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Steve Bosserman

When Cities Run Themselves | WOUB - 0 views

woub.org/...when-cities-run-themselves

urban trends machine-to-machine automation internet-of-things sensor_technology

shared by Steve Bosserman on 24 May 12 - No Cached
  • Steve Bosserman on 24 May 12
     
    Machines talking to machines No doubt that the Olympics will have a profound effect in shaping London's future. By the time the Games begin, for instance, it will have Europe's largest free WiFi zone, with the city's iconic red phone booths converted, fittingly, into hotspots. But another opportunity London landed earlier this month could have just as much impact, perhaps more. A company called Living PlanIt announced that it will begin testing its "Urban Operating System" in the Greenwich section of the city. What does that mean? Put simply, London would have its own operating system, much as your PC runs on Windows or your Mac runs on Apple's IOS. This ties into the latest hot buzz phrase, "the internet of things," which describes a world where machines talk to other machines. No human interaction required. So, for a city, this means sensors in buildings would connect to sensors in water treatment plants which would connect to sensors in stoplights. It would be one gigantic, computerized urban nervous system, which a lot of experts think is the only way cities can survive a future when they'll contain more than two out of every three people on Earth. Based on what sensors reveal about the location and movement of humans in a section of a city, for instance, buildings will automatically adjust their temperatures, streetlights will dim or brighten, water flow will increase or slow. Or, in the event of a disaster, emergency services would have real-time access to traffic data, trauma unit availability, building blueprints. And soon enough, our smart phones will be able to tap in to the Urban OS. So will our household appliances. This is not some 21st century analogue of the personal jet pack. The Urban OS is the driving force behind a smart city being built from the ground up in northern Portugal. Construction is scheduled to be completed in three years; eventually it will have about 150,000 residents. It will also have more than 100 million sen
Tiberius Brastaviceanu

The New Normal in Funding University Science | Issues in Science and Technology - 1 views

issues.org/...-in-funding-university-science

open science paper

shared by Tiberius Brastaviceanu on 07 Aug 14 - No Cached
  • Government funding for academic research will remain limited, and competition for grants will remain high. Broad adjustments will be needed
  • he sequester simply makes acute a chronic condition that has been getting worse for years.
  • the federal budget sequester
  • ...72 more annotations...
  • systemic problems that arise from the R&D funding system and incentive structure that the federal government put in place after World War II
  • Researchers across the country encounter increasingly fierce competition for money.
  • unding rates in many National Institutes of Health (NIH) and National Science Foundation (NSF) programs are now at historical lows, declining from more than 30% before 2001 to 20% or even less in 2011
  • even the most prominent scientists will find it difficult to maintain funding for their laboratories, and young scientists seeking their first grant may become so overwhelmed that individuals of great promise will be driven from the field
  • anxiety and frustration
  • The growth of the scientific enterprise on university campuses during the past 60 years is not sustainable and has now reached a tipping point at which old models no longer work
  • Origins of the crisis
  • ederal funding agencies must work with universities to ensure that new models of funding do not stymie the progress of science in the United States
  • The demand for research money greatly exceeds the supply
  • the demand for research funding has gone up
  • The deeper sources of the problem lie in the incentive structure of the modern research university, the aspirations of scientists trained by those universities, and the aspirations of less research-intensive universities and colleges across the nation
  • competitive grants system
  • if a university wants to attract a significant amount of sponsored research money, it needs doctoral programs in the relevant fields and faculty members who are dedicated to both winning grants and training students
  • The production of science and engineering doctorates has grown apace
  • Even though not all doctorate recipients become university faculty, the size of the science and engineering faculty at U.S. universities has grown substantially
  • proposal pressure goes up
  • These strategies make sense for any individual university, but will fail collectively unless federal funding for R&D grows robustly enough to keep up with demand.
  • At the very time that universities were enjoying rapidly growing budgets, and creating modes of operation that assumed such largess was the new normal, Price warned that it would all soon come to a halt
  • the human and financial resources invested in science had been increasing much faster than the populations and economies of those regions
  • growth in the scientific enterprise would have to slow down at some point, growing no more than the population or the economy.
  • Dead-end solutions
  • studies sounded an alarm about the potential decline in U.S. global leadership in science and technology and the grave implications of that decline for economic growth and national security
  • Although we are not opposed to increasing federal funding for research, we are not optimistic that it will happen at anywhere near the rate the Academies seek, nor do we think it will have a large impact on funding rates
  • universities should not expect any radical increases in domestic R&D budgets, and most likely not in defense R&D budgets either, unless the discretionary budgets themselves grow rapidly. Those budgets are under pressure from political groups that want to shrink government spending and from the growth of spending in mandatory programs
  • The basic point is that the growth of the economy will drive increases in federal R&D spending, and any attempt to provide rapid or sustained increases beyond that growth will require taking money from other programs.
  • The demand for research money cannot grow faster than the economy forever and the growth curve for research money flattened out long ago.
  • Path out of crisis
  • The goal cannot be to convince the government to invest a higher proportion of its discretionary spending in research
  • Getting more is not in the cards, and some observers think the scientific community will be lucky to keep what it has
  • The potential to take advantage of the infrastructure and talent on university campuses may be a win-win situation for businesses and institutions of higher education.
  • Why should universities and colleges continue to support scientific research, knowing that the financial benefits are diminishing?
  • esearch culture
  • attract good students and faculty as well as raise their prestige
  • mission to expand the boundaries of human knowledge
  • faculty members are committed to their scholarship and will press on with their research programs even when external dollars are scarce
  • training
  • take place in
  • research laboratories
  • it is critical to have active research laboratories, not only in elite public and private research institutions, but in non-flagship public universities, a diverse set of private universities, and four-year colleges
  • How then do increasingly beleaguered institutions of higher education support the research efforts of the faculty, given the reality that federal grants are going to be few and far between for the majority of faculty members? What are the practical steps institutions can take?
  • change the current model of providing large startup packages when a faculty member is hired and then leaving it up to the faculty member to obtain funding for the remainder of his or her career
  • universities invest less in new faculty members and spread their internal research dollars across faculty members at all stages of their careers, from early to late.
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 07 Aug 14
       
      Sharing of resources, see SENSORICA's NRP
  • national conversation about changes in startup packages and by careful consultations with prospective faculty hires about long-term support of their research efforts
  • Many prospective hires may find smaller startup packages palatable, if they can be convinced that the smaller packages are coupled with an institutional commitment to ongoing research support and more reasonable expectations about winning grants.
  • Smaller startup packages mean that in many situations, new faculty members will not be able to establish a functioning stand-alone laboratory. Thus, space and equipment will need to be shared to a greater extent than has been true in the past.
  • construction of open laboratory spaces and the strategic development of well-equipped research centers capable of efficiently servicing the needs of an array of researchers
  • phaseout of the individual laboratory
  • enhanced opportunities for communication and networking among faculty members and their students
  • Collaborative proposals and the assembly of research teams that focus on more complex problems can arise relatively naturally as interactions among researchers are facilitated by proximity and the absence of walls between laboratories.
  • An increased emphasis on team research
  • investments in the research enterprise
  • can be directed at projects that have good buy-in from the faculty
  • learn how to work both as part of a team and independently
  • Involvement in multiple projects should be encouraged
  • The more likely trajectory of a junior faculty member will evolve from contributing team member to increasing leadership responsibilities to team leader
  • nternal evaluations of contributions and potential will become more important in tenure and promotion decisions.
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 07 Aug 14
       
      Need value accounting system
  • relationships with foundations, donors, state agencies, and private business will become increasingly important in the funding game
  • The opportunities to form partnerships with business are especially intriguing
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 07 Aug 14
       
      The problem is to change the model and go open source, because IP stifles other processes that might benefit Universities!!!
  • Further complicating university collaborations with business is that past examples of such partnerships have not always been easy or free of controversy.
  • some faculty members worried about firms dictating the research priorities of the university, pulling graduate students into proprietary research (which could limit what they could publish), and generally tugging the relevant faculty in multiple directions.
  • developed rules and guidelines to control them
  • University faculty and businesspeople often do not understand each other’s cultures, needs, and constraints, and such gaps can lead to more mundane problems in university/industry relations, not least of which are organizational demands and institutional cultures
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 07 Aug 14
       
      Needs for mechanisms to govern, coordinate, structure an ecosystem -See SENSORICA's Open Alliance model
  • n addition to funding for research, universities can receive indirect benefits from such relationships. High-profile partnerships with businesses will underline the important role that universities can play in the economic development of a region.
  • Universities have to see firms as more than just deep pockets, and firms need to see universities as more than sources of cheap skilled labor.
  • foundations or other philanthropy
  • We do not believe that research proposed and supervised by individual principal investigators will disappear anytime soon. It is a research model that has proven to be remarkably successful and enduring
  • However, we believe that the most vibrant scientific communities on university and college campuses, and the ones most likely to thrive in the new reality of funding for the sciences, will be those that encourage the formation of research teams and are nimble with regard to funding sources, even as they leave room for traditional avenues of funding and research.
Tiberius Brastaviceanu

Designing the Void | Management Innovation eXchange - 0 views

www.managementexchange.com/...40941

OVNi infrastructure OVN contribution accounting

shared by Tiberius Brastaviceanu on 08 Jan 15 - No Cached
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      This is about self-organization, putting in place bounderies and internal mechanisms to make the the system self-organize into something desirable.  You can see this from a game theory perspective - how to set a game which will drive a specific human behavior. 
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      This is about self-organization, putting in place bounderies and internal mechanisms to make the the system self-organize into something desirable.  You can see this from a game theory perspective - how to set a game which will drive a specific human behavior. 
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      Very similar to SENSORICA, an environment of entrepreneurs. The argument against this is that not everyone is a risk taker or has initiative. The answer to it is that not every role in the organization requires that. 
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      Very similar to SENSORICA, an environment of entrepreneurs. The argument against this is that not everyone is a risk taker or has initiative. The answer to it is that not every role in the organization requires that. 
  • The system is not made up of artifacts but rather an elegantly designed void. He says “I prefer to use the analogy of rescuing an endangered species from extinction, rather than engaging in an invasive breeding program the focus should be on the habitat that supports the species. Careful crafting of the habitat by identifying the influential factors; removing those that are detrimental, together with reinforcing those that are encouraging, the species will naturally re-establish itself. Crafting the habitat is what I mean by designing the void.”
  • ...75 more annotations...
  • It is essential that autonomy is combined with responsibility.
  • staff typically manage the whole work process from making sales, manufacture, accounts, to dispatch
  • they are also responsible for managing their own capitalization; a form of virtual ownership develops. Everything they need for their work, from office furniture to high-end machinery will appear on their individual balance sheet; or it will need to be bought in from somewhere else in the company on a pay-as-you go or lease basis. All aspects of the capital deployed in their activities must be accounted for and are therefore treated with the respect one accords one’s own property.
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      So they have a value accounting system, like SENSORICA, where they log "uses" and "consumes". 
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      ...
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      So they have a value accounting system, like SENSORICA, where they log "uses" and "consumes".  
  • The result is not simply a disparate set of individuals doing their own thing under the same roof. Together they benefit from an economy of scale as well as their combined resources to tackle large projects; they are an interconnected whole. They have in common a brand, which they jointly represent, and also a business management system (the Say-Do-Prove system) - consisting not only of system-wide boundaries but also proprietary business management software which helps each take care of the back-end accounting and administrative processing. The effect is a balance between freedom and constraint, individualism and social process.
  • embodiment of meaning
  • But culture is a much more personal phenomenon
  • Culture is like climate- it does not exist in and of itself- it cannot exist in a vacuum, it must exist within a medium.
  • underlying culture
  • Incompatibility between the presenting culture and the underlying one provide a great source of tension
  • The truth of course is that when tension builds to a critical level it takes just a small perturbation to burst the bubble and the hidden culture reveals itself powered by the considerable pent-up energy.
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      SENSORICA had this problem of different cultures, and it caused the 2 crisis in 2014. 
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      SENSORICA had this problem of different cultures, and it caused the 2 crisis in 2014. 
  • Consider again the idea that for the health of an endangered species; the conditions in their habitat must be just right. In business, the work environment can be considered analogous to this idea of habitat.
  • A healthy environment is one that provides a blank canvas; it should be invisible in that it allows culture to be expressed without taint
  • The over-arching, high-level obligations are applied to the organization via contractual and legal terms.
  • But it is these obligations that the traditional corporate model separates out into functions and then parcels off to distinct groups. The effect is that a clear sight of these ‘higher’ obligations by the people at the front-end is obstructed. The overall sense of responsibility is not transmitted but gets lost in the distortions, discontinuities and contradictions inherent in the corporate systems of hierarchy and functionalization.
  • employees are individually rewarded for their contribution to each product. They are not “compensated” for the hours spent at work. If an employee wants to calculate their hourly rate, then they are free to do so however, they are only rewarded for the outcome not the duration of their endeavors.
  • Another simplification is the application of virtual accounts (Profit and Loss (P&L) account and Balance Sheet) on each person within the business.
  • The company systems simply provide a mechanism for cheaply measuring the success of each individual’s choices. For quality the measure is customer returns, for delivery it is an on-time-and-in-full metric and profit is expressed in terms of both pounds sterling and ROI (return on investment).
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      They have a value accounting system. 
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 08 Jan 15
       
