Bitcoin’s Digital Waiting Line: “Micropay-for-Queue”

Bitcoin and micropayment-enabling technologies (like the 21 Bitcoin Computer) will allow society to monetize economies previously untouched by legacy payment methods. One of the first potential applications, monetizing time, may revolutionize the way we “wait”.

“Micro-Pay for Queue” with Bitcoin

bitcoinqueue

Pay per second with satoshi’s instead of wait in line? Sure!

Historically the currency we spend to hold our spot line is time. One individual might be willing to spend 2 hours waiting in line to purchase tickets while those more fanatical are willing to spend 18 hours and camp out overnight. We see such scenarios play out with all kinds of events (sports, music, appearances) and releases (iphone, Black Friday, etc.). The cost of time is a prohibitive mechanism for many who might otherwise be willing to participate.

The challenge for online sales is that there is no prohibitive mechanism (cost) to develop a queue for priority… until now. By placing a bitcoin micro-fee to each second/minute/hour a spot in the queue is held we can now develop true digital waiting lines to establish order. (i.e. whoever is willing to pay the most over the longest period of time gets the first spot, second spot, third spot, and so-on).

I’m Still Not Getting It, Give Me a Metaphor

Imagine you are waiting in line to purchase something in high demand… something you want very badly. Maybe it’s playoff tickets for your favorite sports team or preferred seats for your favorite band. You know they’re gonna sell out fast.

Also imagine that instead of waiting in line overnight for hours, you have the option to simply pay a fraction of a penny per second (say 0.01 pennies = 28 satoshi’s) to hold a spot in line.

Tickets go on sale Friday at 10 AM. You decide to start paying for a “spot in line”on Thursday night at 8:00 PM. To hold this spot you will pay second-by-second for 14 hours of “micro-pay for queue” time. 14 hours amounts to 50,400 seconds. Here is a rate breakdown:

50,400 seconds x $0.0001 Dollars = $5.04

OR

50,400 seconds x 28 Satoshis = 0.014 BTC

You’ve effectively monetized the cost of your time and paid it out on a second-by-second basis to maintain your spot in queue.

Additional Benefits of “Micro-Pay for Queue”

Enabling digital queues online via “micro-pay for queue” systems would make a host of other added benefits possible.

  • Preventing Bad Actors

Spam free e-mail is an application often touted by bitcoin micropayment proponents. A cost to send an e-mail acts as a disincentive for spammers because the fees of high-volume spam attacks have the potential outweigh the benefit. The same principles apply for an online queue.

A sunk cost needs to exist in a queue to prevent bad-actors from participating. If there is no sunk cost bad-actors are free to clog the line (DDoS attack) to:

A) Generate the illusion of demand

B) Dominate the queue with their own requests

C) Clog the queue to disrupt the service

  • A New Revenue Stream

A new revenue stream would emerge for both merchants and service providers. High demand events would likely drive the fee-per-second price higher. You might imagine a future where “micropay-for-queue” fees add entire percentage points to tickets sales.

  • Reducing Customer Dissatisfaction

For many consumers high-demand events can lead to significant issues for online sales. Crashed servers, faulty purchases, customer service nightmares, etc. By enabling digital waiting lines many of these issues would be mitigated, providing ideal experiences for the most invested customers. In fact, you’d imagine that events with greater demand (high cost-per-second queue fee) would become more anti-fragile.

Beyond Ticketing

Ticketing is a palatable example for how this kind of system might apply to the real world. In the short term I can imagine such technologies being adopted by major online ticket-brokers to save real costs and add new revenue streams.

What I believe is even more exciting is for this kind of queue-ing technology to make its way into the physical world. You might imagine this kind of system applying to reservations of any kind for high-demand services; be it a table at a restaurant, a parking space in a garage, or future IoT machines claiming a spot in a queue against other machines. I wonder if robots call shotgun?


 

**Update 12/5/2015**

If this post was of interest you may also enjoy this paper from @AnouarElHaji:

 


 

Case in Point: The night tickets went on sale for “Star Wars: The Force Awakens” I did my best to buy seats for opening night with bitcoin on http://www.movietickets.com and via my credit card on Fandango. Given that both servers crashed and that I had to do a number of refunds based on faulty purchases — I think a few satoshi’s would have been well worth the cost to ensure a smooth and fair experience.

