Trustless Architecture and the V-Form Organisation

13 Pages Posted: 22 Jun 2020

See all articles by Chris Berg

Chris Berg

RMIT University

Sinclair Davidson

RMIT University

Jason Potts

RMIT University

Date Written: May 27, 2020

Abstract

Blockchain (distributed ledger technology) is an institutional technology that allows trust to be manufactured instead of being earned. Trust is an important component of business and trade and has previously been subsumed into information costs. It is only now that the importance of trust is being fully appreciated. Arun Sundarajaran has suggested that the creation of new forms of trust has driven the expansion economic activity throughout history. In this chapter we argue that the industrialisation of trust is going, again, to drive a massive expansion in economic activity through the emergence of new organisation forms that will deliver high-powered market incentives deep into what would appear to be hierarchical organisations. We are labelling these (as yet speculative) organisations forms the "V-form" organisation. In this chapter we discuss the importance of trust, the evolution of trust, and the industrialisation of trust. We argue that current organisational forms have exhausted the levels of trust that have previously sustained them. Blockchain technology offers a new industrialised form of trust that can drive further economic activity.

Keywords: blockchain, industrial organization, trust, opportunism

JEL Classification: D02, D23, D4, F1, F42, F6, L1, O3

Suggested Citation

Berg, Chris and Davidson, Sinclair and Potts, Jason, Trustless Architecture and the V-Form Organisation (May 27, 2020). Available at SSRN: https://ssrn.com/abstract=3612419 or http://dx.doi.org/10.2139/ssrn.3612419

Chris Berg (Contact Author)

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Sinclair Davidson

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Jason Potts

RMIT University ( email )

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