Blockchain, Self-Sovereign Identity, and Selling Off Humanity

Reposted with permission from Wrench in the Gears.

facial recognition
refugee iris scans

Digital currency payments validated with biometric information like iris scans have been prototyped using refugee populations over the past few years (see the featured image). While the technology that undergirds it is complex, programmers are developing accessible interfaces that make using digital currency as easy as opening an app and verifying a transaction, financial or otherwise, with a thumbprint or facial-recognition scan.

It’s time activists began to develop a working knowledge of Blockchain and self-sovereign digital identity, because these are the mechanisms that will drive the transition to IoT monitoring for the purposes of Pay for Success deal evaluation. I created a slide share about Blockchain as part of a “Smart Cities” post I wrote last year, which can be accessed here if it helps to have visuals.

 

Blockchain Slideshare

 

The technology became public in 2008 when Santoshi Nakamoto published the whitepaper “Bitcoin: A Peer to Peer Electronic Cash System.” No one knows who Nakamoto actually is. Over the past decade Bitcoin digital currency has generated significant buzz, yet many believe Blockchain will be even more transformative, as big as or bigger than the rise of the Internet.

MIT is heavily involved in Blockchain research and development through its Digital Currency Initiative, housed within the MIT Media Lab. The program is led by Neha Nerula, formerly of Google who holds a PhD from MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL). Nerula served on the World Economic Forum’s Global Future Council on Blockchain from 2016-2017. Its faculty advisor, Simon Johnson, co-founded the Sloan School’s Global Entrepreneurship Lab and worked as chief economist for the International Monetary fund.

In an April 2018 article, “In Blockchain We Trust,” Michael Casey, global economics professor, goes into detail regarding the use of Blockchain to create “value” in virtual worlds by securing ownership of digital assets. As we kill off the planet and begin spending more and more time in online environments, there’s cold comfort knowing the forces of global monopoly capital are rapidly colonizing digital worlds, too.

Blockchain is the structure that underpins crypto-currencies like Bitcoin, but it’s much more than that. In its simplest terms, it’s a ledger that keeps track of transactions, all kinds of transactions that may or may not have a financial component. Unlike a dusty accounting ledger or its modern equivalent, something like Quick Books, data stored on Blockchain is distributed. This means multiple exact copies of the same encrypted data live on peer-to-peer networked computers, which supposedly makes it more secure. If one node goes down the information is not lost. It is portrayed as the ultimate “permanent record.”

Data stored on Blockchain is “verified” by computers that use a consensus process, competing to solve cryptographic puzzles in exchange for Bitcoin payments. This cryptographic authentication injects “trust” into transactions, enabling security without the need of a third party to ensure everyone is on the up and up. Once data is locked into Blockchain, promoters of the technology say it is immutable, unchangeable. Although, as with everything coded, there are still vulnerabilities and hacks as discussed in this MIT Technology Review article “How secure is blockchain really?”

It may be some indication of the level of actual “trust” developers have in blockchain that the Chamber of Digital Commerce and Coin Center created the Blockchain Alliance in the fall of 2015 to “pro-actively engage” with regulatory and law enforcement agencies. In the United States, government partners include: DEA, DHS, DOJ, FBI, US Marshal Service, US Secret Service, ICE/HSI, CBP, IRS-Criminal Investigation, FDA, US Postal Inspection, Commidity and Futures Trading Commission, SEC, FTC, FDIC, as well Attorney General’s Offices in California, Texas, New York, and Ulster County. Seems they have some rather powerful partners.

 

 

 

Some Blockchains are public, others are private. Data stored on private chains can be made accessible using a combination of matched public and private “keys.” A public key is used to verify and encrypt data. It is public and can be known by anyone. A private key decrypts data that has been encrypted with its paired public key. These keys consist of extremely long sets of characters, which can be shortened to a public key fingerprint or associated with biometric information via a biocryptic process.

Digital currency payments validated with biometric information like iris scans have been prototyped using refugee populations over the past few years (see the featured image). While the technology that undergirds it is complex, programmers are developing accessible interfaces that make using digital currency as easy as opening an app and verifying a transaction, financial or otherwise, with a thumbprint or facial-recognition scan.

