What Crypto Is Shaping The Digital Revolution

In the digital transformation that has taken place over the past few years, the rise of Crypto has brought new energy and sought to transform the global financial and regulatory organization.

Recently, Placeholder research analyst Mario Laul wrote a detailed account of this phenomenon, discussing the flow of the new digital transformation from the principles of technological change in history and the unique, challenging and future implications of crypto. for modern life. Crypto-core transformations are not only commercial products, but processes and innovations related to the development, distribution, integration, programmability, automation and management control of free and open software. source.

In this article, updates related to blockchain and Web3 have been compiled as Crypto and separated as part of a digital exchange. The digital revolution began in the 1960s and early 1970s, and the advent of packet-switched networks, microprocessors, and other technologies led to the proliferation of personal computers and the Internet.

On this basis, we wish to broaden and widen the discussion on the digital revolution through three factors:

It provides a brief theoretical summary of the two major phases of technological advancement.

The organization and exchange of past changes in industry (between petroleum, automotive and large-scale manufacturing) and current exchange data (in digital form and communication technology) were compared.

Watch how Crypto, a civilization and a combination of innovation, improves international organizations and governance as digitization continues.

This book uses “ICT” as a short text for digital information and communication technologies and “the ICT revolution” as a short text for the digital revolution. "Crypto" here refers to all the latest developments related to blockchain and Web3 technology, and not just encryption.

01,From installation to deployment

The wavy period model is a popular theoretical model of industrial improvement. There are many differences in these models, each focusing on different drivers including demographics, credit / debt, economy, and culture. The basis of the economics of innovation is the philosophy of Joseph Schumpeter, which focuses on economics and innovation.

In the Schumpeterian tradition, Carlota Perez is known for her contributions to the theory of technological change and change in the technological industry. He divided the development of the history of modern industry into five stages, each driven by technological differences. These technologies have only started to be used in a few large countries and are slowly spreading to other parts of the world.

For example, in the United States at the turn of the 20th century, petroleum, automobiles, and modern mass production led to potential urbanization and a consumer lifestyle. At the end of this century, new innovations in ICT brought about new changes in relationships and processes.

In Perez's model, all of the business changes were caused by the "big bang" situation. So-called "big bang" cases are usually large operations, such as Stephenson's Rocket steam locomotive, Ford's Model T car, or Intel's 4004 microprocessor.

The technology change lifecycle can be divided into four stages: insertion, peak, engagement and growth.The first two phases lead to the technology update implementation stage. In the meantime, new technological processes and key industries are developing, and slow personalization and care will lead to an uneven distribution of new benefits.

According to the theoretical model, the last two are the expansion of exit technology. Meanwhile, capital formation (i.e. non-financial corporations involved in manufacturing and real services) has become the norm. Realization.

Figure 1: Life cycle of technological change

The key point of the technology and industry transformation theory is that the preconditions for the new concept are already in place at the implementation stage, but the changes in relationships and business that it brings. can only be seen at the time of transfer. .

Indeed, for the full potential of a technological revolution to emerge, it must be studied regularly and repeated over a long period of time, in particular through the integration of different groups. In general, changes in the use of technology and industry appear to be facilitated by start-ups and competition, while relationship systems have to be compromised. .

But eventually, new integrated technologies and processes will come on top of old standards and take root throughout the community. Even the most conservative organization needs to change.

As technological change has intensified, the original company and relationships will become the same, and "old," the start of the next wave of innovation. , can replace all old companies.

Figure 2: Three modifications of the modification system

The above points seem strictly. In fact, every technological change has many obvious implications. When it comes to the digital revolution, cryptography can be seen as the answer to the basics of transmission, leading to digitally different types of organizations, lifestyles and governance. But more importantly, some experience has emerged in the transition to understand how Crypto was able to influence the early digital transformation of the cryptocurrency market.

02,Mass manufacturing and the ICT revolution

Two main forces are driving the digital revolution to the export stage.One is the pursuit and mass adoption of major updates.He develops a new concept in all aspects of business organization, customer life and relationships.The second concerns the problems and opportunities that public policy takes.The two forces are distinct but interdependent. The development and implementation of new technologies will affect policy, which will affect the cost and effectiveness of technological improvements, especially new developments.

