How Emerging Technologies Are Shaping the Future of The Global Economy

The world is on the cusp of a digital revolution, with innovation disrupting the way we do everything from using devices and gadgets to performing financial transactions.

New asset classes

The digital economy is growing at a rapid pace all over the world. Today’s 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), Internet of Things (IoT) and 3D printing, are playing a key rule to fuel this growth.

New technologies present assets that are likely to dominate the global economy in the future. For example, the blockchain has virtual coins and tokens that have grown in popularity exponentially in a short period of time.

Great players entering the game

Blockchain allows users to transact securely and much faster than traditional methods. The functionality of the blockchain has 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 a traditional asset (USD fiat currency in this case) 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 collaboration with artificial intelligence firm SparkCognition to develop blockchain-based traffic management solutions for unmanned aerial vehicles.

The game changer

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 differentiator between security tokens and traditional securities. Using smart contracts on the blockchain eliminates the need for an intermediary, thereby reducing transfer costs. This ease of use of the blockchain has the potential to significantly affect the traditional banking system. It can also eliminate the need for money as a medium of exchange, as all assets are liquid, instantly available, and divisible.

Automation and artificial intelligence have already made their mark in many markets. Trading algorithms have overtaken human traders. In manufacturing, machines have occupied many of the jobs previously performed by humans.

Need a new frame

In this rapidly changing economy, it is no longer possible to rely on traditional decision models and methods. To keep up with new developments, such as DAO, AI, VR, P2P and M2M, it is imperative that we 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 proceeding at a rapid pace. Over time we will have a clearer picture of the developments that will dominate this new Web 3.0 economy, but it is clear that this economic revolution is taking place on a global scale.

Source by Sal J

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