How Blockchain Incentivizes Social Good in Private Companies
Throughout history, humanity struggled to implement an economic and political system that benefits everyone in society. Most nations today exist under a democratic capitalist system. They arrived at this system after the fascist, socialist, and communist regimes in the 1900’s failed. In the 21st Century, the concept of social good is gaining steam as the new way to do business.
In the current political system, though, there often exists a divide between individuals and corporations.
With blockchain technology, governments can incentivize private businesses to contribute to the needs of the individual. AI and big data can provide real-time feedback to the government on the effectiveness of government initiatives run by private institutions.
Blockchain driven social good can lead to greater prosperity in which government and corporations work together to achieve social goals.
Blockchain driven social good
In a social democracy, the government uses central planning to distribute everyday resources such as energy, housing, and education. The free market, on the other hand, distributes consumer goods.
Taxation currently funds government initiatives. However, implementation is not always successful. A government that achieves a high state of welfare requires a high amount of taxation, which could deter corporations and entrepreneurs.
With the blockchain network, corporations can implement social good initiatives on behalf of the government. Companies are held accountable through smart contracts, and the carry through of these projects act as an alternative to tax payments.
Removing taxation from a crowded economy
Historically, governments are less effective at implementing projects compared to the private sector.
By assigning social good initiatives to corporations, wealthy individuals and businesses can add value to the social and economic system in non-monetary ways. Businesses can leverage their current resources and create social initiatives that act as an alternative to tax payments.
This win-win situation will help businesses increase in profitability and ensure that government initiatives are more efficient.
For example, take a government initiative to require one hundred rural-area students to take an online course. In a blockchain driven social democracy, a private online college can apply to deliver this initiative. They then deduct their contributions from their taxes. The owner can, therefore, accept students who are a part of the initiative on top of their existing cohort.
Instead of welfare or universal basic income, the government decreases the amount of money dedicated to the public funds. Instead, they allocate this to private companies that provide requirements such as food, housing, education and material needs.
Each specific requirement can have its token which is supported and backed by the government.
Every individual has access to the same amount of tokens for each requirement. They can spend this digital currency however they choose on various marketplaces and with vendors. Smartphones then collect big data from the various government initiatives.
The big data could then, through artificial intelligence analysis, offer informed strategies on future policies. It can also monitor the success of current initiatives.
Using smart contracts to enforce accountability
An ethereum network will ensure successful implementation of government initiatives. Companies are bound by smart contracts to provide promised goods and services at a desirable satisfaction rate.
When a government token is used to purchase a good or service, the individual fills out a survey that asks for their satisfaction levels. Individuals need to respond to use their remaining tokens and businesses need to pass a quality benchmark to qualify for a tax reduction.
The real-time data is open to the public through a distributed ledger.
In the event where a business attempts to cheat the system by providing old or broken goods or poor quality service, the contract will not move forward. They thus don’t qualify for a tax deduction or exemption, and will have a poor rating system visible to everyone on the network.
To date, the implementation of socialist ideas failed to reach their ideals because humans intrinsically place their self-interest first.
In a blockchain driven social democracy, selfish actions benefit the system. In this way, individuals are profit seeking, but profit comes from offering social good.
With this shift, a greater sense of equality can exist. However, the technology requires cooperation from the government to outsource their work and power.
If the government can relinquish their control and trust the people to make decisions themselves, the world may have a more effective and responsive government that provides equal opportunity for all.
Image credit: Wikimedia Commons
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