Blockchain Revolution

Ellipse (album), 227–28 Emergency services, in IoTs, 158 Empowerment, 107, 208

Encryption, 28, 40, 243–44, 314n

End-to-end (E2E) e-voting systems, 215–16 Energy consumption of blockchain, 24, 259–63

Energy grids, 145–50

Energy management, in IoT, 157 Enigma, 27–28

Enterprise collaborators, 139–42

Entrepreneurship, 22–23, 179–81 Environmental Defense Fund, 222 Environmental monitoring, in IoTs, 158

Epigraph, 194

Ernst & Young, 33, 36

Essex, Aleks, 215

Estonia, 197–99, 203, 204, 206–7

Ethereum, 37, 83, 87–88, 119, 262, 278, 279–80

Exchanging value, in financial services, 62, 64

Executive Order 6102, 258
Facebook, 13, 81, 118, 140, 180, 246

Factom, 94, 194, 245–46

Factory of Things, 160 Fair competition, 93–94

Fairfield, Josh, 34, 263, 264, 293 Fair trade music, 227–39 Farming, 157–58

Featured Artists Coalition, 226

Federal Reserve, U.S., 57, 174, 293, 294

FedEx, 147

Fiat currencies, 217, 255, 292, 293–96

cryptocurrencies vs., 5, 38, 256, 260

FICO score, 80, 82

51 percent attack, 67, 266–67, 269

Filament, 146–48, 157, 260 Financial aid for students, 248–49

Financial crisis of 2008, 5, 10, 56, 108, 193, 293, 296

Financial identity, 15–16, 140, 176, 177–78, 179

Financial inclusion, as fundamental right, 19–20, 172, 175

Financial intermediaries, 56, 57, 58, 61

Financial leverage, 56

Financial risk, 59–60, 63, 64

Financial services, 55–86. See also Microfinance blockchain IPOs, 82–84

blockchain transformations of, 8, 18–19, 58–63, 64, 128 frameworks for accounting and corporate governance, 73–79 Golden Eight of, 61–63, 64, 86

identity issues, 61, 64, 78–79 paradoxes of traditional finance, 55–57 players in blockchain ecosystem, 285 prediction markets, 84–85

reputation and credit score, 79–82 retail services, 71–73

smart devices and IoT, 159

from stock exchanges to block exchanges, 63, 65–66 Financial stability, 295

Financial utility, 69–70

Firefox Web, 129

First era of the Internet, 3–4, 12–14, 15, 39, 49, 92, 95, 106, 124, 265, 281–82, 299–300

“Float,” 45

FNY Capital, 83

Food industry, 138–39, 157–58

Ford, Henry, 246

Forde, Brian, 247, 282, 286, 287, 305

Foreign aid, 20–21, 188–92

Formation costs, 179

Fragmenting public discourse, 212–13 Free agent nation, 110

Freedom of Information laws, 208–9 Free press, 243–46

Free speech, 243–46

Freitas, Miguel, 246

Funding, in financial services, 62–63, 64

Fund-raising, 179

Futarchy, 220

Future Crimes (Goodman), 276 Future-proofing, 152, 197
Galaxy Zoo, 12

Gauck, Joachim, 52

Gault, Mike, 199

Gemini, 284, 291

Gems, 94–95

Gender differences, in banking access, 178, 192 Germany, 27, 51–52

GetGems, 245

Gibson, William, 255

GitHub, 89, 138

Global solution networks (GSNs), 283, 300–307 Global standards networks, 304–6

“God Protocol, The” (Szabo), 4–5 Gold, 34, 95, 199, 254, 260

Goldcorp Challenge, 223

Golden Eight, 61–63, 64, 86

Goldman Sachs, 66, 70, 71, 284

Goodman, Marc, 276

Google, 13, 96, 118, 140, 143, 161, 180, 255, 270, 275

Gore, Al, 212

Governance, 24, 283, 288–89, 307

distributed power, 33–35, 273 in financial services, 73–79

new framework for blockchain, 298–307 regulations vs., 296–97

Government Digital Service, U.K., 205 Governments, 9, 13, 23, 197–225

alternative models of politics and justice, 218–21 Big Brother, 244, 274–75

blockchain voting, 215–17 design principles in, 201–3

empowering people to serve selves and others, 207–11 engaging citizens to solve big problems, 221–23 Estonia example, 197–99, 203, 204, 206–7

