Tuesday, June 16, 2015

Rethinking Risk with Automated Blockchain Macroeconomic Indicators

Progress is underway to investigate and migrate many different parts of the banking, securities, and insurance industries to public and private blockchains. These operations include settlement and clearing, smart property digital asset registration and transfer of stocks, bonds, derivatives, private equity, and other instruments, and the structuring of more predictable insurance payouts. One next step is articulating how blockchains might be used more broadly across industries and economies for automated risk management and macroeconomic indicator generation. This could help meet the need for real-time knowledge about the health of financial systems, especially given their interdependence and global nature.

Automatic Macroeconomic Indicators
The pseudonymous property of blockchains could be a valuable parameter of transaction data structures that automatically relay meta-data as a semi-private input to large-scale open risk models [1] at the entity and macroeconomic level. Risk measurement and macroeconomic indicators could thus be produced automatically in real-time with tremendous aggregate transparency. The functionality could be built into fintech blockchains as a standard, with other organizations (like smart contract DAOs) to blend the data into macroeconomic statistics. Fintech standards bodies analogous to IEEE working groups could recommend protocols. Transaction meta-data aggregation could also engender a new class of economic indicators granularly measuring sophisticated parameters such as interlinkage, complexity, value-at-risk, and country-level inflows/outflows, and prediction markets and derivatives could run over these.

Hayekian Market Signaling
For automatically generated macroeconomic indicators, there would need to be a willingness to disclose exposure, whether pseudonymous or not, and whether on public or private blockchains. This could be compelled by regulatory entities, or better, volunteered as a market-signaling technique, just as the smart contract industry may fork into legally-compliant and a-compliant contracts. Prediction markets could be a further layer to elicit anonymously-voted opinions regarding data quality. This could facilitate the concept of markets as discovery in the Hayekian competitive currencies model and address systemic collusive tendencies and the predictive avoidance of collapses.

Immanence Philosophy of Risk
One effect of having granular, precise, real-time automated economic indicators and risk measurement systems is that it could enable more fundamentally our definition of risk to shift. As traditionally conceived, we have what is conceptually and emotionally a scarcity relationship with risk. Risk is something to measure, avoid, manage, and control, as exemplified by traditional finance and insurance models. There is the begrudging position of ‘no risk, no reward’ and ‘nothing ventured nothing gained,’ but this view is conceived in the scarcity of trade-offs, not in the abundance of making new bigger spaces for opportunity. Instead, risk could be reconceptualized as ‘taking a step,’ taking a step into an unknown of immanence, from an unknown yet supported downside and into a completely open upside. Immanence risk models could be realized through societal shared trust and the willingness to share information in comfortable ways to create the underlying layer supporting the open upside. A concrete example of this could be deploying open source FICO scores and decentralized credit bureaus with blockchain-based reputation structures where the global shared information trust model facilitates the local open upside possibility.

[1] Open Source Risk Model resources:
Hwang, J.H. Proposal for an Open-Source Financial Risk Model
Papadopoulos, P. OpenRisk.eu, Open Risk API (White Paper, Github)

Sunday, June 07, 2015

CryptoSustainability: Reinventing Economics

The new ‘Sensibility of the Cryptocitizen’ is about a rethinking our relationship with authority, and political and economic life design. It includes personal digital security practices like backing up our money, and more profoundly is not just about rethinking relationships of authority and power, and economic resources and exchange, but reinventing the models by which we use them. Perhaps never before has there been such a creativity that we are bringing to designing and trying different models and modes of life; prototyping as a life practice.

True autonomy is setting our own rules, economic, political, social, etc.; in every domain; setting our own rules for life per our own purposes and value systems. We are inventing new models that more directly address our local individual needs rather than accepting status quo models from the structured world.

Part of the ‘reinventing economics’ mindset is thinking more modularly and portably about resources, and where and how everything can be accomplished more fungibly and effectively, with a new responsiveness to meet needs dynamically. What if every resource had the Uber-like conceptualization of immediate resource delivery on demand? Not just food, transportation, products, and valet services [1], but more foundational resources too that involve space like lodging, showers, team coworking space, and office meeting space; on-demand pod space; portable mobile resource use.

