What if selling your house would be as easy as sending an email? Big chance you would not believe that this will become reality in the near future. But blockchain makes is possible, at least technically. When internet started nobody could imagine, that it once would be possible to operate Spotify on internet. As Halfdan Mahler, former director World Health Organisation once said: “What sounds idealistic today becomes realistic tomorrow”. But from ‘today’ to ‘tomorrow’ is a long and difficult road where leadership and management can play an important role. It is important that they take time to understand blockchain: what is it, why is it important and what can you do with it (and what not)?
So leadership is a key stakeholder in blockchain and the bigger picture that is digital transformation. Will they act pro- or reactive? Will they be ambassadors or resistors of change? Will they give up some autonomy and believe in decentral decision making? One thing is clear: leadership and management must innovate more fundamentally then they did till now, especially in organization models. You could say that the real challenge is the reinvention of an outdated organization model combined with traditional leadership. Technology is not the problem.
Internet makes it possible to send a message in a secure way from sender to receiver. But basically every time you send a message, you make a copy. The email you send is in your ‘out-box’ and in the ‘in-box’ of the receiver. We find it okay to copy information when we send hundred carbon copies of an email. But when I, as a sender, have to pay you and your neighbor each twenty euro and a make a photo of a twenty-euro bill and email it to you and your neighbor with the remark: ‘it is payed for’, you probably will say: ‘that is not okay’. We find it not okay to copy money, or more general: values. And the receiver probably also wants to know, whether or not, the sender is the rightful owner of the twenty euro bill. So basically, blockchain adds two import functions to internet that already has secure transport from sender to receiver in its protocol. These two functions are: are you the owner of the value you want to send and do you send it only once? A blockchain secures these three important value transaction characteristics.
Blockchain can be regarded as the next phase or an additional layer on the internet: a layer of value and trust. With the internet we can share information without any significant friction. Sending e-mails (bits & bytes) costs almost nothing. With blockchain technology you can transfer values (also bits & bytes) from supply to demand without irrelevant third parties, without any significant transaction costs. This does not just apply to selling and buying a house, but also for other products and services. To bring supply and demand together against the lowest possible costs is not just the essence of organizing work, but also the essence of organizing our economy.
You might know blockchain from Bitcoin, but Blockchain Organizing goes much further than just digital money. It is a fundamentally new way of organizing supply and demand of data. Blockchain Organizing is about embedding a disruptive technology into a fundamentally new organizational model. Blockchain Organizing is a way to organize almost friction less and therefore highly efficient trust, work and economics.
There are many applications for blockchain technology: from tracking your e-portfolio or patient file, to buying a house. Almost everything that has value and can be transferred from provider to customer, can be registered on a blockchain. According to Weconomics, the technique is not primarily important, but the problem you want to solve and the design with which you organize supply and demand. Weconomics is mainly occupied with ‘Blockchain by Design’, a concept that assumes that you can better start a new organization and transfer existing processes to this new organization. You then have less problems with legacies and old IT systems.
Blockchain Organizing is not technical or difficult. It mainly requires a different way of thinking and organizing. If you are on time, you can play a key role in this. Deepen yourself in Blockchain Organizing means taking a lead on your competitors..
Do you want to know more? Read one of our books, blogs or media-articles for example. You can also deepen your knowledge by attending one of our master classes or training course (Blockchain Academy) or become member and get access to the Blockchain Organizing Center of Knowledge (BLOCK) For an up-to-date overview of our training courses, master classes and lectures click here.