Blockchain-based Governance, Risk Management, and Compliance for Fractional Ownership: Design and Implementation of A Decentralized Autonomous Agent System

2023 | HICSS | Citations: 0

Authors: Cu, Mina; Peko, Gabrielle; Chan, Johnny; Sundaram, David

Abstract: Fractional ownership makes homeownership more affordable. But there are challeng ... Expand

Abstract: Fractional ownership makes homeownership more affordable. But there are challenges in a fractional ownership real estate transaction (FORET) regarding governance, risk management and compliance (GRC) processes. Centralized GRC solutions are less effective in managing the tiered structure of communications in a FORET, which can lead to principal-agent problems such as information asymmetry, risk aversion, and moral hazard. In this research we investigate how these principal-agent problems in FORET could be mitigated. Using an agency theory perspective, we adopt a design science multimethodological research approach. We propose conceptual and system artefacts to support the design and implementation of a decentralized autonomous agent system. These artefacts deliver a formal problem representation structure related to centralized GRC in fractional ownership. We illustrate our solution with a system prototype and implementation. We evaluate the research outputs and compare them with existing GRC systems. This paper contributes to the understanding of GRC in supporting fractional ownership decision making. Collapse

Topics: blockchain decision making cloud computing smart contract moral hazard

Methods: design artifact design artifact testing design science field study theory development

Theories: agency theory lemon market theory

Perceived Social Norms, Token Rewards, and Cooperation in Decentralized Autonomous Organizations (DAOs)

2023 | International Conference on Information Systems | Citations: 0

Authors: Dong, Sichen; Hu, Daning; Chau, Michael

Abstract: Decentralized autonomous organizations (DAOs) offer a novel paradigm, fostering ... Expand

Abstract: Decentralized autonomous organizations (DAOs) offer a novel paradigm, fostering members' decentralized cooperation towards collective goals. Central to this are token rewards, aligning individuals' interests with DAO's collective goals to enhance cooperation. We introduce a theoretical model proposing that DAO members' perceived social norms impact the effectiveness of this token-based interest alignment mechanism by influencing members' tendencies to hold tokens, subsequently affecting their cooperative behaviors. By analyzing data collected from the prominent social DAO, Steem, our empirical findings validated this proposition. Our study stands at the forefront of elucidating the complex interplay between economic incentives and social motivations in DAOs, particularly the interest alignment mechanism. Moreover, based on the basic rationales of profit-sharing arrangements in traditional organizations, we transpose this understanding to the context of DAOs, offering a nuanced articulation of the interest alignment mechanism, which is absent in the current DAO literature. Collapse

Topics: social norm blockchain structured query language application programming interface social media

Methods: theory development economic model experiment

Theories: economic theory

Governance of Decentralized Platform Ecosystems

2023 | International Conference on Business Informatics | Citations: 0

Authors: Heimburg, Vincent; Alakbarov, Hanna; Wiesche, Manuel

Abstract: Platform governance is critical for the success of digital platform ecosystems ... Expand

Abstract: Platform governance is critical for the success of digital platform ecosystems (DPEs). However, we know little about the governance of decentralized DPEs. Studies on centralized DPEs find that platform owners decide about, implement, and adapt the governance practices over the lifecycle of a platform ecosystem. It remains unclear what the growing body of literature on decentralized platform ecosystems reveals about their governance. To close this gap, we conducted a structured literature review of Information Systems literature. In 54 studies, we find five key dimensions of governance of decentralized DPEs. We contribute to literature by contrasting the governance practices, mechanisms, and processes of centralized DPEs and decentralized DPEs. We highlight three main differences: Ex-ante definition rather than an evolution of governance, distributed and overlapping roles (platform founders, platform enhancers, platform validators), and collective decision-making by fractional platform owners. Collapse

Topics: digital platform decision making decentralized autonomous organization blockchain digital ecosystem

Methods: structured literature research literature sample literature study

Theories: socio technical theory

Enabling Efficient Deduplication and Secure Decentralized Public Auditing for Cloud Storage: A Redactable Blockchain Approach

