articleReview of Financial StudiesJan 25, 2019Closed access

Blockchain Disruption and Smart Contracts

University of Chicago

Indexed incrossref

Abstract

Blockchain technology provides decentralized consensus and potentially enlarges the contracting space through smart contracts. Meanwhile, generating decentralized consensus entails distributing information that necessarily alters the informational environment. We analyze how decentralization relates to consensus quality and how the quintessential features of blockchain remold the landscape of competition. Smart contracts can mitigate informational asymmetry and improve welfare and consumer surplus through enhanced entry and competition, yet distributing information during consensus generation may encourage greater collusion. In general, blockchains sustain market equilibria with a wider range of economic…

Citation impact

1,071
total citations
FWCI
169.95
Percentile
100%
References
52
Citations per year

Authors

2

Topics & keywords

Keywords
  • Collusion
  • Decentralization
  • Competition (biology)
  • Blockchain
  • Information asymmetry
  • Economic surplus
  • Economics
  • Consumer welfare
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