For centuries, global trade has been the single greatest creator of wealth in human history and market friction the greatest obstacle to wealth. Over the years, businesses have overcome multiple sources of friction. Institutions and instruments of trust emerged to reduce risk in business transactions. Technology innovations helped overcome inefficiencies. Still, many business transactions remain inefficient, expensive and vulnerable.
Blockchain technology – which creates a permanent and transparent record of transactions – has the potential to obviate intractable inhibitors across industries. As frictions fall, a new science of organization emerges, and the way we structure industries and enterprises will take novel shape. With transparency the norm, a robust foundation for trust can become the springboard for further ecosystem evolution. Participants and assets once shut out of markets can join in, unleashing an accelerated flow of capital and unprecedented opportunities to create wealth.