From a modern institutional economics viewpoint, blockchain is an institutional technology that minimizes transaction costs and greatly reduces intermediation. Through an analysis of blockchain, I demonstrate the possibilities of extended institutional approach – a new generation of complexity-focused methodologies and theories of institutional analysis that complement and expand the standard institutional paradigm. By using the theory of transaction value, I argue blockchain technologies not only will lead to a significant reduction in transaction costs but will also reorient intermediaries toward improving the quality of transactions and expanding the offer of additional transaction services. The theory of institutional assemblages indicates it is impossible to form a homogeneous system of blockchain-based institutions associated exclusively with the principles of decentralization, transparency, and openness. Blockchain-based institutions will be of a hybrid and conflicting nature, combining elements of opposing institutional logics – regulatory and algorithmic law, Ricardian and smart contracts, private and public systems, and uncontrollability and arbitration.

Integrating the typologies of trust dimensions and trust ideal-types with the new typologies of trust forms and trust bases, I propose a geocentric framework of trust in general and of organizational trust in particular. The typology of trust forms is built on the dimension of spatial strength to address the content of trust building from weak trust to strong trust and on the dimension of temporal stage to address the process of trust building from initial trust to mature trust. The typology of trust bases is built on the dimension of trust sources to address the bases of trust building from depersonalized sources to personalized sources and on the dimension of trust domains to address the bases of trust building from dyad domains to network domains. Together with its three pillars (trust-building mechanisms, leadership and trust-as-choice), the central theme of trust building connects all four trust typologies toward a geocentric framework that integrates and transcends the cultural values of the East and the West. This framework bears a special implication for theorizing about transaction cost and transaction value as a duality for interorganizational alliance.