Why blockchains need the law: Secondary rules as the missing piece of blockchain governance

Governance issues limit blockchains’ ability to evolve and face unforeseen challenges. It seems possible to argue that this impasse is because most blockchains lack meta-rules. This work considers blockchains as a socio-technical system of rules, in order to draw a comparison with legal systems. Following the comparison, one finds that most blockchains lack what, in legal theory, are considered secondary rules. That is, the meta-rule of the system. This works examines the relevant concepts and provides their definitions, then proceeds to outline concrete example of the failure of governance among popular blockchains before drawing the parallelism with legal systems and argue that secondary rules might solve some of the issues of the governance of blockchains. Secondary rules are the necessary infrastructure for building sound governance structures and a necessary condition for blockchains to succeed as a new mode of governance. The conclusion provides future research directions.