November 13, 2014
Co-Founder at HolyTransaction
The Bitcoin could be the first example of Decentralized Autonomous Body or DAC (Distributed Autonomous Corporation).
A DAC to be decentralized and autonomous, works without any human involvement, under the control of an inviolable set of strict rules dictated by the system. These rules are made through open source software verifiable by all and distributed through the computers of their shareholders.
The perceived value of Bitcoin is derived from what can and that makes a reliable Function Trust Confidentiality (trustworthy confidential fiduciary service): allows owners to keep records current account private, and allows you to transfer value between two private accounts once entered into a “signed contract” between the parties where the system itself ensures that the transaction is valid, preventing forgery and creating opportunities that go far beyond the payments.
Is not the Bitcoin much more of a commodity (gold, silver, oil, etc ..) or a piece of paper money?
And ‘better define the Bitcoin as a DAC, which as a coin.
A Bitcoin is a small “share” of the total capitalization of the autonomous coorporazione “Bitcoin”.
You become shareholders, or by buying the “stock” (small amounts of bitcoin) from coorporazione or providing a service to the institution itself (Mining), to receive the “stock” in reward.
The “stock” makes you holder of a share of the profits gained from participation coorporazione, in other words a share in its operation and growth.
The services of “mining” that validate transactions and ensure the protection of the network are rewarded with new Bitcoin slowly increase the volume of Bitcoins in circulation (“stock”).
The service of mining will require more and more time in the labor force to be rewarded with the same amount of Bitcoin, this makes sure that even if there is a dilution of the stock, the same maintains or increases its value.
E ‘can exchange your shares for the other currencies, goods and services (as a normal currency).
The operating rules of the system can not be changed unless the majority of stakeholders agree to move to a new version of the software.
It is interesting to note that they are not the owners of the shares of the institution to manage change, but the decision-making power is in the hands only to those “workers” (miner) that are contributing, with their resources, to operate the institution .
This is exactly what Bitcoin has planned to distribute the voting rights.
The shareholders obtain the growth of equity. Employees receive voting rights.
There are no profits, but all the “revenues” are paid to employees as compensation for their efforts.
The Bitcoin is a company owned by shareholders, managed by the workers: a crypto-entity nonprofit.
The blockchain not the Bitcoin, somehow is something deeper that the Bitcoin itself, is a new data structure of computer science, who still do not know how it can be applied to create different instruments. This new technology, transformerà lives.
The Bitcoin is not only a method of payment is more, it is a tool for resource management, media organizer and collaboration between people, a tool for self-management, a tool for exchange and business, which will help us to re-think how we can build the company around us with better systems. If you forget the Bitcoin and take a look at its technology, we realize the infinite possibilities! If we could have a global consensus on who owns a domain or an email, then why do we need a centralized version of these services?
The companies ‘real’ legal structures are created so that groups of people can act as a legal person. The groups of people, however, are not the most reliable of the individual persons. The bitcoin but has found a formula to be more reliable than a Swiss bank, with its software independently distributed and his three laws of robotics.
You can conceptualize a DAC via its inviolable code of conduct, or according to the three laws of robotics Asimov:
A robot may not injure a human being, nor can afford that, because of inaction, a human being to come to harm.
A robot must obey orders given it by human beings, provided that such orders would conflict with the First Law.
A robot must protect its own existence as long as self-protection does not conflict with the First or Second Law.
The Three Laws of Robotics are a set of laws written by Isaac Asimov, in the early forties. For Asimov, if a machine was designed well and used properly, could not present any risk. To apply these laws in an autonomous entity that it must respect the security needs (the First Law), service (the Second Law) and prudence (Third Law).
The Bitcoin adheres to these three fundamental laws that make it virtually incorruptible.
A DAC may be behaviorally constrained by its own set of three laws incorruptible.
The fundamental innovation systems blockchain decentralized as Bitcoin is their ability to perform in a verifiable its own set of incorruptible Basic Laws.
Each set of business rules could be implemented with a DAC, even those that many might misjudge. The key idea is that the Fundamental Laws ensure that a given set of business rules are forged in order to be immutable and incorruptible.
