We all heard the arguments about the -isms. Capitalism. Socialism. Marxism. Communism. What is the best system?
The answer is that it does not matter.
Our systems are dynamic and evolving. They do not wait around for labels. Instead, they chug along based upon the activities of billions of participants, continually changing.
These are complex entities, far beyond the comprehension of most. Even those who know a great deal only see a small piece of the puzzle. In this way, we could state that it is all passed human control.
The evolution comes as a result of human innovation. We excel at the law of unintended consequences. Results are often haphazard. This is not always negative. After all, the story goes that Post-It Notes were the result of trying to find a super strong adhesive.
As we remake the world through cryptocurrency, we are seeing a new -ism start to step forward.
Source
Cooperativism
Digital assets are changing everything. We are seeing existing systems that did not gain much traction starting to emerge due to the digital realm. One area that is receiving renewed attention, without being noticed, is the cooperative.
Over the centuries, these took on many forms. The basic essence is the organization existed for the benefit of its members. Ownership and participation were interwoven. They account for billions of dollars in value yet are still a drop in the bucket compared to the rest of the financial and economic system.
The drawback, traditionally, was scaling. Cooperatives operate well with few people located in close proximity to each other. When they grew in size, they tended to fail. Distance also was fatal since individual priorities could override the desires for the entity as a whole.
Digitization changes all of this. As we know, communication is now near-instant online. We can see how digital cooperatives are forming and can easily scale. Something like Hive is a prime example of how the new model of cooperatives is unfolding.
We often use the world "community". There is a lot of merit to this yet it is something bigger. We are not just seeing the ability to bring people together. With these new developments, new economies are forming. There is a monetary and financial component. At the same time, ownership rights are being rewritten as smart contracts evolve.
Therefore, we are looking at a new economic model forming that will only grow in value over the next few decades.
Decentralized Autonomous Organizations (DAOs)
The corporation is the basic business structure for capitalism. For the last 200 years, it helped to foster the greatest growth period in human history. While there certainly are some drawbacks to what corporations do, there is no denying the impact on economic progress.
We are seeing a new business structure emerge, the DAO. This is helping to lead us into the era of cooperativism.
A DAO is nothing more than an extension of the cooperative idea. It brings together people based around a particular subject or topic. Depending upon the goals, each person is assigned stake in the entity. Governance can be applied, with real-time voting possible. The stakeholders are the central part to the entire model.
Here we see how roles are blurred. With the corporation, we have shareholders, employees, consumers (users), and external stakeholders. While many can overlap, the reality is few do. Employees might have some shares in the corporation but it is usually a small amount compared to Wall Street investment funds. This causes a breakdown in the different interests.
DAOs align the interests of the different parties. One of the keys is how this is voluntary. Nothing is forced upon people. They are free to come and go as seen fit.
For example, ConstitutionDAO was a project that sought to buy an original copy of the United States Constitution. People from all over the world provided funding to achieve this end. Ultimately, the bid failed but it does show the potential. Nobody was required to get involved. Also, the tokens could have been sold, causing exit from the cooperative.
DAOs are in their early stages and will go through many evolutions over the next few years. As stated, evolution in the digital realm results from innovation. With more people starting to experiment with them, things will move rather quickly.
Hive As A Cooperative
Few look at Hive as a cooperative yet that is exactly what it is. Like anything else, nobody is forced to participate. It is complete voluntary.
The stakeholders are the ones in charge of the entity. Through a governance model, each person has a say in the direction taken. Individuals and teams are working on different projects, each tying into something that requires no permission.
The who understand this can take the ownership mindset. Stakeholders can look at Hive as their own because that is exactly what it is. Here is where traditional entities are going to run into trouble.
One of the key factors is the scalability of a system like this. There are people from all over the world involved. Most do not know each other and will likely never meet. However, they are interconnected and dependent to a degree. Here is where self interest is tapered. Blockchain establishes rules which everyone has to live by. This puts the needs of the cooperative ahead of individual perspectives.
Code Is Law is the mantra.
Hive can be viewed as an economy, community, or business entity. This is the essence of cooperativism. There is no separation in this regard.
Another way of looking at this is community-based economics.
Of course, this can keep being broken down into smaller units, all maintaining the same characteristics. This is going to be the foundation for the next economic model that emerges.
