Technology that could revolutionize the roles of actors in the business
This article, more than a tech view, has the intention to take a business and people’s views to show how the capabilities of this technology could be applied to create a better world by changing the roles in businesses in a positive way
The challenges: There are multiple challenges but, I just want to focus on 3
Depersonalization: we live in a “connected” world, but as people we are not connected as communities, if I want to know who farmed my food or sew my clothes, I’ll never know
Data to the Highest Bidder: we live in a world where anyone can buy data and have access to what someone considers private. People are co-owner of data but only companies are getting profit
Laundry Money: crypto and the globalized world are an incentive for the increase of various kinds of underground businesses (all kinds of trafficking). The challenge is needed to create barriers to discourage people to go after that
Blockchain capabilities: challenges vs my dream
1. Traceability and Immutability: Depersonalization VS Community
A few years ago, I was pre-selling a food traceability blockchain product to a food brand owner. The business: package food and distribution to supermarkets. The business’ point of view was that this was proprietary information that could not be shared.
But that business model has a value-add and it is difficult for consumers to buy directly from the producer since the supply chain is needed (transport, selection, QA, packaging, and more).
Value-add to a product or service is generally in the supply chain and involves people (employees, or self-employed) & organizations. What if we can know all entities involved in that chain? What is the value of knowing that?
- Better Quality: If your name is on the label, how would you like your product or service to be? A great one, right? Then if an entity’s name could be part of the digital label, quality-related processes could be faster, easier and cheaper.
- Value added perceived: Consumers don’t usually have a full picture of how much effort is needed for a product or service to arrive in their hands. Knowledge of the entities that are involved could change the consumer perception of the product/service.
- Humanization: In a food traceability implementation in Central America, coffee producers receive recognition from final consumers. What if everybody can give incentives to anyone in the supply chain? What if all people can share their dreams and someone can help them to achieve them? This is not just money, could be also mentoring, training, first employment, a new player in the community, or even the perfect match for a couple, the options are endless.
Revolution 1: Traceability and immutability can change depersonalization to communities, where people can recognize the value of the work of each member of the supply chain, trust each other and economically grow together while reducing costs and increasing revenue. This could bring us back to ancient communities but in a global and digitized world
2. Permission, Immutability: Data to the highest bidder VS Win-win Business
When I receive a call from some vendor, who I haven’t connected with before, I’m always surprised by the information they have about me. When I ask for the source, they just say “it is a database from the company”, even if I never had any touch point with the company. What happened there? At some point various companies that I’m connected to sold my data; then the recipient company built a detailed profile of me.
Data is the new asset of a digital world, but personal data belongs to each person. What if people get the right to decide how to manage that asset? Is it feasible?
- Technology and feasibility: With a permitted blockchain, the access to data could be controlled by each person. This will be feasible when each person could have their block in different blockchains.
- The win-win scenario: People and companies can both win when respecting privacy:
- Asset. A potential solution could look like the following:
- Companies and Governments: enable platforms to execute and store transactions
- People: execute those transactions by buying a product or service Data that can only be shared if people provide permission to share it.
- Pricing & offering. People and producers (companies and governments) can set prices for their data. People will be able to decide which data they want to expose and to whom.
- Regulatory Entities. Only in this case, the data collection entity will have the obligation to share all requested information with the regulatory entity, and people (data owner) will be informed about the request in most cases.
- Traceability. People and companies could choose to share and forget, or do traceability and get additional profit if data is re-sold.
- Trust. If this data is stored on the blockchain (which is immutable), people and companies will develop mutual trust.
Revolution 2: Permission and immutability can change the offering of data to the highest bidder into a win-win and respectful business where people and companies can get profit from data by respecting the will and privacy of people. For buyers, data will be more reliable than ever
3. Traceability, Immutability, and Distribution: Money laundering VS Fair Business
Immediate international payments and crypto are great when it comes to quick remittances and cost reductions, but since regulation is not there yet, these also open the doors to potential money laundering.
Financial transactions are always related to an interchange of a product or service or a relationship between people. What if all financial transactions in blockchains are being copied into regulatory nodes? Would this enable a better world?
- Technology is already available, and Immutability eliminates the possibility of data.
- Know your customer use case, this is probably one of the most ideal blockchain use cases.
Revolution 3: Traceability, Immutability, and Distribution can raise barriers to underground business: Combined, these three key attributes of blockchain can create new incentives for fair businesses while creating critical barriers for those seeking to exploit data in an unregulated fashion
Key Takeaways
- Blockchain is a natural community enabler: It promotes trust due to attributes such as traceability and immutability.
- Data Co-Ownership with consensus decisions could become real by using Blockchain capabilities: Companies could earn the trust of their consumers without sacrificing profits, and people will be empowered to keep their privacy and a share of the profits from their data. This could happen by using permitted blockchains and exploiting consensus, immutability, and traceability capabilities.
- The good use of Blockchain Technology: Technology per se is not good or bad. How people use it can open doors or raise barriers. Roles could change if barriers are raised, as former bad actors could start thinking of transforming into good actors and possibly create new businesses. This could happen by using traceability, immutability, and distribution capabilities.
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