See the shared notes from this session too.

Photo by richard winchell

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Members of The Open Co-op have been promoting the idea that new software could, potentially, revolutionise both our failing democracies and our predatory capitalist economies, since 2004. Back then we weren’t quite so clear on exactly how the required information architecture should be designed – but we knew what we wanted it to do and how it should work. In 2004, I published a paper entitled Participatory Democracy Networks, which explained how I thought some new information architecture could facilitate participatory democracy worldwide.

The above diagram illustrates the undemocratic nature of the current system and the required power relationships of a truly democratic system. The extent to which any ‘player’ controls any other is represented by the extent to which its colour encapsulates any other. For example, in the current situation individuals influence business to some extent (by buying things) and the government to some extent (by voting) but do not control them, individuals only control the NGOs.

Not long after that we founded The Open Co-op and designed some screenshots of our “dream communication system” which we called PlaNet, to illustrate how the new software we wanted might work, and developed a presentation using some fictional cartoon characters to illustrate how a system like PlaNet could help people live together in a collaborative sustainable economy.

In 2017 we updated the PLANET screenshots – presenting the idea as An open source operating system for a collaborative, sustainable economy incorporating a range of interlinked apps on a smart phone. PLANET is still not a software project, it remains a vision which aims to illustrate some of the concepts and advantages of a collaborative, user owned and managed economic platform.

The purpose of the PLANET concept is to illustrate, through a Graphical User Interface, what it might be like to interact with a new economic system which has been built collaboratively as an open source project. PLANET would be owned and controlled by its members, giving them complete control over how it is run via proposals, and votes on other members’ proposals. PLANET incorporates concepts such as: Agent-centric architecture, Personal data licenses, Portable reputation, Alternative currencies, Group management, Local relevance and Delegative voting – all the same ideas we were proposing in 2004 to help build participatory democracy networks.

So, for 12 years PLANET has remained a dream. And then we discovered Holochain.

Whilst everyone has been getting very excited about the potential of blockchain we have remained skeptical for a variety of reasons;

1. You cannot store all the data in the world in a blockchain
2. The blockchain is a spectacular waste of energy that could instead be used to improve the quality of life for millions of people around the world – just see the insane energy consumption of Bitcoin. If growth continues at the present pace, researchers estimate that Bitcoin mining alone would consume more power in 2020 than the entire world does today.
3. A system that is designed to enable total anonymity is actually not very appropriate for building collaborative, trust-based systems and organisations.

Sometimes technology gets over-hyped and there’s a growing body of evidence explaining why you don’t need to use blockchain. This paper by Karl Wüst and Arthur Gervais from the Department of Computer Science in Zurich, gives a good outline of whether a blockchain is the appropriate technical solution to solve a problem.

Flow chart to determine whether a blockchain is the appropriate technical solution to solve a problem – Karl Wüst & Arthur Gervais

Whilst blockchain has and is being used on some great projects, this amazing story from inside a Jordanian refugee camp that runs on blockchain to help Syrian refugees regain legal identities that were lost when they fled their homes, is the perfect example of how the technology is failing to deliver. To quote the conclusions “the transactions were slow and the fees were too high” … ” so “Instead of cutting the banks out of the equation, [the World Food Programme] has essentially become one”. Haddad, who runs the programme acknowledges that—“Of course we could do all of what we’re doing today without using blockchain…”. But, he adds, “my personal view is that the eventual end goal is digital ID, and beneficiaries must own and control their data.”

Owning and controlling your own data. That’s what we want. That’s the fundamental idea behind PLANET.

But trying to force a system like blockchain, which was designed to enable anonymous transactions, to help you own and control your own data is like trying to fit a square peg in a round hole. Wouldn’t it be better to start with a system which is specifically designed to enable you to own and control you own data? That also, by design, encourages trust between peers and, as well as that, enables giant volumes of transactions at low transaction costs?

That’s what Holochain does. And it does it very well.

Whilst some people have been embarrassing humanity by creating mind-numbing concepts such as Crypto-kitties and trying to force tomatoes on a blockchain, the team at Holo have been figuring out the fundamental information architecture for a new, sustainable, collaborative and cooperative economy. Such a valiant and laudable mission is clearly not for the faint-hearted and the Holo team brings together brains such as Eric Harris-Braun, Arthur Brock, Jean Russell, Jean-François Noubel, and Matthew Schutte to name just a few. They are an incredible group of system-thinkers whose ideas have evolved out of the metacurrency project and CEPTR and synergised as Holochain, a new applications framework that they are giving away to the world for free.  To help subsidize that effort, they are also launching the first flagship application built using Holochain, a peer-to-peer web hosting platform, confusingly named Holo host, for which they recently raised over $20 million through a crowdfunding campaign and an Initial Community Offering.

In order to explain what Holochain is, how it works and why co-operators everywhere should take note, we interviewed their Director of Communications.

OSB: What is Holo in layman’s terms?

MS: Holo is a peer to peer app hosting marketplace. Today app hosting is the domain of big business. If a developer builds an app, they serve it via a hosting company like Amazon or Google and pay to use their big data warehouses – huge sever farms which present the app to end users. Holo makes it possible for normal folks to make use of the idle storage and processing capacity on their computers to get into that business… For example, when I’m writing an email, my machine is doing some work but it has the capacity to do 1000 times more work – so HOLO enables you to rent some of that extra capacity.

OSB: OK, that sounds great, but I can imagine people worrying it might slow down their computers. Is that something users will need to think about?

MS: You can set your own parameters. You can specify the settings for how much of your machine you allocate to Holo – Our goal is to prioritise your use over Holo’s use (although this may not be included in the initial version at launch) so you never get slowed down. Some people will be dedicating whole machines to Holo hosting… but if you’re using Holo on your main computer you don’t want it to be annoying… you just want it to make use of the spare capacity. If it’s reducing your quality of life – that’s not a cost most people are going to be willing to pay.

OSB: Will it be secure? I can imagine people worrying that if a Holo service or app is running in the background on their computer then maybe it can access parts of their machine that they don’t want people to see.

MS: Yes, it’s secure. It only has the ability to interact with certain parts of your computer. This is similar to the way in which a web site can change pixels on your screen but can’t read your private files. Technically it’s called “sandboxing”. Holo will use a cordoned off section of your computer. We’re not inventing new stuff there, the technology to do this securely has existed for a long time.

OSB: Will people need a special computer, or a certain specification of computer to run Holo?

MS: No. Any Mac or PC, desktop or laptop will work but mobile devices are slower and so not so suitable for serving websites to others.

OSB: Why would someone want to host HOLO apps on their computer? How is that going to help build a collaborative, sustainable economy?

MS: It’s kind of like the way AirBnb and Uber work. Their model enables them to make use of spare bedrooms – to help people pay off their mortgages. Holo makes use of the spare space and processing power of your computer to help you pay for your internet connection and maybe even the cost of the computer itself…

There is a massive amount of unused computing power in the world, more than any one company controls… Amazon is king of hosting at the moment, though there are others that are neck and neck, like IBM and Google.

Amazon is the third most valuable company on the planet and their web hosting division, Amazon Web Services (AWS) makes up 10% of Amazon’s revenues but more profit than the entire rest of the company combined. App hosting is the cash cow of the third most most valuable company on the planet!

Holo is aiming to do to Amazon’s cash cow what Uber did to Taxis – but instead of taking 20 or 30% of the money from the drivers (like Uber does) with Holo 99% of the revenues go straight to the host who’s computer is doing the work.  Holo takes a 1% or less transaction fee.

