The Change In National Governance
Over the centuries we saw "experimentations" with many governance models. Thus far, what was created has not benefitted the majority of humanity. We seem adept at creating tyrannical states. Perhaps that is just a product of human nature. Nevertheless, it is becoming evident, again, that something needs to change.
The present Nation-State idea saw its run last a couple centuries. Since it is the dominant structure, we presume it will always be that way. Of course, when we look back throughout history, we can see how change does occur.
For this reason, it is likely we see the end of the Nation-State by the next turn of the century. Simply put, the governance models we created under this scenario simply do not work for most people. This is something that we are going to change.
What will this evolve into? At this point, it is a complete unknown. However, we do have the mechanism to start the process.
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Digital States
It is impossible to argue the rise of digital states. We are seeing networks develop that are larger and likely more powerful than many governments. When we look at the size and reach of Facebook, Google, and Apple, we can understand how this is so.
The digital world operates at a much quicker pace than the physical one. Governments take a long time to move. Perhaps it is because of their structure or it could be due to the fact it has to operate in this realm. The world of atoms is not very quick, especially compared to the one build on bits.
One of the old sayings in real estate is "they cannot create more land". We know this is a physical phenomenon. In the virtual realm, we can easily do this. In fact, we already see blockchain-based land. Each network or platform has the ability to create more land. So much for that characteristics of physics.
In dealing with a near infinite state that operates at ever increasing speed, the opportunity for experimentation is enormous. When it comes to governance, we now have the ability to innovate and create. Using different Networked-States, the potential exists to test dozens of models in an effort to determine what works. This will probably seep out into the physical realm, being implementing at many government levels.
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Horizontal Rather Than Vertical
There is little doubt most of the organizations in our lives are hierarchical in nature. This is the structure used over many thousands of years. Whether it was the Church, a monarchy, or corporation, we see the same design. It is a top-down approach.
The reason this is the case for two-fold. To start, it does enable control. People at the top have the power which is exerted on the individuals at the lower levels. It is a presumption that those at the upper head had the most experience and knowledge. Of course, there are many examples in history where this is not the case. Nevertheless, it is how we operated.
Another characteristic of this is that it was effective. The old saying about too many cooks is seen here. Decisions are made by a few, often under the guise of representing the masses. Whatever the entity, those entrusted with the responsibility were suppose to do "what is best for the whole". Again, we know this is not the case.
In the physical world, it is very difficult to operate in another manner. Quite simply, due to our forms of communication and interaction, a hierarchical system probably was the only effective means of going forward. Horizontal structures were tried over the years, with limited success.
That could all be changing. The digital world, due to its inherent characteristics, can radically alter everything that takes place in the physical world. What was once a constraint is no longer.
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A World Of Cooperatives
For the first time, we can establish a governance model based upon the idea of cooperatives. This is a structure that did find occasional success over the centuries, almost exclusively when the scope was small. There was always a challenge in scaling. It did not operate well when the operation grew and became spread out.
Unfortunately, personal initiative often sabotaged the cooperative. For example, a fishing area could work well as a cooperative, until someone decides to operate outside the rules. In the physical realm, capturing the nefarious actor is difficult and then bringing them to "justice" even harder. Usually, the reaction is for others to follow, no longer operating in the best interest of the overall. Individual gain takes priority.
How can this be changed? Could the "code is law" really incorporate a level of adherence that did not exist? We know that scaling is not as issue as digital network can become enormous, spanning the entire globe.
Another factor is the fact "digital" cooperatives are voluntary. People opt to use a network when they log on. There is nothing that forces anyone to use Facebook or Twitter. Sure it is difficult to get around many of the silos that hijacked the present version of the Internet. Nevertheless, this is an area that blockchain is looking at addressing.
Each network is free to engage in whatever form of governance that is desired. Thus far, in the early stages of the industry, it appears to be an area that did not receive a great deal of attention. Instead, infrastructure has to be the priority.
That said, there is going to come a time, most likely in the next few years, where people take a serious look at experimentation with governance models. These will be developed and operate totally within the digital realm. However, those that have some success will see parts (if not all) of those models start to drift out into the physical realm.
Will this happen overnight? Of course not. What is going to occur is the most unstable areas are going to continue to struggle. Some of these models might find their way in over the next couple decades. As with anything, then things start to spread.
National leaders are not going to be able to avoid this. The shift in focus, from physical to digital will force their power to wane. We are already seeing more economic activity occurring in the digital realm. That is only going to grow. In fact, each year, we see more of our physical economy shifting, at least in part, to the digital. Here is where networks start to take over.
