If you ever are wedged into a corner you can’t get out of, and a debate begins in front of you on Star Wars vs Star Trek you will likely hear the pro Star Wars anti Star Trek argument that Star Trek is communist. As shown in the video clip above, there’s no money in the 24th century. Economics works differently. If you are aching for specifics on this and other mentions of it, take a look at this article on The Economics of Star Trek, and some ideas on a “Post Scarcity Economy.” Facts from across Stark Trek series and movies are quoted and compared with amazing detail.

I honestly think the author of the above mentioned article has to get pretty creative to make everything work. It’s a bit of a stretch. Believable — basically we’re talking a socialist government where no one has to work, there’s plenty to go around, you can still own stuff, and work is fulfilling and gives you extra perks.

Makes sense. In a couple of books I’ve been reading lately, “Guns, Germs, and Steel”, by Jared Diamond and “Homo Deus: A Brief History of Tomorrow”, by Yuval Noah Harari we see the progression of people from hunter gatherers, where everyone is focused on food production, to agrarian, where a portion of the populace can focus on war, government and specialization, to what may lie beyond that, which we’re perhaps living in the early stages of, where war is not the default mode, and there’s even more extra to be had. Taken to it’s logical conclusion we can see a Star Trek 24th century where economics work differently.

But when I learned about Ethereum, a cryptocurrency cousin, if you will, of Bitcoin, I had an a-ha moment that had me singing “take on me” like I was a boy in the 90s on the streets of Oslo.

OK, So What is Ethereum?

Boy I’m glad you asked.

If Bitcoin was the groundbreaking new concept in currency, where things could maybe be done, like wire transfers without any charge, title/provenance without third parties, etc, Ethereum has all that baked in in a very intentional feeling way. While Ethereum is a currency, that seems to be a secondary aspect of it. It doesn’t try to be the currency as much as what the currency is used for.

In it’s own words, “Ethereum is a decentralized platform that runs smart contracts.” Really, instead of it being a currency that can do lots of stuff, it’s a platform that can be used to do just about anything where trust, value and agreements are involved.

…and what does that actually mean?

You could do a Kickstarter fundraiser, without Kickstarter.

You could start an organization or a country that can have rules, but no need for someone to enforce them.

You could sell something at an auction without ebay or another central party.

You can create markets, keep records, have contracts and rules and have property records without governments, middle men or third parties.

Freelancers could set up contracts that would help their clients get the work they need and help them get paid.

Groups and communities could work together to do large scale investment, or fund and operate their own pool and fitness center.

Wait, I thought this was one of those digital currency things…

The currency part of Ethereum is Ether. Not without value, but not the most important thing in the whole story. Let’s talk about money a little.

I remember a friend who didn’t get a bonus as big as some their coworkers, and when venting about it they said something to the effect of “It’s not the money…it’s the money” that bothered them. Money isn’t just the method by which you pay for goods and services. It’s also a measure of your overall wealth, when the value of goods and future earnings are considered. It’s a measure of your perceived worth by employers. Really, it’s arbitrary. It’s a metaphor.

In 17th century America colonists in the Carolinas used tobacco receipts as currency, for various reasons. This currency was close to barter. The currency wasn’t based on trust in a government, like the post gold US dollar. It wasn’t gold, which itself has value more from scarcity than usefulness.

In the current day, the 21st century, we’re in the knowledge economy. A currency based on labor and commodities isn’t a great fit. So much more of today’s world is about knowledge, intellectual products and investment. There’s a rift between methods of generating wealth and most people that amount to access to capital — not necessarily in possessing it, but in being able to make deals to be able to use it.

Today, in a discussion on employers providing horrible pay for writing jobs Hal Werner posted this great tweet,

It’s not just dystopian, depressing and dead on accurate, it shows how we’re using an antiquated form of currency in our modern world.

We’re also increasingly working in a “gig economy,” where we aren’t bonded longterm to an employer who benefits from our work and keeps the profit. The need for ways to secure payment for services and products beyond the traditional power brokers is desperately needed.

During the last presidential election arguments over Star Trek and Star Wars might have been hard to hear over the arguments between Progressives and Libertarians over the role of infrastructure in the success of business. To sum it up, Libertarians suggested left untethered people have succeeded, while Progressives maintained that without the infrastructure built by government no advancement in enterprise would be possible. Assuming the Progressives are correct that some infrastructure is necessary for industry to thrive, the implication is government is a necessary evil, if you will.

While no one may be a fan of a government ruling over them, taxing them, making them pay tolls, and then dragging with keeping the roads in good condition, etc., the premise is who else will handle that?

Ethereum can be the solution to some of these jobs that a middle man, even a government, would provide. If there were an area that wasn’t highly developed, and didn’t have the township in place to tax residents to provide them with services, a community utility board could be set up via Ethereum to provide those services, raising the capital needed, setting up rates and rules. A farm to supply local residents with food could be set up, not unlike a co-op, whith it being funded and run via Ethereum contracts.

Ethereum enables crowdfunding, authentication, validation and escrow to allow large scale projects or contracts where all parties can be monitored, held accountable and compensated fairly. Understood this way, we see while Bitcoin is primarily about being a currency, Ethereum’s currency, Ether, is almost an after thought. It’s purpose and strength is it’s structure. It’s not disruptive the way Bitcoin might shift power from fiat currencies. It could disrupt all the industries that profit from regulating cash and contracts, which are quite a few.

Back to The Future

Remember Star Trek? This whole thing was supposed to be about Star Trek. :)

How could economics work differently in the 24th century? In the Star Trek shows and movies there doesn’t seem to be a dictator, a big police presence or very much government at all. There is some disagreement and rebellion, but not massive. There’s still private property, and people do have money, but the suggestion is that lack of money won’t make you poor or starve.

Perhaps over time the people of Earth learned to pull together, not managed by those in control of arbitrary signs of wealth or power like bankers, mortgage companies, title companies or agencies. They learned to crowdfund, auction, make contracts for labor. They built contract managed utilities, roads, bridges, universities. They established a planetary navy and an organization to explore and protect space.

How did they solve world poverty and hunger, and make it possible to people to live without doing anything?

They solved providing for the basic needs of people through the same organizations that try to achieve that now. Oxfam, The Gates Foundation, The Red Cross. They’ll employ the same methods of gathering support, encouraging development and support, and getting people to be self sufficient as the more prosperous will use. People will donate their time, energy and resources, just as they do now, but the relationship between effort and knowledge and the benefits won’t have the gatekeepers there that we have today. Life may not be a meritocracy, but it will be just a bit closer to one.

The benefits of charity won’t need to just help people temporarily. They can help people help themselves, help them prosper and be self sufficient, and the contracts that power this can continue to manage the production of resources for all who need them. A benevolent, socialistic government wouldn’t be needed.

The world of Star Trek won’t be a Libertarian paradise. It won’t be a pervasive Socialistic state. It will have a foundation that allows pooling of resources, establishment of trust, contracts that get things done, without the need for government or investment banks, title companies. Companies that profit from providing access to products (Wal-Mart, grocery stores, etc), and companies that act as intermediaries between those who need writing, design, engineering and those who provide those services might find the world a very different place, where it’s possible for people to more directly profit from their work. Farm workers will be able to buy their own farms and work with consumers. Renters will be able to collectively build and run their own apartment complexes.

And all of this might be powered by Ethereum, or something not entirely different.