Blockchain technology proposes to create value by decentralizing creation.
Validation, validation, and secure storage of economic transactions.
And even between organizations. Since 2015, central banks around the world have
It is exploring the possibility of issuing currency on the blockchain (Del Castillo, 2017).
This could streamline the implementation of monetary policy at the global level;
Combating counterfeiting and tax evasion, which could impact business models
of retail banks.
The changes that result from the implementation of large-scale blockchain solutions are worthy of study in their own right, but they also require a deeper understanding.
How do these blockchain solutions operate?
Who?In a nutshell, how does blockchain governance work?
What kind of impact will it have? To answer these questions, we consider the cryptocurrency setting and argue that cryptocurrencies represent the first real world.
blockchain-based instance
organization. In this chapter, we will
Levels of analysis from the global economic level to the organizational level. Theorists define organizations as “groups oriented in pursuit of relative goals.”
It exhibits a relatively highly formalized social structure with specific goals.”
(Scott and Davis, 2007: 29) And below, we use theories of organization and corporate governance to illuminate how blockchain-based organizations work.
Manipulate.
In the organizational literature, corporate governance is defined as “research.”
Power and influence over decision-making within a company.”
Define “Rights and Responsibilities.” […] various stakeholders
company” (Aguilera and Jackson, 2010: 490). Because cryptocurrencies exist in large locations,
Even within the scope of cyberspace, they are not incorporated into any specific institution of any country.
One country in particular. Therefore, for the purpose of this study, we treat them as follows.
global organization (Lee, 2015: 380).we anchor our arguments in concepts
Blockchain represents a new “decentralized institutional governance technology” (MacDonald et al., 2016: 5) that can be implemented in a variety of ways.
across blockchain-based organizations. Next, link these various implementations.
–
Evaluate measures of organizational value creation to assess organizational effectiveness for governance.
Cryptocurrency depends on software design, ownership structure,
The degree of decision-making power and decentralization.These changes in governance
Design features can have a significant impact on investor valuations.
The value of a cryptocurrency reflected in the return on investment of the cryptocurrency.
In fact, prior research suggests that cryptocurrency returns depend on many factors.
It’s more than media hype and speculative behavior.Wang and Vergne (2017) show
Continuous improvements in the technology behind cryptocurrencies
Key predictors of price increases (as captured by weekly returns). therefore,
Treating cryptocurrencies as traditional currencies or commodities is misleading. Because behind each cryptocurrency is a team of hard-working people.
To develop technology. For example, developers such as programmers and engineers create blockchain software programs, while miners perform validation.
Update transactions by injecting computing power into the network.In other
In other words, cryptocurrencies are best thought of as a new kind of cross-border currency.
organization. Understanding how these organizations are governed is essential and can help devise formal policy recommendations at the macro level.
(Wright and De Filippi, 2015).
Blockchain governance is about deciding who has authority (internally and
external actors); how these actors are vested (e.g. ownership and decision-making authority) and in what form (formal and informal governance forms/structures);
and at what level (Narayanan et al., 2016). In the context of cryptocurrencies,
The relative success of each other is captured by superior market returns (
relative price increases from one period to the next), little is known about how it works.
Internal governance (at the blockchain and protocol level) and external governance (by the broader cryptocurrency community) influence cryptocurrency returns.
We draw on the corporate governance literature in organization and management research to examine internal and external relationships.
Governance design features and cryptocurrency revenue.
To clarify this relationship empirically, we collected weekly panel data.
Analyze and make predictions for five cryptocurrencies with different degrees of decentralization
Weekly returns in a regression model using a number of indicators at the governance level. Consistent with corporate governance research (Hambrick et al., 2008;
Yermack, 2017) considers several internal governance design options.
Blockchain level, direct control by cryptocurrency owners over consensus
Scheme; At the protocol level, a formal voting mechanism exists.
Miners participate in decision making. At the institutional level, the existence of centralized funds supporting the creators of virtual currencies. moreover,
In line with the idea that the media acts as an agent of corporate external governance (Aguilera et al., 2015; Walsh and Seward, 1990), we also
The influence of both social (Reddit, Twitter, Facebook, etc.) and traditional media
Governance on crypto returns (i.e. mainstream newspapers) after controlling for many factors such as crypto supply and liquidity. Our findings revealed a paradoxical pattern: decentralization in organizations.
As you might expect, the level of blockchain has a positive impact on returns.
The promise of blockchain is decentralization as a way to create value, but we also
We find that decentralization at both the protocol and organizational level has an impact
Return to negative. In other words, while decentralization is an important issue,
A value proposition that provides opportunities for the cryptocurrency community,
This feature itself can pose challenges for investors.Investors generally assess value
Commercialization opportunities are managed by a centralized organization.They are
We also have more confidence in coordinated funding through centralized funding.
As a reliable source of information that motivates innovation.In this regard, decentralization
It presents different opportunities and challenges for different stakeholders.do not have
Unlike open source software projects, blockchain-based organizations
Decentralized community, centralized company, or
Use both together as a hybrid. Our findings suggest a wide range of blockchain-based applications.
Organizational governance design options. Compatible with various implementation configurations. This study also focuses on “decentralized autonomous organizations” (DAOs);
DuPont, this volume). Below is an overview of corporate governance.
Literature, introduction to cryptocurrencies and our methodology, explanation of our analysis,
Finally, we discuss our findings and contributions to governance.
literature.
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