The world is at the dawn of a digital revolution: innovation disrupts our way of doing everything from the use of devices and gadgets to the completion of financial transactions.
New classes of assets
The digital economy is growing rapidly around the world. The current digital economy is characterized by the creation of new asset classes and the digitization of traditional assets. Emerging technologies, such as blockchain, artificial intelligence (AI), the Internet of Things (IoT) and 3D printing, play a vital role in this growth.
New technologies have assets that can dominate the global economy in the future. For example, the blockchain has virtual coins and tokens whose popularity has grown exponentially in a short time.
Great players entering the game
The blockchain allows users to perform transactions safely and much faster than traditional methods. Blockchain features have attracted many leading technology and financial companies, including IBM, Oracle, JP Morgan Chase and Boeing. For example, IBM recently partnered with Stronghold, a financial technology company, to launch a dollar-backed cryptocurrency called Stronghold USD. This virtual currency is an example of how consumer confidence in traditional assets (USD cash in this case) is used to support a digital asset.
There are also examples of companies combining two new technologies to provide solutions for the future. Aerospace giant Boeing recently announced a collaboration with the artificial intelligence company SparkCognition to develop traffic management solutions using a chain of blocks for unmanned aerial vehicles.
The game changer
The symbolization of assets 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. The blockchain can be a differentiating factor between security tokens and traditional titles. The use of smart contracts on the blockchain eliminates the need for an intermediary, thus reducing transfer costs. This ease of use of the blockchain is likely to significantly affect the traditional banking system. It can also eliminate the need for money as an average exchange because all assets are liquid, immediately available and divisible.
Automation and artificial intelligence have already made their mark on many markets. Trading algorithms have outpaced human traders. In the manufacturing sector, machinery has performed many of the tasks previously performed by man.
Need a new framework
In this rapidly changing economy, it is no longer possible to rely on traditional models and decision-making methods. To follow new developments, such as DAO, AI, VR, P2P and M2M, it is imperative to develop a new framework. In other words, we need to go beyond Munger's mental models and focus on numerical models, such as network theories and exponential growth models.
The digitization of our economy is happening at a rapid pace. Over time, we will have a clearer idea of the developments that will dominate this new Web 3.0 based economy, but it is clear that this economic revolution is happening on a global scale.