White Paper Realizing the Potential of Blockchain

The document argues that blockchain, as a new global resource, should be governed not by nation-states or corporations, but through a multistakeholder approach using 'global solution networks'. It identifies governance challenges across three levels: the platform level (e.g., bitcoin's scalability and energy use), the application level (e.g., ICO oversight and user interfaces), and the overall ecosystem level (e.g., legal structures and diversity of viewpoints). The authors suggest applying a framework of seven network types—standards, knowledge, delivery, policy, advocacy, watchdog, and networked institutions—to coordinate the diverse stakeholders, including innovators, venture capitalists, banks, developers, academics, NGOs, governments, and users.

• The authors argue that blockchain should be stewarded as a global resource using a multistakeholder approach rather than through top-down government regulation or corporate control, citing the governance of the internet of information as a successful model.
• Blockchain governance challenges are categorized into three distinct levels: the platform level (protocols), the application level (tools like smart contracts), and the overall ecosystem level (the 'ledger of ledgers').
• At the platform level, bitcoin faces a 'governance crisis' characterized by internal conflict over scalability, specifically the 'block-size debate' and the tension between 'segregated witness' (SegWit) and Bitcoin Unlimited (BU) proposals.
• The energy consumption of proof-of-work blockchains is identified as unsustainable, with estimates for the bitcoin network's power usage ranging from that of 700 average American homes to the entire island of Cyprus.
• Ethereum's governance was tested by the 2016 DAO hack, which resulted in a hard fork of the blockchain after 89% of six stakeholder groups voted in favor of clawing back hacked funds, leading to the creation of Ethereum Classic.
• The document highlights a critical shortage of skilled blockchain developers, estimating that only 1,000 to 2,000 developers globally possess the necessary skills to build blockchain applications.
• Initial Coin Offerings (ICOs) present a governance challenge due to a lack of oversight compared to regulated Initial Public Offerings (IPOs), potentially exposing unsavvy investors to risk.
• The authors warn that premature legislation or regulation, such as New York's BitLicense, can stifle innovation and drive companies out of specific jurisdictions.
• The blockchain ecosystem suffers from a lack of diversity, particularly regarding gender and race, which the authors argue leads to 'thinking errors' and suboptimal problem-solving.
• The authors propose the creation of a 'Bitcoin Engineering Task Force' (BETF) as a grass-roots technical group to resolve the deadlock in bitcoin platform development and implement common standards.

APA

Tapscott, D., & Tapscott, A. (2017). White Paper Realizing the Potential of Blockchain. World Economic Forum. http://www3.weforum.org/docs/WEF_Realizing_Potential_Blockchain.pdf

Chicago

Tapscott, Don, and Alex Tapscott. White Paper Realizing the Potential of Blockchain. World Economic Forum, 2017. http://www3.weforum.org/docs/WEF_Realizing_Potential_Blockchain.pdf.

Wikipedia

{{cite report |last1=Tapscott |first1=Don |last2=Tapscott |first2=Alex |title=White Paper Realizing the Potential of Blockchain |publisher=World Economic Forum |date=June 2017 |url=http://www3.weforum.org/docs/WEF_Realizing_Potential_Blockchain.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{tapscott2017white, author = {Tapscott, Don and Tapscott, Alex}, title = {{White Paper Realizing the Potential of Blockchain}}, institution = {World Economic Forum}, year = {2017}, month = jun, url = {http://www3.weforum.org/docs/WEF_Realizing_Potential_Blockchain.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }