Investigating the link between transaction and computational costs in a blockchain environment
Open accessAbstract
The research and thinking pertaining to blockchain have thus far focused on cryptocurrency and Bitcoin. However, there is increased interest in using the technology to solve operational challenges in manufacturing and service supply chains. In this study, we introduce a new implication of using blockchain technology and propose two unique contributions. First, we introduce the notion of computational costs (measured in units of gas) as an essential mechanism for completing operational transactions in the blockchain environment. Second, we discuss the use of smart contracts and their influence on operational transactions. To investigate the link between blockchain transaction and computational costs, this study uses an experimental methodology. We develop and implement a fully functional virtual public blockchain to store, validate, and maintain transactions. The methodology provides a process to measure the computational costs, frequency, and intensity of transactions. This research contributes to conceptual research on the blockchain implementation paradigm. Its novelty stems from the identification of computational costs for operational transactions and use of an experimental methodology. This research provides managers an insight into the design of smart contract transactions in a supply chain from a cost perspective.
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The processing of a transaction involves various steps, including defining heavy security, mining, validating, and storing it across multiple participants.
“The processing of a transaction involves various steps, including defining heavy security, mining, validating, and storing it across multiple participants [147].”
From A survey on the adoption of blockchain in IoT: challenges and solutions (2021) · cites this paper as [147]
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Cited by
Sorted by citations
A survey on the adoption of blockchain in IoT: challenges and solutions
Uddin, M. A., Stranieri, A., Gondal, I., & Balasubramanian, V. (2021) · Blockchain: Research and Applications · doi:10.1016/j.bcra.2021.100006 · Cited by 365 · see citing works
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- Authors
- Jabbar, A., & Dani, S.
- Affiliations
- University of Huddersfield (GB)
- Corresponding author
- Dani, Samir
- Venue
- International Journal of Production Research
- Publisher
- Informa UK Limited
- Published
- 2020-04-27
- Volume
- 58
- Issue
- 11
- Pages
- 3423-3436
- ISSN
- 0020-7543 (ISSN-L)
- 1366-588X
- OpenAlex
- W3016134317
- Cited by
- 104
- References
- 47
- Citations by year
- 2026: 9 · 2025: 15 · 2024: 17 · 2023: 26 · 2022: 20 · 2021: 15 · 2020: 2
- FWCI
- 14.82
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Locations
- International Journal of Production Research (publishedVersion, cc-by)
- Keele Research Repository (Keele University) (submittedVersion, cc-by)
- RePEc: Research Papers in Economics (submittedVersion)
- Huddersfield Research Portal (University of Huddersfield) (submittedVersion, cc-by)
- Topics
- Physical Sciences › Computer Science › Information Systems › Blockchain Technology Applications and Security
- Physical Sciences › Computer Science › Information Systems › Blockchain Technology in Education and Learning
- Social Sciences › Business, Management and Accounting › Management Information Systems › Supply Chain and Inventory Management
- Keywords
- blockchain, transaction costs, computational cost, gas fees, smart contracts, supply chain operations, transaction frequency, supply chain management
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