Token-Exchanges as a Mechanism to Create and Scale Blockchain Platform Ecosystems
45 Pages Posted: 24 Dec 2019
Date Written: August 9, 2019
Building ecosystems is a highly complex endeavor. With the rise of new blockchain platform ecosystems, so-called token exchanges emerged as new mechanisms to facilitate the creation and scaling of these ecosystems. To examine these mechanisms in further detail we employ an exploratory, single case study on the case of Ethereum and draw on boundary resources theory as a theoretical lens to analyze the case. Our results suggest that token exchanges act as boundary resources that facilitate the creation and scaling of platform ecosystems thereby eliciting new types of network effects. They do so through known boundary resources such as monetizing and resourcing. Moreover, tokens allow also new boundary resources such as sharing, attracting and coordinating that elicit new types of network effects that are crucial for the success of developing new platform ecosystems.
Keywords: Blockchain, Token Exchanges, Platform Ecosystems, Network Effects
JEL Classification: O33, M15
Suggested Citation: Suggested Citation