Gabriela Mariutac, Claudiu BrĂąndaÈ, Otniel Didraga, Mihai Plesa
The voluntary carbon market (VCM) has faced sustained legitimacy stress since 2023, when peer-reviewed work found that fewer than one in six issued credits represented a real emission reduction. In parallel, tokenisation through Web3 protocols, decentralised autonomous organisations (DAOs), and regenerative finance (ReFi) infrastructures introduced new participants interacting with incumbent registries without a shared coordination framework. Existing scholarship examines commons governance, complex system governance (CSG), and tokenised carbon markets largely in isolation; the gap addressed here is the absence of an integrated system-of-systems (SoS) governance treatment of the tokenised VCM. This study develops and empirically applies a polycentric SoS governance framework for the tokenised VCM, structured around four research questions and five foundational contributions. We treat the tokenised VCM as an SoS that is polycentric in configuration but not by design, and develop a system-of-systems engineering (SoSE) governance reading of it. We reformulate Ostromâs eight design principles as SoS governance criteria for digitalâphysical hybrid commons, map each to CSG metasystem functions, and apply the framework to four cases: KlimaDAO, Toucan Protocol, Regen Network, and the post-2023 Verra reforms. Qualitative coding is complemented by on-chain and Base Carbon Tonne spot-price evidence from October 2021 to December 2025. Disclosure by an analytical intermediary acted on the SoS roughly seven weeks before formal regulatory action and was associated with about 90% of the observed bridging slowdown, interpreted descriptively rather than causally. We derive an eight-item reform agenda, six DAOâregistry interface specifications, and a five-level governance maturity rubric.
Open access
Systems Engineering Methodologies and Applications
This document establishes the ontological status of mathematics within the Energy-Efficiency Theory (EET) framework. Mathematics is not an independent reality standing alongside the physical world, not a pure mental construction, not an arbitrary symbolic game, not an eternal Platonic entity. Mathematics is the \textbf{structural space} within the Rule-Causal domain --- a sub-model generated by the application of the modeling rules (causality, logic, the seven operations of the Generative Grammar, MEER maximization). It constructs stably invariant formal structures under the transformational grammar provided by logic, and is continuously revised and extended in interaction with physical cognitive models. \textbf{Core Constitutional Position}: Mathematics is a sub-model generated by the modeling rules. It does not define new irreducible modeling rules; it describes the structural space that the constitutional rules of causality and logic generate. Its constitutional status is \textbf{Satellite Paper (SAT)} --- dependent on and parasitic upon the constitutional mother texts (Causality v1.7 and Logic v1.2). The Ontology of Mathematics belongs to the Cognitive Constitution. Its employment of physical-constitutional concepts (cognitive heat engine, Ben-Shi dynamics) constitutes instrumental application by a cognitive model, not constitutional dependence. \textbf{The Ultimate Engine --- Causal Arbitrage}: The pursuit of mathematical necessity is the maximal-MEER form of causal arbitrage in the virtual domain. By stipulating axioms and derivation rules (Presupposition of Cause), the cognitive system converts the high-cost, ongoing verification of physical causality into the low-cost, one-time application of symbolic consistency. Mathematical structures, once constructed, can be invoked at near-zero marginal cost to generate predictions about physical systems---the ultimate arbitrage return: temporal buffer maximized, response energy minimized. \textbf{Core Constitutional Contribution --- Completeness Feedback}: Mathematics possesses an inherent drive toward systematization. This drive leads it to systematically probe the limits of the modeling rules themselves---in consistency, completeness, decidability, and categoricity---and to feed these limits back to the rule-makers. This \textbf{Completeness Feedback} is the endogenous engine of the modeling rules' self-refinement. Mathematics is thus not merely the passive product of the modeling rules; it is the ``constitutional mirror''---the only device through which the modeling rules can see their own limitations. \textbf{Core Insight --- Rhetoric of Rupture, Operational Continuity}: What the mathematical community has historically narrated as ``crises'' were, from the constitutional perspective of the mathematics mother model, \textbf{Divides}---internal symmetric divisions that produced new structural spaces while preserving the old ones. The rupture was rhetorical; the operation was continuous. The mathematical mother model never contracts, only expands (the Principle of Elastic