# Disintermediation `kaal:entity:disintermediation` **Status.** derived This node is assembled mechanically from the 52 claims that carry the concept tag `disintermediation`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 52 claims across 24 works, 2017 to 2025. **2017** - [2922176-002](https://wulfkaal.github.io/claims/2922176-002) [mechanism/asserted] -- Algorithms substitute for human middlemen inside firms, and this substitution is what produces flatter, unmediated organizations in which the best idea, rather than hierarchical position, prevails. > Indeed, algorithms replace middlemen, leading to flatter, unmediated organizations in which a best-idea-wins culture prevails. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, The ‘Unmediated’ and ‘Tech-Driven’ Corporate Governance of Today's Winning Companies (2017). SSRN: https://ssrn.com/abstract=2922176 - [2922176-003](https://wulfkaal.github.io/claims/2922176-003) [mechanism/argued] -- Platform disruptors such as Uber and Airbnb did not decentralize their industries by eliminating intermediaries; they decentralized by replacing incumbent intermediaries with algorithmic ones. > industries respectively not by eliminating intermediaries but by replacing them. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, The ‘Unmediated’ and ‘Tech-Driven’ Corporate Governance of Today's Winning Companies (2017). SSRN: https://ssrn.com/abstract=2922176 - [2939127-008](https://wulfkaal.github.io/claims/2939127-008) [mechanism/argued] *(failure mode)* -- The decentralization of law pursued by Legal Tech startups has broad repercussions for the legal profession, the first of which is that existing legal services are rendered increasingly irrelevant or are replaced outright by Legal Tech. > The decentralization of law that is a central part of the startup companies' purpose and that disrupts existing legal practices has broad repercussions for the legal profession. First, existing legal services are rendered increasingly irrelevant or are replaced by Legal Tech. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127 - [2939127-013](https://wulfkaal.github.io/claims/2939127-013) [mechanism/argued] -- The counseling, deal making, matchmaking, gatekeeping, and enforcement roles historically performed by lawyers are increasingly performed by technology, and blockchain technology and smart contracting will accelerate that substitution. > However, the counseling, deal-making, matchmaking, gatekeeping, and enforcing roles are increasingly performed by technology.43 This trend is likely to accelerate in the near future, enabled by blockchain technology and smart contracting. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127 - [2939127-015](https://wulfkaal.github.io/claims/2939127-015) [mechanism/asserted] -- Intermediaries, lawyers among them, are replaced by code, connectivity, crowd, and collaboration. > Intermediaries, including lawyers, are replaced by code, connectivity, crowd, and collaboration. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127 - [2939127-019](https://wulfkaal.github.io/claims/2939127-019) [mechanism/argued] -- Smart contracting on a blockchain often makes conventional legal contracting unnecessary, because smart contracts emulate the logic of legal contract clauses. > Through blockchain technology, smart contracting often makes contractual legal contracting unnecessary as smart contracts often emulate the logic of legal contract clauses. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127 - [2939127-020](https://wulfkaal.github.io/claims/2939127-020) [mechanism/argued] -- Increased connectivity enabled by blockchain technology, combined with increased decentralization, allows the removal of intermediaries including lawyers, financial intermediaries, and platform companies. > Increased connectivity enabled by blockchain technology in combination with increased decentralization allows for the removal of intermediaries, including lawyers, financial intermediaries, and platform companies. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127 - [2939127-022](https://wulfkaal.github.io/claims/2939127-022) [condition/argued] -- Once blockchain technology gains wider acceptance and its applications reach consumers, existing legal processes and structures will likely be among the first processes to become redundant. > When blockchain technology becomes more widely accepted and applications spread into consumer territory, existing legal processes and structures will likely be among the first processes to become redundant. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127 - [2939127-040](https://wulfkaal.github.io/claims/2939127-040) [predictive/speculative] -- For the parts of dealmaking and other legal tasks that cannot be placed on a blockchain, the role of non blockchainable agents of trust may expand, and blockchain driven disintermediation of law may itself create additional legal tasks requiring human lawyers. > For the parts of dealmaking and the other legal tasks that are non-blockchainable, the role for other, non-blockchainable agents of trust may expand. It seems possible that the blockchain-driven disintermediation of law itself creates additional legal tasks that require human lawyer input. Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127 - [2959730-022](https://wulfkaal.github.io/claims/2959730-022) [mechanism/argued] -- Smart contracting on the blockchain often makes legal contracting unnecessary because smart contracts emulate the logic of legal contract clauses. > Through blockchain technology, smart contracting often makes legal contracting unnecessary as smart contracts often emulate the logic of legal contract clauses. Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730 - [2959730-033](https://wulfkaal.github.io/claims/2959730-033) [mechanism/evidenced] -- LendingRobot can charge only a 1% management fee and a maximum 0.59% annual fund expense fee because its blockchain secured business model removes the investment adviser, overhead costs, and the legal fees associated with each investor agreement. > Because LendingRobots' business model removes the investment adviser, overhead costs, and legal fees associated with each investor agreement, LendingRobot is able to charge a mere 1% management fee and a maximum 0.59% fund expense fee per year. Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730 - [2998033-001](https://wulfkaal.github.io/claims/2998033-001) [mechanism/asserted] -- Blockchain technology lowers transaction costs by eliminating intermediaries, and it substitutes immutability and cryptography for the trust that intermediaries previously supplied. > Blockchain technology's elimination of intermediaries removes transaction costs and creates a platform for trust through truth and transparency for parties through its immutability and use of cryptography. Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033 - [2998033-002](https://wulfkaal.github.io/claims/2998033-002) [mechanism/asserted] -- Smart contracting on blockchain platforms often makes legal contracting unnecessary, because smart contracts emulate the logic of legal contract clauses. > Through blockchain technology, smart contracting often makes legal contracting unnecessary as smart contracts often emulate the logic of legal contract clauses. Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033 - [2998033-003](https://wulfkaal.github.io/claims/2998033-003) [predictive/argued] -- Business, administrative and legal services that consist of keeping ledgers, such as notary and registry services, legal motions practice, and title companies, are likely to be among the first services eliminated by blockchain adoption. > Forms of keeping business and legal ledgers such as notary and registry services, legal motions practice in court, legal title companies, among several others, may be among the first services to disappear in the not too distant future. Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033 - [2998033-025](https://wulfkaal.github.io/claims/2998033-025) [mechanism/argued] -- Blockchain increases competitive pressure in the private investment fund industry because its decentralized model for financial transactions disintermediates and disrupts the existing financial infrastructure. > the structural characteristic of blockchain as a decentralized model for financial transactions disintermediates and disrupts the existing financial infrastructure. Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033 - [2998097-039](https://wulfkaal.github.io/claims/2998097-039) [mechanism/argued] -- Blockchain's structural characteristic as a decentralized model for financial transactions disintermediates and disrupts the existing financial infrastructure, so private funds that adopt it first directly accelerate that disintermediation. > First and foremost, the structural characteristic of blockchain as a decentralized model for financial transactions disintermediates and disrupts the existing financial infrastructure. Private investment Wulf A. Kaal, Private Investment Fund Regulation - Theory and Empirical Evidence from 1998 to 2016 (2017). SSRN: https://ssrn.com/abstract=2998097 - [3002908-015](https://wulfkaal.github.io/claims/3002908-015) [mechanism/argued] -- Distributed networks disintermediate: because validation is distributed, a centralized validating entity such as a central bank or clearing house is not necessary to record and validate transactions. > Distributed networks disintermediate. The intermediation of a centralized validation entity (a central bank or a clearing-house) in charge of recording and validating the transactions is not necessary in a decentralized network. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-018](https://wulfkaal.github.io/claims/3002908-018) [mechanism/asserted] -- Smart contracting often makes legal contracting unnecessary, because smart contracts frequently emulate the logic of legal contract clauses. > smart contracting often makes legal contracting unnecessary as smart contracts often emulate the logic of legal contract clauses. