The Impact of Blockchain on Society

The Influence of Blockchain Technology on Society, Economy, and Law

• Blockchain technology has a potential influence on contemporary society, economy, and law, and is used in various areas.
• The primary application of blockchain is the facilitation of cryptocurrencies and other cryptoassets.
• Bitcoin and the cryptocurrency movement emerged during the global financial crisis of 2008 as an effort to bypass the mainstream global financial system.
• The price of Bitcoin first exceeded the price of an ounce of gold on March 3, 2017.
• Cryptocurrencies have exponentially multiplied since then, and a separate category of cryptoassets has been developed.
• Cryptoassets are expected to become mainstream assets in the near future.
• The explosion of the cryptocurrency market has led to a regulatory backlash by governments around the world to protect national interests and re-embed money into national jurisdictions.
• Blockchain technology is a general-purpose technology that can be used to achieve multiple goals, and it was initially developed as the Bitcoin blockchain to bypass commercial regulation.
• The literature on the legal aspects of cryptocurrencies and other cryptoassets has been expanding.
• The regulatory response to blockchain technology largely depends on how the relevant legal actors perceive the threat posed by cryptoassets and their underlying technology.
• Blockchain technology and related blockchain markets are becoming more important.
• The potential influence of blockchain on contemporary society, economy, and law becomes apparent considering the various areas in which blockchain is used.

Blockchain Regulation and Market Growth

• The regulation of cryptocurrencies, particularly Bitcoin, has been a prominent issue in legal literature with various scholars expressing differing views on the necessity and extent of regulation.
• The market for blockchain technology is expected to grow from USD 3.0 billion in 2020 to USD 39.7 billion by 2025.
• The adoption of blockchain technology, initially by financial institutions and central banks, has extended to private commercial actors and public bodies, but it poses challenges.
• According to de Filippi and Wright, blockchains shift power from legal rules administered by government authorities to code-based rules and protocols governed by decentralized blockchain-based networks.
• Blockchain and distributed ledgers pose a significant challenge to the state's monopoly over the promulgation, formation, and verification of institutions and public records, potentially replacing trust in and through the government with trust in blockchain technology.
• Satoshi Nakamoto, the pseudonymous developer of Bitcoin, suggested that blockchain technology could lead to a society where self-enforcing rules replace traditional laws.
• Blockchain creates a new kind of legal system and may give rise to lex cryptographia, a new application of law as code.
• Brendan Markey-Towler proposed a theory of political-socioeconomic systems organized using blockchain, suggesting the potential for anarchy, blockchain, and utopia.
• Kevin Werbach's work explores the new architecture of trust in the context of blockchain.
• Ethereum co-founder Gavin Wood discusses the future potential of blockchain technology in an interview, highlighting its transformative impact.
• Joel R. Reidenberg's concept of lex informatica, reflecting the formulation of information policy rules through technology, is relevant in understanding the development of lex cryptographia within blockchain.
• The decentralized nature of blockchain presents a fundamental shift in the way trust and legal systems operate, with implications for the regulation of cryptocurrencies and the broader legal landscape.