What is it about?

The primary objective of this study is to explore the relationship between “blockchain” and the "regulatory functions of governments." The research questions posed are: 1) How can blockchain be defined as a concept, and how can we assess the regulatory functions of governments concerning trust and compliance? and 2) To what extent has blockchain influenced the regulatory functions of governments, and how can the significance of the blockchain in this context be elucidated?

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Why is it important?

It is argued that applications of blockchain technologies are emerging and disruptive technologies that have not progressed and reached the mature level inside of the leader of the rapidly developing technologies, which is a debated issue in many fields. Due to all reasons, the blockchain’s various dimensions and impacts on public administration are essential to scrutinise with an argumentative lens to bring out into relief its fragile and distorting angles. It is expected to contribute to the understanding of the linkage between the regulatory function of the state through the state-citizen relationship and blockchain in the public administration field.

Perspectives

The relationship between blockchain technology and state regulation can be assessed as follows: Blockchain eliminates unnecessary intermediaries, reducing transaction costs and resource waste (Bennett, 2017). This encourages trust in government and enhances citizen satisfaction (Porumbescu, 2016; Beeri et al., 2018). Blockchain services foster government trust by lowering costs and waste. From an organizational perspective, blockchain offers decentralized solutions in totalitarian societies that empower individuals, reducing coercion (Artzori, 2015). This promotes citizen engagement. Eberlein (1999, as cited in Pflieger, 2014) noted that governments will not relinquish their social objectives in public ownership but will adapt their control, resulting in a power struggle between states and citizens amid the blockchain revolution. Democratic maturity and obedience levels are critical in this context. The concept of trustlessness in blockchain has sparked debate, highlighting both advantages (Efanov & Roschin, 2018; Kasireddy, 2018) and disadvantages (Lemieux, 2016). Blockchain decreases reliance on intermediaries, enhancing trustlessness through peer-to-peer interactions while establishing frameworks that deepen trust in institutions. Privacy sensitivity relates to social impacts. Blockchain's privacy features strengthen government trust through data protection and sharing, promoting open government. However, information asymmetries (Curtois, 2014) during transactions can create new forms of oligarchy, exacerbated by concentrated technical skills among developers and technopreneurs (Artzori, 2015). Digital maturity and the digital divide will significantly influence these dynamics.

Dilek DEDE
Istanbul Universitesi

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This page is a summary of: The Linkage Between Blockchain and the Regulatory Function of Governments, January 2021, IGI Global,
DOI: 10.4018/978-1-7998-4978-0.ch022.
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