We’ve all been frustrated dealing with “interactive voice response systems,” computerized answering services. In the same way, how many people actually find the instructions for using the software helpful or understandable? I think the problem is getting worse. Male dominance, but that’s a different kind of challenge.
The human nature exhibited by individuals is by definition intentional. We all have conflicting values within us that sometimes lead to unpredictable behavior. Blockchain is a specific technology invented to circumvent some of the inefficiencies and vulnerabilities of human systems, especially manual systems, for transactions between individuals, especially financial transactions.
The cryptocurrency Bitcoin is just the first logical use case for this technology. The most basic concept is that transactions between two people can be done safely and reliably without being under centralized control such as a bank through an automated process called a “smart contract”. . Identity and account verification.
Further, the concept of a “decentralized autonomous organization (DAO)” is one in which members of an organization can interact and govern their own actions without a centralized governance structure. In DAO, guidelines and requirements are encoded into blockchain software and only adopted after all members have had the opportunity to provide their input. Instructions within the blockchain can be executed automatically without the need for human intervention. Blockchain records are transparent. This means that all participants can see all data, so in theory everyone can be held accountable. Also, because it is not centralized, records are immutable because multiple copies of records are stored in a network of very large numbers of nodes, each of which maintains a real-time synchronized database. Errors can be corrected with new data entries, but corrections do not remove the original error from the record.
DAOs are designed to work like a democracy, so all members have a say in how the organization works, and actions are determined by majority vote. How does this structure work in practice? First question: What is the relationship between member votes and other indicators of participation? For example, should every member simply get one vote? , should the number of votes reflect the level of “ownership” of tokens that represent activity or participation in the operation of the network? Should it be as important as major node voting? What is “fair” and how can it be enforced?
All of these feel like variations on the model of social organization around the themes of ‘freedom’ and ‘democracy’.
The existing political system in the United States continually examines all kinds of injustices and “unfairness” that are already entrenched in our culture and legal system. No matter which political party is in power or what level of government, leaders must persuade voters and the public that their policy vision is “correct” and should be supported. I will try That is what is expected, and leaders can make the rules because of their position in the political system. DAOs include management Based on a hierarchy, members are issued tokens that act like voting rights, representing their voice in the issues being debated. As with any group of humans, there are “natural leaders” who have a much greater influence. This also applies to his DAO, but these leaders can only wield “soft power”. In other words, you cannot control the actions of other leaders.
How can conflicts within a DAO be resolved? If a particular member or group of people decides to become very stubborn in maintaining an uncompromising position, some discussions will go on endlessly. Why not? Does this model of governance assume there is a desire for logical and rational discussion to resolve disagreements? I mean, if you believe in being respectful, caring, and kind, it might be possible. On the other hand, if your view of humanity is not philanthropic, you may consider this kind of process idealistic and unrealistic. Decision making It can be very slow.
Currently, there are already thousands of DAOs in operation, mainly in the decentralized finance sector. This is a natural growth of interest in cryptocurrencies such as Bitcoin and Ethereum, the underlying blockchain technology for smart contracts written in software. Smart contracts for financial transactions have been proven to work and are embedded in the operations of major international banks and financial institutions. Of course, in that context, these transactions are still under centralized control and control. The rules governing proper behavior in financial transactions are relatively simple and can obviously be reduced to lines of software code.
However, there is a fundamental problem with enforcing interrupted transactions. For example, if I borrowed from you and pledged part of my cryptocurrency (e.g. Ethereum) as collateral. Now it’s been 3 months and I haven’t paid the interest on the loan. Let’s say a smart contract is written such that a pre-determined amount I put in escrow as collateral plus a penalty is automatically withdrawn after default. What if the value of your collateral drops so much that you only get 50% of what you originally expected? Volatility is a big challenge for blockchain, at least for the time being.
We have a “legal infrastructure” consisting of all the basic regulatory frameworks and hierarchies of principles and, importantly, the laws that we can sue, including human judges and juries. We expect fairness to be built into the system. The concept of the rule of law means that after all appeals have been exhausted, their decisions must be accepted as equally binding on all parties. At the same time, the basic principles of democracy are being tested and reexamined. The idea of separating power between executive, legislative, and judicial branches, each with equal but distinct powers, is absolutely fundamental. How can this system of “checks and balances” be recreated in software? Can you include “checks and balances”?
Balance is a human idea that reflects human nature and social values. Each individual’s concept of “acceptable balance” may differ from others. DAOs are a great experiment, and blockchain and cryptocurrencies are fascinating contexts and playgrounds. At this point, it’s easy to become an “industry commentator” and declare the strengths of an idea or criticize its weaknesses. The most fascinating thing is that DAO is a new perspective for understanding human nature.