The supply chain plays an essential role in the cost reduction of offshore wind energy. Supply chain complexity is a major driver of end-to-end supply chain costs and at the same time a source of competitive advantage. In this study, a strategic complexity management approach is suggested for analysing and controlling the complexity of the supply chain in offshore wind energy. The adoption of blockchain via the development of software architecture and a discussion of its impact on complexity are provided. A comparative study focused on two UK offshore wind farms based on real industrial data illustrates the complexity analysis and the contribution of blockchain technology to the strategic management of this complexity.
James R. Barth, Hemantha S. B. Herath, Tejaswini Herath, Pei Xu
A recent and potentially profound innovation is the creation of cryptocurrencies and the underlying technology that is essential for their use in various financial transactions. Given the anonymity of a user of a cryptocurrency, such digital currencies may be used for many different types of both lawful and illicit activities. The main purpose of this paper is to examine the extent to which ethical considerations associated with the use of cryptocurrencies affect the valuations attached to such currencies. The examination is based on a text analytic approach that involves measuring the extent to which ethical and unethical words are used in a discussion related to Bitcoin on Twitter to determine if there is a connection between ethics and cryptocurrency valuations. We find the frequency of an unethical discussion about Bitcoin is negatively associated with its price. In contrast, the frequency of an ethical discussion is positively associated with its price.
In den letzten Jahren sind das Internet of Things (IoT) und Blockchain-Technologien immer beliebter geworden. Blockchain-Technologien bieten die Möglichkeit, Transaktionen in einem Logbuch zu speichern, in welchem Daten nur angehängt werden können und das nur schwer manipuliert werden kann. Dieses Logbuch wird von einem Peer-to-Peer-Netzwerk verwaltet. Blockchains der zweiten Generation bieten darüber hinaus die Ausführung von Smart Contracts an. Hierbei handelt es sich um Codeteile, die in der Blockchain gespeichert und von jedem Teilnehmer des Netzwerks ausgeführt werden können. Das IoT wird durch miteinander verbundene Objekte gebildet, wobei ein Objekt jedes Rechengerät sein kann, welches eindeutig adressierbar ist und über standardisierte Protokolle kommunizieren kann. Das IoT wächst stetig, ebenso wie die Menge an Daten,die über das Netzwerk generiert und ausgetauscht werden. Da die Anzahl der vom IoT generierten Daten weiter zunimmt, gestaltet sich das Auffinden von Datenquellen ohne Datenmarktplatz als sehr schwierig. Zu diesem Zweck bieten Datenmarktplätze eine Plattform auf der verschiedene Parteien ihre Daten anbieten können. Die Kombination von Blockchain-Technologien mit dem IoT bietet vielversprechende Anwendungsfälle, einschließlich dezentraler Datenmarktplätze. Die Forschung hat bereits verschiedene Konzepte und Lösungen im Zusammenhang mit Datenhandel und Datenmarktplätzen hervorgebracht, das heißt sowohl traditionelle Ansätze als auch Ansätze, die bereits Blockchain-Technologien verwenden. Viele dieser Arbeiten decken jedoch nicht alle wesentlichen Funktionen von Datenmarktplätzen ab. Im Rahmen dieser Arbeit entwerfen und implementieren wir ein Framework für einen dezentralen IoT-Datenmarktplatz. Das Design des Frameworks basiert auf einer Drei-Schichten-Architektur, bei der Smart Contracts verwendet werden, um verschiedene Funktionen zu implementieren und die Regeln des Datenmarktplatzes durchzusetzen. Zu diesem Zweck wurden unter anderem mehrere Smart Contract-Plattformen miteinander verglichen, um festzustellen, welche Unterschiede bestehen und welche für diese Anwendung am besten geeignet ist. Darüber hinaus enthält das Framework grafische Benutzeroberflächen, einen Proxy, der es Anbietern und Verbrauchern ermöglicht, IoT-Geräte zu integrieren und einen Broker, der den Datenhandelsprozess erleichtert und ressourcenintensive Aufgaben übernimmt. Abschließend evaluieren wir die Kosten, die durch die Verwendung von Smart Contracts entstehen und diskutieren Probleme, die während der Implementierung aufgetreten sind.
