Blockchain Revolution


Open Networked Enterprises



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Blockchain Revolution

Open Networked Enterprises
At very low cost, smart contracts enable companies to craft clever, self-enforcing
agreements with previously improbable classes of new suppliers and partners. When
aggregated, smart contracts can make firms resemble networks, rendering corporate
boundaries more porous and fluid.
Blockchain technology also drops Coase’s search costs and coordination costs so
that companies can disaggregate into more effective networks. An auto company
could check a supplier’s trustworthiness by just scanning the analytic services online.
Soon, just type “axle” or “window glass” into any number of industry exchanges on
the blockchain and negotiate the price online.
We can extend that simple scenario to finding a replacement part, a supply chain
partner, a collaborator, or a piece of software for managing a distributed resource.
Need steel from China, rubber from Malaysia, or glass from Wichita, Kansas? No
problem. Decentralized online clearinghouses operating as DApps for each
commodity will enable purchasers to contract for price, quality, and delivery dates
with a few clicks of a mouse. You’ll have a detailed searchable record of previous
transactions—not just how various companies were rated but precisely how they
honored their commitments. You can track each shipment on a virtual map that shows
its precise location in the journey. You can microschedule goods to show up just in
time. No warehouse required.

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