OSB: I see, so Holo has the potential to disrupt the hosting industry and divert money back to the people who join the network and host apps on their computers. But, if you’ve invented a way to do that why wouldn’t you take more than 1%?

MS: We don’t need it – because we’re distributing everything… just like Airbnb was able to grow from two guys with air mattresses to a company that books more rooms than any other… because they didn’t have to build and own locations – we’re catalysing existing assets instead. We’ve invented a really efficient accounting system – and a 1% transaction fee is our business model for Holo. And that helps subsidize the larger Holochain ecosystem. This is just a first step in a larger plan to shift how humanity communicates.

OSB: OK, I thought so – there’s clearly more lurking under the hood! But before we dive into that I want to take a step back and try and get a real understanding of what Holochain is and how this idea works. You’ve told us a bit about Holo, which is a Holochain app.  Can you explain the technology behind Holochain itself a bit more?

MS: Sure. Peer to peer app hosting is not a new idea. Just like BitTorrent offers peer to peer file sharing, Holochain makes use of some of the same technology.

A few decades ago people realized that it would be useful to be able to store a file on a network of computers, but not have to depend on having any single computer be up and running at a particular time in order to access them.  Note that with the web, when you look up a website, you are looking up content based on which machine it is stored on. That means that if that machine goes down, you can’t access that content. That kind of sucks. It’s also a major reason why most people don’t host their own websites anymore.  If for any reason your computer goes down, no one can reach your website. This “server maintainer as second job” thing was a pain in the neck, so most folks opted to pay others to “do that hosting work.”

With BitTorrent, it’s different. When you reach out for a file, you don’t ask for a specific machine. You ask for the file. Other machines on the network share information about which files are stored where. Within a split second, you’ve got your file (or at least have started to download it). This even works if every computer that originally received the file has since gone offline.  That’s because if a computer notices that one of its neighbors has gone offline, it starts making backups by recruiting new machines to hold onto a copy of that file.

For example, if I send a tweet – it might get stored by 200 different computers. If one drops offline, the system looks for others to make backup copies to ensure 200 copies remain online – these nodes are “gossiping” with each other – if they don’t hear back when they check in with the ‘Oli node’, they say “oh no, we lost him!” and then look for the next nearest node (what “nearness” means is a bit too technical for this interview). Jimmy is the nearest – so they get Jimmy’s node to make a copy to ensure 200 copies stay online. It’s like a self healing network.

That’s great for file storage – but not to run apps, you can’t run Airbnb like that. You can’t run Uber like that.  Apps need to build sets of relationships and transform resources. Holochain takes the file sharing concept and adds more functionality. Borrowing from three different technologies in the process:

1. From BitTorrent – self healing storage, the Distributed Hash Table (DHT)
2. From Blockchain and other things – the concept of an immutable, unchangeable, tamper proof data log. A hash chain.
3. From Git, the most widely used system for collaborative software – the Agent centric model, where there is no one global truth.

In the Git world, I have my version of the code. If I make a copy and add a green button, altering the code, I can suggest the change to you. If you like the change and accept it, you sign it with a cryptographic key, just like track changes in a Word doc. When you suggest changes it shows them to me. If I accept this change, and I sign that acceptance with my cryptographic key, it updates my chain to include the changes I accept. But you can’t change my stuff. I have to update my stuff. As a sovereign agent.

Holochain is an agent centric model which is very different to the data centric model of blockchain. There are no miners, and no company in the middle deciding and enforcing the rules.  Instead, the participants of a particlar of the network running it as a community. By pooling together our computing resources we make possible an entire network of distributed apps that are free from centralised, corporate control. By putting that scale of control back into the hands of users, we enable humanity to access entirely new possibilities for how we do economics, governance and community.

By putting that scale of control back into the hands of users, we enable humanity to access entirely new possibilities for how we do economics, governance and community.

OSB: That’s awesome, it sounds like you’ve developed a system to run something like PLANET, the open source OS we’ve been thinking about for so long. But if this is going to work the peer to peer network will need to grow pretty quickly, is that where the HoloPorts come in?

Aside:

As well as running possibly the world’s first ever ethically (rather than purely finically) motivated ICO, which raised £20 million, the Holo team also recently closed a crowdfunder for Holo ports, which raised over $1 million. The supply of ‘Holo Tokens’ which were sold in the ICO was calculated by a fixed formula based on data from the crowdfunding campaign for HoloPorts. HoloPorts are “plug and play” devices which come with software already installed and are optimized to run Holo. When they arrive with the 2114 users who purchased them through the crowdfunder people can just plug them in, follow the instructions, and start hosting the network and earning Holo fuel.

MS: Holo is a bridge between the old internet and the new internet. The people who are running holo are the bridge builders who get paid for building the bridge. So, normal internet users don’t have to do anything new – they might not even know that when they visit a website, on the backend, there is a community rather than a company.

OSB: I love the fact that Holo’s currency, Holo fuel, is both backed by computer processing power and designed to work as a mutual credit system.

MS: Holo also provides a new accounting process, which solves two problems: giant volumes of transactions and low transaction costs. We don’t even need to own the structures to do the accounting – we’re using a distributed app for that too – a payment system, so we are able to offer payment processing as well as hosting – for less than anyone currently offers. We’ll be able to process millions or billions of simultaneous payments – and have them work even when the transaction value is 1 cent or less. I’m not going to send you 2p if it costs me 20p to do so… We think we’ve solved an important issue.  The cost of accounting needs to be far less than the values exchanged.

OSB: Absolutely. I’ve seen that very problem plague existing blockchain projects, so I really hope it is something Holo solves. Speaking of finances, you seemed to take great care to ensure the ICO was ethically managed and you’ve now raised a huge amount of money! What are your first plans with your new resources?

MS: Our goals were clear:

1. Get this off the ground – launch the change
2. Make sure the humans get taken care of for their part in that…

It’s a principle we’re going to follow with the whole community of hosts, and ICO investors. We’ve been trying to design the architecture so people end up better off by participating. We’re taking care of our staff and the community that are trying to get the software built. But we’re not trying to become billionaires.

Our people have been living on $1000/month stipend and volunteering their time.

Two years ago I was sleeping in my car to be able to work on this full time. I hard to rent out my bedroom on Airbnb, so I could work on this without having to work on other stuff.  That generally meant that I would sleep in the car. Now our project has market cap worth hundreds of millions. But we’ll let that happen… it’s just people betting that we’ll be successful. The point is that now we have the resources we need, the ability to pay people and pull in deep knowledge.

OSB: How is the Holo organisation going to evolve?

MS: We’re in a transition period. We didn’t do anything in the normal way. We didn’t give any equity in the company to investors. We didn’t even give equity to the employees. I don’t have equity, for instance, because our intent is to hand over control of the resources to the community over time.

We’re aiming to start by using a CoBudget-like process so that our community will control 1 to 3 % of the revenue. There will be a learning process, so the community can build up it’s ability to make decisions and exercise judgement about how to allocate resources, towards training / UI / development / security tools etc. Over time the plan is to increase the amount of the revenue which the community controls until the community controls all of the revenue.

We’re also launching a Trust that controls Holochain. That trust receives 50% of Holo’s revenues and that will help to support Holochain and nourish the growth of the network. Basically we’ve managed to hack together a funding mechanism for Holochain, despite the fact that we are completely giving Holochain away for free.

OSB: So, do you think Holo will help liberate decentralised co-operation at scale?

