Abstract Blockchain technology and its applications have recently received the attention of practitioners and academics. Visualizing the full impact these technologies will have on the world is challenging since their adoption is still in the early stages. This chapter explores how blockchain can disrupt the general business and financial world. Blockchain offers information transparency, live data synchronization, and immutable records that prevent fraud. Digital contracts and digital asset management may heavily depend on the development of blockchain and the adoption of smart contracts. Smart contracts can execute financial transactions automatically and enforce all parties' obligations without needing an intermediary and its cost. They can increase speed and simplify processes, reducing licensing ticketing costs and overhead charges. Blockchain also offers technology adoption solutions, like fair payment, cloud storage, smart contracts for financial assets, and international transactions with bilateral double taxation. It has further facilitated the creation of decentralized finance.
Purpose There is a knowledge gap regarding the determinants of open innovation processes and outcomes in a joint value creation context, as well as what role artificial intelligence (AI) and data management play in facilitating open innovation processes. One strategy to better understand joint value creation through open innovation, supported by AI and data management, is to conduct studies on the digital business ecosystem (DBE). The purpose of this paper is to improve our current knowledge of this urgent issue in contemporary management through the lens of an ecosystem-based theory by conducting an empirical study on two DBEs (called ecosystem micro-communities (EMCs)), developed by Haier, as well as multiple literature reviews on the key concepts âHaier EMCâ and âdigital business ecosystemâ. Design/methodology/approach By building on multiple literature reviews and empirical data from a multi-year and ongoing research program driven by Haier, this study examines Haierâs EMC model for AI-driven DBEs. Secondary data were collected through iterative literature reviews on DBEs, the EMC concept and the two selected EMC cases. The empirical data were collected through a qualitative study of two Haier EMCs in China. Findings Haier's ecosystem micro-community concept represents a radical shift towards a more flexible, responsive and innovative cross-industry organizational structure, offering valuable lessons for business leaders and scholars. Haierâs ecosystem micro-community model, part of their RenDanHeYi philosophy and here viewed as a DBE, is a pioneering management concept that not only redefines the management of the firm and the traditional corporate structure, but also the traditional view on innovation management, business strategy, human resource management and marketing (customer centricity). The concept has therefore an important and big impact on traditional management. For scholars, the gap in understanding innovation processes in open business ecosystems is addressed by the concept. However, the concept also opens new areas for academic research, particularly in innovation management, business strategy, human resource management and marketing. The concepts further encourage more interdisciplinary research. Research limitations/implications The DBE is a relatively new research area that will need more research. While the EMC model is promising as an effective version of a DBE, its effectiveness across different industries and organizational cultures needs to be explored further. Future research should investigate its applicability and impact in diverse business environments. To understand the EMCâs long-term impact, longitudinal studies are needed. These should focus on the sustained competitive advantages, potential market disruptions and the evolution of customer value propositions over time. Finally, considering increasing concerns about data privacy and security, future research should also explore how DBEs solve the issue of data protection and IP while promoting open innovation and value sharing. Practical implications For managers and practitioners, the EMC concept could inspire leaders to learn how to foster innovation by creating smaller, autonomous teams that can respond quickly to market changes in the form of a DBE. The concepts exemplify how value creation and capture could be enhanced for any company and even could be a new strategy in the companyâs digital transformation and repositioning into a more competitive, high-end player on the market. The concept also emphasizes employee empowerment and ownership, which can lead to higher job satisfaction and retention rates. The concept can further improve companiesâ adaptability and resilience by decentralizing decision-making. Finally, the micro-communities allow businesses to be more customer-centric, developing products and services that better meet specific customer needs. Social implications The social implications could be positive, as complex social problems commonly need an ecosystem approach to develop and deliver impactful solutions. In addition, Haierâs ecosystem micro-community model seems inherently scalable and culturally adaptable. Originality/value Haierâs EMC model is well-known in the research literature and is a novel approach to DBEs, which has been proven successful and replicable in different countries and industries. Providing insights from multiple literature reviews and two unique Haier EMC cases will contribute to a better understanding of highly effective data- and AI-driven business ecosystems, as well as of determinants of open innovation processes and outcomes in a joint value creation context, as well as what role AI and data management play in facilitating open innovation processes.
