Fiat currency is on track to get minimized or replaced leading to evolutionized forms of government, according to Dr Chris Kacher.
Modern society runs on databases that are run by TTPs (Trusted Third Parties). TTPs decide, in practice, your rights, from trivial to important such whether your hotel airline reservation is cancelled, if you can only wire a limited amount to your crypto-exchange, you are not allowed to use AirBNB , you are not allowed to vote in the Presidential election.
Centralized TTP consensus is everywhere: corporations, banks, hotels, airlines, restaurants, pension funds, the FBI/CIA/NSA/IRS. FAANG stocks have built a huge installed base of data and data infrastructure that is the main competitive barrier to entry in any modern business.
Antitrust regulators know there is something problematic with FAANG, but can’t find it. And these tech juggernauts who attract the majority of eyeballs have censored individuals that went against their narratives. #trump
TTPs cause micro problems in that they are anti-competitive and macro problems that present existential risks. The macro problem with TTPs and their increased centralization is they are creating growing numbers of chokeholds that can be used to hijack the parts and eventually the whole of society.
Indeed, nation-states worry too much about day to day risks and not enough about existential risks. Day-to-day risks include crime such as money laundering, tax evasion, and terrorism (overplayed by mainstream media thus used as an excuse to pass more rights crippling laws) though many so-called crimes are of the witch hunt variety, ie, victimless. The existential risks , on the other hand, are dictatorships.
Crime and tax evasion in pre-Hitler Germany, pre-Stalin Russia, and pre-Mao China were standards. But such didn’t lead to dictatorships which then often led to war and/or mass genocides.
The world is sleepwalking into increased levels of authoritarianism which are highly centralized systems.
China is not the only country steeped in this ideology as the U.S., UK, and EU are all heading in the same direction: China is attempting global walled garden, U.S. political leadership is not thinking strategically seeing everything through an AML/KYC lens, and the EU is overregulating as always.
Blockchain/NFTs can counter this. BTC solved the Byzantine General’s problem by allowing for decentralized consensus. This has led to permissionless wire transfers, digital gold, and uncensorable payments as a growing number of countries adopt BTC into their ecosystems. But this is just the ice cube on the iceberg .
While centralization in the current system is far more efficient and can scale more quickly than decentralized systems, tech takes time to mature. As decentralization becomes a larger part of the global system, efficiencies will be found, thus the cost savings and new efficiencies and added security born from decentralized platforms will win over centralized systems. Certainly decentralized entry points of P2P file sharing have proven to be as efficient as centralized systems such as iTunes and Spotify. Economics wins the day. People vote with their “pocketbooks”. Memes + NFTs
Memes are the shared myths of the metaverse. As Yuval Harari wrote in his brilliantly insightful book “Sapiens”, myths are what enabled organizations to grow well beyond the 150 “member” maximum. This is how all societal myth-building institutions work and here are a few of the results:
The Republican Party
The Libertarian Party
The Catholic Church
BAYC, squiggles, cryptopunks, cool cats, et al, are all about identity and social organization, with zero membership criteria while being fully global. We have never had a social organizing tool this powerful. NFTs are the same class of solution as BTC, but looser, more abstract, more human. Humans* are non-fungible.™ *Holistically, ofc � 3 Phases of Blockchain
Blockchain has created three phases of product-market fit for crypto: ICOs, DeFi, and NFTs . The former two do not have first amendment protections. AML/KYC may apply. ICOs are often securities. DeFi is likely to morph into CeDeFi as it merges with the existing system.
By contrast, NFTs have full first amendment protection. They are creative expressions. They have converted our online communities for the very first time into an ownership society. We must seize the “memes of production”.
The big advantage to NFTs is they are unique, non-fungible instruments compared to normal crypto. This means certain NFT families such as cryptopunks can choose not to sell to outsiders. While some argue this is creating a new elite, this is a decentralized form of grouping people together as opposed to the centralized form which is control-oriented.This can result in certain groups born of decentralization having more influence over centralized […]
source Crypto AM: Mixing in the Metaverse with Dr Chris Kacher
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