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Blockchain technology is going to radically change the way we think of investment and finance in the coming years, says Balaji Srinivasan in an interview with CNBC.
The founder of 21.co, the peer-to-peer startup for hours worked, says that in the coming years everything will be tokenized, creating a world where value is held and distributed via peer-to-peer networks rather than centralized hubs.
“Anything scarce will ultimately be tokenized because the benefits of digitization and increased liquidity are so great. That means cash, stocks, bonds, commodities, houses, cars, digital goods of every kind, and perhaps human time as well in the form of the personal token described above.”
The power for this change will come through distributed ledgers, according to Srinivasan. Blockchain technology’s decentralization creates a model where the world will effectively be turned into a single massive stock market without boundaries of geography.
Distribution of wealth will be international, and market centers will no longer be found in geographic locations.
Already some companies are starting to embrace the tokenization market. Jakob Drzazga, co-founder of asset tokenization firm Brickblock, said:
“Through tokenization, investing is cheaper, faster, more secure and available every hour of the day. This opens up real-world assets and the world of cryptocurrencies to people who previously may not have been able to invest due to geographic or financial restrictions, and offers an alternative to traditional and largely outdated investment methods.”
The power of Blockchain technology will eventually open up world markets, in a similar way to what the Internet did for information exchange. Financial and geographical restrictions will fall by the wayside, as Blockchain decentralizes and tokenizes real world assets.
Moving the mainstream
But the tokenization market is not the only place that Blockchain technology is creating new and exciting ventures.
Other industries have also seen the power of a decentralized and secure system for finance and information.
Because information can be accessed securely, and financial transactions can be secured and transparent, Blockchain is also a game changer in other nascent industries, where legacy systems have not had time to take a foothold as in the banking and finance sector.
Julien Charrel, co-founder and CEO of the Gimli project, an eSports Blockchain technology company said:
“Blockchain and eSports are two very young industries, and they happen to grow viral at the same time. Blockchain as the backbone of eSports application will bring transparency and fairness to an industry that is already plagued by scandals and prone to manipulation.”
The movement toward decentralized systems in young industries indicates that the solutions provided by Blockchain technology will continue to gain a foothold among mainstream users.
While the older generation is unfamiliar with the technology, the younger generation has already embraced it and is using it actively.
A quick perusal of the massive changes coming to different industries indicates that Srinivasan’s conclusions may not be too far afield.
Blockchain technology is genuinely making inroads into every viable business model, creating a system that allows companies and markets to thrive without centralized corporate control or profiteering.