Beyond their capacity to hold tokenized digital currencies, e-wallets are being used to hold all sorts of other information. They are touted as an effective means to manage the continuous flows of activity, money, and data that surround us. In the fall of 2016, the state of Illinois; home to many Pay for Success players including: James Heckman, JB Pritzker, Rahm Emmanuel, the MacArthur Foundation, and the Chicago Mercantile Exchange (trading financial and commodity derivatives), charged a Blockchain Taskforce with examining ways to use the technology to promote economic development in the state and “improve record keeping.” Their final report, issued in January, is available here. Below is a map of the players involved. Click here for the interactive version.

Included in the report is an info-graphic I have shared repeatedly. It depicts public welfare food benefits being put on Blockchain with “healthy” eating nudges built into the mechanics. Memorize this. Internalize it. This how they will deploy computer code to control the growing masses of the poor. See Carolyn Leith’s great post “Do you believe Universal Basic Income will save society? Think again.” Putting “friction” in the system is not limited to SNAP benefits. Similarly coded nudges could just as easily be inserted into “choice” options around education savings accounts, healthcare access, and housing vouchers. How about Sesame Credit? It’s not too much of a stretch to imagine citizen scoring being embedded into these systems as well.

In the fall of 2017, Illinois announced a partnership with Evernym, a Utah-based company that develops digital identity solutions. They plan to put birth certificates on Blockchain. Increasing attention is being paid to the field of self-sovereign identity. The premise, if you go along with it, is that you no longer need a centralized authority to recognize your identity. A person can simply build up a digital identity through recorded transactions stored on Blockchain. Un-housed people in major cities are being scooped up as test subjects.

Austin has undertaken such a program with financial support from Bloomberg “What Works Cities” Philanthropies. This population is also one that requires significant support, making them prime candidates for Pay for Success interventions. Of course the impact of the interventions must be able to be tracked and measured, because this is an investment market after all. Self-sovereign identity makes to possible to aggregate all of that data, streamlining deal assessment. Fummi is one app in development to support such programs.

Many “smart” cities are establishing municipal ID programs, touted as a “solution” for people unable to obtain state-issued identification. It sounds good, but I can’t help but wonder if the plan is to convert these programs to self-sovereign identity apps on Blockchain in the not too distant future. Oakland’s program links to a debit card, so there is precedent for tying these IDs into digital payment systems.

Last fall the city of Philadelphia issued a Request for Proposals for the development of a municipal ID program, though it appears to have since been cancelled. The RFP expressed a desire to incorporate tracking other public services, including library access and health records, onto the card. They also wanted to build in the ability to share data with private and non-profit partner organizations via magnetized strips. See screenshot below or read the full RFP here.

This link from the Worldwide Web Consortium discusses use of DIDs or Decentralized Identifiers as key element of this new form of identity management. Of course there are downsides to efficient identity systems. During a panel at the Advanced Digital Identity Summit last fall around  timestamp 26:00, Bitcoin entrepreneur Andreas Atonopolous, cautioned the audience that digital identity systems could pose risks, especially for populations living under authoritarian regimes where governments may use digital methods to control how people interact with society.

Antonopolous described conversations he’d had in places like Argentina where people expressed serious reservations about these systems, because their government had a history of throwing dissidents out of aircraft. If private keys are tied to biometric markers, it should be expected that people will at some point be compelled by authorities to open access to their data-using force to attain a face or fingerprint scan against someone’s will. Or even if brute force were not used, to withhold access to needed services, until the person has no other choice but to submit.

Other pilot programs underway in Illinois include land titling in Cook County, academic credentialing at the University of Illinois, logging green energy task credits, and state licensing for healthcare providers. That last one is interesting; a toe in the water, perhaps, to begin shifting Medicaid onto Blockchain?

The day after I wrote “Minding our Health: Digital Nudge Part Two,” I discovered a 2016 whitepaper by Institute for the Future (creator of “Learning is Earning” and edu-blocks) “A Blockchain Profile for Medicaid Applicants and Recipients.” The paper pitches the idea of creating Blockchain smart contracts to devise “smart” health profiles that would allow AI-mediated sale of healthcare insurance and IoT monitoring of prescriptions and patient compliance. Pretty overwhelming if you consider that IFTF also imagines a future where AI assistants are going to help people navigate their lifelong-learning/human capital management plans.

