Autonomous Distributed Networks: The Unfulfilled Libertarian Dream of Breaking Free from Regulations

Abstract

Decentralisation embodies the libertarian dream of breaking free from the regulatory influence of governments and of bypassing via trustless networks the need for a central authority for decision making. Techno-libertarian and crypto-anarchists maintain that the technology of decentralisation has the power to remove unnecessary (inefficient and parasitic) middle layers of centralised institutions, and realise a Utopian levelled and non-territorial blockchain governance. To evaluate the likelihood that Autonomous Distributed Networks (ADN) will succeed in finding such freedom, three areas relating to regulatory compliance will be considered: Legal personhood; Jurisdiction; and Ex-ante enforcement. Regulation needs to determine physicality and intentionality to exert its influence, and we assess that ADNs will not able to argue convincingly enough to regulators that their decentralised governance cannot be traced back to individuals with intentionality and physicality. Only the emergence of spontaneous networks (self-actualising systems akin to networks of intelligent smart contracts), may fulfill the libertarian dream and break free from the regulatory influence of governments.