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Overcoming the Blockchain Oracle Problem in the Traceability of Non-Fungible Products

Author

Listed:
  • Giulio Caldarelli

    (Department of Business Administration, University of Verona, 37129 Verona, Italy)

  • Cecilia Rossignoli

    (Department of Business Administration, University of Verona, 37129 Verona, Italy)

  • Alessandro Zardini

    (Department of Business Administration, University of Verona, 37129 Verona, Italy)

Abstract

Blockchain implications within the sustainability domain are rapidly arousing the interest of researchers and institutions. However, despite the avalanche of articles, papers, and recently published books, innovation in the blockchain domain is still heavily influenced by light literature, such as news, articles, opinion posts, and white papers. Lacking a homogeneous literature background, case studies often fall into storytelling, providing mere descriptions of the facts according to the writers’ impressions and opinions. We therefore investigate blockchain adoption for sustainable purposes through a case study while remaining firmly grounded in three main theoretical literature streams: knowledge management, knowledge infrastructure, and trust. Since blockchain interaction with the real world is managed by oracles, addressing the oracle problem is essential in order to evaluate the effectiveness of blockchain for sustainability issues. However, to the best of the authors’ knowledge, no other paper has efficiently addressed this subject or even mentioned it. Recognizing its scarce consideration in the literature, the oracle problem will be analyzed in both theoretical and practical terms, thereby providing a way to solve the issues related to non-fungible products in the supply chain. Choice over the selected case study was made in light of the divergence in motives for the adoption of blockchain (economic over social), which makes the results more inferable at a broader scale and offers an insight into how sustainable innovations can also be economically viable.

Suggested Citation

  • Giulio Caldarelli & Cecilia Rossignoli & Alessandro Zardini, 2020. "Overcoming the Blockchain Oracle Problem in the Traceability of Non-Fungible Products," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2391-:d:334237
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    References listed on IDEAS

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    Cited by:

    1. Yi Wang & Yafei Yang & Zhaoxiang Qin & Yefei Yang & Jun Li, 2023. "A Literature Review on the Application of Digital Technology in Achieving Green Supply Chain Management," Sustainability, MDPI, vol. 15(11), pages 1-18, May.
    2. Giulio Caldarelli, 2022. "Formalizing Oracle Trust Models for blockchain-based business applications. An example from the supply chain sector," Papers 2202.13930, arXiv.org, revised Mar 2022.
    3. Prince Waqas Khan & Yung-Cheol Byun, 2021. "Blockchain-Based Peer-to-Peer Energy Trading and Charging Payment System for Electric Vehicles," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    4. Abderahman Rejeb & Karim Rejeb & Steve Simske & Horst Treiblmaier, 2021. "Blockchain Technologies in Logistics and Supply Chain Management: A Bibliometric Review," Logistics, MDPI, vol. 5(4), pages 1-28, October.
    5. Wong, Lai-Wan & Tan, Garry Wei-Han & Ooi, Keng-Boon & Chan, Hing Kai, 2024. "Blockchains for SMEs: A Fit-Viability perspective moderated by organizational innovation diffusion for supply chain performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    6. Giulio Caldarelli, 2022. "Overview of Blockchain Oracle Research," Future Internet, MDPI, vol. 14(6), pages 1-38, June.
    7. Pattanayak, Sirsha & Ramkumar, M. & Goswami, Mohit & Rana, Nripendra P., 2024. "Blockchain technology and supply chain performance: The role of trust and relational capabilities," International Journal of Production Economics, Elsevier, vol. 271(C).
    8. Vineet Paliwal & Shalini Chandra & Suneel Sharma, 2020. "Blockchain Technology for Sustainable Supply Chain Management: A Systematic Literature Review and a Classification Framework," Sustainability, MDPI, vol. 12(18), pages 1-39, September.
    9. Giulio Caldarelli, 2020. "Exploiting Corporate Governance to Evaluate Blockchain Applications: A Comprehensive Framework," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 166-183.
    10. Ashish Dwivedi & Dindayal Agrawal & Sanjoy Kumar Paul & Saurabh Pratap, 2023. "Modeling the blockchain readiness challenges for product recovery system," Annals of Operations Research, Springer, vol. 327(1), pages 493-537, August.
    11. Massimiliano Giacalone & Vito Santarcangelo & Vincenzo Donvito & Oriana Schiavone & Emilio Massa, 2021. "Big data for corporate social responsibility: blockchain use in Gioia del Colle DOP," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(6), pages 1945-1971, December.
    12. Yue Wu & Junxiang Li & Jin Gao, 2021. "Real-Time Bidding Model of Cryptocurrency Energy Trading Platform," Energies, MDPI, vol. 14(21), pages 1-14, November.
    13. Kongmanas Yavaprabhas & Mehrdokht Pournader & Stefan Seuring, 2023. "Blockchain as the “trust-building machine” for supply chain management," Annals of Operations Research, Springer, vol. 327(1), pages 49-88, August.
    14. Luona Song & Yiqing Luo & Zixi Chang & Chunhua Jin & Merveille Nicolas, 2022. "Blockchain Adoption in Agricultural Supply Chain for Better Sustainability: A Game Theory Perspective," Sustainability, MDPI, vol. 14(3), pages 1-21, January.

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