DTS - Week 4 (MC & Case)
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Questions and Answers

Which of the following best describes the role of analysis in blockchain deployment?

  • Identifying network needs, interdependencies, and participant concerns. (correct)
  • Evaluating the risks of decentralizing decision-making processes.
  • Enforcing rules for decision-making authority within the blockchain network.
  • Establishing the specific governance mode to be adopted.

In which scenario is the chief mode most effective as a blockchain governance structure?

  • Coordinating processes among departments in a large corporation with strict internal requirements. (correct)
  • Managing a blockchain that includes competitors and suppliers in a collaborative framework.
  • Facilitating decision-making across multiple organizations where control is shared equally.
  • Providing hierarchical governance for public and open blockchain networks.

What is the primary risk of transitioning from a custodian governance mode to a consortium governance mode?

  • Reduced trust between participants due to the absence of shared authority.
  • Increased operational inefficiencies due to centralized decision-making.
  • Potential inclusion of competitors and reduced individual control. (correct)
  • Lack of transparency between participating organizations.

Which governance mechanism primarily addresses the allocation of tasks and responsibilities among blockchain participants?

<p>Coordination (C)</p> Signup and view all the answers

How does the augmented governance framework differ from automated governance?

<p>Augmented governance combines algorithmic and human trust, whereas automated governance relies solely on algorithmic trust. (B)</p> Signup and view all the answers

In the context of digital governance, which of the following exemplifies actorithmic trust?

<p>A customer choosing an Airbnb property based on both reviews and platform algorithms. (C)</p> Signup and view all the answers

What is the primary benefit of isolating in blockchain governance strategies?

<p>Establishing proprietary standards to maintain control and reduce reliance on external organizations. (A)</p> Signup and view all the answers

How do cybernetic incentives differ from bureaucratic incentives in governance mechanisms?

<p>Cybernetic incentives dynamically adjust rewards using feedback loops, whereas bureaucratic incentives rely on pre-established contracts. (A)</p> Signup and view all the answers

Which governance mode is most likely to face bureaucratic challenges in decision-making?

<p>Consortium (D)</p> Signup and view all the answers

What is the primary purpose of feedback loops in maintaining long-term alignment in blockchain networks?

<p>To help participants adapt to changing governance structures and address evolving needs. (B)</p> Signup and view all the answers

Streamline Co. has implemented a blockchain network for its supply chain, but some suppliers are hesitant to participate. These suppliers are concerned about sharing sensitive data with competitors who are also part of the network. Which governance mechanism can Streamline Co. use to build trust and address these concerns?

<p>Control: Establishing immutable rules for data usage and access. (A)</p> Signup and view all the answers

A logistics company is considering adding new delivery partners to its blockchain network to improve last-mile delivery efficiency. These new partners have expressed interest but require time to adapt to the system. Which strategic move would best help the company integrate new partners?

<p>Connecting: Extending the blockchain network to include external organizations. (C)</p> Signup and view all the answers

A ride-sharing platform uses an automated system to assign drivers to customers. Recently, the system failed during high-demand hours, leading to customer complaints. Management is considering changes to its governance approach. Which governance framework would be most effective in balancing automation with human intervention for better decision-making?

<p>Augmented governance (B)</p> Signup and view all the answers

A group of financial institutions is collaborating on a blockchain to streamline cross-border payments. One of the members is concerned that competitors could misuse the shared data for strategic advantage. What is the primary governance challenge in this scenario?

<p>Control: Allocating authority and protecting sensitive information. (B)</p> Signup and view all the answers

An e-commerce company has implemented a blockchain to allow customers to track their orders in real-time. However, some customers complain they still don't understand how the system benefits them. How can the company enhance customer trust and satisfaction using blockchain technology?

<p>Provide clear communication about the blockchain's transparency benefits. (C)</p> Signup and view all the answers

Flashcards

Analysis in blockchain deployment

The process of analyzing a blockchain deployment by understanding the needs, dependencies, and concerns of its participants.

Chief governance mode

A centralized governance structure where one entity has control over the blockchain and its decisions.

Consortium governance mode

A governance mode where various organizations collaborate and share control over the blockchain.

Risk of transitioning from custodian to consortium

The risk of losing individual control and facing competition when transitioning from a centralized to a collaborative blockchain governance.

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Coordination in blockchain governance

The mechanism in blockchain governance that focuses on assigning tasks and responsibilities among participants.

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Augmented governance

A governance framework that combines algorithmic decision-making with human oversight and intervention.

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Actorithmic trust

A type of trust that relies on algorithms and their outputs to make decisions, often seen in platforms like Airbnb.

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Isolating in blockchain governance

A strategy in blockchain governance that focuses on creating internal control and reducing reliance on external parties.

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Cybernetic incentives

Incentives that dynamically adjust based on feedback loops and changing conditions, often used in blockchain networks.

