Blockchain Smartnetworks: Bitcoin and Blockchain Explained

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

1. 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

2. Thesis 1 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

3. 2 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 Background Economics 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

4. Blockchain 3

5. Bitcoin- FinTech -Blockchain Growth 4 https:// angel.co/bitcoin , http://thefinanser.co.uk/fsclub/2015/02/the-fintech-scene-is-so-hot-its-boiling.html http ://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

6. Gartner Emerging Technology Hype Cycle 5 http ://thenextweb.com/insider/2015/04/16/bitcoin-is-the-worlds-most-dangerous-idea/ Cryptocurrencies added July 2014

7. How does Bitcoin work? 6 Download software wallet app Blockchain.info, Mycelium, etc. Transfer Bitcoin via QR Code / public key address See your transaction confirm, post to the blockchain

8. Blockchain Technology: What is it? 7 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 Application Layer Protocol Layer Infrastructure Layer SMTP Email VoIP Phone calls OSI Protocol Stack:

9. Blockchain (not Bitcoin) is the revolution 8 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

10. Smartnetwork vision Pushing more complexity through the Internet pipes 9 Information Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491 Sci-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 2016 1990 2025e 2050e 2075e Automated Propagation of Voting Policy Opinion Participation GBI Energy Trust Autonomy Recognition Economics Politics Ideas Health Collaboration opportunities Instantiation Upload integrity Smart-resources Smart-currencies 2090e Internet Smartnetwork

11. 10 Currency Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491 Property: Assets Inventory Securities: stocks, bonds, government issue, futures and options, FX contracts Hard assets: cars, houses, global supply chain, medical inventories ; Intangible assets: IP Money, digital payments, remittance Programmable 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 services Legal documents, contracts, wills, agreements

12. 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 11 Source: https:// blockexplorer.com

13. 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 (2 billion under-banked) Long-tail economics: any two parties can transact on the network (eBay of money) 12 Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491

14. Issue: hierarchy is not scalable 13 Sources: 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

15. 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 14 Sources : Coase, RH, The Nature of The Firm, 1937, http://www3.nccu.edu.tw/~jsfeng/CPEC11.pdf Decentralization Blockchain Bitcoin

16. Blockchain Economics and Finance Apparatus for constituting the present and the future 15 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

17. Decentralized Economics and Finance Current mode is one kind of system for organizing access to resources 16 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: Scarcity to Abundance Labor to Fulfillment 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 : Access instead of Ownership Topological Ranges instead of Point Values 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 Future Temporality Regime

18. Abundance Philosophy of Economics Realization of decentralized economics and finance 17 Source: 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

19. 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 18 Source: Swan, M. "Automation Economy: An Abundance Philosophy of Economics" In Emerging Technology and Unemployment. Palgrave Macmillan. Forthcoming.

20. Use Bitcoin to avoid Digital Identity theft 19 Amazon, Overstock, Newegg, etc. www.bitcoinvalues.net/who-accepts-bitcoins-payment-companies-stores-take-bitcoins.html

21. 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 20 http://www.bitcoinvalues.net/who-accepts-bitcoins-payment-companies-stores-take-bitcoins.html

22. How big is the market and is it liquid? Which cryptocurrency should I use? 21 https://coinmarketcap.com/

23. Bitcoin Price Volume Chart 22 https://coinmarketcap.com/currencies/bitcoin/#charts Trade volume increase

24. What is the blockchain? 23 https:// 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

25. How robust is the network? 24 https://bitnodes.21.co/ 5404 Global Nodes running full Bitcoind (Dec 2016)

26. Financial and Public Records Applications Financial instruments Currency Private equities Public equities Bonds Derivatives Commodities Spending records Trading records Mortgage/loan records Servicing records Crowdfunding Microfinance 25 http://forum.ethereum.org/discussion/1402/how-to-get-started-your-first-dapp-under-one-hour Public Records Land titles Vehicle registries Business incorporations Criminal records Passports Birth certificates Death certificates Voter Registration Voting Records Health/safety inspections Building permits Court records

27. 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 26 Asset-backed tokens, https ://openbazaar.org / , http://www.edgelogic.net/blocktrace

