Thursday, October 5, 2017

Freedom and autonomy as Emergent properties.

Libertarians , both left and right, are very much interested in freedom as their name suggests. Unfortunately, their version of freedom describes the ability of the individual to interact (or not) with others at a local level. But freedom is also emergent. It arises from the social structures that we belong and then becomes a property of the individual.


Let us look at an example from physics. The most common example here is that of the ideal gas law. Let us have a number of melecules of gas inside a container.
These molecules are free to move at any direction and because of that their movement is random. From a libertarian point of view, the molecule has complete freedom since it can "choose" (due to randomness) to go wherever it wants.

There are though two properties of the molecule that can not be conceptualized other than if we look at the container itself and the gas as a whole. First of all, the molecule cannot escape the container it is in. Second of all, the amount of collisions with other molecules is determined by the pressure , volume and temperature of the gas inside the container.

Neither the pressure , volume or temperature are properties of the molecule. They describe the macroscopic properties of the gas. But at the same time , they impose on the molecule an emergent notion of freedom which measures the probability of collisions with other molecules.

Now, if we return back to human beings and Society, we will see that emergent properties affect most of our lives.

Milton Friedman was one of the proponents of economic freedom, the ability of the individual to take economic actions, and the reduction of government intervention. Of course, the government never stopped to intervene in favor of the big Corporations but let us look at this theory at face value.

It is true that people can decide to work for someone or not. But the type of work, the wage, the conditions of work and the quality of the output is not decided by them. More importantly, unemployment is an emergent property of Capitalism. Unemployment leads to a reduction of wages that is necessary for profits. Hierarchical structures is also an emergent property of Capitalism derived due to the accumulation of wealth. The existence of the working class and the capitalist one is also an emergent property.

So despite having economic freedom, you are forced to live in poverty, work for low wages or be unemployed. If you work, you will take orders from someone in the hierarchy that is not more qualified than you. And you will be a worker for all your life , though you may believe in the American dream that you can become anything you want.


If we now look at the ideas of left libertarians, we will see that they make the same mistake that right wing ones do. They are talking about voluntary association which is indeed a good thing to have but they do not acknowledge freedom as also being an emergent property.

In this blog post, Heather Marsh discusses the evolution of Democracy and proposes that the future Society should be stigmergic. Stigmergy in general describes the indirect coordination and possible collaboration of many individuals. The main point here is that such a coordination is indirect instead of authoritarian. But as I pointed to her, stigmergy can be a good property to have but it is important to understand that it neither promotes freedom nor autonomy. At the microscopic level, you might think that you are free but at the macroscopic level, you are not.

In other words, left libertarians from a conceptual point of view do not differ from right wing ones, even if the one is pro-capitalist and the other anticapitalist.

Wednesday, October 4, 2017

DAOs that have ICOs are not really DAOs.

BlockChain/Ethereum is said to enable the creation of Decentralized Autonomous Organizations with the use of a technology called smart contracts.

Even though, it is theoretically possible to do so, the creation of a DAO by performing an initial Coin Offering is intrinsically contradictory. If it was truly a DAO, the price of the coins would be zero.

Non-zero value means that there is an asymmetry in power and control and thus the DAO would't be decentralized or autonomous. To understand why this is the case, one needs to translate the decentralization promise of Ethereum / BlockChain to social / economic relations of power and control.

BlockChain's main feature is that it enables the decentralization of the infrastructure and the open access of the data. Any asymmetric power relations that arise from the control of the servers , software and data are made impossible.

The infrastructure is though not the only way that enables asymmetric power relations.

Let me give you an example . The company that created the ripple protocol and network has open sourced its software. At the same time, they created billions of coins. They gave away some for free and the other , they kept to sell.
  One could say that anyone could just take their software and create their own network with their own coins. Unfortunately, this is not possible. First of all, it requires a team of professional programmers that are able to fix the bugs that are to be found. They also provide expertise to organizations that want to join the network. As soon as  Banks and other organizations join the system, it immediately gains value that is not present in the software itself. This is called the network effect. After a while, the value of the system is big enough that is difficult to create another network.
  For this reason, the price of ripple coins is not zero. For the same reason, the network is not decentralized.

When we talk about DAOs, we need to distinguish between the decentralization of power and control and the decentralization of the infrastructure. The blockchain only enables the latter.

Let me make another example to show you that any real DAO would be unable to have an ICO whose price is not zero, let us look at a much easier example.

Let us say that you bought a song at price x. Assuming that you are able to copy the song and give it to anyone you want at zero cost without repercussions, noone else would buy another copy as one would simply get it from you.
The price of the song thus almost immediately becomes zero.

If someone was able to simply copy the code and data that reside in the blockchain and create a copy of the previous DAO, then the price of the coins would be zero as well.

Thus,
if a DAO has an ICO, it is not a DAO.