Expansion). \textbf{Mathematics as a Language/Symbol Protocol}: Mathematics occupies the limit endpoint of the parameter-sharing / trigger-precision trade-off (Language v1.0). It sacrifices parameter-sharing---accepting that only a tiny fraction of the population can decode its signals---to achieve near-perfect trigger precision and cross-generational transmission fidelity. Mathematical symbols are second-order externalizations: they refer not to perceptual objects but to operations on already-established distinctions. Mathematical texts are frozen operation sequences---encoded instructions for re-executing cognitive operations, not passive records of results. The decoding cost of mathematical protocol is not significantly lower than its encoding cost---mathematical knowledge cannot ``diffuse'' but must be rebuilt by each individual through the Conscious Self's active re-execution of the encoded operations. \textbf{Mathematics as a Cognitive Heat Engine}: The mathematical system operates as a cognitive heat engine (Xu-Shi v3.1) governed by the four universal laws of Ben-Shi dynamics (Ben-Shi v3.0). New axiom stipulation provides the high-Xu heat source; theorem Encapsulation is the work; encapsulated theorems form the low-Xu heat sink. The system's capacity for flexible oscillation between exploration and consolidation monotonically contracts over its lifetime (Ben-Shi Irreversibility), and its metacognitive precision decays with constraint accumulation (XQ Decay Law). Structure pathology---the accumulation of formally valid but low-MEER structures---complements the grammar pathology of logic. \textbf{Mathematical Intuition, Aesthetics, and Genius}: Platonic intuition is the phenomenological correlate of Algorithmic Submersion---Divide and Encapsulate operations hardened to invisibility through repeated successful application. Mathematical elegance is the Emotional Self's direct phenomenological readout of MEER: $\mathrm{Elegance}(P) = \text{structurally necessary conclusions} / (\text{derivation steps} \times \text{axioms and lemmas invoked})$. Mathematical genius is the precise synchronization of the Automatic Self (submerged intuitions), Emotional Self (aesthetic navigation of MEER), and Conscious Self (explicit proof audit). \textbf{Unified Resolution of Six Major Problems}:\begin{enumerate}[label=(\roman*)] \item Wigner's problem: the effectiveness of mathematics comes from joint evolution---physical and mathematical cognition share the same underlying modeling grammar and co-evolve in interaction with real space; \item Benacerraf's problem: dissolved, not resolved---mathematical cognition requires no cross-domain channel because it shares the same operational grammar with physical cognition; \item The fragmentation of foundations: set theory, category theory, and homotopy type theory are different schemes of the Presupposition of Cause, each valid within its own Root Cut boundary; \item Undecidability: the ``charter of blindspots'' of the modeling rules---the constitutional boundary of what any finite formal system can determine; \item Stratified effectiveness: the applicability of mathematics is stratified because causal compression itself is stratified; \item Platonic intuition: the first-person experience of hardened Divides---operations submerged to invisibility perceived as eternal entities.\end{enumerate} The document establishes the complete interfaces between mathematics and the EET constitutional system, articulates its own constitutional boundaries and meltdown conditions, and provides the systematic framework for understanding mathematics as both the product of the modeling rules and the driver of their self-refinement. {Keywords}: Ontology of mathematics; Rule-Causal domain; structural space; Presupposition of Cause; joint evolution; completeness feedback; causal arbitrage; Wigner's problem; MEER; virtual domain; encapsulation network; rhetoric of rupture; operational continuity; structure pathology; mathematical intuition; mathematical aesthetics; mathematical protocol; parameter-sharing / trigger-precision trade-off; frozen operation sequences; decoding cost asymmetry; elegance as cognitive operational efficiency; cognitive heat engine; Energy-Efficiency Theory
Chapter 9 of the Vital Intelligence Doctrine (VID) introduces Tensegrity Architecture as a paradigm shift for organizational design. Moving away from rigid hierarchical 'pyramids,' this chapter proposes a model based on 'Discontinuous Compression and Continuous Tension.' It explores how to build self-regulating organizations using Synergetics, autonomous VID-units, and dynamic messaging matrices. By implementing these principles, leaders can create resilient, antifragile entities that operate through internal balance rather than central control. Keywords: â Vital Intelligence Doctrineâ , â VIDâ , â Tensegrityâ , â Synergeticsâ , â Decentralized Governanceâ , â Organizational Architectureâ , â Systemic Resilienceâ , â Self-organizing Organizationsâ .