      They have a value accounting system. 
  • The innumerable direct links back to an external reality -like the fragile ties that bound giant Gulliver, seem much more effective at aligning the presenting culture and the underlying embodied culture, and in doing so work to remove the existing tension.
  • With a culture that responds directly to reality, the rules in the environment can be “bounding” rather than “binding”- limiting rather than instructive; this way individual behavior need not be directed at all. The goal is to free the individual to express himself fully through his work, bounded only by the limits of the law. With clever feedback (self-referencing feedback loops) integrated into the design, the individuals can themselves grow to collectively take charge of the system boundaries, culture and even the environment itself, always minded of the inherent risks they are balancing, leaving the law of the land as the sole artificial boundary.
  • the conventional company, which, instead of rewarding enterprise, trains compliance by suppressing individual initiative under layer upon layer of translation tools.
  • apply accountability to the individual not command-and-control.
  • without the divisive and overbearing management cabal the natural reaction of humans is to combine their efforts
  • a new member of staff at Matt Black Systems
  • recruited by another staff member (sponsor) and they will help you learn the basics of the business management system- they will help you get to know the ropes.
  • jobs are passed to new staff members, a royalty payment can be established on the work passed over.
  • Along with that job you will be given a cash float (risk capital), P&L Account, a Balance Sheet and computer software to help plan and record your activities. Your operation is monitored by your sponsor to see if you increase the margin or volume, and so establish a sustainable operation. Training and mentoring is provided to support the steep learning curve - but without removing the responsibility of producing a return on the sponsor’s risk capital.
  • You will, in the meantime be looking to establish some of your own work for which you will not have to pay a commission or royalty to your sponsor and this will provide you with more profitable operations such that eventually you might pass back to the sponsor the original operation, as it has become your lowest margin activity. It will then find its way to a new employee (along with the associated Balance Sheet risk capital) where the process is repeated by the sponsor.[4]
  • Remuneration for staff is calibrated in a way that reflects the balance of different forces around ‘pay’
  • there is an obligation upon the company to pay a minimum wage even if the profitability of the operation does not support this
  • there are therefore two aspects of the basic pay structure: one is “absolute” and reflects the entrepreneurial skill level of the employee according to a sophisticated grading scale
  • A further 20% of the original profit will be paid into his risk capital account, which will be his responsibility to deploy in any way he sees fit as part of his Balance Sheet. Of the three remaining 20% slices of the original profit, one is paid out as corporation tax, another as a dividend to the shareholders and the last retained as collective risk capital on the company’s balance sheet- a war chest so to speak.
  • Julian Wilson and Andrew Holm sell products / services to their staff (such as office space and software) they have an identical customer/supplier relationship with the other employees.
  • Naturally there are some people that can’t generate a profit. The sponsor’s risk capital will eventually be consumed through pay. After a process of rescue and recovery- where their shortcomings are identified and they are given the opportunity to put them right, they either improve or leave, albeit with a sizeable increase in their skills.
  • there is a gradual process of accustomisation; the void of the new employee is surrounded by others dealing with their particular activities, offering both role models and operations they may wish to relinquish. One step at a time the new employee acquires the skills to become completely self-managing, to increase their margins, to make investments, to find new business, to become a creator of their own success. Ultimately, they learn to be an entrepreneur.
  • responsible autonomy as an alternative vision to traditional hierarchy
  • Matt Black Systems it is not simply commitment that they targeted in their employees, rather they aim for the specific human qualities they sum up as magic- those of curiosity, imagination, creativity, cooperation, self-discipline and realization (bringing ideas to reality).
  • a new form of association of individuals working together under the umbrella of a company structure: a kind of collective autonomy
  • The business is called Matt Black Systems, based in Poole in dorset
  • Turning an organisation on its head- removing all management, establishing a P&L account and Balance Sheet on everyone in the organisation and having customers payment go first into the respective persons P&L account has revolutionised this company. 
  • This innovative company’s approach views business success as wholly reliant upon human agency, and its wellspring at the individual level.
  • problem (of unnecessarily high overheads placed on production) that arguably is behind the decline in western manufacturing
  • over-managed business
  • Autonomy Enables Productivity
  • organizational design brings to light the unconscious socio-philosophical paradigm of the society in which it exists, organizational development points to how change occurs.
  • a mechanistic approach to organization
  • scientific management employs rationalism and determinism in pursuit of efficiency, but leaves no place for self-determination for most people within the system.
  • Command and Control
  • today, a really “modern” view of an organization is more likely to be depicted in terms that are akin to an organism.
  • When it comes to getting work done, the simple question is: are people the problem or the solution?
  • the Taylorist approach may be more real in theory than in practice: its instrumentalist view of the workforce is cursed by unintended consequences. When workers have no space for their own creative expression, when they are treated like automata not unique individuals, when they become demotivated and surly, when they treat their work as a necessary evil; this is no recipe for a functional organization.
  • The natural, human reaction to this is unionization, defiance and even outright rebellion; to counter this, management grows larger and more rigid in pursuit of compliance, organizations become top heavy with staff who do not contribute directly to the process of value creation but wield power over those who do.
  • voluntary slavery of ‘wagery’
  • Even when disgruntled employees strike free and start their own businesses they seem unable to resist the hegemony of the conventional command-and-control approach
  • Making the transition involves adherence to a whole new sociology of work with all the challenging social and psychological implications that brings.
  • first principal that people in the business have the ability to provide the solution
  • In the “theory of constraints” the goal is to align front-line staff into a neat, compact line for maximum efficiency. Surely the most considered approach is to have front-line staff self-align in pursuit of their individual goals?
  • The removal of hierarchy and specialization is key to a massive improvement in both profitability and productivity. In summary: there are no managers in the company, or foremen, or sales staff, or finance departments; the company is not functionally compartmentalized and there is no hierarchy of command. In fact every member of staff operates as a virtual micro-business with their own Profit & Loss account and Balance Sheet, they manage their own work and see processes through from end to end
  • Formal interaction between colleagues takes place via “customer and supplier” relationships.
  • autonomy enables productivity
  • if one creates a space in which staff pursue their own goals and are not paid by the hour, they will focus on their activities not the clock; if they are not told what to do, they will need to develop their own initiative; if they are free to develop their own processes, they will discover through their own creative faculties how to work more productively- in pursuit of their goals
  • The human qualities which are of greatest potential value to the business are: curiosity, imagination, creativity, cooperation, self-discipline and realization (bringing ideas to reality)
  • These qualities are the very ones most likely to be withheld by an individual when the environment is ‘wrong’.
  • Any elements in the business environment that undermine the autonomy and purpose of the individual will see the above qualities withheld
  • High on the list of undermining elements come power-hierarchy and over-specialization
  • the responsibility of the individual is formalized, specified and restricted. An improved system is not one where responsibility is distributed perfectly but rather one where there is simply no opportunity for responsibility to be lost (via the divisions between the chunks). Systems must be reorganized so responsibility -the most essential of qualities -is protected and wholly preserved.
  • Matt Black Systems believe this can only be done by containing the whole responsibility within an individual, holding them both responsible and giving them ‘response-ability’
  • The experience of Matt Black Systems demonstrates that radical change is possible
  • productivity is up 300%, the profit margin is up 10%[3], customer perception has shifted from poor to outstanding, product returns are at less than 1%, “on time and in full” delivery is greater than 96%, pay has increased 100%.
  • staff develop broader and deeper skills and feel greater job security; they get direct feedback from their customers which all go to fuel self-confidence and self-esteem.
  • the staff manage themselves
  • “only variety can absorb variety”.
  • What is particular about their story is that behind it is a very consciously crafted design that surrounds the individualism of each person with hard boundaries of the customer, the law and the business. It is these boundaries rather than the instructive persona of ‘the boss’ that gives rise to the discipline in which individuals can develop. Autonomy is not the same as freedom, at least not in the loose sense of ‘do as you please’. An autonomous person is a person who has become self-governing, who has developed a capacity for self-regulation, quite a different notion from the absence of boundaries. Indeed, it is with establishing the right boundaries that the business philosophy is most concerned. The company provides the crucible in which the individual can develop self-expression but the container itself is bounded. Wilson calls this “designing the void”. This crucible is carefully constructed from an all-encompassing, interconnecting set of boundaries that provide an ultimate limit to behaviours (where they would fall foul of the law or take risks with catastrophic potential). It is an illusion to think, as a director of a company, that you are not engaged in a process of social conditioning; the basis of the culture is both your responsibility and the result of your influence. The trick is to know what needs to be defined and what needs to be left open. The traditional authoritarian, controlling characters that often dominate business are the antithesis of this in their drive to fill this void with process, persona and instruction. Alternatively, creating an environment that fosters enterprise, individuals discover how to be enterprising.
Tiberius Brastaviceanu

Open Collaboration - The Next Economic Paradigm - 0 views

www.chaoticripple.com/...open-collaboration-paradigm

collaboration economy blog paper Joe Brewer

shared by Tiberius Brastaviceanu on 30 Apr 11 - No Cached
  • we’re in the midst of a collapsing paradigm
  • to be replaced by something new
  • I will explain what the new paradigm
  • ...40 more annotations...
  • business
  • government
  • education
  • research
  • The old economic paradigm was a service economy built on the digital communications revolution that began in the early 1970′s.
  • financial capital has decoupled from productive capital
  • financial meltdown
  • major societal institutions have stalled
  • the funding models
  • no longer work properly
  • The new model is the Open Collaboration Paradigm
  • we will see a radical departure from old institutional models.
  • social capital is increasingly recognized
  • generating wealth for society
  • This will be a profoundly social economy, built on unprecedented capabilities to self-organize people and resources in the crowd.
  • Social media
  • connect ideas, people, and institutions
  • blur the inside/outside distinctions
  • Network connections
  • radical transparency will be the new norm
  • Another profound shift will occur in the realm of ownership
  • No longer
  • viable
  • to horde intellectual property
  •  Collaborative consumption will arise as a more robust business paradigm,
  • risk is distributed
  • implications for business
  •  Those who can leverage the wisdom of crowds for market research, product development, and efficient resource allocation will be more adept and agile in the face of rapid change.
  • Those who build walls around themselves will fail to tap into the flow of knowledge and resources running rampant in the crowd
  • governments will have to become more transparent and responsive to their citizens
  • information becomes more immersive and dynamic
  • Research has already begun to use open collaboration that goes beyond the halls of academia.
  • collaborative approach to research will become the norm,
  • The era of “user generated content” and “prosumption” — where consumers of goods and services co-create what they will consume — is now a decade along in its evolution.  We will increasingly see collaborative design and production of consumables across society.
  • In the education arena, we will see more curricula as shareware and an increased emphasis on multi-perspective teamwork as the necessary skills for engaging in collaborative projects.
  • Expert/amateur boundaries have already blurred to the point where individuals can acquire graduate-level knowledge through self-directed learning on the internet.
  • distance learning
  •  Lifetime learning
  • active pedagogy
  • So get ready for the new economic paradigm.
Steve Bosserman

Instead of Student Loans, Investing in Futures - NYTimes.com - 0 views

opinionator.blogs.nytimes.com/...ent-loans-investing-in-futures

risk_management investment milton_friedman human_capital

shared by Steve Bosserman on 31 May 11 - No Cached
  • Steve Bosserman on 31 May 11
     
    So how do we finance something that is extremely valuable both for individuals and for society - something that, in most cases, should happen, but often won't happen because the risks are too high? The best way is to spread the risk. That's how insurance works. In Lumni's case, students share the risk with investors, who make more or less based on how well the students do. But they also share it with one another. Lumni pools its investments into funds to balance out the risks. They know that some students will run into difficulties, some will achieve average success, and some will do very well - but they don't know in advance how any individual student will fare. And students don't know this themselves. Through diversification, however, their funds can achieve stable returns. What this means is that the students who have the biggest problems benefit the most. And, in effect, those who decide to become investment bankers end up subsidizing the ones who decide to become social workers. Since a good society needs many different roles fulfilled, everyone benefits. That, at least, is the theory. Economists are skeptical about human capital contracts - which were first proposed by Milton Friedman in the 1950s - because they have many potential problems and little track record. But Lumni seems to be making them work - at least on a small scale. Whether it can succeed at a larger level remains to be seen.
Tiberius Brastaviceanu

Permaculture Principles | Design Principles - 1 views

permacultureprinciples.com/principles_business.php

permaculture principles design business resilience paper

shared by Tiberius Brastaviceanu on 07 Sep 11 - Cached
  • how the principles of permaculture might apply to business.
  • The shift will be from merely prioritising output to thinking more widely.
  • how to build resilience for business
  • ...64 more annotations...
  • observation
  • A post-peak world will depend on detailed observation and good design rather than energy-intensive solutions.
  • not rely on weather forecasts but to learn to read the clouds,
  • “instead of researching the market, be the market”
  • businesses should be out there observing.
  • larger businesses tend to rely more on surveys and on second-hand information.
  • direct contact with customers.
  • move our idea of ‘capital’ from what we have in the bank, to the resources we have around us
  • not running a business on a constant high speed cash throughput with little or no capital reserves
  • lack of resilience in the just-in-time supply approach
  • a shift to storages of parts and materials, as well as the need to financially not be so dependent on debt financing
  • work slower with more financial reserves and take less risks, not building beyond what the company’s financial resources can support.
  • either to not borrow any money at all, or to borrow so much money that you can’t fail, being bigger than the people you borrow money from, so they have a vested interest in your succeeding!
  • energy efficient
  • long term
  • Looking to make buildings as autonomous as possible in a world entering energy descent is critical
  • see things that are flowing past and through the business that others don’t see as being a resource and having no monetary value as being valuable.
  • any intervention we make in a system, any changes we make or elements we introduce ought to be productive
  • This is instinctive to businesses
  • Obtain a Yield, in this context, is out of balance
  • much of business
  • have taken this to extremes
  • A well-designed system using permaculture principles should be able to self-regulate, and require the minimum of intervention and maintenance, like a woodland ecosystem, which requires no weeding, fertiliser or pest control.
  • moving from “we’re just obeying the law” to being proactive, acting before you get hit over the head with regulation and other vulnerabilities.
  • be able to put a foot on the break, not just going hell for leather on profit maximisation.
  • apply applied restraint, avoiding excessive, overfast growth that hasn’t been consolidated
  • looking for the negative feedbacks, from customers and from the environment in general
  • We need to increase the tightness of feedbacks.
  • Where nature can perform particular functions
  • we should utilise these attributes, rather than thinking we can replace them
  • Where nature can take some work off our hands we should let it.
  • a shift towards renewable resources
  • The emerging opportunities for businesses are things that are renewable. Renewable energy sources are the ones that will ensure a business’s stability in the long run. We can also broaden the concept of renewable resources to include things like goodwill and trust, things which a business can rebuild with good husbandry. Most business doesn’t just depend on law and competition, trust is at the heart of much business and it is very much a renewable resource.
  • The concept of waste is essentially a reflection of poor design. Every output from one system could become the input to another system. We need to think cyclically rather than in linear systems.
  • looking at our work from a range of perspectives
  • wider context
  • keep a clearer sense of the wider canvas on which we are painting, and the forces that affect what we are doing.
  • being strategic is important too
  • ask how is what we are doing part of a bigger picture, the move away from globalisation and towards the local, taking steps back from the everyday.
  • This can be done firstly by allowing space for Devil’s advocates, for black sheep, for hearing the voices of those outside of the dominant culture of the organisation and secondly by looking from a holistic perspective of how things interconnect, rather than just relying on experts who are embedded in detail. It emphasises the need to value the generalist, to give value to holistic thinkers.
  • allowing people to imagine different possibilities.
  • scenario planning
  • Permaculture has been described as the science of maximising beneficial relationships.
  • Solutions are to be found in integrated holistic solutions rather than increased specialisation and compartmentalisation
  • The challenge here is to move to seeing business as being part of the geographical community, as being rooted in place, rather than just part of a globalised community. At the moment for many larger businesses, the local is something one pays lip-service to as a source of good PR, something one is passing through, rather than actually being an integral part of the community.
  • This is a profound structural challenge for large organisations. Part of the resilience of the organisation comes from the degree of lateral integration. Resilience is in all solutions, it is the characteristic of ecological systems. If we apply these principles, resilience is one of the emergent properties
  • the notion that big is best needs to be challenged
  • new opportunities are very hard to understand and exploit from a macro level perspective, and are much better done from small scale perspective. It is here that the idea of appropriateness of scale becomes key.
  • more diverse systems have much more inbuilt resilience
  • have a diversity of small businesses, local currencies, food sources, energy sources and so on than if they are just dependent on centralised systems, globalisation’s version of monoculture.
  • not having all your eggs in one basket.
  • In the short term this kind of diversification could reduce profits, but in the longer term it will be more secure
  • this is about the reverse of specialisation, about having a mixed portfolio, and presents a big culture change for businesses.
  • it is a good strategy for business to keep a diverse portfolio of what sustains the business, keep some things that appear to be peripheral. They may not at this stage appear to be a serious part of how the business is run, but in this new world they will increasingly become so
  • ‘edge’
  • the point where two ecosystems meet is often more productive than either of those systems on their own.
  • overlap systems where possible so as to maximise their potential.
  • recognising that innovation doesn’t come from the centre but from fringe thinkers.
  • giving status to the marginal
  • It is important that the business has as many fingers in as many pies as possible, as many interfaces, and recognises that every person working for the business represents it in the community.
  • Natural systems are constantly in flux, evolving and growing.
  • Remaining observant of the changes around you, and not fixing onto the idea that anything around you is fixed or permanent will help too.
  • be flexible, lean and adaptable
  • A healthy approach is to start with no complete plan, to allow the process to be emergent. This is not a time when we can work to a rigid plan as conditions will change so fast. Organisations will need to stay on their toes, without rigid management.
Tiberius Brastaviceanu

