BIG DATA AND THE FUTURE OF MONEYHow Information Evolves

Daniel AustinGRIN Technologies, Inc.“The Connected Life Company”

daniel.austin@grintech.net

2nd Annual Big Data Conference

September 8th , 2014V2.0

ABOUT GRIN TECHNOLOGIES, INC.

• Founded July 4th 2014

• “The Connected Life Company”• Developing Systemsware at the Intersection of Big Data and the Internet of

Things• Coming in Q3 2015: The Connected Life Server ™

• A Platform for Connecting People, Places, and Things• Examples: Connected Car Showrooms, QSR Drive-through, Retail Engagement

• Smart People Working Hard to Solve Real Problems

THREE BIG IDEAS FOR TODAY’S TALK

1. Big Data (and Big Metadata) are Driving Big Changes in the Nature of Money Itself2. The Witnesses Principle: Big Data, Security, Privacy and Identity3. Evolution of Money Towards Autonomy and Self-Awareness

BEYOND PAYMENTS

• Payments are only a single aspect

• Our existing financial systems don’t scale for a world of 10 billions

• More important is wealth creation

• Big Data

MONEY IS A MEASURE OF ORDER

We add order to the system by doing work on it –creating and adding value by opposing entropy

Big Data is a means of imposing order on large volumes of data over long periods of time

Predictability also contributes to stability

Transparency is key factor

World

BIG DATA LETS US ASK BIG QUESTIONSHow much of human behavior is predictable?

How much of the distribution of wealth is purely historical?

How much control can we have over our own data? Is it really yours?

The answers may make us uncomfortable.

THE CONVERGENCE OF THE IOT AND BIG DATA

It’s not an accident that these technologies are coming together at the same time; the IoT wasn’t possible before we had solutions to Big Data problems.

Things

Big Data

Big Metadata

By 2020 everyone, everything and everywhere will be connected in real time. More than 50 billion connected devices will be used in the Networked Society.Source: http://www.ericsson.com/thinkingahead/networked_society

LAYER 8 HYPOTHESIS

• You are a Node on the Internet!• The Internet Connects People, Not Computers• Humans are Machines that Turn Data into Information

ARE YOU A BIG DATA PROBLEM?

• Each person will generate roughly 25 petabytes of data over the course of a lifetime• Users have little control over collection and storage• Email, documents, receipts, bills (!), your car, music, books…

• Pervasive computing multiplies the problem• Majority of data valueless out of context • Security & privacy risks may outweigh the benefits ?!

METADATA EXPLOSION

“Big Metadata” is a bigger problem than Big Data

Austin’s Law: “The Amount of Data to be Crunched Will Always Exceed the Computing Power Available.”

What are these companies’ data retention policies?

SECURITY, PRIVACY ANDPERVASIVE COMPUTING

• Security Is Protection from Harm• Privacy is Filtering Data Based on Context and Identity

• The Separation of the Self from the Group• Persona v. Identity

• These are sometimes contradictory ideas

PRIVACY & SECURITY AS COMMODITIES?

Our ability to process Big Data problems will open the door to recording a great deal of personal information – your Connected Life ™ is valuable.

As the value of security and privacy goes up, they will naturally come to be sold on the market as commodities. It’s unlikely that you’ll be able to afford them yourself.

How much of the data about your behavior can be kept truly private, given our ability to collect and manage Big Data systems?

THE “WITNESSES” PRINCIPLE

• Cellphones are “things”, so are security cameras…• “When There’s a Witness to Every Act…”

IN A WORLD OFTEN BILLION PEOPLE AND THEIR THINGS…

• Everyone will be connected – to each other• Privacy will disappear• Security (and Civility) will increase• Witnesses are a good thing ™

EVOLUTION: DIGITAL MONEY

Currency Overlay• A means of digitizing the

value of money (in existing currencies)

• Respects the sovereign currency system – transparent and credible

• Allows for digital storage and transfer of funds

• Provided by commercial services

• Reduces anonymity• Made possible by Big Data

Virtual Currency• Standalone (convertible?)

currency• Lies outside the sovereign

currency system• May be subject to instability • Irreversible transactions offer

high levels of anonymity – but at high risk

• May not enjoy the trust factor associated with nation-based financial systems

Digitally encoded currencies are only the first step

Need to add application functionality

EVOLUTION: MONEY AS AN APPLICATION

Information

Money

Create Read Update Delete

OBJECT-ORIENTED MONEY

Encapsulates Data and TransactionsMay include its own predictive models Allows for indeterministic, autonomous activity

Conditional BehaviorSmart Money dedicated to specific purposes or people

Designed to preserve and distribute stored value – wealth – over time

SELF-AWARE MONEY?

What if you wanted to send $1000 into the future, say 1,000 years?

We need a means of preserving and transferring wealth across longer timescales than existing currencies allow

By giving money sufficient autonomy and awareness we can enable action on our behalf over long periods of time.

PROGNOSTICATION - TIME HORIZONS

25-50 years

Unification of Financial and

Monetary Systems

Human, Monetary Evolution Converge

Self-aware

Financial Instruments

5 -10 yearsMoney as an

application

Monetary Flows Accelerate e^x

Privacy, Security As

Commodities

1st Autonomous Money Models

3-5 Years

Digital X-actions Dominate Globally

Evolution of Digital

Currencies

Big (Meta)Data

Drives

Big Money

“When everyone’s life is connected, that’s when the Singularity will happen.”

Daniel AustinGRIN Technologies, Inc.“The Connected Life Company”

daniel.austin@grintech.net

THANKS!

http://www.grintech.net@daniel_b_Austin

@GRINTechInc