Handbook of Blockchain, Digital Finance, and Inclusion, Volume 3

Web3, AI, Privacy and Greentech

1st Edition - April 25, 2025
Imprint: Academic Press
Editors: David Lee Kuo Chuen, Robert H. Deng
Language: English
Paperback ISBN:
9 7 8 - 0 - 4 4 3 - 3 4 7 1 7 - 7
eBook ISBN:
9 7 8 - 0 - 4 4 3 - 3 4 7 1 8 - 4

Handbook of Blockchain, Digital Finance, and Inclusion, Volume Three: Web3, AI, Privacy and Greentech presents the latest technological developments and innovations occurr… Read more

Handbook of Blockchain, Digital Finance, and Inclusion, Volume 3

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Handbook of Blockchain, Digital Finance, and Inclusion, Volume Three: Web3, AI, Privacy and Greentech presents the latest technological developments and innovations occurring in cryptocurrency. The book explores the hottest topics in this fast-moving area, emphasizing the financial opportunities made possible by cryptocurrencies, such as DePIN and decentralized finance while also presenting the theories and advances that have the potential to create additional opportunities in the convergence of blockchain with AI and privacy technology. Users will find this to be an important resource that bridges the gap between practical usability and academic perspective.

This new volume continues the tradition of the first two, focusing on the latest trends, including Web3, Zero Knowledge Proof, Machine learning, Quantum Technologies, the Internet of Things in ESG, decentralized networks, digitalization, and more. It will serve as a valuable reference to an international audience that wants to learn not only about their own fields of specialization but also related fields.

