Blockchain holds hope for solving not just one but several of the worlds problems. Blockchain adds authenticity in a world of fake news and phony facebook pages. In the future, company size will no longer be the currency of trust and those born into a disadvantaged situation will be able to conduct business across the world at eye level with even the wealthiest consumers.
Ferdon believes creating a smart contract or digital agreement is a right not a privilege. Our tools will be made available at no cost to those who are using blockchain to bring about a more fair and ethical world.
At the outset blockchain’s most talked about feature was its’ ability to remove the cost of activities that support the delivery and payment of a service or product - but don’t directly participate in the creation or exchange of said products or services (i.e. those that don’t add any value in the process). Therefore removing a previously accepted middleman or ‘necessary evil’ that weighs down nearly every transaction with dead weight.
The removal of non-essential costs adds value back into the economy and can provide a ‘sea change’ in economic opportunity. This is essentially an egalitarian idea because the less well off you are the fewer trust factors surround you. For people on the lower strata of society in rich countries and people living in poorer countries, the dead weight added by various middleman parties can be more than 90% of the value of the entire transaction.
Removing dead weight via blockchain benefits the entire economy and adds incentives for people to innovate and find new ways to thrive.
In an ironic twist, despite blockchain having an indisputably profound effect on the way people think of the future of financial markets, supply chain management and healthcare to name just a few industries, the process of starting a business on the blockchain became rife with inequalities and middleman taxations. The epitome of irony.
The largest members of industry segments where blockchain was winding up a powerful storm of creative destruction, suddenly became the custodians of the future of blockchain and the big deals of Fortune 500 companies -- and not decentralization -- became the new measuring rods for the growth of blockchain. The great equalizer effect of blockchain was priced out of reach of those that needed it the most.
One very important point seems to have been missed, it's not the blockchain that empowers people, it's the smart contract (or digital agreement) running on the blockchain that empowers people. When the cost of building a smart contract is high, the creator of the smart contract holds leverage over its users and can extract a tax from its users. More importantly, the impetus for innovation no longer comes from those trying to remove the yolk of middleman taxation but from the profit motive of the professional entrepreneur. Blockchain cannot be transformative until we democratize the smart contract, which we prefer to reference more broadly as a digital agreement at times.
The transformative technology of the blockchain revolution was not matched by a like innovation on the business side. To date, smart contracts have been manufactured much the same as appliances or cars.
Lets compare the current business model with a hypothetical business model driven by an organic need:
We described above how the high cost of building a smart contract leads to business models that commoditize the smart contract which in turn creates a producer-consumer relationship in the creation of a smart contract that requires regulation and capital investments usually through an ICO or STO. As already mentioned, this model nullifies the original objectives of blockchain by placing creative destructive powers of blockchain in the hand of those whose business models are not tenable in a post blockchain world. The proceeds of cost reductions are owned by the party who was originally applying a middleman tax to the transaction and, more often than not, used to pad profits