Thread by @eriktorenberg

notes from @jwmares talk:

capitalism traditionally struggles to solve problems that

1) create neg. externalities (e.g hard to price oil spill)
2) tragedy of commons (e.g public park trash)

e.g

-climate change
-public health
-education
-infrastructure

capitalism is good at solving problems where value is

a) narrowly created
b) easily captured
c) over a short and defined time horizon

Ways to solve problems:

broad value, easily captured — multinational corporations
narrow value, easily captured — consultants/individuals
narrow value, difficult captured — charity / gov’t (e.g research, foreign aid)
broad value, difficult capture — ??? (crypto networks ;-))

How crypto solves these problems

1) legible (implementing price mechanisms in areas that don’t have them today)

- income share agreements
- pay to move instruments
- pay for discrete units of education

2) shared network incentives + value capture

3) no reliance on 3rd parties