At the turn of the 20th century, advanced countries around the world, led by the United States, embraced technology and large-scale design integration. More and more consumers are starting to design and manufacture bigger products.

In the second half of the development revolution, more and more public sectors began to adopt organizational leadership developed by the private sector, transforming into a complex "departmental" model, like the hierarchies of large companies. The same is true of international organizations such as the United Nations and the World Bank.

In addition to supporting the housing industry, the government has become increasingly important through the production of public procurement of physical infrastructure. The relative strength of organizations makes it difficult to separate growth products from wages, while health care and unemployment benefits have reduced the impact on the economy of trade finance. All in all, a good combination of technological development and civil rights has enabled most western countries to achieve security and include years of development.

During the last 30 years of the 20th century, especially with the rise of the internet boom of the 1990s, the manufacturing industry began to enter a new stage of development, transforming them into an international and technology-intensive market order. .

According to Perez's theoretical model, the dot-com bubble explosion in the early 2000s was only about half of the digital revolution, and all transmissions to the stage have remained constant. He said: “Investments have undergone a radical overhaul with new ideas and introduced and tested new processes. Now it is the capital's turn to become an important role. Necessary. "

There is no doubt that the impact of information and communication technologies on world life over the past two years has changed. Although there are still huge differences in relationships and fields in terms of popularity and use of ICT technologies (known as data sharing), millions of users around the world can now exchange and access information almost immediately at low cost. The heart is a digital network that connects data centers and personal devices, not just transportation such as ships, airports and highways. at the time of the industrial revolution.

It should be noted that the expansion of new technologies and industrialization is not a well established process. The S-touch of a decade of each technological change has been associated with several S-touch on a technological improvement. These technologies often don't change until they mature and are easy to reverse due to recent industry developments that are still being integrated. Recent examples include social media, smartphones, cloud computing, Internet of Things (IoT), deep learning, and blockchain technology.

Mark Anderson once said that "software eats the world," perfectly embodied in Perez's "New Common Sense" concept.

Every regular technology update poses a threat to normal performance. Although new industries and technologies have become a reality, they often lead to inconsistencies with existing processes, relationships and governance. A few years ago, these differences were the essence of relationships and politics.

As Perez said,Each stage of distribution can be a “golden age” for most people (at least in large countries), but demand is a necessary direction for the distribution of new products.In the post-environmental crisis, new technologies have been developed in unprecedented ways by increasing the number of players and the resources needed to respond to these old energy distribution problems. However, the vision of this path has not been recognized internationally and is often affected by debate and controversy.

When it comes to simple political reform, there has been a lot of public debate on issues such as income and inequality, unemployment and corruption, the environment, but action is slow. In addition, the size and importance of the global financial market did not decrease with the onset of the crisis, but the global economy appears to have become financially stable. It's too early to consider the full social and economic implications of half the ICT revolution, but it's harder than the Perez model suggests.

It goes without saying that ICT has continued to be the subject of appeals and approvals on several occasions over the past two years. This process is still ongoing, whether the associated health and economic implications are based on individual needs or political approval. the others do not see. group.In recent years, truly ICT-based organizational data has started to emerge.

03,Cryptocurrency and the ICT revolution

The concept of crypto and the meaning of relationship the meaning of which is often compared to the touch of an elephant by a blind person, which is often difficult to generalize as it can be described differently from different angles. Most descriptions of Crypto can be divided into two categories: "Cryptocurrency" and "Cryptotechnology".

The first focuses on the impact of cryptocurrencies on currency and finance, particularly their ability to influence the role of federal governments and other institutions in the region. In contrast, the previous descriptions appear to be more demanding and focus on the implications of cryptography for any digital application or service that could benefit from a larger distribution, security, and consumer data management model. .

The concept presented in this article combines 'cryptocurrency' and crypto technology, and refers to Perez's two-stage technology and marketing transformation model to explain how crypto transitioned into the digital revolution.

