What is a DAO and how do we govern tomorrow

Distributed autonomous organizations, a DAO.

When we think of governance and how we control society, we immediately must consider the realities of people in the tribes they belong to.

Recently the emergence of bitcoin, the understanding of the power of a distributed ledger, the use of a hash chain, the power of cryptographic processes, and the security of the devices we carry establishes a foundation for a brave new world.

What is governance? It is the method processes and mechanisms a society puts in place to establish order and ensure harmony?

The ancient Turks, Greeks, slave spoke of democracy, the idea that each member of the tribe, the town, the city, or the state could assemble and determine new laws, regulations, and best practices. We then evolved into Republican governments the concept of a group of people representing a larger number of citizens.

Influence and power define what shall evolve. In my lifetime, the idea of being able to plug the handset of your telephone into the back of a terminal and establish a connection to a computer somewhere out there was a novelty. For my father it is Time in Geneva when Aryanism stood out as a challenge, opportunity or threat. Telephones were just emerging and radios were available. TV was still not present. Paper books and libraries surrounded the environment we will call Geneva.

City on the Lake, what is this thing place in his history his is as relevant as your or mine.

One question why anonymity at the profound process of engagement. When you are something called anonymous I am not sure I want to play. If your anonymous is mandatory; I don’t want to play.

The innovative spiritual and the. Nurturing essence of life.. How this evolves involves countless engagements.

Each sublime note to the fabric of the virtual environment we present to the public is.

And, all of us form the fabric of the public.

He answered them, “And why do you break the commandment of God for the sake of your tradition? 4 For God said,* ‘Honor your father and your mother,’ and, ‘Whoever speaks evil of father or mother must surely die.’ 5 But you say that whoever tells father or mother, ‘Whatever support you might have had from me is given to God,’* then that person need not honor the father.* 6 So, for the sake of your tradition, you make void the word* of God. 7 You hypocrites! Isaiah prophesied rightly about you when he said:

8 ‘This people honors me with their lips,

but their hearts are far from me;

9 in vain do they worship me,

teaching human precepts as doctrines

“Listen and understand: 11 it is not what goes into the mouth that defiles a person, but it is what comes out of the mouth that defiles.”

What shall we do? Simple honor the one Jesus answered, “The first is, ‘Hear, O Israel: the Lord our God, the Lord is one; 30 you shall love the Lord your God with all your heart, and with all your soul, and with all your mind, and with all your strength.’ 31

You commit to what you believe in with a robust desire to adhere to the moral imperatives. The one God is the same God written about in so many different ancient lore.

The second is this, ‘You shall love your neighbor as yourself.’ There is no other commandment greater than these.” 32

32

Who is your neighbor?

Anyone you engage in an event. An event is is anything we all seek to record. By the way any unit of one can record as long as all parties are aware. It is our contracts and promises. Those such as payment, voting, identity and influence.

See you next time.

Governance a Question for Society

Distributed autonomous organizations, a DAO

When we think of governance and how we control society, we immediately must consider the realities of the people and the tribes to which they belong. Without understanding their history and the context of the culture, we gamble with knowing the truth as we try to understand their focus, purpose, and future.

What is governance? It is the methods, processes, and mechanisms a society puts in place to establish order and ensure harmony? The ancient Greeks spoke of democracy, the idea that each member of the tribe, the town, the city, or the state could assemble and determine new laws, regulations, and best practices. We then evolved into representative structures where appointed, elected, or heredity groups of people came together to represent many citizens.

Long ago, yet, in my lifetime, the idea of plugging the handset of your telephone into the back of a terminal and dial into a computer somewhere out there was a novelty.

Last decade, in response to the financial crisis brought on by those who sought to profit from the creation of financial instruments derived from the derivate of another financial derived instruction, we read Bitcoin: A Peer-to-peer Electronic Cash System.  This seminal piece of work drove us to understand the immutable and trustless power of a distributed ledger.

When bitcoin emerged, Satoshi’s whitepaper described a new world order. A world built on mathematics, founded in a meritocracy, and governed by software. It makes one wonder about the written into science fiction novels. They expressed concern and worry about computers and pure logic taking over the world.  Sometimes humanity became technology’s servant.

