EP03 - Doing Business In A Decentralized World

Anyone remember the good old days? You could meet your customers face-to-face and seal deals with a handshake. If they were in the office, if you could get through to the receptionist, and if they saw your fax. Not to mention, you needed to be on the road before the sun rose.

Maybe it’s for the best that we don’t work that way anymore.

In the old world, companies usually conglomerated, within a central location, where they let customers come to them. But as digital nomads, we know that our customers are everywhere - and that, as a result, we need to be reachable everywhere too. We know that business requires us to be decentralized.

Decentralization, the idea that we can be anywhere and everywhere at once, coming to people when they need us as opposed to the other way around, is actually very challenging. And it’s made more challenging by the fact that we’re often unknowingly burdening ourselves by relying on business models designed for the past. Now, that’s not to say we’re not all trying our best - but rather that we’re sometimes focused on aligning new ways of work to old methods, and ending up with some kind of Frankenstein-monster-esque version that sort of works, sometimes.

The solution, one that will let us maximize the potential of our digital transformation, is to think like entrepreneurs and embrace the new. And if you’re the kind of person to read this, to do your research, and to always be looking for new things, then you’re already well on your way. That’s why, for the third installment of our series, I’d like to discuss two key pieces of decentralized, digital-by-design solutions that leverage the best of modern business practices: the internet of the future, and blockchain.

Right now we’re living in what great thinkers refer to as the Information Age: when everything we could want to know is available at our fingertips. But if you’re like me, then you’ve also probably heard of the next step in our progression: the Knowledge Age. That’s where we take all this dearth of information, and use AI (like ChatGPT) to distill it into easily-consumable answers. Once we don’t need to spend our time finding those answers, then we’ll be free to innovate in ways for which we’ve never before had time.

Think of it like this:

• Web 1.0, the first iteration of the internet, gave us static web pages and limited interaction. At least we had MSN Messenger.
• Web 2.0, where we are now, brings us the dynamic web - with a whole economy of user-generated content and limitless data, while letting us connect with anyone and everyone across the world.

Here’s where it gets exciting:

• Web 3.0, the semantic web, where AI lets the internet understand the meaning of the content that it serves, is coming very soon.
• Web 4.0, the intelligent web, will follow by enabling us to more effectively interact with the AI.
• Web 5.0, the pinnacle of the internet’s evolution, will bring us a world where humans and machines are so deeply integrated that we can finally solve global challenges like climate change and economic inequality.

So what can we do to get there? First, we need to develop the capability of our digital systems. I don’t just mean AI, but also things like using machine learning or econometric modeling to automate the process of transforming our data into answers. Technology like the Internet of Things (digitally-connected devices) is a key part of that process. We can use this knowledge to build smart systems driven by user experience, like optimized search algorithms, supply management tracking, and collaborative digital work environments. We can also harness the automation this knowledge provides through blockchain technology.

Now, you’ve probably heard about blockchain a lot. People promise that it can do a lot of things, and sometimes that makes it sound intimidating. But the concept is actually very simple: blockchain is a technology for recording transactions on a shared, public trading ledger that can be used to create secure, decentralized digital identities.

We agree on an exchange, everyone on the network confirms it, and then we make the exchange: straightforward, secure, and easily verifiable.

You've most likely heard of blockchain in the context of cryptocurrency - which is a great use-case, but not the only one. Some other great examples for small business applications are:

• Supply chain management, where we can track products as they move through the supply chain, ensuring transparency and accountability. This can help small businesses to build trust with their customers and suppliers.
• Secure transactions, where we can quickly and safely process transactions, without the need for intermediaries. This can help small businesses to save time and money on transaction fees.
• Smart contracts, where we can create self-executing processes (think of it like a vending machine) and eliminate the need for trust between parties. This can help small businesses to streamline their processes and reduce the risk of disputes.

Given that every technological leap comes faster and faster, I know we’ll soon be part of the Knowledge Age, and I’m very excited. I'd like to thank each and every one of you for taking the time to read our newsletter. Thank you for dropping by. Stay tuned for our next episode, and let us know if you want to learn more.

We're always here for you.

/Sarj

Founder, knowledgebasedconsulting.ca