FROM THE EDITOR: I'm very pleased to be able to share another editorial by returning guest author The Greatest Instruments. This pseudonymous writer has previously contributed thorough commentary on the nature and history of currency, and now presents us with a large-scale view of decentralization, networking, and the new methods of distributed authority that cryptocurrency and its peers represent. The piece to follow is actually the second of two parts- the first is an examination of the faults in traditional, centralized institutions. Bureaucracy is a nigh-inescapable aspect of human life, with pyramids of governance growing- and ultimately failing- in similar conditions throughout recorded history. The pitfalls and hazards facing centralized institutions like these are covered in detail in part one, on GreatestInstruments.net. Here, we present Part Two: The Rise of Emergent Networks, discussing the role of such networks and disruptive technology in changing the face of authority and results. -George Ettinger, Contrib. Editor

The Rise of Emergent Networks

By THE GREATEST INSTRUMENTS - Dec. 14, 2013

“Sometimes the situation is only a problem because it is looked at in a certain way. Looked at in another way, the right course of action may be so obvious that the problem no longer exists.” – Edward De Bono, Author of Lateral Thinking “Removing the faults in a stage-coach may produce a perfect stage-coach, but it is unlikely to produce the first motor car.” – Edward De Bono, Author of Lateral Thinking

Changing The Rules Of The Game

Adapting To Game Changers

Same Lesson, Different Epoch

The Game Changer Of The 21st Century

The Results Are Already In

Breaking The Cycle Of Institutions

Towards A Different Future

“We cook your meals. We haul your trash. We connect your calls. We drive your ambulances. We guard you while you sleep. Do not fuck with us.” -Tyler Durden, Fight Club