While learning, I remembered a series of conversations with David Chaum as he explained the concept of a hash chain, the power of cryptography, digital signatures, and certificates as I explored the security of the devices we carry.  This journey drove me to explore relationships, artifacts, cards, and credentials.

After 45 years serving the financial community with a technical orientation, I came to understand the power of identity, the fallacy of software, and the integrity of people. At the same time, history was rewritten, curriculums were changed over and over again. Disinformation, trust, fake news, and propaganda meld into this cacophony. A collage of perspectives linked to our identity and flavor soured by the relationships and encounters we have had during our limited existence. Today I wonder about elections, opinion polls, proxy votes, and the selection of representative government.

Today it is time to embrace a citizen-centric view of technology.  If we do not stop and think, the brave to a new world we may construct could look like 1984 or a world under the watchful eye of Skynet.  If we reflect on what we, the citizen, want and direct what we do to achieve that collective vision.  We can work as one together and establish the foundation of that brave new world we all seek.

A distributed autonomous organization seeks to address a myriad of challenges. As peers in a decentralized structure, the participants deliberate, vote, and reach

 

consensus.

Like in any organization, people are attracted to thoughts and ideas that meld well with their own. But what makes this so new? Long ago, when representative governments or councils were created, the community decided to allow a few to manage the needs of the many.

What is so different? Our interfaces have changed. The way we engage has expanded and no longer restructured to verbal or hand-delivered written communication. In written communication, there is a thought.  I stare at my computer screens; my pen is poised over a tablet as I use script to write notes or the keyboard to chat across multiple instant messaging applications.  While staring at a word processor, PowerPoint presentation, or spreadsheet, I can engage and share with people spread across the planet using my cameras, speakers, and microphones.

A distributed Autonomous Organization is simply the grouping of people using technology to widen the breadth of participation.  No longer restricted to location, we can continue to expand networks and engage with our peers.

Cryptocurrencies, Politics and the Future

A world of volatility and speculation

This morning hash rates, degrees of difficulty and the creating of derivatives to moderate the risk of Bitcoin mining drew me in.  Several years ago I was asked to participate in a fireside chat on Crypto-currencies at the Federal Reserve in Atlanta.

Blockchain A FireSide Chat

 

One of my concerns then and still today is the exponential growth in the cost of mining.  These charts offer a perspective on a concept called the Hash Rate, a measure of the work necessary to create a block. Clearly, as time marches forward, the work to earn the reward gets harder.  Thus creating a need to increase the fees charged to add a transaction within a block to the chain.

When people speak to the justification of Bitcoin they would speak to the reduction in cost.  Is this statement still valid?

Disruption, lies, and politics

While considering the potential of Bitcoin; the working of our government rambles on, as we consider the fate of the American President.  Lies, bribes, abuse, and obstruction seems to be the order of the day.

The division between political parties; drives division within families, cities, and two people sitting together over lunch creates animosity.

We are now a world driven to speculate or better said gamble while not wanting to find a gentle and graceful road to mutual satisfaction.

We need to reflect consider and potential restore faith in what is real, what is just and what is fair for all. 

Spending money on machines of war instead of investing in education and our environment makes no sense to this lone individual.  We need to once again seek peace and justice.

Where are we

Today.

How many passwords are you trying to manage!  Does your LinkedIn contact list connecting you to more than  4,000 individuals?  Does Facebook, Instagram, and other social media websites inundating you with news and stories about your friends, colleagues and interesting people?

How many cookies have your computers accumulated?  How many databases have more information about you than they need?  If we search the dark web, how valuable is your data?

Cando seeks to help you manage your data, identity, assets, and relationships.

Philip lives on Sea Island with his 93-year-old father, the Doctor.  They pursue travel and Philip keeps his head into what is happening in financial services, blockchain, authentication, digital identity, and, whatever else people seeking to understand the transformation; particularly those in the identity and payments space.

What is happening means we can unlock our hotel rooms, cars, and homes from our phones. Our security system iwill be another app we have to find on our phone.

Instead, we need an intuitive assistant seeking to simplify our lives by taking on repetitive tasks like driving, working inside a data table or simply opening up the house for the season.

Normalizing data and performing the analysis capable of earning value is the name of the game.  Management is about stimulating a team to work in the mutual interest of the organization.  Executives define the strategy and articulate the vision in a manner conducive to success.

