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Transhuman Crypto Cloudminds.  Melanie Swan

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Transhuman Crypto Cloudminds 
Melanie Swan, Technology Theorist, Philosophy Department, Purdue University USA, Founder, Institute for Blockchain .
Studies and DIYgenomics.
Abstract
Considering the mutual benefits of blockchain and transhumanism, this essay
proposes crypto cloudminds as a safe mechanism by which the human mind might
transcend its unitary limitations by permissioning partial resources to join a multiparty mind (comprised of human and machine minds) in a cloud-based
environment. Cloudminds could have diverse purposes including problem solving
(addressing future-of-work issues with Maslow Smart Contracts), learning,
experience, exploration, innovation, artistic expression, and other personal
development activities. Crypto cloudminds could be multicurrency, operating with
payment remuneration, security, and (especially) ideas as the denominations of
measure. For thriving in the future, mind node peers could enter “Yes-and”
Payment Channels with one another for collaborative idea development. For
surviving in the future, good-player behavior could be game-theoretically enforced
with the simultaneous privacy-transparency property of blockchains, together with
the immutable peer-confirmed consensus algorithm and audit-log checks and
balances system. Overall, blockchains might serve as an institutional technology
that is the basis for treaties and progress in a multi-species society of human,
algorithm, and machine, guiding the way to positive transhuman futures.

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Transhuman Crypto Cloudminds.  Melanie Swan

  1. 1. See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/328628004 Transhuman Crypto Cloudminds Article · October 2018 CITATIONS 0 READS 53 1 author: Some of the authors of this publication are also working on these related projects: Smart Network Research Program View project Book chapters invited: Blockchain Economics View project Melanie Swan Purdue University 48 PUBLICATIONS   1,921 CITATIONS    SEE PROFILE All content following this page was uploaded by Melanie Swan on 31 October 2018. The user has requested enhancement of the downloaded file.
  2. 2. Page 1 Transhuman Crypto Cloudminds Melanie Swan, Technology Theorist, Philosophy Department, Purdue University USA, Founder, Institute for Blockchain Studies and DIYgenomics June 23, 2018 Essay Winner: Humanity Plus Essay Competition “Mutual Benefits of Blockchain and Transhumanism” https://humanityplus.org/projects/essay-prize-mutual-benefits-of-blockchain-and-transhumanism/ “Science is the great antidote to the poison of enthusiasm and superstition.” -Adam Smith (The Wealth of Nations, 17761 ) Abstract Considering the mutual benefits of blockchain and transhumanism, this essay proposes crypto cloudminds as a safe mechanism by which the human mind might transcend its unitary limitations by permissioning partial resources to join a multi- party mind (comprised of human and machine minds) in a cloud-based environment. Cloudminds could have diverse purposes including problem solving (addressing future-of-work issues with Maslow Smart Contracts), learning, experience, exploration, innovation, artistic expression, and other personal development activities. Crypto cloudminds could be multicurrency, operating with payment remuneration, security, and (especially) ideas as the denominations of measure. For thriving in the future, mind node peers could enter “Yes-and” Payment Channels with one another for collaborative idea development. For surviving in the future, good-player behavior could be game-theoretically enforced with the simultaneous privacy-transparency property of blockchains, together with the immutable peer-confirmed consensus algorithm and audit-log checks and balances system. Overall, blockchains might serve as an institutional technology that is the basis for treaties and progress in a multi-species society of human, algorithm, and machine, guiding the way to positive transhuman futures. Transhuman Problem Context and Blockchains as a Solution This essay understands transhumanism to be the idea that the human race can evolve beyond its current physical and mental limitations, especially by means of science and technology. Kurzweil’s view is that the transhuman future will be a convergence of artificial intelligence (machines) and intelligence augmentation (humans).2 This is also his answer to the Friendly Artificial Intelligence (AI) question, namely that Unfriendly AI will not “take over the world” (or make paperclips3 and strawberry fields4 ) because humans and AI will become the same thing. Reformulating Kurzweil’s convergence argument, at least the immediate future is more likely to be one of a multi-species society with various permutations of human, algorithm, and machine.
