Tag: currency

  • The abstraction of trust

    Usually, I use evolution. But that indicates a forward movement, and in this case, I am not so sure now! I had a thought on how the notion of trust in transactions has changed, and felt that I should document it, even if it’s in a super simplistic way!

    1. It began with a producer/consumer – consumer/producer relationship in the form of barter.

    2. A central currency suddenly opened up trade and now it could just be producer – consumer

    3. That also meant that a middleman could enter the system, hence a producer – seller – consumer (more…)

  • Privilege & Currency

    I read a remarkable set of tweets sometime back on the subject of privilege by @eveewing. She rightly pointed out that it is fairly easy to acknowledge privilege, but reparations are far more difficult. Writing about it, by that measure, is the easiest thing to do, but be that as it may….

    I had written about privilege a while back, and used the framework from Breaking Smart – socio economic, cultural and cognitive kinds. The tweets I’d mentioned above are related mostly to the first kind – socio economic – and this is indeed the most visible around. But a recent experience made me think of it a little beyond that. (more…)

  • Currencies of hope

    In The Narratives of our lives, I had written about how, thanks to the advances of civilisation, many institutional narratives like religion, nation, culture etc have assumed increasing levels of importance in our lives, and how these (and our personal) narratives are probably our way of ensuring a sense of belonging. ‘The Age of Spiritual Machines‘, criticism on the concept of singularity notwithstanding, has convinced me on the cold, sanitised nature of evolution, so these days, I try to see what evolution’s play is, in these narratives.

    Thanks to a wine-induced pop philosophy conversation, I got thinking about theism and atheism. The epiphany (for me) was that they are just two sides of the same coin, and the currency was hope. Simply put, the foundation of the theist’s hope is God, and that of the atheist’s is the ability to determine his own future. ‘Our beliefs create the world we live in’, but across belief systems, hope is a critical ingredient for man’s survival. I realised that as long as we are the dominant species, hope has to hang around, or vice versa. By virtue of providing a common imaginary friend to a sufficiently high mass, religion not only addresses our need to belong, it also gives us hope. What each of us hope for is a very subjective thing, but collectively, it makes religion a really dominant narrative in many lives. When I thought about it, I recognised an even bigger force – money. (more…)

  • The overhaul of currency

    Back in 2012, in my first post on institutional realignment, I’d written this – “…my biggest hope is that the current currency of our lives – money – will have a better successor, one that will be better connected with our unique identities, and weave in contexts better.” In the two years since, this movement has not only begun, but is also figuring out its own dynamics. I had expected, or wanted, a disruption of money, but it will most likely be a transition. At this stage, I see at least three broad areas to frame this movement -the democratisation of finance, alternate currencies and marketplaces for value exchange.

    Democratisation of finance: This is probably where it began, because the internet has a reputation for removing intermediaries who do not add value in this case, financial institutions. From projects in Kickstarter, Indiegogo, and GoFundMe to social investments like RangDe and Milaap, there are now many ways to mobilise funds for me and you from people like me and you, according to personal passions, interests and belief systems. I’ll add more to this in the ‘marketplace’ section.

    Alternate currencies: Arguably, money as an institution has built a network involving processes, dependencies and establishments keeping in mind the dynamics of an earlier era. A civilisation connected by the www may find these tedious and irrelevant, and thus it’s only natural that it builds its own institutions. Bitcoin (a good introductory guide) is the one that made this phenomenon (relatively) mainstream, to the point that it even has ATMs. Bitcoin may or may not survive, it is probably the Napster in its domain, it has changed the game irretrievably. While on the subject, do read this fantastic tongue-in-cheek take on how it’d be if the roles were reversed – a cash based mechanism replacing digital currency. Meanwhile, there are other currencies similar to Bitcoin, and then there are completely different thoughts – for example, Pay With a Tweet. Which leads us to the various payment mechanisms that are being built.

    Marketplaces & Value Exchange: While the other two are the dynamics, this is where the mechanics play a part as well. In the ‘democratisation’ section, I had referred to several platforms that aid both discovery and action. There are many more stories in this line – from AgreeIt, an app that allows crowdfunding from friends on Facebook to crowdsourcing for emotional advice, ideas and so on to selling one’s reservation at a restaurant/spot in a line through Shout to  a ‘new media company’ Ideapod that wants to “amplify the ideas that shape our world, create genuine and enduring dialogue around ideas and spread ideas that matter through new and traditional media channels.” to ordering food from neighbours, (Eatro in London and Imli – a startup I mentor at the Microsoft Accelerator- closer to home) there are various models of value exchange that are shaping themselves. In fact, the entire ‘social commerce via collaborative consumption‘ route is based on these marketplaces. (a few good perspectives and stats on its drivers here)

    But, irrespective of the currency, every transaction requires (another) key element – trust. The social web is also building its own mechanics for this – from relatively generic clout mechanisms (Klout, Kred and the likes) to more context specific ones like LinkedIn or GitHub or even Wiki and review mechanisms. (from Amazon to TripAdvisor to Foursquare to GoodReads to Zomato) We earn trust through our knowledge and actions in these mechanisms. We earn social currency. That brings me to the final portion – how does all of this impact brands and what would be their role?