All of this leads to an eventual change in the governance models we are operating under. For the first time, we have the ability to spend a decade massive experimenting with different systems that address structures that were in place for centuries.
It is going to be a radical shift, something most people are not prepared for. Give it 20 years and we will see how far the process penetrates the "real world".
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This reminds me a lot of the game Civilization where you need to pick what kind of government you want to have. They all had their drawbacks and benefits. It is funny that in that game the pinnacle is usually Democracy but after that nothing new has really been presented. I typically had the most luck with the Republic, but I know that isn't perfect. I know Dan Larimer has been diving deep into governance stuff lately. I started to read his book "More Equal Animals", but I never got around to finishing it. I still have my digital copy of it. Eventually I will circle back to it.
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There is a lot of avenues to pursue. It is good when people start experimenting with things. We have not seeing true innovation when it comes to governance in our lives. This is truly the first opportunity.
The key will be to get many different systems trying different things. This means there will have to be failures.
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That is a good point. We will likely see quite a few failures, but hopefully at least one of them turns out to be the innovation the world needs. Maybe more than one. If crypto has shown us anything it is that there is more than one solution to some problems.
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Failure is a part of success. There is no way to move forward. What is the saying developers use: break things often and break then quickly.
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I had no idea Dan Larimer had written a book. I'm gonna go see if it's available everywhere.
Edit to say I found it and I'm reading it and would like to ask if any of his claims are disputed. Did he coin the term DAO? and were all three of the projects he mentioned actually in a top 5 position at the time as he states?
I know very little about Dan Larimer. Everything I think I've heard about him leads me to believe A) he isn't the kind to blow smoke, and B) he doesn't need to, so if anyone knows of contradicting information I'd like a nudge in that direction before I get too swallowed up in this. It looks brilliant!
I can't really answer your questions except to say that he is brilliant, but also pretty mercurial. From what I understand when his projects start to not go the way he planned, he usually bails and starts something else. It started with Bitshares, then STEEM, next EOS, and now EDEN an the governance stuff he is working on now. I'm glad you were able to find it. I have heard it is worth the read.
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I’m not very far into it yet but if nothing else it’s worth reading for his ability to articulate.
He has a mastery over language I rarely encounter. Very intelligent, but not flamboyantly so. I don’t feel like he’s talking down to anyone or trying to sound intelligent. He just says what he has yo say to get the point across. It can get thick, but it feels like a consequence of the complexity of the topic.
Very well said yourself!
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Thank you! I moonlight as a wordsmith. 😜
Ok... I'm almost halfway through it (117/226) and I'm very impressed with how introspective it is. He exposes a lot of common sense material that is often lost in the environment it resides in. I'm not sure if that makes sense, but I just had to stop now to say his reference to grouping medical insurance by employer struck a chord in me, but I don't really know why yet.
I had to stop reading to decompress. It's a lot to take in...not so much in terms of how much info is presented, but how he encapsulates a topic and meticulously identifies and examines each strand one by one. It's literally like watching someone take a knotted ball of hissing, snapping snakes and gently removing each one and sending it merrily on it's way.
I'm delighted to see a mind like this at work. I bet reading this book levels me up. I feel my experience meter filling. 😁
You are far better than me! I can't even recall how far I got into it. I know it was back in June. My wife and I were camping and I was trying to take it all in. I think our setting was a bit too zen for me to be able to handle that much intellectual stimulus! You have me wanting to get back to it now. I know a lot of people have their misgivings about Dan, but I truly believe he is no joke. It would be cool to see him stick with something more long term, but you can't blame him when these projects he starts with the best of intentions get corrupted and he chooses just to move along.
It's a learning process for him, too, and I admire his ability to take it in and organize it the way he does. He's discussing some very profound observations, across a wide range of material. I'm going ot have to read this a few times before I feel like I'm even capable of actually speaking intelligently about it. This entire comment has felt like an ape puzzling over a can opener...
LoL!
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I don't understand how you can generalize state/governance in such a way that it removes any, absolutely any kind of substance or nuance from the subject of governance. Whats the point to speak about how after Tens of Thousands of years of governance we are faced with an imperative to abandon it, yer only after jettisoning this idea we literally don't change or innovative anything in the conceptual realm of governance, instead there's this nonsensical notion that speed is the ingredient that's that special sauce which will benefit the most.
As for "infinite real space" vs real space, which is dependent on which? How much real space can I fit in unreal space, and how much space, real space, does virtual space require? Its at the same level of absurdity to compare the two with saying that governance is trash, we need faster governance.
Considering the digital realm is expanding and growing at a rate far exceeding the physical, I would say the dependence is waning.
