The Blockchain and the New Architecture of Trust
Abstract
How the blockchain—a system built on foundations of mutual mistrust—can become trustworthy.
The blockchain entered the world on January 3, 2009, introducing an innovative new trust architecture: an environment in which users trust a system—for example, a shared ledger of information—without necessarily trusting any of its components. The cryptocurrency Bitcoin is the most famous implementation of the blockchain, but hundreds of other companies have been founded and billions of dollars invested in similar applications since Bitcoin's launch. Some see the blockchain as offering more opportunities for criminal behavior than benefits to society. In this book, Kevin Werbach shows how a technology resting on foundations of mutual mistrust can become trustworthy.
The blockchain, built on open software and decentralized foundations that allow anyone to participate, seems like a threat to any form of regulation. In fact, Werbach argues, law and the blockchain need each other. Blockchain systems that ignore law and governance are likely to fail, or to become outlaw technologies irrelevant to the mainstream economy. That, Werbach cautions, would be a tragic waste of potential. If, however, we recognize the blockchain as a kind of legal technology that shapes behavior in new ways, it can be harnessed to create tremendous business and social value.
... Using technologies enhances athlete performance and transforms the management and operationalization of sports events, providing greater efficiency and effectiveness in organizing and conducting these events (2). In this context, blockchain technology emerges as an innovative architecture that establishes a new "architecture of trust", enabling multiple actors who do not know (or trust) each other to interact safely under predetermined conditions (3). This is particularly relevant for sports event governance where the technology can facilitate three key governance mechanisms: access, control, and incentives (4). ...
... Blockchain improves payment systems and credit information management in the financial sector, increasing efficiency and security (47). Beyond these applications, blockchain technology creates a distinct governance architecture that differs fundamentally from traditional digital platforms (3). While traditional platforms operate under what can be termed "rule by code" where platform operators maintain unilateral control over the technical infrastructure, blockchain implements a "rule of code" where rules are embedded in the technical architecture itself and apply equally to all participants (6). ...
... Control mechanisms coordinate interactions between diverse actors through encrypted, traceable processes, while incentives-implemented via smart contracts-stimulate participation and value creation (5). For small and mid-sized events, these tools provide a cost-effective means to build trust and coordination without relying on costly centralized intermediaries (3). Embracing these technologies can improve organizational performance and responsiveness (61). ...
The integration of blockchain technology in sports event management represents a significant shift towards more decentralized and efficient governance structures, particularly relevant to small and medium-sized events. Despite growing interest, its practical implementation remains limited and lacks comprehensive theoretical guidance. This study addresses this gap by proposing an integrated theoretical framework, combining the Dynamic Capabilities Framework (DCF), Collaborative Governance Theory (CGT), and the Four Modes of Governance (FMG), to systematically explore blockchain's application within sports event management. Our analysis reveals that blockchain technology can effectively foster transparency, efficiency, and enhanced stakeholder participation through Decentralized Autonomous Organizations (DAOs). These advantages are realized through key mechanisms of access, control, and incentives, which interact across external environments, governance structures, and blockchain core infrastructure. Furthermore, the study identifies critical managerial implications necessary for successful blockchain implementation, emphasizing strategic infrastructure assessments, stakeholder engagement, and risk management protocols. Ultimately, this research contributes both theoretical insights and practical guidelines, addressing existing knowledge gaps and providing a structured framework for leveraging blockchain in managing small to mediumsized sports events.
... Blockchain technology is particularly advantageous to contract management as it facilitates the genesis and execution of smart contracts, which can be written directly into code on its blockchain network. Smart contracts on such networks allow for automated enforcement of contract terms while eliminating intermediaries and reducing the possibility of disputes [3,4]. Key answers can be provided by Blockchain technology for some of the inefficiencies inherent to out-of-date contract management practices, containing real-time updates, automatic implementation of contract terms and enhanced transparency throughout project lifecycle management adopting it could significantly minor the administrative burden associated with FIDIC contracts, streamline dispute resolution processes and ensure greater adherence with contract terms [5]. ...
... Initially the blockchain was technically designed as the supporting technology of such currency as Bitcoin, since then it within itself expanded to all industries, and among the examples, it now includes legal affairs as well as administration of contracts. The relative simplicity of the principles of the blockchain makes it easier to understand how it can be applied to improve the current processes embedded in the contracts within the FIDIC framework and as the control is distributed, it adds additional layer of security of the information where it cannot be constrained or corrupted at any given time or place [3,4]. Furthermore, transparency is one of the core values of the blockchain networks: each and every transaction that has been recorded is visible to all members of the network and this level of transparency, all those who are engaged in contract management of the construction projects for example the stakeholders are able to receive and monitor the progress of contract performance payments and variations eliminating unnecessary exchanges between them that leads to chances of obvious paradoxes [5,12]. ...
... To develop the potential of blockchain in the advancement of FIDIC contracts, legal and policy structures need to be developed rapidly. Currently, the legal framework for blockchain is still largely dispersed, various jurisdictions have different stances about the legal acceptance and implementation of blockchain, which result in abusive legal disparity which acts as a hindrance to its use in various cross international projects that have legal implications [4,20]. The relationship between legislators and legal scholars must establish the possibility of uniform, international standards that acknowledge and establish the legal enforceability of blockchain-anchored contracts as smart contracts, as well as the definitions of their legal nature, regulation, and integration into legislation. ...
This article examines the role of blockchain technology in FIDIC contracts, highlighting the benefits for modernizing construction contract administration. Meanwhile, FIDIC contracts effectively increased in terms of mechanization and security by utilizing. Though, Smart contracts assist automation and decrease the risk of disagreements, enhancing protection between investors. In addition, Resistance from industrial point of view stakeholders due to concerns about cost and complexity poses a significant obstacle to Blockchain adoption in contract management. Continuous innovation initiatives, including the improvement and promotion of legal frameworks, are critical for the widespread adoption of Blockchain technology in the administration of FIDIC contracts.
... Theoretical contributions: Cyberspace has the potential to integrate transaction cost theory, highlighting the management of specific assetsconstituting a broad field for empirical research. In addition, it is proposed that cyberspace is correlated with the evolution of Service Innovation Theory, discussed in depth by Gallouj and Djellal (2010, 2018. Managerial contributions: The relevance of cyberspace as an asset specificity is emphasized, enabling managers to understand better and manage uncertainty when making specific investment decisions. ...
