The survival of any organization depends on its ability to outperform competitors and marketplaces in attracting and rewarding talent, ideas and capital. As communication and transaction costs have drastically declined because of the internet, new platforms have emerged, delivering goods and services at a speed and efficiency previously unimaginable.
In the fall of 2014 my colleague Catherine Tucker and I conducted a large-scale experiment at MIT, in which 4,494 undergraduate students were offered access to bitcoin. The vast majority of students ended up hoarding the cryptocurrency, in the expectation that it would increase in value. Initially distributed to the students at $350 per bitcoin, the digital currency is now worth more than $1,100 per bitcoin, suggesting that many of the students realized that one of bitcoin’s first use cases would be speculation.
After eluding close inspection by most business leaders outside of the tech and financial sectors, blockchain technology has recently taken center stage in the conversation about management’s digital makeover. Indeed, many believe the impact of blockchain on the ways organizations function and produce value may be greater than the technologies that have grabbed most of our recent attention — data and analytics, the cloud, even artificial intelligence.