Creating and Testing a Guideline for Governing Blockchain Ecosystems: A Study Informed by Design Science

Abstract

The rise of blockchain technology implies a paradigm shift for many industries, especially those traditionally relying on third parties—such as banks, publishers, and art galleries—to establish trust in economic transactions. Moreover, it enables decentralized models of governance and thus challenges conventional governance approaches. This decentralized approach to governance may offer a more inclusive and participative structure but also demands substantial adaptability. This study, therefore, explored the governance dilemmas faced by enterprises adopting blockchain solutions and seeks to develop an evidence-based set of governance guidelines. Drawing on design science methodology, we studied a highly diverse set of (enterprise-driven) blockchain ecosystems using interviews, documentation, and participant observation. Based on a set of design propositions synthesized from the literature and data collected, we subsequently created and tested an extensive guideline for guiding the journey to decentralization. The resulting guideline, called GOBLET, is characterized by enterprise-centricity, stage-specific guidance, interdependencies between various blockchain layers, and pivotal behavioral drivers. Our study contributes to the literature on blockchain governance by presenting a guideline that helps practitioners create effective governance arrangements for blockchain ecosystems. The underlying design propositions can inform future theoretical work in this area.