Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210437 
Year of Publication: 
2019
Series/Report no.: 
Working Paper No. 880
Publisher: 
Queen Mary University of London, School of Economics and Finance, London
Abstract: 
We develop a theory of blockchain governance. In our model, the proof-of-work system, which is the most common set of rules for validating transactions in blockchains, creates an industrial ecosystem with specialized suppliers of goods and services. We analyze the two-way interactions between blockchain governance and the market structure of the industries in the blockchain ecosystem. Our main result is that the proof-of-work system leads to a situation where the governance of the blockchain is captured by a large firm.
Subjects: 
Governance
Blockchain
Proof-of-Work
Industrial Ecosystem
JEL: 
G30
L13
M20
Document Type: 
Working Paper

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