Negative Influence Of Blockchain Technology On Socio-economic Lifecycle

Introduction to Blockchain Technology

Discuss about the Negative Influence of Blockchain Technology on Socio-economic Lifecycle.

According to Alavi et al. (2018) blockchain technology is an immutable ledger, indisputably and an inventive technological innovation in the world. It deals with currencies which were invented and which are being developed into a greater invention since they were improvement. Blockchain technology has pursued the attention of world’s financial departments including United Kingdom and United States Treasury due to its influence in the economy of various countries in the globe. However, it has introduced an innovative forms of cyptocurrencies in the world of market currency business via the internet that has authorized circulation of the digital statistics or data. Additionally, the technological invention does not permit copping or editing of businesses’ transaction data. Example of blockchain innovation foundation on cyptocurrencies include Litecion, Namecoin, Swiftcoin, Bitcoin, Mezancoin and Bytecoin. The cyptocurrencies allow individuals to transact business online without intervention of the third party, thus, the transaction rate of the business involved is lower contrasted to other forms transaction involving real currency such as US dollar or Euro. Allen, Berg and Novak (2018) stated that blockchain technological advancement and invention has the aptitude of not recording and storing information from financial statements but also not keeping data from any action which has value. The technology has relieved investors from wasting time in financial institutions queue up waiting to be served but it has an interface where two individuals can work on one document at the same time. The document is be termed has the Google Docs app.  In addition, blockchain the Google Docs app permits two individuals the right to access the documents at the same time and all of them are able to see what is taking place, consequently, decreasing the corruption cases (Yermack, 2015).

As observed by Avital et al. (2016) is that blockchain technological transaction cannot be operated by any specific body and the blockchain system does not fail at any moment has its durability and reliability. Conversely, various studies have failed to look at the destruction being cause by blockchain to the socio-economic lifecycle has it cannot be sketched or traced. This increase chances and capability of fanatics and felons using it to conduct criminal activities has Bal (2015) suggested. The research project proposal hereby will bridge the gap by determining the negative impact of blockchain technology on the socio-economic lifecycle. The research project also look into how the innovation has negatively influenced the coinages, and determine the reliability and validity of how the social lives of the people has been influenced by the innovation of blockchain foundation (Blundell-Wignall, 2014). Some authorities does not identify the blockchain innovation because they do not generate revenue from the individuals operating their businesses using blockchain. According to article written by Chen et al. (2018) “Smart Learning Environments” is that most researchers’ only emphases on the reimbursements of the system but forgoes the drawbacks of the innovation. Consequently, this study will bridge the gap by determining the negative impacts of blockchain innovation.

Positive Sides of Blockchain system

This study will aim at understanding the negative impact of blockchian innovation in socio-economic lifecycle. However, blockchain technological has conveyed several debates concerning economic of the world and its current trend. Also, it is expected that the blockchain cyptocurrencies will escalates the economy because of the astringent method it have o the economy of different countries in the globe.

The key purpose of the research project study will be to investigate the negative impact of blockchain innovation on the socio-economic lifecycle.

The study will be relevant has it is going to find out the delinquent about blockchain in socio-economic lifecycle that most of the researchers’ have not emphases on. However, most scholars only concentrates on the positive impacts of cyptocurrencies but not the negative impacts. The study will therefore, focuses on bridging the gap on the negative impacts of blockchain innovation rather than its positive influence. In addition, the will help individuals and regime in making decision on how to grip blockchain technological advancement.

The research proposal questions will include the following;

1. Do people who transact business through blockchain pay taxes to their governments?
2. What are the negative effects of blockchain on the global economy?

III. How does cyptocurrencies affect communal life negatively?

Aims and objectives of the study will comprise the following;

1. To determine if those individuals who carry out transaction through blockchain pay revenues to regimes.
2. To find out the negative impact of blockchain innovation on the economics of various countries.

