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Analog, Digital + Computational Institutions

Analog, Digital + Computational Institutions

This module will continue our exploration of the transaction cost view of economic history. The past 150 years can be divided into three eras — the analog era, the digital era and the computational era. v1.02

0f2a473c07602f3dd53c5ed0de0c56b5?s=128

Daniel Martin Katz
PRO

February 04, 2019
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  1. @ computational professor daniel martin katz danielmartinkatz.com BLOCKCHAIN, CRYPTOCURRENCY AND

    LAW professor nelson rosario FROM ANALOG TO DIGITAL TO COMPUTATIONALLY INFUSED INSTITUTIONS nelsonmrosario.com @ nelsonmrosario BLOCKCHAINLAWCLASS.COM
  2. DANIEL MARTIN KATZ E D U | I L L

    I N O I S T E C H + S TA N F O R D C O D E X B LO G | C O M P U TAT I O N A L L E GA L S T U D I E S . C O M PAG E | DA N I E L M A R T I N K AT Z . C O M C O R P | L E X P R E D I C T. C O M NELSON ROSARIO B LO G | L AWO F C RY P TO C U R R E N C Y. C O M PAG E | N E L S O N M RO S A R I O . C O M F I R M | S M O L I N S K I RO S A R I O L AW P. C . BLOCKCHAINLAWCLASS.COM L A B | T H E L AW L A B . C O M E D U | I L L I N O I S T E C H - C H I C AG O K E N T L AW
  3. CRYPTO TECH (BLOCKCHAIN) SOLVES FOR A SET OF LATENT TRUST

    PROBLEMS WHICH ARE STILL PRESENT IN A VARIETY OF CONTEXTS … BLOCKCHAINLAWCLASS.COM
  4. AS HIGHLIGHTED IN EARLIER SESSIONS, CRYPTO TECH (BLOCKCHAIN) IS REALLY

    THE NOVEL COMBINATION OF SEVERAL EXISTING IDEAS AND TECHNOLOGIES … BLOCKCHAINLAWCLASS.COM
  5. WE HAVE PREVIOUSLY HIGHLIGHTED SOME IMPORTANT HISTORICAL EXAMPLES FROM THE

    PRE-ANALOG ERA … BLOCKCHAINLAWCLASS.COM
  6. IN EACH OF THESE EXAMPLES WE HAVE BEEN ABLE TO

    LOWER TRANSACTION COSTS AND THEREBY EXTEND THE AMOUNT OF TRANSACTING … BLOCKCHAINLAWCLASS.COM
  7. MESOPOTAMIA GREECE ROME MEDIEVAL ERA MERCHANT LAW RENAISSANCE PRE ANALOG

    ERA THE CORPORATION MARITIME LAW + INSURANCE HUNTER GATHERERS CODE OF HAMMURABI SOME EARLY TRANSACTION ENHANCING INNOVATIONS AND SOCIETIES BLOCKCHAINLAWCLASS.COM
  8. THREE RECENT ERAS

  9. WE COULD DIVIDE UP THE PAST ~150 YEARS INTO THREE

    SEPARATE ERAS ANALOG ERA DIGITAL ERA COMPUTATIONAL ERA BLOCKCHAINLAWCLASS.COM
  10. IN THE THREE MOST RECENT ERAS THERE ARE A VARIETY

    OF TRENDS WHICH ULTIMATELY LEAD US TO THE PRESENT … BLOCKCHAINLAWCLASS.COM
  11. EACH ERA LAYERS UPON THE PRIOR PERIODS … ANALOG ERA

    DIGITAL ERA COMPUTATIONAL ERA BLOCKCHAINLAWCLASS.COM
  12. OR ALTERNATIVELY CAN BE THOUGHT OF AS A COMBINATORIC IDEA

    REMIX ELEMENTS OF THESE TRENDS ARE COMBINATORIALLY REMIXED IN VARIOUS NOVEL WAYS BLOCKCHAINLAWCLASS.COM
  13. BLOCKCHAINLAWCLASS.COM https://www.ted.com/talks/matt_ridley_when_ideas_have_sex MATT RIDLEY - WHEN IDEAS HAVE SEX

