The Role of Blockchain Technology in Transforming Business Processes

This essay explores the applications of blockchain technology in business, addressing its potential to transform internal processes and interactions within business value networks. It discusses the value drivers, including decentralized payments, asset tracking, and data sharing, and examines the opportunities for business transformation, such as customer engagement and microtransactions. The essay also evaluates whether blockchain is a disruptive technology, considering its challenges in scalability and widespread acceptance. Finally, it highlights Deutsche Bank's initiatives in exploring blockchain technology and its potential benefits for the financial sector. Desklib offers a wide range of resources, including past papers and solved assignments, to help students further explore this topic.

Running head: BLOCKCHAIN TECHNOLOGY
Blockchain Technology
Name of the Student
Name of the University
Author’s Note

1BLOCKCHAIN TECHNOLOGY
Table of Contents
Answer to Question 1..........................................................................................................2
Answer to Question 2..........................................................................................................2
Answer to Question 3..........................................................................................................3
References............................................................................................................................5

2BLOCKCHAIN TECHNOLOGY
Answer to Question 1
The concept of Blockchain is associated to maintaining list of records through data
packets known as blocks. The use of blocks is seen to be evident in cryptography. The individual
blocks are seen to be consisting of cryptographic residue or hash of previous block. The
transaction data and the timestamp in is usually represented as Merkle tree root hash. The use of
such a technology is depicted to be resistant to modifications in a data. This relates to creating
open, distributed ledger which may be used to record transactions among two parties in an
efficient manner (Buchanan and Naqvi 2018).
The value which can be created with the application of this technology relates to potential
benefits of the internal process and the interactions with the business value network. The primary
drivers of the value created with the blockchain technology is identified with allowing for
decentralized payment which eliminates the need of the middlemen. It also serves the purpose of
asset tracking, data sharing and cloud offerings. The transformation of the business through such
a technology relates to customer engagements, microtransactions and creating new synergies in
the markets. Some of the opportunities of this technology in the business will be depicted with
funding, accessing to data, crowd collaboration and self-governed organizations. Moreover, the
effectiveness of integration of such a technology is apparent in areas of distributed ledger,
cryptocurrencies and bitcoin (Casey 2018).
Answer to Question 2
Blockchain is not considered as a disruptive technology despite of its relevance in the
areas such as supply chain, P2P payments, provenance of raw materials and cross border
payments. The technology may be further having a considerable impact on the economic and
social lives. In the early stages the technology needs to be relied on an appropriate infrastructure

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which is agreed on the widespread acceptance. The ideation of decentralized database linked
with cryptography is the future. However, in order to become the technology as disruptive it will
take 10-15 years for significant potential of the same in the business. The present application of
this technology is seen to be evident in form of “decentralized applications (DAPPS)” at the
early stages of operations. The consideration of such a technology will be able to solve the
relevant business and social problems however the feasibility is minimized with the increasing
number of frauds in the market (Harvard Business Review 2017).
The trade with cryptocurrency is also seen as a gamble in case of less liquid currency. It
can be easily manipulated. Moreover, some of the technical challenges are further evident with
scalability and the technology itself. Additionally, due to the process of validating bitcoin needs
10 minutes for the individual which is long time to execute the operations. The execution of the
processes with the use of block chain technology is not disruptive as it may affect traditional
business model with lower cost solution (Treleaven, Brown and Yang 2017). This situation can
be easily taken over by low-cost solution. The blockchain technology is also inferred with the
use of traditional business model which is seen with lower cost solutions for taking over the
foundations in the economic and social systems. However, with the consideration of the time
taken for the implementation it cannot be considered as disruptive technology (Michael
Trüschler 2018).
Answer to Question 3
The recent initiatives by Deutsche bank has been able to discuss about the relevant
benefits taken from p2p networks like bitcoin. The traditional banks need not rely on the
regulators who are seen to be relying on the active experiment relying on the new technologies.
The blockchain technology was initially published by Deutsche bank at the end of July. The
main initiative incorporated by the block chain technology is evidenced with the support of

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altcoins. The key decisions made by the Deutsche bank can be depicted with the true power
behind peer to peer application in several sectors of the bank. Moreover, Deutsche Bank
Research is depicted in terms of the macroeconomic analysis as per tracking of trends
represented with opportunities and risk. The financial service giant is further considered with
new publications and analyzing the applications for the distributed ledgers and blockchains.
Some of the other initiatives associated to the block chain technology by the bank can be directly
inferred with seeking to build on popularize the technology. Moreover, the consensus of the
block chain technology is relying on the bitcoin mooning. Therefore, the bank has defended its
application as disruptive in nature especially in the FinTech sector (CoinDesk 2015).

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References
Belle, I., 2017. The architecture, engineering and construction industry and blockchain
technology. Digital Culture, pp.279-284.
Buchanan, B. and Naqvi, N., 2018. Building the Future of EU: Moving forward with
International Collaboration on Blockchain. The JBBA, 1(1), p.3579.
Casey, M., Crane, J., Gensler, G., Johnson, S. and Narula, N., 2018. The Impact of Blockchain
Technology and Finance: A Catalyst for Change. Geneva Report on the World Economy, (21).
CoinDesk. 2015. Deutsche Bank: Blockchain Can Help Banks Defend Business Models. [online]
Available at: https://www.coindesk.com/deutsche-bank-blockchain-can-help-banks-defend-
business-models [Accessed 3 Dec. 2018].
Harvard Business Review. 2017. The Truth About Blockchain. [online] Available at:
https://hbr.org/2017/01/the-truth-about-blockchain [Accessed 3 Dec. 2018].
Michael Trüschler, C. 2018. Is Blockchain Really A Disruptive Technology?. [online] Forbes
Middle East. Available at: https://archives.forbesmiddleeast.com/en/is-blockchain-really-a-
disruptive-technology/ [Accessed 3 Dec. 2018].
Treleaven, P., Brown, R.G. and Yang, D., 2017. Blockchain Technology in Finance. Computer,
(9), pp.14-17.
Wright, A. and De Filippi, P., 2015. Decentralized blockchain technology and the rise of lex
cryptographia.