Blockchain Smartnetworks: Bitcoin and Blockchain Explained
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Transcript of Blockchain Smartnetworks: Bitcoin and Blockchain Explained
U Penn, Philadelphia PA, Dec 9, 2016Slides: http://slideshare.net/LaBlogga
Bitcoin and Blockchain Explained
Melanie SwanPhilosophy & Economic Theory
New School for Social Research, NY [email protected]
Blockchain SmartnetworksBitcoin and Blockchain Explained
Part of a Series on Cryptophilosophycryptophilosophy
Dec 9, 2016Blockchain Explained
Thesis
2
Beyond digitalizing money, payments, economics, and finance, and governance,
smart property and smart contracts, blockchains secure automated fleet
coordination The implications could be an orderly transition
to the automation economy and trust-rich digital smartnetwork societies of the future
Dec 9, 2016Blockchain Explained 3
Melanie Swan, Blockchain Futurist Philosophy and Economic Theory, New School
for Social Research, New York NY Founder, Institute for Blockchain Studies Singularity University Instructor; Institute for Ethics and
Emerging Technology Affiliate Scholar; EDGE Essayist; FQXi Advisor
Traditional Markets BackgroundEconomics and Financial
Theory Leadership
New Economies research group
Source: http://www.melanieswan.com, http://blockchainstudies.org/NSNE.pdf, http://blockchainstudies.org/Metaphilosophy_CFP.pdf
https://www.facebook.com/groups/NewEconomies
Dec 9, 2016Blockchain Explained
Blockchain
4
Dec 9, 2016Blockchain Explained
Bitcoin-FinTech-Blockchain Growth
5https://angel.co/bitcoin, http://thefinanser.co.uk/fsclub/2015/02/the-fintech-scene-is-so-hot-its-boiling.htmlhttp://thenextweb.com/insider/2015/04/16/bitcoin-is-the-worlds-most-dangerous-idea/
Silicon Valley Bank: Global investment in FinTech is set to double from $10 billion in 2014 to $19.7 billion in
2015, and reach $46.1 billion by
2020
Dec 9, 2016Blockchain Explained
Gartner Emerging Technology Hype Cycle
6http://thenextweb.com/insider/2015/04/16/bitcoin-is-the-worlds-most-dangerous-idea/
Cryptocurrencies added July 2014
Dec 9, 2016Blockchain Explained
How does Bitcoin work?
7
1. Download software wallet app Blockchain.info, Mycelium, etc.
2. Transfer Bitcoin via QR Code / public key address 3. See your transaction confirm, post to the blockchain
Dec 9, 2016Blockchain Explained
Blockchain Technology: What is it?
8
Blockchain technology is the secure distributed ledger software that underlies cryptocurrencies like Bitcoin “Internet of Money” leapfrog technology; Skype is an app
allowing phone calls via Internet without POTS; Bitcoin is an app allowing money transfer via Internet without banks; ‘decentralized Paypal’
Internet(decentralized network)
Blockchain
Bitcoin
Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491
ApplicationLayer
Protocol Layer
InfrastructureLayer
SMTP
VoIP
Phone calls
OSI Protocol Stack:
Dec 9, 2016Blockchain Explained
Blockchain (not Bitcoin) is the revolution
9
Internet phase transitions
Phase I: transfer information Modernize publishing, books, music,
news, information Phase 2: transfer value (money,
property) Modernize of economics and finance Providing the digital payments layer the
Internet never had Instantiating the qualitative good of
trust in the infrastructure
Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491
Dec 9, 2016Blockchain Explained
Smartnetwork visionPushing more complexity through the Internet pipes
10
Information
Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491Sci-fi inspiration: Accelerando, Lady of Mazes, Blindsight, The Golden Age, Glasshouse
Confirmation of Automated Distribution of
Transfer of
Growing classes of activities for smartnetwork execution I: Information; II: Money, finance, economics; energy; supply chain, logistics,
transportation; health; IOT; III: identity, preference, intangible resources
Value Identity Preference
Registration of
20161990 2025e 2050e 2075e
Automated Propagation of
VotingPolicy
OpinionParticipation
GBIEnergyTrust
AutonomyRecognition
Economics Politics
IdeasHealth
Collaboration opportunitiesInstantiation