... Some studies have highlighted the importance of interactivity and visibility as factors that influence users' perception of security and trust in virtual environments (e.g., Pavlou & Gefen, 2004;Wu & Wang, 2005;Pang et al. 2024). In addition, it is also pertinent to consider other aspects related to data protection, such as encryption, authentication, and digital certification, to ensure the integrity and authenticity of online transactions (Swan, 2015;Werbach, 2018;Zhang et al., 2022). ...
... In terms of trust transactions, studies have investigated the development of trust in several areas, including banking transactions (DeYoung, 2015), e-commerce platforms (Resnick & Zeckhauser, 2002;Al-Debei et al., 2015), digital health services (Adjekum et al., 2018), cryptocurrencies (Böhme et al., 2015;Werbach, 2018) and blockchain (Beck et al., 2018;Werbach, 2018;Brookbanks & Parry, 2022). The trust embedded in the visibility of transactions is intrinsically linked to the trust deposited by people in commercial and financial transactions, such as purchases, sales, loans, and investments. ...
Objective: This article proposes cyberspace as the seventh asset specificity in Transaction Cost Theory. To support this view, this article aims to answer the following interconnected questions: (i) what are the characteristics of cyberspace? (ii) what possible forms can it take considering the convergence between asset specificities in the physical and digital environments? Methodology: This article adopts theoretical and analytical methods, with an analysis of the literature dedicated to Transaction Costs and Cyberspace. Originality: Cyberspace is proposed as the seventh asset specificity in Transaction Cost Theory, expanding the traditional framework to include digital environments. Unlike conventional assets, cyberspace introduces a triad of connectivity, interactivity, and visibility, serving as a medium and as asset specificity that influences business models. This new asset accentuates the role of cyberspace in transaction costs and managing uncertainty within increasingly digitalized economies. Theoretical contributions: Cyberspace has the potential to integrate transaction cost theory, highlighting the management of specific assets - constituting a broad field for empirical research. In addition, it is proposed that cyberspace is correlated with the evolution of Service Innovation Theory, discussed in depth by Gallouj and Djellal (2010, 2018 and 2023). Managerial contributions: The relevance of cyberspace as an asset specificity is emphasized, enabling managers to understand better and manage uncertainty when making specific investment decisions. These elements are essential for establishing unique characteristics, promoting efficiency, reducing transaction costs, and managing uncertainty.
... Moreover, centralized governance typically locates trust in the platform sponsors, which necessitates that they can be trusted (Karunakaran 2022). In contrast, decentralized governance means that trust resides within the network as a whole (Lumineau et al. 2023), but this "trustless trust" can result in situations where trust erodes altogether (Werbach 2018). Additionally, centralized governance places coordination and control in the hands of a principal organizer (i.e., the platform sponsor), but this centralization means that the fate of the platform becomes closely tied to this organizer's actions and decisions (Kretschmer et al. 2022). ...
Blockchain‐based platforms can facilitate data sharing and coordination in interorganizational ecosystems by enabling secure, tamper‐evident recordkeeping and streamlined, trust‐minimized transactions across organizational boundaries. However, their decentralized architecture may conflict with the centralized control exercised by platform sponsors, giving rise to a centralization–decentralization paradox. This study explores how this paradox unfolds in a large, blockchain‐based logistics platform that was ultimately discontinued. Through an in‐depth, longitudinal case study, we identify three interrelated governance contradictions—regarding ownership, trust, and growth—that triggered destabilizing oscillations between centralized and decentralized governance modes. We introduce the concept of semirigid limits to capture the bounded flexibility within which governance can be made and adapted under such paradoxical conditions. Our findings show that the centralization–decentralization paradox is especially difficult to navigate when strategic boundary conditions—here, industry competition, fragmented coordination, and high interdependencies—are present. Our study contributes to the paradox and governance literature by theorizing how governance contradictions emerge and persist and by identifying the mechanisms that constrain alignment and adaptation. We also offer guidance for managers in regard to addressing the competing demands of centralization and decentralization in interorganizational platforms.
... Research by Werbach identifies several categories of bias that may emerge in blockchain-based governance systems [91]. First, design biases occur when smart contract developers unintentionally embed their own assumptions or values into code. ...
The adoption of blockchain technology in supply chain management has gained significant attention due to its potential to enhance transparency, traceability, and accountability. However, successful blockchain implementation requires careful consideration of governance, regulatory, and ethical dimensions. Through a narrative literature review, this paper examines how blockchain can be effectively leveraged in sustainable supply chains, focussing on governance challenges and policy considerations. The review reveals significant gaps in current understanding of blockchain governance, including a lack of standardisation, limited integration between technical and institutional aspects, and insufficient attention to ethical implications. The analysis provides a comprehensive examination of the regulatory landscape, identifying critical areas requiring policy attention and suggesting pathways for implementation. The paper contributes to the literature by synthesising the current understanding of governance challenges and proposing policy directions for addressing these gaps. As blockchain technology continues to evolve, the paper emphasises the need for balanced governance approaches that promote innovation while ensuring responsible implementation across supply chain ecosystems.
... The Ethereum's DAO hack showed the need to adopt secure smart contract coding practices and community-based responses that attenuate damage caused by discovering security flaws. Applying blockchain to secure supply chains clearly illustrates how a decentralized system can control data integrity and thwart fraud, giving a huge footing on security over traditional centralized systems (Werbach, 2018). The inherent robustness of Bitcoin against 51% attacks demonstrates the necessity of having a decentralized network structure and incentive mechanisms that prevent attacks on blockchain systems. ...
