The Rationale Behind Blockchain

The Rationale Behind Blockchain

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5 min read
Date Published: 
January 18, 2023

Anarcho-Capitalism and minarchism are the founding principles of blockchain technology. On the one hand, Anarcho-Capitalism is the idea that individuals should be free to make their own choices in their everyday life. This includes a broad range of things like buying and selling anything they want, forming unions for better wages and benefits, or living a homeless lifestyle on the streets. On the other hand, minarchism is all about keeping government agencies small and limited in what they can do. 

Blockchain is a product of anarcho-capitalist ideology. A network of computers are distributing the data of the transactions on the blockchain. Since they aren’t able to track it back to real people, this allows for complete anonymity. Minarchism is just as essential. The miners that operate these computers are doing it with electricity which is paid for by someone. For them to do that, there must be a governing body or group of people regulating the use of electricity and how much is used. If there were no restrictions on how much could be used, no one would be responsible for paying for all this power and no one would have any control over the blockchain. 

Because of the size and scope of the blockchain, there has to be a governing body in place that can regulate it accordingly. In other words, this technology requires a government for it to function the way that it was intended. Without any oversight, a cryptocurrency like Bitcoin would just become untraceable money for drug dealers or terrorists. It’s not even feasible to have an open source network like the blockchain without any regulation behind it as people will abuse the system in some way or another. 

Blockchain is exactly what it is because of minarchism. Minarchism is what keeps transactions safe while not being able to see who’s involved with them by using blockchain technology. Without government coverage, it would be impossible to have a safe and secure cryptocurrency like blockchain technology. Since Bitcoin is in effect anarchy, we can see how minarchism is the base of this ideology. The technology is very important to have with the potential that it provides. It’s no wonder that there are so many industries that are trying to get involved and they're not all that willing to listen to criticisms from those who don’t want this kind of change.

Minarchism isn’t just a good idea for blockchain, but it’s essential for the whole world. It's the base of blockchain technology, thus in turn being the founding ideology behind NFTs and Metaverses.

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