Research Area:  Blockchain Technology

Abstract:

This work analyses blockchain-mediated decentralization based on a systematic review of the scholarly understanding of the term ‘decentralization’ across multiple disciplines from computer to political sciences, examining how its various meanings are reflected in popular discourse on blockchains and distributed ledgers. The paper aims to capture the rigorous cross-domain understanding of decentralization and its most important features, and to map the commonalities and differences between it and some closely related concepts such as distribution, disintermediation and peer-to-peer (P2P). Across all domains, decentralization appears to be used as a solution to problems requiring non-trivial coordination across heterogeneous stakeholders. Blockchain-mediated decentralization appears to have unique characteristics reflecting an idiosyncratic set of authority-related values prevalent in so-called “crypto” online communities. Within blockchain space, the article argues against the binary positioning of “decentralization” and “centralization,” proposing a dialectical approach and arguing that a system’s authority allocation is a quality positioned on a spectrum between purely decentralized and completely centralized, noting how a blockchain set-up could simultaneously both have facets that are significantly centralized and others that are not. The authors document their systematic review findings and propose a framework for understanding blockchain-mediated decentralization, suggesting a definition, and outlining new directions for further human-centric research into distributed ledger technologies and for designing decentralized ecosystems.

Keywords:  

Author(s) Name:  Michał R. Hoffman, Luis-Daniel Ibáñez and Elena Simperl

Publisher name:  Frontiers Media S.A

DOI:  10.3389/fbloc.2020.00035

Volume Information:  

Paper Link:   https://www.frontiersin.org/articles/10.3389/fbloc.2020.00035/full