Blockchain: A Technology in Search of Legitimacy

Blockchain can potentially disrupt business processes across many industries. Despite substantial hype, blockchain adoption still remains quite low. Research suggests that the success and adoption of a new technology depends on whether it is deemed legitimate by key stakeholders. This is extremely important in the context of blockchain given the controversial reputation that some derivative innovations, such as Bitcoin, have gained over time. This chapter explores and compares how four types of business actors which play a prominent role in the blockchain ecosystem—the media, IT, financial services and consulting firms—attempted to build legitimacy around blockchain and Bitcoin on Twitter. Findings suggest that the messaging strategies employed by firms for blockchain and Bitcoin differ. While no dominant firm-level messaging strategies to build legitimacy around Bitcoin emerge, firms primarily employ three micro-level legitimation strategies to build legitimacy around blockchain. More specifically, communication strategies around blockchain focus on publishing the involvement of influential actors (pragmatic legitimacy), highlighting blockchain ongoing developments and associated market responses (cognitive legitimacy), and presenting technological advancements directly or indirectly related to blockchain (cognitive legitimacy). The findings illustrate how the key actors engage in the blockchain and Bitcoin legitimation discourse to help interpret this complex innovation and mobilise the market to adopt.