Using the LTO Network Level 1 Blockchain to Automate Inter-Organizational Business Processes
Khrypko S. L., Shcherbakov S. S.

Khrypko, Serhii L., and Shcherbakov, Serhii S. (2024) “Using the LTO Network Level 1 Blockchain to Automate Inter-Organizational Business Processes.” The Problems of Economy 2:205–212.
https://doi.org/10.32983/2222-0712-2024-2-205-212

Section: Economics and Enterprise Management

UDC 004.85:005.8:336.76

Abstract:
The article is devoted to the consideration of blockchain technology as a means of automating inter-organizational business processes. It is noted that the digitalization and automation of internal business processes bring significant benefits in terms of increasing productivity and reducing costs. However, organizations face difficulties when trying to obtain such benefits for inter-organizational processes, partly due to a lack of trust. This paper considers a blockchain approach to address this problem. Bitcoin has demonstrated how blockchain can provide a distributed system without the need for trust through cryptography and decentralization. LTO extends this approach with a decentralized workflow engine for ad-hoc collaboration. Information is exchanged between participants through private event chains for each process and hashed on a public blockchain. This hybrid approach allows organizations to comply with data protection requirements and avoid scalability issues typical of blockchain projects. The advantages of LTO live contracts over Ethereum smart contracts are discussed. Live contracts do not contain values directly, but describe the interaction between the parties, unlike the cryptographic "boxes" of smart contracts. Modeling live contracts as finite state machines allows visualizing them in the form of a flowchart. Alternative modeling techniques such as Petri nets and BPMN are discussed. The article describes a scenario-based approach to defining a workflow containing states, actions, participants, assets, and embedded data objects. The features of data objects, participant identifiers, process execution and its adaptability are detailed. The author explains the operation of a private event chain as an ad-hoc private blockchain that ensures the consistency of the process state between nodes. Methods of ensuring data privacy are discussed. The second part of the article is devoted to the global public blockchain LTO to confirm information from private event chains. The consensus algorithm is explained based on the importance of token ownership and its use to prevent abuse. Optimizations, such as the NG protocol and aggregation blocks, are discussed to scale with a large number of transactions. The last part describes the architecture of the platform and its components: microservices, application layers, container orchestration. The platform makes it easy to digitalize and automate inter-organizational interactions using live contracts on the blockchain.

Keywords: blockchain, inter-organizational processes, automation, live contracts, modeling, data privacy.

Fig.: 1. Formulae: 2. Bibl.: 15.

Khrypko Serhii L. – Doctor of Sciences (Engineering), Professor, Head of the Department, Department of Information Technologies and Design, Classic Private University (70B Zhukovskoho Str., Zaporіzhzhia, 69002, Ukraine)
Email: ur9qq@ukr.net
Shcherbakov Serhii S. – Postgraduate Student, Classic Private University (70B Zhukovskoho Str., Zaporіzhzhia, 69002, Ukraine)
Email: sergiyscherbakov@ukr.net

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