    Brands & the trust economy: Across the ages, corporations have been built on competitive advantages pertinent to the economies they operated in. I found a fantastic illustration in this context here

    Economies and competitive advantages

    I think relationships are indeed going to be the major competitive advantage in the future, and if so, the currency that would play a bigger role than money would be trust. As in many other developments prior to this, there are opportunities here for brands to weave themselves into the consumer’s narratives and go beyond transactional relationships, and to earn social currency. Many of them are already on it, finding ways to earn consumer trust and helping him/her develop and change perspectives about various currencies and relationships between them. Since we’re talking of finance, let’s use an example in that domain. Fidor bank helps its consumers discover crowd sourcing options, staying true a bank’s generic commitment of excellent wealth management. Yes, it’s still money, but it understands that it can be deployed beyond traditional options. In the process, it also helps the consumer to belong to a community.

    Brands actually have an option to join in wherever there is consumer spending. Nike+, as usual, did something back in 2012 – they allowed runners to trade in (running) mileage for Nike goods (I had shared the video in the institutional realignment post too) While this ties in beautifully with Nike’s business purpose, maybe some brands would have to lean a little more towards the consumer side and get into relatively unrelated narratives, and a relationship, before connecting it back to the business purpose. For example, airBaltic’s loyalty program Baltic Miles rewards frequent fliers who jog enough to burn off the same number of calories as miles they’ve flown. One of the aspects of agile marketing would be to enable identification of opportunities early. For example, imagine Coke getting into the act in Beijing’s first reverse vending machines that pay subway credits in exchange for returned containers.

    In what might seem like a ‘changing of goalposts’, just as brands are beginning to vaguely realise that their currencies of engagement with consumers need to change, the consumer’s relationship with the common currency of transaction – money – is also changing. The two are very related, and brands need to tackle both to have meaning and relevance in a consumer’s life, because if (as Godin says) “money is a story“, we’re probably nearing a plot twist.

    until next time, the end of money’s monopoly

    P.S. For another detailed look at the subject, you’d want to read Gauravonomics’ post on ‘The Future of Money‘.

  • Emotion as a Service

    More than a year back, I had written about institutional realignment and had briefly mentioned the institutions of marriage and parenting. ‘The currency of relationships‘ made me think of this, and family – immediate and extended – as a societal construct/contract/ institution, and probably even as a tradition. Where we are born, and whom we are born to, are apparently out of control, but we do have an illusion of control courtesy the choices we make as we go along. Thanks to these choices, our lifestyle and our perspectives may follow a trajectory that is totally different from the circumstances and people we grew up with/in. This is not just about the people from our childhood/youth, but is a continuous process through life. Each of us find our own ways to deal with the constant flow of people through our lives. These are again choices, and like most choices involves some amount of sacrifice and bring with them their own set of consequences.

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    I loved that Goethe paraphrase, because I think it sums up our relationships very well. At the risk of sounding cynical, (or receiving a ‘speak for yourself’ comment) I’d say that we’re increasingly becoming selfish as a species. I have always had the notion that most relationships are contextual, and it would be difficult to scale our emotions/feelings for others for an indefinite time frame. Yes, I do acknowledge there are exceptions, but that’s what they are – exceptions. Do a quick test and find out how many people across your life you’re still in touch with – bouts of nostalgia not included?

    It is with all this as the backdrop that I read Scott Adams’ “The Future of Marriage“. It articulates very well a thought that had crossed my mind earlier. (Of course, he obviously explores it way better than I could have) He deconstructs the institution of marriage and argues that marriage made sense “when the world was inefficient. You married a person nearby who could provide most of your important needs while hoping your lesser needs could also somehow be met.” Now, he says, the internet has allowed us to have a barter economy of relationships. In other words, a virtual spouse comprised of a dozen separate relationships. He tempers everything by saying that in the future, marriage may be one of the many options available. By sheer coincidence, and in a different context, I came across this quote attributed to Steve Macone “A tradition is a habit whose logic has faded“.

    I thought about this in the context of the expectations I had mentioned in the ‘currency of relationships’ post. If the institution of marriage can have a barter economy, why not other relationships? After all, isn’t every relationship a barter at its core? It’s just that we are rarely comfortable with voicing our expectations in the case of an emotional ‘transaction’, quantitatively or qualitatively. (generalising) Parents expect their children to look after them when they are old, in return for bringing you up; relatives expect you to return the favours they once did for you, and so on.

    So who knows, maybe our pace of life and our need to be (seen as) fair in all our relationships will conspire to form a barter ecosystem that offers emotion as a service. It is possible that an alternate path to prosperity might take us in a different direction, but in the era of the quantified self and the augmented human, when we slowly transition our selves into the cloud, maybe ‘Emotion as a Service’ (like)  is not an impossibility. What do you think?

    until next time, a qualified self