8. Hodson, H. Bitcoin moves beyond money. New
Scientist 220, 2945 (Nov. 20, 2013), 24.
9. Hoffman, D. L., Novak, T.P., and Peralta, M. Building
consumer trust online. Commun. ACM 42, 4 (Apr.
10. Hull, R., Batra, V.S., Chen, Y.-M., Deutsch, A., Heath
III, F. F. T., and Vianu, V. Towards a shared ledger
business collaboration language based on data-aware
processes. In Proceedings of the 14th International
Conference on Service-Oriented Computing (Banff,
Alberta, Canada, Oct. 10–13), Springer International
Publishing, 2016, 18–36.
11. Larimer, D., Scott, N., Zavgorodnev, V., Johnson, B.,
Calfee, J., and Vandeberg, M. Steem: An Incentivized,
Blockchain-Based Social Media Platform. White
Paper. Steem, New York, Mar. 2016; https://steem.io/
12. ter Maat, M. The economics of e-cash. IEEE Spectrum
34, 2 (Feb. 1997), 68–73.
13. Migliardi, M., Merlo, A., and Passaglia, A. On the
feasibility of moderating a peer-to-peer CDN system:
A proof-of-concept implementation. In Proceedings
of the 10th International Conference on P2P, Parallel,
Grid, Cloud, and Internet Computing (Krakow, Poland,
Nov 4–6). IEEE Press, 2015, 689–694.
14. Nakamoto, S. Bitcoin: A Peer-to-Peer Electronic Cash
System. 2008; https://bitcoin.org/bitcoin.pdf
15. Peterson, J. and Krug, J. Augur: A decentralized, open-source platform for prediction markets. arXiv (Jan. 5,
16. Pick, F. and Dreher, J. Sustaining hierarchy—Uber
isn’t sharing. Kings Review (May 12, 2015); http://
17. Ratnasingham, P. Trust in web-based electronic
commerce security. Information Management &
Computer Security 6, 4 (1998), 162–166.
18. Reid, F. and Harrigan, M. An analysis of anonymity
in the bitcoin system. In Proceedings of the Third
IEEE International Conference on Social Computing
(Boston, MA, Oct. 9–11). IEEE Press, 2011,
19. Rochet, J. C. and Tirole, J. Two-sided markets: A
progress report. The RAND Journal of Economics 37, 3
20. Rosov, S. Beyond Bitcoin. CFA Institute Magazine 26, 1
(Jan./Feb. 2015), 37–37.
21. Schwartz, D., Youngs, N., and Britto, A. The Ripple
Protocol Consensus Algorithm. White Paper. Ripple
Labs Inc., San Francisco, CA, 2014; http://www.
22. Subramanian, H. and Overby, E. Electronic commerce,
spatial arbitrage, and market efficiency. Information
Systems Research 28, 1 (Mar. 2017), 97–116.
23. Swan, M. Blockchain thinking: The brain as a
decentralized autonomous corporation [commentary].
IEEE Technology and Society Magazine 34, 4 (Dec.
24. Weyl, E.G. A price theory of multi-sided platforms.
The American Economic Review 100, 4 (Jan. 2009),
25. Wood, G. Ethereum: A Secure Decentralised
Generalised Transaction Ledger. Yellow Paper.
Ethereum Project; http://gavwood.com/paper.pdf
Hemang Subramanian ( email@example.com) is an
assistant professor in the Department of Information
Systems and Business Analytics in the College of Business
at Florida International University, Miami, FL.
© 2018 ACM 0001-0782/18/1 $15.00
in which content creators are identified, recognized, and rewarded. 11
Blockchain-based prediction markets include applications in basic sciences, where, say, drug discovery or
patient outcomes might be predicted
accurately through the wisdom of the
crowd. 15 Likewise, blockchain-based
software is being deployed in the financial industry for implementing automated reasoning for executing the
complex rules in financial contracts. 10
Given the blockchain’s special characteristics, successful execution and
validation of rules by a network of
nodes extends its blockhain-based
applications to artificial intelligence
applications in complex rule-based
systems. 23 In financial markets, for
example, the blockchain enables international remittance opportunities
with instantaneous currency transfers and “de-risks” international currency exchange; for example, BITT
is a Bitcoin-based platform for interbank money transfer among 16 Caribbean nations, some running the risk
of currency de-recognition. Similarly,
the blockchain plays an important
role mitigating problems in business
environments where market friction
due to weak legal institutions is a
challenge, as in the real estate market
where property records on the blockchain are being sought as a solution. 8
By facilitating key marketplace functions, decentralization will, if successful, complement and rival traditional
1. Bakos, Y. The emerging role of electronic
marketplaces on the Internet. Commun. ACM 41, 8
(Aug. 1998), 35–42.
2. Buterin, V. What proof of stake is and why it
matters. Bitcoin Magazine (Aug. 26, 2013); https://
3. Cusumano, M.A. The Bitcoin ecosystem. Commun.
ACM 57, 10 (Oct. 2014), 22–24.
4. Duffield, E. and Diaz, D. Dash: A privacy-centric cryptocurrency. White Paper. Dash, Sept. 2014; https://
5. The Economist. Workers on tap: The on-demand
economy. The Economist (Dec. 2014); https://www.
6. Eisenmann, T., Parker, G., and Van Alstyne, M. W.
Strategies for two-sided markets. Harvard Business
Review 84, 10 (Oct. 2006), 92.
7. Hart, O. and Holmström, B. The Theory of Contracts.
Department of Economics, Massachusetts Institute
of Technology, Cambridge, MA, 1986; https://
is used to create
a social network
(such as Steem)
Watch the author discuss
his work in this exclusive