Great+Chain+of+Numbers+A+Guide+to+Smart+Contracts,+Smart+Property+and+Trustless+Asset+Management+-+Tim+Swanson

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But then, neither is anybody else. So rejoice, because you got here first. Consider the manuscript that follows your guide to the exciting world of smart property, and let me be the first to welcome you to the Future of Money. Adam B. Levine Editor-in-Chief, Let’s Talk Bitcoin! March 3rd, 2014 7
Preface With the help of many members of the community, I have written this short book for beginners, entrepreneurs and risk-takers who – having heard of a bitcoin or cryptocurrency, but knowing little about it – want to understand how algorithms can constrain governance and transfer value in a consensus-driven, voluntary manner. Trustless asset management tools built on top of a cryptoledger such as Bitcoin or Ripple (which are tamper-proof) could not only reduce fees and redundancies in the developed world but also empower those in the developing world who are more easily marginalized as they lack political capital (guanxi). 1 Cryptoledgers could also help governments and non-governmental institutions keep track of internal assets and reduce the barriers to financial services, leveling the playing field and allowing individuals from all walks of life to actually codify and manage scarce goods and value that they currently own in a more secure manner. From securely automating parts of the financial industry (e.g., back-offices) to lowering transaction costs of international trade, this new type of mathematical tool – cryptoledgers – can be applied to many new segments and markets, some more obvious than others. For instance, in January 2014 I was interviewed by Donald McIntyre who asked me why I was interested in cryptocurrencies and smart contracts. 2 I explained that there are additional use-cases for using cryptoledgers to track property titles and contractual agreements that could be utilized not only in the developed world but also in developing countries like China. While there are a number of analogies comparing the significance of these tools with historical equivalents – from railroad infrastructure, to operating system platforms – at their core decentralized applications like Bitcoin and its progeny have the potential to impact virtually any industry that is integrated with the internet. And the insights from experts, entrepreneurs, investors and developers below illustrate many of the other uses that cryptoprotocols can provide and gives readers a foundation to build from and to explore. There will likely be challenges and hurdles along the way, from embarking on educational outreach beyond early-adopters to carefully studying and complying with all the legal and jurisdictional issues of a particular instrument. Yet there are also likely financial rewards for reducing the fees involved in remittances or providing more secure and robust mobile payments. For instance, according to Gartner, “mobile payments will top $720 billion a year by 2017, up from $235 billion last year [2013].” 3 Finding a way to build an application that provides value in this niche is just one area of disruptive potential that a decentralized or distributed cryptoledger can attempt to do without exposure to counterparty risks. Finally, this manuscript is not an exegesis on the economic foundation or utility of cryptocurrencies. While economists were consulted, this guide is an attempt to show the potential of changing how interactions and value can be transferred and managed in a manner that could not be technologically or mathematically done until this past decade. This is an exciting journey and one that I believe will outlive and outlast the hype and hyperbole of both its largest ideological proponents and opponents. In time some of the visions and claims may ultimately be vaporware, yet several have the potential to impact commerce the same way that the internet did 20 8
Page 2 and 3: Great Chain of Numbers: A Guide to
Page 4 and 5: Contents Foreword .................
Page 6 and 7: Cost benefit analysis of decentrali
Page 10 and 11: years ago and the PC did 35 years a
Page 12 and 13: Glossary Because of the dynamic nat
Page 14 and 15: Economists and legal experts have s
Page 16 and 17: Chapter 2: Smart Contracts “Setti
Page 18 and 19: has other potential uses that have
Page 20 and 21: valueless transaction costs all whi
Page 22 and 23: While there are several other proje
Page 24 and 25: Implementation of DACs, however, is
Page 26 and 27: Such a system, if implemented, woul
Page 28 and 29: “In a similar fashion,” Byrne a
Page 30 and 31: While his proposal will likely rece
Page 32 and 33: Chapter 3: Next Generation Platform
Page 34 and 35: ather a Decentralized Autonomous Ap
Page 36 and 37: Ethereum Another “2.0” project
Page 38 and 39: wallet balance as shares rather tha
Page 40 and 41: and its launch was entirely decentr
Page 42 and 43: Open-Transactions Chris Odom is a c
Page 44 and 45: Yet as noted above, Ripple’s plat
Page 46 and 47: This Euler diagram shows two main s
Page 48 and 49: Chapter 4: Smart Property Since the
Page 50 and 51: e done with existing technology. Ho
Page 52 and 53: vulnerable systems authorized to in
Page 54 and 55: system to the same mechanism mentio
Page 56 and 57: those participating further down th
Page 58 and 59:
(DAC). Furthermore, one of our curr
Page 60 and 61:
Where the Rubber Meets the Road Cur
Page 62 and 63:
several choices. He can immediately
Page 64 and 65:
four years has been for one particu
Page 66 and 67:
Chapter 6: Fundraising Landscape Ac
Page 68 and 69:
Chart 3 illustrates that as a perce
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Ultimately he sees significantly gr
Page 72 and 73:
What was unique about the conversat
Page 74 and 75:
perspective like China and India wi
Page 76 and 77:
While many users and commentators h
Page 78 and 79:
Remittances, Value-Added Services,
Page 80 and 81:
For example, since at least 1991 th
Page 82 and 83:
financially was the miners themselv
Page 84 and 85:
According to its 2013 report, Lexis
Page 86 and 87:
Sean Percival, a tech-industry vete
Page 88 and 89:
continuously builds the entire netw
Page 90 and 91:
to secure a wallet. As a consequenc
Page 92 and 93:
Chapter 8: Jack-of-All-Trades? Can
Page 94 and 95:
It should be noted that the direct
Page 96 and 97:
etter or easier? Just because you c
Page 98 and 99:
NGO use-cases In an exchange with P
Page 100 and 101:
independently run DAO these same in
Page 102 and 103:
Chapter 9: Conclusions Even with so
Page 104 and 105:
Synthesis If you, the reader, are n
Page 106 and 107:
Instead of having to stand in one l
Page 108 and 109:
Endnotes 1 Guanxi ( 关系 ) is a
Page 110 and 111:
36 This issue can involve entire pa
Page 112 and 113:
with the sole intention of building
Page 114 and 115:
107 Chroma Wallet 108 Losing the pr
Page 116 and 117:
Audit Report: Transparency and Acco
Page 118 and 119:
184 Kevin Mitnick is perhaps the mo
Page 120 and 121:
218 Compliance Program Design Prese
Page 122 and 123:
270 Skype calls now equivalent to o
Page 124 and 125:
315 One of the topics discussed at
Page 126 and 127:
357 BitPay Exceeds $100,000,000 in
Page 128 and 129:
maximum transactions per second fro
Page 130:
446 Point-of-Sale Terminals Should
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Great+Chain+of+Numbers+A+Guide+to+Smart+Contracts,+Smart+Property+and+Trustless+Asset+Management+-+Tim+Swanson

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