With Darcy W.E. Allen and Sinclair Davidson. Published in Melanie Swan, Shin’ichiro Matsuo, Frank Witte and Yasushi Takagi (eds), Cryptoeconomic Theory, World Scientific, 2026, pp. 35–51.
Abstract: Blockchain networks must decide whether to produce their own security or purchase it from other networks, presenting a classic make-or-buy decision in institutional economics. This chapter develops a framework for analysing shared-security arrangements using transaction-cost economics and early empirical evidence. It examines how asset specificity, uncertainty and opportunism shape governance structures in shared-security provision. Successful security sharing requires institutional mechanisms that manage adaptation while protecting relationship-specific investments. The chapter proposes governance solutions for mitigating contracting hazards in shared-security arrangements.
Available at World Scientific.