Abstract Nowadays, the emergence of Distributed Ledger Technologies (DLTs) and the rapidly developing of the digital economy have the potential to transform the current international regulatory framework. Thus, the current developments of DLTs in e-commerce demand a closer analysis of the implications for global governance and international trade. While the Internet has enhanced the development of new platforms for international trade, DLTs may be instruments to unleash the potential of e-commerce. In this scenario, DLTs could drive, strength and promote e-commerce transactions by diminishing inefficiencies. For instance, it could significantly reduce intermediation costs, facilitating the use and interoperability of smart contracts and single window systems. Indeed, customs operations are very complex and involve different types of intermediaries across borders, creating unnecessary obstacles to trade that could be reduced by the application of DLTs. There is where the regulatory paradox enters into place. The operability of DLTs in e-commerce raises significant regulatory challenges posing new policy questions. For this reason, it is crucial to achieving common understandings among relevant stakeholders to identify a set of principles that guide a country’s regulatory frameworks to facilitate the interoperability of e-commerce. One of the main pieces of the puzzle of proposing a set of principles is how to deal with an appropriate level of intervention from regulators in order to promote trust in international transactions, transparency, efficiency, security and operability among regulatory frameworks. This paper will examine current developments, initiatives, and proposals from different approaches: It will start with an overview of the opportunities that DLTs will create to promote e-commerce. Then, it will explore the current international economic legal framework in light of the application of DLTs in e-commerce, taking into consideration policy recommendations from international institutions and initiatives in some specific jurisdictions. From those views, a set of principles will be identified.
Im letzten Jahrzehnt hat der Begriff Blockchain aufgrund des Medienrummels um Bitcoin, der ersten Kryptowährung, immense Popularität erlangt. Bald darauf wurde die Blockchain-Technologie zu einer Inspiration für zusätzliche Anwendungen neben Kryptowährungen. Eine solche Anwendung sind Smart Contracts oder Programme mit dem Ziel, die Vereinbarungen eines Vertrags automatisch und sicher ohne die Unterstützung einer zentralen Stelle auszuführen. Derzeit ist Ethereum die wichtigste Blockchain-Plattform für Smart Contracts. Smart Contracts im Ethereum-Netzwerk können Teil einer dezentralen Anwendung sein oder als eigene Einheit existieren. Sie können durch eine externe Transaktion (User) oder eine interne Transaktion (einen Smart Contract) ausgelöst werden. Angesichts der Bedeutung und Sensibilität der Informationen und / oder Daten, mit denen Smart Contracts täglich umgehen, ist es wichtig, ein besseres Verständnis dafür zu erlangen, wie Smart Contracts tatsächlich funktionieren, welche Funktionen sie ausführen und wie sie im Ethereum-Netzwerk miteinander verbunden sind. In dieser Arbeit wird ein Ansatz für das Clustering von Smart Contracts auf Ethereum hinsichtlich der gemeinsamen Funktionalität vorgeschlagen, das die Graphdatenbank Neo4j und andere Visualisierungsmethoden und / oder –werkzeuge verwendet. Es werden verschiedene Datensätze (Partitionen des kompletten Datensatzes an Smart Contracts auf Ethereum), sowie zwei Clustering- Ansätze verwendet, um einen besseren Einblick in die Funktionsweise von Smart Contracts zu erhalten und deren funktionale Ähnlichkeiten zu verstehen.
Recent advances in distributed ledger technologies enable new types of decentralized governance and financing for technology platforms. In this paper, we analyze the current state-of-the-art in platform financing and propose a novel way to sustainably finance decentralized technology platforms using a blockchain-based token economy. We design and develop a token model and demonstrate its usefulness for financing the Open Charging Network, an electric vehicle charging platform governed by the Share&Charge foundation. Based on a multi-method simulation approach, we evaluate our token economy model and show, that it can provide sustainable financing for a technology platform with decentralized governance.
