Toward an omniopticon: the potential of blockchain technology toward influencing vulnerable populations in contested markets

Abstract

PurposeThe purpose of this paper is to explore the use of blockchain technology in contested markets. The authors specifically consider the development and utilization of this accounting system as a device that might democratize contested markets for vulnerable populations, supporting contested entrepreneurs while “cooling” the moral contestation to the market.Design/methodology/approachThis study analyzes the relationship between vulnerable populations and contested market activities, the inclusive development and potential trust created by a blockchain accounting information system and how this interaction potentially creates support for economic and social systems.FindingsThis paper demonstrates that, in an era of decreased trust especially as it relates to a digital, globalized marketplace, blockchain has the potential to create democracies of access, trust and agency. This system overcomes many of the deficiencies associated with transparency and accountability and connects market participants with society, strengthening its potential to bridge two opposing vulnerable population viewpoints necessary for possible contested market development.Research limitations/implicationsThe authors contribute to a deeper understanding of the role of emerging technologies in the interconnectedness between vulnerable populations in a contested market. Recognizing that blockchain is an imperfect version of its ideal intention, the authors also discuss the limitations of the system with respect to corruption, collusion and potential issues of adoption, and how this reduces the influence of blockchain as a “cooling” device within contested markets.Practical implicationsThe authors provide an illustrative example whereby an entire industry might be persuaded from avoidance to promotion of new traceability devices and supported in the development of an accessible market.Social implicationsGlobal government's economic support for social systems continues to experience significant declines. With ever-degrading healthcare, infrastructure, public education, childcare, etc., new sources of economic influx are often desired. One potential source of additional funds is from the tax revenues derived from contested market transactions, those stigmatized industries often operating illegally. With substantial public distrust, blockchain potentially provides such industries with democratization and the trust necessary to transition the industry into a legal environment, with tax revenues benefiting various social systems.Originality/valueThis study goes beyond the preliminary discussions of the benefits and consequences of blockchain. Instead, the authors focus on the use of blockchain within contested markets and its ability to influence vulnerable populations. The authors also consider the use of blockchain-based accounting information systems to provide a holistic and more democratic platform from a regulatory, market participant and societal standpoint.

Blockchain in accounting, accountability and assurance: an overview

“…Another example related to governance is Carrasco and Romi (2022), who looked at the potential of blockchain technology to assist in managing contested markets. The authors focus on the legal cannabis market within the USA and outline how the blockchain ecosystem connects regulators, organisations and consumers.…”

“…Finally, blockchain is said to have the potential to increase equality, create democracies and foster trust and agency, as noted by Carrasco and Romi (2022). However, the dark side of blockchain is a theme in several AAAJ special issue papers, agreeing that this technology does not represent a panacea and cannot work if necessary conditions are not ensured within firms.…”

“…Lombardi et al (2022) highlight that the current enthusiasm for blockchain applications is (or should be) also accompanied by careful consideration of emerging risks and possible limitations that need to be far more explored and understood. Accordingly, per the blockchain limits, Carrasco and Romi (2022) recognise that this technology is an imperfect version of its ideal intention that still suffers limitations concerning corruption, collusion and adoption issues, possibly reducing its "cooling" influence within contested markets. Despite the possibilities of blockchain and triple-entry accounting systems, the paper by Kuruppu et al (2022) also critically reflects on these technologies' limitations.…”

“…(2022) specifically discuss the distinctions between different blockchains. The remaining papers (Carrasco and Romi, 2022; Kuruppu et al. , 2022; Ramassa and Leoni, 2022) focus on the implications of public blockchains.…”

“…Interestingly, two are literature reviews highlighting current and emerging research topics in blockchain and accounting (Garanina et al, 2022;Lombardi et al, 2022). Other papers in the special issue offer insights into different industries such as vulnerable and contested markets (Carrasco and Romi, 2022) and non-governmental organisations (NGOs) (Kuruppu et al, 2022), and research streams such as financial accounting (Dyball and Seethamraju, 2022), accounting regulation (Ramassa and Leoni, 2022), accountability (Tyma et al, 2022) and management accounting (Centobelli et al, 2022).…”