# kaal:claim:3373393-018

**Claim.** Blockchain provides an alternative governance mechanism that eliminates agency costs, meaning the principal's cost of supervising agents, by creating trust in the contractual relationship between principal and agent.

**Type.** mechanism  **Support.** argued

**Source quote.**

> Blockchain technology provides an alternative governance mechanism that eliminates agency costs - the principal's cost of supervising agents - by creating trust in the contractual relationship between the principal and the agent.

**From.** Wulf A. Kaal, *Blockchain Solutions for Agency Problems in Corporate Governance* (2019), III. Blockchain Solutions for Agency Problems in Corporate Governance, page 13

**Cite as.** Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393

**Verify.** sha256 of source PDF `4d1424b9ba9aff8a61bc7a0dddd02cded93785e5843685dde76c07dcdb23961e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Blockchain%20Solutions%20for%20Agency%20Problems%20in%20Corporate%20Governance.pdf

**Topics.** blockchain, corporate-governance, reputation, governance-design

**Keywords.** blockchain, agency-costs, trust, governance-mechanism

**Superseded by.** A later claim revises this one. Prefer quoting: https://wulfkaal.github.io/claims/3808873-042

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3411897-017
- extended_by: https://wulfkaal.github.io/claims/3441904-003
- extended_by: https://wulfkaal.github.io/claims/3652481-004

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