Cryptocurrencies are used not only as a payment instrument but also as a speculative and investment instrument. In the context of their use, the question arises of how and whether they should be taxed. The aim of the paper is to analyse and to assess the taxation of income from the cryptocurrency operations from the perspective of a non-business natural person in compliance with the Act on Income Taxes in the Czech Republic, concurrently to find out the attitude of young future economists familiar with cryptocurrencies to this tax issue and to identify socioeconomic factors influencing their attitude. For this purpose, an online questionnaire survey was conducted among economists aged 19-35 years in May 2019. A total of 269 responses were obtained and evaluated using descriptive statistics and ordinal regression. While, according to the effective law, income from all cryptocurrency operations is to be taxed, the results show that most of the respondents (44.98%) would tax the income depending on how cryptocurrencies are used.
Joshua Ellul, Jonathan Galea, Max Ganado, Stephen McCarthy · 5 authors
Abstract Blockchain, Smart Contracts and other forms of Distributed Ledger Technology provide means to ensure that processes are verifiable, transparent, and tamper-proof. Yet the very same enabling features that bring decentralisation also pose challenges to providing protection for the various users and stakeholders. Most jurisdictions which have implemented regulatory frameworks in this area have focused on regulating the financial aspects of cryptocurrency-based operations. However, they have not addressed technology assurance requirements. In this paper we present a world-first technology regulatory framework.
There is a lot of excitement around Blockchain technology and its ability to disrupt many traditional industries and business practices. First invented as a part of Bitcoin’s underlying infrastructure, Blockchain technology offers a platform for decentralized and transparent transaction management between untrusting parties. Many believe this aspect of blockchain can revolutionize traditional supply chain practices typically involving many untrusting entities from the time raw material extraction to the final consumption of a finished product by the end consumer. While there have been many claims regarding its obvious benefits in Supply chain management, there are only few technical applications developed so far that are useful in real world scenarios. In this thesis, we review different real-world implementations of block chain technology in the supply chain domain, especially those that leverage smart contracts. Smart contract is a computer protocol that facilitates, verifies, enforces performance of a contract digitally using Blockchain technology. Since smart contracts are trackable, irreversible and allow performance of credible transactions without third parties, it can be deployed effectively to replace existing supply chain mechanisms that require working with an intermediate entity such as a bank that often comes with a price tag for their services. In this thesis, we present a framework to enable sale of goods between untrusting entities typically in different geographies leveraging smart contract technology that can effectively replace the "letter of credit" payment mechanism. An novel algorithm for dispute resolution is developed and a decentralized app (Dapp) is built and deployed on Ethereum block chain using smart contracts developed in Solidity. Last, we discuss the effectiveness of such a system, potential drawbacks or known security threats that may hinder the adoption of such an app in the real world.
Abstract From a modern institutional economics viewpoint, blockchain is an institutional technology that minimizes transaction costs and greatly reduces intermediation. Through an analysis of blockchain, I demonstrate the possibilities of extended institutional approach – a new generation of complexity-focused methodologies and theories of institutional analysis that complement and expand the standard institutional paradigm. By using the theory of transaction value, I argue blockchain technologies not only will lead to a significant reduction in transaction costs but will also reorient intermediaries toward improving the quality of transactions and expanding the offer of additional transaction services. The theory of institutional assemblages indicates it is impossible to form a homogeneous system of blockchain-based institutions associated exclusively with the principles of decentralization, transparency, and openness. Blockchain-based institutions will be of a hybrid and conflicting nature, combining elements of opposing institutional logics – regulatory and algorithmic law, Ricardian and smart contracts, private and public systems, and uncontrollability and arbitration.
Cryptocurrencies, such as Bitcoin, Ethereum or Ripple, are discussed as a new form of money. Typically, money fulfills three core functions: 1) medium of exchange, 2) store of value, and 3) unit of account. To examine whether individuals consider cryptocurrencies as money, we conduct three studies. Study 1 (N=57) provides valid and reliable measurement items for the three core functions of money. Study 2 (N=95) shows that the general perception about the fulfillment of the core functions is rather positive for cryptocurrencies. The results from Study 3 (N=99) furthermore reveal that Bitcoin is perceived significantly better in fulfilling all three functions than Ethereum or Ripple. The findings suggest that cryptocurrency research needs to include or at least control for the basic perceptions of core functions when examining individuals' adoption or use of cryptocurrency as money. Furthermore, the findings suggest that existing knowledge from Bitcoin use or adoption research cannot be easily transferred to the context of another cryptocurrency.
