Question

Explain in detail the role of Distributed ledger technologies in the following types of innovation:

- Process innovation

- Product innovation

- Exploitation of new markets

- Organizational innovation

Answer 1

Role of distributed ledger technologies in :

• Process innovation : Changed the way one can keep store of transactional records from different nodes (or multiple places meaning devices). The way information of different assets are recorded has been changed through the introduction of Distributed ledgers. The speed of transactions have drastically improved since, there is no central authority.
  
• Product innovation : Changed the way traditional ledgers maintain a central database. Distributed Ledger techonology is decentralized and can be accessed from multiple locations. One such product innovation is the use of Blockchain.
  
• Exploitation of new markets : Distributed Ledger Techonology is already being applied to day to day transactions involving banks, hospitals,etc. Some say the applications could range even upto government activites or public dealings. The added advantage being the trasparency that it ensures and it being less prone to cyber attacks.
  
• Organizational innovation : Cryptocurrency is being used a lot nowadays and its value is gradually increasing compared to the cash in hand. In times when digital payments and transactions are increasing, cryptocurrencies like Bitcoin,Ethereum ,etc are removing structural barriers all over the world. Nations are gradually accepting cryptocurrencies and its fair trading. With this, a lof of organizations are also adding transactions in cryptocurrencies as a mode of payment; this opens up some extra options going into the future.