Maurício Veloso Brant Pinheiro
“The fall of Empire, gentlemen, is a massive thing, however, and not easily fought. It is dictated by a rising bureaucracy, a receding initiative, a freezing of caste, a damming of curiosity—a hundred other factors. It has been going on, as I have said, for centuries, and it is too majestic and massive a movement to stop.” — Foundation, Hari Seldon speaking, Isaac Asimov
“The longevity of an empire is directly linked to the speed at which its communications propagate.” – I couldn’t remember the original citation or its source, so I reconstructed it with the help of ChatGPT 4.0.
How Google’s World Order is Crumbling in the New Era of Decentralized Data
In Life After Google (2018), George Gilder presents a compelling vision of a decentralized future where blockchain technology (See the appendix for a brief introduction to blockchains.) challenges the dominance of big tech companies over data. He argues that the current internet paradigm—built on centralized data storage and controlled by a handful of corporations—has significant limitations, including privacy concerns, security risks, and economic inefficiencies. Gilder advocates for a shift toward decentralized networks powered by blockchain, suggesting that this transition could lead to a more secure, transparent, and equitable digital economy. This future would empower individuals by giving them greater control over their data and transactions, reducing reliance on centralized platforms.
At the heart of Gilder’s argument lies a bold prediction: the current internet model, epitomized by Google, is on the brink of collapse. He (not me, OK Google?) critiques Google’s business model, which offers free services in exchange for user data, later monetized through targeted advertising. This “free” model, according to Gilder, is not only ethically questionable but also economically unsustainable. It creates a facade that obscures the true cost—namely, the erosion of privacy—and leads to a dangerous concentration of power among a few tech giants. Gilder contends that this centralized control stifles innovation, turning tech companies into gatekeepers that control access to information and markets.
A key insight from the book is Gilder’s critique of what he calls the “Google paradigm.” This worldview places immense faith in artificial intelligence (AI) and big data to manage human behavior and predict the future. Gilder takes aim at the “New Priests” of Silicon Valley, who believe that with enough data and sophisticated algorithms, they can engineer a digital utopia where AI solves all problems. However, he argues that this approach is fundamentally flawed, as it underestimates human creativity and the inherent unpredictability of free markets. Unlike machines, humans are capable of original thought and innovation—qualities that cannot be fully captured by algorithms, at least not yet.
In Isaac Asimov’s Foundation series, Hari Seldon embodies the ultimate expression of the “Google paradigm” through his development of “psychohistory,” a scientific method that combines mathematics, sociology, and statistics to predict the future of large populations with remarkable accuracy.
Like the tech visionaries criticized by Gilder, Seldon creates a model where human behavior becomes a quantifiable variable, leading to the illusion of control over societal outcomes.
However, Asimov’s narrative also reveals the limitations of such predictive systems. Despite Seldon’s advanced algorithms, unforeseen variables—embodied by the emergence of the unpredictable Mule—disrupt his carefully calculated plans, underscoring Gilder’s point about the inherent unpredictability of human creativity and free will. Ultimately, Foundation serves as both a testament to the power of data-driven predictions and a cautionary tale about overreliance on algorithms to shape human destiny.
To counter this dystopian vision, Gilder champions blockchain technology as the foundation of a new internet. This envisioned internet would prioritize privacy, security, and individual control over data. Blockchain, best known as the technology behind cryptocurrencies like Bitcoin, is essentially a decentralized ledger that securely and transparently records transactions. Unlike traditional databases, which are stored on central servers, a blockchain is distributed across numerous nodes worldwide. Each transaction is verified by consensus, making it extremely difficult to alter data without detection. This decentralized architecture addresses key vulnerabilities of the current internet model, reducing the risk of large-scale data breaches and giving users greater control over their personal information.
Gilder imagines a blockchain-powered internet where services are not “free” but instead operate on a model of micropayments and decentralized networks. In this new digital economy, users could make small, direct payments to content creators, developers, and service providers without the need for intermediaries. This model challenges the dominance of advertising as the primary revenue stream for digital content and could lead to a more equitable distribution of wealth in the digital space. Gilder believes this shift could diminish the influence of tech giants and create a more level playing field for smaller companies and individuals.
Throughout Life After Google, Gilder weaves historical and philosophical references, drawing parallels between the rise and fall of empires and the current technology landscape. He explores the history of cryptography—from ancient codes to modern encryption techniques—demonstrating how technology can empower individuals by protecting their privacy and securing their transactions. His discussion of Claude Shannon, the father of information theory, is particularly insightful. Gilder explains how Shannon’s work laid the groundwork for the digital age and suggests that revisiting Shannon’s principles could help address the internet’s current issues.
Gilder also delves into the economic implications of this technological shift. He critiques the “Marxist” tendencies of Silicon Valley, arguing that the “free services” model resembles a form of digital socialism, where users are treated as products rather than customers. He contrasts this with the “capitalist” nature of blockchain, where value is created through genuine exchanges and transactions. Gilder proposes that blockchain technology could usher in a new era of digital capitalism, where market forces drive innovation and individuals are fairly compensated for their contributions.
