Content uploaded by Dario Rodrigues
Author content
All content in this area was uploaded by Dario Rodrigues on Oct 01, 2024
Content may be subject to copyright.
2
Digital Decentralization: Ethical Democracy via Blockchain and AI
This work is licensed under the CC BY-NC-ND 4.0 public license.
Dario de Oliveira Rodrigues
(CC) 2024.
VIDEO SERIES
LEGAL DISCLAIMER
This book is provided for informational purposes only and should not be construed as financial,
legal, or professional advice. The references to projects and applications of blockchain
technology and artificial intelligence merely illustrate the ideas and reflections presented and do
not constitute an investment recommendation. The author declines any responsibility for losses
or damages resulting from using the information and opinions in this book.
The following pages outline a strategic vision for the ethical and responsible use of digital
decentralization in various sectors, including health, finance, education, and governance. The
mentioned technologies, namely blockchain and artificial intelligence, represent a new ethical
paradigm that improves transparency, security, and efficiency while simultaneously promoting
privacy and democratizing access to fundamental information. The author acknowledges the
technical and regulatory challenges in adopting and implementing these technologies, and this
document is not a speculation about the future but rather a call to action grounded in ongoing
technological innovations and their potential to respond to urgent global challenges. It recognizes
the importance of research, development, and intersectoral collaboration to overcome obstacles
and develop practical solutions that safeguard individual rights and promote the common good. All
stakeholders — professionals, academics, technologists, politicians, and citizens — are invited to
shape a future where decentralized digital technology empowers individuals and communities to
face the challenges of the 21st century, contributing to a more just, equitable, and sustainable
society, where privacy and democratic freedom can thrive.
IMAGE CREDITS
The cover and back cover images were obtained using artificial intelligence (AI). Images from
chapters 1, 3, 4, and 6 were obtained using AI. Chapter 2 image: credit to Elisabeth Krämer-
Bannow, Public Domain, via Wikimedia Commons. Image of Chapter 5: credit to DeltaWorks, Public
Domain, via Pixabay. Image from Chapter 7 by creativeart on Freepik. Images from Chapter 8:
credit to Geralt, Public Domain, via Pixabay. Images from Chapter 9: by kjpargeter on Freepik; 9.1 –
obtained using AI. Images from Chapter 10: by jcomp on Freepik. 10.1 - credit to Geralt, Public
Domain, via Pixabay. Images from Chapter 11: obtained using AI. Images from Chapter 12: obtained
using AI; 12.1 credit to DigiPD, Public Domain, via Pixabay. Images from Chapter 13: Credit to
DigiPD, Public Domain, via Pixabay; 13.1—obtained using AI. Image of Chapter 14: credit to DigiPD,
Public Domain, via Pixabay; 14.1 by pikisuperstar on Freepik. Image of Chapter 15: obtained using
AI; 15.1 Image by jcomp on Freepik. Image of Chapter 16: credit to John-i, Public Domain, via
Pixabay; 16.1 - by rawpixel.com, Freepik. Image of Chapter 17: credit to DigitalArtist, Public
Domain, via Pixabay; 17.1 was obtained using AI.
3
INDEX
PREFACE .............................................................................................................................................. 4
INTRODUCTION ................................................................................................................................... 5
PART I .................................................................................................................................................. 7
THE ETHICAL MAP IN THE NEW ERA OF TRUST AND KNOWLEDGE ........................................................ 7
CHAPTER 1 – INCENTIVES BEGINNING: A LEDGER SYSTEM ................................................................... 8
CHAPTER 2 - BACK TO THE FUTURE OF MONEY ................................................................................... 10
CHAPTER 3 – CRYPTOGRAPHY AND ARTIFICIAL INTELLIGENCE IMPACT ............................................... 12
CHAPTER 4 - PROGRAMMABLE DIGITAL CURRENCIES ......................................................................... 14
CHAPTER 5 – CRYPTOECONOMICS ...................................................................................................... 16
CHAPTER 6 - CBDC: CENTRALIZATION OF DIGITAL MONEY .................................................................. 18
PART II ................................................................................................................................................ 20
APPLYING CRYPTOGRAPHY AND AI: ETHICAL AND POLITICAL IMPLICATIONS ...................................... 20
A - PERSONAL AND SOCIAL WELL-BEING APPLICATIONS ..................................................................... 21
CHAPTER 7 - CRYPTOGRAPHY & ARTIFICIAL INTELLIGENCE IN HEALTHCARE ........................................ 21
7.1. ETHICAL AND POLITICAL IMPLICATIONS .................................................................................................. 22
CHAPTER 8 - BLOCKCHAIN AND AI IN EDUCATION .............................................................................. 23
8.1 - ETHICAL AND POLITICAL IMPLICATIONS .................................................................................................. 24
CHAPTER 9 - BLOCKCHAIN AND AI IN PHILANTHROPY ......................................................................... 25
9.1 - ETHICAL AND POLITICAL IMPLICATIONS .................................................................................................. 26
CHAPTER 10 - BLOCKCHAIN AND AI IN ARTS AND ENTERTAINMENT ................................................... 27
10.1 - ETHICAL AND POLITICAL IMPLICATIONS ................................................................................................ 28
B - INFRASTRUCTURE AND ECONOMY APPLICATIONS ......................................................................... 29
CHAPTER 11 - BLOCKCHAIN AND AI IN ENERGY ................................................................................... 29
11.1 - ETHICAL AND POLITICAL IMPLICATIONS ................................................................................................ 30
CHAPTER 12 - BLOCKCHAIN AND AI IN FINANCE .................................................................................. 31
12.1. ETHICAL AND POLITICAL IMPLICATIONS ................................................................................................. 32
CHAPTER 13 - BLOCKCHAIN AND AI IN REAL ESTATE ........................................................................... 33
13.1 ETHICAL AND POLITICAL IMPLICATIONS .................................................................................................. 34
CHAPTER 14 - BLOCKCHAIN AND AI IN LOGISTICS ............................................................................... 35
14.1 - ETHICAL AND POLITICAL IMPLICATIONS ................................................................................................ 36
C - GOVERNANCE AND SECURITY APPLICATIONS ................................................................................. 37
CHAPTER 15 - CRYPTOGRAPHY AND AI IN GOVERNANCE .................................................................... 37
15.1 - ETHICAL AND POLITICAL IMPLICATIONS ................................................................................................ 38
CHAPTER 16 - CRYPTOGRAPHY AND AI IN SECURITY AND DEFENSE ..................................................... 39
16.1 - ETHICAL AND POLITICAL IMPLICATIONS ................................................................................................ 40
CHAPTER 17 - ADVANCED CRYPTOGRAPHY AND AI IN DIGITAL IDENTITY ............................................ 41
17.1 - ETHICAL AND POLITICAL IMPLICATIONS ................................................................................................ 42
CONCLUSIONS AND RECOMMENDATIONS .......................................................................................... 43
DETAILED LEXICON ............................................................................................................................. 44
BIBLIOGRAPHY ................................................................................................................................... 55
4
PREFACE
I write this preface with great honor and satisfaction. This book and the series it
inspired, which delve into the complexities of digital decentralization and democratic
ethics, are of immense relevance for our time, marked by rapid technological changes
and profound ethical challenges.
Human history has always been marked by innovations that alter its course, and today,
the convergence between blockchain and Artificial Intelligence represents one of these
crucial inflection points. We have witnessed the acceleration of digital technologies'
transformative power, especially in recent years, which should make us reflect. With
digital decentralization, we can redefine power structures, promoting a more just
society.
As the author, Prof. Dario Rodrigues, with whom I have frequently exchanged
impressions on the subject and who I once appointed as Head of Studies of a political
party, correctly argues, decentralization is not merely a technical issue but a
profoundly ethical one. This book and the series on which it is based offer a strategic
vision for the responsible use of these powerful technologies in various sectors such as
healthcare, finance, education, and administration. It calls on politicians,
entrepreneurs, and citizens to unite to build a sustainable future where ethics and
transparency are the fundamental pillars of society.
I have always advocated the importance of efficient, transparent, and just
administration in my political roles. When well utilized, technology can be a powerful
ally in this mission. Blockchain technology, for example, provides immutable and
transparent records and can revolutionize how we conduct elections, manage public
resources, and protect citizens' rights. This book and series present a detailed analysis
of the potential of these technologies and warn about the dangers of the absence of
ethical and adaptive regulation. The excessive centralization of digital control, as
observed in some authoritarian regimes, can lead to the erosion of individual freedoms
and mass surveillance of citizens. Therefore, the fight for digital decentralization is also
a fight for democracy.
For over 20 years, Doctor Dario Rodrigues has been investigating the political-
economic and ethical impact of the digital paradigm, masterfully guiding us through
complex concepts. He offers practical examples and future scenarios that make us
reflect on the role we want to play in this new digital world. His inspiring and
pragmatic vision urges us to act consciously and responsibly.
As I conclude this preface, I leave a message of hope and encouragement. We should
embrace these new technologies with wisdom, consistently placing human values at
the center of our actions. May digital decentralization be an instrument of
emancipation and progress, and may each of us, as global citizens, be responsible for
shaping a more ethical and democratic future.
Pedro Santana Lopes
5
INTRODUCTION
This book discusses the transformative impact of two emerging technologies,
blockchain and artificial intelligence (AI), anticipating a promising future in an
unprecedented ethical context.
Empowered with the analytical power of AI and the distributed trust provided by
blockchain technology, we must demand the indispensable political clairvoyance for an
indeed "brave new world." Once this requirement is fulfilled, we will all have robust
guarantees of data ownership (without which we would have virtually nothing),
leading to individual autonomy and full accountability. Thanks to advanced
cryptography and AI, we will reconcile transparency, privacy, and convenience in this
new world, enjoying a safe, fair, and peaceful society.
The role of these emergent technologies in reshaping political and economic
interactions is at the heart of an imminent transformation. Change is inevitable, but its
ethical direction remains undecided.
Corruption and disinformation represent the greatest threats to humanity, often
explaining the wars themselves. Both can escalate rapidly in conflict situations,
exacerbating tensions and obscuring the truth. AI potentiates these risks, enabling the
creation of increasingly sophisticated "fake news" and "deepfakes." Such manipulated
digital content, including counterfeit videos, can deceive large population segments,
undermine democratic processes, and contribute to social instability. As we will see,
the misuse of AI and blockchain illustrates how unprepared or unethical political actors
can underestimate or take advantage of these powerful technologies to amplify
disinformation and manipulate people, with severe consequences for democracy.
On the other hand, the rapid advancement of AI also carries a sizable risk of
widespread unemployment, which will affect even those not previously affected by
automation. As machines become increasingly intelligent, the political silence on this
matter is deafening. Therefore, it is the mission of this book to break it.
Besides the kind of corruption that opens the news, another problem is undermining
society. It is "corruption by omission," which feels on people's skin. Typically, it makes
individuals feel unjustly treated and without adequate financial compensation for their
expended merit and effort. Doctors, police officers, and farmers are notorious victims
of such surreptitious "corruption." Because they produce genuine value and speculate
nothing, they feel firsthand the full consequences of a system not repaying them
rightly as they work increasingly to earn less and less.
When such individuals speak out, protesting and exposing discontent, they are accused
of "blackmailing" society, for instance, by blocking traffic. This shortened view
amounts to blaming the messenger. These law-abiding citizens are the primary victims
of that contemporary “corruption by omission”. They are the blackmailed ones.
6
According to the dictionary, corruption is "an action or omission in the performance of
an act, legal or illegal, the counterpart of which is an undue advantage for oneself or
for third parties." Like icebergs, a significant part of the problem is invisible to our
eyes. It is hidden in practices that, even though legal, submerge ethical principles and
moral values essential to a just and equitable society.
Thus, to get to the root of the problem, it is necessary to reason in terms of incentives
and adequately highlight the role of money, placing it at the center of the political and
ethical debate. It is advantageous to do this sooner rather than later, as a society now
has programmable digital currencies that, if transparent, offer prospects for
eradicating both deliberate corruption and “corruption by omission.”
Our journey begins with a crucial understanding of the evolution of money. For this,
we must observe the difference between the money of today and that which existed
before the invention of currency. The latter was the pioneering money with which our
ancestors, still in the pre-monetary era, laid the foundations of civilization. In this
book, we will see how the digital version of this primordial money can and should
restore ethical principles and human values to our transactions.
Society is being stripped of its humanist foundation as we depend on a form of money
incapable of representing such principles and values. However, it gives us hope to
understand that it was not always this way; if 'money corrupts,' this is because the
coins and notes that make it up cannot convey the value dimensions that were once
inseparable from pre-monetary human transactions. Such amoral blindness of money
that sees everything equally and cannot distinguish good things from wrong makes it
not even blink when faced with various unethical practices that, although legal,
constitute the current “corruption by omission” that affects us all.
Although visible corruption arouses public indignation, another problem, equally or
even more insidious, remains submerged, hidden beneath the surface of daily life.
Only by recognizing this issue can it be addressed entirely and effectively; to melt the
'iceberg', it must be enveloped in genuine humanistic warmth, not frozen in the
coldness of populist calculation. We must not be deceived, as the same emerging
information technologies enabling society to eradicate corruption can also chill and
harden civil liberties, facilitating the establishment of authoritarian regimes.
Thus, in the 21st century, adopting open, transparent, and inclusive economic-financial
systems is essential to preserving democracy and closing the door to tyranny. As we
will see, this involves a political reform anchored in digital decentralization that
reflects ethical principles and human values.
7
PART I
The Ethical Map in the New Era of Trust and Knowledge
We live at a historic milestone where a concerning political and military reality
intersects with revolutionary technological advances. Cryptography and artificial
intelligence (AI) are redefining the foundations of trust and knowledge, shaping new
ways to establish both.
In this disruptive digital revolution, cutting-edge technologies quietly endow money
with a new feature: programmability. This transformation, though silent, holds
immense potential. It is not just about technical innovation and financial engineering.
This digital calm can herald a new era of freedom, where ethics, privacy, and
transparency guide political reform. It's a chance to shape a 'brave new world' where
every transaction is a conscious choice, a step towards a more equitable society.
