Blockchain technology, understood as a tool for traceability and certification of information, is the most important digital innovation of the last 20 years. From its application in the financial sector to smart contracts and NFTs, it represents an efficient and secure tool for exchange and certification.
The most disruptive aspect is that, contrary to existing intermediation and trust-based logic, it offers a concrete solution both as a network tool and as a tool for tracking operations. Within the Blockchain, nodes, which are the computers, are all connected to each other and have total access to the information.
Particularly in the field of computer science, the intertwining of social and innovative aspects is evident and allows us to participate in a phenomenon that we take for granted: progress as a tool to improve the quality and style of our lives.
Innovation in general, whether in Tech engineering or ICT informatics, is a tool for socio-economic development of the community. This is still the triggering reason for conflicts of approach and ethical-social issues related to innovation and its governance. Probably, thanks to the development and growth of popular legal consciousness, the fracture arises from the need to distinguish oneself from the social consequences related to technology and informatics. When we talk about innovation, there is a risk of not fully understanding the tools, so it is necessary for the user to make an effort to understand them in order to exploit them to the fullest.
“Don’t trust, verify” is a mantra of the blockchain, derived from a famous quote by American scholar Suzanne Massie, “Trust, but verify,” which was later adapted and used to spread the most important social benefit of the blockchain, namely its replacement of financial intermediation as a technology serving the network.
Technically, the Blockchain is a digital ledger in a distributed network of independent computers that contains authenticated, encrypted, and immutable information. Its name derives from the internal functioning system based on the chaining of blocks containing information, hence the term “blockchain.” When talking about information within the Blockchain, it is commonly thought of as specific data that is easy to retrieve and refer to a particular keyword or transaction, as it is often mistakenly associated with the concept of a database. In reality, being a complex system based on non-relational logics, the Blockchain stores information by associating it with transactions between two or more individuals identified through their accounts, thus allowing for the complete sequence of activities to be known and their authenticity to be proven. The mechanism for verifying information within it does not occur automatically on the information itself but is performed by participants in the network through the application of encryption in order to only send validated, accepted blocks that are subsequently reverified by the system.
The network is a concept widely used both in the field of computer science and law, representing an evolution of the concept of social aggregation. It deserves to be analyzed taking into account the historical and socioeconomic reasons that have led it to be considered a suitable tool to promote certain currents of thought or global principles, such as transparency, inclusive market, cooperation, equality, and scientific progress. In a European and then international market, businesses and individuals need to be able to sell and transact easily and securely.
Transparency is a prominent principle of modern commercial law, representing a necessary objective for all businesses, both towards consumers and within the market. In order to allow businesses to expand and cooperate in various countries around the world, different commercial practices have been developed, which allow for the tracing and monitoring of supply chains and market channels, as well as payments and transactions. Transparency and security of operations are not only important to be identifiable in transactions but should also consider human aspects. When regulated in compliance with the law and in balance between the parties, they favor the minimization of risks and the maximization of profit.
Just like a community, the network needs an overall vision, a legal philosophy, or governance that encompasses its principles and objectives, bringing participants together and facilitating and regulating their engagement, reducing risks and optimizing economic and social performance.
The business network of the blockchain is a network of people collaborating towards common economic goals. It is an approach that opposes the traditional competitive system: people belonging to a business network tend to be more open, adopt flexible, organized, and automatable processes, while traditional methods impose closure, surveillance, and rigidity in processes, often with a static approach focused on secrecy. When discussing a different approach to the market, one must take into account the recent trends in this area, of which the blockchain represents the ultimate expression.
Multilevel governance (or networked and interactive governance) consists of activating and governing a coordination and cooperation network aimed at achieving shared objectives. It is a form of coordination that operates not through hierarchical or market relationships, but through the activation and governance of interactive, cooperative, and negotiatory processes involving all stakeholders. In the last 30 years, the concept of multilevel governance has spread to highlight the increasing number of stakeholders involved in the management of social policies. This implies entrusting social responsibilities and related competencies to a broader range of semi-public, local, or supranational actors.
“In this case, governance does not aim solely for economic success but takes on a broader performative dimension that encompasses the social quality of goods and services produced” (“Trustee Motivation and Board Effectiveness,” article published in “Nonprofit and Voluntary Sector Quarterly,” Barbara E. Taylor, Richard P. Chait, and Thomas P., 1991).
As theorized by the aforementioned expert economists, through innovation governance, the aim is to maximize both economic and social performance. Among the new trends, perfectly aligned with the current digital revolution, the blockchain is changing perspectives for the market and all citizens, offering a simple method to make financial instruments not only effective and secure but also accessible to everyone, with the important result of creating new financial opportunities. Regardless of whether or not trust is placed in the technology, it is important first and foremost to understand it and assess its impacts, both positive and negative, in order to grasp its real potential and, where possible, neutralize threats to make it a tool for community growth and development.
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