July 15, 2022
Is corruption and bureaucracy’s end near thanks to artificial intelligence?
By COMO Team
10 min reading
Blockchain, the chain of endless possibilities
Yes, blockchain is the technology that supports bitcoin. But it is not only that. This technology is kind of a huge accounting book where all the Bitcoin transactions are registered.
In other words, to guarantee the veracity of the payments, the transactions are perfectly registered and available to everyone. In this way, blockchain works as an unalterable public registry, a consensus tool among all its users.
This could mean the end of the order based on the hierarchy. Since the beginning of time, people always have needed the authority of third parties or institutions to coordinate (officials, experts, judges, politicians, central banks, supervisory entities, legislators) That’s, a huge list of elites that cost a lot of money and that generally makes the processes complicated and burdensome.
Think about what would you need to do in order to buy a house. You’ll need to deal with notaries, property registrars, bank officials... but now, blockchain gives us the opportunity to simplify all these procedures. The possibility to do them almost immediately with complete safety and at a much lower cost.
Imagine, for example, that we replaced real estate property records with this technology. What would happen? Well, simply that through blockchain, it would be communicated to the whole world that a house has been transferred and its payment was made. This communication is made in an inviolable and unalterable way.
In this way, all users can know what properties are in each account without knowing the identity of the person behind that account. The same goes for money and any other asset: vehicles, company shares, contracts, copyrights, patents...
We will no longer need a central bank from a company like Visa or any government authority to validate a transaction. It is the consensual knowledge of this transparent transaction that will give it validity.
DAOs and smart contracts
Yes, it may sound unreal, and although it’s true that this is still an incipient technology and that there’s a long way to go before we can see all its implications, we can already see some really interesting applications.
DAOs may be the most surprising application of blockchain. An application that has the potential to revolutionize many of the human institutions that we all know on a global scale.
A DAO is nothing more than an organization regulated and directed by smart contracts on the blockchain with condensed rules known to all. No bosses, no coordinators, no hierarchies, no need for a superior entity to control everything.
Until now in history, money and assets are always owned by a person or a group of people; however, from now on all this could change. Can you imagine companies whose owners are not human beings but machines? Can you imagine a company whose owner is just a few lines of code in the cloud?
Thanks to blockchain and artificial intelligence, this could be possible.
“Administrative tasks would almost completely disappear. Now, at this point, can you imagine a city without politicians?”
Let's think about an insurance company that is controlled by a DAO with hardly any human intervention. Imagine that a group of farmers in the United States create an insurance cooperative to protect themselves from frost.
In that case, the company would collect the insurance money from all these farmers and if somewhere in the United States there was a frost at a certain time that damaged the crops, it would automatically compensate the farmers by sending money into their cell phones or their current accounts.
You may be wondering what the point of all this is. Well, among other things, to multiply the productivity and efficiency in every single task. Imagine all that this could lead to. Many services would be much cheaper now thanks to blockchain.
But it does not end here. With this artificial intelligence of DAOs, we could imagine investment funds, pension funds or NGOs without bureaucracy. DAOs are capable of hiring analysts and programmers, but they are also capable of making their own decisions according to their programming and learning abilities.
The end of corruption
Administrative tasks would almost completely disappear. Now, at this point, can you imagine a city without politicians? A council with very simple rules constituted as a DAO.
The problem most people see with representative democracy is the introduction in history of the intermediary element of the professional politician. A figure that once reached power, ends up behaving like an old-fashioned extractive elite. The question is what, can blockchain contribute to all this?
To create something that is already known as distributed democracy. A new concept that could largely replace the representative democracy as we know it. So much so, that it is likely that by the end of this century many politicians will be replaced by this new type of governance.
A system based on large sets of DAOs and smart contracts to which the individual may or may not join optionally and even regardless of the territory where he lives. With this new system, we could all participate directly, or we could also delegate specific decisions to the best valued, most prepared or most reputable members.
Just as you hear it. The blockchain paves the way to end bureaucracy and corruption. It may be seen still far away, but just 30 years ago it was also said that the Internet was an illusion.