Decentralized Crypto-Finance: Blockchains, Automatic Markets, and Algorithmic Trust

A revolutionary set of concepts and underlying technology enablement has arisen in the form of blockchain technology. Blockchains allow the digital payments layer the Internet never had, and more broadly contemplate an era whereby all forms of secure value transfer could take place via the Internet. This includes all monetary assets (the cash or spot market) and all assets and liabilities over any future time frame (the futures and options market, mortgages, debt and equity securities, treasury issuance, and public debt).

The implication is not just that all modes of financial activity could be modernized, but that the very application of finance could be rethought. Scarcity has been the assumption for structuring economic systems for the production and distribution of scarce material goods. This no longer holds in an era of digital services, non-rival goods, and complementarity. Likewise, the governing assumption for the organization of financial systems has been the control or at least prediction of the future value of assets and liabilities. This too could change per the advent of decentralized technology like blockchains. A more rooted assumption that could also change is that any project requires financing, which would necessarily be in the form of debt capital.

One aim is to challenge the monolithic philosophical foundations of financial and economic systems. Within this context, another aim is to investigate the concept of synecdoche as applied to developing a theory of cost, pricing, and valuation that is not derivative of and so many layers away from, but more closely linked to the underlying asset or liability. My thesis is that new mechanisms such as algorithmic trust and automatic markets could allow departure from the mode of finance as currently conceived to alternatives that emphasize access over ownership, topological ranges over point values, and assurity over insufficiency.

Big Data: Reconfiguring and Empowering the Human-Data Relation

A strong new presence in contemporary life is big data (the collection and use of personal data by large institutions). As individuals, we can feel powerless in our relation with data.

At present, the human-data relation is one of fear, distance, powerlessness, lack of recourse, and diminished agency. There is an asymmetry of touch in the human-data relation where data can see and touch us without our noticing or being able to touch back. What is missing from the human-data relation is the capacity for humans to touch data in a meaningful way. The asymmetry of touch leads to an incomplete subjectivation of both the human and the data: big data creates a false composite in trying to model and understand the whole individual from just a few electronically-traceable activities, while humans have almost no sight or conceptualization of the entity that is big data.

There are at least two ways to humanize and improve the human-data relation. One is reconceptualizing subjectivation and personal identity as a malleable and dynamic association of elements and capacities, and the other is reconfiguring the power relation between humans and data. To balance the power relation so that humans are more empowered, non-profit institutions, watchdog organizations, and community groups could be created for the defense of personal data, and privacy could be overhauled as a practical impossibility and recast into a system of access rights and responsibilities conferred upon the data.

Presentation: The Philosophy of Big Data
Video (in French): La reconfiguration de la relation humaine-données par le toucher

DIY Philosophy: Crowd Models to Democratize Participatory Thinking

The model for computing and info tech exploded with the PC and the Internet – democratizing the field across all strata and making it accessible to any interested individual. The worldwide technology and startup industry has boomed and proliferated as a result. DIY science is doing the same for crowdsourced labor, quantified self-tracking, biology hacking, and the shift to the 21st century health paradigm of preventive medicine. The field of philosophy is ripe for similar democratization – some tip-offs are that it is one of the few remaining areas comprised primarily of white males, and where memorization is still important.

Philosophy Improves Sophistication of Modern Thinking 
Philosophy is the sport of thinking – one of its great benefits is its broad applicability beyond the dusty academic discipline to one’s own personal thinking and lifestyle. A key contemporary use of philosophy is in helping to provide a deeper and more sophisticated means of understanding our fast-paced technologized modern world and our place therein. Many people are interested in philosophy but few have the affordance or interest for full-time involvement which has seemed to have been required given the notorious density and inaccessibility of philosophical works.

Crowd Models Facilitating Philosophy Accessibility 
Crowd models (analogous to the PC revolution) are starting to change the former inaccessibility of philosophy. Philosophy courses and reading groups are popping up at free public universities (the Public School, the University of the Commons), podcasts are acquiring significant listenership, and online communities and publications have growing participatory audiences (e.g.; e-Flux, Plasticities Sciences Arts).