in financial services industry, 70

high-performance services and operations, 203–7 players in blockchain ecosystem, 286–87

second era of democracy, 211–15

stifling or twisting bitcoin, 263–65 tools of twenty-first-century, 223–25

Grande, Ariana, 228

Greifeld, Bob, 65, 66, 84

Guardtime, 199

Guez, Bruno, 238

Gun rights, 200–201, 276

Gupta, Vinay, 226, 227

Hacking, 39, 40, 41, 118–19, 138, 151–52, 243–44

boundary decisions, 112–14 business model innovation, 142–44 DAEs, 273–74

smart things, 168–69

Hagel, John, 94 Haiti

earthquake of 2010, 20–21, 188–89

remittances, 183

Haldane, Andrew, 9

Hamel, Gary, 110

Hanks, Tom, 78

Hanson, Robin, 220

Hashcash, 34

Hash rate, 241, 260

Hash value, 32

Hawking, Stephen, 274

Health care, 151, 158

Heap, Imogen, 21, 226, 227–28, 229, 231–35

Hearn, Mike, 69, 164–65, 271, 282

HedgeStreet, 84

Hedgy, 105

Herstatt risk, 59–60

Hewlett-Packard, 150

Hierarchies, 12, 88, 93–101, 105–6

High latency, 256–57

Hill, Austin, 28

design principles, 38, 40–41, 43, 51

financial services, 63, 65–67, 76

implementation challenges, 262, 272

Holacracy, 48–49, 88 Hollywood Stock Exchange, 84 Home management, 161, 275

Homomorphic encryption, 28

Honduras, 193–95

Honesty, 10, 11

Horizontal search, 97

Humanitarian aid, 20–21, 188–92 Human Rights Watch, 200 Hyperledger Project, 69–70, 285, 305

IBM, 39, 111, 118, 129–30, 150, 153

IBM Connections, 139

IBM Institute for Business Value, 163 Ideagoras, 137, 138

Identity, 3–4, 14–16, 264–65. See also Digital identity

in bAirbnb, 116

for citizens, 197–98, 203–4

economic inclusion and, 176, 177–78

in financial services, 61, 64, 78–79

for IoTs, 147–48

personal avatars, 14–16, 45, 99, 204

privacy and, 41–45 Ilves, Toomas Hendrik, 197

Implementation challenges, 24, 195–96, 253–77 Big Brother watching you, 274–75

criminal use, 275–76

DAEs forming Skynet, 273–74

energy consumption unsustainable, 259–63 governing protocols, 271–72

governments stifle or twist it, 263–65

incentives inadequate for distributed mass collaboration, 267 job killer, 270–71

powerful incumbents usurping it, 265–67 technology not ready for prime time, 254–58

Inaccessibility, 256–57

Incentives, 35–39, 130–31, 202, 267

Inclusion, 49–51, 202–3, 308

economic, as fundamental right, 19–20, 175

Incumbency, 265–67

Independent contractors, 103–4, 137–38

Industrial blockchain, 154, 160

Inequality, 12–13, 173, 174, 175

Infinite data, 151, 162, 274–75

Inflation, 37–38, 256

Infrastructure management, 157, 206–7

InnoCentive, 95, 137–38

Inno360, 95, 137

In-Out Matrix, 111–12, 112

Institute for Blockchain Studies, 110, 204, 224, 248 Institute for Liberty and Democracy, 19

Insurance, 63, 64, 116–17, 159, 181

Insuring value, in financial services, 63, 64

Integrated government, 203–5

Integrity, 10, 30–33, 74, 76, 108, 199, 201–2

Intel, 38, 155

Intellectual property rights, 21 art, 239–43

music, 226–39

International Corporation for Assigned Names and Numbers (ICANN), 271, 281, 300, 301 International Labour Organization, 172–73

International Monetary Fund, 183, 281, 295 International Telecommunications Union, 195 Internet, first era. See First era of the Internet

Internet Engineering Task Force (IETF), 271, 281, 299, 305

Internet Governance Forum (IGF), 300

Internet of Things (IoT), 3, 38, 146, 147–48, 152–55

economic payoffs, 161–64

future developments, 164–67 hacking your future, 168–69 public sector use of, 206–7 twelve disruptions, 156–61

