping the concurrency in resulting state changes secure.

Using Smart Contracts to Establish Decentralized Accounting Contracts: An Example of Revenue Recognition

2021 ◽  
Author(s):  
Chi-Chun Chou ◽  
Nen-chen R Hwang ◽  
Gary P. Schneider ◽  
Tawei (David) Wang ◽  
Chang-Wei Li ◽  
...  
Keyword(s):  
Regulatory Agencies ◽  
Smart Contracts ◽  
Business Organizations ◽  
Revenue Recognition ◽  
Accounting Profession ◽  
Generally Accepted Accounting Principles ◽  
Accounting Principles ◽  
Smart Contract ◽  
Proposed Model ◽  
Gift Card

This study explored how to use smart contract technology to implement accounting principles for public use. To illustrate its feasibility, this study developed a design model of decentralized accounting contracts (DACs) and used revenue recognition to demonstrate how to apply the proposed model. Considering various scenarios of revenue recognition, this study adopted Solidity to program smart contracts for five use cases: (1) regular sale, (2) installment sale, (3) gift card sale, (4) a contracted sale with multiple performance obligations, and (5) a contracted sale with variable considerations over the contract price. The results showed that smart contracts can be created to fully address complex revenue recognition scenarios according to the Generally Accepted Accounting Principles (GAAPs). In conclusion, we discuss the implications of the study for business organizations, regulatory agencies, and the accounting profession.

Legally Enforceable Smart-Contract Languages

2021 ◽  
Vol 54 (5) ◽  
pp. 1-34
Author(s):  
Vimal Dwivedi ◽  
Vishwajeet Pattanaik ◽  
Vipin Deval ◽  
Abhishek Dixit ◽  
Alex Norta ◽  
...  
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
State Of The Art ◽  
Grey Literature ◽  
Smart Contracts ◽  
Smart Contract ◽  
Decentralized Autonomous Organizations

Smart contracts are a key component of today’s blockchains. They are critical in controlling decentralized autonomous organizations (DAO). However, smart contracts are not yet legally binding nor enforceable; this makes it difficult for businesses to adopt the DAO paradigm. Therefore, this study reviews existing Smart Contract Languages (SCL) and identifies properties that are critical to any future SCL for drafting legally binding contracts. This is achieved by conducting a Systematic Literature Review (SLR) of white- and grey literature published between 2015 and 2019. Using the SLR methodology, 45 Selected and 28 Supporting Studies detailing 45 state-of-the-art SCLs are selected. Finally, 10 SCL properties that enable legally compliant DAOs are discovered, and specifications for developing SCLs are explored.

Smart Contract: Concept, Financial Essence, World Experience and Opportunities of Practical Use

2021 ◽  
Vol 27 (8) ◽  
pp. 1871-1893
Author(s):  
Vasilii A. DADALKO ◽  
Vladimir V. NIKOLAEVSKII ◽  
Andrei D. NEKRASOV ◽  
Dar’ya S. SHERSTNEVA
Keyword(s):  
Banking Sector ◽  
Systems Approach ◽  
Essential Element ◽  
Utilization Efficiency ◽  
Smart Contracts ◽  
Financial Instruments ◽  
Complex Concept ◽  
Smart Contract ◽  
Fundamental Possibility ◽  
The Moment

Subject. The article considers smart contracts as digital financial instruments, their financial and economic essence, which is defined as digital instruments for the settlement of financial relations. Objectives. The aim is to introduce into scientific use such a system concept as digital financial instruments and mechanisms based on the consideration of their economic, legal and financial essence. Methods. The study rests on systems approach that enables to present a smart contract from a technological, economic, legal and financial position as a set of elements with their specific functions defining its complex concept. Results. We reveal the nature of financial relations, arising at the time when bilateral or multilateral transactions are concluded and smart contracts are presented as ways to automatically settle them. Completion of a smart contract is a confirmation of the completion of the transaction and the moment of termination of financial relationship. The article shows the fundamental possibility of using smart contracts in the system of budget relations as a tool for the settlement of a multilateral transaction. Conclusions. Currently, smart contracts are an essential element of a new stage in the development of financial technologies. Specialists in the financial and banking sector recognize the emerging opportunities for their use in the system of financial relations. The paper shows an example of possible use of smart contracts in the settlement of budget relations and in improving the utilization efficiency of budget funds.

