"Centered on the accelerating progress of technology and changes in the mode of human life, which gives the appearance of approaching some essential singularity in the history of the race beyond which human affairs, as we know them, could not continue."—John von Neumann.

The Blockchain was proposed as a Bitcoin protocol nucleus. It included a brilliant innovation, such is open and participants do not need to know or trust each other to interact. The first electronic payment system based on a decentralized peer-to-peer network, without the need for a trusted middleman.

The Problem of Distributed Governance

The transactions can be automatically verified and recorded by the nodes of the network through cryptographic algorithms, without human intervention, central authority, point of control or third party

Blockchain systems typically address the problem of distributed governance through cryptoeconomics, focuses on the design of specific incentives structures to reward the behavior that helps the network function properly.

What is a Blockchain Node?

A node is a device on a blockchain network, that is in essence the foundation of the technology, allowing it to function and survive. Nodes are distributed across a widespread network and carry out a variety of tasks.

The Utopia of Decentralization

Blockchain has the potential to become in a new model foundational of the society, supported by evangelists and radicals promote the blockchain as a more efficient, decentralized and consensus-driven public repository, which can have a number of applications in order to make citizens less governments dependent, yet within a society that is ultimately founded upon the State authority. technological solutions alone cannot suffice. Libertarians and cryptoanarchists hold instead a more extremist position, but standardization and regulation will be much needed.

Obsolete Governance Systems

They are generally inclined to consider the State as an illegitimate, unnecessary and irremediably obsolete depository of power, and they openly encourage the use of the new information technology as a liberating force against the very concept of authority. According to this view, we are at a stage in history when individuals can gradually overcome any centralized political institution through distributed consensus and create the conditions for an idealistic society of equals, characterized by flat, rather than hierarchical, structures.

A Decentralized P2P Ecosystem

Cooperation is a powerful value creating force. Well-coordinated groups of individuals can accomplish together much more than the sum of what they could do on an individual basis. Yet, collective action is a difficult task that cannot be achieved without proper coordination.

A Blockchain Consensus

A Blockchain consensus can be used to govern the process of value distribution in the context of both formal and informal social organisations (e.g. social groups, communities, associations, non-government organizations, companies, corporations, etc.) In lieu of the traditional topdown and centralized coordination mechanisms.

Implementing AI on Blockchain Supernodes

Combining Artificial Intelligence (AI) with Blockchain, unleashes a power of immeasurable reach. In fact, putting the two together can potentially create a totally new paradigm in the human race.

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Financial Singularity

According to the futurists, Raymond Kurzweil, would be "financial singularity" ‐ an event that would change irreversibly the investment industry within 20 years. Financial singularity could be the answer for how a "superintelligence explosion" could be leveraged by a type of artificial intelligence (AI) that is specialized in investments, and impacts the financial industry. To reach the "financial events horizon", we will have to admit that technology will be required to overcome a critical challenge: Could AI be transformed into proactive intelligent agents, like human investors? If the financial singularity happens, we will experience a coexistence transition, where AIs will make human investors' decisions, and then the stage of replacement might commence, with a progressive and massive substitution of humans by autonomous AI systems.

But Who Will Control the Machines?

This August 23, 2019. Huawei brought details AI chips for training and inference, the Ascend 910, a new chipset in its Ascend-Max family optimized for AI model training, and the Ascend 310, an Ascend-Mini series inferencing chip designed to tackle tasks like image analysis, optical character recognition, and object recognition. It also announced MindSpore, a computing framework intended to support AI app development.

"I think the people who will control the machines will control the world of the future," Whitfield Diffie, 2016 Google Turing Award

Financial Crisis and the Ethics of Moral Hazard

After the 2008 financial crisis left a populace distrustful of centralized (“systemically important”) financial firms and markets, and also showed the danger of hiding financial ledgers from public scrutiny. Today, the world is much exposed to data breaches, hacking, fraudulent use of private information, fallible financial institutions, and unnecessarily high costs of intermediation. It is claimed by some that the popularity of bitcoin was partly a people’s response to these problems and an act of defiance.

Is Blockchain Reliable?

Governance of Blockchain is often cited as a critical issue as the technology achieves wider use in different industries. Governance collapses in cryptocurrency Blockchains have become common.

Governance is about who makes the rules and who enforces them. It is about not only who controls the Blockchain but also resolution mechanisms in case of technological collapse, contractual default and crime.

The Facts

According to a global market survey by Juniper Research (2017), 40% of all and 60% of large corporations are considering blockchain deployment during the next 2 to 10 years. Reports by the World Economic Forum (2016, 2017) reveal that more than 30 governments and 90 central banks are currently investing in blockchain, and more than 80% of banks planned to initiate blockchain projects in 2017 and 2018. More than 2,500 blockchain-related patents have been filed since 2013 and currently there are more than 20 consortia of blockchain development, including many financial firms.

Outcome

With the global financial system disruption, a new power will be born, Blockchain nodes —governance, will govern the world, and the singularity —machines, will have come to power.

Sources: 

Blockchain Technology and Decentralized Governance: Is the State Still Necessary? Marcella Atzori, Ph. D.

Nodes

An AI Based SuperNodes Selection Algorithm in BlockChain Networks

The financial singularity is here

Exponential Finance: Ray Kurzweil Stresses Humanity’s ‘Moral Imperative’ in Developing Artificial Intelligence

What is the financial singularity, and will it ever happen?

$1M Turing Award winners advocate for encryption

Germán Malavé
Written By
Germán Malavé
Alternative Finance | Sustainable & Impact Investment | Fintech World | UN SDGs | Sucre.IO Co-Founder & CEO