Tokens are the fuel of the Decentralized economy and Token Economics, or Tokenomics is at the core.
There is a global transformation taking place, and a New Killer App is appearing. The New Killer App? – Web3 and Customer Experience (CX). This is going to be big! – Michael Noel
I am self-publishing Tokenomics is Not Economics – Digital CX here over the next few weeks. This is the result of years of effort, over 200k in expenses, countless challenges, and devastating losses.
But I would not change a thing.
Thank you to Ramona, without who’s a constant inspiration, none of this would have been possible. And thanks to my Mom, without whom, none of this would be possible. Thank you Gail (my sister) and Stephen Kroll for your hospitality over the last several months.
A great deal of Gratitude goes out to Aaron Babcock, for your support, and thank you Tri Fi Wireless for providing Wireless Mesh Networks.
Doctor Rocky Khan, thanks for all your help, could not have done it without you. Group tours are available for booking today through JV Partner Interline cruise connections.
And a very special thanks goes out to Willie Masters for supporting this project, even though you don’t think it’s going to happen for a long time.
Please be sure to follow me as I publish this book one chapter after another. If there is enough interest at the end of this exercise, maybe more will follow.
Preface
I was backstage in some city, whether it was Chicago, Denver, or LA, and it is hard to remember. I was in 2 or 3 cities a month back then, and speaking at multiple events every month. So I am not sure of the place, but it is 2017, or 2016.
I’m walking backstage and David Chaum is standing there. You see the first cryptocurrency was eCash, created by David Chaum’s company DigiCash in 1990. This is one reason why I love the Blockchain Space so much. This is like a little league player, getting the chance to talk with his favorite Major League Pitcher. I know he was probably enjoying his quiet time, and I should not have but I did. I introduced myself, and we started talking. And the next 20 minutes changed my life quite completely.
That is the first time I saw the pattern.
We talked a bit about what I was working on, and then he told me about how that was solved years ago. But by two groups that we unrelated. David supposed that a lot that he sees folks working on had been solved before, in multiple ways.
So 4 or 5 years later in 2022, coming out of the lockdowns, I am reviving some of my old assets, and I start talking to people about what they are working on and then start thinking about how that was solved years ago.
There is a pattern here.
The Blockchain Gangolf, mentions it in one of his many videos on the subject.
I started my day intending to record a video about Aptos, a blockchain launched publicly yesterday. From media reports, it appears to be positioning itself as a “Solana killer”, which itself is often labeled an “Ethereum killer”. Although I’ve downloaded Aptos, compiled and built it, So, instead I’ve decided to talk about whether there is a point in the launching of new blockchains at this stage of the game. My take is that Aptos is probably a victim of the “sunk costs fallacy”.
So much could be being done, and so much, is not getting done. We are waiting on this regulation, or waiting on that to clear legal, or raising capital, or, or, or, or, anything, but building things the general public can easily and safely use.
The technology to digitize industries is there. The gain in efficiencies, transparency, safety, and the environment are all there. But developers are stifled by the bureaucracy digital solves.
We regulate Development in the Blockchain Space, based on the theory, you can learn how to drive, in a parked car. And it has been that way for decades.
Blockchain Weekly Reboot Edition: This is a reposting of the first Blockchain Weekly taped in Phoenix Arizona in 2016. Today’s guest David Saxton had the original patent for RSA encryption of a financial transaction. As we discussed this patent has now gone dark. RSA Cryptographic Review for his company NetChecks from June 10th, 1995
But not to worry, Because tech follows an S curve, and we are about to hit the point on the s curve where things get interesting.
Disruptive technologies have never followed an incline, they follow an S-Curve.
And we are not ready for it.
In his book, The Singularity Is Near, Ray Kurzweil plots the price-performance (or processing power per dollar) of five paradigms in computing — electromechanical, relay, vacuum tube, discrete transistor, and (finally) integrated circuits.
Together, they follow a smooth exponential curve.
How?
Disruptive technologies have never followed an incline. They have always followed an S-Curve. Each new technology advances along an S-curve — an exponential beginning and a flattening out as the technology reaches its limits. But as one technology flattens, the next paradigm takes over. The result is a series of overlapping S-curves that combine in a broader exponential curve.
The S-curve shows the innovation from its slow early beginnings as the technology or process is developed, to an acceleration phase (a steeper line) as it matures and, finally, to its stabilization over time (the flattening curve), with corresponding increases in performance of the item or organization using it.
What comes next for DLT? The acceleration phase will peak in the next few years at 10 x 2016 levels. DLT has seen its first growth curve or the bottom of the S. We are approaching the acceleration phase of the S curve. But we’re handicapped. We are still trying to take the infrastructure we already have in place, and reuse it.