MS: We’re hacking business structures in order to try to change what types of business models are possible in the world.

We’re hacking business structures in order to try to change what types of business models are possible in the world.

This concept of putting users in the middle will completely shift how co-ops can function. It will enable them to make use of the advantage that they have, which is diversity. What we are calling platform co-ops and protocol co-ops – coming together in alignment to create an ecosystem rather than just a network. So we can try new things and if they prove useful, they can propagate across the community and perhaps beyond. The “beyond” comes from the fact that users can bridge between different networks.  That means that I can draw data from 5 or 10 apps and combine them together to create a more coherent user experience for myself. And I don’t need anyone else to agree to also use that particular configuration. If it works for me, I can put it to work. No group meetings and voting required (for that sort of issue, anyway.),

No more top down, or one-size fits all application experiences, that’s centralised corporate architecture. New ways of digital commutation are going to harness the diversity of co-ops and help give them a learning advantage. This will allow them to experiment and learn faster than centralised organisations – a collaborative advantage in a world that changing fast.

Part 2 of this interview – exploring more of Holo’s plans to enable decentralised co-operation at scale is coming soon…

Matthew Schutte and Art Brock from Holochain will both be speaking at the OPEN 2018 Platform Co-ops conference in London in July – as well as running hands-on workshops on how to download the source code and design apps to work on Holochain.

We’re not the only people who are starting to get excited about Holochain, the concept has caught many other eyes. With developers like Nicolas Luck explaining how Holochain is reinventing applications and how it “works and performs better than Ethereum by several orders of magnitude”, and Jean Russell sharing 5 Ways Holochain can save democracy, momentum is starting to build.

In his post about Holochain reinventing applications Nicolas shares his vision, explains the shift from data-centric to agent-centric architecture and proposes building a Holo browser:

“I am talking about a browser for the Holochain app ecosystem that is not opening HTML documents but instead is facilitating communication between the user and other users, groups, teams, organizations and the network as a whole. Think: decentralized WeChat. Basically a very generalized address book/team chat/social network/collaboration UI with no specialized functionality as that is to be filled-in by those many apps which are meant to work together as micro-services.”

That is exactly what we have tried to illustrate with PLANET, which is why this is all so exciting. If the users co-own and co-design the browser which Nicolas describes we will finally have a framework within which we can build a democratic, collaborative, sustainable economy – the perfect framework for decentralised cooperation at scale.

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A deep dive into Holochain – what some are calling an evolution on blockchain technology, operating “in parallel to BitTorrent to power fully distributed apps”

Continuing our coverage of Holochain, the following analysis was written by Tristan Roberts and was originally published in Crypto Insider.

Tristan Roberts: Bitcoin made the impossible a reality, and Ethereum aimed to take that same utility into other domains. Artificial intelligences need not beholden to their human masters, and global organizations no longer need be at the mercy of a handful of executives. Truly cooperative, decentralized organizations seem to be just on the edge of becoming a reality.

However, despite all the possibilities that blockchain technology has teased us with, we’ve already started to see limitations: seemingly innocuous apps like CryptoKitties have made the Ethereum network grind to a halt, and multi-signature wallets have been accidentally, irrevocably locked. There are a lot of reasons why blockchains suck, but that topic is for another article. Instead we’ll see how scaling limitations can be overcome, with a particular focus on Holochain.

EoS, BitLattice, and Holochain are all examples of an evolution on blockchain technology. Technically, they are not even blockchains at all. Rather than a linear sequence of transactions – a series of ‘blocks’ – they are more like a mesh of transactions. They all provide cryptographic control of information, but none of them require nearly as much storage and processing power as Bitcoin and Ethereum.

This next generation of crypto-networks have some parallels to how Einstein uppercut Newton. Rather than spend huge amounts of energy to construct an objective reality, these fledgling networks have a more relativistic perspective. Data is verified locally, rather than through global consensus mechanisms that make a linear, absolute sequence of events.

Your dear author has quested across the globe in search of what is ‘next’, and nothing seems to answer that question as thoroughly as Holochain.

Holochain is not a blockchain. It’s more like “git repositories for each agent which can be published, shared, synchronized or merged via a BitTorrent-like DHT (Distributed Hash Table)”. This shift to ‘agent-centrism’ rather than ‘data-centrism’ is important. Each application has its own Holochain, and each agent has their own chain. Rather than spending an absurd amount of energy to craft a single record of events, Holochain allows people to write anything to their own chain. However, transactions that violate the rules of the application (such as me saying that you gave me all your tokens) won’t be propagated by the network.

What does this mean to real people? Well, imagine Facebook without Zuckerburg sucking up all the wealth. Users get paid for their posts and for the data they generate – if they opt in to their data being sold. Imagine Uber owned by the drivers and riders; AirBnb owned by the hosts and guests. Strangers can interact collaboratively in a high-trust manner, without a profit-seeking corporation sucking up all of the ‘value’ it can.

Holochain is not just a way of verifying and controlling data. It is also a way of hosting that data as well: Ethereum meets the Inter-Planetary File System. When a request is made to see new messages on Holochain’s Twitter-killer, Clutter, the data is sourced from nearby nodes and comes in gradually like flowing water rather than being delivered in a single dump from a centralized database.

When you add something to a holochain, you sign it, append it to your own chain (like in Hashgraph, the latest entry is hashed to confirm the whole history is valid), and submit it to the Distributed Hash Table, which makes sure it conforms to that chain’s rules. You are also receiving and checking other people’s transactions in the process. Each application is its own Holochain, and a cell phone can easily act as a node for multiple Holochain apps.

Yes, there will be an ICO. Holo, the creator of the open-source Holochain, is framing it as an “initial community offering”. Unlike most ICO’s, Holo has taken great effort for this offering to be not just legally compliant, but perhaps even ethical. One of the founders, Arthur Brock, makes a solid point: most blockchain enthusiasts deride ‘fiat’ currencies as coming from nothing. But if a credit – say, a bitcoin – is made without a corresponding debit – then it is also coming from nothing, and is just as aptly labelled ‘fiat’ as notes from the Federal Reserve.

Holo is taking a different route. The credits that they offer during their ICO will be matched 1:1 to debits for their organization. Their organization will alleviate this massive deficit through a 1% transaction fee on the network. Similarly, each user is able to be either negative or positive, however, a much smaller debt limit than the Holochain organization.

Much of Holochain’s core infrastructure is already in place – proof-of-concept applications are already running. Thus, they are framing this as an ‘initial community offering’ – seeking enough Ethereum in order to make the community grow organically over time, rather than simply hoarding more Ethereum than they could ever hope to responsibly use like some upstarts.

Holo has already had a very successful crowdfund on IndieGoGo, primarily offering lightweight computers to act as nodes in the network. Much like Ethereum’s ICO, Holochain’s token offering keeps getting pushed back; perpetually just 2 weeks away. You can stay posted here.

If you are just interested in making mad returns on your cryptoinvestments, the remainder of this article is probably not for you. However, if you have a gut feeling that sexy distributed networks might just change how we interact with each other for the better: read on.

Metatcurrency Project & Ceptr

Holochain stems from a decade-old project re-evaluating some of the basic fundamentals of how we interact with each other. Theis Metacurrency Project in turn gave birth to Ceptr, a re-imagining of computer systems, based on mimicing biological processes rather than using cold, hard, centralized logic. The hope is that Ceptr will sprout out of Holochain, which the group believes is a necessary foundation for their loftier ambitions.