Handbook of Blockchain, Digital Finance, and Inclusion
Cover image
Title page
Table of Contents
Copyright
Contributors
Section 1: Web3
Chapter 1 Reconceptualizing Web3 as a human-centered infrastructure for the digital economy in the age of AI: An Information Theory and Political Economy approach
Abstract
1 Introduction
2 Web3 literature review
2.1 Research process and sample selection
2.2 Rationale for selection
2.3 Findings
3 Synthesis of findings and author's conclusions
4 A new Web3 conceptual framework: Merging Information Theory and Political Economy in a historical context
4.1 Information Theory and Web3
4.2 Political economy and Web3
5 A new political economic model for decentralized digital economy and governance_ A critical debate
5.1 A decentralized ideal
5.2 Realistic varieties of Web3: A critical reflection
6 Web3 Tech Stack
7 Implications
8 Conclusion
References
Chapter 2 Blockchain interoperability for decentralized finance
Abstract
1 Introduction
1.1 Brief explanation of blockchain interoperability
1.2 Brief explanation of decentralized finance
1.3 The application value of interoperability in DeFi
2 The significance of interoperability in DeFi
2.1 DeFi landscape
2.2 Limitations of blockchains in supporting DeFi
2.3 How interoperability addresses these limitations
3 Security considerations on DeFi
3.1 Security and trust considerations
3.2 Regulatory challenges in a multichain environment
4 Practical application projects
4.1 THORChain
4.2 Aave
4.3 SushiSwap
5 The future development of DeFi
5.1 Anticipated development trends in DeFi
5.2 The impact of new technologies and standards on DeFi
5.3 The impact of blockchain interoperability on DeFi
6 Conclusion
References
Chapter 3 Quantum technologies in decentralization
Abstract
1 Introduction
2 Overview of quantum technologies
2.1 Key concepts
2.2 Quantum algorithms
2.3 Quantum hardware
2.4 Quantum networks
3 Quantum attacks on blockchains
3.1 Attacks
3.2 Defending against attacks
4 Quantum improvements for blockchains
4.1 Blockchain trilemma
4.2 Other advantages
5 Quantum distributed average computation
5.1 Introduction
5.2 Problem setting
5.3 A quantum protocol for distributed computation of the average
5.4 A round of the proposed quantum protocol
6 Concluding remarks
Declaration of AI and AI-assisted technologies in the writing process
References
Chapter 4 Navigating cryptocurrencies’ next frontier: The revolution toward decentralizing physical infrastructure
Abstract
1 The concept of decentralized physical infrastructure network (DePIN)
2 The mechanism of DePIN
3 DePIN feasibility analysis with LASIC principles
4 Public blockchains developing DePIN
4.1 Solana
4.2 IoTeX
4.3 GM network
4.4 MXC
5 DePIN use cases
5.1 Decentralized storage
5.2 Decentralized wireless network
5.3 Renewable energy
5.4 Decentralized computing network
6 Development trends of DePIN
7 Challenges of DePIN
8 Summary
References
Chapter 5 DAO and DAO governance
Abstract
1 Introduction of DAO
1.1 Definition of DAO
1.2 Common features of DAOs
1.3 Categorizations and types of DAOs
2 DAO governance
2.1 Definition of DAO governance
2.2 General governance framework
3 Conclusion
References
Chapter 6 Smart contracts for promoting trust in blockchain-based e-commerce
Abstract
1 Introduction
2 The model environment
2.1 Environment
2.2 Equilibrium of one-shot game
2.3 Inferior outcome of two-stage transaction game
3 Theory: Infinitely repeated transaction game
3.1 Preliminaries of infinitely repeated transaction game
3.2 Achievable trust in equilibrium by trigger strategy
4 Real-life scenarios: Finitely repeated transaction game
4.1 Cooperative equilibrium playing tit-for-tat strategy
4.2 Proof of cooperation equilibrium by tit-for-tat strategy
4.3 General cases of player's payoffs
5 Conclusion
References
Chapter 7 Blockchain-enabled decentralized network trust management
Abstract
1 Introduction
1.1 Research problem
1.2 Research content
2 Related work
2.1 Data collection
2.2 Decentralized network trust evaluation
2.3 Trust management in integrated heterogeneous networks
2.4 Blockchain technologies
3 Research schemes
3.1 A blockchain-based security data collection system
3.2 A privacy-preserving decentralized network trust evaluation framework
3.3 Pseudonym and trust value management for integrated networks
4 Conclusion and outlook
4.1 Conclusion
4.2 Outlook
References
Chapter 8 Transforming global economies: The profound impact of digitalization
Abstract
1 Introduction
2 Literature review
2.1 Consumer mindset
2.2 Reliable and affordable technology
2.3 Expansion of global economies
2.4 Unexpected factors
2.5 Summary of key findings
2.6 Research gaps
3 Discussion
3.1 Reasons for financial fraud and scams
3.2 Analysis of fraud and scam models
3.3 Singapore and India: Economic and cultural synergies
3.4 The opportunity: UPI and PayNow integration
4 Conclusion
4.1 Future work
4.2 Final thought
Declaration of AI and AI-assisted technologies in the writing process
References
Chapter 9 Different regulatory treatment of generative AI blockchain, cryptocurrency, and NFT
Abstract
1 Introduction
2 Human rights dimensions to regulating AI
