Why 'Blockchain' Will Disrupt Corporate Organizations
Lex Research Topics in Corporate Law & Economics Working Paper No. 2018-3
U of St. Thomas (Minnesota) Legal Studies Research Paper No. 18-17
European Corporate Governance Institute (ECGI) - Law Working Paper No. 419/2018
Journal of the British Blockchain Association
30 Pages Posted: 20 Aug 2018 Last revised: 12 Aug 2019
Date Written: August 7, 2018
Abstract
We live in a world that has historically been dominated by centralized, hierarchical organizations. Such organizations are characterized by (i) a centralized source of authority; (ii) a formal hierarchy with clearly defined “roles”; and, (iii) standardized operational systems and procedures dictated by that centralized authority/hierarchy. This type of organization has exerted an enormous influence on modern political, economic and social life, particularly in a business context. Regulatory models have been designed to support and sustain businesses organized in this way. Today, however, new digital technologies are disrupting this “old world” and introducing a shift in the practices and mindset of our society. New technologies are driving the emergence of “flatter”, more decentralized forms of organization. In this paper, we offer an analysis of how blockchain and related distributed ledger technologies are disrupting corporate organizations as an illustration of this broader “digital transformation.”
Keywords: Blockchain, Corporate Governance, Cryptocurrency, Crypto, Decentralization, Digital Transformation, Distributed Ledger Technology, Organizations, Platform Companies, Smart contracts, Technology, Tokens
JEL Classification: D20, D24, D26, D85, G30, J20, K20, K22, L17, L26, O16, O30
Suggested Citation: Suggested Citation