Tokens, 'Smart Contracts' and System Governance
45 Pages Posted: 11 Dec 2019
Date Written: November 23, 2019
Cryptocurrencies embodied or represented in a “smart contract”, at first glance may be a new asset class, where depending on the internal method of classification and use different frameworks may be applicable. Although, most concepts are not necessarily new (inventive). As the digitalization of databases, information and systems do not change, the underlying object.
It is analyzed, in particular, the case of payments tokens (contrasting with other forms of - public - money, in a narrow sense, so as with the hybrid cases, so-called “stable coins”), across jurisdictions, namely Switzerland, the UK, Germany and the US (as having most of the regulatory response or litigation), besides Portugal.
It is broken down from the micro-level (token) to its exchange (as a means of exchange in a given contract) and infrastructure (messages, communications and infrastructure).
There is a need to go beyond the formal representation (and dimensions) of a given entity, or the problem of knowledge representation and the need of (actual) systematic approach, to access function (rather than formal representation) and governance of the blockchain infrastructure.
Keywords: Blockchain, Governance, Cryptocurrency, Decentralization, Smart contracts, Networks, Infrastructure
JEL Classification: K12, K20, G18, P49
Suggested Citation: Suggested Citation