Strengthening the Chain: Assessment of Reliable Tokenization of Indistinguishable Assets on a Blockchain within the Food Industry

Daniel Jedmo

Student thesis: Master thesis

Abstract

This study attempts to understand the issue which occurs when indistinguishable assets are tokenized on a blockchain. The study then attempt to solve how such assets can be accurately tokenized, within a supply chain context. This is done through a qualitative approach where two case companies in the food industry are investigated. Data is gathered through the use of both unstructured and semi-structured interviews with six different representatives, spread across the two cases. The researcher attempts a grounded-theory approach in the hopes of generating new theory about the researched phenomena. The researcher then leverages agency theory as a lens from which to view the phenomena through and as a means to help ground the research in existing theory. The result is an initial understanding for the phenomena and some generated insight into its resolution through leveraging complimentary validation services. Firstly, the issue seems to stem from how anyone can make any claim and upload any data onto the blockchain. This creates an issue when an indistinguishable asset in the real world is claimed to be something on the blockchain ledger, which in reality it is not. To combat this the two cases made use of various validation technologies. The key insight, however, was how there was no one technology which provided a solution. Rather, validation was best done through leveraging multiple validation services in tandem with one another. This way misconduct or error in one validation stage can be seen in another. This effectively creates a web of security, where made claims become reliably verified as they move through the supply chain across the different validation stages. Finally, the researcher attempts to improve this process and reduce agency costs of spent time and resources used by increasing the use of behavior-oriented contracts. The gathered insights seem to suggest increasing information sharing between validation service providers and tightening their relationship to one another reduces agency costs while still allowing for the use of a security web

EducationsMSc in Business Administration and E-business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2021
Number of pages56
SupervisorsStefan Henningsson