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Halaburda, H. & Obermeier, D. Web3 and the Future of the Digital Platform Economy: The Tricky Business of Finding the “Just Right” Level of Decentralization. NIM Marketing Intelligence Review, 2024, Sciendo, vol. 16 no. 2, pp. 40-45. https://doi.org/10.2478/nimmir-2024-0016

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NIM Marketing Intelligence Review – Platform Business

Web3 and the Future of the Digital Platform Economy: The Tricky Business of Finding the “Just Right” Level of Decentralization

Digital Platforms Blockchain Decentralized Governance

Authors

  • Hanna Halaburda, Associate Professor of Technology, Operations, and Statistics, New York University, NY
  • Daniel Obermeier, Postdoctoral Researcher at the Department of Technology, Operations, and Statistics, New York University, NY
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Abstract:
As an alternative to the powerful platform companies controlling every detail of our lives, tech evangelists have praised blockchain technology and algorithm-based, decentralized governance as a potential remedy. They expect blockchain technology to allow for the disintermediation of digital platforms and a fairer distribution of the created value among those who contribute to it. Blockchain-based platform governance could be more transparent, democratic and inclusive. Instead of one central party consolidating all decision authority and control over the platform, blockchain platforms rely on a predefined, algorithmically encoded and publicly visible protocol that enables a network of peers to maintain the platform jointly. However, complete decentralization is no panacea for reducing the power of intermediaries. It comprises several trade-offs, and many challenges are as yet unsolved. Although promising solutions are looming on the horizon, reintroducing some level of centralization might be a more reliable and available solution in the short run.

Authors

  • Hanna Halaburda, Associate Professor of Technology, Operations, and Statistics, New York University, NY
  • Daniel Obermeier, Postdoctoral Researcher at the Department of Technology, Operations, and Statistics, New York University, NY
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Suggested Citation

Halaburda, H. & Obermeier, D. Web3 and the Future of the Digital Platform Economy: The Tricky Business of Finding the “Just Right” Level of Decentralization. NIM Marketing Intelligence Review, 2024, Sciendo, vol. 16 no. 2, pp. 40-45. https://doi.org/10.2478/nimmir-2024-0016



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