The effectiveness of distributed ledger technology to replicate the entropic behavior of nature
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The effectiveness of distributed ledger technology to replicate the entropic behavior of nature Federico José Camargo1
© Japan Association for Evolutionary Economics 2020
Abstract The modern monetary systems encourage the competitive behavior which damages our environment. However, the Distributed Ledger Technology (DLT) has the potential to implement monetary systems with functionalities that encourage behaviors that benefit the environment. Therefore, the research question of this paper is: is the DLT the most efficient technology to implement a monetary rate based on entropy? Entropy is the most economical of all the physical laws of nature. Entropy reflects that energy and matter are degraded and dissipated, respectively, by their use and non-use due to the irreversible passage of time. An Entropic Monetary Rate could be considered like the Silvio Gesell´s Oxidation Rate, however, the first rate has a greater scope and a solid support based on the principles of physics. This theoretical research compares the scope of the implementation of an Entropy Monetary Rate through DLT, paper money and digital money. The main contribution of this work is to reflect the effectiveness of the DLT to apply an Entropic Monetary Rate with the purpose to replicate the natural functioning of the environment to the entire monetary system. Keywords Distributed ledger technology · Blockchain · Entropy · Monetary systems · Ecological economics
This paper was presented at the 5th Biennial RAMICS International Congress in Japan in September 2019. A preliminary advance of this research was presented at the Monetary Innovation and Complementary Currencies Researcher Symposium, supervised by United Nations. Research Institute for Social Development (UNRISD), Research Association on Monetary Innovation and Community and Complementary Currency Systems (RAMICS), Institute for Leadership and Sustainability (IFLAS), Swiss Currency Confederation (SCC) in October 2018 at the United Nations. Federico José Camargo is a PhD candidate in Economic Sciences from the National University of La Matanza (UNLAM), graduated from the Amartya Sen Program (UNLAM) and Public Accountant (UNLAM). His research areas are monetary systems, sustainable development and sustainability, ecological economics, Blockchain and Distributed Ledger Technology. * Federico José Camargo [email protected] Extended author information available on the last page of the article
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Evolutionary and Institutional Economics Review
JEL classification E42 · E43 · E50 · E58 · G13 · Q00 · Q01 · Q40 · Q57 "Only innovators—who perceive the need for new transformations, new rules and new goals, which speak and write about it and experiment with these innovations— they can introduce the changes that transform systems" (Meadows et al. 2012, p. 345)1
1 Introduction Humanity is facing a historic technological moment, as its latest innovations have the capacity to adapt the monetary system to the ecological needs of the twenty-first century. In this sen
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