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Blockchain Paves the Way for Trust and Security

We’re getting closer to the COSM!

This is the name of my coming cosmic tech conference in Seattle, October 23-25. It’s also a new security architecture for the net.

The COSM is where we will introduce the new crypto network that will finally put Bitcoin and Ethereum into the shade and lead the way to a Real-Life After Google.

As the remedy for an internet that functions as a cosmic copying machine, where nothing can be trusted, the blockchain is a promethean invention. It changes a tempestuous flood of amorphous data into a coherent unchangeable narrative of sequential events.

Blockchain enforces regular manageable packet sizes and transactions that obviate the chaos of separate processing and verification of every microevent. Blockchain enables a foundation of time-stamped and immutable facts on the internet.

Among these facts has to be the unique identity of the user, coupled biometrically to a device with an electronically sequested private key.

Crypto Gets a Makeover

But the first generation of crypto suffered from nerd paranoia, expressed in an unwillingness to trust anyone even to know your name.

Anonymity is the original sin of the genesis blocks of crypto. To make up for the absence of unique identity, the early iterations of crypto became gigantic kludges where the same software and data had to run on all the nodes.

Ethereum pushed all operations to “smart contracts” on a congested blockchain, which now is running out of gas: costly, slow, vulnerable, and unscalable.

The repeatedly delayed remedy is to break the chain into thousands of randomized “shards,” each with the same essential flaw and a communications hairball. Lots of luck with that.

Verifying transactions, miners jump through petahoops of processing just to prove that they can. Proof of work as proof of trustworthiness ultimately proved inimical to a distributed network. Proof of stake and proof of space and memory are equally centripetal.

Everything migrates to China where crypto becomes an illegal alien, and no one quite knows what is going on.

Hey, I believe in cosmic abundance and Moore’s Law magic. But this model of anonymous users and smart contract mazes failed to scale. The only projects that could incur its costs and pay for its waste were initial coin offerings (ICO), collectively raising some $25 billion.

If you are raising billions, you don’t have to worry about processing costs and mining fees, and you want everybody to know who you are.

The ICOs were a thrilling response to the repression of entrepreneurship and initial public offerings (IPOs) in the US through Sarbanes-Oxley penalties for enterprise, Dodd Frank restrictions on small business lending, and Federal Trade Commission suits and gouges against technology leaders.

But Bitcoin and Ethereum and their ilk chiefly work where fiat moneys collapse, as in Venezuela or Zimbabwe or Silicon Valley IPOs.

The chief hope for such a Cryptocosm is a total financial blowup resulting from a coming $200 trillion overhang of global debt.

Make Way for the COSM

For those who don’t want to wait for a doomsday crypto-lypse, we’ll have a better solution at COSM.

You can’t have security, anonymity, protean addresses, know your customer (KYC), safe transactions, and personal data all at the same time.

In a forthcoming book, promethean in its detail and authority, former IBM peer-to-peer computing guru Giuseppe Gori shows the way out. He explains how the problems of the current generation of cryptocurrencies will give way to unique device identities, unique user pairing by biometrics and digital recognition technology, public key addresses, and private key identities.

Reserving the blockchain for critical storage functions and identities, Gori shows how to eliminate all the mining and third parties and create a blockchain that fulfills the distributed promise of Satoshi’s dream.

We’ll be describing the promise of his vision in future prophecies and at the COSM conference.

In the current cue ball world, where everything is frictionless and transparently hackable, anonymity rules with its inevitable partner of paranoia. The US thinks it has to keep Chinese eyes and routers away from US IP addresses, which it thinks it owns. At the same time, China is erecting a new great firewall against the rest of the world.

As telecom pioneer Dan Berninger explains, this is all ridiculous. We invented IP addresses to enable wide area communications between computers. Now they are being given to watches and heart monitors, kitchen appliances and treadmills.

But what has been invented by engineers can be replaced by the new inventions of the next generation of engineers.

As Gori sums up his solution,

“Reinventing the blockchain is a big endeavor, but must remain conceptually simple, with precise objectives. Stochastic crypto-networks must provide a new distributed operating environment with the Internet as one of its basic components. This crypto-network must provide individual unique identity as a base for individual reputation and freedom of trade. It must provide absolute privacy and strong security of information stored, moved or consumed anywhere. It must provide flexibility for running new applications, new services and convenience for customers today and for the foreseeable future. Ultimately we must provide people with better tools and intelligent devices to value and support each other instead of defending themselves from each other and from the dark side of AI.”

In this pursuit, the COSM will replace IP addresses controlled by governments with public keys controlled by the holders of the private key, which means you and your biometrics.

This system of public and private keys will emerge during the internet reboot as a bottom-up foundation of security first.

The cue ball will give way to the COSM.

The porous pyramid run by monopolies and politicians will succumb to a bottom-up architecture — anchored in the immutable timestamped ledgers of a reinvented blockchain.

Indispensable to an internet of things (IoT), billions of 5G antennas, autonomous cars, global virtual worlds, global money, or international trade and harmony will be an immutable blockchain substrate of trust and security and real identity.

Let’s come to the COSM.

Regards,

George Gilder
Editor, Gilder’s Daily Prophecy

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George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology — and its impact on our lives.

He’s an established investor, writer, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

And he’s certainly no stranger to the financial newsletter...

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