2023 | ACM Transactions on Management Information Systems | Citations: 0

Authors: Mishra, Rahul; Ramesh, Dharavath; Kanhere, Salil S.; Edla, Damodar Reddy

Abstract: Public auditing and data deduplication are integral considerations in providing ... Expand

Abstract: Public auditing and data deduplication are integral considerations in providing efficient and secure cloud storage services. Nevertheless, the traditional data deduplication models that support public auditing can endure the enormous waste of storage and computation resources induced through data redundancy and repeated audit work by multiple tenants on trusted third-party auditor (TPA). In this work, we introduce blockchain-based secure decentralized public auditing in a decentralized cloud storage with an efficient deduplication model. We employ blockchain to take on the task of centralized TPA, which also mitigates the implications of malicious blockchain miners by using the concept of a decentralized autonomous organization (DAO). Specifically, we employ the idea of redactability for blockchain to handle often neglected security issues that would adversely affect the integrity of stored auditing records on blockchain in decentralized auditing models. However, the proposed model also employs an efficient deduplication scheme to attain adequate storage savings while preserving the users from data loss due to duplicate faking attacks. Moreover, the detailed concrete security analysis demonstrates the computational infeasibility of the proposed model against proof-of-ownership, duplicate faking attack (DFA), collusion attack, storage free-riding attack, data privacy, and forgery attack with high efficiency. Finally, the comprehensive performance analysis shows the scalability and feasibility of the proposed model. Collapse

Topics: blockchain data encryption outsourcing cloud computing cloud storage

Methods: experiment computational algorithm mixed method business process modeling

A Multi-Perspective Framework for Research on (Sustainable) Autonomous Systems

2022 | Business & Information Systems Engineering | Citations: 0

Authors: Beck, Roman; Dibbern, Jens; Wiener, Martin

Abstract: 1 Within an AS, the ultimate agency and thus accountability typically still res ... Expand

Abstract: 1 Within an AS, the ultimate agency and thus accountability typically still rests with human agents (e.g., the system originator or owner).Bus Inf Syst Eng 64 (3): 265-273 (2022) Collapse

Topics: information system use artificial intelligence sensemaking decentralized autonomous organization

Methods: case study design artifact literature sample synthesis

From Constitution to Disbandment: Ephemeral Decentralized Autonomous Organizations

2022 | International Conference on Information Systems | Citations: 0

Authors: Pahuja, Aseem; Taani, Iman

Abstract: With the rise of blockchain technologies, Decentralized Autonomous Organization ... Expand

Abstract: With the rise of blockchain technologies, Decentralized Autonomous Organizations (DAO) have become popular. A subset of these organizations that we term Ephemeral DAOs are formed for the explicit purpose of achieving a community approved objective within a limited time span. This renders their life cycle temporary. In this short paper, we present a case study of one such DAO known as the ConstitutionDAO which was created for the sole purpose of acquiring an original copy of the US constitution. Through this case study, we seek to explore how blockchain technologies enable mission-driven ephemeral DAOs. Preliminary findings reveal that under time pressure and high uncertainty, elements of financial composability, progressive democracy, and high levels of transparency emerge as key drivers of these ephemeral organizations. The paper provides theoretical implications for organizational theory and blockchain literature, and practical implications for creating such an organization. Collapse

Topics: blockchain Twitter decentralized autonomous organization blog crowdfunding

Methods: case study qualitative interview qualitative content analysis archival research network analysis

Theories: organizational theory

Blockchain Vending Machine: A Smart Contract-Based Peer-to-Peer Marketplace for Physical Goods

2022 | HICSS | Citations: 0

Authors: Schär, Fabian; Schuler, Katrin; Wagner, Tobias

Abstract: In this paper, we propose an autonomous vending machine that is governed by a pu ... Expand

Abstract: In this paper, we propose an autonomous vending machine that is governed by a public Blockchain and smart contracts platform. Set up as a decentralized autonomous organization, it serves as an open marketplace for physical goods, where anyone can buy and/or sell objects. We propose a basic architecture for the machine, analyze pricing and fee mechanisms and examine potential pitfalls. Moreover, we discuss open issues, possible extensions and further areas for improvement. We conclude that the deployment of such machines could significantly improve our understanding of decentralized autonomous organizations and build a bridge between virtual and physical markets. Insights gained from such an experiment may raise important questions for further research. Collapse

