Blockchain Tokens and the Potential Democratization of Entrepreneurship and Innovation
22 Pages Posted: 25 Oct 2017 Last revised: 26 Jun 2018
Date Written: October 25, 2017
Over the past few years, Bitcoin has emerged as the first decentralized, global currency. The rise of Bitcoin has brought attention not only to digital currencies but also to the underlying technology empowering digital currencies—blockchain technology. A blockchain is a distributed ledger that records and secures transactions in a peer-to-peer network. Besides empowering digital currencies, blockchain technology has given innovators the capability of creating digital tokens to represent scarce assets, potentially reshaping the landscape of entrepreneurship and innovation. Blockchain tokens may democratize entrepreneurship by giving entrepreneurs a new way to raise funds and engage stakeholders. They may democratize innovation by giving innovators a new way to develop, deploy, and diffuse decentralized applications. Blockchain technology and tokens have sparked a new wave of innovation, which may start to revolutionize entrepreneurship and innovation.
Keywords: blockchain tokens; initial coin offerings; token sales; crowdfunding; open innovation
JEL Classification: L26; E42
Suggested Citation: Suggested Citation