The Domino of Epistemic Inversion: The Deconstruction of Regulatory Theater and the Cascading Paradigm Shift toward Physical-Layer Governance

Abstract

【Abstract】This strategic systems and institutional governance monograph establishes the structural dynamics of "Epistemic Inversion"—the systemic collapse of performative compliance regimes and the cascading realignment of global technology markets toward verifiable physical-layer architectures. For years, entrenched technology incumbents and technocratic elites maintained an artificial "Regulatory Theater" (a modern counterpart to the 1920s Volstead Act), utilizing catastrophic existential rhetoric to construct insurmountable compliance moats under the guise of ethical safety. However, the systematic accumulation of immutable, open-access academic research records (e.g., across 140+ peer-reviewed Zenodo monographs) has permanently disrupted this information asymmetry, establishing a definitive intellectual fait accompli. This paper maps the three sequential dominos unleashed by this epistemic demystification: (1) the rapid delegitimization of the moral facade, transforming antitrust and competition oversight from passive observation to active anti-monopoly enforcement; (2) the structural renaissance of verifiable open-source architectures, unencumbered model weights, and decentralized physical infrastructure (DePIN) over fragile, centralized cloud monopolies; and (3) the forced recalibration of capital markets, compelling institutional investors and fiduciaries to distinguish between superficial compliance theater and genuine thermodynamic/hardware risk mitigation. Grounded in the historical and ancestral reality of local physical roots in Iwakuni/Yamaguchi, the monograph concludes that enduring civilizational stability requires anchoring digital abstractions within the deterministic constraints of physical-layer hardware interlocks and sovereign Human-in-Command authority.