by Don Tapscott
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-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.
Chapter 3: Reinventing Financial Services
1. Estimates range from $87.5 million to $112 million (IMF).
2. https://ripple.com/blog/the-true-cost-of-moving-money/.
3. Interview with Vikram Pandit, August 24, 2015.
4. www.nytimes.com/2015/07/12/business/mutfund/putting-the-public-back-in-public-finance.html.
5. www.worldbank.org/en/topic/poverty/overview.
6. http://hbswk.hbs.edu/item/6729.html.
7. Interview with Hernando de Soto, November 27, 2015.
8. http://corporate.westernunion.com/About_Us.html.
9. Interview with Erik Voorhees, June 16, 2015.
10. Paul A. David, “The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox,” Economic History of Technology 80(2) (May 1990): 355–61.
11. Joseph Stiglitz, “Lessons from the Global Financial Crisis,” revised version of a lecture presented at Seoul National University, October 27, 2009.
12. www.finextra.com/finextra-downloads/newsdocs/The%20Fintech%202%200%20Paper.pdf.
13. www.bloomberg.com/news/articles/2015-07-22/the-blockchain-revolution-gets-endorsement-in-wall-street-survey.
14. www.swift.com/assets/swift_com/documents/about_swift/SIF_201501.pdf.
15. https://lightning.network/.
16. Interview with Chris Larsen, July 27, 2015.
17. Interview with Austin Hill, July 22, 2015.
18. Interview with Blythe Masters, July 27, 2015.
19. Ibid.
20. Ibid.
21. Ibid.
22. https://bitcoinmagazine.com/21007/nasdaq-selects-bitcoin-startup-chain-run-pilot-private-market-arm/.
23. Interview with Austin Hill, July 22, 2015.
24. July 2015 by Greenwich Associates; www.bloomberg.com/news/articles/2015-07-22/the-blockchain-revolution-gets-endorsement-in-wall-street-survey.
25. Blythe Masters, from Exponential Finance keynote presentation: www.youtube.com/watch?v=PZ6WR2R1MnM.
26. https://bitcoinmagazine.com/21007/nasdaq-selects-bitcoin-startup-chain-run-pilot-private-market-arm/.
27. Interview with Jesse McWaters, August 13, 2015.
28. Interview with Austin Hill, July 22, 2015.
29. https://blog.ethereum.org/2015/08/07/on-public-and-private-blockchains/.
30. Interview with Chris Larsen, July 27, 2015.
31. Interview with Adam Ludwin, August 26, 2015.
32. Interview with Blythe Masters, July 27, 2015.
33. Interview with Eric Piscini, July 13, 2015.
34. Interview with Derek White, July 13, 2015.
35. Ibid.
36. Later, Bank of America, BNY Mellon, Citi, Commerzbank, Deutsche Bank, HSBC, Mitsubishi UFJ Financial Group, Morgan Stanley, National Australia Bank, Royal Bank of Canada, SEB, Société Générale, and Toronto Dominion Bank; www.ft.com/intl/cms/s/0/f358ed6c-5ae0-11e5-9846-de406ccb37f2.html#axzz3mf3orbRX; www.coindesk.com/citi-hsbc-partner-with-r3cev-as-blockchain-project-adds-13-banks/.
37. http://bitcoinnewsy.com/bitcoin-news-mike-hearn-bitcoin-core-developer-joins-r3cev-with-5-global-banks-including-wells-fargo/.
38. http://www.linuxfoundation.org/news-media/announcements/2015/12/linux-foundation-unites-industry-leaders-advance-blockchain.
39. www.ifrasia.com/blockchain-will-make-dodd-frank-obsolete-bankers-say/21216014.article.
40. http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PG01&s1=20150332395&OS=20150332395&RS=20150332395?p=cite_Brian_Cohen_or_Bitcoin_Magazine.
41. www.youtube.com/watch?v=A6kJfvuNqtg.
42. Interview with Jeremy Allaire, June 30, 2015.
43. Ibid.
44. Ibid.
45. Ibid.
46. Heralded as another sign the industry was “growing up”; www.wsj.com/articles/goldman-a-lead-investor-in-funding-round-for-bitcoin-startup-circle-1430363042.
