The Blockchains Technology Revolution of and its Impact on the Economic Sectors

By Ismael Santiago (Universidad de Sevilla)

Today we are witnessing a dilemma in the capitalist system, where the benefit, as we know it (and backbone of this economic system), you could end up evaporating.

According to Rifkin (2014), intense global competition is facilitating the continued emergence of a new and extraordinary technological infrastructure with the potential to boost productivity and reduce to almost zero marginal cost (the cost of producing each additional unit is practically nil, making the product ends up being virtually free) of large segments of economic life in the coming years.

This would trigger a new economic paradigm, where technologies such as blockchains, Big Data and the Internet of Things (IoT) will play a leading role.

In the digital age, the most important asset is the data. That is why companies recognize the strategic value of information and use it to cooperate and compete, are more productive and earn higher profits (Rodriguez, 2016).

For Rayón (2016), the confidence of citizens in the digital world is crucial for companies to tap the economic potential of information and data.

Cisco ISBG, assets are expected to be 50 billion devices connected to a population that is expected to 7.600 million people in 2020.

In this context, it is relevant that 90% of the world’s data have been created in the last two years, and every ten minutes many photographs in the world as all those made in the nineteenth century and part of the twentieth are made (Rayon , 2016).

According to Tapscott, the technology that will have the greatest impact in the coming decades will Chain Block (blockchains).

These facilitate the democratization of information through a database decentralized and open data, running on millions of computers and works great as a ledger, which is increased, as they are producing movements validated without possibility of deleting or modify by anyone. This gives legitimacy and the ability to manage transactions through the network, between people who are not known.

In addition, blockchains give rise to what we call the Internet of Valor, where every kind of asset, from money to music, can be stored, moved, processed, exchanged and handled without power brokers. These chains of blocks may contain any legal document, and intelligent contracts, which could change the way in which businesses and individuals operate and work today.

Also for Tapscott (2016), the problems that affect the entire world population is social inequality. However, the Internet Value (blockchain with technology as the core) and criptomonedas could allow developing new ways to create wealth democratically, with the participation of many more people in the economy, seeking fair compensation for their work.

The blockchain technology can be applied beyond the finance sector to improve the way in which business, agriculture, energy management, data and identity and an endless number of improvements that are yet to be discovered are made.

As Victor Hugo said, “nothing is more powerful than a good idea that the time has come”.

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