Managing and Tracking Physical Assets in University using Blockchain Proof-of-Authority: Work in Progress

Abstract

In Indonesian higher education institutions, traditional methods of managing physical assets, like the semi-digital system, may lead to problems with efficiency, data integrity, and transparency. This study addresses these issues by designing, developing, and evaluating a Proof-of-Concept (PoC) for a decentralized asset management system that uses a private blockchain and a Proof-of-Authority (PoA) consensus mechanism. Using the Design Science Research Methodology (DSRM), a prototype was developed to improve the processes of documenting, monitoring, maintaining, and disposing of assets using smart contracts. Functional testing and User Acceptance Testing (UAT) confirmed the system successfully manages asset administration in an integrated manner that meets user needs. A critical performance test showed that the PoA consensus reached transaction finality faster (8.588 seconds) and at a far lower cost (<$0.01) than a Proof-of-Stake (PoS) testnet (13.548 seconds and ~$1.11, respectively). The findings conclude that the PoA-based blockchain is a more secure, transparent, and efficient solution, making it highly optimal for permissioned systems of higher education asset administration and confirming its adaptability for the digitalization needs of educational institutions.