Governance Of Blockchain Systems

Research Overview

Author: Primavera De Filippi, Greg McMullen
Release Date: June 27, 2018

Abstract:

Decentralization, hashing functions, public key cryptography, and smart contracts are advantageous design features of blockchain systems. These require the coordination of multiple and diverse actors with differing incentives—cryptoeconomics—to solve any problems that arise. This research examines the impact of governance on these systems. Specifically, it explores governance needs at three levels of the blockchain stack: the Internet layer, the blockchain layer, and the application layer, including the deployment of decentralized applications (Dapps). De Filippi and McMullen explain the difference between governance by the infrastructure and of the infrastructure. Given the state of the technology, they advocate for a hybrid approach that combines on-chain and off-chain elements rather than a code-only solution to stewardship.

Related Content

Webinar: Blockchain, Artificial Intelligence, and the Battlefield of Things

Colonel James Allen Regenor (Ret), CEO of VeriTX Corp., and Brigadier General Blaine Holt (Ret), former deputy US military representative to North Atlantic Treaty Organization, discuss the nature of cyberthreats and opportunities to use distributed ledger technologies in combination with other digital innovations to protect lives and assets. It’s about the trivergence of AI, IoT, and blockchain in cyberwarfare. Topics include logistics under attack, adversarial logistics, Estonia’s use of data embassies (an excellent model for safeguarding global enterprise assets), fortifying government data pipes, and managing multi-domain operations where outerspace is a new domain for military and enterprise.

Read More

Accountability in the Digital Asset Business

With decentralization as a key design tenet, distributed ledger technologies are difficult to govern with centralized models of organizational oversight. While cryptoassets, smart contracts, and blockchains create efficiencies and mitigate certain known business risks, they introduce a unique set of risks. This project outlines strategies for managing, measuring, and mitigating these risks. For enhancing controls, its authors map out an integrated control framework with standards, roles, and responsibilities. They also look at audit and assurance of Dapps, proof of solvency, and regulatory compliance. Finally, they present a new playbook with red flags for executives as they size up their blockchain opportunities. It is a must read for enterprise leadership.

Read More
Subscribe