CHAOS AND DISRUPTION – THE ORDER OF THE DAY?
Blockchain, the core technology underpinning major cryptocurrencies like Bitcoin and Ethereum, has become the buzzword that is proliferating in the mainstream discussions. In our daily lives, ranging from news reports to the daily conversations of common Joe, it has become a term that is flung around but poorly understood. So, what exactly is blockchain technology? Simply put, it is a distributed virtual ledger that records transactions publicly and chronologically. Protected by strong codes and stored in various computers in the network, this makes transaction records on blockchain near impossible to be altered or falsified.
What blockchain aims to do is to level the playing field without reliance on a third party to authenticate and settle these transactions, hence ensuring an encompassed peer-to-peer system that is self-contained and secure[1]. It establishes a protocol of trust, a responsibility which is traditionally held by central authorities such as banks, clearing houses and the government, all while maintaining integrity in transaction.
Meanwhile, cryptocurrencies, which are currently the most visible application of the blockchain technology, are catching the news headlines albeit largely for their volatile price swings, highlighted by Bitcoin’s meteoric rise to close to 20,000 USD before dramatically crashing down to below 8000 USD[2]. Currently, the world operates on a fiat currency system, where the value of a currency is not backed by any tangible assets, but on the trust in the government and central bank behind the currency. However, the status quo risks abrupt changes and potential upheavals if cryptocurrency adoption and the digital assets built upon them becomes wide-spread. To be sure, cryptocurrencies still represent a tiny fraction of the global financial assets, but their decentralised nature and scalability could ultimately displace the control wielded by sovereign states.
With the sophistication of machine learning, artificial intelligence (AI) is proving to be another emerging technology that will revolutionise the labour market, replacing many routine jobs[3]. In the past, it was the blue-collar jobs that were at risk. However, there are growing signs that AI is gradually encroaching into the entry and even mid-level white-collar jobs. Previously, people were being rewarded for doing repetitive tasks well. Now, the focus is on creating value and breaking new frontiers.
This would have implication on how we view the learning process. Previously, the impartation of knowledge is focused on rote learning and regurgitation of information. More and more, the focus would have to be on creative thinking and problem solving.
In an environment dominated by chaos and disruption, the survival of national economies and corporate entities hinges on their response to the new digital revolution- either they adapt and prosper or stagnate and wither. Small countries ought to stand at the forefront of this transformation as they simply cannot afford to lag behind their bigger counterparts given their economic disadvantages of constrained land space and limited natural resources. Yet, it is the big countries like the United States and China[4] that are taking the lead in this digital revolution with substantial investments and widespread adoption by their citizens. In years to come, the more hierarchical structure of traditional economies may be challenged. Those who try to preserve the status quo and protect the current establishments may find themselves left behind. Meanwhile, the more welcoming an economy is towards such disruption, the more likely it is going to stand to benefit - in terms of a well-established technological infrastructure, a rich eco-system of innovators and enhanced attractiveness to foreign direct investments.
As technology accelerates at breakneck speed, constitutions around the world are finding it hard to keep pace with it and governments ponder how to draft appropriate rules and laws to regulate it. If left unchecked, the unbridled optimism of technological advancements will in turn lead to ethical and legal quandaries, where we mull over the blurring line between right and wrong.
The ripples of technology are also spreading to the cultural landscape and inducing a shift in consumer behaviour. A large part can be attributed to the convenience brought on by the booming collaborative economy[5], all part of the disruption caused by sharing platforms like that of Uber and Airbnb to traditional taxi and accommodation businesses respectively. As millennials take the centrestage, their prioritising of experiences over possessions[6] will further curtail the emphasis on acquiring material things and engender a lifestyle that is geared towards creating exciting memories and seeing more of the world[7].
Whether one likes it or not, disruption is here to stay. Capitalising, rather than resisting, is the only way forward.
[1] https://medium.com/nona-web/6-ways-blockchain-is-changing-the-world-870c2c107147
[2] https://www.cnbc.com/2018/02/02/bitcoin-price-drops-below-8000-for-first-time-since-nov-24.html
[3] https://www.cnbc.com/2017/10/05/report-ai-and-robots-could-change-your-career-within-5-years.html
[4] https://usa.chinadaily.com.cn/2014-05/01/content_17478108.htm
[5] https://www.economist.com/news/leaders/21573104-internet-everything-hire-rise-sharing-economy
[6]https://www.forbes.com/sites/blakemorgan/2015/06/01/nownershipnoproblem-nowners-millennials-value-experiences-over-ownership/#3183f4135406
[7]https://www.theguardian.com/business/2017/may/13/just-do-it-the-experience-economy-and-how-we-turned-our-backs-on-stuff