Each coin, smart contract, and digital transaction in a political-economic environment
where programmable tokens will be predominant represents the unchangeable
promise of a consciously made decision, a choice of integrity and transparency.
However, beware; we are at a decisive political crossroads on the digital map. There
are paths straight to the left and right, but they both lead to digital centralization
under the tight control of state and corporate entities. These routes divert us from the
promise of integrity and transparency of digital decentralization, leading us down
narrow paths to an almost inevitable digital dystopia.
The open avenue in front of us is a bright path of transparency, integrity, and inclusion,
which allows everyone to benefit from technological advances. It is direct access to a
more equitable society where technology serves the common good, not the obscure
agendas of power concentration.
To embark on this avenue, we start by uncovering the origin of money, aiming to
understand the ethical and political implications of the new digital currencies. These
can integrate ethical values and become trusted shared knowledge vectors or ruthless
tools for manipulating and abusively controlling citizens.
As we will see, if we want to defend democracy, we must opt for a political reform
founded on innovative monetary architectures to respect the fundamental ethical
principles of privacy and freedom in the 21st century.
VIEW DETAILED LEXICON OF THIS PAGE
Chapter 1 – Incentives Beginning: A Ledger System
It all starts with incentives, and that is where this book begins. In the digital age, an
ethical society needs a substantially different economic incentive system from today's.
Money is often seen as merely a means to facilitate exchanges. However, its nature is
more complex than that. At its core, money is a system of credits and settlements.
Long before the advent of currency, human communities already used systems of
"owe" and "own," with or without memory aids, to record and manage medium- or
long-term obligations and rights, thus eliminating the "necessity" of inconvenient
immediate exchanges. Contrary to what is proclaimed in many economics books, our
ancestors preceded the invention of currency by creating systems to settle the
balances of exchanges among themselves in the pre-monetary era. A clear example of
this dynamic could be found in the interactions among the inhabitants of small villages
or places thousands of years ago. It is incorrect to assume that our ancestors, if they
wanted to sell, for example, livestock, would have to accept an equivalent value in
exchange for, say, ten hoes. Instead of this illogical procedure, what would have
happened would have been the immediate establishment of some form of credit. In
practice, an obligation for a reciprocal contribution in goods or services was
immediately agreed upon and mentally recorded in exchange for that livestock.
In other words, money was not a physical or material object but rather a mental or
virtual recognition of a debt to be settled with something of comparably perceived
value. At its core, this practice was a system of credit and settlement—that is, the form
of money—that existed long before the invention of currency.
It is crucial to recognize the pivotal role of money in the early days of civilization. At
that time, it functioned as a sophisticated accounting system, thanks to the invaluable
trust in clans, tribes, and small communities where everyone knew each other.
Consider, for example, a trade agreement between a farmer and a fisherman in the
Neolithic period. The farmer, anticipating the need for fish for the harvest celebration
ritual, and the fisherman, wanting grain to feed his family, would establish a medium-
9
or long-term pact. Such an agreement could be based on the promise of supplying
grain, illustrating the nature of money as a mental record of pending obligations based
on someone’s word.
This system worked effectively because collective memory is an efficient mechanism of
social regulation. Since everyone in these small communities knew about each other's
lives, the mere prospect of breaking a business agreement would generate an adverse
collective reaction, deterring unethical behaviors. In a business where one community
member tried to defraud another, for example, by obtaining undue compensation for
land prone to flooding, group ethics would denounce this transaction as detrimental to
the tribal ecosystem. Thus, collective awareness constituted an effective alert system,
an ethical guarantor of the integrity of community transactions and social cohesion.
In this brief historical review of money, one can perceive the intrinsic ethics derived
from the fairness of the credit and settlement system on which it was based,
contrasting sharply with certain practices, at the very least amoral, facilitated by
current money. We have arrived at the heart of the ethical issue, approaching the
central theme of this book: with programmable digital currencies, as we will see,
money can once again be imbued with a moral conscience, opening the possibility of
reclaiming for our own benefit the multiple facets of past human transactions.
As the new digital monetary system is compatible with smart contracts (see glossary),
it is possible to re-humanize money, making it suitable for the accounting and
mediation of financial obligations that adhere to ethical principles and include human
values.
After all, the trajectory of money should continue to reflect the continuous search for
social systems beneficially anchored in trust and the ability to manage credits and
debits. As we will see in the following chapters, digital decentralization is the way to
achieve such an objective in the 21st century.
VIEW DETAILED LEXICON OF CHAPTER 1
Chapter 2 - Back to the Future of Money
Money is not just something we use to make purchases. From the beginning, as we
saw in the previous chapter, it has served more as a record of promises to pay than as
an object intended to be exchanged for goods and services. Tens of thousands of years
ago, money was already virtual, merely conceptual, and based on trust between
members of primitive communities. This recording system in the collective memory of
tribes and clans settled human accounts at the dawn of humanity.
A notable example of the true essence of money is the monetary system that existed
for centuries on the Yap Islands in the South Pacific. The natives of Yap used large
stone discs called Fei or Rai (some weighing several tons) to regulate transactions
between them. Although these heavy coins rarely moved, they were handy as they
represented promises of payments and receipts. Whoever had them was able to
contract obligations and satisfy commitments. Everyone knew this, as the verbal
communication about the transactions changed the ownership of this stone money.
Thus, these massive discs (some of them with engraved carvings as memory aids)
materialized the mental record and collective memory of "must" and "have" on the
Islands of Yap. Even if the natives did not usually move these stone disks, as they were
too large and heavy, these coins enjoyed enough notoriety not to have to move from
hand to hand.
We started our journey on these Micronesian islands because understanding money as
a credit system or a record of promises is fundamental to understanding new digital
currencies, as these are also more than simple means of payment. Just as Yap's stone
money represented transactions recorded in tribal memory, the latest digital
currencies represent transactions in global cryptographic ledgers called hyper ledgers.
11
Digital currencies are poised to revolutionize our financial landscape. They will be
accessible on our smartphones and other digital devices, potentially reintroducing
ethical considerations into transactions. As we adapt to this new era, we will
understand that digital currencies are not just a means of payment but a versatile tool
that can perform many functions, much like traditional money.
Thus, decentralized digital currencies (cryptocurrencies) and centralized ones (central
bank digital currency, or CBDC) transform our interaction with money. In addition to
representing capital, both perform specific functions. Hence, by integrating exchange
value (capital) and use value (work) into the same units of account, digital currencies
allow money to recover the multidimensionality characteristic of past transactions.
Like the stone discs of the Islands of Yap, digital currencies also do not need to jingle in
your pockets because they are more of a recording system than an object with
"intrinsic value" or a means of exchange. The collective memory of money now
encompasses the entire world, thanks to the distributed trust that blockchain
technology and artificial intelligence knowledge provide. This scenario opens new
possibilities for monetary transactions to incorporate ethical principles and humanistic
values, taking us back to the more systemic dynamics of exchanges in the pre-
monetary era. In other words, we may recover those values that currency removed
from the value of money.
As we delve deeper into the world of digital currencies, we discover that digital
decentralization is the key to all the progress that can benefit society, empowering us
with more transparent, fair, and equitable financial operations. It promotes the
distribution of power necessary to defend privacy and democratic freedom, fosters
civic participation in managing digital resources and policies, and promises a future
with more control over our financial transactions and political decisions.
VIEW DETAILED LEXICON OF CHAPTER 2
12
Chapter 3 – Cryptography and Artificial Intelligence Impact
The coming years will bring rapid changes driven by the influence of various digital
technologies, notably cryptography and artificial intelligence (AI). These changes will
redefine many aspects of our lives at an unprecedented speed. We can only move
towards a more secure, efficient, and transparent political-economic environment by
understanding these accelerated transformations.
Cryptography provides tamper-proof, decentralized records, ensuring secure
transactions without the need for intermediaries. AI optimizes decisions and processes
by analyzing large volumes of data. Together, these technologies can create a social,
political, and economic environment that is virtually immune to corruption and less
prone to distrust, reducing discord, conflicts, and wars.
In this new digital paradigm, it all begins with the metamorphosis of our central
economic incentive system. With an enlightened political vision, we can replace the
global flows of amoral capital with a new kind of money that is as ethical as it is
transparent.
The combination of advanced cryptography and AI enables the integration of labor and
capital into the new digital currencies. This interconnection and integration of both
production factors in the money itself may recover the essence of ancient human
transactions, endowing a more ethical and transparent monetary system with multi-
dimensionality.
However, the advancement of AI also entails significant challenges, notably the risks of
mass unemployment and the proliferation of increasingly sophisticated disinformation.
Also, due to these threats, digital decentralization is an ethical choice. By distributing
the management of data and identities across decentralized networks, we combine
technical resilience with the political advantage of not putting all eggs in one basket,
enhancing privacy and security against data manipulation.
13
As we will see in the final chapter, using methods like "proof-of-personhood" or other
innovations such as homomorphic encryption and zero-knowledge proofs ensures the
authenticity of online data, even proving that a user is human without compromising
their privacy. These methods securely verify online identities, making interactions
trustworthy. The ethical goal is twofold: to protect people from the economic
consequences of increasing unemployment and to shield them from disinformation,
promoting a fairer and more peaceful society.
These cryptographic advances help authenticate Internet users, safeguarding their
privacy while preventing identity fraud in systems like Universal Basic Income (UBI).
UBI is crucial as AI may replace many jobs, potentially causing widespread
unemployment. UBI ensures economic stability, reduces poverty, promotes social
equity, and offers a safety net to face financial instability by providing a guaranteed
income. Moreover, these technologies combat disinformation by verifying content
sources. This approach maintains social stability and fosters a more informed and
equitable digital public sphere.
Meanwhile, with exponential technological evolution, many experts predict that
humanity will achieve Artificial General Intelligence (AGI) in the coming years. AGI is an
advanced AI capable of performing any intellectual task better than a human.
Therefore, a decentralized approach is urgently needed to avoid the pitfalls of
centralized AI, specifically its manipulation by specific political agendas and singular
narratives that prevent balanced decision-making. Only decentralized AI allows for
data diversity and pluralistic interpretation, leading to fairer and less biased outcomes.
Decentralized AI systems can self-regulate, counterbalancing partial views inclusively
and aligning with human values. This data diversity makes imposing political agendas
and subsequent power concentration difficult. It is an essential approach to prevent
oligopolies of large tech companies or authoritarian regimes from stifling innovation
and competition. It is crucial to avoid the creation of biased AI that would exclusively
serve the interests of corporatocracy. Only digital decentralization promotes
innovation and embraces democratic plurality, upholding ethical principles and
increasing AI's resistance to centralized control.
We are at a crossroads that is not only technological but also civilizational. Without
ethical and political reform, where digital decentralization (a founding principle of
blockchain and the Internet) prevails, it will not only be unlikely that we will harness
the potential of decisive technologies for humanity's future but also that the enemies
of democracy may use them against privacy and freedom.
VIEW DETAILED LEXICON OF CHAPTER 3
Chapter 4 - Programmable Digital Currencies
Digital currencies differ radically from traditional money, even from the electronic
version handled with bank cards. The difference is that digital currencies are
programmable. They can operate in a centralized manner, under the control of entities
such as central banks, or in a decentralized manner, where the management of each
monetary system is distributed among the respective user communities.
Digital currencies exist on a continuum where they can be programmed and managed
either centrally by entities such as central banks or decentralized by user communities.
While centralized models offer control and stability, decentralized models enhance
individual autonomy and economic innovation through the distributed trust provided
by blockchain technology. Both models can leverage distributed trust to varying
degrees, depending on their design and implementation.
The responsibility for issuing digital currencies may reside in a central entity, which
determines the pace and quantity of currency to be created, or it may be distributed
among the community, allowing any individual to issue currency and leaving the
market to regulate its acceptance and value. This decentralized model contrasts
traditional financial systems, creating a paradigm of individual autonomy and
economic innovation. In decentralized systems, cryptographic mechanisms ensure the
security and transparency of transactions, eliminating the need for a central authority.
This transparency promotes better censorship resistance and reinforces trust, enabling
an ethical reform of society.
Thus, digital currencies represent a remarkable evolution, opening more transparent
and secure political-economic options and allowing more effective fighting of
corruption. Unlike conventional money, which is morally neutral and conducive to
abusive uses and fraud, digital currencies are programmable and traceable, offering
the possibility of incorporating specific rules and conditions directly into transactions
thanks to "smart contracts."
15
Smart contracts are self-executing. If implemented carefully, they can ensure that
agreements and transactions are automatically and unquestionably fulfilled,
significantly reducing the scope for corruption.
Most current programmable digital currencies result from blockchain technology,
having been born decentralized in the form of cryptocurrencies. However, a growing
number of centralized digital currencies are issued by states (see Chapter 6).
Digital currencies can have specific utilities and uses, unlike traditional currencies,
which generally only acquire specific functions in limited contexts, such as vending
machines (depending on the size of their slots). In contrast, the functionalities of digital
currencies are much more comprehensive and relevant to society. For example, the
cryptocurrency Ether is indispensable for programming smart contracts on the
Ethereum operating system.
The pioneering cryptocurrency, Bitcoin, eliminates the need for intermediaries in its
transactions and allows business to be conducted directly between the parties. Like
other cryptocurrencies, it can democratize access to financial capital, promote social
inclusion, and contribute to a more ethical and reliable financial system. On the other
hand, the transparency and immutability of cryptographic records facilitate audits and
make forgeries difficult, crucial aspects in the fight against corruption.
However, centralized digital currencies are being created that contradict the original
purpose of blockchain technology, such as Central Bank Digital Currency (CBDC), a fact
that should impose great caution on those who value privacy and freedom. While
cryptocurrencies promote individual autonomy, CBDCs can give governments full
power to surveil and abusively control citizens. The digital yuan, China's CBDC, is an
excellent example of such control capabilities. Therefore, it is crucial that the
implementation of digital monetary systems, especially if they pertain to the official
currency of a nation, be designed to safeguard democratic principles.
With AI changing so quickly and quantum computing and other disruptive technologies
on the way, the only way to see a future that fits democratic principles is for digital
currencies to be decentralized. This way of thinking would balance individual freedom
and public interests, especially considering the risks of data centralization and the
subsequent concentration of power.