We are truly watching a new -ism forming right before our eyes. In fact, we are all part of it.
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It is an interesting subject. Cryptocurrencies seems as the maximum representation os free market capitalism, the ideal system without State regulation... However, Hive it's something else, it involves a community of users, of humans.
Some time ago I wrote a post comparing Hive with Proudhon's ideas of a mutualist anarchy. Mutualism involves cooperatives, autonomous communitys, etc. Proudhon talks about a "bank of the people", maybe a little bit similar to DAOs.
https://peakd.com/hive-167922/@acont/hive-and-proudhon-anarquia-mutualista-mutualist-anarchy
I kind of fall into - "Survivalism", which is something like "Whatever it takes to whatever keeps you alive". I think the systems often force us to be in that zone. With the recession all over our heads we can see that future is definitely about adopting to the changes in the market and life in general. I think Hive kind of gives that confidence as it stays here without running away or crashing like LUNA. Crypto has surely pushed people to adaption lot more than last 20 years.
Each day that Hive is running, we have a long track record. The fact that it keeps going without issue while being outside the reach of most governments, this makes it hard to target.
That is going to be at a premium in the future.
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any of these 4 isms could lead us to evolution as a society but as long as we know how far to go so as not to suffer setbacks and it is correct, Cryptocurrencies could soon create a new world order regarding economies.
I think that cooperativism is the only way in which humanity has achieved the most extravagant goals it has set for itself. Even the internet, space travel and the greatest achievements have always been reached thanks to the social cooperation that has come about thanks to the freedom that man has achieved for himself during his history. Now if the means to achieve this cooperation has undoubtedly been to achieve some particular benefit through the acquisition of wealth, the whole society always benefits thanks to the invention of those who wish to live in a better world for purely rational selfish reasons that ultimately benefit those who make up the society.
I think the difference is we have a monetization aspect that takes what you are describing and elevating it like never before. We could see this get huge and explode.
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You talked about scalability, this is important. The model of Hive and how it's structured is important for how we can collectively achieve some of the most difficult things like raising funds. Copwrativism is the best form of Ism"
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Without the ability to scale, it is difficult to make these things compete with the mainstream system.
Hive does seem to be doing the things to be able to scale more. That is something that cooperatives ran into in the past. The inability to scale is a game ender.
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You're right, i rhit Hive is currently in moderation and there's more to come and that's why we're expectant that more is bound to come..
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!BBH
Because this is such an awesome post, here is a BBH Tip for you.
. Keep up the fantastic work
you have rigth my man
All of those three description, I agree with
Hive being able to produce Apps for use presents an economy that is capable of expanding over time with community of users readily available to consume these products.
The business perspective comes in when your stake begins to roll in passive income.
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STOPCheck out the last post from @hivebuzz:
I think crypto has been going in a way where code is the law and it removes some of the control that the current politicians have. In a way, it's moving the governance and it's going to change how people interact. Of course, it's far from doing it yet and it may take a long time. Hive is great because it's showing how we can have both a community and an economy.
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The idea of unintended consequences is one of the important concepts in economics. It can be negative or positive. An example of a positive consequence is Adam Smith’s “invisible hand.” As for negative consequences, Frederic Bastiat, identifies them more as the unseen outcome of destructive policies. He elaborates on them in his parable of "The Broken Window” and applies them in his analysis to a wide range of issues such as taxes and government spending.
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What a great post! Thanks!
It's always a good reminder that Humanity is an evolving thing. There is a special magic that comes from 'cooperation', and it's very much like multiplication... whereas our previous 'era' has been much more about competition, which is very much like division. You hit this smack on the head with your taskmaster hammer, and I loved it! Thanks again!
Indeed it does! Worth mentioning here is the very real innovation that came from the mind of the mysterious 'Satoshi'... which is the innovation of 'proofable' ownership of unique digital property using mathematical proofs. That mixed with the near instant validation of that proof, is a total game changer that makes a digital economy even possible in the first place.
We live in very interesting and fascinating times!!! Sometimes technology takes a while for it's changes to be obvious, but the transformations over time are just incredible!
Thanks for your work here!
LOLZ!
I bookmarked this post and added it to my list of things I link people to when I'm introducing people to this world and how it can solve our problems. Useful.