Partner State - P2P Foundation - 0 views

p2pfoundation.net/Partner_State

partner state blockchainaccess_project paper

shared by Tiberius Brastaviceanu on 30 May 16 - No Cached
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 30 May 16
       
      we call this a custodian
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 30 May 16
       
      we call this a custodian
  • So here we have it, the new triarchy: - The state, with its public property and representative mechanisms of governance (in the best scenario) - The private sector, with the corporation and private property - The commons, with the Trust (or the for-benefit association), and which is the ‘property’ of all its members (not the right word in the context of the commons, since it has a different philosophy of ownership)
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 30 May 16
       
      so where is direct democracy in all this?
  • ...39 more annotations...
  • In a first phase, the commons simply emerges as an added alternative.
  • becoming a subsector of society, and starts influencing the whole
  • phase transition and transformation will need to occur.
  • how a commons-dominated, i.e. after the phase transition, society would look like.
  • At its core would be a collection of commons, represented by trusts and for-benefit associations, which protect their common assets for the benefit of present and future generations
  • The commons ‘rents out’ the use of its resources to entrepreneurs. In other words, business still exists, though infinite growth-based capitalism does not.
  • More likely is that the corporate forms will be influenced by the commons and that profit will be subsumed to other goals, that are congruent with the maintenance of the commons.
  • The state will still exist, but will have a radically different nature
  • Much of its functions will have been taken over by commons institutions, but since these institutions care primarily about their commons, and not the general common good, we will still need public authorities that are the guarantor of the system as a whole, and can regulate the various commons, and protect the commoners against possible abuses. So in our scenario, the state does not disappear, but is transformed, though it may greatly diminish in scope, and with its remaining functions thoroughly democratized and based on citizen participation.
  • In our vision, it is civil-society based peer production, through the Commons, which is the guarantor of value creation by the private sector, and the role of the state, as Partner State, is to enable and empower the creation of common value. The new peer to peer state then, though some may see that as a contradictio in terminis, is a state which is subsumed under the Commons, just as it is now under the private sector. Such a peer to peer state, if we are correct, will have a much more modest role than the state under a classic state society, with many of its functions taken over by civil society associations, interlinked in processes of global governance. The above then, this triarchy, is the institutional core which replaces the dual private-public binary system that is characteristic of the capitalist system that is presently the dominant format.
  • fundamental mission is to empower direct social-value creation, and to focus on the protection of the Commons sphere as well as on the promotion of sustainable models of entrepreneurship and participatory politics
  • the state becomes a 'partner state' and enables autonomous social production.
  • the state does exist, and I believe that we can’t just imagine that we live in a future state-less society
  • retreating from the binary state/privatization dilemma to the triarchical choice of an optimal mix amongst government regulation, private-market freedom and autonomous civil-society projects
  • the role of the state
  • “the peer production of common value requires civic wealth and strong civic institutions.
  • trigger the production/construction of new commons by - (co-) management of complexe resource systems which are not limited to local boundaries or specific communities (as manager and partner) - survey of rules (chartas) to care for the commons (mediator or judge) - kicking of or providing incentives for commoners governing their commons - here the point is to design intelligent rules which automatically protect the commons, like the GPL does (facilitator)"
  • the emergence of the digital commons. It is the experience of creating knowledge, culture, software and design commons, by a combination of voluntary contributions, entrepreneurial coalitions and infrastructure-protecting for-benefit associations, that has most tangibly re-introduced the idea of commons, for all to use without discrimination, and where all can contribute. It has drastically reduced the production, distribution, transaction and coordination costs for the immaterial value that is at the core also of all what we produce physically, since that needs to be made, needs to be designed. It has re-introduced communing as a mainstream experience for at least one billion internet users, and has come with proven benefits and robustness that has outcompeted and outcooperated its private rivals. It also of course offers new ways to re-imagine, create and protect physical commons.
  • stop enclosures
  • peer to peer, i.e. the ability to freely associate with others around the creation of common value
  • communal shareholding, i.e. the non-reciprocal exchange of an individual with a totality. It is totality that we call the commons.
  • It is customary to divide society into three sectors, and what we want to show is how the new peer to peer dynamic unleashed by networked infrastructures, changes the inter-relationship between these three sectors.
  • In the current ‘cognitive capitalist’ system, it is the private sector consisting of enterprises and businesses which is the primary factor, and it is engaged in competitive capital accumulation. The state is entrusted with the protection of this process. Though civil society, through the citizen, is in theory ‘sovereign’, and chooses the state; in practice, both civil society and the state are under the domination of the private sector.
  • it fulfills three contradictory functions
  • Of course, this is not to say that the state is a mere tool of private business.
  • protect the whole system, under the domination of private business
  • protector of civil society, depending on the balance of power and achievements of social movements
  • protector of its own independent interests
  • Under fascism, the state achieves great independence from the private sector , which may become subservient to the state. Under the welfare state, the state becomes a protector of the social balance of power and manages the achievements of the social movement; and finally, under the neoliberal corporate welfare state, or ‘market state’, it serves most directly the interests of the financial sector.
  • key institutions and forms of property.
  • The state managed a public sector, under its own property.
  • The private sector , under a regime of private ownership, is geared to profit, discounts social and natural externalities, both positive and negative, and uses its dominance in society to use and dominate the state.
  • civil society has a relative power as well, through its capability of creating social movements and associations
  • Capitalism has historically been a pendulum between the private and the public sector
  • However, this configuration is changing,
  • the endangerment of the biosphere through the workings of ‘selfish’ market players; the second is the role of the new digital commons.
  • participatory politics
  • Peer production gives us an advance picture of how a commons-oriented society would look like. At its core is a commons and a community contributing to it, either voluntarily, or as paid entrepreneurial employees. It does this through collaborative platforms using open standards. Around the commons emerges enterprises that create added value to operate on the marketplace, but also help the maintenance and the expansion of the commons they rely on. A third partner are the for-benefit associations that maintain the infrastructure of cooperation. Public authorities could play a role if they wanted to support existing commons or the creation of new commons, for the value they bring to society.
  • if a commons is not created as in the case of the digital commons, it is something that is inherited from nature or former generations, given in trust and usufruct, so that it can be transmitted to our descendents. The proper institution for such commons is therefore the trust, which is a corporate form that cannot touch its principal capital, but has to maintain it.
Kurt Laitner

Owning Together Is the New Sharing by Nathan Schneider - YES! Magazine - 0 views

www.yesmagazine.org/...ng-together-is-the-new-sharing

ouishare sensorica loomio enspiral cobudget ethereum sovolve swarm ownership sharing paper

shared by Kurt Laitner on 05 Jan 15 - No Cached
  • VC-backed sharing economy companies like Airbnb and Uber have caused trouble for legacy industries, but gone is the illusion that they are doing it with actual sharing
  • Their main contribution to society has been facilitating new kinds of transactions
  • The notion that sharing would do away with the need for owning has been one of the mantras of sharing economy promoters. We could share cars, houses, and labor, trusting in the platforms to provide. But it’s becoming clear that ownership matters as much as ever.
  • ...30 more annotations...
  • Whoever owns the platforms that help us share decides who accumulates wealth from them, and how
  • Léonard and his collaborators are part of a widespread effort to make new kinds of ownership the new norm. There are cooperatives, networks of freelancers, cryptocurrencies, and countless hacks in between. Plans are being made for a driver-owned Lyft, a cooperative version of eBay, and Amazon Mechanical Turk workers are scheming to build a crowdsourcing platform they can run themselves. Each idea has its prospects and shortcomings, but together they aspire toward an economy, and an Internet, that is more fully ours.
  • Jeremy Rifkin, a futurist to CEOs and governments, contends that the Internet-of-things and 3-D printers are ushering in a “ zero marginal cost society“ in which the “collaborative commons” will be more competitive than extractive corporations
  • once the VC-backed sharing companies clear away regulatory hurdles, local co-ops will be poised to swoop in and spread the wealth
  • People are recognizing that doing business differently will require changing who gets to own what.
  • “We’re moving into a new economic age,” says Marjorie Kelly, who spent two decades at the helm of Business Ethics magazine and now advises social entrepreneurs. “It needs to be sustainable. It needs to be inclusive. And the foundation of what defines an economic age is its form of ownership.”
  • It’s a worker-owned cooperative that produces open-source software to help people practice consensus—though they prefer the term “collaboration”—about decisions that affect their lives.
  • From the start Loomio was part of Enspiral, an “open value network“ of freelancers and social enterprises devoted to mutual support and the common good.
  • a companion tool, CoBudget, to help them allocate resources together
  • The team members recently had to come to terms with the fact that, for the time being, only some of them could be paid for full-time work They called the process “participatory downsizing.”
  • And they can take many forms. Loomio and other tech companies, for instance, are aspiring toward the model of a multi-stakeholder cooperative—one in which not just workers or consumers are voting members, but several such groups at once.
  • Loconomics is a San Francisco-based startup designed, like TaskRabbit, to manage short-term freelance jobs
  • “People who have been without for a long time,” she says, “often operate with a mindset that they can’t share what they have, because they don’t know when that resource will come along again.”
  • As Loconomics prepares to begin operations this winter, it’s running out of the pocket of the founder, Josh Danielson
  • The ambition of a cooperative Facebook or Uber—competitive, widespread, and owned by its community—still seems out of reach for enterprises not willing to sell large parts of themselves to investors. Organizations like 
  • His fellow OuiShare founder Benjamin Tincq is concerned that too much fixation on a particular model will make it hard for well-meaning ventures to be successful. “I like the idea that we don’t need to have a specific legal status,” he says. “It’s more about hacking an existing legal status and making these hacks work.”
  • Fenton’s new undertaking, Sovolve, proposes to “create innovative solutions to accelerate social change,” much as CouchSurfing did, but it’s doing the innovating cautiously. All work is done by worker-owners located around the world. Sovolve uses an internal platform—soon to become a product in its own right—through which contributors decide how much they want to be paid in cash and how much in equity. They can see how much others are earning. Their virtual workplace is gamified, with everyone working to nudge their first product, WonderApp, into virality
  • Loomio’s members use a similar system, which they call Loomio Points. But Sovolve is no cooperative; contributors are not in charge.
  • Open-source software and share-alike licenses have revived the ancient idea of the commons for an Internet age. But the “ commons-based peer production“ that Sensorica seeks to practice doesn’t arise overnight. Just as today’s business culture rests on generations of accumulated law, habit, and training, learning to manage a commons successfully takes time
  • It makes possible decentralized autonomous organizations, or DAOs, which exist entirely on a shared network
  • The most ambitious successor to Bitcoin, Ethereum, has raised more than $15 million in crowdfunding on the promise of creating such a network.
  • all with technology that makes collective ownership a lot easier than a conventional legal structure
  • A project called Eris is developing a collective decision-making tool designed to govern DAOs on Ethereum, though the platform may still be months from release.
  • For now, the burden of reinventing every wheel at once makes it hard for companies like Sensorica and Loomio to compete
  • For instance, Cutting Edge Capital specializes in helping companies raise money through a long-standing mechanism called the direct public investment, or DPO, which allows for small, non-accredited investors.
  • Venture funding may be in competition with Dietz’s cryptoequity vision, but it provides a fearsome head start
  • Co-ops help ensure that the people who contribute to and depend on an enterprise keep control and keep profits, so they’re a possible remedy for worsening economic inequality
  • Sooner or later, transforming a system of gross inequality and concentrated wealth will require more than isolated experiments at the fringes—it will require capturing that wealth and redirecting its flows
  • A less consensual strategy was employed to fund the Catalan Integral Cooperative in Spain; over the course of a few years, one activist borrowed around $600,000 from Spanish banks without paying any of it back.
  • In Jackson, Mississippi, Chokwe Lumumba was elected mayor in 2013 on a platform of fostering worker-owned cooperatives, although much of the momentum was lost when Lumumba died just a few months later.
Kurt Laitner

