Prysm Group Founding Economist Cathy Barrera, Ph.D. discusses the economic concept of contract incompleteness and its implications for blockchain governance. Contracts, both traditional and smart, are inherently incomplete: it is impossible to specify every possible outcome at the time the contract is drafted. This simple but profound observation shapes the structure of traditional firms and business processes across industries. As blockchain organizations explore new business structures, they will need to design governance systems to mitigate the inefficiencies introduced by contract incompleteness.
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