The Global Financial Crisis – An Opportunity To Shine

A problem as old and pervasive as the one we face ( See Part 1 ) is beyond the reach of any person to solve. It can only be solved by a Game Changer.An analysis in Game Theory applies the effects of two kinds of changes: •These are made within the context of a game, typically requiring moderate strategy adaptions. •Adding or removing a rule can upset balances, rewrite strategies, and effectively create new games. The effects of a rule change increase exponentially with the complexity of the game. Most of the changes we deal with in our day to day game are. Conventional planning is based on the assumption that the past serves as an useful model for predicting the future. But, remember the old adage: Past performance is no guarantee of future results. If history teaches one lesson, it’s that the future unfolds in unexpected directions when the existing rules are upset.In World War I, tanks were employed for the first time. Career cavalry officers, lacking imagination, used them in the same role as horse cavalry . This was so ineffective that some units reverted, refusing to use their “useless” tanks. Throughout the entire war, the tank was never employed to its full potential. Most of us have probably seen management that blames their tools for their own lack of insight. Unfortunately, in this case, the cost was recorded in millions of lives. Aircraft were initially employed in a reconnaissance role, to replace observation balloons. Towards the end of the war, the U.S. Army Air Corps (ancestor to the U.S. Air Force) began attacking enemy supply lines from the air. Unlike tanks as horses, this quickly brought a 4-year trench stalemate to an end. Fast forward to 1939, the dawn of the Second World War. Though there were technological improvements on many fronts, World War II armies had the same basic set of tools as thelate-World-War-I forces. This time, the world would witness their full potential. When Rommel lead German forces into Poland, he employed Blitzkrieg , a combination of penetrating armored columns mechanized infantry and close air support . This approach, called Combined Arms by modern armies, is still in use. In the trenches, France had held out against Germany for over four years. In World War II, Paris fell in six weeks . The success of Blitzkrieg, almost two decades in the making, sent ripples throughout Allied war planning.caused defensive stalemates across medieval Europe, until the invention of siege weapons. Cannons put the final nail in the coffin. The wealthy who could afford these weapons became the rulers of nations were nearly invincible in the open field for centuries. The first cheap armor-piercing weapon wielded in large numbers (and with relatively little training) was the english longbow . The French lost four wars to the English learning its effectiveness.were required to win wars in Europe for centuries. Until the Founding Fathers came up with a better solution: Men will fight for free for their own rights . Fighting for their own homes, citizen patriots took up arms and endured hardships far in excess of their paid counterparts.led the Southern Army to early victories in the Civil War, until the organization that would later become the U.S. Secret Service invented the first form of Currency Warfare . The South’s economic defeat guaranteed their eventual military defeat. Though war provides obvious and dramatic examples,cause power swings in in sports, business, politics, and society at large.•Conventional ideas (and sometimes leaders) must be put aside to allow innovations to realize their full potential. •Using the same basic tools, a change in tactics can yield amazing results. •The full impact ofmay not be immediately felt. It can take decades. •The greatest gains are reaped by those who adapt early and capitalize on an unprepared opponent.These days, the world seems gripped by a general sense of impending change, but the source seems elusive to many… It’s actually quite simple.Universal peer to peer communication, via the Internet, has reduced the cost of collaboration to near zero. Formerly, the means of mass communication and sources of expert knowledge were centralized, expensive, and controlled by institutional interests. As a result,are losing their power.are rising to replace them. Mass communication and expert knowledge is becoming decentralized, cheap, and less monopolized. So, what is an– Pursuit of a solution using dynamic, fast, and cheap collaboration. Roles, responsibilities, and strategies arise through collective intelligence – Relationships can form along any common axis of interest. Peers join and leave on equal terms, without mutually excluding themselves from other associations.•Roles, responsibilities, and expectations sourced through collaboration. •Fast convergence & divergence from the objective.•Honest, direct communication between peers. (No Celine’s 2nd Law ) •Focus on Results, not Process. •Immediate ejection of group members who do not contribute or meet their role expectations. •Continuous strategy shift as the environment changes. “A rolling stone gathers no moss.” •Lack of mutual exclusion allows individual contribution to multiple groups and multiple solutions (Try telling a corporation you want to work for their competitor, to explore an alternate solution, and see what happens). •The cheap cost of forming or exiting an association makes groups resistant to becoming institutions . (In a corporation or government agency, you usually get rid of the biggest jerk by waiting for him to retire or quit.)This is by no means a comprehensive list, and is not arranged in order of significance…Mainstream Media -> Alternative Media Centralized Web Services -> Cloud Services National Political Parties -> Grassroots Movements (Occupy, Tea Party, Liberty Movement) Central Bank Currency -> Crypto-Currency ( Bitcoin being the leading example) Corporate Software -> Open Source Software Encyclopedia Britannica -> Wikipedia Venture Capital Funding -> Crowdsourcing Traditional Revolution -> Arab Spring Uprising Street Gang -> Flash Mob Napster -> Bit Torrent Centralized Manufacture -> Distributed Production Network ( 3D Printing for example) Formal Activity Clubs -> Meetup Groups Traditional Startup -> Y-Combinator Perhaps its most profound effect is on how we relate to others.Self-interest and group-interest will always need to find a balance. For thousands of years, Pyramids have been the easiest answer to this problem. The cost of a hierarchy is the group’s submission to the self-interest of the rulers and owners. Predictably, this becomes a slow march from instrument to institution . This self-destruction begins when great ideas, needed improvements, and fixes to existing problems are held back to protect the vested interests of the status quo. But we’re finally seeing a way to break this cycle… Emergent Networks nullify all pyramid-centric problems. With no resources wasted on internal conflict, self-interest and group-interest are aligned on the objective. Better results can be delivered at lesser cost, and new ideas cannot be suppressed by entrenched powers. Dead weight is kept to a minimum, because it will always be cheaper to leave and reform the group, than deal with someone who drags everyone else down. Functional aspects of hierarchies can still be used, such as electing a leader or representative, but this can never be forced on the group. With no bureaucracy, the problem solving process accelerates. As new types of groups and problems are formed, tasks and roles become well understood, the benefits will compound.Our future is in motion. Even the so-called experts can’t predict exactly how things are going to turn out. Solutions are emerging, some more promising than others. Unprecedented access to knowledge sharing is giving rise to a new generation of thinkers, capable of mastering multiple fields and sharing knowledge at an unprecedented rate. Unlike a pyramid, a network can’t be corrupted or subverted by targeting its leadership. It has no vulnerable center of gravity. Bitcoin has been making huge waves , recently becoming the center of U.S. Senate Hearings on Virtual Currencies , but we’re likely nowhere near seeing its full and final impact. In many ways, it serves as a proof-of-concept to the world-at-large, a model for future Emergent Network technologies. Some of the most important ones are likely yet to come. Emergent Networks have seen their first deployments to the battlefield of ideas, the first small victories have been won… But the pieces haven’t all come together. We have yet to see the Emergent Network version of Blitzkrieg (metaphorically speaking). Advanced endgame strategies and solutions could be decades away, but current progress suggests a much shorter timeline. Great minds are already tackling these problems, and more are on their way. There will be great challenges, but with these will come the opportunity for professionals from every field to make use of their talents.A good friend gave me a simple mantra: Stop Thinking Pyramid. Start Thinking Network. Understand that the pyramid owners are not going to like any of this. Because the end result undermines their interests, they’ll do everything within their reach to undermine this trend. Especially when it starts to hit their bottom line. The tide is against them, and it will become stronger as time passes. So far, they can’t even figure out how to fight, because their entire arsenal of strategies is based on competing with other pyramids. Just like the cavalry officers with tanks, they simply can’t conceive that the fight has changed. That is their weakness. Their biggest frustrations will come from the networks already forming inside their own pyramids. The best and brightest, the very people they need on their side to win, will be the earliest to abandon their way of thinking. Ask yourself, can anyone defeat an adversary they are dependent on?It would be a colossal understatement to say that the existing powers have fumbled the current crisis. They can’t even get a Healthcare Website functioning, much less save a crumbling global economy. Should we really be relying on them? What can a few hundred business and government leaders really do? A problem of this scale is too complex for any group that size, no matter how talented. If they were stumbling around in the dark with no solution, would they admit it? Probably not. Why are we waiting for inept politicians to solve our problems, when we already have everything we need to solve them ourselves? A large enough coalition of leadership and talent could bring forth the resources, strategies, and influence needed to solve any crisis. This is already happening in a very loose sense, but there is plenty of room for acceleration. Imagine the rapid development of a technology like Bitcoin, but across multiple technologies and fields, simultaneously… Some might say “That’s so crazy, it just might work.” I’d like to think so. Please leave your thoughts in the comments. If this idea interests you, I’d like to hear from you. Please follow me on Twitter or email at [email protected] Thank you.

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