Internet Society, 281, 300

Intrade, 84

Investing, in financial services, 62–63, 64

IPOs (initial public offerings), 82–84, 127, 180, 181

Iran, 13

Ito, Joichi, 246–49, 286, 289, 301
Jaques, Elliot, 106

Jennings, Eric, 147–48, 157, 162–63, 260

Jensen, Michael, 100, 108

Jive, 139

Jobanputra, Jalak, 287

Job killer, 270–71

JPMorgan Chase, 8, 43, 63

Jumpstart Our Business Startups Act, 82–83 Jurisdiction issues, 264

Justice system, 220–21, 223
Kahn, Bob, 281

Kahneman, Daniel, 279

Kaminska, Izabella, 78, 257–58, 266

Karpeles, Mark, 247

Kaye, David, 244

Kaye, Max, 216

Keating, Zoë, 21, 235–36, 237

Kessler, Sarah, 135

Keyless signature infrastructure (KSI), 199 Kidder, Tracy, 150

Kim, Joyce, 170–72, 177, 287

Kirby, Peter, 194

Knowledge networks, 300–301

Kulin, Haluk, 43, 46, 48, 178 Kurzweil, Ray, 336n
Labor markets, 270–71

Land title registration, 8, 19–20, 51, 188–89, 193–95, 198

Larsen, Chris, 59, 67

Law enforcement, 286–87

Law profession, 102–3

Lawsky, Benjamin, 8, 287, 289–92

Leadership, 24, 281–309

framework for governance, 298–307 new agenda for next digital age, 307–9 the players, 283–89

regulation and, 289–93, 296–97

Lederman, Leon, 4–5 Ledger of Everything, 152 Ledger of Things, 145–69

economic payoffs, 161–64 evolution of computing, 150–52 future developments, 164–67 hacking your future, 168–69 Internet of Things, 152–55 power to the people, 146–50 twelve disruptions, 156–61

Legal disputes, 100, 105, 193, 219, 221

Legal frameworks, 264 Legal recourse, lack of, 258

Lending value, in financial services, 62, 64 Libertarianism, 199–200, 201, 327n Library of Congress, 133

Licensed exchanges, 291

Lightfoot, Gordon, 29

Lighthouse, 94

Lih, Andrew, 131

Lincoln, Abraham, 199

LinkedIn, 99

Linux, 12, 88, 129–30, 141, 282

Linux Foundation, 69, 285 Lipset, Seymour Martin, 201 Liquid democracy, 218–19

Liquidity, 256, 295

Litecoin, 257

Litecoin Association, 267

Literacy, 172, 195, 249

Live Nation, 229

Living standards, 172

Locally generated power, 148, 149–50 London School of Economics, 74 LO3 Energy, 148, 149

Lubin, Joseph, 15–16, 88–91, 112–13, 141, 177–78

Ludwin, Adam, 68

Lundkvist, Christian, 76

Lyft, 134, 164

MaidSafe, 95

Mainframes, 150

Malaysia Airlines Flight MH370, 213 Managers (management)

ConsenSys, 89–91

public sector, 206–7

smart devices and IoT, 157, 159–60, 161 Manifesto for the Digital Age, 308–9 Manila, remittances, 182–83, 186

Manufacturing, 160, 174 Marketing, search costs, 97

Massive open online courses (MOOCs), 248–49

Masters, Blythe, 8, 63, 65, 66, 68, 73, 287, 289

McAdam, Cindy, 287

McKinsey, 156, 163–64, 169, 194

McLuhan, Marshall, 14

McWaters, Jesse, 66, 306

Meckling, William, 100

Medical records, 158

Medici, 83

Member ownership, 89–91 Members of a social network, 262 Mesh networks, 123, 146–47

