On the blockchain, there's absolutely no place to conceal your activities!
Today, data reigns as the most vital resource, often touted as the 'New Oil.' That's part of the issue at hand. Unlike tangible commodities like oil or wheat, data is gathered and traded covertly. Many don't realize that the data they generate online is a significant business.
Bitcoin and similar public blockchains hold their worth partly because they maintain an unchangeable record of every transaction that has occurred on the network. Every action, no matter how minor, is recorded indefinitely.
Anyone can delve into the information on entirely open blockchains at any moment, anywhere. The Bitcoin blockchain provides universal access, an integral aspect of the system. This openness ensures that every single transaction in Bitcoin's history can be scrutinized by anyone, enhancing transparency.
At first glance, the openness of the blockchain seems advantageous. However, it also presents challenges, especially as global political climates become more unstable and laws undergo retrospective amendments.
A Naked Tyrant
Control is the ultimate desire of authoritarian regimes. Before achieving control, they focus on collecting data. East Germany perfectly exemplifies this approach. The country's secret police, known as the Stasi, were obsessed with data collection. They managed to recruit over 2% of the East German populace to spy on each other.
Back in the time of East Germany, before 1991, the level of technology was nowhere near what we have now, notably within Soviet satellite countries.
Collecting data was a laborious task, and analyzing it was equally challenging. Even with basic computing capabilities, real-world data was predominantly analog, requiring manual input.
Another world indeed!
Under an authoritarian regime, East Germany offered scant protection for human rights or due process. If the Stasi deemed you an enemy of the state, they could act without restraint, even extraditing you to Moscow.
The takeaway is that data is fundamental to authoritarian regimes. This fact is worth keeping in mind as we move forward.
The Nark in Your Pocket
Smartphones caught us by surprise with their popularity, but the significance of privacy remains clear. For corporate leaders, smartphones have revolutionized data gathering, and AI has simplified data analysis. the Stasi Today's world is heavily influenced by the data generated online, and all major stakeholders are deeply involved. Social media platforms thrive on this data. Whenever you interact with them, you provide more information for the platform to sell. Users have no expectation of privacy as platforms continuously gather and trade data about them.
Public blockchains like Bitcoin or Ethereum offer a semblance of anonymity, yet it is easily compromised if law enforcement zeroes in on you. For the most part, cryptocurrency users have flown under the radar unnoticed, but that situation might not persist.
All of your data is easily synthesized by AI systems. Numerous platforms spanning decades store this data, including those from public blockchains.
Bitcoin's original purpose was to serve as digital currency, but in terms of privacy, it falls short. Initiatives like Tornado Cash aim to prioritize privacy, but governments find the notion of financial privacy online unpalatable.
Digital Cash?
Few blockchain platforms prioritize privacy above all else. While NFTs and memecoins generate excitement and speculation, they don't provide the same privacy safety net as cash or precious metals like gold or silver.
Imagine that!
We find ourselves ensnared by our pursuit of profits measured in fiat currency, irrespective of the burgeoning data we create on thoroughly transparent blockchains. This position currently appears advantageous but could change swiftly.
The initial step involves using existing data and modeling it—a straightforward task. But once a model is established, everything transforms.
The Forming Function
Data driven algorithms are curious creatures Consider the CCP's social credit system in China as a case study.
China's social credit system operates through an algorithm that establishes social structure across much of the nation. Unlike the credit ratings in Western countries, the Chinese system is comprehensive. It determines an individual's access to healthcare, education, and travel capabilities.
Understanding China's Social Credit System
In this context, it's evident how the algorithm regulates societal roles. It dictates an individual's lifestyle and societal permissions.
In Western democracies like the USA, UK, and EU, the data collection component akin to China's social credit system is already implemented. People ardently engage with apps, making it easy for corporations and governments to access this data.
Dictators In Libertarian Clothing
Every piece of data from location details to financial transactions and social media activities is readily available.
Peter Thiel, one of the masterminds behind PayPal, also supports projects that resemble a Western version of the social credit system. Though he claims libertarian principles, he has created platforms enabling extensive data collection and analysis reminiscent of the Stasi.
Political manipulation of the legal system transpired during the Biden administration, demonstrating its reality and potential for widespread deployment by any government. A totalitarian regime could exploit all existing data for its sinister aims with absolute certainty. companies like Palantir Blockchains, such as Bitcoin, were initially conceived to safeguard human rights and privacy—not to facilitate authoritarianism!
Bitcoin's increasing value, nearing the $100,000 mark, stems from presenting a new approach to a global dilemma: the overreach and abuse of centralized powers.
Now a cherished Wall Street asset, the original inspirations for creating Bitcoin seem forgotten. Fiat currency, with its inherent flaws, empowers humanity's darkest tendencies.
The Ultimate Goal: Decentralization, Not Just an Attractive Feature
Decentralizing systems and restricting power offer potential solutions, yet actual progress is still a distant goal, regardless of Bitcoin's fluctuating value in fiat terms.
Nicholas Say hails from Ann Arbor, Michigan. He has explored numerous places, called Uruguay home for many years, and currently resides in the Far East. His writings can be widely found across the web, with a focus on pragmatic innovations and future technological advancements.
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