The anarchist blockchain philosophy

What’s an economy and what’s money?

Before understanding the interest behind blockchains, we need to understand a bit what an economy is.

The limits of liberalism

However, giving control of the economy to a large crowd makes it subject to herd behaviors such as the bandwagon effect. If some people start panicking, the rest of the crowd will start panicking as well, which reinforces or even causes crashes. This problem, which doesn’t happen when power is centralized, seems inherent to all decentralized processes that contain feedback loops.

What blockchains bring to the table

A blockchain can be summarized as a public database where any modification to the content of the database must follow a certain set of inviolable rules. The inviolability of the rules comes from the fact that anyone who accesses the database also always verifies that said rules have been properly enforced.

Where the blockchain world is now

If you don’t know much about the blockchain industry but have paid any attention to the Internet is the last two years, you probably have a different idea of blockchains compared to the one described in this article.

Why be pessimistic about a blockchain-based world

Even when ignoring the problem described in the previous section, there are still many reasons to be pessimistic about a blockchain-based society.

Conclusion

I must share that I’m personally not a blockchain ideologist. I wrote this article in order to share the motivation why many people (including me) haven’t left the blockchain industry despite the widespread toxicity. I understand that this ideology exists, and I’m willing to work towards it, and I do because it is interesting, but I strongly suspect that it is a dead end.

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