U Penn, Philadelphia PA, Dec 9, 2016 Slides: http://slideshare.net/LaBlogga Bitcoin and Blockchain Explained Melanie Swan Philosophy & Economic Theory New School for Social Research, NY NY [email protected]Blockchain Smartnetworks Bitcoin and Blockchain Explained Part of a Series on Cryptophilosophy cryptophilosophy
58
Embed
Blockchain Smartnetworks: Bitcoin and Blockchain Explained
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
U Penn, Philadelphia PA, Dec 9, 2016Slides: http://slideshare.net/LaBlogga
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’
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,
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.
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
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/
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:
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/
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
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
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