FQXi for Philosophy
While there are some research institutes supporting philosophy like the University of London's Institute of Philosophy, one next step in creating the more overt sensibility of the DIY philosopher as the analog to the DIY scientist and software hacker would be to have Philosophy Research Institutes that specifically promote DIY philosopher participation through essay contests, conferences, and other acknowledgement and community-building activities – an FQXi (e.g.; a research institute encouraging speculative innovation in physics and cosmology) for philosophy is needed.

Identity Authentication and Security Access 2.0

Identity needs to be authenticated in more granular, flexible, real-time ways as digital venues expand and the physical world becomes more digitalized. Technology is now making it possible to rethink and provide a 2.0 update to the whole area of identity authentication and security access services.

The ubiquity of cell phones, and increasingly smartphones, means that many forms of identity authentication can be moved from costly and easy-to-lose physical ID cards to mobile access platforms. QR codes, NFC, and other wireless-based technologies are already starting to be used for security authentication and single-use sign-on for website access.

Work identity badges, hospital access badges, and government and school IDs are examples of physical-world ID cards that can be moved to smartphone ID cards. Likewise many services linking identity authentication to resource-access and mobile payment can be automated, for example, event tickets, work conference room reservation and access, medical equipment and pharmaceutical inventory access, and rental car and hotel check-in and resource access. Digital ID cards can incorporate multi-factor authentication: for example, the visual look, a custom sound or image elicited upon being tapped, or information returned from an external server as the QR code is read.

Behavior change through information availability and financial incentives

The presence of the big data era is increasingly difficult to ignore, but what is its influence exactly? Even if big data results in some beneficial outcomes, are humans being enslaved or empowered?

One example of behavior change through the availability of big data is personal power consumption. Home electricity consumption was reduced when individuals were able to self-monitor and obtain feedback on their resource use. There were 7-10% reductions with data and feedback [1,2], and a 32% reduction with data and feedback plus incentives [3].

It is a subtle line between the coercion of social pressure and other invisible influences and the ability to make a truly self-empowered choice whilst living in society. One answer philosophers have had to this question is that at least awareness of the issue helps. Irrespective of the source of motivations, the fact that responsibility-taking through greater awareness and access to information has been demonstrated could possibly be extended to have a similarly transformative impact on health and other sectors.

References
[1] Wood G, Newborough M. Dynamic energy-consumption indicators for domestic appliances: environment, behaviour and design. Energy and Buildings 2003 Sep;35(8);821-41.
[2] Parker DS. Pilot Evaluation of Energy Savings from Residential Energy Demand Feedback Devices. Solar Energy 2008 Jan; 13.
[3] Petersen JE, Shunturov V, Janda K, Platt G, Weinberger K. Dormitory residents reduce electricity consumption when exposed to real-time visual feedback and incentives. International Journal of Sustainability in Higher Education 2007;8(1);16-33.

Reliable access to an objective reality

Already people obtain their ‘news’ from a variety of sources, a mix of traditional media and new media, especially tweetstreams and blogs (for example from NPR’s Andy Carvin (“The Revolution will be Tweeted”)). This suggests that more different versions of reality are being created and perceived.

The issue of ‘what is objective reality’ and reliable access to it could become more important over time. Reality-confirmation tools could likely proliferate. One example is the contemplated arrival of thousands of privately-owed microcams descending to film any situation of interest and posting opensource footage or auctioning it to bidders (proposed by David Brin in Kiln People). Like blogs and phonecams, private microcams could further counter the influence and propagandizing of media, and provide a more reliable confirmation of reality.

In the longer term, individuals may have a more explicit ability to manage the realities they access. Different realities could be shared at different times per volition and convenience (an extension of Nancy Kress’s shared reality concept in the Probability Trilogy).