Blockchain property deeds and wealth liberation

In his under-appreciated classic “The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else“, Peruvian economist Hernando de Soto argues that the legal structure of property and property rights is a major determinant of the economic success of a country. “Every developed nation in the world at one time went through the transformation from predominantly informal, extralegal ownership to a formal, unified legal property system [and this] allowed people everywhere to leverage property into wealth.”

Trillions of dollars of economic value are trapped in informal assets that cannot, for example, be leveraged to secure loans or otherwise bootstrap wealth creation.

Imagine if you had an inexpensive, fraud-proof way to register and regulate these assets? Could this finally be the breakthrough use of blockchain?

Moral Foundations Theory

I was just reminded of Jonathan Haidt’s Moral Foundations Theory, something I first encountered in The Righteous Mind.

Moral Foundations Theory was created by a group of social and cultural psychologists to understand why morality varies so much across cultures yet still shows so many similarities and recurrent themes. In brief, the theory proposes that several innate and universally available psychological systems are the foundations of “intuitive ethics.” Each culture then constructs virtues, narratives, and institutions on top of these foundations, thereby creating the unique moralities we see around the world, and conflicting within nations too. The five foundations for which we think the evidence is best are:

1) Care/harm: This foundation is related to our long evolution as mammals with attachment systems and an ability to feel (and dislike) the pain of others. It underlies virtues of kindness, gentleness, and nurturance.

2) Fairness/cheating: This foundation is related to the evolutionary process of reciprocal altruism. It generates ideas of justice, rights, and autonomy. [Note: In our original conception, Fairness included concerns about equality, which are more strongly endorsed by political liberals. However, as we reformulated the theory in 2011 based on new data, we emphasize proportionality, which is endorsed by everyone, but is more strongly endorsed by conservatives]

3) Loyalty/betrayal: This foundation is related to our long history as tribal creatures able to form shifting coalitions. It underlies virtues of patriotism and self-sacrifice for the group. It is active anytime people feel that it’s “one for all, and all for one.”

4) Authority/subversion: This foundation was shaped by our long primate history of hierarchical social interactions. It underlies virtues of leadership and followership, including deference to legitimate authority and respect for traditions.

5) Sanctity/degradation: This foundation was shaped by the psychology of disgust and contamination. It underlies religious notions of striving to live in an elevated, less carnal, more noble way. It underlies the widespread idea that the body is a temple which can be desecrated by immoral activities and contaminants (an idea not unique to religious traditions).

We think there are several other very good candidates for “foundationhood,” especially:

6) Liberty/oppression: This foundation is about the feelings of reactance and resentment people feel toward those who dominate them and restrict their liberty. Its intuitions are often in tension with those of the authority foundation. The hatred of bullies and dominators motivates people to come together, in solidarity, to oppose or take down the oppressor. We report some preliminary work on this potential foundation in this paper, on the psychology of libertarianism and liberty.

See also https://en.wikipedia.org/wiki/Moral_foundations_theory

Thomas Friedman’s 5 Pieces of Advice for His Daughters

From http://deloitte.wsj.com/cmo/2017/12/07/radically-open-tom-friedman-on-the-future-of-work:

I have five pieces of advice for my daughters. My first rule is: Always think like an immigrant, because we’re all new immigrants to the age of accelerations.

Second, always think like an artisan. Always do your job in a way that you bring so much empathy to it, so much unique, personal value-add that it cannot be automated, digitized, or outsourced, and you want to carve your initials into it at the end of the day.

Third, always be in beta. Always think of yourself as if you need to be re-engineered, retooled, relearned, and retaught constantly. Never think of yourself as finished—otherwise, you really will be finished.

Fourth, always remember that PQ (passion quotient) plus CQ (curiosity quotient) is greater than IQ (intelligence quotient). Give me a young person with a high PQ and a high CQ, and I will take that person over a kid with a high IQ seven days a week.