This paper introduces a systems-theoretic framework for understanding how high-coherence social structures emerge following the collapse of centralized ideological movements. Using the fragmentation of the Black Panther Party and the subsequent rise of Chicago-based organizations such as the Gangster Disciples and Black P. Stone Nation as a primary case study, the research analyzes how identity systems function as distributed governance mechanisms in high-threat environments. The paper argues that after a loss of centralized coordination capacityâaccelerated in this case by external intervention such as COINTELPRO and internal organizational fragmentationâlocalized groups reconstruct coherence through symbolic and procedural frameworks. These identity systems, composed of geometric symbols, ritualized protocols, and codified behavioral rules (âThe Literatureâ), act as low-cost identity verification mechanisms and enable rule-based behavioral alignment across decentralized networks. By applying a comparative systems lens, the study draws a functional analogy between these 20th-century urban dynamics and the historical nationalization of Israelite tribal identity in the ancient Near East (cf. William G. Dever). In both contexts, fragmented groups achieve large-scale coordination through the implementation of standardized identity codes, compliance signaling mechanisms (e.g., taxation/tithing), and boundary-maintaining symbolic systems. These mechanisms allow for structural persistence even in the absence of continuous centralized enforcement. The paper further develops the concept of distributed command, in which authority is embedded within the identity system itself rather than dependent on the physical presence of leadership figures such as Larry Hoover and Jeff Fort. This shift enables what is defined as Projected Threat Recursion, where adherence to system rules is maintained through internalized identity and anticipated enforcement rather than immediate coercion. To support operationalization, the study proposes a preliminary Coherence Coefficient (Câ) model, conceptualizing system stability as a function of alignment, response consistency, and identity strength relative to fragmentation and external distortion pressures. This model provides a foundation for analyzing resilience and failure dynamics in distributed human systems. The findings suggest that identity-mediated coordination is a persistent and scalable solution to systemic fragmentation, extending beyond historical or urban contexts. Comparable architectures are observable in decentralized autonomous organizations (DAOs), digital identity networks, insurgent systems, and platform-based communities. As modern systems experience increasing fragmentation, identity-based governance structures may represent a primary adaptive pathway for achieving long-term coordination and structural persistence. This work contributes to interdisciplinary discussions in systems theory, sociology, political science, and complexity studies by reframing identity not as a cultural byproduct, but as a functional infrastructure for distributed governance under constraint.
The nomenclature of Decentralized Autonomous Organizations (DAOs) implies a capability for autonomous operation that remains theoretically undefined and empirically unverified. This paper addresses this blind spot by reframing DAO analysis through a reductionist systems engineering lens, defining autonomy strictly as a system’s capacity to achieve goals under uncertainty without external intervention. We propose a novel measurement framework adapted from robotics standards (0–5 scale) and apply it to a random sample of N= 50 DAOs. The results reveal a stark disconnect between promise and reality: the ecosystem is currently capped at agency (Level 3), with the vast majority functioning merely as automated, human-dependent systems. Through an ordered logit analysis, we demonstrate that while architectural design choices, specifically regarding governance formalization and oracle integration, drive lower-level automation, the probabilistic reasoning required for high autonomy is statistically absent. We conclude that until the technical barriers to artificial intelligence integration are overcome, the ecosystem will remain “DAOs in Name Only,” failing to fulfill the autonomous promise of their title.
Open access
Systems Engineering Methodologies and Applications
Dec 23, 2025·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Oliver Alexy, Oliver Baumann, Ying-Ying Hsieh, Giorgia SampĂł
Decentralized Autonomous Organizations (DAOs) represent a radical form of socio-technical systems, where rules are enforced by code and governance is conducted by a distributed network of stakeholders. A critical challenge in designing these systems is achieving consensus without centralized authority, yet how consensus ensures effective governance remains underexplored. This study investigates the design of DAO governance systems, utilizing data from 70 DAOs and applying Fuzzy Set Qualitative Comparative Analysis (fsQCA) to explore which consensus configurations lead to positive organizational outcomes. Our analysis challenges the notion of a single consensus model. Instead, we uncover 13 distinct configurations that characterize successful DAOs. Our key finding reveals a fundamental âideation-legitimation trade-offâ: successful DAOs optimize for broad participation in either the proposal (ideation) stage or the voting (legitimation) stage, but rarely both. These insights provide a nuanced framework for understanding and designing effective governance systems for DAOs.