Towards a Material Commons | Guerrilla Translation! - 0 views

guerrillatranslation.com/...towards-a-material-commons

Michel Bauwens interview flok society

shared by Kurt Laitner on 31 Jan 14 - No Cached
  • the modes of communication we use are very tightly coupled with the modes of production that finance them
  • I’m focused on the policy formation around this transition to a new, open knowledge and commons-based economy, and that’s the research work I’m doing here
  • The problem is I can only make a living by still working for capital.
  • ...88 more annotations...
  • We now have a technology which allows us to globally scale small group dynamics, and to create huge productive communities, self-organized around the collaborative production of knowledge, code, and design. But the key issue is that we are not able to live from that, right
  • A lot of co-ops have been neo-liberalizing, as it were, have become competitive enterprises competing against other companies but also against other co-ops, and they don’t share their knowledge
  • We cannot create our own livelihood within that sphere
  • instead of having a totally open commons, which allows multinationals to use our commons and reinforce the system of capital, the idea is to keep the accumulation within the sphere of the commons.
  • The result would be a type of open cooperative-ism, a kind of synthesis or convergence between peer production and cooperative modes of production
  • then the material work, the work of working for clients and making a livelihood, would be done through co-ops
  • But it hasn’t had much of a direct connection to this emerging commons movement, which shares so many of the values and  principles of the traditional cooperative movement.
  • There’s also a lot of peer-to-peer work going on, but it’s not very well versed around issues like cooperative organization, formal or legal forms of ownership, which are based on reciprocity and cooperation, and how to interpret the commons vision with a structure, an organizational structure and a legal structure that actually gives it economic power, market influence, and a means of connecting it to organizational forms that have durability over the long-term.
  • The young people, the developers in open source or free software, the people who are in co-working centers, hacker spaces, maker spaces. When they are thinking of making a living, they think startups
  • They have a kind of generic reaction, “oh, let’s do a startup”, and then they look for venture funds. But this is a very dangerous path to take
  • Typically, the venture capital will ask for a controlling stake, they have the right to close down your start up whenever they feel like it, when they feel that they’re not going to make enough money
  • Don’t forget that with venture capital, only 1 out of 10 companies will actually make it, and they may be very rich, but it’s a winner-take-all system
  • we don’t have what Marx used to call social reproduction
  • I would like John to talk about the solidarity co-ops, and how that integrates the notion of the commons or the common good in the very structure of the co-op
  • They don’t have a commons of design or code, they privatize and patent, just like private competitive enterprise, their knowledge
  • Cooperatives, which are basically a democratic and collective form of enterprise where members have control rights and democratically direct the operations of the co-op, have been the primary stakeholders in any given co-op – whether it’s a consumer co-op, or a credit union, or a worker co-op.
  • Primarily, the co-op is in the service of its immediate members
  • What was really fascinating about the social co-ops was that, although they had members, their mission was not only to serve the members but also to provide service to the broader community
  • In the city of Bologna, for example, over 87% of the social services provided in that city are provided through contract with social co-ops
  • democratically run
  • much more participatory, and a much more engaged model
  • The difference, however, is that the structure of social co-ops is still very much around control rights, in other words, members have rights of control and decision-making within how that organization operates
  • And it is an incorporated legal structure that has formal recognition by the legislation of government of the state, and it has the power, through this incorporated power, to negotiate with and contract with government for the provision of these public services
  • In Québec they’re called Solidarity co-ops
  • So, the social economy, meaning organizations that have a mutual aim in their purpose, based on the principles of reciprocity, collective benefit, social benefit, is emerging as an important player for the design and delivery of public services
  • This, too, is in reaction to the failure of the public market for provision of services like affordable housing or health care or education services
  • This is a crisis in the role of the state as a provider of public services. So the question has emerged: what happens when the state fails to provide or fulfill its mandate as a provider or steward of public goods and services, and what’s the role of civil society and the social economy in response?
  • we have commonses of knowledge, code and design. They’re more easily created, because as a knowledge worker, if you have access to the network and some means, however meager, of subsistence, through effort and connection you can actually create knowledge. However, this is not the case if you move to direct physical production, like the open hardware movement
  • I originally encountered Michel after seeing some talks by Benkler and Lessig at the Wizard of OS 4, in 2006, and I wrote an essay criticizing that from a materialist perspective, it was called “The creative anti-commons and the poverty of networks”, playing on the terms that both those people used.
  • In hardware, we don’t see that, because you need to buy material, machines, plastic, metal.
  • Some people have called the open hardware community a “candy” economy, because if you’re not part of these open hardware startups, you’re basically not getting anything for your efforts
  • democratic foundations like the Apache foundation
  • They conceive of peer production, especially Benkler, as being something inherently immaterial, a form of production that can only exist in the production of immaterial wealth
  • From my materialist point of view, that’s not a mode of production, because a mode of production must, in the first place, reproduce its productive inputs, its capital, its labor, and whatever natural wealth it consumes
  • From a materialist point of view, it becomes  obvious that the entire exchange value produced in these immaterial forms would be captured by the same old owners of materialist wealth
  • different definition of peer production
  • independent producers collectively sharing a commons of productive assets
  • I wanted to create something like a protocol for the formation and allocation of physical goods, the same way we have TCP/IP and so forth, as a way to allocate immaterial goods
  • share and distribute and collectively create immaterial wealth, and become independent producers based on this collective commons.
  • One was the Georgist idea of using rent, economic rent, as a fundamental mutualizing source of wealth
  • Mutualizing unearned income
  • So, the unearned income, the portion of income derived from ownership of productive assets is evenly distributed
  • This protocol would seek to normalize that, but in a way that doesn’t require administration
  • typical statist communist reaction to the cooperative movement is saying that cooperatives can exclude and exploit one another
  • But then, as we’ve seen in history, there’s something that develops called an administrative class,  which governs over the collective of cooperatives or the socialist state, and can become just as counterproductive and often exploitive as capitalist class
  • So, how do we create cooperation among cooperatives, and distribution of wealth among cooperatives, without creating this administrative class?
  • This is why I borrowed from the work of Henry George and Silvio Gesell in created this idea of rent sharing.
  • This is not done administratively, this is simply done as a protocol
  • The idea is that if a cooperative wants an asset, like, an example is if one of the communes would like to have a tractor, then essentially the central commune is like a bond market. They float a bond, they say I want a tractor, I am willing to pay $200 a month for this tractor in rent, and other members of the cooperative can say, hey, yeah, that’s a good idea,we think that’s a really good allocation of these productive assets, so we are going to buy these bonds. The bond sale clears, the person gets the tractor, the money from the rent of the tractor goes back to clear the bonds, and  after that, whatever further money is collected through the rent on this tractor – and I don’t only mean tractors, same would be applied to buildings, to land, to any other productive assets – all this rent that’s collected is then distributed equally among all of the workers.
  • The idea is that people earn income not only by producing things, but by owning the means of production, owning productive assets, and our society is unequal because the distribution of productive assets is unequal
  • This means that if you use your exact per capita share of property, no more no less than what you pay in rent and what you received in social dividend, will be equal
  • But if you’re not working at that time, because you’re old, or otherwise unemployed, then obviously the the productive assets that you will be using will be much less than the mean and the median, so what you’ll receive as dividend will be much more than what you pay in rent, essentially providing a basic income
  • venture communism doesn’t seek to control the product of the cooperatives
  • It doesn’t seek to limit, control, or even tell them how they should distribute it, or under what means; what they produce is entirely theirs, it’s only the collective management of the commons of productive assets
  • On paper this would seem to work, but the problem is that this assumes that we have capital to allocate in this way, and that is not the case for most of the world workers
  • how do we get to that stage?
  • other two being counter politics and insurrectionary finance
  • do we express our activism through the state, or do we try to achieve our goals by creating the alternative society outside
  • pre-figurative politics, versus statist politics
  • My materialist background tells me that when you sell your labor on the market, you have nothing more than your subsistence costs at the end of it, so where is this wealth meant to come from
  • I believe that the only reason that we have any extra wealth beyond subsistence is because of organized social political struggle; because we have organized in labor movements, in the co-op movement, and in other social forms
  • To create the space for prefiguring presupposes engagement with the state, and struggle within parliaments, and struggle within the public social forum
  • Instead, we should think that no, we must engage in the state in order to protect our ability to have alternative societies
  • We can only get rid of the state in these areas once we have alternative, distributed, cooperative means to provide those same functions
  • We can only eliminate the state from these areas once they actually exist, which means we actually have to build them
  • What I mean by insurrectionary finance is that we have to acknowledge that it’s not only forming capital and distributing capital, it’s also important how intensively we use capital
  • I’m not proposing that the cooperative movement needs to engage in the kind of derivative speculative madness that led to the financial crisis, but at the same time we can’t… it can’t be earn a dollar, spend a dollar
  • We have to find ways to create liquidity
  • to deal with economic cycles
  • they did things the organized left hasn’t been able to do, which is takeover industrial means of production
  • if they can take over these industrial facilities, just in order to shut them down and asset strip them, why can’t we take them over and mutualize them?
  • more ironic once you understand that the source of investment that Milken and his colleagues were working with were largely workers pension funds
  • idea of venture communism
  • pooling, based on the capture of unearned income
  • in Québec, there is a particular form of co-op that’s been developed that allows small or medium producers to pool their capital to purchase machinery and to use it jointly
  • The other idea I liked was trying to minimize a management class
  • much more lean and accountable because they are accountable to boards of directors that represent the interests of the members
  • I’ve run into this repeatedly among social change activists who immediately recoil at the notion of thinking about markets and capital, as part of their change agenda
  • I had thought previously, like so many, that economics is basically a bought discipline, and that it serves the interests of existing elites. I really had a kind of reaction against that
  • complete rethinking of economics
  • recapture the initiative around vocabulary, and vision, with respect to economics
  • reimagining and reinterpreting, for a popular and common good, the notion of market and capital
  • advocating for a vision of social change that isn’t just about politics, and isn’t just about protest, it has to be around how do we reimagine and reclaim economics
  • markets actually belong to communities and people
  • capital wasn’t just an accumulated wealth for the rich
  • I think what we’re potentially  talking about here is to make the social economy hyper-productive, hyper-competitive, hyper-cooperative
  • The paradox is that capital already knows this. Capital is investing in these peer production projects
  • Part of the proposal of the FLOK society project in Ecuador will be to get that strategic reorganization to make the social economy strategic
  • Kurt Laitner on 31 Jan 14
     
    A lot of really interesting points of discussion in here.
Tiberius Brastaviceanu

Private 'Distributed Ledgers' Miss the Point of a Blockchain | Bank Think - 0 views

www.americanbanker.com/...of-a-blockchain-1077435-1.html

paper blockchainaccess_project

shared by Tiberius Brastaviceanu on 27 May 16 - No Cached
  • a new buzzword making waves throughout the financial industry: “distributed ledger.”
  • Some say it's a tool to enable transparency by ensuring that all members of a group receive cryptographically secured messages about participants’ activities
  • Some are even bold enough to predict that distributed ledgers will end the madness of managing multiple database and reconciliation structures.
  • ...13 more annotations...
  • Distributed ledgers have primarily claimed to supplant the need for Bitcoin's mining process by introducing trust requirements among participants. These ledgers also promise users the immutability of Bitcoin without the need for expensive mining operations.
  • the technology powering distributed ledgers predates blockchains by well over 20 years.
  • Proponents of distributed ledgers argue that they can displace centralized providers such as SWIFT,
  • by moving money faster
  • There’s no doubt that blockchain technology will facilitate disruptive innovations in finance
  • But a world of private ledgers sounds eerily similar to a range of “private Internets.”
  • Blockchain technology is useful not because it offers efficiency in a world of message-passing but because it uses a complex process to settle value between untrusted parties.
  • But distributed ledgers do not offer users the ability to easily convert their tokens and messages into fungible units of value. Nor do distributed ledgers escrow value between parties that don't trust each other.
  • If a ledger is not a public resource, it will have the pressures incumbent to existing settlement systems plus the overhead of maintaining a shared database among competitors. What efficiency will remain thereafter remains dubious.
  • Permissioned Blockchains
  • their institutional users will probably find it expedient to hash their private-chain transactions and use those hashes to create bitcoin addresses and then send tiny fractions of a bitcoin to them to register their data at a location that cannot be hacked or changed.
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 27 May 16
       
