Blockchain Innovation Beyond Bitcoin and Banking

After the invention of bitcoin in 2008, the blockchain technology that underlies it has been shown to have a variety of applications within financial services and in digital applications beyond. While internet based currencies are feasible and sustainable, the experience of bitcoin shows that regulatory requirements are still needed. However, before regulators and other stakeholders adapt their practices, they await the outcome of what amounts to a high stakes, broad innovation race.Our study focuses on innovation around applications of the core protocol and on how building a private and secure version of the blockchain can operate safe and secure networks. The innovation race is characterized by four features: high levels of investment, a standards race, an effort to control the directions of diffusion, and new rules of the game that will be applicable to generating business models. 1) Whereas RD Visa is developing a “secure, scalable blockchain network” at a time when the payments industry is undergoing major transformation; IBM have connected blockchain to IoT and ran a “proof of concept” on their platform, Adept; In healthcare blockchain is regarded as a means to put patients in control of information while delivering a high level of trust. Similar applications are possible to voting and consultation systems within democratic organizations; Factom has reportedly partnered with the Honduras government on a program to record land ownership. Their goal is to reduce fraud and corruption associated with a government-controlled centralized registry.Our paper assesses such new business sectors where operations models can be altered by the use of blockchain and on identifying regulatory practices that might provide stimulus for this type of innovation.