StarWarsBTC

To the credit of http://www.movietickets.com they refunded the bitcoin I paid for this purchase after a couple days and e-mails.

Poking the Bitcoin Bear

In my continued dive into the “bitcoin rabbit-hole” I’ve found myself researching the origins and history of the early internet. Along the way I found myself viewing a 45-minute long History Channel program “The Invention of the Internet”. A particular story from Bob Metcalfe stands out.

In the clip below Metcalfe recalls a patronizing encounter with AT&T executives when he first shared a demo of the early ARPANET. (a foundational network preceding the internet)

I wonder how many young (and old) bitcoin and blockchain enthusiasts have experienced the exact same episode in the past 5 years?

It is worth noting that Metcalfe went on to co-invent Ethernet and be attributed with a principle coined as Metcalfe’s Law. I wonder what this generation of angry kids will come up with?

The 21 Bitcoin Computer is a Gamechanger

21

21.co’s first product. The Bitcoin Computer.

Advertised as “the first computer with native hardware and software support for the Bitcoin protocol” the 21.co Bitcoin Computer is the first of its kind and will catalyze a host of unforeseen use-cases for the bitcoin blockchain. The first product from the startup founded by Balaji Srinivasan, CEO and board partner at Andreessen Horowitz, (there are some valuable videos posted at the end of this post that will give context to some of the vision behind this company) 21.co has raised over $116 million dollars, from an impressive array of backers including but not limited to Qualcomm Ventures, Andreessen Horowitz, Data Collective, Khosla Ventures, RRE Ventures, Yuan Capital, Jeff Skoll and Peter Thiel.

Despite these early accolades the launch of 21’s first product (the 21.co Bitcoin computer) was met with surprisingly harsh criticism and skepticism (and in some instances confusion) by many informed participants in the bitcoin and blockchain ecosystem. This stemmed from a fundamental lack of understanding regarding the devices intention and potential. This ain’t your mama’s bitcoin miner. So let’s dive into what makes this device so innovative.

What is It?

91auguqftil-_sl1500_

Photo Credit: Samuel R. Patterson

The 21.co Bitcoin Computer is a hardware device that helps users and developers interact with the bitcoin blockchain. It acts as a bitcoin miner, blockchain node and blockchain interface and is comprised of the following hardware and software elements:

  • Raspberry Pi 2
  • Bitcoin Miner
  • Blockchain Node
  • 21.co Custom Operating System

While the hardware itself is nothing revolutionary the associated operating system acts as a foundational toolkit to aid developers in building custom applications using bitcoin and the bitcoin blockchain. Visit the 21.co “Learn” page to view tutorials on how to build custom bitcoin applications using the Bitcoin Computer. 21’s self-described goal is to help “developers to build bitcoin-payable apps and services”.

For those that are less tech-savvy then myself here’s a palatable analogy; think of the early internet and modems. Many of us remember a time where a modem was necessary to dial into and “seamlessly” connect with the early internet. The 21.co Bitcoin Computer is similar in that it is a hardware device that simplifies the process of engaging and interacting with the bitcoin blockchain.

Addressing the Skeptics

One of the key hangups many bitcoin enthusiasts first face when considering the Bitcoin Computer is the tendency to percieve the device’s sole purpose as a bitcoin miner or node. If this were the case the device would no doubt be an abysmal failure with an almost non-existant  likelihood of ever earning enough mining rewards to recover the initial cost of purchase ($399).

I presume the reason that 21.co has released the Bitcoin Computer as their first product is to get the technology into the hands of developers and provide them the building blocks to create new tools, applications, and companies atop this technology. The primitive hardware that has been developed should be considered a bare-bones proof-of-concept. The evolution of this hardware will likely lead to the development of a chip-equivalent that could be imbedded in any internet-ready device. I imagine we will soon hear of plans to imbed 21.co bitcoin computer chips into laptops, tablets, and smartphones at a fraction of current costs; just as modems were once incorporated into the hardware of every desktop computer.

This prediction is further supported by the participation of Qualcomm Ventures in the funding round for 21.co. Qualcomm predominantly operates in the mobile space — I believe this to be a big indicator of their intentions to exploit 21’s technology in the not too distant future.

