Mechanisms for Dealing With the Unexpected in Small-Scale Contracting Using Smart Contracts

Abstract

Purpose - Demonstrate proof-of-concept for an expanded blockchain smart contract based small-scale contracting process that includes an internally managed arbitration service to manage disputes.

Design/Methodology/Approach - Using Ethereum smart contracts, we model a small-scale general contracting scenario with disruptions. Execution is demonstrated with the Remix Integrated Development Environment (IDE).

Findings - We show the feasibility of managing general contracting disputes with an internal arbitration service, completely encompassed within blockchain smart contracts.

Originality/value - This research continues an original effort to model the small-scale general contracting scenario on a blockchain network.

Research limitations/implications - Further work is required to expand the scope of dispute management and account for additional external factors. Also, full-scale decentralized application is not explored here.

Practical implications - This process expands the scope of current practices and tools, such as Angi, in a decentralized manner with blockchain.

Social Implications - Full-scale adoption at the small scale is likely difficult due to disbelief in technology, cost, and resistance to change.