  3. 3. Page 2 Thus, one of the most pressing near-term challenges is evolving into a multi-species society in ways that support the success of all. This is going to entail agreements such as treaties, and enforcement mechanisms that produce good player behavior in large-scale network environments, including contracts, penalties, and reputation systems. The governance systems of the future may be based on game-theoretic incentives to coordinate large groups of actors, as opposed to policing and force (which may be practically impossible, costly, and otherwise infeasible). Blockchains are a future-class technology that supports these needs. Such distributed ledgers are a new form of smart network and global computational infrastructure that might be used to implement safe, empowering, and enlightening transhuman futures. A blockchain (also known as distributed ledger technology) is an immutable, cryptographic (cryptography-based), distributed (peer-to-peer decentralized network), consensus- driven ledger. Conceptually, blockchain technology is a software protocol for the instantaneous transfer of money and other forms of value (assets, contracts, public records, identity credentials, and program states) globally via the internet. Just as SMTP (Simple Mail Transfer Protocol) is an internet-based software protocol for transferring email, blockchains are a protocol for transferring money. However, the transfer of assets requires a few more bells and whistles than simply transferring files on the internet. Blockchains provide an always-on apparatus that checks asset registration and ownership in real-time to make sure that only one unique instance of an asset is transferred (avoiding the double-spending problem, that multiple copies of digital money might be sent to different parties). Problem Context: Safeguards for an Emerging Multi-species Society The transhuman problem context is that humanity is in the process of evolving into a more intense integration of humans and technology, and safeguards are required for the productive progression of this trend. So far, the multi-species society can be seen most prominently in markets and in the workplace. In financial markets, humans and algorithms coexist side by side. Currently, 55 percent of U.S. stock trading volume (and 40-70 percent worldwide) is performed by programmatic trades, and high-frequency trading (HFT) volume has doubled since the 2008 financial crisis.5 Programmatic trading is implicated in flash crashes, an emergent phenomenon in which automated trading can trigger extremely rapid price declines.6 Since markets are driven by sentiment, a new class of data science analysis techniques and privacy-protected, remunerated, information-sharing mechanisms are needed to model markets as a multi-species domain. Blockchain smart network systems might provide the requisite tools for collective intelligence gathering and systemic risk modeling to reduce the possibility of large-scale failure such as financial contagion and collapse. In the workplace, humans and machines are also starting to cohabitate. As Cowen heralded in 2013, the best worker for the job may be humans and technology in collaboration.7 Some economists estimate that one half of jobs (47 percent) in mature economies are at risk of being outsourced to technology in the next two decades.8 The St. Louis Federal Reserve Bank predicts the continued progression of the thirty-year trend of job declines in routine tasks, both physical and cognitive.9 China, South Korea, and Japan are leading the world in the implementation of industrial robotics,10 often with one human attending several machines.11 Other sectors are in the process of joining the automation economy, in the areas of supply chain logistics, smart city monitoring, commercial driving fleet management, and medical imaging.
