Blockchains and the economic institutions of capitalism. Issue 4 (18th January 2018)

• Record Type: Journal Article
• Authors: DAVIDSON, SINCLAIR; DE FILIPPI, PRIMAVERA; POTTS, JASON
• Is Part Of: Journal of institutional economics. Volume 14:Issue 4(2018)
• Page Start: 639
• Page End: 658
• Publication Date: 2018-01-18
• Subjects: Institutional economics -- Periodicals; 330.1552
• DOI: 10.1017/S1744137417000200
• Languages: English
• ISSNs: 1744-1374

Abstract

Abstract: Blockchains are a new digital technology that combines peer-to-peer network computing and cryptography to create an immutable decentralised public ledger. Where the ledger records money, a blockchain is a cryptocurrency, such as Bitcoin; but ledger entries can record any data structure, including property titles, identity and certification, contracts, and so on. We argue that the economics of blockchains extend beyond analysis of a new general purpose technology and its disruptive Schumpeterian consequences to the broader idea that blockchains are an institutional technology. We consider several examples of blockchain-based economic coordination and governance. We claim that blockchains are an instance of institutional evolution.