Blockchain, the support function for a new web economy

Can the web economy and distributed intelligence somehow merge into a transformation for the development of a better economy?

To answer this question, attention must be paid to the network that in a short time has positioned itself as a support infrastructure around the large global communication network, the Internet.

The new network called Blockchain, from its particular block structure, is characterized by the particularity of using decentralized intelligences as opposed to the centralized feature of the intelligence used by the majority of operators on the internet.

Advances in blockchain-based platforms using smart contracts, distributed virtual registries and advanced decentralized public cloud computing resources are radically changing the vision with which we have taken the habit of sharing the value of productive initiatives that develop the economy of the web and the significant parameters with which we measure their economic growth.

In particular, some founding values ​​have been affirmed which, in the blockchain, have found the practical support for introducing structural and meaningful changes in its practice.

Each new economic activity can be assessed in terms of the potential for environmentally sustainable development, the ability to generate profit, generate greater competitiveness by introducing product and process innovations, but the activities that develop on the blockchain have access to new possibilities of exploitation.

More precisely, blockchain introducing in an ecosystem the opportunity to share a distributed digital encrypted instrument, dedicated to the transactions of values, makes the exchanges in the ecosystem independent from any economic institution external to the perimeter of the real space in which the exchange materializes.

This action represents a disruptive innovation.

First of all, it changes the perception of the space of economic significance in those who develop the initiative.

All global initiatives share a space independent of the territory in which they develop, but in the case of the blockchain the global reference space is enriched with a new monetary variable that makes new degrees of freedom available. Introducing new degrees of freedom to the industrial initiatives generated with this technology are produced offers no longer dependent on the obligation to circulate the so-called FIAT coins in the economic exchange areas, freeing trade and the formation of value from the influence of external monetary policies to spaces in which it generates value.

This makes available a space of higher dimensional order in which to generate productive offers, and the production units that settle there will end up being attractive to those groups that develop their productivity in smaller dimensional spaces. In spaces that are sharing the dimension without monetary independence, they are forced to suffer a monetary dependence external to their economy. This is the case of all production units that develop their productivity on the web using centralized intelligence and Fiat coins, in which the value of money is not influenced by the economy of the ecosystem in which industrial activity develops, but depends on external factors that have nothing to do with the economic area of ​​reference in which industrial activity is affirmed.

The blockchain therefore introduces one more variable in the analysis of economic models: the possibility for an industrial project to generate its own economic growth also through synchronic or diachronic growth of the value of its own currency.
On the blockchain it is possible to realize industrially independent industrial districts. Which have a growth dimension more than those that express their economic possibility in spaces characterized by centralized technologies.
In this every new blockchain project is disruptive in terms of value generation in relation to the economic spaces of the web where projects that do not use it are developed, i.e. it generates value attraction thanks to the possibility offered by technology to create better and competitive economic areas not only on the industrial level but also on the monetary one.

The phenomenon of attrativity materializes in a transformation between sets of production, which can generate improvements provided that there is an affinity between the sets being transformed and that the spaces of belonging are actually of different dimensional order, in particular that of order lower turns into that of a higher order.

The function that describes the transformation is the support function and represents the space resulting from the upgrade generated by the movement of one set towards the other.

This is a new space for those used to proposing projects that are forced into a centralized dimension.

It is a space of higher order. It has an extra dimension.

The mathematical theory of convex, as it was in economics represented by the Nobel Prize Debreu and by the other students who have implemented it up to the present day, teaches us that each set of inferior order is transformed into a whole of a higher order .

So today some of the diseconomies that most affect the economy will be overcome by the young blockchain entrepreneurs, those who everywhere in the world face the challenge of new industrial startups on the new network.

The dimensional condition is undoubtedly fundamental and involves the use of an infrastructure, the blockchain that makes possible the introduction of a cryptocurrency service, but so is the condition of affinity, or the possibility of generating productivity in the ecosystem through production processes and exchange services similar to the centralized underlying ones.

The competition is fierce, of course, the pressure on a global scale is intensifying, new projects are born at an accelerated pace, but the 2018 vintage shows that the expansive trend in the global blockchain space has had to face a slowdown in the development of new projects.

The space of a lower order is occupied by the giants of the web economy who occupy consolidated productive areas characterized by centralized intelligences, interdependencies with private and public financial institutions that are committed to controlling their evolution.
The space of higher order to date is not practically inhabited.

Even if the transformation is under way we are in a phase in which there are no similar production districts in the lower order space and many startups flourished in the era of ICOs read or are in difficulty or even failed.
There are no industrial projects that have occupied that space by taking advantage of monetary independence.
It seems that rather than a function of support for the transformation from a production set of a lower order to the higher one we are witnessing the inverse transformation.
The old web would like to turn blockchain into a sterile tool at the service of the status quo.