And last, whatever you do, whether you’re in the public sector or the private sector, whether you’re on the front lines or a manager, always think entrepreneurially. Always think, “Where can I fork off and start a new company over here, a new business over there?” Because a huge manufacturing company is not coming to your town with a 25,000-person factory. That factory is now 2,500 robots and 500 people. So we need three people starting jobs for six; six people starting jobs for 12; 12 people starting jobs for 20. That’s how we’re going to get all those jobs. We need everyone thinking entrepreneurially.

Warnings: Return of The Long Emergency

warnings

James Kunstler’s 2005 book “The Long Emergency” made a huge impression on me when I read it in 2006. In fact, it was one of the reasons I found myself pursuing a career in cloud computing in 2007. Partly thanks to this book and a former boss from British Telekom, my business partner and I were convinced that peak oil and climate change would create a huge demand for energy efficient, carbon neutral compute resources, and cloud computing was the future.

The Long Emergency was primarily concerned with America’s oil addiction and ill-preparedness for what looked at the time to be the coming energy (oil) shock, but it also examined other threats to civilization:

  • Climate Change
  • Infectious diseases (microbial resistance)
  • Water scarcity
  • Habitat destruction
  • Economic instability
  • Political extremism
  • War

Every one of those is still an enormous threat.

A new book by national security veteran Richard Clarke and R.P Eddy called “Warnings: Finding Cassandras to Stop Catastrophes” updates The Long Emergency with some new features of the threat landscape.

The book starts off by asking how we can reliably spot Cassandras – people who correctly predict disasters but who were not heeded – so that we can prevent future disasters.

They examine recent disasters – like 9/11, the Challenger space shuttle disaster and Hurricane Katrina, then examine the people who predicted these events, looking or patterns. They come up with some stable characteristics that allow us to score people on their Cassandra Quotient.

The second part of the book looks at current threats, and their doomsayers, to see if any have a high Cassandra Quotient and thus should be heeded.

The threats are:

  • Artificial Intelligence
  • Pandemic Disease
  • Sea-Level Rise
  • Nuclear Ice Age
  • The Internet of Everything
  • Meteor Strike
  • Gene Editing (CRISPR)

The bad news is that they all have high Cassandra Quotients and the scenarios in the book are plausible, science-backed and terrifying.

Artificial Intelligence as a threat hs been on my radar for a year or so thanks to Elon Musk, Bill Gates, Stephen Hawkins and Sam Harris warning of the risks of intelligent machines that can design and build ever moire intelligent machines.

Pandemic Disease has worried me since reading The Long Emergency, but I thought there had been better global awareness, especially since the world took the 2011 flu scare seriously, and Ebola and Zika.  Unfortunately, we are – as a planet – woefully ill-prepared for a global pandemic. A high fatality airborne flu could kill billions.

Sea-Level Rise genuinely surprised me, especially since the Cassandra in question – James Hansen – predicted the current melting and ice shelf break-offs we see in the Arctic today…30 years ago. I even googled how high my home is above sea level after being convinced we could see 7m rises within my lifetime.

As a child of the 70’s and 80’s, nuclear horror is deeply embedded in my psyche. But I thought the risk of a Nuclear Ice Age was a pretty low risk. It turns out you do not need a large-scale nuclear exchange between the US and Russia to cause global climate chaos. A limited exchange between India and Pakistan could be sufficient to kill billions though global starvation. I was also surprised to learn that Pakistan moves its nuclear arsenal around to thwart attacks my Indian commandos in the event of a war. This raises the risk of terrorists intercepting on of these weapons on the move, and using it for nuclear terrorism.

The book does a good job of examining the incredible fragility of out interconnected IT systems in the chapter on The Internet of Everything. As an IT professional I know the reality of how fragile these systems are and we are right to be scared of dire consequences of a serious cyber war.

I do not really think about Meteor Strikes, as there is little we can do about them and they are now part of popular culture.

