If you are reading this article it means you are directly involved in the world of internet, this wonderful innovation has made it possible to connect everyone around the world directly. Through this innovation, the most promising new disrupt technologies have emerged for the future; Thus, the world of the blockchain. It is right to ask if the blockchain technology is a disruptive innovation?why is this novelle technology pacing slowly? This because the technology has only reached the required level of maturity wide mainstream use. What is a disrupting technology? It is the one that displays established technology and revolutionizes industry or ground shaking product that creates a completely new industry.
Today disruption, change and competition dictate the new paradigm for the banking industry, the financial institutions are no exception to the dynamics of industrial advancement which is driven by a fast-growing cost and great pressure. The implementation of the blockchain influences a lot of stakeholders in the financial services which include customers, employees, shareholders, investors, suppliers, industry associates, education institutions, government and non-governmental organizations. The banking world is involved in quick changes of digitalization, a potential cost and labor-savinginstrument, the prospects for the global finance market are so appealing that many major financial institutions are investing millions of dollars to research on what will be the best way to implement it.
The high-priced and opaque involvement of a third party in a transaction is the main problem that has been solved by the creation of the Blockchain due to one centralized shared database. In the past, it was impossible because every transaction requires communications between two single databases and thence another authorized controlling layer was needed. A simplified example of remittance can be used in espousing the concept lucidly, your relative who wants to Transfer money from another country to you, but before you receive the money it might take hours perhaps days for you to be able to receive the said money.
This is because transferring money involved some other parties who must authorize and control the transactions. That kind of frustrating and arduous processes get vaporized under Blockchain. The blockchain is a conceptually stored and synchronized distributed ledger that enables safe and transparent transaction across its networks. Every party involved has an identical copy of the shared ledger that is used to record and store information of the asset such as monies and properties.
Every change to the ledger will be synchronized and copied almost directly and transparently to the network where it will be seen as a block. The blocks are linked by cryptographically. An example to illustrate how this works is a situation where A wants to send money to B. The transaction is represented online in a block without a middleman. After the block is sent to every party on the network, approval is given by nodes to validate every transaction. If the transaction is approved the block will be added to the chain which revises the permanent and transparent records of the transactions Finally, the money will move from A to B and this is done in few minutes.
The blockchain network relies on the decentralized systems making it attainable for one person or group of persons to get in control of it. This safe and transparent transaction is facilitated through a decentralized system of the payment system which is allowed by the blockchain technology. Hereby staring in the era that extends beyond financial capital market, global payment, Corporate Governance social institutions and democratic participation Before Digitalization every action in the traditional banking industry had to be done manually. The industry has homogeneously surfaced centralized data stored and many intermediaries linked, this result to poor customer service through complex clearing processes, large amount manual inspections, leaking personal information and high costs.
The practice of keeping ledgers dates back in centuries, the blockchain story started in 2008 when an anonymous person or group of persons with pseudonym Satoshi Nakamoto published a white paper which proposes an Electronic peer to peer cash system called Bitcoin The blockchain was originally developed to support bitcoin but now it is used for more than thousand cryptocurrencies which resulted in a long trail effect.
The said technology can be used in so many sectors such as cybersecurity, supply chain, forecasting, networking, insurance, private transport, online storage, charity, voting, government, energy, online music, retails, health care, real estate, crowdfunding and identification As explained earlier the blockchain technology eliminates the involvement of a third party in transactions, or as prof. Anis H. Bajrektarevic coined: “Hegemony orhegemoney, a debtor empire/s’ fiat-papers.”
This chain is disrupting the banking industry as secured, cut cost, reduce delay and it is hugely efficient. Because it is decentralized and permissionless, it can lead to more disruptions in the financial sector, especially in payment clearing. Recently international organizations as well as developed countries and other countries have been paying close attention to the blockchain technology and are exploring their application in various fields.
For the financial sector, a number of the international financial institution have begun to formally plan for the blockchain technology since 2015, Goldman Sachs and other banking Giants have established their own blockchain laboratories working in close collaboration with the blockchain platforms.
Major Financial Institutions have a relatively positive attitude towards studying and improving the beck and processing efficiency of the blockchain technology and place a significant emphasis on its potential to reduce operational cost. In fact, IBM predicted that in four years sixty-six percent of the banking industry will have commercialized the blockchain at a scale. What are our indigenous Africa banks or Ghanaian own banks doing about this? Will they be part of the sixty-six percent as stated in the prediction above, it is high time we start giving opportunities to the IT department in the banking Industry to study this new technology so that we rise to be counted. Other opportunities with this new technology are a point to point payment, sharing credit data, smart contract all this using the blockchain technology.
This technology can drastically reduce the manual intervention of supply chain in finance and employ smart contract or digitized procedures that rely heavily on paperwork, numerous intermediaries, high risk of illegal transactions, high cost and low efficiency. As transaction occurs simultaneously each transaction will need to be verified by all the nodes in the entire network which is harmful to speed this impact will become especially needy when the nodes in the blockchain increase.
