The effect of applied blockchain on economic sustainability

Hany Ayaad, Autumn Bizon, Nermin Gohar

Abstract


Purpose: What matters is that blockchain may be used to record anything of value, not only financial transactions. It is becoming increasingly clear that blockchain technology will drastically alter several industries, notably finance. Without a question, the financial industry is leading the way in the use of blockchain technology. Blockchain is quickly transforming the world economy. Given that distributed ledger technology, or blockchain, has the potential to always have a positive impact on society and the economy, this impact is crucial. Actually, there are more than just economic advantages to the blockchain, and some organizations have already begun to use its technological capabilities to solve issues in the real world. In order to determine the influence of applied blockchain on economic sustainability as well as the benefits and drawbacks of blockchain application for economy, this study will do so. Design/ methodology/ approach: The terms "blockchain" and " economy" were used to find qualitative information in earlier work. Finally, 50 articles in the fields of business, management, and accounting that had undergone peer review as well as book chapters and conference proceedings were chosen. White papers and unreviewed books were removed as non-scientific sources. Qualitative data were collected from previous literature using the keywords “blockchain” and “economy”. Then, preliminary data was used, by conducting 15 interviews with experts and managers in the financial sector in Egypt about their opinion on the adoption of artificial intelligence and its impact on economic sustainability. Findings: From the interviews, the study collected more detailed information about the blockchain. This could be represented in the three main themes; theme of blockchain advantages, theme of blockchain disadvantages and challenges and theme of blockchain opportunities. Finally, some recommendations were made to decision makers as well as future researchers in this field according to the study results.

 

Received: 06 February 2024

Accepted: 12 June 2024

Published: 30 June 2024


Full Text:

PDF

References


Abdelmaboud, A. et al. (2022) ‘Blockchain for IoT Applications: Taxonomy, Platforms, Recent Advances, Challenges and Future Research Directions’, Electronics (Switzerland). Available at: https://doi.org/10.3390/electronics11040630.

Abdukarimovna, M.E. (2020) ‘The effectiveness of the use of blockchain technologies in sectors of the national economy’, South Asian Journal of Marketing & Management Research, 10(6). Available at: https://doi.org/10.5958/2249-877x.2020.00043.0.

ALSaqa, Z.H., Hussein, A.I. and Mahmood, S.M. (2019) ‘The impact of blockchain on accounting information systems’, Journal of Information Technology Management, 11(3). Available at: https://doi.org/10.22059/jitm.2019.74301.

Ammanath, B., Hupfer, S. and Jarvis, D. (2020) ‘Thriving in the era of pervasive AI’, Deloitte Insights [Preprint].

Antoniadis, I., Spinthiropoulos, K. and Kontsas, S. (2020) ‘Blockchain Applications in Tourism and Tourism Marketing: A Short Review’, in Springer Proceedings in Business and Economics. Available at: https://doi.org/10.1007/978-3-030-36126-6_41.

Benlian, A. et al. (2018) ‘Special Section: The Transformative Value of Cloud Computing: A Decoupling, Platformization, and Recombination Theoretical Framework’, Journal of Management Information Systems, 35(3). Available at: https://doi.org/10.1080/07421222.2018.1481634.

Braun, V. and Clarke, V. (2012) ‘Thematic Analysis. IN H.Cooper’, APA Handbook of Research Methods in Psychology [Preprint].

Cachin, C. (2017) ‘Blockchains and consensus protocols: Snake oil warning’, in Proceedings - 2017 13th European Dependable Computing Conference, EDCC 2017. Available at: https://doi.org/10.1109/EDCC.2017.36.

Carter, N. and Jeng, L. (2021) ‘DeFi Protocol Risks: The Paradox of DeFi’, SSRN Electronic Journal [Preprint]. Available at: https://doi.org/10.2139/ssrn.3866699.

Caton, J.L. (2020) ‘Cryptoliquidity: the blockchain and monetary stability’, Journal of Entrepreneurship and Public Policy, 9(2). Available at: https://doi.org/10.1108/JEPP-03-2019-0011.

Chang, V. et al. (2020) ‘How Blockchain can impact financial services – The overview, challenges and recommendations from expert interviewees’, Technological Forecasting and Social Change, 158. Available at: https://doi.org/10.1016/j.techfore.2020.120166.

Cheng, H.P. and Yen, K.C. (2020) ‘The relationship between the economic policy uncertainty and the cryptocurrency market’, Finance Research Letters, 35. Available at: https://doi.org/10.1016/j.frl.2019.101308.

Cho, S. et al. (2021) ‘Chain of Values: Examining the Economic Impacts of Blockchain on the Value-Added Tax System’, Journal of Management Information Systems, 38(2). Available at: https://doi.org/10.1080/07421222.2021.1912912.

