Blockchain Technology and Its Transformative Impact on JP Morgan Chase

This report examines the impact of Blockchain technology on JP Morgan Chase, analyzing its effects through the lens of the Business Canvas Model. The introduction defines Blockchain and its characteristics as a distributed ledger, highlighting its resistance to data modification and its use in recording transactions. The report then delves into how JP Morgan Chase utilizes Blockchain, assessing its impact across customer segmentation, channels, customer relationships, cost structure, and revenue streams. The analysis reveals that Blockchain enhances loan security, expands customer reach, streamlines asset transfers, improves customer relationships through direct transactions and self-service features, and optimizes cost structures. However, it also notes the potential impact on traditional revenue streams due to decentralization. The report concludes by summarizing the benefits of Blockchain technology, emphasizing its convenience for customers and investors while acknowledging its effects on banking revenue models.

Running head: BLOCKCHAIN TECHNOLOGY AND IMPACT ON BUSINESS
Blockchain Technology and Impact on Business
Name of the Student
Name of the University
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1BLOCKHAIN TECHNOLOGY AND IMPACT ON BUSINESS
Table of Contents
Introduction......................................................................................................................................2
1. Understanding the Impact of Blockchain Technology on JP Morgan Chase using Business
Canvas Model..................................................................................................................................2
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

2BLOCKHAIN TECHNOLOGY AND IMPACT ON BUSINESS
Introduction
The Blockchain is an expanding list of records which are termed as blocks and which are
linked to one another through the use of cryptocurrency. Every block contains what is known as
a cryptographic hash of its previous block, transaction data and a timestamp. The Blockchain by
virtue of its design is resistant to the process of data modification. It is a distributed open ledger
which is capable of recording the transactions that are seen to take place between two or more
parties in an efficient, permanent and verifiable way (Crossby et al., 2016). When the Blockchain
is used as a distributed ledger, it is managed through the use of a peer to peer network that
collectively adheres to specific protocols for validating new blocks and for inter-node
communication. There are several international companies and organizations that are making use
of Blockchain technology, a well-example in this respect being JP Morgan Chase (Iansiti &
Lakhani, 2017). This report analyzes how Blockchain technology impacts the operations of JP
Morgan Chase and conducts this analysis with reference to the business canvas model as
propounded by Osterwalder and Pigneur in 2010.
1. Understanding the Impact of Blockchain Technology on JP Morgan
Chase using Business Canvas Model
The business canvas model as established by Osterwalder and Pigneur in 2010 is comprised
of five important dimensions, namely, customer segmentation, channels, customer relationships,
cost structure and revenue streams (Osterwalder & Pigeneur, 2010). The use of Blockchain
technology by JP Morgan Chase has been impact the bank’s operations significantly and this
impact can be judged using the five dimensions of the business canvas model. To begin with,

3BLOCKHAIN TECHNOLOGY AND IMPACT ON BUSINESS
Blockchain technology offers JP Morgan Chase with the opportunity to offer or sanction loans in
a more secure fashion, with personal loans now being offered to larger pools of customers and
with the loan process becoming far cheaper and far more secure and efficient compared to what
it used to be before (Pilkington, 2016). As a result, with regard to customer segmentation, JP
Morgan Chase is able to cater to a mass market of customers. More and more people can
apply for loans by JP Morgan Chase and have these approved in a secure and efficient manner
because of the use of Blockchain technology. The value proposition for customers is something
that is greatly increased after JP Morgan Chase adopted Blockchain technology to carry out its
operations. Blockchain has nullified the role of middlemen when it comes to asset right transfers
and it has also lowered exchange fees, thereby reducing the instability that is associated with
traditional markets and giving the bank and its customers a wider access to global markets
(Zheng et al., 2017). Selling and buying assets for bank customers is something that has now
become more efficient and more secure than what it was before (Yli-Hummo et al., 2017).
Customer relationships form a crucial component of the business canvas model, and it
is seen that through the use of Blockchain technology, JP Morgan Chase is able to manage its
customer relationships very well. Transactions can now be settled directly and it is possible for
customers to keep track of their transactions using SWIFT technology. R3 and Ripple are the key
Blockchain technological tools that are facilitating JP Morgan Chase to make transactions an
easy and convenient affair for customers (Mettler, 2016). Personalized assistance is greater now
than what it used to be before, and self service facilities made available as a result of the
Blockchain technological process has made customers more self-sufficient and self-reliant when
carrying out banking operations, especially personal transactions from their accounts at JP
Morgan Chase. Sending payments to people in particular is something that has been greatly

4BLOCKHAIN TECHNOLOGY AND IMPACT ON BUSINESS
facilitated by the Blockchain technology. JP Morgan Chase is now able to offer its customers
with low cost and high security ways of sending payments thereby cutting down the need or
requirement of verification from many third parties and the processing time for payments that are
associated with conventional bank transfers, is in this case totally done away with (Arsalian &
Fisher, 2019). Customer relationships are significantly strengthened by the Blockchain
technology utilized by JP Morgan Chase with the banking process having been made far more
quick, easy and secure compared to what it used to be even a few years ago. What has further
strengthened customer relationships through Blockchain technology is the fact that entrepreneurs
are now able to raise money through the sale of tokens or coins and by doing so, they can engage
in fund raising activities with any interference from a traditional VC or firm along with the due
diligence that is seen to accompany the investment made by such firms (Nofer et al., 2017).
The efficiency and security brought to banking transactions by Blockchain technology
such as quick and immediate payment transfers, personalized services, self-service facilities and
fast settlement of banking matters has made the whole process of banking with JP Morgan Chase
far more cost effective for customers than what it was before (Arshadi, 2019). Cost structure
also forms a vital component of the business canvas model and it is seen that banking with JP
Morgan Chase upon the bank’s incorporation of Blockchain technology has made banking
services far more feasible and cost effective for customers compared to what it was in previous
years. With regard to revenue streaming, this of course means that the money that the bank
could make from traditional transactions and services is now no longer a possibility. Apart from
earning through lending and leasing, given how easier and more secure the process of
sanctioning loans is now made through Blockchain technology, JP Morgan Chase is not able to
earn as heavily as it could from its traditional services and transactions because of the gradual

5BLOCKHAIN TECHNOLOGY AND IMPACT ON BUSINESS
streamlining and decentralization of the banking structure that has been facilitated through the
introduction of Blockchain technology (Arsalian and Fischer, 2019).
Conclusion
The use of Blockchain technology by JP Morgan Chase is certainly convenient for its
customers and investors with banking services having become largely automated and
streamlined. Yet the revenue earning capacity of banks has been severely hit because of the
decentralization associated with Blockchain technology, given that customers are now no longer
in need of conventional banking services due to the ease with which banking can now be done
using Blockchain technology.

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References
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Iansiti, M., & Lakhani, K. R. (2018). Managing Our Hub Economy. Harvard Business Review,
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