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  • January–February 2017
  • Article
  • Harvard Business Review

The Truth about Blockchain

By: Marco Iansiti and Karim R. Lakhani
  • Format:Print
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Abstract

Contracts, transactions, and records of them provide critical structure in our economic system, but they haven’t kept up with the world’s digital transformation. They’re like rush-hour gridlock trapping a Formula 1 race car. Blockchain promises to solve this problem. The technology behind bitcoin, blockchain is an open, distributed ledger that records transactions safely, permanently and very efficiently. For instance, while the transfer of a share of stock can now take up to a week, with blockchain it could happen in seconds. Blockchain could slash the cost of transactions and eliminate intermediaries like lawyers and bankers, and that could transform the economy. But, like the adoption of more Internet technologies, blockchain’s adoption will require broad coordination and will take years. The authors describe the path that blockchain is likely to follow and explain how firms should think about investments in it.

Keywords

Technological Innovation; Technology Adoption; Information Management; Information Technology Industry

Citation

Iansiti, Marco, and Karim R. Lakhani. "The Truth about Blockchain." Harvard Business Review 95, no. 1 (January–February 2017): 118–127.
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About The Authors

Marco Iansiti

Technology and Operations Management
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Karim R. Lakhani

Technology and Operations Management
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More from the Authors
  • How Status of Research Papers Affects the Way They Are Read and Cited By: Misha Teplitskiy, Eamon Duede, Michael Menietti and Karim R. Lakhani
  • Potentially Long-Lasting Effects of the Pandemic on Scientists By: Jian Gao, Yian Yin, Kyle R. Myers, Karim R. Lakhani and Dashun Wang
  • Customer-Centric Design with Artificial Intelligence: Commonwealth Bank By: Karim R. Lakhani, Yael Grushka-Cockayne, Jin Hyun Paik and Steven Randazzo
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