The Metacurrency Project’s starting point is viewing the universe as being made of language. Language is made of:

• Carriers, such as paper, lightwaves, soundwaves, and electricity
• Receptors, which transforms signal A on carrier X into signal B on carrier Y e.g. the ear transforms soundwaves into neural impulses, a microphone transforms soundwaves into electrical impulses, a speaker transforms electrical impulses into soundwaves, a pen transforms muscular movements into writing.
• Protocols, the code, for example, binary
• Signals, the patterns themselves

There are levels here. It’s a fractal. If you read this sentence on a screen, there were the electrons that made light, light that made a letter, letters made words, words made sentences. The receptors are lightweight virtual machines. These are autonomous. Receptors are composed of other receptors. Receptors hold both code and data. Branches of the tree hold data-types (e.g. integer) and data.

What data-type is it receptive to? What data-type does it output? This builds meaning into the computing stack at the lowest level possible

You can’t store meaningless data. You can store an age, or a shoe size, or something like that. You have to say the meaning of it.

These self-describing trees with data incorporated can use different protocols, but reduce to one big interoperable, mashable system.

How might you see this principles actually bring value to your life? Imagine mashing together your emails, facebook feeds, tweets, texts into a single stream. Without organization, this would be a mess of information. However, an intelligent system could start to organize the flow of information; managing workflow with ticketing scheduling. Once the workflow is defined, currencies and wealth can be built on top. In many ways, currencies are used to prioritize how we spend our attention. Currently, Facebook and Twitter manage our feeds for us. They have their own motivations which are not always in harmony with our own well being.

In the same way there is a constellation of protocols, there are a constellation of currencies: for example, we have all probably used our reputations in some way to get money.

Ceptr is a protocol for protocols. It’s a low-level, fundamental protocol for how to structure data, organize processing, and communicate. In other words: TCP/IP for wealth.

Is system-wide consensus really needed for a simple transaction between two individuals? In Holochain’s agent-centric approach, each user marks the transaction in their ledger, and this is made public for those who actually need to know. False transactions are not allowed to propagate through the network, and those who make fraudulent claims are eventually pushed out of the network.

The MetaCurrency project rejects the deeply seated idea that scarcity is a necessary for wealth. “Rather than trying to make one global, anonymous, digital cash, we are interested in building a rich ecosystem of interoperable currencies.”

Non-fiat system of money

One of the most notable ways in which this group diverges from typical understanding of money is the use of ‘mutual credit’. As mentioned earlier, most currencies, including Bitcoin, are based on fiat. They mint the tokens by a line of cod, and trade the resulting tokens that are backed by nothing. This requires global consensus of the state of the ledger. This cannot be done on a Holochain, where local versions of the ledger fall out of sync by design (everyone has their own ledger, in other words). You can’t track the coins. But you can still implement money if you re-consider what money is; a non-fiat kind of money.

Mutual credit systems has been around for centuries. In a mutual credit system, units of currency are issued when a participant extends credit to another user in a standard spending transaction. Picture a new mutual credit currency with all accounts having a zero balance. The first transaction could look like this: Alice pays Bob 20 credits for a haircut. Alice’s account now has -20, and Bob’s has +20.

So instead of coins being issued backed by nothing, they are issued by the peer, in arrangement with another peer, by creating liability/debt. “Managing the currency supply in a mutual credit system is about managing credit limits — how far people can spend into a negative balance. Different systems set different rules about this, ranging from everyone having the same limit (e.g. 100 credits), to having NO limits and leaving the choice up to each person as to whether they want to extend more credit to someone deep in debt.”

Ceptr’s ontology of ‘wealth’ is slightly unusual; when they say their tech can measure currencies, that includes any resource. AirBnB reputation is a currency. A movie that has a high IMDB rating is wealthy in that sense. A college degree is a form of wealth. And of course, traditional paper money is a currency.

Too narrow a view of wealth is what causes negative externalities. You burn coal to make money, but ruin the air; you didn’t have good air on your balance sheet.

Wealth is currently one-dimensional. Ceptr is trying to build a more complex, expressive idea of wealth, analogous to the shift from oral knowledge to written. Wealth in their terms can be subjective/expressive, like satisfaction. The proposed system allows any receptor to make a statement, then consensus is negotiated. If they don’t come to consensus, that’s fine, they fork, or cancel the transaction. Each node has full authority to process its own transactions.

If Alice receives a transaction request from Bob, she checks his signed transaction chain to arrive at the current state of his ledger, and “If both nodes are in an appropriate state which allows the current transaction, then they countersign the transaction and append to their respective chains.”

When your node appends a mutually validated and signed transaction to its chain, it has updated its local state and is able to represent the integrity of its data locally. As long as each transaction (link in the chain) has valid linkages and countersignatures, we can know that it hasn’t been tampered with.

Most distributed apps have no need for consensus with the whole world. If I want to book your room, you & I have to make an agreement, no more. This seems to me a more in line with decentralization than what Ethereum or Bitcoin can provide.

If you’d like to learn more, a solid section of links is provided below. More than all of this technical knowledge, however, the reason why I support Holochain is its community. It is both literally and figuratively a magical group of people. When the authors met them in San Francisco, they were literally living cave like rooms, no bigger than the size of a bed. None of the people seemed to be there to get wealthy: all of them were passionate about building something better. Of restoring the internet to its former glory, before behemoths sucked up all the value.

RESOURCES

– Holochain Greenpaper

– Mutual Credit: Currency without Consensus

– Holochain Gitub Repo

– Holochain Overview <10 Minutes

– Two short videos for understanding what a receptor is: [1] [2]

–  Video on receptor-based computing

–  An hour presentation on Ceptr.

Note: I have not received any compensation from Holo other than a lovely meal at their former group home – the Holodeck – and a deep meaningful gaze into their spokesperson Matt Schutte’s eyes. \International pirate of intrigue Conor O’Higgins contributed substantially to this article.

This article has been edited publication to reflect the distinction between Holo and Holochain. It is republished in the P2PF blog with the author’s explicit permission.

Featured image from Ibrahim Boran on Unsplash

The post What could come after blockchain technology? The what and why of Holochain appeared first on P2P Foundation.

Holochain : The Blockchain picks up a Dimension

Jamie Klinger: Bitcoin’s central mechanism — the Blockchain — is a monumental achievement in computer science. And from that central achievement, many other cryptocurrencies have emerged attempting to improve the model in one way or another. Holochain has come along to further decentralize, maximize efficiency, and allow for all types of interfaces and applications to be built with it.

Holochain harnesses the parallelism of BitTorrent to power fully distributed apps.

Holochain is a data integrity engine for distributed apps

An Engine is “a machine with moving parts that converts power into motion.” (Source: Google)

Data Integrity is what blockchains and torrents have been doing. They make certain that the data on my computer is the same as the data on your computer. They make certain that the order of the data is exactly the same, otherwise there would be a malfunction.

Distributed Apps are apps that run locally on your personal device (as opposed to in the cloud).

https://www.pexels.com/u/lumariia/

A centralized app like Snapchat offers you a small file (the app) to download that sends data through centralized servers.

A decentralized app like TenX runs on a decentralized blockchain (Ethereum).

A distributed app would run locally on your personal device and would offer peer-to-peer connections.

So if Snapchat were a distributed app, you and your friends would all have the (d)app on your phone, and when you send a photo, it would be sent directly to your friends and only to your friends. No intermediary servers. No intermediary blockchain.

