Cong T. Nguyen, Dinh Thai Hoang, Diep N. Nguyen, Hoang-Anh Pham · 6 authors
In this paper, we propose a novel blockchain-based platform for the coalition loyalty program management. The platform allows the customers to freely exchange loyalty points from different existing blockchain-based loyalty programs by utilizing the sidechain technology. Moreover, by adopting the Proof-of-Stake consensus mechanism, we can further increase customer engagement by allowing the customers to participate in the consensus process to earn additional tokens. However, this might lead to situations where the customers centralize all tokens to a single chain/loyalty program if the chain offers more rewards for consensus participation. Through security and performance analyses, we show that such centralization of stakes poses a threat to the security and performance of the platform. Therefore, we develop a non-cooperative game model to analyze the rational behavior of the users. We reveal that the consensus participation rewards govern the user behavior and the decentralization of the system. Numerical experiments confirm our analytical results and show that the ratios between the consensus rewards have a significant impact on the system's security and performance.
Proof-of-Work (PoW) is the most widely adopted incentive model in current blockchain systems, which unfortunately is energy inefficient. Proof-of-Stake (PoS) is then proposed to tackle the energy issue. The rich-get-richer concern of PoS has been heavily debated in the blockchain community. The debate is centered around the argument that whether rich miners possessing more stakes will obtain higher staking rewards and further increase their potential income in the future. In this paper, we define two types of fairness, i.e., expectational fairness and robust fairness, that are useful for answering this question. In particular, expectational fairness illustrates that the expected income of a miner is proportional to her initial investment, indicating that the expected return on investment is a constant. To better capture the uncertainty of mining outcomes, robust fairness is proposed to characterize whether the return on investment concentrates to a constant with high probability as time evolves. Our analysis shows that the classical PoW mechanism can always preserve both types of fairness as long as the mining game runs for a sufficiently long time. Furthermore, we observe that current PoS blockchains implement various incentive models and discuss three representatives, namely ML-PoS, SL-PoS and C-PoS. We find that (i) ML-PoS (e.g., Qtum and Blackcoin) preserves expectational fairness but may not achieve robust fairness, (ii) SL-PoS (e.g., NXT) does not protect any type of fairness, and (iii) C-PoS (e.g., Ethereum 2.0) outperforms ML-PoS in terms of robust fairness while still maintaining expectational fairness. Finally, massive experiments on real blockchain systems and extensive numerical simulations are performed to validate our analysis.
Tan Guerpinar, Gilberto Guadiana, Philipp Asterios Ioannidis, Natalia Straub · 5 authors
In recent years, blockchain technology is expanding to new areas beyond finance, proving its use as an underlying technology for several application areas in supply chain management. There, the technology can be used to improve collaboration and transparency between supply chain partners. In this paper a systematic literature mapping is presented, which investigates the state of the art regarding blockchain-based applications in supply chain management. Identified applications are then analyzed regarding their industry sector, implemented blockchain framework and addressed challenges.
With the development of marketing, the bidding transactions among enterprises become more and more frequent. The traditional supply chain system cannot meet the needs of enterprise operation, due to the problems like inefficient information sharing, low collaboration, and huge consumption of human resources. To deal with the above problems, the emergence of blockchain technology provides a promising solution. In this paper, we employ an alliance blockchain architecture to realize a bidding-based supply chain system. Specially, we design a smart contract with reasonable contract interaction rules for the whole process a bidding transaction, with two specific functions, i.e., risk early warning and intelligent bid evaluating. In addition, a real alliance blockchain is implemented based on the Hyperledger platform, to validate the feasibility of our designed smart contract.