28. Decentralized Application (Dapp) Ecosystem 27 http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491 Project Name and URL Activity Centralized Equivalent OpenBazaar, BitMarkets, BitPremier https://openbazaar.org Buy/sell items locally Craigslist LaZooz http://lazooz.org On-demand ride service Uber, Lyft Twister http://twister.net.co Social networking, peer-to-peer microblogging Twitter, Facebook Gems http://getgems.org Social networking, private token-based social messaging Twitter, SMS apps Bitmessage https://bitmessage.org Secure messaging (individual or broadcast) SMS services Storj http://storj.io/ File storage Dropbox, Google Drive Onename https://onename.com/ BitID https://github.com/bitid/bitid Bithandle http://www.hackathon.io/bithandle Digital identity verification VeriFone, Verisign, Facebook

29. What are Smart Contracts? 28 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

30. Smart Contract Law Firm? 29 http://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

31. 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 30 Source: https:// www.cbinsights.com/blog/financial-services-corporate-blockchain-investments

32. 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 31 Sources: 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

33. 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) 32

34. Fleets: Secure, Automated Coordination 33 Source: 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

35. Blockchain IOT 34 http://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/1491920491 https://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 mechanism Smartcity Connected Car Orchestration Smarthome IOT and Personal Robotics Coordination

36. Blockchain Health Blockchain technology in health-related applications EMRs: Personal Health Record Storage and Access Personal health records stored and administered via blockchain Users key-permission doctors and other parties into records Health Research Commons (info processing) Aggregated personal medical records, quantified self data commons (DNA.bits), genome and connectome files Health Document Notary Services Proof-of-insurance , test results, prescriptions, status, condition, treatment, physician referrals Doctor Vendor RFP Services (Like Uber drivers) doctors and health practices bid to supply medical services; automated bidding via tradenets 35 http://futurememes.blogspot.fr/2014/09/blockchain-health-remunerative-health.html

37. Blockchain Genomics 36 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

38. Blockchains: Global and Liberty-enhancing 37 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

39. 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 38 http://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

40. 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 Traditional vote on outcomes (ex: GDP) 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 39 https://bitcoinmagazine.com/17066/first-blockchain-wedding-2 / , http ://www.bitnation-blog.com/latest-update-dec-22nd-2014/

41. 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 40 http://www.proofofexistence.com/

42. 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 41 http:// www.righto.com/2014/02/bitcoin-mining-hard-way-algorithms.html, http ://codinginmysleep.com/bitcoin-mining-in-plain-english/

43. Smartnetwork Application: Friendly AI Argument… Digital intelligences will be running on consensus-managed smartnetworks Good reputational standing is required to conduct operations Resource access, fund-raising, services-providing, contracts Consensus only validates and records bonafide transactions from ‘good’ agents Therefore all agents ‘good’ 42 Swan, 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.

44. Derrida: Ontology of Joycean Consensus 43 Derrida. 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

45. 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 44

46. Blockchain Philosophy Smartnetwork 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 45

47. Blockchain Art 46 Rio, Tel Aviv, Hamburg, Barcelona, Seoul, Tokyo, New York http://bitfilm.com/festival.html

48. Blockchain Art 47 http://cryptoart.com/ Fine art paper wallets

49. Blockchain Art 48 https://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

50. Blockchain Art 49 http ://fiatleak.com/ Data visualization as art

51. Blockchain Art 50 http:// www.quora.com/What-are-some-of-the-best-Bitcoin-visualizations Data visualization as art

52. 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 51

53. Blockchain Applications by Sector (selected) 52 http://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

54. Blockchain downside and risks? ISSUE 53 Satoshi Roundtable #3: Scaling Bitcoin Milan Oct 8-9, 2016 Hacking Scandals Mt 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 attacks Source: 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

55. Blockchain Strategies Leadership Edge B lockchain 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 54 Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491

56. Blockchain Strategies Leading with New Applications Re-invent value chain, identify… Digital value transfer opportunities Network intermediaries and coupling points Automation possibilities and new markets Example: b anks targeting larger customer base through blockchain-based eWallet solutions 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 Internal cost-savings, efficiency-improvement Quality assurance , test, audit, compliance, sales RFQ Finance, treasury, accounting, expense management 55 Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491

57. Conclusion 56 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

58. 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 Thank You! Questions?