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Blockchain Vending Machine: A Smart Contract-Based Peer-to-Peer Marketplace for Physical Goods

Author

Listed:
  • Schär, Fabian
  • Schuler, Katrin
  • Wagner, Tobias

Abstract

In this paper, we propose an autonomous vending machine that is governed by a public Blockchain and smart contracts platform. Set up as a decentralized autonomous organization, it serves as an open marketplace for physical goods, where anyone can buy and/or sell objects. We propose a basic architecture for the machine, analyze pricing and fee mechanisms and examine potential pitfalls. Moreover, we discuss open issues, possible extensions and further areas for improvement. We conclude that the deployment of such machines could significantly improve our understanding of decentralized autonomous organizations and build a bridge between virtual and physical markets. Insights gained from such an experiment may raise important questions for further research.

Suggested Citation

  • Schär, Fabian & Schuler, Katrin & Wagner, Tobias, 2020. "Blockchain Vending Machine: A Smart Contract-Based Peer-to-Peer Marketplace for Physical Goods," MPRA Paper 101733, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101733
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    References listed on IDEAS

    as
    1. Montecchi, Matteo & Plangger, Kirk & Etter, Michael, 2019. "It’s real, trust me! Establishing supply chain provenance using blockchain," Business Horizons, Elsevier, vol. 62(3), pages 283-293.
    2. Coppinger, Vicki M & Smith, Vernon L & Titus, Jon A, 1980. "Incentives and Behavior in English, Dutch and Sealed-Bid Auctions," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 1-22, January.
    3. Schär, Fabian, 2020. "Blockchain Forks: A Formal Classification Framework and Persistency Analysis," MPRA Paper 101712, University Library of Munich, Germany.
    4. Aleksander Berentsen & Fabian Schär, 2018. "A Short Introduction to the World of Cryptocurrencies," Review, Federal Reserve Bank of St. Louis, vol. 100(1), pages 1-16.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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