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Blockchains, Collateral and Financial Contracts

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  • Alexander Karaivanov

    (Simon Fraser University)

Abstract

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.

Suggested Citation

  • Alexander Karaivanov, 2021. "Blockchains, Collateral and Financial Contracts," Discussion Papers dp21-03, Department of Economics, Simon Fraser University.
    • Handle: RePEc:sfu:sfudps:dp21-03
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    References listed on IDEAS

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    Cited by:

    1. Anil Donmez & Alexander Karaivanov, 2022. "Transaction fee economics in the Ethereum blockchain," Economic Inquiry, Western Economic Association International, vol. 60(1), pages 265-292, January.

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