Blockchain Travel Apps

Cryptocurrencies such as Bitcoin and blockchain technology could have many useful and novel applications in the travel industry, for both individuals and business travelers, and also host destinations that are interested in attracting visitors.

1. Money - The first and most obvious blockchain travel application is money, taking advantage of Bitcoin or other cryptocurrencies for digital payments. Foreign currency exchange is an expensive hassle, and it could be much easier to pay with Bitcoin directly from a smartphone, when possible. If it is not possible to pay with Bitcoin, another crypto money application is obtaining local currency through worldwide Bitcoin ATMs or converting money from Bitcoin to local currency through a crypto exchange. Loyalty programs could be another crypto application, where blockchains could track point-garnering activity as it occurs, possibly denominated in crypto token that could be easily fungible and readily convertible to awards.

2. Passport - Another crypto travel application is storing important documents on the blockchain such as passports, visas, permits, identification cards, and driver’s licenses. One benefit is that documents presented in person could be confirmed with an Internet look-up of their blockchain-registered version. Another benefit is having easily-accessible back-up copies in the event of loss. Other new ideas expand the traditional notion of identity, for example beyond nation state citizenship, world citizenship (projects proposed by Bitnation and Chris Ellis) and Estonia’s e-Residency program. Beyond identity documents, it could also be helpful to have immunization records and EMRs (electronic medical records) accessible by blockchain.  

3. Reservations - Managing all of the many details of travel - flight, accommodation, transportation, and tour reservations – can require a lot of coordination that might be managed seamlessly by a Travel DAC (distributed autonomous corporation). This blockchain-based package of smart contracts could track, orchestrate, and update changes in travel details and keep travelers on top of their schedules. This would be like having a more extensive version of TripIt (multiple travel reservations in one application including automated status-updating) with blockchain-based AI functionality. A Travel DAC for business travelers could feature expense-tracking and reimbursement. Other Travel DAC applications could include monitoring airline prices for optimal dates or routes, and suggesting vendors per user preferences, such as those that accept cryptocurrency (for example LaZooz as opposed to Uber, or decentralized alternatives to Airbnb).  

4. Insurance and Provenance - Travel insurance could be selected through decentralized peer-to-peer based alternatives to traditional insurance that might be cheaper and offer more certainty in the case of claims payout dates and amounts. Blockchain-based peer-to-peer dispute resolution mechanisms also might be employed to adjudicate travel claims. Another application when purchasing an item for example, could be validating the item’s provenance (origin) through a quick blockchain look-up using item-tracking functionality from Provenance (or in industrial use cases, SKU Chain).

5. Disaster - In special cases such as natural disasters, blockchain-based applications could be indispensable in coordinating and tracking aid donations and supplies to their end recipients. ‘Disaster chains’ could also be used to help in managing volunteers, facilitating rescue-tracking, and even possibly getting around the scalability issues of overly-taxed communications networks in the case of disasters (with lighter-weight communications messaging).

Satoshi Roundtable: Is Bitcoin Dead due to Scalability Issues?

Scalability was the most prominent issue discussed at the February 26-28, 2016 Satoshi Roundtable (the Bitcoin industry's annual technical meeting).

This is expected as scalability is an ongoing issue to be resolved for any cryptocurrency to achieve mainstream adoption.

Bitcoin as the most mature and liquid cryptocurrency is being pushed towards current limits which prompts urgency to attend to scalability and other issues.

Scalability is a hard problem, and needs to be resolved at some point if cryptocurrencies are to succeed, here with Bitcoin, or in future iterations of other cryptocurrencies.

There are different technical proposals for Bitcoin and it is not clear which might be best, or even if these are the right type of solutions.

However, it is also clear that we might not know without trying, so one or more solutions will need to be implemented.

One scalability design question for example is whether to knit together activity from large bodies of side chains, or have one monolithic processing architecture.

There could already be a split to industry-specific chains that implement different forms of scalability functionality.

A need for more robust prototyping environments and multiple core developer teams has been suggested, which could be good as cryptocurrencies are fundamentally new territory.

Whatever solutions arrive for Bitcoin may not be the final solutions for all cryptocurrencies and the bigger potential economic future of ubiquitous digital payments.

There are always a host of technical issues in the rapidly-evolving cryptocurrency space, and another concern is the reward structure for Bitcoin miners, which is due to change in July.

