1/ Just published a new post on how Highly Decentralized Networks like Bitcoin are driving the Internet’s Magna Carta moment…
Blog post here (& summarized below)
medium.com/@Bitcom21/the-…
Blog post here (& summarized below)
medium.com/@Bitcom21/the-…
2/ Symbolically, the Magna Carta marked a long-standing movement toward broad-based rule-of-law, and people’s rights. Now, highly decentralized networks like Bitcoin are picking up where our political institutions left off.
3/ However, the Magna Carta was top-down: Kings relinquishing some privileges and extending rights to others. Interestingly, highly decentralized networks are constructing these rights in reverse—starting from the ground up with the “every-man”.
4/ Indeed, a profound implication of some highly decentralized networks is the opportunity, at scale, to deliver stronger assurances than even the largest nation-states today—and in doing so to offer a robust, digital foundation for economic growth.
5/ Strong assurances essentially define the rules of economic engagement including, perhaps most importantly, property rights.
6/ This is important because property rights are a foundational component of economic growth and a primary explanatory variable for understanding differences in growth outcomes between jurisdiction.
7/ Why? well-enforced property rights provide incentives for individuals to participate in economic activities, such as investment, innovation and trade, which lead to a more efficient market.
8/ As we move to a world where people increasingly build in the cloud, economic activity will migrate to a digital equivalent: an accessible digital foundation that offers strong assurances and consistently enforces clearly defined (digital) property rights.
9/ The Bitcoin network, for example, offers a self-contained, reliable foundation for property rights in a digital world. It is a rules-based, self-arbitrating court where valid transactions are clearly defined, objectively verifiable, and unerringly enforced.
10/ In this way, the Bitcoin network is a decentralized institution that defines, monitors, and enforces property rights. It is a reliable foundation of strong assurances on top of which we can efficiently architect arbitrary degrees of complexity.
Fin/ Ultimately, highly decentralized networks like Bitcoin offer a fertile foundation for economic growth in the digital world and will likely be important underpinnings of our increasingly digital economy.
