Conference Theme Track B: IS for Resilience

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Paper Number

1712

Paper Type

Completed

Description

The research presents an agent-based model that integrates a redistribution algorithm with the competition-based public blockchain reward scheme, relying on economic theories inside and outside the market. The analysis results show that pure liberalism embedded in blockchain leads to high wealth inequality, which is hard to change because the algorithm also divides the computational resource for the wealth increase. However, wealth inequality may be alleviated if the reward scheme adopts the redistribution as the policy complementing the liberal market in the modern economy. Those findings help us understand mechanisms of inequality generated by the new digital divide while calling for a more responsible blockchain protocol design to build a resilient society.

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02-Resilience

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Dec 12th, 12:00 AM

Blockchain Unpacked: An Agent-Based Model of Economic Inequality and Its Implications for Technology Governance in Blockchain

The research presents an agent-based model that integrates a redistribution algorithm with the competition-based public blockchain reward scheme, relying on economic theories inside and outside the market. The analysis results show that pure liberalism embedded in blockchain leads to high wealth inequality, which is hard to change because the algorithm also divides the computational resource for the wealth increase. However, wealth inequality may be alleviated if the reward scheme adopts the redistribution as the policy complementing the liberal market in the modern economy. Those findings help us understand mechanisms of inequality generated by the new digital divide while calling for a more responsible blockchain protocol design to build a resilient society.

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