EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION
Effect of Cryptocurrency on Business Model Innovation Student Details University Details Course Details Date
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION
Table of Contents Abstract ………………………………………………………………………………………… C!a"ter #$ Intro%&ct'on ………………………………………………………………………(() C!a"ter *$ L'terat&re Re+'e, …………………………………………………………………(*(#$ Inno+at'on …………………………………………………………………………((*(*$ B&s'ness .o%el 'nno+at'on ………………………………………………………(/ *( cr0"toc&rrenc0 …………………………………………………………………(((#*() BMI 1 cr0"toc&rrenc0 …………………………………………………………(((#/ C!a"ter $ Met!o%olo20 ……………………………………………………………………(*# (# Researc! %es'2n …………………………………………………………………*# (* Researc! "&r"ose………………………………………………………………((** ( Researc! sa."le…………………………………………………………………*) () Researc! .et!o% ………………………………………………………………((* (3 Researc! L'.'tat'ons an% sol&t'ons……………………………………………(*3 (4 Sco"e for f&rt!er researc!………………………………………………………(*4 C!a"ter )$ F'n%'n2s an% D'sc&ss'ons………………………………………………………(*4 Concl&s'on an% Reco..en%at'on…………………………………………………………((4 References ……………………………………………………………………………………(5
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION List of Figures
F'2&re #$ Inno+at'on T0"es ………………………………………(…………………………F'2&re *$ BMI Can+as………………………………………………((………………………#6 F'2&re $ BMI T0"es…………………………………(((……………………………………((#* F'2&re )$ Anal0t'cal Fra.e,or7………(……………………………………………………(# F'2&re 3$ 8o, Cr0"toc&rrenc'es ,or7………………………………………………………#4 F'2&re 4$ Select'on of l'terat&re………………………………………………………………*)
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION
Abstract T!'s "a"er anal09es t!e effects of cr0"toc&rrenc0 l'7e b'tco'ns on t!e b&s'ness .o%el 'nno+at'on( For t!'s "&r"ose: t!'s "a"er f'rst 'ntro%&ces an% e;"la'ns t!e f&n%a.ental conce"ts alon2 ,'t! co."re!ens'+e e;a."les to 2et t!e rea%er on "a2e for t!e secon% ele.ent of %'sc&ss'on ,!'c! 's t!e 'nfl&ence of .o%ern %a0 %'sr&"t'+e 'nno+at'on tec!nolo20 'n transact'ons an% f'nanc'al s0ste.s as %one an% "lanne% b0 cr0"toc&rrenc0 co."an'es( T!'s "a"er &ses sc!olarl0 l'terat&re as t!e fo&n%at'on for %'sc&ss'n2 an% e;"la'n'n2 t!e f&n%a.ental
al?Mart an% Dell( Cr0"toc&rrenc0 roots o&t con+ent'onal ban7'n2 s0ste.s an% "ro+'%es a %ecentral'9e% transact'ons s0ste. alon2 ,'t! "ro+'%'n2 anon0.'t0 to bot! t!e "art'es .a7'n2 t!e transact'ons t!&s 2'+'n2 t!e "o,er to t!e &ser an% no t!'r% "art0 can access or +'e, t!e %eta'ls of t!ese %eals an% a2ree.ents M'n'n2: >allet ser+'ces: Cr0"toc&rrenc0 stora2e an% lo2 7ee"'n2: an% f'nall0 t!e s.art contracts(
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION
Chapter ! Introduction Inno+at'on 's a ter. t!at !as e+ol+e% alon2s'%e t!e e+ol&t'on of !&.an be'n2s an% b&s'ness( In t!e recent "ast: 'nno+at'on ,as ta7en as t!e 'n+est.ent 'n R1D an% .ost &" to %ate researc! laborator'es: !a+'n2 t!e .ost &"%ate% tec!nolo2'es: an% !'r'n2 t!e .ost 'ntell'2ent an% br'll'ant "eo"le a co."an0 co&l% f'n%( T!e co."an0 ,o&l% &se t!ese feat&res 'n or%er to "ro%&ce no+el "ro%&cts an% earn t!e .a;'.&. o&t"&t fro. t!ose "ro%&cts( T!e ot!er co."an'es ,o&l% not e+en tr0 to %o t!ese a%+ent&res s'nce t!e0 too7 so .&c! of e;"en%'t&re: less rel'ab'l't0 'f t!e "ro%&ct %'%n@t ac&'re 'nterest fro. t!e "eo"le an% t!&s r's7s of !&2e losses( In c&rrent era: t!e cost of creat'on of a co."letel0 ne, R1D base% "ro%&ct an% 'ts s!'""'n2 cost too .&c! t!ese %a0s( Anot!er factor t!at "la0s 'ts "art 'n t!'s ,orse s't&at'on 's t!e s!orten'n2 of "ro%&ct l'+es( T!e "ro%&cts t!at !a+e s!orter l'+es t&rn o&t to beco.e co..o%'t'es an% co..o%'t'es are often re"lace% "rett0 &'c7l0( T!&s t!e co."an'es %o not !a+e eno&2! t'.e to earn 2oo% re+en&es before t!e "ro%&cts beco.e co..o%'t'es( T!'s 7'n% of s't&at'on ,!'c! 's t!e s't&at'on of t!e c&rrent .ar7et: 2'+e r'se to t!e '%ea of !a+'n2 a b&s'ness .o%el rat!er t!an !a+'n2 a b&s'ness '%ea or n'cer "ro%&ct( B&s'ness .o%els .atter( An '."ro+e% b&s'ness .o%el fre&entl0 ,'ll beat a better '%ea or tec!nolo20 al?Mart 'n reta'l'n2 ser+'ces: Dell 'n PCs: an% So&t!,est a'rl'nes are best e;a."les 'n t!e'r f'el%s of !a+'n2 a 2oo% b&s'ness .o%els( B&s'ness .o%el !as beco.e t!e 7e0 necess't0 for c&rrent era b&s'ness co."an'es an% b0 &n%erstan%'n2 t!e conce"ts assoc'ate% ,'t! b&s'ness .o%els an% t!e'r 'nno+at'on: ,e co.e to 7no, t!at e+er0 b&s'ness co."an0 !as a b&s'ness .o%el ,!et!er 't %e"'cts an0 or not( B&s'ness .o%els are s&""ose% to "erfor. t,o .a'n f&nct'ons f'rstl0 +al&e creat'on an% secon%l0 +al&e ca"t&r'n2( T!e act'+'t'es &n%er.'ne% an% "erfor.e% %&r'n2 t!e "roce%&re of "roc&r'n2 t!e ra, .ater'als &" t'll acco."l's!'n2 t!e sat'sfact'on of cons&.ers "ro%&ce a ne,er "ro%&ct or ser+'ce an% "ro%&ce a net +al&e %&r'n2 all t!ese act'+'t'es an% t!'s +al&e 's t!e reason ot!er co."an'es are 'n+ol+e% 'n b&s'ness ,'t! t!e co."an0 con%&ct'n2 t!'s "roce%&re( T!'s 's t!e creat'on of +al&e an% occ&rs %&r'n2 4
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION t!ese act'+'t'es fro. "roc&r'n2 t'll sat'sfact'on of cons&.ers( T!e b&s'ness .o%el ca"t&res so.e of t!e +al&e fro. t!ose act'+'t'es for t!e b&s'ness co."an0 t!at !ol%s t!e a&t!or't0 of con%&ct'n2 an% o"erat'n2 t!ose act'+'t'es( Bot! t!ese f&nct'ons are +er0 '."ortant for t!e co."an0 as one 7ee"s t!e ot!er co."an'es t'e% to t!e !ost co."an0 an% t!e secon% 7ee"s "ro+'%'n2 re+en&es an% "rof'ts to t!e co."an0( If t!e co."an0 %oes not 2et an0 +al&e fro. t!e act'+'t'es "erfor.e% t!en t!e co."an0 cannot s&sta'n t!ose act'+'t'es for +er0 lon2 as t!e0 act to %'s.antle t!e f'nanc'al base of co."an0 an% 2'+e no o&tco.e( B&s'ness .o%els are beco.'n2 a tren% t!ese %a0s b&t b&s'ness .o%el 'nno+at'ons are st'll not "ro"erl0 &n%erstoo% b0 .aor't0 of t!e b&s'ness co."an'es al?Mart: So&t!,est a'rl'nes an% Dell %'% not ,or7 to 'nno+ate t!e'r "ro%&cts as stron2l0 as t!e0 a%o"te% non?'..'tatable an% 'nno+at'+e b&s'ness .o%els( T!&s b&s'ness .o%el 'nno+at'on 's "rett0 .&c! %'fferent fro. t!e "ro%&ct 'nno+at'on an% "rocess 'nno+at'on <ott 1 A.'t: *66*=( Pro%&cts: "rocesses an% ser+'ces %es"'te of be'n2 &n'&e an% 'nno+at'+e can al,a0s be co"'e% an% '.'tate% b&t t!e b&s'ness .o%el 'nno+at'ons are co."re!ens'+e: s0ste.at'c an% are base% on lar2er scale .ostl0 'n t!e s"an of ,!ole or2an'9at'ons: ,!'c! .a7e 't +er0 .&c! %'ff'c< for t!e co."et'tors to '.'tate b&s'ness .o%els an% b&s'ness .o%el 'nno+at'ons <'. 1 Ma&bor2ne: #///=( B&s'ness .o%els are %'ff'c< to '.'tate beca&se t!e0 'ncl&%e t!e factors l'7e or2an'9at'onal c<&re: e."lo0ee s7'll set: co."an0@s core co."etenc'es: co."an0@s strate2'es( Moreo+er b&s'ness .o%el '.'tat'on an% '."le.entat'on ta7es !&2e a.o&nt of t'.e ,!'c! .'2!t not be feas'ble for a co."an0 as t!ere 's al,a0s a c!ance of s"o'l'n2 t!e "roce%&res as all '.'tat'ons %o not "ro+e to ,or7 as stron2l0 as t!e0 %o for t!e co."an'es t!at create t!e.(