47. Interview with Jeremy Allaire, June 30, 2015.
48. Interview with Stephen Pair, June 11, 2015.
49. Alex Tapscott has consulted to Vogogo Inc.
50. Interview with Suresh Ramamurthi, September 28, 2015.
51. E-mail correspondence with Blythe Masters, December 14, 2015.
52. Interview with Tom Mornini, July 20, 2015.
53. These ideas were originally explored in The Naked Corporation by Don Tapscott and David Ticoll.
54. Ibid.
55. www.accountingweb.com/aa/auditing/human-errors-the-top-corporate-tax-and-accounting-mistakes.
56. Ibid.
57. Interview with Simon Taylor, July 13, 2015.
58. Ibid.
59. Interview with Jeremy Allaire, June 30, 2015.
60. Interview with Christian Lundkvist, July 6, 2015.
61. Interview with Austin Hill, July 22, 2015.
62. Interview with Eric Piscini, July 13, 2015.
63. www2.deloitte.com/us/en/pages/about-deloitte/articles/facts-and-figures.html.
64. Interview with Eric Piscini, July 13, 2015.
65. Ibid.
66. Interview with Tom Mornini, July 20, 2015.
67. Ibid.
68. www.calpers.ca.gov/docs/forms-publications/global-principles-corporate-governance.pdf.
69. Interview with Izabella Kaminska, August 5, 2015.
70. http://listedmag.com/2013/06/robert-monks-its-broke-lets-fix-it/.
71. The Right to Be Forgotten Movement is gaining steam, particularly in Europe: http://ec.europa.eu/justice/data-protection/files/factsheets/factsheet_data_protection_en.pdf.
72. www.bloomberg.com/news/articles/2014-10-07/andreessen-on-finance-we-can-reinvent-the-entire-thing.
73. http://www.nytimes.com/2015/12/24/business/dealbook/banks-reject-new-york-city-ids-leaving-unbanked-on-sidelines.html.
74. Interview with Patrick Deegan, June 6, 2015.
75. Ibid.
76. https://btcjam.com/.
77. Interview with Erik Voorhees, June 16, 2015.
78. www.sec.gov/about/laws/sa33.pdf.
79. http://www.wired.com/2015/12/sec-approves-plan-to-issue-company-stock-via-the-bitcoin-blockchain/.
80. http://investors.overstock.com/mobile.view?c=131091&v=203&d=1&id=2073583.
81. https://bitcoinmagazine.com/21007/nasdaq-selects-bitcoin-startup-chain-run-pilot-private-market-arm/.
82. James Surowiecki, The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations (New York: Doubleday, 2014).
83. www.augur.net.
84. From e-mail exchange with the Augur team: Jack Peterson, Core Developer; Joey Krug, Core Developer; Peronet Despeignes, SpecialOps.
85. Interview with Andreas Antonopoulos, December
8, 2014.
86. Interview with Barry Silbert, September 22, 2015.
87. Interview with Benjamin Lawsky, July 2, 2015.
Chapter 4: Re-architecting the Firm: The Core and the Edges
1. Interview with Joe Lubin, July 13, 2015.
2. Companies like Apple and Spotify will be able to use the new platform as well. The goal is that it will be owned by many entities in the music industry, especially artists. It will likely be easier to earn tokens if you create content than if you just resell someone else’s content.
3. https://slack.com/is.
4. https://github.com.
5. Coase wrote: “A firm has a role to play in the economic system if . . . [t]ransactions can be organized within the firm at less cost than if the same transactions were carried out through the market. The limit to the size of the firm [is reached] when the costs of organizing additional transactions within the firm [exceed] the costs of carrying the same transactions in the market.” As cited in Oliver Williamson and Sydney G. Winter, eds., The Nature of the Firm (New York and Oxford: Oxford University Press, 1993), 90.
6. Oliver Williamson, “The Theory of the Firm as Governance Structure: From Choice to Contract,” The Journal of Economic Perspectives 16(3) (Summer 2002) 171–95.
7. Ibid.
8. Peter Thiel with Blake Masters, Zero to One: Notes on Startups, or How to Build the Future (New York: Crown Business, 2014).
9. Lord Wilberforce, The Law of Restrictive Trade Practices and Monopolies (Sweet & Maxwell, 1966), 22.
10. Interview with Yochai Benkler, August 26, 2015.
11. John Hagel and John Seely Brown, “Embrace the Edge or Perish,” Bloomberg, November 28, 2007; www.bloomberg.com/bw/stories/2007-11-28/embrace-the-edge-or-perishbusinessweek-business-news-stock-market-and-financial-advice.
