Proof of work, Skin in the Game and Zero sum games.
This article was originally a part of the identity manifesto, an unpublished sequel on identity and its takes. I felt this bit of writing was out of context for the identity manifesto but shed light on to how much of our daily learning and banking system, isn’t a zero sum game.
Proof of work in a particular field provides the second person an idea as to what skin you’ve exposed in the game and how much have you already staked to arrive this far.
As a blacksmith’s worth is defined based on his proof of work, his ability to build weapons and useful things out of steel, the value of his work is reliant on his past history of having produced quality weapons or things of useful nature of good and positive attire such that the person evaluating his work ascertains it to be worthwhile of whatever they are willing to provide in exchange for this transaction.
Similarly, a baker gets an order to prepare a cake for a wedding once after people have tried and tested his cake beforehand numerous times. The baker has no incentive prepare cakes that he’s not going to sell or rather prepare cakes without an confirmed order other than the prospect of becoming better at his trade lured into the prospect of finding better and higher paying clients for the same amount of time with his better skills equating to better pay.
The Baker’s apprentice expends numerous hours learning the trade before he becomes adept enough to take off on his own with a considerable reputation that he’s built together within the span of his apprenticeship.
The apprentice’s proof of work is the attestation of the baker certifying his ability to bake good cakes. Both, the baker and the apprenticeship have expended skin in the game to arrive at this point of divergence.
The apprentice expends time, effort, willingness to learn and provides a helping hand as his master demands where as the master expends time, effort, willingness to teach and is liable to the folly of the apprentice.
It is a transactional trade off. The apprentice learns for his own reasons and provides value in exchange as the master teaches for his own reasons provides value in exchange.
There exists value that is built around this process of learning.
Both, in their own selfish intent to honestly trade adds value to their immediate network and so forth.
We can conclude that this is no longer a zero sum game.
We observe that a lot of things isn’t adjusted for zero sum games.
These non zero sum games are what drives our world.
Our existential banking system is designed as such.
At large, it is not a zero sum game either.
These are exciting times.
There is so much left to be unraveled that it sometimes scares me.
Right until when euphoria takes over.
— Prahalad Belavadi