Another way of seeing distributed apps are as scripts (executed code) that hook into distributed databases, compiling data.

Holochain allows you to build interoperable apps for communication

https://www.pexels.com/u/gratisography/

If you want to build a Twitter clone on Holochain (which, incidentally, its core team has already started, and it’s called “Clutter”), you decide on the rules for message size, hashtags, and whatever other parameters are important to you. Maybe you decide that for your specific Twitter app, it is crucial to segregate posts by the person’s color preference, so in the creation of your app, you hold a sign-up requirement for people to share their favorite color.

Now, when you post a poll and people begin to respond, you can have their answers sorted automatically by the respondent’s favorite color.

Ok, so you made Twitter with color preferences, we’ll call it Color-Twitter. That’s not the most useful feature in my opinion, so I make a poll asking people to vote on a more useful parameter and gather statistical information. The group votes and they choose age. We then request to the creator of the app to add in this parameter to Color-Twitter. Here’s what happens next.

https://www.pexels.com/u/sebastian/

The app creator likes your idea

Congratulations! The app creator wants to integrate your update! They build the new functionality into the app, but since it is a distributed system, everybody who is using the platform needs to download the latest version.

The founder will run both versions (and hopefully many people will do the same to facilitate the transition) where the users who have upgraded will leave one final tweet saying, “I no longer post here. Find me as HonestlyJamieK on ColAge-Twitter, follow this link.”

Some users may choose to stay behind and continue using Color-Twitter. They will not be able to interact with ColAge-Twitter accounts. But it could be possible in the future that ColAge-Twitter accounts can interact on the old chains of users still running Color-Twitter. This is because the parameters for Color-Twitter have been met by all users, but the parameters of ColAge-Twitter have not been met by all users.

Color-Twitter can only exist as long as there are users running that specific app. If all of Color-Twitter users go offline and/or upgrade to ColAge-Twitter, it will no longer be accessible.

Users who have chosen to use ColAge Twitter are now required to register their age before being able to join..

Once Ceptr — a parent project encompassing Holochains and related tech that would further simplify interoperability — is integrated, it could be fully possible that if another application already holds the information required by this app, Color-Twitter could automatically make a request for access to this parameter. This can be looked at a little bit like an auto-fill feature. In other words, by filling out your age once, you might never have to fill it out again, you would only need to approve access to that information by a specific app that you downloaded.

https://www.pexels.com/u/pixabay/

The app creator does not like your idea

If the creator does not believe that this is the vision of their system, they can refuse to upgrade and remain with Color-Twitter.

Now, the same thing happens as before except that the founder of Color-Twitter is the one who is left behind. I can take the original app’s code, fork it, add the parameter of age, and launch it in holochain as my separate app. People can now use my app to broadcast tweets too if they choose.

Just like in the other example, if my new app follows all of the rules of the Color-Twitter, when someone broadcasts on the ColAge-Twitter app, they can (if they choose) simultaneously broadcast on the Color-Twitter app. As long as the rules of all the apps validation rules (color for Color-Twitter, color+age for ColAge Twitter) are met, you can broadcast across as many apps as you are running; the holochain-equivalent Facebook, Flickr, Slack, etc.

https://www.pexels.com/u/pixabay/

Distributed, not decentralized

Want to post on the Color-Twitter? I hope you’re prepared to share the network load. Holochain apps will be light enough to run on your cell phone and will be efficient enough to only be grabbing the information you request at any given time.

If the system was decentralized, we would require upgraded nodes for ColAge-Twitter to be able to run. With a distributed system, it is entirely individualized and is up to the user base to voluntarily follow along. However, if your dApp is financially sustainable and you want to provide your users with access without requiring them to maintain a shard* of the system, there will be an opportunity for dApp maintainers to run nodes/servers.

*Each app consists of a series of shards distribted across the userbase sharing the serverload, comparable to torrent functionality

https://www.pexels.com/u/kaiquestr/

Lyft & Uber vs La’Zooz & Holochain

La’Zooz was a blockchain-based ridesharing app. It functioned as a self contained system. The network was supported by its mobile app users running the app and earning tokens, who were supported financially by token purchasers, which worked by having drivers accept the tokens. They completely removed the middleman that is Uber. While that project itself has fallen to the wayside, the idea of it seemed completely obvious to anybody who has ever played with blockchain — and it won’t be going away.

Why pay a middleman when the system can be taken entirely out of the hands of a corporation? There actually are a number of very important reasons why Lyft and Uber need to exist today and why the blockchain isn’t ready for them just yet. There are legal challenges, security issues, insurance requirements, etc., that make a purely peer-to-peer system for ridesharing a bit out of reach. But in a few years, we can expect smart contracts to enter the equation and solve many of these problems.

Decentralized and/or Distributed reference systems are right around the corner. We can create parameters for verification of proper insurance, background checks, and any other requirements for potential drivers. This would function similarly to a smart contract, allowing for users to move through to the next level of verification once accepted through the former.

And once the Uber-clone is up and running, somebody can decide to fork it and generate an eco-friendly version which would only support drivers using electric cars. Eco-Uber might cost more, but it would offer a new parameter to its participants.

https://www.pexels.com/u/gratisography/

There Are Too Many Apps!

After Eco-Uber started, somebody created Red-Uber for red cars and Blue-Uber for blue cars. If the driver is subscribed to the Mass-Join-Drivers App, and fits the appropriate driver parameters, they can automatically (with permissions) becomes a driver for all of the latest apps.

For users, imagine someone now has a list of options to choose from (Red-Uber, Blue-Uber, etc) and it’s just too many unimportant choices for them. They don’t care about who drives them from point A to B, they just want to get there quickly.

Just like with Color-Twitter and ColAge-Twitter, if you as a broadcaster meet all of the requirements, you can broadcast to whomever you like, even multiple applications simultaneously.

So the user sends out their lift request to all of the appropriate driving apps. Once the first driver responds to the call, it will ping the user and then automatically cancel all of the other lift requests.

Holochain is like having access to all of the capabilities of all of the Internet apps simultaneously without needing an API, because the languages are entirely compatible. Holochain is the equivalent of having an IFTTT layer built underneath the entire Internet.

It is important to note that some of the deeper features described in this article will require self-describing protocols which have been built into Ceptr, a highly related but (currently) separate sister project.

The Ultimate Dashboard

Today, we are forced to settle for what Facebook’s algorithm decides to show us. Our capabilities for manipulating our feed are extremely limited. With Holochain, we are only limited to the parameters set by the applications. And if you and your friends don’t like those parameters, you can change them with a forked app!

And because the information exists on a layer on top of the app and isn’t held proprietarily, you can mix and match your feeds to your heart’s content. I might create dashboards for all different circumstances and be able to jump between them seamlessly. Everything dog-related from all of my app channels from users who have posted at least 10 times could be one of my dashboards. All pizza-related posts by users with a high reputation level who live within 10km of me could be another dashboard.

Because the information isn’t forced to sit uniquely in each application, the end user can create a customized experience with the parameters of their choosing. The possibilities for data mining and consensus building are endless. End the data-monopolies of Facebook and Google. If we choose to use Holochain, we choose how our information is shared and empower the commons to utilize it for collective growth and understanding.

Sources:

• CEPTR Home
  
• Holochains for Distributed Data Integrity
  
• Arthur Brock’s Personal Web Site | Arthur Brock 

Lead image: https://www.pexels.com/u/invisiblepower/

The post What is Holochain and why does it matter? appeared first on P2P Foundation.

