Blockchain

How Blockchain Can Simplify Partnerships Article

• Collaboration is heart of business

• Collaboration is not easy - lying, renegotiating, hard to keep track

• Blockchain is going to transform how everything works - business wise

• Blockchain makes it impossible to change anything

• Smart contracts - programmed codes that are automatically executed once certain conditions are met

• Example - Maersk - initated TradeLens Blockchain - uses smart contracts to automate tasks in shipping process

• Partner selection - can simplify partner selection

• Blockchain protocols CANNOT be easily alters once put in place

• Challenges: technical aspects

 What is blockchain (formal def)?

An immutable digital ledger consisting of a linear (chronological) chain of blocks containing information about transactions

What is blockchain (simple def)?

A digital record that keeps information about transactions in a chain of blocks, arranged in order and unable to be changed.

Blockchain importance

Once block and transactions are created they are permanent and cannot be changed

What is a block?

A basic unit of data storage that records and secures information

Block synonym (1 word)

Transactions

3 key components of a block

1. meta data 

2. transaction count

3. a list of transations 

What is in meta data of block?

1. time of creation of the block

2. a hash (encryption) of transactions contained in block

3. random # called nonce that proves the block is valid and legitimately added to the blockchain

What are the 2 types of blockchain?

1. permissioned

2. decentralized (permissionless)

Permissioned blockchain

only entities with the permission and authority can make modifications to blocks and the blockchain

decentralized blockchain

digital ledger that is not controlled by one person, company, or governemt

does decentralized (permissionless) blockchain make it hard to cheat or change records?

Yes. transactions are peer to peer. When transactions are made or a block is added, everyone copy is updated. cannot cheat or change records 

cryptocurrency 

cryptocurrency is a type of digital money that
uses advanced encryption techniques to secure
transactions, control the creation of new units,
and verify transfers on a decentralized system

what is the underlying architecture used for transactions of cyptocurrencies?

blockchain 

most transactions on blokchains constitute moving _____ between _____ on the blockchain

cryptocurrency between owners

Crypto is _____ and are used to perform transactions on the blokchain the same way money is used to perform transactions in the real world

fungible

fungible means

means something can be easily exchanged for another of the same kind, and each unit is considered equal in value.

nonfungible (unique and cannot be exchanged)

art and nft’s

how are cryptocurrency transactions recorded?

on the blockchain

where do users store their cryptocurrency?

in digital wallets, secured by private keys(like a password)

how are crpyocurrencies different from regualr currencies?

they are not controlled by central banks or governments

What is a crypto coin?

A crypto coin is a type of token that functions as the native currency of a blockchain.

Give an example of a crypto coin

bitcoin

what is a bitcoin

Bitcoin is a type of cryptocurrency — a digital currency that lets people send and receive money over the internet without using a bank.

bitcoin key points

• It runs on its own blockchain called the Bitcoin blockchain.

• Transactions are recorded publicly and cannot be changed.

• Bitcoin is decentralized, meaning no government or bank controls it.

• It can be used like money to buy goods, services, or trade for other currencies.

Benefits of cryptocurrency

1. fast and cheap payments

2. greater financial inclusion (no bank)

3. security through blockchain

risks of cryptocurrency

1. potential for misuse (money laundering)

2. high price volatility

3. regulatory uncertain

4. loss of funds if private keys are lost

high price volatility meaning

prices changes a lot and quickly

“How Blockchain Can Simplify Partnerships”
(Lumineau, Wang, and Luang)

“How Blockchain Can Simplify Partnerships”
(Lumineau, Wang, and Luang)
• Collaborations and partnerships are essential to
business, but sometimes complex to manage.
• Blockchain is useful in support of business
partnerships when trust and information sharing are
important.
‐ A single and secure version of information is
available and shared by all parities.
‐ Enables use of smart contracts (programmable
code that is executed when certain conditions are
met).

Mediledger

blockchain drug supply chain tracking

IBM food trust

blockchain baed partnership

How does blockchain help partner selection

it enhances trust and transparency

how does blockchain help negotiations and agreement formation

all details need to be worked out ex ante

how does blockchain help execution

programmale contract 

blockchain works well when agreements are

precies and outcome are verifiable

blockchain does not work well where quality of delivery cannot be___

cannot be precisely defined but rather requires subjective assessment and human judgement