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION co."letel0 %ecentral' 9e% an% t!ere e;'sts no central a&t!or't 0 .on'tor'n2 or controll'n2 t!e transact'ons an% "roce%&res b&t a %eta'l of eac! an% e+er0 transact'on or .o+e.ent of b'tco'ns fro. one "erson to anot!er 's a+a'lable for "&bl'c to +'e, 7ee"'n2 bot! t!e "art'es anon0.o&s( T!'s t0"e of s0ste. ens&res t!at t!ere 's no %o&ble s"en%'n2 of a s'n2le co'n ,!'c! 's lac7e% b0 t!e c&rrenc0 ban7'n2 s0ste.s as t!e0 are not as .&c! o"en as cr0"toc&rrenc0 s0ste.( In t!e recent co&"le of %eca%es: t!ere !a+e been .<'"le atte."ts of creat'n2 %'2'tal c&rrenc0 b&t all of t!e. fa'le% 'n creat'n2 a non?tr&st base% s0ste. t!at 's %ecentral'9e%( T!e b'22est "roble. ,'t! %ecentral'9e% %'2'tal cas! s0ste. 's t!e %o&ble s"en%'n2 of c&rrenc0 b0 a s'n2le &ser( T!'s 'ss&e 's eas'er to sol+e 'n a central'9e% s0ste. ,!ere t!e central a&t!or't0 7ee"s trac7 of all t!e transact'ons an% .a'nta'ns a %atabase t!at "ro!'b'ts s"en%'n2 of t!e sa.e c&rrenc0 t,'ce b0 a s'n2le &ser( Satos!' .a%e 't "oss'ble b0 f'n%'n2 t!e .'ss'n2 "'eces of co%es t!at all ot!er atte."te% s0ste.s lac7e%( 8e .a%e t!e absol&te consens&s of all t!e "eers of a net,or7 on eac! an% e+er0 transact'on "oss'ble ,!'c! 's cons'%ere% to be t!e .aor 'n+ent'on as "eo"le bel'e+e% t!at s&c! a creat'on 's '."oss'ble(
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION
Chapter "! Literature #evie$ "% Innovation
T!e l'terat&re "ro+'%es e;tens'+e %eta'ls an% relat'ons!'"s as"ects of t0"es of 'nno+at'ons on +ar'o&s "arts an% "roce%&res of a b&s'ness co."an0( 8o,e+er so.e t0"es t!at !a+e been e;tens'+el0 %'sc&sse% are "ro%&ct: "rocess: 'ncre.ental an% ra%'cal 'nno+at'ons
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION F'2&re #$ Inno+at'on T0"es <8'nc! et al(: *6#6= Pro%&ct 'nno+at'on 'n+ol+es t!e e;tens'+e .o%'f'cat'on an% '."ro+e.ent of a "ro%&ct cons'%er'n2 t!e c!aracter'st'cs an% &sa2e "ro"ert'es( T!e .o%'f'cat 'ons .'2!t be %one 'n tec!n'cal s"ec'f'cat'ons: co."r's'n2 "arts: .ater'al of .a7'n2: soft,are: &ser fr'en%l'ness an% ot!er "ro"ert'es( T!e 7e0 "o'nt t!&s re.a'ns t!e 'ntense .o%'f'cat'on an% '."ro+e.ent of a "ro%&ct for t!e &sers to be .ore 'ntereste% an% all&re% to,ar%s t!e "ro%&ct( For e;a."le t!e f'rst ." "la0er or f'rst .'cro"rocessors or %'2'tal ca.eras co.b'ne% +ar'o&s tec!nolo2'es 'n or%er to "ro%&ce a +er0 .&c! en!ance% an% .o%'f'e% "ro%&ct
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION "%" Business Model Innovation
B&s'ness .o%els are an% !a+e al,a0s been t!ere ,'t! or ,'t!o&t t!e co."an0 7no,'n2 't( So.e co."an'es %ef'ne an% act &"on t!e'r %ef'ne% b&s'ness .o%els an% 7ee" on 'nno+at'n2 't ste" b0 ste" an% ,'t! t!e "assa2e of t'.e ,!'le so.e of t!e. %on@t e+en 7no, t!at t!e0 !a+e a b&s'ness .o%el( T!e co."an'es t!at are tal7e% abo&t .ostl0 for t!e'r s&ccessf&l b&s'ness .o%el 'nno+at'ons are A""le: Dell: A.a9on an% >al?Mart
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION
F'2&re *$ B&s'ness Mo%el Can+as
T!e b&s'ness .o%el can be %'+'%e% 'nto 'ts co."onents ,!'c! are e."'r'call0 an% act&all0 relate% to eac! ot!er t!ro&2! certa'n s"ec'f'c relat'ons!'"s an% collect'+el0 %eter.'ne t!e s&ccess an% +al'%'t0 of a b&s'ness .o%el an% strate20( A b&s'ness .o%el can+as "ro+'%e% b0 Mr( Oster,al%er na.e% as Gb&s'ness .o%el can+as@ %e.onstrates t!at t!ere are so.e s"ec'f'c 7e0 co."onents of a b&s'ness .o%el t!at 'nte2rate to for. a co."lete b&s'ness .o%el
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION C&sto.er Se2.ents$ t!'s co."onent '%ent'f'es t!e tar2et .ar7et or tar2et "o"&lat'on or t!e se2.ent of "&bl'c "o"&lat'on t!at t!e co."an0 'nten%s to sell 'ts "ro%&ct or ser+'ce to( C&sto.er Relat'ons!'"s$ t!'s co."onent as ob+'o&s fro. t!e na.e %e.onstrates t!e strate20 of t!e co."an0 'n .a'nta'n t!e relat'ons!'"s ,'t! t!e cons&.ers( T!ese relat'ons!'"s can be 2oo%: lo0al or %'sre2ar%'n2 base% on t!e le+el of ser+'ce t!e co."an0 "ro+'%es to 'ts cons&. ers an% t!e le+el of sat'sfact'on t!ose c&sto.ers "ossess re2ar%'n2 t!e "ro%&ct or ser+'ce of t!at co."an0( C&sto.er C!annels$ t!'s co."onent %e"'cts t!e %'str'b&t'on c!annels as ,ell as t!e .et!o%s of ac&'r'n2 an% reta'n'n2 c&sto.ers( T!'s co."onent also %e"'cts t!e stren2t! of a co."an0 'n ter.s of cons&.er base an% t!e a.o&nt of cons&.ers t!e "ro%&ct an% ser+'ce reac!es &" to( Re+en&e strea.s$ t!'s 's t!e .a'n an% 'nte2rat'n2 co."onent of a b&s'ness .o%el as 't br'n2s all t!e ot!er co."onents to2et!er an% %e.onstrates !o, a co."an0 .ana2es to "&ll all of t!e ot!er co."onents to2et!er 'n or%er to acco."l's! re+en&es an% cont'n&o&s flo, of cas!( T!e co."onents on t!e left s'%e of t!e can+as
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION e0 Act'+'t'es$ T!'s co."onent %escr'bes t!e co."an0@s act'+'t'es an% "ract'ces t!at .a7e 't stan% 'n t!e .ar7et an% %el'+er s&ccessf&ll0 'ts "ro%&cts an% ser+'ces to 'ts cons&.er base( Cost Str&ct&re$ T!'s 's t!e .a'n co."onent of t!e left s'%e of t!e can+as( It %escr'bes t!e costs an% e;"en%'t&res assoc'ate% ,'t! all t!e ele.ents: act'+'t'es an% ot!er co."onents of t!e b&s'ness co."an0( It also acts to .'n'.'9e t!e e;"en%'t&res an% .a;'.'9e t!e "rof'ts for a b&s'ness co."an0(
F'2&re $ BMI T0"es
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION .o%el 'nno+at'on 'n+ol+es t!e transfor.at'on of t!e ,!ole of an 'n%&str0 'nto a .o%'f'e% an% %'fferent 'n%&str0 so.e!o, act'n2 as a %'sr&"t'+e t0"e of 'nno+at'on( A""le c!an2e% t!e 'n%&str0 of .&s'c an% co.b'ne% t!e !ar%,are an% soft,are tec!nolo2'es b0 'ntro%&c'n2 t!e 'T&nes an% 'Po%s "ro%&ct an% ser+'ce co.b'nat'on
F'2&re )$ Anal0t'cal Fra.e,or7 <a9an et al(: *6#3= B&s'ness Mo%el fra.e,or7 &n%er t!e l'2!t of s'; t0"es of b&s'ness .o%els t!at &s&all0 co."an'es a%o"t as "resente% b0
