Blockchain & UTM

HI!

@Roryhouston83

1

2

3

4

5

SCOPE

Money

Blockchains

Governance

Social Consensus

UTM

1

2

3

4

5

SCOPE

Money

RAI STONES OF UAP

RAI STONES OF UAP

Monetary requirements:

1. Store of Value

2. Medium of Exchange

3. Unit of Account

Good money properties:

1. Saleable across time

2. Saleable across space

3. Saleable across scale

HARD MONEY

Value Flow

More scarce

Scarce

EASY MONEY

PRICE

=

PRODUCTION

EASY MONEY

EASY MONEY

WHY GOLD?

Physics

1. Hard to mine

2. Constant Supply

3. Chemically very stable

4. Highest Stock:Flow

STOCK : FLOW

:

STOCK : FLOW

Stock(tn) Flow(tn) Stock:Flow SupplyGrowth Price/Oz($) MarketValue

Gold193,000 3,200 60 1.6% $1,495 $8,417,000,000,000

Silver550,000 25,000 22 4.5% $16 $308,000,000,000

STOCK : FLOW

Stock(tn) Flow(tn) Stock:Flow SupplyGrowth Price/Oz($) MarketValue

Gold193,000 3,200 60 1.6% $1,495 $8,417,000,000,000

Silver550,000 25,000 22 4.5% $16 $308,000,000,000

Palladium244 215 1.1 88.1% $1,400 $11,956,000,000

Platinum86 229 0.4 266.7% $800 $2,400,000,000

STOCK : FLOW

STOCK : FLOW

STOCK : FLOW

GOLD

SILVER

MONETARY BASE - $USD

Gold Peg Broken

Hyperinflation

• Rapid devaluation of currency

• 56 events on record

• All easy/unsound money

• Broken social contract

TAKE AWAY

Property outcomes:

1. Saleable across time

2. Saleable across space

3. Saleable across scale

Monetary properties:

1. Store of Value

2. Medium of Exchange

3. Unit of Account

TAKE AWAY

Value Flow

More scarce

Scarce

1

2

3

4

5

SCOPE

Blockchains

WHAT’S A BLOCKCHAIN?

Time (stamping)

WHAT’S A BLOCKCHAIN?

$ Alice $ goes to Bob

Cryptography Nodes (Blockchain)

Miners

WHAT’S A BLOCKCHAIN?

$ Alice $ goes to Bob

Cryptography Nodes (Blockchain)

Miners

A

X Y

B

Z

WHAT’S A BLOCKCHAIN?

$ Alice $ goes to Bob

Compliance/Authentication (fees)

Management (fees)

Accounting (fees)

$ Alice $ goes to Bob

Cryptography Nodes (Blockchain)

Miners

$200B $30B$300B

ASSET CLASS

WHAT’S A BLOCKCHAIN?

WHAT PROBLEM DID BITCOIN SOLVE?

The Double Spend (Digital Scarcity)

WHY BITCOIN HAS VALUE: SCARCITY

WHAT’S A BLOCKCHAIN?

GAME THEORY

WHAT’S A BLOCKCHAIN?

GAME THEORY

WHAT’S A BLOCKCHAIN?

GAME THEORY

Mechanism: Block Reward (12.5 bitcoins)

Incentivised behaviour = Participation (get paid)

Outcome = Increased network security/Decentralisation

WHAT’S A BLOCKCHAIN?

Mechanism: Limited Block Size (#txns)

Incentivised behaviour = Include most valuable txns (fees)

Outcome = Decentralisation & Security

GAME THEORY

WHAT’S A BLOCKCHAIN?

CRYPTOECONOMICS

CRYPTOECONOMICS

ECONOMICS

COMP. SCI./ DISTRIBUTED COMPUTING

GAME THEORY

REGULATION/LAW

BEHAVIOURAL ECONOMICS

CRYPTOGRAPHY

GOVERNANCE/ GROUP PSYCHOLOGY

NETWORK SECURITY

WHAT’S A BLOCKCHAIN?

CRYPTOECONOMICS

Cryptographically Enforced Mechanism Design

• To the application of information security problems

• Micro-incentives

• Rules of participation

• Scalable incentive design

• Scalable social contracts

• Leaderless

WHY? Social scalability

A PARADIGM SHIFT

WHY? Trust-basedmodels < Cryptoeconomic

models

A PARADIGM SHIFT

1

2

3

4

5

SCOPE Governance

BLOCKCHAIN GOVERNANCE

LEADERLESS DEMOCRACY

X1

X2

X3

X4

X6

X5

DecisionFunction

Inputs

Output

BLOCKCHAIN GOVERNANCE

LEADERLESS DEMOCRACY

• Coordination Institution

• Scalable improvement proposition (co-ordination flags)

• Scalable social contracts

• Transparency, Auditability, Direct Accountability

• Off-Chain Vs On-Chain

BLOCKCHAIN GOVERNANCE

OFF-CHAIN

ON-CHAIN

DISCOURSE

SOFTWARE

OFF CHAIN

BLOCKCHAIN GOVERNANCE

ON CHAIN

BLOCKCHAIN GOVERNANCE

ON CHAIN

BLOCKCHAIN GOVERNANCE

1

2

3

4

5

SCOPE

Social Consensus

CAN A SOFTWARE BUG KILL BITCOIN?