Compared to scalability, this is not as big of a concern impacting Bitcoin's overall viability as the mining market tends to resiliently resettle around different set points of miner demand, supply, and rewards.

Blockchain Financial Networks: Rethinking Risk and Finance with Automated Value Transfer

Internet transfers Information, and now Value
Blockchains are important because they constitute the next phase of the Internet, not just transferring information, but now transferring value: money, assets, and contracts. Blockchains are secure distributed ledgers, which can be implemented as globally-distributed financial networks. Ultimately, blockchain financial networks could automatically and independently confirm and monitor transactions, without central parties like banks or governments.

Fast-moving Crypto-economy
The crypto-economy is evolving quickly and it is crucial to watch and actively participate because
the uptake of blockchains could be extremely rapid, particularly by institutions. The crypto-economy is important to watch because:

1. whereas a year ago crypto-technology was heresy, it is now becoming commonplace
2. blockchains as a modernizing technology have a pervasive reach – including all cash, financial instruments, and contracts in economics and finance; and all legal, legislative, political, and governance operations 
3. the decentralized structure of crypto-technology implies a reorganization of the existing financial system; and eventually, political system

The key benefit of blockchains as a modernizing technology is that they allow assets to be transferred immediately, not taking 3 days to settle (t=0, not t+3). This has a number of efficiency improvements including decreasing counterparty risk, reducing cost, improving liquidity, and instilling trust in the system.

Figure 1. Crypto-economic Theory: Blockchain Financial Networks

Rethinking Risk
Blockchains, crypto-economics, and decentralization invite an explicit reconsideration of risk. Four risk regimes can be identified ranging from 1) traditional mutuality risk models (Lloyd’s of London) to 2) classical portfolio theory (CAPM, efficient frontiers, trinomial tress, value-at-risk) to 3) black swan risk models (more frequent unpredictable outsized events) to now 4) decentralized risk models. As we rethink the world of science through complexity, now too complexity is a model for rethinking risk. Part of the more robust consideration of risk is moving to a conceptualization of causality that is not exclusively straightforward and linear. Complexity math allows a rethinking of risk in decentralized network models of consensus trust.

Rethinking Finance
An institutional crypto-economy also calls into question the definition of finance. Finance can be seen as a spot and future contingency management system for assets and liabilities. In this definition, blockchains are improved form of contingency management, with greater precision, automation, and lower-risk. The Internet becomes a contingency management system with programmable money, smart contracts DACs, and distributed ledger transactions, all contributing to automated value transfer.

Figure 2. Transition: Labor Economy to Automation Economy

Realizing the Automation Economy
Distributed ledgers allow a more serious move into the Automation Economy, via secure value transfer previously unavailable with the Internet. Internet 1.0, the ‘non-secure’ Internet allowed the automation of several sectors such as news, information, entertainment, manufacturing, and to some extent health. Now Internet 2.0 seen as secure value transfer networks could facilitate the automation of the entire economic, money, finance sectors, as well as government, politics, and legal services. What is at stake is a fair and orderly transition from the Labor Economy to the Automation and Actualization Economy.

Automated value transfer is the bigger project of decentralization, algorithmic trust, and the automation economy.

A New Kind of Economic Philosophy: Network Economies of Abundance

Blockchain technology, as revolutionary as it is, is perhaps most revolutionary in exposing the corner of a whole new philosophy of economics that can be formulated as a Network Economics of Abundance. Not just a new economic theory, but a new philosophy of economics is required because the entirety of existing economic theory has been constructed around the assumption of scarcity, and reconfiguring our economic thought around abundance instead as a central parameter requires rethinking economics so profoundly as to be a new philosophical position that is outside the field of economics. Thus, it is timely to articulate a Philosophy of Abundance. Many different pieces have been emerging in the world that can be assembled into a description and future vision for this Network Economies of Abundance (Figure 1).

Figure 1: Network Economies of Abundance: A transformational philosophy of economics.

Click for a bigger chart.

Shifting from the Labor Economy to the Actualization Economy
First considering Paradigms, two positions can be articulated. First is Traditional Economies. We are familiar with traditional economic models where the organizing parameters are scarcity, control, hoarding, hierarchies, and relationships of power being held over others. The definition of economics concerns the production and consumption of goods and services, and success is measured by output (GDP). The goods and services that are valorized and measured in the formal economy are produced by monetary-based labor.

