Blockchain-Enabled Integrated Market Platform for Contract Production
Contract production and transaction are very common and important since it can greatly reduce future uncertainty and is well-organized by buyers, sellers, and trusted third parties (TTPs). However, current commodity trading systems (such as spot, futures, and forward contract) are still traditional...
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doaj-495ff572b5c94547b8db37d2070c0d932021-03-30T04:55:13ZengIEEEIEEE Access2169-35362020-01-01821100721102710.1109/ACCESS.2020.30396209265212Blockchain-Enabled Integrated Market Platform for Contract ProductionChia-Hung Liao0https://orcid.org/0000-0003-3794-1042Hui-En Lin1Shyan-Ming Yuan2https://orcid.org/0000-0002-3621-9528Department of Computer Science, National Chiao Tung University, Hsinchu, TaiwanDepartment of Computer Science, National Chiao Tung University, Hsinchu, TaiwanDepartment of Computer Science, National Chiao Tung University, Hsinchu, TaiwanContract production and transaction are very common and important since it can greatly reduce future uncertainty and is well-organized by buyers, sellers, and trusted third parties (TTPs). However, current commodity trading systems (such as spot, futures, and forward contract) are still traditional centralized structures, which means that there may always be concerned about the single point of failure and data corruption. Besides, even though there already exists fragmentary decentralized applications (DApps) for the marketplace, order management, resale, delivery, financing, and insurance, they are not integrated for operating contract production and transaction comprehensively. In this work, a blockchain-enabled integrated marketing platform (BeIMP) is proposed for contract production and transactions. BeIMP is a consortium blockchain (CsBc) framework that enables better safety, efficiency, and interoperability among stakeholders. BeIMP can directly match producers and consumers and reduce the problem of intermediaries' improper market operation. BeIMP has a three-tier risk diversification mechanism. First, both parties can know the quantity and price according to the contract specification (CSpec) in advance to avoid future uncertainty. Second, the buyers can resell the established order if they need, thereby diversifying the risk. Third, the concept of insurance is introduced to reduce force majeure and other systemic risks. BeIMP can also help producers get the loan from the financial institution (FI) if they need fund for production. We implement and demonstrate the prototype in contract farming (CF) first and discuss its generalizability to other scenarios. Experiment results show that the smart contract (SC) function is stable enough and the proof of authority (PoA) has the advantage in throughput and can give users a better experience.https://ieeexplore.ieee.org/document/9265212/Consortium blockchainsmart contractcontract farmingrisk diversificationorder managementfinancing and insurance |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Chia-Hung Liao Hui-En Lin Shyan-Ming Yuan |
spellingShingle |
Chia-Hung Liao Hui-En Lin Shyan-Ming Yuan Blockchain-Enabled Integrated Market Platform for Contract Production IEEE Access Consortium blockchain smart contract contract farming risk diversification order management financing and insurance |
author_facet |
Chia-Hung Liao Hui-En Lin Shyan-Ming Yuan |
author_sort |
Chia-Hung Liao |
title |
Blockchain-Enabled Integrated Market Platform for Contract Production |
title_short |
Blockchain-Enabled Integrated Market Platform for Contract Production |
title_full |
Blockchain-Enabled Integrated Market Platform for Contract Production |
title_fullStr |
Blockchain-Enabled Integrated Market Platform for Contract Production |
title_full_unstemmed |
Blockchain-Enabled Integrated Market Platform for Contract Production |
title_sort |
blockchain-enabled integrated market platform for contract production |
publisher |
IEEE |
series |
IEEE Access |
issn |
2169-3536 |
publishDate |
2020-01-01 |
description |
Contract production and transaction are very common and important since it can greatly reduce future uncertainty and is well-organized by buyers, sellers, and trusted third parties (TTPs). However, current commodity trading systems (such as spot, futures, and forward contract) are still traditional centralized structures, which means that there may always be concerned about the single point of failure and data corruption. Besides, even though there already exists fragmentary decentralized applications (DApps) for the marketplace, order management, resale, delivery, financing, and insurance, they are not integrated for operating contract production and transaction comprehensively. In this work, a blockchain-enabled integrated marketing platform (BeIMP) is proposed for contract production and transactions. BeIMP is a consortium blockchain (CsBc) framework that enables better safety, efficiency, and interoperability among stakeholders. BeIMP can directly match producers and consumers and reduce the problem of intermediaries' improper market operation. BeIMP has a three-tier risk diversification mechanism. First, both parties can know the quantity and price according to the contract specification (CSpec) in advance to avoid future uncertainty. Second, the buyers can resell the established order if they need, thereby diversifying the risk. Third, the concept of insurance is introduced to reduce force majeure and other systemic risks. BeIMP can also help producers get the loan from the financial institution (FI) if they need fund for production. We implement and demonstrate the prototype in contract farming (CF) first and discuss its generalizability to other scenarios. Experiment results show that the smart contract (SC) function is stable enough and the proof of authority (PoA) has the advantage in throughput and can give users a better experience. |
topic |
Consortium blockchain smart contract contract farming risk diversification order management financing and insurance |
url |
https://ieeexplore.ieee.org/document/9265212/ |
work_keys_str_mv |
AT chiahungliao blockchainenabledintegratedmarketplatformforcontractproduction AT huienlin blockchainenabledintegratedmarketplatformforcontractproduction AT shyanmingyuan blockchainenabledintegratedmarketplatformforcontractproduction |
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