Design of Trusted B2B Market Platforms using Permissioned Blockchains and Game Theory

Abstract

Trusted collaboration satisfying the requirements of (a) adequate transparency and (b) preservation of privacy of business sensitive information is a key factor to ensure the success and adoption of online business-To-business (B2B) collaboration platforms. Our work proposes novel ways of stringing together game theoretic modeling, blockchain technology, and cryptographic techniques to build such a platform for B2B collaboration involving enterprise buyers and sellers who may be strategic. The B2B platform builds upon three ideas. The first is to use a permissioned blockchain with smart contracts as the technical infrastructure for building the platform. Second, the above smart contracts implement deep business logic which is derived using a rigorous analysis of a repeated game model of the strategic interactions between buyers and sellers to devise strategies to induce honest behavior from buyers and sellers. Third, we present a formal framework that captures the essential requirements for secure and private B2B collaboration, and, in this direction, we develop cryptographic regulation protocols that, in conjunction with the blockchain, help implement such a framework. We believe our work is an important first step in the direction of building a platform that enables B2B collaboration among strategic and competitive agents while maximizing social welfare and addressing the privacy concerns of the agents.