In fact, this was stated from a quantitative perspective.
100 years ago, all of the activity was in "real space" as you call it. Today, that is not he case. 100 years from now, if the trend continues, which it should, a lot less will be operating in the physical realm. So whatever the dependence, the virtual will become even more important going forward.
This is going to generate new governance systems at a speed never seen before. This digital is international, national boundaries mean nothing. So the idea of comparing is not truly absurd.
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Considering the digital realm is expanding and growing at a rate far exceeding the physical, I would say the dependence is waning.
Only one of the two is at risk of becoming obsolete or redundant with one technological or otherwise world wide development, all those electrons aren't digital, what is digital outside the physical remains like all such only an ideation.
There were a lot of things that one excited as atoms that are now in the realm of bits so this statement is not true.
Music use to be on plastic discs. So were video. Not they are streamed. That not only eliminated the discs, it also took out the stores that sold or rented them.
Cryptocurrency and other FinTech products are in the process of eliminating bank branches.
What about wireless? We use to run cables all throughout offices and homes for our internet and communication services. Now, not so much.
This is a trend that is continuing. More of the world of electrons is ending up as bits.
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Electrons don't upload onto the net, they simply enter, follow a path, and exit as heat or light or radio waves etc, they remain as physical as before, and the physical ultimately is what defines the digital, not the other way around. The digital is the physical path itself. That's plenty of space on the digital, just not any measure of actual real space. May the digital have good fresh air.
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Some of your best work, sir.
Thank you @brightstar. Always appreciate your support.
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Very interesting thoughts.
I think one of the biggest impact is that where you’re born has started to become less of a factor in the outcomes of your life.
The crypto world is helping to raise people up out of the effects of broken and corrupt governments - even before those governments are fixed.
The other benefit of crypto/digital is the ability to redeploy ideas that are working quickly.
The process of getting a home in the Philippines for instance at some points took up to 12 years to show proper ownership of a property - in the US it takes about 2 weeks max. In crypto land, as more and more starts to be tokenized, establishing ownership takes seconds - which by itself allows for a better flow of the economy.
Those kind of failings are mostly the result of government corruption or bureaucratic bloat - but in crypto land we can start to fix some of these problems and airdrop solutions into places that need them.
The last 30 years saw so many changes due to the rise of the digital world. Of course, as you show, it was not spread evenly as some places adopted a lot faster than others. That is changing as more countries/people are getting online.
We are now at the point where the next evolution is underway. Whether we capture it in the phrase "Web 3.0" or not, the key is a new iteration of this entire realm is being constructed. That is going to push for the idea of less impact being based upon where you are geographically. We will also likely see less importance places on one's gender, race, or any other physical attribute.
This is going to change a lot more than what took place over the last 30 years, which was substantial.
We will see the shift of more stuff to the "invisible".
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In order for what is described in the article to become a reality, it is necessary to resolve the issue with insane dictatorial leaders. I live in Ukraine, and we have been at war with Russia for 9 years. Russia occupied the Crimea, and unleashed a war on part of the Ukrainian territory - Donbass. The President of Russia declares that there is no such nation as Ukrainians.
When a nation is under the threat of military aggression and genocide, the importance of the functions of the government and the army increases. 9 years ago, I did not understand at all why the state spends a huge part of the budget on the army. Now I understand. If not for the Ukrainian army, a much larger part of the territory of Ukraine would have been occupied.
Therefore, the problem is complex. When we think about weakening the role of governments and increasing the influence of the DAO, we must simultaneously think about how to ensure security and minimize the influence of crazy world leaders like Putin.
With demise of the Nation-State, so goes the demise of the leaders. This is something few seem to agree with at this point but it will become evident over the next couple decades as we see a radical expansion of the digital world (to an ever greater degree than it is now).
Also, who is a worse dictator and more dangerous? Someone like Putin or Zuckerberg? Who has the ability to affect more people?
Finally, at some point, the aggression you speak will not be military in the same regard. That is 20th century. The next generation wars will be cyber in nature. That is why cybersecurity is one of the fastest growing fields.
No longer will military occupation be the way to take over a country. Instead, simply attack it and take over its networks.
Which brings us back to the problem of centralized entities in the world of data which governments are.
You are right, a very detailed discussion.
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Good blog man. The thing is that the society is advancing more and more towards a totalitarian state similar to the Russian Soviet where the freedoms of individuals are quartered in the name of that headless gorgon that the thieves (or politicians as you want to call them) call "the people". It happens a lot here in Latin America and I can say with certainty that it also happens all over the world that those same ones who defend "the people" defend the assassination of individuals in the name of the interests of "the people." The way out is and always will be, freedom, something that is being suppressed more and more. It is necessary to make many articles of this type to make people understand that not only their money is in danger, but also the right to own something and the very value of their individuality.
