Before I write this blog post, what does this image mean to you?
Zertify, Gamidox, and Exoquant (ZGE) are NOT the applications that will change everything. Rather, the hack-applications that follow on the ZGE data suites will, in fact, challenge the idea that periodic economic collapse and hard-fought restructuring is a necessary inevitability of the human condition.
One reason is that it is becoming unstable. However, by far the more important reason is that it is very inefficient. The underlying notion that competition alone can determine a winner is wasteful because the time, energy, and resources required to battle, kill off, and dispose of an opponent may exceed, many times over, the value of a win.
Can truly winning only happen when the opponent is truly dead? Can a student win by learning even if they can obviously be vanquished by their teacher? Does a teacher win by living among productive citizens, as they themselves become vulnerable elders? Can such an exchange form without there necessarily being a financial, or even governmental, intermediaries. Today, quite the opposite is happening in companies and communities facing both knowledge gap and layoffs.
The legal system is very expensive to maintain. Global military projection is certainly not cost free nor are the subsequent defenses. Even the so-called competitive “college degree” and “intellectual property” are outliving their accessibility, and therefore, usefulness. Ironically, it will be the financial system itself that is undermined by the scarcity of the lifeblood money. People will adapt to new forms of enterprise as they have for millions of years. This is what Zertify accellerates.
It would be vastly unfortunate for civilization if the financial system were to become ineffective prior to human’s natural evolution to a high order of economics. In fact, it seems that the failure of society to evolve is the only thing keeping the current financial system in play – there is no other game in town. Think about it; if money does not represent your productivity, why would you work in exchange for it? When you can no longer “harvest” your own productivity, why would you sow that field? People would sow a different field. This is what Gamidox provides.
History shows that the darkest depths of re-organization preceded prior leaps of human civilization. But is that ultimate, inevitable competition and sacrifice actually necessary, except to measure the old system out of existence. People are already quite organized, why do they need to be re-organized except to fit within a measurement system that has outlived it’s usefulness, applicability and relevence. Exoquant allows the new humanity be measured into a new existence.
The ZGE applications provide the intermediate step that never existed at any other time in history. ZGE are built and structured upon trust networks and Internet connectivity. Why not start rebuilding now while we still have a chance to get it right, very right.
Today, I am releasing an outline of the first of three sections of my upcoming book release called:
Hacking The Financial System; How To Change Everything Without Changing Anything.
This book will be a step-by-step instruction manual for correcting the relatively tiny flaw in Market Capitalism that is driving civilization into an unsustainable future. All the tools that we need to correct this flaw (and consequently most of our planet’s most pressing problems) exist today and are readily available to everyone. Does it sound too good to be true? There is a hitch:
It is easier done than said.
For example: it was not until human civilization was “ready” to realize that the Sun was the center of their universe, and not the Earth, were we able to access all of the science and technology that resulted from that profound knowledge. Yet all the facts were clear and present to humanity for millions of years prior.
The same may be true for the next economic paradigm, as I will describe in this book. All the fact are clear and present today, it is only our ability to shift a simple observation that will determine the advent of a sustainable future that seems so daunting today. I am confident, with reservations, that we can do it.
I would appreciate your feedback
Please find the table of contents below for the first section of the book. Section 2 and 3 will be posted later. The appendix will have case studies of how we are deploying The Value Game in the Construction, Aviation, software development, and Philanthropic industries. I hope that these early demonstrations will help the entrepreneurs among us realize that there may be an alternate business method that is, in a very tangible way, vastly profitable.
Find PDF link below:
Hacking The Financial System:
Table of Contents
Factors of Production
Part 1: Hacking The Financial System
Part 2: The Accounting System Hack
Part 3: The Institution Hack
Part 4: The Wall Street Hack
Part 5: The Currency Hack
Part 6: Evading The Antigen
Next Whitepaper: How everything changes
Final Whitepaper: How Nothing Changes
Appendix: Progress to date
This is the final post of the Financial System Hack Series. Contrary to conventional wisdom, the currency is the last hack, not the first. Only after Zertify, Gamidox and Exoquant are established would it be possible to introduce a currency that could compete, if not hedge the dollar.
