Enhancing Cyber-Physical-Social Systems through Decentralized Governance and Blockchain-based Digital Twins

Abstract

Cyber-Physical-Social Systems (CPSS), as emerging paradigms, are evolving to address the growing need for intelligent, adaptive, and transparent decision-making in complex environments such as smart cities and industrial systems. However, the advancements enabled by Digital Twins (DTs), centralized governance models, and opaque analytics limit scalability and resilience. In this study, we propose a decentralized governance framework that integrates Decentralized Autonomous Organizations (DAOs) and blockchain-based predictive analytics to enhance trust, interoperability, and ethical decision-making for CPSS. The proposed framework utilizes immutable ledgers, automated smart contracts, and community-driven governance to improve real-time collaboration, thereby ensuring system resilience and facilitating adaptive optimization. The remarkable innovation of the CPSS framework lies in combining digital tokens (DTs) within a blockchain application. We believe that our approach provides a scalable mechanism for autonomous decision-making and secure data sharing across multi-stakeholder ecosystems. In this regard, using theoretical analysis and comparative evaluations, we have demonstrated how our framework mitigates conventional challenges in CPSS governance, including security vulnerabilities, algorithmic fairness, and data integrity. Moreover, this research makes a significant contribution to the advancement of decentralized digital twin (DT) infrastructures, paving the way for more robust, ethically aligned, and resilient cyber-physical systems.