There are some exciting examples of fungible, distributed autonomous space. One is the concept of mobile AirBnB, embodied by the Blackbird Bus, which uses city streets as a commons for on-demand locational parking of a 68-passenger school bus that has been converted into a luxury mobile office/living space for a startup company, and offers co-housing nights via AirBnB. There is Houslets, offering modular, portable, reconfigurable, and open-source living structures. Another example is using space to competitive advantage, such as autonomous political/judicial zones within countries, like the Zones for Economic Development and Employment (ZEDEs) in Honduras.

[1] The plethora of eDelivery services: Amazon Prime. Munchery. Postmates. Seamless. EAT24. GrubHub. Safeway.com. Whole Foods. DoorDash. Washio. TaskRabbit. FreshDirect. Homejoy. Uber. Google Express. Alfred.

Tuesday, April 14, 2015

Blockchain Government

Blockchain technology is starting to arrive to the extent that applications are being defined for different sectors, most prominently markets/finance/banking, government/legal, IOT, and health. In all of these venues, the thinking is that centralized models may be something of the past, and could be supplemented or improved by secure decentralized frameworks that could be more efficient, quicker, and less expensive. For example, in finance and banking interbank transfers currently take three days to clear, but this could be immediate.

The reason that secure decentralized ‘smartnetwork’ operations are possible is the maturity of the Internet. The Internet is now large enough and liquid enough in terms of global reach, billions of participants, and in-place infrastructure such that a whole new tier of applications is enabled like those using blockchain technology. Blockchain technology creates secure decentralized transaction networks. The technology combines the peer-to-peer file-sharing of BitTorrent with public key cryptography to form a network where independent parties (rather than a centralized authority) can confirm that transactions are unique and valid, and record them into a ledger. This means that transaction networks can be more decentralized, secure, and resilient, and also accommodate a much greater scale of activity since parties do not need to know and trust each other, just the system.

Government is a sector where blockchain applications could have a significant benefit and finally allow services that are personalized instead of one-size-fits all. Public services could be as individually-specific as a Starbucks coffee order. Blockchains could be a liberty-enhancing equality technology allowing individuals to be more empowered, participative, and involved. Governance might be the next venue where individuals can take more authority and responsibility for themselves. The Internet made this possible with financial instruments, an intermediary like a stock broker is no longer needed for selecting and buying-selling financial instruments like stocks, bonds, CDs, and mortgage products. Likewise in information and entertainment, the Internet has fractured traditional centralized industries and created a new sensibility where individuals select their own content. Health services is another example where patient-driven EMRs (electronic medical records), web-based test data, personalized genomics, and quantified-self wearables have led to a new sensibility of individuals self-advocating for health as biocitizens. The key point is that the nexus of authority has shifted to the individual per decentralized Internet models. Blockchain-based government services could trigger a similar shift in sensibility and a rethinking of authority

Decentralization concepts are already underway in government (Rescaling the State) with a focus on the important role of mayors as non-partisan administrators (If Mayors Ruled the World), and the rise of metropolitanism (21st Century is the Metropolitan Century and Metropolitan Revolution). These ideas could be deployed in more detail per several key properties of blockchain technology in government services, for example its being secure, decentralized, scalable, universal, granular, auditable, trackable, and transparent. Applications could roll out in two phases:

Basic Blockchain Government Applications
  • Transnational organizations – Correspondingly transnational governance structures for world-scale organizations like WikiLeaks, ICANN, and Wikipedia could be accountably and transparently coordinated by blockchains 
  • Document registrations – Blockchains could serve as the whole of a society’s public records repository
  • Voting – More secure and universal public electronic voting systems, and more transparent, usable, aggregatable data regarding representative issue voting records; faster results tabulation
  • Issue and proposition development – Blockchain-coordinated proposal development, validation, and community dialogue and participation, and short-term delegative democracy instead of elected representatives (Liquid Feedback
  • Campaign – More immediate, transparent, universal, and interoperable finance disclosure and tracking
  • Digital signatures and identity – Blockchain-based digital identity validation, signatures, proof-of-truth functions, escrows, passport services, and inclusive pseudonymous identity services for documented and undocumented individuals alike
  • Notary services - using blockchain technology's secure auditable record-logging functionality together with digital timestamping and pointers to electronic documents stored off-chain
Advanced Blockchain Government Applications
  • Personalized opt-in governance services – Individuals could enroll in competitive personalized governance services (locality-provided or vendor-provided), paying for preferred services, such as composting, or education. Other personalized government services could include: reputation-based ID systems, voting, dispute resolution, national income distribution, public documents registration and repository (Bitnation, facilitator of the world’s first blockchain marriage October 5, 2014)   
  • Blockchain public finance services - Self-directed community bonds (Neighbor.ly), whose creditworthiness could be facilitated and evaluated with blockchain-based mechanisms such as Ricardian contracts, such as those contemplated by Greece to provide assurance regarding tax receipts
  • Real-time documented legal services - On-demand tele-attorney consultation, rights advocacy, law enforcement interaction, and private policing (Sidekik)
  • Futarchy prediction markets - Two-step voting process on outcomes and strategies for their attainment rather than individuals as representatives 
  • Token issuance and management - Civic tokens (convertible to cryptocurrencies like Bitcoin or fiat currency, or accepted directly) could be issued for guaranteed basic income initiatives, health services, EBT/foodstamp programs, or other community spending initiatives to improve efficiency and reduce fraud

Sunday, April 05, 2015

Philosophy of Big Data

Big data is growing as an area of information technology, service, and science, and so too is the need for its intellectual understanding and interpretation from a theoretical, philosophical, and societal perspective.

The ways that we conceptualize and act in the world are shifting now due to increasingly integrated big data flows from the continuously-connected multi-device computing layer that is covering the world. This connected computing layer includes wearables, Internet-of-Things (IOT) sensors, smartphones, tablets, laptops, Quantified Self-Tracking devices like the Fitbit, connected car, smarthome, and smartcity.

Through the connected computing world, big data services are facilitating the development of more efficient organizing mechanisms for the conduct and coordination of our interaction with reality.

One effect is that our stance is moving from being constrained to reactive response to now being able to engage in much more predictive action-taking in many areas of activity.

Another effect is that a more efficient world is being created, automating not just mechanical tasks, but also cognitive tasks. This paper discusses how a philosophy of big data might help in conceiving, creating, and transitioning to data-rich futures.

 More Information: Presentation, Video, Paper

Monday, March 30, 2015

Blockchain Thinking: The Brain as a DAC (Decentralized Autonomous Corporation)

Blockchains are a new form of information technology that could have several important future applications. They could be an explosive operational venue for new kinds of autonomous agents like DACs, distributed autonomous corporations. A DAC is a corporation run without any human involvement through a set of business rules based in software code. It is called a ‘corporation’ because it typically engages in corporate operations like fundraising, providing services, and making profits for shareholders. Blockchains are a software protocol upon which digital cryptocurrencies like Bitcoin run.

One potential application is blockchain thinking, formulating thinking as a blockchain process. This could have benefits for both artificial intelligence and human enhancement, and their potential integration. Blockchain thinking could be conceived as an input-processing-output computational system with several features whose benefits might include the ability to orchestrate digital mindfile uploads, advocate for digital intelligences in future timeframes, implement smart-contract based utility functions, instantiate thinking as a power law, and facilitate the enactment of Friendly AI.