Blockchain technology is a chain of blocks formed using cryptography on multiple computers. It keeps a list of distributed transactions and ensures it is transparent, immutable, and hard to manipulate. Blockchain’s inherent security features would strengthen its build, including cryptographic hashing, consensus algorithms, and immutability. However, it is also highly exposed and vulnerable to several threats. In decentralized systems and cryptocurrencies, blockchain security is a crucial point of security to protect from attacks on systems, data breaches, and financial loss. Challenges in the Security of Blockchain Networks. This paper explores 51% of attacks in blockchain networks, vulnerabilities in smart contracts, and privacy issues faced by blockchain networks. Since blockchain is decentralized, these challenges are among the reasons its nature is inherently more secure than any traditional centralized system, as they cannot allow a single point of failure. A key element for secure blockchain transactions is security mechanisms like cryptography, proof of work, proof of stake, and multi-signature solutions. However, this is somewhat stifled by the fact that blockchain applications have expanded far beyond cryptos, such as healthcare, supply chains, and systems, such as voting, and the requirement for robust security grows. To address these issues, blockchain security must continuously adopt innovation in blockchain security practice, such as developing decentralized security solutions and post-quantum cryptography, up to a comprehensive security framework. Security in the blockchain is the key to securing digital assets, privacy protection, and trust on the decentralized networks mentioned in this paper. To solve the new and evolving threats that will become a menace to blockchain security in the future, we will combine the new technologies of artificial intelligence, quantum-resistant cryptography, and decentralized identity management.
... This shift in trust has social and psychological consequences, influencing how leadership legitimacy is established in blockchain-based systems. Werbach (2018) states that blockchain does not eliminate the need for trust in leadership. Rather, it shifts trust from interpersonal relationships to systemic transparency and algorithmic assurance. ...
The main objective of this study is to identify, analyze, and synthesize literature related to blockchain integration in leadership practices. The search methodology was conducted through major electronic databases with relevant keywords, resulting in 45 articles that met the inclusion criteria for further analysis. The results of the analysis revealed five main themes, namely Decentralization of Leadership Authority, Transparency and Accountability, DAO (Decentralized Autonomous Organization) Leadership Model, Transformation of Trust in Leadership, and Challenges of Implementation and Adoption. Blockchain technology has the potential to transform traditional leadership systems by creating a more transparent, efficient, and distributed trust-based environment. However, the implementation of blockchain-based policies faces various challenges, including technical barriers, organizational culture, and regulatory barriers. This study contributes to the understanding of how blockchain technology can change the dynamics of leadership and organizational governance. In addition, the findings of this study offer insights for further research in developing more adaptive, innovative, and sustainable leadership models in the digital era.
... DApps represent a departure from centralized digital services (Angelis & Silva, 2019) and embody a shift toward trustless systems where no single party controls everything (Werbach, 2018). Despite DApps' potential to reshape organizational structures and governance, scholarly investigation into their governance is still nascent, lacking depth in addressing their unique challenges and opportunities (Leiponen et al., 2022). ...
Blockchain enables reimaging organizational interactions and provides novel avenues to enforce agreements and foster cooperation, which set it apart from traditional and other digital governance mechanisms. These peculiarities pave the way for the dawn of non-hierarchical organizations characterized by highly decentralized decision-making processes. At the forefront of this evolution are Decentralized Applications (DApps): trustless systems on peer-to-peer networks without central oversight. Amidst growing interest, the specific business ramifications and governance structures of DApps remain underexplored. Our study delves into how blockchain reshapes governance in DApps and the realization of decentralized governance. Leveraging on a multiple case study, we examined the governance models, the extent of decentralization, and the forward-looking governance projections of 7 DApps. Our findings illuminate the dynamics of power distribution in DApps, revealing decision-makers, the spread of stakeholder power, and the mechanisms for making and implementing pivotal decisions within decentralized frameworks. Theoretical and empirical implications are discussed.
... Digital asset management has also been widely studied, with researchers exploring the impact of NFTs, tokenized securities, and DeFi platforms on financial markets. The rise of NFTs has introduced a new form of digital ownership, enabling artists, musicians, and content creators to monetize their work through blockchain-based marketplaces (Werbach, 2018). DeFi applications, powered by smart contracts, provide users with decentralized lending, borrowing, and trading opportunities, challenging traditional banking systems (Zuboff, 2019). ...
The advent of Web 3.0 has brought about significant transformations in the digital landscape, with blockchain technology playing a fundamental role in its development. Unlike the centralized architecture of Web 2.0, Web 3.0 aims to create a decentralized and trustless digital environment where users have full control over their data and assets. Blockchain serves as the foundation of this new web paradigm by enabling secure, transparent, and tamper-proof digital asset management. This research explores how blockchain technology supports Web 3.0 by facilitating decentralized applications (dApps), smart contracts, and tokenized ecosystems. It also analyzes how digital assets-ranging from cryptocurrencies and non-fungible tokens (NFTs) to decentralized finance (DeFi) assets-are managed on blockchain networks. Despite its revolutionary potential, blockchain faces several challenges, including scalability issues, regulatory concerns, and security vulnerabilities. This study evaluates the opportunities and risks associated with blockchain in Web 3.0 and digital asset management, providing insights into its future impact on the global economy.
... Unlike intellectual property objects or personal data, where technical measures complement legal protection, in the case of cryptocurrencies and tokens, technical code actually replaces legal regulation. As noted by Werbach (Werbach, 2018), blockchain implements the concept of "lex cryptographica" (cryptographic law), where the rules of the system are encoded in a technical protocol and automatically executed without the possibility of external intervention. This model raises fundamental legal questions about determining the legal nature of self-defense in blockchain systems, the limits of autonomy of technical code, and the possibility of legal qualification of blockchain's technical mechanisms as a form of implementation of subjective rights. ...
This research is devoted to the analysis of the legal nature and implementation peculiarities of the self-defense of rights institutions in the digital space. The paper examines the conceptual foundations of digital rights self-defense established by Articles 11 and 13 of the Civil Code of the Republic of Uzbekistan, the legal boundaries of permissible actions, and various forms of their implementation in the digital environment. Using methods of legal and comparative analysis, the study investigates problems of determining the proportionality of protective measures, distinguishing between self-defense and arbitrary action, as well as the peculiarities of self-defense for various types of digital rights (personal data, intellectual property objects, digital property rights). Special attention is paid to technological, contractual, and organizational forms of self-defense in the context of the cross-border nature of digital relations. The research results allow the formulation of recommendations for improving legislation and law enforcement practice in the field of digital rights self-defense, as well as determining optimal strategies for the lawful behavior of subjects when protecting their rights in the digital space.
