Blockchain-as-a-Service and Blockchain-as-a-Partner: Implementation options for supply chain optimization

Abstract

Smart contracts show a high potential to make supply chain management strategies epochally leap towards higher levels of productivity, not only in the functioning of production processes but also in terms of product innovation and overall economic returns. This article illustrates the principle of Income Sharing as a highly performing economic strategy for supply chains with a natural implementation in blockchain smart contracts. It proposes a blockchain-based architecture that uses smart contracts to implement various algorithmic versions of the Income Sharing principle among companies participating in a supply chain. The formation of the total income and its consequent redistribution are calculated taking into account the role of the technological platform automating these procedures, which therefore becomes a party to the inter-company business project of a supply chain in the alternative roles, as feasible in business practice, of Blockchain-as-a-Service and Blockchain-as-a-Partner. The approach is implemented on Hyperledger Fabric, the most widespread platform for private and consortium blockchains. We compare and justify this design choice with the alternative given by public blockchains, with specific attention to Ethereum.