Blockchain Radicals: How Capitalism Ruined Crypto and How to Fix It with Joshua Dávila
Oct 31, 2023
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Joshua Dávila, author of 'Blockchain Radicals', discusses how capitalism has ruined crypto and how to fix it. Topics discussed include unscrupulous marketing in the crypto space, the influence of marketing on public perception, power dynamics in internet infrastructure, politics and surveillance, decentralized autonomous organizations (DAOs), NFTs and energy usage.
Blockchain technology should be understood beyond marketing narratives and seen as a tool for organizing and challenging capitalism.
Understanding the technical infrastructure of blockchain is crucial for grasping its potential to change power dynamics and social interactions.
Decentralized Autonomous Organizations (DAOs) can be utilized by left-wing movements for democratic decision-making and resource-sharing.
Deep dives
Political contestation over blockchain technologies
The podcast episode discusses the political contestation surrounding the use and future of blockchain technologies. It explores the different perspectives and reactions to blockchain, ranging from skepticism and cringe to idealistic visions of decentralized organizations. The speaker emphasizes the need to think critically about blockchain technology and move beyond representational thinking. They argue that while there are marketing narratives that portray crypto in a particular way, it is important to understand the potential and value of blockchain technology beyond these narratives. The speaker suggests that blockchain is just one tool in a toolbox of organizing methods that can be useful in certain contexts.
Understanding blockchain technology
The podcast delves into the concept of blockchain technology and its infrastructure. It explains the difference between client-server models (centralized systems) and peer-to-peer networks (decentralized systems) commonly used in blockchain technology. The podcast also touches upon the double-spend problem and how Bitcoin solved it, allowing for trustless transactions. It highlights the social dynamics facilitated by blockchain technology and its potential to change power relationships. The speaker emphasizes the need to understand the technical infrastructure and how it shapes social interactions and governance.
Decentralized Autonomous Organizations (DAOs) and Leftist Applications
The podcast explores the concept of Decentralized Autonomous Organizations (DAOs) and their role in left-wing movements. It highlights how DAOs began with an idealistic vision of automating corporations but evolved into a wide range of organizations. The speaker describes DAOs as cooperative-like entities that utilize smart contracts for shared resources and token-based governance. The podcast discusses the Red Chain Cooperative as an example of a leftist project utilizing blockchain technology. The cooperative aims to create infrastructure and tools for left-wing applications, emphasizing democratic decision-making and resource-sharing.
The Influence of Cypherpunks on Cryptography and Privacy
The podcast episode explores the impact of cypherpunks on the development of cryptography and the protection of online privacy. It highlights how the movement led to the creation of cryptographic protocols that aim to safeguard personal identity on the internet. Many of these protocols form the foundation for the limited privacy available online today. Additionally, it discusses how cypherpunks played a significant role in the development of blockchain technology and cryptocurrencies. It emphasizes how these technologies have become tools for resistance against government surveillance and censorship, as exemplified by platforms like WhatsApp standing up to governments requesting access to encrypted data.
Understanding Cryptocurrency as More Than Just Money
The podcast episode challenges the notion of cryptocurrency purely as money. It delves into the complexities of different cryptocurrencies, with a focus on Bitcoin as a proof-of-work consensus mechanism. It explains that the use of cryptocurrency goes beyond mere transactions and highlights its potential for counter trades, where the monetary value is not determined solely by the cryptocurrency itself. The discussion also touches on stablecoins and their representation of money, noting their layered nature within the monetary system. The episode ultimately argues that cryptocurrency's unique properties, including its separation from traditional monetary systems, make it a valuable tool for alternative economic and organizing endeavors.
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Over the last decade, blockchains and crypto have opened up a new terrain for political action. It is not surprising, however, that the crypto space has also become overrun by unscrupulous marketing, theft and scams. The problem is real, but it isn’t a new one. Capitalism has ruined crypto, but that shouldn’t be the end of it.
Blockchain Radicals shows us how this has happened, and how to fix crypto in a way that is understandable for those who have never owned a cryptocurrency as well as those who are building their own decentralised applications. Covering everything from how Bitcoin saved WikiLeaks to decentralised finance, worker cooperatives, the environmental impact of Bitcoin and NFTs, and the crypto commons, it shows how these new tools can be used to challenge capitalism and build a better world for all of us.
While crypto is often thought of as being synonymous with unbridled capitalism, Blockchain Radicals shows instead how the technology can and has been used for more radical purposes, beyond individual profit and towards collective autonomy.