Creating Real World Utility

Blockchain advocates love to throw around terms like utility to describe the value of the technology.

Much of it is marketing fluff. 

Blockchains are just record books of transactions. Cryptos are just tokens representing marked ledgers. NFTs on their own are just serial numbers attached to digital objects.

Any monetary unit or speculative asset based on interest in the form of debt, or a rate of adjustment that doesn’t carry absolute interest, cannot possibly sustain the use of commodity resources, even if it is backed by those resources.

This is a major gap in logic when it comes to Bitcoin or Ethereum. In other words, the technology alone is not enough.

A native Internet currency is purposeless if it isn’t attached to a supply chain, or a way to manage commodity resources in a responsible way.

DAOs (decentralized autonomous organizations) are purposeless if they can’t coordinate the responsible use of resources between them.

The roles these elements play need to be codified and transformed, starting with failed economic principles such as resource scarcity, rivalry between market makers, and flationary risk.

As we do so, real world utility will emerge, and its positive socioecological impacts will become obvious.