The Origin Of Wealth By Eric Beinhocker - 779 Words

The Second Law of Thermodynamics (also called the Law of Entropy) states that, generally, the universe moves from order and structure to a state of disorder. What we witness around is staggering complexity. Complexity has found its way into economics too. Eric Beinhocker, the author of â€Å"The Origin of Wealth†, estimates that in New York City alone, there are some 10 billion SKUs, or distinct commodities, being traded in a day. This is why, when an invention as simple as bitcoins was created, it made the economy uneasy. Over the past years, there has been an increase in interst in the cryptocurrency system by financial institutions and governments. However, their position is typically stated by â€Å"I like blockchain but not bitcoin.† Institutions have failed to understand that bitcoins and blockchains have symbiotic relationships. The coin is an incentive mechanism to maintain security. Until the invention of Bitcoin in 2008, security and decentralization seemed like contrary concepts. Traditional models of financial transactions lie on centralized control to provide security. The architecture of traditional financial network is built around a central authority. As a result, security and authority had to be vested in that central actor. The resulting security model looks like concentric circle with very limited access to the center and increasing access as we move away from the center. However, even the most outermost circle, cannot afford open access. The entities near theShow MoreRelatedExploring Corporate Strategy - Case164366 Words   |  658 PagesSound into a music and media empire worth nearly  £150m. Two years later, Palumbo had quit as chief executive and the Ministry of Sound was looking for a new st rategic direction. The Ministry of Sound’s start had been difï ¬ cult. Dance music had its origins in ‘acid house’, itself with its roots in the futuristic, electronic music of the gay clubs of Chicago and New York. The new style had been picked up by British DJs in Ibiza, who combined it with the drug Ecstasy to create a new ‘blissed-out’ sound