      This is also a problem with access, if an access event needs to be recorded in a way that cannot be altered, in a data location that cannot be altered, it will need to be stored on a block chain. 
  • In other words, all private ledger/blockchains will lead to Bitcoin's Rome, driven there by its low cost and high public accountability.
  • Tiberius Brastaviceanu on 27 May 16
     
    the case against private chains.
Kurt Laitner

Crowding Out - P2P Foundation - 1 views

p2pfoundation.net/Crowding_Out

crowding out p2p Michel Bauwens financial reward incentive

shared by Kurt Laitner on 17 Jul 15 - No Cached
  • The curve indicates that while workers will initially chose to work more when paid more per hour, there is a point after which rational workers will choose to work less
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      in other words, people are financially motivated until they are financially secure, then other motivations come in
  • "leaders" elsewhere will come and become your low-paid employees
  • At that point, the leaders are no longer leaders of a community, and they turn out to be suckers after all, working for pittance, comparatively speaking
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      so part of the dynamic is that everyone is paid fairly, if not there is the feeling of exploitation
  • ...36 more annotations...
  • under certain structural conditions non-price-based production is extraordinarily robust
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      which are... abundance?
  • It just is not so easy to assume that because people behave productively in one framework (the social process of peer production that is Wikipedia, free and open source software, or Digg), that you can take the same exact behavior, with the same exact set of people, and harness them to your goals by attaching a price to what previously they were doing in a social process.
  • giving rewards to customers can actually undermine a company’s relationship with them
  • There is, in fact, a massive amount of research that supports the idea that when you pay people to do something for you, they stop enjoying it, and distrust their own motivations. The mysterious something that goes away, and that “Factor X” even has a name: intrinsic motivation.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      the real question though is why, and whether it is the paying them that is the problem, or perhaps how that is determined, and who else gets what on what basis..  if you have to have them question the fairness of the situation, they will likely check out
  • Extrinsic rewards suggest that there is actually an instrumental relationship at work, that you do the activity in order to get something else
  • If you pay me for it, it must be work
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      only because a dichotomy of work and play exists in western culture
  • It’s what we would call a robust effect. It shows up in many contexts. And there’s been considerable testing to try to find out exactly why it works. A major school of thought is that there is an “Overjustification Effect.” (http://kozinets.net/archives/133)
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      yes, why is key
  • interesting examples of an effect called crowding
  • Offering financial rewards for contributions to online communities basically means mixing external and intrinsic motivation.
  • A good example is children who are paid by their parents for mowing the family lawn. Once they expect to receive money for that task, they are only willing to do it again if they indeed receive monetary compensation. The induced unwillingness to do anything for free may also extend to other household chores.
  • Once ‘gold-stars’ were introduced as a symbolic reward for a certain amount of time spent practicing the instrument, the girl lost all interest in trying new, difficult pieces. Instead of aiming at improving her skills, her goal shifted towards spending time playing well-learned, easy pieces in order to receive the award (Deci with Flaste 1995)
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      this is a more troubling example, as playing the harder pieces is also practicing - I would take this as a more complex mechanism at work - perhaps the reinterpretation by the girl that all playing was considered equal, due to the pricing mechanism, in which case the proximal solution would be to pay more for more complex pieces, or for levels of achievement - the question remains of why the extrinsic reward was introduced in the first place (unwillingness to practice as much as her parents wanted?) - which would indicate intrinsic motivation was insufficient in this case
  • Suddenly, she managed to follow the prescription, as her own (intrinsic) motivation was recognized and thereby reinforced.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      or perhaps the key was to help her fit the medication into her day, which she was having trouble with...
  • The introduction of a monetary fine transforms the relationship between parents and teachers from a non-monetary into a monetary one
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      absolutely, in some sense the guilt of being late is replaced by a rationalization that you are paying them - it is still a rationalization, and parents in this case need to be reminded that staff have lives too to reinforce the moral suasion
  • "The effects of external interventions on intrinsic motivation have been attributed to two psychological processes: (a) Impaired self-determination. When individuals perceive an external intervention to reduce their self-determination, they substitute intrinsic motivation by extrinsic control. Following Rotter (1966), the locus of control shifts from the inside to the outside of the person affected. Individuals who are forced to behave in a specific way by outside intervention, feel overjustified if they maintained their intrinsic motivation. (b) Impaired self-esteem. When an intervention from outside carries the notion that the actor's motivation is not acknowledged, his or her intrinsic motivation is effectively rejected. The person affected feels that his or her involvement and competence is not appreciated which debases its value. An intrinsically motivated person is taken away the chance to display his or her own interest and involvement in an activity when someone else offers a reward, or commands, to undertake it. As a result of impaired self-esteem, individuals reduce effort.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      these are finally very useful - so from (a) as long as self determination is maintained (actively) extrinsic reward should not shut down intrinsic motivation AND (b) so long as motivations are recognized and reward dimensions OTHER THAN financial continue to operate, extrinsic reward should not affect intrinsic motivation
  • External interventions crowd-out intrinsic motivation if the individuals affected perceive them to be controlling
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      emphasis on "if" and replacing that with "in so far as"
  • External interventions crowd-in intrinsic motivation if the individuals concerned perceive it as supportive
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      interesting footnote
  • In that case, self-esteem is fostered, and individuals feel that they are given more freedom to act, thus enlarging self-determination
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      so effectively a system needs to ensure it is acting on all dimensions of reward, or at least those most important to the particular participant, ego (pride, recognition, guilt reduction, feeling needed, being helpful, etc), money (sustenance, beyond which it is less potent), meaning/purpose etc.  If one ran experiments controlling for financial self sufficiency, then providing appreciation and recognition as well as the introduced financial reward, they might yield different results
  • cultural categories that oppose marketplace modes of behavior (or “market logics”) with the more family-like modes of behavior of caring and sharing that we observe in close-knit communities (”community logics”)
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      are these learned or intrinsic?
  • this is labor, this is work, just do it.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      except that this cultural meme is already a bias, not a fact
  • When communal logics are in effect, all sorts of norms of reciprocity, sacrifice, and gift-giving come into play: this is cool, this is right, this is fun
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      true, and part of our challenge then is to remove this dichotomy
  • So think about paying a kid to clean up their room, paying parishioners to go to church, paying people in a neighborhood to attend a town hall meeting, paying people to come out and vote. All these examples seem a little strange or forced. Why? Because they mix and match the communal with the market-oriented.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      and perhaps the problem is simply the conversion to money, rather than simply tracking these activities themselves (went to church 50 times this year!, helped 50 orphans get families!) (the latter being more recognition than reward
  • Payment as disincentive. In his interesting book Freakonomics, economist Steven Levitt describes some counterintuitive facts about payment. One of the most interesting is that charging people who do the wrong thing often causes them to do it more, and paying people to do the right thing causes them to do it less.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      and tracking them causes them to conform to cultural expectations
  • You direct people _away_ from any noble purpose you have, and instead towards grubbing for dollars
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      and we are left with the challenge, how to work to purpose but still have our scarce goods needs sufficiently provided for?  it has to be for love AND money
  • When people work for a noble purpose, they are told that their work is highly valued. When people work for $0.75/hour, they are told that their work is very low-valued
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      so pay them highly for highly valued labour, and don't forget to recognize them as well... no?
  • you're going to have to fight your way through labour laws and tax issues all the way to bankruptcy
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      this is a non argument, these are just interacting but separate problems, use ether or bitcoin, change legislation, what have you
  • Market economics. If you have open content, I can copy your content to another wiki, not pay people, and still make money. So by paying contributors, you're pricing yourself out of the market.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      exactly, so use commonsource, they can use it all they want, but they have to flow through benefit (provide attribution, recognition, and any financial reward must be split fairly)
  • You don't have to pay people to do what they want to do anyways. The labour cost for leisure activities is $0. And nobody is going to work on a wiki doing things they don't want to do.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      wow, exploitative in the extreme - no one can afford to do work for free, it cuts into paid work, family time etc.  if they are passionate about something they will do it for free if they cannot get permission to do it for sustenance, but they still need to sustain themselves, and they are making opportunity cost sacrifices, and if you are in turn making money off of this you are an asshole.. go ahead look in the mirror and say "I am an asshole"
  • No fair system. There's simply no fair, automated and auditable way to divvy up the money
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      this is an utter cop out - figure out what is close enough to fair and iterate forward to improve it, wow
  • too complicated to do automatically. But if you have a subjective system -- have a human being evaluate contributions to an article and portion out payments -- it will be subject to constant challenges, endless debates, and a lot of community frustration.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      yes to the human evaluation part, but "it's too complicated" is disingenuous at the least
  • Gaming the system. People are really smart. If there's money to be made, they'll figure out how to game your payment system to get more money than they actually deserve
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      yes indeed, so get your metrics right, and be prepared to adjust them as they are gamed - and ultimately, as financial penalties are to BP, even if some people game the system, can we better the gaming of the capitalist system.. it's a low bar I know
  • They'll be trying to get as much money out of you as possible, and you'll be trying to give as little as you can to them
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      it doesn't have to be this way, unless you think that way already
  • If you can't convince people that working on your project is worth their unpaid time, then there's probably something wrong with your project.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      wow, talk about entrepreneurial taker attitude rationalization
  • People are going to be able to sense that -- it's going to look like a cover-up, something sleazy
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      and getting paid for others free work isn't sleazy, somehow...?
  • Donate.
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      better yet, give yourself a reasonable salary, and give the rest away
  • Thank-you gifts
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      cynical.. here have a shiny bobble you idiot
  • Pay bounties
    • Kurt Laitner
      Kurt Laitner on 17 Jul 15
       
      good way to get people to compete ineffectively instead of cooperating on a solution, the lottery mechanism is evil
  • Kurt Laitner on 17 Jul 15
     
    while good issue are brought up in this article, the solutions offered are myopic and the explanations of the observed effects not satisfying
Tiberius Brastaviceanu

Welcome to the new reputation economy (Wired UK) - 1 views

www.wired.co.uk/...-to-the-new-reputation-economy

economy Reputation paper

shared by Tiberius Brastaviceanu on 02 Oct 12 - No Cached
  • banks take into account your online reputation alongside traditional credit ratings to determine your loan
  • headhunters hire you based on the expertise you've demonstrated on online forums
  • reputation data becomes the window into how we behave, what motivates us, how our peers view us and ultimately whether we can or can't be trusted.
  • ...37 more annotations...
  • But this wealth of data raises an important question -- who owns our reputation? Shouldn't our hard-earned online status be portable? If you're a SuperHost on Airbnb, shouldn't you be able to use that reputation to, say, get a loan, or start selling on Etsy?
  • The difference today is our ability to capture data from across an array of digital services. With every trade we make, comment we leave, person we "friend", spammer we flag or badge we earn, we leave a trail of how well we can or can't be trusted.
  • An aggregated online reputation having a real-world value holds enormous potential
  • peer-to-peer marketplaces, where a high degree of trust is required between strangers; and where a traditional approach based on disjointed information sources is currently inefficient, such as recruiting.
  • opportunity to reinvent the way people found jobs through online reputation
  • "It's not about your credit, but your credibility," King says.
  • At the heart of Movenbank is a concept call CRED.
  • "People are currently underusing their networks and reputation," King says. "I want to help people to understand and build their influence and reputation, and think of it as capital they can put to good use."
  • Social scientists have long been trying to quantify the value of reputation.
  • Using functional magnetic resonance imaging, the researchers monitored brain activity
  • "The implication of our study is that different types of reward are coded by the same currency system." In other words, our brains neurologically compute personal reputation to be as valuable as money.
  • Personal reputation has been a means of making socioeconomic decisions for thousands of years. The difference today is that network technologies are digitally enabling the trust we used to experience face-to-face -- meaning that interactions and exchanges are taking place between total strangers.
  • Trust and reputation become acutely important in peer-to-peer marketplaces such as WhipCar and Airbnb, where members are taking a risk renting out their cars or their homes.
  • When you are trading peer-to-peer, you can't count on traditional credit scores. A different measurement is needed. Reputation fills this gap because it's the ultimate output of how much a community trusts you.
  • Welcome to the reputation economy, where your online history becomes more powerful than your credit history.
  • Presently, reputation data doesn't transfer between verticals.
  • A wave of startups, including Connect.Me, TrustCloud, TrustRank, Legit and WhyTrusted, are trying to solve this problem by designing systems that correlate reputation data. By building a system based on "reputation API" -- a combination of a user's activity, ratings and reviews across sites -- Legit is working to build a service that gives users a score from zero to 100. In trying to create a universal metric for a person's trustworthiness, they are trying to "become the credit system of the sharing economy", says Jeremy Barton, the 27-year-old San Francisco-based cofounder of Legit.
  • trusted to pay on time
  • PeerIndex, Kred and Klout,
  • are measuring social influence, not reputation. "Influence measures your ability to drag someone into action,"
  • "Reputation is an indicator of whether a person is good or bad and, ultimately, are they trustworthy?"
  • Early influence and reputation aggregators will undoubtedly learn by trial and error -- but they will also face the significant challenge of pioneering the use of reputation data in a responsible way. And there's a challenge beyond that: reputation is largely contextual, so it's tricky to transport it to other situations.
  • Many of the ventures starting to make strides in the reputation economy are measuring different dimensions of reputation.
  • reputation is a measure of knowledge
  • a measure of trust
  • a measure of propensity to pay
  • measure of influence
  • Reputation capital is not about combining a selection of different measures into a single number -- people are too nuanced and complex to be distilled into single digits or binary ratings.
  • It's the culmination of many layers of reputation you build in different places that genuinely reflect who you are as a person and figuring out exactly how that carries value in a variety of contexts.
  • The most basic level is verification of your true identity
  • reliability and helpfulness
  • do what we say we are going to do
  • respect another person's property
  • His company, and other reputation ventures, face some big challenges if they are to become, effectively, the PayPal of trust. The most obvious is coming up with algorithms that can't be easily gamed or polluted by trolls. And then there's the critical hurdle of convincing online marketplaces not just to open up their reputation vaults, but create a standardised format for how they frame and collect reputation data. "We think companies will share reputation data for the same reasons banks give credit data to credit bureaux," says Rob Boyle, Legit cofounder and CTO. "It is beneficial for one company to give up their slice of reputation data if in return they get access to the bigger picture: aggregated data from other companies."
  • we will be able to perform a Google- or Facebook-like search and see a picture of a person's behaviour in many different contexts, over a length of time. Slivers of data that have until now lived in secluded isolation online will be available in one place. Answers on Quora, reviews on TripAdvisor, comments on Amazon, feedback on Airbnb, videos posted on YouTube, social groups joined, or presentations on SlideShare; as well as a history and real-time stream of who has trusted you, when, where and why. The whole package will come together in your personal reputation dashboard, painting a comprehensive, definitive picture of your intentions, capabilities and values.
  • idea of global reputation
  • By the end of the decade, a good online reputation could be the most valuable currency in your possession.
Tiberius Brastaviceanu

