Ethereum's core idea set - the ethereal dreamer

Translator’s Note

What is Ethereum? Apart from the technical aspect, Ethereum is a community of thinkers and philosophers who have a vision of freedom, openness, and a decentralized world. They are conducting experiments to transform the economy and society. Perhaps this is just a ‘dream’, but as mentioned in the article, it is precisely because no one has tried it that we need to delve into the unknown. Therefore, I think this is more like a thought experiment and a cultural movement. I remember seeing a quote on the Kernel website, although I can’t find the exact source now. The general idea is that we don’t talk about technology because technology is constantly changing, only thoughts can be eternal. This week, let’s explore these eternal thoughts through translation articles!

Overview

This article is about Ethereal Dreamers, author: Kernel Community. The full text is about 4800 words, and it is expected to take 35 minutes to read.

Main content

Dreamer

We are the creators of music,
We are dreamers of dreams. We are the people who are sleeping in the long river of time. The history buried in the past of the earth,
We built Nineveh with sighs, Built the Tower of Babel with laughter; And destroyed them with prophecy. To proclaim the value of the new world to the ancient world;
Because every era is a dying dream,
Or it could be a dream about to be born.

• “Ode” by Arthur O’Shaughnessy[1]

How does this fit with Kernel?

The format of this briefing is different from any other content you find in the curriculum. This is because when discussing the form of collective dreams, it is impossible not to consult many different people, listen to multiple voices, perspectives, and their personal experiences. Therefore, we invite Mihai Alisie, Karl Floersch, Rhea Myers, Virgil Griffith, Simon de la Rouviere, Kei Kreutler, Toby Shorin, Laura Lotti, and Sam Hart to join us on stage and try to uncover the veil of our common intangible hopes, in order to better understand its form.

The intention of this article is to touch on and foreshadow much of what we will be discussing this week and in the coming weeks. We particularly hope it will help you better understand:

1. Create meaningful currency.
2. Common values and diverse values.
3. Code, Law, and How to Survive at Every Level in Between[2]。

? We are learning to dream with an open mind… Welcome everyone to collaborate.

Passionate Fire

Before the launch of Ethereum, this dream was already defined as a combination of reflection, introspection, meaning, and shared value. Mihai wrote.[3]：

In this process, it makes us reflect on our values and examine ourselves, asking what this project really means for each of us individually and collectively. In these long soul-searching journeys, we realize that most binary oppositions ultimately boil down to one question: for profit or not for profit?

It can be said that all these early deliberations have led us to believe that creating currency is more fun and interesting than making a profit. What we mean is: Ethereum means you can create currency yourself, rather than being skeptical of currency created by others. Mihai goes on to point out that we

The motive is not money, but the burning passion for freedom, openness, and the crazy idea of a Decentralization world. This is the reason why we are ultimately happy, and the reason why we get up and devote ourselves to this project. We are proud to say that today we are building tomorrow.

Just as we did last week in the pattern game (Play of pattern)[4]As mentioned,

Because this attempt has never been tried before, there is no right or wrong answer, nor specific experience to refer to. We are delving into the unknown.

Learn a language

One way to start randomly exploring this unknown field is to jump into Karl Floersch’s early works, he suggests[5]，

Ethereum is the government of the Internet, and Smart Contracts are its laws.

However, ‘law’ means substantive content, not just form. This means that we are more concerned about what we can actually do, rather than what we may do. Anyone can create laws on the ETH platform, and if you learn this language, you are actually a member of the legislative body. Moreover, the administrative body is just a network composed of computers, and these computers will execute meaningful speech according to agreed fees.

Enacting laws does not mean everyone will abide by them. All Ethereum (ETH) laws are optional. To have your laws adopted, you need to persuade your compatriots that following your laws aligns with their interests. Good laws will provide unique advantages to those who follow them. They allow for cooperative action and greater trust within the community.

A good example of the distinction between formal, regulatory law and optional, substantive law is freedom of movement. Most modern democratic countries enshrine this freedom in formal terms: anyone can wander at will across any public land. However, you still have to pay for your own travel and accommodation. Therefore, in practice, only a relatively small part of the population can enjoy this freedom. Earlier communities framed this issue very differently: they did not have formal freedom of movement, but actively cultivated a culture of hospitality towards strangers.[6][7]Because this can ensure that anyone can truly travel freely if they want to. In this simplified example, people can begin to see the “friendly society”[8]In ”, mutual assistance is the basis of individual autonomy, and we will be in module 4[9]And when we turn to a more general perspectiveTime to review this idea.

The word “good” here no longer implies some kind of moral stance: it has to do with the calculable effect of any executable statement. The shift in the way we understand the word “law” is most directly reflected in the fact that it is impossible to “violate” the law on ETH Square - because the law is written in enforceable and unambiguous language, and the nature of the ETH Square Virtual Machine (EVM) is deterministic - but it is possible not to comply with the law.