Despite the permission-less and self-govern nature of the blockchain the regulation and the actual implementation of a decentralized system are problems that remain to be resolved, however, it is important to note that any beneficiary technology is accompanied by risks, therefore, the blockchain regulation is necessary and should be considered earnestly. The Financial industry is highly sensitive to technological changes.
To keep up with these changes, banks must invest more into research on the blockchain not forgetting the development and empowerment of its staff in knowing more about this new technology. Although the blockchain technology is still unregulated and it could have its limitations, banks would have to improve their position in the industry.
The banks will try to improve their payment systems and overcome information communication resulting in a better customer experience hence the blockchain will become the core underline technology of the financial sector in the future.
A Good Transport System Supercharges the Economic Engine
The infrastructure bill in the U.S. has been signed into law. At the American Society of Civil Engineers (ASCE), they are celebrating the fruition of a couple of decades, at least, of hard work publicizing the decaying infrastructure and lobbying for a fix-it bill. Countless delegations have visited the White House and met with staff to present their case. And something for their efforts is better than nothing.
They also started a grading system, giving an overall grade — currently C minus, a notch above the previous one. The bill seeks improvement in roads, bridges and transit although it falls short of the ASCE estimates for what is needed. For example, the bill contains $39 billion for transit (ASCE grade of D minus) but there is a backlog of $176 billion that is needed. Given Republican opposition to spending and the compromises made to pass the bill, the administration got what they could — they can always fight for more later.
This opposition against infrastructure spending is somewhat incomprehensible because it generates jobs and grows the economy. Too much spending, too fast has inflationary potential but that is caused by too much money chasing too few goods, usually not when there is a tangible product — improved transit, roads and bridges in this case. And then there are also other ways of checking inflation.
This bill is a start but still a long way from having high speed cross-country electric trains as in other major industrialized countries. These are the least polluting and especially less than airplanes which emit six times more CO2 per passenger mile.
Why is the U.S. so lagging in high-speed rail when compared with Europe and Japan? Distances are one reason given although these are a function of time. No one would have thought of commuting 30 miles each way to work in the 19th century but it is not uncommon now for some to be quite willing to sit 45 minutes each way on a train for the pleasure of living in the greenery of suburbia.
The bill also includes $110 billion for roads and bridges. Unfortunately the backlog of repair has left 42.7 percent of roads in sub-standard condition costing motorists an estimated $130 billion per year in extra vehicle repair and maintenance. Some $435 billion is now needed to repair existing roads plus $125 billion for bridges, $120 billion for system expansion and $105 billion for system enhancements like increasing safety — a necessary improvement given a changing environment such as an increase in bicycle traffic. Allowing for round-off discrepancies, the total amounts to $786 billion (in the funding and future need section of reference). Increases in severe weather events have also had their effect, causing damage to roadways and further burdening the repair budget.
New technologies (in the innovation section of reference) like advanced pavement monitoring on key roads, using moisture and temperature sensors embedded in the roadway, now make it possible to assess pavements quickly without impacting road users. This leads to earlier repair and in addition new materials increase the life cycle. Much of this requires increased investment up front to take advantage of the new innovations.
Above all one can never afford to forget that a good transport system acts like a supercharger for the economic engine.
Another Look at the Prospects of a Eurasian Digital Platform
In view of the idiosyncratic features of Eurasia with respect to the gravity of distance, a common Eurasian platform for digital economic agreements may allow the region to attenuate the effects of distance and severe economic fragmentation — most notably in the regulatory sphere — emanating from the sheer size of Eurasia and the multiplicity of regional integration arrangements. By consolidating regional, bilateral, as well as corporate alliances, a common Eurasian digital platform would allow its members to introduce greater consistency and compatibility into the existing set of digital economic agreements, thus providing the conditions for multilateralising existing digital arrangements and for creating new digital economic accords.
One of the ways to create a digital “platform of platforms” for Eurasia that is to include platforms for regional integration arrangements, regional development banks and regional financing arrangements (RFAs) of the countries of Eurasia.
- The platform for regional integration arrangements would work towards advancing greater inter-operability into the digital platforms of Eurasia’s regional groupings such as the EU, the EAEU, ASEAN, RCEP, EFTA, BIMSTEC, SAFTA, GCC.
- The platform for regional development banks and funds such as EDB, EIB, ADB, EBRD, SDF, CAF would focus on building project portfolios in the area of digital cooperation/digital connectivity/digital inclusiveness and work to advance digital economic agreements (DEAs) on the basis of the existing digital arrangements concluded by countries such as Singapore.
