Don’t overdo it with blockchain – understanding the impact of blockchain on users’ security perception

Abstract

Purpose Blockchain technology has been labeled as the most disruptive technological innovation of the current decade due to its impact on almost every major industry. Based on privacy calculus theory and prior adoption literature on emerging technologies, this research investigates the impact of blockchain technology in the consumer technology segment. It elaborated on the mechanism through which blockchain technology influences users’ willingness to share information with technology products enabled by blockchain. Design/methodology/approach Taking a heterogeneous pool of users, this study conducted multiple experiments with the application of blockchain (vs. regular database) technology to high (vs. low) sensitive data to study the impact of blockchain perception on users’ information-sharing tendencies. Findings Through a mediated moderation analysis, the result shows that the use of blockchain technology enhances the sense of security among users. However, the impact of this heightened sense of security only develops a higher willingness to share information when the data is highly sensitive. Practical implications The research reflects on the perception of blockchain technology and the leading impact on willingness to share information with firms. This could be a critical criterion for determining investment in blockchain technologies for consumer products, particularly based on the sensitivity of the data the consumer is sharing. Originality/value This research focuses on the perception of blockchain technology among consumers and its impact on consumers’ decision-making related to their data sharing. People have a higher sense of safety when it comes to blockchain-enabled products. However, we find that it would not be the same for all contexts, and the sensitivity of the data collected would have an impact on this relationship and consumers’ data-sharing decisions.