> ## Documentation Index
> Fetch the complete documentation index at: https://docs.theblockchainlibrary.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Blockchain Technology as Economic Infrastructure: Revisiting the Electronic Markets Hypothesis

> This paper re-evaluates the Electronic Markets Hypothesis (EMH) through the lens of blockchain technology, arguing that DLT serves as a fundamental economic inf

# Blockchain Technology as Economic Infrastructure: Revisiting the Electronic Markets Hypothesis

This paper re-evaluates the Electronic Markets Hypothesis (EMH) through the lens of blockchain technology, arguing that DLT serves as a fundamental economic inf

## Abstract

This paper re-evaluates the Electronic Markets Hypothesis (EMH) through the lens of blockchain technology, arguing that DLT serves as a fundamental economic infrastructure that lowers transaction costs and enables new forms of market coordination. The authors trace the development of market theory, contending that blockchain automates trust and reduces the need for costly intermediaries. By analyzing the structural impact of distributed ledgers on institutional economics, the paper illustrates how smart contracts can facilitate complex trade agreements and asset exchanges without traditional clearinghouses. The study bridges the gap between technical blockchain design and macroeconomic theory, proposing that decentralized systems fundamentally alter the cost structures of firm and market operations. The research concludes that blockchain does not merely optimize existing processes but acts as a revolutionary layer for building decentralized economic institutions, necessitating a new framework for understanding the future of institutional market design.

**Authors:** Chris Berg, Sinclair Davidson, Jason Potts

**Publication:** Academic Paper

**Publication date:** 2019-01-01

## Key findings

* Blockchain functions as a new economic infrastructure that drastically reduces institutional transaction costs.
* Smart contracts enable trustless market coordination, minimizing the necessity for intermediaries and third-party clearinghouses.
* The adoption of blockchain necessitates a revision of existing theories regarding market hierarchy and firm governance.
* Decentralized ledger technology effectively automates trust, shifting economic value creation toward protocol-based coordination.

## Citation

Chris Berg, Sinclair Davidson, Jason Potts (2019). Blockchain Technology as Economic Infrastructure: Revisiting the Electronic Markets Hypothesis. Academic Paper. [https://www.frontiersin.org/journals/blockchain/articles/10.3389/fbloc.2019.00022/full](https://www.frontiersin.org/journals/blockchain/articles/10.3389/fbloc.2019.00022/full)

## Related knowledge

* [Asset Tokenization](/generated/v2/glossary/asset-tokenization) — glossary
* [Asset Tokenization](/generated/v2/glossary/asset-tokenization) — related-glossary
* [Automated Market Maker](/generated/v2/glossary/automated-market-maker) — glossary
* [Automated Market Maker](/generated/v2/glossary/automated-market-maker) — related-glossary
* [Beacon Chain](/generated/v2/glossary/beacon-chain) — glossary
* [Beacon Chain](/generated/v2/glossary/beacon-chain) — related-glossary
* [Decentralized Identity: How Blockchain is Solving the Digital Identity Crisis](/generated/v2/topics/decentralized-identity-how-blockchain-is-solving-the-digital-identity-crisis) — article
* [Decentralized Identity: How Blockchain is Solving the Digital Identity Crisis](/generated/v2/topics/decentralized-identity-how-blockchain-is-solving-the-digital-identity-crisis) — related-article
* [DeFi vs. TradFi in 2025: Who’s Winning the Battle for Financial Freedom?](/generated/v2/topics/defi-vs-tradfi-in-2025-whos-winning-the-battle-for-financial-freedom) — article
* [DeFi vs. TradFi in 2025: Who’s Winning the Battle for Financial Freedom?](/generated/v2/topics/defi-vs-tradfi-in-2025-whos-winning-the-battle-for-financial-freedom) — related-article
* [Enterprise Blockchain Adoption in 2026: The Use Cases Finally Going Mainstream](/generated/v2/topics/enterprise-blockchain-adoption-in-2026-the-use-cases-finally-going-mainstream) — article
* [Enterprise Blockchain Adoption in 2026: The Use Cases Finally Going Mainstream](/generated/v2/topics/enterprise-blockchain-adoption-in-2026-the-use-cases-finally-going-mainstream) — related-article
* [Factory Contract](/generated/v2/glossary/factory-contract) — glossary
* [Factory Contract](/generated/v2/glossary/factory-contract) — related-glossary
* [Layer 3: The Next Frontier in Blockchain Scalability](/generated/v2/topics/layer-3-the-next-frontier-in-blockchain-scalability) — article
* [Layer 3: The Next Frontier in Blockchain Scalability](/generated/v2/topics/layer-3-the-next-frontier-in-blockchain-scalability) — related-article

***

**Canonical knowledge ID:** `research:blockchain-technology-as-economic-infrastructure-revisiting-the-electronic-markets-hypothesis`