Blockchain Technology in Business

This essay analyzes the merits and demerits of using blockchain technology in business. It explores the key opportunities of implementing blockchain technology in the business and compares and contrasts the relevant arguments cited in five articles. The essay concludes that blockchain technology is capable of providing accuracy to the process followed in Business Process Model of an organization and accelerate all the business-related activities.

Running Head: BLOCKCHAIN TECHNOLOGY IN BUSINESS
BLOCKCHAIN TECHNOLOGY IN BUSINESS
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Blockchain is actually a distributed as well as decentralized model employed to
control the flow of digital information stored in a public database (Emeraldinsight.com,
2019). The purpose of the study is to analyse the contents of five articles, which throw lights
on the merits as well as demerits of using blockchain technology in the business. The essay
also attempts to derive the key opportunities of implementing blockchain technology in the
business. This essay also compares and contrasts the relevant arguments cited in these five
articles.
The first article, “BLOCKCHAIN – AN OPPORTUNITY FOR DEVELOPING
NEW BUSINESS MODELS” is written by Nadezhda Filipova. In this article the authors has
defined blockchain as a network consisting of multiple nodes, which includes decentralised
databases. The article also discuss about some of the core concepts and mechanism behind
this technology. This article supports the usage of blockchain in business by stating some of
its major advantages. According to this article the blockchain technology provides a solution
to all the primary problem related to business. These include the interruption in the
communication, the troubles in transparency and reliability at the time of business transaction
(Filipova, 2018).
The second article, “The Impact of Blockchain Technology on Business Models in the
Payments Industry” states that unlike the older obsolete technologies, blockchain smoothens
the operations of a business organisation, which consequently influences the financial
structure of companies in the payment industry. It finds out that Blockchain primarily
launched as an systematic approach to payment transactions. This approach is based on
cryptography, which helps in avoiding the trust issues regarding the transaction between two
transacting parties. This article focuses on the impact of blockchain technology in the P2P
transaction, cross-currency transaction as well the cross-border transaction. This article also
highlights the disruptive power of this technology (Holotiuk, Pisani & Moormann, 2018).

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The third article, “Blockchain Token and the potential democratization of
entrepreneurship and innovation” defines blockchain as a distributed ledger us3d in a peer-to-
peer network to secure all the transactions. It has analysed all the potentialities of blockchains
like- democratising entrepreneurship by providing entrepreneurs new methods to increase
funds, engaging the stakeholders, making provision for innovation by providing the
innovators new techniques to deploy as well as defuse applications. It also states that the
blockchain technology does not ensure the success of the open-sourced business projects, this
technology may not be proved beneficial for the developers as well as the business
organisation due to its high cost of implementation (Chen, 2018).
The fourth article, “Blockchain Token and the potential democratization of
entrepreneurship and innovation” states that the blockchain technology has the potentialities
to change the world business environment. The process followed by this technology is
trustworthy. The technology is easily to implement. In fact, the transactions can be carried on
in an trustworthy manner even if the nodes of this network cannot maintain mutual trust. This
article has also focused on the challenges of implementing this technology. In case of a large
organisation, the challenge could be the size and bandwidth of the network. Again, a
congestion in the network may affect the process of transaction (Mendling, et al., 2018).
The fifth article “How Can Blockchain Technology Disrupt the Existing Business
Models?” has indicated all the dimensions of a business model, which may be affected by the
blockchain technology. It is true that, the business transaction may gain momentum if a
company adopt this technology but it may also face problems like- data lose, high
maintenance cost, hacking of the confidential data (Nowiński & Kozma, 2018)..

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Three most promising opportunities, which can be found from the above analysis are-
provision for a trustworthy business transaction, provision for innovation of new application,
provision for pace and efficiency in the operations of a business organisation.
Comparing the articles -“BLOCKCHAIN – AN OPPORTUNITY FOR
DEVELOPING NEW BUSINESS MODELS” and “The Impact of Blockchain Technology
on Business Models in the Payments Industry”, we may conclude that, both of them talk in
the favour of implementing this technology. It throws light on the opportunities, which this
technology may provide. These are the establishment of a network architecture that will allow
effective communication as well as secure transaction.
According to the third article, “Blockchain Token and the potential democratization of
entrepreneurship and innovation” implementation of this technology may cast upon both
positive as well as negative impacts, depending on the factors like congestion in the network,
the cost-bearing capacity of the organisation.
The fourth and fifth articles, “Blockchains for Business Process Management-
Challenges and Opportunities” and “How Can Blockchain Technology Disrupt the Existing
Business Models?” argues that, apart from the creating provision for innovation, this
technology may also create problems related to size and bandwidth of the network.
Moreover, the adoption of this technology may not be proved cost effective, confidential data
may be lost due to the interruption by the hackers.
In the conclusion, it may be stated that, in order to survive in this digital era business
organisations have to bring efficiency and pace in its operation. Blockchain technology is
capable of providing accuracy to the process followed in Business Process Model of an
organisation and accelerate all the business related activities. Hence the adoption of this
advanced technology is favourable.

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References
Chen, Y. (2018). Blockchain tokens and the potential democratization of entrepreneurship
and innovation. Business Horizons, 61(4), 567-575.
Emeraldinsight.com. (2019). The impact of the blockchain on the supply chain: a theory-
based research framework and a call for action | Supply Chain Management: An
International Journal | Vol 23, No 6. Emeraldinsight.com.
Filipova, N. (2018). Blockchain–An Opportunity For Developing New Business Models.
Holotiuk, F., Pisani, F., & Moormann, J. (2018). The impact of blockchain technology on
business models in the payments industry.
Mendling, J., Weber, I., Aalst, W. V. D., Brocke, J. V., Cabanillas, C., Daniel, F., ... & Gal,
A. (2018). Blockchains for business process management-challenges and
opportunities. ACM Transactions on Management Information Systems (TMIS), 9(1),
4.
Nowiński, W., & Kozma, M. (2018). How can blockchain technology disrupt the existing
business models?. Entrepreneurial Business and Economics Review, 5(3), 173-188.