In conclusion, to harness the potential of digital currencies without compromising
freedom, citizens must be informed and involved in decisions that shape money and
governance. Only in this way will cryptography and artificial intelligence serve to create
transparent and decentralized monetary systems that can be freely scrutinized by the
market and benefit people by integrating ethical principles and human values.
VIEW DETAILED LEXICON OF CHAPTER 4
Chapter 5 – Cryptoeconomics
“Cryptoeconomics” studies how cryptography can be applied to the economy, enabling
a new civilizational stage powered by decentralized, transparent, and secure digital
transactions supported by blockchain networks and enhanced by AI. It represents
more than a new era in the economy, as by offering transparent, secure, and
decentralized digital transactions and interactions based on distributed cryptographic
records that everyone can consult but hardly anyone can falsify, it has a
multidisciplinary transformative power.
The development of smart contracts and decentralized applications (dApps) facilitates
the governance of cryptographic networks and the programming of transactions that
incorporate communities' preferences and human values. Thus, despite the technical
rigidity inherent in the automatic transaction systems of blockchain networks,
collective will and wisdom can direct the ethics of transactions, influencing the
adoption of cryptocurrencies and the marketing and competitiveness of its projects.
The ability to carry out transactions with digital coins and tokens through smart
contracts and dApps that can integrate ethical criteria into transactions redefines the
concept of financial value. It is a new paradigm where digital money can encourage or
reward actions favoring sustainability and social cooperation, making individual profit
and collective benefit two sides of the same coin.
Cryptoeconomics empowers us to create decentralized autonomous organizations
(DAOs), entities managed by programming code that operate without a central
authority, ensuring transparent collective decisions thanks to blockchain technology.
DAOs and the new token economy (tokenomics) stimulate civic engagement in
communities, rewarding positive actions and deterring negative ones, thanks to a form
of money that can align financial incentives with sustainable behaviors. This shift
towards ethical entrepreneurship, harmonizing individual and collective interests, is
not just a possibility but a call to action for all of us to shape the future of our
economy.
17
With this change in money, civil society may reform the capitalist system into one that
is more open and accountable, where private initiative not only supports collective
action but encourages it, which is the opposite of collectivism. As a result, the
traditional market's "invisible hand" can collaborate with the "visible hand" of
individual initiatives motivated by tokens and cryptocurrencies. Thanks to
decentralized Apps that will be easy to use and are potentially accessible to the
average citizen, these new economic and financial incentives should encourage
sustainable behaviors in a market logic. In other words, while traditional currencies
function exclusively as a medium of exchange, digital tokens incorporate functional
dimensions that give them value-of-use. Thus, tokens can represent values that used
to be non-monetizable, allowing the financial valuation and integration into monetary
transactions of benefits such as recycling, education, cooperation, and community
service or the discount of the minus value of harms such as pollution, deforestation,
and food or energy waste. By weighing these and other 'externalities' in transactions, it
becomes possible to encourage ethical behaviors in favor of the sustainability of
community ecosystems and discourage actions and practices that are harmful to them.
While the success of the crypto economy hinges on the challenge of improving
blockchain technology to support more users and interactions, the future is promising.
Blockchain is evolving rapidly, and scalability and interoperability limitations are
expected to be overcome. This is partly due to the integration of AI, which enhances
blockchain-based systems and other distributed ledger technologies (DLT) to handle
transactions better. This reassurance about the future of these technologies should
instill confidence in their potential to revolutionize our economy.
The promise of integrating AI into digital financial systems to reinforce ethics and
social cohesion only seems coherent in a world where open-source code is prominent
and humanist principles are valued and promoted, which justifies the defense of digital
decentralization, individual autonomy, privacy, and innovation. This evolution is
unlikely to happen in a centralized digital environment where the concentration of
power among a small number of public and private entities may limit freedom of
expression and diversity of opinion.
Meanwhile, we must note the complete compatibility of digital decentralization and
openness in the virtual world with the indispensable border security in the real world.
This corroborates the convenience of liberal policies in the digital sphere, significantly
stimulating innovation, promoting education, and energizing the necessary support
infrastructures.
In conclusion, integrating social and environmental values into financial transactions
promises to redefine the capitalist system, encouraging entrepreneurship aligned with
human values and paving the way for a more ethical society in the 21st century, where
economic decisions do not separate profit from sustainability.
VIEW DETAILED LEXICON OF CHAPTER 5
Chapter 6 - CBDC: Centralization of Digital Money
Central Bank Digital Currency (CBDC) represents the new programmable level of the
monetary system. It promises to enhance economic and financial policies' capacity,
granularity, and efficiency. Still, it raises concerns about reducing individual autonomy
in the face of a never-seen potential political control of citizens' financial transactions.
Unlike cryptocurrencies like Bitcoin, which pioneered blockchain technology with
decentralized operation independent of a central authority, CBDCs represent a
deviation from this original principle. Instead of promoting individual financial
autonomy through a network of direct transactions, CBDCs extend the existing
centralized monetary system. However, they are not merely more of the same, as they
signify the new capability of placing financial transactions in the hands of the State.
While cryptocurrencies foster innovation and financial autonomy, eliminating
intermediaries and enabling direct transactions between individuals, CBDCs strengthen
citizens' dependence on the central bank. Such centralization may increase transaction
efficiency but raise serious concerns about the potential loss of privacy; since every
transaction can be monitored and controlled by a central entity, the risk of financial
surveillance and abusive control threatens individual autonomy in the digital age. On
the other hand, the inherent centralization of CBDCs poses significant security
challenges because a "single point of failure" makes the financial system structurally
more vulnerable to cyberattacks.
CBDCs are already transforming monetary policies, providing central banks with
precise tools to manage citizens' digital wallets with levels of efficiency and granularity
never seen before. In authoritarian regimes, such as in China, this influence extends
even further the control of the State over people's lives. Even in the free world, the
possibility of monitoring every citizen's financial transactions threatens privacy and
individual freedom. Thus, an ethical dilemma arises in using CBDCs as a powerful tool
for socio-political control.
19
CBDCs, despite their potential risks, offer significant benefits, particularly in the realm
of financial inclusion. They can bridge the gap in areas underserved by traditional
banks, providing immediate and cost-free transactions. This accessibility to the digital
economy, facilitated through digital wallets on mobile phones, could revolutionize the
speed and efficiency of payments and transfers, particularly for the most vulnerable
segments of society.
Given the potential risks associated with CBDCs, it is crucial to implement adequate
protective measures. One such measure could be to ensure a certain level of
transactional anonymity, not to the extent of cash or cryptocurrencies like Monero or
ZCash, which offer complete anonymity, but to a level of 'pseudonymity' similar to that
of Bitcoin. This would balance privacy and security, a key consideration in the digital
age.
Pseudonymity is perhaps the more acceptable solution for individuals who value
privacy but do not fear legal scrutiny and investigations in democratic regimes. In turn,
total anonymity may require specific regulations to prevent illicit uses. A way to
preserve anonymity in everyday transactions while respecting rules would be to
implement a Know Your Customer (KYC) verification system in specific situations
mandated by law, as in the case of transactions above a certain amount. User
identification would be mandatory only in these situations, preserving privacy in other
transactions. Such a balance reconciles user privacy with illicit activity prevention.
Additionally, there should be clear regulations that limit authorities' access to citizens'
transaction data, except in cases provided by law; the democratic regime and the
separation of powers are incompatible with the potential political temptation of
replacing police cases with policing all instances, including the continuous surveillance
of law-abiding citizens using powerful emerging technologies. Therefore, it is essential
to ensure that the administration of CBDCs involves multiple entities, including civil
society representatives, promoting transparency and respecting individual rights. For
this sake, citizens should be free to possess, in their digital wallets, both centralized
and decentralized digital currencies, with unrestricted competition between them
being essential for defending privacy and democratic freedom.
Do not think that governments' temptation to establish a CBDC monopoly is imaginary
and that democracy is guaranteed. The lust for power is real; in this case, it leads to
total control of citizens' finances, an intolerable risk for the free world. Thus, for this
compelling reason, a political reform favoring digital decentralization and protecting
privacy, plurality, and freedom becomes ethically imperative.
VIEW DETAILED LEXICON OF CHAPTER 6
PART II
Applying Cryptography and AI: Ethical and Political Implications
The irrefutable trust in advanced cryptography, powered by artificial intelligence's
predictive and analytical capabilities, enables people, businesses, and states to
establish more efficient, transparent, immutable, and verifiable transactions.
The synergy between artificial intelligence (AI) and blockchain allows distributed ledger
networks to operate autonomously, automatically executing, verifying, and enforcing
the negotiation of digital agreements, fueling a revolution not only in the financial
sector but also in areas such as logistics, intellectual property, public governance, and
defense, enhancing the precision and security in operations and data management.
It is a quiet revolution that began in the financial area (Bitcoin was the pioneering
application), but it extends to other sectors of society, inevitably redefining political
and socioeconomic relationships. Although relatively discreet, this change is becoming
evident in various applications that will rapidly transform the world.
We next observe such applications, reflecting on their ethical and political implications.
Grouping them according to the type of impact they have on people's lives, both in the
personal and collective spheres, we have organized them into three areas:
A- Personal and Social Well-being: Applications in sectors that directly impact
individual and collective well-being and contribute to social and human development.
B - Infrastructure and Economy: Applications in essential sectors to ensure the
necessary infrastructure for the functioning of society and the economy, optimizing
the administration of crucial resources and the management of goods and services.
C - Governance and Security: Applications in sectors related to the public sphere that
deal with the organization, regulation, and security of society, ensuring national
defense, maintaining order, and civil protection.
Thus, in the following pages, we explore technological applications that challenge us to
rethink our society. The main idea is to contribute to the ethical management of this
dizzying entry into the digital era, precisely at the historical moment when information
and money can flow through society without intermediaries. This epic shift in human
transactions has civilizational implications (unfortunately still not politically debated),
which will expand or limit the horizons of privacy, security, and freedom in the coming
years.
VIEW DETAILED LEXICON OF THIS PAGE
21
A - Personal and Social Well-Being Applications
Chapter 7 - Cryptography & Artificial Intelligence in Healthcare
In the healthcare sector, blockchain and AI are revolutionizing the management of
clinical data and medical records, improving patient privacy and decision-making
efficiency. Patients can pool their data, creating valuable datasets for pharmaceutical
companies and other healthcare entities. This strategy gives patients greater control
over their data without the burden of losing privacy, allowing them to be financially
incentivized to participate in pharmaceutical research and contribute to life sciences.
The pharmaceutical market already offers solutions demonstrating how blockchain can
enable the secure and private sharing of medical data. For example, people can share
their genetic data digitally, enabling new ways to incentivize individual participation in
studies and clinical trials.
Blockchain technology and AI are not just confined to data management and research.
They also play a crucial role in drug monitoring throughout the supply chain. Some
companies are leveraging blockchain to verify the authenticity of medications and
combat counterfeiting. Others are harnessing artificial intelligence to analyze vast
amounts of health data, innovatively contributing to scientific research and the
personalization of medical treatments. These applications strengthen patient privacy
and eliminate the costs of protecting health data. They also foster innovative business
models, including from a social perspective.
AI-driven systems also promise a significant increase in human longevity thanks to
their ability to quickly and accurately analyze and interpret large datasets. Surpassing
human performance, AI can improve health outcomes and life expectancy on an
unprecedented scale. Integrating blockchain with AI ensures the security,
transparency, and interoperability of health data, enhancing the effectiveness of its
sharing. This synergy can revolutionize health and quality of life.
However, it is crucial to recognize technological progress's high political and economic
implications, which require heightened ethical considerations. As we will see in the
following chapters, blockchain, AI, and digital decentralization serve this purpose,
harmonizing innovation, convenience, and privacy across society sectors.
VIEW DETAILED LEXICON OF THIS PAGE
22
7.1. Ethical and Political Implications
With the integration of AI and blockchain, health data management is poised for a
transformative shift. This technological synergy not only enhances patient privacy by
eliminating intermediaries but also paves the way for cost reduction in clinical data
protection. The long-standing dilemma between convenience and privacy is now
resolved, opening doors for innovative business models and reshaping the economic
landscape of the healthcare sector.
As we saw in the previous point, given the new trade-off or vanishing compromise
between convenience and privacy, patients, once released from privacy concerns, can
negotiate their clinical data collectively, strengthening their position in the market and
promoting a fairer redistribution of wealth in the healthcare sector. However, from an
ethical standpoint, ensuring patients' consent when managing their health data is
mandatory. Therefore, implementing these technologies requires a careful and
transparent approach to data sharing to ensure that patients' rights and sensitive data
are respected.
The advent of technological innovations in health data management carries significant
strategic implications, influencing the formulation and execution of health policies.
This new paradigm underscores the importance of digital decentralization as a crucial
option in the free world, even to counter potential threats to democracy. The issue of
state control over citizens' health data transactions raises concerns about privacy and
individual autonomy, mirroring the situation in authoritarian regimes.
Thus, health data management must adopt transparent and adaptable governance,
promoting security through digital decentralization. It is crucial to review and
modernize data protection laws to align them with the new technological reality and
address the new ethical framework of the digital age.
The expansion of access to health data, supported by robust anonymization techniques
that protect patient privacy, highlights the importance of an ethical and political
reform that fosters equity in access and improvement in the quality of healthcare. In
this context, digital decentralization emerges as a promising strategy to develop
governance that harmonizes technological innovation with the protection of patient
rights.
VIEW DETAILED LEXICON OF THIS PAGE
23
Chapter 8 - Blockchain and AI in Education
In education, blockchain offers new solutions for verifying and managing academic
credentials. Creating secure and immutable digital records provides a more efficient
and transparent way for educational institutions to ensure the integrity of these
credentials and for them to be verified by third parties.
Meanwhile, the advent of artificial intelligence (AI) is empowering educators by
enabling the analysis of student learning patterns and offering personalized
educational content. This enhances the pedagogical experience and leads to improved
teaching outcomes. AI's ability to identify areas where students struggle opens the
door to more effective educational interventions, instilling a sense of hope and
confidence in the potential of technology to enhance learning.