Top 4 Killer Apps: Brain as a DAC:
  1. Friendly AI – Digital intelligences will likely not be running in isolation, they will want to conduct operations on smartnetworks that are possibly managed by consensus models or other mechanisms. Any agent wanting to conduct transactions on a smartnetwork will need to be in good reputational standing to do so. Smartnetwork operations could include accessing information and other resources, fund-raising, entering into contracts, and offering services. The consensus only validates and records bonafide transactions from ‘good’ agents. Thus only friendly players would be able to have their transactions executed, and that is how friendly AI could be enacted. There are some objections to this argument, but the key point is that blockchains are a checks-and-balances system that could potentially encourage certain kinds of behavior.
  2. Blockchain Deep-Learners: A crucial moment in AI research was finally having large enough data stores over which to run machine learning algorithms. Google demonstrated this with news, translation, and most recently image recognition of cats in YouTube videos. A similar ‘big data’ argument can be made for thinking where large databases of personal connectome files might lead to an understanding of how thoughts are actually represented in the brain. This understanding could inspire new classes of AI applications. As is currently being explored for EMRs and personal genomes, blockchains could be a useful privacy and access control mechanism for permissioning different parties to the large and sensitive data files more granularly Personal connectome files could also be orchestrated by blockchain processes.
  3. Blockchain Advocates - One of the great potential benefits of blockchains could be instantiating smart contracts as your independent third-party advocates in uncertain future timeframes. An element of the business model that needs to be established is trustworthy oracles for confirming information. The Wikipedia of the future could be a blockchain-based oracle service to look up the current standard for digital mindfile processing, storage, and security as these standards would likely be advancing over time. “You are running on the current standard, Windows 36 and a Lloyd Quantanium 3,” your smart contract valet informs you. Thus, blockchain smart contract advocates could help digital intelligences and AI DACs feel more secure in their future survivability and also humans more comfortable in uploading their digital mindfiles.
  4. Digital Mindfile Services – Already there may be many different representations of you online, and your digital identity. Over time these could become more explicitly a full and fidelitous ‘digital you’ for backup purposes (like stroke rehabilitation) or otherwise. There are already some existing online mindfile services like LifeNaut and CyBeRev. Presumably machine-learning and deep-learning algorithms will eventually crawl the web to assemble ‘digital you’ files in an automated manner, aggregating social media, photos, linkedin profiles, forum comments, academic or other published writings, etc. into a composite you, including with imputations about your value system and goals. Later brain scans and personal connectomes can be added to this data store, as well as real-time lifelogs, memory logs, idea logs, and EEG brain activity logs from quantified self EEG rigs. This could lead to being able to instantiate your mindfile as a DAC and personal thinking blockchains, enabled to carry out digital tasks on your behalf.

Beyond these killer apps of Blockchain Thinking, there could be more sophisticated uses of blockchains for computational thinking. One could be logging all of an agent’s memories and ideas as discrete units that are encoded, stored, and universally-accessible, perhaps with multiple copies and versions (such as the soft-hashing of ideas in development) that are then deployed in smart contract DACs. Another is that processing might be instantiated in a massively distributed architecture that is not available in human brains, yet still comprises the non-linearity of human thought. Third, blockchain thinking might give rise to new forms of consensus models such as self-mining ecologies and proof of intelligence, and make use of demurrage principles to redistribute brain currencies like ideas and long-term potentiation. Blockchains and blockchain thinking might be not just a tool for the immediate progress of intelligence, but also for the longer-term transition to a world of multispecies intelligence living cohesively and productively in digital societies.

More details: Texas Bitcoin Conference Presentation, Paper, Video

Sunday, March 22, 2015

Immanence Reputations of Intelligent Instances running on Smartnetworks

One vision of the future is digital societies, comprised of different forms of intelligence like blockchain AIs, smart-contract DACs, and human mindfile uploads all running on smartnetworks. Verification of such digital identities may well be required for smartnetwork access. We are already living in a prototype of this world now, in the sense that access to digital properties requires digital identity verification. Many websites invite logging in with Facebook or Twitter as an already-established digital identity heuristic.

Also in the contemporary world, we are currently constrained to an embodied form, but there would be no such requirement in the digital societies of the future. Digital identity could become so distributed, portable, copiable, open-sourceable, sharable, malleable, and shardable, that it no longer makes sense to think in terms of entities. Instead of entities, personal identities, or embodied containers, there could be ephemeral instances; thinking, informational, actional, enjoyful, subjectivational instances. The question would then be how to enable smartnetwork operations in a post-entity society, perhaps one in which ‘ephemeral instances of capability and creativity’ have replaced identity-bounded entities.

One answer is that reputation could still matter. Even if not a full-fledged identity-entity, any instance, any measurable quantum, any participation no matter how ephemeral could still have a reputation. Reputations could become a lot more complicated, measuring different levels like actor, action, and intention, and also line-item credit for contributions and new ideas. Composite team reputations could be calculated for sharded groupmind participations. All this is could be possible through technology like blockchains that afford more granularity and accessibility in record-keeping.