NETWORKLAYER(COMPUTERS)

SOCIALLAYER(HUMANS)

Wherethesocialcontractandprotocoldisagree,theprotocoliswrong.

ALWAYS

NETWORKLAYER(COMPUTERS)

SOCIALLAYER(HUMANS)

PROVE IT

NETWORKLAYER(COMPUTERS)

SOCIALLAYER(HUMANS)

BitcoinCash,BitcoinDiamond,BitGold,Dogecoin…..

CVE-2010-5139CVE-2013-3220

PROVE IT

PRICE IS THE PROXY FOR SOCIAL ACCEPTANCE

Hardfork (social divergence)

1

2

3

4

5

SCOPE

UTM

OpenSourceBlockchainNetwork

ANSP/AIS/REG

USS/MPSUSS/MPSUSS/MPS

SDSPSDSPSDSPSWIM data LAANC ‘state’ Registry data

Data Storage Operation validation & Deconfliction Airspace ‘state’ Monetisation engine

Skyy Network Node Server Operation Planning Situational Awareness User/craft registration/mgmt ATC Interface

OperationsCentre

Airspace mgmt & Control Skyy Network Node Server

Wx/Surveillance/Obstacle Data ARCHITECTURE

UTM & BLOCKCHAIN

OpenSourceBlockchainNetwork

AIRSPACE ‘STATE’ TRUTH +

State Transition Function

ARCHITECTURE

UTM & BLOCKCHAIN

Trust-basedmodels < Cryptoeconomic

models

A PARADIGM SHIFT

UTM & BLOCKCHAIN

GAME THEORY

UTM & BLOCKCHAIN

PARTICIPATING ACTORS

Actors:

• The User/Client

• Hardware End Points (aircraft)

• Infrastructure Nodes

• USS’s, SDSP’s

• Manufacturers

• Authorities/ANSP’s

UTM & BLOCKCHAIN

OBJECTIVES

Use Cryptoeconomics to scale social layer. Leveraging:

• Cryptoeconomic Security

• Cryptoeconomic Incentives

• Cryptoeconomic Compliance

UTM & BLOCKCHAIN

TRUST BASED SECURITY

UTM & BLOCKCHAIN

TRUST BASED SECURITY

UTM & BLOCKCHAIN

Cost to attack Bitcoin Network (last week)

Source:https://gobitcoin.io/tools/cost-51-attack/

CRYPTOECONOMIC SECURITY

UTM & BLOCKCHAIN

cryptography

Economics

CRYPTOECONOMIC SECURITY (UTM)

$100B Network Value

$30B Attack Cost

=

Proof of Stake

UTM & BLOCKCHAIN

Incentive:

• Freemium

• Penalties to comply

TRUST BASED UTM INCENTIVES

UTM & BLOCKCHAIN

1. Network Growth = Asset Growth 2. Node Server Operations is a profitable business model 3. Network transactions redistribute wealth

CRYPTOECONOMIC INCENTIVES

=Network Asset

$5.8B miner revenue in 2018

UTM & BLOCKCHAIN

TRUST BASED COMPLIANCE

UTM & BLOCKCHAIN

CRYPTOECONOMIC COMPLIANCE

- All agents are economically aligned

- Programmable Rules of Access:

• Data Rules • Software Rules • Hardware Rules • Middleware Rules

Trust Based Compliance

UTM & BLOCKCHAIN

TRUST BASED SOCIAL SCALABILITY

• Governance by mandate

• Administrative

• Human limitations

• Cooperation due necessity

UTM & BLOCKCHAIN

Rules & Rule Making ServicesTechnology

TRUST BASED SOCIAL LAYER

FIMS Governance

UTM & BLOCKCHAIN

Rules & Rule Making

Technology

Services

UTM & BLOCKCHAIN

CRYPTOECONOMIC SOCIAL LAYER

Governance

CRYPTOECONOMIC SOCIAL LAYER

“The social scalability of an institutional technology depends on how that technology constrains or motivates participation in that institution”

- Nick Szabo

• Network effects • Transparency,

compatibility, oversight

• Incentivised participation (Governance)

UTM & BLOCKCHAIN

your subtitle here

Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated

they live in Bookmarksgrove right at the coast of the Semantics, a large language ocean.

THE AUTONOMOUS FUTURE

Blockchain & UTM

Rory HoustonCo-Founderrory@skyy.network

“What is good for all of us, is good for each of us”