Chapter 14 Disruptive Innovations: Blockchain and Spinoffs

Abstract

Blockchain is creating many opportunities for business as it is transforming the way sustaining technologies operate in organizations. In blockchain, transactions are recorded as digital blocks and contain immutable properties to preserve data validation, encryption, and algorithms. The goal is to provide uniqueness and resistant to fraud. For example, digital currencies use a shared network to permanently record transactions but operate in decentralized mode to secure independence among participants. The potential applications of blockchain are unlimited and proliferating although several initiatives are still in development. Many industries are already capitalizing on experimental blockchain projects. Leaders in those industries are partnering with R&D and start-up companies to determine opportunities. Also, research universities have dedicated labs to focus on new theoretical concepts or improvements that can be leveraged in healthcare, global rights management, and decentralized publishing to name a few. Blockchain is called as “trustless system” because it can disrupt entire industries. This chapter explores the blockchain origins and its underlying technologies to understand concepts and become familiar with the latest development. A crypto-digital currency like Bitcoin will be introduced in some detail to bring awareness to the benefits, risks, and ethical concerns. A discussion on regulations will be included to investigate how government policy affects cryptocurrencies and related security. In the interest of blockchain inspired projects, the chapter will also introduce a broader discussion on new ventures adopting blockchain attributes and the trends of gradual technology implementation among early adapters.