Application of Blockchain Technology in Agricultural Water Rights Trade Management
Abstract
:1. Introduction
2. Methodology
2.1. Water Production Function and Water Allocation
2.2. Blockchain Technology
3. Blockchain Technology in Agricultural Water Rights Trading
3.1. Architecture of Trading System Based on Blockchain
3.2. Trading Platform Design Based on Consensus Algorithms
4. Management of Water Rights Trading Based on Blockchain
4.1. Management of the Platform
4.2. Blockchain-Based Business Process Transformation
4.3. “DAO” in Agricultural Water Rights Trading
5. Conclusions
Author Contributions
Funding
Conflicts of Interest
References
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Type | Public | Alliance | Private |
---|---|---|---|
Nodes | Any | Authorized users | In an organization |
Centralization extent | Decentralized | Polycentric | Centralized |
Consensus mechanism | POW, POS, DPOS | Raft | Solo |
Incentive necessity | Yes | Optional | No |
Openness | Complete | Partially | Not |
Speed | Slow | Faster | Fastest |
Application | Bitcoin | Hyperledger | Ant Financial |
Consensus Algorithms | PoW | PoS | DPoS | PBFT | PoET |
---|---|---|---|---|---|
Decentralization | Complete | High | Normal | Low | Complete |
Efficiency | Slow | Medium | Medium | Fast | Medium |
Energy consumption | Very high | Normal | Low | Very low | Low |
Security | High | Relatively high | Relatively high | Medium | Relatively high |
Features | Description |
---|---|
Decentralization | Since blockchain operates in a decentralized mode with every node in the network, a DAO allows autonomous execution according to the predefined provisions by a smart contract. Hence, the system decentralization maintains ceaseless service availability by eliminating the single point of failure, decreases data usage and latency, and ensures accountability. |
Forgery Resistance | Smart contracts preserve the integrity of the distributed ledger, and computational logic is verified with digital signatures. In a DAO, the transaction and related operation once implemented cannot be changed even by their owner. |
Transparency | The transaction and other data can be accessed by authenticated users all the time. |
Self-execution | Business affairs between the entities within the network execute once the predefined conditions are met, without any need for a third party. |
Openness | Traditional organizations tend to have a manager or central department, with a strict hierarchy to ensure the enforcement of rules. The DAO breaks the pyramidal management hierarchy of traditional organizations. In such an organization, each individual can issue proposals and make decisions through voting. |
Incentives | DAO projects can issue tokens. The circulation of tokens on the blockchain can allow different rights holders to obtain the benefits by the realization of rights. In this way, it can optimize resource allocation within the organization and achieve large-scale cooperation. |
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Liu, Y.; Shang, C. Application of Blockchain Technology in Agricultural Water Rights Trade Management. Sustainability 2022, 14, 7017. https://doi.org/10.3390/su14127017
Liu Y, Shang C. Application of Blockchain Technology in Agricultural Water Rights Trade Management. Sustainability. 2022; 14(12):7017. https://doi.org/10.3390/su14127017
Chicago/Turabian StyleLiu, Yan, and Chao Shang. 2022. "Application of Blockchain Technology in Agricultural Water Rights Trade Management" Sustainability 14, no. 12: 7017. https://doi.org/10.3390/su14127017