The blockchain is redefining the way the data is collected and transmitted. The technology is reshaping our perception about trust, data sharing, and how the business will be conducted. The technology promises the ability to track in real time how the data is transmitted from one entity to another. Furthermore, the technology will foster the upraise of the sharing economy, which has already changed our perception about the traditional business model that is based on the traditional model of centralized organizations, where large operators, often with a dominant position, were responsible for providing a service to a group of passive consumers . This business model is giving in to more decentralized organizations, where large operators are responsible for aggregating the resources of multiple people to provide a service to a much more active group of consumers. This shift marks the advent of a new generation of “dematerialized” organizations that do not require physical offices, assets, or even employees . Several IT companies are operating within this business model and they have already disrupted several industries by allowing ordinary people to be part of the supply chain. For instance, Airbnb has allowed the resident to rent their place for a short period. This has created a high threat to the hospitality industry, which responded with a continuous significant price reduction or cuts and improves service quality. Uber and left, the ride-hailing companies, are another example that has changed the transportation industry, and they have helped control Taxi fares and broke the monopoly of many taxi companies even in areas with low population density.
|Company||Market Capitalization in $ Millions||Date established||Age||Number of employees||Market Capitalization by age in $ Millions|
To understand the financial implication of blockchain and the existing IT companies, we investigated the market capitalization by the age of some dominate firms within the financial market. We can divide these companies into four groups. The centennial firms: Ford, GM, & Toyota (the dinosaurs of the automobile). The second groups are firms that are in their forties, and we can find Microsoft and Apple (Operating systems). The third groups are in their twenties, and we can think of Google & Amazon (Software as a service, Platform as a Service). The last groups are in their preteen, and we find Uber & Lyft (Sharing economy). In this regard, Google, for instance, has increased its market value by $39 billion every single year, which is Ford current market value of $35 that Ford accumulated after 115 years. Although Uber and Lyft are not publicly traded companies, we were able to assess their market value by the sides funds the company received. One study assessed the market value of Uber to hit $120 Billion in a Possible IPO.
The Blockchain technology provides another level of flexibility that allows us to increase the trust in how data is shared and how value is exchanged among different stakeholders. The technology facilitates the exchange of value in a secure and decentralized manner, without the need for an intermediary. The key success of this technology is based on our willingness to embrace it, and use and assess its power in changing the existing business models. Blockchain can be our DNA fingerprint in generating data, but also, we can like it to how our neurological system functions.