Blockchain: Risk Analysis Issues, Potential and Opportunities

Abstract

The purpose of this thesis is to first give a fundamental understanding of blockchain technology. And secondly, to look at opportunities blockchain technology has within various industries. Additionally, I am seeking to understand the risk introduced in blockchain implementation and the challenges posed in a risk analysis. Blockchain technologies are decentralized distributed ledgers that underlie the technology and infrastructure for Bitcoin and other cryptocurrencies. The main aspects of blockchain technology is its decentralized, transparent, immutable, encrypted, and robust nature. Risk analysis’ main purpose is to describe, present, and understand risk in a systematic and informative way, to support a decision-maker. Where risk analysis issues are determined by assessing the strength of knowledge and the understating of associated uncertainties. A model for inhibitors of disruptive innovation capabilities is used to evaluate the challenges of implementing blockchain. This is done to identity challenges (new risk and high uncertainty) that implementation of blockchain brings to whatever filed or industry it is introduced into. There are many issues within the technology that must be further explored and troubleshooted before the commercialization of blockchain is viable. Because of this, further developing of the technology and growing of a strong knowledge base will result in a reduction of associated risk. This untimely enabling blockchain technology to be feasibly introduced into multiple fields.