[e-cvs] cvs commit: e/doc/talks/pisa/paper/images 1-engelbart.jpg 2-soviet.jpg 3-hubs.jpg 4-low-trust.jpg 5-bootstrap.jpg 6-exchange.jpg 7-duties.jpg 8-option.jpg 9-layering.jpg

markm@eros.cs.jhu.edu markm@eros.cs.jhu.edu
Mon, 24 Dec 2001 22:31:36 -0500 

markm       01/12/24 22:31:36

  Modified:    doc/talks/pisa/paper index.html
  Added:       doc/talks/pisa/paper/images 1-engelbart.jpg 2-soviet.jpg
                        3-hubs.jpg 4-low-trust.jpg 5-bootstrap.jpg
                        6-exchange.jpg 7-duties.jpg 8-option.jpg
                        9-layering.jpg
  Log:
  with images, badly

Revision  Changes    Path
1.2       +97 -66    e/doc/talks/pisa/paper/index.html

Index: index.html
===================================================================
RCS file: /cvs/e/doc/talks/pisa/paper/index.html,v
retrieving revision 1.1
retrieving revision 1.2
diff -u -r1.1 -r1.2
--- index.html	2001/12/25 02:54:18	1.1
+++ index.html	2001/12/25 03:31:36	1.2
@@ -49,8 +49,8 @@
         </TR>
       </TABLE>
       <hr>
-      <!-- #BeginEditable "LongBody" --> <b>Introduction</b>
-<p>As Hernando De Soto highlights in The Mystery of Capital, the people 
+      <!-- #BeginEditable "LongBody" --> <b>Introduction</b> 
+      <p>As Hernando De Soto highlights in The Mystery of Capital, the people 
         of the third world do not suffer from a lack of assets; rather, they suffer 
         from a lack of capital. As a simple example, the house you live in, from 
         which no one would attempt to evict you, is an asset. A mortgage on that 
@@ -78,7 +78,8 @@
         of rules about who owns what, and how they may interact and exchange the 
         property they own. A deeper and subtler failure is at work here. There 
         is another brick to be identified and removed.</p>
-      <p><b>The Brick</b></p>
+      <p><b><img src="images/1-engelbart.jpg" width="400" height="300" align="right">The 
+        Brick</b></p>
       <p>In the early days of computers, Doug Englebart, who was fascinated with 
         augmentation of the human mind, was asked, what does augmentation mean 
         exactly? What is an example? Realizing that it is very hard to visualize 
@@ -104,7 +105,7 @@
         hiding there as well. In fact, there are two other bricks that have been 
         identified, one of which is in the process of being lifted in America 
         as we speak, a brick that takes this nominally open society to an extreme 
-        new level of openness. </p>
+        new level of openness. <img src="images/2-soviet.jpg" width="400" height="300" align="right"></p>
       <p>The right of free speech, which underpins so much of the strength of 
         western civilization, is being transformed by the Net. In today's Web-enhanced 
         society, freedom of speech is no longer a right which is to be negotiated 
@@ -145,7 +146,8 @@
         when the Berlin Wall fell was that, once government was out of the way, 
         the market would take care of the people. This has proven tragically wrong. 
         What else is missing, what other bricks must be removed?</p>
-      <p>It seems clear that another brick is the one that distinguishes low-trust 
+      <p><b><img src="images/3-hubs.jpg" width="400" height="300" align="right"></b>It 
+        seems clear that another brick is the one that distinguishes low-trust 
         from high-trust societies (Fukiyama). Trust relationships directly impact 
         what types of business relationships are possible. It is not so much the 
         absence of direct trust between individual participants that holds a society 
@@ -179,11 +181,12 @@
         beings have the cognitive power to form direct trust relationships with 
         only a very tiny fraction of the number of people in the society; the 
         WTTPs enable us to have indirect trust relationships with virtually everyone.</p>
-      <p>From a simple graph-theoretic point of view, we can analyze the Fukiyama 
-        low-trust world (in which the local networks are small) and the de Soto 
-        missing-WTTP world (in which the hubs are absent), and immediately recognize 
-        which one has the greater impact on a society's effectiveness: it is the 
-        absence of the WTTPs that ultimately prevent society-wide trust relationships 
+      <p><img src="images/4-low-trust.jpg" width="400" height="300" align="right">From 
