12H/ IdentiTEA for you & Me - The Trust Triangle, Triple Entry Accounting + the New New World

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IdentiTEA for you & Me - The Trust Triangle, Triple Entry Accounting + the New New World

Session Convener: Nicholas Racz, https://www.cheqd.io/

Notes-taker(s): Michael J. Becker

Tags / links to resources / technology discussed, related to this session:

Discussion notes, key understandings, outstanding questions, observations, and, if appropriate to this discussion: action items, next steps:

Facilitator: Nicholas Racz, https://www.cheqd.io/ Note taker: Michael Becker, Identity Praxis, Inc.

Three Eras of Accounting How society, account, and social evolution gave rise to the inevitability of triple-entry accounting/Trust Triangle.

Single Entry (early Egypt) … tracks matter/mass

  • Thoth - Thoth, (Greek), Egyptian Djhuty, in Egyptian religion, a god of the moon, of reckoning, of learning, and of writing. . He was held to be the inventor of writing, the creator of languages, the scribe, interpreter, and adviser of the gods, and the representative of the sun god,
  • Establishment of the state
  • Establishment of citizenship (differentiate citizens from the enslaved)
  • Monolithic societies
  • Made possIble by writing and mathematics
  • Modern thinking is that numbers came first, and writing followed to give numbers context.
  • get quantity and “qualia.”
  • led to the creation of money (starts off as collectibles)
  • Religious, Economic, Law all in one One (DAO, Sharia); Sharia law dictates it all (vestigial proof that society came as one amalgam)

The sophistication of trade has driven things.

Initially, accounting for grain and tax on how much a field can endure.

“The temple of Juno Moneta is the etymological root of money” - religious template, the center of trade, and center of coinage. Christ got killed because he disturbed the money train during Passover.

Double Entry Accounting (formally introduced by Luca Pacioli in 1492) - tracks movements, velocity.

  • Inflows (+1) and outflows (-1) from the account (accounted for number and quality of item)
  • First sophisticated form for accounting events, not just taxing land, but now taxing trade of goods.
  • Started forming joint-stock and organizations Gold is heavy…deposits in the bank..get IoU for the gold, trade the certificates. The first modern central back with *Amsterdam Duch East Indies Trading company had shared, so successful; not possible without mutually assured records.

Joint stock organizations Central banking Colonizations

Unit of identity expands: you are now not just a citizen, but a “Shareholder” - you can now claim a piece of the profit. There is ideological good…best way to support your metabolism is to support a company that brings in revenues

  • Decreased fraud
  • Increased trust

Religion and states started to divorce themselves by introducing double entry of account. Similar to human development…by necessity specific element of society start to specialize through necessity For society to scale need utility specific assets to specialize and separate from each other.

John Nash, Buckminster Fuller, Henry Ford, Friedrich August von Hayek - all foretold the coming age that money will be abstracted from the state, just as the church was abstracted from the states.

visa is like an intermediary for the triple entry process

Has an implicit notion of the third party - Luca suggested that you were ultimately accountable to god, the moral rule. An implicit part of the double-entry account.

Triple Entry Accounting (TEA) - tracking momentum (momentum is a change of change).

Relates to the trust triangle.

The wisdom of the crowd

“Why assume malious when incompetence will do”

You have something. You record the exchange (mutual accountability). You record the momentum (change in the exchange)

Example 1: Momentum based accounting (YUJI IJIRI) |y1|y2|y3| |100|200|300| |0|100%|50|%

More complex. If the company’s momentum decreases in time, then the auditor damps the company’s evaluation.

Example 2: Trust triangle emerging - use a trustworthy mediator to coordinate activities. Ian Grigg; Episode 13 : Ian Grigg on the Evolution of Trust, Triple Entry Accounting and a New Way of Audit

Three Parties: first-party, second-party, coordinative entity. Automation will inherit drifting into the coordination role due to the complexity go the account.

Not possible without * Computers * TCP/IP * Routers * Cryptotprhay * Digital ledger technologies (DLT)/KERI

All this will lead to… * Implicit DAO - no clear governance framework * Explicitly - has clear governance framework * Utility Tokens

Random Discussion

Does governance framework mean that you’ll be moral?

Remove money from nation state you’ll create virtualized communities (they will align to utilitarian purposes as opposed to genetic, cultural, geographic, religious—traditional tribal bidding)

Complex civilization society arises because of the ability to seize grains. Cryptography may simplify movements as we know it, or it may change the

Create new means to interact without others - enable us to go to mars, etc., the next big ocean…untold resources out in the galaxy. China: Rare resources, people to get it, and industrial population

Commodification and tradability of energy.

Triple entry accounting is the way out of the bureaucracy problem we find ourselves in today.

Need accumulated utility bills to derive trust

  • Triple entry method does not place the actors at the center but the transaction at the center (is anonymous and self-monitoring; an amalgamation of trust)
  • Double Entry puts the actors at the center (is bureaucratic and needs oversight)
  • Single entry accounting puts the item at the center