Seems to be a good way to capture the essence of what they are and do.
We have to keep in mind that a lot is changing. At the core of this is the rise of the digital world. Over the last 30 years, we saw a great deal of the developed world shift online. More economic activity is taking place and networks such as Apple, Google, and Facebook yield tremendous power.
The question is where is the threat of the future. There is certainly a move toward global totalitarianism over the last few years, that we agree upon. Is this because they are desperate or because they are confident they can pull it off? I guess the reason doesnt matter.
What does matter is more people are joining the Internet each day and there is more wealth being generated on there. This is making the digital even more important with each passing year.
The hijacking of the original values of the Internet and the ensuing siloing was a major setback. This is something that we are looking to address.
Keep in mind, governments are not designed to operate in this realm. As power as the US Government is, it cannot stop the illegal download of music.
That is how impotent they are in this realm. We are going to see a continued shift, from the visible to invisible. More is being digitized on a regular basis. That makes it very difficult to suppress, especially with the new tools that are being developed.
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Your posts are always such a pleasure to read and always either teach me something new, or provide me with a new perspective. Thank you for your contributions to the community!
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I am glad they help. Thank you for your support.
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Even if it penetrates the real world to an extent, I still think there are physical constraints. After all, I don't think we are giving up our human bodies. So in this case, where in the world would people of a network state live? Do they live far apart from each other in all parts of the world or do they move to a location to be together?
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It isnt that we replace our human bodies. Instead, we are replacing the governance model we operate under. Why do we have a nation-state today as opposed to a feudal system or a monarchy. The answer is we decided to change. Of course that took centuries and we even still have monarchies although they dont have much power.
Hence, we are going to be able to experiment in the virtual world and push that out to the real world. As nation-states disappear, since there will be no need for them, perhaps they get implemented in our local governance systems.
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Wasn't the nation-state set up in part to bring wealth and resources to the heart of the nation-state? In a physical world, armies would be used to conquer, occupy, and ship wealth and resources back home. Over time, when it became more desirable to achieve the same goals via commerce and trade, the need for armies lessened (just not enough).
If a "state" can acquire wealth and resources using non-violent means, it will. A networked state is a move in that direction.
Project things further:
This can be done right now in the physical world, but it is definitely doable in a digital world (Metaverse or not).
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Like-minded people moving to be near each other would be ideal, but in the case of a network state that would not be necessary. People in a network state live where they live now, regardless of location.
It's already that way with established religions. Some area or region is recognized as the "center of the faith," but its adherents span the globe: Muslims in Norway and Indonesia, Christians in Congo and Japan, Jews in Argentina and (until recently, anyway) Afghnaistan.
If you're into sports, it's the same thing. Red Sox Nation, Yankees Universe, and similar terms for sports across the globe.
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Once you are getting paid, politics will inevitably enter the picture. Blockchain is inevitably the next arena for governance structures etc. The real beauty is that if the code is good and takes into account, human corruption can basically be written out of the code. That will be a continuous work in progress, but certainly looks better than what we have going on right now.
If, in 5 years (as is my plan), I am living off of the blockchain completely, this is far more important for my political involvement than whatever my nation's governement is up to. To take matters even further... if I am being supported and sustained by a blockchain... aside from snow-plows and infrastructure, what good is the nation state to me? Should I be taxed when I am no longer involved in their economy? Interesting times ahead.
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Interesting and intriguing write up I must confess. I honestly cannot wait for an extensive total change to the model of governance. A model where there won’t be a gap between the so called experienced individuals at the top and the masses.
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Really like the way you used the 1st law of real estate "They Can't Create More Land" but that is exactly what games like Dcity and Splinterlands have done created real estate that did not previously exist.
That being said do you think that all Nfts could be considered Digital Real Estate?
Thinking about the shift from real to digital is enlightening in a way but governance is the hardest part in this entire shift.
I can see cooperatives emerging again as DAOs but we are all witnesses of very loose governance in many if not all autonomous organizations. Most of the changes and proposals come from the founders and largest holders while those below show little interest. Only a matter of time before large holders start organizing in groups on mass and making changes that benefit them.
Another reason for me to believe DAOs will have a lot of trouble with scaling with the current governance models.
On that note, do you think DPOS will be the preferred choice in small and medium organizations? I just find it simpler to delegate your vote to the ones you personally trust and it's also a governance model most of us are used to IRL.
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