Let’s say that the rash of Initial Coin Offerings is a warning bell that extends Johnston’s Law of “Everything that can be decentralized will be decentralized.”
We can call it, if I may,
Epstein’s Axiom to Johnston’s Law:
Everything that can be Tokenized will be Tokenized.
To give credit where credit is due, the inspiration for this axiom comes from Trent McConaghy’s brilliant blog post, Tokenize the Enterprise…And Melt It Into the Community. Rinse, Repeat.
He basically walks through a multi-step recipe for how you take an existing business and decentralize it.
In the process, you spread power and incentives and end up creating more value by enabling innovation to occur organically at the edges of the organization and spread organically throughout.
As it should.
The blockchain revolution is about efficiency, reduced risks, and lower costs, but it’s also about the enablement of entirely new business models.
The tokenization of the organization (which we are already seeing in the form of Bitcoin, the ICOs, and Kik) is the first.