Dawn of the Token Era: The New Global Network Economy

We are entering the era of the digital token.  Or to put it another way a new kind of frictionless economy based on an a new internet of value.

We’re already beyond the point of no-return – the ‘token event horizon’ is already well behind us. Now no-one can stop it! Not even the governor of the Bank or England, The head of the Fed, or the SEC. The genie is well and truly out of the bottle!

We are at the start of the next revolution – and things are moving faster than eve

The Internet was invented in the 1970s. But didn’t really take off until the dawn of the Web in the late 90s – Almost 20 years ago using internet as a substrate – its foundations.Giving us the internet as we know it. Onto which was grafted, not without difficulty, the ability to transact… based on offline institutions.

As innovators we are fortunate to be at the dawn of the next stage in that evolution, one that will have yet greater impact – difficult though that is to imagine.

Bitcoin is controversial Blockchain is not

If you think of Bitcoin and doubt this then forget Bitcoin and think of blockchain and the Bank of England

Plus the fact that around the world banks are all trying to figure out how to adopt and adapt this technology to put the new wine in old wineskins – because they know and recognise its power.

You may have wondered if you’ve read my recent critique but I am frankly an admirer or both and Andy Haldane and Mark Carney at the Bank of England. Problematic though Mark’s recent speech undoubtedly is – it simply doesn’t hold water as a treaties, as I’ve pointed out – what it does tell us is that the age of the digital token has arrived and the importance of the technology that makes it possible.

Put simply: Bitcoin is controversial blockchain is not.

In fact it’s more useful and powerful than most have yet realised – including and especially regulators.

Blockchain is a Gift to Regulators

While they are clearly puzzled as to how to regulate the progeny of blockchain techolgy they have so far missed the fact that blockchain itself provides a whole new world of dream tools with which to do so – smarter.

One of the lessons we can bring from the last 10 years, the first phase of crowdfunding, is that regulation does not have to stifle innovation – if it’s smart. But that this requires innovative and flexible thinking.

We have learned the power of identity linked to transparency – provided by the platforms.

We can then add to this the blockchain technology as an environment and toolset

Blockchain is a gift to regulators because by combining its ability to provide tamper proof, effectively immutable, traceability with identity and the right level of transparency (assured by the network), it provides the most powerful set of tools that any regulator anywhere could wish for.

It will enable a new level of safety and regulation never before attainable.


James and others will be participating at the 2020Fintech conference in London this Wednesday, April 4, 2018. More information and to access the live stream the day of the event is available here.


Barry E James is author of New Routes to Funding, a commentator and global thought-leader on Fintech, ICOs, Tokens and Crowdfunding & their innovation & regulation. A serial entreprenur with a deep background in tech and innovation over four decades he advises ICOs, Crowdfunds and Blockchain ventures on strategy. The instigator of the regulatory ‘Innovation Unit’ (and so sandboxes) he is also co-chair of the joint Westminster Crowdfunding Forum and All-Party-Parliamentary-Group. He is co-founder and CEO of TheCrowdfundingCenter and ICONewsDesk which collect and provide data and unbiased analysis. James will launch a new service, TokenIntelligence.io, soon.

 

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