3 Literature review
4 AI in the financial services market
5 Doctrinal issues with regulating AI
6 Regulatory approaches in different regions
6.1 United States
6.2 European Union
6.3 Asia Pacific
6.4 International Organizations
7 Other issues with generative AI
8 Other principles for regulating generative AI
9 Establishing a global AI body
10 Ethical considerations and human rights in AI regulation
11 Sustainability in AI regulation
12 Access to justice through AI regulation
13 Conclusion
References
Further Reading
Chapter 10 Cryptocourts for on-chain disputes: The use of soft law mechanisms to promote evidential literacy in game-theoretic dispute resolution
Abstract
1 Using “if-then” laws to regulate a fast-paced cryptocurrency landscape
1.1 A lawyer's supporting role in on-chain dispute resolution
1.2 Structure of chapter
2 Part I: “If/then” laws concerning cryptocurrencies at the national level
3 Part II: Some features of game-theoretic dispute resolution by cryptocourts
3.1 Purpose
3.2 Decentralized dispute resolution platforms: Their value proposition compared with litigation
3.3 Game theoretical dispute resolution on the blockchain
3.4 Legal criticisms: Financial incentives to jurors and lack of transparency
4 Part III: Why evidential literacy matters in decentralized dispute resolution
4.1 Basic evidential questions in resolving disputes
4.2 What facts can be proved?
4.3 How does a juror decide to believe the facts (probative weight)?
4.4 Example one: Omen prediction market dispute on kleros
4.5 Probative weight
4.6 What facts can be proved (relevance)?
4.7 Example two: Dispute resolution over the authenticity and fitness of token listing by Baer chain
4.8 What facts can be proved (relevance)?
4.9 Probative weight
5 Part IV: Soft law mechanisms by decentralized dispute resolution providers to promote evidential literacy
5.1 Soft law provenance in public international law—A chequered past
5.2 Developing soft law mechanisms for decentralized dispute resolution
5.3 Proposals for soft law mechanisms
6 Conclusion
References
Section 2: AI
Chapter 11 Fusion of artificial intelligence and blockchain
Abstract
1 Introduction
2 Fundamentals of AI and blockchain
2.1 Artificial intelligence (AI)
2.2 Blockchain
3 AI and blockchain synergy
4 Challenges and considerations
5 Existing use cases
5.1 Healthcare: BurstIQ
5.2 Decentralized AI marketplaces: SingularityNET and Fetch.Ai
5.3 NFT and metaverse intelligence_ Matrix AI and Althea AI
5.4 Supply chain optimization: Bext360
6 Conclusion
References
Chapter 12 Financial innovation through AI and blockchain: Opportunities and challenges
Abstract
1 Chapter overview
2 AI in finance
2.1 Detailed exploration of current AI applications in finance
2.2 Comprehensive advantages of AI in finance
2.3 Challenges facing AI in finance
3 Blockchain in finance
3.1 Basics of blockchain technology in finance
3.2 Advantages of blockchain for financial transactions and record-keeping
3.3 Potential challenges and mitigation strategies in blockchain for financial applications
4 Integrating AI and blockchain in finance
4.2 Enhanced data analysis and privacy through AI and blockchain collaboration
4.3 Improving customer service with AI and blockchain synergy
5 Io.net
5.1 Io.net is the world's largest GPU DePIN
5.2 Advantages of io.net
5.3 How to add device to the network and start mining
6 Openfabric
6.1 Openfabric lets anyone create, share, and monetize AI services at scale
7 MathWallet GPTs AI customer service
7.1 Advantages
7.2 Training steps
7.3 Limitations
8 Pints AI
8.1 Introduction of the company
8.2 Key problems that Pints.ai solves
8.3 The product
8.4 Application in financial sectors
9 Future prospects
9.1 Emerging trends in AI and blockchain integration
9.2 Potential impact on the global financial landscape
9.3 The significance of open source for public goods
9.4 Challenges in public goods fundraising
9.5 Solving public goods fundraising problems with blockchain
10 Conclusion
Web links
Chapter 13 Transformation of digital banking back-office operations using AI
Abstract
1 Introduction
2 Model digital bank
2.1 Three tiers of digital banks
3 Related work
3.1 Use of AI in digital banking
3.2 Summary of related work
4 Case studies
4.1 Case study 1
4.2 Case study 2
4.3 Case study 3
4.4 Case study 4
4.5 Summary of case studies
5 Back-office operations suitable for automation using AI
5.1 Retail banking operations
5.2 Corporate banking operations
5.3 Investment banking operations
5.4 Common functions
6 Common data pipeline
6.1 Data sources
6.2 Data preprocessing and feature engineering
6.3 Common data lake for AI model development and deployment
6.4 Real-time business events that trigger AI-enabled automated workflows
7 Discussion
7.1 Management implications
7.2 Maturity model for AI adoption in bank back-office operations
8 Summary
9 Declaration of AI and AI-assisted technologies in the writing process
References
Chapter 14 AI and Web3 for sustainable digital economy
Abstract
1 Introduction
2 The development of digital economy powered by big data and AI
2.1 The ubiquity of big data
2.2 The boom of AI
