The Web3 Book

Nexus of contracts

An economic view of the firm, associated with theorists such as Michael Jensen and William Meckling, that sees a company not as a single thing but as a bundle of contracts linking workers, owners, suppliers, and customers. Web3 thinkers invoke it to argue that if those contracts can be written and enforced in code, much of the traditional company may be replaced by protocols (see Transaction costs, Trustless firm).

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