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Great question. This is the biggest opportunity for software, in my opinion. The boundaries between the firm and the market are, in part, governed by transactio
by collinvine 9y ago
Great question. This is the biggest opportunity for software, in my opinion. The boundaries between the firm and the market are, in part, governed by transaction costs. (There are more reasons. You mentioned you're interested in reading more, so I'd recommend this: https://www.amazon.com/Economic-Nature-Firm-Reader/dp/052114177X https://www.amazon.com/Economic-Nature-Firm-Reader/dp/052114...)
Technology has the opportunity to decrease transaction costs amongst a group of participants. Consequently, this could then lead to lower trust amongst participants—one of blockchain's leading selling points.
It's all theory, so we'll see how this plays out, but it's the one thing I think is most exciting: can technology lower transaction costs and thus blur the lines between firm and market.
- katelynsills 9y agoThanks for the book recommendation! Just bought it. Agreed that smart contracts and technology in general could be used to reduce transaction costs.