+        a simple graph-theoretic point of view, we can analyze the Fukiyama low-trust 
+        world (in which the local networks are small) and the de Soto missing-WTTP 
+        world (in which the hubs are absent), and immediately recognize which 
+        one has the greater impact on a society's effectiveness: it is the absence 
+        of the WTTPs that ultimately prevent society-wide trust relationships 
         from forming. </p>
       <p><b>Types of Trust</b></p>
       <p>Historically, western societies have developed specialized WTTPs that 
@@ -196,42 +199,48 @@
         of the organization might be. One broad demarcation of trusted organizations 
         is the distinction between government institutions and private institutions; 
         examples of each category can be seen in Table 1.</p>
-      <table border="1">
-        <tbody> 
-        <tr> 
-          <td><b>Trusted Government Institutions (In Western Societies)</b></td>
-          <td><b>Trusted Private Institutions (In Western Societies)</b></td>
-        </tr>
-        <tr> 
-          <td>Courts</td>
-          <td>Title Companies</td>
-        </tr>
-        <tr> 
-          <td>Police</td>
-          <td>Insurance</td>
-        </tr>
-        <tr> 
-          <td>Treasury/Central Bank/Currency Managers</td>
-          <td>Escrow</td>
-        </tr>
-        <tr> 
-          <td></td>
-          <td>Financial Instrument Exchanges</td>
-        </tr>
-        <tr> 
-          <td></td>
-          <td>Underwriters</td>
-        </tr>
-        <tr> 
-          <td></td>
-          <td>Consumer Report</td>
-        </tr>
-        <tr> 
-          <td></td>
-          <td>Roger Ebert</td>
-        </tr>
-        </tbody> 
-      </table>
+      <div align="center"> 
+        <table cellpadding="6">
+          <tbody> 
+          <tr> 
+            <td><b>Trusted Government Institutions</b> 
+              <hr>
+            </td>
+            <td><b>Trusted Private Institutions</b> 
+              <hr>
+            </td>
+          </tr>
+          <tr> 
+            <td>Courts</td>
+            <td>Title Companies</td>
+          </tr>
+          <tr> 
+            <td>Police</td>
+            <td>Insurance</td>
+          </tr>
+          <tr> 
+            <td>Treasury/Central Bank/Currency Managers</td>
+            <td>Escrow</td>
+          </tr>
+          <tr> 
+            <td></td>
+            <td>Financial Instrument Exchanges</td>
+          </tr>
+          <tr> 
+            <td></td>
+            <td>Underwriters</td>
+          </tr>
+          <tr> 
+            <td></td>
+            <td>Consumer Report</td>
+          </tr>
+          <tr> 
+            <td></td>
+            <td>Roger Ebert</td>
+          </tr>
+          </tbody> 
+        </table>
+      </div>
       <p><b>The Crucial Trust Specialty</b></p>
       <p>In fact, while all these trust institutions are valuable to the construction 
         of advanced societies, not all are equally crucial. de Soto's analysis 
@@ -276,7 +285,8 @@
         The process never becomes easy: each village is another major upheaval 
         in the perceptions and preferences of entrenched groups dedicated to protecting 
         the status quo. </p>
-      <p><b>The Digital Path</b></p>
+      <p><b><img src="images/5-bootstrap.jpg" width="400" height="300" align="right">The 
+        Digital Path</b></p>
       <p>How can we sidestep this brutally painful process? Perhaps with the Internet.</p>
       <p><font color="#000000">For goods that can be exchanged electronically, 
         the Internet has wiped out geography and jurisdiction. If the function 
@@ -320,31 +330,52 @@
         clauses which require separate enforcement after contract breach, as is 
         typical in traditional contracts. </font><font color="#ff0000">(ref Nick 
         Szabo and Ode)</font><font color="#000000">. </font></p>
-      <p><font color="#000000">The basic metaphor for the composition of smart 
-        contracts is the board game. When two people negotiate a contract, they 
-        are jointly designing the rules of a game they would both be willing to 
-        play. To start the actual play, they turn the board management over to 
-        a contract host and start moving assets onto the board, where the contract 
-        host escrows the assets for completion. These assets, represented as <i>erights</i> 
-        in the electronic context, are the pieces on the board; the players make 
