Imperfect People and the Social Ideal

In your posts, you often state that under ancap, all people (or most of them) will not be prone to violence (and those who are can be “reprogrammed”), which will allow for the construction of a violence-free society. But hold on! With ideal people, one could build an ideal society based on almost any ideology—even communism in its early idealized conceptions. Any modern social structure, however, is built on the fact that people are almost always imperfect—emotional, foolish, aggressive, greedy, cowardly, and so on—and the social order must neutralize human flaws. How can ancap exist in a society of imperfect people, if even now criminals are stupid enough to steal right under cameras, and in the absence of a universally recognized police force, they will become completely brazen, and their capture/shooting by private security companies will become difficult due to the scale of crime and overloaded courts? Will this not lead to a rapid slide of society into a wild state, where even adequate people are forced to be in a permanent state of war against all?

Anonymous question

You are right; many things can be built from ideal people. That is precisely why Bitarch and Voluntarist—the authors of the posts regularly appearing on this channel about building a non-violent society—do not bother with building specifically ancap; for them, the economic model is secondary, and the absence of a central authority is secondary, while the primary value is non-violence, in its narrow sense of the absence of physical coercion.

The doctrine of anarcho-capitalism assumes that the human inclination toward physical coercion will not undergo serious changes. The only thing required for its triumph is the emergence of a critical mass of technologies that make decentralized production and trade more economically viable than centralized ones—this is if we proceed from a materialist position, where being determines consciousness and the base determines the superstructure. If, on the contrary, we assume that consciousness shapes being, then the triumph of ancap requires a critical mass of people for whom libertarian ideas have significant value. To me, it essentially makes no difference which end of the loaf I bite into; it tastes equally good from both ends.

When decentralized technologies dominate everyday life, it means that an uber-police force will arrive faster and provide service more cheaply and with higher quality than a police squad from the Ministry of Internal Affairs; therefore, the Ministry will lose the economic competition for the client and die off. And if people steal right under cameras, decentralized technologies will more likely provide the ability to issue them a fine right under those same cameras. And if they wave at the camera instead and claim that they are, say, renting this car, then instead of a disproportionately large fine, a modest rental fee will be debited from them in favor of the car owner. Or perhaps I am talking nonsense, and the “market” will decide some other way.

When libertarian ideas dominate society, then even under conditions of technologically driven centralization of a large number of industries, people will still value freelancing or freelance-like relationships relatively higher, and the owner of the production facility will have to adapt to this demand if they wish to secure a workforce. People will join the police, but will still view their patrol crew as an autonomous entrepreneurial unit, with its own permanent clients and obligations to them that mean far more than formal subordination within a police department.

The most terrifying thing for libertarianism is an increase in the efficiency of the centralization of violence. In the middle of the 20th century, such efficiency was at its maximum; humanity fought with armies of millions, and there was not the slightest prospect for building a libertarian society. Now, an army of a hundred thousand is considered large, and one hopes that decentralization will continue at an accelerating pace. Cheap and effective decentralized violence, which scales very poorly as the number of involved persons increases or additional capital is invested—this is exactly what is required so that even in the event of armed conflicts, they quickly fade away without further escalation.

As you can see, it is not at all necessary to indulge in empty dreams about how chipping will make everyone “sweethearts and darlings.” Instead, one can indulge in empty dreams about how total armament with handheld weapons—effectively and as painlessly as possible incapacitating a person, but having low lethality—will make everyone “sweethearts and darlings.” As for my time free from empty dreams, I prefer to build a local libertarian community where all necessary skills of interaction between people are acquired through simple habit—and these habits will strongly conflict with the habits of obeying the state or any other centralized force.

No one needs a Leviathan. Hobbes is sad.

A couple of lectures on crypto

Ekaterina Schulmann in her program introduces a distinction between news, meaning that which attracts attention, and events, meaning that which has consequences. For example, when I announced the debates between Litreev and Milov, it was news, but the debates never took place because Navalny returned to Russia, and everyone stopped caring about trifles.