  14. TELEGRAPH TELEPHONES INTERNET LONG TAIL COMMERCE (MERCHANT LAW TAKE 2)

    CRYPTO INFRASTRUCTURE ANALOG ERA DIGITAL ERA COMPUTATIONAL ERA INTERNET OF THINGS FIAT CURRENCY EARLY COMPUTERS GLOBALIZATION PERSONAL COMPUTERS ARTIFICIAL INTELLIGENCE AUTOMOBILE CREDIT CARDS CHARGE CARDS BLOCKCHAINLAWCLASS.COM
  15. None
  16. ANALOG ERA

  17. TELEGRAPH TELEPHONES ANALOG ERA EARLY COMPUTERS AUTOMOBILE CHARGE CARDS

  18. AT&T WAS ACTUALLY - AMERICAN TELEPHONE AND TELEGRAPH COMPANY NETWORKED

    TELECOMMUNICATIONS FOR THOSE WHO MIGHT NOT REMEMBER BLOCKCHAINLAWCLASS.COM
  19. MORSE AND THE TELEGRAPH COULD QUICKLY PASS MESSAGES OVER LONG

    GEOGRAPHIC DISTANCES BLOCKCHAINLAWCLASS.COM
  20. MORSE AND THE TELEGRAPH THIS INVENTION INCREASED THE ACCURACY AND

    SPEED OF INFORMATION FLOW BLOCKCHAINLAWCLASS.COM
  21. TELEPHONE WAS A CONTINUATION OF THESE TRENDS ALEXANDER GRAHAM BELL'S

    TELEPHONE PATENT DRAWING, MARCH 7, 1876 BLOCKCHAINLAWCLASS.COM
  22. AUTOMOBILES FURTHER REDUCED THE DISTANCE BETWEEN INDIVIDUALS BLOCKCHAINLAWCLASS.COM

  23. THE EARLIEST COMPUTING HUMANS WERE THE ORIGINAL COMPUTERS BLOCKCHAINLAWCLASS.COM

  24. ANALOG COMPUTING MACHINE AT THE LEWIS FLIGHT PROPULSION LABORATORY CIRCA

    1949 (VIA WIKIPEDIA) HTTPS://EN.WIKIPEDIA.ORG/WIKI/ANALOG_COMPUTER BLOCKCHAINLAWCLASS.COM
  25. None
  26. DIGITAL ERA

  27. TELEGRAPH TELEPHONES INTERNET LONG TAIL COMMERCE (MERCHANT LAW TAKE 2)

    ANALOG ERA DIGITAL ERA FIAT CURRENCY EARLY COMPUTERS GLOBALIZATION PERSONAL COMPUTERS AUTOMOBILE CREDIT CARDS CHARGE CARDS
  28. WE CALL THIS THE ANALOG ERA BECAUSE ANALOG COMPUTING BECOMES

    DIGITAL COMPUTING …
  29. ANALOG COMPUTING MACHINE AT THE LEWIS FLIGHT PROPULSION LABORATORY CIRCA

    1949 (VIA WIKIPEDIA) HTTPS://EN.WIKIPEDIA.ORG/WIKI/ANALOG_COMPUTER BLOCKCHAINLAWCLASS.COM
  30. EARLY DIGITAL COMPUTING HTTPS://EN.WIKIPEDIA.ORG/WIKI/ HISTORY_OF_COMPUTING_HARDWARE#EARLY_DIGITAL_COMPUTER_CHARACTERISTICS BLOCKCHAINLAWCLASS.COM