Matheus V. X. Ferreira, Daniel J. Moroz, David C. Parkes, Mitchell Stern
In recent years, prominent blockchain systems such as Bitcoin and Ethereum have experienced explosive growth in transaction volume, leading to frequent surges in demand for limited block space and causing transaction fees to fluctuate by orders of magnitude. Existing systems sell space using first-price auctions; however, users find it difficult to estimate how much they need to bid in order to get their transactions accepted onto the chain. If they bid too low, their transactions can have long confirmation times. If they bid too high, they pay larger fees than necessary. In light of these issues, new transaction fee mechanisms have been proposed, most notably EIP-1559, aiming to provide better usability. EIP-1559 is a history-dependent mechanism that relies on block utilization to adjust a base fee. We propose an alternative design -- a {\em dynamic posted-price mechanism} -- which uses not only block utilization but also observable bids from past blocks to compute a posted price for subsequent blocks. We show its potential to reduce price volatility by providing examples for which the prices of EIP-1559 are unstable while the prices of the proposed mechanism are stable. More generally, whenever the demand for the blockchain stabilizes, we ask if our mechanism is able to converge to a stable state. Our main result provides sufficient conditions in a probabilistic setting for which the proposed mechanism is approximately welfare optimal and the prices are stable. Our main technical contribution towards establishing stability is an iterative algorithm that, given oracle access to a Lipschitz continuous and strictly concave function $f$, converges to a fixed point of $f$.
Selina Demi, Ricardo Colomo‐Palacios, Mary Sánchez‐Gordón
The novel, yet disruptive blockchain technology has witnessed growing attention, due to its intrinsic potential. Besides the conventional domains that benefit from such potential, such as finance, supply chain and healthcare, blockchain use cases in software engineering have emerged recently. In this study, we aim to contribute to the body of knowledge of blockchain-oriented software engineering by providing an adequate overview of the software engineering applications enabled by blockchain technology. To do so, we carried out a systematic mapping study and identified 22 primary studies. Then, we extracted data within the research type, research topic and contribution type facets. Findings suggest an increasing trend of studies since 2018. Additionally, findings reveal the potential of using blockchain technologies as an alternative to centralized systems, such as GitHub, Travis CI, and cloud-based package managers, and also to establish trust between parties in collaborative software development. We also found out that smart contracts can enable the automation of a variety of software engineering activities that usually require human reasoning, such as the acceptance phase, payments to software engineers, and compliance adherence. In spite of the fact that the field is not yet mature, we believe that this systematic mapping study provides a holistic overview that may benefit researchers interested in bringing blockchain to the software industry, and practitioners willing to understand how blockchain can transform the software development industry.
The attacks against supply chain has increased recently in an alarming levels and the implementation of blockchain to secure the IoT data of the supply chain has received positive results as it provides transparency, traceability and involvement of all the agents. In this paper, a comprehensive exploratory reports of several blockchain based supply chain implementations has been given. The challenges and benefits of implementing blockchain in supply chain, various methods and techniques, different fields of supply chain especially focusing on Pharmaceutical supply chain and the working of blockchain has all been discussed here thoroughly. It has been concluded that the application of blockchain can enhance the security of supply chain significantly by providing transparency, authenticity and confidentiality.
Purpose Performance assessment of blockchain in the supply chain requires a systematic approach because of its interdisciplinary and multiobjective nature. Hence, four types of performance domains are identified, namely, environmental, economic, customer and information. Design/methodology/approach The following methodologies have been utilized: (1) literature review to find relevant factors, (2) factor analysis to validate factors and (3) DEMATEL theory to find the cause and effect relationships amongst performance measures. Findings An integrated holistic performance assessment model incorporating the 4 criteria and 25 subcriteria is applied. Originality/value This is the first paper to analyze blockchain performance in an industry setting.
