When blockchain gets integrated with the economic system, it produces a Programmable Economy.
The programmable economy is a novel economic system that integrates both tangible and intangible values with blockchain while eliminating middlemen through free trades.
Some of the applications of blockchain in real life include the ability to represent or replace assets with blockchain based tokens. Assets can be tangible like stocks, gold, real estate, etc; or digital assets like points/reputation on a social media or even a game. Assets can also include copyrights, derivatives, insurance policy, etc.
Basically a programmable economy allows users to tokenize any type of asset using blockchain technology. To be able to tokenize assets, smart contracts which are run on the blockchain are required.
As innovative as it is, existing blockchains still have large room for growth.
Technical Issues Facing Current Blockchains
To be able to integrate blockchain technology into existing economic systems while tokenizing assets, smart contracts are required. Not just any smart contracts are needed, secure reliable, scalable and tamper-proof smart contracts are needed.
Two main concerns regarding smart contracts have been exposed with increasing adoption and these need to be fixed for efficient transactions.
- Performance and Scalability: Every now and then, the ethereum network experiences congestion which slows down transactions and increases fees. As more transactions are done, across blockchain platforms, the need for fast transactions grows because slow transactions can undermine the entire blockchain system. A high number of Transactions per second would favor all parties interested in using blockchain technology as well as increase adoption
- Low Security: A secure smart contract would be able to withstand attempts of hackers during any interaction between smart contracts and external systems. This would provide much needed trust and acalability as well.
What Is EDENCHAIN?
Edenchain is a blockchain based programmable economy platform that enables capitalization, tokenization, assetization and trading of all types of assets or values.