Blockchains, Collateral and Financial Contracts
Alexander K. Karaivanov · RePEc: Research Papers in Economics · 2021
I map the link between financial contracts and the algorithmic tools and constraints of blockchain technology related to property rights, information, commitment, and enforcement. I describe and formalize the microfoundations and possible use of blockchains as direct conduit for implementing financial contracts in incomplete markets settings and as collateral mechanism for on- and off-chain transactions and contracts.