Decision Framework for Improved Distributed Ledger Technology Utilization

Distributed ledger technology (DLT) has been salient in research and practice for over a decade, with substantial investments in numerous areas. Still, the absence of a rapid, industry-wide success fuels skepticism and numerous decision frameworks emerged focusing on how to scaffold DLT utilization. However, a consideration of needs, added value, and integrative design of DLT-based systems remains overlooked. By analyzing existing frameworks and DLT Proof-of-Concepts, we provide a research-in-progress decision framework for making evidence-based decisions on whether to use DLT and how to design a technology bundle for specific cases. Our main contribution centers on the focus on rapid collaborative prototyping. For applicability and validation, we implement the framework in an online questionnaire-like tool that generates a detailed report as a basis for an informed decision. While beneficial for academia and practice, our framework draws clear directions for future research on complementary tools, enhanced recommendations and the design of feasible DLT solutions for real world challenges

Dynamic Consensus: Increasing Blockchain Adaptability to Enterprise Applications

Decentralization powered by blockchain is validated for its capability to build trust like no other computational system before. The evolution of blockchain models has opened new use-cases that are becoming operational in many industry fields such as: energy, healthcare, banking, cross-border trade, aerospace, supply chain, and others. The core component of a decentralized architecture is the consensus algorithm - the set of rules that ensures an automated and fair agreement between the actors in the same network. Classic consensus algorithms are tailored to solve specific problems, but in an open ecosystem, each business case is unique and needs a certain level of customization. This paper introduces a new meta-consensus model called Dynamic Consensus, an architecture extension that allows multiple, complementary, consensus algorithms to run on the same platform. While classic consensus mechanisms are more appropriate for public or private systems (narrow set of rules), a dynamic approach would fit better for federated business consortiums (more rules and higher need for adaptability). The model is illustrated and analyzed as an ongoing experimental feature that can be added to enterprise blockchains designed to operate in cross-domain environments

Using Distributed Ledger Technologies to Support Complex Supply Chains

The concept of blockchain, as part of distributed ledger technologies, has gained a lot of interest recently, especially in cryptocurrencies. With the addition of other technical capabilities, e.g., smart contracts and oracles, this interest has spread to other areas as well and affects a wide variety of business processes such as supply chain processes. However, in research, the wide variety of processes finds inadequate consideration to date. In this research paper, we provide an overview of the state of the art of distributed ledger technologies in supply chains and point out future research topics. Therefore, we conducted a structured literature review, systematized potential application areas in supply chain processes, and showed that research gaps exist. To address the research gaps, we derived open research questions, whereby conducting design studies to deal with the practical problems in the application areas plays a central role

Design and Implementation of a Distributed Ledger Technology Platform to Support Customs Processes within Supply Chains

In international trade, customs clearance fulfills complex and country-specific tasks in the execution of supply chain processes. Importers and exporters have to integrate customs authorities into the information flow, as customs authorities require information, e.g., on the bill of lading and the commercial invoice apart from the customs declaration. In addition, involved sub-service providers increase the problem of information asymmetry and the required coordination effort. Practice and research consider Distributed Ledger Technology (DLT) as a potential solution since this technology maintains a mutually agreed and secure database of value-creation partners. However, research has hardly investigated the design of such DLT systems. Therefore, we present a requirements catalogue, a concept, and a prototype of a DLT platform to address the outlined problem of information asymmetry, especially with a focus on customs processes

Blockchain Technology in the Fashion Industry: Virtual Propinquity to Business

The concept of fashion has been coupled with technology, where technology has become the protagonist. The transparency between an organization and a customer works as a catalyst, and the customer has taken a more mainstream role. With blockchain technology, companies can reconnect with customers and customers can track the journey of a product from its raw materials to the finished goods. The primary focus of the study is on services and data collected from the following sectors, namely fashion, apparel, and online platforms. The author's main goals are (1) to illustrate an overview of how big data is transforming the service industry, especially the fashion and design sector, and (2) to present various mechanisms adopted in the service industry. The study aims to investigate a model that fits through EXT-TAM and uses additional attributes of blockchain technology with a special reference to fashion apparel. The findings of this study depict a model, where PEOU, PU, and attitude are the major constructs and present a win-win scenario for both the customer and the organization

