Blockchain technology and business opportunities

Blockchain and Token Economy

Blockchain technology will disrupt, transform and innovate the current way we conduct business. Blockchain stores information decentrally in blocks that are logged to each other in a chronological order generating a chain of blocks. Smart contracts will drive process automatisation and absolute digitalisation will take over. Blockchain technology constitutes the bridge for a new Economy of Things (EoT) based on digital tokens. New business models will emerge and create “Businesses as a Service” (BaaS) standard. Decentralised applications (DApps) will be the means to its end. Time to get ready for exploitation blockchain opportunities.

Blockchain easily explained

According to Marco Iansiti and Karim R. Lakhani (2017), “Blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.” Blockchain stores information decentrally in blocks that are logged to each other in a chronological order metaphorically generating a chain of blocks, hence, blockchain. Each blockchain data owner involved ensures that the data is correct. “With blockchain, we can imagine a world in which contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision.

In this world every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared. Intermediaries like lawyers, brokers, and bankers might no longer be necessary. Individuals, organisations, machines, and algorithms would freely transact and interact with one another with little friction” (Iansiti and Lakhani, 2017). Moreover, a transaction register provides transparency and clarity of the process. The legitimation against the blockchain is done with a private key or in other words a cryptographic key, the so-called token. It is known only to the authorised party and, in my opinion, this represents one of the greatest risks. If the digital key, i.e. token is lost, indeed everything is lost forever (possessions, assets, ownership rights, etc.). This can, however, be prevented by additional measures and through newly emerging service providers. Blockchain with its distributed ledger technology (DLT) enables one to work in a decentralised and democratised way. This development has the potential to make new business models emerge and to disrupt the current status quo of conducting business (Frommelt, 2019a).

Business Transformation

Blockchain technology with its DApps will not only democratise how business is conducted, but also revolutionise governments, markets and its industries. In this vein, a paradigm shift will take place by creating trust and flexibility in the Blockchain universe. We will enjoy many new and exiting business experiences in the future to come.

As Dr. Stephan Karpischek, co-founder of Ethersic said: "Once you have understood what Blockchain is, you can no longer sleep at night". My metaphor is: Each Blockchain that is created can be seen like an individual small bridge and your token is the key to cross that bridge you own, until you pass the key on or sell it to someone else, i.e. transfer value.

Blockchain Law

A legal framework with regards to the Blockchain is the prerequisite to conduct business with legal certainty in the settlement of transactions. The Principality of Liechtenstein, a Member of the European Economic Area (EEA), passed an encompassing Blockchain Act that came into effect in January 2020. The core is the Token Container Model and its Trustworthy Technology (TT) approach. It has the potential to become the legal golden standard to conduct business in the Blockchain within the European Union (EU).

Blockchain Strategies

The Oxford Blockchain Strategy Framework is a comprehensive tool for strategy development consisting of four decisive steps:

1) Key criteria to determine whether Blockchain could solve your business case, then to define and create the following key components:

2) Protocol Layer

3) Network Layer

4) Application Layer

Selected Blockchain Business cases

Cardossier / The Motor Chain / TraceX Technologies /

Crowd Machine go / Polkadot / Aeternity /

State of DApps / AdNovum

Blockchain Expertise

The Internet of Blockchains / Blockchain Meet-up Liechtenstein