Exploring Blockchain Governance

Blockchain systems continue to attract significant interest from both practitioners and researchers. What is more, blockchain systems come in various types, such as cryptocurrencies or as inter-organizational systems in business networks. As an example of a cryptocurrency, Bitcoin, one of the most prominent blockchain systems to date and born at the time of a major financial crisis, spearheaded the promise of relying on code and computation instead of a central governing entity. Proponents would argue that Bitcoin stood the test of time, as Bitcoin continues to operate to date for over a decade. However, these proponents overlook the never-ending, heated debates “behind the scenes” caused by diverging goals of central actors, which led to numerous alternative systems (forks) of Bitcoin. To accommodate these actors’ interests in the pursuit of their common goal is a tightrope act, and this is where this dissertation commences: blockchain governance. Based on the empirical examples of various types and application domains of blockchain systems, it is the goal of this dissertation to 1) uncover governance patterns by showing, how blockchain systems are governed, 2) derive governance challenges faced or caused by blockchain systems, and, consequently, to 3) contribute to a better understanding to what blockchain governance is. This dissertation includes four parts, each of these covering different thematical areas: In the first part, this dissertation focuses on obtaining a better understanding of blockchain governance’s context of reference by studying blockchain systems from various application domains and system types, for example, led by inter-organizational networks, states, or an independent group of actors. The second part, then, focuses on a blockchain as an inter-organizational system called “cardossier”, a project I was involved in, and its governance as a frame of reference. Hereupon, for one, I report on learnings from my project involvement in the form of managerial guidelines, and, for two, I report on structural problems within cardossier, and problems caused by membership growth and how they can be resolved. The third part focuses on a wider study of blockchains as inter-organizational systems, where I summarize findings of an analysis of 19 blockchain consortia. The findings, for one, answer the question of why blockchain consortia adopt blockchain technology, and, for two, show internal and external challenges these systems faced to derive managerial recommendations. The fourth and last part studies blockchain governance’s evolution and contributes an analysis of blockchain’s governance features and its contrast to established modes of governance. These four parts, altogether, have scientific value as they increase our understanding on blockchain governance. Consequently, this dissertation contributes to the body of knowledge on modes of governance, distributed system governance, and blockchain governance in general. I do so, by grounding the concept of blockchain governance in empirical detail, showing how these systems are governed on various application domains and system types, and by studying empirical challenges faced or caused by these systems. This approach is relevant and necessary, as blockchain systems in general, but particularly outside of cryptocurrencies, mostly still are in pursuit of a sustainable blockchain governance. As blockchains can be expected to continue to mature, the upcoming years offer very fruitful ground for empirical research along the empirical insights and theoretical lines shown in this dissertation

Buyers of ‘lemons’: How can a blockchain platform address buyers’ needs in the market for ‘lemons’?

The second-hand automotive market is one with the least trust from consumers. Customers on the second-hand car market suffer from such problems as the car being in worse condition than initially indicated, accident damage that is not disclosed, fraud, etc. Akerlof, described the market for used cars as an example of the problem of information asymmetries and resulting quality uncertainty. In order to cope with quality uncertainties, used car buyers actively engage themselves in information seeking. Blockchain technology promises to automatize the tracking of cars through their lifecycles and provide reliable information at any point in time it is needed. In our study, we investigate the problems car buyers face during information seeking and propose requirements for the design of a blockchain-based system to address these

Blockchain Technology as a Means for Brand Trust Repair – Empirical Evidence from a Digital Transgression

Though much discussion in the realm of blockchain revolves around the concept of trust, research examining blockchain technology as a means for brand trust repair is still at an initial stage. This study conducts an experiment that analyzes blockchain technology as a substantive response to a data breach within a global business-to-consumer information systems application. Thereby, the present study expands trust repair theories to the context of blockchain and branding. Research results indicate that the use of blockchain technology as a reaction to a digital transgression may be able to reinstate brand trust, having a superior impact compared to an approach that uses a centrally managed information systems platform to restore brand trust. Overall, study results suggest that the use of blockchain technology can be an effective component of brand trust repair strategies in the digital space

Promoting less complex and more honest price negotiations in the online used car market with authenticated data

Online peer-to-peer (P2P) sales of used and or high-value goods are gaining more and more relevance today. However, since potential buyers cannot physically examine product quality during online sales, information asymmetries and consequently uncertainty and mistrust that already exist in offline sales are exacerbated in online markets. Authenticated data platforms have been proposed to solve these problems by providing authenticated data about the negotiation object, integrating it into text-based channels secured by IT. Yet, we know little about the dynamics of online negotiations today and the impact of the introduction of authenticated data on online negotiation behaviors. We address this research gap based on two experimental studies along with the example of online used-car trade. We analyze users’ communicative and strategic actions in current P2P chat-based negotiations and examine how the introduction of authenticated data affects these behaviors using a conceptional model derived from literature. Our results show that authenticated data can promote less complex negotiation processes and more honest communication behavior between buyers and sellers. Further, the results indicate that chats with the availability of authenticated data can positively impact markets with information asymmetries. These insights provide valuable contributions for academics interested in the dynamics of online negotiations and the effects of authenticated data in text-based online negotiations. In addition, providers of trade platforms who aim to advance their P2P sales platforms benefit by achieving a competitive advantage and a higher number of customers

Mine, Yours, … Ours? Managing Stakeholder Conflicts in an Enterprise Blockchain Consortium

