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Corporate capture of blockchain governance

Ferreira, Daniel, Li, Jin and Nikolowa, Radoslawa (2023) Corporate capture of blockchain governance. Review of Financial Studies, 36 (4). 1364 - 1407. ISSN 0893-9454

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Identification Number: 10.1093/rfs/hhac051


We develop a theory of blockchain governance. In our model, the proof-of-work system, the most common set of rules for validating transactions in blockchains, creates an industrial ecosystem with specialized suppliers of goods and services. We analyze the interactions between blockchain governance and the market structure of the industries in the blockchain ecosystem. We show that the proof-of-work system may lead to a situation in which some large firms in the blockchain industrial ecosystem—blockchain conglomerates—capture the governance of the blockchain.

Item Type: Article
Official URL:
Additional Information: © 2022 The Authors
Divisions: Finance
Subjects: H Social Sciences > HG Finance
JEL classification: G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
M - Business Administration and Business Economics; Marketing; Accounting > M2 - Business Economics > M20 - General
Date Deposited: 21 Jul 2022 11:39
Last Modified: 15 Sep 2023 17:15

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