Removing the Barrier to Entry for Bitcoin Ownership

By imbedding a small bitcoin miner into every single mobile device a major issue for bitcoin is resolved, the barrier to entry. Currently to own bitcoin you must have the know-how to mine bitcoin or purchase them (which most often involves verifying  your identify, complying with AML/KYC requirements, and linking a bank account), all of which is adoption prohibitive. If your phone is mining bitcoin, no matter how minute a contribution to the network, it will consistently earn a small number of Satoshi’s (the smallest unit of bitcoin). The process is described in greater detail here in 21.co’s terms of use. Barrier removed!!

Many claim that in the future you won’t even realize you are utilizing bitcoin, it will all be in the background. With the 21.co Bitcoin Computer this may very well become a reality for the majority of “bitcoin users”. Fundamentally the chip would allow the devices owner to convert a small amount of electricity into Satoshi’s at their convenience.

Got it! So this will eventually be a computer chip that earns my device a consistent stream of Satoshi’s and I won’t have to deal with the hassle – Cool! So, what the hell can I do with something as worthless as a Satoshi?

OK, you get it now. In a couple years your smartphone will have a 21.co bitcoin chip in it that will help the phone seamlessly interact with the bitcoin blockchain. It will ensure a steady supply of Satoshi’s is maintaned on your device and battery can be converted into additional Satoshi’s whenever necessary — Sweet! But why would Apple, Samsung, and other incumbants want to include this obscure new technology into their own hardware? It’s a great question that will require you to think of bitcoin as more than money, rather recognize that a single Satoshi represents an entry into a transparent, distributed, censorship-resistant ledger. Once you realize this possibility the applications begin to come into view…

A device that earns Satoshi’s for you would allow you to interact and post transactions to the bitcoin blockchain as a “proof mechanism”. Applications might include the following:

  • Timestamp a Photo: Imagine a future where every photo taken on a smartphone, tablet, wi-fi capable SLR camera had the option to make a blockchain-based confirmation showing “proof of ownership”. You might have a button on Instagram to verify that you were the originator of the image and state your claim on the blockchain for only a few Satoshi’s.
  • Timestamp a Tweet: Want to verify a tweet to the blockchain to ensure it is never censored? Click the blockchain option before sending and your 21.co chip will send a couple Satoshi’s out and get it entered onto the ledger.
  • Timestamp a Memo: Are you a comedian and have a great joke that you originated but fear might be stolen by your competition? Make a memo of it and timestamp it to the blockchain as “proof of authorship”.
  • Timestamp a Audio Correspondence: Russia recently contested the claim that Turkey has initiated contact with the jet they recently shot down. Had Turkey utilized a 21.co chip in their digital audio equipment they could validate the claim unequivocally that the attempts to contact the pilots had been made. It would make sense to require this kind of protocol in international agreements.
  • Timestamp a GPS Coordinate: Want to prove your location? Drop a pin on Google Maps and click the blockchain proof option to have your 21.co chip send some Satoshi’s and document the location and time on the bitcoin blockchain.

These are just a few abstract examples but the implications of such capabilities are far-reaching and the ease of integration with existing mobile apps would not be difficult. Furthermore it gives context to the possibility that bitcoin, with the support of hardware such as the 21.co bitcoin chip, may gain mainstream adoption with a use-case separate  from “bitcoin the currency”.

How 21.co Solves Core Issues of the Bitcoin Blockchain

21BTCA future where the 21.co bitcoin chip is standard in internet-ready hardware bodes well for the bitcoin blockchain. In addition to removing the barrier to entry for bitcoin users it would also help to address two key challenges:

  • Supports mining decentralization
  • Enabling Micropayments

In a recent correspondence on twitter Balaji Srinivasan implied that 21.co would eventually provide a means to further decentralize the mining-pool ecosystem referring to “p2pool v2”:

Micropayment remain a challenge for the industry such that it is widely recognized as a disruptive opportunity for the internet but few have discovered the keys to exploiting it. 21.co promises to help to exploit this opportunity further by providing tutorials on 3 primary means of enabling micro transactions

  • Direct on-chain transactions
  • Off-chain transactions with Bittransfers
  • Payment channels

Final Thoughts and Speculation for the Future of 21.co

The more you understand the applications of 21.co the more you recognize the genius of the product and it’s potential contribution to the bitcoin ecosystem. In the short term I am excited and optimistic to see what developers around the world come up with the release of these foundational tools. As 21.co’s hardware matures I fully expect to see the chip find its way into every mobile device. Furthermore, I think it is entirely reasonable to expect bitcoin’s first “killer app” to come as a result of the vision 21.co has provided.