3 The challenges of today's digital economy
3.1 Challenges for data
3.2 Challenges for AI
4 The history and rise of Web3
4.1 The evolution of Web3
4.2 The composition of Web3
4.3 Challenges for Web3
5 Why the marriage between AI and Web3
5.1 Collaborative intelligence and the future of computing
5.2 The need for trust and incentives in collaboration
5.3 Defining Web3: A framework for open, decentralized collaboration
5.4 The two core pillars of Web3: Trust and incentive
5.5 Advances in key assetization technologies: Data auditing
6 Advances in key application context
6.1 Metaverse
6.2 AI for metaverse
6.3 Blockchain for metaverse
7 Conclusion
References
Chapter 15 Machine learning on blockchain
Abstract
1 Introduction
2 Blockchain concepts
2.1 Types of blockchains
2.2 Consensus mechanisms
3 Machine learning concepts
3.1 Machine learning categories
3.2 Training machine learning models
4 Federated and privacy-preserving machine learning
5 Blockchain-based machine learning approaches
6 Blockchain-based machine learning applications
6.1 Internet of things
6.2 Healthcare
6.3 Transportation
6.4 Finance
6.5 Education
7 Discussion
8 Conclusion
References
Chapter 16 Using vector embeddings to model macroeconomic regimes
Abstract
1 Introduction
1.1 Context
1.2 Objective
2 Related work
2.1 Macroeconomic regimes
2.2 Vector embeddings
3 Embedding using machine learning techniques
3.2 Embeddings using an auto-encoder
4 Research method
4.1 Data collection
4.2 Approach: Combining vector embedding with K-means clustering
4.3 Summary of approach
5 Results
6 Discussion
6.1 Limitations of this clustering analysis
6.2 Future work
7 Conclusion
Declaration of AI and AI-assisted technologies in the writing process
References
Chapter 17 Ethics and governance of generative AI
Abstract
1 AI guidelines and regulations
2 AI regulations
2.1 US
2.2 EU
2.3 China
2.4 Singapore
3 AI ethical guidelines: Professional bodies and corporates
3.1 Association of computing machinery (ACM)
3.2 Corporates
4 Summary of AI regulations and governance
4.1 Individual/organizational level
4.2 Societal
4.3 Operational
5 Ethics and governance of generative AI
6 Back to basics
7 Issues with generative AI output
7.1 Bias
7.2 Copyright
7.3 Data
7.4 Hallucinations
8 Building your own LLM
8.1 Meta's open-source LLMs
8.2 AWS: Tools and resources to build AI responsibly [35]
8.3 Constitutional AI
9 Conclusion
References
Section 3: Privacy
Chapter 18 The third wave of technological advancements in blockchain: Exploring the application of zero-knowledge proofs technology
Abstract
1 Introduction
2 Zero-knowledge proofs
2.1 Properties
2.2 Working mechanism
3 Web3 application of zero-knowledge proof
3.1 Privacy protection
3.2 Blockchain scalability
4 The main variants of zero-knowledge proof
4.1 zk-SNARK
4.2 zk-STARK
4.3 Comparison between zk-SNARK and zk-STARK
4.4 Recursive zk-SNARK
5 The future of zero-knowledge proofs technology application
References
Chapter 19 Blockchain marries privacy-enhancing computation
Abstract
1 Introduction
2 Terminology
2.1 Crypto-enabled computation
2.2 Trusted execution environments
2.3 Federated learning
3 Problem statement
3.1 Blockchain integrated with crypto-enabled computation
3.2 Blockchain integrated with TEEs-based computation
3.3 Blockchain integrated with FL
4 Incorporation
4.1 Blockchain-based designs for crypto-enabled computation
4.2 Securing blockchain with cryptographic tools
4.3 Enhancing blockchain with TEEs
4.4 Empowering FL using blockchain
4.5 Benefits of FL for blockchain
5 Applications and future directions
5.1 Secure infrastructures for Internet of things
5.2 Secure and decentralized machine learning
6 Conclusion
References
Chapter 20 Preserving privacy in blockchains: Challenges, solutions, and future directions
Abstract
1 Introduction
1.1 Importance of privacy in blockchain
1.2 Taxonomy of privacy
2 Privacy challenges in blockchain
2.1 Transparency vs privacy dilemma
2.2 Pseudonymity and deanonymization risks
2.3 Smart contract privacy
2.4 Regulatory compliance and privacy
2.5 Scalability and privacy trade-off
3 Privacy-preserving technologies
3.1 Mixing
3.2 Zero-knowledge proofs
3.3 Ring signatures
3.4 Homomorphic encryption
4 Regulatory and ethical considerations
4.1 Legal and regulatory challenges
4.2 Ethical considerations in preserving user privacy
5 Future directions and open challenges
5.1 Future research directions
5.2 Open challenges
6 Conclusion
Chapter 21 Security and privacy preservation of cryptocurrency
Abstract
Acknowledgments
1 Introduction
2 On-chain payment
2.1 Basic knowledge
2.2 Security and privacy issues and countermeasures
3 Off-chain payment
3.1 Basic knowledge
3.2 Security and privacy issues and countermeasures
4 Cross-chain payment
4.1 Basic knowledge
4.2 Security and privacy issues and countermeasures
5 Conclusion
References
Section 4: Greentech
Chapter 22 Application of blockchain and internet of things in ESG data platforms
Abstract
1 Introduction
2 Blockchain application in ESG
3 IoT application in ESG
4 ESG data platform
5 Project greenprint
6 Project Benja
7 Project Genesis
8 Discussion
9 Summary
References
Index

