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A mounting prevalence of robustness and innovation over economies is being observed globally and the landscape of ‘wealth’ in the world is rapidly evolving. However, a closer inspection of global distribution of wealth shows that it is only concentrated in the hands of a few and the effort-reward imbalance is on the rise as well.
The dominant economic narrative of this world is fuelled by the concept of scarcity whereby wealth can only be acquired at the expense of depriving other entities from resources. Consequently, data – the most valuable resource today – is intensely amassed by a few monoliths.
In the absence of a closely-knit financial networking system, there is a frequent occurrence of inefficiencies when currency boundaries or jurisdictions of stock exchanges and brokerages need to be crossed by individuals. Any participant is prone to a higher degree of delays, risks, and other operational costs. Contemporary financial markets are closely guarded and nearly padlocked; therefore, individuals desirous of entering this realm must use the widely used interfaces and, once in – may forget the possibility of returning.
Owing to various barriers to exit, there are no efforts to change the rules and no one dares leaving the system. There is a considerable operational risk in altering the market infrastructure and also involves modifications in multiple interfaces. These apprehensions have rendered Financial Market Infrastructures (FMIs) into centralized infrastructure monopolies which discourage innovation beyond a minor level of experimentation. Lack of transparency and innovation does a huge service to the gains attained by prior management of operational risk, resilience-building, and economies of scale.
Currently, according to the World Bank, there are 1.7 billion people in the world who are not having access to the services of a bank or a similar financial organization.  This implies that the investment and empowerment opportunities for these people are relinquished despite having personal and community economics. 73% of citizens in the region of Southeast Asia remain dissociated with the financial industry.  Private equity funds will hold an estimated $5.8 trillion by 2025 which can be put to great advantage by a lower cost and digital-first infrastructure.  Growth can also be triggered exponentially if this capital is unlocked.
Apart from passive accrual of worth, the global art market is not representative of any investment opportunities.
Internet – ubiquitously known for bringing huge economic changes in peoples’ lives – is unavailable to 4 billion people in the world which results in their non-participation in global economy. Although internet is a revolutionary instrument, it has delimitations regarding security, access, copyright, management, and identity. The result is concentration of data in the hands of few although the value of data can be traced to billions of people around the world.
Economic trends in the last five decades are suggestive of global growth but the realization of wealth is only attainable through technologies like the blockchain, whose key feature is decentralization. The major difference between the existing systems and blockchain is the inability to exploit, corrupt, or compromise the latter. Inefficiencies are removed and there is the retention of competition and innovation, letting entities receive fair economic returns.
Three separate yet interacting elements – cryptocurrency, blockchain, and crypto-economics – were invented by Satoshi Nakamoto when they published the Bitcoin Whitepaper in 2008. Bitcoin was the first monetary system that was run by people and created value for the same. Through these three mechanisms, there is a budding level of trust in the financial structure through database technology.
Some of the larger opportunities of blockchain technology, for instance, Ethereum – an open-source platform created in 2014 – made the decentralized foundations of Bitcoin more programmable. This marked the beginning of an all-inclusive Web 3.0 comprising smart software objects, reputation, legally enforceable automated agreements, and certificates, and real estate tokenization leading to financial inclusion.
Ethereum enabled any system to be built on the basis of the decentralized platform which transcended beyond the control of servers and silos. Smart contracts – programs on blockchains – are one of the most noteworthy innovations of the blockchain. These can be coded and executed once a set of conditions is met and have shifted the manual operations to digital modes. This has essentially reduced mechanical reliance on third parties and can potentially enhance shareholder voting.
Several startups are demonstrating the blockchain financial revolution with seamless collaborations and removal of intermediaries with reduced costs. Brian Murphy and Nick BatenCourt visionary founders of a startup - PinionPartners, a Media relation agency that prioritizes its focus on emerging industries, especially in metaverse, technology space, and beyond - are very optimistic and according to them, "these startups will solve the major pain points in the private sector, unlock liquidity and broader access to alternative investments and is the future of how we will invest." Financial experts and blockchain builders have a surfeit of tremendous opportunities for innovation and collaboration and these must be embraced with insightful strategies. A lot is happening in the blockchain world – enough to destabilize the current global financial infrastructure and transform lives for the better.