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

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

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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

Year

2024

Authors

Hanna Halaburda,
Daniel Obermeier

Publication title

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

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NIM Marketing Intelligence Review

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Keywords: Digital Platforms, Blockchain, Decentralized Governance

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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