Blockchain technology reduces business’s dependence on humans

Travis Patron, a digital currency researcher and author of the 2015 Bitcoin Investor Report, argues that with the introduction of blockchain technology, businesses will see computers taking over not just the role of employees, but also the role of customers.

Companies are investing heavily in automation technology, with businesses spanning nearly every industry. Technological innovation, including employee input and customer output expectations, is undergoing a transformation.

This is an organizational change in which the roles of employees and customers will be redistributed. With the intervention of blockchain technology and smart contract systems, computer technology will fundamentally change our understanding of companies, and machines will replace humans, including the roles of employees and customers.

Distributed Autonomous Organization

The World Economic Forum estimates that 10% of the world’s GDP will be stored on blockchain networks by 2027. In such a world, businesses will be less dependent on humans, which solidifies blockchain technology as a blueprint for businesses, changing the way resources are allocated and how communication is conducted in the 20th century.

The characteristics of the 20th century business model are exclusivity rather than sharing, specialization rather than automation, and centralization rather than decentralization. The economic model of Bitcoin blockchain abandons all traditional concepts and provides us with a blueprint for the 21st century digital model (non-exclusive, decentralized, independent companies).

This type of business model is fundamentally different in its composition and function because it is independent of human intervention and no single party can own the business.

In the Bitcoin digital economy, machines will be employees, not humans. The role of employees is to be producers of labor, and they are completely dependent on cryptocurrency miners. In terms of Bitcoin mining functions, the product of labor will be the hash power (computing power) necessary to verify transaction blocks. The compensation for each employee? The network will give a reward for the current block every approximately 10 minutes.

Currently, machines are becoming employees while customers are still humans, but with the implementation of self-executing smart contracts, customers will soon become machines as well.

Non-fraudulent smart contracts

The goals of smart contract networks are predictable. That is, by examining their running source code, we can know their functions. Applied to future smart contract systems, because they are open source, the management form of the system will be completely transparent and cannot be defrauded. Wrong examples are simply due to a lack of understanding of the goals of the contract or network.

More importantly, it controls one of the most precious aspects of our lives – our financial lives. As Alan Turing wrote in his 1951 essay “Intelligent Machines, a Heresy”:

“Once a machine’s way of thinking is set in motion, it won’t take long for it to overtake our fragile powers… At some stage, we should expect the machine to take control.”

in conclusion

To be sure, just as in past ages one machine can do the work for many humans, so too will many humans work for a dominant network of machines. Computer technology can achieve this dominance because it rewrites the laws of society in mathematics and science rather than in steel and paper.

The blueprint for blockchain technology represents a major milestone in computer innovation, allowing for digital systems that can be used independently of traditional forms of law, whether for commerce or communication.

As is happening in the Bitcoin world today, miners are employees of the enterprise. In just a few years, smart contracts will also fill the role of customers.

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