A good example of this is the institution of money.
Social credit and reputation can work well in a small community.
But what do you do in a large market with 1000s of participants?
The stupid, costly, tyrannical way to do it is to put a cop on every entrance, register everyones identity, keep huge ledgers of all the credits between participants, spend huge amounts on enforcement to crack down hard on those who don't pay.
The institution of money was a better solution. Once the buyer receives the merchandise and the seller receives the money the exchange is complete. No need to keep track of anything or identify everyone. Enforcement is needed only in a tiny minority of cases. You only need negative reputation (ie: keep track of a few thieves and scammers) but most honest participants can move freely.
You reduce cost of enforcement, maximise freedom for everyone and increase the openness and scope of the market.
flix / Flix
npub1vxz…78px
2024-04-29 10:22:20
in reply to nevent1q…u87x
Author Public Key
npub1vxz5ja46rffch8076xcalx6zu4mqy7gwjd2vtxy3heanwy7mvd7qqq78pxPublished at
2024-04-29 10:22:20Event JSON
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