Platform ecosystems and blockchain technologies - can they stimulate growth in developing countries?

Abstract

The thesis is aimed to highlight the opportunity of how platform economies and blockchain technologies can positively stimulate growth in developing countries. This chapter collects the key findings and argues why the thesis becomes a relevant contribution to the field. The first part presents an overview of general challenges developing countries facing and looks behind underlying patterns, what hinders growth and development. Often, citizens have to live with underfinanced and corrupt governmental systems, what are pushing them to start creating their own, so called informal sub-systems, where they work, paying rents and taxes. There, however, they are often exposed to the arbitrariness of the ruling local elites. A corrupt land titling system prevent citizens from owning and trading land and use it for getting a loan. This is one the reasons why people often don't get access to a bank account and are being unbanked because of the missing legal status and high costs. The challenges are often grounded missing standards and corrupt and weak institutions. Private companies, NGOs and aid organisations are filling these gaps and needs with their own approach, what is often criticized. On the other site, the access to internet and communication services is often easier available than the access to clean water. More and more services moved over to the telecommunication services and internet, what leapfrogged many existing institutions. The second part focuses on platform ecosystems and blockchain technologies. Here, the reader can have an overview of the technology, its services and its underlying functionality and potential. The advantages of platform economies and also its disadvantages will be analyzed. Centrality and their business models based on selling private data and user behavior often attracted criticism what leads to blockchain technologies. They can provide a direct answer to the challenges of platforms. Through its analysis of the technical features the reader will see that for instance, smart contracts can replace many third-party intermediaries like notary services. Blockchain's inherent design of cryptography and its decentralization and its scalability can enrich or even replace many of the public sector services. The third part will show on best-practise examples and cases, how private companies, startups and aid organisations using these technologies for triggering growth in different forms of capital beyond financial capital. The cases are categorized in four sectors, who are: Public sector, Financial sector, business sector and the Sustainability / Charity / Aid Sector. The technology's inclusiveness is able stimulating peace processes and breaking down prejudices between hostile groups. It can address the needs of people, parties, and businesses down to micro-granular levels, that they will be able to help themselves. This will result in a robust society with increased levels of trust, where innovation and competitiveness can act freely. Several use cases showed evidence and the potential for society. Its inherent logic and features will move them towards more responsibility. Digital tools, who are broadly available can be used by all stakeholders for creating value. Everybody can participate in strengthening society and being a part of self-aid systems and self-made growth, paving the way towards growth and new markets. Technology can provide a meaningful contribution for growth and leading to more sustainable systems. There, we were able to see how blockchain and platform economies can capture value and also provide the basis for completely new value creation models.