Blockchain is drawing attention as rising technology with the advantages of security, transparency, and immutability by a decentralized network structure. However, blockchain technology is still an immature technology and lacks common standards. The researches on blockchain technology have been mainly focused on the financial sector but rarely applied to the supply chain in industry sectors. Especially, the blockchain technologies developed by technology entrepreneurs are still challenging to apply to an actual business due to a lack of understanding of the possibility of creating value. Therefore, it is necessary to provide technological entrepreneurs with an understanding of the business model and the feasibility of creating value with the new technology like blockchain. To address the issue, this study investigates how blockchain technology is effectively applicable and what value can be achieved from it. The purpose of this study is to analyze a livestock traceability system using blockchain technology and investigate its business model in terms of the value proposition, value delivery, and value creation. This study would provide insights into the business value creation of blockchain technology.
Rui Torres de Oliveira, Marta Indulska, Tatiana Zalan
In the past two decades, digital technologies have substantially changed the ways in which individuals and firms communicate and transfer knowledge, with wide-ranging implications for organisations and institutions. From an organisational perspective, the emergence of digital technologies has enhanced the materialisation of new business models (Foss and Saebi, 2017; Rachinger et al., 2019), the personalisation of products and services (Cenamor et al., 2017), the relation of trust between market agents and asymmetries of information (Urena et al., 2019), new products and services (Matt et al., 2015) and the pace of product life-cycles (Seetharaman et al., 2018), to name a few. This digital transformation has far-reaching implications for organisations but is particularly important to multinational enterprises (MNEs) as it allows them to reduce the liability of foreignness (Johanson and Vahlne, 2009), enhance knowledge creation and improve knowledge transfer and learning (Gaur et al., 2019), augment trust-building (Monaghan et al., 2020), build agile global value chains (GVCs) (Kano et al., 2020) and improve the speed of internationalisation (Oviatt and McDougall, 1994). All this results in a reduction of uncertainties and thus lowers the risk perception (Clarke and Liesch, 2017), which impels international commitment decisions. An important new technology with potential for significant and wide-ranging impacts is blockchain. With this technology it is now possible to, for example, transfer the ownership of physical assets, such as cars and real estate, stocks, bonds and money over the internet through digital contracts (Andreesen, 2014). The changes that blockchain technology brings about leave academics, businesses and governments grappling with the consequences. Academic research has focussed on the economics of blockchains (Evans, 2014; Davidson et al., 2016) and blockchain use cases, especially in the financial, information and communications technology, and public sectors (Bohme et al., 2015; Friedlmaier et al., 2017; Tapscott and Tapscott, 2016). Because blockchain has multiple barriers to widespread adoption (Iansiti and Lakhani, 2017), researchers have explored regulatory barriers to the adoption of cryptocurrencies and smart contracts (Caytas, 2017; Werbach and Cornell, 2017) as well as technical barriers, such as scalability, interoperability, performance and data privacy (Hileman and Rauchs, 2017; Yli-Huumo et al., 2016). Tapscott and Tapscott (2016) argue that blockchain constitutes an institutional innovation, the “cryptoeconomy” – an economic system not defined by geographic location, political structure or legal system, but which uses cryptographic techniques to incentivise appropriate behaviour of participants in place of using trusted third parties (Pilkington, 2016). From this perspective, blockchains are platforms for building economic coordination using distributed ledgers augmented with computational features, such as money (cryptocurrencies), programmable contracts (e.g. smart contracts) and organisations made of software (DAOs, or distributed autonomous organisations). Thus, blockchain technology is not only innovative but also is a building block for new forms of economic governance and socio-political order (Davidson et al., 2016). Despite the critical importance of digital technologies, such as blockchain and organisations’ digital transformations, the international business (IB) literature has been slow to unpack the implications for organisations’ internationalisation motivations and processes. Furthermore, and more recently, the emergence of fully digital organisations, such as digital platforms (Uber or Airbnb), social media (Facebook or Twitter), e-commerce (Taobao) or financial services (TransferWise), are still very much a black box to IB literature. With this special issue, we aimed to uncover a small part of the necessary embracement that the IB field needs to achieve to be prepared to perform their societal role of informing managers, entrepreneurs, officials and other agents of change. To do so, we look specifically at the implications of blockchain technology in the IB field. While IB literature is