... Smart contracts can significantly impact governance and regulatory compliance by providing transparent mechanisms for enforcing regulations and corporate governance standards. They can automate reporting and compliance processes, reducing administrative burdens and enhancing transparency (WERBACH, 2018). ...
This dissertation addresses the challenge of ensuring transactional integrity and reducing costs in corporate governance through blockchain technology. We propose an on-chain methodology for certifying, registering, and querying institutional transactional status. Our decentralized governance approach utilizes consensus mechanisms and smart contracts to automate and enforce business rules. The framework aims to reduce the transaction costs associated with contractual measurement reports and enhance overall transactional integrity. We provide a detailed exploration of how blockchain technology can be effectively harnessed to offer a robust solution to these challenges, setting the stage for our proposed solution and its potential impact on corporate governance. The application of the methodology resulted in as average of 2% overbilling reduction.
... Its transparency can reduce transaction costs and strengthen automation potential through smart contracts. Its prospects in government services, particularly in regulatory compliance and auditing, are significant, although challenges in large-scale implementation exist" [1]. ...
Access to affordable and transparent mortgage financing remains a significant challenge for low-income communities worldwide. Traditional mortgage systems are often characterized by opaque procedures, bureaucratic inefficiencies, predatory lending practices, and limited access to trustworthy financial intermediaries. These structural inefficiencies disproportionately impact low-income individuals, exacerbating economic inequality and undermining homeownership as a pathway to financial security and social mobility. In recent years, blockchain technology has emerged as a potential disruptor of conventional mortgage financing systems. By offering immutable records, decentralized data management, smart contract automation, and real-time verifiability, blockchain holds the promise to enhance transparency, reduce transaction costs, eliminate fraud, and improve access to financial services for marginalized populations. This article explores the role of blockchain in addressing systemic barriers within the mortgage industry, with a particular focus on its application in improving transparency and affordability for low-income communities. The analysis is grounded in a socio-technical framework, integrating insights from housing finance, digital infrastructure, financial inclusion, and public policy. It further evaluates real-world case studies, technological enablers, governance considerations, and the practical challenges of implementing blockchain solutions in mortgage ecosystems. The study concludes by offering strategic recommendations for leveraging blockchain to drive equitable housing finance reforms and outlines future research pathways for enhancing mortgage accessibility in vulnerable populations.
تتعمّق الدّراسة في تقنيّة البلوك تشين بوصفها تطوّرًا نوعيًّا في وسائل الإثبات الرقميّ، لما تتميّز به من خصائص الثّبات، والشّفافيّة، وعدم القابليّة للتّلاعب. كما تطرح تساؤلات حول القوّة الإثباتيّة المعتبرة التي تمنحها هذه الخصائص للبلوك تشين أمام القضاء. وفي هذا الإطار، تستند الدّراسة إلى واقع بدء بعض الأنظمة القانونيّة في الإعتراف بهذه التقنيّة كوسيلة موثوقة لتوثيق المعاملات الإلكترونيّة. وتتوصّل إلى أنّ هذا الاعتراف مشروط بإستيفاء البلوك تشين للشّروط التّقنيّة والشّكليّة المقرّرة قانونًا، لا سيّما في مجالات التّوقيع الإلكترونيّ والعقود الذّكيّة، ممّا يعزّز دورها ضمن المنظومة القضائيّة المُعاصرة.
AI, Blockchain, and Autonomous Innovation: Charting the Future of Intelligent Enterprises provides a deep dive into the convergence of artificial intelligence and blockchain technology, unraveling how their integration can drive autonomous, intelligent business operations. Through a structured and progressive approach, this book equips readers with both foundational knowledge and actionable insights to navigate the next wave of technological transformation.
The book begins by establishing the core principles of AI and blockchain, breaking down their technical foundations and enterprise applications. It explores AI’s capabilities in predictive analytics, computer vision, and natural language processing, while also shedding light on blockchain’s decentralized ledger, consensus mechanisms, and smart contracts. Readers gain a clear understanding of how these technologies work independently and where they intersect to create new possibilities for automation, security, and efficiency.
Moving beyond theory, the book delves into the integration of AI and blockchain, presenting architectural frameworks and practical design patterns. It discusses real-world implementation strategies, such as utilizing blockchain for AI data provenance, deploying AI models in decentralized environments, and leveraging smart contracts for AI-driven decision-making. The book also addresses key technical challenges, including performance optimization and interoperability between AI platforms and blockchain networks.
A dedicated section highlights industry-specific use cases, demonstrating how AI and blockchain revolutionize finance, healthcare, supply chain, manufacturing, and government services. From fraud detection in decentralized finance (DeFi) to AI-powered supply chain optimization and secure patient data management, each case study illustrates tangible benefits and challenges.
Beyond technological implementation, the book emphasizes governance, ethics, and strategic adoption. It provides a roadmap for businesses to transition into intelligent enterprises, covering topics such as AI governance, blockchain security, regulatory compliance, and responsible innovation. Practical guidance on initiating pilot projects, scaling solutions, and fostering a culture of AI-driven decision-making is also included.
Concluding with a forward-looking perspective, AI, Blockchain, and Autonomous Innovation charts the evolving landscape of intelligent enterprises. It underscores the importance of balancing automation with human oversight, ensuring ethical AI deployment, and embracing continuous learning in a rapidly advancing digital world.
This book serves as an essential resource for business leaders, technology strategists, and researchers looking to harness AI and blockchain for transformative enterprise innovation.
The exponential growth of Internet of Things (IoT) devices has created unprecedented security and privacy challenges that traditional centralized architectures struggle to address effectively. This chapter presents a comprehensive theoretical exploration of Internet of Blockchain (IoBc), an emerging paradigm that integrates blockchain technology with IoT ecosystems to enhance security, privacy, and trust. The chapter examines the theoretical foundations underpinning IoBc, analyzes its architectural frameworks, and investigates the cryptographic primitives that enable secure IoT operations. Through comparative analysis of existing blockchain platforms for IoT applications, the chapter identifies theoretical and practical implications for implementing IoBc solutions across various domains. The research synthesizes current literature to formulate a novel conceptual framework that addresses the unique challenges of resource-constrained IoT environments while leveraging blockchain's immutability and decentralization properties.
