Blockchain: Many Bankers, Bureaucrats And Lawyers Could Become Redundant

Blockchain’s existence as a digital decentralized currency allows transactions to be executed in a decentralized network, instant, frictionless and anonymous. The process is initiated by distributing trust from powerful intermediaries to a wide global network, through cryptography and mass collaboration.

The supporters of this technology believe that blockchain technology will allow collaborators to work side by side rather than in the current centralized organization model. It will create co-workers in a controlled environment rather than employees in hierarchical organizations. This technology can truly turn current organizational models within companies upside down, in particular in governmental bodies, banks, and the likes.

Does blockchain really has the power to transform organizations?

The judicious and prudent roles of “control” within an organization would be contained within the blockchain. These roles include managing transactions, agreements and contracts. Businesses might start cutting back (heavily) on this type of staffing once Blockchain becomes mainstram.

There are still a large number of technical glitches to be solved. Moreover, the exact ways in which blockchain could bring innovation and change might be too soon predict at this stage. But, one thing is clear, blockchain is a technology that will bring disruptive change once the technical and legal framework become stable.

Fundamentally, the disruptive power behind blockchain is simple: rather than facilitating a human, the task will be taken over by a system. As we enter the second generation of the Internet, blockchains may radically cut transaction costs. Smart contracts on blockchains will reduce the costs of enforcing contracts and making payments. Autonomous agents on the blockchain eliminate agency and coordinating costs leading to highly distributed enterprises with no management.

Many bank(er)s, bureaucrats, lawyers, and accountants could disappear

Last year, Microsoft introduced blockchain to run their business more efficiently. Similarly, small sized firms are designing various apps using the power of blockchain.

Newlyweds in Singapore, reported their prenuptial built in Ethereum Smart Contract mentioning that blockchain and its endless possibilities have transformed people’s lives by solving day to day problems. Since the couples have planned to get married this year, they immediately thought of displaying their pre-nup on the blockchain as a smart solution.

Nasdaq, being the first major exchange operator used the technology to issue and transfer the shares of privately held organizations.

Ethereum runs on Blockchain’s ledger functionality, similar to Google Docs. “Smart contracts” enclosed in the blockchain allow you to do securely business with people with whom you are not familiar. “An Ethereum contract collect proposals from your backers and submit them through an online voting process. The benefits of owing such a robot to run your enterprise is resistance to external impacts as it is authorized to process in the way it was designed to.”- Ethereum project.

Blockchain adds value of trust by allowing companies to reduce staff and organizational functions. “The Internet as we know is flawed when it comes to privacy and commerce. Blockchain is the only application for this great innovation that can hold any legal document from marriage licenses to deeds. The personal information is secure and reconciled by mass collaboration and stored in code on a digital ledger. Trust is itself built in the system”, say researchers and authors Alex Tapscott and Don Tapscott in their book, “Blockchain Revolution”

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