The internet has evolved through four protocols, each creating a new class of applications and wealth: TCP/IP, HTTP, SMTP, and Bitcoin. Bitcoin, the fourth protocol, is the first to introduce scarcity, a fundamental principle of economics, into the digital realm. It allows for the ownership of digital goods and assets, leading to the rise of digital currencies and the decentralisation of financial systems.
A fifth protocol, yet to be named, is proposed for the internet’s future. This protocol would introduce a decentralised trust network, eliminating the need for centralised institutions such as banks or governments. It would allow for the creation of digital assets that can be owned, traded, and manipulated without the need for a central authority, much like physical assets in the real world.
The fifth protocol could revolutionise the concept of ownership and trade, allowing for the creation of a truly global and open economy. It could also lead to the rise of new forms of social structures and systems, as well as new forms of wealth. However, its implementation is not without challenges, including the need for a robust and secure infrastructure, and the potential for misuse. Despite these challenges, the potential benefits of the fifth protocol are immense. It represents a significant step forward in the evolution of the internet and the digital economy.
Go to source article: http://startupboy.com/2014/04/01/the-fifth-protocol/