Blockchain for Islamic Social Responsibility Institutions

Blockchain and smart contracts are forming new systems to record and manage businesses with less need for intermediaries. The new systems are expected to offer high level of governance with lower cost as compared to the traditional technologies. While there is a continuous effort to apply this innovative technology in several businesses, Islamic finance in general—and Islamic social finance in particular—are facing few challenges that could be solved by such innovations. Islamic social finance institutions such as waqf are facing some challenges in enhancing its governance structure to ensure Shariah compliance as well as economic efficiency. This chapter explains how blockchain and smart contract technologies can help these institutions for better governance, lower transaction cost, more transparency, and higher trust, hence enhancing the business flexibility and market accessibility. It also presents some related cases that are currently under development as an evidence for the practicality of these technologies in the Islamic social finance arena.

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Blockchain for Islamic Social Responsibility Institutions

Research Anthology on Blockchain Technology in Business, Healthcare, Education, and Government ◽

10.4018/978-1-7998-5351-0.ch061 ◽

2021 ◽

pp. 1114-1128

Author(s):

Moutaz Abojeib ◽

Farrukh Habib

Keyword(s):

Social Responsibility ◽

Transaction Cost ◽

Economic Efficiency ◽

Governance Structure ◽

Innovative Technology ◽

Islamic Finance ◽

Smart Contracts ◽

Smart Contract ◽

Traditional Technologies ◽

High Level

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Fintech and Shariah Principles in Smart Contracts

FinTech as a Disruptive Technology for Financial Institutions - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-5225-7805-5.ch009 ◽

2019 ◽

pp. 207-220 ◽

Cited By ~ 5

Author(s):

Norafni Farlina Rahim ◽

Mohammed Hariri Bakri ◽

Siti Norbaya Yahaya

Keyword(s):

Early Stage ◽

Emerging Technology ◽

Islamic Finance ◽

Disruptive Technology ◽

Smart Contracts ◽

Financial Transaction ◽

Finance Industry ◽

Faith Based ◽

Smart Contract ◽

Financial Technology

FinTech, or financial technology, is an emerging technology in financial transaction. It is disruptive technology which is changing the banking behavior for stakeholders. The thriving emergence of FinTech not only affects the conventional finance industry but also Islamic finance industry, as Islamic finance sector is also embracing FinTech as part of financial revolution. Thus, the Islamic FinTech emerges as faith-based FinTech. This is because Islamic FinTech claimed to comply with Shariah principle in their mechanism and smart contract. There is limited discussion on smart contract and Islamic FinTech and its Shariah principles. Hence, the Shariah principle in smart contract of Islamic FinTech need to be addressed. This chapter tries to delve into the smart contract concept in Islamic FinTech and Shariah principles in the mechanism. The review found that smart contract is currently in the early stage and so is Islamic FinTech. The scholars agreed that FinTech is a Maslahah (interest) to mankind's benefit. However, the smart contract is still in discussion and review.

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Identification of token contracts on Ethereum: standard compliance and beyond

International Journal of Data Science and Analytics ◽

10.1007/s41060-021-00281-1 ◽

2021 ◽

Author(s):

Monika Di Angelo ◽

Gernot Salzer

Keyword(s):

Large Set ◽

Smart Contracts ◽

Automated Classification ◽

Widespread Application ◽

Transaction Data ◽

Local Currency ◽

Smart Contract ◽

High Level ◽

Digital Assets

AbstractNext to cryptocurrencies, tokens are a widespread application area of blockchains. Tokens are digital assets implemented as small programs on a blockchain. Being programmable makes them versatile and an innovative means for various purposes. Tokens can be used as investment, as a local currency in a decentralized application, or as a tool for building an ecosystem or a community. A high-level categorization of tokens differentiates between payment, security, and utility tokens. In most jurisdictions, security tokens are regulated, and hence, the distinction is of relevance. In this work, we discuss the identification of tokens on Ethereum, the most widely used token platform. The programs on Ethereum are called smart contracts, which—for the sake of interoperability—may provide standardized interfaces. In our approach, we evaluate the publicly available transaction data by first reconstructing interfaces in the low-level code of the smart contracts. Then, we not only check the compliance of a smart contract with an established interface standard for tokens, but also aim at identifying tokens that are not fully compliant. Thus, we discuss various heuristics for token identification in combination with possible definitions of a token. More specifically, we propose indicators for tokens and evaluate them on a large set of token and non-token contracts. Finally, we present first steps toward an automated classification of tokens regarding their purpose.

