Managing Digital Scarcity: Enterprise Cryptocurrency Applications
The internet has evolved into a real time distributed information protocol in that now we interact daily with a global consciousness, we spark digital wildfires spreading anywhere and everywhere instantly and at a cost next to nothing.Though the cost to reproduce and scale bits is next to nothing, the inability to prove transfer of digital ownership has ultimately pushed the cost to the makers. Why is it that we cannot provide a mechanism that can effectively trade and protect scarce digital assets over the Internet? What if we built content on tech that could prove transfer of ownership? How exactly would people and systems be able interact and trust this type of digital ledger?
Enter Smart Contracts, the Bitcoin Blockchain, the Salesforce Platform, Chain.com blockchain APIs and Hadoop for Big Data Analytics.
High Level overview of the above:
Salesforce is a CRM platform that contains all of your Accounts, Opportunities, and Contacts. This is where your sales users are. Real Commercial business users. Everyday. Live here.
The blockchain is a distributed, decentralized settlement database, a replicated shared ledger, a global transaction network and so on.
Apache Hadoop is a distributed database used for bigdata analytics.
So the idea is I can use Hadoop to analyze the blockchain, essentially tapping into a distributed concensus protocol which provides an augmented layer of security and functionality around the entire global B2B BUY and SELL processes. Then use Chain APIs to bring these analytics into Salesforce where all of our business users are.
We are building three things: the mobile interface to the blockchain on Salesforce, the blockchain analysis on Hadoop, the international platform for settlement.
In Salesforce we can manage our customers and our essential business processes. However, often this database often has trouble maintaining data across orgs. The blockchain may be a solution to this problem.
Accounts – We can manage account information in Salesforce and embedd it into the blockchain thereby updating everyones Account information across the different org. For example we could update an address in one account in an org, send it to the blockchain and then have it update in the other orgs.
Opportunity – We can manage who owns what opportunities and embedd it into the blockchain so that their is a consensus and proof of ownership. We can preprograme milestones within Corporations based on growth, asset numbers, # of associated x and have these embedddd in the blockchain.
– It is managing it’s opportunities with these Accounts
– We have quotes automatically generate twice a week on Tuesday and Thursday. Once the quote is approved by the gatekeepers the SmartQuote generates a contract and an order. Once the SmartContract is signed by the gatekeeper with the deliverables determining inputs/outputs, expectations, coded IF statements, the order is uploaded and managed in the blockchain creating a record database of users orders all in real time. The financial elements of the contract are managed in the blockchain and transferred in and out of the org.
– We now can run Hadoop analytics from our Configure and Price data and augement insight into our Supply Side logistics in real-time
– Less risk, more automation of trust.
We can code SmartContracts between companies into the Blockchain. Automated Approvals activated through data called from the Blockchain eg. IF value of x(some address) < or > y (some arbitrary amount) then fire approval; – IF value of x(some arbitrary data) < or > y(some arbitrary amount) then activate z (SmartContract)
We can manage the financial elements of the SmartContracts using the Blockchain eg. IF value of x(some address) < or > y (some arbitrary amount) then generate an invoice; IF value of x(some address) < or > y (some arbitrary amount) then pay y to z (Some other address); IF value of x(some arbitrary data) < or > y (some arbitrary amount) then put an order through.Thus creating Real-time Triple Entry Accounting (Party A, Party B, and everyone else with a copy of the chain, people and machines. Your data is computed into the blockchain using a SHA-256 hash function and we can leverage this append only log as a foundation for an unimaginable number of applications.
BINARY BITS + CRYPTOGRAPHY + NETWORKS
Realtime fields that are updating within Salesforce based on external data sources. commodity prices, stock prices, currency prices,
Taking external databases such as a blockchain and then porting that data into Salesforce using External Data Source API then in realtime updating salesforce fields based on data in the blockchain. We can then stream the data changes to Lightning Components on the Salesforce1 Mobile Application
** PLATFORM AS A UI TO THE BLOCKCHAIN**
WE CAN TRADE:
- PRECIOUS METALS
- SOFT COMMODIITES
- STOCK CERTIFICATES
- REWARD POINTS
- PREPAID MINUTES
- STORED VALUE CARDS
The big question:
UNDER WHAT CONDITIONS IS THE BLOCKCHAIN THE BEST SOLUTION FOR MANAGING DIGITAL ASSETS IN A MARKET?
