Blockchain Technology is considered as a general-purpose technology with far reaching effects. As can be seen from the discussions on blockchain applications, both practitioners and researchers struggle to get to the core of blockchain technology consequences. Especially practitioners in the governmental sector explore adequate responses to this new technology. Therefore, our aim is to provide a conceptualization of the consequences of blockchain systems from an institutional perspective, and to use this conceptualization to provide insights into the governance of blockchain systems. We use a Grounded Theory approach to conceptualize the institutional consequences of blockchain technology. This approach leads to our core category: power transfer in environments with highly institutionalized values. This core category supports the synthetization of the governance issues related to blockchain systems. We conclude that the controlling powers that were formerly vested in highly institutionalized organizations (such as governments and regulators) and institutions (such as legal frameworks and agreements), are no longer automatically part of the governing ecosystem in blockchain systems but are engrained into the technical system itself. Thus, Blockchain technology enables the technological institutionalization of values in environments that are highly dependent on these values. We believe that this is at the core of why existing institutions are being pressured by blockchain technology, and as such increase the difficulty for governments to effectively govern blockchain systems. Using this notion, public and private parties within the blockchain ecosystems can develop regulatory arrangements and strategies that strike a balance between fostering the innovative power and possibilities that blockchain applications offer and to mitigate possible negative effects of blockchain technology.

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Agent-based modeling is used for simulating the actions and interactions of autonomous entities aiming to assessing their effects on the system as a whole. At an abstract level, an agent-based model (ABM) is a representation of the many simple agents and interactions among them. The decision making of the agents is based on the rules given to them. In an ABM, the model output is the result of internal decision-making and may differ with alteration in the decision path. On the contrary, with the set of rules embedded in agents, their behavior is modeled to take a ‘certain action’ in a ‘certain situation’. It suggests that the internal decision making behavior of agents is truly responsible for the model output and thus it cannot be ignored while validating ABMs. This research article focuses on the validating agents’ behavior by evaluating decision-making processes of agents. For this purpose, we propose a validation framework based on a participatory simulation game. Using this framework we engage a human player (i.e. a domain stakeholder) to allow us to collect information about choices and validate the behavior of an individual agent. A proof-of-concept game is developed for a city logistics ABM to test the framework.@en