Yunshu Liu, Zhixuan Fang, Man Hon Cheung, Wei Cai · 5 authors
Miners in a blockchain system are suffering from ever-increasing storage costs, which in general have not been properly compensated by the users’ transaction fees. This reduces the incentives for the miners’ participation and may jeopardize the blockchain security. To mitigate this blockchain insufficient fee issue, we propose a Fee and Waiting Tax (FWT) mechanism, which explicitly considers the two types of negative externalities in the system. Specifically, we model the interactions between the protocol designer, users, and miners as a three-stage Stackelberg game. By characterizing the equilibrium of the game, we find that miners neglecting the negative externality in transaction selection cause they are willing to accept insufficient-fee transactions. This leads to the insufficient storage fee issue in the existing protocol (i.e., deployed in Bitcoin and Ethereum). Moreover, our proposed optimal FWT mechanism can motivate users to pay sufficient transaction fees to cover the storage costs and achieve the unconstrained social optimum. Numerical results show that the optimal FWT mechanism guarantees sufficient transaction fees and achieves an average social welfare improvement of 51.43% or more over the existing protocol. Furthermore, the optimal FWT mechanism reduces the average waiting time of low-fee transactions and all transactions by 68.49% and 61.56%, respectively.
This paper considers a supply chain consisting of a manufacturer and a retailer. The manufacturer sells its products through the retailer and an online platform and adopts green technology in the blockchain era. The platform can operate with marketplace mode or reselling mode. The network effect is considered to reflect the power of the platform to enlarge the potential market size. In the decentralised supply chain, the online platform encroaches the offline demand despite the same retail price. The increase of the network coefficient improves the abatement level, and benefits the manufacturer and the platform but damages the retailer’s profit. For the supply chain coordination, the abatement level with reselling mode in the centralised supply chain is less than that in the decentralised supply chain if the network coefficient is high. Both marketplace mode and reselling mode can coordinate the supply chain if the network coefficient is low. Blockchain technology helps the products become greener and brings more profits for the manufacturer and the platform. And it induces supply chain coordination. Based on real data of a supply chain, its profit is increased by 3% after coordination.
Accurate data and strategic business processes are crucial to all parties in a supply chain system. However, the absence of mutual trust can create a barrier to implementation. Several studies have shown that supply chains face challenges arising from a lack of trust with respect to the sharing of data. How well each party trusts the data they receive can have a profound influence on management decisions. Blockchain technology has been widely used to process cryptocurrency transactions. Recently, it has also proved to be effective in creating trust in the Internet of things (IoT) domain. Blockchain technology can facilitate mutual trust between parties who would otherwise have been doubtful of each other's data, allowing for more effective and secure sharing of data. However, if the blockchain is not IoT-optimized, companies can experience significant delays and the need for extensive computational capacity. Moreover, there are still some limitations regarding the consensus between the nodes in the traditional consensus approaches. Here, we propose an alternative approach to creating trust in supply chains with diverse IoT elements. Our streamlined trust model simplifies data sharing and reduces computational, storage, and latency requirements while increasing the security of the IoT-based supply chain management. We evaluate the suggested model using simulations and highlight its viability.
Shashank Rao, Allan Gulley, M. B. Russell, Justin Patton
Abstract The ability to look into the supply chain has long enticed SCM scholars and practitioners. The possibilities created by such visibility are endless—from risk reduction and continuity planning to inventory management and cost reduction, nothing is off the table when end‐to‐end visibility is a possibility. Because of such enticements, there is usually much buzz in the industry every time a new technology that promises visibility and transparency is brought forward. Yet, years later, stories sometimes emerge that said technologies either failed to deliver or were not everything they were made out to be. Blockchain is yet another emerging technology in this space. Some consultants promise that it will be the final answer to the transparency and visibility woes that companies currently face. Yet, there is little empirical investigation regarding how the technology may benefit adopters, what the bottlenecks may be, and to what extent it may be able to deliver on these promises, without massive system‐wide upgrades of extant hardware and computing prowess. The current study takes a step in this direction by investigating a blockchain‐driven proof of concept across an industry consortium to identify promises, possibilities, and challenges of blockchain.