III. To establish if cyptocurrencies impact communal lifecycle.

The primary targets of the study will be the regimes and investors who want to engage in blockchain investment. The study will also assist governments to make decision and entrepreneurs’ on whether to validate blockchain or not authenticate it.

Overview of the Blockchain Foundation

According to Murphy et al. (2018) is that blockchain innovation can be termed has technological approach of reorganizing business activities, that results to solving of problem with trust which makes it good for economic purposes. The innovation provides methods in which transaction data can be recorded and get secured by a ledger system that is public. The publicity of the ledger systems provides transparency and accountability therefore, reducing the cases of corruption in the cryptocurrency business. The data secured by the system cannot be edited, furthermore, the blockchain system is not owned by anybody or any firm, it is a public system run by the public. The system has impacted the financial market by introducing its first app “the bitcoin” which is digital money where a person can send or received unlimited quantity of cash without the help of the third party. Supplementary applications created as a result of blockchain innovation are Power Ledger, Car Vertical Dash and Wabi.

Negative Effect of Blockchain on Socio-economic Lifecycle

Shapiro (2018) had observed that blockchain has changed how business are done from traditional systems where a business person could waste too much time to queue for transactions services to digital system where transactions are done faster in a secure method. Blundell-Wignall (2014) suggested thatto Research done by suggest that the blockchain usage will increase at a higher rate in the future in that it will be used for many purposes in many trade activities including stores and shops. Conversely, researchers have concentrated in the positive sides of the system and forget to study its disadvantages and negative impacts on the economy and social lifecycle (Blundell-Wignall, 2014). The exploration hereby will try to bridge the gap obtainable by studying the negative special effects of blockchain on both economy and society respectively.

Negative special effects of Blockchain on the Economy Lifecycle

The blockchain innovation technology has been described by economic experts as the major contributor of the business process internationally. Blockchain through its cryptocurrency applications like bitcoins is challenging the standard of dollar in the stock exchange market. According to the world economy statistics is that the stability of the dollar standard have been lowered because of the cryptocurrency. Almost all the international traders and businesses use United States dollar for financial activities. Therefore, if the dollar standard is lowered then the global economy is affected badly. Shelton, Haynes and Creghan (2018) suggested that the cyptocurrencies transactions do not benefit the United States dollar in any way hence reducing its value in the market. The introduction of over 1000 bitcoin cryptocions has affected the U.S. dollar standard has deduced by (Turner, Cardinal and Burton, 2017).

The second impact of blockchain is where it has cut the middleperson from business.  The financial businesses globally need the services of bodies like banks, SWIFT, and clearing houses who take some fees in turn for providing such services (Shelton, Haynes & Creghan, 2018). But, the blockchain protocols like Bitcoin and Dash have cut the use of middlemen to process and authenticate transactions. The action has disrupted the normal global money transfer protocol where the middle firms check and authenticate the payments to reduce money laundry and terrorisms funding. The main reason why governments have allowed middlepersons to authenticate and oversee transactions is to prevent transactions for illegal ammunition activities, drug trade and other criminal activities. Middlepersons also ensure that anybody who involve in business transactions pays the taxes to his or her government but the blockchain does check the person conducting transactions. It also becomes too hard for law enforcement agencies to trace any illegal transactions from the cryptocurrency data because the system protects the participants. Whicher, Philbin and Aronson (2018) that the cyptocurrencies will disrupt the functions of central banks because the firms have no control over the applications.

Impact of Cryptocurrencies on the Stability of the Dollar Standard

The consequence of blockchain technological innovation on the economy is being termed has the crowdfunding as stated by (Yermack, 2015). The blockchain technology has brought the process of crowdfunding. Also, Whicher, Philbin and Aronson (2018) describes has crowdfunding the process of finding capital for discoveries, thoughts and any other innovation through the internet. Crowdfunding has been made by blockchain to be easier in that the blockchain application are used as the platform of linking the inventor and the sponsors. Hence, tycoons have fundamentally ignored the government interventions on how to register their register innovations, consequently, the inventions are not being taxed because they are not registered. The inventors pursue for sponsor or funders in the internet via the blockchain applications and fund their merchandises could have not seen the light because of poor quantity and quality. As a consequence, crowdfunding does not symbolize the equality in economy of the world has suggested by (Shelton, Haynes & Creghan, 2018).