Upload integrity
Smart-resources
Smart-currencies
2090e
Internet Smartnetwork
Dec 9, 2016Blockchain Explained 11
Currency
Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491
Property: Assets
InventorySecurities: stocks, bonds, government issue, futures and
options, FX contracts
Hard assets: cars, houses, global supply chain, medical inventories; Intangible assets: IP
Money, digital payments, remittanceProgrammable smartmoney
Fundamental enabling infrastructure
Economics
Governance& Legal Services
Global-scale projects
Politics
Singularity
All contractual arrangements
Blockchain’s vast reach beyond currency
Financial instruments: mortgage, loans
Million-person genome banks, supply chain management, autonomous driving fleets
Voting, identity, citizenship, civic servicesLegal documents, contracts, wills, agreements
Dec 9, 2016Blockchain Explained
Why is it called blockchain?Blockchain: a chain of transaction blocks Every 10 minutes, the latest
block of submitted transactions is validated (by cryptographic mining) and posted to a single distributed ledger
Each new block of transactions calls the last block, so that the transactions are chained together sequentially, hence the word blockchain
12Source: https://blockexplorer.com
Dec 9, 2016Blockchain Explained
Blockchain crucial for the Singularity-class project: Financial Inclusion Just as the Printing Press and
the Internet flattened access to communicating information...
…blockchains are giving the power of the printing press to banking, credit, and money Access to economic and financial
systems (credit) as a basic human right (4 billion under-banked)
Long-tail economics: any two parties can transact on the network (eBay of money)
13Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491
Dec 9, 2016Blockchain Explained
Issue: hierarchy is not scalable
14Sources: What is Decentralization? http://futurememes.blogspot.com/search?q=datt.co, http://blog.midem.com/2016/04/blockchain-broken-music-industry/
Blockchains are a form of trust-making technology A system of checks and balances that is universal and
planetary-scale (Kardashev-level) New tiers of scalability are needed
Million-genome repositories (largest is 3700 currently), connectome databases to reveal brain structure
Dec 9, 2016Blockchain Explained
Smartnetwork theme: design Optimality Optimal mix of centralized and
decentralized models Rethinking Coase’s firm size
Manufacturing reorganization per electricity; industries rethought per decentralized networks Tighter supply chain integration Complexity design principles
Decentralization here to stay Proven decentralized scalability
paradigm: Internet Bitcoin, blockchain, decentralization
15Sources: Coase, RH, The Nature of The Firm, 1937, http://www3.nccu.edu.tw/~jsfeng/CPEC11.pdf
Decentralization
Blockchain
Bitcoin
Dec 9, 2016Blockchain Explained
Blockchain Economics and FinanceApparatus for constituting the present and the future
16
Bitcoin, Crypto-currencies Smart Contracts
Economics Finance
Spot, Cash Market Futures, Options Market
Present Future
Source: http://www.slideshare.net/lablogga/blockchain-payment-systems, http://www.slideshare.net/lablogga/blockchain-financial-networks, http://www.slideshare.net/lablogga/blockchain-temporality-smart-contract-timespecifiability-with-blocktime
Real-time payments Utility Settlement Coin (USC) (8/24/16)
Temporality Regime
Dec 9, 2016Blockchain Explained
Decentralized Economics and FinanceCurrent mode is one kind of system for organizing access to resources
17
The organizing assumption of economic systems has been scarcity; an orientation to the
production and distribution of scarce material goods. This no longer holds in an era of digital services, non-rival
goods, and complementarity
Mindset Shifts: 1. Scarcity to Abundance
2. Labor to Fulfillment3. Hierarchy to Decentralization
The organizing assumption of financial systems has been the control or at least prediction of the future value of assets and
liabilities; finance = credit (credit is really about trust). Also no
longer holding.