Metaverse, 38

Metering economy, 135–36, 180, 233

MHITs, 50–51

Microblogging, 246

Microfinance, 56, 170–72, 191–92 current issues with, 191–92 inclusion design principle, 49–51 Nicaragua example, 170–72, 176

prosperity passport, 177, 178

Microgrids, 148–50

Micromonetizing, 180–81, 233

Microsoft, 4, 150, 270, 310

Microsoft Yammer, 139–40

Millennials, 174

Mi.Mu, 228

Miners, 30–32, 240–41, 260, 267, 268–69

Mining, 240–41, 259–60, 268–69

Mining rate, 38

MintPal, 266

MIT Bitcoin Project, 247

MIT Digital Currency Initiative, 247, 282, 284, 286, 301, 303, 305

MIT Media Lab, 27, 246–47, 286, 305

M-of-N signature, 104

Monegraph, 133

Monetary policy, 37–38, 56, 294–95, 309

Money laundering, 176, 275–76

Monks, Robert, 78

Monopolies, 57, 93–95

Moore’s law, 4, 51, 307–8

Moreira, Carlos, 11, 14, 15, 154, 204

Morgan, Pamela, 219, 287

Mornini, Tom, 73–74, 77

Morris, Gilbert, 173

Motion detectors, 254

Moving value, in financial services, 61, 64

M-Pesa, 176

Mt. Gox, 9, 247

Mugabe, Robert, 216–17

Muller, Ralf, 237–38

Mulligan, Mark, 230

Multisignature (multisig), 103–5

Multistakeholders, 282, 297, 298–99

Murdoch, Rupert, 310

Music, 21, 226–39

A&R, 238–39

basic copyright registration, 236, 237–38

business complexity, 228–31

digital content management system, 238 emergence of new business model, 231–35 ownership rights, 45–49, 132–33

self-launched artists, 235–37

smart contracts, 47, 231

Music copyright, 45–49, 132–33, 228–31, 234, 236, 237–38

Music Key, 236

Musk, Elon, 274

MyBarackObama.com, 224
Nadex, 84

Napster, 21, 263

NASDAQ, 83–84

NASDAQ Linq, 65

Nathan, Oz, 27–28

National Institute of Standards and Technology, 40 National Rifle Association, 200–201, 276

National Security Agency, 42, 274

Natural disaster relief, 20–21, 188–89, 190–91 “Nature of the Firm, The” (Coase), 92–93 Nest, 275

Networked institutions, 306

Networked integrity, 10, 30–33

Networked intelligence, 164

Network effects, 51, 67, 175

Network protocol, 271–72 Neutral Voting Bloc (NVB), 216

New business formation, rate of, 173–74 New business models, 115–44, 168

autonomous agents, 122–25 bAirbnb vs. Airbnb, 115–17 Big Seven, 128–42

distributed applications, 117–22

distributed autonomous enterprises, 126–28 hacking your future, 142–44

New York ID cards, 80, 176

New York State Department of Financial Services (NYDFS), 287, 289–92 New York Stock Exchange (NYSE), 83–84

Ng, Andrew, 248

Nicaraguan microfinance, 170–72, 176

Nielsen, Jakob, 51

Nielsen’s law of Internet bandwidth, 51, 272 Nike, 136, 180–81

Nodes, 32, 240–41

Nonces, 241

Nondisclosure agreements, 235

Nongovernment organizations (NGOs), 191, 287

Norton, Robert, 133
OASIS, 38

Obama, Barack, 213, 224–25

OMERS Ventures, 284

Omohundro, Steve, 46–47, 109, 265, 277 Online citizen juries and panels, 223 Open Government, 209

Open networked enterprises (ONEs), 22, 120, 121–22, 128–42

blockchain cooperatives, 134–35

blockchain makers, 138–39

enterprise collaborators, 139–42

metering economy, 135–36

peer producers, 129–32

platform builders, 136–38

rights creators, 132–34

Open source, 60, 64, 69–70, 129, 262, 281–82

OP_RETURN, 237–38

Oral agreements, 99

Orlando, Jim, 284

Orsini, Lawrence, 148, 149

Ostrom, Elinor, 48

Outsourcing, 12, 93, 95, 174

Overstock, 83

Ownership rights, 45–49, 132–34, 234 Owners of coin, 37

Owners of computing power, 37, 262 Owners of disk storage space, 262
Pacifico, Paul, 226, 227

Pacioli, Luca, 74, 75

Pair, Stephen, 48, 72, 246, 260, 263, 266

Pandit, Vikram, 55, 59–60

Passing rate, 156

Passive citizenry, 211–12

Paul, Rand, 199

“Pay for success” models, 209–10 PayPal, 6, 80, 94, 310

Pay to script hash (P2SH), 104 Peer collaborators, 139–42

Peer producers, 129–32