Blockchain tools for socio-economic interactions in local communities

Abstract

Abstract Blockchain technology is generating interest in novel applicative fields such as co-production of public services. Our CommonsHood project is a “wallet app” that uses the Blockchain as a tool to support sustainability of the local economy. Its tokenization mechanism allows everyone to create new types of cryptographic tokens on the Blockchain in order to digitalize assets, augment the availability of local liquidity, and incentivize cooperative socio-economic interactions. This article analyzes a concrete application of CommonsHood for innovating local development policies and service co-production in the tourism sector. We examine this application using Linders’s analytical framework for information and communications technology (ICT)-enabled co-production of services (2012). We show the advantages our project brings for local policies on tourism development, and we discuss the benefits and costs of using the Blockchain in that context. We argue that the observed case study covers different types of digitally enabled co-production of services, and that it can be defined as a case of Governance as a Platform. We also argue that well-established analytical frameworks for ICT-enabled co-production of services need to be expanded in order to account for the new affordances enabled by the Blockchain technology, namely the creation and transaction of digital values, which represent a paradigm change in how we understand the Internet and digital co-production.