This contributed volume provides academic insights into the digital financial world. It illustrates the state-of-the-art research on financial technology and innovation with special focus on the impact in society. Technologies are not only door openers for the digital world, but they are also key drivers of change. These key drivers of digitalization, accelerating the pace, are literally forcing individuals to adapt. The authors discuss these dynamics and reflect on society’s adaptability.
The first part of the book focuses on cryptocurrencies as disruptive technology. It discusses the status quo, future trends and legal frameworks for virtual money. The second part of the book sheds light on value creation in a digitalized world. The authors discuss digital platforms and economic networks and the impact of digital dominance.
Author(s): Martin Užík, Christian Schmitz, Sebastian Block
Series: Financial Innovation and Technology
Publisher: Springer
Year: 2023
Language: English
Pages: 186
City: Cham
Preface
Contents
Contributors
Part I: The Key Prerequisite of Digitalization: Money
Chapter 1: Digital Gold and Gold-Backed Crypto Currencies: The Return of the Gold Standard
Introduction
Viva La Revolution! Bitcoin, Blockchain, and the Digital Age
Breaking the Monopoly: The Decentralization of Money
What Is Money Anyway? The Evolution of the Global Currency System in a Nutshell
Let´s Take One Step Back: Gold, Gold Standard, Nixon Shock, and Fiat Money
Asset-Backed Crypto Currencies and Gold
Cui Bono? What Is the Value-Added Proposition of Gold Digitalization?
Gold Digitalization and Gold-Backed Crypto Currencies: Concepts and Best Practice
Royal Mint and Royal Mint Gold (RMG), United Kingdom (www.royalmint.com)
Vaultoro, United Kingdom (www.vaultoro.com)
GoldMint, Russia (www.goldmint.io)
Glint, United Kingdom (www.glintpay.com)
Golden Coin, Switzerland (www.goldencoin.com)
Orebits, USA (www.orebits.io)
Conclusion
References
Chapter 2: Crypto Currencies: Speculative Bubble or Disruptive Technology?
Introduction
Definitions
What Is Blockchain?
What Is a Crypto Currency?
What Is Bitcoin?
Being Able to be Used for Transactions
Being Able to be Used as a Unit of Account
Being Able to Store Value
Fundamental Analysis
Programming Costs
Production Costs
Gold Multiple
Bitcoin as a Global Currency
Conclusion of the Fundamental Analysis
Empirical Analysis
Preconditions of Speculative Bubbles
Phases of a Bubble
Bitcoin Price Development
Conclusion of the Empirical Analysis
Opportunities and Risks of Crypto Currencies
Security of Transactions and Balances
Transaction Efficiency
Smart Contracts
Digital Store of Value
High Volatility
Government Regulations
Conclusion
References
Chapter 3: Theoretical Basics of Distributed Ledger Technologies
Distributed Ledger Technologies
Permissionless Blockchain
Permissioned Blockchain
Directed Acyclic Graphs and Other DLT Technologies
Consensus Mechanisms
Proof of Work
Proof of Stake
Practical Byzantine Fault Tolerance
DAG Consensus Mechanism
Smart Contracts
Tokenization
Conclusion
References
Chapter 4: Qualitative Comparison of Selected Token Standards for Asset Tokenization
Introduction
Methodology
Analysis
Qualitative Characteristics
Primary Qualitative Characteristics
Secondary Qualitative Characteristics
DLT for Tokenization
Results for the Asset Categories Under Review
Characteristics of Financial and Real Assets
Relevance of the Quality Characteristics
Platform Selection and Recommendation
Conclusion
References
Chapter 5: Legal Requirements in the Field of Virtual Currencies
Introduction
Definitions
Crypto Currencies
Currency Token
Utility Token
Security Token
Blockchain
Initial Coin Offering
Legal Requirements of the Licensing Obligation for Issuers of Crypto Currencies and Crypto Service Providers According to the ...
Permit Requirements for Financial Commission Transactions (Section 1 (1) Sentence 2 No. 4 KWG)
Permit Requirements for Investment Brokerage (Section 1 (1a) Sentence 2 No. 1 KWG)
Licensing Requirements for a Multilateral Trading System (Section 1 (1a) No. 1b KWG)
Permit Requirements for Crypto Custody Transactions (Section 1 (1a) No. 6 KWG)
Outlook
Markets in Crypto-Assets (MiCA)
References
Part II: Value Creation in the Digital World
Chapter 6: The Social Network Value of Professional Soccer Players
Introduction
Social Media and Social Networks
Influencers and Personal Brands
Literature Review
Methodology and Model Baselines
Input Parameter
CPM
Term
Interaction Rate
Market Value of the Player
Model Development
Data and Results
Data
Results
Conclusion
References
Chapter 7: Creating Value in the Digital World
Introduction
Value in the Era of Digital Disruption
The Phenomenon of Split Economics
PVGO: The Financial Core Concept
The Split Concept of Real Options
Real Options and PVGO: A Fit for VUCA Times
Maximizing Value in VUCA Times
Conclusion
References
Chapter 8: The Digital Magic of Value Creation: Digital Platforms in Networked Economics
Introduction
The Digital Fundamentals: Networks and Platforms
Strategic Decisions on Platforms with Network Effects
Compatibility and Adoption
Co-Opetition
Time to Move First
Winning in the Digital World of Networked Economics
The Shortfall of Empiric Evidence
The Limitations of Growth
Conclusion
References
Chapter 9: The Value of Digital Dominance: Why the Silicon Valley Outperforms Industrial Giants
Introduction
Method and Data
Graphical Analysis
The Digital Natives
The Classic Industrials
Cluster Analysis
Limitations and Conclusion
References
Chapter 10: The Economic Impact of Open Data as Liquid Information for Unlocking Potential
Introduction
Definitions
What Is Open Data?
Who Are the Users of Open Data?
Open Data in Germany
Publishing Open Data
Step 1: Identification
Step 2: Selection
Step 3: Publication
Step 4: Editing
Step 5: Usage
Economic Impact of Open Data
How Does Open Data Create Added Value?
What Are the Economic Effects of Open Data?
How Great Is the Added Value of Open Data?
Challenges to Unlocking the Potential of Open Data
Challenge 1: Missing Holistic Data Strategies in the Administrations
Challenge 2: Build Data Literacy in Administrations
Challenge 3: Technically Improve Data Transfer
Challenge 4: Exchange of Municipalities
Challenge 5: Strengthening Competencies in Data Protection and Security
Conclusion
References
