these deals are becoming larger, with median deal size of
blockchain investments increasing by approximately 65%
from 2017 to 2018.
4 These data demonstrate substantially
more activity in blockchain applications in just one year.
5
Despite the investment and entrepreneurial activity in
Blockchain technologies, it would take years to observe
which companies and applications would survive and
potentially thrive.
Our analysis would be grounded on the existing literature,
which to a large extent predicts, rather than explains
Blockchain applications. A common distinction in the current literature is between financial and non-financial sectors
(Crosby et al. 2016). This is reasonable, since the first
blockchain application, Bitcoin, concerns the financial
industry. More than 1500 cryptocurrency applications have
been created (Amro 2016). This is an additional justification
for the importance of Blockchain technology in the financial
sector and our focus is on it. However there many more
applications. Non-financial applications are also important,
especially in the context of UAE. The government has a
leading role not only in increasing its efficiency and performance but also it significantly promotes business and
innovation.
The literature covers many Blockchain business applications which are directly or indirectly associated with the
UAE government. Besides the financial sectors in UAE and
notably Abu Dhabi and Dubai as financial and trading
centers globally, Blockchain technology have a wide range
of applications in payment systems and other types of
exchanges, markets and services. Some of the most important applications are documentation, smart contracts (Tapscott and Tapscott 2017), healthcare (Tama et al. 2017),
service systems (Seebacher and Schϋritz 2017), sales, and
marketing (Tapscott and Tapscott 2017). Sales and marketing can be very important for improving the efficiency and
performance of the UAE government, satisfy and make
citizens happy by offering them new products and services
and enabling them to use advanced technologies.
The potential of Blockchain is tremendous and the impact
is visible in the financial world. Another notable application
according to prominent analysts is the “sharing” economy.
The sharing economy is expected to grow from $15 billion
in 2015 to $335 billion by the year 2025, according to a
report by PricewaterhouseCoopers as noted by leading
Financial Analyst (Amro 2016). The rapid growth of the
sharing economy is reflected in companies like Uber and
Airbnb. Literature review (Hawlitschel et al. 2018) suggests
that blockchain technology can promise to revolutionize
interactions, have many applications and to some degree
replace trust in sharing economies. Blockchain can be used
to create decentralized, shared economy applications and
improve citizen’s security and wealth (Huckle et al. 2016).
However, sharing does not only refer to economy and
business, but also to government information sharing
applications. Blockchain will lead to innovation and transformation of governmental processes and has a wide range
of potential benefits, from technical to economic and
strategic (Ølnes et al. 2017). Accordingly, the UAE government has established strategies for innovation and notably
blockchain, to realize its benefits.
5 Blockchain and UAE
‘Blockchain is a foundational emerging technology of the
Fourth Industrial Revolution, much like the internet was for
the previous (or third) industrial revolution’ (Hawlitschel
et al. 2018). The fundamental status of Blockchain technology is evident. It can transform how people transact and
redefine how businesses, governments, and societies operate
(Hawlitschel et al. 2018). Moreover, substantial innovation
activity can be attributed to Blockchain technology. While it
can be considered a nascent technology, significant innovative applications as cryptocurrencies and smart contracts
have been developed. As Blockchain technology matures, an
increasing number of innovations are likely to arise. There is
also enthusiasm about blockchain’s potential to drive and
support sustainable environment and resilient growth.
UAE’s vision for sustainable environment and infrastructure as well as a competitive knowledge economy is
directly related to Blockchain technologies. Promoting the
entrepreneurial culture and innovation are key priorities for
UAE. They coincide with the accelerating entrepreneurship
opportunities and tremendous capacity for innovation that
Blockchain technology offers. In accordance to Vision 2021
UAE government has launched the UAE National Innovation Strategy. Technology is among the six priority sectors
of this Innovation Strategy. Smart Government and Smart
Cities are some of the related initiatives (United Arab
Emirates 2015). Blockchain can have a major impact on how
the government conducts its operations as well as transformative applications in businesses and smart cities. Illustrative examples are smart contracts and secured payment
systems. The UAE has also launched the Fourth Industrial
Revolution Strategy (4 IR) aiming to strengthen the UAE’s
position as a global hub and to increase the contribution to
the national economy by advancing innovation and future
technologies. The 4 IR identifies among its strategic areas,
economic security, that Blockchain can facilitate because of
enhanced security features. The Blockchain technology is a
fundamental pillar of the fourth industrial revolution. In that
sense, it should constitute a large part in UAE’s efforts.
4
Ibid.
5
These trends are also confirmed by previous year’s historical data.
