I think this is along the right lines in that iterative improvements are the mechanism of nature.

Only question I have is: how is this any different than how society functions already?

The major disruption to the process of societal improvement is the hijacking of this process. This hijacking process happens equally frequently and equally disruptively by centralized (public) control as well as by individual (private) control.

The trick is to allow enough room for the machinery to function, to not repress the system so much that the parts can't move, because if the parts are allowed to move, the system will reject dysfunction, inefficiency, and monopoly.

This is how organized systems function already. So how does tauchain improve on this?