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Blockchain and its
future application in
architecture
Augustine Ong Wing
PRE-BLOCKCHAIN ERA
STONE
MONEY IN THE
PACIFIC
Stone Money
in a Pacific
Island
(13th century)
• The Pacific Island of Yap is known for its stone
money, known as Rai. Rai stones are large
doughnut-shaped, carved disks of calcite, up to 12
feet in diameter.
Stone Money
• To quarry the stones, Yapese adventurershad to sail
to distantislandsand deal with localinhabitants
who were sometimes hostile.
• Once quarried, the disks had to be transported back
to Yap on rafts towed behind sail-drivencanoes. The
scarcity of the disks, and the effort and peril
required to get them, made them valuableto the
Yapese.
Scarcity and 'Fixed'
Supply
• Their size and weight (the largest ones require 20
adult men to carry) make them very difficult to
move around.
• In 1874, an enterprising Irish American sea captain
named David O'Keefe hit upon the idea of
employing the Yapese to import more "money" in
the form of shiploadsof large stones, also from
Palau. O'Keefe then traded these stones with the
Yapese for other commodities such as sea
cucumbers and copra.
Decentralised
Stone Ledgers
• Historicallythe Yapese valued the
disks because the materiallooks
like quartz, and these were the
shiniest objects available.
• As no more disks are being
produced or imported, this money
supply is fixed.The islandersknow
who owns which piece but do not
necessarily move them when
ownership changes.
CONCEPTUAL FRAMEWORK
BITCOIN: THE FIRST
BLOCKCHAIN
Decentralised
Stone Ledgers
• The stones became legal tender
and were even mandatory for the
payment and settlement of large
transactions. Expeditionsto obtain
Rai and regulationof their use was
controlledby localChieftains.
• Although todaythe United States
dollar is the currency used for
everyday transactionsin Yap, the
stone disks are still used for more
traditional orceremonial
exchange.
Decentralised
Ledgers - Bitcoin
•
An electronic coin is defined as a
chain of digital signatures, where
the transfer of coins – or fractions
thereof – is handledby digitally
signing a hash of the previous
transactionalong with the
cryptographic publickey of the
next owner.
Bitcoin
Whitepaper
(2008)
- Satoshi
Nakamoto
How it solves the
double spending
problem
• Historically,the problem that
mainly occurred in electronic
payment systems is double
spending, in which a single
piece of currency could be
spent multipletimes when
proper mechanisms were not
in place. Bitcoin addresses
this through its timestamp
based chronological ledgerof
transactions.
How a blockchain functions in principle
Bitcoin
Whitepaper
(2008)
- Satoshi
Nakamoto
SMART CONTRACTS
DECENTRALISATION
TRUST(LESS)
ADVANTAGES OF
BLOCKCHAINS
Challenges with Current Paradigm
How Blockchain Solves This
Blockchain’s fundemental benefits lies in its:
Ability to create trust in trustless environments;
Security mechanisms for the transfer of value;
Efficiency in streamlining business processes, particularly between
different entities; and
Enhanced auditability and its transparency.
Blockchain key capabilities
01
Democratizing Creativity in
Physical and Virtual Space
BLOCKCHAIN
ENABLED
DESIGN
01 - Creative Property
Tokens
02 - Decentralised Authorship
03 - Add value by slowly
reversing the trend of popular
designs becoming
'free' to copy in the age of the
internet
Concept of property rights in the digital age...
?
Concerns about Intellectual Property Issues in 3D printing and the 'free' to copy/steal designs
How can blockchain add valueby reversing this negative trend for designers and architects?
Secured by
blockchain
Securing creative
property rights
• At a more granular level, each
bitmark consists of a chain of
transfer records that weaves in
and out of different blocksof
transactionsto create its
provenance.The authenticityof
each property’sprovenanceis
maintainedby continuously
verifying this chain of owner
signatures.
• This Internetnativeownership
registry allowsthe Bitmark system
to satisfy all the functional
requirementsof conventional
property systems in a single public
data resource:
Blockchain art -
The tokenisation
of creative work
• Add value by slowly reversing
the trend of designs becoming
merely
'free' to copy in the age of the
internet
• Adding creative value to
authors
• What is the value of an
unrealised design in
architecture?