How Peer to Peer Communities will change the World - 0 views

meedabyte.wordpress.com/...bauwens-p2p-foundation-founder

p2p Michel Bauwens learning paper

shared by Tiberius Brastaviceanu on 30 Sep 11 - No Cached
  • role of p2p movement
  • historical role
  • horizontalisation of human relationships
  • ...55 more annotations...
  • allowing the free aggregation of individuals around shared values or common value creation
  • a huge sociological shift
  • new life forms, social practices and human institutions
  • emergent communities of practice are developing new social practices that are informed by the p2p paradigm
  • ethical revolution
  • openness
  • participation
  • inclusivity
  • cooperation
  • commons
  • the open content industry in the U.S. to reach one sixth of GDP.
  • political expressions
  • the movement has two wings
  • constructive
  • building new tools and practices
  • resistance to neoliberalism
  • we are at a stage of emergence
  • difficulty of implementing full p2p solutions in the current dominant system
  • At this stage, there is a co-dependency between peer producers creating value, and for-profit firms ‘capturing that value’, but they both need each other.
  • Peer producers need a business ecology to insure the social reproduction of their system and financial sustainability of its participants, and capital needs the positive externalities of social cooperation which flow from p2p collaboration.
  • peer producing communities should create their own ‘mission-oriented’ social businesses, so that the surplus value remains with the value creators, i.e. the commoners themselves, but this is hardly happening now.
  • Instead what we see is a mutual accomodation between netarchical capital on one side, and peer production communities on the other.
  • the horizontal meets the vertical
  • mostly hybrid ‘diagonal’ adaptations
  • For peer producers the question becomes, if we cannot create our own fully autonomous institutions, how can we adapt while maintaining maximum autonomy and sustainability as a commons and as a community.
  • Why p2p have failed to create successful alternatives in some areas?
  • In commons-oriented peer production, where people aggegrate around a common object which requires deep cooperation, they usually have their own infrastructures of cooperation and a ecology combining community, a for-benefit association managing the infrastructure, and for-profit companies operating on the market place; in the sharing economy, where individuals merely share their own expressions, third party platforms are the norm. It is clear that for-profit companies have different priorities, and want to enclose value so that it can be sold on the marketplace. This in fact the class struggle of the p2p era, the struggle between communities and corporations around various issues because of partly differential interests.
  • Even commercially controlled platforms are being used for a massive horizontalisation and self-aggregation of human relationships, and communities, including political and radical groups are effectively using them to mobilize. What’s important is not just to focus on the limitations and intentions of the platform owners, but to use whatever we can to strengthen the autonomy of peer communities.
  • requires a clever adaptation
  • use for our own benefit
  • The fact today is that capital is still capable of marshaling vast financial and material resources, so that it can create,
  • platforms that can easily and quickly offer services, creating network effects
  • without network effects, there is no ‘there’ there, just an empty potential platform.
  • p2p activists should work on both fronts
  • using mainstream platforms for spreading their ideas and culture and reach greater numbers of people, while also developing their own autonomous media ecologies, that can operate independently, and the latter is an engagement for the ‘long haul’, i.e. the slow construction of an alternative lifeworld.
  • The commons and p2p are really just different aspects of the same phenomena; the commons is the object that p2p dynamics are building; and p2p takes place wherever there are commons.
  • So both p2p and the commons, as they create abundant (digital) or sufficient (material) value for the commoners, at the same time create opportunities to create added value for the marketplace. There is no domain that is excluded from p2p, no field that can say, “we wouldn’t be stronger by opening up to participation and community dynamics”. And there is no p2p community that can say, we are in the long term fully sustainable within the present system, without extra resources coming from the market sector.
  • One trend is the distribution of current infrastructures and practices, i.e. introducing crowdsourcing, crowdfunding, social lending, digital currencies, in order to achieve wider participation in current practices. That is a good thing, but not sufficient. All the things that I mention above, move to a distributed infrastructure, but do not change the fundamental logic of what they are doing.
  • we are talking about the distribution of capitalism, not about a deeper change in the logic of our economy.
  • No matter how good you are, no matter how much capital you have to hire the best people, you cannot compete with the innovative potential of open global communities.
  • the p2p dynamics
  • the new networked culture
  • the opposite is also happening, as we outlined above, more and more commons-oriented value communities are creating their own entrepreneurial coalitions. Of course, some type of companies, because of their monopoly positions and legacy systems, may have a very difficult time undergoing that adaptation, in which case new players will appear that can do it more effectively.
  • the corporate form is unable to deal with ecological and sustainability issues, because its very DNA, the legal obligation to enrich the shareholders, makes its strive to lower input costs,  and ignore externalities.
  • we need new corporate structures, a new type of market entity, for which profit is a means, but not an end, dedicated to a ‘benefit‘, a ‘mission’, or the sustenance of a particular community and/or commons.
  • abundance destroys scarcity and therefore markets
  • open design community
  • will inherently design for sustainability
  • for inclusion
  • conceive more distributed forms of manufacturing
  • entrepreneurs attaching themselves to open design projects start working from an entirely different space, even if they still use the classic corporate form. Prevent the sharing of sustainability designs through IP monopolies is also in my view unethical and allowing such patents should be a minimalist option, not a maximalist one.
  • The high road scenario proposes an enlightened government that ‘enables and empowers’ social production and value creation and allows a much smoother transition to p2p models; the low road scenario is one in which no structural reforms take place, the global situation descends into various forms of chaos, and p2p becomes a survival and resilience tactic in extremely difficult social, political and economic circumstances.
  • accelerated end of capitalism
  • Making sure that we get a better alternative is actually the historical task of the p2p movement. In other words, it depends on us!
  • I don’t really think in terms of technological breakthroughs, because the essential one, globally networked collective intelligence enabled by the internetworks, is already behind us; that is the major change, all other technological breakthroughs will be informed by this new social reality of the horizontalisation of our civilisation. The important thing now is to defend and extend our communication and organisation rights, against a concerted attempt to turn back the clock. While the latter is really an impossibility, this does not mean that the attempts by governments and large corporations cannot create great harm and difficulties. We need p2p technology to enable the global solution finding and implementation of the systemic crises we are facing.
Tiberius Brastaviceanu

If not Global Captalism - then What? - 0 views

www.moq.org/...ifnotglobal.html

paper nondominium Chris Cook

shared by Tiberius Brastaviceanu on 02 Jun 11 - Cached
  • I posit an optimistic view of the potential for Society from the emergence of a new and “Open” form of Capitalism.
  • Open Capital
  • the concept of “Open” Capital is “so simple…. it repels the mind".
  • ...162 more annotations...
  • Open Capital is defined as “a proportional share in an enterprise for an indeterminate time”
  • ‘Enterprise’ is defined as ‘any entity within which two or more individuals create, accumulate or exchange Value”.
  • Value is to Economics as Energy and Matter are to Physics.
  • The Metaphysics Of Value
  • division between “subject” and “object”.
  • primary reality is “Quality”
  • formless and indefinable
  • not a “thing”
  • a non-intellectual awareness or “pre-intellectual reality”
  • but an event at which the subject becomes aware of the object and before he distinguishes it
  • Quality is the basis of both subject and object
  • distinguish between “Static” and “Dynamic” Quality
  • treating Value as a form of “Quality” as envisioned by Pirsig.
  • Riegel
  • defined “Value” as “ the Relativity of Desire” again implying indeterminacy.
  • Pirsig’s approach Capital may be viewed as “Static” Value and Money as “Dynamic” Value. “Transactions” are the “events” at which individuals (Subjects) interact with each other or with Capital (both as Objects) to create forms of Value and at which “Value judgments” are made based upon a “Value Unit”.
  • The result of these Value Events /Transactions is to create subject/object pairings in the form of data ie Who “owns” or has rights of use in What,
  • at what Price
  • accounting data
  • Neo-Classical” Economics confuses indeterminate Value with a market– determined Price –
  • Data may be static
  • This Data identifies the subject with objects such as tangible ‘Material Value’
  • Data may itself constitute ‘Intellectual Value’
  • It, too, may then be defined in a subject/object pairing through the concept of “intellectual property”.
  • Other forms of Value are however not definable by data:
  • “sentimental” Value
  • Emotional Value’
  • 'Spiritual Value’
  • We may therefore look at the “transaction” or “value event” in a new light.
  • The creation and circulation of Value essentially comprises the concept we know of as “Money”.
  • Money / Dynamic Value
  • “The purpose of money is to facilitate barter by splitting the transaction into two parts, the acceptor of money reserving the power to requisition value from any trader at any time
  • money
  • value unit dissociated from any object
  • monetary unit
  • the basis relative to which other values may be expressed
  • The monetary process is a dynamic one involving the creation and recording of obligations as between individuals and the later fulfilment of these obligations
  • The monetary “Value Event”/ Transaction involves the creation of “Credit”
  • obligation to provide something of equivalent Value at a future point in time.
  • These obligations may be recorded on transferable documents
  • database of “Credit”/obligations is not Money, but temporary “Capital”
  • “Working Capital”
  • Static Value – which only becomes “Money”/ Dynamic Value when exchanged in the transitory Monetary process.
  • what we think of as Money is in fact not tangible “cash” but rather
  • the flow of data between databases of obligations maintained by Credit Institutions
  • or dynamic
  • Banks literally “loan” Money into existence
  • In exchange for an obligation by an Individual to provide to the Bank something of Value
  • Bank’s obligation is merely to provide another obligation at some future time
  • These Bank-issued obligations are therefore
  • claim upon a claim upon Value
  • The true source of Credit is the Individual, not the intermediary Bank
  • this Money they create from nothing despite the fact that it is literally Value-less
  • Thus there is no true sharing of Risk and Reward involved in Lending
  • issue in relation to Credit/Debt and this relates to the nature of Lending itself.
  • the practice of Lending involves an incomplete exchange in terms of risk and reward: a Lender, as opposed to an Investor, has no interest in the outcome of the Loan, and requires the repayment of Principal no matter the ability of the Borrower to repay.
  • Ethical problem
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 02 Jun 11
       
      "The Lender has no interest in the outcome of the loan", i.e doesn't care what happens in the end. The Lender ins not interested in the economical outcome of the Lender-Loner relation. So in fact there is no real risk sharing. the only risk for the Lender is when the Loner doesn't pay back, which is not really a risk... In fact it is a risk for the small bank, who has to buy money from the central bank, but not for the central bank. 
  • Money is not
  • an “Object” circulating but rather a dynamic process of Value creation and exchange by reference to a “Value Unit”.
  • Capital/ Static Value
  • Capital represents the static accumulation of Value
  • Some forms of Capital are “productive”
  • An ethical question
  • in relation to Productive Capital relates to the extent of “property rights” which may be held over it thereby allowing individuals to assert “absolute” permanent and exclusive ownership - in particular in relation to Land
  • our current financial system is based not upon Value but rather a claim upon Value
  • Financial Capital consists of two types:
  • “Debt”
  • “Equity”
  • Interest
  • obligations of finite/temporary duration but with no participation in the assets or revenues
  • absolute and permanent ownership/participation (without obligation) in assets and revenues
  • discontinuity between Debt and Equity
  • at the heart of our current problems as a Society
  • The Enterprise
  • ‘Charitable’ Enterprise
  • ‘Social’ Enterprise
  • Value
  • exchanged in agreed proportions;
  • Value is exchanged for the Spiritual and Emotional Value
  • ‘Commercial’ Enterprise
  • ‘closed’
  • Value are exchanged between a limited number of individuals
  • Early enterprises were partnerships and unincorporated associations
  • need for institutions which outlived the lives of the Members led to the development of the Corporate body with a legal existence independent of its Members
  • The key development in the history of Capitalism was the creation of the ‘Joint Stock’ Corporate with liability limited by shares of a ‘Nominal’ or ‘Par’ value
  • over the next 150 years the Limited Liability Corporate evolved into the Public Limited Liability Corporate
  • Such “Closed” Shares of “fixed” value constitute an absolute and permanent claim over the assets and revenues of the Enterprise to the exclusion of all other “stakeholders” such as Suppliers, Customers, Staff, and Debt Financiers.
  • The latter are essentially ‘costs’ external to the
  • owners of the Enterprise
  • maximise ‘Shareholder Value’
  • There is a discontinuity/ fault-line within the ‘Closed’ Corporate
  • It has the characteristics of what biologists call a ‘semi-permeable membrane’ in the way that it allows Economic Value to be extracted from other stakeholders but not to pass the other way.
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 02 Jun 11
       
      It is a way to extract value from productive systems. It is a system of exploitation. 
  • Capital most certainly is and always has been - through the discontinuity (see diagram) between:‘Fixed’ Capital in the form of shares ie Equity; and ‘Working’ Capital in the form of debt finance, credit from suppliers, pre-payments by customers and obligations to staff and management.
  • irreconcilable conflict between Equity and Debt
  • xchange of Economic Value in a Closed Corporate is made difficult and true sharing of Risk and Reward is simply not possible
  • No Enterprise Model has been capable of resolving this dilemma. Until now.
  • Corporate Partnerships with unlimited liability
  • mandatory for partnerships with more than 20 partners to be incorporated
  • in the USA
  • it is the normal structure for professional partnerships
  • Limited Liability Partnerships
  • In the late 1990's
  • litigation
  • The UK LLP is supremely simple and remarkably flexible.
  • All that is needed is a simple ‘Member Agreement’ – a legal protocol which sets out the Aims, Objectives. Principles of Governance, Revenue Sharing, Dispute Resolution, Transparency and any other matters that Members agree should be included. Amazingly enough, this Agreement need not even be in writing, since in the absence of a written agreement Partnership Law is applied by way of default.
  • The ease of use and total flexibility enables the UK LLP to be utilised in a way never intended – as an ‘Open’ Corporate partnership.
  • ‘Open’ Corporate Partnership
  • concepts which characterise the ‘Open’ Corporate Partnership
  • it is now possible for any stakeholder to become a Member of a UK LLP simply through signing a suitably drafted Member Agreement
  • ‘Open’
  • supplier
  • employee
  • may instead become true Partners in the Enterprise with their interests aligned with other stakeholders.
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 02 Jun 11
       
