Strategic Necessities

Buyer and seller value in a polycentric system lies in sincerely allowing strong interactions. One group’s presence attracts more of another’s. Intermediation and demand and supply matching enhances efficiency and optimizes compatibility.  A virtuous growth cycle is in play. This ensures effective implementation of digital commerce.

In a contemporary polycentric framework each unique platform component exercises independent authority. It enforces rules in its defined action are and contributes to overall business platform ecosystem legitimacy. The entire ecosystem settles into an equilibrium position with all stakeholders satisfied.

Positive contingencies may be balanced by countervailing disequilibrium. Seamless access to opportunities can become challenging because of market imperfections. The presence of behavioral factors such as ex-ante adverse selection and ex-post moral hazard may create dissonances in exchange deals. These create large transaction costs.

Stakeholder information flows are asymmetric.  Adverse selection can be present in platforms as

stakeholders may not trust other stakeholders’ identities. Physical monitoring of contract fulfillment and mutual monitoring by all stakeholders will not occur. Thus moral hazard can be present in a business platform with no contract fulfillment guarantee.

Blockchain-based governance models mitigate mutual agreement difficulties. Uncertainty can discourage repeat transaction engagements. Opportunism, misrepresentation, adverse selection and moral hazard can occur. These foster uncertainties.  These behavioral factors compromise platform robustness and lead to disequilibrium in exchange processes.

These blockchain based coordination models are anchored on recognition of apposite incentives. These models  coordinate behavior across multiple stakeholders. These models founded on blockchain principles induce an architectural change in reaching equilibrium in value creation.

Key features uncompromisingly define the successful occurrence of transactions in business platforms. Probity is a core necessity to support value-creating transactions in business platforms. 

Consumers seek assurance of a market’s probity and transaction performance across various dimensions of legitimacy.  A Blockchain-anchored participatory market model generates the complete confidence of all stakeholders in fairness, equity and market activity legitimacy.

In the presence of key dimensions of Blockchain-based legitimacy, business platform transactions are characterized by high probity and complete trustworthiness. 

Cognitive legitimacy ensures the comprehensive coverage of all aspects of an ecosystem activities in the presence of stakeholder variety. Normative legitimacy ensures that all activities are appropriately conducted and fraud never occurs while  pragmatic legitimacy ensures consumers’ self-interests are met.