The link to lending: Blockchain Selecting what type of blockchain to deploy for a cooperative lending platform

Abstract

A new foundational technology is emerging expected to bear great impact and reshape the financial industry. This technology is called blockchain. Further, blockchain is challenging the status quo of business models by distributing the control of data, opposing the currently reigning platform logic which seeks to centralize control, consequently, a tug-of-war of control emerges between the two logics. This dichotomy is reviewed through a case study with an abductive approach in the context of a financial institute owned by municipalities where our purpose is to answer what blockchain structure that should be deployed to support a cooperative lending platform. Our findings show that a blockchain consortium is the most supportive structure to apply in this type of platform. Our theoretical exploration of the private, public and consortium blockchain types aims to contribute to the blockchain literature. Consequently, as our findings explore business impacts of a financial institution they can be operationalized by cooperative organizations.