2023/02/13 by Ravi Kashyap, Kashyap, Ravi
Computer Science · #90B70 Theory of organizations #91G45 Financial networks #93A14 Decentralized systems #97U70 Technological tools #Blockchain Technology Applications and Security #Computers and Society (cs.CY) #Cryptography and Security (cs.CR) #FOS: Computer and information sciences #FOS: Economics and business #General Economics (econ.GN)
paper · pdf · doi:10.48550/arxiv.2302.06348
openalex publication_date 2023/02/13 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
We discuss numerous justifications for why crypto-currencies would be highly conducive for the smooth functioning of today's society. We provide several comparisons between cryptocurrencies issued by blockchain projects, crypto, and conventional government issued currencies, cash or fiat. We summarize seven fundamental innovations that would be required for participants to have greater confidence in decentralized finance (DeFi) and to obtain wealth appreciation coupled with better risk management. The conceptual ideas we discuss outline an approach to: 1) Strengthened Security Blueprint; 2) Rebalancing and Trade Execution Suited for Blockchain Nuances 3) Volatility and Variance Adjusted Weight Calculation 4) Accommodating Investor Preferences and Risk Parity Construction; 5) Profit Sharing and Investor Protection; 6) Concentration Risk Indicator and Performance Metrics; 7) Multi-chain expansion and Select Strategic Initiatives including the notion of a Decentralized Autonomous Organization (DAO). Incorporating these concepts into several projects would also facilitate the growth of the overall blockchain eco-system so that this technology can, have wider mainstream adoption and, fulfill its potential in transforming all aspects of human interactions.