Puerto Crypto — The Second Crypto Big Bang

Please note this article is a reference to the Blockchain Unbound conference, I retain it’s original name “Puerto Crypto” because I favor it. No other reason.

Brief: This article’s purpose is to outline a personal thesis that we have just experienced a Second Crypto Big Bang in Puerto Rico from March 14–18th, 2018. I briefly review

1. Big Bang Theory
2. Foundational Pillars in our Society being shifted per the Crypto Big Bang
3. Set the Stage for Puerto Rico
4. Puerto Crypto
5. Discuss Measures for Impact

Big Bang Theory

Back at University, we adamantly watched the Big Bang Theory; partly in, being an engineering school and all, an emphatic likeness of their lifestyle, awkward mannerisms, and also logical, yet technical approach to everything. The theory itself, represents a story about which we understand how the universe came to be 14 billion years ago. The timing of a collision of special, alchemizing ingredients, to evolve into a multitude of species, laws, incentives, physical environments etc. Within the Crypto and Blockchain space — we understand this Big Bang, this origin, to be with the Satoshi Paper in October 2008. Bitcoin — having created the laws of the new Crypto reality as a use case for the new universe of barter and exchange.

Growing up, Math was my best subject. I recall being told grades K-11 that the largest number was infinity. 12th Grade, Mr. Baumgartnerm my Calculus II teacher, tells us we’ve been lied to our whole lives. That moment, as well as the concept of infinite infinities, had me thinking about the idea of multiple universes.Now, there are scientists that explore the concept of a multitude of Big Bangs (catalysts of universes) - Professor Andre Linde at Stanford coined the term as Eternal Inflation, one where a multitude of these big bangs create an ever expansionary state of the universe we know to exist.

“Even though the laws of physics are the same everywhere we can see in our observable region, if physical reality is far more extensive, then maybe there are domains where the laws are different.

“There are some theories which suggests that in the aftermath of other Big Bangs the universe may cool down differently governed by different laws.

Following this framework of thinking — Blockchain has introduced a new set of laws, governance by which we are learning to adapt and evolve into. My belief is that the technology has finally opened up a systemic way to support a collaborative model we have already been familiar with — Co-Operatives; however I won’t get too far into that rabbit hole for this piece.

For this piece — I want to suggest a personal thesis:

That the attendees of Puerto Crypto, also broadly d10e & Coin Agenda, were just a part of the Second Crypto Big Bang; one who’s origin is in Puerto Rico and broadly through Brock Pierce’s efforts, one where the use case is a Universe of new Social Infrastructure and Governance.

The Pillars of Society — Barter and Agreements

For personal diligence, reference the academic discipline Political Economy.

The society we live in is fundamentally built on an infrastructure of social agreements (Ref. 9:01), law and finance were the one of the first protocols of our time (after language), these just facilitated action in the physical world. We incorporated protocols in the internet boom, and now I view these in the framework of the 4th Industrial Revolution — we are now seeing the spheres of tech, social, and biological blurring. Vinay Gupta coins Blockchain as facilitating an “Internet of Agreements”.

Puerto Rico — A Case for Cooperation

In this section, I want to get into pieces of Puerto Rico’s history that set the region and citizens up for a mutual value exchange between those who have resources ($), innovative ideas (!), and social capital ( :) ). I review a few major points that are important for setting the stage for Puerto Rico as a perfect location, as identified by many Blockchain Investors and Entrepreneurs; specifically, pre-2014 debt, Hedge Fund Debt purchase in 2014, and the 2017 Maria Hurricane.

Pre-2014 Debt — CNN Money clarifies 4 points for systemic debt.

