Blockchain provides new business models that can transform existing models. Some key models include: - Token economies where tokens power functionality and enable value exchange within an ecosystem. Utility tokens exemplify this. - Blockchain as a service allows businesses to outsource technical blockchain aspects while focusing on front-end development. - Blockchain development platforms empower developers to build decentralized applications that require tokens to access network resources and provide value to users.

1. Blockchain & Business
A Deep Dive into Business Architectures and Domain Models

2. Blockgeeks
https://blockgeeks.com/guides/understand-blockchain-business-models/
101 Blockchains
https://101blockchains.com/blockchain-business-models/
Convective
https://medium.com/coinmonks/blockchain-as-a-business-model-ed4de3c91763
University of Oslo
https://www.duo.uio.no/bitstream/handle/10852/63896/Blockchain-business-models.pdf
Enrico Ferro, Michele Osella, Ricardo Rastagana
https://www.slideshare.net/s2pisco/business-models-for-blockchainbased-ventures-106439896

3. Defining a
Business Model
A business model is a fancy term used to explain the
plan/strategy that the company has to generate profit
by selling a product or service. The business model
provides an outline of the plans of the company to
produce a product or service and to market it.

4. • Even though the business model has a focal
focus in the business, its boundaries goes
beyond those of the firm.
• Business models explain how companies do
business in a holistic way.
• The activities of the focal company and its
partners is a central part of the business
model.
• In addition to value creation, business models
also explain value capture.

5. • A business model consists of three main categories of
components: strategic components, customer and market
components, and value creation components.
• The main categories are divided into subcategories. The
strategic components are strategy model, recourse model and
network model.
• The customer and market components consist of customer
model, market offer model, and revenue model.
• The value creation components consist of a manufacturing
model, a procurement model and a financial model.
• Although the components in the business model are presented
as separate units, they should be viewed as interrelated.

7. • They essentially provide service or goods and earn profit
from there. The consumers buy the product or the
service at a prescribed rate.
• The rates are set accordingly and consist of all the
wages or other expenses that the business have or
might have during the process of providing the service or
product.
• Each business has a different way of handling the
business. However, they use a basic centralised model.
• The model consists of four main entities. It includes the
owners or the shareholders, the organisation, the
customers and the employees.

8. Understanding
Blockchain
A blockchain is, in the simplest of terms, a time-
stamped series of immutable record of data that is
managed by a cluster of computers not owned by any
single entity. Each of these blocks of data (i.e. block)
are secured and bound to each other using
cryptographic principles (i.e. chain).

15. • Blockchains are trust-less; they assume
compromise by both insiders and outsiders.
• Blockchains are transparently secure; they do not
rely on failure-prone secrets, but rather on a
cryptographic data structure that provides a
secure foundation on which to add additional
security protocols.
• Blockchains are fault tolerant; they use algorithmic
consensus mechanisms to align the efforts of
honest nodes to reject those that are dishonest.

16. • Blockchain itself is a new business model.
• With blockchain, organizations can turn
their business into decentralisation
platform which can alter how their
business works.
• It changes the entities, the flow of
transactions, profits and also ensuring that
growth is maintained during the change.

21. • With blockchain, organisations can turn their
business into decentralisation platform
which can alter how their business works.
• It changes the individual elements, the flow
of transactions, profits, and also ensures
growth. To succeed properly, these models
should make sure that they are benefitting
both the company’s employees and end
users.

23. • You can store data inside the
blockchain which can’t be tampered
with.
• Many companies have leveraged the
blockchain’s transparency to boost the
functionality of their supply chains.
• Many have integrated the blockchain
with artificial intelligence to create their
own decentralised AI model.

27. • As per the theory of disruptive innovation, Blockchain partially
can be considered a disruptive technology.
• Further, blockchain affect all dimensions of Osterwalder ́s
business model framework.
• The most significant affect is blockchains ability to change the
power structures between producers and users.
• Blockchain enables digital ownership, and empowers its users
by involving them in the value production of products and
services.
• The Business Model Canvas has through the study proved to
be an insufficient tool for constructing blockchain business
models.

