Blockchain as Non-Financial Currency: Reengineering our Data Consumption – #HaveMyData

Professor Olinga Taeed PhD FIoD *

Director, Centre of Citizenship, Enterprise and Governance

Council Member and Expert Advisor, Chinese Ministry of Commerce ‘China E-Commerce Blockchain Committee’

Data as a Non-Finanial Currency

This personal data thing, it’s just not working. Some claim that corporates want our data so they can sell stuff to us and governments want our data to control us. But companies retort that if you expect your commercial product to be free, and help create their jobs, economy and services to society, they must be allowed to get to know you to help (others) target you better. Like Google and their gmail, Facebook and their WhatsApp, bankers will tell you that free banking forced them to develop other more convoluted instruments that eventually ruined the world in 2008. Similarly, Sovereign States have a responsibility to protect their population and encourage positive social structures – so they see no problem with tracking our movements, rewarding good behaviours and identifying bad actors. Faced with 1.4 billion population, China openly uses a social credit system and defies ‘Land of the Free’ western ideology that hails individual rights preferring to protect the corpus not the few.

We have become obsessed with our personal data which is in the middle of this battleground but let’s face it, GDPR has failed – nothing has changed except we inanely press more cookie policy buttons and new T&C’s daily. We are happy to be in a selfless open and more sharing society, believe in open data, open source, open banking, but don’t see the incongruency with the rather self centred #MyDataMyWay. Things are set to become even more selfcentric – in blockchain we want to track your data to reward ourselves and to withhold our data if we’re not. Last month I sat in Shanghai whilst an entrepreneur pitched me with a system to token reward contributors of their medical data to resolve long term illness. STOP – what? So you would rather people die than share your data which is of no value to you whatsoever? Even if no remedy was found, your data would have helped create jobs and bring income to their families. So why have we become so possessive with our data and isn’t it misaligned to the open sharing world we are trying to create?

Tigris ART Celtic Bear

I think the issue is that we mistakenly think of data as a tangible hard asset like money, gold, land … things we can lose and others gain. Actually it’s not – data shows all the hallmarks of an intangible asset, a subject which I have studied for over a decade. Like all intangible non-financial assets, data value is dependent on the holder; you can’t spend it at Starbucks but it can be invaluable in the hands of others. Data transactions are directional – I love you doesn’t mean you love me. Indeed like love, happiness and hope, it is infinitesimally replenishable – you create more data tomorrow – you haven’t lost the asset by giving it.  Afterall we don’t stop smiling at a beggar because we think they’ve taken something from us? By smiling we have given them information about ouirselves – we have told them something about how we feel, the Holy Grail of personal data. We are happy to share with others on social media all about us, our inner beliefs, our core values, and then we’re upset that companies, governments, and others use it to understand or manipulate more efficiently? Doesn’t that happen every day with colleagues, friends, family when we share ourselves with them? What is it that we have lost?

If the dollar is the currency of financial value, I have wanted to know what is the currency of non-financial value. For years I promoted sentiment as the new currency of the millennium but in reality it has become impossible with current technology to come to a consensus on how to measure it. And if you can’t measure, you can’t bill it so all attempts to improve the world based on impact have hitherto failed. In the UK Social Value 2012, UK Slavery Act 2015, 2% CSR Laws in India, Indonesia and Mauritius, most United Nations MDG (and now SDG) initiatives, etc … the world is no better place; data is manipulated to be compliant, with honesty, integrity and compassion the ultimate loser. Data, however, is indeed universally measurable and thus a much better proxy to our intentions. What if we dispense with the misnomer that we can hold back the personal data ocean, and focus on the data transaction. I would be happy for my data to be used by governments, by corporates, by anyone if in exchange they agree to donate their upside (profits, tax, revenues, whatever) to civil society and undertake not to harm anyone in the process, including myself. To do this we would need an immutable ledger to track the use of our data – to tokenise not for personal gain but for societal gain. If you don’t want to surrender your information (which you cannot use in any case) then that is also fine … but don’t expect to receive the upside from the public and private interventions. Only blockchain can do this and provide the transparency for challenges.