Mark RĂŒetschi, Carlo Campajola, Claudio J. Tessone
This paper creates a new taxonomy of Decentralized Finance (DeFi) protocols following the methodology specifically tailored to information systems set out by Nickerson et al. (2013). This taxonomy provides a tool to classify DeFi protocols, allowing for a structured comparison with traditional financial mechanisms in the present-day (as included in this paper), as well as providing a repeatable procedure in order to track development of the space in the future. Further, the clustering of classified protocols facilitates the rapid identification of similar protocols beyond the mere identification of functions. The dimensions and characteristics of the taxonomy are discussed, as well as qualitative observations concerning the current DeFi landscape. Comparisons with traditional financial mechanisms highlight not only instances of one-to-one replacement of centralized instruments with decentralized alternatives, but also new innovations and products better suited to DeFi environments. Risks and opportunities around these inventions are also discussed.
Mark C. Ballandies, Dino Carpentras, Evangelos Pournaras
Decentralized autonomous organizations (DAOs) have transformed organizational structures by shifting from traditional hierarchical control to decentralized approaches, leveraging blockchain and cryptoeconomics. Despite managing significant funds and building global networks, DAOs face challenges like declining participation, increasing centralization, and inabilities to adapt to changing environments, which stifle innovation. This paper explores DAOs as complex systems and applies complexity science to explain their inefficiencies. In particular, we discuss DAO challenges, their complex nature, and introduce the self-organization mechanisms of collective intelligence, digital democracy, and adaptation. By applying these mechanisms to refine DAO design and construction, a conceptual framework for assessing a DAOâs viability is created. This contribution lays the foundation for future research at the intersection of complexity science, digital democracy and DAOs.
Ronghua Xu, Jing Zhu, Yang Lei, Lu Yang · 5 authors
The financial landscape is undergoing a revolution with the Decentralized Finance (DeFi), poised to reshape business value creation. This study provides an overview of research progress in DeFi from both business and information systems perspectives. Employing a hybrid bibliographic approach and TCM framework, we aim to uncover collaboration trends, developmental characteristics, and knowledge structures. Through various network analyses, including co-occurrence networks and keyword networks, as a multidisciplinary field with a focus on leveraging emerging, DeFi can construct decentralised ecosystems for finance. Looking ahead, there is potential to further explore the advantages of DeFi in maximising value creation.
Pierluigi Martino, Tom Vanacker, Igor Filatotchev, Cristiano Bellavitis
Abstract Drawing on institutional and demand-side perspectives, we investigate performance implications of (de)centralized governance modes in platform-based new ventures, and the conditions under which (de)centralization generates more value. Using a sample of 1,431 Initial Coin Offerings (ICOs), a new source of entrepreneurial finance, we find that centralization of decision-making is positively associated with platformsâ market value. Further, we consider how platform characteristics affect this relationship, finding that both the presence of an experienced Chief Technology Officer (CTO) and project transparency negatively moderate the positive relationship between centralization and market value. Thus, decentralized platforms need leaders with technical experience and project transparency to generate more value. Overall, this study provides a better understanding of the boundary conditions that increase the value of (de)centralized governance.
