# Blockchain-Embedded Strategic Options for Satellite Operators: Sell, SataS, or Dual?
## 5 Values of Blockchain Technology  
After deriving the equilibrium decisions and performance for the sell, SataaS, and dual-channel strategies in the N and B cases, we define the following terms, which represent the value of BCT to the SO, consumers, and social welfare. The channel can be written as follows:  
\[VSO^{B} =\pi^{B}-\pi^{N} \tag{17}\] \[VCS^{B} =CS^{B}-CS^{N}\]  
**Proposition 3**. : _(a) When one chooses the SataaS channel, \(B\left( \begin{smallmatrix}\leq\\ >\\ >\end{smallmatrix} \right)\frac{s(1-\beta)[2-s(1-\beta)]}{4}\Leftrightarrow\pi_{ s}^{B}\left( \begin{smallmatrix}\geq\\ <\\ \end{smallmatrix} \right)\pi_{s}^{N}\); \(CS_{s}^{B}>CS_{s}^{N}\). (b) When one chooses the dual channel, \(B\left( \begin{smallmatrix}<\\ >\\ >\end{smallmatrix} \right)\frac{-2b\beta es(-be+c_{p}+c_{r})+b\beta e^{2}es^{2}-be \left(be+2\beta es-1\right)+\left(c_{p}+c_{r}\right)^{2}}{4 be\left(1-be\right)}\)\(+\frac{-c_{r}^{2}+2\beta c_{r}e+e\left(-(\beta-1)^{2}-2\beta e+e\right)}{4(1-e)e} \Leftrightarrow\pi_{d}^{B}\left( \begin{smallmatrix}>\\ <\\ \end{smallmatrix} \right)\pi_{d}^{N}\); \(CS_{d}^{B}>CS_{d}^{N}\). (c) When one chooses the sell channel, \(c_{b}\left( \begin{smallmatrix}=\\ >\\ >\end{smallmatrix} \right)\) be \(-\sqrt{eb(c_{r}-e)^{2}}-c_{r}\Leftrightarrow\pi_{r}^{B}\left( \begin{smallmatrix} >\\ <\\ \end{smallmatrix} \right)\pi_{r}^{N}\) and \(CS_{r}^{B}\left( \begin{smallmatrix}\geq\\ <\\ \end{smallmatrix} \right)CS_{r}^{N}\)._  
Proposition 3 implies the conditions for adopting BCT in different channels and the outcomes are summarized in Table 8. Proposition 3(a) gives the threshold of the BCT cost in the SataaS channel. When \(B<\frac{s(1-\beta)[2-s(1-\beta)]}{4}\), it is better for the SO to adopt BCT. The value of BCT for the SO and customers in Sataas is illustrated in Figure 2. The figure indicates that as the fixed cost of BCT increases, the value of SO's payoff diminishes, while the value of consumer surplus is always positive. Therefore, as long as the SO adopts the BCT at the proper cost, both they and the consumers gain more from the presence of BCT than the absence of BCT. Proposition 3(b) gives the threshold of the BCT cost in the dual channel. When \(B<\frac{-2b\beta es(-be+c_{p}+c_{r})+b\beta e^{2}es^{2}-be\left(be+2\beta es-1 \right)+\left(c_{p}+c_{r}\right)^{2}}{4 be\left(1-be\right)}+\frac{-c_{r}^{2}+2 \beta c_{r}e+e\left(-(\beta-1)^{2}-2\beta e+e\right)}{4(1-e)e}\), the SO should adopt BCT. Figure 3 shows the value of BCT in terms of the profit of the SO and the customer surplus. The implication of Figure 3 is similar to that of Figure 2, i.e., both the SO and the consumer can benefit more if they choose to adopt the blockchain at an appropriate BCT cost. Proposition 3(c) gives the threshold of the BCT cost in the sell channel. When \(c_{b}<be-\sqrt{be(c_{r}-e)^{2}}-c_{r}\), it is wise for the SO to adopt BCT. Figure 4 shows the variation in the SO's profit and consumer surplus with the blockchain-related satellite unit customization cost. The SO's revenue decreases with an incremental increase in the customization cost. However, the value of consumer surplus is no longer always positive but also decreases with increasing customization costs, which is different from Figures 2 and 3. It shows that consumers in the retail channel do not always benefit more if the SO uses blockchain. Once the cost of customization is high, consumer surplus is instead lower with blockchain than without. \begin{table}
\begin{tabular}{c c c} \hline \hline
**Strategy** & **BD vs. BS** & **BD vs. BR** \\ \hline \(\Delta\pi\) & \(\frac{(c_{r}+c_{\Delta}-be\beta)}{4 be(1-be)}>0\) & \(\frac{(c_{r}-e+1-s)^{2}}{4(1-e)}-C-B\) \\ \(\Delta CS\) & \(\frac{(c_{r}+c_{\Delta}-be\beta)}{8 be(1-be)}>0\) & \(\frac{(c_{r}+c_{\Delta}-be+1-\beta s)^{2}}{8(1-be)}>0\) \\ \hline \hline \end{tabular}
\end{table} 
Table 7: Optimal strategy with blockchain technology. It is noteworthy that the consumer surplus is always higher when blockchain is adopted in the SataaS and dual channels compared to when it is not adopted.