In particular, by reforming Crypto as part of the overall development of civilization, financial reform and innovation, it will be at the stage of expanding revolution. Of course, this description is only an estimate, and its accuracy can only be achieved after the ICT yields have shifted to the next technology upgrade.

04,Cryptocurrency li Populism

Historically, any change in the development of technology is a period of change in which existing organizations and commands are faced with controversies and questions. People in the situation. In order to understand the relationship between the crypto model and the Perez model, it is important to understand the driving strategies behind it. These drivers are not cohesive, they are dealing with worldly fantasies, the most obvious of which is greed for money.

In fact, the talk about the significant publicity of cryptocurrency is full of direct criticism from leaders in financial and digital technology. Therefore, it is necessary to describe cryptocurrency as a public modification. Partly because of dissatisfaction with existing financial systems.

Crypto is not only the essence of key organizations, but also expressed the belief that if innovation and incentives are brought to justice, they can provide the basis for updated, successful and inclusive innovation. 'industry. However, it would be unfair to conclude from this alone that crypto is the essence of cryptocurrency trading.

As conditions for improving relations and politics, the key challenge for crypto is how to provide stable solutions that will not be killed by the use of cryptocurrencies. The effort is still there and will replace the old process.While some areas of crypto have long focused on digital and creative businesses, their portfolio of investments in earnings and finance has so far attracted the most people and businesses. .

05,Crypto as a financial exchange

From a tight financial perspective, Crypto appears to be at odds with Perez's best classification, where high demand and its own financials have become tighter with each other. . form.

However, there are at least two reasons why using this framework is too restrictive to identify Crypto and its content. The former focuses on the relationship between financial formation and capital formation, and most of the adoption and financial impact of ICTs since the 2000s, while the latter focuses on crypto. -Fiscal development based on Perez's theory-facts. . Perez's theory clearly sees these points.

First of all, it is clear that the collapse of the stock market of Internet companies and the consequences of the global financial crisis have little effect on the financial downturn. In many large countries, the size of the financial system and the importance of financial instruments in economic development have not been reduced. Speaking of which, capital has not made it possible to create capital (capital is lost due to deindustrialisation in many western countries), and the border between the two is often blind. .

This is due in part to the impact of reduced policy on financial markets, in part to the uncertainty of reform after the financial crisis, and in part to the fact that digital technologies (such as crypto) have improved the economy. how retailers and affiliates interact. . '' Access to knowledge of finance, tools and entrepreneurship. The ICT revolution has also coincided with the global boom in the technology industry and the internet, which has facilitated the continued experimentation and growth of financial devices and crypto, especially after the global financial crisis.

However, the relative importance of financial markets must be seen in the broader context of the impact of ICTs on humans. In a clear sense, the role of capital gains in the large-scale export of digital processes, non-financial products and services over the past two years has been significant.

Second, the use of Crypto status extends to data management, but the application of blockchain and other technologies in monetary and financial services is relevant. In general, it was determined that the period from the 1970s to the global financial crisis (the stage of the introduction of ICTs) was a real financial change. However, it has not been ruled out that the decision that crypto will be a financial transaction after a conflict with the Perez model.

Here's how Perez describes the characteristics of a financial exchange and the change after a six month transition period.

“Most of them come from governments or international organizations, but some new financial system rules were created by themselves to avoid government oversight. Trade and trade relations and innovation in governance of the international community. must correspond to certain characteristics of the context in which it is used. .... Accounting and disclosure policies are usually the ultimate frenzy. But at the very least, some harassment is designed to prevent disclosure. "

“In order to achieve this new breakthrough, the economy, economy and finance must realize new innovations that work well in the context of the new concept. As with any new development, the date of introduction is not as important as the time spent. time has brought many innovations in the financial sector, these tools will be needed at the time of delivery. economy The whole adoption of the new paradigm in all countries and in the global economy: the rules of the game and the framework of banking and financial organizations.

Regarding the data of previous experience in the use of information and communication technologies for finance over the past 20 years, the above sentence has two different interpretations, which allows for encryption of both financial and technological.