A second position is Network Economies of Abundance where the organizing parameters are completely reversed. This economics is based on abundance, access, availability, yes-and collaborative willingness, and power shared with others. Network Economies of Abundance are measured in fulfillment; though actualization, connection, purpose, and meaning. In a full, liberation economics, the measurement metrics are self-chosen by individuals and groups. The definition of economics has shifted, away from transactions, even if game theoretic, to interactions. Economics can be seen as a facilitation mechanism rather than a transaction mechanism. Economics becomes a discovery and exchange process, one of interaction, acknowledgement, collaboration, and creation.

Evolving Positions in Network Economies of Abundance

Network Economy: Already in the current world, distinctly different economic models have arisen and co-exist alongside the traditional model. This has always been true regarding the informal sector, and is now more recognizable. One feature that characterizes network economies is a free flow of information, and engaging and interacting with that information, and more generally active participation. Another feature is that there is a mindset shift to access rather than ownership, or at least an attunement to different ownership models, and the notions of rights, responsibilities and stewardship attached to each. There are peer-produced commons goods like Wikipedia, sharing economy properties like Uber and Airbnb, and there is a multi-currency society where other currencies such as attention and intention are monetized. Societal shared trust stems from individual identity being known by others.

Resource Grid Economy: This is what is starting to unfold now, the idea of Ubiquitous on-demand Resource Network Grids, which is fundamental in the mindshift to abundance. More and more resources are becoming fully dynamically available, lurking in the background as a resource blanket, to be called forth on-demand for use at any moment. For example, mind-controlled personalized drones could deliver on-demand items from an intention picked up by personalized QS EEG neuro-hacking rigs or smarthome personalized robots like Jibo, or the Nest. Ubiquitous resource grids are practical, and contribute to the ongoing mentality shift from scarcity to abundance. Time is freed for other higher-level cognitive engagement and enjoyment when resources are always-available on-demand, instead requiring cognitive effort to plan for availability. A simple example is having to know the bus schedule (keeping it loaded in memory) versus walking outside, opening up an app and seeing what bus is next. Societal shared trust is a function of agent reputation.

Crypto-Economy: The emerging crypto-economy uses blockchain technology and cryptocurrency tokens like Bitcoin to automate and facilitate human (and human-technology) interaction patterns. Decentralization as a new organizational paradigm extends our capabilities beyond hierarchical organizational models (both practically and values-wise (e.g.; more autonomy for all agents)) into trustless very-large scale models for coordinating world-scale activity. A million cryptocurrency tokens could bloom as the community token of individual cryptocitizens and groups for coordinating local post-monetary economies like basic income initiatives and demurrage programmable currency redistributions. Cryptographic ledgers could coordinate spot transactions (cryptocurrency) and t+n interactions with smart contracts and autonomous dapp, DAO, DAC, DCO, and datt.co entities and all physical and intangible assets registered as smart property. Societal shared trust is instantiated though smartnetwork consensus, independently non-totalizingly (integrity-preservingly) signed.

Needs-based Economy: A final position in the Network Economies of Abundance could be one in which the focal point is needs, where the needs of all entities readily surface and can be met. A needs-based economy focuses on the most important aspects and deeper level of what occurs in economic transactions. Each entity (person, group, community, country, technology entity) has needs. Some of the most important needs for humans tend to include acknowledgement, connection, contribution, meaning, and action in the world. Economics is a strategy for getting these and other needs met. Smartnetwork code entity DAOs/DACs could unobtrusively orchestrate patterns of interaction among biocryptocitizen agents to maximize needs-meeting, including by registering needs as smart assets to which token is posted to indicate degree of met-ness (basic income smart needs). Another example could be secure user-permissioned cloudmind collaborations with other human and technology entities for the purpose of problem-solving and creative expression. Societal shared trust is a priori, based on agent capacity, in digital society smartnetworks of the future.

Reference: Swan, M. (2015). Blockchain: Blueprint for a New Economy. O’Reilly Media.

The Future: Ephemeralities running on Quantum Smartnetworks

The future could be one of pluralistic digital societies running on consensus-confirmed smartnetworks. There could be many kinds of entities, those with human-roots, technology entities, and any variety of hybrids. Blockchains could be the coordination mechanism between these entities, based on attestation variables like capacity and reputation. Further, eventually the digital societies of the future could be post-entity ‘entities’ or ‘whats’ – ephemeralities, presences, capacities, reservoirs, resources, like capacity in reserve: processing, memory, consciousness, ideas, associative processing, analysis, feedback, support, and critique. Perhaps all in the future is just capacity.