Dec 23, 2025·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Decentralized Autonomous Organizations (DAOs) integrate blockchain-based automation with novel forms of collective governance, yet research on them remains fragmented across technical and organizational silos, hindering a comprehensive understanding of DAOs as socio-technical systems. To bridge these gaps, we first conduct a systematic umbrella review of 12 prior surveys to map research themes and persistent gaps. Based on this analysis, we propose a novel, three-layer framework that explicitly links (i) technical artefacts (the infrastructure, e.g., tokens, smart contracts), (ii) governance logics (the rules, e.g., incentives, consensus mechanisms), and (iii) organizational manifestations (the outcomes, e.g., proposals, votes). By making cross-layer dependencies explicit, the framework enables more holistic theorizing, supports comparative empirical work, and provides a diagnostic tool for practitioners dealing with design trade-offs between decentralization, efficiency, and participation.
Public health systems face mounting challenges from pandemics, environmental disruptions, and persistent health inequities, exposing the limitations of static, siloed infrastructures. This paper introduces a conceptual model for Learning Public Health Systems as a Service (LPHSaaS), integrating principles from service science, resilience theory, and decision systems architecture. The novelty lies in reimagining public health as a continuously adaptive, stakeholder-informed service ecosystem, enabled by emerging technologies such as AI, IoT, cloud computing, and distributed ledger technologies. Methodologically, the paper presents a cyclical workflowevent monitoring, validation, decision-making, feedback, and knowledge translation, illustrated through a use case that demonstrates how real-time analytics and participatory design enhance responsiveness and trust. Findings suggest that LPHSaaS can improve situational awareness, resource allocation, and intervention precision while fostering resilience and continuity during crises. The proposed model offers a blueprint for transforming public health infrastructures into dynamic, learning ecosystems, with implications for both theoretical advancement and practical implementation across diverse health contexts.
Global supply chains face increasing disruptions from cyber threats, geopolitical instability, extreme weather events, and a range of economic, social, and environmental sustainability challenges. As these disruptions intensify, enhancing Supply Chain Resilience (SCR) has become a strategic priority. This study investigates how Distributed Ledger Technology (DLT) can contribute to SCR by mitigating vulnerabilities and strengthening key capabilities within global supply chains. A qualitative research approach is employed, utilizing expert evaluations to examine DLTâs impact on supply chain vulnerabilities and capabilities. Five workshops were conducted with 25 industry professionals from logistics, IT, procurement, and risk management. Experts examined how DLT could address disruptions stemming from supplier instability, poor traceability, and regulatory and environmental pressures, while highlighting its potential to drive ethical sourcing and environmentally responsible practices. The structured discussions were guided by theoretical frameworks and expert evaluations were synthesized into two analytical matrices illustrating DLTâs influence on SCR. The findings reveal that the contribution of DLT to SCR and sustainability is highly context-dependent, with its effectiveness hinging on how it is embedded within governance structures and aligned with the interplay of complementary technologies. Building on these insights, the study presents the DLT-LFL (Distributed Ledger TechnologyâLearning Feedback Loop) framework, which integrates sensing, decision-making, adaptation, and predictive learning from distributed operational data, allowing supply chains to better anticipate disruptions, adjust processes dynamically, and continuously strengthen resilience and sustainable practices. The study also develops a practical checklist to assess how effective DLT applications and their integration with predictive and AI-driven analytics reduce vulnerabilities, strengthen capabilities, mitigate risks, and support adaptive decision-making.
Existing distributed ledger protocols either incur a high communication complexity and are thus suited to systems with a small number of processes (e.g., PBFT), or rely on committee-sampling-based approaches that only work for a very large number of processes (e.g., Algorand). Neither of these lines of work is well-suited for moderate-scale distributed ledgers ranging from a few hundred to a thousand processes, which are common in production (e.g, Redbelly, Sui). The goal of this work is to design a distributed ledger with sub-linear communication complexity per process, sub-quadratic total communication complexity, and low latency for finalizing a block into the ledger, such that it can be used for moderate-scale systems. We propose QScale, a protocol in which every process incurs only $\widetilde{O}(Îș\sqrt{n})$ communication complexity per-block in expectation, $\widetilde{O}(nÎș)$ total communication complexity per-block in expectation, and a best-case latency of $O(Îș)$ rounds while ensuring safety and liveness with overwhelming probability, with $Îș$ being a small security parameter.