Using blockchain and AI in Education allows for the creation of open and interoperable
ecosystems, where academic credentials can be easily shared and verified among
institutions globally, promoting their portability and recognition. This involves creating
a more economical, secure, decentralized way to issue, store, and verify educational
qualifications.
In the education sector, AI already allows for a wide range of personalized courses.
These courses use sophisticated algorithms to tailor educational content to each
student's needs and progress, providing a more effective learning experience. The
same applies to using blockchain technology to improve school administration, such as
smart contracts that validate attendance and task completion when students and
teachers record their presence.
Finally, some universities started using tokens and cryptocurrencies to receive tuition,
pay teachers, and provide students with microcredits and credentials. This new
strategic positioning also aims to leverage crypto-asset transactions' mathematical
rigor and agility.
VIEW DETAILED LEXICON OF THIS PAGE
24
8.1 - Ethical and Political Implications
Digital decentralization of education, enabled by blockchain and enhanced by artificial
intelligence (AI), promotes democratizing access to knowledge. From an ethical
perspective, this is very positive, as the multiplicity of information sources and the
ease of accessing knowledge contribute to a more pluralistic, enlightened, and capable
society ready to face the complex challenges of the future.
However, this approach challenges the traditional educational model and requires a
rigorous criterion for evaluating information. Fortunately, blockchain ensures data
validation and guarantees the integrity of academic records, making their transactions
immutable and monitorable. Thanks to AI, this secures the authenticity of educational
qualifications in a personalized, collaborative, and self-directed learning environment.
The more senior and educated the student is, the more critical their autonomy
becomes. Indeed, for society to reap the maximum benefits from blockchain and AI in
21st-century education, it should maintain the prerogative for mature and generalist
individuals to self-organize their specialized training.
On a broader scale, the democratization of education and the increased transparency
in teaching processes herald significant societal changes. By reducing the centralized
control of educational institutions, the digital decentralization of academic records
empowers students with more control over their academic credentials and learning
paths. This open access underscores the pivotal role of blockchain and AI in combating
educational inequality, providing accessible means to validate skills and knowledge.
In conclusion, embracing the digital decentralization of education requires innovative
educational policies based on the diversity of information sources and the ease of
access to knowledge, aiming for unbiased, autonomous, and personalized education. It
is essential to foster a critical approach in evaluating educational content, securely
verifying its authenticity for a more ethical and just society.
VIEW DETAILED LEXICON OF THIS PAGE
25
Chapter 9 - Blockchain and AI in Philanthropy
Blockchain offers innovative solutions that enhance the transparency of philanthropic
activities, redefining how donations are managed and distributed. By providing
unprecedented transparency, this technology allows donors to monitor the journey of
their funds to their destination. This increased transparency boosts trust in
philanthropy.
Artificial intelligence (AI) plays a pivotal role in philanthropy by enabling the analysis of
large volumes of data. This data-driven approach helps identify the most urgent needs,
optimizing resource allocation. The result is a significant reduction in operational costs,
leading to increased efficiency and relevance of social economy organizations.
Real-world applications of blockchain and AI in social economy organizations are
already transforming the philanthropic landscape. These organizations are leveraging
blockchain technology to track and manage their funds, ensuring the transparency of
donations. Simultaneously, they are using AI to analyze the patterns of results from
charitable projects, enabling them to identify areas and projects with the most
significant impact.
As mentioned in Chapter 6, the effectiveness of philanthropy reaches new heights
through so-called decentralized autonomous organizations (DAOs). These DAOs
revolutionize the philanthropic sector by providing transparent collective decisions on
blockchain networks. These DAOs use digital tokens to vote and stimulate community
involvement in charitable efforts. This new "ethical money" serves to vote and allows
rewarding differentiated actions that are positive for society. Thus, pragmatically
combining financial incentives with philanthropic activities makes altruism even more
rewarding, realistically increasing individual commitment to collective action.
As we will see in the following point, these technologies' ethical and political
implications reinforce the conviction about their potential contribution to improving
people's lives. However, maximizing such potential depends on a digital
decentralization that defends individual autonomy, human values, and freedom.
VIEW DETAILED LEXICON OF THIS PAGE
26
9.1 - Ethical and Political Implications
Integrating blockchain technology in the philanthropic sector brings evident ethical
advantages, especially regarding transparency and authenticity. The rapid
development of artificial intelligence (AI) amplifies these benefits.
As we saw previously, blockchain and AI allow donations to be monitored
transparently, so donors see precisely when, how, and where their funds are being
used. This transparency increases the likelihood that resources will be used more
efficiently and for established purposes, reducing operational costs and strengthening
philanthropic capacity.
From a political standpoint, implementing blockchain in philanthropy is not just about
financial management but about fostering a culture of trust and accountability. The
ability to monitor and audit fund usage with greater rigor and effectiveness and even
link ethical financial incentives to meritorious actions will inspire confidence in the
sector and induce greater civil society involvement in philanthropic initiatives, leading
to a more inclusive and participatory society.
Moreover, the digital decentralization provided by blockchain and the personalization
enabled by AI is not just about technology but also about empowering individuals and
communities. This empowerment allows for the direct participation of a broader
spectrum of donors in charity projects and social causes, leading to a better alignment
of philanthropic initiatives with the real needs of communities and promoting a
collaborative approach to social problems where everyone has a voice and can
contribute to the solution.
The philanthropic sector and the social economy are examples of how important it is
to develop policies reinforcing transparency and accountability. There is a clear
interest in ensuring that donation monitoring is combined with digital decentralization
strategies that promote public participation and trust in NGOs.
Digital decentralization in philanthropy allows the alignment of altruism and
community needs. Using tokens as incentives that link individual action to collective
action creates a pragmatic and realistic socioeconomic system that, instead of being
about collectivism, benefits from the driving force of free initiative and personal merit.
VIEW DETAILED LEXICON OF THIS PAGE
27
Chapter 10 - Blockchain and AI in Arts and Entertainment
Blockchain and artificial intelligence (AI) are being used to drive innovation,
revolutionizing copyright management. Thus, authors can now register their works to
ensure fairer and more transparent compensation. Through self-executing smart
contracts that reduce reliance on intermediaries, authors can decrease agency costs,
leading to a more equitable income redistribution.
Blockchain applications in the arts and entertainment are increasingly common, using
NFTs to provide artists with secure and transparent ways to register and market their
digital works.
Artificial intelligence is being used to generate unique images and videos from textual
descriptions. These AI applications are an innovative and creative way to produce
visual digital art based on interpreting written commands. AI is also redefining
augmented reality experiences in entertainment by contributing to the creation of
immersive and personalized interactions. In video games, blockchain and AI are
creating new paradigms. Blockchain ensures transparent and secure transactions in
online games, with NFTs enabling actual ownership of digital assets such as skins,
weapons, and other virtual goods. AI, in turn, enhances interest in games by creating,
for example, more intelligent and adaptive opponents to provide personalized gaming
experiences, making each session unique and engaging.
AI is paving new creative paths by enabling the analysis of artistic styles and inviting
their remix to generate unique works, expanding the boundaries of artistic expression.
Creating Non-Fungible Tokens (NFTs), unique digital assets that represent exclusive
ownership of digital or physical items may transform the art market by enhancing the
functionalities associated with digital ownership.
New entertainment possibilities will involve using NFTs to modify live events, granting
fans the right to make decisions such as changing stadium lighting, replaying game
highlights, or adjusting the grass's humidity level in real time, thus providing unique
access to the sports experience. For example, a platform has been created for the
global community of golf enthusiasts, where NFT holders can access exclusive events
and participate in decisions about the platform's development.
VIEW DETAILED LEXICON OF THIS PAGE
28
10.1 - Ethical and Political Implications
Integrating blockchain technology in the arts and entertainment and the rapid
development of artificial intelligence can offer considerable ethical advantages. These
technologies facilitate the creation of secure and immutable digital records, essential
for optimizing copyright management and increasing fairness in income distribution.
As mentioned, smart contracts can automate income distribution in arts and
entertainment, making it more transparent on blockchain networks. This innovation
would allow authors to be compensated more fairly, reduce their dependence on
intermediaries, and promote equity.
Digital decentralization has the potential to democratize access to platforms and
computing resources, challenging the dominance of large companies and corporations
over the distribution and monetization of artistic content. We are discussing a change
in the genesis of social communication in our global village. By promoting greater
transparency in copyright management and more equity in income distribution,
blockchain and AI can influence public policies to protect artists and intellectual
property, encouraging innovation and cultural diversity.
The fact that blockchain and AI are agents of change is particularly noticeable in the
cultural area, making it legitimate to aspire to an ethical reform in art and
entertainment. For the benefits of this transformation to reach all stakeholders, it is
essential to develop policies that promote digital decentralization. This change will
lead to the implementation of these technologies focusing on strengthening copyright
protection and ensuring a fair distribution of income rather than serving to increase
the dominance of the oligopoly that dominates the market.
Therefore, technological innovation's transparency and equity must encourage
innovation and ensure cultural diversity, supporting artists more ethically and fairly.
Thanks to the evolution of incentive systems, this will contribute to the desired
redefinition of power dynamics that oversee the sector.
VIEW DETAILED LEXICON OF THIS PAGE
29
B - Infrastructure and Economy Applications
Chapter 11 - Blockchain and AI in Energy
In the energy sector, blockchain revolutionizes how energy is distributed and traded.
This distributed ledger technology (DLT) enables the creation of decentralized digital
networks that allow direct transactions between consumers who are also producers.
Meanwhile, artificial intelligence (AI) is essential in predicting consumption patterns
and optimizing energy distribution. The conjunction of blockchain and AI allows for
mutually beneficial energy transactions carried out directly between individuals who
are sometimes consumers and sometimes producers. This disintermediation makes
energy more accessible and encourages the decentralized production of its renewable
forms, such as increasingly efficient solar panels, promoting sustainability.
A notable energy use is recycling heat generated in Bitcoin mining to warm thousands
of people. Cryptocurrencies can also act as "virtual batteries" since miners prefer to
use surplus energy, or the cheapest they can find, to make their mining more
profitable. This competitive practice not only helps us to get rid of difficult-to-eliminate
pollutant residues but also allows the accumulation of recycled energy and its
economic distribution through society via cryptocurrencies. This energy reuse can
balance and improve the energy system's efficiency, which is most significant because
the world is running out of transformers due to the rapidly increasing electricity
consumption from AI computing. As described in a study conducted in 2023, the
Bitcoin network has a strategic interest in stabilizing electric grids and promoting
renewable energies. This recycling cycle results from the combination of human
ambition and ingenuity to mitigate the increase in the universe's entropy, referred to
in the second law of thermodynamics.
Blockchain technology is a tool and a game-changer in the energy sector. Several
companies are already using blockchain technology for energy trading, leading to the
establishment of a more decentralized and efficient market. This involves "tokenizing"
renewable energy, connecting selected green energy producers with consumers and
ensuring transparent and efficient transactions. Promoting direct renewable energy
trading between consumers and producers should create a more sustainable energy
market.
VIEW DETAILED LEXICON OF THIS PAGE
30
11.1 - Ethical and Political Implications
The adoption of blockchain and AI in the energy sector offers significant ethical
advantages, advocating for rapid reform in managing energy. Contrary to what specific
"news" might lead one to believe, cryptocurrencies have the potential to contribute to
the optimization of global energy resources, including the intelligent recycling of
polluting energy surpluses. Moreover, since cryptocurrencies can function as
"batteries," they may represent a rational way to counterbalance the rapid increase in
electricity consumption due to AI, as seen on the previous page.
The democratization of 'tokenized' energy access is not just a technological
advancement but a potential catalyst for redistributing economic power. Digital
currency, in this context, serves as a powerful incentive for sustainable energy policies,
empowering consumers with greater autonomy and control over their energy choices.
However, implementing decentralized blockchain networks in the energy sector
challenges the status quo, and traditional producers and intermediaries might view
digital decentralization as a threat to their business models. Therefore, one should be
aware of the risk of disinformation in this area, as political pressure favoring
established interests tends to limit the development of digital decentralization in the
sector.
Indeed, resistance to change and incumbents' exploitation of blockchain and AI could
lead to even more centralization of the energy sector, like what might occur in the
financial industry with CBDCs (see Chapter 6).
Given these circumstances, pursuing policies that foster innovation and endorse digital
decentralization in the energy sector is imperative. In this regard, we should promote
the involvement of small and medium producers and consumers in networks to
advance energy sustainability. Striking a balance between sector innovation and
market demands is crucial, necessitating adaptable regulation that aligns new
technologies with stability, security, and energy efficiency.
VIEW DETAILED LEXICON OF THIS PAGE
31
Chapter 12 - Blockchain and AI in Finance
Blockchain technology and Artificial Intelligence (AI) have been stirring the waters in
the financial world, with profound changes underway. By significantly reducing
transaction costs, the current technological innovation indicates more expedient ways
of transacting, pointing towards the disintermediation of finance.
This shift is starting to happen in centralized financial systems with Central Bank Digital
Currency (CBDC). Still, it has occurred since 2009 in decentralized financial systems,
with tokens, cryptocurrencies, and other digital assets issued in public and private
blockchain networks.
When integrated into smart contracts, financial transactions with currencies and other
digital assets are conditioned with specific rules, ensuring the fulfillment of
agreements without intermediaries. This innovation allows money to transcend its
monetary dimension, stipulating multi-dimensional financial transactions. The decision
on who will have the prerogative to program these rules (centralized or decentralized
entities) is crucial, as it will influence and condition many of our consumer choices.
Meanwhile, decentralized financial protocols are being implemented, and dApps
(decentralized applications) with increasing functionalities are being made available.
These include cryptocurrency exchanges, which use AI to optimize conversion rates
and liquidity, and new ways of granting and obtaining loans using smart contracts.
Notably, AI is now used to assess risks and adjust interest rates in increasingly
personalized loans.
And it's not just about efficiency; when transactions incorporate factors relevant to
sustainability and social well-being, the digital paradigm enhances ethics in finance.