The “metaverse city” is defined as an immersive, interactive, and experiential digital environment that replicates or reinvents elements of physical cities, inserting them into an alternative reality. This concept involves transposing the urban, social, and cultural aspects of real cities into the metaverse, thus creating new ways of interacting with and experiencing urban space. Thus, it is not necessarily a digital replica of a physical city; however, it is invariably distinguished by its immersive nature, offering users a sensory and interactive experience. This concept goes beyond the mere digital replication of a city, evolving into a multifaceted space that integrates urban, social, cultural, and technological elements. It is shaped by digital interactions mediated by social actors (users), whose relationships in the metaverse are influenced by the power dynamics occurring in the virtual environment, much like in physical cities. The metaverse city is not merely an extension of the physical city; rather, it is a digital construct that enables alternative ways of living and relating to urban space. Consequently, it is a dynamic and ever-evolving construct, contingent on the active engagement of multiple social actors and their interactions for its consolidation. without the strategic involvement of diverse social actors, the identity and practices that characterize this contemporary urban entity—made possible by emerging technologies—risk losing their viability.
O presente artigo aborda a responsabilidade civil em contratos inteligentes, destacando as dificuldades que surgem devido a falhas técnicas ou erros de codificação. Utilizando o método indutivo e uma análise de literatura atualizada, o estudo explora as diferenças entre os conceitos tradicionais de responsabilidade civil e os novos desafios trazidos pela tecnologia dos contratos inteligentes. A pesquisa é baseada em teorias de responsabilidade civil, especialmente aquelas que discutem a culpa e o risco, adaptando-as ao contexto digital. O artigo procura responder a duas questões centrais: (1) De que forma a imutabilidade dos contratos inteligentes impacta a possibilidade de reparação de danos em caso de falhas técnicas? (2) Quais mecanismos tecnológicos e jurídicos podem ser implementados para prevenir falhas técnicas em contratos inteligentes, e como esses mecanismos podem ser incorporados às legislações atuais? Para enfrentar essas questões, o estudo propõe a criação de novos modelos jurídicos que incluam diretrizes para garantir a segurança na codificação, a responsabilidade compartilhada entre desenvolvedores e plataformas, e a introdução de mecanismos específicos para a resolução de conflitos. A conclusão é que as legislações existentes não são suficientes para tratar adequadamente as particularidades dos contratos inteligentes, especialmente no que se refere à definição de responsabilidade em caso de falhas técnicas.
In the rapidly evolving digital marketing era, artificial intelligence (AI) is transforming communication strategies, offering unprecedented opportunities for brand-consumer interactions. Using Structural equation model this research investigates AI-powered communication strategies in digital brand interactions, exploring their impact on consumer perception and sustainable marketing practices. Contextual understanding emerges as a key predictor, emphasizing its critical role in consumer engagement. Psychological response mapping reveals that 62.4% of consumers experience positive emotional connections with AI-mediated brand communications. Ethical AI frameworks score high in data privacy (4.67), transparency (4.53), and emotional intelligence (4.39), challenging traditional assumptions about AI's limitations. The study underscores AI's role in fostering ethical, emotionally aware brand interactions with contextual intelligence. Finally, the authors propose a strategic framework to navigate the intersection of technology, communication, and human experience in the digital age.
The rapid advancement of blockchain technology has brought transformative changes to various sectors, particularly in contract law through the rise of smart contracts. This paper delves into the intersection of blockchain technology and contract law, focusing on the promising opportunities and the complex challenges presented by this convergence. Smart contracts, self-executing agreements with terms directly written into code, have the potential to revolutionize legal transactions by automating and securing contract performance. However, their integration into the legal system introduces several challenges, including issues related to legality, enforceability, and the adaptability of existing legal frameworks.
As smart contracts gain traction, their impact on the legal system becomes increasingly significant. This necessitates a proactive approach from technologists, legal experts, and policymakers to address the unique aspects of these digital agreements. Developing comprehensive legal frameworks is essential to accommodate the characteristics of smart contracts, ensuring they can function effectively within the global legal and commercial environment.
The paper emphasizes the need for ongoing dialogue and collaboration among stakeholders to create a robust regulatory environment that supports the use of smart contracts. This collaboration aims to establish these digital agreements as a fundamental element of global commerce and governance. By addressing the challenges and harnessing the opportunities presented by smart contracts, the legal system can evolve to effectively integrate these innovations, paving the way for a more efficient and transparent future in contract law.
O presente artigo sobre a uilização das imagens digitais analisa as novas tecnogias, mais especificiante, a questão dos NFTs (Não fungível tokens) e direitos autorais. A crescente capacidade de produzir cópias perfeitas de uma obra tem sido o cerne das batalhas de direitos autorais dos últimos anos, em que a crescente digitalização de obras correu o possível valor de escassez dos direitos autorais. Mas isso é apenas uma análise da escassez como um elemento da justificativa econômica. Se considerarmos o direito autoral como um incentivo em potencial para gerar obras, ou mesmo como um veículo para incentivar a disseminação de obras, então a perda de escassez é menos grave e pode explicar o surgimento de modelos de licenciamento do tipo copyleft que incentivam a criação de um bem comum cultural.
Cryptocurrencies and blockchain technology have revolutionized the financial sector, offering decentralized, secure, and efficient transaction mechanisms. However, these innovations have also introduced new challenges, particularly in the realm of financial crimes such as money laundering, illicit trade, and fraud. This paper explores the dual-use nature of cryptocurrencies, examining their potential for both financial innovation and criminal exploitation, with over $20 billion in illicit transactions recorded in 2023 (Chainalysis, 2023). By reviewing case studies, regulatory responses, and technological solutions, this paper provides a comprehensive analysis of the risks and opportunities presented by cryptocurrencies and blockchain technology. Current regulatory frameworks, such as the EU’s MiCA Regulation (2023) and FATF recommendations and guidelines, have significantly influenced cryptocurrency adoption by balancing innovation with risk mitigation. The paper concludes with actionable recommendations for enhancing regulatory frameworks, fostering international cooperation, leveraging AI and other technological advancements, and creating educational initiatives to mitigate financial crimes in the digital age.