“Speaking a new language, the world will become a new world” - Rumi

Wittgenstein called[12][13]“There are no purely philosophical questions, only misunderstandings of language.” A global computing architecture can reduce these misunderstandings in economic interactions, although ultimately it is still up to us, the signatories, to determine what laws give meaning to our common state. As Rhea said elsewhere, “Ethereum allows anyone to define what art is.”[14]." This is what we will cover in Module 4 A viewpoint re-explored.

Karl’s post discusses the legislation and executive branch of the government, and proposes, “Through low-cost, selective and non-violable laws, we can for the first time easily apply the scientific method and trial and error to governance.”[15][16]However, this seems to overlook the judiciary. The function of the judiciary is to interpret the law, resolve disputes, and assess case outcomes. However, in this new medium, interpretation and assessment are no longer ideological issues, but engineering challenges.The operation mode of the dispute is also different because.

The law is optional, which means they are subject to the supervision of every citizen. The law is unbreakable, allowing us to accurately measure its effectiveness. The formulation of the law is available to everyone, which means new laws can quickly replace old ineffective ones. Let’s repeat it again. We will be able to turn governance into a science and find laws that are effective and fair for everyone.

It is worth noting that this approach has received a lot of criticism, especially when it is simplified for marketing purposes. In particular, we must ask whether ignoring the judicial system corresponds to a broader social movement – that is, pursuing efficiency at the cost of sacrificing justice.[17]Although the negative doubts and inevitable pessimistic responses in this article contradict Kernel’s viewpoint, critics like Evgeny and Katrin remind us of two key points:.

The standard of justice should never be deprived in pursuit of higher efficiency.

Infinite Game Library

This discovery once again leads us through time and space to Virgil Griffith’s work, which embodies the legal concept that is beneficial and fair to everyone, as he wrote: [18]

Ethereum is an unprecedented collaborative gaming platform.

His thesis lays the foundation for understanding how to leverage such an environment to disrupt the traditional game theory conditions, and further demonstrates that when we transform non-cooperative games into cooperative games, rational choices become cooperation.[19]。

The ETH workshop constitutes a clean, omnipresent external supervisor, which can always enforce the protocol between players regardless of the game. This means that in theory, the ETH workshop can turn any non-cooperative game into a cooperative game.

Of course, this situation has its pros and cons, as games can be easily distorted to promote pro-social outcomes. As we will see later in the course[20]As suggested, the best way to deal with this insight is very simple, which is to thoroughly open knowledge, sharing, work and communication.

Another way to look at the power unleashed by increasingly effective tools is through a historical lens, observing the concepts of corporations and limited liability: this is actually just another way we find to distort certain incentive mechanisms. Simon de la Rouviere points out,[21]

The invention of the limited liability corporation has created a new organizational system. The potential of blockchain technology and the creation of a new type of encryption-based economic coordination system may lead to marginal improvements in efficiency compared to corporations, but it may also lead to the emergence of unprecedented coordination systems.

Such coordination systems may bypass the prerequisite of state enforcement and its violence. As Simon elsewhere mentioned,[22]As written,

This raises the question of how to design coordination schemes that can accommodate an infinite number of participants without relying on the state. As the tide turns towards decentralization, we may find a middle ground: a certain blend of these things indeed proves beneficial to our society.

Such a system can be used to change the incentive mechanism for global coordination failures in critical missions like climate change games:

Instead of trying to force participants to restrain the inevitable abuse of public resources, it is better to make protecting these resources profitable.[23]…In fact, as the abuse of public resources deepens, protecting them will increase profits instead.

This economic feedback loop incentivizes a self-regulating ecosystem and creates the time needed for the recovery of public resources.[24][25]Understanding how technology can create more time.[26]So that people can take a simple breath together, which will be the core content of module 3。

Coordinated Galaxy

In his article on the joint stock company Pepe, Simon continues to point out:

The key feature of changing an organization is to drop the coordinated Transaction Cost. This is reflected in Coase’s Theory of the Firm. You can make marginal improvements, such as applying decision support systems within the organization, but occasionally there will be a major systemic change that initially seems marginal in terms of benefits, but fundamentally allows for a completely new organizational form to exist.

The drop in entry barriers (and the incentive for small contributions from weakly connected edges) will eventually lead to the emergence of a grand, Consensus-driven initiative. We saw this in the transition from the large-scale general partnership of the early industrial revolution to the explosive rise of subsequent corporations.

In Simon’s words, Ethereum is the “dark matter” of organizations, capable of coordinating crowds akin to galaxies.[27], and have the ability to create new Sherin points, rooted in a shared, tokenized story.

