Forming a DRO ecosystem today.

[Joel Richard]

I have an idea I want to run by the community.  It's rough so forgive me please.  I am working on polishing it for better presentation but would like some peer review of it now if possible.

 

I'm currently working on an idea that might allow DROs to take shape in today's world.  It involves the use of blockchain technology to build a completely decentralized eBay like world market that people choose to enter by agreeing to the terms and behavioral guidelines.  The advantage of using the system for transactions are reputation and protection.  An ID number is assigned permanently in the system and effectively tied to a real person and ID#s are managed by popular concensus in a decentralized manner but require a personal acceptance into the system (almost clan like).  Through the blockchain, member behavior is public.  All transactions are subject to eBay like purchase complaint resolution.  Proof of any interactions will be obvious and public.  Also the fairness of the transaction will be subject to ratings and even the freezing of an ID# until sufficient number of people agree to concur, in the system, that the dispute had been resolved.  Once we establish that system, the DROs will have to work within that ecosystem and risk losing participation in a valuable market if they behave poorly.  You could literally have blockchain legal complaints resolution.  Once a crime is committed an ID#/person can immediately report it.  This is where a DRO steps in.  Anyone can offer to resolve disputes and act as a third party.  Obviously, not every DRO will even appeal to you in any way but you end up at least with your neighbors stepping up and saying "yeah man, I got your back.  Let's make a DRO and make a few bucks helping people in our neighborhood."  But that last example is how it would start.  Through trial and error this market will decide what kind of DROs you actually really need versus what you used to think we needed.  All of this would begin operations under state rule.  But through such a system's growth, government would become less and less relevant.  The details of what happens after that should become more obvious after the passage of time but I expect us to achieve a model that can evolve and compete with other such models in a free blockchain decentralized market.  

It would be important to have a decentralized dispute resolution within the system that cannot be perfect but would allow to remove incentives to ban ID#s from the system for trivial reasons.  Perhaps for every complaint will require 10 ID#s/people to vouch for you that the dispute has been resolved etc. . still working on that part.  In short, it would require a real interaction with your local community to gain traction and the value of the people operating within a given ecosystem would drive up the trade value of its currency.  In effect, the community itself would act as a DRO.  I also envision a Linkedin style profile that is permanent within an ecosystem or within all ecosystems that will follow you for your entire life and is not profitable to fake.  

Anyway, I'm trying to find holes in the idea so I would love it if you would think about it and let me know where you see it failing or how to improve it.  
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[GuzzyBone]

I have wondered myself why DROs don't already exist, since there is obvious and large demand for WIN WIN dispute resolution in a State society of arbitrary LOSE LOSE "resolution".

Then I remembered things like all the "laws" that will get you thrown in jail for "practicing law" or "practicing medicine" without obtaining explicit permission from the oligarchs of violence.

Unfortunately, I think the threat of jail for providing legitimate competition to the State system is what keeps people from doing it already.

However, the internet is changing all that and making enforcement quite difficult if not impossible in some of these areas.
Much like how Liberty Coin was violently crushed and pillaged, but yet BitCoin seems untouchable.
How "Napster" was crushed with threats of violence, yet "The Pirate Bay" is still up and running (despite a number of violent raids and seizures).

The internet is the rise of Anarcho-Capitalism and the living proof that it "can be done" and is "the best way to do it".

[SWMA]

slightly offtopic - bitcoin isn't "untouched". Remember the silk road raid? I strongly suspect they are using that massive number of bitcoin to keep the price down artificially, they can effectively at any point crash the market if they want to, and they did a few times just to lessen  confidence in it

[Joel Richard]

I would proposed a more community based approach.  Say in a major city a coin would be the currency of the community with zero privacy between members.  Members can file automated disputes in the decentralized system which would require either personal face to face resolution or a minimum number of members to validate or invalidate the claim.  The only punishment this system needs to use is removal of a person from the system.  People would have the ability to remove bad actors or DRO's that behave poorly through decentralized economic austracism with some fairness built into it.  There would have to be obvious incentives to use it and this would not be simple but I think very possible.  
There is always the risk of speculators driving up the price irrationally like has happened to bitcoin.  This is argueably the most effective attack against decentralized currencies.  Making an obvious bubble out of bitcoin is what set it back for about 10 years.  As different communities build these types of organisations, trust will be easily shared between cities then the world.  But fundamentally has to be tied to openess and easy identification of all participants.

 

This would all be decentralized so no single participant could be targetted and have much effect on the ecosystem.

[Joel Richard]

This looks promising. http://techcrunch.com/2015/05/05/shocard-is-a-digital-identity-card-on-the-blockchain/