It is therefore worth analyzing the 2018 reports of independent agencies and specialized communication where it is easy to see that the weakest point in the development of this new economic space is the lack of industrial proposals and a senseless use of crowdfunding through ICOs.

Over the past 24 months, but especially during 2018, ICOs have been working hard to burn the charm that the new digital block infrastructure had acquired over a period of at least five years, and everywhere the new register distributed had led the eye of the technology market.

There has been a bad reputation that is negatively affecting the achievement of resources for start-ups with digital currencies and a belief is growing in the market that many of these circus altcoins will not exist in the near future.

As it was possible to read from the numerous reports of specialized bodies in 2018, all data indicated a considerable drop in fundraising through ICO as early as the third quarter of 2018.

In particular, the report, conducted by the independent research company ICORating, revealed that overall, during the third quarter of 2018, a total of over 1.8 billion dollars had been collected for a total of 597 ICO projects. , a sharp decline compared to over $ 8.3 billion in the second quarter of 2018, and that only 4% of ICO tokens were traded, and 57% of ICO projects were unable to collect more than $ 100,000 USD. Moreover, a high rate of bankruptcy and abandonment of the projects that had been proposed to use tokens for transactions relating to an economic action that was too often without an industrial underlying or rather to proposals stimulated by a prevailing will to exit their founders, was experienced. which tokens had only the ambition to encourage a quick exit scam, real shitcoins to take the money and run away.

There was also a large presence of projects without products or with immature product ideas, so much so that many start-ups that had raised funds were exhausted and there was the death of the software code that defined the initial offer of the coin.

Listening to the voice, fortunately more and more silent today in the market, of the illusionists of the cryptic world, the various experts, advisors, incubators, influencers and many others, that aggregate that today has accumulated many volumes of crypto currency could resume to invest through funds crypto or through those security coin offering (SCO) born to replace the ICO shortly.

But 2018 showed signs of general disappointment not just in traditional ICOs.
Even hedge funds and venture capital funds based on digital assets, which although growing, do not yet seem ready to satisfy private demand, probably due to poor regulatory conditions and the presence of a number of operators more inspired by speculative intoxication rather than economic skills and industrial will.

Blockchain startups that do not even have a live product, a quoted token or a structured commercial network, will have difficulty staying in a market so cool, and this is good because these are not the projects that can activate the virtuous transformation between the production sets, as they are not at all.
However, staying alive until they are truly operational and will be able to scale the market with a real industrial challenge will prove to be more difficult as the amount of money they need to raise is no longer available in a scenario where ICOs that we used to observe at the beginning of 2018 will have to be completely replaced by other solutions not yet well defined.

But certainly, before hoping for new crowdfunding solutions, the crypto communities and entrepreneurs who have embarked on the blockchain adventure, one should question why they have wasted so lively and precious crowdfunding.
Perhaps questioning the fact that crowdfunding in the cryptic world having been so successful could have undermined the integrity of individual operators depriving them of the necessary sense of responsibility towards the real scalability, supervision and structuring of their proposals.

The bubble that occurred at the end of 2017 and early 2018 generated substantial capital injections in blockchain projects.
It is known that many of these projects were nothing more than skylark mirrors with no other value than that of keywords such as block or chain or “blockchain” and crypto in their sites or logos.
Some were completely frauds, other true Pindaric flights.
A very significant fraction of the market is dead.
There are also operators who, in the wake of the euphoria of the increases, have been indebted and financed speculative trading activities, suffering serious losses.

Once the scams were discounted, the market makers, the pump & dump, the over-hyped and under-designed start-ups and all those incubators who assumed that the blockchain was a miraculous potion for otherwise mediocre business ideas remained, were some fundamental facts:

There is a real technical innovation in applying cryptography to distributed databases; cryptography is generally underutilized in the real world and the potential value resulting from the broader application is genuine.

The main public blockchains have demonstrated stability and security despite the introduction of new mechanisms of consensus and predictability.

Blockchain is a place where to set up productive districts, or ecosystems founded by authentic technical and economic innovations.
It is the place where the network emancipates itself from certain constraints that the financial decadence of financial institutions is imposing on the web.

Much of the money invested in tokens in the last year has been dedicated to investment, not to consumption, and investments follow cycles and cycles of retreat are inevitable for innovative products that take time to develop and mature, but it is necessary that money pursues projects with industrial substandards of value, not mediocre, even destructive, that create attraction towards the productive realities that have established themselves in the places of the network that still do not have the trump card blocking.

Only in this way will the function of supporting the transformation of the web economy in the blockchain economy be manifested.

Philippe Perotti