Question

Are distributed ledger technologies general purpose technology, social technology or both? Explain in detail why and why it is important for long-run economic growth

Answer 1

Distributed Ledger Technologies
Distributed ledger technologies are different from the traditional forms of centralized ledgers and other types of shared ledgers. Distributed ledger refers to the record, share and synchronization of data at several independent computers at the same time. The method opts for a decentralized form of keeping data. The method helps increasing transparency, efficiency of attaining data, cost reductions etc. Distributed ledger technologies choose to work adopting both technology and social technology. Using both, the method tries to work for better social processes. Distributed ledger kicks out the limitations and disadvantages of other centralized ledger forms.
Distributed ledger takes advantage of the development of technology to create a decentralized method of recording and sharing data. Social technology uses human, intellectual and digital resources to influence the processes. A decentralized method needs much cooperation of both technology and human contributions. It is not possible to attain an efficient decentralized method with only technology. Improvement of technology is necessary along with human contributions with the same. The effects will create efficient availability of data and record, transparent, less time and cost effective. This can increase the efficiency of economic factors in the long run. Decentralized method of storing and sharing data will helps in decision making and strategic planning in the long run. Information available about different sectors and factors can influence the performance of both in the long run. Benefits on less time, cost effective process will encourage production and other social activities in a long run basis. Like how internet helped the world of information, data provided or collected in a decentralized form can have better advantages than that of centralized one on long term economic benefits.