A way to make Blockchain Economically Scalable: Relationship between Decentralized Social Networks & Mass Adoption
Just like Apple’s iPhone has upgraded to iPhone 12 over a decade (the first iPhone came to the market in 2008), a similar pattern is being forecasted in the Blockchain ecosystem. The decentralized architecture initially focused on the financial services sector only (because of the 2008-09 financial crisis), and eventually started getting imbibed in other industries as well. After experiencing productive outcomes, everyone wanted to transform it into the mainstream. As blockchain-based platform(s) and application(s) operate on open-source, appropriate consensus algorithm(s) started getting developed and tested in small clusters. This piece focuses on figuring out relevant ways blockchain can be made economically scalable. A few (3 to be precise) distinct pieces of research indicate how decentralized social networks could be transformed into mass adoption resolving diverse issues simultaneously without much friction.
A few experts in Psychology and/or technology like Daniel Goleman has indicated that a change in human behavior eventually leads to the alteration in society at large. The shift from centralization to decentralization in a way could be seen from a similar perspective. According to this piece of research, consumers will be charged and would have to pay through a ledger (a decentralized function) that provides the trust back to the consumer. Almost every expert agrees to the fact that such transformation will become a reality in some time (it wouldn’t happen overnight), but when such an ecosystem becomes a reality, the consumer (you) would be able to make safe, transparent, and trustworthy transactions. Altering a consumer’s behavior pattern happens only after informing; guiding, and convincing/marketing in an appropriate fashion. When the above steps are taken consecutively repeatedly, only then the trust from the consumers will heighten and you may even be able to pay for your black coffee via ledger/some form of digital currency. Lastly, this piece suggests that it might take 7-10 years for blockchain to become economically scalable. The following piece of research is more of a survey examining the distinct online social network (OSN) that has been developed to resolve specific hurdles in society.
Decentralization can be viewed from a couple of angles in the field of OSN-online social networks. Here the distinction is made between technical decentralization/resource distribution and authorial decentralization. In resource distribution, different parts of the system function on distinct parts of the grid. While authorial decentralization refers to the unique and independent authorities that run and administer technical resources. Authorial decentralization illustrations include Facebook, Google+, etc. The infographic placed below offers a peer-to-peer online social network. The lowest layer focuses on communication networks which can also be said as network underlay. The middle layer is the DOSN, while the topmost layer tries and make the user experience productive. In the topmost layer, you may notice only components on the upper layer face direct user interactions (GUI, Apps), while the rest (API, Recom System, Search Mechanism, and OSN Connector) are kept hidden from the user.
Table 1 mentions the distinct approaches that have been scrutinized while surveying. Another research mentions some potential business models for a sharable economy from a technological perspective.
Two models formed from this research encompass:
- Agent-based modeling (ABM)
- Internal/External Trigger-Matrix
The ABM also referred to as agent-based modeling, comes under the category of computational models which invokes dynamic actions, reactions, and intercommunication protocols among the parties in a shared grid. This is done to evaluate the specific design and performance and forecast insights on the upcoming characteristics as well as behavior(s). The model has been implemented in social science and in research around innovation diffusion specifically as well. Through six particular factors, blockchain can be converted from experimental to optimization level.
The factors are:
- Local and potential complicated interactions,
- Rich ecosystems
- Temporal aspects
- Adaptive agents
- Medium numbers
The ABM model consists of 3 components at the core namely, agents, interactions, and environment. By implementing the three components consecutively in a loop for a certain interval, specific behavior(s) and pattern(s) can be established. Doing so will assist in modifying the experimental stage into an economically scalable stage.
Another model which intends in making blockchain economically scalable is through internal/external trigger-matrix. This can be said to help scrutinize the observations that took place in the ABM model from multiple point-of-views. Both modes at large indicate importance to the user’s adoption perspective to BSEBM (blockchain-based sharing economy business models). Another forecast that comes from the research is that for mass-market imbibing positive user attitudes towards BSEBM will be insufficient for motivating a sufficient percentage of individuals. For the motivation to happen at a large scale, blockchain technology should be perceived as more convenient than conventional platforms. As peer-to-peer decentralization in platforms and applications has been in the market for not so long, you should keep in mind that the research and survey(s) done to date have been in small clusters. Further researches, from distinct individuals/groups, will assist more in building a blockchain for a sustainable economy in the coming days.
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Last modified on July 4th, 2023 at 3:17 pm