The soft spot of hard code: blockchain technology, network governance and pitfalls of technological utopianism

Abstract

The emerging blockchain technology is expected to contribute to the transformation of ownership, government services and global supply chains. By analysing a crisis that occurred with one of its frontrunners, Ethereum, in this article I explore the discrepancies between the purported governance of blockchains and the de facto control of them through expertise and reputation. Ethereum is also thought to exemplify libertarian techno‐utopianism. When ‘The DAO’, a highly publicized but faulty crowd‐funded venture fund was deployed on the Ethereum blockchain, the techno‐utopianism was suspended, and developers fell back on strong network ties. Now that the blockchain technology is seeing an increasing uptake, I shall also seek to unearth broader implications of the blockchain for the proliferation or blockage of global finance and beyond. Contrasting claims about the disruptive nature of the technology, in this article I show that, by redeeming the positive utopia of ontic, individualized debt, blockchains reinforce our belief in a crisis‐ridden, financialized capitalism.

Blockchain technology in supply chain operations: Applications, challenges and research opportunities

“…Asset management is also enabled by blockchain through its “proof of concept algorithm” which guarantees transparency, reliability and efficiency ( Notheisen et al, 2017 ). Pilot prototypes like DAO (Decentralized Autonomous Organization) have been implemented to replace the traditional management system with automated governance but have to be halted due to security breach ( Hütten, 2019 ). Blockchain technology adoption and implementation needs to be carried out in a stage by stage process to ensure optimal integration with business processes and reduce security concerns.…”

“…IoT platforms also have a centralized structure which leads to the threat of single point of failure. Blockchain supports decentralized IoT systems where both technologies complement each other and make a robust and intelligent technology ( Hütten, 2019 , Lin et al, 2019 ). Due to varied factors like globalisation, human error and regulatory inefficiencies, there is a need for an independent system that could support real-time data sharing with complete transparency.…”

“…Management of registries, digitization of land right, secure and lawful execution of voting are some ways in which blockchain can help transform government activities. 71 Hütten (2019) It shows how blockchain technology helps in government service, enhances global SCs and contributes to transformation of ownership. 72 Kamble et al (2019b) From Indian perspective, study is done to analyse how well can Indian SCs adapt to the integration of blockchain in SCs.…”

Self-Sovereignty for Refugees? The Contested Horizons of Digital Identity

“…However, despite this, blockchains are widely presumed to replace the need for human intermediaries, organisations and social processes with 'neutral' technocratic consensus, governance by algorithms and trust-in-the-code (Zook and Blankenship 2018). They are associated with cypherpunk utopias of digital freedom and individual selfdetermination (Hütten 2018). Just as Bitcoin facilitates pseudonymous international exchanges outside the mechanisms of banks and other centralised financial authorities, libertarian SSI proponents suggest that blockchain will de-centre powerful authorities and intermediaries in digital identification and put the user in a position of greater power.…”

Towards the Design of a Collaborative Cybersecurity Networked Organisation: Identification and Prioritisation of Governance Needs and Objectives

“…While some of the referenced sources claim that the technical solutions offered help solve issues related to interoperability, collaboration, security, and value chain governance [10,11], the problem with the governance of collaboration persists. Some authors go as far as to designate the exclusive reliance on technological solutions as "libertarian techno-utopianism" [18]. The IoT is of particular concern.…”