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  • How Bitcoin Will End World Poverty- Interview

    SINGER: Okay. The Institute for Liberty and Democracy in Peru, I really think Hernando de Soto should win the Nobel prize for the work he’s done. I hope he does. But he’s going around the world and identified one of the most powerful things to the economy and the creation of wealth. And that is the ownership of property. FORBES: Which you can then use as collateral.  Read More
  • Why Thomas Piketty is wrong about capital in the 21st century

    Thomas Piketty’s book Capital In The Twenty-First Century has attracted worldwide attention, not because he crusades against inequality –many of us do that– but because of its central thesis, based on his reading of the 19th and 20th centuries, that capital “mechanically produces arbitrary, unsustainable inequalities”, inevitably leading the world to misery, violence and wars and will continue to do so in this century. Read More
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One of the more provocative applications of the blockchain is its potential to unlock undocumented value in the developing world. Peruvian economist Hernando de Soto, whose book The Mystery of Capital is often cited on this topic, has asserted that 5 billion people lack access to adequate record-keeping infrastructure such as land titles, resulting in over $10 trillion in assets susceptible to unlawful expropriation and corruption. De Soto evocatively refers to these assets as "dead capital."

 But what about "dead" labor? Workers in the developing world (and beyond) are vulnerable to the misrepresentation and underreporting of their labor. This form of cost externalization, which has obvious economic, social, and environmental consequences, could be addressed with a blockchain solution. Using a tool like Factom, a worker’s labor contribution could be encoded immutably on a blockchain, effectively ensuring that the finished goods associated with that labor bear the imprint of the true cost of their production.

Similarly, the blockchain could be used to create a public record of adherence to regulatory standards as a product moves through a supply chain. For instance, Fairtrade International has stringent record-keeping requirements which could be better managed and audited on a transparent, blockchain-based platform. Going further, with such a system in place, consumers could independently verify that the premiums they pay for Fair Trade products are actually being used for social good. Taken to its logical conclusion, this type of blockchain implementation amounts to something like digital DNA, in which a product’s genesis is forever etched into an unalterable record.

Coming full circle, the blockchain could ultimately serve as a better technical architecture for the internet itself. Recent attacks on the internet’s core infrastructure are reason enough to begin assessing how an alternative approach might outperform our current systems, and organizations such as NameCoin are already experimenting with a blockchain-based DNS system that could replace our vulnerable, centralized model.


Read the full article on the website of Co.Create

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