Standardization and interoperability issues

Nir Kshetri

Chapter 7 in The Rise of Blockchains, 2026, pp 118-139 from Edward Elgar Publishing

Abstract: Blockchain holds transformative potential, yet its path to widespread adoption is blocked by a fragmented landscape of incompatible platforms and a critical lack of interoperability. This chapter argues that standardization is the essential key to unlocking blockchain's full economic and social value. It moves beyond purely market-based explanations, analyzing how self-reinforcing lock-in effects and, crucially, governmental power shape the standards race. Through a comparative lens, the chapter contrasts the United States’ more decentralized and fragmented approach with the European Union's proactive, top-down regulatory strategy—exemplified by the MiCA framework. Examining areas from digital identity to trade finance, the analysis reveals how divergent regulatory philosophies directly impact the development of critical standards for governance, security, and interoperability, ultimately determining which regions will define the future of blockchain ecosystems.

Keywords: Interoperability; Standardization; MiCA Regulation; Path-Dependence; Cross-Chain Protocols; Regulatory Frameworks (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035394333
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