Bitcoin Mission Statement. Or What Does It Mean Sharing Economy and Distributed Trust?

Abstract

Technological advancements in the means of production are the driving force behind the changes in the prevailing system of socio-economic relations. Feudalism was transformed into capitalism as a result of such advancements. While man obtained physical freedom, the financial freedom remained under the control of the centralized authority.

A deep level of collaboration is required to attain the next level of productivity provided by new technological advancements. However, the present system with a centralized control of governance and finance appears to constrain and restrain the value producing economy. This constriction becomes especially evident when the business environment requires collaboration to create, as it underlines the inherent conflict of centralized control. The most recent tech sector innovations, such as smart contracts and crypto-currencies, are poised to disrupt the system of centralized control. The removal of a centralized authority from the position of control will change the fabric of the society to reflect the mesh network of shared resources. The society will transform to the new form of socio-economic relations – the era of Crypto-Socialism.

Keywords: Bitcoin, Blockchain, Crypto-Socialism, socio-economic transformation, socio-economic framework, smart contract, sharing economy, distributed trust, function of money, financial decentralization, financial desintermediation

JEL Classification: A11, A12, A13, A14, A22, A23, A29, A20, B14, B15, B19, B22, B24, B29, B30, B40, E10, E11, E19, E12