1. Government Overspending due to a translation error (1952 Constitution): “recursos totales” — total revenue or total resources? This allowed Puerto Rico to issue debt to fund Business As Usual activities (ie education, health care, etc.). See further details.
2. Pharmaceutical Tax Breaks Rolled Back (1990–2006): Industrial roll out and therefore fewer job opportunities; In addition the “Merchant Marine Act of 1920 mandates that only U.S. vessels can take goods between Puerto Rico and the U.S. mainland” — this tied Puerto Rico to US’s interests, and a reduction of competitive opportunities in the global market.
3. Skill Drain — an exodus of productive citizens (productive by way of contributing to the GDP) to opportunities outside of Puerto Rico.
4. Congress removed Bankruptcy Rights (1980): In April 2016, John Oliver speaks to the financial crisis limbo Puerto Rico is facing which is a cop out of financial responsibility between the United States and the International body, IMF.

commonwealth of the United States, Puerto Rico does not qualify for I.M.F. assistance, and there was little appetite in Congress for a wholesale federal rescue (NY Times, May 2017).

2014 —Hedge Funds claim Puerto Rican Debt for Future Returns

Debt holders felt security in a future positive return on their Puerto Rican debt assets.

2017 — Maria Devastates the island and forces a rethinking of the infrastructure and governance models.

Puerto Rico has seen mismanagement of funds by the government, financiers opportunistically arbitrate against this, and a physical devastation reworking the island and testing the world’s empathetic boundaries. When no governing body can support the governance of finances of Puerto Rico, it’s clear there need’s to be a reimagining of Governance as a whole.

Puerto Crypto

I attended Blockchain Unbound as a Blockchain Venture Consultant and Venture Associate Intern for DNA. It’s a beautiful island, where we spend most of our time focused at Condado Vanderbilt Resort. There are Blockchain Ventures pitching, Investors connecting over meetings, Evangelists Observing, and Nonprofits promoting collaborative opportunities. I saw the effort to involve the natives of Puerto Rico in conversations of Social Impact on the island, and spoke with community members that felt short-sighted. There are no right answers — however the effort involved from natives & newcomers to collaborate for a new Puerto Rico are meaningful enough to spark a revolution in social organizing.

Measures for Long Term Impact

Straight from Puerto Rico I took a 3:57am flight to Newark, NJ for a retreat with the Global Shapers (Project Network of World Economic Forum) in NYC. The travel was a bit intense, but it was invaluable connecting with the group in an informal setting — generally we meet at the Forum’s HQ with programming at schedule by the minute. What I would like to specifically mention on this retreat, was a workshop that our hub’s Curator facilitated for us to exercise our minds with the concept of

Radical Candor; I bring this up specifically because the barriers we identified from a discussion exercise learning barriers to how and why we don’t communicate directly, emphatically, and with radical transparency — these barriers (Social & Systemic Factors, Fear of hurting or offending, Time/Opportunity, Others not reciprocating, and not knowing how to do it well), are qualitative what I believe represent the thinking needed to integrate a socially collaborative infrastructure for the future of “Puerto Crypto”. By “Puerto Crypto”, I specifically mean a Puerto Rico with crypto ethos and social infrastructure evolving in the space. A friend at ConsenSys walked me through some of the issues with decentralized organizations, essentially flat organizations. He mentioned a burden shift from the organizational infrastructure to the individual — think Policy, Hierarchies (Social Structures) that are built into organizations that facilitate the paths of how we engage in business. Now, with an empowered individual, you’re better apt to engage in the projects & world how you see fit. The opportunity he saw for organizational development, was to develop training programs that would support each employees empowerment to be able to communicate their boundaries, how they work, ownership of things etc.

In short — there are qualitative means of evolving cooperation, the kind necessary to:

1. Understand barriers to collaboration,
2. Empower (educate) a language or means of individual social contracts,
3. Develop/Use a Governance Tool — one I have high conviction for as an Ambassador is Democracy.Earth (nonprofit), a Blockchain Powered Liquid Democracy tool.
4. Measure for Agile Evolution — a metrics tool I have high conviction with is Social Progress Imperative.

In addition, cooperation is necessary to approach a community like Puerto Rico with mindfulness around the concept of a community patent, one where the City Council Member of a highly active Puerto Rican NYC neighborhood spoke on this topic. (I organized that year’s effort with TEDxBushwick).

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