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Firms' Choice of Regulatory Instruments to Reduce Pollution: A Transaction Cost Approach

Business and Politics ◽

10.2202/1469-3569.1073 ◽

2004 ◽

Vol 6 (3) ◽

pp. 1-20 ◽

Cited By ~ 26

Author(s):

Magali Delmas ◽

Alfred Marcus

Keyword(s):

Transaction Costs ◽

Transaction Cost ◽

Transaction Cost Economics ◽

Command And Control ◽

Governance Structure ◽

Governance Structures ◽

Negotiated Agreements ◽

Regulatory Instruments ◽

Market Opportunities ◽

And Control

This paper compares the economic efficiency of firm-agency governance structures for pollution reduction using transaction costs economics. Two governance structures are analyzed with the transaction costs approach: command and control regulation (CCR) and negotiated agreements (NAs). We propose that the choice of governance structure depends on the strategies firms pursue given the attributes of their transactions and their market opportunities. The application of transaction cost economics analysis leads to different choices of regulatory instruments. Firms in more mature, stable industries are likely to choose command and control, while firms in new, dynamic sectors are more likely to opt for negotiated agreements. Frequency of transactions is a key factor in firm choice.

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Legally Enforceable Smart-Contract Languages

ACM Computing Surveys ◽

10.1145/3453475 ◽

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.

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A PROSPECTS OF THE SUPER-INTENSIVE UNSUPPORTED GARDENS ESTABLISHMENT OF COLUMNAR APPLE TREE VARIETIES

Vestnik of the Russian agricultural science ◽

10.30850/vrsn/2021/5/45-48 ◽

1970 ◽

pp. 45-48

Author(s):

S. А. Korneeva ◽

Е. N. Sedov ◽

T. V. Янчук

Keyword(s):

Economic Efficiency ◽

Apple Tree ◽

Maximum Yield ◽

Biological Features ◽

Apple Cultivars ◽

High Level ◽

Dwarf Rootstocks

Columnar apple cultivars are optimally suited to lay apple tree plantings using intensive technology, which provides for super-dense placement of trees. The article considers a variant of growing columnar apple cultivars on inserts of dwarf rootstocks 3-17-38 and 62-396. The use of dwarf rootstocks 3-17-38 and 62-396 as intercalar inserts in the cultivation of columnar apple cultivars, along with good anchoring of plants, provides high precocity, productivity and economic efficiency of planting. All the costs of laying the orchard and annual works on agrotechnical care of the trees were paid off in the fourth year after planting.The economic and biological features of the columnar cultivars provided not only a quick return of the investments, but also a high level of profitability. The profitability of the studied columnar planting for the 6th year after planting (2020) on average for all cultivars was 106.0 % on the insert of the dwarf rootstock 62-396 and 104.7 % on the insert 3-17-38. The profit received on average for the plantings amounted to 2 378 661 rubles per ha. In the group of the studied cultivars, there is a difference in economic efficiency. The lowest level of productivity and profitability was in the Vostorg cultivar: on average, on two inserts, the yield in 2020 was 27.3 t/ha and the profitability was 66.6%. The Girlyanda cultivar was characterized by the maximum yield and profitability: 88.0 t/ha and 115.8%, respectively.

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

Finance and Credit ◽

10.24891/fc.27.8.1871 ◽

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.

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Administrative risks challenging the adoption of smart contracts in construction projects

Engineering Construction & Architectural Management ◽

10.1108/ecam-09-2020-0678 ◽

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.

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Trust but Verify: The Oracle Paradox of Blockchain Smart Contracts

Journal of Information Systems ◽

10.2308/isys-19-024 ◽

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.

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Artificial Intelligence, Smart Contract and Islamic Finance

Asian Social Science ◽

10.5539/ass.v14n2p145 ◽

2018 ◽

Vol 14 (2) ◽

pp. 145 ◽

Cited By ~ 3

Author(s):

Siti Rohaya Mat Rahim ◽

Zam Zuriyati Mohamad ◽

Juliana Abu Bakar ◽

Farhana Hanim Mohsin ◽

Norhayati Md Isa

Keyword(s):

Artificial Intelligence ◽

Computer Code ◽

Islamic Finance ◽

Human Intelligence ◽

Human Beings ◽

Finance Industry ◽

Smart Contract ◽

Huge Impact ◽

Block Chain

This study examines the two important aspect of latest technology issues in Islamic finance that related to artificial intelligence (AI) and smart contract. AI refers to the ability of machines to understand, think, and learn in a similar way to human beings, indicating the possibility of using computers to simulate human intelligence. Smart contract is a computer code running on top of a block-chain containing a set of rules under which the parties to that smart contract agree to interact with each other. The main objectives of this article are to evaluate the operations of AI and smart contract, to make comparison between the operations of AI and smart contract. This article concludes that AI and smart contract will have a huge impact in future for Islamic Finance industry.

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