Through transparent records and AI's aid in optimizing processes, digital
decentralization opens financial options that reflect ethical principles and human
values. In this sense, smart contracts are expanding the functionalities of the Bitcoin
blockchain, and dApps on the Ethereum network offer solutions for social and
environmental challenges by promoting collective action with ethical, conspicuous,
and appropriate monetary incentives.
VIEW DETAILED LEXICON OF THIS PAGE
32
12.1. Ethical and Political Implications
The advent of blockchain and artificial intelligence heralds a new era in financial
systems that transcends mere profit and embraces a broader spectrum of values.
The banking system has been indispensable in providing the trust infrastructure
necessary for the growth of the global economy. For instance, what would have
become of international trade if banks had not established trust between exporters
and importers over the centuries? However, technological advances are changing the
reality inherited from the pre-blockchain era, enabling more efficient and ethical
financial and monetary systems.
Such systems can contribute to sustainability and human well-being by prioritizing
transparency. This evolution allows for eradicating both the "corruption by omission,"
as defined in the introduction of this book, and the active (and passive) corruption that
threatens democratic regimes. It involves aligning financial practices with the ethical
values we hold dear. To glimpse a future more aligned with the moral standards that
should guide society, imagine an economic world where communities, not elites, set
the financial game's rules.
Recall that "corruption by omission" does not necessarily result from illegal actions but
from failing to incorporate ethical, moral, and social considerations into money (see
Chapters 1 and 2). In a market incapable of integrating human values into its practices
and policies, behaviors harmful to society continue to thrive unchecked. This omission
explains the morally neutral circulation of global capital focused only on the value of
money, which does not distinguish and profit equally from products as diverse as
weapons and medicines. Additionally, it encourages economic distortions brought
about by rigged inflation, unfair interest rates, and financial profits that are
disproportionate to the services rendered to society. An efficient market must correct
such a vision problem, recognizing the need to be able to focus on ethical, social, and
ecological values. It is this urgent correction of the present capitalist system's
ophthalmological trouble that blockchain and AI have made possible.
More than a technological issue, the movement toward digital financial systems has
profound ethical and political implications. It points to a more just resource
distribution and a more participatory democracy. This inspiring vision is still taking
shape but already underlines the need for a political reform grounded in digital
decentralization so that the technological inclination of the digital era is compatible
with both liberal democracy and humanism.
VIEW DETAILED LEXICON OF THIS PAGE
33
Chapter 13 - Blockchain and AI in Real Estate
The "tokenization" of real estate properties involves the issuance of digital tokens that
represent and quantify, in whole or in part, the value of these properties,
encompassing rights and obligations. This option facilitates transactions by allowing
these "tokenized" fractions to be purchased and sold more efficiently and flexibly
under conditions stipulated in smart contracts. It translates into new opportunities for
investors looking to earn returns and developers seeking to finance real estate
projects.
Tokens play a crucial role in real estate projects. They can grant holders specific rights,
such as receiving rental income or participating in property appreciation. Alternatively,
they can represent obligations, such as financial contributions to a project. For
instance, if a token is issued to finance a real estate project, its purchasers contribute
financially, expecting to generate income or benefit from property appreciation. In
other words, the investor must wait for the smart contract to be fulfilled to obtain
financial results.
A token's function, whether in real estate or other sectors, is determined by a range of
rights and obligations. These can be defined by the clauses of the smart contract in
which the token is used or by other mechanisms, including traditional legal
agreements and project governance systems. These mechanisms are beneficial in
contexts not fully compatible with complete automation, ensuring the token's function
is clearly defined and understood.
Distributed ledger technologies (DLT), introduced by blockchain technology, allow for
maintaining transparent and immutable records of digital property titles, making fraud
more difficult in the transfer process. Such security simplifies transactions, thereby
increasing competitiveness.
Several companies are already conducting real estate transactions through property
tokenization, enabling the automation of financing processes and increasing liquidity in
the sector. Other companies use AI for predictive analysis in the real estate market,
helping to forecast prices and identify opportunities.
VIEW DETAILED LEXICON OF THIS PAGE
34
13.1 Ethical and Political Implications
Blockchain technology and artificial intelligence (AI) are transforming the real estate
sector. Facilitating fractional ownership transactions helps spread the "ownership
mentality" within the community, enhancing the sense of belonging, social affiliation,
and individual responsibility. If more people become owners, in whole or part, this can
contribute to social stability and peace, mitigating inequalities and fostering
environmental responsibility.
Such fractional ownership and subsequent economic inclusion can contribute to
harmony and peace in our global village. Thus, future generations will make more
affordable investments, even across borders, promoting economic interdependence
and mutual understanding. This global interdependence should inspire hope and
optimism because digital openness alleviates the security concerns inherent in opening
physical borders, increasing digital decentralization's political interest and appeal.
After all, when investors become stakeholders in foreign communities, they also
become interested parties in the security and stability of those countries.
However, significant challenges remain. It is crucial to educate and raise awareness
among economic agents about the new opportunities and associated risks. As
discussed in the last chapter, protecting identities, personal data, and individual rights
requires balancing transaction transparency with privacy rights. In this context,
blockchain technology plays a pivotal role; it makes real estate transactions visible and
verifiable, providing robust resistance against corruption and discouraging unethical
behavior. This transparency instills trust and attracts ethical developers, leading to
faster project approvals and higher occupancy rates.
Finally, integrating AI with blockchain technology is a game-changer, improving market
trend forecasting and decision-making. It identifies high-potential investments and
mitigates risks, with the inherent transparency of digital decentralization helping align
competitiveness with real estate sector responsibility. This potential should inspire and
excite, as it opens up a world of ethical possibilities for the future of real estate.
VIEW DETAILED LEXICON OF THIS PAGE
35
Chapter 14 - Blockchain and AI in Logistics
Blockchain technology is pivotal in supply chain management, offering unparalleled
transparency and security. It is not just about tracking the origin and journey of goods
but also about boosting consumer confidence. It is revolutionizing supply chains by
verifying product authenticity and ensuring ethical and environmental compliance.
The evolution of logistics owes much to 'oracles,' external devices that provide physical
world data to blockchain's digital ecosystems. These devices, whether sensors on
product packaging or digital records and certifications of services, play a crucial role.
They transmit information across the distribution stages, from the source to the final
consumer, significantly enhancing the transparency and reliability of supply chains, and
providing a robust and trustworthy system.
Blockchain and artificial intelligence (AI) facilitate the logistics mission by generating
trust and knowledge. They allow cost reduction by increasing supply chain efficiency,
improving service quality by predicting demand, and leading to more effective stock
management. Thus, logistical optimization translates into simplifying the lives of
people and businesses.
Responsible for the mathematical precision and efficiency of digital currencies and
smart contracts, these technologies enable the automation of agreements and
optimize payments made along the business chain, helping to reduce errors and
delays.
There are already multiple examples of blockchain and AI applications in logistics, with
several companies contributing to making the product journey more transparent,
helping consumers verify their respective authenticity, and ensuring ethical and
environmental compliance. This results in improved monitoring and efficiency of
supply chains, offering innovative solutions that benefit sustainability.
VIEW DETAILED LEXICON OF THIS PAGE
36
14.1 - Ethical and Political Implications
Applying blockchain technology and AI in supply chain management introduces
significant advantages, notably increasing trade levels, a historically critical factor for
human progress.
Efficiency and logistical effectiveness are fundamental to economic growth. As we saw
in the first part, when the primary economic incentive system, money, becomes
digitally intelligent, it allows for an ethical redistribution of the value created in society
that can harmonize commercial and social interests, alleviating the tension between
ethical and pragmatic economic considerations.
Integrating blockchain and AI in the logistics sector and supply chain management will
inevitably lead to a significant redistribution of power among market players.
However, the outcome of this shift is yet to be determined. To address the imbalances
in the economic landscape, we must harness technology to equalize the logistical
environment. Digital decentralization is the key to achieving this equilibrium,
enhancing the efficiency and independence of small and medium-sized producers and
suppliers to counterbalance the dominance of large multinationals. Ultimately, the
ability to trace the origin and path of products enhances transparency and
accountability, paving the way for the organic correction of unfair and unsustainable
business practices.
Thus, blockchain and AI's impact on logistics extends to significant ethical benefits,
bolstering the case for a shift toward a fairer and more sustainable economic system.
To achieve this equilibrium, the digital decentralization of supply chains is imperative,
reducing the influence of large corporations by empowering producers and consumers.
Therefore, it is essential to advocate transparency and use technological innovation to
correct unjust, unethical, socially, and politically dangerous situations. Advanced
cryptography and AI are like magic and may lead the free market to new heights, but
such magicians' "invisible hand" must operate in plain sight. After all, it is about
completing the virtuous circle linking the digital decentralization of our primary
economic incentive and the logistical system.
VIEW DETAILED LEXICON OF THIS PAGE
37
C - Governance and Security Applications
Chapter 15 - Cryptography and AI in Governance
The judicious integration of cryptography and artificial intelligence into the governance
structure advises reforming electoral processes. The trust placed in cryptography,
reflected by the growing value of Bitcoin over the years (even though it is a novelty
prone to disinformation), exemplifies the viability of this technology for creating
electronic votes with high-security standards.
AI can influence electoral decisions by using predictive modeling to anticipate results,
analyzing sentiments on social networks to assess public opinions, and identifying
voter segments to customize campaigns, allowing for rapid responses to changing
trends. These capabilities make AI crucial or decisive in shaping electoral strategies and
influencing voters. After the elections, AI's influence continues as it serves to analyze
patterns and political preferences underpinning governmental decisions. This analysis
allows governments to understand voter preferences in real time, taking measures
that match the population's expectations and ensuring the effective implementation of
promises made during the electoral campaign. However, to foster trust and
confidence, it is imperative that AI is developed with open-source code and that the
criteria of its political decisions are fully transparent. Explainable AI (XAI) makes AI
processes and decisions interpretable and elucidative, enhancing users' verification
and understanding. This transparency is the cornerstone of ensuring government
officials' accountability and preserving institutional trust in the digital age.
For all these reasons, maintaining democracy in the digital age depends on digital
decentralization, emphasizing the need to keep an equitable distribution of power and
control over voting systems and data analysis systems. Several examples of
cryptography and AI applications in governance already exist, using blockchain
technology to guarantee the integrity and transparency of electoral processes through
applications focused on voting security. These technologies are being used at the
municipal level to improve governance, for example, in the United States of America.
In the European Union, multidisciplinary research of blockchain networks, such as
Bitcoin and Ethereum, is needed to understand how they can support governance and
ensure best practices in public administration to restore trust in institutions.
VIEW DETAILED LEXICON OF THIS PAGE
38
15.1 - Ethical and Political Implications
The joint adoption of cryptography and AI in governance presents significant ethical
benefits, potentially redistributing power and favoring participatory democracy. The
digital decentralization of the electoral process enhances the integrity and
transparency of voting, enabling greater inclusion and facilitating civic engagement in
political decisions. This innovation reduces the agency costs typical of representative
democracy, whether explicit, like political class fees, or implicit, such as the
“corruption by omission” highlighted in this book’s introduction.
In this new digital paradigm, citizens are not just passive recipients of governance but
active participants. Digital tokens representing votes recorded in self-executing
contracts could constitute the mathematical guarantee of fulfilling many electoral
promises, challenging traditional centralized decision-making models. Thanks to
cryptography and AI, we can envision highly granular public administration and a more
efficient and participatory democracy where the need for elected representatives is
significantly reduced. In this new digital paradigm, citizens play a crucial role, and their
active participation could make society more ethical and humanistic, a surprising
outcome given its clear technological bias.
These emerging technologies have the potential to restore institutional trust by
providing greater transparency and efficiency in government processes, which has
severely damaged cases of corruption, ineffectiveness, and inefficiency. However,
fostering close collaboration between technology experts and lawmakers is crucial to
harness the full potential of advanced cryptography and AI. This collaboration,
underpinned by liberal political thinking that is pro-innovation, is essential to creating
electoral and governance systems where digital decentralization prevails, protecting
personal data, privacy, and democratic freedom.
In conclusion, it is essential to raise public awareness about the new possibility of
increasing transparency and rigor in the intricacies of politics. Like email and social
networks, widespread adherence to 21st-century governance systems will not require
technical expertise, depending only on the practical interest of the developed
applications. Seeing is believing, regardless of the technology.
VIEW DETAILED LEXICON OF THIS PAGE
39
Chapter 16 - Cryptography and AI in Security and Defense
The fusion of advanced cryptography and artificial intelligence (AI) represents a
transformative leap in Security and Defense, paving the way to confront the
unprecedented challenges emerging in cyberspace effectively.
This technological partnership champions the adoption of decentralized digital models,
robustly mitigating the risks associated with single points of failure. While not a
panacea, this decentralization significantly complicates attackers' tasks, as they must
breach multiple instances to gain access to critical information or cause substantial
harm. The practicality of this decentralized approach is underscored by the fact that
sensitive data remains inaccessible without the corresponding private keys, even if
intercepted.
Moreover, AI is pivotal in fortifying threat detection and incident response capabilities
by continuously scrutinizing anomalous behaviors and emerging attack vectors.
Therefore, while digital decentralization does not eliminate all security risks, it offers a
more resilient strategy to counter cyberattacks and protect critical data from
unforeseen vulnerabilities.
On the other hand, while blockchain technology strengthens security and transparency
in military supply chains, AI revolutionizes data analysis, conflict scenario simulation,
and resource optimization, improving response capabilities on various fronts, including
cybersecurity, with sophisticated algorithms that learn to identify and neutralize
advanced threats.
In civil protection, combining cryptography and AI enhances crisis detection and
prevention and optimizes emergency response, ensuring a more efficient allocation of
resources.
Globally, public and private entities use cryptography and AI to elevate operational
efficiency and interoperability in security and defense. These benefits include
optimizing analyses in civil protection and managing military consortia, improving
damage assessment, and significantly accelerating processes in concession contracts.
VIEW DETAILED LEXICON OF THIS PAGE
40
16.1 - Ethical and Political Implications
The growing integration of cutting-edge cryptography and Artificial Intelligence (AI) in
Security and Defense provides more secure and transparent verification standards for
critical military actions such as disarmament. By not revealing sensitive information or
compromising national defense, these technologies can ethically and decisively
contribute to national security.
