# kaal:claim:3441904-007

**Claim.** Traditional limited liability entities can only partially benefit from blockchain based governance, because the dynamic regulatory features it offers are partially incompatible with the rule based legal environment those entities must comply with.

**Type.** failure  **Support.** argued

**Holds when.**

- traditional centralized limited liability entities
- existing rule based legal environment

**Source quote.**

> Blockchain-based corporate governance offers dynamic regulatory features that are partially incompatible with the rule-based traditional legal environment that traditional limited liability entities are required to comply with.

**From.** Wulf A. Kaal, *Blockchain-Based Corporate Governance* (2019), II. Business Organization Revisited, page 8

**Cite as.** Wulf A. Kaal, Blockchain-Based Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3441904

**Verify.** sha256 of source PDF `e6b562527f7f19accaa35491db0a0db168b6a936755e1dca424e9f30bee7a815` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Blockchain-Based%20Corporate%20Governance.pdf

**Failure mode.** rule-based-incompatibility  (family: interoperability-and-fragmentation)

**Topics.** dynamic-regulation, law-and-legal-systems, blockchain

**Keywords.** dynamic-regulation, limited-liability-entities, blockchain, legal-compatibility

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