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Bureaucratic challenges in consortium governance

The primary challenge faced by consortium governance modes, involving difficulties in making decisions when multiple organizations share control.

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Feedback loops in blockchain networks

The use of feedback loops to adapt to changing conditions and ensure long-term alignment in a blockchain network.

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Control in blockchain networks

A mechanism used to build trust in blockchain networks by establishing clear rules and controls for data usage and access.

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Connecting in blockchain governance

A strategic move in blockchain governance involving extending the network to include external organizations, allowing integration and collaboration.

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Augmented governance

A governance framework that relies on human decision-making and intervention, often used when balancing automation with human control.

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Control in collaborative blockchain networks

The primary challenge in blockchain networks where collaborating organizations need to ensure data security and prevent misuse by competitors.

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Transparency in blockchain for customers

A mechanism to enhance customer trust by providing transparent and clear information about the benefits and workings of a blockchain.

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Risk evaluation in blockchain

The process of evaluating the risks and potential benefits of decentralizing decision-making processes in a blockchain deployment.

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Custodian governance mode

A governance structure where a single entity, like a company or organization, controls the blockchain and its decision-making.

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Determining governance mode

The process of establishing a specific governance mode for a blockchain, considering factors like control, participation, and decision-making.

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Incentives in blockchain

The mechanism that establishes trust in blockchain networks by providing incentives for participants to adhere to rules and contribute.

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Automated governance

A governance framework that relies solely on algorithms and automated processes to make decisions without human intervention.

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Consortium governance

A governance structure where a group of entities collaborates and shares control over the blockchain.

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Clan governance mode

A governance model where participants are closely connected and decisions are made in a collaborative and decentralized manner.

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Relationship management in blockchain

A governance mechanism that focuses on managing relationships and interactions between participants, ensuring their interests align with the organization's objectives.

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Balancing automation and human intervention

The challenge of balancing automation with human oversight in governance frameworks, especially in cases where human intervention is needed to correct errors or make critical decisions.

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Collaborative blockchain networks

A blockchain network where participants share sensitive data and collaborate to achieve common goals, requiring strong governance mechanisms to build trust and prevent misuse.

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Transparency in blockchain

A governance strategy that involves making information and activities transparent to participants, enhancing trust and accountability in the network.

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Adaptive governance

A governance framework that aims to maintain a balance between centralized control and decentralized participation, adapting decisions based on feedback and evolving needs.

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Transitioning to blockchain governance

The challenge faced by organizations when transitioning from traditional, centralized governance to a blockchain-based, decentralized system, often involving adjustments in decision-making and control.

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Study Notes

Blockchain Deployment Analysis

  • Analysis in blockchain deployment involves identifying network needs, interdependencies, and participant concerns.

Blockchain Governance Structure

  • A blockchain governance structure that is most effective in a collaborative framework among competitors and suppliers is a structure that coordinates processes within a large corporation.

Transitioning from Custodian to Consortium Governance

  • The primary risk of transitioning from a custodian governance model to a consortium governance model is that participants may lose a sense of shared authority which will reduce trust among participants.

Allocation of Tasks & Responsibilities

  • The allocation of tasks and responsibilities among blockchain participants involves coordination.

Augmented vs. Automated Governance

  • Augmented governance combines human and algorithmic trust, whereas automated governance relies solely on algorithmic trust.

Digital Governance - Actorithmic Trust

  • Customer choosing an Airbnb property based on reviews and platform algorithms exemplifies actorithmic trust.

Blockchain Governance Strategies

  • Isolating blockchain governance strategies primarily benefit from reducing internal dependencies to focus on external participants, and maintaining control by establishing proprietary standards.

Cybernetic vs. Bureaucratic Incentives

  • Cybernetic incentives dynamically adjust rewards using feedback loops, whereas bureaucratic incentives rely on pre-established contracts.

Bureaucratic Governance Challenges

  • Consortium governance is most likely to face bureaucratic challenges in decision-making.

Feedback Loops in Blockchain Networks

  • Feedback loops in blockchain networks help participants adapt to changing governance structures and address evolving needs.

Streamline Co. & Trust Building

  • Streamline Co. can use control and the establishment of immutable rules for data usage and access to build trust among its suppliers.

Strategic Partnerships in Blockchain Networks

  • Connecting a blockchain network to include external organizations (i.e. partners) is a strategic move helpful for integrating new delivery partners.

Governance Framework for Ride-Sharing Platform

  • Implementing an augmented governance framework is most effective for balancing automation with human intervention, resolving complaints from increased customer complaints and better decision-making.

Governance Challenge in Cross-Border Payments

  • The key governance challenge in cross-border payments is the concern that competitors may misuse shared data for strategic advantage, so maintaining trust and control should be a top priority.

E-Commerce Company & Customer Trust

  • In order to enhance customer trust, an e-commerce company should provide clear communication about the benefits of blockchain technology.

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