The Innovative Blockchain Circular Economy

blockchain circular economy

The Innovative Blockchain Circular Economy

Blockchain circle allows individuals to carry out their work and be compensated in a new circular economy that has its own currency and work units. This would probably be one of the exceptional themes to have emanated from this blockchain technology.

Currently, a worker is usually paid via bilateral contract between him and his employer, which simply states that you will get compensation in A currency for doing the B job. But how about if a worker can choose his own job? This will allow him to take up and execute new types of tasks that will remotely resemble the traditional labor, and a worker’s income will consist of cryptocurrency and not fiat currency. This, as a result, will enable him to do several jobs instead of doing only one. Consequently, he will be doing multiple paying jobs without being stuck with a single employer. There are many blochain based companies that pay their users via digital token for doing their job. For example, Steemit compensates its users with the digital currency for voting-up or writing posts on the decentralized content platform.

Similarly, there is a decentralized transportation platform called La’Zooz, which is based on a theory that you earn Zooz points just by driving your vehicle while the application gathers information about your driving patterns. Moreover, a healthcare research company could pay its patients or other individuals who share the company’s medical data in exchange for collective wisdom that is achieved through aggregating the information. At the crux of it all, there is a relationship between actual work done, the value created, and value received.

Let’s get into more detail to see what is actually happening.

  1. Users execute tasks, either active (by voting a post or taking a decision) or passive (driving and sharing data).
  2. Every market has its own ‘unit of work’ that consists of several activities.
  3. Every single work unit creates value in the marketplace, for other users, and eventually, for the end-user as well. This is an extension of the theory called “Network Effect”, according to which, the action of each user benefits other users.
  4. The native token currency can be used in the market to execute another transaction or service or it can be exchanged outside the market against fiat money or another cryptocurrency.
  5. It will allow the overall value of the marketplace to rise gradually with activity and value that is created inside the market.

New System of Work

Blockchains are enabling a new system of work. It is definitely not a fraud, but in fact, a new way to produce economic value. There are a few organizations that are against this system, but the ones with the better understanding of its mechanics are going to benefit and enable the users to take part in their success through sharing the network capital.

The most crucial aspects that have to be considered are:

  1. The job performed must be varied;
  2. It should be valued and valuable;
  3. A user is able to use his earned currency internally to produce more value

This shows the creation of mini circular economies that are independent. There are a few models that will be produced by new businesses, while some other models will probably spun-out of existing businesses. So, does it hold a future for creating work and wealth? Probably yes.

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