Advanced cryptography enables mutually assured surveillance, such as homomorphic
encryption and zero-knowledge proofs (ZKP). These cryptographic technologies allow
for the verification and proof of reality without disclosing critical or sensitive
information, creating a transparent, accountable environment. For example, nations
can prove their compliance with disarmament treaties without revealing military
information. Through ZKPs, it is possible to demonstrate the deactivation of a nuclear
warhead without revealing its location, specific design, or any other state secrets.
These cryptographic features can meet national security requirements and increase
trust between nations. Through "oracles" and smart contracts, blockchain irreversibly
records each step of the disarmament process, creating immutable codes to certify the
execution of these or other actions without disclosing classified information.
This increased trust is vital considering the race for Artificial General Intelligence (AGI).
AI is becoming a formidable technological accelerator for military command and
control, making it very dangerous to focus solely on the speed of developing this
catalyst without safeguarding the security of the chain reactions it triggers. Therefore,
it is urgent to establish mutually assured verification of international treaties to
guarantee this same security. Without such transparency, the nervousness of potential
opponents increases, as they know that the creation of intelligent autonomous
weapons, like swarms of smart drones, which may give their creators decisive military
superiority, is very close.
Thus, the window of opportunity to conduct such verification may be closing, and
there is no time to lose; only the combination of advanced cryptography and AI can
strengthen nations' defense and security mechanisms. Humanity does not only need to
be aware of the concept of "MAD" or "mutual assured destruction" through nuclear
war; we also need to internalize the idea of "MATH" or "mutual assured trust and
hope" through advanced cryptography and AI. After all, it is impossible to manage
technology politically wisely without using even more technology to elevate ethical
standards and move towards a more peaceful world.
VIEW DETAILED LEXICON OF THIS PAGE
41
Chapter 17 - Advanced Cryptography and AI in Digital Identity
When combined with artificial intelligence (AI), blockchain and other advanced
cryptographic technologies have immense potential in digital identity management.
These technologies offer a secure and reliable means for individuals to create, store,
and share personal identification information, thereby improving financial, economic,
and social inclusion. They balance privacy and individual autonomy while providing
increased security for the community.
The issue of inclusion primarily concerns the most disadvantaged and marginalized
segments of the population, but this underestimates the impact of AI on an
unemployment rate that can grow dramatically. Productivity mainly results from
automation, which does not create a positive job balance. Moreover, when
automation becomes more intelligent daily, job displacement can quickly include
highly qualified professionals. A single AI system will soon perform intellectual work
equivalent to thousands of people. As will be seen on the next page, managing digital
identity will be crucial to mitigating the socio-economic implications of this new labor
reality. Furthermore, applying blockchain and AI to authenticate digital property can
effectively combat the scourge of disinformation and 'fake news.' This quest for truth
involves verifying the authenticity of digital content, such as news, videos, and images,
differentiating the real from the fake, which is crucial in the face of 'deepfakes.'
Several ongoing projects strive to create secure and accessible digital identities,
enhancing financial and social inclusion and bolstering the security of personal data
sharing in public administration and business contexts. Advanced cryptography and
biometrics prove human identity without revealing personal information. The main
goals are to prevent AI from impersonating humans and to provide a secure
identification method that prevents fraud in allocating a Universal Basic Income (UBI)
to each person. Anticipating that such a measure will be indispensable, the key idea is
to promote financial inclusion for all without compromising individual privacy.
However, even when these initiatives are implemented transparently (in open-source
code) by industry leaders who are aware of the imminent danger, they face a
concerning resistance to change.
VIEW DETAILED LEXICON OF THIS PAGE
42
17.1 - Ethical and Political Implications
Combining blockchain technology with artificial intelligence (AI) brings significant
innovations in digital identity management. It aims to ensure fraud-resistant and
abuse-resistant authentication. This integration promotes security and privacy and
enables innovative solutions with a positive social impact.
The socio-political implications of the new digital reality are profound and varied. The
creation of more secure identities using blockchain and AI facilitates the improvement
of inclusion, allowing, for example, individuals previously excluded from the system to
have full access to financial services, which enhances civic participation and promotes
social equity, reinforcing the foundations of the democratic system.
Everyone faces increased unemployment risks in the AI era, so initiatives like Universal
Basic Income (UBI) should concern broad segments of the population, not just the
most disadvantaged. Advanced cryptography, through methods like 'Proof-of-
Personhood,' attests to each human being's unique condition, ensuring this
uniqueness without revealing their identity. This method, with its inherent fairness and
transparency, is a secure system for resource distribution, preventing fraud through AI
in the usurpation of digital identities. Moreover, such transparency will ensure that
public funds can be used fairly and effectively, reducing social tension and corruption
and increasing institutional trust.
Preventing identity usurpation by AI and protecting personal data safeguards the right
to privacy and helps combat disinformation. With advanced cryptography, it is possible
to create a system for verifying digital content, such as videos and images, enabling
users to confirm their origin and authenticity, reducing the risk of falsification, and
increasing online trust. This security is crucial in the face of 'deepfakes,' where
distinguishing between real and fake videos is very difficult, reinforcing the importance
of reliable verification mechanisms that preserve the genuineness and integrity of
information.
For all these reasons, blockchain and AI are not just technological tools but essential
mechanisms for safeguarding ethical and democratic values in the 21st century,
underscoring the urgency and importance of their politically enlightened use in a
rapidly evolving digital landscape.
VIEW DETAILED LEXICON OF THIS PAGE
43
Conclusions and Recommendations
This book discusses the transformative potential and risks of blockchain technology
and artificial intelligence (AI). These technologies are reshaping human transactions
and paving the way for a new era of trust and knowledge. They are symbiotic: AI
requires the reliable transparency of blockchain, while blockchain benefits from the
efficiency and insightfulness of AI. Indeed, society can transform such synergy into a
significant civilizational advance, including a new ethical framework. We find ourselves
in a pivotal moment in history, which presents us with the opportunity to reimagine
political, economic, and financial systems in the light of emerging technologies.
Humanity needs an ethical reform based on the transparency of digital
decentralization, eventually capable of mitigating corruption, injustices, and wars.
Such change demands taking advantage of the historic opportunity to return to the
multidimensional essence of primordial money. Contrary to prevailing economic
theory, money existed virtually long before the creation of currency, consisting of a
mental record of obligations and credits. For millennia, this kind of trust
operationalized debits and credits and sustained the dawn of civilization. The advent of
cryptocurrencies and smart contracts heralds the revival and globalization of money's
original features, allowing for monetizing values beyond the pecuniary. This money
evolution means that social contributions, such as community service or
environmental stewardship, can now be 'tokenized ' and integrated into monetary
transactions. On the other hand, decentralized monetary systems, such as China's
digital yuan, are crucial in the arrival of central bank digital currency (CBDC). Only free
competition between cryptocurrencies and CBDCs will help to mitigate the risk of
abusive citizen surveillance, safeguarding privacy and freedom in the digital era.
Blockchain and AI are beginning to be used across various sectors, offering ethical and
competitive advantages. However, they also amplify problems like disinformation and
unemployment. Fortunately, innovative projects use advanced cryptography and
biometrics to verify online identity without compromising privacy, preventing AI from
masquerading as humans and ensuring information authenticity. This guarantee is
crucial for distributing a universal basic income (UBI) in response to a very likely AI-
induced unemployment. Furthermore, combining cryptography and AI is essential for
national security in these troubled times, enabling more reliable international treaties.
Finally, experts predict that Artificial General Intelligence (AGI), an AI capable of
performing intellectual tasks better than humans, can be achieved in a few years. This
necessitates a decentralized approach to avoid manipulation and biased outcomes; AI
systems must self-regulate by balancing views and aligning with human values,
preventing submission to political agendas and power concentration, thus promoting
innovation and democratic plurality. Actual progress demands a departure from
centralized governance models that stifle innovation and freedom. Thanks to
blockchain and AI, digital decentralization allows us to align technology with ethical
principles and human values for a just and democratic society in the 21st century.
VIEW DETAILED LEXICON OF THIS PAGE
44
Detailed Lexicon
Previous Note
This lexicon seeks to guarantee the explanatory self-sufficiency of each chapter of the book, providing
the reader with a clear understanding of the terms used. The redundancies in definitions throughout
the lexicon were intentional. They offer complementary perspectives according to the specific context
of each chapter, aiming to enrich the understanding of the terms and concepts covered.
PART I
(return to Part I)
Artificial Intelligence (AI): Systems or machines capable of performing tasks that usually require human
intelligence, such as learning, adaptation, and problem-solving. AI is essential for analyzing large
volumes of data and improving the efficiency of programmable systems.
Blockchain: Decentralized registration technology that guarantees the transparency and security of
digital transactions, eliminating the need for intermediaries. It is crucial to implementi multidimensional
incentive systems through smart contracts (see lexicon in chapter 1).
Corruption: Practice of actions or omissions in exchange for undue advantages, both for oneself and for
third parties.
Cutting-edge encryption: Advanced technology that guarantees the security of digital information with
mathematical rigor, through complex codes, essential for protecting transactions and data in the digital
era.
Digital Centralization: Process of distributing control of systems or networks, reducing the
concentration of power. In the digital age, blockchain often achieves decentralization, promoting
transparency and democratic participation.
Digital Decentralization: Process of distributing control of systems or networks, reducing the
concentration of power. In the digital age, decentralization is often achieved through blockchain,
promoting transparency and democratic participation.
Innovative Monetary Architecture: New monetary system design or structure that incorporates
advanced technologies, such as blockchain, and can serve to create a more ethical, transparent, and
inclusive financial system.
Programmable Economic-Financial Incentive System: System with the ability to codify rules and
conditions in financial transactions, allowing automatic and transparent execution of agreements, which
is a significant evolution in relation to traditional systems.
Smart Monetary Systems: Financial systems that use advanced technology, such as blockchain and AI,
to create programmable money with additional functionality, such as automatic execution of contracts
and transactions.
Chapter 1 – Incentives Beginning: A Ledger System (back to chapter)
Blockchain Technology: Digital registration system that ensures transparency, security, and
immutability of data through a chain of encrypted blocks, facilitating transactions without the need for a
central authority.
Debit System: Recording method where payment obligations or debts are documented, allowing parties
involved to settle accounts in the future without the need for an immediate physical exchange.
Digital Decentralization: Process of distributing control of networks or systems, such as finance, from a
central entity to multiple parties or users, increasing transparency and reducing the risk of corruption.
Digital Currencies: Evolution of money towards completely electronic and programmable formats,
which can be used in online transactions and incorporate specific rules and conditions through smart
contracts.
Smart Contracts: Computer programs that automatically execute the clauses of a contract when pre-
defined conditions are met, guaranteeing the unquestionable execution of the agreed terms.
45
Chapter 2 - Back to the Future of Money (back to chapter)
Central Bank Digital Currencies (CBDCs): Digital versions of currencies issued by central banks. It is a
new digital form of digital money that maintains centralization and government control.
Credit System: Method of recording promises to pay, where value is exchanged based on mutual trust,
without the need for a physical means of immediate exchange.
Decentralized Digital Currencies (Cryptocurrencies): Digital currencies that operate on a decentralized
network, without the centralized control of banks or governments, allowing secure and anonymous
transactions through advanced cryptography.
Hyperledgers: Digital accounting records shared by several entities, ensuring secure and transparent
transactions. This technology is revolutionizing finance, making it more efficient and reliable.
Smart Contracts: Automatic programs that execute, verify, or enforce the negotiation or performance of
a contract automatically and securely, without intermediaries, generally using blockchain technology.
Yap coins (Fei or Rai): Large stone discs used as currency in Micronesia, especially on the Yap Islands,
which represented promises to pay and whose ownership was known and recognized by the
community, without the need for physical movement.
Chapter 3 - Cryptography and Artificial Intelligence Impact (back to chapter)
Advanced Encryption: Set of security techniques to protect information, ensuring that only authorized
people can access it.
Artificial Intelligence (AI): Simulation of human intelligence processes by computer systems, including
learning (the acquisition of information and rules for using the information), reasoning (using the rules
to reach approximate or definitive conclusions), and self-correction.
Proof-of-personhood: Method that allows unequivocally verifying the uniqueness and authenticity of
each human being in digital systems, ensuring that such a user corresponds to a unique real person
without revealing their identity. It seems like a pipe dream, but it became reality thanks to encryption.
Big Data: Large volumes of data, both structured and unstructured, that can be analyzed to obtain
insights and make better, faster decisions.
Blockchain Networks: Systems that record transactions on multiple computers in such a way that such
recording cannot be changed retroactively without changing all subsequent blocks through network
consensus.
Zero-knowledge proofs: An encryption technique that allows one party to prove to another that a
statement is true without revealing any information other than the truth of the statement itself.
Community Ecosystems: Networks or communities that function interdependently, sharing common
resources and objectives with a focus on sustainability and collective well-being.
Chapter 4 - Programmable Digital Currencies (back to chapter)
Bitcoin: The first and best-known of cryptocurrencies, which uses blockchain technology to allow secure
and decentralized transactions without the need for intermediaries.
Decentralization: Distribution of power and control of a network or system, contrasting with centralized
systems where control is maintained by a single entity or a small number of entities.
Digital Currencies: Evolution of money towards completely electronic and programmable formats,
which can be used in online transactions and incorporate specific rules and conditions through smart
contracts.
Ethereum: Blockchain platform and pioneering operating system in the creation and implementation of
smart contracts and dApps (decentralized applications) without recourse to centralized entities.
Ethereum: Cryptocurrency used on the Ethereum network, essential for the creation and execution of
smart contracts and dApps (decentralized applications) on this platform.
Smart Contracts: Computer programs that automatically execute the clauses of a contract when pre-
defined conditions are met, guaranteeing the unquestionable execution of the agreed terms.
46
Chapter 5 – Cryptoeconomics (back to chapter)
Circular Economy: Economic system that aims to minimize waste and promote the reuse, recycling, and
sustainability of resources, contrasting with the linear model of "produce, use and discard".
DApps: Decentralized applications that operate on a blockchain network through smart contracts. These
contracts and applications can incorporate variables and rules appropriate to ethical principles that
reflect human values.
