Blockchain and supply chains: V-form organisations, value redistributions, de-commoditisation and quality proxies

[Together with Alastair Berg and Brendan Markey-Towler this peer reviewed journal article was originally published in The Journal of the British Blockchain Association]


We apply institutional cryptoeconomics to the information problems in global trade, model the incentives under which blockchain-based supply chain infrastructure will be built, and make predictions about the future of supply chains. We argue blockchain will change the patterns and dynamics of how, where and what we trade by: (1) facilitating new forms of economic organisation governing supply chain coordination (such as the V-form organisation); (2) decreasing information asymmetries and shifting economic power towards the ends of supply chains (e.g. primary producers); (3) changing the dimensions along which we can reliably differentiate goods and therefore de-commoditising goods and disaggregating price signals; and (4) decreasing consumer reliance on quality proxies (e.g. production within national borders).

Allen, DWE, Berg A and Markey-Towler, B (2019) ‘Blockchain and Supply Chains: V-form Organisations, Value Redistributions, De-commoditisation and Quality Proxies’, The Journal of the British Blockchain Association, vol. 2, No. 1, pp. 57-65.

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