Blockchain Revolution

Chapter 2: Bootstrapping the Future: Seven Design Principles of the
Blockchain Economy
1
. Interview with Ann Cavoukian, September 2, 2015.
2
. Guy Zyskind, Oz Nathan, and Alex “Sandy” Pentland, “Enigma: Decentralized Computation Platform with
Guaranteed Privacy,” white paper, Massachusetts Institute of Technology, 2015. June 10, 2015. Web. October 3,
2015, arxiv.org/pdf/1506.03471.pdf.
3
. Interview with Ann Cavoukian, September 2, 2015.
4
. Ibid.
5
. Interview with Austin Hill, July 22, 2015.
6
. Interview with Ann Cavoukian, September 2, 2015.
7
. Vitalik Buterin, “Proof of Stake: How I Learned to Love Weak Subjectivity,” Ethereum blog, Ethereum
Foundation, November 25, 2014. Web. October 3, 2015, blog.ethereum.org/2014/11/25/proof-stake-learned-
love-weak-subjectivity.
8
. Dino Mark Angaritis, e-mail attachment, November 27, 2015. He arrived at his calculation by “assuming
hashrate of 583,000,000 Gh/s. (Gh/s = billion hashes /s). There are 600 seconds in 10 minutes. 600*583,000,000
= 349,800,000,000 billion hashes in 10 minutes. That’s 350 Quintillion / 350,000,000,000,000,000,000 / 350
million million billion.”
9
. Proof of burn calls for miners to send their coins to a dead-end address where they become unredeemable. In
exchange for burning these coins, miners gain entrance to a lottery where, presumably, they win back more than
they burned. It’s not a consensus mechanism but a trust mechanism.
10
. Interview with Paul Brody, July 7, 2015.
11
. Franklin Delano Roosevelt, “Executive Order 6102—Requiring Gold Coin, Gold Bullion and Gold
Certificates to Be Delivered to the Government,” The American Presidency Project, ed. Gerhard Peters and John
T. Woolley, April 5, 1933, www.presidency.ucsb.edu/ws/?pid=14611, accessed December 2, 2015.
12
. Interview with Josh Fairfield, June 1, 2015.
13
. Allusion to Bandai’s digital toy designed so that users would take care of it and protect it. It died if no one
tended to it.
14
. Joseph E. Stiglitz, “Lessons from the Global Financial Crisis of 2008,” Seoul Journal of Economics 23(3)
(2010).

