As technology advances, so to do the ways we need to think about how things work and operate. Blockchain technology is a disruptive force and if harnessed properly, is set to radically transform the ways in which our economic system works and operates. With it comes the amazing opportunities to radically rethink how it functions and fix many of the inequalities of the current system.
The world of finance operates in static snapshots and disparate systems that don’t communicate with each other. Accounting firms take months to paint the picture of economic performance. What happens when AI automates all accounting and reflects economic activity in real time? How does real time data open up the door to new ways of valuing economic events?
When company valuations can be conducted instantly, so can investor payouts. Technology allows new ways to think about how equity can be distributed and calculated. Revenues can be shared and distrubted amongst investors as it flows through the system. How do market fundamentals flip when the components of a stock are valued in real-time and yield can be divvied out just as quickly?
Companies are much more than just their revenues. How do assets get valued in real-time and reflect back on their investment profile? What new metrics emerge that drive market signals? As intangibles become the driving force within companies, how are they calculated and used to drive value?
Management styles have long relied on tangible aspects of business. Now that intangible value can be more easily captured and used to drive value, how does management styles flip to best utilize them? What data now becomes available for operations to align around?
As AI automates connections of varying asset valuations and business functions, what happens to the role of accountants? How do they become aligned to capturing and increasing the value of intangibles? They will be the stewards of relating disparate data back towards AI calculations and optimizing how intangibles ultimately start to yield value for businesses.
As governments switch towards real time accounting so too will they need to transform around what that entails for operations. Budgets will become all about applying tax revenue to areas of the government as taxes are collected. Much like how businesses will be about chasing yield, so too will they. How does that change how Governments are organized and operationalized?
Money circulates through monetary systems in new and exciting ways. How will monetary policy and governing change in this new system? How are exchange rates calculated? How does policy transform when its effects on GDP can be measured instantaneously?
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