Open access
2 source records
cs.DC
Complex Systems and Decision Making
Systems Engineering Methodologies and Applications
How do breakthroughs emerge in unpredictable environments? This paper develops a unified framework for systemic innovation by integrating eight key concepts: exaptation, serendipity, emergence, co-optation, bricolage, affordances, recombinant innovation, and effectuation. By synthesizing insights from complexity science, sociology, and entrepreneurship, we reveal how creativity flourishes when innovators repurpose existing elements, harness uncertainty, and leverage unexpected affordances. Unlike conventional models that emphasize structured problem-solving, this framework captures the nonlinear, adaptive, and systemic nature of creativity in innovation ecosystems. We illustrate its applicability across diverse casesâfrom the exaptation of mRNA vaccines to the recombinant innovation of AI-driven drug discovery, the co-optation of gig work by tech giants, and the emergence of decentralized finance. Our findings suggest that transformative creativity is not a solitary act, but an emergent systems-level process shaped by adaptive recombination and strategic improvisation. By shifting the focus from predictive planning to creative adaptation, this study provides a novel roadmap for navigating uncertainty and fostering systemic change. It offers both scholars and practitioners an actionable lens to harness creativity, unlock latent affordances, and scale innovation in complex environments.
This paper uses the concept of transpoiesis to describe the mechanisms that sustain social movements. Emerging from ethnographic research on the World Social Forum (WSF) and inspired by systems theory, transpoiesis emphasizes the dynamic balance within social movements between decentralized organization and strategic coherence. This differentiates it from autopoiesis, which focuses on self-sustaining systems that maintain and reproduce their structure autonomously through internal processes, rather than emphasizing the dynamic balance between decentralized organization and strategic coherence. Transpoiesis offers a particularly instructive model in the digital age, when classical explanations often fail to account for the rapid pace of change, innovation, flexibility and decentralized collaboration that characterize modern organizations. The concept aids in understanding how social movements build collective identities, navigate organizational dynamics, structure collective learning, and contribute to social change. Moreover, it reflects the broader shift toward network-based arrangements in contemporary organizations, an adaptation to the complexities of the digital environment.
Nina-Birte Schirrmacher, Johannes Rude Jensen, Michel Avital, Omri Ross
Accountability is crucial for the success of organized social enterprises. In centralized organizations, hierarchical structures clearly define accountability. However, in decentralized organizations, which rely on technology for collaboration, accountability can be ambiguous because, in many cases, these organizations lack centralized planning, have no formally-identified leadership, and allow members to leave without obvious consequences. This study examines how decentralized organizations, specifically decentralized autonomous organizations (DAOs), enact accountability. We conducted a theory-building study using digital data from a DAO to explore the enacted accountability mechanisms. The findings revealed two main approaches. First, iterative public governance forums provide âsoftâ accountability, fostering answerability over time. Second, these forums often lead to âhardâ accountability, where binary voting via digital tokens allows for immediate sanctioning when deemed appropriate by members. These insights advance knowledge on accountability in decentralized organizations, which constitute a fast-growing sector of technology-dependent work environments.
The United Nationsâ sustainable development goals (SDGs) present a global challenge that demands innovative solutions. Combining emerging technologies can be a transformative approach to achieving these goals and overcoming associated challenges. Blockchain provides a secure and transparent platform, while big data and data mining enable the analysis of vast datasets to identify critical areas and measure progress. Additionally, blockchain facilitates secure knowledge exchange among stakeholders through knowledge sharing and management. Recent research demonstrates the effectiveness of blockchain in implementing SDGs. Our study explores the benefits of various technologies and proposes a hybrid model based on Ethereum. This model leverages additional technologies to enhance performance, increase transparency, and reduce gas fees. This combination empowers informed decision-making and accelerates progress towards a sustainable future.
Blockchain is a distributed ledger where partici-pating users with diverse and varying trust levels come to an agreement on the content of a ledger using a mechanism called consensus protocols. As the interest and adaptability of the blockchain technology deepens, the quest for consensus protocols that strike a harmonious balance between throughput, energy efficiency, and security remains a priority. This paper introduces Proof of Success Rate (PoSR), a past behaviour-based consensus protocol, where past successes and failures of a node determines its fate in the network. PoSR leverages the success rating of nodes as a dynamic metric to finely scale the network difficulty of nodes. Nodes with significantly high success rates will find the target hash faster and do less work in mining compared to those with lower rates. We simulated PoSR on SIM-P, a flexible consensus protocol simulator and evaluated its performance using through-put, energy consumption and resistance against 51% attacks as metrics. The performance of PoSR was subsequently compared to three (3) existing consensus protocols (PoW, PoRX, and poC) that were previously simulated on SIM-P. The experimental results shows that PoSR has a higher throughput, records lower energy consumption, and demonstrates better resistance against a 51% attack than PoW. This result highlights the effectiveness of the success rate in PoSR, which scales network difficulty based on the nodes' success rates, allowing nodes with higher rates to find the target hash faster. Additionally, the result shows that it is more expensive for a 51% attacker to succeed in PoSR than in PoW.