  31. EARLY DIGITAL COMPUTING HTTPS://EN.WIKIPEDIA.ORG/WIKI/HARVARD_MARK_I BLOCKCHAINLAWCLASS.COM

  32. EARLY DIGITAL COMPUTING HTTPS://EN.WIKIPEDIA.ORG/WIKI/HARVARD_MARK_I BLOCKCHAINLAWCLASS.COM

  33. PERSONAL COMPUTING BLOCKCHAINLAWCLASS.COM

  34. MOORE’S LAW ! WE OBTAIN MASSIVE GAINS IN PROCESSOR SPEED

    BLOCKCHAINLAWCLASS.COM
  35. WE OBTAIN MASSIVE DECREASES IN DATA STORAGE COSTS Kryder’s Law

    ! BLOCKCHAINLAWCLASS.COM
  36. AND THEN WE GO NANO … BLOCKCHAINLAWCLASS.COM

  37. COMPUTERS BECOME CONNECTED https://www.youtube.com/watch?v=UlJku_CSyNg THIS IS WHAT MUCH OF THE

    BLOCKCHAIN CONVERSATION SOUNDS LIKE TODAY BLOCKCHAINLAWCLASS.COM
  38. AMONG THE TRANSITIONS, WE SEEK TO TAKE OUR PHYSICAL MARKETPLACES

    AND MOVE THEM INTO THE DIGITAL SPHERE … BLOCKCHAINLAWCLASS.COM
  39. WE ARE ABLE TO LEVERAGE THE INTERNET TO EXPAND COMMERCE

    BY LOWERING THE TRANSACTION COSTS ASSOCIATED WITH FINDING BUYERS BLOCKCHAINLAWCLASS.COM
  40. “TRADITIONAL RETAIL ECONOMICS DICTATE THAT STORES ONLY STOCK THE LIKELY

    HITS, BECAUSE SHELF SPACE IS EXPENSIVE. BUT ONLINE RETAILERS (FROM AMAZON TO ITUNES) CAN STOCK VIRTUALLY EVERYTHING, AND THE NUMBER OF AVAILABLE NICHE PRODUCTS OUTNUMBER THE HITS BY SEVERAL ORDERS OF MAGNITUDE. THOSE MILLIONS OF NICHES ARE THE LONG TAIL, WHICH HAD BEEN LARGELY NEGLECTED UNTIL RECENTLY IN FAVOR OF THE SHORT HEAD OF HITS.” BLOCKCHAINLAWCLASS.COM
  41. BUT TO DO SO WE HAD TO GRAFT OUR ANALOG

    INSTITUTIONS FOR AN ONLINE DIGITAL WORLD … BLOCKCHAINLAWCLASS.COM
  42. MERCHANT LAW (TAKE 2)

  43. THERE IS A MODERN VERSION OF LEX MERCATORIA BLOCKCHAINLAWCLASS.COM

  44. Mark Twain** **It is a quote that has been attributed

    to Mark Twain “HISTORY DOESN'T REPEAT ITSELF - BUT IT OFTEN RHYMES”
  45. HOW DO DISTANT STRANGERS PAY EACH OTHER VIA THE INTERNET?

    PETER THIEL AND ELON MUSK PAYPAL IN 2000 BLOCKCHAINLAWCLASS.COM
  46. ONLINE COMMERCE REQUIRES LOW FRICTION METHOD FOR RESOLVING DISPUTES SECURE

    PAYMENT BLOCKCHAINLAWCLASS.COM
  47. BLOCKCHAINLAWCLASS.COM

  48. BLOCKCHAINLAWCLASS.COM

  49. 
 (BECAUSE IT COMBINES IDEAS FROM THE DIGITAL AND COMPUTATIONAL

    ERA) BLOCKCHAINLAWCLASS.COM MODRIA COULD BE CALLED AN EARLY COMPUTATIONAL ERA COMPANY
  50. BLOCKCHAINLAWCLASS.COM 
 TYLER TECH IS THE LARGEST PLAYER IN COURT

