Philosophy and Values Behind Blockchain Technology Part 1

Freedom in the world where legal enforcement doesn’t exist.


After Satoshi Nakamoto wrote the software for the Bitcoin network, he made the software open-source, meaning that anybody to this day can download the software, inspect how it works and use and all parts of it. This is one of the reasons why many of the blockchain networks, such as Bitcoin Cash BCH and others are very similar to Bitcoin. At their foundation is the Bitcoin software that they modified and later added to.

This is also very different from how proprietary software systems from large corporations such as Apple, Microsoft, Google and others work. For example, with Google, Google’s algorithm that ranks pages when users perform searches on the platform is the “secret sauce.” If people outside of Google knew how the “sauce” worked, then it would be easy for them to become #1 on Google, which, especially for businesses in various niches and industries, could be very profitable. If such businesses could easily get to the top of Google, they would also have no reasons to pay Google for advertising and to this day advertising is the main source of income for both Google and Facebook. This is the reason why both platforms keep their algorithms secret, just like Amazon does keep its product ranking algorithm a secret, and other companies guard their respective proprietary technologies. All of this is the opposite of what happens on public blockchain networks.


Freedom in the world where legal enforcement doesn’t exist

Also, no matter what public blockchain network, be it Bitcoin, Sia, Ethereum, none of the networks are forcing users to do anything, even the concept of something being illegal doesn’t exist because with blockchain networks being global and having no government, there are also no agencies to enforce any laws even if such laws were to exist and no law can function without enforcement.

The science of psychology says that for people to perform an illegal action, three things need to happen at the same time (source: ). The first one is desire, be it a need, a want or a medical condition.

For example, if a person wants to steal money, he or she either needs money or wants entertainment or has a condition such as kleptomania. The second one is rationalization. The person performing an illegal action needs to be able to explain why even though the action is illegal, the person is still a good person. Every criminal in the world believes they had reasons or excuses for committing the crimes they committed, including believing that the society is wrong is labeling what is a crime. A person stealing food may have an excuse of “I am hungry and they are not,” a person stealing money from a big company may have an excuse “this is a big company and it has a lot of money and the money really belongs to no one, and so on.” The final piece of the puzzle is the belief that after committing a crime the person will not get caught. Nobody in their right mind will commit a crime if they knew that right after they do so, the police would show up, they would get arrested, get to jail and have to serve a sentence. Criminals do believe that they will not get caught and even when they realize there are risks, they think that the risks will play out in their favor.

If you pay close attention to these three factors, you will notice that two of them are internal – desire or need, and rationalization. Only the third one is where the external factors can be really effective, which is the ability to get away without getting caught.

With no police, no enforcement, and transactions on blockchain being irreversible (this latter one is something Satoshi Nakamoto paid a lot of attention to in his original Bitcoin whitepaper), blockchains offer complete freedom and are only able to exist because of the superior technology that nobody was able to hack up to this point.

What is even more interesting is that during the famous hack of “THE DAO,” which was when hackers on the Ethereum network have diverted funds from “THE DAO” project and when the Ethereum Classic project came to life, the hackers claimed that they didn’t do anything illegal and their actions actually benefited the Ethereum and the blockchain community.