282
13 Democratic Capitalism
Optimization is based on a one-dimensional goal function that allows one to apply
“>” or “<” operations to determine which solution is better. However, a precondition for this is that the system under consideration must be mapped onto a onedimensional function, which is often a gross over-simplification, as I have pointed
out before. Consequently, one can only move up or down, while a society needs to be
able to do more than profit maximization. For example, it wants to simultaneously
improve education, health, and environmental conditions as well. This calls for a
multi-dimensional control or coordination system.
In a complex non-linear system, whatever goal function we choose, we would
often find one optimum solution, while there are often multiple solutions that
reach 95% of the maximum performance. Among these solutions, there will typically be solutions that also perform well from the perspective of other goal functions. We are interested in these solutions with multiple high performance, which are
usually eliminated by classical optimization.
Therefore, I propose to introduce multiple currencies, which are not seamlessly
exchangeable against each other. These currencies would, in a sense, be administered
through separate bank accounts. Each currency would be defined by a particular
measurement procedure. In other words, a measurement would define a new kind
of currency, which could be used to establish a new kind of incentive, or just an
additional feedback effect.
The “Finance 4.0” system (or shorter: “Fin4+” system) we have developed does
exactly this.
55 It combines Internet of Things and Blockchain technology in order to
turn measurements into currencies, which can then be used to create feedback effects.
Such multiple feedback effects enable the control of complex systems, or even the
design of self-organizing or self-regulating complex systems, as I have discussed
them before.
In this way, it would be possible, for example, to separately incentivize the
reuse of different kinds of resources. One could separately account for CO 2 , noise,
and various other environmental impacts, but also positive effects such as health
and education. One could furthermore reward environmental-friendly production,
socially responsible management, and cultural engagement.
While today, those companies often grow the fastest that neglect good working
conditions and the protection of the environment, a socio-ecological finance system
such as “Fin4+” could promote profitable production that would also generate social,
environmental, and cultural benefits for our society.
By the way, having multiple currencies would dramatically expand the space of
possibilities. Say, we are faced with a win-lose situation, where one person would
make a lot of profit, if the interaction took place, but the other person would suffer
from a loss. Such an exploitative situation could be turned into a symbiotic winwin situation, if the first person would make a compensation payment.
56 Indeed, a
currency transfer would create a profitable situation for both.
55 http://ebook.finfour.net; see also [7].
56 Interaction Support Processor, WiPo (August 13, 2015) https://patentscope.wipo.int/search/en/
detail.jsf?docId=WO2015118455.
13 Democratic Capitalism
Optimization is based on a one-dimensional goal function that allows one to apply
“>” or “<” operations to determine which solution is better. However, a precondition for this is that the system under consideration must be mapped onto a onedimensional function, which is often a gross over-simplification, as I have pointed
out before. Consequently, one can only move up or down, while a society needs to be
able to do more than profit maximization. For example, it wants to simultaneously
improve education, health, and environmental conditions as well. This calls for a
multi-dimensional control or coordination system.
In a complex non-linear system, whatever goal function we choose, we would
often find one optimum solution, while there are often multiple solutions that
reach 95% of the maximum performance. Among these solutions, there will typically be solutions that also perform well from the perspective of other goal functions. We are interested in these solutions with multiple high performance, which are
usually eliminated by classical optimization.
Therefore, I propose to introduce multiple currencies, which are not seamlessly
exchangeable against each other. These currencies would, in a sense, be administered
through separate bank accounts. Each currency would be defined by a particular
measurement procedure. In other words, a measurement would define a new kind
of currency, which could be used to establish a new kind of incentive, or just an
additional feedback effect.
The “Finance 4.0” system (or shorter: “Fin4+” system) we have developed does
exactly this.
55 It combines Internet of Things and Blockchain technology in order to
turn measurements into currencies, which can then be used to create feedback effects.
Such multiple feedback effects enable the control of complex systems, or even the
design of self-organizing or self-regulating complex systems, as I have discussed
them before.
In this way, it would be possible, for example, to separately incentivize the
reuse of different kinds of resources. One could separately account for CO 2 , noise,
and various other environmental impacts, but also positive effects such as health
and education. One could furthermore reward environmental-friendly production,
socially responsible management, and cultural engagement.
While today, those companies often grow the fastest that neglect good working
conditions and the protection of the environment, a socio-ecological finance system
such as “Fin4+” could promote profitable production that would also generate social,
environmental, and cultural benefits for our society.
By the way, having multiple currencies would dramatically expand the space of
possibilities. Say, we are faced with a win-lose situation, where one person would
make a lot of profit, if the interaction took place, but the other person would suffer
from a loss. Such an exploitative situation could be turned into a symbiotic winwin situation, if the first person would make a compensation payment.
56 Indeed, a
currency transfer would create a profitable situation for both.
55 http://ebook.finfour.net; see also [7].
56 Interaction Support Processor, WiPo (August 13, 2015) https://patentscope.wipo.int/search/en/
detail.jsf?docId=WO2015118455.