Although new technology intrigues us and makes us curious about what can be achieved with it, the flipside of the human reaction to anything new is suspicion and even fear. Technophobia means fear of technology, and it can stem, for example, from not fully understanding how something works, possibility of danger and negative impacts or risk of malicious misuse. Another flavour of technophobia is anxiety over our personal competences to deal with new technologies and the downright possibility of social exclusion if we lack the access or skills to adopt them.
Why is this important?
Some of the technology fears connected to the platform economy have been around for a long time, and they apply to pretty much any technologies linked to machines and computing. The archetype of suchlike concerns is the fear of losing our jobs because of automation, something that has been a worry for well over a century.
Another major concern in the context of platform economy is how the disruption to economy will impact us as individuals (for example moving from regulated labour market to the gig economy), as businesses (for example smaller companies being bulldozed by large platform corporations) or as society (for example governments trying to keep up with regulation, legislation and fiscal needs related to platforms).
Fears do not either escape the indirect risks and negative impacts that may arise with platformisation, such as loss of knowledge and survival mechanisms if digitalised assets are destroyed or if there’s a prolonged power cut. Intentional misuse and criminal activity is also a scare experienced by many, and evolving platform configurations may indeed be extremely vulnerable.
Examples of specific fears include:
- Fear of technology eliminating jobs and the need for human workers.
- Fear of technology taking over the human (individual or society).
- Fears related to privacy and cyber security.
- Fear of losing control and getting lost in the technology mesh.
- Fear of not learning the skills or not having access to use a technology.
- Fear of dependence and not surviving without the technology (for example in case of a power cut).
- Fear of negative social and societal impacts (for example lack of face-to-face interaction).
- Fears related to fast and vast information flows (for example validity of news).
- Fear of governments not having the means to monitor and control malicious and criminal activity related to new technologies.
Things to keep an eye on
The important thing is to try understand the root causes of fear of technology in the context of platform economy, regardless of whether the threats are real or perceived. Also, it should we noted that technophobia may influence not only consumers but businesses and policy-makers alike. Through addressing technology-related concerns appropriately we can ensure that individuals as well as companies and other organisations have the courage to make the best of the platform economy opportunities. On the other hand, the assessment of fears helps us to pinpoint risks and vulnerabilities that need to be fixed in technological, regulatory or other terms. To dispel mistrust, impartial and validated information to support technology proficiency and awareness is needed. Similarly important are also investments in for example digital security and technology impact assessment.
Selected articles and websites
Robots have been about to take all the jobs for more than 200 years. Is it really different this time?
The Victorians had the same concerns about technology as we do
Fear of Technology
Hot Technology Pilots in 2016 – Fear & Chaos in Technology Adoption
Why do we both fear and love new technology?
Americans Are More Afraid of Robots Than Death. Technophobia, quantified
Ever-present threats from information technology: the Cyber-Paranoia and Fear Scale
The access – Platform economy: Creating a network of value
Choosing a Future in the Platform Economy: The Implications and Consequences of Digital Platforms
Reputation Economy
Why is this important?
Platform economy often requires trusting strangers. One mechanism for ensuring that everyone plays nicely is to have a reputation system in place. Customers rate the service provider (e.g. Uber driver or Airbnb apartment) and the service provider in turn rates the customer. The ratings or at least their averages are public, which influences who we trust and how we behave in the platform. Reputation is thus a valuable asset in the platform economy.
Things to keep an eye on
Because reputation is valuable, the mechanisms that affect how it is created, shared and used are important. Can the reputation scores be transferred to other services or used in a way not originally intended? Will reputation economy become a new surveillance and control system, as depicted in dystopian images of future, which do not seem so far off given the failed startup Peeple and the Sesame Credit system in place in China.
Selected articles and websites
The Reputation Economy: Are You Ready?
We’ve stopped trusting institutions and started trusting strangers
The reputation economy and its discontents
China has made obedience to the State a game
Black Mirror Is Inspired by a Real-Life Silicon Valley Disaster
Platform cooperatives
Why is this important?
The current big players in the platform economy operate with the aim to increase shareholder value. Although the business model is different than with most incumbents, the business logic is rather similar. However, platforms support also other forms of organisation and value distribution, for example the cooperative. What if the drivers would own the platform they use for connecting with customers? Herein lies potential impact to the way economic value is distributed.
Things to keep an eye on
Technology is not an obstacle for platform coops to scale, the hurdles lie in social organisation and practices. Trust, fair rules and efficient decision making are key things to solve. Technologies such as blockchain can help here, but it is useful to keep in mind that they are only as good as they are coded to be.
Selected articles and websites
Why Platform Cooperatives Can Be The Answer To A Fairer Sharing Economy
Platform Cooperativism Consortium
Bringing the Platform Co-op “Rebel Cities” Together: An Interview with Trebor Scholz:
Proposal: turn Twitter into a user-owned co-op
Blockchain
Blockchain is a technology that enables distributed permission-less database of transactions, verified by the network. It is mostly known for powering the Bitcoin, but it will have an impact far broader than enabling digital currency.
Why is this important?
The blockchain is said to be a disruption on the scale of the internet itself. The most prominent impact is on the financial sector – blockchain has been claimed to replace 80-90% of the cost of Wall street (Coinfox) and there are several blockchain powered trading and investment platforms available (LTP). However, in addition to banking and financial markets, blockchain is said to disrupt any sector with legacy databases, including healthcare, insurance, real estate, government and voting (VLAB, ShapingTomorrow). Estonia is already looking into using blockchain for health care records (Quartz), and Sony is developing an education platform powered by blockchain (TechCrunch).
One of the key impacts of blockchain is that it provides a technology of trust and eliminates the need for a middleman. This will allow truly distributed systems as well as new functionality such as smart contracts (LTP). Ethereum is one blockchain app platform, which aims to make blockchain based smart contracts easy to make (Medium). MIT has developed a platform called Enigma for secure data sharing, which enables analyzing the data by external applications while keeping the data itself private (BitcoinMagazine).
Things to keep an eye on
Blockchain potential has been noted by the business community, and 55% of firms in the global securities industry are engaged in R&D around it (ChainFinance). However, it is also useful to be aware of the challenges facing blockchain, which have less to do with the technology itself, but more on how it is applied. For example Bitcoin is suffering from problems in scaling and the power in the network falling to just a handful of people (Medium).
In Finland there is growing interest in blockchain, but it is not yet in the everyday vocabulary (Digitalist). It is included in one of the recent TEKES calls and there is a new Facebook group on the subject. ETLA has made a report on the subject last Autumn (ETLA). There are some startups focusing exclusively on blockchain, such as Nordledger, ”a blockchain venture production studio”. The potential of blockchain beyond the financial sector has been recognised also in Finland. One recent interesting initiative is the Thing2Data project, which aims to provide a platform for making everyday object ”smart” by adding unique identifiers to them and utilising blockchain to store and verify the data (TiVi).
Selected articles and websites
Know more about blockchain: overview, technology, application areas and use cases
Satoshi Roundtable: Blockchain is bigger than the Internet
Blockchain-Powered Trading and Investment Platforms
More than Money: Get the gist on bitcoins, blockchains, & smart contracts
Blockchain-Enabled Smart Contracts: Applications and Challenges
Programmable blockchains in context: Ethereum’s future
Global Securities Industry Group Survey Finds 55% of Firms Engaging in Blockchain Tech R&D
The resolution of the Bitcoin experiment