Administrative risks challenging the adoption of smart contracts in construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asli Pelin Gurgun ◽  
Kerim Koc
Keyword(s):  
Construction Projects ◽  
Risk Mitigation ◽  
Research Question ◽  
Group Discussion ◽  
Mitigation Strategies ◽  
Risk Category ◽  
Smart Contracts ◽  
Content Type ◽  
Smart Contract ◽  
Criteria Weights

PurposeAs a remedy to usually voluminous, complicated and not easily readable construction contracts, smart contracts can be considered as an effective and alternative solution. However, the construction industry is merely known as a frontrunner for fast adoption of recent technological advancements. Numerous administrative risks challenge construction companies to implement smart contracts. To highlight this issue, this study aims to assess the administrative risks of smart contract adoption in construction projects.Design/methodology/approachA literature survey is conducted to specify administrative risks of smart contracts followed by a pilot study to ensure that the framework is suitable to the research question. The criteria weights are calculated through the fuzzy analytical hierarchy process method, followed by a sensitivity analysis based on degree of fuzziness, which supports the robustness of the developed hierarchy and stability of the results. Then, a focus group discussion (FGD) is performed to discuss the mitigation strategies for the top-level risks in each risk category.FindingsThe final framework consists of 27 sub-criteria, which are categorized under five main criteria, namely, contractual, cultural, managerial, planning and relational. The findings show that (1) regulation change, (2) lack of a driving force, (3) works not accounted in planning, (4) shortcomings of current legal arrangements and (5) lack of dispute resolution mechanism are the top five risks challenging the adoption of smart contracts in construction projects. Risk mitigation strategies based on FGD show that improvements for the semi-automated smart contract drafting are considered more practicable compared to full automation.Originality/valueThe literature is limited in terms of the adoption of smart contracts, while the topic is receiving more attention recently. To support easy prevalence of smart contracts, this study attempts the most challenging aspects of smart contract adoption.

Trust but Verify: The Oracle Paradox of Blockchain Smart Contracts

2021 ◽  
Author(s):  
Abdullah Albizri ◽  
Deniz Appelbaum
Keyword(s):  
Internal Control ◽  
Process Management ◽  
Weak Link ◽  
Design Science ◽  
Science Research ◽  
Third Party ◽  
Smart Contracts ◽  
Independent Verification ◽  
Smart Contract ◽  
Control Application

Although research shows that blockchain provides fairly immutable virtual provenance workflows, proof that the Blockchain accurately represents physical events lacks truly independent verification. This dilemma, the Oracle Paradox, challenges blockchain architecture and is perhaps one reason why businesses have hesitated to adopt smart contracts. Blockchain proponents claim that people can serve as trusted Oracles in a smart contract. However, auditing research shows that people are the weak link in almost every internal control application, including those pertaining to blockchain. People are susceptible to collusion, bribery, error, and fraud and these tendencies are not entirely mitigated by blockchain technologies (Balagurusamy et al. 2019; Nakamoto 2008). This research proposes a framework to mitigate the paradox of the Oracle: A Business Process Management (BPM) model of a Blockchain Smart Contract-enabled Supply Chain with IoT as the sole "third-party" Oracle participant, utilizing Design Science research.

scholarly journals SMART CONTRACT AND CHALLENGES TO LAW

2020 ◽  
Author(s):  
Gergana Varbanova ◽  
Keyword(s):  
Civil Law ◽  
Smart Contracts ◽  
Program Code ◽  
Advantages And Disadvantages ◽  
Smart Contract ◽  
The Law

Are the technologies advanced enough to replace lawyers and the judiciary in the negotiation and enforcement process? Is it possible for a program code to be a contract that binds the parties named in it? What is a smart contract and what challenges does it pose to the law? The present study aims to clarify and show the advantages and disadvantages of using smart contracts in civil law.

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