Economics of Blockchain

23 Pages Posted: 9 Mar 2016  

Sinclair Davidson

RMIT University - School of Economics, Finance and Marketing

Primavera De Filippi

Université Paris II - Panthéon-Assas

Jason Potts

RMIT University

Date Written: March 8, 2016

Abstract

Claims blockchain is more than just ICT innovation, but facilitates new types of economic organization and governance. Suggests two approaches to economics of blockchain: innovation-centred and governance-centred. Argues that the governance approach — based in new institutional economics and public choice economics — is most promising, because it models blockchain as a new technology for creating spontaneous organizations, i.e. new types of economies. Illustrates this with a case study of the Ethereum-based infrastructure protocol and platform Backfeed.

Keywords: blockchain, cryptoeconomics, catallaxy, public choice institutional economics

JEL Classification: D2, D7, P4, P00, K00, H4

Suggested Citation

Davidson, Sinclair and De Filippi, Primavera and Potts, Jason, Economics of Blockchain (March 8, 2016). Available at SSRN: https://ssrn.com/abstract=2744751 or http://dx.doi.org/10.2139/ssrn.2744751

Sinclair Davidson

RMIT University - School of Economics, Finance and Marketing ( email )

445 Swanston Street
Melbourne, Victoria 3000
Australia
+61-3-9925-5869 (Phone)
+61-3-9925-5986 (Fax)

Primavera De Filippi

Université Paris II - Panthéon-Assas ( email )

12 place du Pantheon
Paris cedex 06, 75231
France

Jason Potts (Contact Author)

RMIT University ( email )

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