Last year we published in this blog a delivery dedicated to the phenomenon of Fintech, which we later supplemented with a post to try to explain to readers what are the basic mechanisms of blockchain technology that lies behind criptomonedas such as bitcoin and other important Advances, not just in fintech.
The social impact of blockchain technology
In February of this year, the European Parliament Research Service (EPRS) released a very interesting analysis entitled “How blockchain technology could change our lives”. The purpose of the report is to stimulate the reflection and discussion of a complicated, controversial issue with ramifications that we have not yet fully grasped. It is a clear and accessible document for those interested in learning more about blockchain technology and its actual or potential impact in many areas, including:
Financial transactions.
Digital content and rights management.
Protection of patents.
Electronic voting.
Electronic and automatic contracting.
Transparency and accountability in supply chains.
Innovation in public services.
Development of decentralized autonomous organizations.
These innovations bring challenges of diverse dimensions, whose social dimension we will try to outline briefly below.
In my previous post on this topic, we already point out the financial dimension of blockchain technology. Transactions of any kind are generally faster, cheaper and safer using this technology. To these benefits can be added its transparency, immutability and freedom, as it does not require intervention from traditional financial and administrative institutions, which constitutes a powerful plus for many users, whether for lawful purposes or not.
IMPACT OF THE BLOCKCHAIN IN OUR EVERYDAY REALITY.
The impact on employment of the legal and financial sector with the generalization of blockchain technology is undeniable: a legion of lawyers, accountants, bankers, intermediaries, administrators and other “white-collar workers” operating in financial institutions and professional firms can see Their jobs, a phenomenon similar to that of industrial workers affected by robotization. The debate about the possible substitution of these jobs for value added ones that require new skills is a burning issue, still unresolved from the academic field.
The false neutrality apparently presented by innovations such as blockchain technology is also a key issue. In the words of Philip Boucher, author of the above-mentioned report:
“The fact that technologies can be used for both ‘good’ and ‘bad’ actions does not mean that they are neutral. On the contrary, all technologies have values and policies, which generally represent the interests of their creators. In this sense, the reasons why traditional accounting and financial registration systems place their creators as key intermediaries are clear: since all transactions pass through them, creators maintain their position of power and ability to benefit from Their users. Every time we use technologies, we reaffirm the values and policies they represent. In this case, every time we use a distributed book we participate in a change of power from central authorities to non-hierarchical and peer-to-peer structures. ”
THE ACCOMMODATION OF NEW SOCIAL TRENDS
In fact, although the economic benefits (legitimate or spurious) derived from the use blockchainhan exponentially boosted its number of adopters, much of the success of this technology has much to do with its excellent accommodation to new social trends:
Dissemination of power to new actors: global media, transnational corporations, interest groups and non-governmental organizations. Also to terrorist networks and international criminal organizations.
Parallel decline in confidence in traditional political and financial institutions.
Increasing importance of transparency over anonymity.
Requirement of greater levels of responsibility and accountability.
This unstoppable push, in turn, has forced administrations and large financial companies to take action on the issue in order not to be overcome on all fronts. In fact, the increasing investment in research and development of each other is oriented towards how to exploit the full potential of blockchain technology, but in some way maintaining the intermediary and control role it holds.
So far. A history as old as that of humanity itself. INSTITUTIONAL POLITICS FOR BLOCKCHAINE TECHNOLOGY In this context, the European Parliament’s Research Service points to four broad categories of possible institutional actions in the face of the blockchain’s exponential growth: Responding to the problems that are Being solved by blockchain without using it. This is, greater transparency and access to the data and processes of administrations and institutions without resorting to blockchain systems. At this point, it should be noted that such initiatives are always desirable, with or without technology.
And if this helps to promote them, why not use it? Promote development and innovation in blockchain solutions giving legitimacy to their products. For example, grant administrative and legal recognition to blockchain transactions that meet certain conditions. In the opinion of the writer, a desirable initiative. Block the development of the blockchain, establishing restrictions to projects that use such technology, denying the legitimacy of their transactions or even banning them. In my view, this will only delay an inevitable deployment and have come to stay. It would be a backward step very undesirable. To adopt blockhain technology subsystems in large management processes, but subject to supervision and administrative authorization.
This intermediate road, obviously, is the preferred one of the governments and the big companies of the sector, and already several developments are observed in that direction. Evidently, in the immediate future we will see a combination of these four actions at international level, depending on The interests and structures of each country, administration and sector. The blockchain, like any emerging and disruptive technology, is not free of risks of diverse nature, some of them of undoubted strategic nature. Addressing them properly without encumbering the economic and social development that this technology brings will be the great challenge to be addressed in the coming years. Do not doubt that in Domestica Tu Economía we will continue to tell you.