Simon in all his works[28]It suggests that blockchain can be used to create a coordinating system that is equivalent to (or even more powerful than) a joint-stock company, without relying on physical coercion. This coordination comes from the shared narrative in the incentive structure, making it almost impossible for those in power to change the narrative. He wrote:

This enables even weak ties to collaborate, and they can collaborate at the speed of information transmission. This is the power of law, but it operates at the speed of code.

“Dark matter” is a particularly appropriate term because the exact consequences of the distortion and galactic-level coordination it brings are difficult to predict and understand. The same goes for corporations at different levels. Simon gave an example and complained:

“Limited liability allows a person to benefit from their actions, but if these actions result in adverse consequences, they are not responsible for them; they can speculate for profit without bearing the responsibility for losses.”

This prompts us to turn to a more serious topic, asking…

Will large-scale tokenization of all network effects ultimately have purely negative impacts on society? If we allow memes to have value, are we making a Faustian bargain with the giant corporation Pepe?

(Translator’s note: Faustian trading refers to a deal where a high price is paid for short-term gains or substantial benefits)

A free public space

Simon’s question is very profound. It reminds us of a concept that we will elaborate on in Module 6: the system described by Mihai, which aims to achieve a world of freedom, openness, and Decentralization, also requires eternal vigilance.[29]One key part of this vigilance involves our moral imagination and the foundation of our technological (internal or external) creative abilities, which are based on the premise of others’ benefit.

In an article about “Positive Sum Worlds”[30][31]In their excellent article, Toby, Laura, and Sam list privacy, work of free sharing, liberalism, accountability, and democratic participation as values that go beyond the simplified concept of “good” in economics. If we not only understand Virgil’s deep game theory above, but also begin to engage in dialogue,Thinking together about the language of the games we play may redefine ‘free riding’ type of economic ‘issues’ and transform them into a more extensive and humanized public we should serve.

Economists may be puzzled by this change in meaning, but it is this linguistic reordering that constitutes the core of Karl’s new language mentioned above. Simon also wrote that Ethereum treats currency as a language[32][33]To achieve, this idea is one of the few eccentric geniuses deeply entrenched in this particular "rabbit hole"Shared.

These profound changes in our communicative language point to another key point in the otherinter.net article, that is, ‘a public space always goes beyond the known protocol.’ In Module 7, we will understand that the protocol itself does not encourage giving, the protocol itself is the gift. From this perspective, we can also understand how:

These profound changes in the meaning of our communication languages reveal another key part in the article on anotherinter.net, namely, “the public always transcends the protocol known to one person.” In Module 7, we will understand that the protocol itself does not encourage giving, but the protocol itself is the gift.[34]. When viewed from this perspective, we can also see how -

Public goods are behavior patterns reproduced by social institutions in the representation of public interest.[35]And the required social institution for implementation is not a chain company, but a container that accommodates different capitals and coordinating concepts.

There have been some ideas proposed about coordinating the use of capital, but more importantly, it is up to you to define your role in this shared network.[36][37]And I realized that this meaningful work for individuals can be best accomplished in relationships.As Toby, Laura, and Sam wrote:

One way to embody positive externalities is to view the success of others as one’s own success. In fact, this quality is associated with trustworthy neutrality.[38]The principle is consistent.

More Eternal

One of the core ideas in Positive Sum World thinking is related to the concept of time horizons. Carl Sagan once reminded us that “books prove that humans have magic” because books allow us to “travel through time” literally. When you read words written hundreds of years ago, whose voice echoes in your mind? Is it the author’s? Is it your own? Or is it a mix of both?

Every new medium we invent enables us to extend our consciousness far, reaching into the unknown time of the “future.” This idea is shared by many indigenous peoples.[39]The concept is in line with the idea of not only thinking about oneself, but also considering the seven generations to come, living together with those who have not yet arrived, and remembering those ‘hidden faces underground’. Blockchain allows us to realistically ask: ‘What will happen to the seventy generations to come? Or the seven hundred generations?’

Great shout! We call out to the coming future,

From the dazzling unknown coast;

Bring your sunshine and summer to us,

Let our world regain its former glory;

You will teach us the new melody of your songs,

And things we never dreamed of.

Toby, Laura and Sam ask:

How do we use the immutability provided by encryption protocol to create something that can surpass our lives and become the foundation for the long-term continuation of civilization?

Every medium deeply asks us the same question: Do you remember who you were and how you want to be remembered in the future? The Blockchain technology realizes the concept proposed by Jose Saramago.[40]More clarity, adding more precision, clarity, and urgency to this issue.

(Translator’s note: The concept of ‘Jose Saramago’s idea’ refers to what Jose Saramago said in his work ‘Blindness’: ‘The good and evil produced by our words and deeds will continue to spread in the future.’)

We will end where we started: as always.

Even if we haven’t fully understood its applications and impacts, the multitude of ideas and actions sparked by its core principles is already inspiring, and allows us to glimpse the limitless potential of our minds - we are co-creating and shaping the ‘reality’ of our future.