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION 2oo% 2&ess of ,!ere 0o&r co."an0 stan%s re2ar%'n2 t!e b&s'ness .o%els an% ,!et!er 0o& nee% a b&s'ness .o%el 'nno+at'on or not( One can eas'l0 '%ent'f0 t!e stan%ar% of b&s'ness .o%el b0 2o'n2 t!ro&2! t!e b&s'ness .o%el fra.e,or7 "ro+'%e% b0 C!esbro&2! an% co."ar'n2 t!e co."an0@s b&s'ness .o%el ,'t! 't( T!'s fra.e,or7 also "ro+'%es t!e necessar0 2&'%el'nes t!at are necessar0 for t!e or2an'9at'on 'n or%er to c!an2e an% 'nno+ate 'ts b&s'ness .o%el b0 a%+anc'n2 to a better le+el of b&s'ness .o%els( E+en t!e co."an'es t!at !a+e le+el 3 or le+el 4 b&s'ness .o%els also cannot be free fro. t!e ,orr'es b&t t!e0 also nee% to e."!as'9e on t!e'r .o%el for rel'ab'l't0 an% s&sta'nab'l't0( No 2reat b&s'ness .o%el lasts fore+er an% all t!e b&s'ness .o%els re&'re 'nno+at'on an% a%+ance.ent fro. t'.e to t'.e ot!er,'se t!e'r "ro%&cts an% ser+'ces beco.e co..o%'t'es an% co..o%'t'es are often re"lace% b0 t!e "o"&lat'on( ero;@s e;tre.el0 effect'+e rental .o%el ,as ta7en %o,n b0 t!e a"anese co."an'es arr'+'n2 'nto t!e .ar7et ,'t! .&c! s.aller an% eas0 to &se co"'ers alon2 ,'t! e;"en%able cartr'%2es t!at co&l% be bo&2!t an% sol% +'a reta'lers(
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION Moreo+er 'n t!e c&rrent sat&rate% an% co."etent b&s'ness en+'ron.ent: t!e "ro%&ct an% "rocess 'nno+at'ons !a+e r'sen an% been a%o"te% so .&c! t!at al.ost all t!e 'nno+at'ons t!at co&l% !a+e been "oss'ble: !a+e been %one
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EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION
F'2&re 3$ 8o, Cr0"toc&rrenc'es >or7 !'le t!e rest of t!e co."an'es foc&se% on t!e !ar%,are an% bea&t0 of 'nterface of s.art"!ones an% co."&ters: A""le la&nc!e% 'ts 'Po%s an% assoc'ate% s0ste. for %o,nloa%'n2 .&s'c 16
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION %'rectl0 to t!e'r %e+'ces an% t!'s ,as all le2al( T!'s ,as +al&e creat'n2 t!ro&2! ra%'cal 'nno+at'on beca&se 't left be!'n% all t!ose "re+'o&s an% tar%0 .et!o%s for %o,nloa% .&s'c fro. ,ebs't es an% .ost of t!e t'.es t!e %o,nloa% 'n2 ,as not s&""orte% or ,as 'lle2al( T!&s A""le create% s"ace for 'tself an% t!&s 2a+e r'se to a ne, .ar7et( T!&s t!e .&s'c %'str'b&t'on an% enterta'n.ent ,as %'str'b&te% fro. t!e starters to t!e en% &sers 'n a .onotono&s ,a0 t!at no ot!er co."an0 co&l% "ro+'%e( A""l e tar2ete% 'ts c&sto.ers b0 tr0'n2 to create a relat'ons!'" ,'t! t!e. b0 !a+'n2 a b&s'ness .o%el &st l'7e t!at of ra9or an% bla%e .o%el of H'llette( T!e0 create% +al&e t!ro&2! ra%'cal 'nno+at'on an% t!en ca"t&re% 't t!ro&2! t!e sales of !ar%,are an% &se of soft,are
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION an% "art'c'"ants are t!e a&t!or't0( Nobo%0 controls t!'s s0ste. b&t e+er0bo%0 t!at 's 'n 't 7no,s ,!at 's !a""en'n2( T!e onl0 controll'n2 a&t!or't0 's t!e cr0"to2ra"!0 an% t!e co%es of t!e "ro2ra. ,r'tten b0 Satos!' Na7a.oto
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION %'sclos'n2 of blac7 .ar7et na.e% as s'l7 roa% 's a 2oo% e;a."le for t!at( T!e blac7 .ar7et &se% to sell %r&2s an% a..&n't'on ,!'c! 's banne% an% t!e "roce%&res for s&c! sales ,ere be'n2 carr'e% o&t son2 cr0"toc&rrenc'es( B'tco'ns ,ere &se% 'n t!e "rocess of b&0'n2 narcot'cs: %r&2s an% a..&n't'ons ,'t!o&t an0one 7no,'n2 't( T!&s t!e "eo"le an% co."an'es can be 'n+ol+e% 'n 'lle2al transact'ons l'7e .one0 la&n%er'n2 an% cr'.'nal act'+'t'es t!at cannot be s&sta'ne% b0 t!e c'+'l'9e% states t!&s .a7'n2 cr0"toc&rrenc'es +&lnerable to t!e cr'.'nals: .'l'tants an% ro2&e or2an'9at'ons an% co..&n't'es(
20
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION So.e of t!e b&s'ness co."an'es t!at are c&rrentl0 ,or7'n2 'n cr0"toc&rrenc0 sector are CE(IO base% 'n U: B'tPesa base% 'n en0a: Bloc7c!a'n('nfo base% 'n U: nCM'ner base% 'n S,e%en: an% S'r'o&s Mone0 base% 'n Den.ar7( T!ese co."an'es 'ncl&%e so.e t!at %eal 'n e;c!an2e of c&rrenc'es fro. F'at c&rrenc'es to cr0"toc&rrenc'es an% +'ce +ersa( Ce; "ro+'%es eff'c'ent an% trans"arent .ec!an's.s for e;c!an2e of c&rrenc'es an% sett'n2 &" of acco&nts an% s0ste.s an% f'nall0 !an%l'n2 t!e. neatl0( Ce; c!ar2es a fee of 6(* for eac! b&0 an% sell transact'on( No, t!e t!'n2 to see !ere 's t!at Ce; !as create% +al&e t!ro&2! 'ts eff'c'ent .ec!an's.s an% "latfor. for e;c!an2e of c&rrenc0 e;c!an2e an% t!en ca"t&re% +al&e for eac! an% e+er0 transact'on t!at 'ts &sers .a7e or "erfor.( B'tPesa C!ar2es for 'ts ser+'ces of b'tco'n re.'ttance( Bloc7c!a'n 's an onl'ne ,allet for cr0"toc&rrenc0 &sers( It allo,s t!e &sers to store: s"en% an% transfer t!e'r b'tco'ns 'n an eff'c'ent an% sec&re .anner( T!e co."an0 2'+es t!e o,ners of t!e ,allets: f&ll control o+er t!e'r ,allets: s"en%'n2 an% transferr'n2 'n%e"en%ence: an% "ro+'%es t!e. ,'t! t!e "r'+ate 7e0s to t!ose ,allets( <a9an et al(: *6#3=
Chapter &! Methodology &% #esearch Design
T!e researc! con%&cte% !ereb0: 's "&rel0 e;"lorator0 an% base% on obser+at'ons: st&%0 an% researc! of sc!olars on t!e s&bect .atter: an% 'n+ol+es case st&%'es of %'fferent co."an'es t!at are 'n+ol+e% 'n t!e %e"art.ent an% f'el% of s&bect .atter l'7e A""le for 'ts e;tens'+el0 s&ccessf&l an% ra%'call0 'nno+at'+e b&s'ness .o%els: 8P for 'ts 'nno+at'on: >al?Mart for 'ts sec&re: eff'c'ent an% "ro%&ct'+e b&s'ness .o%els: Ce;: Bloc7c!a'n: B'tPesa an% ot!er s&c! co."an'es for t!e'r 'n+ol+e.ent 'n b&s'ness re2ar%'n2 cr0"toc&rrenc'es( T!'s researc! also "ro+'%es re+'e, of t!e sc!olarl0 researc! "a"ers ,r'tten b0 t!e sc!olars 'n t!'s f'el% an% "ro+'%e% anal0s's for t!e s&bect .atter &n%er %'sc&ss'on( T!'s researc! 'n+ol+es t!e b&s'ness .o%els: 'nternat'onal as"ects: f'nanc'al effects an% tren%s: econo.'ca l as"ects an% le2'slat'+e %'.ens'ons re2ar%'n2 cr0"toc&rrenc'es an% t!e'r '."le.entat'on 'n re2&lar b&s'nesses( T!'s researc! ta7es t!e co."re!ens'+e an% 21