With Zertify we can estimate the probability that a collection of knowledge assets will be able to execute a business plan some time in the future.
With Gamidox, The Value Game is played where several communities interact around a shared asset such as a condominium, airplane, school, hospital, road, car, or any “product” that has socially redeeming value.
These interactions are measured such that we can assign “value” to the game with the Exoquant algorithm.
If we can predict the probability that the interactions carried out by communities of people (relative to a product) will have a known value in the future, we can represent it as a “cash flow” with a known volatility (risk). Now, combining many interactions carried out by many communities around many products with known volatilities, we can pool the predicted cash flows into one large diversified cash flow. Next, we can cut the large flow into “bonds”, which we can extrapolate to net present value and to fund the community activities. This very similar to the way that corporation form and raise money – except without the corporation. While banks continue to issue Debt Bonds, communities will issue Innovation Bonds in parallel
In the old days everyone carried gold around with them to engage in trade. Since gold was heavy, bankers let people keep the gold in their vaults and they wrote little chits that represented the gold. After a while, people just traded the chits and it was no longer necessary to convert back to gold with each transaction. Eventually, the gold standard was eliminated altogether and people just traded the paper that now represents their future productivity (debt), not necessarily gold.
Likewise, after a while it would no longer be necessary to convert the community currency into dollars. As the dollar slowly starts losing it’s value under the weight of the debt load people will just trade community currencies. All of these values are made visible and validated from Zertify, Gamidox, and Exoquant data.
The antigen will not be triggered because this is exactly the same way that corporations interact with banks to capitalizes and securitizes dollar debt, the difference is that we are capitalizing and securitizing community innovation by measuring data, information, knowledge, innovation, and wisdom. A currency of abundance can then replace the currency of scarcity.
Corporations and government can continue activities to the degree that they produce socially redeeming value by simply purchasing innovation bonds from the people with their dollars – if they’ll accept them.
In the first post of this series, we identified the 5 components of a financial system and suggested that Zertify, Gamidox, and Exoquant would serve to simulate their functions in a parallel economy before ultimately being adopted completely.
In this post we will identify the hack on the Wall Street Financial instrument regime. Although exoquant is a bit technical, the basic hack is quite simple:
Therefore, a currency backed by debt and a currency backed by innovation are both backed by future productivity. As such, two currencies backed by the same underlying asset are fully convertible with each other. Water dissolves water and innovation dissolves debt.
Here is how the Wall Street algorithm works:
The Exoquant Analogy:
In the first post of this series, we identified the 5 components of a financial system and suggested that Zertify, Gamidox, and Exoquant would serve to simulate their functions in a parallel economy before taking over completely.
In order to accomplish this, we need to start with an accounting system hack. Fortunately, standard accounting practices are quite robust with double entry balancing of assets and liabilities. Luckily, the problems only arise with the definition of what is an asset and what is a liability. That is a relatively easy jailbreak.
The Price Is Wrong
The problem is that we “price” assets from low to high, from bad to good, and from loser to winner, etc., with little regard for proximity, environment, community, or time, etc. The financial system needs to artificially create losers in order to price the winners. This is fairly obvious for tangible assets like cars, tomatoes, and real estate, but not so much for so-called intangible assets like people. This is hugely inefficient on so many levels and therefore vulnerable to attack.
The collaborative advantage
Zertify classifies human knowledge assets on a scale of 1-6 beginning with “teacher” and ending with “student”. Students and teachers do not compete with each other and therefore intermediate levels represent various degrees of collaboration, not competition. The teacher bias represents supply of knowledge and student bias represents the demand for knowledge, this establishes a trade vector in our proto economy.
Technically, the 6 segments represent 6 standard deviations on a normal distribution. This allow for communities to organize around their diversity rather than recoil among their similarity. This arrangement also allows the for the usage of an important body of predictive mathematics.
This simple hack is important because it is benign to the current economy and will not trigger an antigen. Corporations, governments, and communities already seek to match the right knowledge asset to the right demand asset for knowledge – this is actually improved under the new accounting system.