UPDATE (12/1/2015): For a more in-depth review of the challenges of P2Pool Mining please read the following: P2Pool and low power miners

Past lectures by the 21.co founder and CEO:

Silicon Valley’s Ultimate Exit

 

The Evolution of Bitcoin – Talks @ Goldman Sachs

Apple Pay and Bitcoin have a Common Problem… and Solution

Bitcoin and Apple are both communities with a zealot-like following. To the dismay of both communities recent attempts by each at catalyzing mobile point of sale have resulted in lackluster levels of adoption from both consumers and merchants. This is a shared problem from opposing groups that I believe will also have a shared solution.

The Common Problem: Lack of Adoption

For Apple Pay, announced by Tim Cook at their September 2014 keynote, it was the promise to “transform mobile payments with an easy, secure, & private way to pay”. The numbers show that these features may not be enough to swell the tide of adoption. Despite a promising initial list of accepting merchants, as of June 2015 only 13.1% of eligible users had even attempted to use Apple Pay. It could be argued that from the perspective of the average consumer Apple Pay appears to be nothing more than a high-tech gimmick.

For Bitcoin challenges abound with respect to both user and merchant adoption. Despite the incentive of reduced transaction fees merchant adoption is fledgling at best. Having trooped through San Francisco (Bitcoin Mecca), New York, Denver, Boston, and more in search of accepting merchants… I can attest that the struggle is real. Look no further than Bitcoin Maps or similar services offered by Blockchain or Airbitz and you will note the lack of establishments accepting Bitcoin. A “chicken or the egg” problem is ever present and these transactions only appear to occur when merchants and users share ideology rather than see real benefit in the form of payment.

For mobile point of sale payments the value add (for both Apple Pay and Bitcoin) simply isn’t enough to catalyze significant waves of adoption by either merchants or consumers. The key to solving this problem and catalyzing mobile point of sale payments is to add more significant value.

Understanding the Problem: Give them Value and They Will Come

When I check out at the Whole Foods down the street Apple Pay is always available. Despite my enthusiasm for technology I never feel inclined to use it — it’s easier to just swipe my credit card like I always do. I’ve also considered using bitcoin (via Gyft) to make a mobile payment but again this requires added steps with little benefit to me the consumer.

Despite my unwillingness to engage with the available mobile payment options – I’m always sure to swipe my rewards cards with similar merchants at the point of sale. Why? Because it means I’ll likely get a discount on my purchase and possibly earn credit towards future purchases. This is actually of value; enough so that I even keep a tiny bar code on my keychain. As consumers we are willing to go the extra mile as long as there’s value in it for us.

The Common Solution: Blockchain Enabled Digital Tokens & Assets

The solution to this problem is the transformation of loyalty rewards, coupons, and discounts into digital assets (tokens) that are stored on a blockchain. What the digitization of assets allows is the seamless flow of value between suppliers, merchants, and consumers. In a world where my purchase of a Coca-Cola at McDonalds earns me not only micro-rewards at McDonalds but also universal micro-credit towards Coca-Cola I could now apply this micro-credit to my next purchase of Coca-Cola products at the supermarket.

In a world where I am accumulating loyalty rewards and credit for every product I purchase at every merchant I shop with I would be quick to adopt mobile payments. In the same way that I always swipe my rewards card at the supermarket, whether I know of the discount or not, I am always sure to do so for no other reason than I know that I “might” get a discount. Similarly, in a world where I am amassing digital token rewards for all the products I purchase, I will always be sure to use my digital wallet at mobile point of sale terminals … who knows what I might save or earn!?! There’s real value in that.

There are currently a number of startups in the blockchain and bitcoin space building this future. It will be exciting to watch startups such as Chain and Tokenly as they move forward … Apple fans and Bitcoin zealots alike may all have to thank them in the near future.

