How much does trust cost? : analysis of the consensus mechanism of distributed ledger technology and use-cases in securitization
Name
1003321586-MIT.pdf
Description
Full printable version
Size
12.89 MB
Format
Adobe PDF
Checksum (MD5)
45df8175cabee1d1e7d7484a748d6003
Author(s)
Jiang, Jennifer Hongbo
Advisor(s)
Christian Catalini.
Alternative Title
Analysis of the consensus mechanism of distributed ledger technology and use-cases in securitization
Date Issued
2017
Publisher
Massachusetts Institute of Technology
Abstract
This paper analyzed how blockchain has achieved decentralized consensus, a remarkable innovation by: 1) validating transactions based on cryptograph technologies and implicit incentives; 2) extending blockchain networks based on a process of randomization. The success of emerging distributed ledger technology (DLT) reveals an intricate interplay of key factors among technology, economics, and rules. This paper discussed the broad spectrum of permissionless and permissioned DLTs and argued that the choice of DLT for each business case is a delicate balancing act for the needs of disintermediation, confidentiality, and scalability among other considerations. Smart contacts are the pre-agreed set of rules evaluated and executed by an automated system based on DLT. By digitalizing the physical business world, smart contracts combined with loT or big data analytics can help make powerful business cases, and we illustrated the potential use-cases in financial securitization industry. Looking forward, a decentralized consensus model empowered by DLT may lead to a new dimension of organizational changes and foster more collaborative partnership within and beyond the financial services industry.
Description
Thesis: S.M. in Management of Technology, Massachusetts Institute of Technology, Sloan School of Management, 2017.
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 47-49).
Subjects
Sloan School of Management.
Technology and Policy Program.
MIT Department
Sloan School of Management
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