The dominance of trusted intermediaries could be weakened by blockchain, a distributed ledger technology, one of the functions of which is to constitute timestamped proofs by replacing inter-individual trust with algorithmic trust.
Blockchain self-executing smart contracts allow us to rethink the practice in the domain of e-commerce, interbank communication, fundraising (and ICOs), justice (timestamping evidence, acts authenticated by blockchain) and businesses in numerous sectors (entertainment, AI, health, real estate, tourism, transport, etc.) which attempt to propose new services by benefiting from blockchains.
This book aims to put into perspective the technical innovations and the uses brought about by blockchain, by identifying that which has a medium- or long-term impact, all while taking into account the social, economic, judicial and administrative resistances that are likely to develop.
Table of Contents
Introduction ix
Part 1. The Blockchain: a Tool for Non-centralization and Disintermediation 1
Introduction to Part 1 3
Chapter 1. Non-centralized Architecture 7
1.1. Certified timestamping of transactions, operations, and events in a non-centralized registry 11
1.1.1. The network of nodes: the peer-to-peer architecture 12
1.1.2. The timestamping system 13
1.1.3. Recording of transactions and other operations 14
1.2. Encryption, anonymity, transparency, and verifiability in a non-centralized network 18
1.2.1. A unique approach to transparency 20
1.2.2. An advanced form of privacy by design 21
1.2.3. Blockchain and protection of trade secrets 26
1.3. The implications of a non-centralized model 28
1.3.1. Limiting the risk of data loss 29
1.3.2. The lack of a central authority 29
1.3.3. Non-centralization and game theory 29
1.3.4. Oracles and decentralization 32
Chapter 2. The Dynamics of Disintermediation 37
2.1. Self-execution of smart contracts 37
2.1.1. The notion and origins of the smart contract 37
2.1.2. The functioning of smart contracts 38
2.1.3. The reference to the notion of contract 39
2.1.4. Smart contracts - a radically autonomous approach to the contract 42
2.2. Decentralized Applications (dApps) and Decentralized Autonomous Organization (DAO) 44
2.2.1. Functioning and characteristics of dApps 44
2.2.2. User access to dApps 46
2.2.3. The economy and the monetization of dApps 49
2.2.4. Decentralized Autonomous Organization 50
2.3. Disintermediation and reduction of transaction costs 51
2.3.1. Disintermediation by blockchain 52
2.3.2. From control by intermediaries to control over intermediaries 53
2.3.3. The blockchain and trusted third parties 54
2.3.4. Crypto-asset vectors of disintermediation 55
2.3.5. A potential reduction in transaction costs 56
Chapter 3. Blockchain Prospects and Ongoing Improvements 61
3.1. Scalability 61
3.2. Blockchain interoperability 62
3.2.1. Atomic swap and Komodo 63
3.2.2. Interoperability and partnership between Hyperledger and Enterprise Ethereum Alliance (EEA) 64
3.2.3. ISO and interoperability 64
3.3. The junctions between the blockchain, the Internet of Things, and artificial intelligence 65
3.3.1. Blockchain and the Internet of Things 65
3.3.2. Blockchain and artificial intelligence 69
Part 2. Blockchain Technology for a New Socio-economic Paradigm 73
Introduction to Part 2 75
Chapter 4. Toward a Social Smart-contract? 77
4.1. Disintermediated direct democracy: perspectives opened by the blockchain 77
4.1.1. The terms of the social contract: centralized representative democracy or disintermediated direct democracy 77
4.1.2. A path between direct democracy and representative democracy: liquid democracy 80
4.1.3. Political disintermediation through blockchain and the hypothesis of a social smart-contract 82
4.2. Participation, voting, and DAOs 84
4.2.1. DAOs: new ways of participation 84
4.2.2. The Token Curated Registries 85
4.3. Registries, administration, and blockchain 86
4.3.1. Blockchain and e-Residency in Estonia 86
4.3.2. The blockchain and the opening of public data 88
Chapter 5. Proteiform and Multi-sectoral Transformations 91
5.1. Tokenization of the economy and bartering 91
5.1.1. Progressive evolution of the monetary approach to crypto-assets 91
5.1.2. The typology of crypto-assets 92
5.1.3. Crypto-assets and bartering 93
5.2. Interbank transactions and blockchain 95
5.2.1. The Banque de France’s MADRE project 98
5.3. Fundraising and ICOs 99
5.3.1. The concept of ICOs and other financing methods 99
5.3.2. The functioning of the ICOs 100
5.3.3. Regulations still uncertain 103
5.3.4. Financing social innovation 104
5.4. Legal and judicial evidence and timestamping by blockchain 105
5.4.1. Method of legal proof by blockchain 106
5.4.2. First receipts by the judicial systems 108
5.5. The renewal of the cadastral system by the blockchain 110
5.5.1. The first experiments 111
5.6. The use of blockchain in the entertainment industry 112
Conclusion 117
References 119
Index 133
