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.
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).
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
Blockchain Governance and Distributed Culture
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