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2022 | Book

Enabling the Internet of Value

How Blockchain Connects Global Businesses

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About this book

This book shows how blockchain technology can transform the Internet, connecting global businesses in disruptive ways. It offers a comprehensive and multi-faceted examination of the potential of distributed ledger technology (DLT) from a new perspective: as an enabler of the Internet of Value (IoV).

The authors discuss applications of blockchain technology to the financial services domain, e.g. in real estate, insurance and the emerging Decentralised Finance (DeFi) movement. They also cover applications to the media and e-commerce domains. DLT’s impacts on the circular economy, marketplace, Internet of Things (IoT) and oracle business models are also investigated. In closing, the book provides outlooks on the evolution of DLT, as well as the systemic governance and privacy risks of the IoV.

The book is intended for a broad readership, including students, researchers and industry practitioners.

Table of Contents

Frontmatter

Introduction to the Internet of Value

Frontmatter
Defining the Internet of Value
Abstract
This chapter begins by examining the development and evolution of the Internet and the rise of blockchain. It then moves on to the various definitions of the Internet of Value (IoV), noting that blockchain is the commonality between all of them. A definition of the IoV is suggested as the “instant transfer of assets that can be expressed in monetary terms over the Internet between peers without the need for intermediaries”. The attributes of an effective IoV are described along with the potential enablers of its development. Finally, the chapter concludes with a high-level examination of the economic impact that the successful enablement of the IoV could have.
Horst Treiblmaier
Internet of Value: A Risky Necessity
Abstract
In this chapter, it is argued that the blooming of the Internet of Value (IoV) is a necessary journey that we need to take in order to accommodate the unfolding of four long-term mega socio-techno trends: datafication, dematerialisation, platformisation, and social and resources value awareness. The risks of the IoV are also discussed.
Paolo Tasca

How DLT Will Evolve in the Future

Frontmatter
Blockchains, DLTs and the Future of Payments
Abstract
This chapter examines how distributed ledger technology (DLT) could transform payments and the benefits that could ensue. This is then followed by an examination of how DLT can facilitate machine-to-machine interactions and the transformative impacts of this.
Theodosis Mourouzis, Nikolas Markou
Consensus: Proof of Work, Proof of Stake and Structural Alternatives
Abstract
This chapter examines the future of distributed ledger technology from the perspective of the evolution of consensus mechanisms, discussing which new consensus mechanisms could replace proof of work. These include directed acyclic graphs, proof of stake and proof of burn. For those more mathematically inclined, this part also explores the dynamics of consensus mechanisms from a mathematical perspective.
Nicola Dimitri

The Internet of Value and Financial Services

Frontmatter
The New Internet of Value Financial Ecosystem
Abstract
This chapter examines the new business models that have emerged from within the financial services sector due to the development of the Internet of Value, concentrating on decentralised consensus. The chapter breaks this down by examining new business models that will develop through a decentralised consensus-based on state, procedure, and agency.
Hermann Elendner
From Banks to DeFi: the Evolution of the Lending Market
Abstract
The Internet of Value (IoV) with its distributed ledger technology (DLT) underpinning has created new forms of lending markets. As an integral part of the decentralised finance (DeFi) ecosystem, lending protocols are gaining tremendous traction, holding an aggregate liquidity supply of over $40 billion at the time of writing. In this paper, we enumerate the challenges of traditional money markets led by banks and lending platforms and present advantageous characteristics of DeFi lending protocols that might help resolve deep-rooted issues in the conventional lending environment. With the examples of Maker, Compound and Aave, we describe in detail the mechanism of DeFi lending protocols. We discuss the persisting reliance of DeFi lending on the traditional financial system and conclude with the outlook of the lending market in the IoV era.
Jiahua Xu, Nikhil Vadgama
Real Estate and the Internet of Value
Abstract
This chapter looks at the largest asset class in the world, real estate. The chapter discusses how this often-overlooked sector is ripe for disruption with distributed ledger technology (DLT) and features general applications and advantages of adopting new technologies in the sector. A proof-of-concept undertaken by the authors and the United Kingdom Land Registry for a property transaction occurring on a DLT system is also described. The chapter ends with a discussion on challenges for DLT adoption in the industry.
Alastair Moore, Niall Roche, Nikhil Vadgama

