It is often difficult to see how things can change. We are so in tune with how things are, we ignore what is possible.
This is especially true when it comes to major corporations. Our natural tendency is to believe they will always being around. Not only that, the idea they will remain a dominant force in our lives is also something we are drawn to.
History shows this is not the case. However, in spite of this, we tend to fall victim to this way of thinking.
We are in the Age of Disruption. Things are happening around us where major corporations are falling apart before our eyes. In this era of instant gratification, most are focused upon the next 30 seconds. Long term perspective is something we seem to be moving away from.
That said, when we step back, we can see how disruption is causing havoc. This is also something that feeds into Web 3.0.
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The Age of Disruption
Why are we in the Age of Disruption?
Simply put, industries are being at digital speed. What was once a long-standing industry is now under attack. This is happening in many areas, and will continue to do so.
Eventually, we are looking at a point where labor is also disrupted. What are the economic implications of this? So far, we can only surmise but I have a feeling we will find out shortly.
Technology is providing options. This is empowering both corporations and individuals. We are in the early phases but the impacts are being seen.
A decade ago, the retail apocalypse came upon us. In the United States, a household name, Sears, was in decline. While the company is still around today, it is hanging on by a thread. The same is true for many other companies.
We also saw the "death of the shopping mall". There were billions in real estate that is worth a fraction of what it was. Technology usurped this.
It is a trend that is not likely to end. Grocery chains are getting into the delivery business, a move that will reduce their 100% dependence upon physical locations.
This is how disruption happens.
Some companies will adjust. Walmart is an example. It went from being a retailer to technology company. Hundreds of billions were spent upgrading aLL facets of their business. While it is not a replica of Amazon, it is far removed from Target.
Most entities get washed away. Kodak, Blockbuster, and, now Red Box, are firms that didn't adjust. Hollywood studios are finding themselves in the same situation, being consumed basically for their libraries.
The Essence of Disruption
Why do companies get disrupted?
If someone like me can see some of what is coming, why do the executives at these companies miss it? This is a presumptuous statement. Actually, in most instances they do not.
What tends to happen is companies are powerless to do anything about it. Disruption almost always comes from the outside. This is something that most are aware of. However, few take the time to ask "why".
The answer lies in the structure of these businesses. What happens, over time, is stakeholders emerge. These are individuals (or groupings) that operate in their own self interest. It is a natural outcome. The problem arises is that, when under attack, we see conflict.
Each is looking after his or her own interest, to the detriment of the whole. Obviously these are some powerful players which have the ability to influence things. If nothing else, one "no" vote maintains the status quo.
Here is where the problem enters. When under attack, business as usual is fatal. Some of the groups might get a temporary victory but ultimate succumb to the disruption.
When stakeholder interest is not aligned, it causes paralysis. It is what causes the death of many institutions.
Web 3.0: A New Era In Digitization
We have dealt with the corporate structure for hundreds of years. It is firmly implanted in our economies. To think of life without corporations is beyond most of us.
At the same time, when it comes to the Internet, we know the usual suspects. Consider the removal of Amazon, Google, or Meta. Can you think of a time without PayPal?
These are large entities that are firmly at the center of what most do online. It is why they, for the most part, are so highly valued.
However, to think they are exempt from disruption is a risky conclusion.
That isn't to say things are going to change overnight. What we do know is that history is not on their side. Web 3.0 is a new framework from which to build. It is a solution, in my view. to a lot of what is taking place.
Artificial intelligence is getting the attention. This is probably the biggest disruption we have seen. What we have is something that the corporations are looking to keep for themselves.
Here is where Web 3.0 enters. It is a realm based upon decentralization and open source. We are dealing with a global system that is not geographically based. the general population is more technologically advanced than it was a few decades ago.
That means, when properly incentivized, we can see a lot of changes happening in a relatively short period of time. Companies that are mired in their old ways are going to suffer.
Again, here is where adaptability enters. Of course, Big Tech tend to excel at this. However, they still need to be fed.
Web 3.0 is about alternatives.
It is best to remember power is never ceded. Entities do not willingly give up market share. That said, we know how this operates.
There was a time when Hollywood studios, which became the major media companies, controlled the creation and distribution of information. When YouTube came around, it was not viewed as a threat. There was also no decision to give up power to that platform.
Today, YouTube is the top streaming company, ahead of Netflix and Disney. Over the last few months, the lead is growing.
It did not occur by becoming another media company, at least not to start. Instead, it provided an alternative. A decade plus later, it is the top dog.
Web 3.0 will evolve the same way. We are see the fragmentation of many industries. As technology grows, people can do more with less. This means alternatives of all sizes pop up.
Here is where the shift happens. Each transaction away from the major entities is a step towards that. It is exactly what happened during disruption. The newer ones increase while the existing players see a decline. Whatever the metric, it becomes clear.
We are in the Age of Disruption and Web 3.0 is going to benefit. The key is to provide alternatives to what people are presently doing.
This requires innovation, infrastructure, and entrepreneurs.
Incumbents cannot fight it. They end up getting bogged down by their stakeholders.
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