Components of Coordination

On a blockchain network, nothing is assumed to be trustworthy except the output of the network itself (Werbach, 2018). On any transaction, there are three elements that may be trusted: the counterparty, the intermediary, and the dispute resolution mechanism (Botsman, 2017). Simply put, blockchain tries to replace all three elements with software co... See more

The high social coordination cost of socialware often results in a gap between how a system is supposed to operate vs how it actually operates.

Crypto-economic protocols allow for people to coordinate their economic activities without a centralized, rent-extracting party, and will help move these industries from corporate feudalism to meritocratic capitalism and freer markets.

Resolve principal-agent dilemma of organizations: Distributed ledgers also provide a global coordination tool for new types of decentralized and sometimes also autonomous organizations (read more: Part 2 - Institutional Economics & Governance of DAOs).