lagging behind in the study of blockchain, MNEs are – and have been for some time – actively exploring blockchain’s potential, particularly in the financial (Bohme et al., 2015), compliance (Anjum et al., 2017), healthcare (Mettler, 2016), data protection (Finck, 2018) and logistics (Hackius and Petersen, 2017) contexts. In China alone, by the end of March 2020, a total of 35 MNEs (including Microsoft, Oracle, Mastercard, Sony, Intel and Walmart) applied for 212 blockchain-related patents (Global Times, 2020). As explained elsewhere (Finextra, 2017), banking and finance now account for some 30% of blockchain use cases, and nearly 70% of central banks are experimenting with blockchain technology. Entrepreneurial start-ups and initial coin offerings – a form of crowd funding made possible because of blockchain (Kastelein, 2017) – have been the drivers behind an unprecedented surge of innovation, ranging from new, competing protocols (e.g. Tezos and EOS) to smart contracts on Ethereum, decentralised applications (e.g. Telegram), and new currencies with unique features (e.g. monero and zcash) (Vereckey, 2018). Thus, and more than ever, we need to push the blockchain agenda and investigate its implications for IB. In the following sub-sections, we outline the key implications of blockchain technology in the context of IB.
Future 6G scenarios in 2030 envision society that will be data-driven, enabled by near-instant and unlimited wireless connectivity to intelligence. This calls for a multidisciplinary approach and a re-imagining of how we create, deliver and consume network resources, data and services. This development will change the traditional business models and ecosystem roles, as well as open the market for new stakeholders like micro-operators, edge cloud operators and resource brokers. This paper discusses unprecedented challenges of enabling and stimulating multiple stakeholders to have a more active participation in the future 6G ecosystem and gives a brief outline of key implications of blockchain technologies for related business model transformations. The research extends the existing archetypes of closed and supply focused mobile broadband business models and proposes the novel open ecosystem-focused scenario in which value configuration is leveraging distributed ledger technologies. This expands the architecture from centralized innovation and transaction platforms towards decentralization without a focal resource-orchestrating entity. Results showed that blockchain enabled 6G business can be built on novel business opportunities, value generation and competitive advantage that have positive strategic consequences on scalability, replicability and sustainability.
Sergey Smetanin, Aleksandr Ometov, Niclas Kannengieser, Benjamin Sturm · 6 authors
Interest in applications based on distributed ledger technology (DLT) is on the rise, with corporations worldwide shifting from simply exploring DLT's potential to creating productive business cases. However, despite the existence of numerous DLT applications, developers are still lacking proper tools and instruments for evaluating system behavior (e.g., performance) of their applications on different distributed ledgers before deployment. Since the behavior of such applications is highly dependent on the characteristics of the distributed ledger they are built upon and changing the distributed ledger after deployment of an application is difficult, selecting the wrong ledger can have severe negative consequences. To address the issue, we conducted an extensive literature review to identify and synthesize published modeling and simulation approaches for distributed ledgers. Based on the results, this paper also presents a research agenda to improve modeling of the system behavior of distributed ledgers and to support the development of distributed ledgers and viable DLT applications. In doing so, we facilitate informed decision-making for suitable modeling or simulation approach, which helps application developers to identify a suitable distributed ledger before implementing an application. In addition, our work contributes to science, as we provide a comprehensive overview and analysis of extant simulation and modeling approaches in DLT that accumulates the current state-of-the-art in the rapidly growing DLT field.
Ricardo Colomo‐Palacios, Mary Sánchez‐Gordón, Daniel Arias Aranda
Abstract Blockchain is considered as a major emerging technology that is having an ever‐increasing spread both in industrial and academic contexts. As the usage of blockchain keeps increasing, a fourth generation of blockchain platforms is being proposed. Thus, applications of blockchain have evolved towards wider scopes than cryptocurrency and asset management. In this context, it is important for practitioners to have deep understanding of various blockchain assessment initiatives. Therefore, this work discusses blockchain assessment initiatives from a technology evolution viewpoint. Furthermore, a mapping was conducted to identify factors that impact blockchain initiatives, synthesize available evidence, and identify gaps between relevant approaches available in the literature. As a result, nine selected works were analyzed based on applicability, research approach, assessment process, blockchain adoption process, and blockchain waves. The findings can help practitioners to understand the main assessment factors that undermine blockchain implementations.
