Tarzan and chain: exploring the ICO jungle and evaluating design archetypes

in Electronic Markets (2022), 32

The phenomenon of a blockchain use case called initial coin offering (ICO) is drawing increasing attention as a novel funding mechanism. ICO is a crowdfunding type that utilizes blockchain tokens to allow ... [more ▼]

The phenomenon of a blockchain use case called initial coin offering (ICO) is drawing increasing attention as a novel funding mechanism. ICO is a crowdfunding type that utilizes blockchain tokens to allow for truly peer-to-peer investments. Although more than \$7bn has been raised globally via ICOs as at 2018, the concept and its implications are not yet entirely understood. The research lags behind in providing in-depth analyses of ICO designs and their long-term success. We address this research gap by developing an ICO taxonomy, applying a cluster analysis to identify prevailing ICO archetypes, and providing an outlook on the token value market performance for individual archetypes. We identify five ICO design archetypes and display their secondary market development from both a short-term and a long-term perspective. We contribute to an in-depth understanding of ICOs and their implications. Further, we offer practitioners tangible design and success indications for future ICOs. [less ▲]

Yes, I do: Marrying blockchain applications with GDPR

in Proceedings of the 55th Hawaii International Conference on System Sciences (2022, January 04)

Due to blockchains’ intrinsic transparency and immutability, blockchain-based applications are challenged by privacy regulations, such as the EU General Data Protection Regulation. Hence, scaling ... [more ▼]

Due to blockchains’ intrinsic transparency and immutability, blockchain-based applications are challenged by privacy regulations, such as the EU General Data Protection Regulation. Hence, scaling blockchain use cases to production often fails to owe to a lack of compliance with legal constraints. As current research mainly focuses on specific use cases, we aim to offer comprehensive guidance regarding the development of blockchain solutions that comply with privacy regulations. Following the action design research method, we contribute a generic framework and design principles to the research domain. In this context, we also emphasize the need for distinguishing between applications based on blockchains’ data integrity and computational integrity guarantees. [less ▲]

The De-Central Bank in Decentralized Finance: A Case Study of MakerDAO

in Proceedings of the 55th Hawaii International Conference on System Sciences (2022)

Countless decentralized finance (DeFi) applications of the past years have suffered from the high volatility and speculative behavior surrounding their underlying crypto assets. While the academic debate ... [more ▼]

Countless decentralized finance (DeFi) applications of the past years have suffered from the high volatility and speculative behavior surrounding their underlying crypto assets. While the academic debate has been flourishing in these areas, Decentralized Autonomous Organizations (DAOs) have not received as much attention. This is the case even though they could offer an opportunity to solve some of the underlying problems of existing cryptocurrencies and ecosystems, for example, by providing lower volatility and, thus, exchange rate stability. This paper presents an economic analysis of the MakerDAO, a DAO in DeFi. In doing so, we use a single case study methodology based on existing resources and expert interviews. It also uses monetary theory instruments to provide researchers and developers with insights into how DAOs are governed. Further, it serves to illustrate how IS research may support the development of future IT artifacts aimed at offering the infrastructure for DeFi applications. [less ▲]

Opportunities and Challenges of DLT (Blockchain) in Mobility and Logistics

Report (2019)

This report presents the economic potential, legal framework, and technical foundations required to understand distributed ledger (DL) / blockchain technology and llustrates the opportunities and ... [more ▼]

This report presents the economic potential, legal framework, and technical foundations required to understand distributed ledger (DL) / blockchain technology and llustrates the opportunities and challenges they present, especially in the mobility and logistics sectors. It was compiled by the blockchain laboratory at Fraunhofer FIT on behalf of the German Federal Ministry of Transport and Digital Infrastructure (BMVI). Its intended audience comprises young companies seeking, for example, a legal assessment of data protection issues related to DL and blockchain technologies, decisionmakers in the private sector wishing concrete examples to help them understand how this technology can impact existing and emerging markets and which measures might be sensible from a business perspective, public policymakers and politicians wishing to familiarize themselves with this topic in order to take a position, particularly in the mobility and logistics sectors, and members of the general public interested in the technology and its potential. The report does not specifically address those with a purely academic or scientific interest in these topics, although parts of it definitely reflect the current state of academic discussion. [less ▲]