      Can SENSORICA be a UK LLP?
  • no profit or loss in an Open Corporate Partnership, merely Value creation and exchange between members in conformance with the Member Agreement.
  • Proportional shares
  • in an Enterprise constitute an infinitely divisible, flexible and scaleable form of Capital capable of distributing or accumulating Value organically as the Enterprise itself grows in Value or chooses to distribute it.
  • Emergence of “Open” Capital
  • example of how ‘Temporary Equity’ may operate in practice
  • The Open Capital Partnership (“OCP”)
  • Within the OCP Capital and Revenue are continuous: to the extent that an Investee pays Rental in advance of the due date he becomes an Investor.
  • Open Capital – a new Asset Class
  • create a new asset class of proportional “shares”/partnership interests
  • in Capital holding OCP’s
  • Property Investment Partnerships (“PIP’s”)
  • Open Corporate Partnerships as a Co-operative Enterprise model
  • A Co-operative is not an enterprise structure: it is a set of Principles that may be applied to different types of enterprise structure.
  • Within a Partnership there is no “Profit” and no “Loss”.
  • Partnerships
  • mutual pursuit of the creation and exchange of Value
  • Partners do not compete with each othe
  • the crippling factors in practical terms have been, inter alia: the liability to which Member partners are exposed from the actions of their co-partners on their behalf; limited ability to raise capital.
  • they favour the interests of other stakeholders, are relatively restricted in accessing investment; are arguably deficient in incentivising innovation.
  • The ‘new’ LLP was expressly created to solve the former problem by limiting the liability of Member partners to those assets which they choose to place within its protective ‘semi-permeable membrane’
  • However, the ability to configure the LLP as an “Open” Corporate permits a new and superior form of Enterprise.
  • it is possible to re-organise any existing enterprise as either a partnership or as a partnership of partnerships.
  • the revenues
  • would be divided among Members in accordance with the LLP Agreement. This means that all Members share a common interest in collaborating/co-operating to maximise the Value generated by the LLP collectively as opposed to competing with other stakeholders to maximise their individual share at the other stakeholders’ expense.
  • facilitate the creation of LLP’s as “Co-operatives of Co-operatives”.
  • he ‘Commercial’ Enterprise LLP – where the object is for a closed group of individuals to maximise the value generated in their partnership. There are already over 7,000 of these.
    • Tiberius Brastaviceanu
      Tiberius Brastaviceanu on 02 Jun 11
       
      Can SENSORICA be one of these?
  • the Profit generated in a competitive economy based upon shareholder value and unsustainable growth results from a transfer of risks outwards, and the transfer of reward inwards, leading to a one way transfer of Economic Value.
  • This,
  • will very often impoverish one or more constituency of stakeholders
  • A partnership, however, involves an exchange of value through the sharing of risk and reward.
  • Whether its assets are protected within a corporate entity with limited liability or not, it will always operate co-operatively – for mutual profit.
  • Open Capital, Economics and Politics
  • continuity between Capital as Static Value and Money as Dynamic Value which has never before been possible due to the dichotomy between the absolute/infinite and the absolute/finite durations of the competing claims over assets – “Equity” and “Debt”
  • Open Capital Partnership gives rise to a new form of Financial Capital of indeterminate duration. It enables the Capitalisation of assets and the monetisation of revenue streams in an entirely new way.
  • It is possible to envisage a Society within which individuals are members of a portfolio of Enterprises constituted as partnerships, whether limited in liability or otherwise.
  • Some will be charitable
  • Others will be ‘social’
  • ‘Commercial’ enterprises of all kinds aimed at co-operatively working together to maximise value for the Members.
  • the process has already begun
  • Capitalism
  • superior
  • to all other models, such as Socialism.
  • It can only be replaced by another ‘emergent’ phenomenon, which is adopted ‘virally’ because any Enterprise which does not utilise it will be at a disadvantage to an Enterprise which does.
  • The ‘Open’ Corporate Partnership is: capable of linking any individuals anywhere in respect of collective ownership of assets anywhere; extremely cheap and simple to operate; and because one LLP may be a Member of another it is organically flexible and ‘scaleable’. The phenomenon of “Open Capital” – which is already visible in the form of significant commercial transactions - enables an extremely simple and continuous relationship between those who wish to participate indefinitely in an Enterprise and those who wish to participate for a defined period of time.
  • Moreover, the infinitely divisible proportionate “shares” which constitute ‘Open’ Capital allow stakeholder interests to grow flexibly and organically with the growth in Value of the Enterprise. In legal terms, the LLP agreement is essentially consensual and ‘pre-distributive’: it is demonstrably superior to prescriptive complex contractual relationships negotiated adversarially and subject to subsequent re-distributive legal action. Above all, the ‘Open’ Corporate Partnership is a Co-operative phenomenon which is capable, the author believes, of unleashing the “Co-operative Advantage” based upon the absence of a requirement to pay returns to “rentier” Capitalists.
Kurt Laitner

The Link Economy and Creditright - Geeks Bearing Gifts - Medium - 3 views

medium.com/...y-and-creditright-95f938b503be

contributory value accounting dimVal *jeffjarvis creditright

shared by Kurt Laitner on 07 May 15 - No Cached
  • Online, content with no links has no value because it has no audience
  • News Commons used Repost as the basis of a content- and audience-sharing network among dozens of sites big and small in the state’s new ecosystem
  • Huffington Post and Twitter can get thousands of writers — including me — to make content for free because it brings us audience and attention.
  • ...25 more annotations...
  • Consider an alternative to syndication. I’ll call it reverse syndication. Instead of selling my content to you, what say I give it to you for free? Better yet, I pay you to publish it on your site. The condition: I get to put my ad on the content. I will pay you a share of what I earn from that ad based on how much audience you bring me.
  • That model values the creation of the audience
  • If content could travel with its business model attached, we could set it free to travel across the web, gathering recommendations and audience and value as it goes
  • She searched Google for “embeddable article” and up came Repost.us, already created by entrepreneur and technologist John Pettitt. Repost very cleverly allowed embeddable articles to travel with the creator’s own brand, advertising, analytics, and links.
  • First, he found that the overlap in audience between a creator’s and an embedder’s sites generally ran between 2 and 5 percent. That is to say, the embedders brought a mostly new audience to the creator’s content.
  • Instead, Pettitt found that click-through ran amazingly high: 5 to 7 percent — and these were highly qualified clicks of people who knew what they were going to get on the other side of a link
  • I call this creditright. We need a means to attach credit to content for those who contribute value to it so that each constituent has the opportunity to negotiate and extract value along the chain, so that each can gain permission to take part in the chain, and so that behaviors that benefit others in the chain can be rewarded and encouraged
    • Kurt Laitner
      Kurt Laitner on 07 May 15
       
      so *net basically, or OVN contributory value accounting
  • Each creator’s ads traveled with its content — though that wasn’t necessarily optimal, because an ad for a North Jersey hairdresser wouldn’t perform terribly well with South Jersey readers brought in through embedding.
  • key factor in its failure: Repost could find many sites willing and eager to make their content embeddable. It didn’t find enough sites to embed the content.
  • But the embedders got nothing aside from the free use of content — content that was just a link away anyway
  • Our ultimate problem in media is that we do not have sufficient technical and legal frameworks for alternate business models.
  • That formula was the key insight behind Google: that links to content are a signal of its value; thus, the more links to a page from sites that themselves have more links, the more useful, relevant, or valuable that content is likely to be
  • Silicon Valley’s: Those people are your fans who are bringing value to you by sending you audiences and by contributing their creativity, and you’d be wise to build your businesses around making it easier, not harder, for them to get and share your content when and how they want it.
  • And so, we came to agree that we need new technological and legal frameworks flexible enough to enable multiple models to support creativity.
  • Hollywood’s side: People who download our content without buying it or who remix it without our permission — and the platforms that facilitate these behaviors — are stealing from us and must be stopped and punished.
  • Imagine you are a songwriter. You hear a street poet and her words inspire you to write a song about her, quoting her in the piece. You go to a crowdfunding platform — Kickstarter, Indiegogo, or Patreon — to raise money for you to go into the studio and perform and distribute your song. Another songwriter comes along and remixes it, making a new version and also sampling from others’ songs. Both end up on YouTube and Soundcloud, on iTunes and Google Play. Audience members discover and share the songs. A particularly popular artist shares the remixed version on Twitter and Facebook and it explodes. A label has one of its stars record it. The star appears on TV performing it. A movie studio includes that song in a soundtrack. There are many constituents in that process: the subject, the songwriter, the patrons, the fans, the remixer, the distributor, the label, the star, the show, the studio, and the platforms. Each contributed value.
  • Each may want to recognize value — but not all will want cash. There are other currencies in play: The poet may want credit and fame; the songwriter may want to sell concert tickets; the patrons may want social capital for discovering and supporting a new artist; the remixer may want permission to remix; the platforms may want a cut of sales or of subscription revenue; the show may want audience and advertising; the studio will want a return on its investment and risk.
  • I’ve suggested they would be wiser to seek another currency from Google: data about the users, helping build better services for readers and advertisers and thus better businesses
  • We will need a way to attach metadata to content, recording and revealing its source and the contributions of others in the chain of continuing creation and distribution.
  • We need a marketplace to measure and value their contributions and a means to negotiate rewards and permissions
  • We need payment structures to handle multiple currencies: data as well as money
  • And we need a legal framework to allow the flexible exploration of new models, some of which we cannot yet imagine.
  • It took many more years for society to develop principles of free speech to balance the economic and political interests of those who would attempt to control a new tool of speech.
  • We must reimagine the business of media and news from the first penny, asking where value is created, who contributes to it, where it resides, and how to extract it
  • Thus, we need new measures of value
Kurt Laitner