Blockchain Technology, Sustainability and Business …
89
blockchain investments increasing by approximately 65%
from 2017 to 2018.
4 These data demonstrate substantially
more activity in blockchain applications in just one year.
5
Despite the investment and entrepreneurial activity in
Blockchain technologies, it would take years to observe
which companies and applications would survive and
potentially thrive.
Our analysis would be grounded on the existing literature,
which to a large extent predicts, rather than explains
Blockchain applications. A common distinction in the current literature is between financial and non-financial sectors
(Crosby et al. 2016). This is reasonable, since the first
blockchain application, Bitcoin, concerns the financial
industry. More than 1500 cryptocurrency applications have
been created (Amro 2016). This is an additional justification
for the importance of Blockchain technology in the financial
sector and our focus is on it. However there many more
applications. Non-financial applications are also important,
especially in the context of UAE. The government has a
leading role not only in increasing its efficiency and performance but also it significantly promotes business and
innovation.
The literature covers many Blockchain business applications which are directly or indirectly associated with the
UAE government. Besides the financial sectors in UAE and
notably Abu Dhabi and Dubai as financial and trading
centers globally, Blockchain technology have a wide range
of applications in payment systems and other types of
exchanges, markets and services. Some of the most important applications are documentation, smart contracts (Tapscott and Tapscott 2017), healthcare (Tama et al. 2017),
service systems (Seebacher and Schϋritz 2017), sales, and
marketing (Tapscott and Tapscott 2017). Sales and marketing can be very important for improving the efficiency and
performance of the UAE government, satisfy and make
citizens happy by offering them new products and services
and enabling them to use advanced technologies.
The potential of Blockchain is tremendous and the impact
is visible in the financial world. Another notable application
according to prominent analysts is the “sharing” economy.
The sharing economy is expected to grow from $15 billion
in 2015 to $335 billion by the year 2025, according to a
report by PricewaterhouseCoopers as noted by leading
Financial Analyst (Amro 2016). The rapid growth of the
sharing economy is reflected in companies like Uber and
Airbnb. Literature review (Hawlitschel et al. 2018) suggests
that blockchain technology can promise to revolutionize
interactions, have many applications and to some degree
replace trust in sharing economies. Blockchain can be used
to create decentralized, shared economy applications and
improve citizen’s security and wealth (Huckle et al. 2016).
However, sharing does not only refer to economy and
business, but also to government information sharing
applications. Blockchain will lead to innovation and transformation of governmental processes and has a wide range
of potential benefits, from technical to economic and
strategic (Ølnes et al. 2017). Accordingly, the UAE government has established strategies for innovation and notably
blockchain, to realize its benefits.
5 Blockchain and UAE
‘Blockchain is a foundational emerging technology of the
Fourth Industrial Revolution, much like the internet was for
the previous (or third) industrial revolution’ (Hawlitschel
et al. 2018). The fundamental status of Blockchain technology is evident. It can transform how people transact and
redefine how businesses, governments, and societies operate
(Hawlitschel et al. 2018). Moreover, substantial innovation
activity can be attributed to Blockchain technology. While it
can be considered a nascent technology, significant innovative applications as cryptocurrencies and smart contracts
have been developed. As Blockchain technology matures, an
increasing number of innovations are likely to arise. There is
also enthusiasm about blockchain’s potential to drive and
support sustainable environment and resilient growth.
UAE’s vision for sustainable environment and infrastructure as well as a competitive knowledge economy is
directly related to Blockchain technologies. Promoting the
entrepreneurial culture and innovation are key priorities for
UAE. They coincide with the accelerating entrepreneurship
opportunities and tremendous capacity for innovation that
Blockchain technology offers. In accordance to Vision 2021
UAE government has launched the UAE National Innovation Strategy. Technology is among the six priority sectors
of this Innovation Strategy. Smart Government and Smart
Cities are some of the related initiatives (United Arab
Emirates 2015). Blockchain can have a major impact on how
the government conducts its operations as well as transformative applications in businesses and smart cities. Illustrative examples are smart contracts and secured payment
systems. The UAE has also launched the Fourth Industrial
Revolution Strategy (4 IR) aiming to strengthen the UAE’s
position as a global hub and to increase the contribution to
the national economy by advancing innovation and future
technologies. The 4 IR identifies among its strategic areas,
economic security, that Blockchain can facilitate because of
enhanced security features. The Blockchain technology is a
fundamental pillar of the fourth industrial revolution. In that
sense, it should constitute a large part in UAE’s efforts.
4
Ibid.
5
These trends are also confirmed by previous year’s historical data.
Blockchain Technology, Sustainability and Business …
89