The lack of employment has been one of the major problems that have plagued many economies and one of the toughest problems that most governments face. At the root of this problem is the lack of enough jobs to cater to the ready workforce or labor that is available. Additionally, the automation of industries means more people will be out of jobs in the future. Fortunately, some government and business leaders came together and hatched an idea called Universal Basic Income (UBI) that might help make things better.
What is UBI?
The idea revolves around the creation of a welfare frame that will provide a wage support that will help to address the layoffs that will result from automation. This means that employees will be provided with a life-long severance package once they are laid off. Some big names in the tech industry including Elon Musk, Richard Branson, and Mark Zuckerberg have expressed interest in the idea. The Scottish government also expressed its willingness to provide funding for such programs. The idea has for the most part been focused on fiat currencies such as the Euro and the U.S dollar. However, the rise of cryptocurrency and more importantly, blockchain technology has led to the idea of creating a blockchain-based UBI.
The implementation of UBI and blockchain technology
The fact that UBI would have initially been based on fiat currencies means the system would be under the control of governments and banks. However, Blockchain seems to offer a better solution through the creation of the system from the ground up, thus changing how money works by making sure that it is handled by the people. Unlike during the industrial age where governments created larger centralized blocks to accommodate the explosive growth of companies due to economies of scale, the internet-age seems to be focusing on doing the opposite through decentralization.
Blockchain-based UBI is also ideal because it will help overcome some of the problems that face the UBI idea, including financing and agency problems. Allowing independent governments to facilitate the sharing of asset dividends with the beneficiary members of the UBI. However, the decentralized nature of blockchain means there will be no agency or middleman. Developers believe that the blockchain approach to UBI could be the winning recipe towards finally solving the problem of unemployment and poverty.
How it will work
The process of providing a life-long severance package for employees that are laid of will obviously not be an easy one but it can be made a reality. In the blockchain case, the UBI can achieve it through the use of a globally accepted cryptocurrency. Additionally, the beneficiaries or recipients will have the responsibility of managing and growing their resources using the networks that will exist between the real economy and the crypto market. Developments and investments related to cryptocurrencies are becoming more necessary because they may help unlock other opportunities and ideas that were not foreseen before. Additionally, creating financial security will encourage more creativity while also fostering social security.
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