The impact of blockchain on business models : a study on how the attributes of blockchain affect the elements of business model

Abstract

Technological antecedents can radically change the way firms organize value creation and engage in value exchange. Blockchain, considered to be an extension of internet is said to have the potential to disrupt many industries. Blockchain is an open, decentralised ledger for recording and moving information, value, assets between peers without the assistance of intermediaries. The transactions are done with in minutes and have minimal transaction fees. Given blockchain’s potential to disrupt many industries, it is important to investigate its implications on business models, which represent how firms create, deliver and capture value. Keeping this in view, the aim of this research is to study how the attributes of blockchain affect the elements of a business model. In order to see the impact of these attributes on individual elements of a business model, a framework was developed based on the works of Teece (2010), Zott and Amir (2010), Ostwalder & Pignuer (2010) and Weill & Woerner (2013). Using Delphi Technique methodology, the impact of the attributes of blockchain on the elements of business model was assessed. From the results of the study, it was inferred that blockchain has the potential to facilitate significant innovation in business model. However, it should be kept in mind that the results would be most applicable to firms who rely on intermediaries for recording and exchanging information, value, assets. The more the reliance on such intermediaries, the greater the expected benefits of using blockchain to innovate business model. Whereas, intermediaries who provide services with regards to recording and exchanging information, value or assets face great risk from blockchain, and thus should look to either incorporate blockchain in their business models or find other means to counter the threat.