Cando seeks to help you manage your assets and relationships.  Assets those places and things you use doing your daily life and those interactions you have with people and entities seeking to serve, sell and partner with you.

Then there are friends who we expect to be part of our lives and therefore have privileges and access capabilities.

All of this with a target of selling integration services to the top million and simply assuring each person has an identity thus serving the bottom billion.  ultimately earning $1 per year per user to simply be there when it all breaks and you wish to restore your digital life.

At the core, your digital security will be based on the use of cryptography and sophisticated matching algorithms designed to assure anyone that you are that one individual in the populatations of the universe.

What You possess, What You Are, What You Claim … Your Certificates

NCCOE NIST Multi-Factor Authentication

What you Possess — The Thing

What you Are — You

Your Relationships

Responsibilities

Authority

Advice

— Secrets

My Certificates

 

 

 

 

 

 

 

 

Seven Words

World Wide Web Consortium

FIDO Alliance

Global Platform

The Trusted Computing Group

Future interests

  • Artificial Intelligence
  • Machine Learning
  • Nature Language Interface
  • Predictive Analytics

Blockchain made simple

Let’s start at the beginning, the transaction, the distributed ledger entry. Think about the content of the transaction as the payload. Next think of the payload as the land deed, cryptocurrency value, record of ownership, journal entry, smart contract … marriage contract.  Whatever two or more people seek to exchange and record. Another way to think about all of this is as a block of data, code or other digital representation of something duplicated in every participant’s copy of the current ledger.

A governance model is required

What is essential, before anyone can do anything.

The parties seeking to exploit a distributed ledger must define how it will work.

It is what the community or parties seek to represent and manage, using distributed ledger technology, agree.

The whole process of defining the payload begins when the community agrees to and sets off to publish the processes, procedures, rules, functions, and purpose of their application. It is this act of governance we use to define how and what will be conveyed in the payload to be stored and recorded on a blockchain. Which blockchain, protocol, and cryptographic processes; obviously is a decision of the community.

We should be clear before we can do anything with the payload.  Ourselves and ultimately others will have initially and subsequently defined the mechanics and processes designed to assure the integrity of the blockchain, itself.

A Transaction is appended to the chain

There are two parties to each event recorded within these transactions. The agreed events, transactions and smart contracts are ultimately included in a block and properly extended onto the chain for everyone to see and read.  More about Confidentiality in another post.

Once governance is established
People can now interact

Each party has an address and then addresses unique to each asset e.g. coin. The address, in most cases, is simply an asymmetric cryptographic public key.

    • The individual, as is always the case with cryptography, has their own private key(s); they must retain, never lose and keep secret.

When the two parties decide to record an event; the sale or transfer of the title to a car.

    • A formal record of a property, a transaction, ledger entry is created.
    • The basic data.
      • The seller’s public key
      • the buyers public key
      • the payload
      • a hash
      • the signature created by the seller using their private key.

The transactions are broadcast to the network. The nodes or miners continuously work to assemble a defined number of transactions and create the next block.

The chain’s role is to record the providence of an asset and the immutability of all the associated transactions.

These records and blocks of data include content: of, by and following the rules of the consensus process.

    • Each active node or miner is attempting to create the next block.
    • The mathematics involved and the use of hashes to bind this new block to the existing blocks in the chain is beyond the scope of this blog.
    • Let us simply assume the mathematicians and cryptographers define as part of the original design of each chain an infallible solution to the issues of economics, security, integrity, and immutability.
    • These specifications will define the hash game and how one adds the next block to the chain retaining the immutability of the present and the past

By being the first to calculate the cryptographic nonce

The winner receives a reward.

    • Hopefully proportional to the cost of work or other discernable and agreed method of reward.
    • The other active nodes then test to see if they agree the first got it right.
    • If consensus is reached the new block is appended to the chain.
    • This all assumes 51% or more of the miners or nodes reach consensus on the winner’s answer.  And no one can control 51% or anything closer than 33%.

Around and around the game continues, as transactions are added and immutably recorded on the chain.

This whole process fundamentally assures history cannot be altered.

Chains split and fun things happen

If the process is not elegantly managed in full sight of all the participants.