33. Token Economy
Blockchain as a Service
Blockchain Development Platforms
Blockchain Software Products
Blockchain Network
Blockchain Professional Services
Blockchain P2P Business Model

34. • The utility token model drives the functionality
in their business via the use of the tokens.
• Ripple and Stellar are great examples of these
kinds of models. The banks who are part of
their network can facilitate fund transfer via the
use of the XRP or XLM tokens.
• As per William Mougayar, token utility has
three important properties: Role, Features, and
Purpose

35. • Rights -
• By taking possession of a particular token, the holder
gets a certain amount of rights within the ecosystem.
• Value Exchange -
• The token creates an internal economic system within the
confines of the project itself.
• The tokens can help the buyers and sellers trade value
within the ecosystem.
• The creation and maintenance of individual, internal
economies are one of the critical functions of tokens

36. • Toll
• Tokens can act as a toll gateway for specific
functionalities of a particular system. In Golem,
you need to have GNT to gain access to the
benefits of the supercomputer
• Function
• The token can also enable the holders to enrich
the user experience inside the confines of the
particular environment. Brave Browser and Brave
Access Tokens are examples of this.

37. • Currency
• Token can be used as a store of value
which can be used to conduct transactions
both inside and outside the given
ecosystem
• Earnings
• Helps in equitable distribution of profits or
other related financial benefits among
investors in a particular project.

38. A token is classified as security when there is
an expectation of profit from the effort of
others.
If the Initial Coin Offering doesn’t follow
specific regulations, then they could be
subject to penalties.
However, if all the rules are properly met,
then these tokens have immensely powerful
use-cases.

39. • At its very essence, a security token is an investment
contract which represents legal ownership of a
physical or digital asset like real estate, ETFs, etc.
• This ownership must be verified within the
blockchain. After the ownership is verified, security
token holders can:
• Trade away their tokens for other assets
• Use them as collateral for a loan
• Store them in different wallets

40. • The Blockchain-as-a-Service (BaaS)
model provides a service where a
business’ clients can outsource all the
scary backend stuff while focussing only
on the frontend.
• BaaS vendors provide services like user
authentication, database management,
remote updating, and push notifications
(for mobile apps), cloud storage, and
hosting.

41. • Blockchain ecosystem can grow only by attracting more developers
and engineers to build decentralised apps and app based
economies
• Developers create following type of decentralised applications
• Authentication
• Authorisation
• Registration
• Record Management
• Track and Trace
• Secure Storage

42. • This is a fundamental business model that these
development platforms use.
• When you create a Dapp on Ethereum, you will need to
pay “gas fees” which is like a toll tax that allows you to
use the platform.
• In NEO you need to pay for your Dapp with GAS tokens.
• This is not just applicable to the platforms, even Dapps
can charge a nominal network fee.
• In Golem, you need to have GNT (golem tokens) to gain
access to the benefits of the Golem supercomputer.

56. Regulatory Sandboxes
Benchmark Sandbox
Interoperability Sandbox
Business Model Sandbox
Scalability Sandbox
Security Sandbox
Infrastructure Sandbox
Protocol Sandbox
Governance Sandbox
Permissioned Ledger Sandbox
Private Chain Sandbox
StartUp Ecosystem Sandbox

57. UK Financial Authority Regulatory Sandbox
Canada Government Sandbox
JP Morgan Blockchain Sandbox
SITA Aviation Blockchain Sandbox
Japan Blockchain Sandbox
Brail Financial Authority Sandbox
FCA Regulatory Sandbox
ICAO Blockchain Sandbox

60. –Buckminister Fuller
“You never change things by fighting the existing
reality. To change something, build a new model
that makes the existing model obsolete”