Impact of applying block chain on controlling, monitoring and enforcement costs in Iran

Subject Areas : Financial engineering

maryam Farzanehrafat ¹ , amir gholami ² , Seyed Mohammad Mehdi Ahmadi ³

1 - Department of Economics, North Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Department of Economics, North Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Department of Economics, North Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2022-05-23 Accepted : 2022-08-10 Published : 2023-09-23

Keywords: Encryption, Transaction cost, Blockchain, Digital currency, Controlling, monitoring and enforcement costs, Immutability of blockchain,

Abstract :

Blockchain technology is a meta-technology that integrates several technologies to form a secure platform for managing transactions . this study determine the effect of using blockchain technology on reducing costs in economic, in the period of 2019-2021. The hypothesis claims that blockchain enables us to reduce controlling, monitoring and enforcement costs. This research benefits from a pluralistic method to study the impact of applying blockchain technology in the field of economy. so, three different methods were used in order to investigate the research hypothesis including theoretical analysis, interview with experts and statistical inference. The findings confirmed the main claim of the hypothesis., the findings indicated that applying blockchain technology results in reduction of controlling, monitoring and enforcement costs. Among the well-surveyed features of the block chain technology, immutability and keeping record automatically by time- stamping reduce controlling, monitoring and enforcement costs more than other features, also confidentiality characteristics provided by encryption has the greatest impact on increasing transaction costs and in the other hand immutability of blockchain has the greatest impact on decreasing transaction costs. Moreover, blockchain can be aligned towards the goals of the resistance economy by bringing new and smart technology into the economy and reducing the costs.