1.THERE ARE MANY ENTITIES IN THE MARKET
2.ASSETS MOVE FREQUENTLY BETWEEN THESE ENTITIES
3.NEW PARTIES REGULARLY ENTER OR LEAVE THE MARKET
4.THERE ARE DIFFERENT TYPES OF ASSETS INTERACTING
5.ASSETS MOVE DIRECTLY BETWEEN ENTITIES
6.TRANSFER AND SETTLEMENT ARE ONE AND THE SAME – ELIMINATE COUNTERPARTY RISKS
7.EXCHANGES, DERIVATIVES MARKETS, INVESTMENT PRODUCTS WILL PROVIDE LIQUIDITY AND PREDICTABILITY
2 innovations: HD wallet from an Account Level or USER LEVEL A KEYCHAIN With a ONE TO MANY RELATIONSHIP WITH KEYS
Commercial Use Case
EXHIBIT 1 crypto exchange car
Your car has a public key hard coded into it and YOU have a car key which has the private key, the ONLY key that can authorize the signature to start the car.
LETS SAY via bluetooth you are able to approach and enter the car. THIS CAR can dynamically update its public key via the blockchain. We can transfer title of the asset in one transaction on the blockchain.
THE transaction constitutes a change in ownership on the distributed ledger.
ONE TRANSCTION ************** 2 inputs *************** 2 outputs **************
THIS. Couples the transfer of the car and the transfer of payment with no itermediary.
The exchange is PUBLISHED to the blockchain two inputs simultaneously provide a Counterparty risk free transaction and two new outputs.
**********FARM USE CASE *****************
You’re an avid preserve maker and so you buy a smart contract, committing to buying 5 pounds of strawberries if the price goes below $5 a pound. Since the contract is binding and automatically executed, the farm can use it to forecast their revenue for the season.
DATA AND APPLICATION SMART CONTRACT
The Automation of Trust
All of these cryptographic protocols are built using a distributed settlement system and smart contracts. It is a industry agnostic solution.
Ultimately if crypto takes off, all of these smart contracts will need to be managed. Version control, renewals, sending for signature, but where will this management take place?
will the two parties be able to negotiate contracts on different platforms ie one built in ethereum and one with hedgy?
When negotiating a contract are we negotiating the code that is governing the contract.
Lastly, notes from ideo interview with Adam from chain.com
ANALGOUS TO HEROKU
DEVELOPERS CAN BUILD THE INFRASTURCTURE QUICKLY
WHY SHOULD PEOPLE CARE?
more design thinking
With one file “THE BLOCKCHAIN”
one replicated, new transaction! new transaction! concenses
Everyones Ledger Updates
IP For moving money around.
We can make something scarce.
A digital scarcity protocol.
Have a unique piece and it no has intrinsic.
Digitally Sign a song and then one could assert wither they have the original.
Peers on the network GOSSIP.
This transaction just hit me, I’m going to tell you guys about it.
GOSSIPING about transactions.
in ten minutes the TRUTH is put in stone.
We append to the last block which then appends to the next block
so as blocks are chained.
transactions are chained.
blockchain are just inputs and outputs
inputs and outputs aggegrated in blocks
the agreed upons state of the network
anyone and everyone who connects to the network (downloads the blockchain) now has a copy
every transaction is public but not linked to an identity or account
the addresses are like disposable receivers
Bunch of amounts and no names.
CHAIN is making it easy to build with Bitcoin.
Heroku or AWS, or STRIPE for payments, or TWILIO for telecom infra = CHAIN in the Bitcoin Space
BUILD WITH BITCOIN
APPS on top of chain
Send Remittances from Europe to Kenya to the M-PESA
VIRTUAL WORLD – ECONOMIC Activity in the Game
integrate Bitcoin in the game
People building Invoices products
volatility is like spam in email
fluid financial derivatives market
Value getting return for the value that they have helped create.
New way to monetize assets.
We all have wifi hotspots.
How can we meter that?
Blockchain enabled meter from one wifi netowrk to the next.
Tracking usage and then a bill.
MUNICIPAL WIFI METERING WITH BITCOIN.
THE URBAN OPERATING SYSTEM. THIS.
MONETIZE THROUGH THE WIFI NETWORK! with Bitcoin!.