Blockchain and Democracy

The transformation that blockchain brings to the economy can be likened to moving from monarchy to the democracy in the political world. In both cases, the main purpose is to “decentralize” the power; in both cases, we prefer to trust the majority vote rather than a person’s vote, albeit a great and trusted one. This transformation is what making this rapid growth in blockchain market, and the key difference between current monetary system and blockchain based one.

The most important advantage of the blockchain-based monetary system over the current monetary system is the growth of reliance on the rules rather than on the individual. To better understand how important and valuable a rule based monetary system is, we can take a look at Fichte ideas mentioned in “Foundations of Natural Right”:

The most immediate task of the state is to settle disputes among the citizens concerning property. The more simple, clear, and comprehensive the law is, and the more certain its infallible execution, the less frequent such disputes about property will be, because everyone will be able to know rather precisely what does and does not belong to him, and will hardly undertake what he can see will be a futile attempt to appropriate another’s property… If these laws were enforced for only half a century, the concept of crime would disappear from the consciousness of the happy People who lived under them.

In fact, there is an important difference between a movement towards blockchain in economics and moving towards democracy in the political system, which makes the blockchain revolution a much more interesting step. In the political governance of a country, only one rule is applicable and this law is passed through the vote of the majority of people for it; however, in financial governance, the blockchain technology can easily eliminate the geographical constraints in governance and allow minorities to follow the law they believe in. Blockchain allows us to implement different currencies with different rules, and each person, regardless of the place in which he lives, chooses the currency to save value which is more trustworthy according to its rules.

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This is our 2nd story from the series of posts discussing how Ethereum can solve a large number of today monetary system problems, and as a newly discovered Freedomland could be a much better place to live in than our today states. Here is first post:

Blockchain After the Gold Rush

How Ethereum Smart Contracts Can Replace Central Banks!

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Blockchain and Democracy was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.