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Library/DP2 - Enforceable and immutable algorithmic contracts

Design Principle

DP2 - Enforceable and immutable algorithmic contracts

Contracts between the newsvendor and the expert should be defined as enforceable and immutable algorithms.

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Concept identity

design-knowledge/aligning-newsvendors-scoring-rules-dp2
Open concept record
Producer label
DP2
Source paper
Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules
Timestamp
2026-08-05T00:00:00+00:00
Bundle path
design-knowledge/aligning-newsvendors-scoring-rules-dp2.md
aligning-newsvendors-scoring-rulesdesign-principleforecastingsmart-contractssupply-chaintrust

Design principle DP2: Enforceable and immutable algorithmic contracts

Contracts between the newsvendor and the expert should be defined as enforceable and immutable algorithms. One can code a contract between a newsvendor and an expert as a smart contract - an algorithm stored in the blockchain whose source code is immutable - which fulfills this design principle.

Source paper

This design principle is proposed by Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules (Arthur Carvalho, Majid Karimi, 2021).

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1 Paper

papers/aligning-newsvendors-scoring-rules

Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules

The paper proposes a proper scoring rule, tailored to the newsvendor's decision problem, that rewards a forecasting expert for higher effort, and shows that coding the rule as a blockchain-based smart contract lets the newsvendor signal trustworthiness while inducing the expert to exert more effort.

aligning-newsvendors-scoring-rulesblockchaindesign-science-researchforecasting+3

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    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules

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    DP2 - Enforceable and immutable algorithmic contracts
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    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules
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    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules
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    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules

    Paper
    Source
    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules
    Target
    DP2 - Enforceable and immutable algorithmic contracts
    Link label
    Design principle DP2: Enforceable and immutable algorithmic contracts
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    Resolved

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Design PrincipleSeed

Enforceable and immutable algorithmic contracts

Concept identity

Concept ID
design-knowledge/aligning-newsvendors-scoring-rules-dp2
Producer label
DP2
Native type
design-principle

Description

Contracts between the newsvendor and the expert should be defined as enforceable and immutable algorithms. One can code a contract between a newsvendor and an expert as a smart contract - an algorithm stored in the blockchain whose source code is immutable - which fulfills this design principle.

DOI

https://doi.org/10.1016/j.dss.2021.113626

Tags

  • aligning-newsvendors-scoring-rules
  • design-principle
  • forecasting
  • smart-contracts
  • supply-chain
  • trust
Description and publication link from the library record.

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{
  "type": "design-principle",
  "title": "DP2 - Enforceable and immutable algorithmic contracts",
  "description": "Contracts between the newsvendor and the expert should be defined as enforceable and immutable algorithms.",
  "resource": "https://doi.org/10.1016/j.dss.2021.113626",
  "source_paper": "Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules",
  "label": "DP2",
  "tags": [
    "aligning-newsvendors-scoring-rules",
    "design-principle",
    "supply-chain",
    "forecasting",
    "smart-contracts",
    "trust"
  ]
}