This essay focuses on the theme of “political economy”, mainly about the wide uses of
capitalism system via blockchain technology and decentralised finance and platform
cooperativism.
From ride sharing applications like Grab and GoJek in Asia to Bitcoin and Ethereum
transaction services in Europe, such services are increasingly prominent in our society
and both are easily accessible to the public while finding a way around capitalism . 1
Firstly, I feel that the concept of blockchain technology and decentralised finance is
impressive as it dodges the capitalism of transaction while operating in a save
environment. By removing third parties like the credit card companies from a transaction
of a product, total cost incurred is reduced as credit card service cost is saved using
crypto-currency like bitcoin, which is derived from blockchain technology. This allows
sellers to offer a fairer price for their products on the internet where most transactions 2
occur. Blockchain technology also offers security to prevent identity theft by blocking 3
information from being replicated. This means that hackers or scammers are unable to
duplicate important personal data like bank account or credit card numbers. All of which
is extremely accessible through our smartphones and online services on the worldwide
web. It is important especially in today’s context where information means power and a
1 "Rulers of the World: Read Karl Marx!" (The Economist. May 03, 2018)
https://www.economist.com/books-and-arts/2018/05/03/rulers-of-the-world-read-karl-marx.
2 Paul Cloke, , Philip Crang, , and Mark Goodwin, Introducing Human Geographies 3rd edition",
(Routledge", 2013), 393.
3 "Commentary: How Blockchain Could Put an End to Identity Theft."
http://fortune.com/2018/04/20/blockchain-technology-identity-theft-data-privacy-protection/.
slippage in information security could be lethal to one. With its benefits, inconveniences
are also prevalent. Because these currencies are readily available in large volume, it is
extremely volatile resulting in an unstable value of the currency itself. One can easily
lose hard earned money when dealing with cryptocurrencies . It is the uncertainty and 4
instability of the system that makes me skeptical on whether it really is safe for the
masses to use. Perhaps in the future, when these technology advances from its current
infant stage, it will then be safer for use.
Secondly, platform cooperativism also beats capitalism by a slightly unorthodox way as
compared to blockchain technology. Instead of eliminating the third party, it introduces a
third party to facilitate capitalism . Mobile applications like AirBnB and Uber act as a 5
moderator, aiding in the search for temporary accommodation or ride sharing services
by linking them to privately owned property or car owners. This is an alternative to the
conventional chain hotel or cabs that can be found everywhere. I feel that it is a creative
approach as it creates a mutual relationship between the buyer and seller while
eliminating the bourgeoisie system because profits earned by the owner is highly
dependent on the services that they are willing to offer rather than leveraging on
employees. Although this may seem ideal, there are inherent flaws to this idea. In
extreme cases, these services may dominate the market leading to job losses sustained
4 Katalyse.io. "Major Problems in the Cryptocurrency Market." (CryptoDigest. May 13, 2018)
https://cryptodigestnews.com/major-problems-in-the-cryptocurrency-market-dc82749f1b52.
5 Paul Cloke, , Philip Crang, , and Mark Goodwin, Introducing Human Geographies 3rd edition",
(Routledge", 2013), 402-404.
by employers due to a saturated supply that far exceeds the demand. In my opinion, the
best solution is to have a balance between the services provided by both parties so that
they can have a healthy competition while providing the best service for customers.
Word count: 500
