Self-organization of Network Communities via Blockchain Technology: Reputation Systems and Limits of Digital Democracy

Abstract

The article is devoted to the analysis of the use of blockchain technology for self-organization of network communities. Network communities are characterized by the key role of trust in personal interactions, the need for repeated interactions, strong and weak ties within the network, social learning as the mechanism of self-organization. Therefore, in network communities reputation is the central component of social action, assessment of the situation, and formation of the expectations. The current proliferation of virtual network communities requires the development of appropriate technical infrastructure in the form of reputation systems - programs that provide calculation of network members reputation and organization of their cooperation and interaction. Traditional reputation systems have vulnerabilities in the field of information security and prevention of abusive behavior of agents. Overcoming these restrictions is possible through integration of reputation systems and blockchain technology that allows to increase transparency of reputation assessment system and prevent attempts of manipulation the system and social engineering. At the same time, the most promising is the use of blockchain-oracles to ensure communication between the algorithms of blockchain-based reputation system and the external information environment. The popularization of blockchain technology and its implementation in various spheres of social management, production control, economic exchange actualizes the problems of using digital technologies in political processes and their impact on the formation of digital authoritarianism, digital democracy and digital anarchism. The paper emphasizes that blockchain technology and reputation systems can equally benefit both the resources of government control and tools of democratization and public accountability to civil society or even practices of avoiding government. Therefore, it is important to take into account the problems of political institutionalization, path dependence and the creation of differentiated incentives as well as the technological aspects.