Theses A

Theses A: National Blockchain And Its Macro Economical Mmpact

A1: Cyber Warfare will escalate and will raise a public debate for digital national security

In the next five years, as cyber warfare intensifies, the paramount concern shaping the adoption of blockchain for national digital records will be digital security and immutability. We are likely to witness a cyber attack of unprecedented scale and impact, comparable to the events of 9/11. This incident will target a selected nation’s digital infrastructure, leading to the loss of access to and functionality of digital records and finances. The affected country will be compelled to revert to paper-based records and cash transactions temporarily, causing a significant disruption to its digital public administration and commercial activities.

A2: Cyber Warfare will force countries to blockchainize and decentralized digital administration layer

The cyberwarfare incident will spark the creation of the first national blockchain, enabling citizens to operate micronodes on their mobile phones. This blockchain will facilitate the minting of a digital currency as a stablecoin, serve as a wallet for funds storage, and record all domestic transactions. Consequently, banks will transition from independent custodians to layer-2 service providers, leveraging this national infrastructure for their operations.

A3: Decentralized digital public administration will trigger massive RWA tokenization

The introduction of a decentralized digital public administration layer will initiate widespread asset tokenization, including real estate, land, vehicles, and legal entities, creating a unified, immutable registry for all.

A4: Each citizen will run one KYCed micro node on mobile phone

The deployment of KYC-verified micro nodes on mobile phones by citizens will ensure the public blockchain's supreme immutability and fairness. Each citizen will host one micro node linked to their national ID, distributing the responsibility for national record security across millions and preventing any single actor from dominating the blockchain and its records.

A5: Public blockchain enables near self-executability of taxation regulations

The national blockchain will significantly boost the speed and cost efficiency of the country's public administration. It will automate the taxation process, enabling self-settling of indirect taxes like VAT and sales tax, as well as automatic calculation and collection of real estate taxes, personal income taxes, health insurance premiums, social insurance premiums, public fees, and penalties. This advancement will reduce the manpower required for public administration, enhance process transparency, and visibly improve the country's GDP.

A6: Public blockchains will be Asset Chains

The national blockchain will offer enhanced insights by unifying all transactions and real-world asset (RWA) records from separate databases to one decentralized secure system (Public Asset Chain). Access to this comprehensive data will facilitate a deeper understanding of the country's macro and microeconomic conditions, enabling targeted improvements and stimulations where necessary. This centralized approach will contribute to further economic advancements.

A7: All it takes is one country

The implementation of the first national blockchain will compel other nations to follow suit. Just as the adoption of digital web-based public administration services set a precedent, leading other countries to modernize in response, the blockchainization of transactions and records will trigger a similar global shift towards adopting blockchain technologies to stay technologically current/

A8: Running a Public Asset Chains node will be incentivized

Citizens will be encouraged to engage in running micro-nodes through campaigns highlighting the importance of collective security for national digital records. This participation in validating transactions will be framed as a civic duty akin to national defense, focusing on the protection of the country's digital data. Early participants will benefit from significant initial and ongoing incentives. Over time, maintaining a micro-node with proper uptime may become a condition for accessing higher tiers of social insurance and healthcare benefits. Faithful validation and consistent uptime will be rewarded with benefits such as free or subsidized healthcare, whereas misconduct could lead to reductions in social entitlements or increased social insurance premiums.

A9: Stablecoins will be reserved for public mints

Key global currencies, including the US Dollar (USD), Euro (EUR), Chinese Yuan (CNY), Japanese Yen (JPY), and British Pound Sterling (GBP)—all featured in the international monetary index—will be integrated with their issuing countries' blockchains. These nations will prohibit any alternative tokenized stablecoin forms to maintain full control and ownership over the records of their digital currency transactions, thereby ensuring centralized and secure management of digital currency flows.

A10: Banks and payment companies (VISA, Mastercard etc.) will be obsolete for custody and transactions

The implementation of Asset Chains technology will catalyze the shift towards digital ID wallets and node-to-node (N2N) payment systems that are directly linked to these blockchains. This innovative approach will enable citizens to hold funds in blockchain-based national ID wallets and make payments and transactions using their mobile devices, fundamentally transforming the financial ecosystem. As a result, traditional banks and payment processors will no longer serve as the primary entities for holding and transferring funds. However, they may adapt by connecting with national blockchains as secondary (layer 2) service providers through API endpoints.

Moreover, all cash withdrawals and local transactions will be mandated to integrate with the Asset Chain, exclusively managed by an N2N payment system developed through citizen collaboration. This significant change challenges the current and future relevance of conventional payment operators such as VISA and Mastercard. By moving towards an autonomous, blockchain-enabled payment infrastructure, there's a strong indication that these traditional entities may face obsolescence, marking a pivotal transition to a more secure, efficient, and decentralized financial landscape.