Noel’s Law of Decentralization, “The First thing a centralized organization will do, when confronted with a decentralized mechanism, is to try and centralized it. “ Michael Noel CBP
Paradigm shifts become necessary when the plausibility structure of the previous paradigm becomes so full of holes and patchwork “fixes” that a complete overhaul, which once looked utterly threatening, now appears as a lifeline.” – Richard Rohr on Kuhn’s “Paradigm Shift”
Payments, Voting, Healthcare, Real Estate, Investments, Capitalization of Innovation, and just about everything else have workflows based on the old paradigm.
And they have all failed.
Payments, as it is currently, is a failed institution. Globally, about 1.7 billion adults remain unbanked — without an account at a financial institution or through a mobile money provider.
It is estimated that 80% of these 1.7 billion unbanked adults have a cell phones. In 5 years the number of Unbanked Adults globally will be a fraction of 1.7 billion.
Voting has come to a point where it can be gamed. Anything, client-server-based can and will be gamed. DLT voting is easy to implement. Just give each wallet a voting token that they can use, or not use. The current voting system will not survive the transition.
Healthcare, HIPPA compliance has made a mockery of the United States. The United States still stands out from much of the developed world in state efforts to make medical care available to the public. Universal Healthcare is so difficult that only 32 of the 33 major developed nations have been able to pull it off.
DLT-based secured information can be securely shared by token holders. DLT Mutual Insurance Organizations are coming. They function one thousand times quicker and are 100 times less expensive.
The current healthcare system in the US profits from sickness, and DLT Mutual Insurance Organizations profit from wellness. In 10 years, the Healthcare system will have been disintermediated in some form and will compete with DLT Mutual Healthcare Insurance Organizations which will eventually take over.
Investments
Investments are a joke. Pumps and Dumps have no fundamental value and add nothing to the GDP. Speculation has gone awry, and speculation still controls the market.
In speculation 80% of the time someone loses, and 15% of the time someone wins.
80% of the time when someone loses it’s usually your mom’s 401k.
15% of the time someone wins, it’s someone who already has enough money.
All this activity adds nothing to the GDP.
We have done a horrible job of distributing wealth in this paradigm. 68 wealth hoarders at the top of the chain control more than half of all the wealth created in recent memory. STOs are coming, and the playing field will not be limited to a stock exchange. In this wider environment, the bonding curve facilitated speculation will not function.
Investment is intended to finance innovation. In this new environment that is exactly what investments will do. This has already started and will begin to pick up speed this year.
Capitalization of Innovation
Capitalization of Innovation is almost at a standstill. And the innovation that is being funded, is being funded to facelift the current workflows. We need to move a mountain, but instead of developing the tools necessary, we are fitting our 72 Volkswagen Bug with a truck bed.
This trend continues in almost every workflow. I could go on for days. Don’t believe me, just ask any of my friends, most of which are tired of listening to me.
Many industries are slow to adopt. Mostly because it requires a forklift of their current infrastructure. Yet many industries are already moving forward in the new paradigm.
Consider these facts:
Airbnb has become the largest hotel chain in the world (after launching in 2008), with more than 850,000 rooms, and without owning any hotels.
From 2012 to 2014, Uber consumed a whopping 65% of San Francisco’s taxi business.
Advances in artificial intelligence and robotics put 47% of U.S. employment (over 60 million jobs) at high risk of being replaced in the next decade.
10 million new autonomous vehicles per year will be entering U.S. highways by 2030.
Today’s sensors are 1 billion times better (1000x lighter, 1000x cheaper, and 1000x the resolution) than only 40 years ago. By 2030, 100 trillion sensors could be operational worldwide.
The cost of DNA sequencing dropped precipitously (from $1B to $5K) in only 15 years. By 2023 it could be $0.01.
In 2000, it took $5,000,000 to launch an Internet startup. Today the cost is less than $5,000.
With gains like this, it’s no wonder futurist Ray Kurzweil predicted that progress in this century could be of equal magnitude to all such progress over the last 200 centuries.
But what about the S-Curve? Remember where we started?
Yes, the S-Curve.
Technological change does not follow a linear progression. We tend to see change as slowly happening over time, and each year a few more people have adapted to a particularly new thing. That kind of change is represented by the straight black line on the drawing. However, most of the time change does not happen in a straight line progression but follows an s-curve like the red line on the chart
In the early years of some new product, service, or technology there are very few users. Just some early adopters, hobbyists, and risk-takers. Over time the number of users increases slowly until a critical tipping point is reached. At this time the new technology enters a period of rapid growth.
In a very short time, the number of users doubles then doubles again, then doubles again, and very soon the new technology, product, or service has become mainstream.
This s-curve is obvious with some technologies, like cell phones. Cell phones were first developed in 1974. For years the number of cell phone users grew slowly, then suddenly in the mid-90s (twenty years after it was invented) cell phones reached a tipping point and overnight it seemed everybody had cell phones. Now there are more cell phone lines than there are traditional wired landlines.