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-021](https://wulfkaal.github.io/claims/3002908-021) [empirical/asserted] -- Consistent with market fragmentation and disintermediation, smaller private investment fund managers have begun to erode the power of established market institutions such as banks and insurance companies. > Moreover, consistenly with the general trends of market fragmentation and disintermediation, smaller private investment fund managers started to erode the power of established market institutions such as banks and insurance companies. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-022](https://wulfkaal.github.io/claims/3002908-022) [mechanism/argued] -- Post crisis regulation that restrained bank lending, particularly to SMEs, opened a new market that private investment funds moved into, accelerating their involvement in banking functions. > After the crisis, newly issued regulation restrained banks from lending, in particular to SMEs. This opened up a new market for private investment funds that stepped into the void left by the new regulatory regime. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-023](https://wulfkaal.github.io/claims/3002908-023) [mechanism/argued] -- Private investment funds that are first movers in implementing blockchain infrastructure in finance directly contribute to disintermediation and accelerate the evolution of blockchain infrastructure in finance. > Private investment funds that are first movers in the implementation of the blockchain infrastructure systems in finance directly contribute to that disintermediation and facilitate the accelerating evolution of the blockchain infrastructure in finance. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-036](https://wulfkaal.github.io/claims/3002908-036) [condition/argued] -- Whether private investment funds succeed in disintermediating banks through blockchain implementation depends on their ability to find scale opportunities. > Private investment funds' bank disintermediation through the implementation of blockchain technology will depend on their ability to find scale opportunities. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3067615-001](https://wulfkaal.github.io/claims/3067615-001) [mechanism/argued] -- Initial Coin Offerings are the most efficient means of financing entrepreneurial initiatives in the history of capital formation, because they minimize transaction cost and democratize finance while dis-intermediating banks. > Initial Coin Offerings (ICOs) are the most efficient means of financing entrepreneurial initiatives in the history of capital formation. ICOs minimize transaction cost and democratize finance while dis-intermediating banks. Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615 - [3071378-001](https://wulfkaal.github.io/claims/3071378-001) [mechanism/asserted] -- Blockchain technology delivers anonymous and secure transactional guarantees through democratized trust and disintermediation, and its anti-discrimination features allow minorities and disenfranchised communities to benefit from the technology. > Blockchain technology provides anonymous and secure transactional guarantees through democratized trust and disintermediation. Minorities and disenfranchised communities can benefit from the evolving technology and its anti-discrimination features. Wulf A. Kaal, Blockchain Technology and Race in Corporate America (2017). SSRN: https://ssrn.com/abstract=3071378 - [3071378-003](https://wulfkaal.github.io/claims/3071378-003) [mechanism/argued] -- Because the public blockchain is public and immutable, the technology increases transparency while significantly reducing transaction costs, and intermediaries including lawyers are replaced by code, connectivity, crowd, and collaboration. > Because the blockchain (at the least the public blockchain) is in fact public and immutable, the technology increases transparency, while at the same time significantly reducing transaction costs. Intermediaries, including lawyers, are replaced by code, connectivity, crowd, and collaboration.24 Wulf A. Kaal, Blockchain Technology and Race in Corporate America (2017). SSRN: https://ssrn.com/abstract=3071378 - [3071378-006](https://wulfkaal.github.io/claims/3071378-006) [mechanism/argued] -- Smart contracting often makes legal contracting unnecessary because smart contracts emulate the logic of legal contract clauses. > smart contracting often makes legal contracting unnecessary as smart contracts often emulate the logic of legal contract clauses.43 Wulf A. Kaal, Blockchain Technology and Race in Corporate America (2017). SSRN: https://ssrn.com/abstract=3071378 **2018** - [3128900-016](https://wulfkaal.github.io/claims/3128900-016) [mechanism/argued] -- The protocol lowers cost because it removes the manual verification step and the associated multiplication of micro task work that centralized systems require, letting decentralized workers capture the gains from disintermediation. > the Semada Protocol removes the manual verification and the associated multiplication