Longjin Yu, Man Ji, Fazli Haleem, Yilong Gong · 6 authors
Small and medium-sized enterprises (SMEs) play a critical role in promoting the development of Chinaâs real economy and improving national productivity, but their financing still faces challenges. In recent years, supply chain finance (SCF) has become one of the most important solutions to SMEsâ financing difficulties. Promoting the digital and innovative development of SCF can better meet the financing needs of SMEs. This study is based on a case study of Zhejiang MYbank Co., Ltd. (MYbank) in Hangzhou, China, which is a representative institution of digital supply chain finance development in China and committed to realizing the digital innovation development of SCF. Based on MYbankâs financial index data from 2018 to 2022, the implementation effect of MYbankâs digital supply chain finance is quantitatively analyzed from the perspectives of SMEs and MYbank. The main findings are as follows.(1) In the practice of digital supply chain finance, MYbank implements the new concepts of SCF decentralization and full coverage of supply chain links while enhancing the sustainability of SCF. (2) For SMEs, MYbankâs digital supply chain finance development has led to an increase in the financing scale and financing availability of SMEs. (3) The analysis of MYbankâs comprehensive benefits shows that the digital innovation development of SCF effectively increased the overall economic value of the enterprise during the period of 2018â2022. Based on these findings, this study provides implications for commercial banks and other financial institutions to develop digital supply chain finance.
Hamza Salem, Hadi Salloum, Manuel Mazzara, Nursultan Askarbekuly · 6 authors
The rapid expansion of the non-fungible token (NFT) market has catalyzed new opportunities for artists, collectors, and investors, yet it has also unveiled critical challenges related to the storage and distribution of associated metadata. This paper examines the current landscape of NFT metadata storage, revealing a significant reliance on centralized platforms, which poses risks to the integrity, security, and decentralization of these digital assets. Through a detailed analysis of top-selling NFTs on the OpenSea marketplace, it was found that a substantial portion of metadata is hosted on centralized servers, making them susceptible to censorship, data breaches, and administrative alterations. Conversely, decentralized storage solutions, particularly the InterPlanetary File System (IPFS), were identified as a more secure and resilient alternative, offering enhanced transparency, resistance to tampering, and greater control for creators and collectors. This study advocates for the widespread adoption of decentralized storage architectures, incorporating digital signatures to verify ownership, as a means to preserve the value and trustworthiness of NFTs in an increasingly digital world. The findings underscore the necessity for NFT platforms to prioritize decentralized methodologies to ensure the long-term sustainability and integrity of the NFT
In response to the call for research on cryptocurrency consumer adoption behaviour, a targeted literature review (TLR) was undertaken. Different from previous literature reviews, this chapter introduces a conceptual framework for understanding cryptocurrency consumer behaviour, comprising four primary themes and eight key insights. Specifically, the TLR highlights pivotal factors driving cryptocurrency adoption (i.e. ownership), identifies problematic and non-problematic behaviours among cryptocurrency adopters, and considers potential individual and cryptocurrency-related moderating factors. Theoretical and practical implications are discussed, and future research questions are proposed based on these findings.
Cryptocurrenciesâ popularity is growing despite short-term fluctuations. Peer-reviewed research into trust in cryptocurrency payments started in 2014. While the model created then, is based on proven theories from psychology and supported by empirical research, a-lot has changed in the past 10 years. This research finds that the original model is still valid, but it is extended to capture the current situation better. A quantitative methodology is used to validate the updated model proposed. The results from the quantitative survey show that (1) personal innovativeness in technology and (2) finance, influence (3) disposition to trust. Disposition to trust influences six variables from the specific context of the payment. Three variables related to the cryptocurrency itself are (4) stability in the value, (5) transaction fees, and (6) reputation. Institutional trust is influenced by (7) regulation, and (8) payment intermediaries. The last contextual factor is (9) trust in the retailer. The six variables from the context influence (10) trust in the payment which, finally, influences (11) the likelihood of making the cryptocurrency payment.
