Blockchain & Economy

Economics has been and still remains the core of social life. Since Blockchain distinguished itself as a powerful new tool to address long-standing challenges related to economic development, it explains increasing attention to the potential of distributed ledger technology.

The four main kinds of blockchain applications are money transfer and payments, property registries, contractual agreements, and identity confirmation. Due to the substantive blockchain properties it is capable to facilitate economic growth by optimizing international financial flows, creating “programmable money”, decreasing fraud risks and operating costs, allowing larger data volume processing etc. Blockchain makes it possible to build cryptocurrencies ecosystem, automate tax collection, manage data sets, and provide grants and social security. It not only has brought dramatic changes to traditional economy but also became a jumping-off point for a revolution called cryptoeconomics, that focuses on the economic principles and theory underpinning the blockchain and alternative blockchain implementations.

Thus, within the framework of the given study direction, it is our intention to examine the technology’s potential role in addressing economical development challenges and transfering to digital economics. We frame our analysis around a number of questions: 1) What are the useful applications in the context of economic development?; 2) Is blockchain technology better at addressing this problem than existing approaches and technologies?; 3) What risks might it create and what are the challenges of using blockchain technology in this sphere?

Distributed ledgers are an experimental technology. While some claim it to be a panacea, it is necessary to admit that not everything is a blockchain use case. It’s still difficult to predict what the impact of ledgers, cryptography, peer to peer networking will throw up in the future. This process is going to be extremely disruptive. The global economy faces (what we expect will be) a lengthy period of uncertainty about how the facts that underpin it will be restructured, dismantled, and reorganised. The best uses of the blockchain have to be ‘discovered’ and then they have to be implemented in a real world political and economic system.