Cunha, P.R. da, Soja, P. and Themistocleous, M. (2021) ‘Blockchain for development: a guiding framework’, Information Technology for Development. Available at: https://doi.org/10.1080/02681102.2021.1935453.

Dash, B. et al. (2022) ‘Future Ready Banking with Smart Contracts - CBDC and Impact on the Indian Economy’, International Journal of Network Security & Its Applications, 14(5). Available at: https://doi.org/10.5121/ijnsa.2022.14504.

Eghe-Ikhurhe, G.O. and Bonsu-Assibey, M.O. (2022) ‘The Effects of Blockchain Technology on Corporate Governance: Evidence from Emerging Economy’, Management Dynamics in the Knowledge Economy, 10(3). Available at: https://doi.org/10.2478/mdke-2022-0016.

Gomber, P. et al. (2018) ‘On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services’, Journal of Management Information Systems, 35(1). Available at: https://doi.org/10.1080/07421222.2018.1440766.

Hacker, P. (2018) ‘Corporate Governance for Complex Cryptocurrencies? A Framework for Stability and Decision Making in Blockchain-Based Organizations’, SSRN Electronic Journal [Preprint]. Available at: https://doi.org/10.2139/ssrn.2998830.

Halaburda, H. (2018) ‘Blockchain revolution without the blockchain?’, Communications of the ACM, 61(7). Available at: https://doi.org/10.1145/3225619.

Hanfy, K. (2021) ‘Future of Logistics’, International Business Logistics, 1(1). Available at: https://doi.org/10.21622/ibl.2021.01.1.003.

Ho, C.-M. (2020) ‘Impact of cryptocurrency exchange rate on financial stock exposure : comparison between two emerging markets’, Financial and credit activity problems of theory and practice, 4(35). Available at: https://doi.org/10.18371/fcaptp.v4i35.221733.

Holtmeier, M. and Sandner, P. (2019) ‘The Impact of Crypto Currencies on Developing Countries’, Frankfurt School Blockchain Center [Preprint], (December).

Ibrahim, G. and Samrat, R. (2021) ‘An analysis of blockchain in Supply Chain Management: system perspective current and future research’, International Business Logistics, 1(2), p. 28. Available at: https://doi.org/10.21622/ibl.2021.01.2.028.

Islam, M.R. et al. (2018) ‘Cryptocurrency vs fiat currency: Architecture, algorithm, cashflow & ledger technology on emerging economy subtitle: The influential facts of cryptocurrency and fiat currency’, in Proceedings - International Conference on Information and Communication Technology for the Muslim World 2018, ICT4M 2018. Available at: https://doi.org/10.1109/ICT4M.2018.00022.

Kelly, J. (2017) ‘Top banks and R3 build blockchain-based payments system’, Reuters [Preprint]. Available at: https://www.reuters.com/article/technology/top-banks-and-r3-build-blockchain-based-payments-system-idUSKBN1D00ZB/.

Kshetri, N. (2021) ‘Blockchain and sustainable supply chain management in developing countries’, International Journal of Information Management, 60. Available at: https://doi.org/10.1016/j.ijinfomgt.2021.102376.

Kwok, A.O.J. and Treiblmaier, H. (2023) ‘Blockchain technology as a driver of economic development in small economies: a dynamic capabilities framework’, Journal of Decision Systems [Preprint]. Available at: https://doi.org/10.1080/12460125.2023.2214304.

Li, Z. et al. (2018) ‘Toward open manufacturing a cross-enterprises knowledge and services exchange framework based on blockchain and edge computing’, Industrial Management and Data Systems, 118(1). Available at: https://doi.org/10.1108/IMDS-04-2017-0142.

Mao, Q., Ma, X. and Sun, Y. (2023) ‘Study of impacts of blockchain technology on renewable energy resource findings’, Renewable Energy, 211. Available at: https://doi.org/10.1016/j.renene.2023.05.038.

Matyskevic, Y. et al. (2021) ‘Blockhain impact on economic security’, Independent Journal of Management & Production, 12(3). Available at: https://doi.org/10.14807/ijmp.v12i3.1493.

Moradi, J. et al. (2019) ‘Blockchain, a Sustainable Solution for Cybersecurity Using Cryptocurrency for Financial Transactions in Smart Grids’, in 24th Electrical Power Distribution Conference, EPDC 2019. Available at: https://doi.org/10.1109/EPDC.2019.8903713.

Morkunas, V.J., Paschen, J. and Boon, E. (2019) ‘How blockchain technologies impact your business model’, Business Horizons, 62(3). Available at: https://doi.org/10.1016/j.bushor.2019.01.009.

Mubarik, M. et al. (2021) ‘Impact of blockchain technology on green supply chain practices: evidence from emerging economy’, Management of Environmental Quality: An International Journal, 32(5). Available at: https://doi.org/10.1108/MEQ-11-2020-0277.