If you have confidence in the set of inviolable rules of business of a given DAC, you rely on them. If you are not interested, you will not do business with them.
But those who understand the power of blockchain glimpse of how technology Nakamoto can be tailored to a general interest.
“The technology of blockchain allows the creation of an ecosystem of innovation that is not yet known, and that it can not even be reasonably expected” writes Prof. Francesco Vatalaro (University of Tor Vergata, IEEE).
Another of the people who understood its potential is Vitalik Buterin, 19 year old developer of Toronto, which is launching a new consensus platform decentralized inspired Bitcoin. Promises to host a set of decentralized applications on a single blockchain.
An example of the operation of Ethereum is represented by contract clouded Ethereum that can hold a private key to an address in the Bitcoin network, and use the private key to sign a transaction Bitcoin when the conditions of the contract are met. Now suppose that a DAC has control of your bank account. With a contract clouded, you can make sure that the contract to maintain your credentials to access the website of a bank account, and do so through a secure session, that the contract you sign and authorize a specific transfer. A digital asset can represent something more than a specific sequence of bits, can represent an idea.
A DAC is basically a way to use technology Blockchain behind Bitcoin to create a decentralized service.
A DAC that was designed with a negative intent, would not be able to go beyond the arena of open source, as manifestarebbe openly his bad intentions.
The key point for a DAC that is not dependent on any person.
Other potential business models for a DAC could include a service of election and lottery, all automatic.
Namecoin is another example of coorporazione autonomous decentralized, it is much easier to understand the concept when you discover this service.
Namecoin is a decentralized service that allows you to register a domain .Bit (it is also working to email services and online identity). Namecoin is basically a commodity that allows you to record DNS.
The people who own Namecoin have an incentive to promote and build on the Namecoin because in this way would help to increase their value.
The Protoshares / Bitshares instead are something other than a simple altcoin that clones the blockchain of Bitcoin. The idea behind this project is that possesori Protoshares will also receive a stake in the Decentralized Autonomus Corporation created by Invictus Innovations.
Without a profit motive, many decentralized services that we will be born in the next few years will not survive the test of time.
You will soon see many different DAC that offer alternatives to decentralized services like Facebook, Twitter (take a look at Twister), Gmail, sports betting, voting service, division of profits, cloud systems, and more.
But What fundamental laws should implement a DAC?
The President of Invictus Innovations, Stan Larimer, proposed the following three laws of robotics for corporations autonomous decentralized (or DAC)
A DAC must always obey its business rules published.
A DAC should never change its business rules without the consent of its shareholders, and that any change must not conflict with the First Law.
A DAC must always protect its own existence as long as such protection does not conflict with the First or Second Law.
In practice, these three laws are embedded within an open source software in a way that it can be inspected by all.
Therefore, as already said, in a DAC shareholders govern the protection of their rights and how the rules can be changed if necessary, always respecting the three fundamental laws of DAC.
Therefore, a DAC should respect the following three fundamental laws:
The first law, the ‘integrity. is carried out by control actions cross on each node in the network with many other network nodes. The misconduct by individual nodes of the DAC are simply blocked and the authors avoided, disobedience is useless.
The second law, the ‘incorruptibility. Ensures that the updates of any source code of the DAC are not integrated to the system without the consent of the majority of stakeholders. Even if it were possible to bribe a large minority of the nodes of the DAC would not get any result.
The third law, the ‘self-preservation, has features designed to enhance the software against real threats to the existence of the DAC.
The most serious risk for a DAC is an attack on its human creators, which are necessarily exposed to many corrupting influences. Such attacks are easy to make and are therefore his Achilles heel.
But what will be the consequences? The hope is that there is a massive cost reduction in starting new businesses and create a tool for organizations much more difficult to bribe.
Each participant would make these networks more resistant to external attacks incetivando others to participate through a real economic and social value.
In a developed world, encryption and consensus are distributed to the point of making our lives much more interesting, to the point that one could speak of a first legal system built to really help people.
But to survive as a reliable entity, the DAC should become autonomous at the international level, that does not depend on any state or international organization. To survive the DAC should be free.