The negative influence of Blockchain in Social Lifecycle

On the other hand, Whicher, Philbin and Aronson (2018) is that actions different actions by blockchain have subsidized to some activities that impact mankind social lifecycle. The blockchain application has improved the drug marketing within the internet impact the health of individuals in one ways or another. The drug lobbies do their financial business transactions through blockchain podia because of its confidentiality and anonymity that enable the facilitation of crime activities. The law enforcements are given hard task to track the criminals who use the blockchain applications. In addition the system supports drug trade in, terrorism and money laundry has stated by (Yermack, 2015). For instance, criminals and terrorists can buy fire arms via the platform has it is inconspicuousness and solitude from law enforcement, thus in turn affects the humankind ways of living or social life.

Economic Theory and Cryptocurrency

As observed by Yermack (2015) is that in a rational marketplace there are normally common principles that applies to the pricing of the available commodities in the marketplace. Also, Whicher, Philbin and Aronson (2018) added that correspondingly, there are force that impact the value of the currency in the market, and the currency in commodity is the value of the stored item in the bazaar. However, has globe moves from gold standards the Keynesian economics models became of more interest to most experts in the globe. The Keynesian model was first introduced by John Maynard Keynes who is British economic theorist in the seminal depression has explained by (Whicher, Philbin & Aronson, 2018).  The model or theory states that the ability to impact external economics by modifying taxes and government expenditure or spending.

Elimination of the Middleman from Business Transactions

Currently, the cryptocurrency has overturn the economic model of Keynesian has it have introduced a virtual currencies (Yermack, 2015).  According to Shelton, Haynes and Creghan (2018) is that Bitcoin is the most, known and widely used, but other cyptocurrencies also exist in the world of blockchain innovation technology. To link the economic theory and the cryptocurrency it clearly come out has most of the chain stores have embraced the used of the currencies. The various store that uses cryptocurrency are online store that sales electronics and textile trending fashion cloths has mentioned by (Shelton Haynes & Creghan, 2018).

Methodology

Katz (2017) has described methodology as the procedure that facilitates the examination  on a given research problem to provide an appropriate solutin concerning the problem. Katz (2017) also added that it helps in operational process in which academic study is being carry out to properly extract research in a particular field of study. Conversely, a comprehensive technique of research goals, scheme and method will be undertaken in the section of the research project proposal. The study methodology part will be divided into various section including philosophical position, research design, research strategies, primary Approach, data analysis, limitaions of the study and timeline.

Philosophical Approach

In the perspective of different authors, research approach can be categorized into epistemology and ontology has deduced by (Holub & Johnson, 2018). Generally, fieldwork will be done by a researcher to find out an issue in one approach known as epistemology whereas the metaphysic philosophy will not be appendicle (Gans & Halaburda, 2015). The researcher determination will be significant to resolve the problem in stipulations of the approaches research theory (Gans & Halaburda, 2015). Thus, epistemology and ontology of the research approach will be about the negative impacts of blockchain in the socio-econmic life.

3.2 Research Design

The research strategy of the study will help scrupulous in the identification of the research topic as well as in specifying the study complications (Dhaou, Zalan & Toufaily, 2017).  Research design facilitates selection and collection of information resources at varoius phases of analyzing a research project proposed. Also, it being can be categorized into three groups including descriptive research design, explanatory research design and exploratory research design.

Research Strategy

Ledford and Gast (2018), has suggested that research strategy is the pace of planning that outlines direction to the researcher thoughts and effeorts. It enable the resaerch being carried out be successful. Also, systematically procedures and schedules will permits eminence results and in-depth comprehensive report from the study. The approach that will be use in the study will require a minimum number of evidences linked to the research topic. In addition, the collection of  information will be from lesser sample aids to accomplish the required results which can be presented by the required population the in study. Though, the study will be mainlybe focusing on the negative influence of the blockchian in the socio-economic lifecycle (Ledford & Gast, 2018).

