That is the topic of my latest Bloomberg column, here is one central bit:
Other than using blockchains to organize cryptocurrencies, imagine using them to record and decide who can store information about you. The blockchain is thus a potential substitute for some functions of Facebook, a corporation. Or imagine using the blockchain to allocate rights to your attention in cyberspace, who can send you ads, and who can send you an actionable email or induce you to complete a task, the latter an idea from Balaji Srinivasan of Coinbase.
No, you don’t have to sit down and personally bid on all of these decisions, but your AI bots can use micropayments and trade with other AI bots, based on your initial instructions. This new method of governance holds out the promise of using market mechanisms to order your life online, rather than relying on monopolies to do it for you.
Or, say, virtual reality worlds come to pass, where people plug in to relax, to take an exciting one-hour trip to Paris from their sofa, or to have cybersex. The property rights in those worlds might be allocated by blockchains and cryptocurrencies, again assisted by AI. That would create a parallel economy and indeed parallel legal systems, and those might spring up more rapidly than current administrative law will handle those new situations. In these new economies and legal systems that spring from blockchains, competition and rapid experimentation would be the norm.
I don’t think that all will happen, but in expected value terms it remains important.