Supporting communication and cooperation in the asylum procedure with Blockchain technology : A proof of concept by the Federal Office for Migration and Refugees

Report (2019)

The proof of concept showed that the use of Blockchain technology could support cross-organisational communication and cooperation in the asylum procedure. In addition, Blockchain could provide an ... [more ▼]

The proof of concept showed that the use of Blockchain technology could support cross-organisational communication and cooperation in the asylum procedure. In addition, Blockchain could provide an important foundation for the establishment of digital identities and allow an asylum seeker’s procedure to be tracked based on this identity. Admittedly, not all applicable data protection regulations were fully implemented in the proof of concept. However, the findings gained as part of the project provide a promising basis for the development of a Blockchain-based solution for the asylum procedure that complies with data protection requirements. Moreover, the developed concept could scale beyond Germany’s borders. Blockchain-based, transnational management of asylum procedures could therefore become a joint project of the European member states to strengthen cooperation while safeguarding federal structures. This means that Blockchain technology could be the start of digital federalism in Europe (including the asylum procedure). [less ▲]

Support of communication and cooperation in the asylum process with the help of blockchain: A feasibility study by the Federal Office for Migration and Refugees

Report (2018)

Digital technologies are changing our society in many ways. In addition to significant increases in productivity and new forms of value creation, the rapid digital change also brings with it a multitude ... [more ▼]

Digital technologies are changing our society in many ways. In addition to significant increases in productivity and new forms of value creation, the rapid digital change also brings with it a multitude of political and social challenges. While the digitization of the public sector in Germany is still facing challenges, other countries are already further. For example, Estonia has already largely digitized its administration. The federal government would also like to advance Germany with a targeted digitization strategy and strengthen public administration through the use of digital technologies. One of the focus technologies in this context is blockchain. Blockchain is a decentralized data structure, in which data in cryptographically linked blocks can be stored invariably and traceably. The essential concept of blockchain technology is to manage the data to be stored through a subscriber network instead of a central instance. In addition, new blockchain technologies make it possible to automate parts of the cross-agency process management. Due to its properties, blockchain technology offers a good opportunity for coordination in federal structures, as required by the German asylum process. In addition to one body primarily responsible, the Federal Office for Migration and Refugees, other authorities at both federal and state level are involved in the asylum process. For example, initial reception centers and immigration authorities are subordinate to the respective federal states or part of the local government. This results in a large number of process variants, heterogeneous IT infrastructures and an incomplete digital exchange of information. A cross-agency data source already exists in the form of the Central Register of Foreigners (AZR). The AZR contains a large amount of data that may be recorded and stored by the authorized authorities in accordance with applicable law (especially AZRG). In addition, there is a need for IT-based support for cross-agency communication and cooperation. The Federal Office for Migration and Refugees has now evaluated to what extent blockchain can contribute to overcoming these challenges and promote the establishment of digital identities in the asylum context as well as cross-agency communication and cooperation. A proof-of-concept project that the Federal Office carried out in the first half of 2018 serves as an essential reference point. The project began with the selection of the use case ("simplified asylum process") and a pre-evaluation of the suitability of the blockchain technology. After a positive pre-evaluation, a suitable system was developed by a mixed team from the Federal Office, the Fraunhofer FIT Business Informatics project group and a technology partner. The project was then evaluated according to a blockchain-specific evaluation framework. In addition to technical and professional aspects, the focus here was in particular on issues relating to data protection law. The proof-of-concept project has shown that the use of blockchain technology could support cross-agency communication and cooperation in the asylum process. In addition, blockchain could lay an important foundation for the establishment of digital identities and make the process flow of an asylum seeker traceable on the basis of such an identity. It is true that it has not yet been possible to fully implement all applicable data protection regulations in the developed proof-of-concept. However, the knowledge gained in the course of the project forms a promising basis for the development of a data protection-compliant blockchain-based solution for the asylum process. In addition, due to the federal structure taken into account, the developed concept could also be scaled beyond Germany's borders. A blockchain-based, transnational management of asylum processes could thus become a joint project of the European member states to strengthen cooperation while preserving federal structures. Blockchain technology could thus be the beginning of digital federalism in Europe (also in the asylum area). [less ▲]