The Merge changes Ethereum from Proof-of-Work (PoW) to the more secure and less energy-intensive Proof-of-Stake (PoS) mechanism. However, the existence of malicious valida tors still threatens the security of Ethereum, primarily through a discouragement attack. How can we redesign the incentive mech-anism in PoS Ethereum for a more secure blockchain? For this quest, we, for the first time, apply the cutting-edge reinforcement mechanism design method-an interdisciplinary approach at the intersection of reinforcement learning (RL) and mechanism design-to staking mechanism designs. We abstract a generalized staking mechanism as a game environment and implement an RL method for the blockchain as a mechanism designer to explore the optimal incentive design. Our reinforcement mechanism design outperforms the status quo in cultivating honest validators. Furthermore, we identify Advantage Actor-Critic (A2C) as the most efficient RL algorithm among the three alternatives, which intuitively performs better when the initial proportion of honest validator is larger. Our interdisciplinary approach of generalized abstraction could be adapted to analyze the incentive design in any PoS blockchain and beyond.
Bitcoin is a payment system that generates a decentralized digital currency without ensuring temporal constraints in its transactions; therefore, it is vulnerable to double-spending attacks. Karame has proposed a formalization for a successful double-spending attack based on meeting three requirements. This focuses on fast payment scenarios where the product is delivered immediately after the payment is announced in the mempool, without waiting for transaction confirmation. This scenario is key in Bitcoin to increase the probability of a successful double-spending attack. Different approaches have been proposed to mitigate these attacks by addressing one or more of Karameâs three requirements. These include the following: flooding every transaction without restrictions, introducing listeners/observers, avoiding isolation by blocking incoming connections, penalizing malicious users by revealing their identity, and using machine learning and bio-inspired techniques. However, to our knowledge, no proposal deterministically avoids double-spending attacks in fast payment scenarios. In this paper, we introduce DiFastBit: a distributed transaction differentiation scheme that shields Bitcoin from double-spending attacks in fast payment scenarios. To achieve this, we modeled Bitcoin from a distributed perspective of events and processes, reformulated Karameâs requirements based on Lamportâs happened-before relation (HBR), and introduced a new theorem that consolidates the reformulated requirements and establishes the necessary conditions for a successful attack on fast Bitcoin payments. Finally, we introduce the specifications for DiFastBit, formally prove its correctness, and analyze DiFastBitâs confirmation time.
Abstract Blockchain-based cryptocurrencies have garnered significant attention from academic and industry. However, systematic studies on cryptocurrency usage patterns and adoption across contexts are limited. Identifying factors and developing predictive models for cryptocurrency adoption remains challenging. This article conducts a systematic review with qualitative and quantitative (mixed) syntheses on the adoption of blockchain-based cryptocurrencies, adhering to PRISMA guidelines. From 579 initial articles, 124 were selected and classified into review-based, exploratory-based, and empirical-based categories. Exploratory articles examined global awareness and ownership of cryptocurrencies. Empirical articles were categorized into general, payment method, investment tool, transfer medium, and other contexts. The review reveals higher awareness and ownership of cryptocurrencies among young, educated males with proficient computer skills in both developed and developing nations. The Technology Acceptance Model (TAM) and its variants are the most frequently used in the surveyed articles. Key factors like Perceived Ease of Use (PEoU), Perceived Usefulness (PU), and Perceived Trust were extensively studied. Studies on payment methods mainly focused on the customer perspective, with limited attention to the service provider perspective. As an investment tool, factors like social influence, PU, financial literacy, facilitating conditions, and perceived risk were significant. For cryptocurrencies as a transfer medium, security and risk perceptions, performance and effort expectancy, and social influence were crucial. In other contexts, trialability, transparency, and cost efficiency drove adoption, with trust and usability being vital for cryptocurrency wallet usage. Additionally, the article proposes an integrative model combining TAM with technical, economic, personal, and environmental factors. The findings from this systematic review will guide future research in developing more comprehensive models for predicting the adopting of cryptocurrencies across various contexts.
Blockchain technologyâs scalability is a major challenge that hampers its adoption and utility, particularly in resource-constrained local communities. In this paper, we present TokenCards 1, a novel commit-chain tailored to local communities.
