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A blockchain-powered e-cognocracy model for democratic decision making

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Abstract

Electronic governance is used to empower citizens and help governments and organizations with strategic decision-making or policy-making. E-democracy and e-participation methods are essential tools used to engage citizens in decision-making. One of the recent e-democracy models is known as e-cognocracy. While having advantages relative to traditional e-democracy models, e-cognocracy still faces challenges such as fraud, centralization, information failure (voting paradox), and participation rate. This paper aims to design a blockchain-based electronic democracy model on a smart contract using e-cognocracy as the base model and the concept of futarchy and prediction markets. Using the design science research methodology, a three-stage blockchain-powered e-cognocracy method for democratic decision-making is developed. The proposed method of research includes three main stages: (1) Setting the problem, (2) the voting process, and (3) knowledge diffusion and evaluation, and the stage are done through several activities. This method is implemented as a smart contract on the Ethereum platform. Using the power of blockchain technology and the economic incentive model of futarchy, this method overcomes three main challenges for e-cognocracy. To demonstrate the methodology, it was applied in a real-case experience.

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(Source: Moreno-Jiménez et al. 2014)

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Notes

  1. Voting paradox means the total perceived benefits of voting are less than the costs paid for a vote in the view of voters.

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Author information

Authors and Affiliations

  1. Faculty of Economics and Management, Tarbiat Modares University, Tehran, Iran

    Sepehr Ghazinoory & Amirhosein Mardani

  2. ECE Department, University of Minnesota, Minneapolis, MN, 55455, USA

    Mohammad Ali Maddah-Ali

  3. ECE Department, Tarbiat Modares University, Tehran, Iran

    Gholam Ali Montazer

Authors
  1. Sepehr Ghazinoory
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  2. Amirhosein Mardani
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  3. Mohammad Ali Maddah-Ali
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  4. Gholam Ali Montazer
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Correspondence to Sepehr Ghazinoory.

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Appendix

Appendix

At the end of the democratic process of blockchain-powered e-Cognocracy in the IFA, to evaluate the overall experience of the method, a questionnaire based on the EF3 evaluation model was designed. The questionnaire is valid when over 90 percent of the questions were answered. The measurement scale of the questionnaire is from 0 (totally disagree) to 10 (totally agree). This questionnaire is based on Moreno-Jimenez et al. work on the EF3 evaluation method in 2021.

  1. (i)

    The system of member participation

    • In the current system of participation, the association represents my opinions and defends my interest

    • Individuals have a role in association decision-making

    • Companies have a role in association decision-making

    • Individuals should participate in the design of decisions

    • Individuals should make decisions in conjunction with companies

    • The IFA take individual opinions into account for decision-making

    • The IFA take companies' opinions into account for decision-making

    • The IFA administration informs members about the existing mechanisms of citizen participation

    • The IFA administration informs the members about the decision taken

    • The IFA administration informs the ecosystem and industry about the decision taken

    • Blockchain-powered e-Cognocracy contributes to the creation of a better society

  2. (ii)

    The creation of a better society

    • Participation is limited to member consultation by the IFA board

    • Participation includes debate/discussion with members, but the decision is taken by the IFA board.

    • Participation allows the joint decision between the IFA board and members

  3. (iii)

    Motivation

    • I cannot miss the opportunity to be part of a member participation initiative like this one

    • I think it is a very important opportunity to express my opinion

    • I believe that this initiative will allow me to enrich myself as a person

    • I am interested in participating in cryptocurrency regulation activities

    • I do not agree with the current regulation in the cryptocurrency industry

  4. (iv)

    Evaluation of the Technology Support and Applications:

    • The computer equipment was adequate

    • The presentation structure of the program was simple and understandable

    • It was easy and comfortable to work with blockchain wallets

    • There were too many errors/incidents in the computer application

    • The web page was very well designed

    • The voting system was easy to use

    • The discussion system for the incorporation of arguments was adequate

    • The discussion system allowed me to know and share opinions

    • I consider that my anonymity was assured throughout the entire process

    • In general, I liked the design of the software application

    • In general, I am satisfied with the computer application used

  5. (v)

    Evaluation of the Information:

    • It was easy to understand

    • It was suitable

    • It was received on time

    • There were virtually no errors

    • In general, I am satisfied with the information that I have received

  6. (vi)

    Evaluation of the Support Staff

    • They helped my involvement in the member participation process

    • They gave me additional information

    • Without the support staff, I would not have been able to participate

    • Overall, I am satisfied with the help of the support staff

  7. (vii)

    Overall Evaluation:

    • I enjoyed participating in this initiative

    • I have learned a lot from the experience

    • I feel that my participation has improved my ingenuity and creativity

    • The experience allowed me to feel involved in regulatory decision making

    • My perception of social belonging in my association has increased (identity)

    • The discussions in the forum influenced my decisions

    • Participating in this experience was not a waste of time

    • I would participate again in a similar experience

    • Other associations should incorporate this type of member participation

    • Blockchain-powered e-Cognocracy improves the current democratic system

    • I feel satisfied with my participation in this initiative

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Ghazinoory, S., Mardani, A., Maddah-Ali, M.A. et al. A blockchain-powered e-cognocracy model for democratic decision making. Inf Syst E-Bus Manage (2024). https://doi.org/10.1007/s10257-023-00663-x

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