Private blockchain might seem a non sequitur. After all, the whole foundation of blockchain is its distributed ledger. Private blockchain has a single entity as the keeper of the register.
But that private aspect might be attractive to some connectivity providers, as a means of supporting transactions for its own business partners and customers. By definition, transactions can be a revenue driver only when the blockchain provider can impose a transaction cost.
A private blockchain provides some advantages such as processing speed and transaction cost, many argue. Perhaps private blockchain makes more sense for relatively closed ecosystems, while public blockchain is better suited for very loosely-coupled ecosystems.
Blockchain has the potential to be for connectivity provider “value” what the Internet has been for “information.” A loosely-coupled system can innovate much faster, add partners with little friction and reduce costs and time to market.
Think of the analogy of a marketplace or exchange: to the extent blockchain verifies identity and secures transactions, it facilitates any-to-any transactions.
To the extent that blockchain lowers transaction costs, it enables ecosystems to function with less friction. To that same extent, it might allow connectivity providers to construct platform business models, where revenue is generated in some way without direct payment of recurring subscription fees.
The obvious example is a revenue model where transaction fees are the driver, as would be the case for e-commerce sites.
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