[P2P-F] eco-systemic supply chains are on their way

[Michel Bauwens]

I hope this can impress some people that are still on the sidelines of this
major earthquake, to understand the significance of what is occuring right
now, a fundamental re-ordering of the capitalist economy under new models:

first of all, see this article, that shows successfull blockchain trials
for supply chains,
https://which-50.com/commbank-and-logistics-giants-complete-blockchain-trade-from-regional-victoria-to-germany/
?

and what it all means in terms of industrial structures see the article
quoted below,

but in fact, I don't think their analysis goes far enough, because in the
ethereum networks, corporates are already subsumed to a eco-system
consisting not just of companies, but of a multitude of other players,
including lots of single individuals:

QUOTE

Blockchain-Based Corporate V-Networks
<https://wiki.p2pfoundation.net/Blockchain-Based_Corporate_V-Networks#mw-head>
<https://wiki.p2pfoundation.net/Blockchain-Based_Corporate_V-Networks#p-search>

*= "V-form networks consist of a number of fully independent companies that
effectively operate as one vertically integrated company through blockchain
technology".* [1]
<https://medium.com/cryptoeconomics-australia/outsourcing-vertical-integration-introducing-the-v-form-network-78e1aa93a814>


Contents [hide
<https://wiki.p2pfoundation.net/Blockchain-Based_Corporate_V-Networks#>]

   - 1 Contextual Citation
   <https://wiki.p2pfoundation.net/Blockchain-Based_Corporate_V-Networks#Contextual_Citation>
   - 2 Description
   <https://wiki.p2pfoundation.net/Blockchain-Based_Corporate_V-Networks#Description>
   - 3 Example
   <https://wiki.p2pfoundation.net/Blockchain-Based_Corporate_V-Networks#Example>
      - 3.1 The IBM and Maersk TradeTech
      <https://wiki.p2pfoundation.net/Blockchain-Based_Corporate_V-Networks#The_IBM_and_Maersk_TradeTech>

Contextual Citation[edit
<https://wiki.p2pfoundation.net/index.php?title=Blockchain-Based_Corporate_V-Networks&action=edit&section=1>
]

"A blockchain economy will have more, smaller firms linked together by
protocols. ... It’s worth pointing out that these networks are inherently
global, and any regulatory questions global as well."

- Chris Berg, Sinclair Davidson and Jason Potts [2]
<https://medium.com/cryptoeconomics-australia/outsourcing-vertical-integration-introducing-the-v-form-network-78e1aa93a814>


Description[edit
<https://wiki.p2pfoundation.net/index.php?title=Blockchain-Based_Corporate_V-Networks&action=edit&section=2>
]

"The Nobel laureate Oliver Williamson distinguishes between U-form
companies and M-form companies.

Traditional U-form companies are unitary — their units are divided by
business process (for instance, accounting, human resources, component
manufacturing, assembly) and are not treated as separate cost centres.

M-form companies are multidivisional — their units are self-contained
divisions that report profits and losses to an umbrella central body.
They’re fully owned by a parent company, but they tend to have their own
business services (accounting and human resources departments, for
instance) and even market relationships.

But now we see a new corporate form — the V-form network — made possible
because thanks to the application of distributed ledger technology to
supply chain problems.

These V-form networks consist of a number of fully independent companies
that effectively operate as one vertically integrated company through
blockchain technology, coordinated and supplied by a third party.

This is a big change to the nature of the firm. We can already see V-form
networks in the real world. They date as far back as January. It is
surprising the economics community haven’t noticed them yet.

...


Blockchains can work to coordinate supply chains without the need for
either (traditional) vertical integration or regulation. The vertical
integration is outsourced to a distributed ledger. The blockchain provides
the managerial service that coordinates each ‘unit’ (that is, firm) in the
supply chain.

Regulators in any country can deal any firm in the supply chain as if it
was a small unit of a larger, global company.

Each firm in the supply chain get the benefits of vertical integration
through a network rather than a hierarchy.


...


In the V-form network, the blockchain’s token establishes the consortium,
and incentivizes cooperative behaviour.

The token also serves to move rents around the network. In this way, the
blockchain provides a market mechanism to solve the sort of bargaining
problems described by another Nobel laureate, Ronald Coase, that may occur
as the network operates.

Outsourced vertical integration could be applied to many industries that
are now integrated. Energy firms that currently integrate the exploration,
production, generation, and retail of electricity might be better
decomposed, with blockchains and tokens taking the place of head offices.
The token economy, rather than energy regulators, could make decisions
about the distribution of rents around the network." (
https://medium.com/cryptoeconomics-australia/outsourcing-vertical-integration-introducing-the-v-form-network-78e1aa93a814
)


Example[edit
<https://wiki.p2pfoundation.net/index.php?title=Blockchain-Based_Corporate_V-Networks&action=edit&section=3>
]The IBM and Maersk TradeTech[edit
<https://wiki.p2pfoundation.net/index.php?title=Blockchain-Based_Corporate_V-Networks&action=edit&section=4>
]

Chris Berg, Sinclair Davidson and Jason Potts:

"Two weeks into 2018, IBM and the shipping giant Maersk announced a joint
venture to develop a digital supply chain management system on their
Hyperledger blockchain platform. Hyperledger is a private blockchain which
requires permission to access.

In a previous Cryptoeconomics piece, we described how international trade
is an information problem. As goods are shipped around the world, they are
accompanied by information — really stacks of paperwork — that describe
their provenance, destinations, regulatory and tax liabilities and so on.

In the IBM-Maersk system, each firm and bureaucracy in the supply chain —
producers, shippers, port authorities, regulators, importers, retailers —
will access and update a shared blockchain ledger containing all the
information needed by each organisation.

And each organisation would have access to that information everywhere,
ensuring complete visibility on where goods are in the world and which
economic and regulatory hurdles they next need to overcome." (
https://medium.com/cryptoeconomics-australia/outsourcing-vertical-integration-introducing-the-v-form-network-78e1aa93a814
)

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