Applying blockchain technology in multi-sided platforms to enable business model innovation

Abstract

The competiveness between businesses is continuously increasing and multi-sided platforms seek to reduce cost, increase efficiency and improve the quality of products and services. This research explored the role of blockchain technology as a driver for business model innovation of multi-sided platforms. This case study contributed to scientific literature by analysing how blockchain technology can be used by multi-sided platforms. The interview results were used to design a decentralized business model for Peerby. This business model facilitates the sharing of goods between individuals. The research outcomes reveal that multi-sided platforms can use blockchain technology as a driver for business model innovation. Business models need to be both viable and feasible to function in a market. However, the early stage of development of blockchain technology comes with barriers for large-scale diffusion. Therefore, a business model stress test workshop was organized that revealed how uncertainties, relating to market, society and regulation, affect the decentralized business model. The research outcomes are relevant for peer-to-peer multi-sided platforms within the sharing economy. This case study could be used as a framework for a whitepaper that describes how multi-sided platforms intend to use blockchain technology to benefit their users. This research takes a novel approach to business modelling research, which will be introduced as business model decentralization.