Apple Pay and Bitcoin Share a Common Problem ... and a Common Solution

Apple Pay and Bitcoin Share a Common Problem … and a Common Solution

A Bitcoin & Blockchain Start-Point

Hello everyone — it’s been a while since I’ve posted but in recent weeks I’ve been getting more and more requests / inquiries for information on bitcoin and blockchain tech. With that — I thought it easiest to  post some of the information I’ve been sharing with peers and colleagues. Please note: Bitcoin and blockchain technology make for a massive and ever changing landscape of information. The content listed below may be more than you ever want to know. That being said, if you truly find yourself interested and going down the proverbial “bitcoin rabbit hole” you will likely find this to be vastly insufficient. If so, venture no further than google and you will find all that you need.

Disclaimer: I am not a financial advisor. The intention of this post is to provide eager new enthusiasts with resources and information to help them begin understanding the implications of bitcoin and blockchain technology. Be responsible.

Let’ start:

If you are completely new to the concepts of Bitcoin and Blockchain begin by viewing the videos on this site to get a very base understanding of bitcoin and the blockchain: https://www.weusecoins.com

Books:

If you are a reader — this is a good book to start with. “The Age of Cryptocurrency”:

The Age of Cryptocurrency – Paul Vigna / Michael J. Casey

If you are a coder — this might be a better starter read that will let you dig into code right away:

Mastering Bitcoin – Andreas M. Antonopoulos

Lecture(s): There are countless lectures by great speakers on a host of subjects. Some focus on bitcoin as money, other focus on bitcoin politically, others focus on decentralization, etc. Here are a couple recommendations — but I’d also encourage you to do your own searches to find what topics interest you:

  • Andreas Antonopoulos – Bitcoin Guru. The “Bitcoin vs. the Blockchain” Debate

  • Wences Casares: CEO of Xapo. The history and traits of money. How does bitcoin compare?

  • Balaj Srinivasan: CEO of Bitcoin Startup 21.co and VC with Andreessen Horowitz. 21.co has received over $120 million in startup funding.

  • Various Speakers: A host of topics on Bitcoin from various experts.

CoinDesk “State of Bitcoin” report Q3 – 2015: This is a quarterly summary/report of all things going on in the blockchain/bitcoin ecosystem. Touches on trends, venture capital, startups, events, etc.

My Own Writing from my Blog:

 

The Nitty Gritty for Non-Coders: Khan Academies “What is Bitcoin?” series is a great run-through course on the fundamentals of bitcoin for the layman. It introduces you to some of the more difficult concepts (cryptography, etc.) but doesn’t overwhelm you. Worth checking out for the ambitious layman:

Khan Academy – “What is Bitcoin?” Series

Promising Startups in the Blockchain and Bitcoin Space: Incredible companies being built on or in parallel to Bitcoin: These are some of the pretty awesome startups that are building their own protocols for decentralized systems that may run in parallel to bitcoin. They will enable some pretty abstract but incredible things in the future that were never possible before and would merit a lot of discussion to understand:

https://blockstream.com/

http://www.augur.net/

https://www.ethereum.org/

https://openbazaar.org/

https://21.co/ (trying to make bitcoin a part of every computer)

bitcoin?

Seeing the “Network for the Nodes” in Blockchain Technology

forestfortreesI often use the term “can’t see the forest for the trees” when discussing the struggle to maintain perspective. The term serves an effective metaphor to describe any instance where one is so caught up in the minutia of a subject they fail to consider the “big picture”. (i.e. so focussed on a single tree you fail to see the entire forest). In our limited capacity as mere human-beings it is no surprise that this occurs quite frequently — our tendency to focus on the micro (near-term, observable, familiar) distracts us from the macro (long-term, possible, uncertain). I believe this tendency is a core contributor to the conditions that, for many, make appreciating the implications of blockchain technology so challenging. In blockchain terms — I would say that such individuals “can’t see the network for the nodes”.


The Scale of the Conversation

It is important to define the relative scale to which I am speaking — what are the trees versus the forest? One way of answering this question is to simply define the trees as the prevailing topics of the present day and the forest as the unbridled potential of blockchain technology. I find this a suitable scope for this conversation but would stress the importance of considering the entire history of human evolution when considering the “forest” (big picture) — to limit perspective to my own minute lifespan (30 years) would be vain.


