Backfeed, the Blockchain, and Value Systems in the Sharing Economy

* Article: Blockchain and Value Systems in the Sharing Economy: The Illustrative Case of Backfeed. By Alex Pazaitis, Primavera De Filippi, Vasilis Kostakis. Working Papers in Technology Governance and Economic Dynamics no. 73, JANUARY 2017

URL = http://technologygovernance.eu/files/main//2017012509590909.pdf

Abstract

"This article explores the potential of the blockchain technology in enabling a new system of value that will better support the dynamics of social sharing. Our study begins with a discussion of the evolution of value perceptions in the history of economic thought. Starting with a view on value as a mechanism that defines meaningful action within a certain context, we associate the price system with the establishment of capitalism and the industrial economy. We then discuss its relevance to the information economy, exhibited as the techno-economic context of the sharing economy, and identify new modalities of value creation that better reflect the social relations of sharing.

Through the illustrative case of Backfeed, a new system of value is envisioned, comprised of three layers:

• (a) production of value;
• (b) record of value; and
• (c) actualisation of value.

In this framework, we discuss the solutions featured by Backfeed and demonstrate a conceptual economic model of blockchain-based decentralised cooperation. We conclude that the blockchain technology has the potential to enable the creation of commons-oriented ecosystems in a sharing economy."