Semantic smart-contract based ecosystems

And Problems of Fragmented Markets

Fragmented Markets and Ecosystems

Let us call fragmented those markets that have large number of types of client with very different demands. One company cannot possibly satisfy such markets because of a wide and diverse spectrum of demands.

Examples of fragmented markets:

Services for SME;

Mobile services and applications for consumers;

Consumer clothing;

Infotainment;

Games;

Chatbots

To satisfy this type of markets a platform/marketplace model is the only possible solution. Another definition is marketplace, or ecosystem. With this model, many participating service providers are able to cover the most of the demand spectrum due to their multiplicity.

The advent of blockchain allows to move the marketplace model to a new level removing the necessity of the central coordinating entity. Decentralized ecosystems/marketplaces will compete with the centralized ones. The results of this competition are yet to be seen. However, in retrospect, we can assume decentralized systems with due technological support will prevail. The very simple economic reason for this is that they allow higher grade of division of labor, and thus allowing more effective value chains. Let us recall how Internet has replaced and embraced all those Compuserve’s, AOL’s and their alikes, or how mobile operators superseded telecom monopolies.

Distributed ledgers, like blockchain or IOTA Tangle, help to solve the problem of trust management in the network of interacting subjects. I disagree when I hear about trustless systems. Trust is an inseparable part of any economic relationship, otherwise the subjects of such relationship would never enter into liaison. Distributed ledgers facilitate trust management in the decentralized systems.

Why Should Technocrats Bother About Decentralized Ecosystems?

Because they want to expand the field of application for high technologies and benefit on it. Globalization happens for objective reasons, but the subjects who drive it, can influence the way how it happens at their will.

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