Kibbutz Economy Interactions with Blockchains and Cryptocurrency Networks
19 Pages Posted: 14 Feb 2017
Date Written: February 13, 2017
Kibbutzims, as a social experiment, initially succeeded in achieving the goals for which they were envisaged. Over a period of time, due to changing circumstances, Kibbutzims have faced criticisms on their style of functioning and purpose of existence. Nevertheless, Kibbutzims have managed to evolve and continue to be net contributors to the Israeli economy. Blockchain technology today has attained saturation in terms of commercialization and acceptability. This is partly because; Blockchain is being developed and used by private entities, whose identities are mostly unknown. A large majority of the public is suspicious of the technology and its applications. It has now come to a stage where, to grow bigger, Blockchain Technology needs to be embraced holistically by Governments and Government institutions.
This paper deals with integrating the Kibbutz concept with Blockchain Technology, thus providing a possible win-win scenario for both the concepts. We analyse in detail the probable interplay between Blockchain Technology and life in the Kibbutz. Firstly, the concept of Kibbutz and cryptocurrencies are explained. Then the concept of Regulated and Sovereign Backed Cryptocurrencies (RSBCs) is discussed. We envisage a scenario where Cryptocurrencies are used in the day-to-day activities of Kibbutzims on their own Blockchain. We evaluate the advantages that can accrue from such a combination. The paper concludes as to how Blockchains can impact Kibbutzims and also how Kibbutzims may influence Blockchain Technology.
Keywords: Kibbutz, blockchain, bitcoin, RSBC, K-Y Protocol, cryptocurrencies
JEL Classification: J52, J54, L14, P13, P31, P32, P34, Q13, Q55
Suggested Citation: Suggested Citation