- The platform for regional financing arrangements (ESM, EFSD, Chiang Mai Initiative Multilateralization, Arab Monetary Fund) would focus on the coordination of anti-crisis measures, the creation of ex-ante anti-crisis response mechanisms based on the use of “big data” and forward looking indicators obtained through digital cooperation and data exchange.
These three platforms can reinforce one another and can be further complemented by country-level and corporate-level platforms to form a Eurasian ecosystem of digital cooperation and inter-operability.
Such a Eurasian “platform of platforms” is:
- Digital: it advances digital cooperation, including digital trade at the level of countries and regions
- Regional: it places particular emphasis on building cooperation in areas that have hitherto lacked coordination, namely among regional integration arrangements and their development institutions
- Scalable: it can be replicated in other parts of the world as well as at the global level via creating a regional layer of global governance
The current economic framework in Eurasia is fragmented and lacks the digital connectivity that would be predicated on cross-country and cross-regional digital agreements. This in turn limits the capability of countries to coordinate policies in areas such as trade, migration, digital economy development. A common platform would address the issue of the “digital gap” across the countries of Eurasia via promoting greater “digital inclusivity”, most notably with respect to the low-income developing economies. Such a common digital platform for Eurasia may prove to be particularly important for land-locked developing countries that face notable geographical/logistic barriers to trade.
Indeed, of all of the different parts of the global economy Eurasia stands to benefit the most from greater digital connectivity and inclusivity, given the prominence of the “distance factor” that constrains the intensity of economic cooperation within the region. The gravity of distance is particularly costly for Eurasia’s land-locked economies — in fact Eurasia harbours 26 out of 44 (59%) of all of the world’s landlocked countries. Moreover, the scale of “inwardness” of some of the regions of Eurasia in terms of geographical location is truly unique, whereby Kazakhstan is the largest landlocked country in the world, while Bishkek is the farthest capital city from the coast in the world (all top-5 of the most distant capitals from the sea coast in the world are in Asia).
Existing research suggests that digital platforms may exert a sizeable effect in reducing the gravity of distance: as noted by Pierre-Louis Vézina, “distance between countries impedes international trade, but it matters 65% less for trade on the eBay platform than for traditional offline trade… The online world is flatter”. Yet another study focusing on the EU evaluated the importance of distance for e-commerce. This study of 721 regions in five countries of the European Union shows that while distance is not “dead” in e-commerce, there is evidence that express delivery in e-commerce reduces distance for cross-border demand.
Ways of measuring the effectiveness of a common platform would include the scale of liberalization and trade facilitation in digital trade across the Eurasian platform; increases in the size of the portfolio of joint investment projects related to the digital economy on the part of the region’s development institutions, increases in cross-border and cross-regional trade and investment associated with the digital economy. The number of multilateral digital economic agreements (DEAs) facilitated by the platform would be a measure of the contribution of the initiative to multilateralism. Another important metric is increases in connectivity arising from the creation of the platform — this would concern increases in digital connectivity/inclusivity, most notably in developing economies.
A common digital platform in Eurasia will serve to improve coordination across countries as well as regional integration arrangements and their development institutions. It will also serve to transform the landscape of trade agreements by facilitating the conclusion of digital economic agreements and multilateralising existing digital accords. The common platform will also advance international cooperation in the digital sphere and other areas pertaining to the Fourth Industrial Revolution to strengthen the response to the Covid pandemic and improve the region’s capabilities in the health care sphere as well as other areas pertaining to the development of human capital. A more cooperative framework for Eurasia that aims to emulate best practices and standards across the platform will also be conducive to longer-term cooperation, a more active use of ESG standards and greater emphasis placed on economic sustainability.
The creation of the Eurasian digital platform may be a step towards building a global network of cooperation on the basis of a “bottom-up” plurilateral cooperation among regional blocs rather than a “top-down” framework devised at the global level. Such an approach conforms with the principles contained in the WEF’s White paper on Globalization 4.0 that advocates the use of flexible plurilateral trade agreements as a way of further advancing trade openness in key areas, including in digital trade and e-commerce: “open plurilateral agreements of this nature are the most promising way available to update the trade rulebook without further fragmenting the world economy and weakening its crucial multilateral foundation”.
The formation of an open digital platform for Eurasia renders it amenable to replication at the level of not only regional arrangements, but also at the level of country-to-country cooperation as well as multilateral corporate platforms. An important aspect of the operation of such a platform is the principle of openness and inclusivity — whereby developing countries benefit from greater “digital inclusion” and the possibility to join digital alliances with advanced economies across Eurasia. In this way, the operation of such a platform contributes to a more sustainable and balanced economic paradigm across Eurasia.
