A scene from Dr Strangelove (How I Learned to Stop Worrying and Love the Bomb)

Bitcoin as a Multilateral Contract

Jon Gulson
May 6 · 3 min read

The Evolution of Cooperation

Two months after the Bitcoin white paper appeared (in October 2008) a paper was published (December 2008) by John Nash in respect of agents modelling coalitions and cooperation in games, the purpose of which was to computationally discover evolutionary stable behaviour.

“…in practical game theory the players can be corporations or states; so the problem of usefully analysing a game does not, in a practical sense, reduce to a problem only of the analysis of human behaviour.” John Nash, December 2008.

Stable Social Contracts

In the literal sense, Bitcoin is seen as a transaction medium between “peers” who are commonly taken to mean individuals at a consumer based level transacting — as Szabo offers — without intermediary involvement.

“This strategy is consistent with the normativity of law and morality, both of which are characterized by self-interested actors who accept reciprocal constraints on action to generate Nash Equilibria and, ultimately, a stable social contract.” Jens David Ohlin, Nash Equilibrium and International Law, 2011.

A Scaling Insight based on a Stable Social Contract

On an international basis, effective multilateral agreements between nations are difficult to achieve because of the supranational coordination required: most states consent to international legal norms through a process of bilateral agreements with specific partners who [in turn] have their own set of overlapping bilateral agreements.

“ I was stimulated to think of the possibility of modelling cooperation in games through actions of acceptance in which one player could simply accept the “agency” of another player or of an existing coalition of players.” John Nash, December 2008

Conclusions

Instead of understanding Bitcoin as removing mental transaction costs — mind taxes — at a consumer level, it can witness intuitions as cash — small casual transactions — through the possibility of co-operative benefits created at the supranational level which scale into the village.

Coinmonks

Coinmonks is a technology-focused publication embracing decentralize technologies. We are Non-profit and education is our core value. Learn, Build and thrive. Our other project— https://coinmonks.com, https://cryptofi.co, https://coincodecap.com

Jon Gulson

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Observations on trust and money quality

Coinmonks

Coinmonks

Coinmonks is a technology-focused publication embracing decentralize technologies. We are Non-profit and education is our core value. Learn, Build and thrive. Our other project— https://coinmonks.com, https://cryptofi.co, https://coincodecap.com