A global, broad spectrum gig economy in the making
Graphic representation of what a Multichain Decentralized Economy could look like. (Image by Innovationstew)
The Intro:
Whilst most people have heard the terms “blockchain” and “decentralization,” most have spent little time thinking about how exactly (and what exactly) is going to change because of it.
Since blockchain was invented in 2009, the industry has already seen a rise to thousands of cryptocurrencies, many of which are already solving real-world problems today, most notably in the financial sector. But it won’t be long before there are thousands of more cryptocurrencies on the market — even tens of thousands.
The economic ecosystems being built as a result of decentralization enabling technology will revolutionize the world, and the most exciting part is it’s just getting started.
The Innovation:
Envision this: Everyone from the people that build & maintain the roads in your local area to the people that provide your internet service, all decentralized contractors, all being paid in digital currency.
Your favorite online entertainment platform — It’s probably using decentralized smart contract technology, and it’s probably developed by a diverse team of software geeks spread across the world who applied for the job via a decentralized job platform (such as keep3r.network), all working remotely and all paid in — you guessed it: digital currency.
If your mind is already blown, prepare yourself for what I’m about to say next because we’ve only covered but the tip of the iceberg.
Every major corporation is likely to issue its own cryptocurrency. Similarly, every country and every state will have one, maybe even every city. These cryptocurrencies will serve many purposes, not only as a way to speculatively trade and invest in the region but as a way to pay local taxes to the treasury, which will then be used to pay for infrastructure, create jobs and so on and so forth.
Everyone will be incentivized to do their job properly, efficiently, and to the best of their ability, especially those in power. Having to stake collateral to incentivize against abuse will be the norm in many job positions.
Your local government will be incentivized to build a safe city with good education, fun activities, and a strong local economy. Why? — the value of the land in the region, the businesses, the happiness of the people, and ultimately the value of the local currency will all go up.
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If the relative price of a city’s currency is going up, guess what — that will attract even more buying pressure to the currency and make the cost of living in the area that much cheaper! The taxes due to be paid by the city to the state (in exchange for services), which are paid in the state’s currency, will therefore have become cheaper for the city.
The more cities contained in a State whose currency’s are increasing in value, the more that State’s currency will attract capital investment (from inside & outside the state). In turn, the decisions the State makes will also affect its Currency’s value. The logic then repeats itself onto a federal level.
Summary:
We are in a new era of democracy. A trustless democracy where you vote with your money. The fundamental concepts of this are already present — For example, if the president of the United States makes a poor decision, the value of the Dollar can go down.
The big difference now is that currently, the American people are inadvertently forced to transact & hold their wealth in the Dollar. Furthermore, the people and corporations in America make up the bulk of the holders of the United States Dollar, thereby making the Dollar a monopolistic currency inside the country.
As long as that remains a reality, it’s simply not practical to use alternative currencies on an everyday basis.
The good news: Change is coming, and it’s just around the corner.
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Cryptocurrencies & Decentralization: The Next Frontier was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
