Blockchain in Financial Markets

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Financial Technology and Innovation".

Deadline for manuscript submissions: 30 November 2024 | Viewed by 2096

Special Issue Editors


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Guest Editor
Blockchain Research Lab, 22083 Hamburg, Germany
Interests: blockchain; crypto assets; metaverse

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Co-Guest Editor
1. Blockchain Research Lab gGmbH, Weidestraße 120b, 22083 Hamburg, Germany
2. International College, Mahidol University, Nakhon Pathom, Thailand
Interests: central banking; monetary policy; blockchains; cryptocurrencies

Special Issue Information

Dear Colleagues,

Blockchain, the foundational technology behind crypto assets, has started to reshape the very essence of financial markets. This decentralized, transparent, and immutable technology has presented a groundbreaking transformation, stretching beyond just crypto assets to encompassing a broader spectrum of financial applications. The nascent development of blockchain within stock exchanges, remittance sectors, cross-border payments, trade finance, and syndicated loans highlights its potential to redefine how financial transactions are executed.

Over the past few years, blockchain’s inherent features, such as transparency, decentralization, and security, have gained immense traction, paving the way for an era of tokenized assets, securities, and even real estate. This phenomenon has led to the emergence of new regulatory frameworks, financial instruments, and digital infrastructure.

The evolution of blockchain within financial markets not only poses a series of potential advantages, such as increased efficiency, transparency, and reduced fraud, but also presents a unique set of challenges. As the integration of blockchain in financial systems progresses, it is crucial for academia to study, understand, and predict the transformative impact it will have on global financial dynamics.

For this Special Issue, we seek rigorous, forward-thinking research exploring the multifaceted implications of blockchain within financial markets. Our aim is to foster a comprehensive understanding of the present applications, challenges, and the prospective future of blockchain in the financial domain.

Potential research avenues include, but are not limited to:

  • Tokenization of assets and the emergence of new financial instruments;
  • Regulatory implications and challenges in integrating blockchain;
  • Blockchain's impact on traditional banking and financial systems;
  • The role of blockchain in stock exchanges, remittances, and trade finance;
  • Challenges and solutions in implementing blockchain within financial markets;
  • Case studies of successful blockchain integration in various financial sectors;
  • Exploration of decentralized finance (DeFi) within the realm of traditional financial markets;
  • Security, privacy, and trust concerns in blockchain applications;
  • Empirical analyses of crypto assets such as stablecoins, non-fungible tokens, or fan tokens;
  • The convergence of blockchain, finance, and gambling.

We encourage diverse methodological approaches and theoretical frameworks, aiming for a holistic view of blockchain's transformative potential in financial markets. If uncertain about the relevance of your research topic for this Special Issue, please reach out to the Special Issue's editor via email.

Dr. Lennart Ante
Dr. Aman Saggu
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Journal of Risk and Financial Management is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • blockchain
  • financial markets
  • tokenization
  • decentralization
  • cryptocurrency
  • crypto assets
  • stablecoins
  • regulatory frameworks
  • digital assets
  • tokenized securities
  • digital infrastructure
  • financial transactions
  • cross-border payments
  • trade finance
  • syndicated loans
  • stock exchanges
  • smart contracts
  • security and privacy
  • blockchain integration
  • DeFi (decentralized finance)
  • traditional banking disruption
  • blockchain challenges
  • financial instruments
  • blockchain efficiency
  • tokenized real estate
  • regulatory implications
  • remittances
  • financial transformation
  • blockchain adoption
  • financial innovation

Published Papers (1 paper)

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Research

28 pages, 5884 KiB  
Article
Time-Varying Bidirectional Causal Relationships between Transaction Fees and Economic Activity of Subsystems Utilizing the Ethereum Blockchain Network
by Lennart Ante and Aman Saggu
J. Risk Financial Manag. 2024, 17(1), 19; https://doi.org/10.3390/jrfm17010019 - 4 Jan 2024
Cited by 2 | Viewed by 1840
Abstract
The Ethereum blockchain network enables transaction processing and smart-contract execution through levies of transaction fees, commonly known as gas fees. This framework mediates economic participation via a market-based mechanism for gas fees, permitting users to offer higher gas fees to expedite processing. Historically, [...] Read more.
The Ethereum blockchain network enables transaction processing and smart-contract execution through levies of transaction fees, commonly known as gas fees. This framework mediates economic participation via a market-based mechanism for gas fees, permitting users to offer higher gas fees to expedite processing. Historically, the ensuing gas fee volatility led to critical disequilibria between supply and demand for block space, presenting stakeholder challenges. This study examines the dynamic causal interplay between transaction fees and economic subsystems leveraging the network. By utilizing data related to unique active wallets and transaction volume of each subsystem and applying time-varying Granger causality analysis, we reveal temporal heterogeneity in causal relationships between economic activity and transaction fees across all subsystems. This includes (a) a bidirectional causal feedback loop between cross-blockchain bridge user activity and transaction fees, which diminishes over time, potentially signaling user migration; (b) a bidirectional relationship between centralized cryptocurrency exchange deposit and withdrawal transaction volume and fees, indicative of increased competition for block space; (c) decentralized exchange volumes causally influence fees, while fees causally influence user activity, although this relationship is weakening, potentially due to the diminished significance of decentralized finance; (d) intermittent causal relationships with maximal extractable value bots; (e) fees causally influence non-fungible token transaction volumes; and (f) a highly significant and growing causal influence of transaction fees on stablecoin activity and transaction volumes highlight its prominence. These results inform strategic considerations for stakeholders to more effectively plan, utilize, and advocate for economic activities on Ethereum, enhancing the understanding and optimization of within the rapidly evolving economy. Full article
(This article belongs to the Special Issue Blockchain in Financial Markets)
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