Supporting the democratization of platforms
The Internet Protocol (TCP/IP) has enabled tremendous innovation potential and created the platform economy due to digital information transfer. Through transparency and a reduction in transaction costs, new business models have emerged which address customers with superior user experiences. However, network effects and information asymmetry have created dominant platforms and quasi-monopolistic market structures.
Distributed Ledger Technologies (DLTs), such as Blockchain, provide a high potential for new business models through data sovereignty and disintermediation, and hence democratize the platform economy. To enable such a process of democratization, effective governance models and an understanding of the business model mechanisms are required.
Together with Siemens, a research cooperation was initiated in July 2018 to explore DLT-based business models and DLT governance mechanisms. The goal is to derive management implications to contribute to the democratization of the platform economy.