The Trees — What Many are Talking About

It comes as no surprise that much of the current dialogue surrounding blockchain technology is focussed on the use-case of bitcoin and other blockchain-based tokens as digital currencies or assets. With this focus comes a host of justifiably meaty discussions relevant to the present day. Will cryptographic currencies survive and go mainstream? Are mining incentives sufficient? Are node incentives sufficient? Are blockchains secure? How do we regulate cryptocurrencies? Oh my… look at the price volatility! I consider such questions to be the “trees” of our metaphor and believe many of their answers to be foregone conclusions.

First, a world with blockchain-based currencies inevitable. It is clear that the value of a distributed open-source protocol and asset ledger (the blockchain) will take relatively little time to be exploited for its real-world utility. Furthermore, no sufficiently secure blockchain can exist without a cryptographic token (such as bitcoin) to back it. Native tokens are inherent features to blockchains — not optional external applications. As a car cannot run without an engine nor can a blockchain operate without a native token. Jonathan Levin was the first to truly address this issue head on — if you’d like to learn more read his post here.

What really gets interesting are the places this technology can take us once established. Once blockchain technology has been refined and is backed by a token of sufficient value to provide an unimaginably secure blockchain – what impact will this have on our world?


The Forest — What Few are Talking About

If you are passionate about bitcoin, blockchain technology and decentralization you’ve probably been in, or at the center of, a conversation where blockchain technology is touted as the solution to all of the worlds problems. This is often followed by waves of skepticism and even disregard by observers. Such criticisms are easy to make of an over-zealous speaker who is passionate about the potential.

The reality is that blockchain technology is disruptive. It allows ancient problems to be approached from an angle never-before possible (i.e. Distributed Consensus, Non-Hierchical Incentive Structures). I would argue that while it is difficult for the Lehman to grasp in a 10 minute conversation — those that understand blockchain technology and decentralization as ecosystems for voluntary participation, contribution, and reward can make some convincing arguments that blockchain technology provides a potential solution to many of the worlds problems. Is a new globally-distributed cryptocurrency disruptive? You better believe it — but it is the potential of the decentralized systems made possible by blockchain technology to usher in new constructs for societal progress never before possible in traditional hierarchical structures that gets my wheels turning. When looking beyond 5 years to 50 years from now it is hard to imagine blockchain technology and distributed systems only being recognized for their inherent tokens.

With all things ‘potential’ ones outlook is often rooted upon the tendency towards optimism or pessimism. In the case of blockchain technology the pessimists view simply means more of the same — an unfulfilled potential. The optimists view opens up an entire new realm of possibility across our global financial, political, and social infrastructure. I for one am pleased to be hanging out with the optimists on this one — the forest is vast and growing by the day.


If you want to “go deep” on the concept of perspective — you might enjoy this clip, one of my favorites, by the reverent Carl Sagan from his 1994 book Pale Blue Dot. If you’re feeling pretty important this might “bring you back down to earth”.

OneName: The Bridge Between Physical & Digital Identity

distributedidentity

Someday this service may be the most important form of identification you posses —  with the potential to combine and exceed the utility of your driver’s license, passport and social security card. It has the potential to be the disruptive bridge between physical identity and a truly secure & private digital identity — all thanks to the blockchain.

The service I am referring to is OneName — a blockchain-dependent business in its infancy that I believe is currently one of the most underrated startups in the space. You may find regard for a small startup bold — especially one launching amongst a class of rocket ships like Coinbase, BitPay, Blockchain and Ethereum. Maybe it is — but here’s why I believe recognizing such potential is just common sense.


So, What is OneName Again?

onenameSelf-described as your “digital passport around the web” OneName is an identity service that utilizes verification of multiple social-media accounts (Facebook, Twitter, Github, etc.) to establish compounded trust in identity. Furthermore, established accounts provide integration with bitcoin wallets so that you can use this account in lieu of complex and seemingly unverified bitcoin wallet addresses — it makes sending bitcoins easier and seemingly less risky. Here’s a link to my account: (note the verification of multiple social media accounts, twitter-like profile page, and “Send Bitcoins” button)

https://onename.com/ryanwalker

On the back end, Onename utilizes the NameCoin blockchain. Namecoin is a fork of the bitcoin blockchain that has is its own alt coin — it is the first to have implemented merged mining and a promising decentralized DNS. Namecoin_Logo(It is worth noting here that OneName is a Y-Combinator graduate that has received over $1.5 million in venture funding.)