Crowdfunding and its Impact on the Economy

Primary Approach

As stated by Franklin (2016) is that primary method approach used in qualitative research but not in quantitative research will study is be carried out by researchers’. Thus, information gathered in the study will examined in order to attain the problematical and complications of the study statement of problem. According to Dhaou, Zalan and Toufaily (2017) is that the methodologies are not put up to investigate the research delinquent but to set the theory for the clarification of the research problem by the use of deductive steps forward. While, deductive methods will given an unambiguous pertain to this study in order to identify the negative influence of blockchsin in socio-economic lifecycle.

Data Collection and Sources

Collection of data in a research progression that helps to highlight the vicinity which comprised of data and essentials correlated to the research topic. Data collection shows a realistic understanding of a given research focus and consequently assists in gaining better details of the subject to enhanced and homogeneous comportment way.

Qualitative and Quantitative Data Collection

Data procedures in this study will be either quantitative or qualitative. Qualitative information is supportive to deal with descriptive data which gives detailed clarification to the apprehensive theme. Whereas, quantitative data explains viewpoints of large no number of defendants in a more organized and laid-back manner and rises the apprehension of viability also. In addition, the thoughts of correspondents is limited as a result of few parameters list.

Limitations of the study

According to Demotte, Marcy and Feininger (2018) is that limitations may occur in various forms in a research project proposal. However, one of the limitations include lack of statistics and data for the research project. On the other hand, the number of intellectuals and economic specialists have carry out research on the topic that is similar to the one proposed in this study. Henceforth, it not be will easy for the researcher to find sufficient statistics and information regarding the study literature appraisal. The sample size used in the study is also minimum because of inadequate finance for funding telecommuting that could have enable the researcher to find correspondents and institutions. Also, data of self-reported could be used without authentication was another delinquent of the project. Therefore, self-reported is where no institute or even authority can approve the discoveries linked to the study. In addition, getting access to significant individuals to be interviewed in the study will be tough since they cannot be found easily and be interview.

Negative Impact of Blockchain on Social Lifecycle

Similarly, biasness can distress the findings of the research in one way or another has the research who like blockchain may interfere with the outcomes of the study not to smudge the cyptocurrencies has stated (Demotte, Marcy & Feininger, 2018). Financial constraints will limit the researcher to move to various areas in carrying out the research operations to find out credible results.  However, the study prerequisites the researcher to different places to look for the correspondents’ who are needed to take part in the study. Lastly, time allocated for the study. The permitted for the study is minimum, hence, the researcher will carry out a shallow study due to inadequate time frame.

Ethical Issues and Considerations

O’Leary et al. (2017) states that secondary data sources will be more revealed in a research project rather than the primary data sources. Thus, researcher will safeguard the data poised from the sampling and only be used in the consideration of the study. The central disinterested of the research ethical issues and contemplation will be to certify that no one suffers or being harmed with adverse consequences from the research undertakings. Also, reasonable sensitivity of the associations between the investigator and correspondents will be protection in the study basing on the ethical requirements and considerations (Cohen, 2017).

Timelines

Timeline indicates how proposed project will be carried out. In addition, it shows the plan of how the research will be conduct by the researcher.it is therefore important to understand and to know what to done at an explicit time (Murphy et al., 2018). The proposed project has six phases, hence, it will take place in proposed project will take place in 35 days.

Figure 1. Project timeline (Christopher, 2014)

Figure 2. Gantt chart (Chow et al., 2017)

References

Alavi, M., Archibald, M., McMaster, R., Lopez, V., & Cleary, M. (2018). Aligning theory and methodology in mixed methods research: Before Design Theoretical Placement. International Journal of Social Research Methodology, 1-14.