  4. 4. Page 3 Solution Objectives: Thriving and Surviving Given the problem context that the transhuman future depends on evolving into a safe and empowering multi-species society, there are two focal points: surviving and thriving (Figure 1). Surviving addresses the crucial concerns of physical, cognitive, and emotional safety, and economic sustenance, as preconditions for launching the broader transhuman agenda of thriving by exceeding current physical and mental limitations. Figure 1. Transhuman Objectives and corresponding Blockchain Solutions. Tier Outcome Blockchain Facilitation Surviving Physical, cognitive, emotional safety; economic sustenance Multi-species treaties enforced with recourse and reputation Thriving Exceeding current physical and mental limitations Crypto Cloudminds Cryptoeconomic Smart Networks for Surviving in the Transhuman Future First considering surviving, blockchains might help facilitate the next steps in society’s evolution in three primary ways. One is the “good player argument.” This is the idea that mutual survival interests are aligned by using a common infrastructure. Since human, algorithm, and machine might all be using the same blockchain smart network systems to access resources, communicate, obtain information, transact, and otherwise conduct their operations, they all have the incentive to remain in good reputational standing to use the network, and this could enforce good player behavior.12 A second future economics concern is sustenance. Using economics as design principles in blockchain networks might help solve an important outstanding problem, credit assignment, by having a model for tracking and connecting contribution with remuneration. Remuneration is often based on asset ownership as opposed to value contribution. Blockchains could remedy this since the advent of the token economy means a new era of participation in web-based communities. Whereas Web 1.0 involved the transfer of static information, Web 2.0 (the social web) created the expectation that website users can interact, like, and engage with content and other users. Now in Web 3.0 (the crypto web), users expect to participate meaningfully in economic communities by being remunerated for contributions (such as software code, digital art, and forum posts), and by being able to vote and access resources.13 The token economy facilitates this as websites issue their own cryptotoken money supplies (despite emerging technology volatility, there are over 1945 Ethereum-based projects as of October 201814 ). Blockchains might offer a means of solving the credit assignment problem, and also facilitate new models of asset ownership that address “future of work” concerns. Blockchain economies are characterized by open platform business models for large-scale global participation (e.g. open source software communities with a payments layer) that compete with closed monopolistic platforms (such as Google, Facebook, and Microsoft). As technological unemployment becomes more prominent in the automation economy (jobs being outsourced to technology), transitioning outsourced workers to new situations is a key concern.15 With cooperative ownership models,16 outsourced workers might receive shares in the new automated means of production in exchange for job loss. However, early Universal Basic Income (UBI) experiments indicate that unearned “free money” is unpalatable17 since it lacks social contact reciprocity features. UBI is another form of the credit assignment problem because it has the same premise that contribution and remuneration should be linked. Blockchain-based Maslow Smart Contracts might enable individuals to pursue interests and skill development in a
  5. 5. Page 4 structured way that results in certification and new employment or productive use of capacities as the endpoint, and instantiates new forms of the social contract. Blockchains as a Future-class Technology Blockchains (software the for secure automated transfer of information or assets via the internet) constitute a robust singularity-class technology for realizing both objectives of transhuman futures, thriving and surviving. Blockchains offer the full progression of a sophisticated new technology, running the gamut from “better horse” to “new car” applications (Figure 2).18 Since internet networks are already in place, value-added layers such as blockchains might be rapidly adopted. IDC estimates that global spending on blockchain solutions will reach $9.2 billion in 2021 (from as estimated $2.1 billion in 2018).19 The World Economic Forum estimates that at least 10 percent of global GDP will be stored in blockchains by 2027.20 Figure 2. Blockchain’s “New Technology” progression. Surviving Thriving Level Core Functionality Applications 1.0 Basic “Better horse” Better internet: payments and secure information transfer Real-time payments, monetary and information transactions (immediate transfer) 2.0 Advanced “Horseless carriage” Assets digitized and registered to blockchains, real-time valuation and transfer, smart contracts Financial contracts; legal agreements; digital identity; government documents; voting 3.0 Future “Car” Large-scale institutional collaboration technology: superseding governments, corporations, open-source communities Cloudminds, automated fleet management, big health data, space communication Blockchain 1.0 can be conceived as a “better internet,” adding