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION ste" b0 ste" a""roac! to co."letel0 fa.'l'ar'9e t!e rea%ers to t!e to"'c selecte% an% %'sc&sse%( Inno+at'on 's neatl0 an% co."re!ens'+el0 e;"la'ne% alon2 ,'t! 'ts t0"es 'n b&s'ness an% t!e b&s'ness co."an'es t!at !a+e e."lo0e% s&c! 'nno+at'on t0"es( T!'s researc! also "ro+'%es t!e anal0s's of t!ose 'nno+at'on t0"es to c!oose t!e best one for 0o&r b&s'ness .o%el an% b&s'ness t0"e( B&s'ness .o%els: t0"es: le+els an% b&s'ness .o%el fra.e,or7 ,'t! "ro"er c'tat'ons an% references !a+e been e;"la'ne% t!&s b&s'ness .o%el 'nno+at'on !as been 'ntro%&ce% an% t!e "ract'cal e;a."les of t!ose '."le.entat'ons 'n A""le: >al.art an% Dell !a+e been %'sc&sse% to fa.'l'ar'9e t!e rea%ers ,'t! t!e conce"t of b&s'ness .o%el 'nno+at'on( F'nall0 t!e cr0"toc&rrenc0: ,!'c! 's t!e .a'n area for researc! !as been 'ntro%&ce% alon2 ,'t! 'ts relat'on to b&s'ness .o%el an% b&s'ness .o%el 'nno+at'on !a+e been %'sc&sse% ,'t! reference to t!e co."an'es carr0'n2 o&t b&s'nesses b0 se'9'n2 t!e o""ort&n't'es 'n t!e cr0"toc&rrenc0 sector !a+e been %e.onstrate% l'7e Ce;: Bloc7c!a'n: B'tPesa: an% S'r'o&s Mone0( T!&s t!'s researc! "ro+'%es a co."re!ens'+e an% ste" b0 ste" a""roac! for clear &n%erstan%'n2 of t!e to"'c an% anal0s's an% case st&%'es of +ar'o&s co."an'es for t!e b&s'ness .o%el 'nno+at'ons an% roo. for BMI 'n cr0"toc&rrenc0 %e"art.ent( T!e reason of con%&ct'n2 t!'s researc! 's t!at t!ere 's not eno&2! %ata an% 'nfor.at'on a+a'lable 'n t!e sc!olarl0 l'terat&re t!at e;"la'ns t!e co.b'ne% "roce%&res an% 'nfl&ences of b&s'ness .o%el 'nno+at'on on cr0"toc&rrenc'es an% +'ce +ersa( T!&s t!'s researc! 's 'nten%e% to "la0 a f&n%a.ental role 'n .a7'n2 t!e rea%ers &n%erstan% t!e connect'on an% carr0 o&t f&rt!er researc!es 'n t!e s&bect .atter( &%" #esearch (urpose
T!e .a'n "&r"ose of con%&ct'n2 t!'s researc! st&%0 's to fa.'l'ar'9e t!e rea%ers ,'t! t!e .ost '."ortant "ara%'2.s of b&s'ness 'n t!e conte."orar0 era an% t!e 'ntro%&ct'on an% fa.'l'ar'9at'on ,'t! t!e conce"t of cr0"toc&rrenc'es an% '."le.entat'on an% a""l'cat'on
22
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION of b&s'ness .o%el a""roac!es l'7e +al&e creat'on an% +al&e ca"t&r'n2 to t!e cr0"toc&rrenc0 b&s'nesses( T!e "&r"oses of t!'s researc! st&%0 are .ent'one% belo,$
Fa.'l'ar'9e t!e rea%ers ,'t! t!e conce"t of 'nno+at'on &n%er t!e l'2!t of sc!olarl0 l'terat&re alon2 ,'t! 'nno+at'on t0"es an% c&rrentl0 a""l'cable an% s&ccessf&l 'nno+at'on a""roac!es(
Fa.'l'ar'9e t!e rea%ers ,'t! t!e conce"t of b&s'ness .o%els an% b&s'ness .o%el 'nno+at'on alon2 ,'t! t!e s"ec'f'c le+els an% fra.e,or7 of b&s'ness .o%els(
Ma7e t!e rea%ers &n%erstan% t!e '."ortance an% sco"e of b&s'ness .o%els an% b&s'ness .o%el 'nno+at'on o+er t!e "ro%&ct an% "rocess t0"es of 'nno+at'ons a%o"te% b0 co."an'es(
Fa.'l'ar'9e t!e rea%ers ,'t! t!e conce"t of cr0"toc&rrenc'es an% t!e c&rrent "ara%'2. s!'ft ca&se% b0 t!e'r a%+ent 'n t!e b&s'ness ,orl%(
Constr&ct a relat'ons!'" bet,een BMs: BMI an% cr0"toc&rrenc'es(
Anal0s's of t!e co."an'es 'n+ol+e% 'n b&s'nesses t!at base on cr0"toc&rrenc0 e;c!an2e: tra%'n2: an% stora2e an% st&%0 !o, t!e0 can .a7e &se of b&s'ness .o%els an% b&s'ness .o%el 'nno+at'ons 'n or%er to %ee"en t!e'r roots 'n t!e ne,er b&s'ness o""ort&n't'es re2ar%'n2 cr0"toc&rrenc'es(
To "a+e t!e ,a0 for f&rt!er researc! 'n t!e f'el% as not .&c! of researc! !as alrea%0 been con%&cte% 'n t!'s %e"art.ent an% sc!olars !a+e not 0et foc&se% on t!e 'nfl&ence of b&s'ness .o%el 'nno+at'on on cr0"toc&rrenc0 an% +'ce +ersa(
&%& #esearch Method
T!e researc! .et!o% a%o"te% 'n t!'s researc! 's obser+at'onal: e;"lorator0: anal0t'c: an% &al'tat'+e( F'rst of all: t!e %escr'"t'+e .ater'al re2ar%'n2 t!e s&bect .atter ,as ac&'re% fro. t!e sc!olarl0 so&rces: an% t!en onl0 t!ose so&rces ,ere c'te%: referre% an% 'ncl&%e% 'n %'sc&ss'on t!at !a% 2oo% relat'ons!'" an% corres"on%ence ,'t! t!e researc! at !an%( Sec&re: &nb'ase%: an% onl'ne s&r+e0s ,ere con%&cte% &s'n2 t!e "olls
23
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION on t!e 'nternet an% soc'al .e%'a ,!ere &est'ons ,ere as7e% an% ans,ers ,ere 2at!ere%( T!ese s&r+e0s 'ncl&%e% t!e o"'n'ons of "eo"le re2ar%'n2 +ar'o&s s&bects an% to"'cs %'sc&sse% 'n t!'s "a"er l'7e 'nno+at'on t0"es: b&s'ness .o%els an% cr0"toc&rrenc0( T!e res<s of t!ese "olls are %'sc&sse% 'n t!e f'n%'n2s an% %'sc&ss'on c!a"ter of t!'s researc!( So.e of t!e "eo"le 'n%&l2e% 'n t!e b&s'nesses of cr0"toc&rrenc'es: 'nno+at'on tec!n'&es: b&s'ness .o%els: b&s'ness .o%el 'nno+at'ons an% b&s'ness .o%el e."lo0.ent to t!e cr0"toc&rrenc0 b&s'ness ,ere contacte% too( T!e 'nter+'e,s: calls: s70"e sess'ons an% 'nteract'ons ,ere base% on &est'on an% ans,er for.ats ,!ere &est'ons ,ere as7e% fro. t!e re"resentat'+es an% ans,ers ,ere note%( T!e concl&s'ons an% f'n%'n2s of t!ese 'nteract'ons !a+e been .ent'one% 'n t!e f'n%'n2s an% anal0ses sect'on of t!'s researc!(
F'2&re 4$ Select'on of L'terat&re Proce%&re &%' #esearch Sa)ple
T!e researc! sa."le for con%&ct'n2 t!'s researc! st&%0 ,as .a'nl0 co..on "eo"le 'n or%er to 2at!er t!e'r +'e,s re2ar%'n2 t!e .atters: e;"erts t!at re"resente% t!e %'fferent b&s'ness co."an'es an% relate% to t!e s"ec'f'c ob t0"es l'7e 'nno+at'on "ersonnel: b&s'ness .o%el e;"erts an% cr0"toc&rrenc0 b&s'ness "ersonals( Sc!olars ,ere also
24
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION contacte% an% 'ncl&%e% 'n t!e sa."les so t!at t!e researc! st&%0 co&l% al,a0s be bac7e% &" b0 t!e sc!olarl0 +'e,s an% o"'n'ons(
T!e researc! sa."le for t!e "olls an% onl'ne %'sc&ss'ons ,ere co..on "eo"le(
T!e researc! sa."le for 'nter+'e,s an% 'nteract'ons ,ere .a'nl0 b&s'ness "ersonnel an% sc!olars relate% to t!e concerne% f'el%s an% %e"art.ents(
T!e researc! sa."le for c'tat'on: references an% %escr'"t'+e researc! ,ere t!e sc!olarl0 art'cles fro. +ar'o&s tr&st,ort!0 %atabases s&c! as Hoo2le Sc!olar: ProK&est: NBU l'brar0: stor an% EBSCO !ost(
T!e n&.ber of "eo"le ,!o "art'c'"ate% 'n t!e s&r+e0 "olls an% ans,ere% t!e &est'ons ,as #-4# alto2et!er( T!e0 ans,ere% %'fferent &est'ons ,'t! an o"t'on for e+er0one to ans,er .ore t!an one &est'on( Ma'nl0 t!e sa."le s"ace for t!'s researc! ,as t!e "o"&lat'on of t!e Un'te% States or'2'nat'n2 fro. +ar'o&s states an% c't'es( T!e0 belon2e% to %'fferent bac72ro&n%s an% !a% %'fferent &al'f'cat'ons(
&%* #esearch Li)itations and solutions
T!'s researc! 's co."re!ens'+e re2ar%'n2 'ts s&bect b&t t!ere e;'st so.e l'.'tat'ons t!at are l'ste% belo,$
T!e researc! 's 2eneral'9e% an% %oes not 2o 'nto +er0 s"ec'f'c %eta'ls of cr0"toc&rrenc0 "roce%&res an% "ract'ces
T!e researc! .a'nl0 foc&ses on t!e one cr0"toc&rrenc0 t!at 's B'tco'n an% %oes not ta7e 'nto acco&nt all of t!e.(
T!e conce"t .ent'one% 'n t!'s researc! 's t!at cr0"toc&rrenc'es are %ecentral'9e% l'7e B'tco'n( B&t act&all0 so.e of t!e cr0"toc&rrenc'es are central'9e% too an% !a+e a central a&t!or't0 'n control of all t!e "roce%&res an% transact'ons( R'""le 's a cr0"toc&rrenc0 t0"e t!at !as a central'9e% .et!o%olo20 cons'%er'n2 t!e "ro%&ct'on: +er'f'cat'on an% transact'on of cr0"toc&rrenc'es(
25
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION
