Why Blockchain will change the world for good
Blockchain will change the world for many reasons. The most obvious is decentralization in the transmission of value, which will mean that we no longer need States that issue currencies, nor banks that keep our savings and certify our payments. This can generate a series of very powerful chain effects:
Empowerment of people in front of the system. The Internet already provided people with almost unlimited access to information and that allowed people to rethink why they could not do things as they did in other parts of the world, and most importantly, allowed a substantial improvement in the organizational capacity of all those people who thought that things could be done differently. Thanks to the internet, movements such as the Arab Spring, free software and the birth of blockchain could emerge.
Blockchain takes that empowerment to a higher level by allowing these communities to issue their own cryptocurrency or token, created in the image and likeness of their corresponding community, and governed by their own rules. The capacity of a decentralized governance is something very powerful that is only possible in an effective way thanks to blockchain, although it is true that we are very far from reaching models that successfully develop this potential.
A currency has value as long as there is a community that adopts and uses it, that is, that believes in that currency. In the world there are many citizens of poor countries who save in dollars and even use the dollar as a reference value because they do not believe in the currency of their country. With cryptocurrencies the same thing happens, its value is determined by the size of the community that believes in said cryptocurrency, either as a way of saving or reserving value (case of bitcoin and security tokens), or because they demand them for its use as in the case of utility tokens such as Ethix.
All this leads me to think that the traditional logic of accumulation of power based on capital has its days numbered. From my point of view each cryptocurrency is a split of the traditional financial system. It means stop using the Dollar, the Yen, the Euro or any other Fiat currency as the basis of the economy to start using an independent and independent economic system among the participants in that community.
The governance of these cryptocurrencies is fascinating. If the users of a cryptocurrency do not agree with the management that is being made of it or believe that the interests of a few are being privileged, they can promote a fork, a new cryptocurrency with small modifications on the original, and if part of the community believes that these modifications are positive, this new cryptocurrency will have its own community.
In the traditional economic system (and this phenomenon has even increased with the advent of the Internet), large corporations maintained the status quo by acquiring emerging companies that could attack their market. In the world of cryptocurrencies, if a project has promoted decentralized governance, the ability of these corporations to buy the startups that threaten them is very small. When creating projects around an idea and values, if a corporation tries to integrate that project, users will surely propose a fork so that the project remains independent and aligned with its values.
Until now, the use of fiat money was imposed by the States because there was no better solution, but a cryptocurrency for each project and each community is a better solution, since by moving away from centralization, the oligopolies’ ability to influence is also removed or at least reduced.
The big question is whether in the end this model of decentralized companies and communities will triumph.
From my point of view, decentralization will triumph among other things because of the incredible competitive advantage of the models without commissions to remunerate the promoters and “shareholders” of a project. Until the arrival of blockchain basically there were two business models: big margin and little rotation, or little margin and a lot of rotation. Blockchain allows a new business model; the token. If the promoters keep a percentage of the tokens issued and the token buyers receive a benefit for their use, the need to charge commissions is eliminated by transferring the value to the activity of the token instead of the capital, and therefore these companies can be much more competitive than their counterparts operating in Fiat, even without taking into account the other competitive advantages that blockchain provides such as transparency, immutability, smart contracts, low operating costs ….
If this is the case and in the end the economy migrates to blockchain, the changes in the world as we know it can be very profound.
I always say that technology per se is not good or bad but it is its use that determines whether the result is positive or not; Blockchain can be used for many dark things of course (the same as nuclear energy, a hammer, or the Internet), but its nature makes me optimistic about its impact on the world for two reasons:
If all transfers are transparent and immutable, corruption by default will tend to disappear.
If all your behavior as a user (your can be anonymous but your user don´t) is fully transparent, you are encouraged to act good.
Community is key for a cryptoproject and it is easier to create a community around a positive impact project and EthicHub is proof of that.
Join our proposal for a better financial system in which mutual benefit is the basis of economic development. www.ethichub.com