David Lee Kuo Chuen

David LEE Kuo Chuen is a Professor of Financial Technology and Blockchain at the Singapore University of Social Sciences (SUSS), an Adjunct Professor at the National University of Singapore (NUS), a Council Member of the British Blockchain Association, Vice President of the Economic Society of Singapore, and Editor-in-Chief or Deputy Editor-in-Chief of the Journal of Fintech and Annual Review of Fintech. He is also Chairman of the Global FinTech Institute (GFI), co-founder of the Singapore Blockchain Association, co-founder of the Blockchain Security Alliance, advisor to the Asian Development Bank, cryptocurrency advisor to the Asian Institute of Digital Finance (AIDF) of NUS, advisor to the SUSS Node for inclusive FinTech (NiFT), independent director of several technology companies in Singapore, angel investor in blockchain, WEB3, inclusive finance and AI innovation, senior advisor and Investment Committee member of Artichoke Capital which is backed by institutional and sovereign wealth fund limited partners.

Affiliations and expertise

School of Business, Singapore University of Social Sciences, Singapore

Robert H. Deng

Robert Deng is AXA Chair Professor of Cybersecurity, Director of the Secure Mobile Centre, and Deputy Dean for Faculty & Research, School of Computing and Information Systems, Singapore Management University (SMU). He received the Outstanding University Researcher Award from National University of Singapore, Lee Kuan Yew Fellowship for Research Excellence from SMU, and Asia-Pacific Information Security Leadership Achievements Community Service Star from International Information Systems Security Certification Consortium. He serves/served on the editorial boards of ACM Transactions on Privacy and Security, IEEE Security & Privacy, IEEE Transactions on Dependable and Secure Computing, IEEE Transactions on Information Forensics and Security, Journal of Computer Science and Technology, and Steering Committee Chair of the ACM Asia Conference on Computer and Communications Security. He is a Fellow of IEEE and Fellow of Academy of Engineering Singapore.

Affiliations and expertise

School of Information Systems, Singapore Management University, Singapore

Life Sciences

Physical Sciences & Engineering

Social Sciences & Humanities

Health