Autonomics: An Autonomous and Intelligent Economic Platform and Next Generation Money Tool

55 Pages Posted: 8 Jun 2015

Date Written: March 23, 2015

Abstract

We propose a high-level network architecture for an economic system that integrates money, governance and reputation. With this system we introduce a method for issuing, and redeeming a digital coin using a mechanism that solves large scale economic challenges and aims to create a sustainable global economy and a free market.

To maintain a currency's value over time, and therefore be money proper, we claim it must be issued by the buyer and backed for value by the seller, exchanging the products of labour, in a free market. We also claim that a free market and sustainable economy cannot be maintained using economically arbitrary creation and allocation of money.

Nakamoto, with Bitcoin, introduced a new technology called the cryptographic blockchain to operate a decentralised and distributed accounts ledger without the need for an untrusted third party. This blockchain technology creates and allocates new digital currency as a reward for ‘proof-of-work’, or ‘mining’, to secure the network.

However, no currency, digital or otherwise, has solved how to create and allocate money in an economically non-arbitrary way, or how to govern and trust a world-scale free enterprise money system.

We propose an ‘Ontologically Networked Exchange’ (ONE) that is organised with purpose as its highest order domain. Each purpose is defined in a contract, and the entire economy of contracts is structured in a unified ontology. This unified ontology comprises just one of each contract type. As the mechanism issues money for labour transactions, governance is ensured by the economic imperative to collaborate in consensus, and in common purpose. Each transaction completed in the unified ontology of unique contract blocks is also unique, solving the double spending problem. We define this very many block chained network as the ‘blockcloud’. This forms the foundation of an economic operating system.

Unlike current blockchain platforms such as Bitcoin, whose networks are secured using economically arbitrary cryptographic proof-of-X (PoX) systems, we claim to secure the ONE network using economically non-arbitrary methodologies and reasonable economically incented human behaviour. We define trust as transactions completed reliably over time in a given context or purpose. By offering market participants contextualised transactional trust data, economic decisions are made based on reputation and reliability. Decisions influenced by trust and reputation help to secure the network without an untrusted third party. These properties combine in a unique way to solve the majority attack problem.

The stack of contracts, organised in a unified ontology, functions as a super recursive algorithm, with individual use programming the algorithm, acting as the ‘oracle’. The state of the algorithm becomes the ‘memory’ of a scalable and trustable artificial intelligence (AI). This AI offers a new platform for what we call the ‘Autonomy of Things (AoT)’.

Keywords: economics, digital economy, monetary theory, artificial intelligence, evolution, autonomous systems, Internet of Things, big data, reputation systems, governance

JEL Classification: A00, A13, A14, B40, D31, D41, D62, E00, F00, I00, J00, L00, P00, Q00

Suggested Citation

Munro, Benjamin and McLachlan, Julia, Autonomics: An Autonomous and Intelligent Economic Platform and Next Generation Money Tool (March 23, 2015). Available at SSRN: https://ssrn.com/abstract=2603038 or http://dx.doi.org/10.2139/ssrn.2603038

Benjamin Munro (Contact Author)

Independent ( email )

No Address Available

Julia McLachlan

Independent

No Address Available

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