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 \nengage in value exchange. Blockchain, considered to be an extension of internet is said to \nhave the potential to disrupt many industries. Blockchain is an open, decentralised ledger for \nrecording and moving information, value, assets between peers without the assistance of \nintermediaries. The transactions are done with in minutes and have minimal transaction fees. \nGiven blockchain’s potential to disrupt many industries, it is important to investigate its \nimplications on business models, which represent how firms create, deliver and capture \nvalue. Keeping this in view, the aim of this research is to study how the attributes of \nblockchain affect the elements of a business model. In order to see the impact of these \nattributes on individual elements of a business model, a framework was developed based on \nthe works of Teece (2010), Zott and Amir (2010), Ostwalder & Pignuer (2010) and Weill & \nWoerner (2013). \nUsing Delphi Technique methodology, the impact of the attributes of blockchain on the \nelements of business model was assessed. From the results of the study, it was inferred that \nblockchain has the potential to facilitate significant innovation in business model. However, \nit should be kept in mind that the results would be most applicable to firms who rely on \nintermediaries for recording and exchanging information, value, assets. The more the \nreliance on such intermediaries, the greater the expected benefits of using blockchain to \ninnovate business model. Whereas, intermediaries who provide services with regards to \nrecording and exchanging information, value or assets face great risk from blockchain, and \nthus should look to either incorporate blockchain in their business models or find other \nmeans to counter the threat.