From Nasdaq MarketSite:

In the early days of Ford Motor, production time for a model T was reduced from 12 hours to 93 minutes through methodical improvements. Today, disruptions are fueled by public blockchains and tokenization, changing the economics of doing business by driving efficiency without traditional scale requirements.

Tokenization standardizes blockchains and smart contracts, leading to efficiency gains without traditional scale. But as some industries consolidate for competitiveness, others, like 3-D printing, are reducing scale significantly. This shift could lead to more competitive markets and opportunities for smaller firms to thrive.

Coordination among businesses is crucial, especially in supply chains. Blockchains can simplify these complex processes by enabling firms to represent products as digital tokens on a public blockchain like Ethereum. This shift could lead to increased competition and efficiency in various industries.

As technologies like 3-D printing and blockchain reduce minimum economic scale requirements, more competitors can enter markets. This shift may lead to increased variety, local customization, and opportunities for smaller businesses to succeed in highly competitive markets, driving operational efficiency and economic growth.



Read more at Nasdaq MarketSite: Blockchains Will Upend Economies of Scale