Realizing its overarching potential in achieving digital transformation, leading organizations, such as Air New Zealand, have recently employed blockchain technology to manage 3D printing innovation. Despite the potential benefits, including the key role of blockchain as a supporting technology in Industry 5.0, these applications of blockchain technology in 3D printing are still at a nascent stage in practice and mostly limited to producer innovation. Additionally, 3D printing and blockchain technologies are often independently revolutionizing value capture and value creation, whereas the theoretical implications of their combined impacts on innovation management remain an underexplored domain. Limited digital transformation efforts have been made to employ blockchain technology to create a synergy between producer innovation and community innovation in relation to 3D printing innovation. To solve these issues, we introduce a novel concept, distributed ledger innovation platform (DLIP), which refers to a network of firms and individuals that create and capture value on a blockchain through digital transformation efforts. In this research, we draw upon transaction cost and social production theories to investigate the potential benefits of blockchain to solve the digital transformation challenges associated with 3D printing innovation. We utilize these perspectives to propose the concept of DLIP as a new governance structure for managing digital transformation activities with blockchain. Additionally, we examine illustrative digital transformation efforts via 3D printing innovation and applications of blockchain technology. Then, we present future research directions for innovation management scholars to investigate the benefits of DLIP in digital transformation efforts via 3D printing. We conclude by discussing the potential applications of DLIP to manage other enabling technologies of digital transformation, including big data, artificial intelligence, and the metaverse.
Certain techno-political infrastructures, e.g. blockchains, aim to replace our existing social and institutional modes of producing trust as a social resource. Can they successfully do that, without the reliance on the very same institutions, which could safeguard and guarantee their trustworthiness in the first place? By now we have more than a decade of experience trying to build autonomous, code-driven, private ordering infrastructures, designed to complement, disrupt, or replace both private and public institutions. The revolution of these ‘trustless’ digital technologies is yet to happen, raising concerns about their promises to address the existing trust challenges of centralized institutions, their capacity to eliminate the societal reliance on trust, and the potential consequences thereof. Therefore, in this chapter, we pose the following questions: How does trustlessness through the elimination of more-or-less trusted middlemen impact our values and our sense of belonging? How does the decision to end trust maintenance through trustless technologies impact the cultivation of a sense of community within a society? This chapter addresses these questions by critically reviewing the claims surrounding the trustlessness of automated, code-as-law-based governance systems in the field of digital identity management—an area that continues to command the attention of various organizations and institutions.
The evolution of internet technologies has led to the emergence of Web 3.0, a decentralized and intelligent version of the internet that promises to revolutionize online interactions. Web 3.0 aims to overcome the limitations of Web 2.0 by utilizing blockchain, smart contracts, and artificial intelligence to enhance security, transparency, and user control. This transition introduces a decentralized infrastructure where users can own and control their data, reducing reliance on centralized platforms. However, despite its potential, Web 3.0 also presents challenges, including scalability issues, regulatory uncertainties, and concerns over widespread adoption. This paper explores the key opportunities and challenges associated with Web 3.0, providing an in-depth analysis of its impact on various industries, technological advancements, and potential roadblocks that may hinder its mainstream adoption.
The rapid evolution of the web has significantly influenced cybersecurity, shaping how data is protected and managed in an increasingly digital world. From the static nature of Web 1.0 to the interactive and user-driven Web 2.0, and now the decentralized and intelligent Web 3.0, each phase has introduced new security challenges and solutions. The growth of digital platforms, cloud computing, and artificial intelligence has expanded the attack surface, exposing individuals and organizations to cyber threats such as hacking, data breaches, and identity theft. While Web 3.0 aims to enhance security through decentralization and blockchain technology, it also presents new vulnerabilities that require innovative cybersecurity strategies. This paper examines the impact of web evolution on data protection, analyzing the challenges posed by each stage of the web's development, the role of emerging technologies in cybersecurity, and the future of data security in a decentralized internet.
The evolution of e-commerce has been closely linked to advancements in web technologies, from the static and transaction-focused Web 1.0 to the dynamic and data-driven Web 2.0. Now, with the emergence of Web 3.0, e-commerce is undergoing a transformative shift towards decentralization, enhanced security, and personalized user experiences. Web 3.0, characterized by blockchain technology, artificial intelligence (AI), and decentralized finance (DeFi), introduces innovative business models that eliminate intermediaries, enhance transparency, and empower consumers with greater control over their data. This paper explores the key innovations in Web 3.0 e-commerce, including decentralized marketplaces, smart contracts, tokenized economies, and AI-driven personalization. Additionally, it examines the challenges businesses face in adapting to this new paradigm, such as scalability, regulatory uncertainty, and consumer adoption. As Web 3.0 continues to develop, it has the potential to redefine how digital commerce operates, fostering a more secure, efficient, and user-centric online shopping experience.
The convergence of Artificial Intelligence (AI) and Web 3.0 marks the next phase of the internet's evolution, bringing decentralized, intelligent, and autonomous systems into the digital space. Web 3.0, powered by blockchain, smart contracts, and decentralized applications, aims to eliminate central authority while enhancing security, privacy, and user autonomy. Meanwhile, AI enables real-time data analysis, predictive decision-making, and automation of digital interactions. This integration has profound implications across industries, from finance and healthcare to content creation and cybersecurity. However, challenges such as scalability, ethical concerns, regulatory uncertainties, and data security must be addressed to realize the full potential of AI-driven Web 3.0 systems. This paper explores the technological synergies between AI and Web 3.0, their impact on digital ecosystems, potential opportunities, and challenges that lie ahead in the development of smart internet systems.
The goal of this white paper is to present an objective overview of the current use of blockchain technology along the scientific research workflow and in related areas such as chemical/drug supply chains and education. It represents the culmination of three years of data gathering, including input from multiple interviews with pioneer users of the technology, as well as from more recent adopters around the globe, and recent industry technology analysts’ reports. Within these pages are descriptions of successful applications of the technology at each step of the scientific research workflow – from the timestamping of ideas to funding, to actual experimentation, to the analysis of research results, and ultimately to the sharing of information and the publication of results. However, not all blockchain use cases have such a successful conclusion. In this white paper you will learn where the technology has not worked – and why – thanks to those interviewed who discussed in detail the lessons that they themselves learned during their own blockchain journey. In addition, the paper highlights the potential future uses of the technology; the pitfalls to avoid when considering its use; when and how legislation and regulatory policies come into play; and how the technology is evolving and growing stronger (some say that the fourth generation of the blockchain evolution is on the horizon!). The paper also discusses parallel developments in quantum computing, its potential impact on blockchain technology, and what developments are in progress to ensure a stable and provably secure, quantum safe alternative to the existing blockchain approaches.
