Potential Prospects and Challenges of Smart Contract Diffusion: Case Study of the Computerized School Selection Placement System (CSSPS) in Ghana
Journal of Economics, Management and Trade,
Page 14-29
DOI:
10.9734/jemt/2022/v28i430402
Abstract
The popularity of smart contracts is synonymous with blockchain. However, the blockchain application supersedes smart contracts. Nonetheless, sub-Saharan African countries can benefit from the cost-reduction, risk elimination, and timely execution properties of smart contracts. Therefore, the study assesses the prospects and challenges of diffusing smart contracts in the sub-region. Using the Computer School Selection and Placement System (CSSPS) of Ghana Education Services as a case study, the investigation applies 1154 online survey data in a hierarchical logistic regression model to estimate the effects of end-user demographics (students, teachers, parents), the prospects and challenges of the CSSPS on diffusion. The results disclose that although the CSSPS reduces cost and improves efficiency, lack of flexibility, information asymmetry, and inequity in the selection and placement of students is problematic. Further, end-user characteristics had marginal significant effects on the diffusion, the perceived prospects of the CSSPS had strong positive effects on diffusion, and the perceived challenges of the CSSPS had a negative relationship on the diffusion of CSSPS in Ghana. This provides guidelines for the design and the deployment of smart contracts in public and private service delivery in sub-Sahara Africa.
Keywords:
- Smart contract
- blockchain
- CSSPS
- diffusion
- Ghana
How to Cite
Lartey, S. (2022). Potential Prospects and Challenges of Smart Contract Diffusion: Case Study of the Computerized School Selection Placement System (CSSPS) in Ghana. Journal of Economics, Management and Trade, 28(4), 14-29. https://doi.org/10.9734/jemt/2022/v28i430402
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Garrett JL, Rodermund R, Anderson N, Berkowitz S, Robb CA. Adoption of Mobile Payment Technology by Consumers. Family and Consumer Sciences Research Journal. 2014;42(4):358–368. Available:https://doi.org/10.1111/fcsr.12069
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Chavula HK. Telecommunications development and economic growth in Africa. Information Technology for Development. 2013;19(1):5–23. Available:https://doi.org/10.1080/02681102.2012.694794
Fairfield JAT, Fairfield J. Smart Contracts, Bitcoin Bots, and Consumer Protection Smart Contracts, Bitcoin Bots, and Consumer Protection. Washington and Lee Law Review Online. 2014;71(2)35–50. Available:http://scholarlycommons.law.wlu.edu/wlulr-online%0Ahttp://scholarlycommons.law.wlu.edu/wlulr-online
Mik E. Smart contracts: terminology, technical limitations and real world complexity. Law, Innovation and Technology. 2017;9(2):269–300. Available:https://doi.org/10.1080/17579961.2017.1378468
Tinn, K. (2017). Blockchain and the Future of Optimal Financing Contracts. 1–33.
Kim S-S, Jang W-J, Phuong H-T, Gim G-Y. A Comparative Study on the Intention of Using Blockchain Technology in Korea and Vietnam; 2018. Available:https://doi.org/10.14257/astl.2018.150.49
Lin T, Huan Z, Shi Y, Yang X. Implementation of a Smart Contract on a Consortium Blockchain for IoT Applications. Sustainability. 2022;14:3921. Available:https://doi.org/10.3390/SU14073921
Schatsky D, Muraskin C. Beyond bitcoin : Blockchain is coming to disrupt your industry. Deloitte University Press. 2015;1–27.
Guo Y, Liang C. Blockchain application and outlook in the banking industry. Financial Innovation. 2016;2(1):24. Available:https://doi.org/10.1186/s40854-016-0034-9
Varma JR. Blockchain in Finance. Vikalpa. 2019;44(1):1–11. https://doi.org/10.1177/0256090919839897
Savelyev A. Contract law 2.0: ‘Smart’ contracts as the beginning of the end of classic contract law. Information and Communications Technology Law. 2017;26(2):116–134. Available:https://doi.org/10.1080/13600834.2017.1301036
Zheng Z, Xie S, Dai HN, Chen W, Chen X, Weng J, Imran M. An overview on smart contracts: Challenges, advances and platforms. Future Generation Computer Systems. 2020;105:475–491. Available:https://doi.org/10.1016/j.future.2019.12.019
Enyi J, Le NDY. Regulating Initial Coin Offerings (“Crypto-Crowdfunding”). J. INT’L BANKING & FIN. L.(UK). 2017;8:495.