Mindset Shifts: 1. Access instead of Ownership2. Topological Ranges instead
of Point Values3. Assurity instead of
Insufficiency
Sources: http://futurememes.blogspot.com/2016/09/defining-blockchain-economy-what-is.html and New Economies and Finance at the New School: http://blockchainstudies.org/NSNE.pdf
Economics Finance
Present FutureTemporality Regime
Dec 9, 2016Blockchain Explained
Abundance Philosophy of Economics Realization of decentralized economics and finance
18Source: Swan, M. "Automation Economy: An Abundance Philosophy of Economics" In Emerging Technology and Unemployment. Palgrave Macmillan. Forthcoming.
Phase I: transition to Automation Economy Phase II: transition to Actualization Economy
A
B
C
Trust, Autonomy, Recognition
Dec 9, 2016Blockchain Explained
Technological Unemployment Key singularity-class challenge: orderly transition to the
Automation Economy Half (47%) of employment is at risk of automation in the next
two decades – Carl Frey, Oxford, 2015 Why are there still so many jobs in a world that could be
automating more quickly? – David Autor, MIT, 2015
19Source: Swan, M. "Automation Economy: An Abundance Philosophy of Economics" In Emerging Technology and Unemployment. Palgrave Macmillan. Forthcoming.
Dec 9, 2016Blockchain Explained
Use Bitcoin to avoid Digital Identity theft
20
Amazon, Overstock,
Newegg, etc.
www.bitcoinvalues.net/who-accepts-bitcoins-payment-companies-stores-take-bitcoins.html
Dec 9, 2016Blockchain Explained
Economic and privacy arguments for Bitcoin Vendor payments market
1-3% merchant transaction fee Hack-able ‘honey pot’ identity databases
Banking services market 5 bn individuals worldwide without access
to banking, financial, credit services Remittances market
$4 tn global market, 5-30% transaction fee; immediate funds transfer solution
Successful examples suggest demand for digital payments Starbucks mobile app, Apple Pay
21http://www.bitcoinvalues.net/who-accepts-bitcoins-payment-companies-stores-take-bitcoins.html
Dec 9, 2016Blockchain Explained
How big is the market and is it liquid?Which cryptocurrency should I use?
22https://coinmarketcap.com/
Dec 9, 2016Blockchain Explained
Bitcoin Price Volume Chart
23https://coinmarketcap.com/currencies/bitcoin/#charts
Trade volume increase
Dec 9, 2016Blockchain Explained
What is the blockchain?
24https://github.com/bitcoin/bitcoin, https://bitcoin.org/en/download, https://getaddr.bitnodes.io/
The open-source software upon which Bitcoin runs A technology protocol layer like TCP/IP
A transaction database, a decentralized public ledger of all transactions Giant ‘interactive Google doc spreadsheet’
that anyone can view and administrators (miners) continually verify and update to confirm that each transaction is valid
Literally blocks (batches of transactions) in a chain, a sequential ledger of transactions
Dec 9, 2016Blockchain Explained
How robust is the network?
25https://bitnodes.21.co/
5404 Global Nodes running full Bitcoind (Dec 2016)
Dec 9, 2016Blockchain Explained
Financial and Public Records Applications Financial instruments
1. Currency2. Private equities3. Public equities4. Bonds5. Derivatives Commodities6. Spending records7. Trading records8. Mortgage/loan records9. Servicing records10. Crowdfunding11. Microfinance
26http://forum.ethereum.org/discussion/1402/how-to-get-started-your-first-dapp-under-one-hour
Public Records1. Land titles2. Vehicle registries3. Business incorporations4. Criminal records5. Passports6. Birth certificates7. Death certificates8. Voter Registration9. Voting Records10. Health/safety inspections11. Building permits12. Court records
Dec 9, 2016Blockchain Explained
What is Smart Property? Register assets to blockchain via unique key
Blocktrace ledger tracks diamonds Real-time GPS LoJack tracking for any asset
Blockchain becomes an inventory, tracking, and buy-sell mechanism for all hard assets
Decentralized asset exchange Digital authentication access system
Blockchain-based keyless entry
27Asset-backed tokens, https://openbazaar.org/, http://www.edgelogic.net/blocktrace
Dec 9, 2016Blockchain Explained
Decentralized Application (Dapp) Ecosystem
28http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491
Project Name and URL Activity Centralized Equivalent
OpenBazaar, BitMarkets, BitPremierhttps://openbazaar.org
Buy/sell items locally Craigslist
LaZooz http://lazooz.org
On-demand ride service Uber, Lyft
Twisterhttp://twister.net.co
Social networking, peer-to-peer microblogging
Twitter, Facebook
Gemshttp://getgems.org
Social networking, private token-based social messaging
Twitter, SMS apps
Bitmessagehttps://bitmessage.org
Secure messaging (individual or broadcast)
SMS services
Storj http://storj.io/
File storage Dropbox, Google Drive
Onename https://onename.com/BitIDhttps://github.com/bitid/bitidBithandlehttp://www.hackathon.io/bithandle
Digital identity verification VeriFone, Verisign, Facebook
Dec 9, 2016Blockchain Explained
What are Smart Contracts?
