Journal of Business Thought

Daniel Broby ¹, Devraj Basu ¹, Ashwin Arulselvan ¹

Affiliations
1 Strathclyde Business School, Strathclyde University, 199 Cathederal Street, Glasgow G40QU, Scotland, GB

Abstract

This paper investigates the importance of “time of execution” and the relevance of “precision time” in order driven transactions done over distributed ledgers. We created a distributed market place using stock market price data from the Toronto Stock Exchange (TMX). We then proceeded to test and measure the impact of timing of orders at the nanosecond level. Whilst price discovery in order driven markets is done instantaneously, with distributed markets, it is necessary to know which order to process first to avoid “front-running”. We argue that a protocol for the time of order of receipt and execution should be subject to nanosecond stacking. Our approach incorporates both transitory and permanent price discovery components. It allows for the efficient processing of transactions and the order that are received by a market clearing distributed ledger.

Keywords

Clearing, Coordinated Universal Time, Distributed Ledger, FinTech, High Frequency Trading, Precision Time, Price Discovery, Settlement, Stock Market, Timestamping.

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Daniel Broby ¹, Andrea Bracciali ², Siham Lamssaoui ³

Affiliations
1 Professor, Department of Accounting, Finance and Economics, Ulster University, Belfast Campus, BT15 1ED, Northern Ireland, IE
2 Lecturer, Department of Computing and Mathematics, Stirling University, Stirling, FK9 4LA, Scotland, GB
3 PhD. Research Scholar, Department of Computer Sciences, Ibn Tofail University, Kenitra, 14000, Morocco, MA

Abstract

This paper presents an infrastructure redesign of the online accommodation rental marketing model. The decentralized marketplace it proposes represents a significant Business Model Innovation (BMI) and a new normative marketing tool. We suggest it has the potential to be disruptive from an International Marketing (IM) perspective, shifting the focus from owners as agents, to a shared one with renters and agents. This is supportive of the paradigm where marketing is focused on facilitating and maintaining relationships. Using code that we developed, we illustrate how a decentralized application (dAirBnB) can promote disintermediation and can be built to optimize price discovery. Utilizing block chain technology, we show how trust originates from the distributed consensus enforced by a network of peers. This trusted interaction is facilitated between untrusted parties over the internet, thereby changing the marketing relationship. In this respect, the application and the business model are inextricably linked. Enabled by the technology, we propose a monetization of reputation, which introduces the concept of good behaviour as an asset in a marketing context. We explore the implications of this for both BMI and IM. Our approach would increase the quality and quantity of information in online rentals, both major dimensions of marketing advantage. The dominant position of AirBnB represents a limitation on the implementation of our approach and would be an area for policy makers to focus on.

Keywords

Business Model, Decentralized Marketing, Online Accommodation.

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