A key differentiator of non-financial transaction is the basis on a social contract – eg in a relationship “you can have my love IF you make me happy, do not harm me or my children” – what we would call a smart contract with social dependencies. Intellectual Property, another intangible, has developed systems like Creative Commons which depend on simple attributes to safeguard the use; something very similar could be developed for our data. Permission to use our data, like a donor card, can be tokenized and withdrawn retrospectively demonstrating our alignment to corporate policy or government strategy, something we define as a Microshare Token. Making data consumption measurable, whether by corporates, governments  or NGO’s makes the impact actionable.

dna__14_by_tigris_ta_eed__female__by_deepwarmdreaming2_dd5oifc

So in straight forward terms, what am I saying? Here is my data, please use it to get to know me. Try not to harm me …  and if you promise to use it for good, then I trust you with my data, my thoughts, my life, my hopes and my ambitions. I don’t wish to build a Mexican Wall of my life to repel all those seeking to know me whether for good or not.  It’s not my data, I will share it with you freely as I share my love, my happiness and my thoughts. Because I share it doesn’t mean I’ve lost it – I have new data tomorrow representing the new me. It is ever lasting, tomorrow I will generate more love, more happiness and more data. It does not belong to me, I give my IP to you freely to make the world better. Yes you made money by knowing me, or knowing me will make me more vulnerable to political influence. I’m happy for you. I hope it makes the world a better place. So don’t pay me, pay society… give them the money you would have given me for my data to others who need it. That is why data and blockchain are a perfect mixture. It’s a trustless system where we can share our data, transparently track it, contributing to a decentralized collective responsibility to be distributed to whoever needs it.

So let us put our data on the blockchain, not always insist on payment or recognition, but whomsoever uses the big data agrees by the principles of honesty, integrity, and respect of all those who put it there. And on our behalf, they agree to pay a percentage of the value they create from it to others … a social tax, a CSR, … and this we can track … through the blockchain, and permissioned through a token. Then it is a matter of compliance and not of ownership of our data. Companies decide which charities they pay, say 19% of their profits, and governments can give us 19% tax relief for using our data. Will this work and does anyone care? A straw poll of my children has swayed from my daughter Tigris’s condemnation of what I’m proposing, to my son Vien and spouse Elizabeth who use data to make their life seamless so find data intrusion of benefit in specific situations, to my partner’s daughter Alayna ambivalence “I don’t really care”. A blockchain data system could accommodate these broad spectrum of views.

 

* Opinions in this article are strictly my own. Art work by Tigris Ta’eed

Procuring with our Values

In our daily lives we procure not with money, but with our values. We buy cars that bring us ‘joy’, purchase clothes that ‘empower’, acquire services that make us ‘happy’ … and reject offers that do not match our ‘hopes’.  Institutional procurement is moving in the same direction – we no longer decide only on price, speed and quality … but factor in sustainability, modern slavery, and social value. The brands we represent can no longer afford to associate with brands that are not aligned to our values; because of the transparency afforded by social media these intangible assets can decimate our tangible assets in a heartbeat.

The decision metric of procurement is not the just the dollar, but how aligned we are to those we procure from and with. When we decide to cut 3% from or budgets to increase shareholder value, the likelihood is that a community suffers, and worst still across multiple layers in the global supply chain others enter into slavery conditions. Because of you, some will end their lives in abject poverty, and others will celebrate life. Your decisions can lead to the ultimate sacrifice – in your hands is the power that someone lives or dies.

Whether the tender is for stationary or a billion dollar bridge, the future of procurement is changing. Governments already recognise that it is the single greatest instrument to achieve national objectives, enacting laws to align their suppliers with their values. It is surely time for procurement professionals to break away from the equivalence to the mundane world of accountants, auditors and actuaries, but to take our place at the top table in driving world change.

The 4th industrial revolution has provided us with a single instrument called Blockchain that can simultaneously measure, transact and delivery both financial and non-financial value transparently and at scale. This digital technology enables us to establish structures for good by making our financial decisions contingent on our institution’s alignment to a set of non-financial values. If we are being brave, we could involve AI to direct our decisions or to even fully automate the process, bypassing unfair or corrupt procurement which is prevalent wherever scale is involved. Furthermore, through tokenisation every single product, process, project, organisation or even person which is part of procurement can be fully aligned to all the stakeholders in our organisation – shareholders, customers, suppliers, government, environment, staff and the communities we serve.