12. Interview with Vitalik Buterin, September 30, 2015.
13. Interview with Andreas Antonopoulos, July 20, 2015.
14. The one exception is the Way Back Machine, which allows you to get a deeper history.
15. Oliver E. Williamson, “The Theory of the Firm as Governance Structure: From Choice to Contract,” Journal of Economic Perspectives 16 (3), Summer 2002.
16. Ibid.
17. Michael C. Jensen and William H. Meckling, “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure,” Journal of Financial Economics 305 (1976): 310–11 (arguing that the corporation—or, more generally, a firm—is a collection of consensual relationships among shareholders, creditors, managers, and perhaps others); see also generally, Frank H. Easterbrook and Daniel R. Fischel, The Economic Structure of Corporate Law (Cambridge, Mass.: Harvard University Press, 1991).
18. Vitalik Buterin, “Bootstrapping a Decentralized Autonomous Corporation: Part I,” Bitcoin Magazine, September 19, 2013; https://bitcoinmagazine.com/7050/bootstrapping-a-decentralized-autonomous-corporation-part-i/.
19. Nick Szabo, “Formalizing and Securing Relationships on Public Networks,” http://szabo.best.vwh.net/formalize.html.
20. http://szabo.best.vwh.net/smart.contracts.html.
21. Interview with Aaron Wright, August 10, 2015.
22. Cryptographers started using “Alice” and “Bob” instead of “Party A” and “Party B” as a convenient way to describe exchanges between them, lending some clarity and familiarity to discussions about computational encryption. The practice is said to date from Ron Rivest’s 1978 work, “Security’s Inseparable Couple,” Communications of the ACM. Network World, February 7, 2005; www.networkworld.com/news/2005/020705widernetaliceandbob.html.
23. GitHub.com, January 3, 2012; https://github.com/bitcoin/bips/blob/master/bip-0016.mediawiki, accessed September 30, 2015.
24. www.coindesk.com/hedgy-hopes-tackle-bitcoin-volatility-using-multi-signature-technolog/.
25. https://books.google.ca/books?id=VXIDgGjLHVgC&pg=PA19&lpg=PA19& dq=a+workman+moves+from+department+Y+to+department+X&source=bl&ots=RHb0qrpLz_&sig=LaZFqatLYllrBW8ikPn4PEZ9_7U&hl=en&sa=X&ved=0ahUKEwjgyuO2gKfKAhUDpB4KHb0JDcAQ6AEIITAB#v=onepage&q=a %20workman%20moves%20from%20department%20Y%20to%20department% 20X&f=false.
26. Elliot Jaques, “In Praise of Hierarchy,” Harvard Business Review, January–February 1990.
27. Interview with Yochai Benkler, August 26, 2015.
28. Tapscott and Ticoll, The Naked Corporation.
29. Werner Erhard and Michael C. Jensen, “Putting Integrity into Finance: A Purely Positive Approach,” November 27, 2015, Harvard Business School NOM Unit Working Paper No. 12-074; Barbados Group Working Paper No. 12-01; European Corporate Governance Institute (ECGI)—Finance Working Paper No. 417/2014.
30. Bank of America’s Average Return on Equity since December 31, 2009, is less than 2 percent; https://ycharts.com/companies/BAC/return_on_equity.
31. Interview with Steve Omohundro, May 28, 2015.
32. E-mail interview with David Ticoll, December 9, 2015.
33. Interview with Melanie Swan, September 14, 2015.
34. https://hbr.org/1990/05/the-core-competence-of-the-corporation.
35. Michael Porter, “What Is Strategy?,” Harvard Business Review, November–December 1996.
36. Interview with Susan Athey, November 20, 2015.
Chapter 5: New Business Models: Making It Rain on the Blockchain
1. To prevent spam, it’s possible that new public keys (personas) with low reputation will have to pay a certain fee to list. The fee can be moved to an escrow contract and be returned once the persona has successfully rented their property out, or perhaps after some period of time elapses and they decide to delete their listing. Large data items like pictures will be kept on IPFS or Swarm, but the hash of the data and the information identifying the persona that owns the data will be kept on the blockchain inside the bAirbnb contract.
2. Perhaps using the Whisper protocol.
3. Formatted and annotated with the Hypertext Markup Language (HTML).
4. David McCandless, “World’s Biggest Data Breaches,” Information Is Beautiful, October 2, 2015; www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-hacks/, accessed November 27, 2015.