Smart Contracts - 0 views

www.alamut.com/...smartContracts.html

smart contract cryptography paper

shared by Kurt Laitner on 21 Mar 13 - No Cached
  • Whether enforced by a government, or otherwise, the contract is the basic building block of a free market economy.
  • A smart contract is a set of promises, specified in digital form, including protocols within which the parties perform on the other promises.
  • The basic idea of smart contracts is that many kinds of contractual clauses (such as liens, bonding, delineation of property rights, etc.) can be embedded in the hardware and software we deal with, in such a way as to make breach of contract expensive (if desired, sometimes prohibitively so) for the breacher.
  • ...77 more annotations...
  • A broad statement of the key idea of smart contracts, then, is to say that contracts should be embedded in the world.
  • And where the vending machine, like electronic mail, implements an asynchronous protocol between the vending company and the customer, some smart contracts entail multiple synchronous steps between two or more parties
  • POS (Point of Sale)
  • EDI (Electronic Data Interchange
  • SWIFT
  • allocation of public network bandwidth via automated auctions
  • Smart contracts reference that property in a dynamic, proactively enforced form, and provide much better observation and verification where proactive measures must fall short.
  • The mechanisms of the world should be structured in such a way as to make the contracts (a) robust against naive vandalism, and (b) robust against sophisticated, incentive compatible (rational) breach.
  • A third category, (c) sophisticated vandalism (where the vandals can and are willing to sacrifice substantial resources), for example a military attack by third parties, is of a special and difficult kind that doesn't often arise in typical contracting, so that we can place it in a separate category and ignore it here.
  • The threat of physical force is an obvious way to embed a contract in the world -- have a judicial system decide what physical steps are to be taken out by an enforcement agency (including arrest, confiscation of property, etc.) in response to a breach of contract
  • It is what I call a reactive form of security.
  • The need to invoke reactive security can be minimized, but not eliminated, by making contractual arrangements verifiable
  • Observation of a contract in progress, in order to detect the first sign of breach and minimize losses, also is a reactive form of security
  • A proactive form of security is a physical mechanism that makes breach expensive
  • From common law, economic theory, and contractual conditions often found in practice, we can distill four basic objectives of contract design
  • observability
  • The disciplines of auditing and investigation roughly correspond with verification of contract performance
  • verifiability
  • The field of accounting is, roughly speaking, primarily concerned with making contracts an organization is involved in more observable
  • privity
  • This is a generalization of the common law principle of contract privity, which states that third parties, other than the designated arbitrators and intermediaries, should have no say in the enforcement of a contract
  • The field of security (especially, for smart contracts, computer and network security), roughly corresponds to the goal of privity.
  • enforceability
  • Reputation, built-in incentives, "self-enforcing" protocols, and verifiability can all play a strong part in meeting the fourth objective
  • Smart contracts often involve trusted third parties, exemplified by an intermediary, who is involved in the performance, and an arbitrator, who is invoked to resolve disputes arising out of performance (or lack thereof)
  • In smart contract design we want to get the most out of intermediaries and arbitrators, while minimizing exposure to them
  • Legal barriers are the most severe cost of doing business across many jurisdictions. Smart contracts can cut through this Gordian knot of jurisdictions
  • Where smart contracts can increase privity, they can decrease vulnerability to capricious jurisdictions
  • Secret sharing
  • The field of Electronic Data Interchange (EDI), in which elements of traditional business transactions (invoices, receipts, etc.) are exchanged electronically, sometimes including encryption and digital signature capabilities, can be viewed as a primitive forerunner to smart contracts
  • One important task of smart contracts, that has been largely overlooked by traditional EDI, is critical to "the meeting of the minds" that is at the heart of a contract: communicating the semantics of the protocols to the parties involved
  • There is ample opportunity in smart contracts for "smart fine print": actions taken by the software hidden from a party to the transaction.
  • Thus, via hidden action of the software, the customer is giving away information they might consider valuable or confidential, but the contract has been drafted, and transaction has been designed, in such a way as to hide those important parts of that transaction from the customer.
  • To properly communicate transaction semantics, we need good visual metaphors for the elements of the contract. These would hide the details of the protocol without surrendering control over the knowledge and execution of contract terms
  • Protocols based on mathematics, called cryptographic protocols, tre the basic building blocks that implement the improved tradeoffs between observability, verifiability, privity, and enforceability in smart contracts
  • secret key cryptography,
  • Public key cryptography
  • digital signatures
  • blind signature
  • Where smart contracts can increase observability or verifiability, they can decrease dependence on these obscure local legal codes and enforcement traditions
  • zero-knowledge interactive proof
  • digital mix
  • Keys are not necessarily tied to identities, and the task of doing such binding turns out to be more difficult than at first glance.
  • All public key operation are are done inside an unreadable hardware board on a machine with a very narrow serial-line connection (ie, it carries only a simple single-use protocol with well-verified security) to a dedicated firewall. Such a board is available, for example, from Kryptor, and I believe Viacrypt may also have a PGP-compatable board. This is economical for central sites, but may be less practical for normal users. Besides better security, it has the added advantage that hardware speeds up the public key computations.
  • If Mallet's capability is to physically sieze the machine, a weaker form of key protection will suffice. The trick is to hold the keys in volatile memory.
  • The data is still vulnerable to a "rubber hose attack" where the owner is coerced into revealing the hidden keys. Protection against rubber hose attacks might require some form of Shamir secret sharing which splits the keys between diverse phgsical sites.
  • How does Alice know she has Bob's key? Who, indeed, can be the parties to a smart contract? Can they be defined just by their keys? Do we need biometrics (such as autographs, typed-in passwords, retina scans, etc.)?
  • The public key cryptography software package "Pretty Good Privacy" (PGP) uses a model called "the web of trust". Alice chooses introducers whom she trusts to properly identify the map between other people and their public keys. PGP takes it from there, automatically validating any other keys that have been signed by Alice's designated introducers.
  • 1) Does the key actually belong to whom it appears to belong? In other words, has it been certified with a trusted signature?
  • 2) Does it belong to an introducers, someone you can trust to certify other keys?
  • 3) Does the key belong to someone you can trust to introduce other introducers? PGP confuses this with criterion (2). It is not clear that any single person has enough judgement to properly undertake task (3), nor has a reasonable institution been proposed that will do so. This is one of the unsolved problems in smart contracts.
  • PGP also can be given trust ratings and programmed to compute a weighted score of validity-- for example, two marginally trusted signatures might be considered as credible as one fully trusted signature
  • Notaries Public Two different acts are often called "notarization". The first is simply where one swears to the truth of some affidavit before a notary or some other officer entitled to take oaths. This does not require the notary to know who the affiant is. The second act is when someone "acknowledges" before a notary that he has executed a document as ``his own act and deed.'' This second act requires the notary to know the person making the acknowledgment.
  • "Identity" is hardly the only thing we might want map to a key. After all, physical keys we use for our house, car, etc. are not necessarily tied to our identity -- we can loan them to trusted friends and relatives, make copies of them, etc. Indeed, in cyberspace we might create "virtual personae" to reflect such multi-person relationships, or in contrast to reflect different parts of our personality that we do not want others to link. Here is a possible classification scheme for virtual personae, pedagogically presented:
  • A nym is an identifier that links only a small amount of related information about a person, usually that information deemed by the nym holder to be relevant to a particular organization or community
  • A nym may gain reputation within its community.
  • With Chaumian credentials, a nym can take advantage of the positive credentials of the holder's other nyms, as provably linked by the is-a-person credential
  • A true name is an identifier that links many different kinds of information about an person, such as a full birth name or social security number
  • As in magick, knowing a true name can confer tremendous power to one's enemies
  • A persona is any perstient pattern of behavior, along with consistently grouped information such as key(s), name(s), network address(es), writing style, and services provided
  • A reputable name is a nym or true name that has a good reputation, usually because it carries many positive credentials, has a good credit rating, or is otherwise highly regarded
  • Reputable names can be difficult to transfer between parties, because reputation assumes persistence of behavior, but such transfer can sometimes occur (for example, the sale of brand names between companies).
  • Blind signatures can be used to construct digital bearer instruments, objects identified by a unique key, and issued, cleared, and redeemed by a clearing agent.
  • The clearing agent prevents multiple clearing of particular objects, but can be prevented from linking particular objects one or both of the clearing nyms who transferred that object
  • These instruments come in an "online" variety, cleared during every transfer, and thus both verifiable and observable, and an "offline" variety, which can be transfered without being cleared, but is only verifiable when finally cleared, by revealing any the clearing nym of any intermediate holder who transfered the object multiple times (a breach of contract).
  • To implement a full transaction of payment for services, we need more than just the digital cash protocol; we need a protocol that guarantees that service will be rendered if payment is made, and vice versa
  • A credential is a claim made by one party about another. A positive credential is one the second party would prefer to reveal, such as a degree from a prestigious school, while that party would prefer not to reveal a negative credential such as a bad credit rating.
  • A Chaumian credential is a cryptographic protocol for proving one possesses claims made about onself by other nyms, without revealing linkages between those nyms. It's based around the is-a-person credential the true name credential, used to prove the linkage of otherwise unlinkable nyms, and to prevent the transfer of nyms between parties.
  • Another form of credential is bearer credential, a digital bearer instrument where the object is a credential. Here the second party in the claim refers to any bearer -- the claim is tied only to the reputable name of issuing organization, not to the nym or true name of the party holding the credential.
  • Smart Property We can extend the concept of smart contracts to property. Smart property might be created by embedding smart contracts in physical objects. These embedded protocols would automatically give control of the keys for operating the property to the party who rightfully owns that property, based on the terms of the contract. For example, a car might be rendered inoperable unless the proper challenge-response protocol is completed with its rightful owner, preventing theft. If a loan was taken out to buy that car, and the owner failed to make payments, the smart contract could automatically invoke a lien, which returns control of the car keys to the bank. This "smart lien" might be much cheaper and more effective than a repo man. Also needed is a protocol to provably remove the lien when the loan has been paid off, as well as hardship and operational exceptions. For example, it would be rude to revoke operation of the car while it's doing 75 down the freeway.
  • Smart property is software or physical devices with the desired characteristics of ownership embedded into them; for example devices that can be rendered of far less value to parties who lack possesion of a key, as demonstrated via a zero knowledge interactive proof
  • One method of implementing smart property is thru operation necessary data (OND): data necessary to the operation of smart property.
  • A smart lien is the sharing of a smart property between parties, usually two parties called the owner and the lienholder.
  • Many parties, especially new entrants, may lack this reputation capital, and will thus need to be able to share their property with the bank via secure liens
  • What about extending the concept of contract to cover agreement to a prearranged set of tort laws? These tort laws would be defined by contracts between private arbitration and enforcement agencies, while customers would have a choice of jurisdictions in this system of free-market "governments".
  • If these privately practiced law organizations (PPLs for short) bear ultimate responsibility for the criminal activities of their customers, or need to insure lack of defection or future payments on the part of customers, they may in turn ask for liens against their customers, either in with contractual terms allowing arrest of customers under certain conditions
  • Other important areas of liability include consumer liability and property damage (including pollution). There need to mechanisms so that, for example, pollution damage to others' persons or property can be assessed, and liens should exist so that the polluter can be properly charged and the victims paid. Where pollution is quantifiable, as with SO2 emissions, markets can be set up to trade emission rights. The PPLs would have liens in place to monitor their customer's emissions and assess fees where emission rights have been exceeded.
Steve Bosserman

The Hollowing Out - NYTimes.com - 0 views

campaignstops.blogs.nytimes.com/...the-future-of-joblessness

jobless_recovery technology_development time_investment

shared by Steve Bosserman on 10 Jul 12 - No Cached
  • Steve Bosserman on 10 Jul 12
     
    McAfee and Brynjolfsson argue that in a race against machines, humans will lose. In their view, "the key to winning the race is not to compete against machines but to compete with machines." The question, then, will be whether humans can adapt at anywhere near the pace needed to keep up.
Kurt Laitner

The Revolution at hand - Op-Ed - Domus - 0 views

www.domusweb.it/...the-revolution-at-hand

manifesto Simone Cicero p2p design IPR analysis paper

shared by Kurt Laitner on 26 Jun 12 - No Cached
  • Currently, our education prepares us to perform a job — at times any job — that pays us in terms of what we can possess and consume or, in other words, the goods that design and mass production consider to be to our satisfaction — at least partially.
  • We have produced artificial needs for years under this mantra
  • creating almost nonexistent necessities that are readily available and easy to narrate rather than investigating the problems and real needs of people and communities
  • ...13 more annotations...
  • the need for large-scale production is disappearing due to the crystalline democratization of the means of production
  • Mediocrity is obsolete
  • Money has become absurdly limited
  • unable to model the exchanges that serve to give way to a new mode of radically inclusive and more equitable cooperative production
  • design becomes a political tool
  • Innovation and meaning have been restricted, trapped and suffocated by mechanisms of protection, monopolies, patents and copyrights.
  • If you're lucky you will have patrons, not customers. Customers barely exist in the creative world now.
  • Production will occur only when there is a demand — and not a moment before
  • We need a new cultural infrastructure
  • A new distributed network of places of cultural and tangible production must be affirmed. The network will stem from fablabs, makerspaces and hackerspaces — the new factories — around the world, or from ambitious projects like the Italian Bottega 21: initiatives that unite the existing cultural heritage of places and traditions with currently available technologies
  • design itself must be independent from specific materials
  • We will teach students to investigate, discover and create work, products and services that the community needs, rather than merely follow any old curriculum while waiting for a "phantom" labour market to claim them
  • "The question we have to begin to ask ourselves is not 'how do we employ all the people who are rendered obsolete by technology', but 'how can we organize a society around something other than employment?'
Tiberius Brastaviceanu

How The Blockchain Will Transform Everything From Banking To Government To Our Identities - 1 views

www.forbes.com/...o-government-to-our-identities

blockchainaccess_project paper

shared by Tiberius Brastaviceanu on 03 Jun 16 - No Cached
  • The first generation of the Internet was a great tool for communicating, collaborating and connecting online, but it was not ideal for business. When you send and share information on the Internet, you’re not sending an original but a copy. That’s good for information — it means people have a printing press for information and that information becomes democratized — but if you want to send an asset, it’s a problem. If I send you $100 online, you need to be sure you have it and I don’t, and that I can’t spend the same $100 somewhere else. As a result, we need intermediaries to perform critical roles — to establish identity between two parties in a transaction, and to do all the settlement transaction logic, which includes record-keeping.
  • With blockchain, for the first time, we have a new digital medium for value where anyone can access anything of value — stocks, bonds, money, digital property, titles, deeds — and even things like identity and votes can be moved, stored and managed securely and privately. Trust is not established though a third party but with clever code and mass consensus using a network. That’s got huge implications for intermediaries and businesses and society at large
  • And also with government, as a central repository of information an entity that delivers services.
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  • There’s an opportunity to disrupt how those organizations work. Intermediaries, though they do a good job, have a few problems — they’re centralized, which makes them vulnerable to attack or failure
  • They tax the system
  • They capture data
  • They exclude billions of people from the global economy
  • internet of value
  • With blockchain, we can go from redistributing wealth to distributing value and opportunity value fairly a priori, from cradle to grave.
  • creating a true sharing economy by replacing service aggregators like Uber with distributed applications on the blockchain
  • unleashing a new age of entrepreneurship
  • build accountable governments through transparency, smart contracts and revitalized models of democracy.
  • The virtual you is owned by large intermediaries
  • This virtual you knows more about you than you do sometimes
  • So there’s a strange phenomenon from the first generation of the Internet where the most important asset class that’s been created is data —and we don’t control it or own it.
  • individuals taking back their identity through your own personal avatar
  • The financial services industry
  • antiquated
  • a complicated machine that does a simple thing
  • settlement
  • an opportunity to profoundly change the nature of the entire industry. The Starbucks transaction should be instant.
  • At the heart of it, the financial services industry moves value.
  • so this is both an existential threat to the financial services industry and an historic opportunity.
  • Banks trade on trust
  • Within the decade, every single financial asset, which is really just a contract
  • will all move to a blockchain-based format
  • In the accounting world, a lot of firms rely on costly audits to drive their profits
  • With blockchain, you could have a third entry time-stamped in a distributed ledger that could be acceptable to any relevant stakeholders from regulators to shareholders, giving you a perfect record of the truth and thus the financial health of an organization.
  • Nobel-winning economist Ronald Coase argued that firms exist because transaction costs in an open market are greater than the cost of doing things inside the boundaries of the corporation.
  • four costs — of search, coordination, contracting and establishing trust
  • Blockchains will profoundly affect all of these.
  • you can now synthesize trust on an open platform and people who’ve never met can trust each other to do certain things. So this results in a whole number of new business models
  • It turns out the Internet of Everything needs a Ledger of Everything, because a lightbulb buying power from your neighbor’s solar panel definitely won’t use banks or the Visa network
  • Right now, governments take tax revenue from corporations, individuals, licenses and so on. All of that can change. We can first of all have transparency in a radical sense because sunlight is the best disinfectant. Secondly, we can open up governments in a different sense of sharing data.
  • governments can enable self-organization to occur in society where companies, civil society organizations, NGOs, academics, foundations, and government agencies and individual citizens ought to use this data to self-organize and create what we used to call services or forms of public value. The third one has to do with the relationship between citizens and their governments.
  • There are more opportunities to create government by the people for the people
  • Electronic voting won’t be delivered by traditional server technology because it won’t be trusted by citizens
Tiberius Brastaviceanu

Key (lock) - Wikipedia, the free encyclopedia - 0 views

en.wikipedia.org/Key_(lock)

blockchainaccess_project paper access

shared by Tiberius Brastaviceanu on 09 Jun 16 - No Cached
  • Key systems
  • Individually keyed system (KD)[edit] With an individually keyed system, each cylinder can be opened by its unique key
  • Keyed alike (KA)[edit] This system allows for a number of cylinders to be operated by the same key. It is ideally suited to residential and commercial applications such as front and back doors.
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  • Common entrance suite / Maison keying (CES)[edit] This system is widely used in apartments, office blocks and hotels. Each apartment (for example) has its own individual key which will not open the doors to any other apartments, but will open common entrance doors and communal service areas. It is often combined with a master-keyed system in which the key is kept by the landlord.
  • Master keyed (MK)
  • A master key operates a set of several locks. Usually, there is nothing special about the key itself, but rather the locks into which it will fit.
  • A practical attack exists to create a working master key for an entire system given only access to a single master-keyed lock, its associated change key, a supply of appropriate key blanks, and the ability to cut new keys. This is described in Cryptology and Physical Security: Rights Amplification in Master-Keyed Mechanical Locks.[36] However, for systems with many levels of master keys, it may be necessary to collect information from locks in different "subsystems" in order to deduce the master key. Locksmiths may also determine cuts for a replacement master key, when given several different key examples from a given system.
  • Control key
  • A control key is a special key used in removable core locking systems. The control key enables a user, who has very little skill, to remove from the core, with a specific combination, and replace it with a core that has a different combination.
  • Do not duplicate key
  • A "do not duplicate" key (or DND key, for short) is one that has been stamped "do not duplicate", "duplication prohibited
  • Restricted key
  • A restricted keyblank has a keyway for which a manufacturer has set up a restricted level of sales and distribution. Restricted keys are often protected by patent, which prohibits other manufacturers from making unauthorized productions of the key blank. In many cases, customers must provide proof of ID before a locksmith will cut additional keys using restricted blanks. Some companies, such as Medeco High Security Locks, have keyways that are restricted to having keys cut in the factory only. This is done to ensure the highest amount of security. These days, many restricted keys have special in-laid features, such as magnets, different types of metal, or even small computer chips to prevent duplication.
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