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by collinvine
2017-10-05
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/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.


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