Therefore, the hack is true to the math because it provides the existing financial system with an equivalent predictive asset while eliminating irrelevant bias and costly competition.
The objective would then be to move away from the resume system and establishing a community knowledge inventory system under a commons based ontology. Everyone would have their individual API which they own, manage, control and transact. A person’s CV would be expressed as a string of code that is anonymous until the point of transaction. A tremendous amount of data will be derived from Zertify which will feed into the next hack called The Value Game.
Gross Domestic Product (GDP) refers to the market value of all officially recognized final goods and services produced within a country in a given period. Simon Kuznets first developed the concept of the GDP for a US Congress report in 1934. He immediately said not to use it as a measure for welfare. He later elaborated:
“Distinctions must be kept in mind between quantity and quality of growth, between costs and returns, and between the short and long run. Goals for more growth should specify more growth of what and for what.”
Today, the concept of Gross Domestic Product is vastly flawed to the point where the tail now wags the dog. GDP now determines what we produce, who produces it, where it is produced, when and how it is produced. Further, GDP snuffs out vast amounts of intangible value simply because it cannot be measured as GDP.
Recently, The G-20 meetings resolved to a very interesting point; to redefine GDP by a new set of metrics. This will be a long hard journey if done solely in the political domain. However, if we can make a business case for it, the entrepreneurs will jump on board. Then, and only then, can the landscape change as rapidly and drastically as will be required to turn civilization around equitably and peacefully.
The irony is that those who perpetrate GDP metrics may be those who would benefit the most from dumping it. In the following article from FastCompany, How Intangible Corporate Culture Creates Tangible Profits, companies who learn to transform intangible assets to tangible value become more competitive over companies that do not. The article cites Southwest Airlines as the first airline to strip down all “tangible” amenities, yet they succeed by replacing them with intangible value such as superior customer experience.
Interestingly, the FastCompany article talks a great deal about culture. They also use the terms; “information, knowledge, innovation, and wisdom” liberally throughout the text. This is very inspiring to us at The Ingenesist Project because we use similar language to design and deploy business methods in industries as diverse as Aviation, Construction, and Philanthropy that readily convert between tangible and intangible value.
When we talk about the New Value Movement, we are trying to specify a new class of business methods that can literally “manufacture” the things that people actually need without any distinction between tangible and intangible. People need a game that they can win playing by the same set of rules. People need food as much as the need love – there is no walled garden of human needs, except the planet we share.
Meanwhile, our “risk based” capital structure accounts only for the observed randomness of individual human nature rather than trying to securitize the potentially infinite wisdom of crowds. This is a problem, this is our very serious problem.
Anyone familiar with The Ingenesist Project knows that we commit a new class of business methods to the public domain for other people to use for building the next economic paradigm. For example, The Value Game developed by ourselves, is being used by at least 3 new start-ups as the value creation mechanism of their business plan. We likewise consult to social entrepreneurs across the World to help them build a new form of capital structure where knowledge assets are the basis of fungible social currency.
Zertify.com is a business plan that will convert social currency to financial currency and make money for you, dear reader. Zertify.com can employ well over 40,000 people directly (and tens of millions indirectly) in the US alone within months, not years. Zertify.com is a knowledge inventory system that accounts for knowledge assets as they reside in a community – not necessarily as they reside sequestered within a corporation.
Zertify business plan
Here is a downloadable PDF of Zertify.com Sample Business Method. The word “Zertify” comes from the combination of the words “Certify” and the statistical Z-test. These two things correspond to “Social Vetting” and “Predictive Modeling Capability” – these are the two ESSENTIAL elements for the capitalization and securitization of any asset. Of course, I have made certain assumptions regarding taxonomies and proficiency criteria – my intention is simply to re-deploy existing market infrastructure as best as possible in this Example. But go ahead, change it, modify it, understand it, build it, and let us help. Become a billionaire – see if we care.
In case you were wondering who all those wise people are, flip through this presentation (great to see Tara Hunt among such luminaries !!)