Let's cure the economic digestive disorder

We know that because of centralization, there is often a disconnect of causal links between micro and macro level economics in our traditional economy, which has resulted in loss of accountability of policy and other consequences:

1. (a) Policy unaccountability has resulted in reduced welfare for people at the ground / micro level of economy and society – this is the loss of downward causal link.

2. (b) Vitality and innovation at the ground business level will not effectively translate to improved welfare of economy and society at large – this is the loss of upward causal link.

The above outcomes of disconnect between different levels of centralized economy can be explained by the phenomenon of biased optimization – the most intuitive reason for the rise of centralization in our society and economy is the need to conserve resources and energy and optimize their utilization. But where to optimize and which corners to cut? That is a perennial challenge facing humanity for millennia – the resulted outcome led to centralization and the microscopic causal links between individuals and their compounded small clustering being cut off to forge stronger links that benefit centralized power, in the name of optimization of course, but a very biased one nonetheless. Such disconnect has not only resulted in loss of vital information needed for a vibrant economy but also loss of countless individual agencies that come along with those lost causal microscopic economic (and social) links that might have fed back and enhanced the lives of so many people reciprocally among themselves – this effect is called censorship -- centralization suffocates even beyond its own existence, such is its power logic and dynamics. It can be seen as a big economic digestive bowel blockage – the evident symptomatic social consequences are mass frustration among people who can’t help themselves to wonder why as a civilization we have achieved so much yet so little of that achievement and progress have been shared enough among people on the ground level.

That is one of the major whys that necessitates the emergence and development of a decentralized blockchain economy because such a decentralized economy can restore those vital causal links to our economy and society for a just future – and we, the blockchain community, have a duty to see that destiny fulfilled.

Decentralized blockchain systems can build mechanisms (microscopic policies) that directly affect both individual agents and the whole system (the blockchain system depends on each individual agent to do their own algorithmic bidding to be live). This is why, on top of the blockchain system, if we can build a decentralized blockchain economy, it will be much better than centralized economy we have today.

Of course, it is not that easy, actually it is a daunting task to build an alternative economy that’s totally different from our current one. Yes, you can just get rid of the middle man, let the system run by itself, like Bitcoin (even that takes years for someone to figure out) – but as we have shown in Part I of this discussion, nothing comes for free – with decentralization you pay

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the price of the blockchain scalability curse, and with that curse you don’t have much of a truly vibrant independent economy to begin with. Fortunately, nature hinted a way for us, and we can seize that opportunity, now.