Blockchain Technology and its Impact on the Global Economy

Abstract

The world’s most valuable resource is no longer oil, but data. Smartphones and the internet have made data abundant, ubiquitous and far more valuable. Modern algorithms can predict when a customer tends to buy, a car needs servicing or a person is at risk of a disease. Meanwhile, artificial intelligence techniques extract more value from data. As individuals accumulate information which transforms into knowledge, entrepreneurs will want to use and/or share that knowledge. It is the sharing of knowledge that needs a decentralized, autonomous mechanism so that knowledge can be shared fairly amongst all peoples of the world, not just within corporations. Blockchain technology gives us that mechanism. Blockchain is one of a kind decentralized technology and it is distributed as well as decentralized ledger. Blockchain is the answer to a lot of obstacles the world has to go through today. Before today, nobody could think of transferring money from one account to another safely without any financial institution in the middle, like a bank. Blockchain technology presents a radical and disruptive new way of conducting all manner of transactions over the Internet. The advent of Bitcoin and the blockchain has brought a lot of change to the world of finance even the world economy was formerly run using fiat currencies. Introducing the blockchain environment will actually enhance the economics because in blockchain, all transactions are recorded right from the manufacturer to the buyer. This paper explores the emerging landscape for blockchain technology focusing on the economics.