Topics: blockchain smart contract peer-to-peer model decentralized autonomous organization price management

Methods: experiment

A Taxonomy of Decentralized Autonomous Organizations

2022 | International Conference on Information Systems | Citations: 5

Authors: Ziegler, Christian; Welpe, Isabell

Abstract: Decentralized Autonomous Organizations (DAOs) are trustless organizations that ... Expand

Abstract: Decentralized Autonomous Organizations (DAOs) are trustless organizations that automate transactions, operations, and decisions without a trusted third party (Wang et al. 2019). So far, this research area is missing a taxonomy that investigates the different dimensions and characteristics of DAOs and the many different forms they can take. This paper addresses this research gap by creating a data-driven taxonomy analyzing 72 DAOs. In doing so, we identify the three main categories treasury, community, and governance, seven sub-categories, 20 dimensions, and 53 characteristics. In addition, we provide dimensions with inadmissible characteristics DAOs cannot take, as well as dimensions used to assess DAOs. The results of our agglomerative clustering are five distinct DAO types: On-chain product and service DAOs, off-chain product and service DAOs with community focus or with investor focus, investment-focused DAOs, and networking-focused community DAOs. Collapse

Topics: website brainstorming smart contract blockchain Ethereum

Methods: qualitative interview agglomerative hierarchical clustering cluster analysis hierarchical clustering theoretical contribution

An Exploration of Governing via IT in Decentralized Autonomous Organizations

2021 | International Conference on Information Systems | Citations: 11

Authors: Mini, Tobias; Ellinger, Eleunthia Wong; Gregory, Robert; Widjaja, Thomas

Abstract: A decentralized autonomous organization (DAO) is a distinct form of platform me ... Expand

Abstract: A decentralized autonomous organization (DAO) is a distinct form of platform metaorganization that heavily relies on smart contracts running on blockchains to govern a distributed network of autonomous actors, thereby continuing the shift toward governance via IT. Motivated by the fact that this shift toward governance via IT in DAOs challenges established assumptions in the literature on IT governance, we explore how DAOs are governed via IT. For this purpose, we applied techniques of grounded theory to build inductive theory by analyzing five cases of DAOs (Aragon, Flare Networks, KyberDAO, MakerDAO, and MolochDAO) based on white papers, blog entries, and newspaper articles. Our findings implicate that DAOs governed via IT synthesize autonomy and alignment through the mechanism of "establishing algorithmic organization." At the same time, DAOs rely on a more pluralistic and decentralized form of algorithmic management through the mechanism of "taming algorithmic power." Collapse

Topics: IT governance blockchain smart contract blog Ethereum

Methods: computational algorithm design artifact grounded theory theory development qualitative coding

Hanseatic Governance: Understanding Blockchain as Organizational Technology

2019 | International Conference on Information Systems | Citations: 23

Authors: Miscione, Gianluca; Goerke, Tobias; Klein, Stefan; Schwabe, Gerhard; Ziolkowski, Rafael

Abstract: Blockchain technology provides a distributed ledger and is based on a logic of p ... Expand

Abstract: Blockchain technology provides a distributed ledger and is based on a logic of peer to peer authentication. It gained prominence with the rise of cryptocurrencies but provides a much broader field of possible applications. While it has been originally closely linked to a libertarian agenda rejecting organizations, its developments have illustrated that this ideological framing is being reversed in practice. Based on contrastive empirical cases, the purpose of our paper is to discuss blockchain as an organizational technology. Its peculiar mode of governance, which we name ‘Hanseatic’, needs to mediate between the fluidity typical of Free and Open Source Software development and the immutability that use organizations adopt blockchain for. Collapse

Topics: blockchain Ethereum Bitcoin distributed ledger technology electronic authentication

Methods: case study computational algorithm personal interview design science participant observation

Theories: transaction cost economics