Distributed Consensus: A Work In Progress
Written by J. Redman
Bitcoin is meant to change every stratosphere we know of. The financial sector is just the beginning.
What if we came up with an idea to change the scope of political/government power by way of a complete individual autonomous system guided by a public ledger? As Jeffrey Tucker stated a few months ago, “the existence of the blockchain on a distributed network ultimately means the death of the Nation State.” Let’s see what this entails shall we?
Distributed consensus is analogous to biological genetic process. The bitcoin network has bio-chemical-mechanical characteristics, much like organic molecules or a cellular sort of machinery whose job is to tear down and assemble molecules and replicate everywhere.
As long as they are nourished with machinery and fed with incoming transactions, the miners/agents assemble transactions into symmetrically replicated structures representing the state of affairs until the end of time like DNA produces proteins.
The new idea is, abstractly, a distributed state consensus process – the process calculates, evaluates and records an agreement replicated among the agents in society. Every person in the globe represents individual nodes. Algorithms measure our variations.
Agents produce a broadly replicated record of the state of affairs, and they all agree on the facts resolved on the record. In the bitcoin system the record is a ledger that contains facts and evaluations of those facts.
This is a self organizing system that is permitted to thrive because it reduces the energy in the system due to lower cost connections among people conducting transactions.
Literally everyone can be their own autonomous state and even be represented ‘voluntarily’ by an organization, or many organizations. Imagine the bitcoin network operating, right now around the world: miners building data structures, traders gaming the markets, merchants and consumers, or just anyone exchanging value and ownership and in the background, developers building software, etc. Literally every facet of society can be covered. Property contracts, deals with your neighbors, trusts, wills, dispute resolution, restitution cases, basically: everything.
What is new is that money, or more broadly resource statefulness, is exchanged without middlemen. Instead the machinery to execute a market transaction is simply a program abiding by a protocol. The machinery is a new efficiency for transfer of stateful value and ownership. (Note that credit transactions are no longer inherently tied to the process.)
This market function has bifurcated or split off and become its own module in the social system. Banks work with both debit and credit, and they record statefulness in a debit/credit ledger. But the debit part doesn’t need the banks. And so the bitcoin network pre-empts that market function, leaving the credit function to the banks, essentially re-modularizing the money system. And probably, eventually the credit function will also be pre-empted from the banking system, political system.
The system becomes a distributed consensus of individual human action one node at a time recorded on a never-ending public ledger. Every point of infrastructure can be covered. This surely sounds beautiful to me.
There are those so-called “libertarians” that would love to ignite a violent revolution. Not remembering history in the least or the lessons of the past. That every violent revolution has led to what we have today: tyranny. They even scoff at the idea that Bitcoin can’t help to end the state. I laugh at you. Not only will Bitcoin end the nation-state but it will change the consensus of every paradigm in the globe. Why? Because it represents every individual, one node at a time. Human Action, baby! Read it. It’s a book by a guy named Mises.
“Economic freedom is the greatest tool of liberation.” ~ Daniel Hawkins