The world is on the brink of a digital revolution, innovation is disrupting the way we do everything from the use of appliances and gadgets to financial transactions.
New asset classes
The digital economy is growing rapidly around the world. The modern digital economy is characterized by the creation of new asset classes and the digitization of traditional assets. New technologies, such as blockchain, artificial intelligence (AI), the Internet of Things (Internet of Things) and 3D printing, are playing a key role in the development of this growth.
New technologies represent assets that may dominate the global economy in the future. For example, in the blockchain there are virtual coins and tokens, the popularity of which has grown exponentially in a short period of time.
Great players coming into the game
Blockchain allows users to execute transactions securely and much faster than traditional methods. Features of the blockchain have attracted many well-known technology and financial companies, including IBM, Oracle, JP Morgan Chase and Boeing. For example, IBM recently teamed up with financial technology company Stronghold to release a dollar-backed cryptocurrency called Stronghold USD. This virtual currency is an example of how consumer confidence in a traditional asset (in this case a dollar currency) is used to support a digital asset.
There are also examples where companies combine two new technologies to provide solutions for the future. Aerospace giant Boeing recently announced a partnership with artificial intelligence company SparkCognition to develop blockchain-based traffic management solutions for unmanned aerial vehicles.
Asset tokenization is not limited to traditional assets such as currencies. The new market can use the intrinsic value of a wide variety of assets to provide security tokens. Blockchain can be a differentiating factor between security tokens and traditional securities. Using smart contracts on the blockchain eliminates the need for an intermediary, thereby reducing transmission costs. This ease of use of the blockchain can significantly affect the traditional banking system. It can also eliminate the need for money as a medium exchange, as all assets are liquid, instantly available and divisible.
Automation and artificial intelligence have already made their mark in many markets. Trafficking algorithms have overtaken human traffickers. In the manufacturing sector, machines have taken up a lot of work that people used to do.
The need for a new structure
In this rapidly changing economy, it is no longer possible to rely on traditional models and decision-making methods. To keep up with new developments such as DAO, AI, VR, P2P and M2M, a new structure needs to be developed. In other words, we need to go beyond Munger’s mental models and focus on digital models such as network theories and exponential growth models.
Digitization of our economy is happening fast. Over time, we will get a clearer picture of what events will dominate this new Web 3.0 economy, but it is clear that this economic revolution is happening on a global scale.