Governance and control in distributed ledgers: Understanding the challenges facing blockchain technology in financial services

【Author】 Zachariadis, Markos; Hileman, Garrick; Scott, Susan V.

【Source】INFORMATION AND ORGANIZATION

【影响因子】5.387

【Abstract】As blockchain platforms are becoming increasingly noticeable in financial services and beyond, questions arise regarding their suitability to compete with or replace existing payment systems and marketplaces and redesign the financial infrastructures of the future. Prominent among these concerns are issues around governance and control in distributed ledgers: How are distributed ledger technologies governed? Can blockchains address complex administration problems? What key issues of note for practitioners and academics have emerged thus far? In this paper we aim to review the existing governance practices of established or popular blockchain and decentralized autonomous organization (DAO) systems with a view to understanding how they hold up in times of crises. What questions are raised when they are compromised or faced consensus challenges in coordinating action especially around control and accountability? We use a translational process, generating focal insights about present concerns from the reference point of completed academic studies and extensive practitioner consultation. Rather than adopting a declarative approach attempting to provide all the answers, we draw insights from the IT platform governance literature to offer a critical perspective for asking the right questions around key governance issues in financial infrastructure such as decision rights, control mechanisms, and incentives.

【Keywords】Financial infrastructures; Blockchain; Distributed ledger technology; Distributed autonomous organization; Payment systems; Governance; Ethereum; Bitcoin; Cryptocurrencies

【发表时间】2019 JUN

【收录时间】2022-01-02

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