Why Should I Care?

OK Ryan — I get it. It’s a blockchain-based identity registry. Why should I care and how is this any different than the other accounts I register on the web?

Like all blossoming blockchain-related innovations the magic is in decentralization and the benefits associated with it. By utilizing blockchain technology OneName gives users the ability to establish their digital identity independently — that is without the required trust of a second party to safely manage their account information. While the Googles, Facebooks, Twitters, and LinkedIns of the world battle to be the primary login authorization for websites — OneName will quietly establish themselves as the most viable option for users to own secure and private authorization identities without the trust of big-social media. It is an option that empowers every user of the internet with the ability to operate as themselves while maintaining privacy and control of their data — users FTW!


Oh – Cool. What are the Implications?

This is where things get interesting — and where I will indulge myself a little and in the spirit of Conan O’Brian look ahead to what things will be like “In the Year 2000”.

First – I’d like to address the concern of having a ‘single point of failure’. Utilizing one single log-in to manage a host of personal information and accounts (an entire digital identity if you will) seems risky — that’s because traditionally IT IS risky. That being said – one immediate risk that is voided by using OneName is that of a trusted second-party. By owning your account information you immediately mitigate a large portion of risk and take accountability for your own information and access. Furthermore – authorization technologies and multi-signature technologies are advancing quickly. It will not be long before decentralized account access and login could be dependent on a variety of signatures. By multi-signature I mean the requirement of multiple access keys (like with nuclear bombs in old movies). Imagine a future where your login is not only dependent upon the weak password you’ve been using for all accounts since you were 12 years old (i.g. MadNugs1984) but a host of unique identifiers such as; 2-Factor Authentication, voice recognition, biological ID & markers, fingerprints, heartbeat, geotagged coordinates, etc. I’m a believer that the problem of compromised accounts will soon be solved. With that addressed… let’s move on….

The future implications of decentralized blockchain-based identity are significant as it will allow users heightened degrees of security and privacy while navigating the digital landscape. Complementary innovations abound (examples being cryptocurrencies, the internet of things, decentralized autonomous organizations, advanced reputation systems, etc.) that foreshadow synergies likely to emerge in which decentralized blockchain-based identity services (distributed identity services such as OneName) hold even greater utility.

While OneNames humble beginnings are tied to social media accounts – there is no reason a more mature platform couldn’t use more concrete credentials to establish identity. Here are some examples of these use-cases:

  • OneName linked to Social Security Number: A user who voluntarily linked their secure & encrypted social security information to a OneName account could eventually use their OneName account to verifiably vote on a blockchain-based election platform. Imagine voting in 2020 via the “blockchain option”.
  • OneName linked to Insurance Information: A user who voluntarily linked their secure & encrypted smart-insurance policy (maybe stored on the future Ethereum blockchain) could arrive for treatment at a hospital and automatically have all charges and costs verified against their policy before treatment in a single second — all by just swiping their phone and logging in.
  • OneName linked to Passport: A user who voluntarily linked their secure & encrypted passport information could be recognized as less of a risk than other travelers. They might received ‘fast-lane’ treatment as their physical passport would no longer need to be verified. Just confirm that you retina signature for your passport is in fact your with an eye-scan and move along please sir or madame.
  • OneName linked to Driver’s License: A user who voluntarily linked their secure & encrypted drivers license to their account could ensure that their car doesn’t start unless their OneName key is present in the car. No more stealing my car – unless you can pick it up.

Of course – this is just me riffing on some examples — and I’m more than 100% certain these aren’t even the best of what folks out there are already coming up with and experimenting with. Beyond the individual – OneName could also serve as the identifier for the Decentralized Autonomous Organizations (or devices) of the future — providing a verifiable and trusted reputation layer. I won’t even go into this here…

In conclusion — I foresee OneName or an equivalent becoming the single bridge between physical and digital identify. A host of trends in technology and society point towards civilization expanding further into the digital landscape, a place where secure, trusted and private identity will be essential. With that said — you might consider heading over to http://www.onename.com and claiming your name now — especially if your a Jonathan Smith or Sarah Johnson.