Once disruption starts to take hold, it spreads like wild fire. In other words, it cannot be contained.
Over the last few months, we discuss a few different industries that are potentials for massive disruption. We can now see how technology is affecting entertainment (broadcast television and movies), automotive, finance, and retail.
There is one major group that we did not delve into yet it is worthy of discussion. It is the largest entity in most countries and is primed for massive disruption.
It is time to look at governments.
*Image made using Ideogram.
As a reminder, when we use the term Web 3.0, we are referring to a great deal more than just blockchain and cryptocurrency. Instead, we are focusing upon a host of technologies that, combined, will alter society.
Many already discuss the idea of AI managers and CEOs. Nowhere does this concept apply more than to levels of government. It is also something that will be resisted by those involved.
In the article Why Companies Cannot Fend Off Disruption And How That Benefits Web 3.0, we provided a reason why companies, even when aware cannot fend off disruption.
It states this:
different stakeholders have interests that are misaligned.
This is bad within major corporations; it is fatal within governments.
Just think about all the different stakeholders and how their interests often contradict each other. Obviously, the political and bureaucratic class tend to want more power, something that is a negative for the citizens. Then we have each industry trying to siphon funding. Even within industries, we have certain players appeailng to regulators for protection while others are seeking entry.
Basically, this is the epitome of the definition provided above. For this reason, much like major companies, governments, even if aware of the disruption, will be powerless to stop it. Here is where Web 3.0 can step in.
This is another topic we delved into at length.
Our government system was designed in the physical world. The idea of creating "citizenship" based upon geographic areas made sense them. Where is falls apart is when we realize that we are dealing with a global population.
Another factor that is rarely discussed is how the governments are not designed to operate within the physical realm. They approach it from a perspective of control, omitting the fact that technology simply moves elsewhere. When it comes to the digital arena, technology is now on steroids.
Even though we could produce a list of 10 reasons why our governments are impotent in the digital realm, the final one we will cover is speed. The world of bits is orders of magnitude faster than the physical. When it comes to government, it operates at a snail's pace.
Here is where the opening exists for the network-state.
We look at size, without physical borders, speed, and rapid acceleration of technology, and can only conclude that we have an entity that is ill-equipped to handle what is coming.
Everything is networks. Even governments are such. This is a part of the entire natural world one that we adopted. Governments are complex organisms that take on a life of their own. Except for a few exceptions, there is nothing controlling it.
For example, is the President in control of the U.S. government? Is it Congress? The bureaucrats at the different departments? The security agencies?
Arguments can be made for any of them.
We can bet the ranch each will do all it can to maintain the status quo. They will not cede power. This is why it will have to be taken.
The key will be the process of opting out.
Of course, people simply cannot, for the most part, cannot simply say "I am done" and pull a Timothy Leary. Instead, we are looking at a moment-by-moment shift.
This means that people start to focus more attention on their Web 3.0 activities and less on the present system. It could mean using cryptocurrency for payments wherever possible. This also could entail earning one's living via these platforms.
If we are in the information economy, which is should be evident to all reading this, it is time to take control of that. The masses can gain simply through a new ownership structure which, fortunately, Web 3.0 offers.
We also have the advantage of technology.
Here is where we see radical improvements. What is interesting is who is most affected. The common approach is to see how something like AI benefits major corporations like Google or governments of the world. This is certainly true.
However, on a percentage basis, the bottom rung is who benefits the most.
Think about this from a "moving the needle" perspective. What does it take to double the capabilities of a Google? As a platform, it was extremely powerful.
If we contrast this with the average citizen from a developing nation, how much is their ability enhanced simply by having access to something such as a chatbot? From a small business perspective, as an example, this could have an enormous impact.
With this understanding, it simply becomes a numbers game.
Web3 (notice the difference) was birthed in the digital realm. It never resided in the physical.
Here is where, I believe, we see a massive transition.
Cryptocurrency is an example of a form of money that is completely digital. Calling it "Internet money" is correct. That is where it got its design. It also, by default, has the characteristics of the medium it was designed within.
That means it is fast, can expand, and is near limitless. We also see permissionless as a potential characteristic depending upon the network.
All of this is in contrast to a government system. What happens when identification is taken over by this realm? How about the concept of public record keeping? Why do stats run databases of tax information, auto renewals, and an assortment of other information that is posted online?
Why not simply [post this on a public network and eliminate all tied to that from the government standpoint?
The answer lies in the interests of the parties involved. Do you really think IT managers will allow that to be taken away from them? They will come up with a host of reasons why that information must reside on government servers.
We saw the same situation in the financial realm. This is an industry that, almost exclusively, is digital. Yet we see the same thing. Naturally, governments also have a big part in this with regulators constantly having power struggles.
This is another group of players who will not go quietly.
The bottom line is that, even if someone wanted to revamp government, it is not going to happen. It is an entity that has too many misaligned stakeholders. This is also why it is woefully inefficient.
We have a race.
It is technology versus government. Each time someone does something to build up Web 3.0, it is another dagger blow in the gut of governments.
Right now, this might be hard to see since we are in the early stages. However, over the next 5 years, as technology becomes more powerful and development with the Web3 realm takes off, we are going to see an entirely new structure.
This will be aided by some governments taking action that helps to push them more towards collapse.
