Power Dynamics in the Evolution of Blockchain

Abstract

In this paper, drawing on past IS research on how IT affects power dynamics in organization and networks, we focus on blockchain technologies. After describing and analyzing two mini-cases of blockchain creation and use, we critically discuss the power of all actors involved: blockchain code, creators, developers, maintainers, institutional forces and users. We therefore contribute to the literature on the governance of blockchain creation and use in organizations and networks. We do so by exploring the power dynamics among key socio-technical actors involved in significant decision-making processes in the early lifecycle stages of blockchain. The insights gain from this exploratory study support prior literature that indicates that developers may sit in a privileged position in blockchain ecosystems, while also demonstrating the unique power dynamics among other socio-technical actors present. By contrasting these dynamics with those found in other technologies, e.g., ERP and AI, we help to expose the unique power dynamics that exist in these blockchain-enabled decentralized settings. Potential avenues for future theoretical testing and development, as well as practical implications for managers or organizations engaging with emerging blockchain technologies are provided.