features that were not present in the initial implementation. This functionality includes a payments layer (the ability to send money and assets) and the possibility of engaging in privacy-protected computing with confidential transactions and private messaging. Some of the “better horse” applications are real- time payments and monetary transfer instantaneously on a global basis, automated information confirmation, and secure messaging. Blockchain 2.0 is understood as an institutional technology (a replacement or supplement for brick-and-mortar human-based institutions),21 and as an enterprise software for transitioning business and government into the digital age. In the future, a substantial portion of the world’s assets might be registered to digital inventories and transacted with blockchains. There could be a single set of shared business processes used by multiple parties in industry value chains.22 Some of the envisioned “horseless carriage” applications include financial contracts, legal agreements, digital identity solutions, government public record repositories, and voting.23 Blockchain 3.0 understands distributed ledgers as a new species of technology with possibilities that did not previously exist. One implication is the smart network convergence technology of deep learning chains (integrated blockchain and deep learning functionality). Some potential “car” applications include crypto cloudminds, automated fleet management, big health data, asynchronous space communication, and the rapid-prototyping of gaming and artificial reality environments.24
  6. 6. Page 5 Crypto Cloudminds for Thriving in the Transhuman Future Blockchains are equally implicated in the transhuman objectives of surviving and thriving. Having discussed surviving, the essay now proposes Crypto Cloudminds for thriving, as a safe expansionary mechanism for exceeding current physical and mental limitations. A cloudmind is a cloud-based collaboration of human and machine minds (with safeguards and permissions).25 In this context, mind means some kind of computational processing power, possibly including decision-making, but not necessarily consciousness. A cloudmind has processing or thinking capability that is virtual, located in internet databanks or decentralized networks without having a specific embodiment or physical corporeality. Cloudminds might be large or small, and have a variety of purposeful and creative goals. There are three classes of existing cloudminds. These include AI Deep Thinkers (such as Watson, Watson Health, AlphaGo DeepMind, and NVIDIA DIGITS), collective intelligence pooled-mind resources (eLabor marketplaces such as Mechanical Turk), and digital selves (such as CyBeRev and LifeNaut) and digital self entities (such as BINA4826 ). Meta-cloudminds might be deployed as a smart network orchestration mechanism for monitoring existing cloudminds. A Deep Thinkers Registry could be a protective measure, with cloudminds appearing before the Computational Ethics Review Board each year for continued licensing. The review board itself could be comprised of both human and technology-based entities. The bigger point for the transhumanist expansion is that in the future, cloudminds might comprise large numbers of minds operating together with human and machine minds in collaboration. In order to do so, a slate of safety protocols would need to be in place, all of which might be managed by blockchains. One is guaranteeing that a cloudmind is not a groupmind. This means that individuals would only permission partial cognitive resources, not their whole brain and identity to collaborative mind projects. Smart contracts could manage the process. The premise of transhumanism is exceeding current physical and mental limitations. The first tier of application is the more obvious and light-weight phases. This could include physical augmentation for better health, strength, and disease prevention; and improving mental capacities with smartdrugs, targeted memory excitation, and performance accentuation. However, the safer and more superficial approaches may only do so much to extend mental capacities. At some point, a second tier of improvement calls for going beyond the constraint of the current unitary meatspace packaging of the human brain. The benefits of collective intelligence have been demonstrated. Working in diverse teams can lead to improved outcomes and the ability to tackle larger-scale projects.27 The enhanced evolution of teamwork could be through collaborative mind-power. There could be communities of human minds, and human and machine minds working together in a Cowen-like future-of- work progression. However, the mind is an extremely sensitive frontier, and thus must be shared slowly and partially in a controlled manner. One first application could be contributing excess processing cycles and data. Mind@home could be a crowdsourced distributed computing project like SETI@home and protein Folding@home. Dream@home could assemble collective sleep- tracking data. The properties of blockchains could be used to control and enforce this permissioning, and attribute any intellectual property (IP) garnered in the process. Technically, how blockchains could orchestrate cloudminds is by being the data control layer in a Brain-Computer Interface (BCI) apparatus that is either implanted or wireless.28 Cloudminds could be accessed as a next-generation social networking application, running over Github or LinkedIn, for example. Blockchain’s relevant features are automated access control of
