Changing Governance Models by Applying Blockchain Computing

Abstract

us-sec-denies-asecond-application-to-list-bitcoin-product.html (concerning issues over trading SolidX Bitcoin Trust since the market for bitcoin is unregulated). 2018]Changing Governance Models by Applying Blockchain Computing 55consensus-based, 12 (3) secure, 13 and (4) trustless. 14This paper will explain how these characteristics will allow for a fundamental change in how organizations (even governments) interact and how individuals interact in ways that will replace those organzations. 15I. ORGANIZATIONS ARE ALREADY USING BLOCKCHAIN TECHNOLOGY TO DECENTRALIZE Organizations such as corporations, clubs, and even governments form because societies need to, among other things, make collective decisions. 16 These organizations allow people with different views to reach a consensus, respond to the needs of the day, and to plan for the future. 17Blockchain computing changes how consensus can be reached, and will therefore change how any organization that can apply blockchain technology serves the members of that organization. 18 Currently, in most organizations "decision-making is concentrated at the 12 See, e.g., Chris Hammerschmidt, Consensus in Blockchains.In Short, MEDIUM (Jan.27, 2017), https://medium.com/@chrshmmmr/consensus-in-blockchain-systems-in-short-691fc7d1fefe(explaining how once an individual or entity adds information to a blockchain, "distributed operators of blockchain" have to agree before those people are added to the blockchain).13 See Curtis Miles, Blockchain security: What keeps your transaction data safe?, IBM (Dec.12, 2017), https://www.ibm.com/blogs/blockchain/2017/12/blockchain-security-what-keeps-your-transaction-data-safe/(requiring "massive amounts of computing power to access every instance (or at least 51 percent majority) of a certain blockchain and alter them all at the same time," in order to alter the blockchain).14 See Preethi Kasireddy, ELI5: What do we mean by "blockchains are trustless"?, MEDIUM (Feb.3, 2018), https://medium.com/@preethikasireddy/eli5-what-do-we-mean-by-blockchains-are-trustless-aa420635d5f6(explaining how blockchains "minimize the amount of trust required from any single actor in the system . . .by distributing trust among different actors in the system."). 15See generally, Konstantinos Christidis & Michael Devetsikiotis, Blockchains and Smart Contracts for the Internet of Things, IEEE ACCESS J. 2292, 2292 (June 3, 2016), http://ieeexplore.ieee.org/document/7467408/("[B]lockchains have recently attracted the interest of stakeholders across a wide span of industries."). 16See, e.g., Blockchain Is Pumping New Life into Old-School Companies Like IBM and Visa, FORTUNE (Dec.26