The Internet of Value and Media

Frontmatter
New Media Business Models to Emerge from the Internet of Value
Abstract
This chapter focuses on copyright and royalties related to media assets. It begins with an exploration of current and related legislation and then moves on to how the Internet of Value can transform the industry. Importantly, it includes a discussion on the implementation of the applications of new business models and how to seize the new opportunities they present.
Philippe Rixhon
Solving Challenges in the Media Sector with DLT
Abstract
Throughout history, media is a field that has been affected by technological development. Since the 1990s, the Internet has been the main driver of influence, profoundly affecting how people create, transmit and share information worldwide, consequently changing the structure of the media sector. Although digital technologies are transforming the media sector, various challenges are arising as seen in fake news and echo chamber. This chapter explores how distributed ledger technology (DLT) and blockchain technologies can contribute to solving new challenges in the media sector. This is worth exploring because the central advantages of blockchain/DLT are related to trust, and the new challenges in the media sector are mainly related to the lack of trust. This chapter provides a framework to show the benefits of using blockchain/DLT and discusses how those benefits can solve the challenges in the media sector.
Soichiro Takagi

The Internet of Value and E-Commerce

Frontmatter
The Internet of Value in Consumer Markets
Abstract
This chapter focuses on how the Internet of Value can address e-commerce business models in the areas of loyalty, direct to consumer, servitisation, sustainability, data and self-sovereign identity. All these areas have a direct impact on the evolving role of e-commerce business models and how these will affect consumer markets.
Peter Bambridge, Chris Wyper
Marketplaces and the Internet of Value
Abstract
This chapter focuses on the importance of e-commerce marketplaces and how the properties of trust, transparency and immutable data, which are brought forth by blockchain, can lead to a fully functioning decentralised marketplace.
Antony Welfare
The Internet of Value and the Circular Economy
Abstract
This chapter focuses on how the Internet of Value can empower new business models in e-commerce focussed on the circular economy. This chapter includes case studies on the fashion industry before moving on to discuss the importance of non-fungible tokens empowering new business models.
Geri Cupi

Internet of Things and Oracles

Frontmatter
The Internet of Value and Internet of Things
Abstract
This chapter focuses on discussing new business models that can emerge from the Internet of Value (IoV) when Internet of Things (IoT) devices are used. Using the Business Model Canvas, different types of emerging business models powered by IoT and the IoV are discussed, including customer to customer, customer-to-machine and machine-to-machine. Some use cases of IoT and blockchain follow. Finally, the chapter concludes with a brief analysis of how IoT is intertwining with other emerging technologies, including artificial intelligence and 5G.
Rajan Kashyap
Oracles and Internet of Things in the Internet of Value
Abstract
In this chapter, we discuss the importance of trusted information entering into blockchain systems provided by oracles. Whether these are human inputted manual signals, or automatic machine updates from Internet of Things (IoT) devices, updating records is at the heart of any blockchain-based system. Smart contracts that depend on external data rely on these devices to function correctly.
Niall Roche, Alastair Moore

Internet of Value and Systemic Risk

Frontmatter
Structure, Robustness and Efficiency of Networked Systems
Abstract
The study of networks, a very active field of research in complexity science since the 90s, provides a useful insight concerning these mechanisms and trade-offs. This chapter reviews—in an idiosyncratic manner and without a claim to completeness—some lessons that have been learned in relation to the stability and efficiency of complex networks, and its attempts to derive some insights for Internet of Value networks.
Fabio Caccioli
Potential Sources of Internet of Value Systemic Risk
Abstract
With the continuous development of the Internet of Value (IoV), the lack of interoperability between networks of trust can become an important source of systemic risk. Indeed, the main problem that the blockchain technology faces at the moment for the sake of the IoV is the lack of interoperability and the obstacles faced in building a second and third layer network. Thus, interoperability is a must, and its lack is a potential source of systemic risk. This chapter explores some of these systemic risks arguing interoperability is of paramount importance, especially in the current expansion phase where the IoVs new business models come up to erase long-standing barriers and enable the democratisation of finance and property by empowering its users to transact instantly not only across borders, but also across currencies while closing cultural and socioeconomic gaps.
Josep Lluis de la Rosa Esteva

Governance and Privacy Issues from the Internet of Value

Frontmatter
Governance and Privacy Issues from the Internet of Value
Abstract
This chapter considers the challenges and risks arising from the Internet of Value (IoV) on governance and privacy that are apparent with the transfer of trust and risk. It further considers the current governance and privacy issues with the development of new digital services such as blockchain that underpin the IoV, and how these issues need to be addressed.
Mike Brookbanks
Backmatter
Metadata
Title
Enabling the Internet of Value
Editors
Nikhil Vadgama
Dr. Jiahua Xu
Dr. Paolo Tasca
Copyright Year
2022
Electronic ISBN
978-3-030-78184-2
Print ISBN
978-3-030-78183-5
DOI
https://doi.org/10.1007/978-3-030-78184-2

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