O,'n2 to t!e fact t!at t!ere 's not rele+ant %ata a+a'lable 'n t!e sc!olarl0 l'terat&re t!at co.b'nes t!e b&s'ness .o%el 'nno+at'on ,'t! t!e cr0"toc&rrenc0 b&s'ness( T!&s .aor f'n%'n2s an% %'sc&ss'ons are base% on f&n%a.ental conce"ts: %e%&ct'ons an% 'ntro%&ctor0 le+els of s&c! relat'ons!'"s an% %eta'le% an% co."re!ens'+e 'nfor.at'on 's not "ro+'%e%
&%+ Scope for further research
Alt!o&2! t!'s researc! 's ent'rel0 %escr'"t'+e an% not .an0 "ract'cal '."l'cat'ons can be fo&n% an% "re%'cte%: b&t t!'s researc! %&e to 'ts a""roac! an% content can "a+e ,a0 for f&rt!er researc! 'n t!e f'el%( After co."re!ens'+e researc! fro. t!e %atabases .ent'one% 'n researc! .et!o%olo20 sect'on: an% 'nteract'ons ,'t! b&s'ness "ersonnel: 't ,as concl&%e% t!at t!'s %e"art.ent nee%s f&rt!er researc! a"art fro. 'ts '..ense s'2n'f'cance 'n t!e f'el% of b&s'ness( >e 7no, t!at t!e cr0"toc&rrenc0 b&s'ness 's t!e f&t&re "ara%'2. an% t!at t!e f&t&re b&s'ness "rocee%'n2s ,'ll so.e%a0 be s!'fte% ent'rel0 to t!e %'2'tal .one0( >!en s&c! a t!'n2 !a""ens: t!e co."an'es ,'t! t!e best b&s'ness .o%els an% a""roac!es ,o&l% r&le t!e b&s'ness ,orl%( T!&s 't 's +er0 '."ortant as of no, to st&%0 t!e 'nterrelat'ons!'" bet,een cr0"toc&rrenc0 an% b&s'ness .o%els( T!'s researc! "ro+'%es t!e bas's for s&c! st&%'es an% researc!es b0 'ntro%&c'n2 t!e f&n%a.ental relat'ons!'"s &n%er t!e l'2!t of sc!olarl0 l'terat&re(
Chapter '! Findings and Discussions T!e b'tco'n or cr0"toc&rrenc0 b&s'ness ,!en +'e,e% &n%er t!e 7no,le%2e of b&s'ness .o%els s&22est t!at t!ere .&st be so.e ,a0 'n ,!'c! +al&e can be create% %&r'n2 t!e act'+'t'es t!at are "erfor.e%( >e 7no, t!e act'+'t'es to be stora2e: transact'on an% s"en%'n2 as far as t!ose co."an'es t!at are .ent'one% 'n t!'s researc! are concerne%( Ce;: Bloc7c!a'n: an% B'tPesa are t!e co."an'es t!at offer t!ese ser+'ces an% carr0 o&t t!ese act'+'t'es( In or%er to create +al&e 'n t!ese act'+'t'es: t!e0 .&st "erfor. t!e ,or7 abo+e "ar: trans" arentl0 an% eff'c'entl0 so t!at t!e c&sto.ers an% &sers t!e0 !a+e are sat'sf'e% t!&s 2'+'n2 r'se to t!e creat'on of +al&e( T!e best co."an0 'n "ro+'%'n2 t!ese act'+'t'es an% ser+'ces ,o&l% benef't t!e .ost s'nce t!e0 ,o&l% be creat'n2 t!e .ost 26
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION +al&e o&t of t!ese act'+'t'es( Users are 2enerall0 ,'ll'n2 to "a0 .ore 'f t!e +al&e 2enerate% %&r'n2 t!ese act'+'t'es an% "ro+'s'on of ser+'ces 's .ore( T!&s t!e0 can 7ee" t!e'r "rof'ts .ar2'ns !'2!er 'f t!e0 acco."l's! 2reater &al't0 an% +al&e 2enerat'on( Onl0 'f t!e co."an'es .ana2e to e."lo0 b&s'ness .o%el tec!n'&es an% b&s'ness .o%el 'nno+at'on 'n t!'s f'el%: t!e0 can cas! .&c! .ore t!an t!e c&rrent "rof'ts an% re+en&es( >e !a+e fo&n% fro. t!e sc!olarl0 l'terat&re t!at cr0"toc&rr enc'es are t!e c&rrenc'es of t!e f&t&re an% t!e0 ,o&l% soon be ta7'n2 o+er t!e b&s'ness "roce%&res: transact'ons: a2ree.ents: "a0.ents an% cas!'n2 .ec!an's.s( So.e +'e,s recor%e% fro. t!e "rofess'onals are 2'+en belo,$ B'll Hates: M'crosoft co?fo&n%er sa0s: B'tco'n 's a tec!nolo2'cal to&r %e force( R'c7 Fal+'n2e: IT "rofess'onal .ent'ons: B'tco'n can %o to ban7s e;actl0 t!e t!'n2 e.a'l %'% to t!e "ostal 'n%&str0( Hol%.an Sac!s sa0s t!at t!e bas'c an% '."ortant !'n%rances for B'tco'n be'n2 &se% .ore lar2el0 'n t!e "a0.ents .et!o%s are %ebatabl0 not &nbeatable: t!o&2! connect'ons ,'t! t!e conser+at'+e ban7'n2 s0ste. are e+ent&all0 +'tal to 'ts o"erat'on( >e also fo&n% t!at B'tco'ns are %ecentral'9e% cr0"toc&rrenc0 &n'ts t!at .eans t!e ban7'n2 s0ste.s are lon2er re&'re% an% t!e'r e;'stence 's co."letel0 %ef'e% b0 t!e cr0"toc&rrenc0 s0ste.s( T!e best "art abo&t cr0"toc&rrenc'es l'7e B'tco'ns 's t!at 't offers transact'ons at e;tre.el0 lo, costs( T!ese transact'ons are +'rt&all0 fr'ct'onless an% can be &se% 'nternat'onall0 ,'t! no bo&n%ar'es or restr'ct'ons of bor%ers at !an%( T!'s s0ste. "ro+es to be .&c! better t!an t!at of cre%'t car%s: .one0 e;c!an2e an% transfer ser+'ces "ro+'%e% b0 +ar'o&s co."an'es: letters an% rece'"ts of cre%'ts: an% ta;es an% "a0.ents e+er0 no, an% t!en on transact'ons: stora2e: transference: an% s"en%'n2 s'nce t!e co."an'es l'7e B'tPesa an% Ce; %o not cost +er0 .&c! for t!ese ser+'ces ,!'le t!e con+ent'onal ban7'n2 s0ste.s 2et .&c! o&t of eac! an% e+er0 act'+'t0 e+en t!e stora2e one( T!&s t!e cost benef'ts ease benef'ts an% re%e."t'on fro. t!e con+ent'onal: len2t!0 an% tar%0 "rocesses of con+ent'onal ban7'n2 an% transact'on s0ste.s ,'ll soon "ro+e to be +er0 .&c! all&r'n2 to t!e b&s'ness co."an'es an% "ersonnel 'n+ol+e% 'n s&c! b&s'nesses( C&rrentl0 t!e b'tco'n transact'ons cost e+en 27
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION lesser t!an # for transact'ons an% t!e'r "rocess'n2 ,!'le t!e a.o&nt be'n2 "a'% to t!e c&rrent .erc!ants for cre%'t car% transact'on "rocess'n2 's *?( >e !a+e fo&n% t!at B'tco'n 's t!e .ost ,'%el0 acce"te% an% cons'%ere% cr0"toc&rrenc0 an% no, t!e c&rrent .ar7et ca"'tal'9at'on of B'tco'ns 's o+er #6 b'll'on USD( B'tco'n 's a "eer to "eer electron'c "a0.ent s0ste. an% also "ro+'%es a sol&t'on to t!e %o&ble s"en%'n2 'ss&e .aorl0 face% b0 all t!e atte."ts for creat'on of a %ecentral'9e%: s'n2le s"en%'n2 cr0"toc&rrenc0( T!e .a'n t!'n2 !ere to concl&%e 's t!at 't el'.'nates t!e e;'stence an% nee% for t!e t!'r% "art0 t!at bases on tr&st an% "ro+'%es ser+'ces of transference: e;c!an2e: stora2e an% s"en%'n2 of .one0( Satos!' !a% a ser'o&s "roble. ,'t! t!e fo&n%at'on of t!'s con+ent'onal ban7'n2 s0ste. t!at 's t!e Gtr&st@( T!e con+ent'onal ban7'n2 s0ste. s bases on tr&st to "ro+'%e s&c! ser+'ces ,!'le t!'s factor 's el'.'nate% 'n cr0"toc&rrenc'es t!&s el'.'nat'n2 t!e r's7s of fra&%s: 'ncreas'n2 eff'c'enc'es: an% t!e contro+ers'al G"roof of ,or7@ to 2&arantee t!e +al'%'t0: ass&rance an% sec&r't0 'n all t!e transact'ons(