• When will the tokenisation of
'architecture' begins?
The blockchain ecosystem map
Secure Creative
Property Rights
By Blockchain
Designers and
Architects
New Asset
Value Creation
Algorithm
Decentralised
Markets
Post-blockchain era
Democratizing
Virtual Space- (Decentraland- 2017)
• Thousandsof investors, artists, developers,
and community leaders made the Genesis
City auctionthe largest sale of virtualland in
history. Next, Decentraland'sIron Age
begins with the blockchaindeployment of
Genesis City.
02
'Smart' Contracts +
Procurement
BLOCKCHAIN
ENABLED
PRACTICE
01 – Smart Contract Integration
02 - Intelligent Supply Chains
03 - Decentralised Marketplaces
How will Blockchain transform Architectural Practices?
• The primary
advantages of blockchain
technologies for
architecture might be
within the realm of the
contract.
• This essentially opens
up new models for both
sides of the designer-
client relationship. In
general, architecture
rests on rather
outmoded standards for
this relationship.
Disintermediation of all Markets including Architecture
Transforming the Business and Production of Architecture
Various Stages of Producing Architecture (Inception to Completion)
Integrating Blockchain into the Contract Administration
Projected Project Lifecycle Benefits through Smart Contract Setup
Inception
Completion
and handover
Encapsulation
of smartcontract parameters
Intoproject.
Rules regardingdeliverables andpayment
release schedules throughbuiltinto
procurementof architecture.
Manual Execution
of setup
Automated
Execution of setup
* Fair, timely payments
released by client as per
deliverables by all consultants
and contractors
Late Payments.
Higher Dispute
ResolutionCosts
Physical + Digital Flows in the intelligent supply chain
Blockchain Record and Smart Contracts in the intelligentsupply chain
03
Towards 'Smart Cities' and
'Smart Decentralisation'
BLOCKCHAIN
ENABLED
ECOSYSTEMS
01 – Accelerating the
deployment of the
Internet of Things
02 - Enabling Smart Cities
03 - Adaptive Ecosystems
Smart CITIES
VALUE LAYER
NETWORK LAYER
in the conceptionof next generationof
Spaces + Buildings + Cities
IndustrialAge The BlockchainAgeDigital Age

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Blockchain and its Future Application in Architecture

  • 1. Blockchain and its future application in architecture Augustine Ong Wing
  • 3. Stone Money in a Pacific Island (13th century) • The Pacific Island of Yap is known for its stone money, known as Rai. Rai stones are large doughnut-shaped, carved disks of calcite, up to 12 feet in diameter.
  • 4. Stone Money • To quarry the stones, Yapese adventurershad to sail to distantislandsand deal with localinhabitants who were sometimes hostile. • Once quarried, the disks had to be transported back to Yap on rafts towed behind sail-drivencanoes. The scarcity of the disks, and the effort and peril required to get them, made them valuableto the Yapese.
  • 5. Scarcity and 'Fixed' Supply • Their size and weight (the largest ones require 20 adult men to carry) make them very difficult to move around. • In 1874, an enterprising Irish American sea captain named David O'Keefe hit upon the idea of employing the Yapese to import more "money" in the form of shiploadsof large stones, also from Palau. O'Keefe then traded these stones with the Yapese for other commodities such as sea cucumbers and copra.
  • 6.
  • 7. Decentralised Stone Ledgers • Historicallythe Yapese valued the disks because the materiallooks like quartz, and these were the shiniest objects available. • As no more disks are being produced or imported, this money supply is fixed.The islandersknow who owns which piece but do not necessarily move them when ownership changes.
  • 9. Decentralised Stone Ledgers • The stones became legal tender and were even mandatory for the payment and settlement of large transactions. Expeditionsto obtain Rai and regulationof their use was controlledby localChieftains. • Although todaythe United States dollar is the currency used for everyday transactionsin Yap, the stone disks are still used for more traditional orceremonial exchange.
