Blockchain, a key driver for economic growth

Article written by Maciej Zurawski, Founder and CEO, Musemantik

We all know technological innovations are a key driver of economic growth. Innovation is so essential to increase the productivity and efficiency of value creation that economists attribute a staggering 85% of the economic progress in the Twentieth century was to technological innovations. For those of you keeping score, that's a little over five of every six dollars that the world economy grew by in the last hundred years can be directly credited to technological advancement. What may surprise you is just how much developing Blockchain technology can further this trend towards prosperity.

Blockchain is a novel development in computer science that can escalate economic growth radically through personal value creation. Fundamentally, it is a technology of distributed data and digital assets that are spread across a global, decentralised computer network. New data is chronologically recorded in blocks that are cryptographically in a permanent chain of synchronised information. This information shared is public and does not rely on any centralised actor for it to operate and consequently cannot be manipulated by corrupting information on a central server. Data contained within the blockchain is completely secure and trustworthy allowing for applied use of data in new and valuable ways. In the same way that instant communication revolutionised the economy, totally secure communication offers incredible economic, social, and societal benefits. We at Musemantik believe that the Scottish economy is particularly poised to adopt Blockchain and to take advantage of the myriad benefits adoption will bring.

In brief, we estimate a £2.46 billion contribution to Scotland’s GDP by 2030 as a consequence of information transparency, £1.1 billion in efficiency savings, and a £4.48 billion general increase in GDP as a consequence of adoption. [I] We encourage general implementation of blockchain solutions to capitalize on their benefits to create value for Scottish society. By encouraging socially responsible supply chain activities, implementing user-friendly health care systems, and reducing the costs of data transactions or financial intermediaries this have the potential to increase the national wealth substantially.

[i] The calculations are based on the figures in the “Time for trust” report of PWC (2020) and on the share of Scottish GDP from the total GDP of the UK.

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