Information Systems for Business and Beyond (2019)

the desire to remove the middleman (lawyer, banker, broker) from transactions, making them more efficient and readily available across the Internet. Blockchain is already being used to track products through supply chains. Blockchain is considered a foundational technology, potentially creating new foundations in economics and social systems. There are numerous concerns about Blockchain and its adoption. Consider the following: • Speed of adoption . Initially there is a great deal of enthusiasm by a small group. However, adoption on a larger scale can take a great number of years even decades for a worldwide acceptance of a new method of doing business. • Governance . The banking sector, both in individual countries (U. S. Federal Reserve System) and the world at large (the International Monetary Fund), controls financial transactions. One purpose of these organizations is an attempt to avoid banking and financial systems collapse. Blockchain will result in the governance of financial transactions shifting away from these government-controlled institutions. • Smart contracts . The smart contract will re-shape how businesses interact. It is possible for blockchain to automatically send payment to a vendor the instant the product is delivered to the customer. Such “self-executing” contracts are already taking place in banking and venture capital funding. 1 Many are forecasting some universal form of payment or value transfer for business transactions. Blockchain and Bitcoin are being used to transform banking in various locations around the world.

Information Systems for Business and Beyond (2019) pg. 123

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