The ontological unit of intelligibility could be resident capacities in reserve, not resident entities already instantiated but available capacities, energy fields, potentialties. This is not even already-intentioned propensities (as contemplated by Popper ), but the uncollapsed waves and particles of quantum mechanics catalyzed into reality through intention, need, interaction, and imagination. Ephemeralities could automatically coalesce into actuality from virtuality to respond to a purpose, and continually meta-self-evaluate to monitor for ongoingness and finality of purpose.

Like photons, electrons, and maybe gravitons exist as wave packets at more than one place and time, only manifesting into reality when an observation is made, and the concept could be extended so that capacities too might coalesce into reality when an observation, conscious choice, or other motivator to action is made about the need for the capacity.

Quantum Smartnetworks
The notion of Quantum Smartnetworks is twofold. First, there is conceiving of some model, like blockchains, as a universal mechanism for measuring, administering, exchanging, tracking, monitoring, recording, finding, and interacting with all manner of granular quanta of anything; any entity that is dividable into essential quantized constituent building blocks. Second, there is the application of quantum principles to smartnetwork instances, in the sense of quantum smartnetworks as the orchestration of post-entity capacities or energies existing in potentiality (Deleuze’s virtuality) into reality.

Science fiction examples can lead the way, for example Accelerando features distributed trust networks and reputation markets, where one use of blockchain models could be digital copies “watching over their originals from the consensus cyberspace of the [smart] city [2].”

References 
[1] Popper, K.R. (1959). "The Propensity Interpretation of Probability" The British Journal for the Philosophy of Science 10, 37, 25-42.
[2] Stross, C. (2006). Accelerando. London: Ace.

Post-entity Society of Instances

In digital smartnetwork societies, entities wanting to conduct smartnetwork operations will likely need to be independently confirmed and validated through mechanisms like consensus trust. Consensus trust and reputation structures have been conceived as grounded in a fixed and persistent entity.

However, there is the possibility of progressing to a post-entity society. Humans are currently constrained to an embodied form, but this may not be the situation in the future, and there is no such requirement for technology entities in the realm of digital identity. Digital identity might become so distributed, portable, copiable, open-sourceable, sharable, malleable, and shardable, that it no longer makes sense to think in terms of entities.

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. The 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; and calculate composite team reputations for sharded cloudmind group participations. All this is could be possible because blockchains give us much more granularity in record-keeping.

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)

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

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

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.

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.

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.

Blockchains as a Granular Universal Transaction System

Blockchain technology is a new concept in large-scale coordination due to a number of key features. First, a blockchain is an open universal transaction system. Every transaction worldwide is processed the same way and posted and made available for viewing on the blockchain. The transaction ledger is publicly-inspectable on-demand at any future moment.

Second, blockchains are trustless in the sense of not having to find or trust any of the other parties in the transaction; it is just necessary to trust the system. This suggests that orders-of-magnitude more transactions may be possible in trustless systems since the architecture is a mechanism allowing anyone to transact with anyone anywhere; geographical proximity, personal knowledge, and the search problem are all reduced or resolved. This is conceptually a next step in the progression of how Amazon (a global system) opens up trading in a way that Craigslist (geographically-local) does not.

Third, blockchains are a universal tracking system that might be able to accommodate infinitely more granularity than has been feasible and cost-effective to monitor previously. The optimality of what level of transaction detail is best to post directly to the blockchain (thus invoking the expensive mining operation for their recording) is being sorted out in different ecosystem tiers. The overall blockchain ecosystem is developing to avoid bloating the blockchain with too many micro-transactions by making use of special-purpose sidechains, decentralized off-chain storage (for example with MaidSafe, batched transactions (like batched notary sidechains to register large groups of legal documents), and Merkle trees (confirming and storing a whole corpus of data with one meta-hash).