While optimistic about blockchain, Gilder does not ignore the challenges ahead. He acknowledges the technical and regulatory hurdles that blockchain must overcome, such as scalability, energy consumption (particularly with Bitcoin mining), and the need for new infrastructure. Nevertheless, he remains confident that these obstacles are not insurmountable, noting the encouraging pace of innovation within the blockchain ecosystem.
One of the book’s most compelling aspects is its exploration of the philosophical foundations of technology. Gilder argues against the deterministic view that technology inevitably leads to centralized control, suggesting instead that technology should enhance human freedom, not restrict it. This philosophical stance sets Life After Google apart from other technology books, offering a fresh perspective on the ethical and societal implications of technological progress.
For readers unfamiliar with blockchain or cryptography, Gilder’s writing is both accessible and engaging. He effectively breaks down complex ideas into digestible concepts, often using analogies and storytelling to illustrate his points. This makes the book suitable for both technology enthusiasts and casual readers interested in understanding the future of the internet.
In conclusion, Life After Google is a must-read for anyone interested in the intersection of technology, economics, and society. George Gilder presents a provocative and hopeful vision of a future where the internet is reimagined through the lens of blockchain technology. While his predictions may seem ambitious, they are grounded in a deep understanding of technology and history. The book challenges readers to rethink their assumptions about the digital world and encourages them to explore the potential of a new internet that prioritizes privacy, security, and individual empowerment. Whether or not one agrees with Gilder’s conclusions, Life After Google is certain to spark conversations and inspire fresh ideas about the direction of the digital age.
Appendix: What Is a Blockchain?
A blockchain is a digital ledger composed of a series of interconnected blocks that securely store data. Each block contains essential information, including transaction details, a unique cryptographic hash, and the hash of the previous block. These hashes link the blocks together, ensuring the integrity of the entire chain. Blockchains are decentralized and immutable, meaning data cannot be altered once it is added.
How Are Hashes Generated?
Each block is created using randomly generated transaction data, such as a payer, a receiver, and an amount. Additional data, including the block’s index, timestamp, and the previous block’s hash, is combined with the transaction details. This combined data is then processed using the SHA-256 (Secure Hash Algorithm 256-bit) hashing algorithm developed by the NSA. SHA-256 produces a fixed-size, irreversible output, making it ideal for securing blockchain data. The generated hash acts as a unique digital fingerprint for the block.
How Are Blocks Added?
The Blockchain begins with a “Genesis Block,” which is the first block in the chain and has no previous block. Subsequently, new blocks are generated automatically. Each block is linked to the one before it through its hash. As new blocks are added, the animation shows the transformation of raw transaction data into a unique hash displayed below each block.
What Is “Mining (P2P Proof of Work)”?
Mining is the process of validating and adding new blocks to the blockchain. It involves solving complex computational puzzles, known as “Proof of Work” (PoW). This process is decentralized (Peer to Peer or P2P), with multiple participants (nodes) contributing to the mining process. In the Bitcoin blockchain, those involved in the PoW validation operations (mining) are rewarded with the very bitcoins traded on the blockchain.
Example of a Computational Puzzle
A typical computational puzzle in blockchain mining involves finding a “nonce” (a random number) that, when combined with the block data and hashed using SHA-256, produces a hash that meets specific criteria. The criteria often require the hash to start with a certain number of leading zeros.
For example:
1. Initial Block Data: Suppose a block contains the following data:
index=2, payer=Alice, receiver=Bob, amount=50, previousHash=0000abcd...
2. Adding a Nonce: To solve the computational puzzle, a "nonce" (a random number) is added to the block data. The miner starts with a nonce of 1 and increments it with each attempt:
index=2, payer=Alice, receiver=Bob, amount=50, previousHash=0000abcd..., nonce=1
3. Generating the Hash: The combined data (including the nonce) is hashed using the SHA-256 algorithm to generate a unique hash. The goal is to find a hash that meets specific criteria, such as starting with a certain number of leading zeros.
4. Trying Different Nonces: The miner continues trying different nonces (1, 2, 3...) and generating new hashes:
- Nonce 1 -> Hash: 89f1d2e3... (Not valid)
- Nonce 2 -> Hash: 45a2c3d4... (Not valid)
- Nonce 3 -> Hash: 0000234f... (Valid!)
5. Successful Mining: When the nonce is 3, the hash 0000234f... meets the criteria (e.g., starting with four leading zeros). At this point, the block is considered mined, and the hash is added to the blockchain.
This example demonstrates how mining involves trial and error, computational effort, and adherence to specific cryptographic rules to maintain the security and stability of the blockchain network.
The difficulty of the puzzle is adjustable by changing the number of required leading zeros. More zeros make the puzzle more difficult, ensuring the blockchain remains secure and stable.
Why Is This Important?
The proof-of-work mechanism ensures that adding new blocks requires significant computational effort. This makes the blockchain resistant to tampering. If someone attempts to modify a block, they would need to re-mine all subsequent blocks, which is computationally impractical, particularly in a decentralized network.
This animation demonstrates how new blocks are added, how hashes secure the blockchain, and how the mining process contributes to the safety and integrity of the system in a simplified and visual manner.
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