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      "permlink": "steemitboard-notify-dickolsson-20190529t033024000z",
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      "body": "Congratulations @dickolsson! You received a personal award!\n\n<table><tr><td>https://steemitimages.com/70x70/http://steemitboard.com/@dickolsson/birthday2.png</td><td>Happy Birthday! - You are on the Steem blockchain for 2 years!</td></tr></table>\n\n<sub>_You can view [your badges on your Steem Board](https://steemitboard.com/@dickolsson) and compare to others on the [Steem Ranking](http://steemitboard.com/ranking/index.php?name=dickolsson)_</sub>\n\n\n###### [Vote for @Steemitboard as a witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1) to get one more award and increased upvotes!",
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      "title": "Rebooting Liberalism – part 1: Voting",
      "body": "Liberalism, the foundation of our current political structures, was conceptualised during the <a href=\"https://en.wikipedia.org/wiki/Age_of_Enlightenment\">Enlightenment</a> period in the 16th century. Philosophical and academic contributions came from many people, different parts of the world, but <a href=\"https://en.wikipedia.org/wiki/John_Locke\">John Locke</a> is widely considered the “Father of Liberalism”.\n\nFast forward to the 17th century and Capitalism started to emerge in Europe, much thanks to the English revolution. While liberalism and capitalism was flourishing, different forms of oligarchy was still ruling most countries.\n\nDemocracy (Greek word for “rule by the people”) has existed in some forms since the Ancient Greece. But it wasn’t until the 18th century that it started taking the shape as we know it today. In this century we had the first parliament of Great Britain forming, the <a href=\"https://en.m.wikipedia.org/wiki/Age_of_Liberty\">Age of Liberty</a> in Sweden with vastly expanded civil rights and the American Revolution lead to the creation of the United States Constitution.\n<h2>The problem</h2>Fast forward to the 21st century, and <a href=\"https://www.theguardian.com/commentisfree/2018/may/27/liberal-democracy-history-us-politics\">liberalism, capitalism and democracy is in a real crisis</a>, with governments overstepping their boundaries, financial collapses and the rise of extreme populism. Our current political and economical structures continue to provide no answer to these major issues.\n\nThis is the first post in a series around ideas described in the book I'm currently reading called <a href=\"https://www.amazon.com/Radical-Markets-Uprooting-Capitalism-Democracy/dp/0691177503\">Radical Markets</a>, by Glen Weyl and Eric Posner. These ideas do not only apply to the governance of countries, but also to the governance of smaller communities (such as software communities).\n\nThe basic argument is that liberalism needs a reboot, starting with the uprooting of capitalism and democracy as we know it.\n\nThere are largely three topics I’m going to write about:\n<ol>\n \t<li>Voting mechanisms within communities or countries.</li>\n \t<li>Coordination of decision making within communities or countries.</li>\n \t<li>How significant property ownership (currency, domain names, land, housing etc.) is a form of bad monopoly and needs to be looked at from a different perspective.</li>\n</ol>\n<h2>Why and how governments exist</h2>The main reason governments exist can be boiled down to this - making it more efficient to coordinate decision-making across a country’s population.\n\nSince the birth of liberalism the most practical answer to this coordination problem was to put a central government in place to represent the governed. But as it turns out, this way of coordinating decisions is incredibly inefficient. But that’s a topic I’ll blog about later.\n\nSimply speaking, in most countries governments are elected by majority vote. That is, each citizen gets one vote. The party with most votes gets to govern the country. There’s numerous variants of this scheme (such as the electoral system in the US). But for the sake of this post, these variants are largely irrelevant as it fundamentally comes down to 1-person-1-vote (1p1v).\n\nMuch of the above can also be applied to foundations or boards of not-for-profit communities (such as software communities).\n<h2>Overall opinion vs. overall value</h2>The problem with majority voting is that it’s not optimal. If the ruling party have 51% of the votes and gets to rule the country, there’s 49% that basically will not be represented. This mechanism responds well to the overall opinion of people, but not to what would create more overall value to society as a whole. The intensity of opinions vanish with 1-person-1-vote mechanisms and minorities are often misrepresented in these cases.\n\nTake any minority group for example, people who wants to preserve a piece of land or legalising gay marriage. These topics might be of very high value to these minority groups, but the question might not matter at all to the majority. Therefore, surplus value would be created for society if the minorities got their say. But our traditional voting mechanisms will not respond to this.\n\nWouldn’t it be better if there was a way to better and more fairly express intensity and value while voting, instead of 1-person-1-vote? And something that’s more optimal than majority voting?\n\nBesides, society already agrees that 1-person-1-vote isn’t democratic. That’s shown by the many legislations that governments are putting in place to protect minorities. These legislations are often rather arbitrary and not enough. And who decides what the minority groups are? What if there was a way for groups to protect themselves?\n<h2>Quadratic voting</h2>In the book “Radical Markets” by Weyl and Posner, the concept of Quadratic Voting (QV) is proposed as a more fair and egalitarian way of voting.