Cryptocurrencies and the emergence of blockocracy

Abstract

Blockocracies are a coherent, distinctive and novel organizational form bound by a collective ledger and a cryptocurrency. We frame our analysis of blockocracies against Weber’s enduring description of bureaucracy, identifying those features of Weberian bureaucracies that are present, absent or marginalized in blockocracies. In contrast to bureaucracy’s monocratic authority structure, authority in blockocracies is centered on four distinct layers. In each layer, there is governance of the code and governance by the code, and in the latter we distinguish between endogenous and exogenous rules. We also compare the “blockocrat” with Weber’s depiction of the bureaucrat.

KEYWORDS:

• Blockchain
• blockocracy
• bureaucracy
• cryptocurrencies
• governance
• Max Weber

Notes

1 Unless otherwise indicated, page numbers refer to this text.