A bit later, I announced a doublet of lectures by Alexei Nefedov and Alexander Kotov as part of the Ural libertarian lecture series. There was no broadcast of the lectures on the day they were held, and I soon conveniently forgot about them. But this event had consequences: after a considerable amount of time, the Ural libertarians channel quietly uploaded the recordings of the lectures, and I finally watched them.

1. Alexei Nefedov. Bitcoin and the Theory of Money.

The lecture first analyzed why money appears in human collectives at all, what function it serves, which types of money achieve wider distribution, and which rely solely on state coercion. Then it briefly described how Bitcoin is designed and why this construction ensures its wide adoption and price growth. Finally, it explained why Bitcoin never actually became money, but instead turned into a defensive financial asset.

The parts about economics were clear and interesting enough for me. Where it concerned technology, I didn’t dive too deep, trying not to be intimidated by phrases like “quantum superposition.” I learned some specific new details, such as how the rules for the Bitcoin network’s operation are changed, or how the price forecast was built based on the stock-to-flow model.

It seemed to me that it would have made sense to expand the topic of altcoins a bit more, but Alexei is a Bitcoin maximalist and apparently believes that if you don’t talk about them, they will disappear on their own.

2. Alexander Kotov. Technological Solutions to Social Problems.

I hoped to hear ready-made recipes in the lecture, but it turned out to be more philosophical than practical. Interestingly, Alexander believes that state actions are not the cause of problems such as, for example, censorship in social networks, but that these are purely social problems. It seems to me that in the absence of a state, these problems would at least be less acute, because attempts to silence opponents are linked precisely to the task of political dominance, which is nonetheless a state phenomenon. Nevertheless, several interesting recipes were mentioned in the lecture, for example, regarding moderation in large social networks that would significantly reduce social tension—through subscriptions to rating agencies that would act independently of the social network’s administration and provide services directly to its clients.

The lecture turned out to be quite sobering; it became much clearer to me why there is such low mass adoption of decentralized social networks, and now I am not entirely sure that I want to bother with it myself—at least as long as centralized solutions provide some room for maneuver.

At the end, Alexander demonstrated how a hardware wallet works; it was curious but not very clear, however, it is evident that it is a fairly paranoid piece of hardware that is unlikely to allow the user to lose their money in a very stupid way. Unfortunately, I don’t have enough money to be that obsessed with security, but it was interesting to watch.

What reforms, measures, and methods must be undertaken for a post-Soviet country to become truly 100% decentralized?

The Average Ukrainian

To accomplish this task, it is not enough to simply, for example, give communities the right to keep most of the taxes: such rights are easy to give and easy to take away. It is important that the reforms be very difficult to reverse. In other words, they must improve people’s lives very quickly and very significantly.

How do you quickly improve people’s lives in the poorest country in Europe? Only by opening the country to a very wide flow of investment. So, the literally first package of proposed reforms is a serious reduction of state intervention in the regulation of the economy.

Right off the bat—the first thing—the abolition of customs, along with duties. If other states want to restrict the export of goods to Ukraine or the import of goods from Ukraine, that is their right. But in Ukraine, there is no one to deal with this nonsense; if people want to trade, they trade.

Second—granting communities the right to take any state functions under their own jurisdiction. If they wish to collect all taxes themselves and set their rates—be my guest. After that, let them negotiate with the center on how much money they are willing to provide as a dowry for those issues they cannot handle on their own. If they do not wish to decide anything themselves—be my guest; the center will appoint people, set the tax rates, and carry out full administration until the citizens gather for a meeting and declare that they have had a nice rest and are ready for self-governance again.

How to choose a president? You don’t need to choose him; sell this unpaid position at auction, for one year without the right of extension, and as for the powers, leave only the right to veto laws passed by the Verkhovna Rada. But that is not urgent; that is already ornamentation. If you don’t want to make money by selling the presidential office, do as they do in Switzerland—it’s not bad there either.

