Jabbar, A and Dani, S ORCID: https://orcid.org/0000-0001-8547-0762 (2020) Investigating the link between transaction and computational costs in a blockchain environment. International Journal of Production Research, 58 (11). 3423 - 3436.

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Abstract

The research and thinking pertaining to blockchain have thus far focused on cryptocurrency and Bitcoin. However, there is increased interest in using the technology to solve operational challenges in manufacturing and service supply chains. In this study, we introduce a new implication of using blockchain technology and propose two unique contributions. First, we introduce the notion of computational costs (measured in units of gas) as an essential mechanism for completing operational transactions in the blockchain environment. Second, we discuss the use of smart contracts and their influence on operational transactions. To investigate the link between blockchain transaction and computational costs, this study uses an experimental methodology. We develop and implement a fully functional virtual public blockchain to store, validate, and maintain transactions. The methodology provides a process to measure the computational costs, frequency, and intensity of transactions. This research contributes to conceptual research on the blockchain implementation paradigm. Its novelty stems from the identification of computational costs for operational transactions and use of an experimental methodology. This research provides managers an insight into the design of smart contract transactions in a supply chain from a cost perspective.

Item Type: Article
Additional Information: © 2020 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The final version of this article and all relevant information regarding this paper can be found at; https://www.tandfonline.com/doi/full/10.1080/00207543.2020.1754487
Uncontrolled Keywords: Blockchain, computational costs, operational transaction costs, smart contracts, supply chain
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Faculty of Humanities and Social Sciences > Keele Business School
Depositing User: Symplectic
Date Deposited: 18 Jun 2020 09:54
Last Modified: 18 Jun 2020 09:54
URI: https://eprints.keele.ac.uk/id/eprint/8138

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