29
Agreements between parties posted to the blockchain for automated execution
Cryptolaw: intersection of technological (inexorable, uninfringeable) and legal frameworks (flexible)
Smart Contract Examples: Bet on high temperature tomorrow Inheritance pay-out at age 21 or death of benefactor Mortgage with automatic interest-rate resets
Code: Ethereum and Eris https://github.com/ethereum/ https://erisindustries.com/
https://eng.erisindustries.com/smart%20contracts/2014/12/17/dennys-smart-contracting/ ,http://forum.ethereum.org/discussion/1402/how-to-get-started-your-first-dapp-under-one-hour,http://financialcryptography.com/mt/archives/001555.html
Dec 9, 2016Blockchain Explained
Smart Contract Law Firm?
30http://www.robotandhwang.com/attorneys/
Law is something to be radically reshaped by the emergence of technology, it is about the management and manipulation of data on an entirely new scale - Richard Susskind
Dec 9, 2016Blockchain Explained
Financial Services Distributed ledger
Instant transaction validation Settlement, clearing, audit Simpler, more secure, less
expensive financial services Use case applications
Industry-wide collaboration Securities asset registries Value chain efficiency:
custody, titling, insurance Financial-inclusion
addressable market Digital identity, banking
31Source: https://www.cbinsights.com/blog/financial-services-corporate-blockchain-investments
Dec 9, 2016Blockchain Explained
Energy grid smartnetworks Concept: the power grid of every
continent is an energy Internet “Quantized units” are energy:
kWh/kWm Use case applications
Automatic markets: off-hour and lowest cost demand fulfillment
Smart grid management Energy price and trade validation Resource self-pricing Source fungibility: wind, solar power P2P microgrid infrastructure
32Sources: Rifkin, J. The Zero Marginal Cost Society; https://www.newscientist.com/article/2079334-blockchain-based-microgrid-gives-power-to-consumers-in-new-york/
Cryptosustainability Micropolis Example:Peer-to-peer Microgrids
Dec 9, 2016Blockchain Explained
Supply chain & logistics grid smartnetworks Tamper-proof record-keeping
Register assets and inventory Assure provenance, custody Track quantity and transfer of assets
(pallets, trailers, containers) moving through supply chain nodes
Track purchase orders, change orders, receipts, shipment notifications
Assign and verify custody and product certification
Link physical goods to serial numbers, bar codes, RFID tags
Virtual reality rapid simulation and event-history keeping (>transactions)
33
Dec 9, 2016Blockchain Explained
Fleets: Secure, Automated Coordination
34Source: Blockchain Singularities :http://www.slideshare.net/lablogga/blockchain-singularities-65443340
Modern fleet management operation via digital smartnetwork coordination
Blockchain properties Secure, trackable, automated coordination of
large-scale projects with many items Automated system of checks and balances; all
transactions must confirm via smartnetwork Moves any sort of quantized/unitized packets on
the smartnetwork: energy, cars, synapse firings Fleet management
Autonomous vehicles, IOT sensors, social robotics, synaptic connections, deep-learners, medical nanorobots, planet terraformers, synbio agents, environmental cleanup bots
Dec 9, 2016Blockchain Explained
Blockchain IOT
35http://www.zdnet.com/article/internet-of-things-market-to-hit-7-1-trillion-by-2020-idc/, http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491https://gigaom.com/2014/09/09/check-out-ibms-proposal-for-an-internet-of-things-architecture-using-bitcoins-block-chain-tech/
M2M/IOT Bitcoin payment network to enable the machine economy The economic layer the web never had
IOT 2020: 26 bn devices in a $7 tn market Smarthome IOT networks (dist. privacy)
Self-mining ecologies Privacy orchestration: devices, personal
robotics, digital health assistants IBM Adept
Blockchain + Messaging + BitTorrent Blockchains as scalable communication and
coordination mechanismSmartcity Connected
Car Orchestration
Smarthome IOT and Personal Robotics
Coordination
Dec 9, 2016Blockchain Explained
Blockchain Health Blockchain technology in health-related applications1. EMRs: Personal Health Record Storage and Access
Personal health records stored and administered via blockchain Users key-permission doctors and other parties into records
