Demystifying Blockchain: A New Wave of “Creative Destruction” or Hype?

Abstract

Much confusion surrounds the newly emerged blockchain technology—from critics denouncing it as the most over-hyped and least useful technology of all time, to others who consider it a panacea capable of saving the world. The goal of this thesis is to reconcile these differences and explore real-use cases of how blockchain technology stacks up against a systematic framework of disruptive innovation. I conducted two distinct case studies—one each in the private and public sectors—and this thesis evaluates the technological features, marketplace dynamics, and external factors of the two blockchain companies. Brave Technologies attempts to disrupt the internet browser market, while BitFury provides a blockchain-based land title technology offered to the country of Georgia. This research study shows that blockchain technology does indeed demonstrate some of the key features of a disruptive innovation, such as novel ownership, simplification, and value networks. I also discuss other long-term implications of blockchain technology, including its impact on disintermediation, transparency, and trust.