Thus teputation might persist as a validation mechanism, even in advanced scenarios like post-entity digital societies. However, the trick will be to enact reputation assessment schemas that are not completely externally-imposed and outside the purview of the agent being evaluated. Preferable is re-envisioning reputation as a mechanism to empower the liberty and expression possibilities of the entities or instances being reputationified. This is an immanence reputation, one that is reflective of criteria self-determined by the agent and that accentuates its possibilities. The predictive analytics of the big data era could be applied to the development of reputational mechanisms to encourage agent futurity and potentiality realization as opposed to those that solely based on past acts.

Sunday, March 15, 2015

Cogntive Enhancement can Integrate Man and Machine

Cognitive enhancement should be conceived as the philosophical issue of the greater subjectivation possibilities for man, as opposed to primarily a bioethical concern. The current world is one in which man and technology are increasingly interlinked. One high-stakes endeavor is cognitive enhancement, of which there are different working definitions. A precise account is that cognitive enhancement is the augmentation of human skills, attributes, and competencies through the use of technology, medicine, and therapy designed to increase human performance capability (Hildt). Another is that it is the amplification or extension of core capacities of the mind through improvement or augmentation of internal or external information processing systems (Bostrom). Another is it refers to any expanded or new capacity of a human being (Buchanan). The salient distillation is that cognitive enhancement is the targeted improvement of natural human cognitive abilities.

The motivation for cognitive enhancement could be twofold. First, there are the obvious practical benefits of improved perception and memory. However, beyond this, more profoundly the reason for seeking improved cognition is the implication that it can facilitate our own growth and development as humans, actualizing ourselves and our potential more rapidly and effectively. Cognitive enhancement is an important topic for investigation because it examines our existence and also the human-technology relation. Increasingly powerful science and technology tools are emerging that may have the potential to dramatically enhance human performance, and perhaps redefine what it is to be human. Technology advances at a much higher rate than man subjectivates, and man and technology are increasingly being integrated together, with technology no longer being seen as an external tool, but as an embedded presence, such that man and technology are co-evolving and subjectivating together. The rights kinds of cognitive enhancement applications might be of benefit for both humans and technology entities, and their potential integration.

Bostrom, N., and Sandberg, A. (2009). "Cognitive enhancement: methods, ethics, regulatory challenges." Sci. Eng. Ethics 15, 311–341.
Buchanan, A. (2013). Beyond Humanity: The Ethics of Biomedical Enhancement. Oxford UK: Oxford University Press.
Hildt, E. and Franke, A.G., Eds. (2013). Cognitive Enhancement: An Interdisciplinary Perspective. Dordrecht DE: Springer.

Sunday, March 08, 2015

Blockchain Thinkers and Smart Contracts to take over the World?

Automatically-executing smart contracts and their impact on society has been contemplated in many different contemporary science fiction works like Daemon (Suarez), and Accelerando and Glasshouse (Stross). The interesting point is that artificial autonomous agents are becoming increasingly full-fledged participants in the real-life contemporary world. There are many forms of artificial intelligence in development, and also the advent of new kinds of information technology like blockchains.

Blockchains could be an explosive operational venue for new kinds of autonomous agents like distributed autonomous corporations (DACs), a long-envisioned concept in computing and science fiction. Blockchains are a universal permanent public transaction ledger where smart contracts can be encoded to conduct certain activities in the future. For example, a smart contract could be used to specify a bet between two parties about the maximum temperature tomorrow. The smart contract, itself being online, will automatically check the temperature tomorrow per a pre-specified information oracle (like an Internet-based weather site) and pay out the proceeds to the winning party. Similarly, more complicated arrangements like mortgages (with interest rate resets) and wills (payout per a person’s death) could be encoded in smart contracts.