    INFORMATION TECHNOLOGY SPHERE https://www.tylertech.com/solutions-products/modria
  51. BLOCKCHAINLAWCLASS.COM MODRIA WAS SOLD TO TYLER TECH https://www.tylertech.com/solutions-products/modria

  52. None
  53. COMPUTATIONAL ERA

  54. THERE ARE A VARIETY OF DIFFERENT WAYS TO DIVIDE UP

    RECENT HISTORY AND PROJECT FORWARD … BLOCKCHAINLAWCLASS.COM
  55. THE WORLD ECONOMIC FORUM CALLS THIS THE ‘FOURTH INDUSTRIAL REVOLUTION’

    BLOCKCHAINLAWCLASS.COM
  56. BLOCKCHAINLAWCLASS.COM

  57. WE WOULD CALL IT THE COMPUTATIONAL AGE … BLOCKCHAINLAWCLASS.COM

  58. IN OTHER WORDS, THIS IS NO LONGER THE DIGITAL AGE

    BUT RATHER THE EARLY COMPUTATIONAL AGE BLOCKCHAINLAWCLASS.COM
  59. SOME OF THE INGREDIENTS OF THE COMPUTATIONAL ERA … BLOCKCHAINLAWCLASS.COM

  60. CRYPTO INFRASTRUCTURE INTERNET OF THINGS ARTIFICIAL INTELLIGENCE + + ETC.

    + { } BLOCKCHAINLAWCLASS.COM
  61. TELEGRAPH TELEPHONES INTERNET LONG TAIL COMMERCE (MERCHANT LAW TAKE 2)

    CRYPTO INFRASTRUCTURE ANALOG ERA DIGITAL ERA COMPUTATIONAL ERA INTERNET OF THINGS FIAT CURRENCY EARLY COMPUTERS GLOBALIZATION PERSONAL COMPUTERS ARTIFICAL INTELLIGENCE AUTOMOBILE CREDIT CARDS CHARGE CARDS BLOCKCHAINLAWCLASS.COM
  62. INDEED HERE IS THE KATZ, BOMMARITO + ZELNER BLOG WHICH

    HAS BEEN RUN SINCE 2009 (FEEL FREE TO SET THIS AS YOUR HOMEPAGE) HTTPS://COMPUTATIONALLEGALSTUDIES.COM/ BLOCKCHAINLAWCLASS.COM
  63. None
  64. YOU CAN THINK OF EVERY INDIVIDUAL AND/ OR PROCESS AS

    A FORM OF COMPUTATION … BLOCKCHAINLAWCLASS.COM
  65. INDEED THERE ARE STRONG VIEWS AT THE BOUNDARY OF PHYSICS

    AND PHILOSOPHY WHICH EXPLORE THE NOTION OF ‘UNIVERSAL COMPUTATION’ BLOCKCHAINLAWCLASS.COM
  66. BLOCKCHAINLAWCLASS.COM

  67. “ …. The third interpretation, which of course is more

    controversial, arises if we imagine that the universe is itself a computer and that what it's doing is performing a computation. If this is the case, these numbers say how big that computation is — how many ops have been performed on how many bits within the horizon since the universe began. That, of course, is more controversial, and since publishing this paper I've received what is charitably described as "hate mail" from famous scientists.” https://www.edge.org/conversation/seth_lloyd-the-computational-universe Seth Lloyd, MIT Physics Interview on Edge.org
  68. ALTHOUGH THEY HAVE BEEN GUIDED BY OR CONSTRAINED BY RULES

    (NORMS AS WELL) … BLOCKCHAINLAWCLASS.COM
  69. OUTSIDE OF THE CONTEXT OF BIOLOGY AND PHYSICS … MOST

    INSTITUTIONS PERFORM WHAT MIGHT BE CALLED COMPUTATION BLOCKCHAINLAWCLASS.COM
  70. THE DECISION MAKING IN SUCH INSTITUTIONS HAS BEEN LARGELY OR

