Blockchain Regulation and Governance in Europe, by Michèle FinckThe Blockchain and the New Architecture of Trust, by Kevin Werbach

Abstract

Imagine a spreadsheet that creates a permanent record of information while functioning as a distributed ledger enabling users to engage in a wide range of activities without the aid of a trusted intermediary. Inevitably, the development of innovative technologies has never ceased to astound. We now know what this particular form of socio-technical imaginary involves—blockchains! Satoshi Nakamato’s quest to find a pragmatic engineering solution to what he regarded as the problem of institutional mediation is merely the first iteration of that vision – an ‘electronic payment system based on cryptographic proof instead of trust’.1 The idea that human or institutional agency can now be replaced by entrusting responsibility with machines has attracted considerable policy and scholarly interest, particularly during the past two decades. Just as the World Wide Web with its hypertext protocols integrated into the Internet infrastructure facilitated the flow of information from disparate directories, blockchain technologies not only build on these foundations but hold out the promise of decentralized spaces for interaction, participation and innovation. Can a system of cryptographic proof deployed within a peer-to-peer network provide a much-needed solution to the dominant role of trusted third parties in economic transactions?