-        the moves, but the only moves deemed legal by the code, in the context 
-        of the current state of the board, are allowed.</font></p>
-      <p><font color="#000000">In the simple example illustrated in Figure X, 
-        we have a 5-party game (contract). Alice wishes to buy stock from Bob. 
-        The contract host escrows money from Alice (managed by the currency issuer) 
-        and stock from Bob (managed by the stock issuer). Once the money and the 
-        stock have both been placed on the board, the contract host transfers 
-        title on both assets to the recipients, and the game is over. </font></p>
-      <p><font color="#000000">Games such as this can be arbitrarily sophisticated, 
-        requiring only more sophisticated software to embody them. A slightly 
-        more sophisticated example is the covered call option. (see figure).</font></p>
+      <p><font color="#000000"><img src="images/6-exchange.jpg" width="400" height="300" align="right">The 
+        basic metaphor for the composition of smart contracts is the board game. 
+        When two people negotiate a contract, they are jointly designing the rules 
+        of a game they would both be willing to play. To start the actual play, 
+        they turn the board management over to a contract host and start moving 
+        assets onto the board, where the contract host escrows the assets for 
+        completion. These assets, represented as <i>erights</i> in the electronic 
+        context, are the pieces on the board; the players make the moves, but 
+        the only moves deemed legal by the code, in the context of the current 
+        state of the board, are allowed.</font></p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p><font color="#000000"><img src="images/7-duties.jpg" width="400" height="300" align="right">In 
+        the simple example illustrated in Figure X, we have a 5-party game (contract). 
+        Alice wishes to buy stock from Bob. The contract host escrows money from 
+        Alice (managed by the currency issuer) and stock from Bob (managed by 
+        the stock issuer). Once the money and the stock have both been placed 
+        on the board, the contract host transfers title on both assets to the 
+        recipients, and the game is over. </font></p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p><font color="#000000"><img src="images/8-option.jpg" width="400" height="300" align="right">Games 
+        such as this can be arbitrarily sophisticated, requiring only more sophisticated 
+        software to embody them. A slightly more sophisticated example is the 
+        covered call option. (see figure).</font></p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
+      <p>&nbsp;</p>
       <p>One feature of contract hosts that is particularly important in the context 
         of idiosyncratic local village property laws is this: embodying the contract 
         in a smart contract is that the trust is &quot;outsourced&quot; from the 
         specialized contract knowledge needed in traditional WTTPs: The owners 
         of the computer that is acting as a smart contract host do not know, and 
         do not need to know, anything about the nature of the contract. </p>
-      <p>As a consequence, the local village's unique definition of property rights 
+      <p><img src="images/9-layering.jpg" width="400" height="300" align="right">As 
+        a consequence, the local village's unique definition of property rights 
         can in principle be embodied in a smart contract, which can be executed 
         with perfect integrity on a WTTP contract server on a different continent, 
         where no one has ever even heard of the village that created this set 



1.1                  e/doc/talks/pisa/paper/images/1-engelbart.jpg

Index: 1-engelbart.jpg
===================================================================


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1.1                  e/doc/talks/pisa/paper/images/2-soviet.jpg

Index: 2-soviet.jpg
===================================================================


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1.1                  e/doc/talks/pisa/paper/images/9-layering.jpg

Index: 9-layering.jpg
===================================================================


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