    EXCLUSIVELY HUMAN CENTRIC BLOCKCHAINLAWCLASS.COM
  71. THE RISE OF COMPUTATIONAL AGE IS IN PART ABOUT RECONSIDERING

    THE ROLE OF HUMAN CENTRIC EXPERTISE … BLOCKCHAINLAWCLASS.COM
  72. AND PERHAPS THE IMPLEMENTATION OF VARIOUS RULES … BLOCKCHAINLAWCLASS.COM

  73. THERE IS A THEORETICAL IDEA OF LAW AS CODE BLOCKCHAINLAWCLASS.COM

  74. EVEN MORE COMPELLING IS CODE AS LAW https://www.slideshare.net/mjbommar/university- of-houston-law-and-computation-workshop #COMPUTATIONALLAW

    #IMPLEMENTATION #ENGINEERING (PRIVATE LAW OR PUBLIC LAW) BLOCKCHAINLAWCLASS.COM
  75. STILL EARLY DAYS BUT COMPUTATIONAL LAW IS GETTING SOME TRACTION

  76. STILL EARLY DAYS BUT COMPUTATIONAL LAW IS GETTING SOME TRACTION

    https://www.thelawlabchannel.com/eric- wood-contracts-code-and-automation BLOCKCHAINLAWCLASS.COM ERIC WOOD CHAPMAN AND CUTLER
  77. CONFERENCE AT INTERSECTION OF LAW, FINANCE + TECH FinLegalTechConference.com

  78. None
  79. ANALOG DIGITAL COMPUTATIONAL

  80. THESE PHASES MAP REASONABLY WELL ON TO WHAT WE HAVE

    SEEN (AND WILL LIKELY SOON SEE) IN THE FIELD OF LEGAL INNOVATION
  81. COMPUTATIONAL Chaos + Complexity Process + Predictability Reinvention + Value

    Creation ANALOG DIGITAL
  82. (1) CONTRACTS / TRANSACTIONS

  83. CHAOS + COMPLEXITY

  84. CHAOS + COMPLEXITY PROCESS + PREDICTABILITY

  85. Contract Management Dashboard Open Contracts for Review 150 11.7% compared

    to 170 this time last year Contracts by Type NDA’s Master Service Agreements Contracts Reviewed (YTD) 1798 9.3.% compared to 1983 this time last year Input Risk Mitigated $6.4M 30.0% compared to $5M this time last year Average Cycle Time (YTD) 19 days 26.7% compared to 15 days last year Total Value of All Contracts $600.2M 29.6% compared to $500M this time last year Software Licenses Sales Agreements 602 426 246 312 Global Filters from 01/01/2017 Status to 12/31/2017 Practice Matter Type 0 7 13 20 26 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Average Contract Cycle Time Agreement Name Agreement Type Days Since Receipt Division Contracts by Complexity Low Medium High 48% 37% 15% Contracts Awaiting Review NDA Software License NDA Sales Agreement MSA John Smith HR Packet MS Jane Jones HR Packet Widget Agreement Acme Services HR IT HR Sales Team IT 3 29 8 37 56
  86. WHILE THIS IS A HELPFUL STEP IT IS NOT REINVENTION

  87. AN EXAMPLE OF REINVENTION

  88. https://medium.com/aigang-network/the-synergy- between-insurance-and-blockchain-77da2849c211

  89. “WEATHER INDEXED INSURANCE IS BASED ON LOCAL WEATHER INDICES. PAYOUTS

    ARE TRIGGERED BY THE SPECIFIED COMPONENTS OF THE INDEX RATHER THAN CROP YIELDS” https://wrma.org/weather-risk-by-application/agriculture/
  90. INSURANCE CONTRACT CONTINGENCY STORED ON BLOCKCHAIN RAW SENSOR DATA (PRIVATE

