All economic systems — global, local, corporate, public or private — is based on a singular archetypical process; the Process of Resource Allocation. It works like this:
Party A and Party B creates a contract the enables them to enter a trusted relationship in order to execute resource transfer and settlement.
So the basic components are “Trust, Transfer, Settlement” and “Contract”. It is worth noting that virtually anything we do in business is based on this.
Blockchain absorbs “Trust, Transfer, Settlement” and digitizes “Contract”. This is why this software design is such a fundamental thing — with it, a new layer of automation emerges. When you contemplate this fact, you will inevitably see the profoundness.
Blockchain reduces the cost of Resource Allocation and makes Resource Allocation more effective — a grand value proposition. Simple, yet complex.
A new protocol that digitizes the archetypical process and runs it in a decentralized network. This is why Blockchain is a true Blue Ocean….it is non-local, it has utility and it will have widespread users/usages.
