Just as the evolution of the internet created new methods of communication and business models, the arrival of blockchain systems has enabled business to envision new ways of engineering transactions which are much less obvious than at first they would appear.
The evolution of digital commerce has two major impacts, disintermediation and dematerialisation. In any digital environment where one party is willing to make a payment remotely for property or services delivered against a digital promise, the need for intermediaries, brokers, trusted third parties and long supply chains is removed. The internet started a process which blockchain technology is likely to accelerate.
Physical intermediaries, high street stores and even wholesalers are inevitably reduced as part of the supply chain. The other element, dematerialisation, is less obvious and involves removing layers of infrastructure. Digitising transactions and automation of distribution centres facilitate matching the digital product identity with the financial transaction and the digital identities of the parties. Legacy business operations such as pick and pack and the reliance on the complex extended supply chain is inevitably dematerialised.
Read the full article by our guest author Alexander Carter-Silk here or download the PDF below.
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