Blockchains and the Token Economy

In the context of blockchain technologies, tokens present a novel way to transfer value between parties without relying on traditional intermediaries. The so-called 'token economy' has only recently attracted the attention of practitioners and academics, who seek to understand the potential of tokenization, but also its challenges and pitfalls.In this book, leading practitioners and academics provide a comprehensive overview explore theories on the future of the token economy and provide real world case studies from a range of industries.

Chapter 3 and Chapter 8 are available open access under a Creative Commons Attribution 4.0 International License via link.springer.com.

Mary C. Lacity is Walton Professor of Information Systems and Director of the Blockchain Center of Excellence in the Sam M. Walton College of Business at The University of Arkansas, USA.

Horst Treiblmaier is a Professor in International Management at Modul University Vienna, Austria

Autorentext

Mary C. Lacity is Walton Professor of Information Systems and Director of the Blockchain Center of Excellence in the Sam M. Walton College of Business at The University of Arkansas, USA. She was previously Curators' Distinguished Professor at the University of Missouri. She has held visiting positions at MIT, the London School of Economics, Washington University, and Oxford University. She is a Certified Outsourcing Professional and Senior Editor for MIS Quarterly Executive. The author of 30 books, her recent research focuses on improving business services using robotic process automation, cognitive automation and blockchain technologies.

Horst Treiblmaier is a Professor in International Management at Modul University Vienna, Austria. He has more than twenty years of experience as a researcher and consultant and has worked on numerous industry projects. He is currently a Research Associate at the UCL Centre for Blockchain Technologies of the University College London. In his research he investigates the implications of blockchain technology and the token economy. He has authored and edited several books and published more than 150 articles in academic journals and conference proceedings.

Klappentext

In this book, leading practitioners and academics provide comprehensive coverage and novel insights into blockchains and the token economy. Real world case studies from a wide range of industries provide practical examples of blockchain-based tokens for real estate, logistics, insurance, recruitment, collectibles, reservations, metaverses, and more. The cases show how tokens provide an innovative way to create and transfer value without relying on traditional intermediaries. Readers will better understand the business and social benefits of tokenization, but also its challenges.

Chapter 3 and Chapter 8 are available open access under a Creative Commons Attribution 4.0 International License via link.springer.com.

Inhalt

Chapter 1: Introduction the Token Economy

· Horst Treiblmaier, Professor of International Management at Modul University Vienna, Research Fellow at the UCL Centre for Blockchain Technologies

· Mary Lacity, Walton Professor of Information Systems and Director of the Blockchain Center of Excellence at the University of Arkansas, Sam M. Walton College of Business

Abstract: In the introductory chapter we present a classification of blockchain-based tokens, describe their various use cases and summarize previous literature on the subject. We also briefly summarize the content from the contributing authors and provide an outline for the whole book.

SECTION I: Studies in Theory

Chapter 2: Finding the Right Balance-Decentralization in the Token Economy

· Michelle Mei-Li Pfister, Graduate student at the Karlsruhe Institute of Technology majoring in information systems

· Niclas Kannengießer, PhD Student at the Karlsruhe Institute of Technology · Ali Sunyaev, Director of the Institute of Applied Informatics and Formal Description Methods (AIFB) and Professor at the Karlsruhe Institute of Technology

Abstract: Current token economy instances build on a variety of protocols, where distributed ledger technology (DLT) is applied to set up distributed ledgers that perform several tasks (e.g., prevention of double-spending) in a decentralized way that were previously handled by third parties. However, to date distributed ledgers can hardly interoperate with other ledgers (e.g., due to incompatible interfaces), limiting the dynamics in the token economy, for example, regarding changing collaborations and cooperation between organizations operating on separate distributed ledgers. Cross-ledger interoperability (CLI) artifacts can interconnect distributed ledgers. Still, it is unclear how the degree of decentralization (i.e., political and technical) of CLI artifacts will affect token economy instances on currently separated distributed ledgers. To understand these effects, we introduce and explain patterns of CLI artifacts and discuss their impact from both the political and technical perspectives under engagement of DLT experts. Drawing from derived implications, we discuss challenges related to the usage of CLI to enable interconnected token economy instances.

Chapter 3: Non-fungible Tokens (NFTs): A Marketplace Analysis

· Marinos Themistocleus, Director of the Institute for the Future and Associate Dean at the School of Business, University of Nicosia · Leonidas Katelaris, Research Assistant at the University of Nicosia

· Klitos Christodoulou, Assistant Professor in the Department of Management and MIS - Digital Currency at the University of Nicosia

Abstract: Non-fungible tokens (NFTs) enable the exchange of ownership of unique digital items. An NFT is an indivisible Blockchain token which can contain anything digital from songs, video games, trading cards, drawings etc. NFTs propose a new category of blockchain-based tokens. Their 'predecessor' fungible tokens were used mainly during the Initial Coin Offering (ICOs) crowdfunding hype, which estimated at 12 billion USD and were made available due to the ERC-20 standard. NFTs were initially proposed by the ERC-721 standard which denoted the two aspects that differentiated NFTs from fungible tokens i.e., their uniqueness and non-divisibility. NFTs offer a new type of on-chain tokens, which addresses different use cases such as the authenticity and ownership of a unique digital asset. NFTs recently gained massive attention, with some of the paradigms to include the digital art collection sold by Beeple for 69$ million at Christie's. The CEO and co-founder of twitter is another example of the NFT frenzy, who sold his first tweet for 2.9$ million. A popular NFT use case is the NBA and Dapper Labs partnership, known as the NBA Topshop, which mints and sells videos from NBA highlights as NFTs. Currently, more than 100,000 users claim at least one NBA highlight video, with the dunk by Lebron James to exceed 250,000$. The aim of this chapter is to identify and discuss the types of NFTs in existence and the purpose(s) each type of NFT serves. Furthermore, this chapter aims to present an analysis of current and emerging NFT Marketplaces.

Chapter 4: Real Estate Asset Tokenization

· Philipp Sandner, Head of the Frankfurt School Blockchain Center (FSBC) at the Frankfurt School of Finance & Management

Abstract: The real estate industry is one of the most important and oldest asset classes in the world. It is also one of the most inefficient and inflexible ones. This chapter explores a disruptive technology that could solve fundamental problems within the real estate market. With the advent of blockchain technology and the concept of tokenization, two major possibilities have arisen. First, the fractionalization of assets or claims in general and second, the digital representation of asset ownership. The former feature has the potential to enable…