  • 10. Decentralised Ledgers - Bitcoin • An electronic coin is defined as a chain of digital signatures, where the transfer of coins – or fractions thereof – is handledby digitally signing a hash of the previous transactionalong with the cryptographic publickey of the next owner.
  • 11.
  • 13. How it solves the double spending problem • Historically,the problem that mainly occurred in electronic payment systems is double spending, in which a single piece of currency could be spent multipletimes when proper mechanisms were not in place. Bitcoin addresses this through its timestamp based chronological ledgerof transactions.
  • 14. How a blockchain functions in principle
  • 19.
  • 20. Blockchain’s fundemental benefits lies in its: Ability to create trust in trustless environments; Security mechanisms for the transfer of value; Efficiency in streamlining business processes, particularly between different entities; and Enhanced auditability and its transparency.
  • 22. 01 Democratizing Creativity in Physical and Virtual Space BLOCKCHAIN ENABLED DESIGN
  • 23. 01 - Creative Property Tokens 02 - Decentralised Authorship 03 - Add value by slowly reversing the trend of popular designs becoming 'free' to copy in the age of the internet
  • 24. Concept of property rights in the digital age...
  • 25. ?
  • 26. Concerns about Intellectual Property Issues in 3D printing and the 'free' to copy/steal designs How can blockchain add valueby reversing this negative trend for designers and architects?
  • 28. Securing creative property rights • At a more granular level, each bitmark consists of a chain of transfer records that weaves in and out of different blocksof transactionsto create its provenance.The authenticityof each property’sprovenanceis maintainedby continuously verifying this chain of owner signatures. • This Internetnativeownership registry allowsthe Bitmark system to satisfy all the functional requirementsof conventional property systems in a single public data resource:
  • 29. Blockchain art - The tokenisation of creative work • Add value by slowly reversing the trend of designs becoming merely 'free' to copy in the age of the internet • Adding creative value to authors • What is the value of an unrealised design in architecture? • When will the tokenisation of 'architecture' begins?
  • 30. The blockchain ecosystem map Secure Creative Property Rights By Blockchain Designers and Architects New Asset Value Creation Algorithm Decentralised Markets
  • 31. Post-blockchain era Democratizing Virtual Space- (Decentraland- 2017) • Thousandsof investors, artists, developers, and community leaders made the Genesis City auctionthe largest sale of virtualland in history. Next, Decentraland'sIron Age begins with the blockchaindeployment of Genesis City.
  • 32.
  • 33.
  • 34.
  • 36. 01 – Smart Contract Integration 02 - Intelligent Supply Chains 03 - Decentralised Marketplaces
  • 37. How will Blockchain transform Architectural Practices? • The primary advantages of blockchain technologies for architecture might be within the realm of the contract. • This essentially opens up new models for both sides of the designer- client relationship. In general, architecture rests on rather outmoded standards for this relationship.
  • 38. Disintermediation of all Markets including Architecture
  • 39. Transforming the Business and Production of Architecture
  • 40. Various Stages of Producing Architecture (Inception to Completion)
  • 41. Integrating Blockchain into the Contract Administration
  • 42. Projected Project Lifecycle Benefits through Smart Contract Setup Inception Completion and handover Encapsulation of smartcontract parameters Intoproject. Rules regardingdeliverables andpayment release schedules throughbuiltinto procurementof architecture. Manual Execution of setup Automated Execution of setup * Fair, timely payments released by client as per deliverables by all consultants and contractors Late Payments. Higher Dispute ResolutionCosts
  • 43. Physical + Digital Flows in the intelligent supply chain
  • 44. Blockchain Record and Smart Contracts in the intelligentsupply chain
  • 45.
  • 46.
  • 47. 03 Towards 'Smart Cities' and 'Smart Decentralisation' BLOCKCHAIN ENABLED ECOSYSTEMS
  • 48. 01 – Accelerating the deployment of the Internet of Things 02 - Enabling Smart Cities 03 - Adaptive Ecosystems
  • 49.
  • 50.
  • 51.
  • 53.
  • 54.
  • 55. in the conceptionof next generationof Spaces + Buildings + Cities IndustrialAge The BlockchainAgeDigital Age