Public-Permissioned blockchains as Common-Pool Resources

Open Access

Abstract

For many, using together the words Public and Permissioned when referring to a blockchain network, as in Public-Permissioned Blockchain, is a misnomer. Until now the words Public and Permissioned have been used as opposites, where Permissioned is seen as synonymous with Private. However, a new kind of blockchain network is emerging, being pioneered by Alastria. Public-Permissioned blockchain networks bring a lot of value to the digitization of the productive economy of a country or a region like the European Union, complementing-but not replacing-the other types of networks, namely Public-Permissionless and Private-Permissioned (aka Private Consortiums). In this context Blockchain networks are socio-technical systems that, given their inherent difficulties to scale in different dimensions, can be considered as a kind of good with some scarce resources which require a proper governance model to avoid resource abuse and depletion. Two classical models to manage scarce resources are the state (government controlled) and the market (managed as private goods subject to offer and demand). We explore in this document a third way to manage that type of resorces, the Common-Pool Resources (CPR) model.