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Blockchain and Other Distributed Ledger Technologies in Finance

In: The Palgrave Handbook of Technological Finance

Author

Listed:
  • Gilles Hilary

    (Georgetown University)

  • Laura Xiaolei Liu

    (Peking University)

Abstract

Blockchain technology was developed as the technological underpinning of the first cryptocurrency, Bitcoin. Since then, the field of finance has been leading its adoption. In this chapter, we analyze recent developments in this process. We describe emerging applications, review the academic literature on the subject, and propose research questions that may interest academics, practitioners, and regulators. We review the issuance of crypto-assets. We start with cryptocurrencies (and their impact on monetary policy), move to initial coin offerings, and finally discuss the issuance of other crypto-assets that are backed by a wide range of underlying assets. We then analyze the post-issuance behavior of these crypto-assets. We explore market integrity, market efficiency, and market microstructure issues. Lastly, we consider the token economy with a special interest in the theory of the firm and industrial organization.

Suggested Citation

  • Gilles Hilary & Laura Xiaolei Liu, 2021. "Blockchain and Other Distributed Ledger Technologies in Finance," Springer Books, in: Raghavendra Rau & Robert Wardrop & Luigi Zingales (ed.), The Palgrave Handbook of Technological Finance, pages 243-268, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-65117-6_10
    DOI: 10.1007/978-3-030-65117-6_10
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    References listed on IDEAS

    as
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    5. Yukun Liu & Aleh Tsyvinski & Xi Wu, 2019. "Common Risk Factors in Cryptocurrency," NBER Working Papers 25882, National Bureau of Economic Research, Inc.
    6. Bryan Routledge & Ariel Zetlin-Jones, 2018. "Currency Stability Using Blockchain Technology," 2018 Meeting Papers 1160, Society for Economic Dynamics.
    7. Yukun Liu & Aleh Tsyvinski, 2018. "Risks and Returns of Cryptocurrency," NBER Working Papers 24877, National Bureau of Economic Research, Inc.
    8. Huberman, Gur & Leshno, Jacob & Moalleni, Ciamac, 2017. "Monopoly Without a Monopolist: An Economic Analysis of the Bitcoin Payment System," CEPR Discussion Papers 12322, C.E.P.R. Discussion Papers.
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