Virtual Property and Governance Structures with Blockchain

Abstract

I combine Thorstein Veblen’s “diagnostic” approach with John R. Commons’ “remedial” approach to analyze virtual property. I focus my analysis on public blockchain based discreet assets. I conclude that the failure to fulfill two of the libertarian promises (namely, decentralized and trustless finance) does not discredit blockchain technology as such. Permissioned blockchain has promising applications. However, virtual property that is based on public blockchain facilitates extraction of value that must be politically and juridically regulated together with empowering citizens.