And what about the south-east? There, a Donetsk Sich is created. Since the country is decentralized, few communities will dare to maintain serious armed forces, but here is a region where it is vitally necessary. This means a safari park is needed, where everyone interested in hunting separatists will go, as well as representatives of volunteer organizations who will ensure that the hunt is conducted without poaching. You arrive, pay for a trip—and off you go. Whatever you capture is yours. The task of the Sich leadership is to organize coordination so that they don’t shoot each other; that’s what the money is collected for. And to promptly conduct the demarcation of those districts whose residents have decided to reclassify themselves from hunting grounds to a full-fledged territory of the Sich, handed over their separatists for trial, and elected representatives to the Sich self-government—and that’s it, the residents of the territory have regained their status as human beings. I don’t know how effectively this will reduce the size of the hunting grounds, but the question was about what measures are needed to ensure decentralization. Well, without a decentralized volunteer army, you will not hold a decentralized country.

It turns out I didn’t even invent this term. I wouldn’t be surprised if all the other advice also turns out to be sheer banality.

Rally for Internet Freedom

I am currently watching the broadcast of the Moscow rally. And simultaneously, news is coming in like “in St. Petersburg
activists have blocked the Roskomnadzor building”
.

This is the main entrance; Roskomnadzor is blocking its own anus

Everyone, as usual, considers themselves a strategist when viewing the battle from the sidelines, but it seems to me that it is wrong to organize simultaneous actions in different cities. I mean, who will be closely following St. Petersburg today when there is Moscow? On the other hand, imagine how cool it would be if every day one large, awesome, well-prepared action took place in a new city! Let the actions be different in style, in format; let people try to outdo one another. Let them say: well, in St. Petersburg it was okay, but then in Krasnodar it was absolutely mind-blowing! Meanwhile, people in each specific city, by the time it is their turn again, will have had time to rest, save money, gather enthusiasm, see others’ creative ideas, and come up with their own.

Thus, by shifting the focus from place to place, one could set up a truly indefinite nationwide public campaign, rather than another “shouted and dispersed” event.

This is not a rally, this is a queue for a rally

Why is there so little libertarianism in the libertarian party and is everything centralized?

anonymous question

I received a whole series of questions on a similar theme, and I chose the least acute phrasing that allows for a substantive answer.

The fundamental documentary description of the libertarian party, as with any other political party in Russia, is defined by the Russian law on political parties. The party made four attempts at state registration, making amendments to the charter each time to comply with the Ministry of Justice’s requirements. Eventually, the Ministry of Justice made it clear that there would be no registration without a green light from the presidential administration, and at the 2017 congress, a decision was made to end this farce until the wind changes.

But the charter remained: a charter of a vertical structure consisting of regional branches subordinate to a federal committee, with a congress convened by the federal committee according to representation norms adopted by the federal committee, and with a federal committee elected by the congress. Any Russian party created from the top down maintains full controllability thanks to such a layout until it is decided to tear it apart—after which alternative congresses, committees, and the like magically emerge, and the party is either seized or disappears.

The LPR, however, was created from the bottom up. This does not mean that within the framework of the same charter it suddenly becomes capable of meaningful activity. It means that the values of joint activity for the purpose of spreading the libertarian agenda prove to be higher for people than any formal decisions made without their participation or against their will. Therefore, the overall success of the party is greater the less attention party members pay to the formal side of party activity and, accordingly, the lower the notorious controllability is.

At this point, it’s worth asking why call itself a party at all, rather than a libertarian movement or something of the sort. What difference does it make? Historically, it so happened that this particular entity has this particular name. As long as the costs of keeping the name and charter documents are lower than the costs of changing them, everything will remain as it is; just don’t confuse the map with the territory. Next, you’ll be asking why a character named LPR-chan doesn’t project the official point of view of the party!

So the main thing is to ensure powerful momentum, engage new people as supporters, and compel outsiders to pronounce the word “libertarianism” without a hitch; whether a trip to the shooting range or bowling is documented as a meeting of the steering committee of a regional branch is completely unimportant.

LPR logo (by the way, a different logo is described in the charter, but who cares!)

Yes, just in case: donations to LPR-chan do not count as party dues.