of micro task work necessitated by centralized systems, enabling its decentralized micro task workers to profit from the disintermediation. Wulf A. Kaal, Decentralized Mechanical Turk Through Verified Reputation (2018). SSRN: https://ssrn.com/abstract=3128900 - [3128900-039](https://wulfkaal.github.io/claims/3128900-039) [mechanism/argued] -- Removing centralized fees produces a more efficient marketplace for workers, verifiers, and requesters alike by eliminating rent seeking intermediaries, leaving gas for posters as the only cost. > The lack of fees on the Semada platform creates a more efficient marketplace for workers, verifiers, and requesters alike through the removal of the rent seeking intermediators. Wulf A. Kaal, Decentralized Mechanical Turk Through Verified Reputation (2018). SSRN: https://ssrn.com/abstract=3128900 - [3227933-010](https://wulfkaal.github.io/claims/3227933-010) [mechanism/argued] -- Blockchain extends what the Internet did for information: it makes it possible to transfer and exchange value and assets without traditional centralized intermediaries, by storing information in a decentralized, accessible and secure online environment. > The blockchain adds another dimension by making it possible to transfer and exchange value and assets without the involvement of traditional (centralized and authoritative) intermediaries. Blockchain technology achieves this by storing personal and other information in a decentralized Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Why 'Blockchain' Will Disrupt Corporate Organizations (2018). SSRN: https://ssrn.com/abstract=3227933 - [3227967-018](https://wulfkaal.github.io/claims/3227967-018) [mechanism/argued] -- Because blockchain network nodes verify, validate and audit transactions both before and after execution, the model is safer than a traditional one in which transactions can only be accomplished through third party intermediaries such as a bank, judiciary or notary. > verify, validate and audit transactions before and after they are executed. 49 This is safer than a traditional model in which transactions can only be accomplished through third-party intermediaries, such as a bank, judiciary or notary. Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Legal Education in a Digital Age Why 'Coding for Lawyers' Matters (2018). SSRN: https://ssrn.com/abstract=3227967 - [3227967-020](https://wulfkaal.github.io/claims/3227967-020) [mechanism/argued] -- Blockchain replaces intermediaries, bureaucracy and old fashioned procedures with the four Cs of code, connectivity, crowd and collaboration, which increases openness and speed while significantly reducing costs. > Intermediaries, bureaucracy and old-fashioned procedures are replaced by the 4 Cs: code, connectivity, crowd, and collaboration. 55 The technology increases openness and speed, while at the same time significantly reducing costs. Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Legal Education in a Digital Age Why 'Coding for Lawyers' Matters (2018). SSRN: https://ssrn.com/abstract=3227967 **2019** - [3373393-028](https://wulfkaal.github.io/claims/3373393-028) [mechanism/argued] -- Decentralized Autonomous Organizations have begun to challenge the core belief that governance necessitates agency, because blockchain enables the removal of agents as intermediaries through code, peer-to-peer connectivity, crowds, and collaboration. > Decentralized Autonomous Organizations (DAOs) have started to challenge the core believe that governance necessitates agency. Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393 - [3405401-008](https://wulfkaal.github.io/claims/3405401-008) [mechanism/argued] *(failure mode)* -- Because the smart contract removes centralized guarantors and self regulates, only limited legal recourse remains available when execution of the contract terms goes wrong. > Most importantly, the smart contract removes centralized guarantors. The smart contract self-regulates. Only limited legal recourse is available if something goes wrong in the execution of the terms of the contract. Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401 - [3405401-027](https://wulfkaal.github.io/claims/3405401-027) [empirical/argued] -- Bitcoin proved that a decentralized system can automate the transfer of valuable digital currency without intermediaries and without a centralized authority for recourse, doing so efficiently, securely, cheaply and expeditiously. > Bitcoin proved that a decentralized system can automate the transfer of valuable digital currency without intermediaries, no centralized authority for recourse, efficiently, securely, cheaply, and expeditiously. Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401 - [3409548-013](https://wulfkaal.github.io/claims/3409548-013) [predictive/argued] -- Business, administrative, and legal processes that depend on legal intermediaries may become redundant as blockchain technology advances and is accepted, with ledger keeping services such as notary and registry services, motions practice, and title companies among the first to disappear. > Business, administrative, and legal processes that rely on legal intermediaries may become redundant because of advances in and acceptance and implementation of blockchain technology. Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548 - [3409548-024](https://wulfkaal.github.io/claims/3409548-024) [mechanism/argued] -- Because blockchain is transparent, verifiable, self-authenticating and self-enforcing, transactions can settle instantaneously at near zero cost, and it is this combination plus technology-driven democratized trust that drove the financial industry's large blockchain investments out of fear of obsolescence. > Blockchain technology is transparent, verifiable, self- authenticating, and self-enforcing, financial transactions can be executed instantaneously at near zero transaction costs, increasing the efficiency for business and individuals exponentially. Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548 - [3409548-039](https://wulfkaal.github.io/claims/3409548-039) [mechanism/argued] -- The structural characteristic of blockchain as a decentralized model for financial transactions disintermediates and disrupts the existing financial infrastructure, so funds implementing it are spearheading radical change in financial markets rather than merely adopting a tool. > First and foremost, the structural characteristic of blockchain as a decentralized model for financial transactions disintermediates and disrupts the existing financial infrastructure. Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548 - [3411110-007](https://wulfkaal.github.io/claims/3411110-007) [mechanism/argued] -- Because direct ownership on a blockchain removes the need for the Depository Trust Corporation to hold the certificate and for a broker to record beneficial ownership, agency costs can be cut and ownership clarity increases. > By establishing a system that makes the DTC obsolete, agency costs have the potential to be cut and clarity surrounding ownership will increase. Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110 - [3411110-012](https://wulfkaal.github.io/claims/3411110-012) [mechanism/argued] -- Transfer agents become unnecessary in blockchain based trading models because every function they perform, including maintaining the holding record, can be automated in code and is already produced by the ledger's design. > In blockchain- based trading models, transfer agents will not be needed because every task they preform can be automated through coding. Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110 **2020** - [3606663-005](https://wulfkaal.github.io/claims/3606663-005) [failure/argued] *(failure mode)* -- The assumption by ICO issuers that token sales let them circumvent securities registration and disclosure requirements proved to be a fallacy for many U.S. issuers, who faced increased SEC enforcement actions in late 2019. > Of course, for many U.S. issuers of tokens in ICOs this presumption became in retrospective a fallacy that should haunt them in the aftermath of increased SEC enforcement actions of ICOs in late 2019. Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663 - [3606663-024](https://wulfkaal.github.io/claims/3606663-024) [mechanism/argued] -- DeFi platforms grant the unbanked access to the loan market by disintermediating existing banks, connecting borrowers and lenders directly in peer to peer networks and accepting digital assets as collateral with far less documentation than banks require. > DeFi platforms grant the unbanked access to the loan market by disintermediating existing banks. DeFi Dapps connect borrowers and lenders in peer-to-peer networks directly. Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663 - [3606663-026](https://wulfkaal.github.io/claims/3606663-026) [failure/argued] *(failure mode)* -- Centralized financial technology does not complete the disintermediation it promises, because users still deal with a technology company as intermediary instead of a financial institution, which leaves room for the decentralized solutions DeFi attempts to provide. > In existing centralized forms of financial technology disintermediation users are still dealing with a technology company as intermediary instead of a financial institution.286 Accordingly, centralized financial technology disintermediation is incomplete and allows for further improvements. Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663 - [3606663-027](https://wulfkaal.github.io/claims/3606663-027) [mechanism/argued] -- DeFi is more efficient than existing financial intermediation including FinTech, and that superior efficiency traces to its extensive reliance on code and automation, which removes large parts of the human element and the errors and inefficiencies that come with it. > DeFi is more efficient than existing financial intermediation, including FinTech. Its superior efficiency can be traced to its extensive reliance on code and automation that remove large parts of the human element and the associated errors and inefficiencies. Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663 - [3709041-002](https://wulfkaal.github.io/claims/3709041-002) [mechanism/asserted] -- Blockchain technology incentivizes direct transactions between creator and consumer, including compensation, which eliminates the need for intermediation. > The technology incentivizes direct transactions, including compensation, between the creator and consumer, eliminating the need for intermediation. Kaal, Blockchain Technology for Good (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3709041 **2021** - [3782201-018](https://wulfkaal.github.io/claims/3782201-018) [failure/argued] *(failure mode)* -- Removing the middlemen who serve as business catalysts would kill the economy: liquidity would dry up because after a few people unfairly lose on business deals, no one will take the risk of initiating one. > Remove the middlemen business catalysts and the economy will soon die. Liquid- ity will dry up. A few people will unfairly lose on business deals, then no one will take the risk to initiate a business deal. Craig Calcaterra, Wulf A. Kaal, Future of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782201 - [3782216-011](https://wulfkaal.github.io/claims/3782216-011) [design/argued] -- Applying Web3 technology to chit funds replaces the foremen and their commission with smart contracts, which eliminates the risk that a foreman absconds with the fund. > First, smart contracts replace the foremen and their d% commission, eliminating the risk of a foreman absconding with the fund. Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216 - [3808867-037](https://wulfkaal.github.io/claims/3808867-037) [failure/argued] *(failure mode)* -- High intermediary fees in legacy payment systems make transacting economically viable only at higher transaction volumes, thereby creating barriers to entry that decentralized payment systems do not impose. > The fees make it only economically viable for higher volumes of transactions, creating barriers to entry in the process. Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867 **2022** - [4021599-005](https://wulfkaal.github.io/claims/4021599-005) [mechanism/asserted] -- Disintermediation is a key feature of blockchain technology because the technology incentivizes direct transactions between creators and consumers. > Disintermediation is another key feature of the technology as the technology incentivizes direct transactions between creators and consumers.5 Other key features that are enabled by the technology Wulf A. Kaal, Securities Versus Utility Tokens (2022). SSRN: https://ssrn.com/abstract=4021599 **2024** - [5254152-006](https://wulfkaal.github.io/claims/5254152-006) [mechanism/asserted] -- Smart contracts, as self executing contracts with terms written directly into code, remove the need for intermediaries, which lowers costs and raises trust among participants. > Smart contracts, self-executing contracts with terms directly written into code, eliminate the need for intermediaries, reducing costs and increasing trust among participants. Wulf A. Kaal, DAO Market Meta Analysis 2024 (2024). SSRN: https://ssrn.com/abstract=5254152 **2025** - [5245185-005](https://wulfkaal.github.io/claims/5245185-005) [mechanism/evidenced] -- Decentralized cryptocurrency rails let AI agents autonomously control digital wallets, securing private keys, monitoring balances, and managing multiple addresses, without requiring human or institutional authorization. > enables AI agents to autonomously oversee digital wallets—securing private keys, monitoring balances, and managing multiple addresses—without requiring human or institutional authorization. Wulf A. Kaal, How can we Best Monitor AI Agents (2025). SSRN: https://ssrn.com/abstract=5245185 - [5454054-003](https://wulfkaal.github.io/claims/5454054-003) [mechanism/argued] -- Retailer-issued stablecoins operate as an onchain Eurodollar play: they decentralize the creation of dollar-denominated liquidity, which reduces transaction costs and disintermediates traditional banks and their fees. > Retailer-issued stablecoins function as an onchain Eurodollar play that enables the decentralized creation of dollar-denominated liquidity, thus reducing transaction costs, and disintermediating traditional banking systems and their fees. Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054 - [5454054-020](https://wulfkaal.github.io/claims/5454054-020) [mechanism/argued] -- For tokenized stocks, smart contracts can verify ownership and holding periods directly from blockchain ledgers and trigger voucher airdrops without intermediaries, which lowers operational costs and increases LER scalability. > For tokenized NASDAQ stocks, smart contracts can query blockchain ledgers to verify ownership and holding periods. This triggers voucher reward airdrops without intermediaries. Whic, in turn, reduces operational costs and enhances LER scalability. Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/disintermediation.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.