Blockchain, DLT and Fintech

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Paper Type

Short

Paper Number

1280

Description

The use of outcome-contingent payments is a common approach when evaluating and rewarding forecasters. But since realized outcomes are only determined in the future, outcome-contingent payments naturally lead to trust issues in that a forecaster must trust the forecast requester to make a payment after a forecast has been reported. This scenario is even worse in online crowdsourcing settings where conventional labor and contract laws are weak. In this paper, we suggest a blockchain-based system to reward online forecasters that alleviates the above trust issue and further brings transparency to the forecast evaluation process. In particular, through the use of smart contracts, our proposed system behaves as an escrow account mediating the interactions between forecasters and requesters. In terms of methodology, we follow the design science research framework to elaborate on the need, goals, and design of the proposed system.

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Dec 14th, 12:00 AM

How Blockchain Can Bring Trust and Transparency to the Payment of Crowd Forecasters

The use of outcome-contingent payments is a common approach when evaluating and rewarding forecasters. But since realized outcomes are only determined in the future, outcome-contingent payments naturally lead to trust issues in that a forecaster must trust the forecast requester to make a payment after a forecast has been reported. This scenario is even worse in online crowdsourcing settings where conventional labor and contract laws are weak. In this paper, we suggest a blockchain-based system to reward online forecasters that alleviates the above trust issue and further brings transparency to the forecast evaluation process. In particular, through the use of smart contracts, our proposed system behaves as an escrow account mediating the interactions between forecasters and requesters. In terms of methodology, we follow the design science research framework to elaborate on the need, goals, and design of the proposed system.

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