On value networks

Exploring networks of value. What are they, why do we care, and how to build a good one 🌐💰👥.

Let’s with something familiar and adjacent. One could call the internet a network of information. The information network has proven itself invaluable. It appears safe to say every human, if they aren’t already, soon will be, a user.

source: https://ourworldindata.org/internet

Exchanging information appears fundamental to the human endeavour, with many organizations and tools being built on top of some exchange of information happening. Any app on your phone is an example. That’s information. Another fundamental aspect of our daily interactions is the exchange of energy. Not so much energy as understood in physics, although it is not far off. Energy, power, is another one of those things every human appears to be a user of. We then exchange, borrow, and share said energy. Accusing me of painting the most dull picture of human interaction ever, would be fair.

Nevertheless, every society seems to develop a system that keeps the energy balance score between actors. I think it’s safe to assume some were experienced as enriching and conducive to human happiness, whereas others trapped and hurt more than they helped. Additionally, it’s hard to change them as changing the rules messes with the energy balances. So systems facilitating exchanges of energy balances are ubiquitous, impact our day-to-day, and are hard to change. Enough reason for some to want to understand, mindfully participate and potentially even improve them.

What makes a sound system? Some suggestions:

• Freedom. It’s hard to keep actors from sending and receiving energy tokens.

• Stability. Energy tokens should keep value relative to others. If you received energy tokens in exchange for some hard work, cashing in said value should be possible whenever you want to, now or in the future.

• Security. The only way for your balance to go up is for someone else to give you some of theirs willingly, and vice-versa.

• For those appreciative of some controversy, I’d also add transparency.

[evaluating current money systems, what have we tried already]

[how to build a good one]

[what is Ethereum building]