But what does this mean for fans of cooperation and a more sustainable, steady state, or circular economy? Is this is an opportunity to rebuild the resilience and community bonds that the original co-op coins offered our societies, by utilising new digital technology?

These days, the term “crypto currency” seems to have become synonymous with blockchain based currencies and the idea of an Initial Coin Offering (ICO) seems to be seen as a way to raise millions in “investment” from nothing more than a website and a white paper. At the Open Co-op we’ve been talking about alternative economic models, and digital currencies, for decades because we believe an alternative economy, which places people and the planet before profit is an essential part of the future. If the neoliberalist capitalist system remains the only option the future looks very bleak indeed. So we’re excited about all the experimentation that’s going on – and the range of alternative currencies being created. But we’re equally worried about the “crypto bubble”, sordid speculation and the insane energy consumption of Bitcoin, which has been (possibly dubiously) estimated to consume more power in 2020 than the entire world does today.

To be clear, a crypto currency does not have to based on the blockchain. A crypto currency is simply a currency that is cryptographically encrypted (meaning: encoded) to make it secure. So when we talk about crypto currencies here we do not just mean systems that use the blockchain, we mean any alternative, digital currency.

Equally, an ICO does not have to aim for wild increases in valuation, it’s simply a term that is used to describe the initial launch and distribution of a new, alternative currency. So when we talk about ICOs here we do not mean “ponzi schemes” or a means of raising huge amounts of money through crowd funding via speculative tokens, we mean launching and distributing a new, alternative currency.

These distinctions are important because if alternative currencies are to be taken seriously and facilitate a path to a more sustainable, steady state and circular economy then it is essential that these terms don’t get totally tarred by the Bitcoin bubble and blockchain brush.

A well designed Co-op Coin could catalyse the co-operative economy

The idea is simple; to run an ICO and create a co-op coin, with the specific purpose of facilitating the growth of the commons and the co-op economy.

There are so many alternative currencies out there already it seems important to do a quick review of the existing options:

• RChain co-operative is is building a platform for ‘scalable blockchain applications’. The Co-op is the organisation that develops the open-source RChain platform software, whilst RChain Holdings is a for-profit entity whose mission is to grow the ecosystem around the RChain platform.
• Colu Local Network is a blockchain based payment network that allows communities to issue their own currency and use it to incentivise merchants and consumers for buying and selling with fiat currency.
• Steem is an incentivised, blockchain based, public content platform. Their first app, Steemit, is a blogging platform featuring tokens which are distributed to content creators and curators daily as rewards, based on community voting.
• Slightly more on topic, Boyd Cohen is working on an ICO for the Collabor8 token with the goal of raising funding to create major platform coop infrastructure that can be used by platform cooperatives to shorten the runway to viability. The collabor8 ‘social currency’ seem particularly  interesting because it includes an element of social reputation…
• Bill Olivier also seems to cover a lot of the right ground in his doc on Co-operative Exchange Token, although he seems hampered by the belief that ICOs (as they commonly work) are not a plausible option for co-ops, whereas we believe an ICO can be designed to work ethically.
• FairCoin is one of the more ethically minded alternative currencies, which aims to “implement fair value exchange on a global level” using a unique “proof-of-cooperation mechanism”. Again, this is a blockchain based system but one which uses “collaboratively validated nodes” (CVNs) to secure the network. It’s a clever system but one which is still prone to speculation which undoubtedly undermines their proud claim that “FairCoin now is the the most ecological and resilient cryptocurrency”! Since their “air drop” (basically, dumping a load of coins around the internet to be picked up by whoever gets there first, with some limitations on claims per person) the “value” of a Faircoin has increased hugely and the community “claims” one Faircon is now worth €1.2. These claims about Faircoins’ value must be decided at  a General Assembly via “consensus reached through an open, participatory process of discussion. Not the invisible hands of the market…” and the other Fair ventures like the marketplace and their growing community of local nodes do make this a valid and vibrant economy. But since everyone involved in Faircoin obviously has a vested interest in its increasing valuation and since Faircoin can be traded on at least two exchanges it is just as prone to speculation as gold, or Bitcoin. In fact, their page on “value” includes a slightly humorous request for speculators to leave Faricoin alone: “If you just want to get rich soon and intend to “pump and bump” – please consider other AltCoins to speculate on.” Not the most robust means of securing a stable, inflation and speculation proof system!
• Coinsence is a platform for social collaboration that aims to “empower social and ecological engagement and support [by] building a collaborative, fair and sustainable economy”. Coinsence is new and only has a small community at the moment, but they seem to have a identified a clever model via which they issue different tokens to represent community currencies, voting rights and asset shares. Tokens can then be allocated by communities to provide incentives for ‘projects’, as well as being used as a means of exchange. These ‘social currencies’ have a limited store of value (making them less prone to hoarding and speculation) since they include high demurrage and transaction fees. The fees can be democratically re-invested into selected community projects. It’s not entirely clear how Coinsence secures the transactions, or if their technology is at all scalable but their model includes a lot of the right ingredients for a vibrant co-operative economy.
• Duniter is a crypto currency software system, which means it provides the ability to create currencies. Again, it’s blockchain based but its’ currency code includes a Universal Dividend (for currency creation and distribution) and is based on a clever concept; a Web of Trust via which each member is recognised (its identity is trusted – not its actions) if they satisfy the WoT rules which require the members to have enough signatures (links) from other members. These signatures (links) expire over time so the WoT is a clever way to ensure that people are who they say they are via social validation.

Then there’s a range of other middy interesting (again, all blockchain based) crypto currencies which are ‘backed’, or at least vaguely related, to other assets like solar panels and mangrove trees:

• Solarcoin is issued to owners of solar PV systems, for free, for every 1MWH (Megawatt hour) of electricity their PV system generates. Anyone can register their solar PV system with the SolarCoin Foundation and a typical 4kW domestic PV system could expect to earn just over 5 SolarCoins a year, every year over the 40 years the project will run. As government support for feed-in tariffs are withdrawn SolarCoin could become an important incentive to help encourage people to adopt greener energy – and/or another means to engage in wild speculation.
• The HCP coin for mangrove trees was helped into life by an ex JP Morgan banker and a guy who runs a “net positive” surf board company that is buying HCP coins to help his company become carbon positive. It’s another novel idea with clear, carbon reduction objectives but with worrying possibilities given a companies ability to ‘cash out’ from their carbon reducing investments.
• There’s not really anything co-operative, or particularly sustainable, about the TIME token but a list of this nature would not be complete without making reference to ChronoBank, who raised $5.4 Billion via their ICO. Aiming to “disrupt the HR / Recruitment industries” with a crypto currency based on the blockchain, they claim that “labour is abundant enough for everyone to have access to it, yet scarce enough to be valuable. It is the most tradeable resource in the real economy. Labour Hour tokens will tokenise this resource. Because they are backed by real labour, they are absolutely inflation-proof and have next to zero volatility” At the time of writing an hour of TIME was worth about $36 but the day before it was worth $32… Looking at the fluctuating value of the token over time seems to slightly undermine their “zero volatility” claim.

If you’re aware of other crypto currencies which are of interest to the co-op economy please let us know in the comments below.

What is clear from this list is that creating crypto currencies does not seem too hard. We can dream up a million ways to ‘back’ or link a currency to something, and there are just as many ways to distribute.