Ole Delzer, Richard Hobeck, Ingo Weber, Dominik Kaaser · 6 authors
Abstract The growing popularity of blockchains highlights the need to improve their scalability. While previous research has focused on scaling transaction processing, the scalability of transaction creation remains unexplored. This issue is particularly important for organizations needing to send large volumes of transactions quickly or continuously. Scaling transaction creation is challenging, especially for blockchain platforms like Ethereum, which require transactions to include a sequence number. This paper proposes four different methods to scale transaction creation. Our experimental evaluation assesses the scalability and latency of these methods, identifying two as feasible for scaling transaction creation. Additionally, we provide an in-depth theoretical analysis of these two methods.
Asli Derlek Kocabas, EyĂŒp Ăalık, Basak Cetinguc
In recent times, the usage of cryptocurrencies has become remarkably widespread in e-commerce applications. This study aims to explain the factors affecting cryptocurrencies by proposing an extended technology acceptance model (TAM) consisting of perceived ease of use, perceived usefulness, trust, social influence, social support, religious belief, and intention to use. A web-based survey was conducted to collect data from individuals who had never previously used cryptocurrencies and data were analyzed via employing partial least square structural equation modelling (PLS-SEM) with SmartPLS software. According to the results, the relationships based on early TAM were validated. Additionally, trust, social influence, and social support have direct effects on the intention to use. Contrary to expectations, religious belief has no influence on trust and intention to use. This study could draw the attention of researchers, developers, and marketers in cryptocurrency to understand the dynamics of potential customers. Findings of this study highlight the pressing need for policymakers in Turkiye to prioritize ease of use, perceived usefulness, and, most importantly, trust within the evolving landscape of cryptocurrency systems.
Koosha Esmaeilzadeh Khorasani, Sara Rouhani, Rui Pan, Vahid Pourheidari
Interoperability is a significant challenge in blockchain technology, hindering seamless data and service sharing across diverse blockchain networks. This study introduces Automated Gateways as a novel framework leveraging smart contracts to facilitate interoperability. Unlike existing solutions, which often require adopting new technologies or relying on external services, Automated Gateways framework is integrated directly with a blockchain's core infrastructure to enhance systems with built-in interoperability features. By implementing fine-grained access control mechanisms, smart contracts within this framework manage accessibility and authorization for cross-chain interactions and facilitate streamlining the selective sharing of services between blockchains. Our evaluation demonstrates the framework's capability to handle cross-chain interactions efficiently, significantly reduce operational complexities, and uphold transactional integrity and security across different blockchain networks. With its focus on user-friendliness, self-managed permissions, and independence from external platforms, this framework is designed to achieve broader adoption within the blockchain community.
Alexander GrĂŒnewald, Tan GĂŒrpinar, Carina Culotta, Alicia Guderian
Abstract Many enterprises are currently engaged in developing blockchain-based business models. Enterprise networks offer a variety of potential applications for blockchain solutions as they benefit from transparency and security as well as automation of handling data, material, and financial flows along their supply chains. Despite profound potentials, the indicated business models are still in their early stages and need further investigation. To provide an overview of existing blockchain-based business models in the context of enterprise networks, the underlying paper designs a multidimensional taxonomy and identifies several archetypes of blockchain-based businesses. For the taxonomy development, data from 101 blockchain start-ups serves as a basis for empirical validation. Using hierarchical clustering and the k-means method, seven archetypes that sharpen the understanding of how blockchain solutions affect business models in enterprise networks and enable new business models are derived. The proposed work results are intended to be applied in future research and practice to classify and assess the integration of blockchain solutions into existing business models and to support developing new ones that leverage emerging technological capabilities.