On the other hand, crypto is totally contrary to rule-of-law-based financial reform and cannot be seen as an attempt by existing financial institutions to self-regulate. Although crypto financial services have enjoyed some relationships in developed and developing countries, they are still far from significant applications.

On the other hand, crypto is often clearly defined as a "new position for business and finance", which can be seen as stronger than traditional currencies, which makes it better rather than technology and organization. created by the ICT revolution. Technology. Modern finance is digital, but still has its roots in traditional business.

The core values ​​of crypto and organizational content are free and open source software, decentralization, censorship resistance, unauthorized, and a level of transparency sufficient to allow data to be analyzed and identified by any person with expertise.

Therefore, another alternative to the above decision is that crypto can recognize the ICT-specific form of existing financial services and, therefore, establish the global financial system with integration based on the concept of information technology. and communication.

It is true that crypto financial services are still marginalized by traditional financial models. However, crypto technology has digitized and globalized since its birth, making it difficult to monitor and restrict existing countries in the process. This offers significant benefits of good growth for crypto finance, depending on the location to eliminate some of the key issues for large-scale adoption.

More importantly, these issues include the risk of actions to minimize the impact on security, distribution and privacy, improve user awareness, and reduce the risk of serious financial loss due to fraud, hacking or to software vulnerabilities. system stability.

The difficulty of managing cryptocurrencies through traditional means does not mean that management does not play a significant role in future decisions. Of particular importance are the following aspects of the relationship between regulation and cryptocurrencies:

First, policies may still support and impact the development of Crypto and may extend to centralized resources such as fiat access platforms, monitors, and exchanges, but may not be for the purpose of development of essential software or special financial contracts. industry.

Second, as a priority, Crypto encourages financial companies and management to always have access to new technologies and design innovations. The best examples are the rising interest rates of central banks' digital currencies and their attempts to combine crypto with real-world financial and real estate processes. .

Third, Crypto is an expression of "code is the law", in which software can modify existing laws, ensuring legal compliance with legal documents, including hacking. Determine the type of action that can be taken in a saturated world. with digital technology. , modify the laws that have always existed in the administration and the police. After Crypto, the openly anti-regulatory position is also the global vision well managed by the software protocol. It is the digital equivalent of the law of bureaucratic procedure.

A lot of the criticism of crypto is that it has some really new financial tools and that it is redesigning everything that already exists in the blockchain. In general, this is true. But in addition to all the new software involvedSignificant advances in cryptography are not commercial products, but processes and innovations related to free and open source software development, decentralized open access, composability, programmability, automation and decentralized governance.

All of these ideas can be seen as the paradigm of the ICT revolution, leading to the “manufacturing and lifestyle experience” that Perez reflected on 20 years ago. so,In order to understand the importance of encryption to the community, it is important to be aware of the implications of encryption in currency and finance, including digital organizations and community exchanges and internet finance.

06,Encryption as a process and system innovation

Diffusion of technological change is a process that takes many years, including many technologies. There have been important technologies which have been constantly improved throughout the revolution, such as the digital computers of the ICT revolution, and also the impact of technology (cloud computing, smartphones, etc.) which is not evident. occur only after an early event. systems. full.

At the same time, with the rise of change, more and more technologies have become commercialized and house prices have fallen sharply. More and more people are not only learning to rely on the new capabilities brought by technological development, but are also starting to think about them. Modern social life and work, and the only "traditional" mode of planning.

In the ICT revolution, the “traditional” was digital. However, over time, the accuracy of the numbers has changed dramatically in the context and integration of the use of technology, consumer behavior and the water-related activities of investors, private companies and consumers. civil society organizations.

Cryptography is a huge improvement, and this transformation is underway, leading to new experiments around digital tracking of distributed data.Although initially focused on creating currencies in the form of cryptocurrencies, this experience quickly spread to reconsider many other digital businesses and services in development, use, management, and use.