Blockchains are a Supercomputer for Reality, a Mechanism for Orchestrating Quanta

The key idea of blockchains as a universal transaction system is that they are an automated computational mode, a seamless universal infrastructural element for the coordinated activity of granularity. Blockchains could be a universal transaction system on an order never before imagined that could possibly be used to coordinate the whole of human and machine activity. In this sense, blockchain technology is a supercomputer for reality. Any and all phenomena that can be quantized (defined in discrete units or packages) can be denoted this way and encoded and transacted in an automated fashion on the blockchain. As big data seeks to perhaps eventually model and predict all phenomena, natural and otherwise, so too might blockchains accompany big data for the tracking and administration of all phenomena.

One summary and prognostication of this dynamic and the potential universal applicability of blockchains is that anything that can be decentralized will be. This has an implied assumption about the inherent efficiency, benefit, and potential superiority in certain situations of the blockchain model. Decentralization is ‘where water goes’ (where water flows naturally, along the path of least resistance and least effort). The blockchain is an Occam’s razor, a natural efficiency process.

Blockchains are thus an intriguing model for coordinating the full transactional load of any large-scale system, whether the whole of different forms of human activity (social systems) or any other system too like a brain. In a brain there are quadrillions of transactions that could perhaps be handled in the universal transactional system architecture of a blockchain, like with Blockchain Thinking models.

Further, it is not just the transaction-handling capability of the blockchain as a universal coordination system but other properties that can also be applied through-out such as demurrage incitory stimulation for dynamic resource redistribution across the system. In Blockchain Thinking, this could be redistributing brain currencies like ideas and potentiation. Thus, it is not the mere orchestration features of universal blockchain systems but their enhancement possibilities that is perhaps the more interesting point. Not only can we better organize larger-scale existing activity with blockchains, but we can also possibly open up new classes of as-yet unimagined functionality and potentiality.

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

Blockchain Consensus Models Increase the Information Resolution of the Universe

There is ample opportunity to explore blockchains as a new form of information technology, including what consensus models as a core feature might mean and enable. A key question is “What is consensus-derived information?” that is, what are its properties and benefits vis-à-vis other kinds of information? Is consensus-derived information a different kind or form of information? One way of conceiving of reality and the universe is as information flows, where blockchain technology helps to delineate three distinct levels of information:

1. Level one: Dumb, unenhanced, unmodulated data
2. Level two: Socially-recommended data. These are data elements enriched by social network peer recommendation, which has been made possible by networked Internet models. The quality of the information is denser because it has been recommended by social peers. 
3. Level three: Blockchain consensus-validated data. Now a third level of data has been exposed, blockchain consensus-validated data, data’s highest yet recommendation level based on group consensus-supported accuracy and quality. Not just peer recommendations, but a formal structure of intelligent agent experts, have formed a consensus about the quality and accuracy of these data. Blockchain technology thus produces a consensus-derived third tier of information that is higher resolution in that it is more densely modulated with quality attributes, and simultaneously is more global, more egalitarian, and freer-flowing. The blockchain as an information technology provides high-resolution modulation regarding the quality, authenticity, and derivation of information.

Consensus data is thus data that comes with a crowd-voted confirmation of quality, a seal of approval, the vote of a populace standing behind the quality, accuracy, and truth value of the data, in its current incarnation effectuated by a seamless automated mining mechanism. The bigger questions are “What can a society do with this kind of quality of data?” or more realistically, “What can a society do with this kind of widespread mechanism for confirming data quality?”

Thinking of the benefits of consensus-derived information only helps to underline that blockchain technology might be precisely the kind of core infrastructural element, and scalable information authentication and validation mechanism, necessary to scale human progress and to expand into a global and eventually beyond-planetary society. Further, blockchains are a system of checks and balances that might help to effectuate not only friendly Blockchain AI, but also the transition to a future world of multipsecies intelligence. The speculative endgame vision is that the universe is information, where the vector of progress means transitioning toward higher-resolution information flows. Information may be conserved, but its density is not. Even beyond conceiving of blockchain technology as a core infrastructural element to scale the future of human progress, ultimately it might be a tool for increasing the information resolution of the universe.

2015 Top 10 Technology Trends

2015 could be an exciting year of Zero-to-One paradigm-busting innovation, honoring and distancing humanity from Excellent Sheep mode, bringing online more of our 7 billion people in a rich and connective collaboration to scale forward progress in a truly global society.

