DIGITAL CAPITALISM: NETWORK/HIERARCHY, VECTOR

Abstract

This article is about the theme of digital capitalism considered by the network and vectoralist approaches. Traditionally, the transition to the technological era in economic development connected with the tendency of the description and conceptualization the world in terms of «network». The network principle has replaced on the tradition ways of the social relations organization based on hierarchical/vertical principle. Network brings horizontal logic of different types of relationships building that realizes the democratic values of equal access to resources and distribution of wealth. 

The research represents conceptualization of the transition to the digital economy through the creation of programming language (Altair Basic)/code and the program Linux in terms of the key development which changed the world. Originally, the programming language wasn’t sale and nobody owned. The creation of code became the beginning for the network as such principle of economic and social organization which based on the logic of open access to information, cooperation and equality. The creation of the Windows operating system changed the situation: the programing language became the object of possession and Bill Gates’ company became the first monopolist in digital economy. Then from now on, the network change it’s structure and become complex, integrated. The network begin to reproduce the hierarchical principle. The network transforms to the capitalism of platfoms where principles of growth, preferential attachment and freedom of choice work. Complex structure of the network based on the principle of «inclusion» (greatest possible number of people) and «power distribution» of preferences, thus hierarchy become the immanent to the network that lead to the reproduction of inequality. Vectoralist approach shows that the result of this tendency is the emergency of the new classes «vectoralists» and «hakers» which are in conflict in between and with still existing class of «capitalists». This struggle is the key in the question of the financial and cognitive allocation in the world.