I have a nagging fear we’re looking at a future where Universal Basic Income stipends proffer subsistence, just enough to keep the masses alive and compel them to sell their data for the most modest luxuries, maybe a chocolate bar. Platforms are being developed right now that encourage the widespread sale of personal data for the purposes of AI development. Access to data is granted using pseudonymous protocols that permit it to be queried without the initiator of the query knowing the actual identity of the person whose data is involved. Proponents of big-data government really want us to believe it’s ok to allow our personal data to be poured into massive data lakes as long as it remains anonymized. Check out Ocean ProtocolEnigma, and datum. I’d love to hear what you think.

Personally, I think they’re aiming to use our digital exhaust to build HAL.

 

-Alison McDowell

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Data Mining Life on the Ledger: Building Sanctuary Part 4

Reposted with permission from Wrench in the Gears.

Data Mining Life on the Ledger

The future is uncertain and unlikely to play out exactly as described. Nevertheless, we must begin to comprehend how technological developments combined with concentrated power and extreme income inequality are leading us to increasingly automated forms of oppression. My hope is that communities will begin to incorporate an understanding of this bigger picture into resistance efforts for public education and beyond. Let us join together, embracing our humanity, to fight the forces that would bring us to “lockdown.” How can we preserve our lives and those of our loved ones outside the data stream? How can we nurture community in a world where alienation is becoming normalized? What do we owe one another? What are we willing to risk? I have divided my story into seven parts. I hope you’ll read along and consider sharing it with others.

This installment of Building Sanctuary features digital identity and social credit scoring as it relates to purchasing and access to life opportunities for citizens living under authoritarian power structures. This is the fourth in a seven-part series that follows the digitally-quantified lives of sisters Cam and Li in a a near-future “Smart” City dystopia. If you wish to start reading from the beginning, follow this link to the introduction and Part One: Plugging In.

Part Two: A World Without (Much) Work

Part Three: Smart and Surveilled

Solutionists maintain control over society largely through the ledger. The ledger evolved from Blockchain, a technology first used to process digital-currency transactions like Bitcoin, Global Coin’s predecessor. But corporate and government interests saw it had far greater potential. It started out as a decentralized online system through which transactions of all sorts (purchases, education credentials, marriages, property transfers etc.) could be permanently recorded in blocks that were secured by elaborate cryptographic protocols. Over time, private blockchains came to dominate the system. These were gradually consolidated by those allied with the Solutionist agenda.

Now there is one ledger that keeps track of everything and everyone: inputs and outputs; ownership and debt; locations, activities, functions, and compliance. The ledger is the master accountant that is everywhere and nowhere. It lives on a distributed system of computers. It’s promoted as infallible, untouchable. The Solutionists suppress any information that might undermine public faith in it. In a world of uncertainty, the ledger is a held up as a symbol of unquestioning trust.

In addition to facilitating and recording transactions, the ledger also calculates citizen scores, something no one with a Citi Badge can escape. These scores rise and fall based the data each person generates within the Solutionists’ “smart systems.” People are constantly evaluated against the norms set by the authorities. If your behavior, or that of your family or even friends or acquaintances, deviates from these standards, your score drops.

People who question the system have low scores. People with extensive social networks have low scores. People who travel widely have low scores. People who access “the wrong” online materials have low scores. People who are financially unstable have low scores. Your score can be lowered for being too educated or not educated enough. People who use public services have low scores. If you have a low score, you become a target of social impact interventions, programs underwritten by private investors designed to bring your score up and reorient you to the values Solutionist society demands.

Citizen scores determine access to jobs, housing, leisure opportunities, and social relationships. They affect the prices people pay for goods and services and even the type of education and medical treatment they get. At birth Cam and Li, like everyone born outside a sanctuary zone, were assigned unique identity numbers linked to retinal scans and were each issued a Citi Badge. Their Citi Badges are connected to the ledger and hold funds from their Global Coin government stipend, student vouchers, and data currency transactions.

