Buterin and Schrepel: Blockchain technology integrates antitrust laws

Buterin and Schrepel: Blockchain technology integrates antitrust laws - ss blockchain 4IRLast week, in a video call, the well-known co-founder of Ethereum (quotation in real time) Vitalik Buterin and Thibault Schrepel, Harvard law professor, presented their article on the "Blockchain Code as antitrust", exploring the characteristics of ideology and supporting how blockchain technology can integrate antitrust laws in areas where it is difficult to enforce and enforce regulations.

The document was first published in May of this year. But due to the COVID-19 pandemic, Buterin and Schrepel had not yet formally presented their thesis. They did it yesterday in a YouTube video. The article explores a theory of decentralization in the real world, the role of smart contracts and small monopolies with distributed governance.

Blockchain technology to integrate antitrust laws?

The document argues that nation states should use public and unauthorized blockchain technology to supplement antitrust laws. Antitrust rules protect consumers from predatory business-centered practices while ensuring a uniform distribution of power among influential companies.

Buterin and Schrepel explain that blockchains, thanks to the use of smart contracts, can build trust in situations where laws are difficult to enforce. “Both antitrust and blockchain technology aim for decentralization,” Schrepel explains in the video.

He adds that the two mechanisms are complementary and make possible a free market in the real world. "Antitrust law does this by preventing companies from holding too much economic power, blockchains do it by reducing intermediaries and allowing peer-to-peer transactions," he adds.

Buterin and Schrepel push for greater decentralization

Buterin wanted to dwell on the many misconceptions that mainstream media perpetuate on blockchain technology. In particular, he noted that blockchain systems do not imply that every element of them needs to be decentralized.

The 26-year-old specified that there may also be a part of centralization and it is often valuable to have some centralized actors, such as the portfolio providers of some level 2 infrastructure companies: “At the same time, there is this pressure to really try to reduce the extent to which this happens (...) at the protocol level, we really strive to push for greater decentralization at the application level and so on ".

Buterin and Schrepel reiterated their encouragement to governments to provide regulated sandboxes and legal spaces so that blockchain technology evolves becoming more decentralized and can help achieve the goals of antitrust laws.

Meanwhile, China has already set up a blockchain-based government. Reports yesterday reported that the country announced the development of a decentralized system of e-governance, imports, businesses and even private companies in Beijing. This is in line with its wider push for blockchain technology under a five-year plan.