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Enabling Social Value with Blockchain Technology

Within Crowdfunding Platforms

Written by Anonymous

Paper category

Master Thesis


Business Administration>Entrepreneurship




Master Thesis: Social Entrepreneurship As a discipline in the field of entrepreneurship, social entrepreneurship has recently attracted more and more attention from the entrepreneurial academia. Social entrepreneurship is the identification, evaluation and use of opportunities while introducing social values ​​and serving social needs, rather than just reaping personal benefits or maximizing the wealth of shareholders (Austin, Stevenson & Wei-Skillern, 2006). There is no fundamental connection between social value and profit, but to meet urgent needs, such as medical services, provision of food, education, or empowerment (Certo&Miller, 2008). Many groups and organizations have begun to recognize social enterprises and enterprises. For example, the Manhattan College Social Entrepreneur Award recognizes leaders who propose solutions to basic social problems outside of many other organizations (Certo & Miller, 2008). In order to better understand what social entrepreneurship is, Austin et al. (2006) distinguishes two kinds of entrepreneurship. They define business entrepreneurship in their framework as the identification, evaluation, and utilization of profit-generating opportunities. In addition, their framework describes social entrepreneurship as the identification, evaluation, and use of opportunities that generate social value. According to Blanchflower and Oswald (1998), the entrepreneur’s ability to discover the existence of value-creating products or services in supply or demand indicates the entrepreneur’s awareness of opportunity. Therefore, social entrepreneurs have a keen understanding of social issues, enabling them to meet social needs through new organizations. Many definitions of social entrepreneurship are consistent with the focus on creating social value when talking about social entrepreneurship (for example, Peredo & McLean, 2006; Shaw & Carter, 2007). Except for social value as a parallel goal of profitability, most business and social entrepreneurship definitions are similar. "Social entrepreneurs are a species of entrepreneurs" (Dees, 1998, p. 2). According to Grassl (2012), social enterprises must be driven by social missions, must have a positive impact on society, must take entrepreneurship as the central function, and finally must use effective planning and management to promote market development' competitiveness (Grassl, 2012 ). Take a more formal approach, Austin et al. (2006) defines social entrepreneurship as “innovative and social value creation activities that can occur within or across non-profit, commercial, or government departments” (page 2). This definition is the most interesting because it fits our research context for two reasons. First, there is a clear concept that links social entrepreneurship with innovation. 2.3 Blockchain Technology 2.3.1 Definition of Blockchain Technology Technical definition "[Blockchain] sorts transactions and groups them in a structure of limited size, named blocks that share the same time stamp. Network nodes (Miners) are responsible for linking blocks to each block in chronological order. Each block contains the hash value of the previous block to create a blockchain. Therefore, the blockchain structure manages to include all transactions Powerful and auditable registry" (Casino et al., 2018, p. 1). Concept definition "Blockchain is a key innovation as the architecture of a new system of decentralized trustless transactions. Blockchain allows for the disintermediation and decentralization of all transactions of any type between all parties on a global scale. [...] A huge electronic form for registering all assets, and an accounting system for transactions on a global scale, which can include all forms of assets held by all parties in the world" (Swan, 2015 Years, pages 10-11). In summary, blockchain technology is described as a continuously growing public ledger of all executed transactions: from the first block to the most recent block (Swan, 2015). A block is a summary of information as a code. Blocks are added by so-called "miners", computers connected to the network to verify transactions, arranged in chronological order. All blocks are linked from the previous block within the new block through the use of hashing (a standardized encryption method) (Christensson, 2018; Priya et al., 2018). This kind of linking makes it difficult to change the information within a block by not changing the information of all previous blocks, because any change within the block will result in a completely different hash code (Casino et al., 2018). Timestamps, and the distribution of (hash) information among participants, make this technology more secure than databases or centralized institutions, thus supporting new applications (Haber & Stornetta, 1990). 2.3.2 History, background and development Nowadays, scholars call blockchain technology and cloud computing together as the "fifth disruptive computing paradigm" (Swan, 2015; Yuan & Wang, 2018). The fifth paradigm is described as "fog computing", which means a seamless and continuously connected physical world with a multi-device computing layer and a blockchain overlay (Swan) for payment, decentralized exchange, and the issuance and execution of smart contracts. , 2015); therefore, there has never been an economic layer on the Internet (Kushida, Murray, and Zysman, 2012; Mahmud, Kotagiri, and Buyya, 2018). In general, this concept is not new. The first group of researchers described the utility of digital time stamping of digital documents in 1990 (Haber & Stornetta, 1990). 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