The final worry in the book is about Gene Editing, especially CRISPR. CRISP has absolutely marvelous potential, but it also has many people worried. Daniel Saurez even has a new book on the topic called “Change Agent“. CRISPR is could be the mother of all second order effects. Take “off target events” for example:

Another serious concern arises from what are known as off-target events. After its discovery, researchers found that the CRISPR/Cas9 complex sometimes bonds to and cuts the target DNA at unintended locations. Particularly when dealing with human cells, they found that sometimes as many as five nucleotides were mismatched between the guide and target DNA. What might the consequences be if a DNA segment is improperly cut and put back together? What sorts of effects could this cause, both immediately and further down the road for heritable traits? Experimenting with plants or mouse bacteria in a controlled laboratory environment is one thing, but what is the acceptable level of error if and when researchers begin experimenting with a tool that cuts up a person’s DNA? If an error is in fact made, is there any potential way to fix the mistake?

So we have planet-scale problems, ingenious solutions. Instead of feeling paralysis or resignation we should accept Peter Thiel’s challenge to find the big breakthroughs, 0 to 1 intensive progress:

Progress comes in two flavors: horizontal/extensive and vertical/intensive. Horizontal or extensive progress basically means copying things that work. In one word, it means simply “globalization.” Consider what China will be like in 50 years. The safe bet is it will be a lot like the United States is now. Cities will be copied, cars will be copied, and rail systems will be copied. Maybe some steps will be skipped. But it’s copying all the same.

Vertical or intensive progress, by contrast, means doing new things. The single word for this is “technology.” Intensive progress involves going from 0 to 1 (not simply the 1 to n of globalization). We see much of our vertical progress come from places like California, and specifically Silicon Valley. But there is every reason to question whether we have enough of it. Indeed, most people seem to focus almost entirely on globalization instead of technology; speaking of “developed” versus “developing nations” is implicitly bearish about technology because it implies some convergence to the “developed” status quo. As a society, we seem to believe in a sort of technological end of history, almost by default.

It’s worth noting that globalization and technology do have some interplay; we shouldn’t falsely dichotomize them. Consider resource constraints as a 1 to n subproblem. Maybe not everyone can have a car because that would be environmentally catastrophic. If 1 to n is so blocked, only 0 to 1 solutions can help. Technological development is thus crucially important, even if all we really care about is globalization.

…Maybe we focus so much on going from 1 to because that’s easier to do. There’s little doubt that going from 0 to 1 is qualitatively different, and almost always harder, than copying something times. And even trying to achieve vertical, 0 to 1 progress presents the challenge of exceptionalism; any founder or inventor doing something new must wonder: am I sane? Or am I crazy?

From Blake Masters notes

 

 

LARPing

“For employees (campaign staff), there is an opportunity for live-action roleplaying (LARPing) disruption instead of actually taking the existential risks of disrupting. LARPing disruption is fun..Don’t mistake LARPing disruption for the real thing.Venkatesh Rao on “Software Adoption Bullshit” via Ribbonfarm newsletter

“The High Modernists claimed to be about figuring out the most efficient and high-tech way of doing things, but most of them knew little relevant math or science and were basically just LARPing being rational by placing things in evenly-spaced rectangular grids.” Review of “Seeing Like A State” by Scott Alexander

I first internalized the meaning of this phrase when I saw it in the Ribbonfarm newsletter above.

LARPing suddenly crystallized and gave a name to a phenomenon I have witnessed my whole life: people playing roles as though they were in a solipsistic theater, rather than living their roles.

LARPing is common amongst the wealthy, where dilettantism is endemic. I know of entire companies that exist merely to provide a realistic LARPing set for someone to play CEO / Founder, with sometimes hundreds of employees cast as actors in their personal drama.

It reminds me of the old vituperative “poseur“, but LARPing is more collaborative. You need a cast to play along. It is group or collective posing.

 

 

Amazon’s Leadership Principles

Jeff Bezos recent shareholder newsletter has received much praise in the tech press. Inc drew special attention to his principle of “Disagree and commit.”

When I read the article, this principle felt familiar to me, then I remembered where I had seen it before. It is the 13th Amazon Leadership Principle:

“Have Backbone; Disagree and Commit

Leaders are obligated to respectfully challenge decisions when they disagree, even when doing so is uncomfortable or exhausting. Leaders have conviction and are tenacious. They do not compromise for the sake of social cohesion. Once a decision is determined, they commit wholly.”