When major corporations build and manage own platforms, most of the conflicts are resolved internally. With the rise of blockchain systems, also blockchain-based platforms are increasingly tried out, which are governed in a decentralized fashion. But moving from hierarchical efficiency to a democratic inclusiveness, in which blockchain proponents believe, is difficult: the variety of included actors raise a variety of conflicts, when platform users become platform complementors or even owners. To manage these conflicts, it is necessary to analyze each actor in detail. This paper reflects on the developments within an ongoing enterprise blockchain consortium in a small European country in the automotive domain from a governance perspective. We portray the consortium’s stakeholder conflicts, propose solutions for these conflicts and relate them to literature on blockchain governance. Our findings contextualize several theoretical stances, emphasizing the importance of the organizational over the technological embedment in blockchain governance

Blockchain: A Business Model Innovation Analysis

The adoption of blockchain-based technologies by organisations can bring benefits in terms of firms' profitability, productivity and efficiency, making companies rethink their existing business models. However, as the technology is still developing and the research on the implications of the different types of blockchain networks (i.e. public, private, consortium) is scarce, their role in business model innovation requires closer attention. To address this gap, the paper provides a conceptual insight into the role of blockchain technology in companies with different value configurations by examining the technological conditions that can impact business models and probing the role of technology benefits in driving company value. The analysis contributes to the literature by discussing the business implications of innovative technologies and uncovering their positive and negative consequences for the value creation, delivery and capture activities. Such analysis sheds light on the functions of blockchains that have a differentiating impact on business processes. Also, the paper puts forward managerial implications by discussing the paths of business model innovation using blockchain technologies

Transferring Trust, Risk and Security on Users’ Intention to Trade Cryptocurrency, Using PayPal as an Example

As one of the largest digital payment providers, PayPal has integrated the possibility to use cryptocurrency as a payment method and to buy cryptocurrency via the platform. Building on the considerations of trust-transfer theory and extending this model adding the trust-related attributes perceived risk and security, this paper therefore examines to what extent these attributes can be transferred from the payment service provider PayPal to cryptocurrency. In a second step, based on this transfer of attributes, the intention to use cryptocurrencies via PayPal will be examined, as well as the general intention to use cryptocurrencies. By conducting an online survey (N=398), a significant effect of the transfer of the examined attributes from PayPal to cryptocurrency if handled by PayPal was found. Furthermore, in the second step of the data analysis, significant effects for the attributes of cryptocurrency if handled by PayPal on the intention to use were found

Cyber Ethics 4.0 : Serving Humanity with Values

Cyber space influences all sectors of life and society: Artificial Intelligence, Robots, Blockchain, Self-Driving Cars and Autonomous Weapons, Cyberbullying, telemedicine and cyber health, new methods in food production, destruction and conservation of the environment, Big Data as a new religion, the role of education and citizens’ rights, the need for legal regulations and international conventions. The 25 articles in this book cover the wide range of hot topics. Authors from many countries and positions of international (UN) organisations look for solutions from an ethical perspective. Cyber Ethics aims to provide orientation on what is right and wrong, good and bad, related to the cyber space. The authors apply and modify fundamental values and virtues to specific, new challenges arising from cyber technology and cyber society. The book serves as reading material for teachers, students, policy makers, politicians, businesses, hospitals, NGOs and religious organisations alike. It is an invitation for dialogue, debate and solution

How to build digital trust? : Swiss Digital Trust Whitepaper

Paper available for download from:https://digitaltrust-label.swiss/wp-content/uploads/2021/11/Digital-Trust-final-forpublication.pdfReprinted with permission of the publisher.Trust is a key ethical value and virtue in all human interactions. Trust is also a key requirement and a key challenge in the digital world. In September 2019, the first Swiss Global Digital Summit took place in Geneva, Switzerland, to provide a platform to promote in-depth discus-sions on “Ethics and Fairness in the Age of Digital Transformation” and aiming at building digital trust in the digital world. As a result, the Swiss Digital Initiative (SDI) was launched at the World Economic Forum in Davos in 2020. It is supported by over two dozen high-ranking personalities and institutions from academic, private and pub-lic sector. In 2021, the Swiss “Digital Trust Label” was launched. The following whitepaper analyses the needs of building trust in the digital world. The editors/Christoph Stückelberger

Designing Data Spaces

This open access book provides a comprehensive view on data ecosystems and platform economics from methodical and technological foundations up to reports from practical implementations and applications in various industries. To this end, the book is structured in four parts: Part I “Foundations and Contexts” provides a general overview about building, running, and governing data spaces and an introduction to the IDS and GAIA-X projects. Part II “Data Space Technologies” subsequently details various implementation aspects of IDS and GAIA-X, including eg data usage control, the usage of blockchain technologies, or semantic data integration and interoperability. Next, Part III describes various “Use Cases and Data Ecosystems” from various application areas such as agriculture, healthcare, industry, energy, and mobility. Part IV eventually offers an overview of several “Solutions and Applications”, eg including products and experiences from companies like Google, SAP, Huawei, T-Systems, Innopay and many more. Overall, the book provides professionals in industry with an encompassing overview of the technological and economic aspects of data spaces, based on the International Data Spaces and Gaia-X initiatives. It presents implementations and business cases and gives an outlook to future developments. In doing so, it aims at proliferating the vision of a social data market economy based on data spaces which embrace trust and data sovereignty