Blockchains and the token economy : theory and practice /: theory and practice. (2022)

• Record Type: Book
• Further Information: Note: Edited by Mary C. Lacity, Horst Treiblmaier.
• Editors: Lacity, Mary Cecelia; Treiblmaier, Horst
• Contents: Chapter 1: Introduction the Token Economy · Horst Treiblmaier, Professor of International Management at Modul University Vienna, Research Fellow at the UCL Centre for Blockchain Technologies · Mary Lacity, Walton Professor of Information Systems and Director of the Blockchain Center of Excellence at the University of Arkansas, Sam M. Walton College of Business Abstract: In the introductory chapter we present a classification of blockchain-based tokens, describe their various use cases and summarize previous literature on the subject. We also briefly summarize the content from the contributing authors and provide an outline for the whole book. SECTION I: Studies in Theory Chapter 2: Finding the Right Balance–Decentralization in the Token Economy · Michelle Mei-Li Pfister, Graduate student at the Karlsruhe Institute of Technology majoring in information systems · Niclas Kannengießer, PhD Student at the Karlsruhe Institute of Technology · Ali Sunyaev, Director of the Institute of Applied Informatics and Formal Description Methods (AIFB) and Professor at the Karlsruhe Institute of Technology Abstract: Current token economy instances build on a variety of protocols, where distributed ledger technology (DLT) is applied to set up distributed ledgers that perform several tasks (e.g., prevention of double-spending) in a decentralized way that were previously handled by third parties. However, to date distributed ledgers can hardly interoperate with other ledgers (e.g., due to incompatible interfaces), limiting the dynamics in the token economy, for example, regarding changing collaborations and cooperation between organizations operating on separate distributed ledgers. Cross-ledger interoperability (CLI) artifacts can interconnect distributed ledgers. Still, it is unclear how the degree of decentralization (i.e., political and technical) of CLI artifacts will affect token economy instances on currently separated distributed ledgers. To understand these effects, we introduce and explain patterns of CLI artifacts and discuss their impact from both the political and technical perspectives under engagement of DLT experts. Drawing from derived implications, we discuss challenges related to the usage of CLI to enable interconnected token economy instances. Chapter 3: Non-fungible Tokens (NFTs): A Marketplace Analysis · Marinos Themistocleus, Director of the Institute for the Future and Associate Dean at the School of Business, University of Nicosia · Leonidas Katelaris, Research Assistant at the University of Nicosia · Klitos Christodoulou, Assistant Professor in the Department of Management and MIS – Digital Currency at the University of Nicosia Abstract: Non-fungible tokens (NFTs) enable the exchange of ownership of unique digital items. An NFT is an indivisible Blockchain token which can contain anything digital from songs, video games, trading cards, drawings etc. NFTs propose a new category of blockchain-based tokens. Their 'predecessor' fungible tokens were used mainly during the Initial Coin Offering (ICOs) crowdfunding hype, which estimated at 12 billion USD and were made available due to the ERC-20 standard. NFTs were initially proposed by the ERC-721 standard which denoted the two aspects that differentiated NFTs from fungible tokens i.e., their uniqueness and non-divisibility. NFTs offer a new type of on-chain tokens, which addresses different use cases such as the authenticity and ownership of a unique digital asset. NFTs recently gained massive attention, with some of the paradigms to include the digital art collection sold by Beeple for 69$ million at Christie's. The CEO and co-founder of twitter is another example of the NFT frenzy, who sold his first tweet for 2.9$ million. A popular NFT use case is the NBA and Dapper Labs partnership, known as the NBA Topshop, which mints and sells videos from NBA highlights as NFTs. Currently, more than 100, 000 users claim at least one NBA highlight video, with the dunk by Lebron James to exceed 250, 000$. The aim of this chapter is to identify and discuss the types of NFTs in existence and the purpose(s) each type of NFT serves. Furthermore, this chapter aims to present an analysis of current and emerging NFT Marketplaces. Chapter 4: Real Estate Asset Tokenization · Philipp Sandner, Head of the Frankfurt School Blockchain Center (FSBC) at the Frankfurt School of Finance & Management Abstract: The real estate industry is one of the most important and oldest asset classes in the world. It is also one of the most inefficient and inflexible ones. This chapter explores a disruptive technology that could solve fundamental problems within the real estate market. With the advent of blockchain technology and the concept of tokenization, two major possibilities have arisen. First, the fractionalization of assets or claims in general and second, the digital representation of asset ownership. The former feature has the potential to enable access to any investor to realize real estate investment opportunities. This could lead to a more democratized investment environment and greater liquidity. The latter aspect opens up room for real innovation by displaying asset ownership on a digital