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15
. Ernst & Young LLP, “The Big Data Backlash,” December 2013, www.ey.com/UK/en/Services/Specialty-
Services/Big-Data-Backlash; http://tinyurl.com/ptfm4ax.
16
. The type of attack was named after “Sybil,” a pseudonym of a woman diagnosed with dissociative identity
disorder described in a 1973 book of that name. Cat-loving computer scientist John “JD” Douceur popularized
the name in a 2002 paper.
17
. Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System,” www.bitcoin.org, November 1, 2008;
www.bitcoin.org/bitcoin.pdf, section 6, “Incentive.”
18
. Nick Szabo. “Bit gold.” Unenumerated. Nick Szabo. December 27, 2008. Web. October 3, 2015.
http://unenumerated.blogspot.com/2005/12/bit-gold.html.
19
. Interview with Austin Hill, July 22, 2015.
20
. Neal Stephenson, Snow Crash (1992). An allusion to Snow Crash’s virtual world, of which Hiro Protagonist is
the protagonist and hero. Hiro was one of the top hackers of the Metaverse. Kongbucks are like bitcoin: the
franchulates (corporate states, from the combination of franchise and consulate) issue their own money.
21
. Ernest Cline, Ready Player One (New York: Crown, 2011).
22
. Interview with Austin Hill, July 22, 2015.
23
. John Lennon. “Imagine.” Imagine. Producers John Lennon, Yoko Ono, and Phil Spector. October 11, 1971.
www.lyrics007.com/John%20Lennon%20Lyrics/Imagine%20Lyrics.html.
24
. Andy Greenberg. “Banking’s Data Security Crisis.” Forbes. November 2008. Web. October 3, 2015.
www.forbes.com/2008/11/21/data-breaches-cybertheft-identity08-tech-cx_ag_1121breaches.html.
25
. Ponemon Institute LLC, “2015 Cost of Data Breach Study: Global Analysis,” sponsored by IBM, May 2015,
www-03.ibm.com/security/data-breach.
26
. Ponemon Institute LLC, “2014 Fifth Annual Study on Medical Identity Theft,” sponsored by Medical Identity
Fraud Alliance, February 23, 2015, Medidfraud.org/2014-fifth-annual-study-on-medical-identity-theft.
27
. Interview with Andreas Antonopoulos, July 20, 2015.
28
. Michael Melone, “Basics and History of PKI,” Mike Melone’s blog, Microsoft Corporation, March 10, 2012.
Web. October 3, 2015. http://tinyurl.com/ngxuupl.
29
. “Why Aren’t More People Using Encrypted Email?,” Virtru blog, Virtru Corporation, January 24, 2015. Web.
August 8, 2015. www.virtru.com/blog/aren’t-people-using-email-encryption, August 8, 2015.
30
. Interview with Andreas Antonopoulos, July 20, 2015.
31
. Interview with Austin Hill, July 22, 2015.
32
. Ibid.
33
. Interview with Ann Cavoukian, September 2, 2015.
34
. Ibid.
35
. David McCandless, “Worlds Biggest Data Breaches,” Information Is Beautiful, David McCandless, October 2,
2015. Web. October 3, 2015. www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-
hacks/.
36
. Interview with Haluk Kulin, June 9, 2015.
37
. Interview with Austin Hill, July 22, 2015.
38
. Coinbase privacy policy, www.coinbase.com/legal/privacy, November 17, 2014, accessed July 15, 2015.
39
. See Don Tapscott and David Ticoll, The Naked Corporation: How the Age of Transparency Will Revolutionize
Business (New York: Simon & Schuster, 2003).
40
. Interview with Haluk Kulin, June 9, 2015.
41
. ProofofExistence.com, September 2, 2015; www.proofofexistence.com/about/.
42
. Interview with Steve Omohundro, May 28, 2015.
43
. Interview with Andreas Antonopoulos, July 20, 2015.
44
. Ibid.
45
. Interview with Stephen Pair, June 11, 2015.
46
. Edella Schlarger and Elinor Ostrom, “Property-Rights Regimes and Natural Resources: A Conceptual
Analysis,” Land Economics 68(3) (August 1992): 249–62; www.jstor.org/stable/3146375.
47
. Interview with Haluk Kulin, June 9, 2015.
48
. John Paul Titlow, “Fire Your Boss: Holacracy’s Founder on the Flatter Future of Work,” Fast Company,
Mansueto Ventures LLC, July 9, 2015; www.fastcompany.com/3048338/the-future-of-work/fire-your-boss-

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holacracys-founder-on-the-flatter-future-of-work.
49
. World Bank, September 2, 2015; www.worldbank.org/en/news/press-release/2015/04/15/massive-drop-in-
number-of-unbanked-says-new-report.
50
. “Bitcoin Powers New Worldwide Cellphone Top-Up Service,” CoinDesk, February 15, 2015;
www.coindesk.com/bitcoin-powers-new-worldwide-cellphone-top-service/, accessed August 26, 2015. FAQs,
BitMoby.com, mHITs Ltd., n.d.; www.bitmoby.com/faq.html, accessed November 14, 2015.
51
. Interview with Gavin Andresen, June 8, 2015.
52
. Interview with Austin Hill, July 22, 2015.
53
. Jakob Nielsen, “Nielsen’s Law of Internet Bandwidth,” Nielsen Norman Group, April 5, 1998;
www.nngroup.com/articles/law-of-bandwidth/, accessed August 26, 2015.
54
. Matthew Weaver, “World Leaders Pay Tribute at Auschwitz Anniversary Ceremony,” The Guardian, Guardian
News and Media Limited, January 27, 2015. Web. September 5, 2015,
http://www.theguardian.com/world/2015/jan/27/-sp-watch-the-auschwitz-70th-anniversary-ceremony-unfold.