Discussion about this post

User's avatar
Ragu Bharadwaj's avatar

Great points re. formalizing an informal system. You got me thinking. Formalization likely makes sense if there are problems with the current system (a need for standardization, lack of safety, or inequality or an inefficient market which can only be corrected by rules). Some of the problems (like inefficient markets) may not need formalizing. They could just be solved by technology.

The worry is that when you formalize, it sets an architecture. So all the innovation happens on top of the architecture, as opposed to within and below the architecture too. e.g. once cars formalized the 4 wheel chassis, all innovations happened outside the chassis and not many cars had 3-wheels or wheels that could rotate 360 degrees.

Expand full comment
4 more comments...

No posts