The Demise Of The Ultimate Gatekeepers: Governments

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(Edited)

The Nation-State is rapidly moving out of its element. This is a point I made on a few occasions. We are seeing the world altered due to technology, a shift that is making this form of governance obsolete.

Over the last few decades, we saw how impotent this is becoming. With each new iteration, whether it be globalization, the Internet, or an international crisis, we see how ill-equipped the Nation-State is to deal with what arises.

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In our personal lives, governments serve as the ultimate gate keepers. They are the ones who decide what we can participate in.

Blockchain, of course, changes this.

Permissioned States

Governments are nothing more than permissioned states. Engagement with them means that we are granted access as they determine. They operate in a manner providing permission to people's lives through their rules, regulations, and laws.

Few take the time to truly consider how much the governments act as gatekeepers for all of us. Most of our lives are permissioned. Consider for a second all the things we need to register or get approved before we can do something.

This is not only at the direct level. Ponder how companies require permission in some for to provide services to people. For example, if you want to give an entity some money for a return, in most parts of the United States, that institution requires a banking license. Without that, you are not allowed to engage with that institution.

Probably the greatest boost in this area came with the advent of broadcast television. In most countries, broadcasters are required to get permission from the government to be on air. They need a license for the frequency and then have to adhere to the rules set down. Break those rules and adverse consequences will occur.

Another thing many are not willing to admit but this gives the government authority over what people see. Whatever is being broadcast is constantly monitored by the government agencies. If there is something that is unacceptable, it gets removed.

Every industry deals with this. Any engagement with an entity is done so only with the approval of government.

Hence we see how much of our lives are permissioned.

The Rise Of The Corporation

The corporation certainly changed a lot of things, especially multi-national ones. No longer was a company under the rule of one Nation-State. Instead, it had to deal with a multitude of them. As globalization took place, this meant that these entities were dealing with a host of regulations from many different governments.

While this caused a problem for many decades, since the corporations were still subservient to the governments, we saw a switch in the past couple decades. The rise of technology companies have altered the dynamic with many governments.

In short, these institutions have so much power they are actually becoming equals. This is something that governments are resisting yet they do not seem to be making much progress. Their ability to control the likes of Facebook and Google are rather limited.

The introduction of the Internet provided a sea of freedom. While this was initially in the hands of the users, it was quickly usurped by the corporations taking over. Thus, we have a forum which does not provide users much freedom but grants it exclusively to the corporations. For them, the Internet is a wonderful venue since governments cannot really affect them.

Suddenly, the governments have some competition when it comes to being the gatekeepers in people's lives. Of course, this does not help the average person since there is simply another entity exerting control.

Blockchain To The Rescue

One of the most impactful aspects to the introduction of Bitcoin is the ability to operate without permission. With the creation of permissionless blockchains, a new world is starting to open up.

Here again, we see issues for governments. Many still feel that governments are going to be able to withstand the onslaught that is going to take place but it is very unlikely. In short, governments are not designed to deal with the problems they are going to encounter.

With blockchain, gatekeepers are obliterated. If something is permissionless, that means anyone is free to utilize it. We also see how no single person or entity is in control. Consider how much that changes the entire system of interaction.

Over the next decade, we are going to see more transactions moving to blockchain. This means less is operating within the system. As tokenization take holds, the "registering" process is usurped. Simply posting on a blockchain provides a clear path of ownership/transfer of assets. There is no need for government in this equation.

We see the battle taking place right now. Governments, and their associated agencies, are trying to maintain control of this arena. They want to bring all transactions under their regulation and control. This goes against the very nature of the technology. Blockchain is designed to operate without government permission.

Let us look at setting up a blockchain-based business. There are no occupational licenses required since it is a digital entity. To transact, obviously some type of financial arrangements are required. Of course, to get a digital wallet on a permissionless blockchain is simple and has no approval process. Also, people are free to transfer assets to whomever is desired without government oversight. Through the online process, there are no employment forms to fill out or withholding to deal with. If there is a fee (tax), it is done at the time of transaction, eliminating the need to file returns.

In short, one simply can set up and get operating. Nobody can deny participation or operation.

This obviously is a threat to governments.

Starving The Beast

The hunt for taxes is something every government engages upon. It is one of their primary focuses. No matter what level, governments always seek to squeeze more money out of the population. It is a beast that has to be fed.

Unfortunately, over time, the appetite grows.

When it comes to taxation, once you step passed the political and ideological stupidity, we realize that corporations have a sweet deal. Think back to them having to deal with many different governments. There is one advantage to that: taxation.

Corporations, for decades, we able to benefit from tax havens. Since they are global in nature, they can opt for the regulations they operate under. They were able to shift massive parts of their businesses to those areas that provided the best tax rates.

One thing they were not able to overcome is the fact that they were hit based upon where they were headquartered. Having a physical presence in a particular country meant denial of being there is impossible. Yet this is changing as companies opt not to have a physical presence.