DLT acceleration phase is just starting but we are nowhere near ready for the 10x acceleration this phase promises. In the next few years, the DLT acceleration phase will peak at 10 times the velocity of the first phase which started in 2016. Yet today, we are fitting our 72 Volkswagen Bug with a hitch for a trailer with no idea that in just a few months, the wheels are going to fall off.
Those who conceive simple logical repeatable processes that are scalable and THEN plan, test, and implement now will succeed, those who don’t will fail.
This is how it has been and will be.
Organizational structure, the nature of work, and the limits of human performance are being rethought as leadership, management, and education are transformed to fit the new paradigm.
In this new paradigm, we are nearing the acceleration phase and it will provide 10x growth. This is the mountain we need to move to in the next 5 years. This 10x mountain we need to move is here already but the 72 Volkswagen Bug we are planning to use to move this mountain is nowhere near up to the task.
Digital Currencies are ushering in a new paradigm and Consensus is at its core. If you haven’t spent time learning what Consensus is, it is time to do so.
Unfettered Global transactions are the promise and Disintermediation is the tool.
The sooner we cumulatively begin to realize that we can not take traditional economic theory into the digital realm the better.
Change is coming and the future is decentralized.
I’m ready for it, are you?
Tokenomics it is not Economics – Chapter One
Introduction to the Digital Transformation, – Web3 and Customer Experience (CX) (Digital CX) –
For most, there is a brisk winter feel to the air in December 2022. And after the lockdown, we are out enjoying it. “We the People” are beginning to come back together, in theaters, ballparks, and amusement centers. For some, cautious optimism is beginning to edge out over the foreboding news in the media. We are joining a global community, coming out of a global hibernation, and slowly permitting ourselves, to enjoy some of the normal things we did before the lockdowns. We all, so desperately, hope things go back to normal. While knowing ultimately, it will not. Globally, simultaneously, as a species, we are realizing there is a new normal.
The new normal includes familiar things, that we are learning to appreciate all over again. We are beginning to venture out and visit the places we missed the most. There are new places, concerts, sports, weekends, family, the outdoors, fresh air, local events, and local cuisines.
And it also includes Restaurants with long lines, Items on the menu but not available. Stores that for no apparent reason are closed. Service providers that are overworked and less patent. Booking a room on the road with pets, or children is frustrating. Where can we eat? Road food at McD’s again? And why did Cracker Barrel take uncle Herschel’s breakfast off the menu?
Rental cars are in short supply, events are not organized, and you may need to make multiple reservations, on multiple platforms, and then keep track of which member rewards card this trip is on. For a mother of four, this is comparable to calculating the exact trajectory of a golf ball traveling from here to the moon. And if you need to change things, well that brings the trip pretty much to a halt. And all of that is acceptable. We just smile and pay more than we did, and get less than we did. For the most part, we are all just happy to be out of the house.
If the Customer Experiences (CXs) we are experiencing today, happened 3 years ago, there would be a video where I pick 3 items in a row, all of which are listed on the menu, but not available today. Then 500 nasty comments about how others have had similar experiences, and the restaurant would change or go out of business. But today, all of that is acceptable. We just smile and pay more than we did, and get less than we did. For the most part, we are all just happy to be out of the house.
Buying a car has become an adversarial process, with the dealerships vs car buyers. At the same time, the current generation has more interest in transportation and less interest in actually owning a car much less servicing a car at a dealership. The Car Buying CX is manipulative, expensive, and full of friction. But today, all of that is acceptable. We just smile and pay more than we did, and get less than we did.
The Medical Industry is reeling from a mass exodus of talent. A sobering new survey released by Elsevier Health, called “Clinician of the Future,” reveals a prediction that up to 75% of healthcare workers will be leaving the healthcare profession by 2025. For those of you doing the math, that’s only three short years away.
- Both nurses and doctors are burned out.
- Both nurses and doctors are at risk of leaving the profession.
- The majority of healthcare workers don’t feel like they have a good work-life balance.
- Many healthcare workers responded that dealing with families can be very stressful.
All of the healthcare workers also pinpointed specific challenges that will only continue to grow in the coming years:
- An aging population with increasing healthcare needs
- Patients that are becoming more empowered
- The fast pace of healthcare technology
- A transition to home-based healthcare
The US spends more of its gross domestic product (GDP) on health care than other high-income countries yet ranks last in access to care, administrative efficiency, equity, and healthcare outcomes, according to an analysis by the nonprofit Commonwealth Fund.
ABSTRACT Issue: No two countries are alike when it comes to organizing and delivering health care for their people, creating an opportunity to learn about alternative approaches.
Goal: To compare the performance of health care systems of 11 high-income countries.