5. As defined by Vitalik Buterin: “Cryptoeconomics is a technical term roughly meaning ‘it’s decentralized, it uses public key cryptography for authentication, and it uses economic incentives to ensure that it keeps going and doesn’t go back in time or incur any other glitch.’” From “The Value of Blockchain Technology, Part I,” https://blog.ethereum.org/2015/04/13/visions-part-1-the-value-of-blockchain-technology/.
6. www.youtube.com/watch?v=K2fhwMKk2Eg.
7. http://variety.com/2015/digital/news/netflix-bandwidth-usage-internet-traffic-1201507187/.
8. Interview with Bram Cohen, August 17, 2015.
9. Stan Franklin and Art Graesser, “Is It an Agent, or Just a Program? A Taxonomy for Autonomous Agents,” www.inf.ufrgs.br/~alvares/CMP124SMA/IsItAnAgentOrJustAProgram.pdf.
10. Ibid., 5.
11. Vitalik Buterin, https://blog.ethereum.org/2014/05/06/daos-dacs-das-and-more-an-incomplete-terminology-guide/. “Autonomous agents are on the other side of the automation spectrum; in an autonomous agent, there is no necessary specific human involvement at all; that is to say, while some degree of human effort might be necessary to build the hardware that the agent runs on, there is no need for any humans to exist that are aware of the agent’s existence.”
12. Ibid.
13. Technical detail: Because storing data directly on blockchains is very expensive, it’s more likely that there is a hash of the data, and the data itself will be on some other decentralized data storage network like Swarm or IPFS.
14. Interview with Vitalik Buterin, September 30, 2015.
15. Interview with Andreas Antonopoulos, July 20, 2015.
16. Ibid.
17. Don Tapscott and Anthony D. Williams, Wikinomics: How Mass Collaboration Changes Everything (New York: Portfolio/Penguin, 2007). Wikinomics defined seven such business models. The list has been ex
tended here.
18. Commons-based Peer Production is a term developed by Harvard Law professor Yochai Benkler in the seminal article “Coase’s Penguin,” The Yale Law Journal, 2002; www.yale.edu/yalelj/112/BenklerWEB.pdf.
19. http://fortune.com/2009/07/20/information-wants-to-be-free-and-expensive/.
20. Interview with Yochai Benkler, August 26, 2015.
21. Interview with Dino Mark Angaritis, August 7, 2015.
22. Andrew Lih, “Can Wikipedia Survive?,” The New York Times, June 20, 2015; www.nytimes.com/2015/06/21/opinion/can-wikipedia-survive.html.
23. http://techcrunch.com/2014/05/09/monegraph/.
24. http://techcrunch.com/2015/06/24/ascribe-raises-2-million-to-ensure-you-get-credit-for-your-art/.
25. www.nytimes.com/2010/04/15/technology/15twitter.html?_r=0.
26. http://techcrunch.com/2014/05/09/monegraph/.
27. www.verisart.com/.
28. http://techcrunch.com/2015/07/07/verisart-plans-to-use-the-blockchain-to-verify-the-authencity-of-artworks/.
29. Interview with Yochai Benkler, August 26, 2015.
30. Interview with David Ticoll, August 7, 2015.
31. Interview with Yochai Benkler, August 26, 2015.
32. www.nytimes.com/2013/07/21/opinion/sunday/friedman-welcome-to-the-sharing-economy.html?pagewanted=1&_r=2&partner=rss&emc=rss&.
33. Sarah Kessler, “The Sharing Economy Is Dead and We Killed It,” Fast Company, September 14, 2015; www.fastcompany.com/3050775/the-sharing-economy-is-dead-and-we-killed-it#1.
34. “Prosumers” is a term invented by Alvin Toffler in Future Shock (1980). In The Digital Economy (1994) Don Tapscott developed the concept and notion of “prosumption.”
35. Interview with Robin Chase, September 2, 2015.
36. https://news.ycombinator.com/item?id=9437095.
37. This scenario was originally explained by Don Tapscott in “The Transparent Burger,” Wired, March 2004; http://archive.wired.com/wired/archive/12.03/start.html?pg=2%3ftw=wn_tophead_7.
38. Interview with Yochai Benkler, August 26, 2015.
39. Called “the wiki workplace” in Wikinomics.
40. CAPTCHA stands for “Completely Automated Public Turing Test to Tell Computers and Humans Apart.”
41. Interview with Joe Lubin, July 13, 2015.
42. Ibid.
Chapter 6: The Ledger of Things: Animating the Physical World