- 07/28/2019 at 9:44 am #1536489EduGorillaKeymasterSelect Question Language :
Direction: Read the passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of the questions.
Over the past 20 years, the economy has progressively moved away from the traditional model of centralised organisations, where large operators, often with a dominant position, were responsible for providing a service to a group of passive consumers. Today we are moving towards a new model of increasingly decentralised organisations, where large operators are responsible for aggregating the resources of multiple people to provide a service to a much more active group of consumers. This shift marks the advent of a new generation of “dematerialized” organisations that do not require physical offices, assets, or even employees. The problem with this model is that, in most cases, the value produced by the crowd is not equally redistributed among all those who have contributed to the value production; all of the profits are captured by the large intermediaries who operate the platforms.
Recently, a new technology has emerged that could change this imbalance. Blockchain facilitates the exchange of value in a secure and decentralised manner, without the need for an intermediary. But the most revolutionary aspect of blockchain technology is that it can run software in a secure and decentralised manner. With a blockchain, software applications no longer need to be deployed on a centralised server: They can be run on a peer-to-peer network that is not controlled by any single party. These blockchain-based applications can be used to coordinate the activities of a large number of individuals, who can organise themselves without the help of a third party. Blockchain technology is ultimately a means for individuals to coordinate common activities, to interact directly with one another, and to govern themselves in a more secure and decentralised manner.
Blockchain technology thus facilitates the emergence of new forms of organisations, which are not only dematerialized but also decentralised. These organisations — which have no director or CEO, or any sort of hierarchical structure — are administered, collectively, by all individuals interacting on a blockchain. As such, it is important not to confuse them with the traditional model of “crowd-sourcing,” where people contribute to a platform but do not benefit from the success of that platform. Blockchain technologies can support a much more cooperative form of crowd-sourcing — sometimes referred to as “platform cooperative”— where users qualify both as contributors and shareholders of the platforms to which they contribute. And since there is no intermediary operator, the value produced within these platforms can be more equally redistributed among those who have contributed to the value creation. With this new opportunity for increased “cooperativism,” we’re moving toward a true sharing or collaborative economy — one that is not controlled by a few large intermediary operators, but that is governed by and for the people.
Today we have a new opportunity to replace the model of top-down hierarchical organisations with a system of distributed, bottom-up cooperation with the help of blockchain. This shift could change the way wealth is distributed in the first place, enabling people to cooperate toward the creation of a common good, while ensuring that everyone will be duly compensated for their efforts and contributions.
Which of the following can most aptly be the theme of the passage?
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- To move away from the traditional model of centralised organisations.
- What Blockchain means for the sharing economy.
- To make a collaborative economy which is controlled by a few large intermediary operators, but that is governed by and for the people.
- To ensure that everyone will be duly compensated for their efforts and contributions.
- The blockchain is a platform cooperative.
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