Tell us about decentralized exchanges, their advantages and disadvantages

anonymous question

Well, at least someone is no longer asking why libertarians push for bitcoins, and is starting to ask rather specialized questions.

Why are exchanges needed

An exchange trader is the best friend of any cryptocurrency user because, in the hope of buying low and selling high, they provide the cryptocurrency system with the necessary liquidity; and the greater the liquidity, the smaller the difference between the buying and selling price of the currency (spread), the smaller the rate fluctuations (volatility), and, accordingly, the higher the attractiveness of crypto as a means of payment for goods.

A classic exchange (currency, commodity, stock — it doesn’t matter) is structured this way. The exchange acts as an intermediary that maintains a registry of assets in client accounts, provides the ability to place trading orders and close them with opposing orders, and, of course, to deposit assets into the exchange and withdraw them from it. The vast majority of cryptocurrency trading transactions and exchanges of cryptocurrencies for fiat are conducted on such classic centralized exchanges.

Naturally, any crypto-enthusiast starts to cringe at the mere word “centralized.” Moreover, these exchanges generally live up to their reputation: they are regularly hacked, with significant sums of money stolen from wallets, and there are complaints regarding possible market manipulation, fake volumes, and so on.

What is special about decentralized exchanges

Therefore, for several years, there has been a trend in the cryptocurrency community toward creating decentralized exchanges. At the very least, it is relatively easy to make an exchange hybrid: orders are processed on a central server, while private keys to the wallets remain in the hands of the users, and accordingly, all transactions are recorded on the blockchain. This is the principle on which, for example, Waves, the largest hybrid exchange in Russia, operates. But a question immediately arises: in which blockchain, specifically, should the transaction be recorded if I am buying, for example, ether with bitcoins?

What qualities must a blockchain possess to ensure the operation of a decentralized exchange? First, the blockchain must allow any tokens to be issued on its base. This is possible for the aforementioned Waves, Ethereum, and many others. Second, the blockchain must be as fast as possible. If blocks are written once every ten minutes, as with bitcoin, it’s not serious at all. The performance leaders today are blockchains based on the Graphene engine — from 3,000 operations per second, with new blocks written to the blockchain every three seconds. With such lags, one can already trade normally. Moreover, with such an engine, even exchange orders can be written to the blockchain, which means the possibility of creating not hybrid, but fully decentralized exchanges.

The oldest and most venerable Graphene blockchain is bitshares, but there are newer competitors, the full list of which is pointless to provide. I will only note the deex project, which is interesting for three things. First, based on the Graphene blockchain, not only a decentralized exchange is implemented, but also a decentralized messenger and a number of other tools. Second, its own network of ATMs is being launched, and bank cards are on the way. This, of course, no longer has anything to do with decentralization, but it has a huge impact on the convenience of the technology’s penetration into the masses. And third, one of the LPR members participates in the work on the project, and this is, of course, a strong reason to distinguish deex from the others.

And finally, about the downsides of decentralized exchanges

If you want to trade there using fiat, it won’t work directly. First, tokens corresponding to that fiat are purchased through a separate gateway, and then trading is conducted with them. As for how to exchange these tokens back into fiat — ask something easier. Perhaps the notorious deex will allow this in its ATMs, but in general, the problem is not solved. Therefore, the main niche for decentralized exchanges is the exchange of different types of crypto for one another.

As a result, volumes on decentralized exchanges are significantly lower, which means relatively low liquidity and a high spread.

And finally, high blockchain performance does not come for free. Instead of honest POW, as with bitcoin or ether, decentralized exchanges lean toward POS, as with Waves, or even DPOS, as with Graphene blockchains. Each new step that speeds up operation reduces the overall level of system decentralization, as it decreases the number of nodes verifying transactions.

So love the exchange traders; they take high risks — all so that we, simple users, don’t have to worry our heads with all these aforementioned high matters.

Especially since bitcoins for LPR-tyans can be transferred even from a regular bank card, without resorting to such complex tools as decentralized exchanges. Here, give it a try: 1A7Wu2enQNRETLXDNpQEufcbJybtM1VHZ8