Blockchain Technology Impacting Property Rights and Transaction Cost Regimes

The convergence of the physical and virtual worlds radically challenges our legal, economic and other institutional regimes. In contrast, property rights and transaction cost regimes are still largely based on the pre-digital era. The blockchain architecture seems to offer a way for one Internet user to safely and securely transfer a unique piece of digital property to another in such a way that anyone knows that the transfer has taken place and no one can challenge the legitimacy of the transfer. Subsequently, transaction costs could diminish and property rights be unbundled and partially enforced on an unprecedented granular level. This paper explores the implications of blockchain technology for our established property rights and transaction cost regimes. It aims to discuss whether the established regimes and theories will prevail or will need to adapt to the advent of blockchain technology.