Cryptocurrencies and Blockchain. Relevance and risks for companies in the age of digitization

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Problem description
• Course of investigation
• Basics and theoretical foundations
• Fundamentals of Blockchain
• Transactions and its particularities in terms of blockchain
• How blockchain works
• Blockchain applications
• Basic blockchain applications
• Practical relevance of blockchain
• Impacts of blockchain to the banking industry
• Implications with reference to corporate finance
• General terminology of corporate finance
• Blockchain-based financing as addition to traditional sources
• Bank loans as a sample of debt financing
• Initial Public Offering as a sample of equity financing
• Peer-to-Peer-Lending as a counterpart to bank loans
• Initial Coin Offering as a counterpart to an Initial Public Offering
• Risks of dealing with cryptocurrencies
• Critical review and deduction

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis examines the relevance and risks of cryptocurrencies and blockchain technology for companies in the age of digitization. It aims to explore the potential use of cryptocurrencies as financial instruments within the context of corporate finance.

• Understanding the technical foundations of blockchain and its key characteristics: decentralization, trust and provenance, resilience, and irreversibility.
• Analyzing the diverse applications of blockchain beyond cryptocurrencies, including smart contracts and decentralized autonomous organizations (DAOs).
• Investigating the potential impact of blockchain on the banking industry and exploring its role in transforming traditional financial processes.
• Examining blockchain-based financing solutions as an addition to traditional sources of funding, focusing on peer-to-peer lending and initial coin offerings (ICOs).
• Assessing the inherent risks associated with dealing with cryptocurrencies, including exchange rate volatility, regulatory uncertainty, and scalability challenges.

Zusammenfassung der Kapitel (Chapter Summaries)

The first chapter provides an introduction to blockchain and cryptocurrencies, exploring their history, core principles, and unique characteristics. Chapter two delves into the technical aspects of blockchain, including the workings of transactions, cryptography, and the proof-of-work consensus mechanism. It also discusses various applications of blockchain beyond cryptocurrencies, such as smart contracts and decentralized autonomous organizations. The third chapter focuses on the impact of blockchain on the banking industry, highlighting its potential for efficiency improvements, cost reduction, and new financial service innovations. The fourth chapter examines the implications of blockchain for corporate finance, comparing traditional financing sources with blockchain-based solutions like peer-to-peer lending and initial coin offerings. This chapter also highlights the inherent risks associated with cryptocurrencies and the importance of considering these risks when dealing with them.

Schlüsselwörter (Keywords)

This study focuses on blockchain technology, cryptocurrencies, smart contracts, decentralized autonomous organizations, corporate finance, debt financing, equity financing, peer-to-peer lending, initial coin offerings, and the financial impact of digitization.