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION c!an2e ent'rel0 t!e ban7'n2 arc!et0"e an% start a co."et't'on for ne,er an% .ore a%+ance% b&s'ness .o%els 'n t!e f'el%s 'n+ol+'n2 cr0"toc&rrenc'es( C&rrentl0 bloc7c!a'n 's not %o'n 2 ,!at 't 's ca"able of( It 's &st "ro+'%'n2 t!e ser+'ces of transact'on co."let'on bet,een t,o "art'es( It .a7es &se of an a&to.ate% "roce%&re an% !an%les t!ese act'+'t'es &'te eff'c'entl0 ,'t!o&t c!ar2'n2 .&c!( All t!ese "roce%&res are sec&re an% safe for bot! t!e &sers an% no 'nfor.at'on loss 'n t!ere( S'nce t!ere 's a 2reat t!reat for t!e ban7'n2 s0ste.s fro. t!e cr0"toc&rrenc'es: t!ere nee%s to be 'ntro%&ce% an 'nno+at'on an% &"2ra%at'on 'n t!e ban7'n2 s0ste.s of t!e c&rrent era 'n or%er to sa+e t!e. fro. t!e ser'o&s t!reat of cr0"toc&rrenc'es ta7'n2 o+er t!e ban7'n2 s0ste.s( T!&s t!e 'nno+ators an% e;"erts 'n t!e b&s'ness of ban7'n2 s0ste.s nee% to .a7e &se of b&s'ness .o%el 'nno+at'on an% %e+elo" an '."ro+e% b&s'ness .o%el so t!at t!e c&sto.ers %o not feel t!e nee% to c!an2e t!e'r transact'o n s0ste.s an% st'c7 to t!e con+ent'onal ban7'n2 s0ste.s( T!'s can be %one b0 creat'n2 +al&e 'n t!e %a'l0 l'fe "roce%&res an% "ro+'%'n2 e;tens'+e &al't0 an% sec&r't0 'n t!e'r %a'l0 l'fe transact'ons( T!'s +al&e can be create% t!ro&2! lesser transact'on costs: lesser ta;es: 2reater ,'t!%ra,a l l'.'ts: lesser 'nterest rates: an% '."ro+e% &al't0 ass&rance( T!'s ,o&l% lea% to c&sto.er sat'sfact'on an% c&sto.er en2a2e.ent ,!'c! are of 2reat +al&e for t!e cons&.ers( >!en t!e ban7'n2 s0ste.s can create t!'s t0"e of +al&e: t!e c&sto.ers ,o&l% be reta'ne% an% t!e t!reat of c&sto.er t&rno+er to,ar%s cr0"toc&rrenc'es ,o&l% be re%&ce%( In t!'s .anner: t!e cr0"toc&rrenc0 ,'ll not ta7e o+er t!e ban7'n2 s0ste.s b&t 't ,o&l% !a+e onl0 !a+e 'ts o,n "lace 'n t!e .ar7et bes'%e t!e ot!er c&rrenc'es( C&rrentl0 t!ere !as been a "ro"osal of L'n&; Fo&n%at'on t!at 's bel'e+e% to be "artner'n2 ,'t! t!e 2'ants an% s&ccessf&l co."an'es 'n f'nances an% tec!nolo20 'n or%er to '."ro+e an% en!ance t!e bloc7c!a'n tec!nolo20( T!'s "artners!'" 's an o"en e;a."le of tec!n'cal an% f'nanc'al 2'ants be'n2 2reatl0 'ntereste% 'n t!e cr0"toc&rrenc0 b&s'ness an% b0 '."ro+'n2 t!e bloc7c!a'n b&s'ness .o%els t!e0 can '."ro+e t!e 'nfrastr&ct&re: o"erat'ons an% "roce%&res occ&rr'n2 'n cr0"toc&rrenc0 transact'ons( T!'s "artners!'" 's 2o'n2 to for. &" an enter"r'se an% an o"en so&rce %'str'b&te% le%2er fra.e,or7 an% ,'ll 'n+ol+e b'2 co."an'es l'7e IBM: C'sco: F&'ts&: Intel: an% .an0 29
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION .ore( T!e .'ss'on of t!'s enter"r'se 's to "o'nt o&t t!e s'2n'f'cant attr'b&tes: re&'re.ents an% feat&res t!at are lac7'n2 cons'%er'n2 t!e 'nter?'n%&str0 o"en so&rce %'str'b&te% le%2ers( B0 creat'n2 s&c! &al't0 stan%ar%s 'n t!e "roce%&re: +al&e can be create% 'n t!e b&s'ness transact'ons t!at are occ&rr'n2 e+er0 t'.e aro&n% t!e ent're ,orl%( Fro. t!e %'sc&ss'ons ,'t! t!e e;"erts an% re"resentat'+es of co."an'es !a+'n2 '."ro+e% b&s'ness .o%els: e;cele% b&s'ness .o%el 'nno+at'ons an% cr0"toc&rrenc0 'n+ol+'n2 co."an'es: so.e of t!e b&s'ness o""ort&n't'es t!at b'tco'n 'nter+ent'on ,'ll create an% r&le are %'sc&sse% as follo,s$ A"art fro. t!e co."an'es "ro+'%'n2 ,allet ser+'ces an% stora2e ser+'ces for t!e b'tco'n &sers: ,!ere t!e0 can store t!e'r b'tco'ns safe an% so&n% an% t!en &se t!e. for f&t&re "a0.ent an% transact'on "roce%&res: t!ere are so.e ot!er "arts of t!'s 'n%&str0 ,!'c! are 0et to be e;"lore% an% 2oo% b&s'ness .o%els can ta7e t!e co."an'es to 2reat !e'2!ts( #ecord ,eeping
In or%er to 'ncrease trans"aren c0 an% "ro+'%e all t!e &sers ,'t! lo2s of all transact'ons occ&rr'n2 %a'l0: B'tco'n@s "&bl'c le%2er "ro+'%es tr&st base% recor% 7ee"'n2 ,!ere trans"arenc0 's ens&re% an% %o&ble s"en%'n2 's co."letel0 a+o'%e%( Co."an'es can co.e &" ,'t! stron2 %atabases an% start creat'n2 +al&e b0 eff'c'entl0 stor'n2 t!e lo2s 'n le%2ers an% %atabases so t!at t!e s0ste. of b'tco'ns 's '."ro+e% an% stren2t!ene%( So.e start&"s !a+e been ,'tnesse% 'n t!'s f'el% as Mone2ra"! ,!'c! ,as 'n't'ate% b0 NYU "rofessor 'n or%er to recor% an% 7ee" t!e %atabases %'2'tal o,ners!'"s an% lo2s of transact'ons: "a0.ents an% .o+e.ents of t!e cr0"toc&rrenc0 na.e% as na.eco'n bloc7c!a'n( Internet base% "&bl'c recor% 7ee"'n2 ser+'ces are alrea%0 establ's!e% b0 so.e b&s'ness cases( Cro,%C&r't0 .a7es &se of bloc7c!a'n 'n or%er to f'n% t!e ,ea7 l'n7s 'n t!e ,ebs'tes( 8ello Bloc7 's a "&bl'c le%2er start&" t!at offers recor% 7ee"'n2 %ata?as?a?ser+'ce t!ro&2! 8TTP lan2&a2e( T!&s t!'s bloc7c!a'n 's a 2reat o""ort&n't'es for start&"s so t!at t!e0 can a&to.ate t!e recor%7ee"'n2 .ec!an's.s an% .on'tor b&s'ness transact'ons ,'t! lo2s 2enerate% a&to.at'call0( T!'s tec!nolo20 's be'n2 &se% 30
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION 'n b'tco'n transact'ons an% le%2ers an% %e.onstrates 2reat o""ort&n't0 for t!e ot!er b&s'nesses t!at re&'re a&to.ate% recor% 7ee"'n2 an% transact'on %ata recor%'n2( -allet .echnology
>allet as ob+'o&s fro. t!e na.e 's an onl'ne s'te t!at stores t!e b'tco'ns or an0 cr0"toc&rrenc0 an% 's o,ne% b0 t!e b&s'ness.en( T!'s tec!nolo20 ca.e to e;'stence soon as t!e cr0"toc&rrenc'es arr'+e%( T!ese s'tes are base% on al2or't!.s an% co%es 'n %es'2nate% lan2&a2es an% "ro+'%e ser+'ces of stora2e of cr0"toc&rrenc'es( T!'s sector also !osts .&c! c!ances an% "otent'al for 'nno+at'on: b&s'ness .o%els an% b&s'ness .o%el 'nno+at'ons( T!e co."an'es c&rrentl0 offer'n2 s&c! ser+'ces !a+e t!e'r b&s'ness .o%els set 'n "lace an% a%+ance% tec!nolo2'es an% 'nno+at'ons are +er0 .&c! ,elco.e%( M<'?s'2nat&re 's a tec! ,!'c! 's an e.er2'n2 one re2ar%'n2 ,allet tec!nolo2'es( T!e na.e .<'?s'2nat&re '."l'es t!e fact t!at t!ere are se+eral 7e0s co."letel0 "r'+ate an% onl0 7no,n b0 t!e &ser an% not e+en t!e co."an0: 's &se% 'n or%er to store an% loc7 t!e b'tco'ns 'n t!e &sers@ acco&nts( T!&s t!'s 's a sec&re an% safe ,a0 of stor'n2 t!e c&rrenc0 ,'t! all "o,er belon2'n2 to t!e &sers( T!e co."an0 onl0 2ets a s.all "ercenta2e of t!e transact'on a.o&nt( B'tHo 's t!e na.e of a co."an0 ,!'c! e;cels 'n ,allet tec!nolo2'es an% 's al,a0s &" for 'nno+at'ons an% a%+ance.ents 'n t!e .<'? s'2nat&re tec!nolo20 a%+anc'n2 't to f&rt!er .o%'f'cat'ons so t!at b'22er co."an'es also c!oose to &se t!e'r tec!nolo2'es( 8'+e l'7e co."an'es are so.e e;a."les t!at %on@t &st rest on ,!at t!e0 offer?t!e ,allet ser+'ces? b&t ,al7 an e;tra .'le to offer a""l'cat'ons: BIPS* 8D sec&r't0 an% 8TML3 ,eb ,allet( F&t&re b&s'ness .o%els ,o&l% conta'n 'ncrease% fle;'b'l't0 'n .on'tor'n2 an% !an%l'n2 %'2'tal .one0 t!&s 2'+'n2 r'se to ne, f'nanc'al tools an% self?e;ec&table escro, "ro%&cts( S)art Contracts
N'c7 S9abo 'n #//6s "ro+'%e% a conce"t of s.art contracts( S.art contract 's an e.er2'n2 conce"t an% a +er0 'nterest'n2 one( T!'s conce"t 'n+ol+es 2enerat'on of a&to.ate% an% a&to.at'c a2ree.ents an% contracts t!at are "ro2ra..able an% self? e;ec&t'n2 t!&s era%'cat'n2 t!e nee% of a t!'r% "art0 t!at ta7es t!e f'nanc'al b&%2et for 31
