Blockchain Technology Incentivizing Social Good in Private FirmsNovember 1, 2018
Within history, the humankind struggled to execute a political and economic system which benefits everybody in the society. The majority of nations at the moment exists under a democratic capitalist system. They came to this system after the communist, socialist, and fascist regimes in the 1900s failed. In the twenty-first century, the idea of social good is acquiring steam as the new way to perform business.
Blockchain Technology Driven Social Good
If you notice in the social democracy, the government employs central planning to distribute everyday resources like education, housing, and energy. The free market, on the contrary, distributes consumer goods. Currently, taxation backs up government initiatives. Nevertheless, execution isn’t successful at all times. A government which accomplishes a high state of welfare needs a huge amount of taxation that could deter entrepreneurs and corporations.
Along with the blockchain network, companies can execute social good initiatives on behalf of the government. Corporations are held responsible via smart contracts, and the carry through of such projects serve as an option to tax payments.
Taking advantage of smart contracts to impose accountability
Did you know that an Ethereum network will guarantee the successful execution of government initiatives? Corporations are bound by smart contracts to offer promised services and goods at a desirable satisfaction rate.
You see, if a government token is utilized to buy a service or good, the person fills out a survey which requests for their satisfaction levels. People need feedback to utilize their remaining tokens and businesses should pass a quality benchmark to be eligible for a tax reduction.
If the business tries to cheat the system by offering broken or old gods or poor quality service, the contract won’t move forward. Therefore, they do not qualify for a tax exemption and will have a bad rating system visible to everybody on the network.
Today, the execution of socialist ideas failed to meet their ideals only because people place their self-interest first. When we talk about the blockchain driven social democracy, selfish actions truly profit the system. In that way, people are seeking profit, but profit comes from providing social good.
Along with this shift, a huge sense of equality can exist. Nevertheless, the technology needs cooperation from the government to outsource their power and work.
Eliminating Taxation from a Crowded Economy
Factually, governments are less efficient at executing projects than the private sector. Through assigning social good initiatives to companies, businesses and wealthy people could add value to the economic and social system in non-monetarily. Further, business could leverage their existing resources and make social initiatives which serve as an option to tax payments.
That win-win scenario will aid business boost in profitability. It will also guarantee that government initiatives are more effective.
For example, XinFin, an open source hybrid blockchain platform strives to address the global trade and finance deficit through leveraging the fast-changing blockchain technology and through employing the XDC01 protocol. They include the participation from communities, regulators, suppliers, buyers, financiers, and government.
When the government can abandon their control and trust the individuals to make decisions themselves, the world might have a more responsive and effective government which offers equal opportunity for all.