BITCOIN MACHINES & INTELLIGENT AGENTS

How
Bitcoin Machines
enable
Intelligent Agents
of the (near) Future in a
New Machine Economy
BlockChain-Industries.com (@BCIberlin) - Easy Access to Unlimited Hashing Power for the New Machine Economy.

Let's first talk about:
“Bitcoin Machines”
… they are actually “Blockchain Machines”
Why is that important?
(Tip: it is not because Blockchain = cool, and Bitcoin not so anymore ...)
Bitcoin is just one Application of the Blockchain
serving two purposes:
1) Digital Currency
2) Billing Mechanism for Blockchain Functions

You will likely think of Bitcoin / Blockchain Machines as:
“Mining” Hardware
(to 'make' Bitcoins)
How is this hardware different
from all other computer hardware?
And why does this difference
make things so exciting?

ALL your SmartPhones, Laptops, PCs, Servers, Supercomputers, Network Devices
are based on FLOATING POINT Technology.
The add-on Security in the form of Encryption is NOT very secure:
clear-text 1's and 0's are wrapped in a blanket of encryption on the outer shell.
It only takes a more powerful FLOP computer to break it,
a 'Master Key', Secret Court Orders, or skilled hackers.
ALL FLOATING POINT Technology is weak.
When Security is fairly easily compromised,
then Identity, Authentication, and Transaction Safety is gone as well.

Blockchain Machines
are completely different beasts:
they are not FLOP, but INTEGER based.
ALL they do is Forward-Hashing
SHA256 Cryptography
There is no “turning back” with forward-hashing
– so it is even safe against Quantum Computers coming one day.

FLOP Hardware & Software:
Clear-Text Operations retro-fitted with a wide variety of
complex – yet insecure – patchwork security solutions.
Everything added to this technology is equally insecure.
Blockchain Machines & Protocol:
Forward-only Crypto-based Operations in crypto-based
network collaboration making compromise impossible.

Blockchain Machines
For the 1st
time provide really secure solutions for
Identity – Authentication – Transactions – RecordKeeping - Currency

So far for the Theory – here some Numbers:
What does it actually look like?
This is the public
Blockchain as of
15 MAR 2016:
~1.2 ExaHash/s
~7,500 Nodes
~300,000 or more
Blockchain Machines
~$750 million HW Cost
drawing an estimated
500 MegaWatts Power
plus Cooling Energy
plus Data Center, Ops
Approximately (!)
2/3rd runs on
1stGen hardware
like this:
The rest runs on
older hardware.
BitMain S7
(China, 28nm)
If all of Google's 200,000 Servers were to run the Blockchain protocol
only (and inefficiently), they would make less than 2% of the network.

This is INFANCY.
in Capacity, in Efficiency, in Hardware Cost, in Operating Cost:
over 300,000 'Toy-Box' Blockchain Machines
costing in excess of $760,000,000 to buy (short life-cycle depreciation)
costing $6,000,000 / month in Data Center housing real-estate
constantly drawing 500 MegaWatts of Electrical Power
(1 Facebook / Google Datacenter draws ~30 MW)
by the way: the monthly Block Rewards of 109,500 Bitcoin earned is worth
~$43,800,000/month (halving in 125 days); plus a small amount in transaction fees.

Now lets talk about:
Intelligent Agents
Machine-to-Machine Communications
You are already using on-demand semi-intelligent agents today,
when you click on your public transportation guide for a route.
Soon there will be independently operating machines,
which interact with each other, making unsupervised decisions,
i.e. Intelligent Agents in these fields (and likely more):
Internet of Things (IoT)
Autonomous Driving (AD)
Industry 4.0 (I4) – Supply Chain Management (SCM)

In only 4 years (by 2020) we will have over 26 Billion IoT Devices,
which are constantly communicating amongst themselves:
resulting in Trillions of small Transactions (a $2 trillion market).
For Intelligent Agents in IoT, AD, I4, SCM
it is MANDATORY they operate with
safe IDENTITY and AUTHENTICATION
for each TRANSACTION (COM or Payment).
The Blockchain is the only known platform to guarantee this safety,
and is also open-source, and vendor-neutral (no equivalent).
If adopted (a logical choice) for just one of these Agents,
it means a transaction-per-second increase on the Blockchain
from currently 2 TPS to many million TPS.

Clearly, the Blockchain costs a lot to run now.
Blockchain Machines
must become less expensive
(hardware cost per PetaHash + universal access for everyone, not selected few)
must use (a lot) less energy
(because they will still require many GigaWatts of green power in the future)
must be scalable beyond 'Toy Boxes'
(growth by factor 1,000 from 5 TeraHashes to multi-PetaHashes per Device)
But they are the (only) Enablers
for all Intelligent Agents to operate safely.
Thus Blockchain Machines are a “must have”.

THE END: THE MACHINES ARE COMING.
THIS BLOCKCHAIN MACHINE TECHNOLOGY ADVANCE
IS ALREADY BEING DONE RIGHT NOW.
Contrary to the Internet,
the Blockchain is monetized
on all levels by design.
If we use Bitcoin only as the billing mechanism
for Blockchain services (aside from all cryptocurrency use),
and bill a protocol transaction at 0.0001 BTC = €,
6 billion chatty Intelligent IoT Agents alone will more than pay
with trillions of transactions for the required
single-purpose SHA256 hashing infrastructure.

BITCOIN MACHINES & INTELLIGENT AGENTS

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