The Programmable Economy: Envisaging an Entire Planned Economic System as a Single Computer Through Blockchain Networks

Abstract

Since the dawn of the concept of nation-states, many nations have been planning their economies to increase people’s prosperity and standard of living. All economies have a centralised feature where decisions are taken. But data collection and plan implementation has been cumbersome because of the manual nature of economic planning. Centralised systems, even when digitised, are prone to single point failures. Controlled Blockchains allow for an economic system to be decentralised, yet having central supervision i.e. quasi-decentralisation.

This paper deals with shifting a national economy to a network of Blockchains and creating a Programmable Economy (P.E) where the whole economic system behaves like a single computer, taking in certain inputs and providing the desired outputs.

We discuss the various factors that are needed to bring about such a transformation. We also analyse the impact this will have on various aspects of the economy and people’s lives. Finally the paper concludes by summarizing the purpose, methodology and impact of a Programmable Economy (P.E).

Keywords: blockchain, K-Y Protocol, planned economy, bitcoin

JEL Classification: C53, C63, C81, C82, C87, D04, D72, D78, D81, E27, E37 ,E47, E61, F17, F37, F47