Top 10 Technology Trends: 

1. Deep-Learning
2. Wearables/IOT
3. Digital Payments
4. Video Gaming Hardware Mods
5. Quantified Self-Connected Car Integration
6. Consumer MedGadgets
7. Smarthome, Smartcity
8. Personal Robotics
9. Cognitive Computing
10. Blockchain Technology

Predictions for 2014, 2013, 2012, 2011, 2010, 2009 

Bitcoin and Science: DNA is the Original Decentralized System

What is the role (if any) of Bitcoin and blockchain technology with regard to the natural world and traditional science? One obvious link is using the blockchain as a means of improving distributed community computing projects with tracking and remuneration. BOINC, whose software runs SETI@home, has introduced Gridcoin, and [Protein]Folding@home has introduced Foldingcoin. In addition, these distributed community computing models could be extended using blockchain technology as a way to coordinate and offer supercomputing time to DIYscientists; opening up access to a scarce resource which was previously only available to professional researchers (Zennet). Other projects are investigating a way to harness otherwise wasted crypto-mining cycles (where the computing problem (computing a nonce) must be deliberately intensive, wasteful, and one-way), like Primecoin’s system (http://primecoin.io/, of requiring miners to find long chains of prime numbers instead of otherwise unusable hashes.

Sense-making Models: Religion, Science, Political-Economy, Information
There is a more fundamental link between the blockchain and science in the grand scope of our human models for making sense of the world: religion, science, political-economy, and now information. Information is an interesting paradigm by which we are starting to see the structure of the world and make sense of it, both in physical and digital reality. The blockchain is an information technology, and the Internet and the blockchain provide a heightened information climate; a means of improving and modulating the resolution of information through faster more-expedient transfer, discovery, deployment, and use.

Information as a Sense-making Paradigm Reconfigures Science
The reach of information as a sense-making paradigm can be seen in how this idea is reconfiguring approaches to science. One way is in the growth and pervasiveness of big data and data-intensive science. Nearly every field of traditional study now has a computational complement (computational biology, computational astronomy, computational philosophy, computational law, etc.). The scientific method is transformed from a narrow hypothesis-experimentation loop to dynamic hypothesis formation per large-data results, vastly scaling the degree of experimental activity.

DNA: The Original Decentralized System
Even more profoundly, information is changing how we think about problems in science. For example, the old thinking was that chemistry and molecular biology are the conditions for life, and this is true in the sense that they are the substrate, the hardware for life. But now life is being seen as an information problem. Biology is a software system that runs on the substrate of chemistry and molecular biology. Wetware biology is the language of information, a software system to signal, transcribe, transmit information, encode and decode information, and send secure messages; a lot like a blockchain system. Biology is perhaps the original decentralized system; every cell has the full instruction set, the organism’s entire DNA, like Bitcoind nodes have the full ledger of every transaction.

Blockchain AI: Consensus as the Mechanism to foster ‘Friendly’ AI

The blockchain is the decentralized public ledger upon which cryptocurrencies like Bitcoin run; the blockchain is possibly the next Internet; the blockchain is an information technology; the blockchain is a trustless network; the blockchain is an M2M/IOT payment network for the machine economy; and the blockchain is a consensus model at scale, the mechanism we have been waiting for that could help to usher in an era of friendly machine intelligence. The blockchain’s consensus mechanism could be instrumental in the connected world of Bitcoin which necessarily accommodates communication between humans and machines, and the possibility of increasingly autonomous machine actions and entities which could lead to artificial intelligence and a technological singularity (a moment when machine intelligence supersedes human intelligence).

Large Possibility Space for Intelligence
Speculatively looking towards the longer term, there may be a large possibility space of intelligence that includes humans, enhanced humans, different forms of human-machine hybrids, digital mind uploads, and different forms of artificial intelligence like simulated brains and advanced machine learning algorithms. These intelligences would likely not be operating in isolation, but would be connected to communications networks. To achieve their goals, digital intelligences will want to conduct certain transactions over the network, many of which could be managed by blockchain and other consensus mechanisms.

Only Friendly AIs are able to get their Transactions Executed
One of the real benefits of consensus models is that they could possibly enforce friendly AI, which is to say cooperative, moral players within a society. In decentralized trust networks, an agent’s reputation (where agents themselves remain pseudonymous) could be an important factor in whether its transactions could be executed, such that malicious players cannot get their transactions executed or recognized on the network. (It does not matter if malicious players masquerade as bonafide players since the reputation requirement and network incentives elicit good behavior from all players, malicious and bonafide alike). Some of the key smartnetwork operations that any digital intelligence may want executed are secure resource access, identity authentication and validation, and economic exchange. Effectively, any network transaction that an intelligent agent needs to fulfill their goals could require some form of access or authentication that is consensus-signed, and which cannot be obtained unless the agent has a good (benevolent) reputational standing in the smartnetwork. This is how Friendly AI could be effectuated in a blockchain consensus-based model.