Both badges are tied to Talia’s, so the family’s citizen scores rise and fall together. When Talia or the girls make purchases in the real world or in a virtual world the cost is directly debited from their Global Coin balance after biometric authentication. This can be accomplished via facial recognition, retinal scan, thumbprint or heartbeat/ECG signature. Prices and fees paid are dynamic and influenced by their scores. Low score? You can expect to pay more for food, rent, and medical care. High score? You get across the board discounts and special perks like invitations to official receptions and preferential treatment when filing government paperwork.

The ledger asserted its influence slowly but insistently as people’s quantified lives were integrated into the data stream, and the real world melded with the virtual. At first, people eagerly adopted wearable technologies that augmented reality through data overlays. Phones, devices, headsets, and smart contact lenses created blended experiences that could be both innovative and disturbing. Today, wearables are no longer a novelty. People are expected to use them to manage their existence and document it through data. For instance there is now an understanding that everyone will regularly monitor their brain waves, heartbeats, sleep patterns, and other bodily functions. It calls to mind the antiquated practice of documenting oil changes and maintenance on one’s car to keep the warranty valid. Gaps in one’s health data profile could be grounds for being denied medical treatment.

As the economy was digitized, transportation and movement became increasingly circumscribed. No one has personal vehicles anymore, so unless you are walking or have a bicycle, you have to use DigiGo, the autonomous ride sharing system. The system requires you to have a Citi Badge. Access to different sectors of the city varies depending on your citizen score. Each sector has a digital border. Many opt to get implanted Citi Badge chips, which allow you to travel between sectors without manually checking in at each crossing. Citi Badge interfaces are cumbersome, and many of the newer operating systems no longer process device-based transactions.

People without chips spend a lot of time waiting; but Talia still wasn’t going down that path. The girls IoT pathways tattoos are as far as she is willing to go. They are, in theory, temporary and can be removed. She scrupulously limits the data shared about her family to the bare minimum. She kept their outdated devices, even though they are on their last legs and barely hold a charge. Whenever possible they walk, restricting their use of DigiGo to situations that absolutely demand it. They hope one day their budget will allow them to get their hands on a few refurbished bicycles. If you have a worthwhile barter, you can often find an off liner with one to trade. They are sensor free, and if outfitted properly allow flexible travel well beyond the authorized network of corridors used by self-driving vehicles.

The planet’s resources had been all but exhausted, and eventually oil and mineral mining yielded to data mining. Enormous energy demands created by the transition to Blockchain depleted the last of the petroleum reserves, forcing a rush into alternative energy infrastructure projects that could support the mining operations demanded by the ledger. Authorities had not planned ahead. Energy needs were so pressing that the systems being rolled out were not well tested, and installations often failed or created dangerous conditions for the installers and those who lived nearby.

In short order, bio-capitalist data-mining operations became nearly as profitable for investors as the extractive industries they had replaced. The automation of huge swaths of labor markets initially posed a serious problem for global capitalists. With a majority of people now jobless, what good were they to the economic system? Sure, they could still consume some products since Citi Badge provided a basic income, but how else could value be extracted? Consumption on a basic income would have to go down.

Alphadata, the world’s most powerful cloud-based computing company, had anticipated the answer. The company deftly maneuvered to a spot at the top of the extraction pyramid by providing “free” online services: communications, software, and data storage. Data would be the new oil, and the convenience the company prudently offered the world built a level of corporate wealth in data that was unsurpassed.

The complete privatization of public sector services combined with outcomes-based government contracting created a windfall for the data-mining industry. To expand these programs, success would have to conform to specific metrics that could only be cheaply aggregated via digital platforms. As global poverty rose, prospects for the data-mining sector seemed rosy indeed. Looking back, people realized how false the narrative of “free” services had been. They had given away their most valuable assets, their identity, without blinking an eye. Their online lives, their digital shadows, were now contained within the Alphadata cloud. It was a parallel universe of millions of digital lives pooled to fuel machine learning. It was these storehouses of data that powered the company’s research in artificial intelligence and led to innovations that put so many out of work.

People had been handing off their data to more companies than Alphadata, of course. All the social media platforms and e-commerce sites mined data, too. More and more people clamored for data control and ownership, which was eventually granted through digital sovereign identities stored in the ledger. Essentially, Citi Badges now serve this function. The datasets they hold are private, but people have the option of making them available for a price.