Prithviraj Lakkakula, David W. Bullock, William W. Wilson
Abstract Asymmetric information is prevalent in the grain and oilseed markets. This paper demonstrates the benefits of blockchain technology to mitigate asymmetric information about the soybean's protein quality between sellers and buyers. We use decision trees to model information asymmetry under both conventional and blockchain scenarios. The results suggest that asymmetric information can be mitigated with a blockchain, resulting in substantial premiums (40–60 cents per bushel of soybeans). These results could have significant implications for the grain and oilseed industry in order to decrease transaction costs, to improve market efficiency, and to prioritize strategies for the procurement of soybeans. JEL CLASSIFICATION O33 Q13; Q17
Shahbaz Khan, Rubee Singh GLA University, mathura, Kirti
Blockchain is an emerging technology in the digitalization age which has the potential to transform the shape of various business and their related activities. Blockchain is known as the transformative technology capable of reforming the modern supply chain network by offering greater transparency in the information and physical products transformations. There are numerous benefits to implementing blockchain technology (BT) within the supply chain. However, the BT implementation in the supply chain domain is relatively low, because it depends on several factors. Hence, the primary objective of this research is to identify and investigate the critical factor in the supply chain to adopt the BT. To achieve this goal, this study identified the ten critical factors for implementing BT through the literature survey and finalized them with expert feedback. Further, an MCDM method TOPSIS is applied to prioritize these critical factors. The finding of this study shows that “develop the framework for blockchain”, “knowledge and expertise”, “communication among supply chain partners” are high priority critical factors. Therefore, this research recommends that organizations should develop the framework for blockchain and create knowledge and expertise in this domain. Further, they also maintain the effective communication SC partners as we as supply chain stakeholder for collaboration and coordination to implement the blockchain at supply chain level. This study analyses the critical factors associated with BT implementation in the context of the supply chain that will assist the managers for effective execution.
Purpose Cross border trade, involving different business environments between the sellers’ and buyers’ countries, may result in conflicts because of asymmetry in the information structure across the borders. The International Chambers of Commerce (ICC) has laid down ground rules on terms of shipment and payment, enabling harmonization and standardization of business process, and fixing of responsibilities for international trade. The international commercial (INCO) terms by ICC define the duties, obligations and cost borne by the exporter and the importer. An exporter’s uncertainty looms once the goods cross his/her border. Therefore, there is a need for a smart contract that is secured, transparent, legitimate and trustworthy. The authors propose a blockchain technology-based smart global contract (BTGC) framework for international trade. Design/methodology/approach In this paper, the authors develop the framework based on value chain analysis (VCA) of international trade and an ontology-driven-blockchain-design approach. The paper analyzes the sequence of activities in the value chain of global trade, the terms of the contract, the data structure templates, the validation rules and the points-of-failure, and proposes the smart contract blockchain structure. Findings This paper proposes the BTGC framework considering the INCO terms 2020; it provides the validation rules and the probability of failures; and identifies the elements that cause the halting of contracts and conditions of creation of side blockchains. The framework also includes the governance of the BTGC system. Research limitations/implications The proposed framework not only has implications at the firm level as it automates and secures a global sale contract but also is expected to harmonize the global-trade process as well. The developers may use the attributes, data structure templates and the rules identified in this paper for developing the GC software. Future research may consider using case analysis, class diagrams and the related steps for developing the blockchain software. Originality/value This paper proposes a complete value chain of global contract (GC) concerning exports, an ontology of GC and a blockchain-based smart-contract framework based on global standards. Besides, it specifies the elements of fraud (such as the non-integration of side chains) and uncertainty, i.e. the probability of failures. Such a framework will harmonize the global-trade process and build an international standards for smart GC based on blockchain technology (ISSGCBT), which is not yet done.