Hornuf L, Schwienbacher A. Should securities regulation promote equity crowdfunding? Small Business Economics. 2017;49(3):579–593. Available:https://doi.org/10.1007/s11187-017-9839-9
Yermack D. FinTech in Sub-Saharan Africa : What Has Worked Well , and What Hasn ’ t FinTech in Sub-Saharan Africa : What Has Worked Well , and What Hasn ’ t. June; 2018.
Coffie CPK, Zhao H, Kwofie B, Tetteh ED. Blockchain Smart Contracts and Empathy Trade-Off. 2020;141–149. Available:https://doi.org/10.4018/978-1-7998-3632-2.CH009:
Haddad C, Hornuf L. The emergence of the global fintech market: Economic and technological determinants. Small Business Economics. 2016;1–25.
Braine L. Smart contracts in banking : foundations, design landscape and research directions. LSE Law and Financial Markets Project - Blockchain Financial Assets and beyond: Legal and Regulatory Perspectives, May; 2017.
Wien TU, Angelo M, Soare A. Smart Contracts in View of the Civil Code; 2019.
Catalini C, Gans JS. Some Simple Economics of the Blockchain. SSRN Electronic Journal; 2016. Available:https://doi.org/10.2139/ssrn.2874598
Pilkington M. Blockchain Technology: Principles and Applications. Research Handbook on Digital Transformations. 2015;1–39. Available:https://doi.org/10.4337/9781784717766.00019
Buterin V. On Public and Private Blockchains. Ethereum Blog Crypto Renaissance Salon; 2015. Available:https://blog.ethereum.org/2015/08/07/on-public-and-private-blockchains/
Adhami S, Giudici G, Martinazzi S. Why do businesses go crypto? An empirical analysis of initial coin offerings. Journal of Economics and Business. 2018;100:64–75.
Holden R, Malani A. Can Blockchain Solve the Holdup Problem in Contracts?. 2005;28:26–28. Available:http://www.law.northwestern.edu/research-faculty/colloquium/law-economics/documents/Malani_Blockchain.pdf
Zhu H, Zhou ZZ. Analysis and outlook of applications of blockchain technology to equity crowdfunding in China. Financial Innovation. 2016;2(1):29. Available:https://doi.org/10.1186/s40854-016-0044-7
Wright A, De Filippi P. Decentralized Blockchain Technology and the Rise of Lex Cryptographia. SSRN Electronic Journal; 2015. Available:https://doi.org/10.2139/ssrn.2580664
Faggart E. The top 5 crytocurrencies failure of all time. Bitcoinist.Com; 2017.
Yousafzai SY, Foxall GR, Pallister JG. Explaining internet banking behavior: Theory of reasoned action, theory of planned behavior, or technology acceptance model? Journal of Applied Social Psychology; 2010. Available:https://doi.org/10.1111/j.1559-1816.2010.00615.x
Giotopoulos I, Kontolaimou A, Korra E, Tsakanikas A. What drives ICT adoption by SMEs? Evidence from a large-scale survey in Greece. Journal of Business Research. 2017;81:60–69. Available:https://doi.org/10.1016/j.jbusres.2017.08.007
Yousafzai SY, Foxall GR, Pallister JG. Explaining internet banking behavior: theory of reasoned action, theory of planned behavior, or technology acceptance model? Journal of Applied Social Psychology. 2020;40(5):1172–1202.
Garrett JL, Rodermund R, Anderson N, Berkowitz S, Robb CA. Adoption of Mobile Payment Technology by Consumers. Family and Consumer Sciences Research Journal. 2014;42(4):358–368. Available:https://doi.org/10.1111/fcsr.12069
Rogers Everett M, Arvind Singhal, Margaret MQ. Diffusion of Innovations 1. In An Integrated Approach to Communication Theory and Research, Routledge. 2019:415–434.
Coffie CPK, Zhao H, BK-C-IU. of, & 2020, undefined. (n.d.). Blockchain Smart Contracts and Empathy Trade-Off: Is Africa Ready? Igi-Global.Com; 2020. Available:https://www.igi-global.com/chapter/blockchain-smart-contracts-and-empathy-trade-off/254824
Chavula HK. Telecommunications development and economic growth in Africa. Information Technology for Development. 2013;19(1):5–23. Available:https://doi.org/10.1080/02681102.2012.694794
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