Distributed Ledger Technologies (DLT)): systems that record transactions in multiple locations
simultaneously, in a decentralized manner, increasing data security and transparency.
Collective action: Collaboration of individuals or groups towards a common goal, especially within the
context of decentralized networks, where collective action is facilitated by the transparency and
reliability of blockchain technology.
Consensus mechanisms: Rules and processes that allow participants in a blockchain network to agree
on the valid state of a transactional blockchain, in a decentralized and secure manner. They work based
on mathematical rigor and algorithms, without the need for direct human intervention in validation
decisions for individual transactions.
Proof of Stake(PoS): Consensus mechanism that allows cryptocurrency holders to validate transactions
and create blocks on the blockchain, depending on the number of coins they own and are willing to
"stake" as a guarantee of their commitment to not compromising the security of the network.
Proof of Work(PoW): System where participants compete to solve complex mathematical problems,
which gives the winner the right to validate transactions and create new blocks on the blockchain, as
well as receiving the corresponding reward stipulated in the cryptographic protocol.
Cryptoeconomy: Economic system that emerges from the use of cryptocurrencies and blockchain
technology, characterized by decentralization, transparency, and the possibility of integrating ethical
and social values in financial transactions.
Decentralized Autonomous Organizations (DAO): Entities managed by rules encoded in smart contracts
on the blockchain, operating without a centralized management structure, allowing democratic and
collective decision-making.
Tokenomics: Economy of tokens in a blockchain network, covering the process of creating tokens, their
distribution and the impact on the economic dynamics of digital ecosystems.
Externalities: Effects of an economic activity that impact third parties not directly involved in that
transaction, which may be positive (benefits) or negative (costs).
Tokens: Digital units that represent values or assets in a blockchain network, used in transactions and
capable of incorporating specific conditions through smart contracts.
TokensProgrammable: Tokens that can be configured to perform specific functions or represent certain
values or rights within a blockchain system, based on predefined criteria.
Chapter 6 - CBDC: Centralization of Programmable Money (back to chapter)
Anonymity of Transactions: Concept related to the ability to carry out financial transactions without
revealing the identity of the participants, a characteristic of physical money and cryptocurrencies (there
are anonymous and pseudo-anonymous) that can be challenging to replicate with CBDCs without
compromising their transparency and security, potentially threatening the privacy and freedom of users.
Central Bank Digital Currencies (CBDC): Digital currencies issued and regulated by central banks. Their
alleged objective is to modernize the financial system, increasing the efficiency of monetary policies, but
they raise questions about privacy, surveillance, and control of citizens.
Digital Wallets: Applications or devices that allow users to store and manage their digital currencies,
including CBDCs, facilitating digital transactions and access to financial services.
Single-Point-of-Failure: It refers to a point in the system that, if it fails, could compromise the entire
system. In the context of CBDCs, centralization can make the financial system vulnerable to cyber-
attacks due to the existence of such points.
47
PART II
(return to Part II)
Advanced Cryptography: Security technology that uses complex algorithms to protect information,
ensuring its confidentiality and integrity.
Analytical and Predictive Capacity: Ability to analyze large amounts of data and predict future events
based on this analysis.
Disruptive Applications: Innovations that significantly alter or replace established practices, often
resulting in new ways of functioning or thinking.
Transparent Transactions: Open and verifiable operations by all parties involved, ensuring the honesty
and integrity of the processes.
Immutability: Virtue of not being able to be altered or modified, essential in blockchain technologies.
Irrefutable Trust: Total confidence in the security and reliability of a system or process, in this case,
derived from the use of advanced encryption.
Silent Revolution: Profound but gradual change that does not attract immediate public attention.
Smart Contracts: Agreements executed automatically when certain pre-established conditions are met,
encoded on a blockchain.
Verifiability: Ability to be proven to be true or correct.
Chapter 7 - Blockchain and AI in Healthcare (back to chapter)
Active Substances: Ingredients in a medicine responsible for the therapeutic effect.
Artificial Intelligence (AI): Set of technologies that allow machines to simulate human capabilities such
as learning, reasoning, and solving problems, being used in healthcare to analyze data and support
medical decision-making.
Blockchain: Technology that allows the creation of decentralized and secure digital records, which
cannot be changed retroactively. It is the basis of many cryptocurrencies and has diverse applications,
including in healthcare to ensure data security and privacy.
Clinical Data: Information relating to the health of patients, used for diagnosis, treatment, and medical
research.
Medical Records: Documents that contain patients' clinical history, including diagnoses, treatments,
exams, and other relevant health information.
Medication Tracking: Process of monitoring the journey of medicines from production to the final
consumer, to guarantee their authenticity and safety.
Patient Privacy: The right of individuals to maintain the confidentiality of their health information,
protecting it from unauthorized access.
Pecuniary Compensation: In the context of the chapter, they are cash payments made to individuals as
a reward for sharing their personal data or participating in scientific research.
Point 7.1 – Ethical and Political Implications in Health (back)
Authoritarian Regimes: Forms of government in which a single entity or small group holds absolute
power, without meaningful citizen participation in political decision-making.
Digital Decentralization: Distribution of power and control of digital systems, removing the need for a
central authority and promoting greater user participation and autonomy.
Governance: Set of processes, policies and laws that govern the way an organization is directed,
controlled, or administered, ensuring efficiency, transparency, and responsibility.
Self-Executing Contracts (Smart Contracts): Digital agreements stored on blockchain that automatically
execute when predefined conditions are met, without the need for intermediaries.
Chapter 8 - Blockchain and AI in Education (back to chapter)
Academic Credentials: Documents or records that prove an individual's completion of courses or
educational programs, such as diplomas, certificates, and degrees.
48
AI Algorithms: Sequences of programmed instructions used by AI to process data, identify patterns, and
make decisions. In the educational context, they help to adapt teaching to the individual needs of
students.
Artificial Intelligence (AI): Branch of computer science dedicated to creating systems capable of
performing tasks that normally require human intelligence, such as learning, reasoning, and solving
problems. In education, AI is used to personalize educational content and analyze learning patterns.
Blockchain: Digital record system that maintains a growing list of records, called blocks, that are
interconnected and protected through encryption. In education, it is used to create secure, immutable
records of academic credentials.
Digital Records: Electronic versions of traditional documents, such as academic credentials, that can be
stored, managed, and shared digitally.
Microcredits: Small credits or recognition given to students for educational achievements, which can be
accumulated and used within an educational system.
Smart Contracts: Programs stored on the blockchain that automatically execute the conditions agreed
between the parties, without the need for intermediaries. In education, they can be used to validate the
completion of courses and the presence of students and teachers.
Tokens: Units of value issued by an entity on the blockchain, which can represent assets or be used as a
form of payment. In education, they can be used to pay teachers or grant credits to students.
Point 8.1 - Ethical and Political Implications in Education (back)
Academic Records: Official documents that detail a student's educational history, including courses
taken, grades earned, and academic qualifications.
AI (Artificial Intelligence): Branch of computer science that develops machines and programs capable of
performing tasks that typically require human intelligence, such as data analysis, trend forecasting and
decision making.
Blockchain: Technology that allows the creation of a shared and immutable digital record of
transactions, ensuring data security and transparency.
Digital Academic Credentials: Digital representation of qualifications and educational achievements,
facilitating their verification and secure sharing.
Digital Decentralization: Distribution of control and management of networks or systems, avoiding the
centralization of power in a single entity or location.
Personalization of Education: Adaptation of educational content and pedagogical methods to students'
individual needs and preferences.
Tokenization: Process of converting rights or assets into digital tokens that can be transacted or stored
on a blockchain.
Chapter 9 - Blockchain and AI in Philanthropy (back to chapter)
Artificial Intelligence (AI): Technology that allows machines and computer systems to simulate human
intelligence, including the ability to reason, learn, perceive, and make decisions.
Blockchain: A digital recording system that stores information in a secure, transparent, and immutable
way. It works like a distributed ledger where all transactions are recorded and verified by the network,
eliminating the need for a central authority.
Decentralized Autonomous Organizations (DAO): Entities managed by rules encoded in smart contracts
on the blockchain, operating without a centralized management structure, allowing democratic and
collective decision-making.
Smart Contracts: Self-executing programs that carry out, verify, or enforce the negotiation or
performance of a contract automatically and without intermediaries, based on predefined conditions.
Social Economy Organizations or Non-Governmental Organizations (NGOs): Private, non-profit entities
that operate independently of government and are often involved in a variety of social, humanitarian, or
environmental activities.
Tokenomics: Study of the economy of tokens in a blockchain network, covering the process of creating
tokens, their distribution, and the impact on the economic dynamics of digital ecosystems.
49
Traceability: The ability to track the routes of funds, from their origin to the final consumer, ensuring
the authenticity and confidentiality of transactions, as well as their integrity, making transparency
compatible with privacy thanks to encryption.
Transparency: In philanthropy, it refers to the clarity and openness with which organizations manage
and report the use of donated funds, allowing donors to see exactly how and where they are used.
Point 9.1 - Ethical and Political Implications in Philanthropy (back)
Philanthropic Organizations: Entities that are dedicated to promoting the well-being of others, usually
through donations or volunteering, for charitable purposes or for the betterment of society.
Responsibility: Principle by which individuals or organizations are responsible for their actions and must
account for their activities, ensuring that they comply with established expectations and standards.
Tokens: Units of digital value that are used within a given blockchain ecosystem to represent assets or
grant rights and can be used to encourage (or even as the only way to enable) certain specific behaviors
or transactions.
Traceability: Ability to track the path and use of funds and other resources, ensuring their authenticity
and appropriate application.
Chapter 10 - Blockchain and AI in Art and Entertainment (back to chapter)
Augmented Reality: Technology that superimposes digital information, such as images or data, onto the
physical world, enriching the visual experience of reality enjoyed by the user.
Blockchain: Distributed ledger technology that guarantees the security and transparency of digital
transactions, maintaining an immutable and verifiable record of all operations.
Copyright: Legal rights granted to creators over their works, protecting their use, reproduction, and
distribution.
Intermediaries: Entities or individuals that act as mediators in transactions or agreements between two
parties, such as publishers or art galleries.
NFT (Non-Fungible Tokens): Unique digital assets on the blockchain, impossible to counterfeit thanks to
cryptography, that represent exclusive ownership of digital or physical items, such as works of art.
Self-executing contracts: Digital agreements programmed on the blockchain that automatically execute
when pre-defined conditions are met.
Virtual reality: Immersive digital environment that simulates physical reality, allowing users to interact
with computer-generated three-dimensional spaces.
Point 10.1 - Ethical and Political Implications in Art and Entertainment (back)
Copyright Management: The process of administering and protecting the legal rights assigned to
creators of original content, such as music, books, art, and software.
Digital Decentralization: Movement to distribute control and ownership of data and digital resources
among multiple participants, rather than centralizing them in a single entity or organization.
Intellectual property: Legal rights granted to creators over their inventions, literary and artistic works,
symbols, names, and images used in commerce.
Secure and Immutable Digital Records: Protected databases that cannot be altered or deleted,
guaranteeing the authenticity and permanence of information.
Smart Contracts: Automatic programs stored on the blockchain that execute pre-defined actions when
the conditions specified in them are met, without the need for intermediaries. For example, a musician
can use a smart contract to sell a new song, stipulating that with each download or playback, a specific
percentage of the revenue is directly transferred to them. This method guarantees a fair and
transparent distribution of income, reducing dependence on publishers and distribution platforms.
Chapter 11 - Blockchain and AI in Energy (back to chapter)
AI (Artificial Intelligence): Branch of computer science that develops machines and software with the
capacity to perform tasks that normally require human intelligence, such as pattern recognition and
decision making.
50
Blockchain: Digital recording technology that allows the creation of an immutable and secure
transaction history, distributed across a computer network, without the need for a central control
entity.
Central Bank Digital Currencies (CBDC): Digital currencies issued and regulated by central banks. Their
alleged objective is to modernize the financial system, increasing the efficiency of monetary policies, but
they raise questions about privacy, surveillance, and control of citizens.
Consumers-Producers (Prosumers): Individuals or organizations that, in addition to consuming energy
(or anything else), also produce it. Blockchain and AI allow them to sell the surplus.
Cryptocurrency Mining: Computational process that involves validating transactions and adding them to
the blockchain's distributed “ledger” (hyperledger), in exchange for a reward in cryptocurrencies that
are then sold (or stored) by miners for profit.
Renewable energy: Forms of energy produced from natural resources that are continually renewed,
such as solar, wind, hydraulic and biomass energy.
Tokenization: Process of converting rights or assets into digital tokens that can be traded on a
blockchain network.
Virtual Drums: Metaphor that describes the value storage capacity of cryptocurrencies, which can
absorb surplus or cheap energy, when mining, and redistribute it in the form of digital financial assets.
Point 11.1 - Ethical and Political Implications in Energy (back)
Blockchain: A distributed ledger technology that enables the creation of a shared, immutable digital
ledger of transactions. It guarantees security, transparency, and resistance to data tampering, being
fundamental for the decentralization of processes and systems.
Artificial Intelligence (AI): It refers to systems or machines that imitate human intelligence to perform
tasks and can iteratively improve based on the information collected.
Decentralization: The process of distributing and diversifying power away from a central authority, a
fundamental principle of blockchain technology that increases security and transparency.
Digital tokens: Units of value that are created on a blockchain and can represent assets or rights,
facilitating transactions with specific attributes and rules incorporated.
Smart Contracts: They are self-executing programs stored on the blockchain that automatically execute
pre-determined actions when specific conditions are met, without the need for intermediaries.
Chapter 12 - Blockchain and AI in Finance (back to chapter)
Artificial Intelligence (AI): Branch of computer science focused on creating machines or programs
capable of performing tasks that normally require human intelligence.
Blockchain: Technology that allows transactions to be recorded on multiple computers in a secure,
transparent, and immutable way, forming a chain of data blocks.
Central Bank Digital Currencies (CBDCs): Digital version of the national currency issued and regulated by
a central bank, representing a liability of the central bank.
Cryptocurrencies: Digital currencies that use cryptography for security and operate independently of a
central bank, with Bitcoin being a prominent example.
