At the heart of this lie cryptocurrency, technologies with the transformative potential of the printing press or the internet. They bypass the elites and cut out centralised monitors. Unlike traditional money they’re peer-to-peer, they don’t have a nationality, they’re digital and democratic. They are also lawless. But, at the heart of all this, they are decentralised.
For the Syrian woman denied a bank account, or any of the world’s 2.5 billion unbanked individuals, cryptocurrencies open new possibilities. What would a world without banks or credit cards or even national currencies look like for all of us? Digital money is creating a new financial system, and in the process challenging the global economic order. Everything we’ve learned and are comfortable with as it relates to economic ecosystems, business designs and their impacts on global economies is changing, and what we think we know may no longer apply.
New Economy = Decentralized Business Models = a whole lot less jobsTimothy Myers
No Current Business Will Survive
Centralised business models provide solutions for disparate parties needing to work together when they don’t or can’t trust each other at scale. To them, centralisation provides trust, but this will be replaced with blockchain or distributed ledger models. Since most operating models are centralised in nature, they will be at risk to replacement, hence the massive use case possibilities circling around blockchain.
How Blockchain will change the landscape
Blockchain will change everything. As a result of the new economy that emerges from the blockchain revolution, business professionals are not prepared or educated on how to think, design, build and operate business models in the decentralised economy. All experience and education today is based on a centralised paradigm. Designing and operating businesses on the capabilities of blockchain will:
- Require different thinking and different education that people hold today,
- Drive a different profit and loss mix not common in today’s businesses,
- Run with higher margin, and lower operating costs as a result of peer-to-peer designs and low human resource requirements,
- Displace very significant portions of the workforce that make up centralized businesses today,
- Significantly flatten the hierarchies and costs in today’s designs having more in common with “Exponential Organisations”.
We must include a thoughtful, purposeful approach to designing the new macro and micro economies that will result from this change. It is not enough to just declare that a new economy is evolving around us and go after our piece of it, it’s much more important to gather the appropriate leadership to purposefully define, plan and implement these new economies so that we arrive in a well-designed future.
This massive shift in organisation design will have impacts on corporate relationships, structures, operating models and ultimately employment trends. This all will lay waste to the current economic model we’re all accustomed to. As a result, economies will be affected at all levels.
Socio-economic impacts will be substantial as well. It’s not a stretch to understand that the types of shifts that will occur will disrupt not only companies and therefore their regional economies, but due to the globalised nature of today’s economies, corporate changes will have rolling impacts across the world.
Key areas to consider and understand in planning for global impacts include:
- Flattening of global corporations: ensures services currently rendered through centralised organisations such as banking, payments, remittances, insurance, investments, etc. shed jobs as trust management for these services moves to blockchain-based businesses.
- Restructuring of micro-economies: that make up the global supply-chain, financing, investment, identity and other services will also flatten, transforming the way they do business.
- Shifting political order: underpinned by “third world” economies playing a more powerful role in the future, with the opportunity to move in a more agile way to build decentralised, new economic business models. This will lead to the rise of the global citizens, redistribution of wealth, and socio-political equalisation impacts.
What is the Future?
Where do we go from here is the question at hand. We need to come together through awareness, planning and design for the future. If you think it’s too big a task, if you feel like it’s impossible, you’re already doomed to be left behind. Given the origins of blockchain architectures and the purpose and nature behind Satoshi’s whitepaper which defines equity, democratisation and undoes millennia of power and wealth accumulation in the dismantling of the centralised economy, it is only wise to understand, plan, and build the future we all want.
As business leaders either in today’s or tomorrow’s new decentralised economy, it is incumbent upon us to understand to design the businesses and economies of tomorrow, and how it fits into the evolving global ecosystem we are all creating.
This is an edited version of the original article published in Hackermoon by Timothy Myers