2. Health Research Commons (info processing) Aggregated personal medical records, quantified self data
commons (DNA.bits), genome and connectome files
3. Health Document Notary Services Proof-of-insurance, test results, prescriptions, status, condition,
treatment, physician referrals
4. Doctor Vendor RFP Services (Like Uber drivers) doctors and health practices bid to supply
medical services; automated bidding via tradenets
36http://futurememes.blogspot.fr/2014/09/blockchain-health-remunerative-health.html
Dec 9, 2016Blockchain Explained
Blockchain Genomics
37
Jurisdictional regulation prevents individuals from having access to their own genetic data
http://genomesunzipped.org/2011/03/people-have-a-right-to-access-their-own-genetic-information.php
Dec 9, 2016Blockchain Explained
Blockchains: Global and Liberty-enhancing
38
Global governance for transnational organizations WikiLeaks, ICANN, Wikipedia
Benefits of blockchain administration Uplift to cloud from local jurisdictional regulations Universal administration mechanism for global organizations Structure promotes transparency, accountability, freedom Namecoin: decentralized DNS
http://www.forbes.com/sites/andygreenberg/2010/12/07/visa-mastercard-move-to-choke-wikileaks/
Snowden Affair
Dec 9, 2016Blockchain Explained
Blockchain Government Opt-in Personalized Government
Composting vs education Reputation-based ID system, voting,
dispute resolution, national income distribution, public documents registration and repository
Neighbor.ly Self-directed community bonds
Precedentcoin Crowdsourced legal services, justice
entrepreneurs, blockchain arbitration Sidekik
On-demand tele-attorney, private police
39http://www.bitnation.co/, https://bitcoinmagazine.com/17066/first-blockchain-wedding-2/,https://bitcoinmagazine.com/19813/sidekik-decentralized-video-streaming-storage/
World’s First Blockchain Marriage: David Mondrus and Joyce Bayo, October
5, 2014, Disney World FL, Coins in the Kingdom Bitcoin Conference, Jeffrey
Tucker (Liberty.me) presiding
Dec 9, 2016Blockchain Explained
Blockchain Representation and Voting Delegative democracy (Liquid Democracy)
Voting power temporarily vested in delegates not long-term representatives
Group proposition development Futarchy, two-step program
1. Traditional vote on outcomes (ex: GDP)2. Prediction markets to determine specific
proposals for achieving the outcome Random Sample Elections
Randomly selected individuals vote on a single issue, blockchain orchestration
Convergent Facilitation Register group needs as smart assets
40https://bitcoinmagazine.com/17066/first-blockchain-wedding-2/, http://www.bitnation-blog.com/latest-update-dec-22nd-2014/
Dec 9, 2016Blockchain Explained
Blockchain Legal Notary Service, Attestation
Register contracts, agreements, wills (Proof of Existence, Factom)
Register, protect, and transact IP (Monegraph, Ascribe) How it works
Hash + timestamp + blockchain record
41http://www.proofofexistence.com/
Dec 9, 2016Blockchain Explained
Blockchain Science and What is Mining?Bitcoin: world’s largest supercomputer @ 42 petahashes/second
Mining is the process of adding transaction records to the public ledger by performing a computing task that is costly to execute but easy to verify
Issue: mining is purposefully wasteful to deter malicious players
‘Green’ mining projects Primecoin Foldingcoin Gridcoin Zennet
42http://www.righto.com/2014/02/bitcoin-mining-hard-way-algorithms.html, http://codinginmysleep.com/bitcoin-mining-in-plain-english/
Dec 9, 2016Blockchain Explained
Smartnetwork Application: Friendly AI Argument…1. Digital intelligences will be
running on consensus-managed smartnetworks
2. Good reputational standing is required to conduct operations Resource access, fund-raising,
services-providing, contracts
3. Consensus only validates and records bonafide transactions from ‘good’ agents
4. Therefore all agents ‘good’
43Swan, M. Cognitive Applications of Blockchain Technology. Cognitive Science 2015: The Annual Meeting of the Cognitive Science Society: Mind, Technology, and Society, Pasadena CA, July 2015. submitted. Swan, M. Blockchain Thinking: The Brain as a DAC (Decentralized Autonomous Organization). Texas Bitcoin Conference, Austin TX, March 27-29, 2015. accepted.