  7. 7. Page 6 arbitrarily-many items in an algorithmic data science environment (e.g. monitoring billions of synapses), producing an audit log, and crediting remuneration (for example, it could become standard to sell personal sleep data to address research problems in this domain29 ). Blockchain Implementation of Cloudminds for Transhuman Futures Crypto cloudminds (implementing cloudminds with the safeguards of blockchain technology) might be used to realize the transhuman program of exceeding current mental limitations. Cloudmind Computronium: Ideas is the Currency of the Future The crypto cloudmind vision is that cloudminds might constitute not only an application, but a next-generation platform for the realization of transhuman futures. Cloudminds could be architected as a blockchain system in which each network node is a mind (human or otherwise). All nodes have equal standing (since crypto cloudminds are a decentralized network) and can provide peer-to-peer (p2p) services to other nodes. The first and foremost peer service is mining: validating, confirming, and registering transactions, in some sort of competitive consensus- driven process for an incentivized reward. All participating nodes subsequently recompute and confirm the validity of new transactions and add them to their copy of the distributed ledger. The crypto cloudmind is likely to be a multicurrency environment: there could be network security and remuneration layers in the stack with cryptocurrencies for each. There could be an algorithmic deep learning layer for optimization with its own native cryptocurrency such as TensorCoin. However, the crucial top-stack value-creation layer could be denominated in the prime currency of ideas. The productivity of crypto cloudminds could be measured in the currency of ideas. Leaderboards or market charts might track and display the top cloudminds and their competitive standing, comparing metrics such as the rate, type, and quality of idea generation. (How many Nobel Prizes did your cloudmind produce?) Economies of the future might be measured by idea generation, and one could buy idea futures on a cloudmind. There could be both problem and solution cloudminds. Problem cloudminds could define the list of open problems in different fields, for example, the Fields MathNet cloudmind and the Quantum Gravitational Theory cloudmind. Solution cloudminds could attempt to solve known problems, particularly with an intensity of data science methods. Likewise, there could be affinity cloudminds that focus on different interest areas such as sustainability, the environment, effective governance, economic equality, space settlement, and other concerns. The random cloudmind could be a serendipity-class cloudmind. Crypto cloudminds are conceptually, an implementation of computronium (a large-scale dedicated problem-solving computational resource), directed and granularized into specific problem areas with blockchain cloudminds. Beyond problem-solving, diverse classes of cloudminds could enable activities such as creative expression, sensory experience, world travel, and other interests. Crypto cloudmind nodes could be carbon neutral and economically self-sustaining by providing a variety of peer-to-peer services beyond basic network security, and transaction confirmation and logging (mining and ledger hosting). One could be computation markets and p2p banking services, for example, if one node needs additional computing power to further explore an idea, adding hot-swappable computing resources for a micropayment or the cost of computing resources used. Ethereum is already a prototypical computation market, whose virtual machine state management structure could be implemented as a cloudmind.
  8. 8. Page 7 Another p2p cloudmind service could be the Yes-and Contract, entering a payment channel for collaborative idea development. The Yes-and Payment Channel could register the initial ideabase (analogous to a codebase or database) to a multi-signature address in a contractually-obligated arrangement. Then, the payment channel would keep track of brainstorming updates as idea development ensues over a period of time, and at the period end, close the contract for the net result, with potential payouts and intellectual property registration. Creativity Contracts could be smart contracts to support the innovation and synthesis of creative development. Maslow Smart Contracts could be seen in the cloudmind environment too, as an enhanced future-of-work strategy for the engagement and actualization of human capacities, and as an antidote to the modern woes of technology addiction. Practical Considerations: Next Steps for the Implementation of Crypto Cloudminds Next-generation Social Networks Next-generation social networks could be the access platform for crypto cloudminds. Blockchains have been conceived as an enterprise technology, and extending this idea to consider consumer blockchain applications, one premise is that individuals would be willing to share more and higher-value information if it were kept private and remunerated.30 This could lead to a new tier of applications running as an overlay to social networks, unlocking additional consumer value. The notion is extending “likes” to validated (i.e. not