Warning: Blockchain Could Rot Your Brain Posted on : Mar 23 - 2018

Advancements in technology may be transformational. However we cannot forget that they also create adjunct problems.

For instance, social media addiction is a serious issue, the Internet spawned the need for instant gratification, and artificial intelligence has many of us worried about technological unemployment.

Unfortunately, blockchain is no exception. And yet, everybody wants a piece of the pie, and people are already pouring their life savings into cryptocurrency investments. Should we take a step back and reconsider?

Productivity paradox

Proponents everywhere tout that blockchain will make the world more productive. I've even made the argument that blockchain will force auditors and accountants out of glorified administrative work so they can produce more value for society.

Whether it's in banking, logistics, or advertising, on the surface, it may seem logical that any technological change will create "productivity gains." But before we convince ourselves that blockchain will be a time saver, consider the Solow Paradox.

Also known as the Productivity Paradox, this is the observation that "... as more investment is made in information technology, worker productivity may go down instead of up."

I've witnessed the Solow Paradox in action while working in different offices alongside C-Suite executives and other consultants. I've seen working professionals barely able to work an Excel spreadsheet, let alone utilize the countless Excel formulas that could have made their work output more productive and efficient.

While some will argue that the technical incompetencies I describe above are the result of poor training and weak hiring practices. Shouldn't the concern of the Solow Paradox be seriously considered if blockchain technologies are destined to have a stake in all industries?

It's certainly possible that the misunderstanding of technology may very well add hours to our workdays, rather than subtract them.

So before we get excited and confident about so-called productivity gains, due care and strategic planning should be top of mind to ensure that workers and organizations are adequately prepared for the next shift in the technological revolution. 

If new technologies are thrown at workers without adequate understanding of and training on the tools at hand, this may cause further declines in productivity, elevated stress levels in the workplace (and stress leads to health problems), and ultimately risk creating even more work. View More