Dec 9, 2016Blockchain Explained
Derrida: Ontology of Joycean Consensus
44Derrida. Ulysses Gramophone: Hear Say Yes In Joyce. Pp. 267, 296.http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491
Affirmation is not solo, “saying yes” is dependent upon another to hear it and acknowledge receipt
The affirmation relation is liberty-enhancing and totalization-resisting, the affirming and acknowledging parties, and the yes itself, remain distinct “The two responses refer to each other without having any
relationship between them. The two sign yet prevent the signature from gathering itself together [totalizing].”
The yes “addresses itself to some other which it does not constitute” The yes avoids its own totalization, “The yes, by responding and
countersigning, does not let itself be counted or discounted [totalized].”
Well-formed consensus: preserve the integrity of entities in a network of ad-hoc relations
Dec 9, 2016Blockchain Explained
Cryptocitizen Sensibility A new relationship with authority and
responsibility-taking Digital safety: Backing up our money Governance services vs. being governed
Trend: happened with news media, entertainment, stock-trading, health services; now happening with economics and politics
Freedom of choice, autonomy, and self-determination of economic and political systems as basic human rights
Responsibility for trust-generating behavior per reduced government involvement in decentralization
45
Dec 9, 2016Blockchain Explained
Blockchain PhilosophySmartnetwork Trust & Consensus Realities Trust is manufactured on
smartnetworks though consensus protocols and independent confirmations of truth states
Smartnetworks are a way of making new and pluralistic reality
Different network consensus protocols come to different truth states about the world, thus… …creating mulitple realities, and …the notion that realitiy is maleable and
can be created; gives portability with reality
46
Dec 9, 2016Blockchain Explained
Blockchain Art
47
Rio, Tel Aviv, Hamburg, Barcelona, Seoul, Tokyo, New York
http://bitfilm.com/festival.html
Dec 9, 2016Blockchain Explained
Blockchain Art
48http://cryptoart.com/
Fine art paper wallets
Dec 9, 2016Blockchain Explained
Blockchain Art
49https://bitcointalk.org/index.php?topic=98392.0
Cryptographic art
Someone used Bitcoin's ability to embed arbitrary text inside a
transaction to put an ASCII Art Ben Bernanke into the Bitcoin blockchain
Dec 9, 2016Blockchain Explained
Blockchain Art
50http://fiatleak.com/
Data visualization as art
Dec 9, 2016Blockchain Explained
Blockchain Art
51http://www.quora.com/What-are-some-of-the-best-Bitcoin-visualizations
Data visualization as art
Dec 9, 2016Blockchain Explained
Blockchain Literacy ‘Bitcoin MOOCs,’ ‘Kiva for literacy’
Peer-to-peer learning contracts Literacy beyond reading
Technical, Agricultural, Vocational Literacy Blockchain-based personal development
contracts QS-biometric utility function imputation and tracking Maslow chains, subjectivation and actualization chains
Development Economics 2.0 Decentralized credit bureaus, literacy contracts,
remittances, blockchain-tracked aid, microcredit, Open-source FICO scores Peer-vouched reputation
52
Dec 9, 2016Blockchain Explained
Blockchain Applications by Sector (selected)
53http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491
Crucial Blockchain Properties
• Cryptoledger• Decentralized network• Trustless
counterparties• Independent
consensus-confirmed transactions
• Permanent record• Public records
repository• Notarization time-
stamping hashes• Universal format• Accessibility
Government & Legal
• Transnational orgs• Personalized
governance services• Voting, propositions• P2P bonds• Tele-attorney services• IP registration and
exchange• Tax receipts• Notary service and
document registry
Economics and Markets
• Currency• Payments &
Remittance• Banking & Finance• Clearing &
Settlement• Insurance• FinTech• Trading & Derivatives• QA & Internal Audit• Crowdfunding
