Pereira, J orcid.org/0000-0001-9268-9842, Tavalaei, MM and Ozalp, H (2019) Blockchain-based platforms: Decentralized infrastructures and its boundary conditions. Technological Forecasting and Social Change, 146. pp. 94-102. ISSN 0040-1625
Abstract
Blockchain technology has been receiving much public attention recently, promising to disintermediate transactions through decentralized governance and distributed data-infrastructures. However, the majority of the previous studies have focused on the technical aspects, and overlooked blockchain investigation from a managerial perspective. In this paper, based on platform-ecosystem, transaction cost economics, and open-source literature, we contrast and compare blockchain-based platforms and centralized platforms; in other words, decentralized versus centralized governance modes. We base our conceptual analysis on three dimensions—transaction cost, cost of technology, and community involvement—, exploring the conditions under which blockchain-based platforms are more advantageous than centralized platforms. We first compare gains from lower opportunism and uncertainty costs thanks to protocols and smart contracts in blockchain technology versus the costs of higher coordination and complexity of (re)writing those contracts. Second, we compare the gains from immutability and transparency in blockchain-based platforms versus the technological costs of verification and storage of a distributed ledger. Finally, we compare intrinsic and extrinsic motivations of the communities around centralized and blockchain-based platforms in the short and medium term.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Elsevier Inc. All rights reserved. This is an author produced version of a paper published in Technological Forecasting and Social Change. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Blockchain technology; Platform ecosystems; Decentralized governance; Transaction cost economics; Smart contracts |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) > Management Division Strategy and Organisation (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 06 Jun 2019 11:15 |
Last Modified: | 04 Dec 2020 01:39 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.techfore.2019.04.030 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:146947 |
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Filename: Pereira, Tavalaei, and Ozalp, 2018 Open access version.pdf
Licence: CC-BY-NC-ND 4.0