Blockchain: Transforming Industries and Sparking Innovative Discussions - Essay Sample

Introduction

Technology has changed the world globally and has affected various sectors of the economy. Blockchain technology, in particular, has spurred numerous debates among multiple researchers over the years. The discussions have been sparked by the disruptive influence caused by blockchain technology on business models. Blockchain is one of the most innovative technologies that is transforming industries. Industry sectors such as finance, supply chain management, E-commerce, gaming, music, logistics, and the health sectors have now employed blockchain technology. The research will focus on the impact of this invention. For instance, what is the effect of blockchain technology on business models? How has blockchain technology changed the payment sectors? What are some of the common benefits and limitations that have been brought by the invention? What are some of the platforms that have been generated by the blockchain technology? The research will illustrate how blockchain technology has changed different business models. It will also focus on how blockchain technology has affected payments in each sector. The research will identify some common platforms developed by blockchain technology. It will also explain the merits and demerits of the blockchain invention. Secondary sources by various researchers who have conducted an extensive study on this invention shall be used for this research. While the world is changing due to technology, the blockchain invention, in particular, has had an immense impact on business models and their payment industries.

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Tapscott & Tapscott (2016, n.p) explain that blockchain involves a vast distributed database that runs on devices on which anything of value such as art, music, deeds, votes, and discoveries can be transferred and stored safely. Trust is established through clever code and mass collaboration rather than intermediaries, such as technology firms and banks. Blockchain, therefore, ensures trust among strangers and makes it difficult to compromise integrity. It can transform and expand businesses and governments in more profound ways. Blockchain is the technology behind inventions associated with cryptocurrency, in particular bitcoin, which is likely to change business in the coming years. Bitcoin provides a more digital payment solution that is cost-effective. Cryptocurrencies reveal that the blockchain has brought other forms of payment.

Literature Review

A research article by Holotiuk, Pisani & Moormann (2017, 912) reveals the impact of the blockchain invention on payments and how it has affected the banking sector. The article provides insights into the effects of blockchain on business models and demonstrates the future of business models in terms of payment. It illustrates how blockchain technology has made the existing services obsolete and has generated new means of delivering services.

An article by Deng (2020, 287) demonstrates the application of blockchain technology on cross border payments. It reveals how blockchain technology can be sued to solve the existing cross border problems. It also analyzes the merits and demerits of cross border payments on blockchain technology.

An article by DHL (2018, 3) demonstrates the impact of blockchain technology in the logistics industry. It identifies the scope and scale of blockchain technology in the logistics industry. It also illustrates the key challenges that are facing the blockchain technology. It also explains how to improve transparency and traceability in the supply chain using blockchain technology.

An article by Doilnksi (2018, 2) reveals how the blockchain technology has paved the way for new business models. It illustrates the modern infrastructures that have been developed through blockchain technology. It defines the scope of complexity associated with the blockchain invention.

Morkunas, Paschen & Boon (2019 2) demonstrate the impact of blockchain on business models. They illustrate how blockchain technology will change how organizations create and deliver value. The article also outlines the different types of blockchain technologies and how each type affects a business model.

E-Commerce

The E-commerce industry through blockchain technology can be able to solve most issues that it initially encountered. Firms such as eBay and Amazon were often faced with issues such as data security, payments, and supply chain management. However, with the integration of blockchain technology, E-commerce industries have demonstrated that there is increased efficiency, transparency, and processes have been simplified.

Finance

In finance, the blockchain enhances asset provenance, which enables the authentication of a transaction that paves the way for the asset to be transferred to another person. The technology addresses issues such as identity, compliance, and governance. It enhances real-time settlements and has reduced risks associated with delays. In trade finance, blockchain technology has reduced risks associated with human error and fraud. It has enabled asset digitization, digitized documentation, creation of financial structures, and consistent financial vehicles such that there is there is no need of negotiating for financial vehicles during each stage of a trade.

Conclusion

The Blockchain technology has enhanced transparency, data security, trust, confidence, scalability, and high performance. It has reduced transaction costs, operation costs, and infrastructure costs. It has also created efficient business models, improved relationships among stakeholders, provided access to a larger capital base and has developed numerous financial instruments. Firms that aim for long term survival should devise means of disrupting from within to dodge the blockchain dilemma. Any organization that operates as a distributor during this blockchain technology will most likely be outdated and forced out of the industry.

References

Deng, Q., 2020, March. Application Analysis on Blockchain Technology in Cross-border Payment. In 5th International Conference on Financial Innovation and Economic Development (ICFIED 2020) (pp. 287-295). Atlantis Press.

DHL, A., 2018. Blockchain in logistics; perspectives on the upcoming impact of blockchain technology and use cases for the logistics industry.

Dolinski, G., 2018. Blockchain technology and its effects on business models of global payment providers (Bachelor's thesis, University of Twente).

Holotiuk, F., Pisani, F., and Moormann, J., 2017. The impact of blockchain technology on business models in the payments industry.

Morkunas, V.J., Paschen, J., and Boon, E., 2019. How blockchain technologies impact your business model. Business Horizons.

Tapscott, D., and Tapscott, A., 2016. The impact of the blockchain goes beyond financial services. Harvard Business Review.