A Crypto Class With Intrinsic Value
Electricity can exist without Bitcoin, but Bitcoin cannot exist without electricity.
After 100 years of regulated professional engineering practice, engineering is still accounted for on a time and materials basis. In the Internet age, where everything and everyone is connected by engineering, we argue that the value of engineering may be valued by Network Effect. This represents perhaps the greatest arbitrage opportunity in the history of civilization.
For example, many social networks such as Facebook or Google enjoy corporate valuation in accordance with Metcalfe’s law which states that the value of a network is proportional to the square of the number of nodes in the network. Facebook, Linkedin, Google, etc., are all simply platforms upon which participants reflect value through their interaction with each other. The real physical value of those interactions is projected upon the virtual value of the platform. This is significant.
This condition may be mirrored with engineering infrastructure, such as a bridge or a building. The physical value of the bridge may be accounted for in a linear time and materials, but the network value of the bridge is proportional to the exponential number of connections that people make in using the bridge. The difference between the two quantities represents an arbitrage opportunity whose value would be easily measured into existence by a clever cryptocurrency.
This same value analysis can be extended to nearly all works of engineering from renewable energy facilities, clean water installation, transportation systems, and all buildings, etc. The Network Effect also applies to the security, fault tolerance, transparency, and reliability of a network as well — each reflect additional layers of engineering “proof-of-work”.
Today, the value associated with the network effect of infrastructure engineering is unaccounted for — it does not exist on any balance sheet yet it is widely distributed in society. Doctors have hospitals, manufacturers have machinery, bankers have assets to finance, insurers have accidents to underwrite — none could exist without the network effect of engineering. The unfortunate trend now is that the true value of engineering can now be captured by the few at the expense of the many. Only an engineering “Platform” can make the necessary adjustments and balance.
The World’s First Intrinsic Cryptocurrency
The purpose of CoEngineers.io is to distribute two digital tokens that serve as datum points used to measure the network value of engineering. Modeled after digital currency, such tokens would represent the intrinsic value of all people who interact with works of engineering. A currency that accounts for intrinsic value will quickly achieve a generalized reciprocity among a community of beneficiaries who will then readily trade in that currency.
Much like Amazon.com started as a bookseller, CoEngineers will start with Smart Cities. The use-case will be to adjudicate contracts upon which banking and insurance depend in order to capitalize and underwrite works of engineering. Once this point of entry is established, additional layers of infrastructure can be added eventually capturing the true value of every human being that contributes their productivity to the network.
The Integrated Engineering Blockchain Consortium is proud to announce the CoEngineers.io Foundation as the lead institution for the development and application of the first Blockchain developed by Engineers for Engineers.