The Age of Tokenized Ecosystems
The Next Great Technological Boom
An overview of Zach LeBeau’s presentation at Blockchain 360 in Boston on October 17, 2016.
By Zach LeBeau
“The Age of Tokenized Ecosystems” has begun. This new era directly correlates with the beginning of a new technological boom that is quietly gaining momentum — the decentralization revolution. It may not be so apparent right now, but within a few years we’re going to see the beginning of trillions upon trillions of dollars worth of centralized assets being decentralized and placed on blockchains, predominantly Ethereum’s blockchain. This upcoming technological boom will be as great, if not greater, than the internet boom of the late nineties and tokenized ecosystems will play an important role.
Before we examine what tokenized ecosystems are, let’s cover some of the basics first — for those new to the blockchain space.
We all know what Bitcoin is right? Bitcoin is basically a distributed ledger that performs best as digital money — digital money that is not owned or controlled by an intermediary. Well, it is when it’s in the hands of exchanges but it doesn’t have to be. Bitcoin can exist purely peer-to-peer, in a decentralized network. When you hold bitcoin in your wallet, the bank doesn’t own those bitcoin, you do. And you can send bitcoin to any other bitcoin address around the world, quickly and for a fee of pennies. It’s probably the most simple example of the power of decentralization. Satoshi Nakamoto’s consensus process is revolutionary.
ETHEREUM — “The Smart Protocol”
Ethereum can do what bitcoin does. It can be digital money (a store of value), if you want it to be. Not only in the form of its Ether — bitcoin’s got BTC, Ethereum’s got ETH— but also in the form of tokens generated on its protocol. But Ethereum is so much more…
Ethereum is essentially a decentralized world computer existing on nodes all across the world, just like bitcoin. But unlike bitcoin, Ethereum is highly programmable. In fact, Ethereum is a “smart protocol”. With Ethereum we can program a new world of “smart systems”, not like the systems we have now, which are siloed and separate. There is no interconnected flow of data in the centralized paradigm of the internet we live in right now. The government databases don’t know what other government databases know, services databases don’t know what other services databases know — everyone’s got their own database and info isn’t shared so its pretty much disorganized data flow chaos. But with Ethereum — the decentralized world computer — “Where there is data there is network and where there is network there is data.” (a mantra coined by the great Ethereum orator Vinay Gupta.) If you haven’t seen Vinay’s “Promise of Blockchain” and if you’re new to the decentralization revolution, do yourself a favor and take a look.
The synergy — the convergence of data and network — gives us the possibility of building smart systems to manage our way of life. Smarter societal systems will be able to do such things as show us the way forward to eradicating hunger on this planet through innovations in resource management alone. We’re not talking about collecting data, we’re talking about collecting “smart data”, we can turn that into greater knowledge, we can turn that into greater awareness. That’s the power of Ethereum.
This is what the revolution is all about — Decentralization.
From the beginning of time — probably — we human beings have cohabitated in a centralized scheme. We gathered together for safety, to share resources, to survive, to thrive, to grow from clans to villages to towns to cities to an international world. And in doing so we created intermediaries — government and services — that helped build civilization. But centralization has a ceiling, it has its evolutionary limits. And thanks to blockchain technology we can see these limits now.
A decentralized computer network is inherently more powerful than a centralized one. And with decentralized computer networks we’re able to pioneer and innovate new technologies and methodologies we could not before. I’ve already briefly explained how it can be smarter — “where there is network, there is data.” Decentralization basically takes the centralized command and control structure, the top down hierarchical pyramid structure that tends to become monopolistic and obfuscated over time, and distributes it horizontally. It tears downs walls, ushers in transparency and a new type of peer-to-peer interaction.
A blockchain is a digital ledger made out of a virtual “chain of blocks”. It records every transaction that has ever occurred. It is protected by powerful cryptography generally thought of as impossible to break. The blockchain resides not in a single server, but across a distributed network of computers. Bitcoin’s got its blockchain and Ethereum has its blockchain.
So far, the blockchain is the way decentralized data is best organized.
PUTTING IT ALL TOGETHER
Bitcoin, Ethereum, decentralization and the blockchain… When you put them all together, what does it mean? It means that decentralization and blockchain technology give us the ability to interact with each other and the world in a smarter way, in a more meaningful and efficient way. Most of what’s coming is emergent — frankly we don’t know what’s coming — but the first and simplest example— bitcoin — foreshadows an exciting future ahead. Another exciting example of the power of decentralization and blockchain technology is exemplified through digital identity.
uPORT— Decentralized Identity
uPort is a great example of how a decentralized computer network is more evolved than the centralized network of the internet today.