fake) opinions, recommendations, and referrals, supported by micropayments, for example, in the areas of personal finance, health, and jobs. The effect could be having a trusted infrastructure in place for sharing sensitive information, eventually with direct links to the brain. Next-generation social networks as a secure access platform could be one of the first implementation steps towards crypto cloudminds. Blockchain applications could help social network platforms improve their value proposition to consumers through the simultaneous privacy and transparency properties of blockchains. The contents of transactions remain private (particularly using confidential transactions which mask user and recipient address and amount transferred), while also transparent in knowing that all participants are using the same system. The shared infrastructure argument holds in that one party does not know how another party is spending its budget, but that the other party is using the same validated budgeting process. The result is that trust is built by participating in a shared ruleset environment. This kind of technology-based trust-building could be crucial to transhuman futures of multi-species societies of human, algorithm, and machine. Political and Economic Implications: Geopolitical Reshuffling and Cryptosecession Smart network technologies such as blockchain (and by implication prototypical cloudminds), are being implemented unevenly around the world. Early-mover countries are defining their competitive advantage by investing in blockchain deployments. For example, Russia instantiated the registration system for its largest domestic airline, S7, in a blockchain system in 2017,31 and announced aviation refueling smart contracts with Gazprom in 2018.32 It is not unimaginable that a crypto cold war could ensue as different countries move ahead more aggressively with blockchain implementations. Energy independence could be a fulcrum point for power rebalancing. For example, California is the world’s fifth largest economy, with 33 percent clean electric power at present and 100 percent legislated for 2045.33 The state could follow Quebec’s lead (having a strong
  9. 9. Page 8 political power base due to producing 52 percent of the country’s 60 percent energy generation from hydroelectric power34 ) in pressing its weight on the national agenda. Although the longer-term transhuman economy might be denominated in idea production, the nearer-term economy might be measured in intangible social goods production, in addition to traditional material goods production. To the extent that smart network technologies can generate intangible social goods such as trust,35 and also recognition, dignity,36 and justice,37 this could help instantiate safe transhuman futures. Crypto cloudminds could ease the transition to transhuman futures as some of the other potential stakes of widescale blockchain implementation could include social (re)organization writ large.38 Blockchain as an institutional technology implies that processes of human interaction currently coordinated by corporations and governments could be relocated to smart network software. There is a real possibility of cryptosecession (opting for blockchains as a more expedient alternative to traditional governance and legal structures).39 Risks and Limitations Two of the biggest potential risks with crypto cloudminds are technical and social, labeled as the “EMP” and “Hello Skynet” situations. “EMP” is the risk of not considering the increasing dependence on technology and the lack of offsetting risk mitigation strategies. Having a response to possible large-scale network failure is necessary, for example disruption resulting from a natural or malicious electromagnetic pulse (EMP). “Hello Skynet” is the risk of anticipated backlash from different communities due to an overly technologized experience of reality, with too much of daily life being controlled by technology. Having a variety of responses and support resources could be crucial to unifying splintering populations and easing the transition to the automation economy. This is particularly true in the wake of the contemporary situation of increasing hours of screentime and decreasing interest in jobs, driving, and dating,40 together with increasing social isolation and suicide rates (up 25% in the U.S. since 1999).41 Conclusion This essay proposes Transhuman Crypto Cloudminds as a safe way for unleashing collective human brain and machine processing power in a distributed computing system. The cloudmind resource could be a new form of smart network supercomputer for tackling larger- scale problems than have been possible to attempt and solve previously. There could be two phases in the transhuman future, the surviving and the thriving of a multi-species society comprised of humans, algorithms, and machines. Blockchains are a new form of smart network and global computational infrastructure that could be used to facilitate both phases. Survival and economic sustenance could rely on the blockchain properties of enforcing good-player behavior, since all parties have the incentive to stay in good reputational standing to use the smart network infrastructure to conduct their operations. Economic sustenance might further depend on the cooperative ownership of robotic or automated means of production and Maslow Smart Contracts for professional and personal development. For the longer-term transhuman vision of thriving by exceeding current physical and mental limitations, crypto cloudminds might provide a safe frontier for joining a collaborative thinking community of human and machine minds. The necessary foundations for crypto cloudminds are two-fold. First could be using next-generation social networks as a possible secure access platform for crypto cloudminds. Second could be big data algorithmics as the AI-