    OR PUBLIC) PREPROCESSED AND SERVED UP REGULARLY CHECK FOR CONTINGENCY SATISFACTION IF CONTINGENCY IS SATISFIED INITIATE PAYMENT OR START AUDIT PROTOCOL OR PROCEED TO FINAL HUMAN APPROVAL
  91. None
  92. THERE ARE A SIGNIFICANT NUMBER OF OTHER POTENTIAL EXAMPLES …

  93. REMEMBER IT IS THE COMBINATION WHICH IS PARTICULARLY POTENT …

    BLOCKCHAINLAWCLASS.COM
  94. https://hbr.org/2016/05/the-impact-of-the-blockchain-goes-beyond-financial-services

  95. HERE ARE JUST A FEW MORE IDEAS TO CONSIDER …

    (IN VARYING LEVELS OF DETAIL)
  96. ALLOWING RECORDS TO TALK TO ONE ANOTHER

  97. DISTRIBUTION WITHOUT CENTRAL INSTITUTIONS

  98. MODERNIZING PAYMENT TECHNOLOGY HTTPS://WWW.AMERICANEXPRESS.COM/US/CONTENT/FOREIGN-EXCHANGE/ARTICLES/CAN- BLOCKCHAIN-ELIMINATE-FRAUD-IN-PAYMENT-PROCESSING-SERVICES/

  99. INSTITUTIONS INCLUDING CORPORATIONS WITH SEMI TRANSPARENT INFRASTRUCTURE BY DESIGN

  100. MARKET(S) FOR ORACLES

  101. FINAL THOUGHTS

  102. THE QUESTION TO ASK — WHERE IS THERE UNNECESSARY TRANSACTIONAL

    FRICTION ? BLOCKCHAINLAWCLASS.COM
  103. WHERE IS THERE A CLASS OF ECONOMIC ACTIVITY WHICH HAS

    DIFFICULTY OCCURRING DUE TO AN INABILITY TO SCALE TRUST ? BLOCKCHAINLAWCLASS.COM
  104. HOW COULD WE DEVELOP SEMI-AUTONOMOUS SYSTEMS THAT CAN REPLACE OR

    AUGMENT HUMAN COMPUTATION ? BLOCKCHAINLAWCLASS.COM
  105. HOW CAN WE REINVENT THE EXISTING INFRASTRUCTURE TO SUPPORT NEW

    FORMS OF ECONOMIC, SOCIAL AND/OR POLITICAL ENGAGEMENT? BLOCKCHAINLAWCLASS.COM
  106. THIS BRINGS US FULL CIRCLE TO CRYPTO / BLOCKCHAIN WHICH

    IS THE FOCUS OF OUR COURSE BLOCKCHAINLAWCLASS.COM
  107. BLOCKCHAINLAWCLASS.COM FOR MORE MODULES VISIT

  108. DANIEL MARTIN KATZ E D U | I L L

    I N O I S T E C H + S TA N F O R D C O D E X B LO G | C O M P U TAT I O N A L L E GA L S T U D I E S . C O M PAG E | DA N I E L M A R T I N K AT Z . C O M C O R P | L E X P R E D I C T. C O M NELSON ROSARIO B LO G | L AWO F C RY P TO C U R R E N C Y. C O M PAG E | N E L S O N M RO S A R I O . C O M F I R M | S M O L I N S K I RO S A R I O L AW P. C . BLOCKCHAINLAWCLASS.COM L A B | T H E L AW L A B . C O M E D U | I L L I N O I S T E C H - C H I C AG O K E N T L AW
  109. @ computational professor daniel martin katz danielmartinkatz.com BLOCKCHAIN, CRYPTOCURRENCY AND

    LAW professor nelson rosario FROM ANALOG TO DIGITAL TO COMPUTATIONALLY INFUSED INSTITUTIONS nelsonmrosario.com @ nelsonmrosario BLOCKCHAINLAWCLASS.COM