The way things work right now with identity is if you’re on Facebook, Facebook corp owns your digital identity. If you’re on Twitter, Twitter corp owns your digital identity. With uPort, on a decentralized computer network, you — the user — own your digital identity. This may not seem like a big deal to many but it is to millions of people around the world that rely on identity and reputation to make a living from the internet. And as the years pass our digital identities will become just as important as our real-world, physical identities. If you’ve ever been hacked or if you’ve ever had your identity stolen, you may make the case that it’s just as important now.
Anyway, back to centralized identity… Right now if you’re a merchant selling on Amazon and if you’ve been doing so for many years, you have ratings and reviews which garnered you a following and a certain level of trust. People know they can trust you because of your “identity history”. But if you move your business over to eBay, you have to start this history — your identity — from the very beginning. You can’t take it with you! Why, because data and network don’t converge on the internet in a centralized computer network paradigm. But in a decentralized computer network paradigm data and network converge. With uPort, when you log in to your SingularDTV interface, your identity is there. When you go elsewhere on Ethereum, your same identity is there... Your exact same “self-sovereign identity” follows you everywhere. Why? “Where the is data, there is network”...
So, what does this all equate to? Why does it matter?
I mentioned above that this next great tech boom will amount to trillions and trillions of dollars worth of centralized assets being decentralized and placed on blockchains, right? Yes. Why? Why decentralize assets?
If you look at your business and the world with “eyes of decentralization”, you’ll see ways to innovate and disintermediate like never before. It doesn’t matter how monopolistic and powerful your competitors are, if you find a way to make decentralization work for your enterprise, if you start to blockchain (yes, using it as a verb), you will have a decided strategic advantage over your most powerful competitors. I’m not talking about advantages in small measures, I’m talking about paradigm shifting advantages. This is why you decentralize. This is why SingularDTV has the possibility to challenge Nextflix in the next 5 years, and possibly render them obsolete in the next 10- 15 years.
So the question is, “why should you decentralize?” Why did SingularDTV decentralize? It was simple for us. Basically, our producers and entertainment investors were tired of being screwed over by the monopolistic, obfuscated Hollywood sales and distribution machine that perfected creative accounting practices. By building a rights, revenue, royalty management platform and decentralizing our assets, by creating a tokenized ecosystem, we can begin the journey of building a decentralized entertainment industry that is totally transparent, where revenue is distributed instantaneously. Not only that, it also gives us the opportunity to go from a regionalized entertainment paradigm into a truly international, universal one.
How can your enterprise benefit from decentralization and by adopting blockchain technology? If you know the answer and you’re not doing something about it, someone else will.
Tokens are the way to represent your assets — your enterprise — on the blockchain.
With SingularDTV, our SNGLS tokens represent our intellectual property — our film, TV and software projects. Every attribute of our IP is programmed into the SNGLS token, or more accurately our SCS (Smart Contract System).
CODE — Centrally Organized Distributed Entity
The DAO model wasn’t going to work for us. We needed to build a bridge between the legacy world and the Ethereum world. We needed a structure that could decentralize assets, while at the same time use these assets to create real world projects and take that revenue generated from these projects and cycle them back to the blockchain. So we created a decentralization generator — the CODE structure.
CODE stands for Centrally Organized Distributed Entity. It’s an organization of legacy business and blockchain entities that build a bridge between centralization and decentralization for the purpose of proliferating decentralization. The trillions of dollars of assets that will be placed on the blockchain will be done so through regulatory and tax compliant structures like the CODE structure.
The first thing an enterprise needs to do is figure out the functionality of their token. Why start here? Because the CODE structure and Smart Contract System (SCS) is dependent on the functionality of its tokens. All legal, tax, technical and conceptual specifics must converge. Token functionality, CODE structure and SCS programming specs must all mirror one another.
Up until SingularDTV’s SNGLS token, all other coins or tokens in the realm of cryptos seemed to only represent the value of an enterprise on a cryptocurrency exchange. But with SNGLS tokens, we not only needed them to represent our IP, we also needed a way to instantaneously distribute revenue throughout our ecosystem. This transparent and instantaneous revenue distribution function is the main reason for the existence of our rights, royalty and revenue management platform. It is the main reason SingularDTV exists, to disintermediate the monopolistic and obfuscated world-wide film and television distribution system.
Proliferation of tokenized ecosystems is paramount in creating a decentralized world. If you are an enterprise looking to decentralize and have questions about how to move forward, feel free to send us an email at contact@SingularDTV.com. We will point you in the right direction, saving you valuable time and money. After all, in order to build a decentralized world, we must all do it together.