SVET Reports
Multi-dimensional Economy and Multi-dimensional Money
The Crisis Of The One-dimensional Economic Model
Today we are witnessing a picture in which extreme poverty coexists with super-wealthy throughout the world, regardless of the level of “development” of concrete country. And the point here, most likely, is that the world is ruled not by a "secret club" but by the obvious crap of the existing economic model. It is based on an ultra industrial - approach to the general unification of resource valuation through money and a single currency (dollar, euro).
Thus, social and economic relations’ full complexity is flattened to a single “currency” line. This approach has some consequences, such as, for example, the impossibility of the traditional banking system to finance new economic models (for example, the attention economy), transfer non-standard resources into assets (for example, monetize trust in local communities). All this leads to the fact that, on the one hand, substantial monetary assets have been accumulated. And on the other hand, these assets cannot be invested anywhere, since there are no financial technologies for working with new and non-standard resources. The consequence of this is that modern currencies become, in fact, liabilities - we see that in places of their surplus, zero and negative rates are already being introduced for storing such money.
It is interesting to note that the same situation was observed in the late USSR when the accumulated capital in the form of non-cash money of enterprises was cut off from the sphere of consumption, which was underfunded continuously. The ill-conceived removal of this barrier in 1989 (through the law “On State Enterprise”), which allowed cashless rubles to be cashed out, simply boldly took the USSR economy, second in the world, then destroyed the country. But if the financial storm in the USSR “only” devalued the ruble in 10,000 times (!!!) and was, as a result, absorbed by the world economy. But now this world-scaled form of over monetizing can nowhere to go out from world economy …
Back To The Future - Neo -barter Or Barter 2.0
The convenience of unified money is obvious - everything in the world “has” a price. There is no need to recount every time how much a pot in shells or skins costs. There is a price standard, there are exchange rates to calculate the cost quickly - simple arithmetic operations are enough.
However, given the availability of colossal computing resources today, this problem can be solved in another way. Calculation of cross-rates of tens of thousands of values can be performed in real-time on a pocket computer (smartphone). The systems of technical norms also allow calculating the cost of complex products and the share of resources with sufficiently high accuracy.
Thus, we can offer a “new old” resource exchange system - barter, but on a modern computing basis.
First, barter is much more multidimensional than commodity exchange, creating new dimensions of freedom of business.
Secondly, thanks to trusted technologies (blockchain), it adds another one dimension of time is possible: given now oil - received products in the fall.
Thirdly, thanks to multi-agent technologies, it is become possible to build multi-step exchanges, that is, to introduce more dimensions of freedom.
This creates new dimensions for economic growth - a multidimensional economy.
Why Blockchain And Smart Contracts Require Here…
It seems evident that existing "one-dimensional" currencies will not work for a multidimensional economy. Since the existing infrastructure for servicing currencies has developed in an industrial society, it is inflexible and suboptimal. We observe now that it can no longer adequately respond to market fluctuations in conditions of rapid changes. Simultaneously, all these risks are included in the cost of money (the credit rate). Thereby increases the local markets’ currency prices, making most business activities unprofitable and even more strangles local business. Businesses cannot take such expensive money; thus, they are more and more narrowed investment opportunities for the capital. Therefore it is, even more, stimulate the outflow of capital from the regions. This creates positive feedback, which leads to a further increase in the monetary deficit in the "economic fringe" and unwinds the spiral of poverty in the regions.
This means that the new money must have a higher dimension, a more comprehensive set of value parameters. For example, you can imagine that when evaluating different types of assets, different types of money are also needed - “oil economy” money will differ from “attention economy money” or “sharing economy money.” In general, you can issue a derivative for any type of resource by describing its behavior in a smart contract, making it an asset for some kind of economy. There may also be “complex money” - analogs of stock indices, consisting of various assets, but being a means of calculation (we are working on this;)). It is possible to include the dimension of time here by describing options on such derivatives. You can go even further - describe option strategies in smart contracts. And thereby create a synthetic asset with reduced volatility - a new kind of stablecoins is winging on the market ...
Conclusion:
Multi-dimensional money needs multi-dimensional institutions. We can see the first examples of this - when crypto exchanges like Kraken claim for a banking license.
We can imagine a new type of institution, integrated bank, exchange, fund - maybe like called “Bank 2.0” by Alexander Lebedev.
So, it's look like time to start.