The Promise and Prospects of Blockchain-Based Decentralized Business Models
Andranik Tumasjan
Abstract
Abstract The emergence of Bitcoin and its underlying blockchain technology have enabled novel solutions for creating, transacting, and validating digital assets. Inspired by these developments, a variety of project teams have been building blockchain-based “decentralized” business models (BDBM), marketplaces, and organizations. However, ambiguity and confusion exist around the meaning of “decentralized” in the context of blockchain technology-based business models in both research and practice. Moreover, the implications of BDBM’s mainstream adoption from a mass customers’ perspective are insufficiently understood. This article discusses and develops a two-dimensional framework explicating the notion of decentralization in BDBM. Based on this typology, the article analyzes the implications, prerequisites, and desirability of decentralization for BDBMs’ mainstream adoption.