O artigo pretende investigar a viabilidade do uso da tecnologia blockchain pela Administração Pública, no exercício do poder de polícia administrativa, como instrumento para a fiscalização e repressão ao trabalho escravo contemporâneo, especialmente quando ele ocorre na cadeia de valor das grandes empresas transnacionais, visando a sancionar as violações a direitos sociais trabalhistas. Para tanto, leva-se em consideração a imutabilidade dos registros quando do uso da referida tecnologia e a possibilidade de se rastreá-los, inclusive em cadeias de suprimentos e de valor, o que pode auxiliar na verificação da cadeia de produção. O artigo está estruturado em quatro partes: (i) análise do trabalho escravo contemporâneo no Brasil; (ii) reflexões sobre sua presença nas cadeias de valor; (iii) exame dos fundamentos para o uso de blockchain pela Administração Pública no cenário do governo digital; (iv) verificação da viabilidade do uso de blockchain no exercício do poder de polícia administrativa para a fiscalização e repressão do trabalho escravo contemporâneo. Conclui-se que a escassez de mecanismos eficientes de controle na cadeia de produção, a prevalência do trabalho escravo em vínculos comerciais e a falta de recursos públicos e Auditores-Fiscais do Trabalho destacam a necessidade imperativa de inovação, sendo a tecnologia blockchain uma solução potencial para fiscalização e combate ao trabalho escravo de forma mais simples e eficaz.
The ongoing digitalisation of payments is an immense challenge for society and raises several ethical issues. Although digital payment instruments have been around for some time, beyond the analysis of some specific cases and related ethical issues, a comprehensive approach is still absent from the literature. Starting from the claim that access to a payment system is a basic human right, we lay the foundations for a framework of fundamental ethical principles we find essential in designing and operating a morally sound and resilient payment system. Two main principles will be proposed: financial inclusion and fair treatment of users. Each principle has three dimensions: financial inclusion embraces physical, intellectual and economic accessibility to the payment system, fair treatment of users means protection against illegal and/or illegitimate surveillance, trustworthiness and fair distribution of costs. Relying on these principles we discuss their significance in the payment system with special focus on the transition from a cash-dominant payment system to a fully digital one.
Blockchain technology has rapidly emerged as a transformative force across various sectors, challenging traditional legal frameworks and prompting the need for regulatory evolution. This article explores the intersection of blockchain technology and the law, examining the challenges posed by decentralized systems and the opportunities for innovative legal models that can adapt to this disruptive technology. It analyzes the unique characteristics of blockchain, the regulatory uncertainties that accompany its adoption, and the potential pathways for developing adaptive regulatory models that balance innovation with consumer protection and market stability. The discussion provides insights into the necessity of flexible, responsive, and collaborative regulatory approaches that can evolve alongside blockchain advancements while fostering transparency, accountability, and legal certainty. Introduction Blockchain technology, characterized by its decentralized and immutable ledger, has redefined the possibilities of digital transactions, data management, and trust mechanisms across multiple industries. From finance and supply chain management to healthcare and public administration, blockchain is being touted as a revolutionary tool that promises enhanced security, transparency, and efficiency. However, the rapid evolution of blockchain has outpaced traditional legal frameworks, creating a regulatory environment that is often fragmented, ambiguous, and reactive rather than proactive. In this context, developing adaptive regulatory models that can keep pace with technological advancements has become both a necessity and a challenge for lawmakers, regulators, and industry stakeholders.
Smart contracts, powered by blockchain technology, represent a paradigm shift in the way corporate governance functions are carried out. These self-executing contracts automate the enforcement of terms and conditions embedded in digital code, removing the need for intermediaries, such as lawyers or notaries, and ensuring greater efficiency, transparency, and security in governance processes. By leveraging the decentralized nature of blockchain, smart contracts can facilitate a range of governance functions, such as shareholder voting, executive compensation agreements, and compliance monitoring, in a way that is transparent, accurate, and cost-effective. The potential of smart contracts to transform corporate governance is significant, with automation offering substantial benefits, including streamlined processes, reduced human error, and faster decision-making. However, the adoption of this technology also raises critical legal and regulatory challenges. The immutability of blockchain means that once a contract is deployed, its terms cannot be easily changed, which may present risks in the event of errors in the code or unforeseen circumstances. Furthermore, the lack of a global legal framework for smart contracts means that their enforceability can vary across jurisdictions, introducing new complexities in legal disputes and compliance. This paper explores the integration of smart contracts into corporate governance, examining their potential to enhance operational efficiency and governance transparency, while addressing the legal risks and challenges associated with their use. By exploring various use cases, this paper aims to provide a comprehensive analysis of how smart contracts can reshape corporate governance structures and what legal frameworks need to evolve to support their widespread adoption.
Blockchain technology, known for its decentralized and immutable nature, has the potential to revolutionize corporate governance by redefining legal accountability. Traditional corporate governance relies heavily on centralized systems, with oversight bodies, shareholders, and regulators playing critical roles in decision-making. However, blockchain introduces a novel paradigm, where transparency, traceability, and decentralized control can address inefficiencies, corruption, and lack of trust in the system. By utilizing smart contracts, distributed ledgers, and consensus mechanisms, blockchain can enhance transparency in corporate transactions, streamline compliance processes, and provide stakeholders with real-time access to company operations. This paper explores the intersection of blockchain technology and corporate governance, analyzing how the former can be integrated to enforce legal accountability, improve decision-making, and reduce risks of fraud and mismanagement. Furthermore, the implications for legal frameworks and regulatory standards will be examined, considering the challenges and opportunities for adopting blockchain in corporate governance. Ultimately, this research aims to demonstrate that blockchain technology holds the key to modernizing legal accountability within corporate structures and creating a more efficient, transparent, and fair business environment.
