Year-end Sale % OFF 
Abstract
We apply institutional cryptoeconomics to the information problems in global trade, model the incentives under which blockchain-based supply chain infrastructure will be built, and make predictions about the future of supply chains. We argue blockchain may fundamentally change the patterns and dynamics of how, where and what we trade by: (1) facilitating new forms of economic organisation governing supply chain coordination (e.g. the V-form organisation) (2) shifting economic power towards the ends of supply chains (e.g. primary producers) by decreasing information asymmetries (3) de-commoditising goods and disaggregating price signals by changing the dimensions along which goods may be reliably differentiated and (4) lowering reliance on proxies (e.g. production within national borders) for the quality of goods.
Highlights
Blockchain and other distributed ledger technologies are poised to act as new economic infrastructure for global trade networks [1]
In this paper we draw on the existing literature of blockchain-based supply chains [1, 3] together with the emerging field of institutional cryptoeconomics [4,5,6] to ask the question: how might blockchain-based supply chain infrastructure change our global trade networks? We first model the incentives necessary for supply chain actors to implement and build this infrastructure, before making four predictions:
Distributed ledger technologies are being adopted by firms including IBM, Maersk and Walmart as the economic infrastructure to achieve greater levels of assurance over the nature and provenance of goods as they move along supply chains [3]
Summary
Blockchain and other distributed ledger technologies are poised to act as new economic infrastructure for global trade networks [1]. Blockchain-based supply chains compete with other institutional governance systems (firms, markets and governments) to overcome information costs.
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
