A Blockchain-based Micro Economy Platform for Distributed Infrastructure Initiatives

Abstract

Distributed Infrastructure Initiatives (DIIs) are communities that collaboratively produce and consume infrastructure. To develop a healthy ecosystem, DIIs require an economic model that balances supply and demand, but there is currently a lack of tooling to support implementing such economic models. In this research, we propose an architecture for a platform that enables DIIs to implement such micro economic models, focused around a digital currency based on blockchain technology. The currency is issued according to the amount participants contribute to the initiative, which is quantified based on operational metrics gathered from the infrastructure. Furthermore, the platform enables participants to deploy smart contracts which encode self-enforcing agreements about the infrastructure services they exchange. The architecture has been validated through a case study at TTN, where a proof of concept of the architecture was implemented and evaluated. The case study revealed that the architecture is effective for the given situation, but needs more research in the areas of scalability and security to be deployed on a larger scale.