Methods: Analysis of 71 performance measures across five domains — access to care, care process, administrative efficiency, equity, and health care outcomes — drawn from Commonwealth Fund international surveys conducted in each country and administrative data from the Organization for Economic Co-operation and Development and the World Health Organization.
Key Findings:
The top-performing countries overall are Norway, the Netherlands, and Australia. The United States ranks last overall, despite spending far more of its gross domestic product on health care. The U.S. ranks last on access to care, administrative efficiency, equity, and healthcare outcomes, but second on measures of the care process.
Conclusion:
Four features distinguish top-performing countries from the United States:
1) they provide universal coverage and remove cost barriers;
2) they invest in primary care systems to ensure that high-value services are equitably available in all communities to all people;
3) they reduce administrative burdens that divert time, efforts, and spending from health improvement efforts; and
4) they invest in social services, especially for children and working-age adults
The rankings are based on surveys conducted in 2017, 2019, and 2020 of nationally representative samples of patients and primary care physicians in Australia, Canada, France, Germany, the Netherlands, New Zealand, Norway, Sweden, Switzerland, the UK, and the US. About 5,500 people were included in the US samples.
The healthcare CX is manipulative, expensive, and full of friction. But today, all of that is acceptable. We just smile and pay more than we did, and get less than we did.
Poor CX is the best that is available for just about every industry, globally.
There are very few bakeries left. There are almost no local stores left selling locally grown and baked goods. The Education system has replaced relevance with tenure. We can tell you where every single bitcoin fraction is with 100% accuracy, and we can trade millions of dollars worth of Bitcoin for ETH, and we can do it in a few minutes and for 10 bucks or so.
Compare this to the title insurance industry.
You can generally expect to pay anywhere from a few hundred to $2,000 for title insurance. Typically, your escrow or closing agent will order a title policy soon after your purchase agreement is signed. It usually takes about two weeks for the policy
Centralized workflows 1 or 2 thousand dollars cost and it takes 2 weeks
Decentralized workflows 10 bucks and a couple of minutes
One-third of the GDP is in banking, and fintech costs a fraction of that.
The 3 Trillion Dollar Grant writing research system has no one keeping track of negative results. New groups continue to research solutions that have been disproven before an estimated 60% of the time (almost 2 trillion dollars in waste). Buying a cell phone from one of the 3 major carriers is a joke. The distributorships fly the badge of the major carriers, but in reality, you are purchasing from a small locally run operation, with very little value added, 40 to 60% of your mobile bill goes to running those locally and poorly run shops that have little value added. In the mobile Store in Flagstaff, for instance, it’s okay to insult customers.
I could go on, there are hundreds of instances where CX is horrible and demand is increasing. Poor CX is the best that is available for just about every industry, globally. And today, all of that is acceptable. We just smile and pay more than we did, and get less than we did.
This is the honeymoon period, which will come to an end soon.
There is a strong and at this point almost unavoidable potential for a wave of dissatisfied customers globally, in just about every industrial sector.
In just a few months, globally, in just about every industrial sector customer loyalty will be up for grabs.
Customer experience is the challenge of the recovery.
Whether it’s more tailored products, greater digital parity with analog services, or faster turnaround, customer expectations of what great customer experience (CX) looks like have shifted significantly.
Lockdowns only accelerated these trends, leaving ecosystems in a game of catch-up. In this changing landscape, organizations that quickly prioritize CX can gain loyalty, build resilience, and future-proof businesses.
Web3 CX is all about Digitizing CX using Frictionless, peer-to-peer, workflows (blockchain).
Web3 CX is also device agnostic. And, if it is a global environment, it also means cross-language communications.
Easy frictionless access to goods and services, on any device, in any language, at any time that’s Web3 CX. We will go on to scope out several Web3 CX platforms later in this book.
The big question is, if Web3 is the new CX, then does Web3 solve the current poor CX paradigm? Surprisingly, across the board, Absolutely it does. But it does it in a whole new way. You don’t get Web3 services on a network made for my space. Web3 is decentralized. And it is Distributed as well.
Nodes on your network are distributed and use technology, like IPFS, and LDNS.
It all starts with a smart network.
Next, we will describe in detail, this smart network, as we introduce the WAMNET, a Wireless, Autonomous, distributed network, using alternative DNS, and persistent storage.
Smart Networks provide
- Persistent Lifetime DNS
- Named Data Network Structure
- KYC, AML, as a service (KYC,AML,AAS)
- In network, Legal, and Regulated peer-to-peer transactions
- immediate settlement both ways
- Arbitrage might be a condition of membership might not.
- Zero Marginal cost Services
- Brings Value to the platform
- Benefits Members
Next Chapter Two
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– Michael Noel
eschew obfuscation, espouse elucidation
Frist published 12/7/2022