Further blockchain related reading:

GENERAL (transparency)

TECHNICAL (english) (chinese)

Seratio生态圈

一段旅程的终点,即是新征程的起点

总览

在2018年第三季度末,非营利性组织“公民、企业和治理研究中心(CCEG)”的Seratio生态系统将达成其MVP(最小可行产品)阶段,并准备于第四季度开始和来自世界不同城市、地区和国家的重要合作伙伴进行试运营。自2011年5月起至今,我们砥砺前行已7年之久,为(推动社会中的)“正面价值”构建基础,藉此我们可以秉承内心深处的信念,在人生旅途中将其作为指引。通过创造一种可以代表无形价值的数字资产,我们可以实现用手机端的AI(人工智能)机器人来协助我们与组织、产品、流程甚至人之间的互动,这一切将取决于它们的溯源结果以及它们与我们自身价值观的相符程度。商家将可以针对不同的社会群体采用不同程度的激励办法来吸引与自身的企业价值最为契合的社会群体。(注:例如,星巴克目前希望让自己的企业形象更趋于亲非洲裔社群;在美国,相当一部分企业曾支持NRA(美国步枪协会),而今它们希望与其保持距离)。我们还将能够用我们的非金融价值通证工具与具备金融价值的资产进行交易。

在全球市场范围内与各公共事业、私营企业、民间组织和社会群体的合作与整合过程中,Seratio生态系统将由其参与者们通过一个分布式自治基金(DAF)来进行管理,它将引入其它可代表非政府组织(NGOs)的DAO(组织)架构,不论规模大小。我们是一个拥有超过12万名参与者的国际化社群,已有来日可期的愿景,而下一步计划是关于市场需求、可扩展性应用以及职业运营交付,以便让我们去实现我们的共同目标:建立这样一个立足于可持续性社会影响力的世界、一个可以基于整体价值优化进行交易的世界,在其间金融和非金融价值将同等重要,并由个体和集体价值观共同驱动。

漫漫征程(2011-2018)

这段旅程始于2011年5月,我们创建了影响力数字化的测量方法,社会收益比率(S/E Ratio),它成为了“世界上普及速度最快的社会影响力分析指标”(梵蒂冈,2014)。S/E Ratio,作为代表金融性价值的市盈率(P/E Ratio)理论的推论,它将非金融价值转化为数字、将情绪转化为非金融价值,并通过快数据(Fast Data)在10秒以内实现这一过程。在成功地将其应用于社会价值法案2012、现代奴隶制法案2015欧盟项目以及一系列学术项目委托之后,CCEG成为了横跨许多行业的SaaS(软件即服务)平台的主要提供者,并拥有自己的期刊《社会价值和无形资产》。

2016年初,我们从单纯地测量价值转向了对价值流动的研究,通过了区块链添加了对价值进行交易的能力。我们现在下设一个CCEG区块链UN实验室——它于2017年10月在英国金融行为监管局(FCA)的指导下进行了英国本土的第一次代币发行;一个面向机构的区块链咨询顾问服务机构Rothbadi & Co;一个大型的、关于知识产权的分布式账本技术联盟CyberFutures;以及一个大学教育价值论坛(高校资质)www.EfficiencyExchange.ac.uk

建立坚实的理论架构 #goodistrending 

我们的目标一直是为社会带来开源的、结构性的正面变革,为此我们调研并发布了12本白皮书、一个名为Blockchain Alliance for Good的会员制区块链联盟 Frontiers in Blockchain,并与一家主流学术出版商共同发布了世界上第一本同行评审学术期刊《区块链前沿》。

开发周期

CN seratio ecosystem v2

Seratio生态圈中集成的组件如上图所示,下面是一些简单易读的非技术性指南便于您帮助理解其间的联系:

现状

Seratio Ecosystem - circles

目前整个系统已经完成了85%(上图中绿色的部分),预计2018年10月100%完成。由于在项目开发期间添加了DAF和交易所的部分,导致原计划于2018年7月完成的目标延后了2-3个月。其中金融通证交易所(上图中黄色的)尚需等瑞士金融市场监管局(FINMA)颁发许可,由于市面上有很多其它我们可以使用的选择,因此该金融性数字资产交易所的需求尚不迫切。

与合作伙伴携手向前

在愿景和研发即将结束之际,随着我们即将进入对Seratio系统MVP(最小可行产品)的试运营阶段来对其进行测试和改进,我们迎来了新的挑战。我们已经和一个英国品牌Mencap达成共识进行试运行,该计划由于对方的财政紧缩被推迟至2018年12月,还将与英富曼集团(富时指数前100)分别于2018年11月在阿姆斯特丹以及2019年6月在哥本哈根进行数个演示和发布,同时还有在台州(2018年8月)、义乌(2018年10月)计划进行的城市发布,以及威尔士(2018年8月)和摩尔多瓦(2018年11月)进行的全国发布;还有更多的合作方在积极洽谈中。

