Correcting The Flaw In Market Capitalism

‘The Flaw’ is a small and barely perceptible anomaly in the otherwise valid theory of Market Capitalism. The Flaw is causing a great many problems in the world today and neither Bitcoin nor any existing blockchain application specifically addresses The Flaw. The danger is that the current state of Blockchain art may further conceal The Flaw pushing it deeper into immutability.

The singular purpose of Quantchain is to correct The Flaw using a combination of game theory, quantitative analysis, and Blockchain technology. To do so may alleviate many of the economic challenges that the majority of people face while permanently shifting economic incentives so that The Flaw cannot return.  However, if we continue down the current path, it may become increasingly difficult and costly to make this essential correction in the future.

The Flaw in Market Capitalism

Technological change always precedes economic growth. Economic growth can not precede technological change. We have been going about the process of Globalization as if economic growth precedes technological change … we’ve gotten it backwards 

While this may seem like a trivial semantic exercise, the implications could not be more serious. The belief that money is the cause of innovation rather than the effect of innovation may explain some of the observations we make about economics, business, markets, and life – but not everything.  So we construct an astonishing array of artificial institutions, regulation, and financial instrument all meant to correct this defect of The Flaw – but not The Flaw itself.

This barely perceptible Flaw is tantamount to observing that the Sun revolves around the Earth, when in fact the Earth revolves around the Sun. While there is no apparent visual difference between the two, when society comes to accept this fundamental truth, a new age will be born. By the early 1500’s, all prior ideas from commerce, education, and religion, were being reinvented as a result of the new world view.  Some current ideas will remain, some will become unnecessary – lost to history like a flat Earth.

By illustration:

A wedge can till soil, a lever can lift objects, and the wheel can carry goods to market. These inventions were the cause of commerce, not the effect of commerce. But somewhere along the line, things got reversed.

Our money is created through a process where a borrower commits tomorrow’s ingenuity for today’s economic growth. An entrepreneur must bow before the Venture Capitalist and beg for economic growth under the promise that 10X technological change will follow.  An ICO is still little more than a request for economic growth made against a promise of future technological change.  Blockchain may help decrease the cost of capital, but The Flaw remains.

Dear Blockchain Gods – we’ve been here before.

The computer was supposed to liberate society to a life of leisure – that didn’t happen.   The Internet was supposed to make markets efficient and accessible to everyone – well, not so much.  Social Media was supposed to give everyone an equal voice – nope.  Now, the Blockchain is supposed to eliminate the oppressor class who enslave us in hierarchy – don’t hold your breath.  Little do we know, the actual oppressor is The Flaw.

Blockchain Technology cannot reach full potential until we develop a Blockchain specific to the engine of technological change – the Engineers 

Quantchain: Correcting The Flaw

The objective of Quantchain is to create a worldwide, decentralized, multi-disciplinary network of engineers sharing a decentralized ledger of engineering solutions on an independent  blockchain that generates a token measuring true intrinsic value of human ingenuity.  Over the last 25 years, the Founders of Quantchain have developed novel methods to accomplish this, now adapted to the Blockchain master schedule:

  • Curiosumé – converting the resumé to cryptography.
  • The Percentile Search Engine – a method for determining quantitative outcomes from qualitative input.
  • WIKiD Tools Algorithm – a 5-order differential equation used to measures knowledge, innovation, and wisdom into tangible existence, and
  • The Value Game – a method for manufacturing Social, Creative, and Intellectual Capital.

An Epic Vision, An Epic Opportunity, 

Quantchain is an epic project by any standard. It will take a large network of people to design, build, and deploy. If done correctly, there would be no need to tear down any existing institutions such as finance and insurance – they will simply adapt to a new role. There is no conflict with existing Blockchain applications – they will benefit from a source of intrinsic value. There would be no disruption to the way people currently collaborate in communities – Quantchain will simply measure all of this value into existence.

 

 

2 comments

  1. Thanks. How would correcting this flaw relate to what Ian Bogost wrote in The Atlantic a few months ago?

    “And that’s just America. Imagine how a mature authoritarian state would fare under the rule of blockchain. Is this starting to feel like a Black Mirror episode yet? For Adam Greenfield, the anti-authoritarian left has profoundly misunderstood the corner into which such an ambitious aspiration paints society. “I believe distributed ledger enables the kind of central control they’ve never in their worst nightmares contemplated,” he tells me. The irony would be tragic if it weren’t also so frightening. The invitation to transform distributed-ledger systems into the ultimate tool of corporate and authoritarian control might be too great a temptation for human nature to forgo.

    * * *

    If this sounds familiar, it’s because contemporary culture has been here before. The existing, comparatively modest surveillance and control technologies in use by Google, Facebook, and their ilk—whose impact on governance we now know all too well—proliferated on the assumption that technology could make life better and more efficient. Nobody chose this life, exactly. People adopted technology in sufficient numbers to allow industry, and the culture that follows it, to conclude that the market had decided what was best.”

  2. Thanks for the comment. I believe that The Flaw that we have identified is what enables the consequences that Ian Bogost may be referring to. There is another post on or site called “Warning to Engineers regarding Blockchain Technology” which describes the mathematical justification for correcting The Flaw. The Calculus will set us free, I believe. Failure to reinstate the natural order, will more likely manifest as predicted.

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