Smart contracts, powered by blockchain technology, represent a paradigm shift in the way corporate governance functions are carried out. These self-executing contracts automate the enforcement of terms and conditions embedded in digital code, removing the need for intermediaries, such as lawyers or notaries, and ensuring greater efficiency, transparency, and security in governance processes. By leveraging the decentralized nature of blockchain, smart contracts can facilitate a range of governance functions, such as shareholder voting, executive compensation agreements, and compliance monitoring, in a way that is transparent, accurate, and cost-effective. The potential of smart contracts to transform corporate governance is significant, with automation offering substantial benefits, including streamlined processes, reduced human error, and faster decision-making. However, the adoption of this technology also raises critical legal and regulatory challenges. The immutability of blockchain means that once a contract is deployed, its terms cannot be easily changed, which may present risks in the event of errors in the code or unforeseen circumstances. Furthermore, the lack of a global legal framework for smart contracts means that their enforceability can vary across jurisdictions, introducing new complexities in legal disputes and compliance. This paper explores the integration of smart contracts into corporate governance, examining their potential to enhance operational efficiency and governance transparency, while addressing the legal risks and challenges associated with their use. By exploring various use cases, this paper aims to provide a comprehensive analysis of how smart contracts can reshape corporate governance structures and what legal frameworks need to evolve to support their widespread adoption.
Blockchain technology, known for its decentralized and immutable nature, has the potential to revolutionize corporate governance by redefining legal accountability. Traditional corporate governance relies heavily on centralized systems, with oversight bodies, shareholders, and regulators playing critical roles in decision-making. However, blockchain introduces a novel paradigm, where transparency, traceability, and decentralized control can address inefficiencies, corruption, and lack of trust in the system. By utilizing smart contracts, distributed ledgers, and consensus mechanisms, blockchain can enhance transparency in corporate transactions, streamline compliance processes, and provide stakeholders with real-time access to company operations. This paper explores the intersection of blockchain technology and corporate governance, analyzing how the former can be integrated to enforce legal accountability, improve decision-making, and reduce risks of fraud and mismanagement. Furthermore, the implications for legal frameworks and regulatory standards will be examined, considering the challenges and opportunities for adopting blockchain in corporate governance. Ultimately, this research aims to demonstrate that blockchain technology holds the key to modernizing legal accountability within corporate structures and creating a more efficient, transparent, and fair business environment.
This study is aimed at assessing the awareness and knowledge of stakeholders regarding the adoption and use of crowdfunding as a financing instrument among startups and MSMEs in the Nigerian housing industry. The level of stakeholders’ awareness of crowdfunding as a financing tool for projects and stakeholders' knowledge of crowdfunding potentials for financing projects were determined. A quantitative research design was employed, utilizing an online survey strategy. Through a simple random sampling technique, a Google Form structured questionnaire based on a 5-point Likert Scale was sent to 352 REDAN members in the Abuja branch via WhatsApp, Instagram and emails. Only 330 responses representing 93.75% of total questionnaire were received, while 12 questionnaires representing 3.41% of total questionnaire were not responded to. SSPSS version 24 software was used to analyze the data. The results showed that 49.1% of the respondents with a mean score of 4.45 have a fair understanding of crowdfunding as a funding option for business ideas, ranking first in the list. The second highest ranking was "I have heard and read about the concept of crowdfunding as a funding option for businesses but I don’t know how it functions practically" with a mean of 3.82, which accounted for 35.5% of the respondents. Regarding the knowledge of stakeholders on the potentials of crowdfunding for financing housing development projects in Abuja, the results show that stakeholders have a high level of knowledge, with a mean score of 4.95 out of 5. The highest mean scores are for the statements "Crowdfunding allows projects to increase visibility through the crowdfunding platform" and "Facilitates the dynamic interaction between funders and backers through collaboration, openness and participation,". The study's findings suggest that there is a need to educate stakeholders, particularly entrepreneurs and small business owners, about the concept and functionality of crowdfunding.
Blockchain technology has gained widespread attention and adoption in various industries. However, despite its potential benefits, there are still numerous challenges and issues that need to be addressed. This paper provides an overview of the legal, regulatory, and technical challenges related to the use of blockchain technology. It explores the challenges associated with privacy, data protection, and data security, and analyses the regulatory challenges and implications. Additionally, it identifies future challenges and issues that may arise in the field of blockchain technology, including the integration with emerging technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data. The paper concludes by discussing the need for collaboration among stakeholders and the development of comprehensive legal and regulatory frameworks to address the challenges and ensure the successful implementation of blockchain technology in various sectors.
The metaverse, a network of immersive, interconnected virtual worlds, has rapidly emerged as a transformative digital frontier. As it integrates into various aspects of human life-social interaction, commerce, education, and entertainment-it also presents novel legal and regulatory challenges. This research explores the key legal concerns associated with the metaverse, including jurisdictional complexities, intellectual property rights, data privacy, governance, and the potential for digital inequality. By analyzing these challenges, the paper aims to provide a comprehensive understanding of how regulatory frameworks can adapt to the evolving dynamics of the metaverse.
The paper investigates how online platforms achieve legitimacy in the context of art securitization. Art securitization platforms are new ventures in the art market that leverage blockchain technology to enable fractional ownership of art, thereby increasing liquidity and accessibility for online investors. While traditional art market intermediaries, such as auction houses Sotheby’s and Christie’s, face legitimacy challenges like price-fixing issues, new intermediaries, such as art securitization platforms, require legitimacy with investors in order to secure a primary source of stability and survival in the art market. This study investigates how four leading art securitization platforms, Maecenas, Masterworks, Otis, and Artory achieve legitimacy with investors in the art market. We analyze both the art securitization platforms’ 6306 social media posts to decode their legitimacy-achieving approaches and draw on the positivity of 2510 post comments to measure how their legitimacy is perceived by investors. Our findings suggest that highlighting technological distinctiveness and entrepreneurial identity aids art platforms in achieving legitimacy, despite raising concerns among conservative investors. Positive legitimacy judgements are also awarded by investors to platforms that conform to stakeholders’ expected levels of return, transparency, and security.
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