Progressive interests pitched digital identities as a way for people to monetize their data, perhaps enhance their meager Global Coin stipends. In the Global North, digital sovereign identity was ushered in through adoption of municipal identification programs associated with Smart City improvements, the precursor to Citi Badge. The technology had been beta-tested on the Global South and refugee populations years prior. Perpetual war and displacement created an ideal laboratory in which to refine these new technologies.

Data banks replaced blood banks. In a pinch, the poor could sell themselves to get by, while the rich could sit on their personal data treasure and maintain their anonymity. Even for those for who lived comfortably, data sharing was still a tricky matter. In the abstract you could attempt to keep your data from ending up on the ledger, but practically speaking no public services were accessible if you refused to participate in the biometric data system. Everything was tied to outcomes-based Pay for Success contracts, including public education. If you or your children wanted access to services, the price was entering the ledger’s data stream.

Talia hated to relinquish the family’s data, but found it necessary at times. For example when Li broke her arm in the maker space loose parts play area, Talia initiated a data currency transaction that released two years worth of the family’s purchase data to cover the unexpected medical costs. And Cam and Li’s educational data is, by default, part of the stream. The Solutionists have full access to it for the purposes of evaluating Cam and Li’s citizen scores and pay-for-success contracts with their education providers.

Talia hopes she never has to sell that to a third party; because she knows it could impact the girls’ ability to access income sharing agreements in the future. But many parents in her sector have to make hard choices to pay the rent. The Citi Badge stipend only goes so far each month, and selling educational data is a common way to make ends meet. Selling that data can lead to problems for children down the line. Data that implies academic or behavioral weaknesses can lead to students being excluded from learning opportunities; being denied opportunities to secure loans to cover tuition; being relegated to the lowest paying jobs. Nevertheless, people have to eat and keep a roof over their heads, and data currency transactions are the most common fallback they have.

The only way to leave the data stream is to go offline, which means disconnecting from the Global Coin economy entirely and losing access to all public service supports, housing, and employment. It also means finding ways to be fully human outside a digital platform, to relearn how to simply be with others without a buffer, without data, to embrace speech and touch and even the written word. People are understandably fearful of off-liners. Their rebellious insistence to exist, even in such dire conditions, outside the structured confines of Solutionist society, is a fact that has the potential to destabilize the whole enterprise.

Most try to ignore them, but a few harbor quiet hopes that a new non-digital economy might somehow, miraculously emerge from the lives they live. Such hope flickers in the hearts of a handful of hardy souls who hold fast to the possibility of a future built on trust in one another rather than trust in the ledger. Though she only admits it to herself, Talia is one who still thinks another world may be possible. How could she not? She has young children whose futures are yet unwritten. Falling into despair would hurt not only herself, but her entire family, too.

Continue to Part 5: Automated Education

Supplemental Links

Blockchain: Link

Blockchain Universal Basic Income: Link

Smartphone Augmented Reality: Link

Sesame Credit: Link and (long read but worth it) Link

Entrepreneurial Finance Lab Harvard: Link

MIT Digital Currency Lab: Link

Aadhar National Identity System India: Link

Aadhar Biometric Payments: Link

Biometric Bitcoin Wallet: Link

Heartbeat / ECG Biometrics: Link

Retinal Scan Payments: Link

Biometric Capitalism Talk Keith Breckinridge: Link

Black Mirror Episode Nosedive: Link

Cambridge Analytica: Link

Blockchain Technology of Trust / Goldman Sachs: Link

Blockchain Economy: Link

Blockchain Energy Consumption: Link

Dynamic / Personalized Pricing: Link and Link

Lucyd AR Glasses: Link

AR Contact Lenses: Link

Transference VR Horror Game/Film Experience: Link

IoT Digital Health Monitoring: Link

Implantable Chips for Access: Link and Payment Link

Biocapitalism: Link

Google’s Eric Schmidt Data is the New Oil: Link

Google AI Awakening: Link

Self Sovereign Identity: Link and Link and Link

Decode Digital Identity: Link

UN ID2020: Link and Link

Blockchain Data Monetizing Platforms: Link

Municipal ID Card / Payment Programs: Link and Link

Digital Colonialism: Link and Link

-Alison McDowell