From our partner RIAC
Future of the Chambers of Commerce of the World
New world has already emerged; the global populace on economic fronts, now thinks and demands differently, smart are the nations cognizant of such tectonic shifts, adjusting post pandemic recovery and tabling new economic models. All over the world, some 10,000 plus Chamber of Commerce with some 45 million members represents a big slice of such global economics in post pandemic fights. Today, in metamorphosis, if each such chamber as a local pillar within a city needs to be on digital platforms of upskilling and exportability to enable displaying their individual members on the global stage and engaging marketplaces with updated skills will boost local global trades. Such narratives are no longer rocket sciences but as existing realities since last decade as necessary tools to survive in a digitized world. What are the challenges of such transformations? Hence awaits a bright future for the Chamber of Commerce of the world.
There is no business like small business; no further proof required as almost all economies of the world have now accepted small and midsize business as top of the agenda. Economic development teams have now understood that any uplift, upskilling, reskilling, unskilling of SME+MFG on AI+AV+VR platforms will only save national economies. On the National Mobilization of Entrepreneurialism Protocols already tabled by Expothon Worldwide, study more on Google, where the local chambers can enjoy an excellent opportunity to lead on such fronts. Critical mind shifts are essential, as new attitudes needed with an entrepreneurial mindset for such deployments.
Emergence of new business math: A $1000, investment in technology buys digital solutions, which were million dollars, a decade ago. Today, a $1000 investment buys on global-age upskilling on export expansion that were million dollars a decade ago. Today, a $1000 investment on virtual-events buys what took a year and cost a million dollars a decade ago. Today, any micro-small-medium-enterprise capable of remote working models can save 80% of office and bureaucratic costs and suddenly operate like a mini-multi-national with little or no additional costs. What opportunities all this creates for 10,000 chambers of the world and how can they shine with their 45 million membership on various platforms and uplift the local economic base? How such events tabled, planned and executed and what will it take to start the process, on a systematic basis on which there are starting points.
Now is the time for national mobilization of entrepreneurialism on digital platforms of upskilling for exportability, for some 200 nations and 10,000 cities. Imagine if chambers in selected nations mobilized 1K to 5K SME for digital platforms for rapid-fire upskilling of exporters and reskilling of micro and small-medium manufactures to quadruple productivity, performance and profitability leading to additional new jobs creations. This is like a Marshall Plan but in reality more like a turnkey digital platform economy maneuver seeking right and authoritative leadership. Imagine if doubling or quadrupling productivity created dozens of new jobs, this would add 100s of million new jobs in 1-2 years. Maybe not the best jobs but surely secure local grassroots prosperity. The new global vision of the chamber waits for massive digitalization and mind shift change to optimize such global power play.
Facing tribulations; when everything is upside down, every business model on its knees, every effort futile where human endurance is always on real test, the outside world now morphed into unrecognizable formats. This is not dystopia; this is a new world.
Creating triangulations; when strange combinations create brand new landscapes, when accidental triangulations germinate new powerful new solutions, innovative excellence takes over and entrepreneurialism becomes a super driver.
Awaiting transformations; when such new frontiers transform our ideas and accidents into real actions lifting us to the upper stratosphere, when superior critical thinking and complex problem solving finds new paths to lead forward, we embrace new normalcy.
New global opportunities bring highly value added solutions to the local memberships of each chamber. The “Work + Office + Health + Money + Politics + Globalization” suddenly, all morphed into one gigantic blob of global calamity, forcing new challenges, creating new thinking and getting the world on brand new combinations of growth tracks. Now is the time for trade groups to come together, Local Department and Agencies, Trade Associations and Chambers across the world must unite in global narratives in participating on various aspects to boost their own local presence and their own memberships across the board. The challenge is open-mindedness to cope with SME + MFG +EXPORTS +PRODUCTIVITY + PERFORMANCE + PROFITABILITY + PLATFORM +ECONOMY aspects of expanding enterprises.
The new Trends: the global loss of credibility of institutions and distrust of political leadership will now open new narratives, new debates and bold new thinking. Absence of leadership will dispose of political correctness and seek disruption of political abuse. Almost every century there are such clashes of ideologies and strikingly humankind always survives no matter how battered. The game is about recognizing and defining values and understanding the global age of expanding diversity. Observe how new mindsets appear, how they shift, progress and advance. Therefore, becoming a lifelong learning student is not only a great start but also a safeguard from public hysteria. Without upskilling on global age platforms, the future is dark for economic development.
Next year this time, our world would have moved forward at much faster paces, but all due to almost free technologies. Those with mastery of national mobilization will have distinct advantages. By design nouveau-revolutionary, by style mobilization-centric, and by action deployment-ready, by results transformational; this economic-friendly thought leadership is a pragmatic approach to shake down lingering slowdown on global exportability and challenges midsize business economic management nation by nation across the world and offers immediately deployable solutions. Platform economy allows such mobilizations; global-age provides the right battlefields. Mostly, not dependent on new funding, rather deployment craved and execution starved. New mindsets urgently needed. The future is knocking; open the doors
The rest is easy
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