The hard part of currency design seems to be incentivising the type of economic activity which leads to the kind of world we want to live in and avoiding hoarding and speculation. The list above does not seem to include a single currency that is “speculation proof” or many ideas to addresses the speculation issue, other than Coinsence’s mention of high demurrage, which can cause other issues.

What’s wrong with speculation anyway?

Fans of crypto seems to be missing the fundamental point that any increase in value (of any cyrpto currency) is not really “money for free”. It is money we are borrowing (yet again) off the planet and future generations.

OK, so this “money” is not created as interest bearing debt (like most “normal” money) by banks. It is created by human perceptions instead. The global mindset imbues these newly created digital assets with virtual value via our subconscious belief in scarcity and our grotesque affinity for greed.

But when we “cash in” those perceptions by converting our digital coins to GBP or USD and spend them on (often finite) resources like land, or building materials, or solar PV – all of which have an environmental impact – we are using up those resources, quicker than we would have been able to do without crypto currencies.

You could argue that Solarcoins are incentivising the installation of PV, and that is a good thing

but, when their value increases, they are still extorting real tangible, natural, value (things like birds and forests and trees) into a mythical pool of financial value – and ultimately that will only ever speed up the destruction of the natural environment.

So let’s not get too hasty about imagining a scenario where PV is “more than free”. All our actions in the real world have environmental impacts and just because crypto currencies have found a new way to externalise those costs it does not mean we should be slapping ourselves on the back about it! It is our children and grandchildren that we are forcing to pay for this new, naked emperor.

It is essential to keep the true “costs” (including the power consumption issues) in mind when thinking about ethical alternative currencies.

Beyond blockchain – thinking outside the blocks

Of all the current crypto currency options Holo stands out because it based on the Holochain (a more efficient way of encoding transitions)  and it’s currency is not only going to be based on “mutual credit” but its also going to backed by computer processing power. It’s well worth watching this great video from Philip Beadle to get an idea of how blockchain works and the differences between Bitcoin, Etherium and Holochain – especially from an app building point of view.

Holo are just concluding a very successful crowdfunder which aims to provide the ‘bridging technology’ to bring holo into the mainstream. The ‘hosting boxes’ (holo ports) people have bought through the crowdfunder will allow non-technically minded people to simply plug a spare hard drive in to their router to provide storage capacity and processing power on the Holo network.

The Holo network is nothing short of true peer-to-peer. Meaning that users can access each others computers directly, without the need to go via Google’s or Amazon’s servers. In fact, they can host and runs applications on the Holo network, in much the same way as BitTorrent works. This provides incredible opportunities for scaling (as more peers join the network, everyone benefits from ‘the network effect’) and, equally as importantly, the opportunity to re-define how the applications that run on the network are designed to work; it solves the entire “net neutrality” issue completely. Holo, and the people behind it, have designed the Holo network to work in a more “user centric” way than the way the web works today.

The Holo ICO is a very HOT topic. Art Brock, one of the founders of the project, has written about building responsible crypto currencies and agrees that

Cryptocurrencies do not have to be gambling tokens created from nothing. They can be responsibly connected to assets, promises, or real-world value. They don’t have to re-create all the speculative money problems that they were supposed to be solving.

Currencies can be optimised to be a useful means of exchange, or a useful store of value, but rarely work well when trying to be both at the same time. “Holo fuel” (also known as HOT, or Holo Tokens) are designed to provide a medium of exchange on the Holo network. Their ICO requires users to buy HOT with ETH (another crypto currency).

Given that buying in to the Holo ICO with ETH will be at a specific price, we were keen to understand how the value of HOT has been calculated, how it hopes to avoid being linked in value to ETH and other crypto currency prices in the future, and how HOT will avoid suffering from speculation? We put the question to Jean Russell, project lead for the Holo ICO, who answered as follows:

HOT is set as 10k x ETH for the launch. But that is just the initial set. Once the network starts, then 1 HOT = 1 Holo fuel. And Holo fuel is about the value of hosting in Holo.

Surely there will arise an exchange that will convert ETH to Holo fuel, so they will be relational in some way. However, even if the Ethereum system collapses, Holo can continue and the value should not be negatively impacted. We believe that we will be much more than 10,000x faster/cheaper than Ethereum (mostly because that system in some ways was designed to be difficult and slow as part of the security). Our system is designed for scalability and resilience (DHT) so it should get better as it scales. Anti-fragile in fact.

The initial price (and the practical network value the community gives it) will be a gap that speculators can guess at. Thereafter though, it should remain fairly stable as it is really about the asset and the value of that asset in the marketplace.

I can’t give the deep philosophical explanation that Art can, but what I hear from him is that mutual credit along with asset-backing pretty much assures that it can’t be a gambling game of high stakes. Those who invest early when there is high risk of the platform getting off the ground will gain some benefit, yes. But then it should achieve a meta-stable state.

We have high hopes for Holo. With Holochain offering a viable alternative to blockchain it should, naturally, benefit from “second mover advantage” by learning a lot of lessons from its predecessor. The way it has been designed from a holographic, and sociocratic perspective seems to fit the requirements of a co-operative economy which distributes ownership and governance to the lowest possible levels.

If their ICO, which they are calling an “Initial Community Offering“, goes well it will be very interesting to see how this first major alternative to the blockchain based systems develops.

Launching a Co-op Coin?

If Holo is successful and a vibrant peer to peer community emerges, perhaps the Holo Network would be the place to launch a dedicated co-op coin? Much of the hard work, in terms of underlying infrastructure, will have been done so a launching a co-op coin on holo should not be as hard as starting from scratch. The main issues would be achieving agreement between a sufficient number of stakeholders about a co-op coins parameters, mainly it’s issuance and the management of supply and demand.

It seems to make sense that a co-op coin could only ever be spent at co-ops, thereby facilitating Principle 6 (co-operation between co-ops) by giving co-ops a specific currency in which to trade. Mutual credit also seems to provide a sensible means of managing supply and demand.

One idea for co-op currency creation could be to issue a set amount of Co-op Coins each month or year, to every member of every co-op that registers with the coin issuer. This would mean the coins are created and distributed as far and wide as possible, and provide a basic “co-op citizen’s income” whilst, at the same time, it would create a global directory of co-op members – something which would massively benefit the co-op economy.

Another, additional, idea to create co-op coins would be to issue an amount of co-op coins (again, to every member of every co-op that registers with the coin issuer) which have to be ‘spent’ into existence. If these coins could only be allocated to commons-building and co-op projects the Co-op Coin would incentivise the growth of co-ops and the commons. And once Co-op Coins have been “earned” in this way, the workers who completed the projects’ tasks would be able to spend the coins in any co-op, breathing further life into the co-op economy.

There are probably other, better ways to issue Co-op Coins and we’d be interested in your thoughts.

How should we enable the creation and distribution of new currency within the co-op economy?

Avoiding the speculation issue seems the hardest nut to crack. Even if there is no way to “cash out” a Co-op Coin via a currency exchange hungry co-operators might still look to exploit discounts on goods they could buy with co-op coins and sell elsewhere in traditional currencies. The only sure-fire way to avoid speculation seems to be for an economy to be ubiquitous and all encompassing, by providing everything a person needs and a method of transacting that is more efficient than all other options. Designing complimentary currencies, which satisfy the different needs to provide a “store of value” and a “medium of exchange” which work together in efficient symbiosis also seems essential for a sustainable economy.