Amit Karamchandani, Samir K. Srivastava, Sushil Kumar, Akhil Srivastava
Blockchain is a disruptive technology that promises to embed visibility and trustworthiness in supply chains. This paper examines the perceived role of blockchain in improving SCM and profitability of organisations in the manufacturing industry. It establishes the blockchain benefits for the manufacturing industry using the process of scale development. The proposed hypotheses related to the indirect effects are based on the resource-based view of the firm. The conditional indirect effects for four organisational factors are tested. The research framework is operationalised based on data from 236 practitioners. The findings show that blockchain is perceived to drive improvement in six supply chain dimensions of the manufacturing industry. The breadth of organisation size and geographical dispersion moderate the mediation relationship between blockchain benefits and incremental profitability. Furthermore, the conditional indirect effects are found significant at mean and ±1σ values of integration intensity and IT integration. According to managers of manufacturing industry, blockchain can bring significant improvement in delivery reliability and mass customisation, which would result in increasing the profitability of the organisation. Organisations with low integration intensity, high IT integration and small size organisations are likely to be the early adopters of blockchain technology.
Tobias Guggenberger, Johannes Sedlmeir, Gilbert Fridgen, André Luckow
Private permissioned blockchains are deployed in ever greater numbers to facilitate cross-organizational processes in various industries, particularly in supply chain management. One popular example of this trend is Hyperledger Fabric. Compared to public permissionless blockchains, it promises improved performance and provides certain features that address key requirements of enterprises. However, also permissioned blockchains are still not as scalable as centralized systems, and due to the scarcity of theoretical results and empirical data, their real-world performance cannot be predicted with the necessary precision. We intend to address this issue by conducting an in-depth performance analysis of Hyperledger Fabric. The paper presents a detailed compilation of various performance characteristics using an enhanced version of the Distributed Ledger Performance Scan (DLPS). Researchers and practitioners alike can use the various performance properties identified and discussed as guidelines to better configure and implement their Hyperledger Fabric network. Likewise, they are encouraged to use the DLPS framework to conduct their measurements.
Abderahman Rejeb, John G. Keogh, Steven J. Simske, Thomas F. Stafford · 5 authors
Purpose The purpose of this study is to investigate the potentials of blockchain technologies (BC) for supply chain collaboration (SCC). Design/methodology/approach Building on a narrative literature review and analysis of seminal SCC research, BC characteristics are integrated into a conceptual framework consisting of seven key dimensions: information sharing, resource sharing, decision synchronization, goal congruence, incentive alignment, collaborative communication and joint knowledge creation. The relevance of each category is briefly assessed. Findings BC technologies can impact collaboration between transaction partners in modern supply chains (SCs) by streamlining information sharing processes, by supporting decision and reward models and by strengthening communicative relationships with SC partners. BC promises important future capabilities in SCs by facilitating auditability, improving accountability, enhancing data and information transparency and improving trust in B2B relationships. The technology also promises to strengthen collaboration and to overcome vulnerabilities related to moral hazard and shortcomings found in legacy technologies. Research limitations/implications The paper is mainly focused on the potentials of BC technologies on SCC as envisioned in the current academic literature. Hence, there is a need to validate the theoretical inferences with other approaches such as expert interviews and empirical tests. This study is of use to practitioners and decision-makers seeking to engage in BC-collaborative SC models. Originality/value The value of this paper lies in its call for an increased focus on the possibilities of BC technologies to support SCC. This study also contributes to the literature by filling the knowledge gap of how BC potentially impacts SC management.
To support effective supply chain management (SCM) is a challenging issue for healthcare sectors. In healthcare, the requirements of blood to be fulfilled on demands are always directly or indirectly connected to its supply chain. For that, an effective blood supply chain system is required in which blood relevant information will be traceable at each stage of the blood supply (e.g., from donor to blood recipient), with trust and safety in testing, storage, and distribution phases and to keep the privacy of each donor. This study uses a Blockchain Ethereum platform as a solution to leverage traceability in the blood donation supply chain (BDSC). Blockchain is a highly efficient, decentralized, and peer-to-peer distributed technology deploys to provide end-to-end traceability, safety, immutability, and security in the BDSC ecosystem. As a part of this study, a role-based smart contract solution is used to define the access per each role, which therefore assists to ensure traceability and security of information in the BDSC ecosystem.