Private Equity and Innovations in Blockchain

Applications in Financial Services

Authors

  • Robert Wolf Winona State University
  • Dale Domian York University

DOI:

https://doi.org/10.20525/ijfbs.v11i2.1485

Keywords:

blockchain, decentralized ledger, financial services, private equity

Abstract

Advocates of blockchain claim widespread impact will be forthcoming shortly. However, the path of innovation in blockchain is uncharted. Investors will assess where blockchain innovation will profit first and most. The timing and impact of each blockchain innovation is a key consideration for business managers. Link, Ruhm, and Siegel (2014) suggest private equity investments forecast which innovations are likely to succeed. Previous research on private equity gives insight on why that ownership structure is especially successful. Private equity investments are collected for two periods and categorized according to basic blockchain components, basic cryptocurrency payment components, and decentralized applications, particularly applications in financial services. The results suggest investors have acted prudently, investing strongly in building blocks, payment systems and fundamental applications, showing a primary emphasis on refining blockchain and realizing standard blockchain protocols before investing in highly complex applications. Further, financial services applications dominate, suggesting investors see financial services as far and away the most likely industry for imminent deconstruction.

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Author Biography

Dale Domian, York University

Finance Professor

School of Administrative Studies

York University

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Published

2022-06-27

How to Cite

Wolf, R., & Domian, D. . (2022). Private Equity and Innovations in Blockchain: Applications in Financial Services. International Journal of Finance & Banking Studies (2147-4486), 11(2), 109–117. https://doi.org/10.20525/ijfbs.v11i2.1485