Nakamoto, S. (2008) Bitcoin: A Peer-to-Peer Electronic Cash System. Available at: https://assets.pubpub.org/d8wct41f/31611263538139.pdf.

Náñez Alonso, S.L. et al. (2021) ‘Cryptocurrency mining from an economic and environmental perspective. Analysis of the most and least sustainable countries’, Energies, 14(14). Available at: https://doi.org/10.3390/en14144254.

Queiroz, M.M. et al. (2021) ‘Blockchain adoption in operations and supply chain management: empirical evidence from an emerging economy’, International Journal of Production Research, 59(20). Available at: https://doi.org/10.1080/00207543.2020.1803511.

Rai, B.K. (2023) ‘BBTCD: blockchain based traceability of counterfeited drugs’, Health Services and Outcomes Research Methodology, 23(3). Available at: https://doi.org/10.1007/s10742-022-00292-w.

Rana, R.L., Adamashvili, N. and Tricase, C. (2022) ‘The Impact of Blockchain Technology Adoption on Tourism Industry: A Systematic Literature Review’, Sustainability (Switzerland), 14(12). Available at: https://doi.org/10.3390/su14127383.

Russo-Spena, T., Mele, C. and Pels, J. (2023) ‘Resourcing, sensemaking and legitimizing: blockchain technology-enhanced market practices’, Journal of Business and Industrial Marketing, 38(9). Available at: https://doi.org/10.1108/JBIM-09-2021-0452.

Sakız, B. and Gencer, A.H. (2019) ‘Blockchain Technology and its Impact on the Global Economy’, in International Conference on Eurasian Economies 2019. Available at: https://doi.org/10.36880/c11.02258.

Samir, F., El-Garhy, A. and Bagwari, A. (2023) ‘The effects of implementing the Advanced Cargo Information (ACI) system on Egyptian importers’, in Cases on International Business Logistics in the Middle East. Available at: https://doi.org/10.4018/978-1-6684-4686-7.ch003.

Sayed, M.N. and Abbas, N.A. (2018) ‘Impact of Crypto-currency on Emerging Market Focus on Gulf countries’, Life Science Journal, 15(1).

Schmidt, K. and Sandner, P. (2017) ‘Solving Challenges in Developing Countries with Blockchain Technology’, FSBC Working Paper [Preprint], (October).

Sherman, A.T. et al. (2019) ‘On the Origins and Variations of Blockchain Technologies’, IEEE Security and Privacy, 17(1). Available at: https://doi.org/10.1109/MSEC.2019.2893730.

Shermin, V. (2017) ‘Disrupting governance with blockchains and smart contracts’, Strategic Change, 26(5). Available at: https://doi.org/10.1002/jsc.2150.

Sok, K. (2016) ‘Blockchain/Distributed Ledger Technology (DLT): What Impact on the Financial Sector?’, Digiworld Economic Journal, 103(103).

Spence, A. (2018) ‘Blockchain and the Chief Human Resources Officer: Transforming the HR function and the Market for Skills, Talent, and Training’, Blockchain Research Institute (BRI) [Preprint], (January).

Tan, Y. (2022) ‘Achieve Fully Decentralized End to End Encryption Meeting via Blockchain’, in ACM International Conference Proceeding Series. Available at: https://doi.org/10.1145/3532640.3532648.

Treiblmaier, H. and Sillaber, C. (2021) ‘The impact of blockchain on e-commerce: A framework for salient research topics’, Electronic Commerce Research and Applications, 48. Available at: https://doi.org/10.1016/j.elerap.2021.101054.

Troncia, M. et al. (2019) ‘Distributed ledger technologies for peer-to-peer local markets in distribution networks’, Energies, 12(17). Available at: https://doi.org/10.3390/en12173249.

Wang, Q. et al. (2020) ‘Blockchain for the IoT and industrial IoT: A review’, Internet of Things (Netherlands). Available at: https://doi.org/10.1016/j.iot.2019.100081.

Zhang, J. et al. (2021) ‘A Hybrid Model for Central Bank Digital Currency Based on Blockchain’, IEEE Access, 9. Available at: https://doi.org/10.1109/ACCESS.2021.3071033.

Zheng, Z. et al. (2018) ‘Blockchain challenges and opportunities: A survey’, International Journal of Web and Grid Services, 14(4). Available at: https://doi.org/10.1504/IJWGS.2018.095647.




DOI: http://dx.doi.org/10.21622/IBL.2024.04.1.773

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Hany Ayaad, Autumn Bizon, Nermin Gohar

International Business Logistics
E-ISSN: 2735-5969
P-ISSN: 2735-5950

Published by:
Academy Publishing Center (APC)
Arab Academy for Science, Technology and Maritime Transport (AASTMT)
Alexandria, Egypt
ibl@aast.edu