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION .a7'n2 &" an a2ree.ent an% .a7'n2 t!e t,o "art'es settle for a o'nt "act( As of no,: t!ere !as not 0et been co."lete an% f'nal soft,are t!at ,o&l% %o t!e %es're% tas7 !o,e+er so.e co."an'es are offer'n2 s&c! a""l'cat'ons an% soft,are t!at create %'2'tal a2ree.ents bet,een "art'es( 8e%20 's a co."an0 ,or7'n2 'n s&c! re2ar%( T!e0 'nten% to b&'l% s.art contracts 'n t!e b'tco'n bloc7c!a'n to act&al'9e t!e cost a2ree.ents 'n contracts( T!'s re%&ces t!e c!ances of +olat'l't0 of a %'2'tal c&rrenc0( Co%'&s 's t!e na.e of a "roect t!at &t'l'9es t!e fa< 'solat'on tec!nolo20 'n't'ate% b0 Hoo2le an% 's be'n2 &se% b0 R'""le Labs( T!'s "roect ,'ll real'9e t!e %'2'tal a2ree.ents t!at are a&to.at'call0 2enerate% an% "ro%&ce%( T!e sco"e of s&c! soft,are 's to re"lace t!e arc!a'c "a"er contracts an% offer t!e .<'%'.ens'onal +'e,s an% an2les to,ar%s an a2ree.ent( More n&.ber of +ers'ons of an a2ree.ent can be a&to.at'call0 2enerate% an% t!e best one .a0 be selecte%( Correct b&s'ness .o%els 'n s&c! b&s'ness can lea% to "ro2ress an% re+en&es 'n no t'.e( Mining
B'tco'n .'n'n2 's anot!er "ara%'2. of cr0"toc&rrenc'es l'7e b'tco'n an% 's a 2reat o""ort&n't0 for t!e a%+ent&ro&s an% a.b't'o&s "eo"le to start&" an% "rol'ferate a b&s'ness .o%el( T!'s 's a "roce%&re ,!'c! 's &se% b0 t!e co."&ters to 2enerate b'tco'ns an% to conf'r. t!e transact'ons be'n2 .a%e 'n a net,or7( M'n'n2 's base% on sol+'n2 of co."le; co."&tat'onal "roble.s( >'t! t!e "ro2ress of a "erson .'n'n2 t!e b'tco'ns an% sol+'n2 t!e co."&tat'onal "roble.s: t!e b'tco'ns 7ee" on 2enerat'n2 an% t!e "roble.s 7ee" on beco.'n2 .ore an% .ore co."le; an% .&c! .ore a%+ance% s0ste.s are t!en re&'re% to sol+e t!e e+en .ore co."le; "roble.s( Mer2'n2 an% consol'%at'on 's a "rocess t!at occ&rs ,!en t,o co."an'es co.b'ne t!e'r .'n'n2 efforts 'n or%er to re%&ce efforts an% s!are t!e reso&rces for .ore .'n'n2( PeerNo+a 's a co."an0 t!at 's a res< of a .er2er an% consol'%at'on bet,een 8'2!B'tco'n an% Clo&%!as!'n2( C&rrentl0 t!e co."an'es are ,or7'n2 to2et!er ,'t! 2reater reso&rces an% !'2!er .'n'n2 s"ee%s( 32
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION Cr0"ts0 's a .'n'n2 "ool or +ent&re o"ene% b0 t!e reno,ne% BTC C!'na( T!'s 's a "latfor. for e;c!an2'n2 c&rrenc'es as ,ell as .'n'n2 contracts( T!&s '."ro+e% b&s'ness .o%els 'n t!'s sector can lea% to co."an'es !a+'n2 !'2!er c!ances for s&ccess an% .ore a%+ance% tec!nol o2'es( T!e benef't of a%+ance.en t 'n t!'s f'el% 's t!at t!e ,orl% ,'ll 2et to !a+e e+en better tec!nolo2'es for sol+'n2 co."le; "roble.s 'n +ar'o&s f'el%s of sc'ence( T!e abo+e %'sc&ss'ons an% f'n%'n2s are t!e s&..ar0 of 'nteract' ons ,'t! t!e b&s'ness re"resentat'+es: researc! fro. sc!olarl0 l'terat&re an% 'nter+'e,s ,'t! t!e sc!olars( T!e n&.ber of "eo"le ,!o "art'c'"ate% 'n t!e "olls an% ans,ere% t!e &est'ons ,as #-4# alto2et!er( T!e0 ans,ere% %'fferent &est'ons ,'t! an o"t'on for e+er0one to ans,er .ore t!an one &est'on( Ma'nl0 t!e sa."le s"ace for t!'s researc! ,as t!e "o"&lat'on of t!e Un'te% States or'2'nat'n2 fro. +ar'o&s states an% c't'es( T!e0 belon2e% to %'fferent bac72ro&n%s an% !a% %'fferent &al'f'cat'ons( T!e "olls t!at ,ere con%&cte% on onl'ne an% soc'al a""s base% &est'onna'res are ,r'tten as &n%er$ /uestions and their respective results 1)
A,areness ,'t! t!e ,or% cr0"toc&rrenc0 an% b'tco'nsJ
Total of #-)) "eo"le res"on%e% to t!'s &est'on an% t!e 53 of t!e. +ote% t!at t!e0 ,ere a,are of t!ese ,or%s( *= A,areness ,'t! t!e ,or% b&s'ness .o%el 'nno+at'onJ #-#) "eo"le ans,ere% t!'s &est'on an% #)-4 +ote% t!at t!e0 7ne, abo&t t!e ter.( 3)
Is b&s'ness .o%el 'nno+at'on better t!an "ro%&ct an% "rocess 'nno+at'onJ
#)*5 "eo"le ans,ere% t!'s &est'on( 5*6 +ote% for t!e b&s'ness .o%el 'nno+at' on an% 465 +ote% for t!e "ro%&ct or "rocess 'nno+at'on( 4)
Does cr0"toc&rrenc0 !a+e a f&t&re cons'%er'n2 t!e 'ncreas'n2 'nterest of b&s'ness co."an'es an% b&s'ness.en 'n t!e sectorJ 33
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION #*-) "eo"le ans,ere% t!'s &est'on( /)6 +ote% for t!e cr0"toc&rrenc0 to !a+e a 2oo% c!ance of be'n2 a%o"te% 'n t!e b&s'ness f'el% ,!'le ## sa'% t!at 't ,o&l% be &se% s'%e b0 s'%e alon2 ,'t! t!e con+ent'onal c&rrenc'es( * "eo"le ,ere of t!e +'e, t!at 't ,o&l% ta7e o+er t!e c&rrent an% con+ent'onal c&rrenc'es an% 'n so.e t'.e fra.e cr0"toc&rrenc'es ,o&l% be t!e onl0 c&rrenc'es be'n2 &se%( 5)
>!'c! cr0"toc&rrenc0 ,o&l% t&rn o&t to be t!e .ost nor.al'9e% an% ,'%el0 acce"te%J
-) of t!e "eo"le +ote% for t!e B'tco'n c&rrenc0 t!&s c!oos'n2 't to be t!e c&rrenc0 of t!e f&t&re( 6)
Can BMI be e."lo0e% to .'n'n2: ,all et tec!s: s.art contracts: an% recor% 7ee"'n2 tren%s an% tec!nolo2'es assoc'ate% ,'t! cr0"toc&rrenc'esJ >o&l% t!e0 be as .&c! &sef&l as 'n nor.al b&s'nessesJ
5# "eo"le re"l'e% ,'t! t!e co..ents t!at t!ese tren%s an% tec!nolo2'es are +ent&res an% o""ort&n't'es for ne, start&"s an% BMI can .a7e t!e. +er0 .&c! s&ccessf&l an% t!at t!e BMI ,o&l% be &st as .&c! &sef&l as 't 's 'n nor.al b&s'nesses( #/ ,ere of t!e contrar0 +'e, t!at t!ese tec!nolo2'es an% tren%s ,o&l% re&'re !'2!er %e2ree of &n%erstan%'n2 an% .ent'one% t!e reasons to be %'ff'c< to f'n% s7'lle% "eo"le: 'nsec&r't'es abo&t t!e ne, tec!nolo20: no le2al bas's of cr0"toc&rrenc'es an%Qor t!e0 "referre% con+ent'onal ban7'n2 s0ste.s as t!e0 are eas'er to &n%erstan% an% !an%le( 7)
Do 0o& see Cr0"toc&rrenc0 era%'cat'n2 t!e ban7'n2 s0ste.J
43 "eo"le res"on%e% "os't'+el0 t!at t!e a%+ent of cr0"toc&rrenc0 's a t!reat to t!e con+ent'onal ban7'n2 s0ste.s an% t!at 't ,o&l% ta7e o+er t!e con+ent'onal ban7'n2 s0ste.s( 8)
Do 0o& bel'e+e t!at cases l'7e S'l7 Roa% Blac7 Mar7et ,o&l% ca&se t!e 2o+ern.ents to ban t!e cr0"toc&rrenc'es or %o 0o& bel'e+e t!at t!e 2o+ern.ents ,o&l% ta7e control o+er t!e cr'.es t!ro&2! stron2 c!ec7 an% balance an% '."ro+e% soft,areJ
34
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION #- "eo"le ,ere of t!e +'e, t!at t!e cr0"toc&rrenc'es ,o&l% be banne% %&e to t!e cr'.'nal cases l'7e S'l7 Roa% case an% t!at t!ere are 2reater c!ances of cr'.'nal act'+'t'es ,!en t!e %ecentral'9at'on an% anon0.'t0 's "ro+'%e% to t!e "o"&lat'on( -) t!o&2!t t!at soon t!ere 's 2o'n2 to be a soft,are '."ro+e.ent or a le2'slat'+e anno&nce.ent for str'ct c!ec7 an% balance an% t!at t!e c&rrenc0 ,o&l% ta7e 'ts "lace 'n t!e .ar7et no .atter ,!at( / re"l'e% t!at t!e0 are not s&re ,!at ,o&l% be t!e f&t&re of cr0"toc&rrenc0(
