Ethereum co-founder Vitalik Buterin has asserted that the objectives of blockchain and antitrust laws are the same i.e. to decentralize finance and reduce the creation of monopolies. In a paper published recently, Vitalik Buterin and Harvard faculty Thibault Schrepel argue that blockchain can be of great help to the anti-trust laws where applications of regulations are difficult.
Establishing Trust with Blockchain
Buterin and Schrepel furthered their assertions by explaining that blockchain, if aided by smart contracts, can be utilized to establish trust in those situations where anti-trust laws will be hard to implement. This will, as a result, prevent fraud and theft from taking place. Smart contracts will help to create a financial ecosystem within which the transacting parties will not be able to entrust any affair in an unknown entity unless the transactions are carried out successfully.
The Primary Objective of Blockchain
The primary purpose of blockchain is not only to decentralize the financial industry but also to prevent companies from monopolizing. To quote Buterin’s opinion with reference to this, “The idea is for all market players to retain the ability to decide without having to follow the instructions of centralized economic power.” In order to meet such an objective, it is important for blockchain to complement antitrust laws.
Emphasis on Legal Support
Sketching out the prospective positive outcomes of complementing blockchain with antitrust laws, Schrepel and Buterin are urging the antitrust agencies to consider their proposal for the betterment of the digital currency sector and on the economy as a whole. They concluded by saying that when technology chooses confrontation, the law too shall choose confrontation. When the technology chooses collaboration the law too shall choose upon the same with a hope to succeed in their venture.