Finding Blockchain Value: A Business Ecosystem Approach

Abstract

While there is increasing popularity and interest in blockchain use, the focus is largely on the technology itself and its potential benefits. However, successful exploitation of the technology requires an appropriate business ecosystem in which the technology is applied. Understanding this and the role actors have within it is essential for blockchain use to be successful. The different companies in its ecosystem are treated as homogenous, while in reality, they often have very different roles in the system and operate under different conditions. In this article, we identify four groups within a business ecosystem based on their level of dominance and transparency. These two categories play a key role in defining an appropriate blockchain strategy, showing that while some actors directly benefit from blockchain use, others will only do so by adjusting their offerings. We provide practitioners with a method for assessing a suitable blockchain strategy based on their role within their business ecosystems. We also highlight issues around data ownership, initial technology investment, and the interaction with new entrants. For academics, we critically identify and assess the characteristics of business ecosystem groups and the related implications of blockchain adoption.