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

See all articles by Mark Fenwick

Mark Fenwick

Kyushu University - Graduate School of Law

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law

Erik P. M. Vermeulen

Tilburg University - Department of Business Law; Signify (formerly known as Philips Lighting) - Legal Department; Tilburg Law and Economics Center (TILEC); European Corporate Governance Institute (ECGI); Kyushu University - Graduate School of Law

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

Fenwick, Mark and Kaal, Wulf A. and Vermeulen, Erik P.M., Why 'Blockchain' Will Disrupt Corporate Organizations (August 7, 2018). 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. Available at SSRN: https://ssrn.com/abstract=3227933 or http://dx.doi.org/10.2139/ssrn.3227933

Mark Fenwick

Kyushu University - Graduate School of Law ( email )

6-19-1 Hakozaki,
Fukuoka
Japan

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law ( email )

MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States

Erik P.M. Vermeulen (Contact Author)

Tilburg University - Department of Business Law ( email )

Signify (formerly known as Philips Lighting) - Legal Department ( email )

Amstelplein 2
Amsterdam
Netherlands

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Kyushu University - Graduate School of Law ( email )

6-19-1, Hakozaki, Higashiku
Fukuoka, 812-8581
Japan

Register to save articles to
your library

Register

Paper statistics

Downloads
666
Abstract Views
1,816
rank
37,932
PlumX Metrics