As part of the new process, Crypto generally focuses on data management (including archiving, archiving and marketing) and management (including software and organizational development).In its best vision for the future, Crypto hopes to leverage the power of technology to add some impact on the digital platform of financial, legal and regulatory companies to make these processes more transparent, distributed and independent.Crypto can use Perez's time as a model for the next transmission of the ICT revolution, which includes the emergence of specialized ICT organizations and the merging of existing organizations and new versions with ICT paradigms. Specifically:

Open and unauthorized access to public blockchains makes them comparable to public infrastructure or services. However, when most civil engineering work is carried out in a special location and is often directly or indirectly governed by responsible democratic authorities (such as governments), digital processes based on cryptography are inherently global and regulated by the industry. decentralized private.

This does not mean that a network or service cannot or will not have a major footprint in the region, nor that democracy and equality or accountability are incompatible with access. Legally, however, Crypto has had a global impact from the start (depending on internet access) and was designed to oppose regulation by government or other entities, groups or organizations.

Crypto has created an open and powerful platform for digital governance experiences, not only in terms of managing blockchain-based networks and processes, but also in terms of applications and processes as management tools. in other areas.

Crypto promotes the emergence of new forms of online collaboration and community development, especially regulatory agencies that were unable to do so before the development of public blockchain networks. These communities and organizations specialize in the asset-based businesses, contracts and relationships that are tracked by the blockchain.

In addition to blockchain and free and open source software protocols, DAOs are essential for the development of new cryptographic technologies. DAO can be defined as an organization that integrates automation with crypto-economic incentives and human partnerships. As a digital organization, most DAOs have open rights to members that are not limited to a specific location. Anyone can participate and contribute to DAO and receive DAO policies and resources.

Ideally, DAOs are set up so that people do not have full control over all of their resources and controls, but in practice, participants can still make decisions and take action to show an upgrade.

Although the goals and activities of DAOs are different, this can lead to different challenges for each DAO. The most difficult questions can be included in the following questions: investment, support, hiring and employment) and decision-making power, resolution of actor conflicts (contrast, inclusion of taxation and compliance), while following the principles of cryptography?

To solve this problem, many projects are currently developing structures and models to meet CAD requirements. At the same time, DAO regulation became unique and best practices began to emerge, and the strongest DAOs began to appeal to regulators.

It is unfair to assume that blockchain networks and DAOs are vulnerable to these types of failures from key organizations. However, ignoring the latest innovation driven by the combination of blockchain and ICT innovations is still seen briefly. The ability to integrate and do business on a global scale, relying on digital network integration rather than the core organization. This represents not only the transformation of electronic information and communication technologies, but more importantly, the transfer of technology to the global network automation system.

07,Therefore

Inspired by Schumpeter's New Paradigm for Changing Perceptions of Technology and Industry, the above description of cryptography can include 6 concepts:

Encryption is not a technological change. It was only isolated as part of the ICT revolution as it was another group of new activities supported by ICT (cryptography, computers, software, distributed networks, etc.).

For some, cryptocurrency is a failing, technology-driven exchange rate. Crypto is a representative of the initial transmission at the start of its important function of the existing process and the relationship of financial strength gained during the first half of the ICT revolution.

By supporting more ICT-based financial information (digital, global, programmable), Crypto competes with leading financial firms, streamlining digital exchanges and providing specialist funding for information and policy reviews tailored to the market. age.

Encryption is generally a process and an innovation. By combining the existing functions of ICT with new developments in terms of consensus and integration, cryptography improves profitability and funding with specialist ICT organizations. .

Crypto represents the continuation of controlled digitization and automation triggered by the exchange of information and communication technologies. By achieving a more decentralized and censorship-resistant form of automation, cryptography has opened up new avenues for global governance, which can be seen as an integral part of the automated industry.

As the ICT revolution has developed, its most valuable history has gradually expanded. We will also see that Crypto is only a specialized juggling tool, an important addition to mid-range digital platforms, or one of the most important and competitive with design agencies.

But whatever the ultimate role of Crypto, the relationships of the future will become more digital than average, global integration and not automatic repetition. Thus, community governance issues will increase with the management of technology that achieves their developers and goals, and that can sustain and constrain future generations.