The Complexity of Blockchain Risks Simplified and Displayed: Introduction of the Johns Hopkins Blockchain Risk Map

Abstract

Blockchains have ushered in the next stage in the evolution of the Internet, transitioning us from Web 2.0 to 3.0. However, given the complex nature of this innovative technology and the inability to clearly measure and properly communicate the risks in blockchains, arguably this murkiness has hampered the development, growth, proper regulation, and, ultimately, the true societal beneficial contributions of blockchains. In an attempt to clear the confusion, the authors propose the Johns Hopkins Blockchain Risk Map. The authors present their risk map prototype, their current multidimensional exhibit of risks across the various stakeholders, and their current modest progress with some data on their current risk measures. The authors are attempting to create a safe space whereby blockchain risks are defined, displayed, debated, researched, fine-tuned, standardized, and freely shared. The authors believe that such a platform would be an ideal mechanism for education, networking, and collaboration for the next generation, specifically those who are underrepresented in the current blockchain development community. By increasing the transparency and debating risk issues in a safe academic environment, the authors hope that this risk map will help move blockchain adoption forward and spur more entrepreneurial activity across this industry. In this article, the authors lay down their initial thoughts and current progress and challenges. Although this article is in no way exhaustive, the authors provide several categorizations of blockchain risks: operational, decentralization, security, social sentiment, investment, and systemic, to name a few.