Far more complicated smart contracts could also be specified, for example for DACs where all corporate documents are encoded to blockchains. This would include the operating charter, governance rules, financial statements, client contracts, licenses, and other documents for orchestrating all manner of corporate conduct. A DAC would engage in the full suite of activities conducted by any physical-world corporation, except that all operations would be triggered to execute automatically per blockchain-based smart contracts. Since all of the DAC’s activities are blockchain-registered transactions, its operations are transparent and publically-inspectable on demand at any moment. Other advanced entities could include Blockchain Thinkers and fully-autonomous Blockchain AIs.

Smart-contract entities are a new concept that is not presently part of everyday human life, but is contemplated in science fiction works such as Daemon (Suarez), Accelerando and Glasshouse (Stross), and the Golden Age trilogy and Hermetic Millennia (John C. Wright). These narratives provide various portrayals of what life might be like with humans and autonomous corporations living in coexistence. On one hand, there are many potential efficiency and transparency benefits that facilitate societal interaction as agent motives and activities can be observed more closely and constitute a truer measure of reputation. On the other hand, DACs are a monolithic code entity that may execute unstoppably despite changing world conditions. Code has always been law (inexorably-executing), but the context for human interaction with such code has been more limited. In the current connected world, humans may be increasingly living side-by-side with different gradations of code-based sentient entities such as personalized robots, artificial companions, Internet-of-Things smarthome networks, self-driving connected cars, and Blockchain Thinkers.

Sunday, March 01, 2015

New Legal Regime for Blockchain-based Smart Property and Smart Contracts?

Beyond the already wide-ranging digital currency and financial transaction applications for blockchain technology, there is another class of applications that could allow a complete reconfiguration of law and government. Blockchains are a new form of decentralized information technology, the trustless cryptographic public ledger system that underlies digital currencies like Bitcoin. Some of these potential application in law and government are that in the future, all property (hard and soft assets, and intellectual property) could be registered and transacted via blockchains as smart property. Likewise, all forms of legal agreements, contractual relationships, and governance could be enacted through code-based smart contracts.

An important consideration raised by the possibility of smart contracts and systems of cryptographically-activated assets is whether a new body of law and regulation is required to distinguish between technically-binding code contracts, and more flexible legally-binding human contracts. Contract compliance or breach is at the discretion of human agents in a way that it is not with blockchain-based or any kind of code-based contracts. Since it could be nearly impossible to enforce smart contracts with law as currently enacted (for example, a decentralized program already launched and running is difficult to control, regulate, or sue for damages), the legal framework is essentially pushed down to the level of the contract. It is not that lawlessness and anarchy would ensue with smart contracts, but the implication is that legal frameworks would become more granular and customized to the situation. Parties agreeing to a contract could choose a legal framework just as jurisdiction is selected as a parameter now. Thus smart contracts impact not just property law and contract law, but more broadly the notion of the social contract within society.