Applications of Blockchain for the Governance of Integrated Project Delivery: A Crypto Commons Approach

This paper outlines why and how blockchain can digitally support and evolve the governance of collaborative project deliveries, such as integrated project deliveries (IPDs), to provide the foundation for novel and disruptive forms of organizational collaboration in the construction industry. Previous work has conceptualized IPDs as a common pool resource (CPR) scenario, where shared resources are collectively governed. Through the use of blockchain and smart contracts for trustworthy peer-to-peer transactions and execution logic, Ostrom's design principles can be digitally encoded to scale CPR scenarios. Building on the identified connections, the paper 1) synthesizes fourteen blockchain-based mechanisms to govern CPRs, 2) identifies twenty-two applications of these mechanisms to govern IPDs, and 3) introduces a conceptualization of the above relationships towards a holistic understanding of collaborative project deliveries on the crypto commons for novel collective organization of construction project delivery between both humans and machines

An Explorative Dive into Decision Rights and Governance of Blockchain: A Literature Review and Empirical Study

Background: Blockchain technology and accompanying programmed protocols (smart contracts) offer disruptive opportunities for businesses, public institutions, society, and its citizens. However, blockchain is a relatively young research area: the number of publications available regarding blockchain did not begin to rise significantly until 2012, and certain fields of the blockchain domain remain to be explored. A similar situation exists with research into the governance of blockchain solutions focusing on decision rights: the limited number of theoretical and empirical contributions hinders the proper adoption of governance mechanisms in practice. Method: A mixed-method approach was conducted in which 1) a structured literature review, 2) semi-structured interviews, and 3) a focus group discussion were utilized to determine the current situation regarding decision rights in the context of blockchain governance. Results: The structured literature review resulted in a total of 23 relevant contributions. Those contributions were consolidated to serve as input for a total of twelve semi-structured interviews, and for a focus group session with five participants, who were not part of the interviewee pool. Using that approach, an overview of the concepts, relationships and mechanisms pertinent to decision rights was composed. Conclusions: Considered together, the results show that decision rights are often overlooked at the start of a blockchain project, where technical considerations are dominant in the discussion with stakeholders. However, research also points out that the longer it takes to address decision rights in a blockchain consortium, the more complex and costly it becomes to introduce governance mechanisms at a later stage. Another important conclusion is that consensus is currently lacking as to what constitutes blockchain governance and what part decision rights play in governance processes, in both theoretical and practical terms

Finance 4.0 - Towards a Socio-Ecological Finance System

This Open Access book outlines ideas for a novel, scalable and, above all, sustainable financial system. We all know that today’s global markets are unsustainable and global governance is not effective enough. Given this situation, could one boost smart human coordination, sustainability and resilience by tweaking society at its core: the monetary system? A Computational Social Science team at ETH Zürich has indeed worked on a concept and little demonstrator for a new financial system, called “Finance 4.0” or just “FIN4”, which combines blockchain technology with the Internet of Things (“IoT”). What if communities could reward sustainable actions by issuing their own money (“tokens”)? Would people behave differently, when various externalities became visible and were actionable through cryptographic tokens? Could a novel, participatory, multi-dimensional financial system be created? Could it be run by the people for the people and lead to more societal resilience than today’s financial system (which is effectively one-dimensional due to its almost frictionless exchange)? How could one manage such a system in an ethical and democratic way? This book presents some early attempts in a nascent field, but provides a fresh view on what cryptoeconomic systems could do for us, for a circular economy, and for scalable, sustainable action