Now the code runs itself : on-chain and off-chain governance of blockchain technologies
REIJERS, Wessel ; WUISMAN, Iris; MANNAN, Morshed ; DE FILIPPI, Primavera; WRAY, Christopher; RAE-LOOI, Vienna; CUBILLOS VELEZ, Angela; ORGAD, Liav
Topoi, 2018, OnlineFirst[Global Governance Programme], [Global Citizenship Governance], [Global Citizenship]
REIJERS, Wessel, WUISMAN, Iris, MANNAN, Morshed, DE FILIPPI, Primavera, WRAY, Christopher, RAE-LOOI, Vienna, CUBILLOS VELEZ, Angela, ORGAD, Liav, Now the code runs itself : on-chain and off-chain governance of blockchain technologies, Topoi, 2018, OnlineFirst[Global Governance Programme], [Global Citizenship Governance], [Global Citizenship] - https://hdl.handle.net/1814/60474
Retrieved from Cadmus, EUI Research Repository
The invention of Bitcoin in 2008 as a new type of electronic cash has arguably been one of the most radical financial innovations in the last decade. Recently, developer communities of blockchain technologies have started to turn their attention towards the issue of governance. The features of blockchain governance raise questions as to tensions that might arise between a strictly “on-chain” governance system and possible applications of “off-chain” governance. In this paper, we approach these questions by reflecting on a long-running debate in legal philosophy regarding the construction of a positivist legal order. First, we argue that on-chain governance shows striking similarities with Kelsen’s notion of a positivist legal order, characterised by Schmitt as the machine that runs itself. Second, we illustrate some of the problems that emerged from the application of on-chain governance, with particular reference to a calamity in a blockchain-based system called the DAO. Third, we reflect on Schmitt’s argument that the coalescence of private interests is a vulnerability of positivist legal systems, and accordingly posit this as an inherent vulnerability of on-chain governance of existing blockchain-based systems.
First Online: 17 December 2018
Cadmus permanent link: https://hdl.handle.net/1814/60474
Full-text via DOI: 10.1007/s11245-018-9626-5
ISSN: 0167-7411; 1572-8749
Series/Number: [Global Governance Programme]; [Global Citizenship Governance]; [Global Citizenship]
Publisher: Springer Verlag
Grant number: H2020/716350/EU
Sponsorship and Funder information:
This research is funded by the European Research Council (ERC) under the European Union’s Horizon 2020 Research and Innovation Programme (Grant Agreement No 716350) 'Global Citizenship Law'
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