IOT• Agricultural & drone
sensor networks• Smarthome networks• Integrated smartcity,
connected car, smarthome sensors
• Self-driving car• Personalized robots,
robotic companions• Personalized drones• Digital assistants
• Communication (messaging)
• Large-scale coordination
• Entity ingress/egress• Transaction security
• Universal format• Large-scale multi-
data-stream integration
• Privacy and security• Real-time
accessibility
Health• Universal EMR• Health databanks• QS Data Commons• Big health data
stream analytics• Digital health wallet• Smart property • HealthToken• Personal
development contracts
• Large-scale infrastructural element for coordination
• Checks-and-balances system for ‘good-player’ access
• Community supercomputing
• Crowd analysis• P2P resourcenets• Film, dataviz• AI: blockchain
advocates, friendly AI, blockchain learners, digital mindfile services
Science, Art, AI
Dec 9, 2016Blockchain Explained
Blockchain downside and risks?ISSUE
54
Satoshi Roundtable #3: Scaling Bitcoin Milan Oct 8-9, 2016
Hacking ScandalsMt Gox, Ethereum DAO, Bitfinex
Silk Road, drug dealers, terrorists, criminals
Scalability, evolution Block size, sidechains
Mining Centralization
RESPONSE
Centralization temporary; wide-spread at higher-scale; move to 16 nm, solar/hydro-powered chips
Building resilient system constantly under open attack 24/7 (remember early Internet DNS attacks)
Blockchains are a universal technology available to all; non-criminal activity predominates
Early Internet: “this will never scale, insecure, not resilient;” Yahoo, AltaVista down for days due to DNS attacksSource: http://www.coindesk.com/bitcoin-scaling-conference-italy
Technology Risk
Perception Risk
Regulatory Risk, Economic Risk
National government regulation, bans
Governments modernizing economic infrastructure with blockchains too; licensing, open dialogue
Dec 9, 2016Blockchain Explained
Blockchain StrategiesLeadership Edge Blockchain is not a separate industry as
much as a new underlying technology with applications in every industry New kind of more sophisticated Internet
technology for transferring value Multiple blockchains by industry with different
classes of encryption and mining paradigms Money and financial assets Energy, health, IOT, transportation fleets
Developing a blockchain strategy Educate, via industry user groups Engage with consulting firms Prototype, test, launch applications
55Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491
Dec 9, 2016Blockchain Explained
Blockchain StrategiesLeading with New Applications Re-invent value chain, identify…
Digital value transfer opportunities Network intermediaries and coupling points Automation possibilities and new markets
Example: banks targeting larger customer base through blockchain-based eWallet solutions
1. Revenue-generating, customer-facing Offer blockchain-based services to clients Lead industry-wide blockchain initiatives: “Better EDI,”
single-ledger, supply chain inventory management Digital billing customer interface, tokenized interaction
2. Internal cost-savings, efficiency-improvement Quality assurance, test, audit, compliance, sales RFQ Finance, treasury, accounting, expense management
56Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491
Dec 9, 2016Blockchain Explained
Conclusion
57
Beyond digitalizing money, payments, economics, and finance, and governance,
smart property and smart contracts, blockchains secure automated fleet
coordination The implications could be an orderly transition
to the automation economy and trust-rich digital smartnetwork societies of the future
U Penn, Philadelphia PA, Dec 9, 2016Slides: http://slideshare.net/LaBlogga
Bitcoin and Blockchain Explained
Melanie SwanPhilosophy & Economic Theory
New School for Social Research, NY [email protected]
Blockchain SmartnetworksBitcoin and Blockchain Explained
Part of a Series on CryptophilosophycryptophilosophyThank You! Questions?