The Blockchain: A Path to Abundance?
Could the blockchain be the building block of a post-scarcity economy?
The way we produce, distribute and trade goods and services, as well as the way we manage our resources is mainly determined by the result of supply and demand. We have largely accepted these economic paradigms without even paying attention to them anymore. At its core, our economy is driven by the demand and the ability we have to supply that demand at the right price. If we look at this model of exchange, we can observe that our economy is driven by scarcity. This model has been the most efficient, not only because we have massively adopted it, but because we haven’t found a different realistic model.
As an entrepreneur in the digital space for the past 15 years, I have been an observer of the blockchain movement that can be commonly described as the Internet of Values.
It is obvious that there is something happening that is greater than the technology. Something that may greatly impact the structure of our exchanges and change our financial institutions, transforming our economy as a result.
From an economy of scarcity to an economy of abundance:
5 economic paradigms that may change due to the blockchain technology revolution.
1 — From price to value.
In a modern economy, prices are determined by the laws of the market and the fluctuations between supply and demand. In an economy of abundance, the price is no longer central to value. Instead it is the intrinsic essence of goods that determines their value.
The blockchain has seen the emergence of crowd-sourcing operations, which usually fund the development of the blockchains themselves. In the near future, these operations could descend to the level of the individual.
For example, we examine the role of a baker. We will consider that instead of producing and selling bread, the baker will not sell his products but create his bread and distribute it freely. Supported by crowdfunding local communities, the baker can create his bread, distribute it freely and live thanks to the community that supports him.
Let’s put aside speculation about tokens and consider ICOs for what they are or should be, crowd-sourcing operations. In the future, we could see these operations used for all people who have a positive impact on their community.
2 — From production to creation.
In the model we have just described, our baker is no longer constrained as a producer as he has been elevated beyond the problematic issue of a price determined by supply and demand. He is now a free creator because now he produces not a commercial good but a unique good that is the fruit of his talent and his passion. An economy of abundance should allow an individual to live and create in a unique way without waiting for his creation to have a price as a result of market forces. One can imagine that the final stage of this phenomenon allows each individual to become a creator of its own value and to a certain extent, of its own economy.
3 — From institutions to people.
The blockchain has already solved some of the major trade problems, such as not having to rely on an external organization or institution to allow two individuals or entities to exchange value.
The true potential of blockchain will be realized when individuals are able to send, receive, exchange and freely create values regardless from their location, identity and origin.
4 — From payments to exchanges.
Today the majority of payments systems are based on the concept of a central institution that guarantees the transaction between two people or entities.Thanks to the advent of decentralized systems using a public ledger, a transfer of a payment is possible without a central institution. It is a first step allowing a greater fluidity of economic transactions.
A logical second step would be to allow transactions without a monetary referent. This new way of trading could provide smoother access to trade, particularly in countries where the financial situation is corrupt or in cases where the currency has been depreciated significantly due to hyperinflation. This access to the exchange of value should re-empower individuals by giving them access to means of exchange and payment.
5 — From work to contribution.
In the example of our baker, the price has disappeared and it is zero or neutral and at a fundamental level allows the activity of the baker to exist solely through his passion. His desire to create in the field in which he excels and his ability to achieve his goals are directly linked to his community’s support of his trade.
Social networks have given us the first fruits of creator freedom. We can see it on artists who live thanks to their media channel and to their community, whether their income is from advertising or direct sales.
Other models of contribution are premises of this trend like the GNU licence or Wikipedia, which is considered as a public good now.
If this model works, it is no longer the price of the commodity that is at the center of our baker’s economy, but the value it brings to its community in choosing to contribute in a field where he excels.
In this case, we can no longer speak directly of work since the trade is exercised freely and independently of the result obtained from the prices of its products. It is rather a contribution or a participation to the collective. One can imagine a model where everyone can decide freely to participate, or not, by making a contribution for which he has a unique quality.
When abundance replaces scarcity.
In essence, the blockchain is a way to share and transfer value. Today, it is still seen as a potentially disruptive financial tool because it is automated and secured with the highest level of trust. But the reality of the blockchain may be more than a disruptive technology. It has the potential to help every system that is collective in some degree. It has the potential to bring more freedom and empowerment and to allow a new way to share, create and exchange values. It has the potential to be the first step towards an economy of abundance.
An economy of abundance seems today utopian for many, but like all evolutions (or should we say, all revolutions), they are often born in disorder and agitation and take time to become a reality.
It will probably take years or maybe decades before the economy of abundance becomes real, but it is probably a reality that deserves our passion, effort and patience, because…it is worth it!
