Cryptocurrency Open Innovation Payment System: Comparative Analysis of Existing Cryptocurrencies
Abstract
:1. Introduction
- The institutional one defines the financial system from the point of view of financial institutions and considers their functioning and relationships within the market;
- The monetary one considers the financial system from the side of providing the real economy with money, that is, it reveals this concept as a mechanism for providing the real economy with money;
- The distributive one characterizes the financial system from the point of view of the functions of distribution and transformation of capital or from the point of view of the mechanism of redistribution of funds depending on their excess or shortage;
- The functional one performs the function of a system that covers a network of financial markets, financial intermediaries, and other financial institutions that implement the financial plans of households, businesses, and public authorities; and
- In the system approach the relationship between the elements of the financial system and their impact on the functioning of the financial sector and the economy as a whole is considered [1].
2. Literature Review
3. Methods
4. Results
5. Discussion: Cryptocracy Open Innovation
- The possibility of linking the value of cryptocurrencies to specific assets, which ensures the reliability of the cryptocurrency, for example, the cost of electricity. This means that there are no real specific performance indicators that confirm the intrinsic value of the cryptocurrency. For example, the internal value of shares is determined by analyzing the financial condition of the issuer and its performance indicators (liquidity, profitability, property value, etc.) [46,47].
- The human factor. In the absence of oscillators and other indicators on the stock exchange in the crypto sector, investors tend to make trading mistakes, which negatively affects the stability of supply and demand and, accordingly, the cryptocurrency exchange rate.
6. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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Characteristics | Decentralized System | Centralized System |
---|---|---|
Transaction confirmation | It takes place using power technology | Controls the system management, which is an independent party [14] |
Scalability | Problems of bandwidth expansion, frequent emission limitations | High throughput and expansion capabilities of the system [15] |
Stability | The heterogeneity of the technical equipment of the system participants makes it unpredictable and unstable | Standardized control system hardware and software improves the stability and speed of the system |
Risk of Attack 51% | The smaller the system, the greater the possibility of capturing control by a group of miners with a share greater than 51% [16] | NA |
Privacy | No need for personal data [17] | NA |
Regression Model | F |
---|---|
Bitcoin Cash | 6.47 |
Qtum | 2.64 |
Bitcoin | 1.36 |
Zcash | 3.06 |
Tether | 2.68 |
Monero | 0.005 |
Tezos | 5.48 |
Litecoin | 3.06 |
Dogecoin | 0.82 |
Dash | 1.97 |
Cardano | 3.70 |
Vechain | 0.01 |
Ethereum | 1.43 |
Augur | 0.04 |
Gnosis | 0.93 |
Watermelon | 0.97 |
Ripple | 1.70 |
Stellar Lumens | 0.51 |
Cosmos | 0.43 |
EOS | 0.14 |
Visa | 4.33 |
Bitcoin | S&P500 | DJI | IMOEX | |
---|---|---|---|---|
Bitcoin | 1 | |||
S&P500 | 0.53008 | 1 | ||
DJI | 0.607055 | 0.84014 | 1 | |
IMOEX | 0.439451 | 0.87806 | 0.911365 | 1 |
Explained Variables | Number of Transactions Added to the Mempool per Second | Number of Terahashes per Second in the Last 24 h | Average Time for which a Transaction Including in the Extracted Block and the Public Register |
---|---|---|---|
Bitcoin cash | 0.03 | 0.02 | −0.05 |
Bitcoin | 0.02 | 0.02 | −0.01 |
Ethereum | 0.16 | 0.23 | −0.14 |
Ripple | 0.03 | 0.04 | −0.02 |
Bitcoin | 0.02 | 0.04 | −0.06 |
Stellar | 0.03 | 0.07 | −0.05 |
Litecoin | 0.08 | 0.16 | −0.08 |
Monero | 0.01 | 0.08 | −0.07 |
IOTA | 0.01 | 0.05 | −0.03 |
Dash | 0.05 | 0.08 | −0.05 |
Cosmos | 0.06 | 0.05 | −0.03 |
EOS | 0.01 | 0.01 | −0.01 |
Significance level | 0.05 | 0.05 | 0.05 |
Observations | 1.825 | 1.825 | 1.825 |
R2 | 0.914 | 0.828 | 0.747 |
Adjusted R2 | 0.912 | 0.829 | 0.748 |
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Titov, V.; Uandykova, M.; Litvishko, O.; Kalmykova, T.; Prosekov, S.; Senjyu, T. Cryptocurrency Open Innovation Payment System: Comparative Analysis of Existing Cryptocurrencies. J. Open Innov. Technol. Mark. Complex. 2021, 7, 102. https://doi.org/10.3390/joitmc7010102
Titov V, Uandykova M, Litvishko O, Kalmykova T, Prosekov S, Senjyu T. Cryptocurrency Open Innovation Payment System: Comparative Analysis of Existing Cryptocurrencies. Journal of Open Innovation: Technology, Market, and Complexity. 2021; 7(1):102. https://doi.org/10.3390/joitmc7010102
Chicago/Turabian StyleTitov, Valery, Mafura Uandykova, Oleg Litvishko, Tatyana Kalmykova, Sergey Prosekov, and Tomonobu Senjyu. 2021. "Cryptocurrency Open Innovation Payment System: Comparative Analysis of Existing Cryptocurrencies" Journal of Open Innovation: Technology, Market, and Complexity 7, no. 1: 102. https://doi.org/10.3390/joitmc7010102