Evaluating complexity and digitizability of regulations and contracts for a blockchain application design

Abstract

Blockchain technology becomes the key solution to provide trust and security without any need for a central supervisory authority to validate the transactions. By now, it plays a key role in the digital transformation of several processes and industries with varying application use cases. To promote the wide adoption of blockchain technology we need mechanisms to identify the digitizability level of the given regulations to smart contracts and mechanisms to specify which blockchain technology is best suitable for the given regulations. In this work, we propose a modeling approach that supports the automated analysis of human-readable regulation representations by suggesting how much percentage of regulation is digitizable and the suitable blockchain environment to design the application. We identify smart contract components that correspond to real-world entities and its pertaining clauses and its digitizability property. With selected examples, we explore this capability and discuss our future research directions on smart contract generation according to the recommended environment.