While all this is good for corporations, who tend to pay little to no tax, individuals are not so lucky. They are not multi-national but physically located somewhere under the control of the Nation-State. It is fairly easy to see where one is living and working. This is what establishes the tax basis that one operates under.

Simply opting for another set of tax regulations elsewhere that are more favorable to the individual is not open to most. It is why individuals always end up bearing the brunt of the tax burden (especially the middle class since the wealthy exempt themselves).

Here again we see blockchain coming to the rescue. At present, we might not have the most ideal solution but it is coming.

One of the problems that governments have with these permissionless systems is they are also semi-anonymous. People do not have to provide information, hence they can be whomever they want to be. Of course, this is only "semi" since the on and off ramps are fully under government control (licensed) and end up providing an identification which can be followed.

That will not be the case in the future. There will be development that occurs which makes it impossible to follow what people do. A larger layer of privacy is coming, something governments will fight. However, like all things technological, they will be impotent against it.

Which means they are going to have a tougher time collecting their precious tax dollars. We can already see the nightmare ahead of them and it will only get worse. Plus, in a networked world, people are free to opt for whatever regulations they operate under. This is going to become the norm, with the idea of being subject to rules based upon physical location becoming absurd.

Naturally, all of this is hard to fathom since we all operated under this system since the day we were born. However, blockchain destroys gatekeepers and governments are the epitome of this.

Therefore, it is only logical that they will meet their demise as a result of this. We know it is only a matter of time as this technology spreads.


For further reading on this subject:

How Blockchain And Cryptocurrency Will End The Nation-State


If you found this article informative, please give an upvote and rehive.

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52 comments
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But BEWARE, these "ultimate gatekeepers" still have some power, amd will be dangerous for a long time...

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Yes they will although things are moving quickly out of the reach.

They simply cannot keep up with technological development. At this point, they are basically powerless against mega-tech. They can grandstand like they are going to do something but, in the end, Facebook and the likes simply extends too far.

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People def. need to stick together and throttle in FB and the like. Ultimately we can vote with our feet, and of course thrive in the hive 👍

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Someone has just published a meta-analysis of this post above in regards to gatekeepers. It's heavy on philosophical undertaking but mind you, it's worth reading with an open mind

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Their game was already lost. As soon as people diversified and dex's came up, there was massive distribution and finally they can't censor or tac code!

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pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 76 of my contest just started...you can now check the winners of the previous week!
!BEER
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Blockchain is the beast we all need to fight the oppressors. They cannot interfere with the system but choose to become a part of it on individual levels. Governments are anyways controlled by big corps and large banks. They want people to be poor while the rich are getting richer.

Blockchain opens the floodgates of opportunities. And it doesn't discriminate.

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Cryptocurrency and blockchain open the doors to take a serious bite out of the banking system. This is what technology does. FinTech served as a powerful weapon against the banking system.

This is going to be the same. The difference is they are going to have a tough time standing up against what is coming.

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(Edited)

The current gatekeepers are dead men walking. Its just gonna take them a long time to accept it.

It's also gonna take all of the regular people a while to accept that they no longer have gatekeepers. A fair number of all folks don't feel comfortable without a gatekeeper. It's just human nature. The current gatekeepers are on borrowed time though. Make no mistake.

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The current gatekeepers are dead men walking. Its just gonna take them a long time to accept it.

I agree. We see it all the time. Right now we call them zombie corporations because they are the ones that are alive and dead at the same time.

You are right, many want gatekeepers because there is comfort with it. We are going to have to help people to adjust to taking responsibility.

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this change will be a little painful, but our children may see these results.

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The younger generation will not have the pain because they will not resist the change. It is the older ones that are averse to change, especially technology.

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Government has one choice. Shut down the internet.

!BBH

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Too many people say this like it is an actual option.

It would be kinda like saying: the government has but one choice: kill everyone. You can't rule over people if you kill them all, just like you can't shut down the internet without ushering in a new Dark Age where everyone loses (including the people in charge).

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That was my point 😉

!BBH

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Nice, just making sure.
You'd be surprised how many people think this is an actual option.

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Lol. Ya, I forget that. Once on the internet it is true. Gotta watch my typing ;) thanks for looking out for me.

!BBH

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Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

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Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

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Very true.

Forget the people, look at the companies that operate (and profit) from operations. The backlash by major corporations would be immense.

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The world is changing and government needs to change. Find a way to pay for things like infrastructure, etc, with the new global crypto world that is forth coming.

!BBH

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Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

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Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

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The rise of the crypto city-state is a big part of this future.

One of the problems that governments have with these permissionless systems is they are also semi-autonomous.

I would say crypto is fully autonomous,
but this looks like a spelling error: anonymous.

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The control they have for now is that we still principally operate on fiat. As more and more business moves to blockchain, it will less enforceable. We will be able to bypass exchanges.

If I can get paid in crypto, save in crypto, and spend in crypto, all I need is a wallet. All the other controls are moot. Although, it will likely be easier to control corporations as they will have our customer information readily available to deliver product or service. I could see corporations further becoming enforcement arms for the government.