A11: National blockchain will benefit from direct legal causality

Assets tokenized on Asset Chains will benefit from direct causality - making any changes on the blockchain layer will trigger direct, effectible legal events (e.g. transfer of ownership, registering entity, issuing new shares as tokens etc.).

A12: RWAs legal forms will mapped 1:1 with Asset Chains smart contact types and token standards

Every single transactable asset type recognized by the given regulator and their legal forms of ownership will be reflected through specific smart contract or token standards on the national blockchain. This will ensure a comprehensive and standardized representation of property rights and asset management within the given digital infrastructure.

A13: Raise of bilateral decentralized data oracles

Interactions among distinct Public Asset Chains will resemble the current communication protocols between existing blockchains, employing decentralized, immutable data exchange oracles. To facilitate this, nations will be required to enter into bilateral or multi-party agreements focused on the establishment, upkeep, and decentralization of these oracles, henceforth known as 'bilateral decentralized data oracles' (BDDO). Essentially, 2 or more Public Asset Chains will co-create one BDDO.

A14: BBDO will solve issues related to double tax avoidance and tax residency identification

Through process access to blockchain P2P transaction records with registered real-world asset (RWA) data, Bilateral Decentralized Data Oracles (BDDOs) will address major challenges in double tax avoidance regulations and the accurate determination of taxpayers' territorial residency, streamlining these processes significantly. It will also become a solution for self-executable customs fee policy.

A15: Asset Chains will change the way taxes work

Micro-node operators will play a role in counteracting inflation by locking currency in their nodes through Proof of Stake (PoS) mechanisms and using rewards for self paying taxes. The more currency they lock and the higher the taxes they pay, the greater the Annual Percentage Rate (APR) they will receive. This approach may also lead to the simplification and significant reduction of VAT/sales taxes, and the potential abolition of progressive taxation systems, replacing them with a fairer and more dynamic 'holding fee.' This fee would be based on the amount and duration assets are held without being locked for a fixed period, with higher fees for longer-held assets.

A16: Our location is already tracked non-stop anyway, so now tracking will be incentivized and regulated.

Mandatory possession of an active micro-node as a digital KYC-verified ID could become a legislative requirement, with individuals needing to maintain and potentially carry these nodes in public spaces for identification. The push towards such a scenario is likely to grow with the intensification of hybrid warfare, highlighting the importance of secure, verifiable digital identities. Platforms similar to STEPN may be repurposed for national security objectives, enabling citizens to share their movement data in exchange for social and healthcare benefits. It's probable that countries will restrict location tracking to the Asset Chain framework, allowing only authorized entities to track for sanctioned purposes, thereby centralizing and securing personal location data under strict regulations.

A17: Cross-border currencies are obsolete

The emergence of national blockchains, and the advantages they offer, will render cross-border currencies like the EUR obsolete. This shift necessitates the revival of national currencies that align with the unique interests and needs of individual countries. Inherently, cross-border currencies lack integration with the immutable infrastructures safeguarded by individual nations. Consequently, there's a compelling argument for countries to establish and control their own digital systems, records, and currencies, ensuring sovereignty and autonomy in the digital realm. The main rationale for currencies like EUR - unification of pricing policy - can be easily and effectively replaced with dynamic pricing exchange rates and fair asset valuation policy at near zero cost thanks to BDDOS.

A18: Raise of obligatory on-chain assets lifecycle tracking

Each asset that gets physically transacted in a given country that adopted Asset Chain blockchain, will have its individual barcode associated with asset genesis event, and asset lifecycle event tree (i.e. all transactions and assets related to that event). Assets created from assets (e.g. knives made from steel and wood), will have to be linked via event-tree connectors, operating under strict logical rules (e.g. 1g of steel can’t be used to produce 10 knives). On-chain asset lifecycle tracking will further automate VAT / indirect taxes procedures (making them near self-executable). It is also a gateway for a self-deductible carbon tax system.

A19: Carbon tax, instead of carbon certificates

Full on-chain tracking of assets lifecycle and parameters related to its production, ultimate origin and transportation makes it very easy to keep the track of total carbon footprint of any tokenized, transacted asset, and as such replace inefficient carbon certificates with directly deductible carbon tax, applicable for and deductible per every operation that add more CO2 footprint to the asset lifecycle. Going even one step further, certain legal operations (e.g. transaction, re-assignment of ownership or re-assignment of location) might require covering the CO2 gas cost of the transaction first, requiring users to fuel up their wallets with additional funds for the purpose of neutralizing their CO2 footprint. This is particularly valid use case in the light of recent pushback towards billionaires like Tylor Swift, producing massive amount of CO2 footprint by using private jets on any occasion - such activity would still be allowed, but would trigger exponentially high CO2 gas cost to maintain (applied on private jet acquisition, petrol acquisition etc.)

A20: Blockchain must support immediate upgrades.

Updates and upgrades should happen more often. The transition from Ethereum 1.0 to 2.0 took over a year. Blockchains that interact with legal events must be able to update quickly to keep pace with any regulatory changes.