Oddbean

Good point. Would be interested to hear if you have examples. But nostr finance built on top of a social system could have a web of retputation and trust. The free market solves half the problem, observed good reputation can generate honest micro finance projects built on taproot and nostr.

Agree. This is such a valid point. I think back to the first few centuries AD, and wonder what it was like. Nobody knows why Christianity took off, but a sound theory is that it was popularized by the merchants of corinth. Two principles I suppose they found helpful, were "dont steal" and "dont lie". We can use cryptogrophy to help with the first part, but the 2nd part is unsolved, and part of what I see as most of the problem. People will lie to make money, because there is no cost with doing so. Perhaps we need a digital analgue for the modern era to make not just smart contracts, but fair and honest contracts. Nostr finance w/ web of reputation might have a chance of working.

I think they may be a contemporary of the Maghribi. Here is a brief summary courtesy #ChatGPT The Maghribi traders operated under an informal but highly effective code of conduct that facilitated trust and cooperation within their trading networks. This code of conduct was not codified in formal legal documents but was based on shared cultural and religious values, mutual trust, and reputational mechanisms. Key aspects of this code of conduct included: 1. **Trust and Reputation**: Trust was the cornerstone of the Maghribi trading network. Merchants relied heavily on mutual trust and the reputation of their partners. A trader's reputation was built over time based on their honesty, reliability, and adherence to agreements. Breaches of trust could lead to severe social and economic consequences, including ostracism from the trading community. 2. **Reciprocity and Fair Dealing**: The principle of reciprocity was fundamental. Merchants were expected to deal fairly and honorably with each other, ensuring that transactions were mutually beneficial. Fair dealing helped maintain trust and long-term relationships. 3. **Informal Enforcement Mechanisms**: Instead of relying on formal legal systems, the Maghribi traders used informal enforcement mechanisms. Community members monitored each other's behavior, and information about trustworthy or untrustworthy individuals was shared within the network. Social sanctions, such as exclusion from future business opportunities, were used to enforce compliance. 4. **Kinship and Community Ties**: Strong kinship and community ties played a crucial role in maintaining the code of conduct. Family and community connections provided a support network and helped ensure that individuals adhered to the expected standards of behavior. 5. **Shared Religious and Cultural Values**: The Maghribi traders were often bound by shared Islamic religious values, which emphasized ethical conduct, honesty, and trustworthiness in business dealings. These shared values reinforced the informal code of conduct and provided a moral framework for commercial activities. 6. **Flexible and Adaptive Practices**: The code of conduct was flexible and adaptive, allowing traders to respond to changing circumstances and new opportunities. This adaptability was crucial for navigating the complex and dynamic trade environments of the medieval period. The Maghribi traders' code of conduct exemplifies how informal institutions and social norms can effectively govern economic activities and foster cooperation in the absence of formal legal frameworks.

Very interesting indeed. There was a great respect for Egypt at the time, in particular Isis / Osiris and the zoroastrian myths which informed some of Paul's ideas and the emergence of Christianity. On top of that the Greek tradition had made tremendous progress in the addition to knowledge, the invention of democracy and experiments in personal freedom that we inherit today. But was starting to break into factions, and in the first 2 centuries struggled to progress without a falsifiable scientic method. The Roman Empire was starting decline too, and into this vacuum emerged Christianity. There was obviously a need for fair and free trade in a time of chaos, some kind of written contracts, with rules. Codifying such a thing into a decentralized nostr financial and contract system, that is opt-in, might be a similar interesting experiment.

On enforcing the second part (don't lie) immediate thoughts for examples of organizations which succeeded for a time on this: -Merchants of Venice (family ties) -Medici and other banks -Hanseatic league for trade -UK's use of royal charters -and, of course, every religious or social in-group/out-group paradigm (where ostracism or shunning is a thing). Key to all of these, I think, may be that last part... the collective will to exclude based on bad behavior -or- perhaps also just not being part of the in-group. This has got me wondering whether only an inherently "exclusionary" organization can get closer to enforcing honesty...