\n\nThe basic idea is that each citizen, or member of a community, gets a number of “voice credits” that each person can use to vote on different topics and decisions that matter to them.\n\nA person can decide to spend multiple votes on a single topic, but does so at exponentially increasing (quadratic) cost.\n\nFor example, I could chose to spend 1 vote at the cost of 1 credit in the parliament election, and 1 vote at the cost of 1 credit on a proposal to legalise gay marriage.\n\nAlternatively, if gay marriage was incredibly important to me, I could choose to spend 2 votes at the (quadratic) cost of 4 credits on legalising gay marriage (or 4 votes at the quadratic cost of 16 credits etc.).\n\nThis system makes it possible to express intensity and value while voting. It makes it impossible to express extreme opinions at low costs, but at the same time allows people to express strong opinions that are of high value to them.\n\nThe system does also discourage many forms of collusion and <a href=\"https://en.wikipedia.org/wiki/Plutocracy\">plutocracy</a>, by making such “attacks” very expensive.\n<h2>Conclusion</h2>The idea of Quadratic Voting falls under the general theorem of “Radical Markets”, which I will cover in more depth in future blog posts.\n\nThe term “radical” is used because it fits with the <a href=\"https://en.m.wikipedia.org/wiki/Radicalism_(historical)\">Radical Movement</a> that started in the late 18th century with the intention to drive radical democratic reform to the electoral system.",
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      "title": "The ideas that came before Bitcoin",
      "body": "![Logo-e-gold.png](https://cdn.steemitimages.com/DQmQbv8Xuua93yudWb9o9AKQsvVVJu9miCqAFYpMeKu2BmT/Logo-e-gold.png)\n\nBitcoin is not an original concept, as many people would like to think. In fact, Bitcoin is the result of quite a few iterations of similar ideas from the past.\n\n## Ecash\n\nThe first idea around electronic currency was conceived in 1982 by Davi Chaum in the form of [Ecash](https://en.wikipedia.org/wiki/Ecash), and implemented in 1995 under the company [Digicash](https://en.wikipedia.org/wiki/DigiCash).\n\nHowever, the idea came onto the market before e-commerce was big enough, and Digicash struggled with adoption and eventually had to file for bankruptcy.\n\n## E-gold\n\nThe first implementation of some kind of digital currency started back in 1996 with [E-gold](https://en.wikipedia.org/wiki/E-gold), founded by Douglas Jackson. It was essentially a centralised database operated by the company Gold & Silver Reserve Inc, under E-gold Ltd. Each record of e-gold in the database was backed by physical gold in a vault.\n\nE-gold gained some serious traction and at its peak in 2006 the system processed transactions worth $2 billion per year. However, the system was too easy to misuse and abuse. It was prone to hacks and phishing attacks which eventually became its downfall.\n\nThe fundamental structures around Ecash and E-gold weren’t robust enough to withstand the test of time and technology. It was clear that something more resilient had to be the solution.\n\n## Hashcash\n\nIn 1997, shortly after the arrival of both Ecash and E-gold, came the concept of [Hashcash](https://en.wikipedia.org/wiki/Hashcash), initially proposed by [Adam Back](https://en.wikipedia.org/wiki/Adam_Back). While this wasn’t a currency in itself, it introduced the idea of “proof-of-work computation” to prove good intent with any kind of digital transaction. The original use case for Hashcash was to fight email spam.\n\nThe basic idea of Hashcash is that if someone has consumed some non-insignificant amount of energy (that cost money) by running a very difficult computation, it’s more likely that the person is honest and not a spammer. It would not be economical for a spammer to keep spending lots of costly energy for low-value transactions.\n\nAgain, while Hashcash wasn’t money per se, it introduced the ability to in a decentralised fashion, deter attacks and other abuse on a system by making it too costly. It introduced new forms of robustness and security.\n\n## b-money\n\nIn 1998, [Wei Dai](https://en.wikipedia.org/wiki/Wei_Dai) published the first proposal of a digital currency using a similar proof-of-work system to Hashcash. It was called [b-money](https://en.bitcoin.it/wiki/B-money).\n\nUnfortunately, the protocol that Dai proposed with b-money never got implemented in code. But it didn’t go unnoticed…\n\n## Ideas coming together\n\nhttps://www.youtube.com/watch?v=6MnQJFEVY7s\n\nIn the late 90’s it became clear that a robust digital currency would eventually be created. For example, you had 1976 Nobel Prize winner in Economic Science, Milton Friedman, talking about the disruption of governments and the concept of “e-cash”. This was back in 1999, around 10 years before Bitcoin was going to be invented.\n\nCome 2009, there had now been numerous attempts at creating digital currencies. Despite the lack of any technical success, the ideas from Ecash and E-gold hadn’t gone unnoticed to the world. But with the introduction of much better technical solutions such as Hashcash and b-money, it must have become clear to [Satoshi Nakamoto](https://en.wikipedia.org/wiki/Satoshi_Nakamoto) how a better and more resilient system could be built.\n\nA digital currency had to have the qualities of cash, e.g. durable, portable, divisible and have limited supply. The system could not rely on a central bank or a company. It had to be built on sound and tested cryptography in order to be extremely robust and secure.\n\nSatoshi created [Bitcoin](https://https//dickolsson.com/tag/bitcoin/), and the rest is history.",
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