The rest of the principles are also well worth remembering.

See also:

Communication is Failure

 

 

Skills for the 21st Century

From 2011, but good. The four drivers of change:

  1. Longevity, in terms of the age of the workforce and customers – Retiring Later
  2. Smart machines, to augment and extend human abilities – Workplace Automation
  3. A computational world, as computer networks connect – Internet of Everything
  4. New media, that pervade every aspect of life – Online Privacy
  5. Superstructed organizations, that scale below or beyond what was previously possible – AirBNB
  6. A globally connected world, with a multitude of local cultures and competition from all directions- Geek NationFrom http://jarche.com/2014/07/four-basic-skills-for-2020/

Matched by the 10 core skills:

  1. Sense making –  Ability to determine the deeper meaning or significance of what is being expressed
  2. Social intelligence –  Ability to connect to others in a deep and direct way, to sense and stimulate reactions and desired interactions
  3. Novel and adaptive thinking –  Proficiency at thinking and coming up with solutions and responses beyond that which is rote or rule-based
  4. Cross cultural competency –  Ability to operate in different cultural settings
  5. Computational thinking–  Ability to translate vast amounts of data into abstract concepts and to understand data based reasoning
  6. New Media Literacy – Ability to critically assess and develop content that uses new media forms, and to leverage these media for persuasive communication
  7. Transdisciplinary –  Literacy in and ability to understand concepts across multiple disciplines
  8. Design Mindset –  Ability to represent and develop tasks and work processes for desired outcomes
  9. Cognitive load management –  Ability to discriminate and filter information for importance, and to understand how to maximize cognitive functions
  10. Virtual collaboration – Ability to work productively, drive engagement, and demonstrate presence as a member of a virtual teamFrom http://www.top10onlinecolleges.org/work-skills-2020/

All started with the Institute for the Future document.

Hail the Maintainers

I am finally clearing out some old Instapaper articles. One that I really enjoyed was Andrew Russell’s examination of our civilizational obsession with “innovation” at the expense of maintenance and sustainable operability.

This is something we in cloud services learned fairly recently. Features are increasingly table stakes, fundamentals (e.g. availability, supportability, security, privacy, operability, maintainability, etc.) are the crucial differentiators.

Hail the Maintainers 

 

 

Communication is Failure

An interesting discussion last week over on the Pickax retailers episode of the Exponent podcast . Ben and James were discussing Ben’s hugely popular Amazon article The Amazon Tax.

It is a great discussion and well worth the listen, especially about how in many ways Apple and Amazon resemble their org charts. Apple has a single P&L – and they go all in for perfectly integrated appliances that fit perfectly into their ecosystem. Amazon is like AWS, an assembly of modular “primitives” (storage, compute, DB) all interacting through very well defined protocols and interfaces. So much for Steve Sinofsky’s “don’t ship the org chart” !

One thing I learned is that Amazon’s Jeff Bezos considers communications to be a sign of failure. Increased communications signals issues a failure to define interfaces. At Amazon they do not use PowerPoint because Bezo’s says “the details get lost between the bulletpoints”. Instead they use Word documents for meeting briefings. Maximum 6 pages . No powerpoint in Amazon meetings only maximum 6 page Word doc because if you cannot explain it in writing you have not thought about it enough to justify a meeting.

Love that.

The Four Elements of Leadership

Michael Lombardi, former General Manager of the Cleveland Browns and current member of the coaching staff on the New England Patriots enumerated four elements of leadership:

  • Management of attention, aka plan. Systems and processes are offshoots of management of attention.
  • Management of meaning, aka communication – explain the plan.
  • Management of trust – consistency and no double standards.
  • Management of self – self-criticism and humility. Honesty. Admit mistakes and correct course.

He also quoted Bobby Kennedy – “Guide your life by principle not ambition”. Not sure if its accurate but I like the quote.

From The Knowledge Project podcast