Designing Governance Mechanisms in Platform Ecosystems: Addressing the Paradox of Openness through Blockchain Technology

The paradox of openness is inherent to all platform ecosystems—the tension in enabling maximum openness to create joint innovation while guaranteeing value capturing for all actors. Governance mechanisms to solve this paradox are embedded into the technical architecture of the platform, addressing the dimensions of access, control, and incentives. Blockchain technology offers unique ways to design novel governance mechanisms through the standardization of interactions. However, the design of such an architecture requires careful consideration of the cost associated with it.