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


Blockchain

4


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


Gartner Emerging Technology Hype Cycle

6http://thenextweb.com/insider/2015/04/16/bitcoin-is-the-worlds-most-dangerous-idea/

Cryptocurrencies added July 2014


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


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

Email

VoIP

Phone calls

OSI Protocol Stack:


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



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


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


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


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


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


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


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


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


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


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.


Use Bitcoin to avoid Digital Identity theft

20

Amazon, Overstock,

Newegg, etc.

www.bitcoinvalues.net/who-accepts-bitcoins-payment-companies-stores-take-bitcoins.html


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


How big is the market and is it liquid?Which cryptocurrency should I use?

22https://coinmarketcap.com/


Bitcoin Price Volume Chart

23https://coinmarketcap.com/currencies/bitcoin/#charts

Trade volume increase


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


How robust is the network?

25https://bitnodes.21.co/

5404 Global Nodes running full Bitcoind (Dec 2016)


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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/


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/


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/


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.


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


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


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


Blockchain Art

47

Rio, Tel Aviv, Hamburg, Barcelona, Seoul, Tokyo, New York

http://bitfilm.com/festival.html


Blockchain Art

48http://cryptoart.com/

Fine art paper wallets


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


Blockchain Art

50http://fiatleak.com/

Data visualization as art


Blockchain Art

51http://www.quora.com/What-are-some-of-the-best-Bitcoin-visualizations

Data visualization as art


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


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


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


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



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



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?