2016-2017
The Path of the Blockchain Lexicon 713
The Path of the Blockchain Lexicon (and the Law) Angela Walch* Abstract The terminology around blockchain technology is notoriously confusing, with disputes over whether a blockchain is the same as a distributed ledger, or whether an appcoin is the same as a protocol token. In this article, I examine the difficulties the rapidly shifting, contested vocabulary poses for regulators seeking to understand, govern, and potentially use blockchain technology, and offer suggestions for how to fight through the haze of unclear language. In Part II, I provide examples of the fluctuating, contested language in the blockchain technology space, and describe the forces at play in shaping the language. In Part III, I lay out the problems the language raises for regulators, including challenges in identifying the facts about the technology, distinguishing among the many variations of the technology, and communicating clearly about the technology, as well as increasing the chances of regulatory capture, inconsistent regulation across jurisdictions and subject domains, and “perverse innovation.” In Part IV, I closely analyze the use of the term “immutable” in blockchain discourse, to illuminate the confusion a single term can cause for regulators (and the public at large). I argue that the widespread use of the term “immutable” as a defining feature of blockchain technology is misleading, given that (1) real world events have demonstrated that the unchangeable nature of a blockchain record is always limited by the decisions of its human governors to change it, and (2) the source of a blockchain record’s “immutability” Associate Professor at St. Mary’s University School of Law. Research Fellow at the Centre for Blockchain Technologies at University College London. A.B. Harvard, 1998. J.D. Harvard, 2002. Thank you to Anat Admati, Hilary Allen, Greg Baden, John Beccia, Ian Grigg, Emma Jordan, Victoria Lemieux, Patricia McCoy, Matthew Reed, Tim Swanson, Steve Wilson, Aaron Wright, Vlad Zamfir, editors of the Review of Banking Financial Law¸ and participants in the Review of Banking and Financial Law’s 2017 Symposium on the Law of FinTech for helpful feedback on the piece. I am grateful to St. Mary’s University School of Law for a publication grant that funded my work on this piece, and to Andrés Gonzalez for terrific research assistance. I also thank my husband, Scott Russell, for his support and insights. *