Blockchain technology and crypto-assets market analysis: vulnerabilities and risk assessment
Résumé
After ten years of continuous development and innovation, the cryptomarket and the Blockchain technology are still very much challenged and far from the mainstream adoption. We thus propose a risk assessment, as well as a market analysis of the Blockchain technology and the cryptomarket. This study is conceived as a two-level analysis. We first start with the micro-level analysis by performing a detailed risk assessment. Here, we take into consideration technological issues, such as such as consensus, network, cryptographic primitives, quantum and smart contract attacks, together with financial concerns such as market, information, liquidity, supply, reputation and environmental risks. Moreover, we propose ways to determine the probability that technological vulnerabilities can trigger financial risk. Here, we tackle concepts such as financial behavior, responsible investment and Blockchain literacy, as possible tools for assessing risk. Then, we complete this study with a macro-level analysis, which consists of the crypto-market appraisal performed with the Porter's five forces model. This market analysis is performed with respect to its stakeholders, such as the business process managers, investors, regulators, firms, developers, miners, hackers, exchange and trading platforms, etc. The results are relative to: 1. an identified continuity between the technological risks and financial ones; 2. a way to determine the likelihood of triggering financial risks through technical vulnerabilities; 3. a long-term profitability of the stakeholders’ strategy / position within the market.
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