The effectiveness of distributed ledger technology to replicate the entropic behavior of nature

Abstract

The modern monetary systems encourage the competitive behavior which damages our environment. However, the Distributed Ledger Technology (DLT) has the potential to implement monetary systems with functionalities that encourage behaviors that benefit the environment. Therefore, the research question of this paper is: is the DLT the most efficient technology to implement a monetary rate based on entropy? Entropy is the most economical of all the physical laws of nature. Entropy reflects that energy and matter are degraded and dissipated, respectively, by their use and non-use due to the irreversible passage of time. An Entropic Monetary Rate could be considered like the Silvio Gesell´s Oxidation Rate, however, the first rate has a greater scope and a solid support based on the principles of physics. This theoretical research compares the scope of the implementation of an Entropy Monetary Rate through DLT, paper money and digital money. The main contribution of this work is to reflect the effectiveness of the DLT to apply an Entropic Monetary Rate with the purpose to replicate the natural functioning of the environment to the entire monetary system.