Building a decentralized industrial alliance with the information system empowered by blockchain

Abstract

The traditional industrial chain consists of a group of entities that are familiar with each other, and the relationship between the entities is maintained by signing contracts. However, on the one hand, the inability to reach mutual trust between unfamiliar entities limits the collaboration of entities, and on the other hand, most of the profits in the industrial chain are grabbed by the dominant enterprises. In this paper, an information system for collaboration among business entities is developed based on blockchain, based on which a business model called Decentralized Industry Alliance (DIA) is proposed. Transactions and profit distribution in the DIA are executed by smart contracts, which enables unfamiliar entities to trust each other without relying on a third party. Any entity that voluntarily complies with the smart contracts automatically becomes a member of the DIA, thereby promoting the expansion of the industry scale. The smart contracts distribute profits according to each entity’s contribution to the alliance, so as to ensure the fairness of value distribution. A case about the alliance of elderly care industry is carried out, which shows that the DIA achieves rapid expansion on the premise of ensuring fairness. As a general business model in the web 3.0 era, the DIA can be referenced by other industries.

Keywords

• Decentralized industry alliance
• Information system
• Blockchain