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How Blockchain Will Change Organizations (((Raising Capital, disrupt t…
How Blockchain Will Change Organizations
1º distributed: runs computers provided by volunteers, there is no central database
2º public: Anyone can view it at any time, resides on the network.
3º encrypted: heavy-duty encryption - maintain security.
Advantages
BC represented - transactions recorded in a global ledger, leverages resources of a large peer-to-peer network to verify & approve transactions.
transform businesses organized & managed
eliminate transaction cost
use resources out-in side easily
*Vertical integration make sense leading strengths throughout the supply chain
Human Resources and Procurement
staff learn how to query the blockchain specific questions
Finance & Accounting
Sales and Marketing
Legal Affairs
smart contracts
Raising Capital
disrupt t global financial system works and change nature of investment.
NY Stock Exchange invested Coinbase Inc., SF Ca.
Nasdaq Stock Market
Transaction Costs
1937 “The Nature of the Firm,” eco Ronald H. Coase costs associated with organizing production through the open market
searching relevant prices negotiating # contracts.
expand internally until cost performing & additional transaction in organization = cost using the open market.
1976 Jensen & Meckling “agency costs,” which are the costs associated with decisions - not optimal
planning - costs coordination. Freeing industries accounting, commercial banking, and even music to consolidate assets and operations.
MITSloan Management Review
Don Tapscott Alex Tapscott
platform people
work together persistence and stability of an organization without hierarchy.
NY
Identifying people interested in the BC technology
IT - technology’s implications, buy bitcoin, and experiment purchasing inexpensive items
identify companies
visit their operations and talk with people involved,
invite experts to meet with the team.
ledger
secure platform
database
Internet Value
buyers & sellers, store and exchange value without the need for trad. intermediaries
Often charge fees
Intermediaries use servers crashes, fraud, and hacks.
Effects nature of companies
Technology digital currencies - bitcoin- blockchain
Funded and managed, create value, marketing, accounting, incentivizing people
Eliminate management functions
Internet was designed to move information — not value
