Vitalik Buterin and Harvard researcher work together

In a new scientific paper, Ethereum co-founder Vitalik Buterin and Harvard researcher Thibault Schrepel explain how blockchain technology can help implement antitrust law.The academic letter called “Blockchain as a means to combat cartel formation” explains how blockchain technology can help prevent monopoly formation through its characteristic property of decentralization. However, the authors emphasize that antitrust law must go hand in hand with technology in order to achieve the desired effect:”Law and technology should be seen as allies, not opponents, because they have complementary strengths and weaknesses,” the paper says.

 

Decentralization prevents the formation of monopolies

Buterin and Schrepel are convinced that the blockchain can help particularly in situations in which antitrust law cannot be enforced as desired, for example, when states are not willing to cooperate with one another or the corresponding supervisory authorities are affected by corruption.This is where the so-called “Smart Contracts” come into play, a mechanism that ensures that transactions are processed on the blockchain, which, through their structure, can automatically create trust between economic actors and thus create an incentive for cooperation.In addition, decentralization is one of the characteristic properties of blockchain technology, which naturally supplements the original background of antitrust law, namely the prevention of monopolies or the formation of a central market power.