Purpose The Internet of Things (IoT) platform empowers the digital transformation of the manufacturing industry by providing information technology services. Simultaneously, it enters the market by offering smart products to consumers. In light of different service fee scenarios, this article explores the optimal decision-making for the platform. It investigates the pricing models and entry decisions of IoT platforms. Design/methodology/approach In this study, we have formulated a game-theoretic model to scrutinize the influence of the IoT platform ventured into the smart device market on the pre-existing suppliers operating under subscription-based and usage-based pricing agreements. Findings Our outcome shows that introducing an IoT platformâs smart device has a differential effect on manufacturers depending on their contract type. Notably, our research indicates that introducing the platformâs own smart device within the subscription-based model does not negatively impact the profitability of incumbent manufacturers, so long as there is a noticeable discrepancy in the quality of the smart devices. However, our findings within the usage-based model demonstrate that despite the variance in smart device quality differentiation, the platformâs resolution to launch their device and impose their pricing agreements adversely affects established manufacturers. Additionally, we obtain valuable Intel regarding the platformâs entry strategies and contractual inclinations. We demonstrate that the platform is incentivized to present its smart device when reasonable entry costs remain. Furthermore, the platform prefers subscription-based contracts when the subscription fee is relatively high in non-platform entry and entry cases. Originality/value These findings hold significant practical implications for firms operating in an IoT-based supply chain.
Purpose This study pioneers the investigation into the determinants influencing Malaysian investors' intentions towards Non-Fungible Token (NFT) investments, utilizing an extended Unified Theory of Acceptance and Use of Technology (UTAUT) framework. It explores the burgeoning interest in NFTs within the Malaysian market, an emerging economy, and identifies the behavioral adoption determinants critical for NFT investment decisions. Design/methodology/approach Adopting a quantitative methodology, the research engaged 183 experienced Malaysian investors through a structured online questionnaire survey. The study employed regression analysis to assess the impact of Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Perceived Usefulness, Social Support and Perceived Trust on NFT investment intentions. Findings The findings reveal that Performance Expectancy and Social Support significantly predict the intention to invest in NFTs, accounting for 47% of the variance in investment intentions. The study highlights the crucial role of perceived benefits and community support in shaping Malaysian investors' engagement with NFTs, amidst the complexities of the digital asset landscape. Research limitations/implications The study acknowledges the limitation posed by its sampling method and size, suggesting the need for broader investigations that include a more diverse demographic to enhance the generalizability of the findings. Future research could further delve into the specific behaviors, motivations and challenges of NFT investors and creators. Practical implications The significant predictive power of Performance Expectancy indicates a primary financial motivation among Malaysian NFT investors, suggesting policymakers consider regulations that foster innovation and growth in the NFT sector while safeguarding investors. The study also underscores the importance of community support, pointing towards the development of platforms that facilitate knowledge sharing among NFT enthusiasts. Social implications By demonstrating the pivotal role of social support in the NFT investment decision-making process, the research implies a powerful sense of community among investors in the digital asset space. It suggests the potential of NFTs to foster a more inclusive and accessible market for creative industry entrepreneurs, facilitating direct engagement and profit realization. Originality/value This research marks a significant departure from existing studies by tailoring the UTAUT model specifically to the NFT investment context in Malaysia. It unveils the nuanced dynamics influencing NFT investment intentions, emphasizing the unique contributions of Performance Expectancy and Social Support, thus providing a fresh perspective on NFT adoption in emerging markets.
the global trade in cryptocurrencies constitutes a multi-trillion-dollar digital industry. In the minds of many, however, this shadowy and uncontrolled flow of financial resources across international borders also represents a potential national security threat. Amid the lucrative benefits and security challenges of cryptocurrencies, governments in sub-Saharan Africa have taken dramatically different approaches toward regulation. However, these approaches have not always been intuitive or predictable. In Nigeria, where an estimated 35 percent of adults trade or store wealth in cryptocurrencies, the federal government has periodically sought to outlaw or curtail the burgeoning local trade of crypto assets. In contrast, the government of the Central African Republic (CAR), where 90 percent of the population lacks access to the internet, became the second country in the world to make a cryptocurrency legal tender. Both countries subsequently designed and implemented state-backed, virtual currencies. Why did these two African governments decide to regulate cryptocurrencies and, when they did, why did they take such dramatically different approaches? And how do these regulatory efforts relate to the two governmentsâ subsequent creation of their own state-backed virtual currencies?