Sunday, February 22, 2015

Top 5 Immediate Money-Making Applications of Blockchain Technology

The right question is not whether Bitcoin is over or under-valued, or over or under-hyped, but what the biggest potential money-making applications might be. While we wait for consumer-ready cryptocurrency applications to be presented to us by the financial services industry and other trusted providers, in the progression of ATMs, online billpay, eStatements, and Apple Pay, there are many other opportunities to be explored.
Blockchains could be the last piece of core infrastructural technology needed to facilitate the machine learning revolution in the same progression as the industrial revolution, only quicker.
  1. Banking 2.0: The first and most obvious application of blockchain technology is the opportunity to reinvent the banking and financial services industry. The current monetary system is far too slow - it takes days and weeks to transfer funds, where cryptocurrency transactions are received immediately anywhere in the world. Sending a payment to a software development team in India means people receiving money instantly, and at a fraction of the traditional transaction cost. This could mean a tremendous speed-up in the velocity of money, and a way to allow legacy banking systems to interoperate, reorganize themselves, and make the whole way they do business more efficient. 
  2. Financial Markets. In financial markets, one clear application of blockchain technology is algorithmic trading and back office operations. High-frequency trading could be taken to the next level implemented in smart contract DACs (decentralized autonomous corporations) and executed by semiautonomous agents with the ability to act more quickly and better crawl information sources for price, news, and sentiment changes. Similarly, whole tiers of back-office operations like clearing currently handled by people-agents could be handled by blockchain-agents. The automation economy is well under way, and blockchains provide the final required checks-and-balances feature of accountability. Blockchains instantiate a robust technology record of all transactions in a universal ledger system that is available for future lookup on-demand at any moment. Financial services businesses like the mortgage industry could implement smart property via blockchains as a universal asset registry and transfer system, and smart contracts for payment automation, interest rate resets, and securitization packaging. 
  3. RTB and BI Automation. In the same vein as smart contract-based algorithmic trading, blockchains are also well-suited for implementation in other automated high-frequency markets like real-time bidding for advertising and business intelligence. These are already heavily machine algorithm-based markets that could be easily facilitated by being instantiated in blockchains. Again there is quicker, better, more-trackable, more-efficient, permanent, universal worldwide execution, together with record-keeping, monitoring, and tracking. The RTB market is billions of dollars at present and estimated to grow to $42 billion in the next three years. Likewise automated business intelligence is big business, and big data, for example, domain name hosting services use machine learning algorithms to continuously obtain competitive data points for standard services such as the cost of 1-year hosting with 2 GB of storage.
  4. Blockchain IOT and M2M. We think cryptocurrencies might make our human lives easier, and they do, but even more so, they are for the machine economy. Cryptocurrencies are the economic layer the web never had, and can facilitate not just remuneration, but also the communication, coordination, and tracking of all machine-to-machine and machine-to-human interactions. While two thirds of people are estimated to be online in five years (from the current one-third), 25 billion things are forecast to be online by 2020. A corresponding Internet-of-Money is needed to organize this Internet-of-People and Internet-of-Things, for example seamlessly facilitating a connected car’s progression from smarthome IOT network to smartcity highway to automated city center parking. IBM's Adept announcement at CES is an early example of the idea of smartnetwork IOT coordination using blockchain technology.
  5. Blockchain Thinkers. Not only is blockchain technology a potential means of enacting Friendly AI, it is more broadly a new concept and tool for instantiating intelligent computing operations in a blockchain architecture. This could have implications for both the development of artificial intelligence and human cognitive enhancement. DeepMind's Neural Turning Machines as an external memory for machine learning algorithms is an example of this kind of instantiation structure in artificial intelligence. For cognitive enhancement too, a blockchain could be the tool that makes lifelogging useful, recording every thought as a transaction in a blockchain memory, for search and recovery later, for example in the cases of Alzheimer's disease and stroke rehabilitation. One implication of Blockchain Thinkers is Blockchain Advocates. Blockchain Advocates are blockchain-based smart contracts as a new form of independent third-party advocate that can act on your behalf in future time frames. Right now you can set up smart contracts to monitor your smarthome IOT network, for example pinging you if the security system goes offline. In the future, your smart contract advocates could confirm that your digital mindfile is still running and being backed up appropriately, doing future real-time oracle lookups. “You’re still running on the current standard, Windows 36” your smart contract butler informs you. (More information: Blockchain Thinkers: The Brain as a DAC and Cognitive Applications of Blockchain Technology).
Bitcoin and blockchain technology could be just the first application of decentralization as a new form of information technology. 
Overall, blockchains are a new class of decentralized information technology for the potential execution of any kind of administrative task more efficiently, from all applications of money and finance, to government to health. Blockchains are a global-scale coordination mechanism - quicker, more transparent, more participative, and more accessible. Blockchains are a supercomputer for reality in the sense that they are a management tool for any system that can be quantized or divided into discrete elements or constituent parts. Bitcoin as the current ‘legacy’ cryptocurrency with more entrenched network effect adoption than other cryptocurrencies might not be the final or enduring cryptocurrency. Likewise the blockchain architecture as currently instantiated with questionably expensive and wasteful proof-of-work mining operations might not be the final architecture. However, it is harder to argue that decentralization as a new concept and class of information technology is not here to stay given the liquidity and penetration reach of the Internet. Focusing on end-user applications could help Bitcoin shift from its nacency into a more mature phase of cryptocurrency industry development, becoming a value currency, not just a development currency or speculative currency.

More Information: Swan, M. (2015). Blockchain: Blueprint for a New Economy. O'Reilly Media.