# kaal:claim:3808867-035

**Claim.** Blockchain based guarantees remove agency costs because principals are less required to institute oversight and monitoring of agents, which addresses inherent agency problems in modern finance and corporate governance.

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

**Holds when.**

- contracts whose parameters are verified by a majority of miners or nodes

**Source quote.**

> Blockchain-based guarantees remove agency costs because principals are less required to institute oversight and monitoring of agents which addresses the inherent agency problems in modern finance and corporate governance.

**From.** Wulf A. Kaal, *How Decentralized Systems Can Upgrade AI* (2021), V. Decentralized Commerce, page 17

**Cite as.** Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867

**Verify.** sha256 of source PDF `eeccf6d0587bd278a96ce6ac8ec5003e26d161c245f6c94b4144d84f374802eb` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20How%20Decentralized%20Systems%20Can%20Upgrade%20AI.pdf

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

**Keywords.** agency-costs, corporate-governance, blockchain, monitoring

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3782201-008
- restates: https://wulfkaal.github.io/claims/3373393-021
- restates: https://wulfkaal.github.io/claims/3411897-017
- restates: https://wulfkaal.github.io/claims/3373393-001
- restates: https://wulfkaal.github.io/claims/3373393-024
- extends: https://wulfkaal.github.io/claims/3373393-002

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.