Allen, D., Berg, C., & Novak, M. (2018). Blockchain: An Entangled Political Economy Approach.

Avital, M., Beck, R., King, J., Rossi, M., & Teigland, R. (2016). Jumping on the Blockchain Bandwagon: Lessons of the Past and Outlook to the Future.

Bal, A. (2015). How to Tax Bitcoin? In Handbook of digital currency (pp. 267-282).

Blundell-Wignall, A. (2014). The Bitcoin question: Currency versus trust-less transfer technology. OECD Working Papers on Finance, Insurance and Private Pensions, (37), 1.

Research Project Study and its Objectives

Chen, G., Xu, B., Lu, M., & Chen, N. S. (2018). Exploring blockchain technology and its potential applications for education. Smart Learning Environments, 5(1), 1.

Chow, S. C., Shao, J., Wang, H., & Lokhnygina, Y. (2017). Sample size calculations in clinical research. Chapman and Hall/CRC.

Christopher, C. M. (2014). Whack-A-Mole: Why Prosecuting Digital Currency Exchanges Won’t Stop Online Money Laundering. Lewis & Clark L. Rev., 18, 1.

Cohen, B. (2017). The Rise of Alternative Currencies in Post?Capitalism. Journal of Management Studies, 54(5), 739-746.

Demotte, D., Marcy, S., & Feininger, D. (2018). Essentials of research enterprise and methodology in business strategies. Page Press.

Dhaou, S. B., Zalan, T., & Toufaily, E. (2017). Blockchain Technology Adoption: Implications and Challenges.

Franklin, M. (2016). A PROFILE OF BITCOIN CURRENCY: AN EXPLORATORY STUDY. International Journal of Business & Economics Perspectives, 11(1).

Gans, J. S., & Halaburda, H. (2015). Some economics of private digital currency. In Economic Analysis of the Digital Economy (pp. 257-276). University of Chicago Press.

Holub, M., & Johnson, J. (2018). Bitcoin research across disciplines. The Information Society, 34(2), 114-126.

Katz, J. E. (2017). Machines that become us: The social context of personal communication technology. Routledge.

Ledford, J. R., & Gast, D. L. (2018). Single case research methodology: Applications in special education and behavioral sciences. Routledge.

Marczyk, G., DeMatteo, D., & Festinger, D. (2017). Essentials of research design and methodology. John Wiley.

Murphy, L., Abdulai, A. F., Anwar, K., Abdullah, A., & Thomas, B. C. (2018). Financial Entrepreneurship in Three Emerging Economies: A Comparative Study of Ghana, Pakistan, and Yemen. In Financial Entrepreneurship for Economic Growth in Emerging Nations (pp. 1-21). IGI Global.

O’Leary, K., O’Reilly, P., Feller, J., Gleasure, R., Li, S., & Cristoforo, J. (2017, August). Exploring the Application of Blockchain Technology to Combat the Effects of Social Loafing in Cross Functional Group Projects. In Proceedings of the 13th International Symposium on Open Collaboration (p. 13). ACM.

Shapiro, D. C. (2018). Bitcoin Loans and Other Cryptocurrency Tax Problems. Journal of Taxation of Investments, 35(2).

Shelton, K., Haynes, C. A., & Creghan, K. A. (2018). Fundamentals of Delphi Research Methodology. In Handbook of Research on Innovative Techniques, Trends, and Analysis for Optimized Research Methods (pp. 233-257). IGI Global.

Turner, S. F., Cardinal, L. B., & Burton, R. M. (2017). Research design for mixed methods: A triangulation-based framework and roadmap. Organizational Research Methods, 20(2), 243-267.

Whicher, D., Philbin, S., & Aronson, N. (2018). An overview of the impact of rare disease characteristics on research methodology. Orphanet journal of rare diseases, 13(1), 14.

Yermack, D. (2015). Is Bitcoin a real currency? An economic appraisal. In Handbook of digital currency (pp. 31-43)