The Blockchain Consensus-Recommended Data is a High-Resolution Information Technology
The blockchain is an information technology, a consensus-derived third tier of modulated, denser, freer-flowing information. Level one is dumb, unenhanced, unmodulated data; level two is socially-recommended data, data elements enriched by social network peer recommendation, and now, level three is blockchain consensus-recommended data, data’s highest-yet recommendation level per group consensus-supported accuracy and quality. Consensus data is data that comes with crowd-voted confirmation of quality, the vote of a populace standing behind the data quality, effectuated by a seamless automated nonce-mining mechanism. Possibly, the blockchain is precisely the kind of scalable information authentication and validation mechanism necessary to expand to a global and eventually beyond-planetary society. The blockchain as an information technology provides high-resolution modulation regarding the quality and authenticity of information.

Counterparty/Ethereum: Why Bitcoin topped $450 today (was under $350 last week)

In the heated development space for Bitcoin 2.0 protocol projects (Figure 1), on November 12, 2014, Counterparty announced that they ported the open-source Ethereum programming language onto their own platform. Ethereum is regarded as one of the most advanced Bitcoin 2.0 projects, a general-purpose Turing-complete cryptocurrency platform. Turing-complete in this sense means able to run any cryptocurrency protocol and any cryptocoin, essentially a universal crypto-platform (the platform wins, not any specific cryptocurrency). Now Counterparty can do this too, serve as a Turing-complete platform, and possibly in a better way than Ethereum since Counterparty is already running on the existing architecture, the Bitcoin blockchain (with 90% cryptocurrency market cap), the de facto standard, already-launched, worldwide, secure platform.

Figure 1: Sample List of Bitcoin 2.0 Protocol Projects. 

(Extended from work by Piotr Piaseki)

This is Good News for All Parties (not just Counterparty): Bitcoin 2.0 is Just Beginning 

This does not mean 'game-over' for Ethereum, or 'game-won' to Counterparty. It is a sign of the dynamism in the space and the rapid innovation that open-source software communities enable (both Ethereum and Counterparty's software is all open-source). Every different project is able to examine and work with the code of the other projects and bring in any and all implementations. It means that good ideas can take seed more rapidly, be improved through iteration, and allow space for the next good ideas. Ethereum and Counterparty both have deep visions for the whole future architecture of the blockchain, and establishing early 'plumbing' foundations can help everyone progress to the next levels. In the seething hive of Bitcoin innovation, these kinds of announcements would be expected to continue, both since the blockchain industry is in early stages of development, and especially due to the open-source code liquidity of the industry.

Smart Contracts

The great benefit is that now Counterparty may be able to quickly launch the ability to do smart contracts on their platform, since Ethereum is known for its intricate focus on smart contract functionality. Smart contracts is the capacity to do more elaborate transactions on the blockchain, moving beyond simple buy-sell currency arrangements to more sophisticated contracts such as a loan with ongoing payments and interest rate resets. However, even before the Ethereum port, Counterparty did have some degree of smart contract capability (certainly for the basic smart contracts that are not even yet widely-used), as does the Bitcoin blockchain itself, and other solutions like Colored Coins and Coinprism. Other Bitcoin 2.0 protocol projects such has Ripple have their own smart contract facility, Codius.

The key point is that the blockchain industry is currently building out the infrastructure, the enabling layers in a protocol stack, the plumbing of the new layers of the Internet. There is tremendous functionality fungibility across blockchain protocols and platforms. In the blockchain plumbing layer, it might be possible to do some degree of smart contracts and tokenized altcoin issuance and multi-sig wallets on all cryptoplatforms. The questions are therefore 1) which Bitcoin protocol 2.0 platforms will emerge as standard after the intense innovation and development phase, and 2) which platforms will prove to be the most secure and raid/theft-free, and 3) at the higher level, which will be the new value-added services (the Netscape, Amazon, and Uber of the future) built atop the Bitcoin protocol plumbing protocol layers.

