The Best Use of Blockchain Technology

Blockchain technology carries a promise of a great chance, efficiency, and fairness in business operations and governance for a whole troubled planet. If that's true, then Blockchain technology should be integrated broadly speaking and uniformly across society and among as several existing establishments as potential. If that's true, then Blockchain development mustn't be the exclusive domain of one sector, like banking. Nor should Blockchain development reflect priorities of highest ROI from VC startups. Likewise, strictly decentralized Autonomous Organizations (DAOs) might carry the danger of in operation in a nonlegal sector without legal recourse, thereby increasing internet volatility, not decreasing it.

A different track is needed.

The primary objective of Blockchain technology should be to reduce the price of capital by distributive risk, not essentially cash. the very best and best use of blockchain technology is thus insurance, not essentially banking. In doing thus, blockchain innovation will then be applied broadly speaking, evenly, and on purpose across the economy. This is smart as a result of when building something complicated or vital, one logical piece must get in front of future logical piece notwithstanding its individual ROI, as a result of the collective ROI is that the true basis of valuation. If individuals tried to make an airplane within the same manner we are currently attempting to make the decentralized political economy, many might profit, however, Associate in Nursing shipping system, as a whole, would be tragically strained.

We have seen this before.

Many of the problems presently propping up the narrative to the Blockchain development were additional gifts throughout the time of this author’s participation in the NAFTA negotiations. Anyone WHO was around in the early 1990’s might keep in mind the mantra of the recent economic process was that decentralized markets were sensible and centralized markets were dangerous. The arithmetic supporting the efficiencies of trade models like the idea of Comparative Advantage was, and still is, bulletproof. thus what happened?

Unfortunately, decentralized markets were administered erratically, disproportionately, and solely part insured, at best. The act of attempting to regulate a decentralized market eliminated several of the advantages of getting one. Today, we face the same peril, except we are playing with a far more powerful technology promising exponential efficiencies, or exponential deficiencies. Don’t let the pundits fool you. It will go either means.

The difference these days is that we even have the information, foresight, a technological toolkit, and profound responsibility to get it right now.

Let’s begin.

The place to begin developing blockchain technology is through an association of Insurance and skilled Engineering establishments for the creation of relevant infrastructure and also the physical derivatives upon that everybody completely depends. This includes renewable energy, clean air, safe water, transportation systems, health and welfare, housing, building systems, laptop networks, etc. After all, bitcoins aren't valued a full ton once the ability goes down.

Infrastructure projects, and everyone their beneficiary derivatives needs money establishments that may bridge the capitalization gap between the origin of a project and revenue from the project.

This period of time is rife with peril because the "money and title" precedes the delivery of the physical asset. The cost of capital is directly proportional to the risk associated with project delivery. Wherever the insurance industry is capable of pooling project risks, the cost of capital will fall precipitously. The insurance industry is, therefore, an imperative component to this objective. Banking is relatively simple, accounts can be cleared with a placeholder currency; a token, if you will.

Here in lie both the challenge and the opportunity facing Insurance and Engineering institutions related to Blockchain Technology:

First, as with all new technology, we need to recognize that society will reorganize itself around Blockchain Technology. We need to provide hundreds of millions of entrepreneurs and citizens the support systems with which to do so.

Second, if each component part of the blockchain system is insurable, so too should the entire system. We need to ensure and reinsure each individual components of a blockchain business system(s) in order to lower its cost of capital.

Finally, once insurable, each component part of the new economy will have the same cost of capital as any other part. The relative value of an investment will, therefore, be ordered in time?—?the most important and valuable piece is the one that goes next on the critical path. This is how things get built.

Taken together, Insurance and Engineering are sufficiently disintermediated from short-term objectives and are ideally suited for the long game. Together, they can bridge the capitalization gap upon which everyone may cross. They provide outcomes in the physical world that are essential to everyone. Together, they can deliver the projects that are most important?—?the ones that come next as we navigate our critical path into the future.

Cybrosys Technologies