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Proof of Work vs. Proof of Performance

by Dan Robles on October 25, 2014

POW_POPProof-of-work (PoW) is a cryptographic technique introduced to a transaction which solves problems of fairness or abuse.  For example, a PoW would require a computer program to solve a simple puzzle before it can pass an email from sender to a receiver.  Someone who sends spam emails would be burdened with an computational costs greater than the possible benefit of sending spam.  A legitimate email from a single sender to a small packet of recipients would pass easily.

Proof-of-performance (PoP) refers to a condition where two parties enter into an agreement and a third party judges whether the conditions of the agreement are met.  Like an escrow account, the buyer puts the money into an account and the seller puts the title into an account.  If the conditions of the contract are met, a judge (adjudicator) flips the switch that completes the transfer.  If conditions are not met, the switch returns the money to the buyer and the title to the seller.

PoW and PoP are substantially different in many important ways.  For example, for POW the adjudicator is a computer program.  For PoP, the adjudicator is a person.  Ideally, the PoW is perfectly unbiased and cannot be corrupted for personal gain.  The PoP however, resembles the business model of most Brokers who can be biased, if not corruptible for individual gain.  Herein lies the promise of crypto currencies and so-called smart contracts that can be executed by computational algorithm rather than untrusted human agents.

On the other hand, PoW and PoP are conceptually similar is some ways as well.  In the Bitcoin protocol, for example, completing a PoW results in the issuance of a new coin.  Similarly PoP adjudicator is payed a fee or commission for validating the conditions of a contract.  The mother of all PoPs happens in the Banking System which literally issues new dollars into existence in the form of debt as a consequence of an adjudicated contract between a buyer and seller.

While the puzzles and context may differ, the consequence is the same – money is conjured into existence as a result of a humanly intensional transaction.  There really is nothing, except perhaps the deep training of an oppressed population, that says that a decentralized POP adjudicated by qualified and unbiased persona (disaggregated from the transaction) could not also result in the creation of new money.  This is exactly what Curiosumé proposes can be accomplished.

In the prior post; The Conjuring of Intangible Values,  The tangible value of a bridge connecting two cities and the intangible value of that same bridge are vastly different quantities.  Likewise, the tangible value of Bitcoin and the intangible value of Bitcoin are also vastly different different values for the same reason as the bridge between two cities.  If PoW = PoP could be assimilated in a single currency, we could build an economy whose currency is underwritten by the intangible value of infrastructure.

Ultimately, our planet would be the apex of infrastructure preservation, i.e., Humanity’s New Central Bank.

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The Conjuring of Intangible Values

by Dan Robles on October 22, 2014

Conjure valueMy prior post “The Tail of Two Cities” demonstrates that the intangible social value conjured into existence by the bridge that connects two fair cities far exceeds the ‘tangible’ value of that bridge.  Yet, only the tangible value of the bridge is accounted for on a balance sheet such as GDP.

This may seem trivial until you observe that people are paid for their intangible assets (knowledge, creativity, and engineering calculations) as a percentage of the far lower number while the bankers, government, and corporate interests compensate themselves as a percentage of the far higher number.  The difference appears to be unaccounted for.

The Tail of Two Cities article concludes that the value that is conjured into existence by both the bridge and the fractional reserve system must be equal, by definition; otherwise the metaphorical breezeway that connects the two worlds would fall.

Bitcoin suffers from a similar curse as The Tail of Two Cities.  The prevailing argument against the crypto-currency is that it has no intrinsic value.  I have personally argued that a currency must represent human productivity intrinsically or else no other human would be willing to work (be productive) in exchange for it.  An article by Paul Bohm “The Value Of Bitcoin is Decentralization” makes a good point that the intrinsic value of Bitcoin is based on the value conjured into existence by increased productivity to society by what can be accomplished with Bitcoin that otherwise would be impossible without Bitcoin.

So if the valuation of a bridge crossing the river and the valuation of Bitcoin crossing the broker both suffer the same curse that there is no accounting system for intangibles, wouldn’t it make sense to solve that problem first  – i.e., measure into existence the intangible value of the Ingenesist – and then release those millions of human intentions (bridges and Crypto-currencies, not withstanding), into the system of trade?  This is the problem that Curiosumé proposes to resolve.

I believe that we first need to solve the under-mining problem that there is no accounting system for intangible assets.  Only then can there be intrinsic value in the conservation of those assets

… then maybe none of this would seem so mysterious.

A Tail of Two Cities

October 15, 2014

Tweet Suppose two cities are separated by a river. Every day 100 people pile into a boat for the 1 hour journey to the other side two times per day. Crossing the river costs 200 person-hours per day. Then civil society decides to spend 1 million dollars to build a bridge to carry 10,000 people […]

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Introduction To Curiosumé

September 13, 2014

Tweet (Editors note:  We are publishing the documentation and tutorial for the Curiosumé application for review and comment) Curiosumé is an open source specification for the analog-to-digital conversion of knowledge asset objects.  Designed as a system to replace the résumé as a means for describing the interests, skills, and abilities of people, things, and ideas […]

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Time to Kill Social Media

September 9, 2014

Tweet Social Media is dying and it needs to be put out of its misery ASAP.  I have been in the social media space for many years and while much has happened, much has been lost. There was a dream we all had in the earlier days that ‘user-generated content’ would evolve to ‘user-generated productivity’ […]

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The New Definition Of Social Capitalism

July 22, 2014

Tweet About 3 months ago, I received a cryptic email from what sounded like a war-weary Wikipedia Editor pinned down in the trenches by enemy cross-fire.  His message was stark;  Wikipedia will delete “Social Capitalism”, you are in the best position to save it”. Since the dawn of Social Media, many people in the Social […]

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Reorganizing In The Era Of Social Capitalism

July 8, 2014

Tweet Society needs to reorganize itself to trade “abundant intangibles instead of scarce tangibles”.  Then, all the decentralized innovations currently coming online can truly integrate.….and, everything will change.