Take-Away Message 

The important take-away message is that the Bitcoin 2.0 protocols space may only heat up with more announcements to be expected, and more projects forming, merging, dying, and cross-implementing. Also that there could continue to be substantial volatility in the price of Bitcoin. The Counterparty announcement should be seen as support for the overall blockchain industry and underlines the clear demand to move beyond Bitcoin 1.0 currency (even as this segment is still developing) to Bitcoin 2.0 contracts. This has always been part of the initial vision set forth by Satoshi Nakamoto:

"The [Bitcoin] design supports a tremendous variety of possible transaction types that I designed years ago. Escrow transactions, bonded contracts, third party arbitration, multi-party signature, etc. If Bitcoin catches on in a big way, these are things we’ll want to explore in the future, but they all had to be designed at the beginning to make sure they would be possible later." (Nakamoto). 

Reference: Nakamoto, S. (2010). Re: Transactions and Scripts: DUP HASH160 ... EQUALVERIFY CHECKSIG. Bitcointalk.

One model of understanding the modern world is through computing paradigms, with a new paradigm arising on the order of one per decade (Figure1). First, there were the mainframe and PC (personal computer) paradigms, and then the Internet revolutionized everything. Mobile and social networking has been the most recent paradigm. The current paradigm is that of the Connected World which includes Bitcoin/blockchain technology as the economic overlay to what is increasingly becoming a seamlessly connected world of multi-device computing that comprises wearable computing, Internet-of-Things (IOT) sensors, smartphones, tablets, laptops, Quantified Self-Tracking devices (i.e.; Fitbit), smarthome, smartcar, and smartcity. Bitcoin and the underlying blockchain technology could be the next major disruptive technology and worldwide computing paradigm, on the order of the Internet in terms of the potential for pervasively reconfiguring of all human activity as the Internet did. Blockchain technology could be deployed and adopted much more quickly too, given the network effect that so many humans worldwide are already linked through the Internet and cellular network technologies.

Figure 1. Disruptive Computing Paradigms.
(Extended from: You say you want a revolution?)
Mainframe, PC, Internet, Social-Mobile, Connected World.

Just as Paradigm 4 functionality (social-mobile (i.e.; mobile apps for everything and sociality as a website property (liking, commenting, friending, forum participation)) has become an expected feature of technology properties, so too could Paradigm 5 functionality. Paradigm 5 functionality could be the experience of a continuously-connected seamless physical-world multi-device computing layer, with a blockchain technology overlay for payments, and not just payments, but micropayments, decentralized exchange, token earning and spending, digital asset invocation and transfer, and smart contract issuance and execution; all as the economic layer the web never had. Apple Pay (Apple’s token-based app-based eWallet) could be the critical intermediary step in moving to a full-fledged cryptocurrency world where the blockchain becomes the seamless economic layer of the web. 

Bitcoin Newbie? How to get Started

Consult this primer: Getting Started with Bitcoin from bitcoin.org (an industry-supported foundation), and FAQ.

Step 1: Get yourself a wallet (app/client) such as Coinbase, Blockchain, Electrum (beginner's guide), Mycelium (Android), Bitcoin-Qt (now Bitcoin Core). 

Step 2. Obtain some Bitcoin - Ideally someone will have given you some, or you can buy some from someone local. Another possibility is gifting yourself some with eGifter or other services.You can always convert dollars to bitcoin. You will need to provide your identity if you are going to transfer dollars into bitcoin with one of the wallet services (such as via ACH, wire or credit card).

Step 3. Advanced - Mixing Transactions. When you actually go to do transactions, you may wish to use a mixing service like Send Shared (SharedCoin) to mask the funds original source by mixing them with other funds. Services typically charge a 1% fee.

Step 4: Check out the local Bitcoin community and the increasing number of ways to spend and earn Bitcoin. OpenBazaar is a decentralized marketplace for instantly trading with anyone using Bitcoin - local anonymous trading - maybe supplanting or augmenting eBay and CraigsList. LocalBitCoins remains an expanding local resource for buying and selling Bitcoin, and there are of course Bitcoin ATMs and kiosks.

Where did Bitcoin come from? 
The primordial Bitcoin or stone blockchain is Rai stones on the Island of Yap, used exactly as in the current purpose, as a public ledger of economic transactions inspectable by all.