A Solution in Search of a Problem : A Method for the Development of Blockchain Use Cases

in 24th Americas Conference on Information Systems (AMCIS) (2018)

Blockchain technology is a very recent and fast evolving phenomenon with the potential to disrupt various industries. Organizations are thus increasingly looking at the technology and are forming multi ... [more ▼]

Blockchain technology is a very recent and fast evolving phenomenon with the potential to disrupt various industries. Organizations are thus increasingly looking at the technology and are forming multi-functional teams to evaluate the technology and its impact on their businesses. However, researchers and practitioners still lack a technology-driven, systematic approach to understand the potential of blockchain and to develop convincing use cases. We address this research gap by applying an action design research approach and situational method engineering to propose a method for the development of blockchain use cases. Following this approach, we iteratively evaluated and further developed the proposed method through application and testing in four distinct industries. We thus derive constructive knowledge at the cutting edge of digital transformation, innovation management, and utilization of emerging technologies. In addition, our research supports practitioners in systematically developing blockchain use cases. [less ▲]

Don't Slip on the Initial Coin Offering (ICO) : A Taxonomy for a Blockchain-enabled Form of Crowdfunding

in 26th European Conference on Information Systems (ECIS) (2018)

Blockchain is rapidly evolving and there is an increasing interest in the technology in both prac-tice and academia. Recently, a blockchain use case called Initial Coin Offering (ICO) draws a lot of ... [more ▼]

Blockchain is rapidly evolving and there is an increasing interest in the technology in both prac-tice and academia. Recently, a blockchain use case called Initial Coin Offering (ICO) draws a lot of attention. ICO is a novel form of crowdfunding that utilizes blockchain tokens to allow for tru-ly peer-to-peer investments. Although, more than 4.5 billion USD have been invested via ICOs, the phenomenon is poorly understood. Scientific research lacks a structured classification of ICOs to provide further insights into their characteristics. We bridge this gap by developing a taxonomy based on real-world ICO cases, related literature, and expert interviews. Further, we derive and discuss prevailing ICO archetypes. Our findings contribute to theory development in the field of ICOs by enriching the descriptive knowledge, identifying design options, deriving ICO archetypes, and laying the foundation for further research. Additionally, our research pro-vides several benefits for practitioners. Our proposed taxonomy illustrates that there is no one-size-fits-all model of ICOs and might support the decision-making process of start-ups, investors and regulators. The proposed ICO archetypes indicate how common ICOs are designed and thus might serves as best practices. Finally, our analysis indicates that ICOs represent a valid alter-native to traditional crowdfunding approaches. [less ▲]

Cross-Organizational Workflow Management Using Blockchain Technology : Towards Applicability, Auditability, and Automation

in 51st Annual Hawaii International Conference on System Sciences (HICSS) (2018)

Bringing Blockchain technology and business process management together, we follow the Design Science Research approach and design, implement, and evaluate a Blockchain prototype for cross-organizational ... [more ▼]

Bringing Blockchain technology and business process management together, we follow the Design Science Research approach and design, implement, and evaluate a Blockchain prototype for cross-organizational workflow management together with a German bank. For the use case of a documentary letter of credit we describe the status quo of the process, identify areas of improvement, implement a Blockchain solution, and compare both workflows. The prototype illustrates that the process, as of today paper-based and with high manual effort, can be significantly improved. Our research reveals that a tamper-proof process history for improved auditability, automation of manual process steps and the decentralized nature of the system can be major advantages of a Blockchain solution for cross-organizational workflow management. Further, our research provides insights how Blockchain technology can be used for business process management in general. [less ▲]

Development of Disruptive Innovations with Blockchain: The Way to the Right Use Case

in Wirtschaftsinformatik & Management (2017)