Weekly: Pax BitCoinica

Weekly #039 | A prediction on a new era of data peace

Author

George Samuels
February 5th, 2023

Hello fellow wayfinder!

This week, we look at “Pax BitCoinica” — my theory on how and why I think BitCoin will create a new era of data peace and security, by comparing similar periods in ancient history like Pax Mongolica and Pax Brittanica.

However, this “peace” won’t come without massive disruption and consolidation of the current ecosystem. Something that may take 10-15 more years. Even for those who think they’re supporting Bitcoin.

Let's dive in.

☕️ Reading time: 2.7 mins

The world is becoming more connected and data is seen as the new oil.[1] But most of our data is still owned and/or hosted by large tech platforms such as Facebook, Google, and Amazon. So with that, comes the need for better data privacy and data ownership.

According to a recent report, there were 4+ billion records exposed by data breaches in the first half of 2019 alone. In 2022, it costed the world roughly $52+ billion.[2]

A single Scaleable Global Blockchain - from hereon I will abbreviate this to SGB — could provide an answer to this need, allowing users to store and share data without having to worry about third-party interference or censorship.

But what is an SGB? And how does it compare to the eras of Pax Mongolica and Pax Britannica?

Mongolia & Pax Mongolica (13-14th c.)

Pax Mongolica was a period of peaceful and prosperous trade, cultural exchange, and political unity established by the Mongol Empire in the 13th and 14th centuries.[3]  

Back then, goods, technology, and culture could travel freely across much of Eurasia, from the Pacific Ocean to the Mediterranean Sea. It was an age of stability and prosperity that allowed for the development of advanced technologies (like paper money, gunpowder, and the compass) and the spread of Buddhism, Islam, and other religions.

Great Britain & Pax Brittanica (19th c.)

Similarly, Pax Britannica was an era of political and economic stability created by the British Empire in the 19th century. This period of time saw the expansion of the British Empire to its greatest extent, as well as the height of its naval power.

Pax Britannica allowed for free trade and travel around the world, and it helped to spur the Industrial Revolution. It also established a global economy, making it easier for people to communicate and trade with one another.[4]

The Pax Mongolica and Pax Britannica eras were marked by peace and security, as power was centralized in the hands of one nation or group. But while this centralization of power is seen as the antithesis of most cryptocurrency or Web3 circles, it does have its advantages — growth and prosperity often follows on from the consolidation of power rather than its dismantling.

Decentralization, on the other hand, can lead to anarchy and lawlessness,[5] which isn’t beneficial for the majority of people.

SGB Benefits

An SGB offers a unique opportunity, as it could create a secure platform for users to store and share data — data that's now being considered the “new oil” — without having to worry about outside interference.

“Smart contracts” could also help to keep data secure, by providing a system of checks and balances to reduce fraud and abuse.

In addition, an SGB could help to make financial transactions more efficient and secure. It could reduce the need for middlemen and, as Satoshi Nakamoto outlined in his Bitcoin whitepaper, make it easier and cheaper for businesses and individuals to trade and exchange goods and services.

Because the irony of all this is that, once you start using multiple blockchains, you start to lose the benefits of a blockchain. You can see this evidenced by the sheer number of hacks that took place using blockchain/crypto bridges, costing vendors more than $1.4 billion.[6]

Using an SGB could also help to reduce fraud, a $41 billion cost in 2022 alone,[7] as it provides a secure and transparent platform for transactions. On-chain platforms like Certihash are already starting to help improve breach detection.

Lastly, an SGB could make data more available, giving users access to data from all over the world. This could lead to greater transparency and openness, as well as increased innovation.

Differences

An SGB may share similarities with Pax Mongolica and Pax Britannica in that it could provide a safe and secure way to store and exchange global data.

But unlike these eras, an SGB would keep power decentralized enough to ensure no single entity has complete control over the blockchain for an extended period of time.

This is the unique part of implementations like the original BitCoin — which is still misunderstood, even in 2023.

Pax BitCoinica (21st c.)

Pax BitCoinica builds upon the two previous eras of relative peace and security, but from a digital world and data lens.

Since we can look at the current digital and “crypto” landscapes like the Wild West — just think of the Dark Web, which brought in $2.1b through crypto in 2021 alone — further stability can be brought to “crypto” by leveraging an SGB.

This would go against a lot of the anarchic proponents of crypto, who helped bring Bitcoin and crypto mainstream (got to give credit where credit’s due), but it’s a reality that can’t be ignored from history.

Essentially, all groups go through four stages of formation, similar to Tuckman-Edison’s model of team performance (Form > Storm > Norm > Perform):

We can see this for civilizations and even online groups. So the same can be applied to how Bitcoin has formed, stormed, and is now entering “norming” stage with increased legal understanding and regulation.

Once this occurs, we will see new businesses and applications form that will lead to higher performing use cases.

We saw the exact same thing happen with the Internet, which led to social media giants such as Facebook, Twitter, etc. And that didn’t occur until 20-30 years after the Internet was born.

This is why I think “Pax BitCoinica” won’t occur until 10-15 more years from today (2023). But based on what I’m seeing behind-the-scenes, a massive consolidation (via an SGB) will need to occur. And it won’t occur easily.

Only thereafter, with the right protections and support, will true peace and security be “set in stone” for others to build upon.

Conclusion

In conclusion, an SGB could help to usher in a new era of “data peace”, much like the Mongols and Brits did with Pax Mongolica and Pax Britannica.

It could reduce fraud, make financial transactions more efficient, and increase the availability of data.

However, this “peace” won’t come without massive disruption and consolidation of the current ecosystem. Something that may take 10-15 more years. Even for those who think they’re supporting Bitcoin.

And if history is any indication, our future prosperity depends on it.

What are your thoughts? Do you think “Pax BitCoinica” may become a thing? Or do you think another blockchain may dominate, or a “multi-chain” world will be the reality instead? Would love to hear.

Until next week, remember: through patience & persistence, it will come.

George

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