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The emerging blockchain technology supports decentralized computing paradigm shift and is a rapidly approaching phenomenon. While blockchain is thought primarily as the basis of Bitcoin, its application has grown far beyond cryptocurrencies…

Cryptography and Security · Computer Science 2020-06-23 Reza M. Parizi , Ali Dehghantanha , Kim-Kwang Raymond Choo , Amritraj Singh

A blockchain replaces central counterparties with time-consuming consensus protocols to record the transfer of ownership. This settlement latency slows cross-exchange trading, exposing arbitrageurs to price risk. Off-chain settlement,…

Trading and Market Microstructure · Quantitative Finance 2023-10-20 Nikolaus Hautsch , Christoph Scheuch , Stefan Voigt

Since its inception, the blockchain technology has shown promising application prospects. From the initial cryptocurrency to the current smart contract, blockchain has been applied to many fields. Although there are some studies on the…

Cryptography and Security · Computer Science 2020-11-05 Xiaoqi Li , Peng Jiang , Ting Chen , Xiapu Luo , Qiaoyan Wen

Blockchains face a scalability limitation, partly due to the throughput limitations of consensus protocols, especially when aiming to obtain a high degree of decentralization. Layer 2 Rollups (L2s) are a faster alternative to conventional…

Cryptography and Security · Computer Science 2025-09-11 Margarita Capretto , Martín Ceresa , Antonio Fernández Anta , Pedro Moreno-Sanchez , César Sánchez

Cryptocurrencies, led by bitcoin launched in 2009, have obtained wide attention due to the emerging Blockchain in recent years. Anonymous cryptocurrencies are highly essential since users want to preserve their privacy when conducting…

Cryptography and Security · Computer Science 2019-02-12 Lingyue Zhang , Huilin Li , Yannan Li , Yanqi Zhao , Yong Yu

Cryptocurrencies have evolved into an important asset class, providing a variety of benefits. However, they also present significant risks, such as market volatility and the potential for misuse in illegal activities. These risks underline…

Computers and Society · Computer Science 2024-07-02 Xihan Xiong , Junliang Luo

The Lightning Network (LN) is a prominent payment channel network aimed at addressing Bitcoin's scalability issues. Due to the privacy of channel balances, senders cannot reliably choose sufficiently liquid payment paths and resort to a…

Cryptography and Security · Computer Science 2021-03-16 Rene Pickhardt , Sergei Tikhomirov , Alex Biryukov , Mariusz Nowostawski

Bitcoin blockchain faces the bitcoin scalability problem, for which bitcoin's blocks contain the transactions on the bitcoin network. The on-chain transaction processing capacity of the bitcoin network is limited by the average block…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-08-14 Changting Lin , Ning Ma , Xun Wang , Zhenguang Liu , Jianhai Chen , Shouling Ji

We develop a model of stable assets, including non-custodial stablecoins backed by cryptocurrencies. Such stablecoins are popular methods for bootstrapping price stability within public blockchain settings. We derive fundamental results…

Trading and Market Microstructure · Quantitative Finance 2023-03-31 Ariah Klages-Mundt , Andreea Minca

Payment channel networks are an approach to improve the scalability of blockchain-based cryptocurrencies. The Lightning Network is a payment channel network built for Bitcoin that is already used in practice. Because the Lightning Network…

Cryptography and Security · Computer Science 2025-05-22 Matthias Grundmann , Hannes Hartenstein

Bitcoin has emerged as a revolutionary payment system with its decentralized ledger concept however it has significant problems such as high transaction fees and long confirmation times. Lightning Network (LN), which was introduced much…

Cryptography and Security · Computer Science 2021-05-31 Ahmet Kurt , Suat Mercan , Omer Shlomovits , Enes Erdin , Kemal Akkaya

Leakage contracts have recently been proposed as a new security abstraction at the Instruction Set Architecture (ISA) level. Such contracts aim to faithfully capture the information processors may leak through side effects of their…

Cryptography and Security · Computer Science 2023-09-29 Zilong Wang , Gideon Mohr , Klaus von Gleissenthall , Jan Reineke , Marco Guarnieri

Cryptocurrencies (CCs) have risen rapidly in market capitalization over the last years. Despite striking price volatility, their high average returns have drawn attention to CCs as alternative investment assets for portfolio and risk…

Portfolio Management · Quantitative Finance 2020-09-18 Alla Petukhina , Simon Trimborn , Wolfgang Karl Härdle , Hermann Elendner

This paper examines the dynamics of the cryptocurrency market and proposes a novel blockchain-based protocol for real estate transactions. Our analysis includes a detailed review of price trends, volatility, and correlations within the…

Permissionless blockchains offer an information environment where users can interact privately without fear of censorship. Financial services can be programmatically coded via smart contracts to automate transactions without the need for…

General Finance · Quantitative Finance 2022-12-13 Kanis Saengchote

Cryptocurrencies are examined through the asset flow equations and experimental asset markets. Since tangible value of a typical cryptocurrency is non-existent, the theory suggests that price will gravitate toward liquidity value, i.e., the…

Mathematical Finance · Quantitative Finance 2018-02-28 Carey Caginalp , Gunduz Caginalp

Attribute-based encryption (ABE) comprises a set of one-to-many encryption schemes that allow the encryption and decryption of data by associating it with access policies and attributes. Therefore, it is an asymmetric encryption scheme, and…

Cryptography and Security · Computer Science 2022-09-27 Aintzane Mosteiro-Sanchez , Marc Barcelo , Jasone Astorga , Aitor Urbieta

As an emerging service framework built by combining cryptography, P2P network, consensus mechanism and innovative contract technology, blockchain has been widely used in digital finance, data sharing, message traceability and electronic…

Cryptography and Security · Computer Science 2025-08-05 Wenwen Zhou , Dongyang Lyu , Xiaoqi Li

Private blockchain networks are used by enterprises to manage decentralized processes without trusted mediators and without exposing their assets publicly on an open network like Ethereum. Yet external parties that cannot join such networks…

Cryptography and Security · Computer Science 2021-01-26 Dushyant Behl , Palanivel Kodeswaran , Venkatraman Ramakrishna , Sayandeep Sen , Dhinakaran Vinayagamurthy

The application of Bitcoin enables people to understand blockchain technology gradually. Bitcoin is a decentralized currency that does not rely on third-party credit institutions, and the core of Bitcoin's underlying technology is…

Cryptography and Security · Computer Science 2025-04-15 Yuhuan Yang , Shipeng Ye , Xiaoqi Li