With the right design it seems clear that a well managed ICO for a Co-op Coin could provide incredible funding opportunities for the co-operative economy. Imagine if the surplus of every co-op was converted into Co-op Coins and allocated to co-op building and commons-creation projects… Together we could create an alternative economic model to the extractive version that exists today; a clear path to a more co-operative world. Ignoring the possibilities of crypto currencies is no longer an option for anyone with an interest in a better future.

Photo by mulberrymint

Originally published in The Open Coop

The post Thinking outside the blocks: What would a co-op coin ICO look like? appeared first on P2P Foundation.

A holochain application is run entirely by the people who use it.
This enables direct communication, without the need for corporate web servers.

For any particular use case, developers can create fit-for-purpose solutions that strike the right balance between minimizing risks, reducing costs, and optimizing speed.

Relative to other distributed application infrastructures such as Blockchain (Bitcoin, Ethereum), Holochain applications operate exponentially faster and cheaper. Our lightweight architecture is perfect even for mobile phones and other low capacity devices.

A series of explanatory videos featuring Arthur Brock. You can read more about the project, in this link: Holochains for distributed data integrity.

How Holo Works

How the Holo ecosystem works

The post What is the difference between Blockchain and Holochain? appeared first on P2P Foundation.

Playing for Team Human is systems thinker, currency designer, and social hacker Arthur Brock. Art joins Douglas to talk about how currency is less a thing you own and more a way of sharing. It’s a conversation that poses a crucial question of both money and cryptocurrencies alike–how might we design new exchanges that embody values of social and environmental betterment, rather than extraction and exploitation?

Rushkoff begins today’s show with a monologue about Instagram’s recent addition of an algorithm that removes mean comments from users’ threads. While on the surface the idea appears to be an attempt by Instagram to quell trolling, Rushkoff questions both the means and intentions. Is Instagram merely building an algorithmically programmed version of “see no evil, hear no evil”… or worse?

Team Human is produced each week thanks to listener subscriptions. Join us on patreon at patreon.com/teamhuman. There you’ll find a variety of subscription levels with exclusive patron rewards.

The music you heard on this show is thanks to the generosity of Mike Watt, R.U. Sirius, Josh Sitronand the Team Human band, and Fugazi.

Photo of Art by Twah Doughtery

Slider Photo: Igor Ovsyannykov

The post Team Human: Arthur Brock Reclaims Currency appeared first on P2P Foundation.

The proposals described in this essay are coming closer to reality, now that Arthur Brock and associates at Ceptr.org, are advancing in the construction of a alternative Holochain.

Contents

• What is a Cryptocurrency?
• Alternate Approach: Parallel Chains with Intrinsic Data Integrity
• Currency Design Principle: Mutual Credit
• A Minimum Viable Cryptocurrency
• More Scalable Security: Notaries + DHT
• Conclusions

Abstract

We identify and clarify the core elements of and describe a new approach to designing such currencies distinct from blockchains – an approach rooted in biomimicry. We explore efficiencies for decentralized data and decision-making and distinguish consensus of distributed process, rather than data in ledgers, at the core. We then illustrate an implementation of a cryptocurrency using these principles and a use case which brings a centuries old practice into the digital era. We address the central vulnerability to this model working at scale, showing how the solution can be built with existing technologies. Finally, we also confront social challenges involved in governance of crypto-systems.

Conclusions

By leveraging Intrinsic Data Integrity to run numerous parallel tamper-proof chains you can enable nodes to do various P2P transactions which don’t actually require group consensus. It is not only possible, but far more scalable to build cryptocurrencies without a global ledger consensus approach or cryptographic tokens. This paper has provided a framework to build a tokenless cryptocurrency, and showed how mutual credit is an appropriate currency issuance method for operating such a cryptocurrency on completely peered chains. Basic PKI with a DHT addresses the obvious vulnerabilities.

First published as an article here. Also, after the original publication they have built the technology.

Read the full article here.

If you would like to comment on this draft, feel free to do so on the google doc version.

Photo by Ars Electronica

The post Essay of the Day: Mutual Credit Cryptocurrencies – Beyond Blockchain Bottlenecks appeared first on P2P Foundation.

Systems will never scale if you require global consensus for local actions by independent agents. For example, I should not have to know where every dollar in the economy is when I want to buy something from you.

Excerpted from Arthur Brock:

“Stop the Nonsensus! (Nonsense Consensus): Systems will never scale if you require global consensus for local actions by independent agents. For example, I should not have to know where every dollar in the economy is when I want to buy something from you. That adds an overhead of ridiculous complexity for something which needs to follow the principle of pushing intelligence and agency to the edges rather than center. Likewise, an atom should be able to bond with another atom (see cartoon) without accounting for status every electron in the universe. However, Bitcoin and blockchains are built around authorized tokens embedded in every transaction/record, which embeds unnecessary complexity and limitations for scalability into every interaction. Tokens are not what makes a decentralized system work, cryptographic signatures and self-validating data structures are.

* Intrinsic Data Integrity:

For a long time, data integrity has been conflated with the hosting, control, and access to the device on which the data is stored. So banks have big firewalls to keep you from hacking in and changing your account balance. But today we have self-validating data structures like hash-chains and Merkle-trees which leave evidence of tampering by breaking structural integrity, cryptographic hash, or counterparty signatures when the data is altered. This makes it possible to distribute the storage and management of data and ensure that the people holding it can’t tamper with it. In other words, you could be an authority to show your own account balance, yet not be able to tamper with your account history. When implemented properly, this is the key to enabling massive scales of storage and throughput by enabling auditable data to be stored anywhere/everywhere instead of requiring agreement on single shared ledger.

* Distributed Process not Consensus:

Let’s learn a bit from tracking how scalable systems in nature and real world get things done. Speakers of a language each carry the means to generate sentences as needed, we don’t store every sentence spoken in some global ledger. Cells each carry a copy of their instruction set (DNA), rather than a record of the state and type of every cell. What you need to distribute in a system of collective intelligence is the ability to distribute reliable processing according to shared agreements. Consensus then becomes something used for to ensure the integrity of the processing, rather than the medium upon which processing is executed. This approach, lets you confirm that your copy of the process is valid, so you can rely on it to work according to the agreed upon rules and proceed authoritatively without having to wait for the rest of the network to validate, verify and update itself with your state.

* Agents not Coins:

Instead of starting with cryptographic coins or tokens as the fundamental thing that exists, start by having the agents/people/organizations (or their signatures and account IDs) be the primary things that exist. When each person has a copy of the process needed to participate, and their records are stored with intrinsic data integrity, that enable two people to perform a transaction without requiring approval or consensus of anyone else. My process audits your transaction chain to make sure you’re in a valid state, yours audits my chain, and either rejects the transaction if it puts someone in an invalid state according to the coded agreements. I know, you have a lot of questions about to make sure this can happen reliably, but I’ll drill into that later.

* Fractal not Global:

You would think that the existence of the web would have taught us already that we can have shared access to pretty reliable, referenceable, information without us all having identical copies of it. Starting by creating a global ledger where each copy has to be in the same state is a totally different problem than having a fractal process for creating and organizing data which can be referenced by anyone wherever that data lives. It can still provide globally accessible agreement about data, but that agreement is constructed from fractally assembled reliable parts instead of requiring each part to reach global (or 51%) agreement to commit each element of data. One of the beautiful outcomes from this is such a massive reduction in the processing and storage requirements that it becomes feasible to run a full node on a mobile phone instead of requiring specialized mining hardware.”

For more, check out the Metacurrency project pages on Medium here.

Photo by Marc_Smith

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Here is a short interview with key questions, watch the video here:

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