In this commentary, we argue that studies similar to Cennamo, Marchesi, and Meyer (2020) should distinguish four dimensions of control in blockchain governance, all of which could be more or less decentralized. For some of these dimensions, decentralization is likely beneficial, while for others...

Platform-specific digital tokens are becoming increasingly common with the proliferation of initial coin offerings (ICOs). In addition to a novel financing mechanism, such tokens can help address the coordination problem that is common in network adoption. We develop a model to investigate the...

Bitcoin, a cryptocurrency invented in 2008 is both puzzling and inspiring. High volatility of its price is challenges financial analysts as well as scholars. We look at the incentive mechanisms that make Bitcoin work, and we discuss current and potential uses of Bitcoin and technologies inspired...

The technology behind blockchain has attracted a lot of attention. However, this technology is for the most part not well understood. There is no consensus on what benefits it may bring or on how it may fail. A careful look into the technology finds that most of the proposed benefits of so...

Concluding thoughts and outlook for the future of the technology. For Chapter 1 (Introduction), see "https://ssrn.com/abstract=3135021" https://ssrn.com/abstract=3135021. For Chapter 2 (Means of Exchange: Ever-present Competition), "https://ssrn.com/abstract=3135028"...

In this chapter, we discuss economic aspects of cryptocurrencies. 4.1. The double spending problem 4.2. How does Bitcoin work? Brief overview 4.3. Not the first one – predecessors of Bitcoin 4.4. Problems with Bitcoin (new challenges) 4.5. Competition against other crypto-currencies 4.6....

In this chapter, we analyze digital currencies issued by Internet platforms. We use examples of Facebook Credits, Amazon Coins, World of Warcraft gold and Linden dollars to illustrate how designing the features of digital currencies allows the platforms to enhance their business model. 3.1....

In this chapter, we present the history of money in the light of ever-present competition between means of payment. 2.1. The medium of exchange – historical overview 2.2. What roles does money serve? 2.3. Competing money 2.3.1. Coexistence is costly 2.3.2. Network effects 2.3.3. The difficulty...

Introductory thoughts, and preview of topics discussed in later chapters. For Chapter 2 (Means of Exchange: Ever-present Competition), see https://ssrn.com/abstract=3135028. For Chapter 3 (Platform-based Currencies), see https://ssrn.com/abstract=3135030. For Chapter 4 (Cryptocurrencies), see...

Permissionless blockchain systems inspired by Bitcoin and related crypto-ecosystems are frequently promoted as the enablers of an open, distributed, and decentralized ideal. They are hailed as a solution that can “democratize” the world by creating a technological imperative favoring open,...