How Can Blockchain Ecosystem Be Used To Create A New Economic Engine?

The blockchain ecosystem that will power the future of banking has no downtime, no forking, total finality, and a vibrant development community.

The blockchain ecosystem appears to be one-of-a-kind, new, and fierce, but the evolution of new industries over time is frighteningly predictable. Consider the gold rush in California, the global oil boom, or the internet’s ascent.

Each of these economic downturns followed the same pattern. The first is a shift away from speculation and toward reality. Every enterprise that has persisted began with the promise of riches, with marketing accelerating belief in these new realms by emphasizing the sizzle. It’s all geared to turn people become sincere believers and encourage adoption.

Shifting demographics are the second aspect of economic disruptions. Over time, the mix of early adopters shifts, and more individuals, organizations, and businesses begin to join the party. These new entrants then put pressure on the field to introduce what is required to establish these new sectors successfully.

Third, value is typically created after the first dust has settled in these new areas. It is the second wave of players that begin to steer things toward creating actual enterprises, with basics that serve as the foundation for long-term success.

The blockchain ecosystem is moving away from hype and toward substance. The basic understanding of what is conceivable has improved dramatically. We’ve seen a wide range of applications. The demographics of the population have evolved. Institutional capital is making its way into the market. When tens of millions of individuals, many of whom are unaware that they are utilizing blockchain, you know you’re on your way.

The good news for blockchain is that a growing number of people are interested in learning more about the technology and how to use it to produce meaningful value. The more the demands are placed on the industry, the more sophisticated the participant is. Traditional models for determining value in our area do not easily translate from previous practices.

 

Also, Read – 5 Mistakes To Avoid In Blockchain Ecosystem

How can we generate enduring value Blockchain Ecosystem?

There is no universally accepted concept of enduring worth. However, I’ve adopted a concept from Michael Porter, an author of several books on competitive advantage and strategy, that focuses on long-term economic decision-making. Porter claims that regardless of technology or change speed, the essential elements of value generation stay constant. If we apply this logic now, all of the excitement around blockchain technology and cryptocurrency market volatility becomes meaningless to the fundamentals of value. What matters most is what this technology finally allows for — actual, long-term value.

These are the long-term perspective that the Blockchain ecosystem can improve –

• Infrastructure like roads, bridges, pipes, bandwidth, and so on. These provide the opportunity to exchange value with confidence.
• What impediments to participation economy for a more extensive range of people? The ease with which one can conduct business. The obstacles of beginning a firm, taxes, tariffs, and a country’s immigration are examples. All of these concerns act as roadblocks.
• Education is available to all. The reason for this is that it becomes the center of your economy’s innovation. You must establish a location where individuals may readily obtain information and comprehend how to construct. If you don’t, it’ll most likely get stagnant.
• Sustainability. Economic activity is, of course, at the heart of it. Major automakers, for example, are currently transitioning to electronic automobiles.

A basic interpretation is that the rate of innovation is determined by the interaction of all of these factors. Singapore, for example, spent a lot of money 50 years ago on education, technology, fair trade policies, and making it easier to do business. Its per capita gross domestic output was less than $1,000 50 years ago. It’s now around $60,000 per capita.

The future of finance will be based on a blockchain ecosystem that has no downtime, no forking, and total finality. It will require a large number of active developers and an increasing number of users and use cases. It would also have to be developed in an environmentally friendly way.