=> United Nations Sustainable Goals (SDG) 2030

如果您想成为我们的合作伙伴,请尽管联系我们:blockchain.lab@cceg.org.uk

ENGLISH

The Seratio EcoSphere

End of a Journey, Beginning of a New

 

Summary

At the end of Q3 2018 the not-for-profit foundation Centre for Citizenship, Enterprise and Governance (CCEG) will have completed the Seratio Ecosystem to MVP (minimum viable product) level ready to start implementation in Q4 trials with significant partners in cities, regions and countries around the world.  This has been a 7 year journey, started in May 2011, to create structures for good that allows us to travel through our lives guided by the beliefs we hold dear to our hearts. By establishing a digital currency of intangible value, we can use AI (Artificial Intelligence) Bots on our mobiles to navigate our interactions with organisations, products, projects, processes and even people based on their provenance and how aligned they are to our own values. Retailers will be able to incentivise and target to differing degrees whole communities that match most closely their corporate values. We will be able to exchange our token instruments of non-financial value with assets of financial value.

Now moving to engagement and integration within global markets across public, private, civil society and community sectors, the Seratio EcoSystem will be governed by its participants through a Distributed Autonomous Foundation (DAF) which itself will integrate with other DAO (organisations) structures representing the Non-Governmental Organisations (NGO’s) both small and big. We are an international community of over 120,000 with a vision which are ready to deliver, but the next phase is about market need, scalable adoption, and professional operational delivery to give us a world based on sustainable social impact. Our common goal is to form a world transacting on the optimisation of Total Value where both Financial and Non-Financial Value are of equal importance and driven by our individual and collective Values.

The Journey (2011-2018)

We started our journey in May 2011 and created digital impact measurement, the Social Earnings Ratio, which became the “fastest adopted social impact analysis metric in the world” (The Vatican, 2014). The S/E Ratio, a corollary to the financial P/E Ratio, digitises non-financial value, turns sentiment into financial value, and does it through Fast Data in under 10 seconds. Applied successfully to Social Value Act 2012, Modern Slavery Act 2015, EU Commissions, etc and a plethora of academic commissions, CCEG became the leading provider of SaaS platforms across many sectors, with its own journal Social Value & Intangibles Review.

In early 2016 we moved from just  the measurement of value to the movement of value, adding a transaction of value capability through blockchain. We now have a CCEG Blockchain UN Lab which conducted UK’s first Initial Coin Offering in October 2017 with UK Financial Conduct Authority (FCA) guidance,  an institutional blockchain consultancy and advisory service Rothbadi & Co,  a large IP DLT consortium CyberFutures, and a university educational value forum www.EfficiencyExchange.ac.uk.

Justas Structuras Creare (Creating Just Structures) #goodistrending

Our aim remains to enable open source structural change for good,  having researched 12 Whitepapers, a membership association for Blockchain Alliance for Good, and the world’s first peer reviewed academic journal Frontiers in Blockchain, jointly launched with a mainstream academic publisher.

Development Cycle

Seratio Ecosytem final image

The integrated components of the Seratio EcoSphere are described above with the following easy to read non-technical guides to understand the linkages:

Current Status

Seratio Ecosystem - circles

The system as a whole is 85% complete (green shaded above) at present moment with 100% expected by October 2018. Originally expected to complete by July 2018, the additions of the DAF and Exchanges has extended the timescales a further 2-3 months. Although the securities financial exchange (yellow shaded above) will take further still with Swiss FINMA approval required, the security asset exchange is not an immediate requirement for day one as many others exist which we can use.

Moving Forward with Partners

With the end of the visioning and development cycle, comes a new challenge as we move into pilots and trials of our MVP to test and improve the Seratio system. We have in place already one pilot with a UK brand Mencap which has been delayed now to December 2018 due to their financial constraints, several demo’s and launches in November 2018 in Amsterdam and June 2019 in Copenhagen with Informa Plc (FTSE 100), as well as city launches in Taizhou (August 2018), Yiwu (October 2018), and country launches in Wales (August 2018) and Moldova (November 2018); other partners are now in discussion.

The Seratio Ecosystem is aided by AI to assess the complex analytical data available and to transparently steer consumers becoming their online friend. Similarly for public sector institutions, private sector corporates, civil society NGO’s – and their leaders – to become their values driven guide

As with all the work at CCEG, the Seratio EcoSphere is open source, and part of our contribution towards the United Nation’s 17 Sustainable Development Goals.

If you wish to be a partner please feel free to contact us at blockchain.lab@cceg.org.uk

CHINESE