From Baby boomers to “Generation Z”
The world is changing in a rapid pace driven by science and technology. Economy is a living organism evolving in that pace. Information attacks and change the structure of the economy as technology invades our lives. Although, information is not only the input into the economic system but also the output which reshapes the structure again and again.
Airbnb and Uber introduced us to the sharing economy model, an alternative economic system which shifts between “ownership versus access” and it witnesses various degrees of influencing the individual finance. Millennials prefer to avail services when they need it, rather than owning it.
“Technology has on one hand democratised access to services and at the same time allowed anyone and everyone to be a service provider. So, what does this mean for you and me?”
According to a PwC report, the sharing economy is similar to the pre-industrial age where people exchanging goods to make a living. “Modern digital communications allow sharing to happen across a global village of consumers and providers, with trust established through electronic peer reviews,” the report says. But even though the idea of sharing is old, the digital world have boosted the accessibility and the convenience to users who now have a better ability to seek thinks out and obtain them easily.
Millennials: The test drivers
Millennials do share! They structured the sharing economy where they are constantly sharing belongings and ideas, using technology and social media but they also share values and visions for a more sustainable world. They are a more collaborative and team focused generation with a common goal, to innovate towards a better society.
Generation Z : Millennials version 2.0
While the millennials still remain today’s driving force, Generation Z is waiting around the corner to enter the workplace. But what is their impact in the existing economic system?
Generation Z are the ambitious youngsters that they will share better. Improved living and working standers, more robust international trade and marketplace transformation are some examples of their impact in the new economy.
They work better as individuals, in their own times and places where they prefer to buy their own benefits, rather than receiving them from an employer or other party, despite the challenges. According to recent reports, it is estimated that by 2027, half the country’s workforce will be freelancers.
But how freelancers will contribute into the New economy and what parts of that system will change? How the future of the workplace market will look like?
Freelancers replace full time employees. From a company’s point of view, assigning a task to a freelancer instead of hiring a full-time employee is less expensive and often a freelancer provides a higher level of expertise in the certain area, so it can fit better to a certain need.
Co-opetition. Undeniably, competition is challenging the levels of progression in a society among teams and members through the years. But when competition is merging with cooperation that can lead to better outcomes. Different disciplines influence one another, coexisting as different entities in a system in which they work towards increasing value.
Blockchain as the tool. The definition of blockchain is “a digitised, decentralised public ledger for all cryptocurrency transactions.”
All the transactions and information transfers are monitored and placed in a chronological order in order to be accessible to anyone on the blockchain.
This transparency eliminates the control of governing bodies and allows individual to transact peer-to-peer. This powerful tool which is enhanced by this peer-to-peer ethos is congruent with the foundation of the shared economy and it is a magic wand on new generations hands. Freelancers have the power to work directly with one another, sharing services in a shared economy using blockchain tools.
Blockchain is well-known for underpinning cryptocurrencies such as Ethereum and Bitcoin, and it is the next step in the evolution of sharing services. “Immutable, binding smart contracts that hold parties accountable power the blockchain; these contracts define and enforce the rules of an agreement, which means they operate as the substitute referees within peer-to-peer transactions.”
It has also the potential to transform various industries, including banking, ride sharing, crypto exchanges, cloud storage, insurance, real estate, charity, retail and much more. Reputed companies like Samsung and IBM are also adopting blockchain technology to offer innovative solutions and ways to enterprises and startups.
