Opinion Turning Blockchain Tech into an Economic Engine for the World

Turning Blockchain Tech into an Economic Engine for the World

March 5, 2022

The present state of the global economy is one bordering on hopelessness. After a prolonged pandemic slowdown and numerous issues that it caused in the global supply chains and economic development, there is a new huge crisis. The war between Ukraine and Russia, which began with a massive invasion of the Russian army into its western neighbor, is sharpening the global markets. That process includes the very real danger of escalations and a chain-link sequence of events that will further drag down regional economies of Europe and the Russian Federation. In that eventuality, the global recession is almost assured, with a strong potential for it to turn into a global depression. 

Economically, the negative cards seem to be stacking just right in the last three years. The deck also seems to be still full of additional negative cards that could spring up at any moment. But, many experts from the crypto domain believe that blockchain technology could offer a very essential economic engine to a world that badly needs one. The same process would not be something that springs up overnight or changes things in a sudden manner, but the potential it offers is very real nonetheless. 

Economic Intensification

In many ways, the entire blockchain industry might seem frantic, unique, and very novel. However, while this is true for the same business in terms of the technology it uses, it still follows the evolutionary patterns of emergent industries throughout history. Examples of similar moments include the global oil boom, the rise of the internet, or even the much older gold rush in the Western US. All of these at one point looked like the blockchain expansion and they slowly morphed into regular businesses. 

All of these also brought about a level of economic disruption. They also brought about a similar pattern in this regard as well, no matter if they offer fuel for the nextly created automobiles or servers for new esports competitions. These involve a drastic level of disruption, but also a process that will slowly turn something that is basically an idea into a huge business domain. The process is not always successful for the same business, but it does take place almost entirely following a similar process of rumor, information, adoption, and substance.

Steps of Disruption

The first big moment is the change that brings about the movement from speculation about a particular market to something of some substance. Each industrial domain that survived was first started as a promise of wealth and riches where the speculation fueled interests. Here, things like marketing could have accelerated things, but rarely based on anything of substance. In this phase, the true believers are those who drive that initial adoption. The next phase brings about a level of shifting demographics. 

Early adopters give way to regular individuals from all walks of life, industries, individuals, and institutions. These participants engage with the market and its novel elements, but also put pressure on the same domain to create accommodation for future widespread adoption. The same evolution gradually builds the shift to the substance, where an industry or a set of industries actually have something to offer to numerous organizations and individuals, not just a chosen few. That includes the full and complete shift to the substance phase of the disruption process.

Blockchain Status

At the present moment, blockchain tech is exiting from a period that lasted for nearly a decade, when it held more promise than any actual value in the real world. While the notion of its usability began to appear nearly right after networks like bitcoin began working, it was for the longest time just a concept with some direct evidence that it can work in a stable and sustainable manner. 

Presently, however, blockchain is moving towards the substance phase. The fundamental abilities – in their actual form, not as a sales pitch – are now clearer and there are many proof-of-concept projects that are fully operational. The demographics have moved as well, showing more and more institutional capital that is ready to enter the blockchain space. Furthermore, tens of millions of users right now use applications and platforms without even knowing they are based on blockchain tech. All of this is presently saying that blockchain is well and truly entering the substance phase of its development and disruption. 

Enduring Value

It is exceedingly hard to define a sense of permanent value that will endure the test of time in any emerging industry. The quality of infrastructure is seen in things like roads, energy power lines, pipelines, internet bandwidth, and so forth. It is a value that not only offers a constant service to its users but also will continue to do the same in the years to come. At some point, it will become either obsolete or unnecessary, but until then, it has a strong enduring value. Blockchain is still trying to find its point in that long-term value potential. One of the key elements it offers here is sustainability in the educational domain. With enough young individuals being involved with blockchain tech early on, it is possible to create a new generation of professionals that will be able to create that enduring value. 

That fits well into the wider story of education and technology. One example of that process is the state of Singapore. This city-state decided to invest heavily into its technology, education, and trade over a period of more than 50 years. In that time span, the same location became one of the biggest financial and tech hubs in the world. It easily overcomes in these regards much bigger nations across the globe and will likely continue to do so in the coming decades. It too has created a huge space in its plans for blockchain tech. Others should follow its example and allow the same engine of economic development to provide a two-pronged approach. One would allow it to generate value in terms of substance, while the other would do the same in the educational domain. The second approach would also build value, but do it over a prolonged period of time when any investment in the same space is very much rewarded, just like the case of Singapore shows.