platform. This chapter presents most current use cases of blockchain application in the real estate industry. To further verify the business feasibility, it will provide insights gained through industry experts and real estate tokenization company representatives. The results show that the concept will most probably disrupt the current real estate market and lead to major shifts in revenue and asset ownership towards a digital environment. This chapter also identifies current challenges and hurdles that are yet to be overcome in order for blockchain technology to fully mature in this particular market. Chapter 5: Tokenized Property Rights and Regulatory Compliance for Alternative Asset Markets · Gilbert Fridgen, Full professor in Digital Financial Services and Paypal-FNR PEARL Chair, Université du Luxembourg · Alexander Rieger, Research and development specialist, Interdisciplinary Centre for Security, Reliability and Trust, Université du Luxembourg · Johannes Sedlmeir, Researcher at Kompetenzzentrum Finanz- & Informationsmanagement · Reilly Smethurst, Doctoral Researcher at the Interdisciplinary Centre for Security, Reliability and Trust, Université du Luxembourg Abstract: Alternative asset markets tend to involve lower liquidity and higher fees than public equity markets. This is especially true for the art and collectibles market. Distributed ledger technology can 'tokenize'' artworks and collectibles, so that these physical assets' property rights can be exchanged digitally via non-fungible tokens (NFTs). Tokenization offers new opportunities to alternative asset investors such as fractional ownership, asset loans that generate yield, tradeable indexes, and access to a global digital market. This, in turn, promises higher liquidity and reduced fees. The main challenge for researchers and developers is to satisfy art investors' demands for privacy as well as regulators' demands for transparency and auditability. New solutions are required that enable market participants to disclose the absolute minimum amount of information that is required by regulators. New solutions must also ensure that the tokenized property rights are authentic and legally valid. We explore new concepts from cryptography and digital identity management that can help address these challenges. Chapter 6: The Economics of DeFI Governance Tokens · Nikhil Vadgama, Deputy Executive Director at UCL Centre for Blockchain Technologies (CBT) · Jiahua Xu, Researcher at the UCL Centre for Blockchain Technologies · Paolo Tasca, Founder and Chairman at P2P Financial Systems, Founder and Executive Director of the Centre for Blockchain Technologies (UCL CBT) at University College London. Abstract: Many DeFi protocols have in recent times issued tokens to incentivize participation in their businesses. Many of these tokens are governance-related and have attracted a large interest in the market, particularly from speculators. Yet, the tangible benefits and valuations behind this remain unclear. In this chapter we examine token holder benefits vis-a-vis the valuation of tokens as perceived by their holders. We additionally explore how protocol founders profit from the employment of governance tokens and how it shapes the behavior of network participants. To this end, we seek to quantify/model the utility of governance tokens from the perspective of agents with different roles in the DeFi ecosystem. We further demonstrate real-life implementation of governance tokens with several case studies such as AAVE, COMP, UNI, SNX, YEARN, NXM, GNO. Chapter 7: Revisiting Blockchain Token Sales: How Crypto Companies Raise(d) Money · Johann Kranz, Professor for Internet Business and Internet Services at Ludwig-Maximilians-Universität München · Esther Nagel, Doctoral student at the Ludwig-Maximilians-Universität München Abstract: Like any startup, young crypto companies need to raise money. The years 2017 and 2018 saw an abrupt rise in so-called token sales. In a token sale, a startup issues proprietary blockchain tokens, which can present various rights. Initially, startups could employ this funding mechanism relatively free of regulations and without need of an intermediary. In this chapter, we critically reflect on the token sale phenomenon and derive how trust could be established in this setting. Based on extant research and empirical observations, we further trace subsequent developments to delineate technological, organizational, and environmental factors that affected the trajectory of the token sale phenomenon. Finally, we provide insights on the current state of crypto company fundraising. This chapter contributes to research on startup fundraising and token sales, and discusses the opportunities – and boundari
• Publisher Details: Basingstoke : Palgrave Macmillan
• Publication Date: 2022
• Extent: 1 online resource, illustrations (black and white)
• Subjects: 332.4; Cryptocurrencies; Blockchains (Databases)
• Languages: English
• ISBNs: 9783030951085
• Related ISBNs: 9783030951078
• Notes: Note: Description based on CIP data; resource not viewed.
• Access Rights: Legal Deposit; Only available on premises controlled by the deposit library and to one user at any one time; The Legal Deposit Libraries (Non-Print Works) Regulations (UK).
• Access Usage: Restricted: Printing from this resource is governed by The Legal Deposit Libraries (Non-Print Works) Regulations (UK) and UK copyright law currently in force.