35
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION
Conclusion and #eco))endation B&s'ness .o%el 'nno+at'on 's a +er0 '."ortant tec!n'&e for !a+'n2 a rel'able: s&sta'nable an% lon2 last'n2 relat'ons!'" ,'t! 0o&r c&sto.ers( T!e ot!er t0"es of 'nno+at'ons l'7e "ro%&ct 'nno+at'on or "rocess 'nno+at'ons !a+e 2ro,n ol%er an% al.ost e+er0bo%0 !as beco.e t!e .aster of s&c! 'nno+at'ons( T!&s ne,er ,a0s nee% to be a%o"te% an% ne,er "roce%&res for 'nno+at'ons are re&'re% 'n or%er to 2a'n a co."et't'+e a%+anta2e o+er t!e co."et'tors 'n s&c! a sat&rate% b&s'ness en+'ron.ent( B&s'ness .o%el 'nno+at'on "ro+'%es ,'t! t!e ,or7'n2 an% o"erat'onal conce"ts t!at can beat an0 'nno+at'on 'n t!e .ar7et( E;a."les for 2oo% BMIs are %'sc&sse% 'n t!'s "a"er l'7e A""le: >al?Mart an% Dell( T!&s b&s'ness .o%el 'nno+at'ons "ro+'%e lon2 last'n2 an% s&sta'nable re+en&es ,'t! lo0al cons&.er base an% "rof'table b&s'ness en+'ron.ent ,'t! co."et'tors be'n2 %o,n an% &n%er t!e 'nfl&ence of co."an'es t!at "ossess s&c! BMs an% BMIs( Cr0"toc&rrenc0 's a c&rrenc0 of t!e f&t&re an% 's alrea%0 sett'n2 'ts feet 'nto t!e so'l as of no,( Cr0"toc&rrenc0 roots o&t con+ent'onal ban7'n2 s0ste.s an% "ro+'%es a %ecentral'9e% transact'ons s0ste. alon2 ,'t! "ro+'%'n2 anon0.'t0 to bot! t!e "art'es .a7'n2 t!e transact'ons t!&s 2'+'n2 t!e "o,er to t!e &ser an% no t!'r% "art0 can access or +'e, t!e %eta'ls of t!ese %eals an% a2ree.ents( B&s'nesses t!at !a+e been o"ene% &" as o""ort&n't'es for t!e start&"s: eccentr'c an% a.b't'o&s "eo"le are too .an0 an% an0one !a+'n2 a 2oo% co..an% o+er co."&ters an% %'2'tal lan2&a2es can %o ,ell 'n t!'s f'el%( T!ese b&s'nesses 'ncl&%e M'n'n2: >allet ser+'ces: Cr0"toc&rrenc0 stora2e an% lo2 7ee"'n2: an% f'nall0 t!e s.art contracts( T!ese are so.e of t!e e;a."les of s&c! b&s'nesses an% o""ort&n't'es ,!'le t!ere are too .an0 'n real( If "ro"er b&s'ness .o%el 'nno+at'on tec!n'&es of +al&e creat'on: +al&e ca"t&r'n2 are e."lo0e% 'n t!ese b&s'nesses: t!en t!e0 can "ro+e to be +er0 .&c! "rof'table an% !a+e t!e ca"ab'l't0 of .a7'n2 fort&nes o&t of t!ese +al&es( T!e effects of cr0"toc&rrenc0 on b&s'ness .o%el 'nno+at'on are all "os't'+e an% t!e0 enco&ra2e t!e "eo"le an% b&s'ness.en to a%o"t an% '."ro+e b&s'ness .o%els 'n t!e b&s'nesses c&rrentl0 act'+e an% assoc'ate% ,'t! t!e cr0"toc&rrenc'es( T!&s t!'s 's a 2reat o""ort&n't0 for b&s'ness an% an0one !a+'n2 t!e +ent&re ca"'tal s!o&l% 'n+est an% earn "rof'table re+en&es fro. s&c! b&s'ness(
36
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION T!e .aor reco..en%at'on for t!e rea%ers 's to rea% 2o t!ro&2! t!'s researc! ,'t! t!e .'n%set of &n%erstan%'n2 t!e bas'cs an% f&n%a.entals of b&s'ness .o%els: b&s'ness .o%el 'nno+at'ons: cr0"toc&rre nc0 .a'nl0 b'tco'ns: an% t!e &sef&l '."acts of b&s'ness .o%el 'nno+at'on on cr0"toc&rrenc0 an% +'ce +ersa( T!'s researc! 's &al'tat'+e 'n nat&re an% "ro+'%es !&2e sco"e for f&rt!er researc! as 't "a+es t!e ,a0 for t!e rea%ers to &n%erstan% an% t!en stan% on t!e s!o&l%ers of 2'ants to acco."l's! t!e !e'2!ts of 7no,le%2e an% 'nfor.at'on( Anot!er reco..en%at'on 's t!e one for f&t&re researc! s'nce t!ere 's not .&c! %ata an% 'nfor.at'on a+a'lable 'n t!'s f'el% ,!ere relat'ons!'" bet,een cr0"toc&rrenc0 an% b&s'ness .o%el 'nno+at'on !as been %'sc&sse% t!&s .a7'n2 s&ff'c'ent roo. for f&rt!er researc! base% on t!'s l'.'te% researc!(
37
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38
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION He+a: B(: *6#4( V'rt&al C&rrenc'es an% Bloc7c!a'ns$ A Pr'.er( Hlaser: F( an% Be99enber2er: L(: *6#3( Be0on% Cr0"toc&rrenc'es?A Ta;ono.0 of Decentral'9e% Consens&s S0ste.s( Hobel': D(8( an% Bro,n: D((: #/5-( Anal09'n2 "ro%&ct 'nno+at'ons( Research "anagement: 3!<)=: ""(*3?#(
8'2!s.'t!: ( an% Coc7b&rn: A(: *66#( A2'le soft,are %e+elo".ent$ T!e b&s'ness of 'nno+at'on( Computer: 36(: C!r'stensen: C(M( an% a2er.ann: 8(: *665( Re'n+ent'n2 0o&r b&s'ness .o%el( 7arvar$ usiness review : 8<#*=: ""(3-?45( a9an: E(: Tan: C(>( an% L'.: E(T(: *6#3( Val&e Creat'on 'n Cr0"toc&rrenc0 Net,or7s$ To,ar%s A Ta;ono.0 of D'2'tal B&s'ness Mo%els for B'tco'n Co."an'es( In The 14th #aci.ic Asia Con.erence on In.ormation S&stems9 #ACIS !1((
!'%9e+: A(: *6#4( CRYPTO?CURRENCY$ LEHAL APPROAC8ES TO T8E CONCEPT FORMATION( ;<=> ? @>=;D E>@FG<;@H=< : <#=: ""(-*?-4( '.: >(C( an% Ma&bor2ne: R(: #///( Creat'n2 ne, .ar7et s"ace( 7arvar$ usiness review: --<#=: ""(5?/(
'n%str.: D(: *6#6( To,ar%s a ser+'ce?base% b&s'ness .o%ele0 as"ects for f&t&re co."et't'+e a%+anta2e( %uropean "anagement Journal : 8<4=: ""()-/?)/6( Man&al: O(: *663( T!e .eas&re.ent of sc'ent'f'c an% tec!nolo2'cal act'+'t'es( #ropose$ gui$elines .or collecting an$ interpreting innovation $ata ( 39
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION Oster,al%er: A(: P'2ne&r: Y(: Ol'+e'ra: M(A(Y( an% Ferre'ra: ((P(: *6##( B&s'ness Mo%el Henerat'on$ A !an%boo7 for +'s'onar'es: 2a.e c!an2ers an% c!allen2ers( A.rican journal o. usiness management: (<-=: ""(**?6(
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Stabell: C(B( an% Fel%sta%: W(D(: #//5( Conf'2&r'n2 +al&e for co."et't'+e a%+anta2e$ on c!a'ns: s!o"s: an% net,or7s( Strategic management journal: ""()#?)-( Teece: D((: *6#6( B&s'ness .o%els: b&s'ness strate20 an% 'nno+at'on( 5ong range planning: 63<*=: ""(#-*?#/)(
To7atl': N(: *665( Hlobal so&rc'n2$ 'ns'2!ts fro. t!e 2lobal clot!'n2 'n%&str0Xt!e case of ara: a fast fas!'on reta'ler( Journal o. %conomic Leograph&: 8<#=: ""(*#?5( Tra+a%': ( <*6#6=( Business "o$el Innovation( onl'ne sl'%es!are(net( A+a'lable at$ !tt"s$QQ,,,(sl'%es!are(netQ9a!'rntQto"'c?)?b&s'ness?.o%el?'nno+at'on Accesse% */ A&2( *6#-( Tr'.': S( an% Berbe2al?M'rabent: (: *6#*( B&s'ness .o%el 'nno+at'on 'n entre"rene&rs!'"( International %ntrepreneurship an$ "anagement Journal : 8<)=: ""())/?)43( Van %e Ven: A(8(: #/54( Central "roble.s 'n t!e .ana2e.ent of 'nno+at'on( "anagement science: 3<3=: ""(3/6?46-( ott: C( an% A.'t: R(: *66*( "easuring the per.ormance implications o. usiness mo$el $esign: evi$ence .rom emerging growth pulic .irms ( Fonta'neblea&$ Insea%(
40
EFFECT OF CRYPTOCURRENCY ON BUSINESS MODEL INNOVATION ott: C(: A.'t: R( an% Massa: L(: *6#6( T!e b&s'ness .o%el$ T!eoret'cal roots: recent %e+elo".ents: an% f&t&re researc!( I%S% usiness school/)niversit& o. *avarra : ""(#? )(
41
