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> Isn't a co-op that's run as a dictatorship basically a corporation? In double-entry land, the ownership of labor is diluted every time new capital is contrib

> Isn't a co-op that's run as a dictatorship basically a corporation? In double-entry land, the ownership of labor is diluted every time new capital is contributed. Obviously people contributing capital should get rewarded, but the fact that causality only runs in this direction is super broken. Whereas in triple-entry land, capital can get diluted every time you add new labor. This works because the technology allows labor to be viewed as an asset rather than as an expense. Accounting innovations like this are kind of boring, but economically it's probably still the most important invention since double-entry was popularized in 1494.

arkades 9y ago
You are making references - “triple entry” - that seem to take for granted familiarity with certain concepts. Can you unpack that a bit?
- Alex3917 9y ago
  Triple-entry is the intellectual idea that blockchain enables as a technology. It refers to the idea of cryptographically authenticating entries in a ledger, which makes double-entry accounting scale in terms of the auditing costs. Currently business owners keep track of whether they are making or losing money by entering each transaction into a spreadsheet (or something similar), as per the rules of double-entry accounting. But each of those entries needs to get audited by a human third-party, which costs money. With blockchain much of the auditing work gets pushed onto computers, so you can audit trillions of rows for the same cost as auditing a few thousand spreadsheet rows without blockchain. This means you can create more complex types of businesses. In practice, it means you can create businesses where the incentives of the stakeholders are aligned in more efficient ways.
- thesehands 9y ago
  I would assume double entry land to refer to the current system we operate today, and triple entry land would refer to a system where transactions occurred in crypto currency. Triple entry is well laid out here: http://iang.org/papers/triple_entry.html http://iang.org/papers/triple_entry.html And point to the fact that transactions between two parties are digitally signed by a third party, thereby creating a third record

arkades 9y ago

You are making references - “triple entry” - that seem to take for granted familiarity with certain concepts. Can you unpack that a bit?

Alex3917 9y ago
Triple-entry is the intellectual idea that blockchain enables as a technology. It refers to the idea of cryptographically authenticating entries in a ledger, which makes double-entry accounting scale in terms of the auditing costs. Currently business owners keep track of whether they are making or losing money by entering each transaction into a spreadsheet (or something similar), as per the rules of double-entry accounting. But each of those entries needs to get audited by a human third-party, which costs money. With blockchain much of the auditing work gets pushed onto computers, so you can audit trillions of rows for the same cost as auditing a few thousand spreadsheet rows without blockchain. This means you can create more complex types of businesses. In practice, it means you can create businesses where the incentives of the stakeholders are aligned in more efficient ways.
thesehands 9y ago
I would assume double entry land to refer to the current system we operate today, and triple entry land would refer to a system where transactions occurred in crypto currency. Triple entry is well laid out here: http://iang.org/papers/triple_entry.html http://iang.org/papers/triple_entry.html And point to the fact that transactions between two parties are digitally signed by a third party, thereby creating a third record