How Crypto Is Shaping the Digital Revolution

From Installation to Deployment

Figure 1: Life cycle of a technological revolution (adapted from [1], p. 30)
Figure 2: Three spheres of reciprocal change in technological revolutions (from [1], p. 156)

Deployment of Mass Production vs. ICT Revolution

Table 1: Differences between the mass production and ICT paradigm [7]

“Financial capital has already done its job of leading the intensive spread of the new paradigm and the installation and testing of the new infrastructure. Sufficient portions of the business community and of consumers have assimilated the new common sense to be able to continue the transformation process. Now is the turn of production capital to take the leadership, expanding production and widening demand, with financial capital in a supporting role. […] There is also ample scope for redirecting business imagination and technological innovation towards the deeper transformation of world society, through developing truly knowledge intensive ways of producing and living.“ [8]

Crypto and the ICT Revolution

“Though they are more likely to originate in governments or world institutions, some of the new rules in the area of finance are self-imposed, precisely to avoid the need for government supervision. They usually involve a new framework for banking and monetary practices. Next to them rules of the game are established to condition business [and labor relations], as well as regulatory innovations on the international level. But each set of regulations is unique because it needs to match the specific characteristics of the paradigm it is accommodating. […] Accountancy and disclosure legislation is usually enacted to avoid the specific abuses revealed during the previous Frenzy.“ [19]

“To help bring about this new prosperity [of deployment], innovations geared to smooth operation in the context of the new paradigm will also be necessary in money, banking and financial practices. As with all innovations, the date of introduction is less significant than the time of intense diffusion. Already the… installation period of each great surge brings forth multiple innovations in the field of finance. Some are temporary or doubtfully legitimate and are destined to disappear or become… marginal (for the time being). Others, especially those connected with accommodating the investment, production, trade and consumption processes of the new technologies will probably generalize and expand. The propagation of the paradigm to further and further branches of the economy in the deployment period is likely to require those very instruments, together with others tailored to the emerging business practices [for example technology-focused venture capital and crowdfunding over the Internet, both of which have been essential to the growth of the digital economy, including crypto — M.L.]. These might include innovations in types of money, banking services and forms of credit or finance, which create the facilitating conditions for the full adoption of the new paradigm across the whole… economy in each country and in the world. They would be closely coupled with those measures of public policy (national and international) that establish the rules of the game and the institutional framework for banking and finance. […] It is clear that the burgeoning knowledge economy [created by the ICT Revolution] will require a very wide range of new instruments and even the overturning of some ’eternal truths’ about the tangible nature of assets [which is exactly the challenge posed by crypto — M.L.].“ [20]

Conclusion

Footnotes

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