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The fiat is only part of the equation. They are a gatekeeper in all aspect of our lives.

Even if they accepted crypto for, say, you car registration, they are still in control of whether your car is on the road. Or if you can occupy an office. Or if you can practice a particular trade.

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Blockchain To The Rescue
One of the most impactful aspects to the introduction of Bitcoin is the ability to operate without permission.

The government’s greatest weakness, it’s obvious they wish this idea was never created

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...it’s obvious they wish this idea was never created

I am not sure they are to that point yet. Right now, they still believe they can control it.

We are going to see a major surprise when the development gets such that it is fully outside their reach.

This will be much bigger than the shadow banking system and the tentacles extend far wider.

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When we get to that level I will boldly sit down and laugh while telling my kids tales of how the government tried their best to control or shut it down.

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(Edited)

In CHina the government is fighting Tencent , Alibaba and JD and their rich CEO's. In Australia Google won of the Government who were balcked out themselves after complaining about Google.

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There are attempts to try to reign them in. The challenge is that mega-tech is also going to be under attack from decentralization. However, in the meantime, we are going to see the earnings of those companies still increasing, along with their power.

Each time they pass a law or win something against a major company, the company just reboots and is more powerful a year later.

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Hi, I'm new in hive can I get your 100% upvote

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You will not have any success on Hive asking for upvotes. Participate and seek to add something to the ecosystem.

If you do that consistently, over time, you will start to get a following.

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Exactly what @taskmaster4450le said, and also think about everything you do here as being visible by everyone in the world… so whenever you want to say something thinking it will not be seen… it is being seen, remember. And forever!

Also, another way to learn here is to read other’s comments and learn from the message (not just reply, that’s the least important part). If you then have something you think it would add value or is just your opinion, then I would highly encourage your reply.

Remember, we are humans.

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I was just going through your post and it was really wonderful written. government is obviously playing the role of gatekeeping for us whatever the nation we are living in. Ha ha. Nice word chosen. They are always in focusing on implementing rules and regulation but in the modern world where internet and globalisation is available here so their existence are being obsoleted day by day. Rise of cooperation and other in issues related to the blockchain have been explain nicely in this post and thank you very much for this wonderful elaborative article

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If me and you can't write our rules down and force them onto others, why do we sit idly by while others do it to us?

Rule by force is the disease, who and how are symptoms.

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When we are faced with something new there is always the surprise factor and then as we get used to it, the pros and cons emerge, unfortunately technology does not exempt itself from this.

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I was mentioning this precise subject in a conversation. The nation-state system is doomed

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El problema de nosotros los seres humanos es que siempre vemos el árbol. Nada es una total panacea. Yo estoy en contra del Estado-Nación, por definición es antidemocrático, pero cuidado hay que garantizar no solo libertad y privacidad sino democracia dentro de las nuevas tecnologías. En todas partes hay cúpulas que manejan el poder y el blockchain no escapa de esta realidad.

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Great article, I totally agree with your point of view although taxes must be paid to have an essential service, the problem is that the quality of services is often poor, and the money goes into the pockets of the pigs!

However, I would add that cryptocurrencies are also a threat because they take away the power over monetary policy, which has effectively stolen on the sly, the money of many savers (and their pensions) in the form of inflation.

In my opinion there is however a very high risk in the deregulated and anonymous use of cryptocurrencies and that is that they risk ending up mainly in the hands of financial institutions, the same financial institutions responsible for financial crises and loan shark rates on home loans, that is, that our lives will go from being controlled and regulated by democratically elected governments (more or less, we know they are still controlled by a certain elite) to being controlled by a group of mega-rich people able to control market prices, or even worse able to impose their vision on project developments.

I've been thinking about this for a long time, and I can't get this out of my head, is this really a good thing that's happening?

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I would say that platforms like Facebook are pretty much in cahoots with government. Whether it's a "You scratch my back I scratch yours" I don't know for sure, but when our police have now been given clearance to hack your social media account and post on it and the platform owners don't protest it...let's just say that the most powerful corporations are the gatekeepers and the government the implementers.

I struggle to see how blockchain technology can avoid beng countered by governments, especially when they can control what currency businesses can accept. At any point they can make crypto illegal and with everything beng traceable it would only be a matter of time before they start tracking where payments are heading. They would just continue to try to control the people they can they way they always have. I'd love for my eyes to be opened to other possibilities, however.

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What if one has to think to become a criminal some day?

It is always possible that one has to flee or evade from here to there for whatever reason. Insofar as there are payment methods that are accepted by many people, even if one is completely without an electronic device, something like going underground or fleeing is possible.

It becomes difficult when such alternatives are not available. Then it seems to me that one is dependent, for better or worse, on means that one cannot wear on one's own body without these means being able to betray one at the same time. Just a thought. My parents were refugees and prisoners, so it sometimes occurs to me that I could possibly have a similar fate. What could replace cash?

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