Laying the foundation for smart contract development: an integrated engineering process model

Abstract

Smart contracts are seen as the major building blocks for future autonomous blockchain-and Distributed Ledger Technology (DLT)-based applications. Engineering such contracts for trustless, append-only, and decentralized digital ledgers allows mutually distrustful parties to transform legal requirements into immutable and formalized rules. Previous experience shows this to be a challenging task due to demanding socio-technical ecosystems and the specificities of decentralized ledger technology. In this paper, we therefore develop an integrated process model for engineering DLT-based smart contracts that accounts for the specificities of DLT. This model was iteratively refined with the support of industry experts. The model explicitly accounts for the immutability of the trustless, append-only, and decentralized DLT ecosystem, and thereby overcomes certain limitations of traditional software engineering process models. More specifically, it consists of five successive and closely intertwined phases: conceptualization, implementation, approval, execution, and finalization. For each phase, the respective activities, roles, and artifacts are identified and discussed in detail. Applying such a model when engineering smart contracts will help software engineers and developers to better understand and streamline the engineering process of DLTs in general and blockchain in particular. Furthermore, this model serves as a generic framework which will support application development in all fields in which DLT can be applied.

Antecedents of blockchain adoption: An integrative framework

“…As far as individual considerations are concerned, trust and privacy stood out as the most important topics. Blockchain is sometimes also referred to as a “trustless system” that allows for transparent interactions between parties that do not necessarily know and trust each other (Sillaber, Waltl, Treiblmaier, Gallersdörfer, & Felderer, 2020). Given the immutability of the underlying database, privacy naturally plays a significant role for individual users.…”

“…Individual considerations mostly focus on trust and privacy. Blockchain has been identified as a trustless system (Sillaber et al, 2020), but some authors argue that trust in the Blockchain ecosystem simply shifts from specific market players to others (Auinger & Riedl, 2018). In the case of inter‐organizational blockchain networks, many of which contain only a limited number of participants who know each other, and only some of them serve as validators in the network, trust in the technology might be equally important as trust in the operators of the network.…”

Exploring the Next Wave of Blockchain and Distributed Ledger Technology: The Overlooked Potential of Scenario Analysis

“…Consequently, research in this area also has a particular normative component in that it regularly strives to identify solutions that benefit companies or the general public and advises the industry on how to best implement viable solutions. In this regard, we can broadly differentiate between design science research that is concerned with the development and performance of artifacts [48] and action research, as envisioned by Kurt Lewin, as a broad approach to tackle practical problems [49]. From this perspective, academia is not bound by exploration, description, and prediction, but it can also take an active role in the creation and shaping of businesses, societies, and economies.…”

Intra- and Interorganizational Barriers to Blockchain Adoption: A General Assessment and Coping Strategies in the Agrifood Industry

“…In a recent study, Abreu and Coutinho [50] assert that numerous legacy systems lack direct interfaces to blockchains and require a substantial redesign when integrating data or blockchain-based functionalities with legacy systems. The immaturity of blockchain and its ongoing development raises further problems for system development and the integration of existing legacy systems [51,52]. For some early adopters of the technology, caution has been exercised to weigh the potential benefits of blockchain against the barriers to its implementation [53].…”