Blockchain-Based Corporate V-Networks
= "V-form networks consist of a number of fully independent companies that effectively operate as one vertically integrated company through blockchain technology". 
"A blockchain economy will have more, smaller firms linked together by protocols. ... It’s worth pointing out that these networks are inherently global, and any regulatory questions global as well."
- Chris Berg, Sinclair Davidson and Jason Potts 
"The Nobel laureate Oliver Williamson distinguishes between U-form companies and M-form companies.
Traditional U-form companies are unitary — their units are divided by business process (for instance, accounting, human resources, component manufacturing, assembly) and are not treated as separate cost centres.
M-form companies are multidivisional — their units are self-contained divisions that report profits and losses to an umbrella central body. They’re fully owned by a parent company, but they tend to have their own business services (accounting and human resources departments, for instance) and even market relationships.
But now we see a new corporate form — the V-form network — made possible because thanks to the application of distributed ledger technology to supply chain problems.
These V-form networks consist of a number of fully independent companies that effectively operate as one vertically integrated company through blockchain technology, coordinated and supplied by a third party.
This is a big change to the nature of the firm. We can already see V-form networks in the real world. They date as far back as January. It is surprising the economics community haven’t noticed them yet.
Blockchains can work to coordinate supply chains without the need for either (traditional) vertical integration or regulation. The vertical integration is outsourced to a distributed ledger. The blockchain provides the managerial service that coordinates each ‘unit’ (that is, firm) in the supply chain.
Regulators in any country can deal any firm in the supply chain as if it was a small unit of a larger, global company.
Each firm in the supply chain get the benefits of vertical integration through a network rather than a hierarchy.
In the V-form network, the blockchain’s token establishes the consortium, and incentivizes cooperative behaviour.
The token also serves to move rents around the network. In this way, the blockchain provides a market mechanism to solve the sort of bargaining problems described by another Nobel laureate, Ronald Coase, that may occur as the network operates.
Outsourced vertical integration could be applied to many industries that are now integrated. Energy firms that currently integrate the exploration, production, generation, and retail of electricity might be better decomposed, with blockchains and tokens taking the place of head offices. The token economy, rather than energy regulators, could make decisions about the distribution of rents around the network." (https://medium.com/cryptoeconomics-australia/outsourcing-vertical-integration-introducing-the-v-form-network-78e1aa93a814)
The IBM and Maersk TradeTech
Chris Berg, Sinclair Davidson and Jason Potts:
"Two weeks into 2018, IBM and the shipping giant Maersk announced a joint venture to develop a digital supply chain management system on their Hyperledger blockchain platform. Hyperledger is a private blockchain which requires permission to access.
In a previous Cryptoeconomics piece, we described how international trade is an information problem. As goods are shipped around the world, they are accompanied by information — really stacks of paperwork — that describe their provenance, destinations, regulatory and tax liabilities and so on.
In the IBM-Maersk system, each firm and bureaucracy in the supply chain — producers, shippers, port authorities, regulators, importers, retailers — will access and update a shared blockchain ledger containing all the information needed by each organisation.
And each organisation would have access to that information everywhere, ensuring complete visibility on where goods are in the world and which economic and regulatory hurdles they next need to overcome." (https://medium.com/cryptoeconomics-australia/outsourcing-vertical-integration-introducing-the-v-form-network-78e1aa93a814)