Blockchain in startups - A case study on the impact of blockchain on the business model of startup-companies in Norway

Abstract

Blockchain based technologies and companies have been on the rise the last decade with much hype surrounding this topic. It has been promoted as a revolutionary technology that is capable of more than just sending and received digital assets. It has the possibility to lead to innovation in the creation of new product and technologies. Blockchain has in many ways outgrown what Satoshi Nakamoto initially published in the first paper in 2008. Research looking at how this technology affect businesses from a non-technical perspective has on the other hand been scarce. Especially regarding how it affects the business models of startup companies. The purpose of this study is to explore how startup companies use this technology and what impact it may have on their business model. A case study was conducted where five startups company founders based in Norway were interviewed. Findings suggest that many companies need to spend much time and resources developing products from the ground up, as there is a lack of established product chains. This can be attributed to the immature nature of the technology. Some time and effort also has to be spent communicating the value to the, as this might appear unclear. Revenue structures are mostly based on “traditional” models, but many companies are looking at alternative models such as micro-payments. If alternative payment models that use blockchain are still viable, remains to be seen. The research also discovered that there might be some resentment from people outside the blockchain community, because of negative perceptions about the technology. However, the founders themselves are very positive. There also seems to be a divide between open and closed blockchains that can be interesting to take a closer look at. This study contributes to the overall literature in this field by both confirming and challenging some of the existing views. Most notably, it discusses new findings that need to be explored further in the context of startups, blockchains, and business models.