Swapping the underlying technology of crowdfunding contracts for blockchain – the perspective of Roger's five perceived attributes of innovation

Abstract

Blockchain is projected to become essential in crowdfunding. However, diffusing this innovation in crowdfunding contracts raises practical concerns. Consequently, using data from a semi-systematic review, we develop a framework focusing on crowdfunding parties and the five perceived attributes of innovation diffusion to evaluate the possibility of diffusion in crowdfunding. Employing thematic analysis, we identify two possible modes for blockchain application in crowdfunding. Results indicate the technology offers superior relative advantage and compatibility for contracting parties. Nonetheless, fundraisers and investors could have potential diffusion complexities because of limited knowledge. Platforms face uncertainties over the degree of mediation and regulatory compliance. Further, trialability and observability issues cast doubts on the potential switch. Therefore, advanced stakeholder engagement and blockchain regulatory reform is required to expedite this switch.

Keywords: Blockchain crowdfunding innovation fundraisers investors platforms

JEL Classification: G23