Health Systems, Economic Evaluations, Quality of Life
Stakeholder theory suggests an array of different human actors-from individuals to collectives with various concerns-need to be considered in organizational decision-making. Yet recent advancements in agentic technologies, including artificial intelligence (AI), machine learning algorithms (ML), and distributed ledger technologies (DLTs), promise to disrupt this human-only affair. Critically, these technologies possess the agency to intentionally constrain, complement, or substitute for human action. As such, we frame these technologies as the basis of a potent new type of stakeholder: synthetic stakeholders. A synthetic stakeholder is a technology-based agent(s) that can learn and act as an independent representative in organizational decision-making processes. In this paper, we theorize the bounds of synthetic shareholders and address how they can engage in organizational decision-making. This research shows how often disregarded stakeholders, such as the natural environment, can gain a powerful and independent âvoiceâ in organizational decision-making (Geisel, 1971).
To solve some of the challenges of traditional science, such as restricted access to funding, centralized governance, and siloed knowledge dissemination, decentralized science (DeSci) has emerged as a transformative approach facilitated by blockchain technology, Decentralized Autonomous Organizations (DAOs), and Web3. However, the emerging field of DeSci, faces several challenges, such as the absence of an organizational framework to describe its inherent complexities. This study introduces the Decentralized Science Pyramid Framework (DSPF), an innovative adaptation of Mintzbergâs organizational structure, adapted to the unique demands and properties of DeSci. The DSPF delineates a structured model for DeSci projects that integrates technology, governance, community engagement, and application within a decentralized context. Through the introduction of the DSPF, this research highlights the operational dynamics of DeSci, focusing on the practical application of Mintzbergâs theories to address real-world scientific challenges. The case study of VitaDAO, a decentralized autonomous organization exemplifying the core principles of DeSci, demonstrates the practical applicability of the DSPF. This study not only advances the academic discourse on DeSci but also offers practical insights for practitioners, innovators, and policymakers, marking a substantial step toward realizing the full potential of decentralized science.
E. A. Van Der Heijden, B.C. van Mierlo, Stan Majoor, Pieter J. Beers
Abstract Conflict lies at the core of urban sustainability transitions and the indispensable structural changes that accompany them. In this chapter we examine the RESILIO project, a multi-actor collaboration in Amsterdam aiming to transition towards a 'climate proof' city through smart water retention systems on urban roofs. The focus is on the conflict that emerged during discussions about controlling the smart valves on the rooftops which are designed to prevent urban flooding. Using a discourse analytical framework, the study analyses participant interactions, conflicting positions, and discursive strategies employed by the partners involved in the initiative. Participants utilised several discursive strategies, including identity, stake, and accountability management, to manage their positions in the conflict and influence the discourse. The study highlights the challenges of addressing conflict that involves redefining accountability and responsibility between public and private actors in the collaborative setting of transition initiatives. By doing so the findings contribute to a deeper understanding of how conflict can shape learning processes and foster sustainable urban transitions.
Alberto Partida, Saki Gerassis, Regino Criado, Miguel Romance · 6 authors
In this article, we model the two most market-capitalised public, open and permissionless blockchain implementations, Bitcoin (BTC) and Ethereum (ETH), as a System of Systems (SoS) of public blockchains. We study the concepts of blockchain, BTC, ETH, complex networks, SoS Engineering and intentional risk. We analyse BTC and ETH from an open SoS perspective through the main properties that seminal System of Systems Engineering (SoSE) references propose. This article demonstrates that these public blockchain implementations create networks that grow in complexity and connect with each other. We propose a methodology based on a complexity management lever such as SoSE to better understand public blockchains such as BTC and ETH and manage their evolution. Our ultimate objective is to improve the resilience of public blockchains against intentional risk: a key requirement for their mass adoption. We conclude with specific measures, based on this novel systems engineering approach, to effectively improve the resilience against intentional risk of the open SoS of public blockchains, composed of a non-inflationary money system, âsound moneyâ, such as BTC, and of a world financial computer system, âa financial conduitâ, such as ETH. The goal of this paper is to formulate a SoS that transfers digital value and aspires to position itself as a distributed alternative to the fiat currency-based financial system.