  10. 10. Page 9 driven instantiation of optimized neural processes to control and optimize Brain-Computer Interfaces (the link between physical brains and internet-based cloudminds). Crypto cloudminds could be architected as blockchain systems, meaning that each mind would be a node in the flat-hierarchy distributed computing system. This could enable very-large scale projects (million-mind plus networks). As such, cloudmind networks could operate via consensus algorithm with peer nodes providing services to each other. This could include network security, ledger hosting, transaction confirmation (via mining), computation resources, and value-added functionality such as Creativity Contracts and Yes-and Payment Channels for collaborative idea development and intellectual property logging. Smart network field theories defined by technophysics models might be used to monitor cloudminds. The potential impact of this work is that proposing the idea of Crypto Cloudminds offers a specific transhuman vision and path forward with safeguards that supports the future flourishing of human, algorithm, and machine. Glossary Blockchain (distributed ledger) Technology: A blockchain is an immutable, cryptographic (cryptography-based), distributed (peer-based), consensus-driven ledger. Blockchain (distributed ledger) technology is a software protocol for the instantaneous transfer of money and other forms of value (assets, contracts, public records, program states) globally via the internet. Cloudmind: A cloudmind is a cloud-based collaboration of human and machine minds (with safeguards and permissions). ‘Mind’ is generally denoting an entity with some capacity for processing, not the volitionary action and free will of a consciousness agent. Crypto cloudminds: Crypto cloudminds is the idea of implementing cloudminds with the safeguards of blockchain technology. Cryptoeconomics: Cryptoeconomics is an economic transaction paradigm based on cryptography; more specifically, an economic transaction system implemented in a cryptography-based software network, using cryptographic hashes (computational proof mechanisms) as a means of confirming and transferring monetary balances, assets, smart contracts, or other system states. A key concept is trustless trust, meaning removing as much human-based trust as possible to make the economic system trustworthy (relocating human- based trust to cryptography-based trust). Cryptosecession: Cryptosecession is the idea of employing blockchains as an institutional technology to opt out of traditional governance and legal structures. Deep Learning Chains: Deep learning chains are a class of smart network technologies in which other technologies, blockchain and deep learning, converge as a control technology for other smart network technologies. Deep learning chains have the properties of secure automation, audit-log tracking, and validated transaction execution of blockchain, and the object and pattern recognition technology (IDtech) of deep learning. Deep learning chains might be
  11. 11. Page 10 used to control other fleet-many internet-connected smart network technologies such as UAVs, autonomous driving fleets, medical nanorobots, and space-based asteroid mining machines. Deep Learning Neural Networks: Deep learning neural networks are computer programs that can identify what an object is; more technically, deep learning is a branch of machine learning based on a set of algorithms that attempts to model high-level abstractions in data by using artificial neural network architectures, based on learning multiple levels of representation or abstraction, such that predictive guesses can be made about new data. IDtech: IDtech is identification technology, the functionality of object recognition as an in-built feature in technology. IDtech is similar to FinTech, RegTech, TradeTech, and HealthTech; technologies that digitize, standardize, and automate operations within their respective domains. Payment Channel: A payment channel is a contractually-obligated payment structure that elapses over time, protecting and obligating two parties who need not know and trust each other.42 The payment channel operates in three steps. First, Party A opens a payment channel with Party B and posts a pre-paid escrow balance (the escrow deposit is broadcast to the blockchain, and a corresponding refund transaction for the same amount is signed by both parties, but not broadcast). Second, Party A consumes a resource (or provides a service such as programming hours) against the escrow balance, and activity is tracked and updated (in revised refund transactions that both parties sign but do not broadcast). Third, at the end of the period (or at any time), the cumulative activity is booked in one net transaction to close the contract. In addition to the FinTech innovation of parties not knowing each other being able to digitally contract in a protected manner over time, payment channels