In the beginning of the 20th century, national crises like the dot-com bubble, 9/11, and the War in Afghanistan, lead the American government to enforce a low interest rate policy as part of a strong economic stimulus package. While the main purpose of this initiative was to create corporate investments and private consumptions, it caused tremendous household loans. In 2004, it led to the termination of the low interest rate policies, leaving financial institutions unable to collect loans. Major financial security companies in the United States, such as New Century Financials, went bankrupt. The scandal has caused a worldwide credit crisis and hurt the real economy. One of the most widely known examples of the global financial crisis is the collapse of the investment bank ‘Lehman Brothers’ in 2008.
One of the most interesting events is the birth of the post-revolution system and cryptocurrency, called ‘Bitcoin’ which was first ideated by Satoshi Nakamoto after the collapse of Lehman Brothers. Speculation has been rampant about who SatoshI Nakamoto is, since his identity remains completely veiled. The clear message he is trying to convey in his thesis, which consists of about nine pages, is the lack of trust in the banking system, especially toward the Federal Reserve Bank (FRB) which is central publisher and trustful third party and manages all information and policies after going through the financial crisis in 2008. He suggested a currency system that cannot be fabricated and can be perfectly transparent without requiring personal information with the purpose of “substitution” for existing systems. His message raised social discourse on the system that everyone decides the system participants transparently. His will has spread not only in the banking system but also throughout media, culture and society. Rather it is not determined by the sharing and distribution of information in a fairer society, centralized control and management, with the meaning of ‘Decentralization’.
Satoshi Nakamoto derives the definition of distribution from the ancient days of Platon. In particular, his discussion shows analogies to John Rawls’ book “A Theory of Justice” where the moral and political philosopher emphasizes the importance of justice. Rawls argues that fairness can only exist when the procedures of distribution are fair. Taking a closer look at how these comments relate to the blockchain, John Rawls uses the the term ‘fair procedure’ to account for the ‘veil of ignorance’ and to assert that the information solves asymmetry. The blockchain is a chain of blocks that are distributed through public trading principals, who can’t modify the contents. More importantly, all of the relevant records will be disclosed. In this process, no asymmetry exists between the two parties during the transaction, making it possible to implement a fair contract. The same is true for distribution procedure. For instance, maintaining a blockchain network requires voluntary participation from the miner (e.g. PoW) who is rewarded with a donation of cryptocurrency tokens in return for their mining activities. This is in line with Rawls claim for distribution of capabilities based on procedural definitions.
A Solution for Asymmetry of Information & Realization of Fair Contract = Blockchain Technology Fair distribution = token distribution based on system contribution
The FORESTING Network, which will be introduced in this whitepaper, is based on the creation of bitcoin and a philosophy shared by Satoshi Nakamoto and John Rawls on a more fair society. Accordingly, the FORESTING Network solves the asymmetry of the information that is prevalent in our society, pursues fair contracts, distributes them according to their ability, and shares active contributions with one another. The first chapter of this paper will be about the social media field, which has transformed people’s values and lifestyles since the release of the iPhone in 2007