Towards Secure, Decentralized, and Automatic Audits With Blockchain

Organizations are testing the potential of blockchain technology in different areas, bringing implications to record-keeping and the associated business processes, namely audits. Permissioned, private blockchain frameworks can contribute to the processes behind audits by (i) alleviating auditor’s work, (ii) hindering fraud and collusion between organizations and auditors, (iii) promote synergies between organizations and their stakeholders, and (iv) protecting access to sensitive information. This paper studies the use of blockchain technology as an enhancer of secure, distributed, and more automatized audits. The proposed solution uses a permissioned, consortium, blockchain to store audit logs. The blockchain is then leveraged to perform distributed and automatic audits over the recorded logs, aiming to reduce costs associated with audits. In particular, the solution is based on a 4-layer architecture: data acquisition, data transfer, data audit, and data analysis & storage layers. The evaluation shows that the proposed solution is secure and can save and analyse up to around 30 audit log entries per second

Data trust framework using blockchain and smart contracts

Lack of trust is the main barrier preventing more widespread data sharing. The lack of transparent and reliable infrastructure for data sharing prevents many data owners from sharing their data. Data trust is a paradigm that facilitates data sharing by forcing data controllers to be transparent about the process of sharing and reusing data. Blockchain technology has the potential to present the essential properties for creating a practical and secure data trust framework by transforming current auditing practices and automatic enforcement of smart contracts logic without relying on intermediaries to establish trust. Blockchain holds an enormous potential to remove the barriers of traditional centralized applications and propose a distributed and transparent administration by employing the involved parties to maintain consensus on the ledger. Furthermore, smart contracts are a programmable component that provides blockchain with more flexible and powerful capabilities. Recent advances in blockchain platforms toward smart contracts' development have revealed the possibility of implementing blockchain-based applications in various domains, such as health care, supply chain and digital identity. This dissertation investigates the blockchain's potential to present a framework for data trust. It starts with a comprehensive study of smart contracts as the main component of blockchain for developing decentralized data trust. Interrelated, three decentralized applications that address data sharing and access control problems in various fields, including healthcare data sharing, business process, and physical access control system, have been developed and examined. In addition, a general-purpose application based on an attribute-based access control model is proposed that can provide trusted auditability required for data sharing and access control systems and, ultimately, a data trust framework. Besides auditing, the system presents a transparency level that both access requesters (data users) and resource owners (data controllers) can benefit from. The proposed solutions have been validated through a use case of independent digital libraries. It also provides a detailed performance analysis of the system implementation. The performance results have been compared based on different consensus mechanisms and databases, indicating the system's high throughput and low latency. Finally, this dissertation presents an end-to-end data trust framework based on blockchain technology. The proposed framework promotes data trustworthiness by assessing input datasets, effectively managing access control, and presenting data provenance and activity monitoring. A trust assessment model that examines the trustworthiness of input data sets and calculates the trust value is presented. The number of transaction validators is defined adaptively with the trust value. This research provides solutions for both data owners and data users’ by ensuring the trustworthiness and quality of the data at origin and transparent and secure usage of the data at the end. A comprehensive experimental study indicates the presented system effectively handles a large number of transactions with low latency

Blockchain Value Creation Logics and Financial Returns

With its complexities and portfolio-nature, the advent of blockchain technology presents several use cases to stakeholders for business value appropriation and financial gains. This 3-essay dissertation focuses on three exemplars and research approaches to understanding the value creation logics of blockchain technology for financial gains. The first essay is a conceptual piece that explores five main affordances of blockchain technology and how these can be actualized and assimilated for business value. Based on the analysis of literature findings, an Affordance-Experimentation-Actualization-Assimilation (AEAA) model is proposed. The model suggests five affordance-to-assimilation value chains and eight value interdependencies that firms can leverage to optimize their value creation and capture during blockchain technology implementation. The second essay empirically examines the financial returns of public firms\u27 blockchain adoption investments at the level of the three main blockchain archetypes (private-permissioned, public-permissioned and permissionless. Drawing upon Fichman\u27s model of the option value of innovative IT platform investments, the study examines business value creation through firm blockchain strategy (i.e., archetype instances, decentralization, and complementarity), learning (i.e., blockchain patents and event participation), and bandwagon effects using quarterly data of firm archetype investments from 2015 to 2020. The study\u27s propensity score matching utilization and fixed-effects modeling provide objective quantification of how blockchain adoption leads to increases in firm value (performance measured by Tobin\u27s q) at the archetype level (permissionless, public permissioned, and private permissioned). Surprisingly, a more decentralized archetype and a second different archetype implementation are associated with a lower Tobin\u27s q. In addition, IT-option proxy parameters such as blockchain patent originality, participation in blockchain events, and network externality positively impact firm performance, whereas the effect of blockchain patents is negative. As the foremost and more established use case of blockchain technology whose business value is accessed in either of the five affordances and exemplifies a permissionless archetype for financial gains, bitcoin cryptocurrency behavior is studied through the lens of opinion leaders on Twitter. The third essay this relationship understands the hourly price returns and volatility shocks that sentiments from opinion leaders generate and vice-versa. With a dynamic opinion leader identification strategy, lexicon and rule-based sentiment analytics, I extract sentiments of the top ten per cent bitcoin opinion leaders\u27 tweets. Controlling for various economic indices and contextual factors, the study estimates a vector autoregression model (VAR) and finds that finds that Bitcoin return granger cause Polarity but the influence of sentiment subjectivity is marginal and only stronger on bitcoin price volatility. Several key implications for blockchain practitioners and financial stakeholders and suggestions for future research are discussed