might also provide scalability to blockchains by only logging net transactions. Smart Contract: A smart contract is a software program registered to a blockchain for confirmation (time-datestamping provenance), and possibly some form of automated execution. To be legally-binding as an eContract, smart contracts need to have the four elements of “regular” contracts: two parties, consideration, and terms. Smart Networks: Smart networks are intelligent autonomously-operating networks. Exemplar smart network technologies include blockchain economic networks and deep learning pattern recognition neural networks. Technophysics: Technophysics is the application of physics to the study of technology (by analogy to biophysics and econophysics), particularly using statistical physics, information theory, and model systems for the purpose of characterizing, monitoring, and controlling smart network systems in applications of arbitrarily-many fleet item management and system criticality detection. Token Economy: The token economy is the situation in which web-based communities issue their own cryptotoken money supplies. The tokens serve as an accounting system for coordinating a local economy between members, a tracking system that can be used to link participative contributions with remuneration (solving the credit assignment problem). In Web
  12. 12. Page 11 3.0, users expect to participate meaningfully in communities, meaning being remunerated for contributions, accessing resources, and voting on community decisions. Web 3.0 (the crypto web): Web 3.0 refers to the idea of cryptoeconomic business models such as data markets and computation markets running on the “internet’s new pipes” of distributed network systems, content-addressable file-serving, and IDtech. Web 1.0 (the static web) involved the transfer of static information and Web 2.0 (the social web) created the expectation that website users can interact, like, and engage with content and other users. In Web 3.0 (the crypto web), users expect to participate meaningfully in economic communities by being remunerated for contributions (such as software code, digital art, and forum posts), and by being able to vote on decisions and access resources. References 1 Smith, A. (1776, 2003). The Wealth of Nations. Blacksburg VA: Thrifty Books. 2 Kurzweil, R. (2006). The Singularity Is Near: When Humans Transcend Biology. New York: Penguin Books. 3 Bostrom, N. (2016). Superintelligence: Paths, Dangers, Strategies. Oxford: Oxford University Press. 4 Dowd, M. (2017). Elon Musk's Billion-dollar Crusade to Stop the AI Apocalypse. Vanity Fair. 5 Miller, R.S. and Shorter, G. (2016). High Frequency Trading: Overview of Recent Developments. U.S. Congressional Research Service. 7-5700. R44443. https://fas.org/sgp/crs/misc/R44443.pdf. 6 Kirilenko, A., Kyle, A.S., Samadi, M., and Tuzun, T. (2014). The Flash Crash: The Impact of High Frequency Trading on an Electronic Market. U.S. CFTC. 7 Cowen, T. (2013). Average Is Over: Powering America Beyond the Age of the Great Stagnation. New York: Dutton. 8 Frey, C.B. and Osborne, M.A. (2013). The Future of Employment: How susceptible are Jobs to Computerisation. Oxford. https://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf See also: https://medium.com/oxford-university/the-future-of-work-cf8a33b47285. 9 The Economist. (2016). US Population Survey. Federal Reserve Bank of St. Louis. https://www.federalreserve.gov/publications/files/2016-report-economic-well-being-us-households-201705.pdf. 10 Bland, B. (2016). China’s robot revolution. Financial Times. https://www.ft.com/content/1dbd8c60-0cc6-11e6- ad80-67655613c2d6. 11 Chan, J. (2017). Robots, not humans: official policy in China. New Internationalist. https://newint.org/features/2017/11/01/industrial-robots-china. 12 Swan, M. (2015). Blockchain Thinking: The Brain as a DAC (Decentralized Autonomous Corporation). IEEE Technology and Society. 34(4):41-52. 13 Swan, M. (2019). Blockchain Economic Theory: Digital Asset Contracting reduces Debt and Risk. In Swan, M., Potts, J., Takagi, S., Witte, F., Tasca, P., Eds. Blockchain Economics: Implications of Distributed Ledgers - Markets, communications networks, and algorithmic reality. London: World Scientific. 14 State of the Dapps. Retrieved October 7, 2018: https://www.stateofthedapps.com/. 15 Swan, M. (2017). Is Technological Unemployment Real? Abundance Economics. In Surviving the Machine Age: Intelligent Technology and the Transformation of Human Work. Eds. James Hughes and Kevin LaGrandeur. London: Palgrave Macmillan. 19-33. 16 Scholz, T. (2016). Platform Cooperativism. Challenging the Corporate Sharing Economy. New York: Rosa Luxemburg Stiftung. 17 Anzilotti, E. (2018). Finland’s Basic Income Pilot Was Never Really A Universal Basic Income. Fast Company. https://www.fastcompany.com/40565075/finlands-basic-income-pilot-was-never-really-a-universal-basic-income. 18 Swan, M. (2015). Blockchain: Blueprint for a New Economy. Sebastopol CA: O'Reilly Media. 19 Hebblethwaite, C. (2018). IDC: Global blockchain spending to hit $9.2 billion in 2021. The Block. 20 World Economic Forum. (2015). Deep Shift: Technology Tipping Points and Societal Impact. Survey Report. 21 Davidson, S., de Filippi, P., Potts, J. (2018). Blockchains and the Economics institutions of capitalism. Journal of Institutional Economics. 1-20.
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