Federation of services, as a 5G networks concept, aims to provide orchestration of services across multiple administrative domains. In this paper, we are exploring a solution of applying distributed ledger technologies, precisely the combination of blockchain and smart contracts, to enable highly secure, private, fast and distributed interaction between administrative domains in the federation process. Along with the designed solution, we developed an experimental prototype that requires simple one‐time setup and fast simultaneous registration time for multiple administrative domains. Obtained results show single service federation times (without considering the deployment time) of around 5 seconds.
Flynn Werner, Marcus Basalla, Johannes Schneider, Demelza Hays · 5 authors
This study investigates the potential influence of blockchain technology adoption on a company’s competitive performance from an interorganizational systems perspective. A research framework is derived based on expert interviews and tested with a quantitative survey. The results show, that by offering traceability and immutability of transactions, blockchain technology could positively impact a company’s competitive performance. The study further identified a positive influence of smart contract technology on partnering flexibility and competitive performance.
The article presents a comparative legal analysis of the modern legal regulation of the multidimensionality of digital electronic currency in BRICS countries. It assesses the possibility of civil circulation of a digital property right as an economic and legal segment without clear legal regulation. It analyzes the judicial practice related to confidentiality, acquisition, and trading of virtual currency. The article justifies the ability to integrate a single digital currency – CRYPTOBRICS, a single equivalent for all payments in the form of cryptocurrency within the framework of BRICS for settlements and increase in the trade exchange volume on these international platforms. This will provide for the legalization and consolidation of the legal framework of cryptocurrency within the context of objects of civil rights, allowing BRICS members to become regulatory leaders in the field of digital assets. We formulated a proposal to create an international agreement defining the parameters of the digital currency issue based on blockchain technology for interstate transactions, which allows the BRICS counties to establish the next stage of their mutual integration for the free trade zone and the customs union. Unifying the civil circulation of cryptocurrency and using the platform of modern non-monetary digital circulation as our foundation, we concluded that BTC can be classified as a type of digital property right. The article justified the theoretical definition of digital property right in the form of cryptocurrency as a resource stored in a device or electronic system which allows the end user to complete transactions using virtual currency and denominated in another payment unit, as opposed to currencies issued by sovereign states. We suggested that insurance companies be insured against all possible risks associated with cryptocurrency circulation and cybersecurity as a civil measure to protect the order of intangible digital codes – cryptocurrencies.
Summary There has been a huge increase in interest in blockchain technology. However, little is known about the drivers behind the adoption of this technology. In this article we identify and analyze these drivers, using six real‐world and representative scenarios. We confirm in our analysis that blockchain is not an appropriate technology for some scenarios, from a purely technical point of view. The choice for blockchain technology in such scenarios may therefore seem as an irrational choice. However, our analysis reveals that there are nontechnical drivers at play that drive the adoption of blockchain, such as philosophical beliefs, network effects, and economic incentives. These nontechnical drivers may explain the rationality behind the choice for blockchain adoption.
First paragraphs: Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer. The maxim is so perfectly self-evident, that it would be absurd to attempt to prove it. —Adam Smith, An Inquiry into the Nature and Cause of the Wealth of Nations (1776) Introduction In today’s global food system, where the concentration of both economic and political power is self-evident, the maxim of consumer sovereignty is in great need of proof. In Montana, where we live, we have the great fortune to buy grass-finished certified organic beef from a rancher almost literally in our own backyard. We know the supplier of our food not only as a producer, but as a friend. This rancher can easily garner from us, and his other costumers, our preferences. In a sense, we drive the rancher’s production methods and pricing. Even though we insist on organic certification, it is largely on the basis of trust and friendship that we return to purchase from him over and over for our family’s beef supply. . . . See the press release for this article.