A Theory of Chaordic Economics: How Artificial Intelligence and Blockchain Transform Businesses, Economies and Societies

Abstract

Dee Hock, the founder of Visa, coined the term 'chaordic' to describe simultaneously chaotic and ordered systems. Based on his reasoning, we introduce the Theory of Chaordic Economics to explain how economic systems are transformed by two disruptive technologies: namely Artificial Intelligence and Blockchain. Artificial intelligence can generate novel output through algorithmic yet rather unpredictable processes. Blockchain creates deterministic results without central authorities and relies on elaborated protocols that prescribe how consensus can be reached within a network of peers. The amalgamation of chaos and order produces chaordic economic systems and can yield hitherto unthinkable economic structures.