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The Mother of All Hedge Funds

May 9, 2014

Tweet Money is supposed to represent human productivity; otherwise nobody would work for it (think about that for a second). Today, money is created from future productivity in the form of debt;  when you take a loan, money is created out of thin air and posted as an asset on the banks ledger.  Unfortunately, the […]

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Shutting OFF The Lights On Big Data

May 2, 2014

Tweet Big Data, Bigger Data, Not Neutrality, Mega-Mergers, Election Deform – BIG (fill in the blank)  spells BIG trouble for LITTLE (rest of us).  We don’t stand a chance against the tsunami of surveillance that is barreling our way.  Big Data is becoming it’s own feedback loop and, like shoving a microphone into a stack […]

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What EVERY Engineer Must Know About Bitcoin

April 24, 2014

Tweet A bitcoin (lowercase b), as a currency, has several flaws that will continue to limit its ability to replace money as we know it.  There are millions of words published on the subject, so I’ll leave it to the reader to assess arguments on both sides.  However, Bitcoin (upper case B) as a “protocol” […]

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Operation Cosmic Dawn

April 8, 2014

Tweet Constellations Of Knowledge Assets: The inspiration for this post comes from the April 2014 issue of National Geographic Magazine and the story of Cosmic Dawn; The Atacama Large Millimeter Array (ALMA).  ALMA is a constellation of dozens of separate telescopes working together to cancel cosmic noise so that a clear and focused vision of the […]

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Community Organization On The Block Chain

January 2, 2014

Tweet The potential for articulating smart contracts between local business entities using the Block Chain Protocol (BCP) is truly staggering. While the BCP may not be ready for general population and would be largely unnecessary within a corporation, certain contract types and certain business structures may offer an excellent environment for widespread development.  Cooperative businesses […]

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The NWO On The Block Chain

December 27, 2013

Tweet

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What if Everyone Was a Bitcoin?

December 19, 2013

Tweet There is no shortage of articles waxing aloof about how Bitcoin is just another example of a very few people controlling a very large percentage of an impossibly scarce object.  Others argue that the carbon footprint of Bitcoin mining is so excessive that the last coin will require all the energy of the Sun […]

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Occupy BitCoin

December 14, 2013

Tweet Occupy Wall Street had the effect of “measuring into existence” the 99% of people who subsidize the economic liberty of the top 1%. Now, with the BitCoin Protocol, the financial information gap between the 99% and the 1% is about to disappear. This is a fleeting moment in history and an opportunity that we […]

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Factors Of Production For The Crypto Economy

December 7, 2013

Tweet One of the more interesting definitions and implications of BitCoin comes from Stephan Molyneux in this video.  His key points include: 1. Definition of BitCoin: a protocol for the synchronization of information. 2. The BitCoin block chain ledger can contain ANY information such as contracts, user agreements, DNA sequence, Patents, time stamps, contingency claims, […]

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Curiosumé; Because The Résumé Must Die

October 14, 2013

Curiosumé is an open source analog to digital converter for knowledge asset objects. By moving away from a semantic resume and moving toward a personal digital API, the trade and exchange of knowledge assets may be machine enabled for matches, proximity, relevance, weight, and probabilities of achieving various outcomes. As such, economics of “intangibles” will become more efficient.

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The Scaffolding of the New Economy

October 14, 2013

…where the output of one platform becomes the input of the next platform, and so on. This is how the future will arrive. This is the next step that we must take together – integrate.

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A Practical Guide to The Big Flip

October 4, 2013

The specter of economic calamity is rearing it’s ugly head once again, but for many, the end game came in 2008. Innovators have spent the last 5 years developing new systems and methods to survive in a collaborative economy.

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Collaboration Nation

August 19, 2013

Tweet The Resumé Must Die What if there were an accounting system that was built on collaboration rather than competition?  What if “semantics” could be largely eliminated by public agreement, so that we all knew what everyone else knew?  How would this change what, when, where, how, and why we produce and consume things?   […]

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The Knowledge Inventory Rev 3

May 25, 2013

Tweet   Here is a link to the demo and instructions for use.  Seems to work best in Firefox. Please provide feedback directly to me or through comments. KnowledgeInventory-Instructions  Demo site

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Global Knowledge Asset Inventory

May 24, 2013

Before I write this blog post, what does this image mean to you?

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The Everlasting Endowment of Social Capital

April 28, 2013

Big social changes are always controversial; industrial revolution, voting rights, woman’s rights, civil rights, etc – each were truly radical ideas in their time. Social scientists suggest that such changes have three oppositional features;

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A 100 Billion Dollar Value Game

April 2, 2013

100 billion dollars is the amount of money on the game table being adjusted, pooled, and diversified against risk exposures. The value game causes the “plays” to be modified by any of the players. When hedged with Real Estate valuation, liquidity can be substantial for all of the players changing incentives strongly in favor of collaboration rather than competition.

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