DApps (decentralized applications): Applications that operate on a blockchain network, promoting
decentralization and resistance to censorship.
Financial Disintermediation: Reduction or elimination of financial intermediaries between transactions,
allowing parties to interact directly.
Smart Contracts: Programs stored on a blockchain that automatically execute transactions (the
conditions of the contract) when the pre-established rules in its clauses are met.
Tokens: Digital assets or units of value issued by an entity, which may represent real assets or access
rights to services on a blockchain network.
Point 12.1 - Ethical and Political Implications in Finance (back)
“Corruption by Omission”: In the sense described in the text, it is the situation in which a problem
occurs not through direct illegal actions but through the lack of integration of ethical, moral, and social
considerations in financial operations.
51
Digital Decentralization: Concept of distributing control and decision-making of digital systems from a
central authority to a distributed network, increasing user participation and autonomy.
Chapter 13 - Blockchain and AI in Real Estate (back to chapter)
AI (Artificial Intelligence): Simulation of human intelligence processes by computer systems. In real
estate, AI can be used to analyze large amounts of data to predict market trends, optimize prices,
among other applications.
Blockchain: Distributed ledger technology that keeps a growing list of records, called blocks, linked and
secure using cryptography. It is known for its use in cryptocurrencies, but it has many other applications,
including real estate.
Democratization of the real estate market: Make real estate investment more accessible to a wider
public, reducing financial and bureaucratic barriers.
Distributed Ledger Technologies (DLT): Decentralized database systems that record, distribute, and
synchronize transactions in multiple locations without a central authority, standing out for their security
and transparency.
Immutable registration: A feature of blockchain that ensures that once data is recorded, it cannot be
altered or deleted, offering greater security and transparency in transactions.
Smart Contracts: Computer programs that are stored within the blockchain and automatically execute
the conditions agreed by the parties involved, without the need for intermediaries.
Tokenization of properties: Process of dividing real estate properties into parts and digital assets called
tokens, which represent fractions of the total value of the property, allowing the purchase and sale of
these fractions in a more accessible way and according to the conditions stipulated in smart contracts.
Tokens: Digital units created using blockchain technology that represent rights or assets, such as
fractions of real estate properties, and can be bought, sold, or exchanged.
Point 13.1 - Ethical and Political Implications in Real Estate (back)
Blockchain: Technology that allows transactions to be recorded on multiple computers in a secure,
transparent, and immutable way, forming an incorruptible chain of data blocks.
Decentralized regulation: Regulatory approach that distributes decision-making power to various
entities, individuals or even communities, instead of centralizing power in the traditional way.
Distributed Ledger Technologies - DLT: Decentralized database systems that record, distribute, and
synchronize transactions in multiple locations without a central authority, standing out for their security
and transparency.
Investment granularity: Ability to divide the investment into smaller parts, allowing investors with
smaller capital to participate.
Owner mentality: Feeling of responsibility and belonging that an individual has in relation to an asset or
property.
Programmable digital currencies: Virtual currencies that, in addition to serving as a medium of
exchange, can be programmed to automatically perform certain specified functions or conditions.
Public-Private Partnerships (PPP): Collaborations between government entities and private companies
to finance, build and operate projects that serve the public.
Smart Contracts: Computer programs that are stored on a blockchain and automatically execute
contract conditions when predefined criteria are met.
Stakeholders: Individuals or groups who have an interest in or are affected by the activities of an
organization, project, or system.
Tokenization: Process of converting rights to an asset, such as real estate, into digital tokens that can be
traded on blockchain platforms.
Chapter 14 - Blockchain and AI in Logistics (back to chapter)
Artificial Intelligence (AI): Technology that simulates human intelligence in machines, allowing them to
perform complex tasks such as data analysis and trend forecasting.
Blockchain: Technology that allows the creation of a decentralized and secure digital record, in which
transactions are encrypted and chained into blocks.
52
Logistics: The process of planning, implementing, and controlling the efficient flow of goods and
services, from the point of origin to the point of consumption.
Oracles: Electronic systems and devices that quantify and provide data from the physical world
(distinguished from the virtual world with the adjective “real”, although the virtual world is also reality)
for accounting in the blockchain, allowing the interaction of the material world with the digital
ecosystem.
Transparency: The clarity and openness with which information is made available and accessible,
allowing the origin and journey of products to be verified.
Point 14.1 - Ethical and Political Implications in Logistics (back)
AI (Artificial Intelligence): Computer systems that can perform tasks that normally require human
intelligence, such as learning, pattern recognition, and decision making.
Blockchain: A digital recording technology that stores data in connected and secure blocks,
guaranteeing the immutability and transparency of information.
Oracles: In the context of blockchain, these are external data sources (e.g., thermometers) that feed
blockchain-based systems with information from the physical world.
Supply chains: Complex networks that involve the production, storage and distribution of goods and
services, from the producer or manufacturer to the final consumer.
Traceability: The ability to trace the origin and history of a product or service throughout the entire
supply chain.
Chapter 15 - Blockchain and AI in Governance (back to chapter)
Artificial Intelligence (AI): It refers to systems or machines that imitate human intelligence to perform
tasks and can iteratively improve based on the information collected. In governance, AI can be used to
analyze data and optimize resource allocation.
Blockchain: A distributed ledger technology that maintains a growing list of records, called blocks, that
are linked and secured using cryptography. It guarantees the immutability and transparency of
transactions, becoming a secure basis for electoral processes and public policy management.
Digital Decentralization: The principle of reducing the central point of control in systems and processes,
distributing power and decision-making across a wider network. In governance, it promotes greater
transparency and accountability.
Electoral Processes: They refer to the set of activities related to the organization and execution of
elections, including voting, and counting of votes. Blockchain and AI can increase the security and
transparency of these processes.
Zero-Knowledge Proofs (ZKP): Cryptographic method in which one party proves to another that a
statement is true, without revealing any information beyond the validity of that statement.
Governance: The act or process of governing, involved in conducting the policy, actions and affairs of a
state, organization, or community. Blockchain technology can improve governance by increasing
transparency and reducing corruption.
Explainable Artificial Intelligence (XAI) or Inteligência Artificial Explicável: A field of artificial
intelligence focused on creating AI systems whose processes and decisions are transparent and easy to
understand for users. This allows algorithms to be verified and understood, enabling the accountability
of government officials and increasing citizens' trust in technology.
Smart Contracts: They are self-executing programs that run on the blockchain and automatically
execute the conditions of a contract when predefined rules are met. They can be applied to automate
the implementation of public policies.
Homomorphic Encryption: Cryptography technique that allows you to perform calculations and
operationalize encrypted data, maintaining the confidentiality of this data during its processing.
Point 15.1 - Ethical and Political Implications in Governance (back)
Artificial Intelligence (AI): Technology that allows machines to simulate human capabilities such as
reasoning, learning, perception, and creativity.
53
Blockchain Technology: A digital system that records transactions on multiple computers in a secure,
transparent, and immutable way, ensuring that data cannot be changed retroactively.
Digital Tokens: Units of value often associated with blockchain projects, which can represent assets,
such as votes, cryptocurrencies, or access to services on a digital platform.
Smart Contracts: Automatic programs that make a contract self-executing when pre-defined conditions
are met, without the need for intermediaries.
Chapter 16 - Blockchain and AI in Security and Defense (back to chapter)
Advanced Encryption: Information protection method that uses complex algorithms to encode data,
making it inaccessible to anyone who does not have the decryption key.
Blockchain: Distributed ledger technology that guarantees the integrity and transparency of information
stored on a network, through chained blocks protected by cryptography. It allows data verification
without the need for a central authority and is widely used to ensure data security and integrity.
Cyber Attacks: Malicious attempts to access, alter, steal, or destroy information from computer systems
or networks, generally to obtain illegal advantages.
Cybersecurity: Practices and technologies designed to protect computer systems, networks, and data
against cyber-attacks.
Data analysis: Process of examining, cleaning, and modeling data sets to discover useful information,
draw conclusions, and support decision making.
Interoperability: Ability for different systems, devices, or organizations to work together in an
integrated way, allowing the exchange of information between them and their reciprocal use.
Simulation of Conflict Scenarios: Use of computational models to recreate and study combat situations
and military strategies, allowing analysis and military training without taking real risks.
Point 16.1 - Ethical and Political Implications in Security and Defense (back)
Artificial General Intelligence (AGI): Advanced level of AI capable of understanding, learning, or
applying knowledge and skills in any domain, in a way like or superior to human intelligence.
Artificial Intelligence (AI): Branch of computer science that develops machines capable of performing
tasks that normally require human intelligence, such as learning, reasoning, and solving problems.
Homomorphic Encryption: Cryptography technique that allows you to perform calculations and
operationalize encrypted data, maintaining the confidentiality of this data during its processing.
Oracles: In the context of blockchain, they are systems or entities that provide external data to smart
contracts, allowing them to interact with the real world.
Smart Contracts: Self-executing programs stored on the blockchain that automatically fulfill the
predefined conditions of a contract, without the need for intermediaries.
Zero-Knowledge Proofs (ZKP): Cryptographic method in which one party proves to another that a
statement is true, without revealing any information beyond the validity of that statement.
Chapter 17 - Blockchain and AI in Digital Identity (back to chapter)
'Deepfake': Artificial intelligence technique used to create convincing fake videos or audio,
altering/manufacturing the content to appear real, often with the intention of deceiving or defaming.
Biometry: Identification method used for digital authentication, based on people's unique physical or
behavioral characteristics, such as fingerprints, facial recognition, among others.
Blockchain: Digital recording technology that stores data in a secure, transparent, and immutable
manner, distributed across a computer network, eliminating the need for a central authority, and
increasing security and trust between parties. It is often associated with cryptocurrencies, but has
applications in several fields, including digital identity management.
Digital Identity: Electronic representation of a person or organization in the digital world, which may or
may not include data such as name, email address, personal identification information, among others,
which allows for unique and unambiguous identification in digital systems.
Content Authentication: Process of verifying the origin and integrity of digital information, ensuring that
the contents have not been altered or falsified.
54
Universal Basic Income (UBI): Social policy proposal that suggests the allocation of a regular and
unconditional financial amount to all citizens, aiming to guarantee a minimum level of financial security
and contribute to quality of life and social peace.
Point 17.1 - Ethical and Political Implications in Digital Identity (back)
Artificial Intelligence (AI): Branch of computer science that develops machines and systems capable of
performing tasks that normally require human intelligence, such as learning, reasoning, problem solving,
perception and language.
Excessive Surveillance: Intrusive and invasive monitoring by government or private entities of
individuals, often without their consent or knowledge.
Fraud and Abuse: Deceptive or illegal activities committed with the intent to obtain improper financial
or personal benefits.
Identity Usurpation: The act of impersonating another person, assuming their identity, generally to
access resources, obtain credit or other benefits fraudulently. AI could become an expert in this and
there is an urgent need to manage this inexorable trend politically.
Proof-of-personhood: Method that allows unequivocally verifying the uniqueness and authenticity of
each human being in digital systems, ensuring that such a user corresponds to a unique real person
without revealing their identity. It seems like a pipe dream, but it became reality thanks to encryption.
Conclusions and Recommendations (back)
Artificial Intelligence (AI): Set of technologies that allow machines to simulate the human capacity for
reasoning, learning and problem solving.
Blockchain: Distributed ledger technology that guarantees the security, transparency, and immutability
of digital transactions, allowing the tracking of digital assets in a decentralized manner.
Central Bank Digital Currencies (CBDC): Digital version of the national currency issued and regulated by
a central bank, theoretically controlled by the State, representing official and digital money.
“Cryptoeconomy”: Area that studies cryptographic protocols and decentralized applications to create
innovative economic and financial systems.
Digital Decentralization: Process of distributing control of technological systems and processes, moving
away from centralized management by a single entity
Digital Yuan: China's official digital currency, developed by the People's Bank of China, aiming to
modernize the country's monetary system and increase state control over financial transactions.
Free Monetary Competition: Principle that defends the existence of multiple forms of money, allowing
individuals and companies to freely choose between different currencies for transactions.
Quantum Computing: The use of principles from quantum mechanics to perform high-speed
calculations, solving complex problems inaccessible to classical computers.
Unequivocal Proof of Humanity (Proof-of-Personhood): Method that allows unequivocally verifying the
uniqueness and authenticity of each human being in digital systems, ensuring that such a user
corresponds to a unique real person without revealing their identity. It may seem like a pipe dream, but
it has become a reality thanks to cryptography.
55
BIBLIOGRAPHY
Abdulhakeem, S. A. and Hu, Q. 2021. Powered by Blockchain technology, DeFi strives to increase
financial inclusion of the unbanked by reshaping the world financial system. Modern Economy, 12(01),
pp.1.
Alcazar, CV (2017). Data you can trust. Air and Space Power Journal, 31(2), 91–101.
Beller, J. 2020. Economic Media: Crypto and the Myth of Total Liquidity. Australian Humanities Review,
66, 215–225.
Casey, M.J., & Vigna, P. 2018. In blockchain we trust. MIT's Technology Review, 121(3), 10–16.
Dapp, MM 2019. Toward a Sustainable Circular Economy Powered by Community-Based Incentive
Systems. In Business Transformation through Blockchain (pp. 153–181). Palgrave Macmillan.
Davidson, S., De Filippi, P., & Potts, J. 2018. Blockchains and the economic institutions of capitalism.
Journal of Institutional Economics, 14(4), 639-658.
De Filippi, P. & Wright, A., 2018. Blockchain and the law: The rule of code. HarvardUniversity Press.
de Oliveira Rodrigues, D. E. F. (2024). Personhood Global Whispers: Ethical Echoes of Decentralization?
Procedia Computer Science, 237, 767-774.
European Parliament, 2017. Recommendations to the Commission on Civil Law Rules on Robotics
(2015/2103(INL)). Official Journal of the European Union, C 252, pp.239-257.
Fitzpatrick, S.; McKeon, S. Banking on stone money: ancient antecedents to bitcoin. Economic
Anthropology, 2020, 7.1: 7-21.
George, AS, George, AH & Baskar, T., 2023. Worldcoin: A Decentralized Currency for a Unified Global
Economy. Partners Universal International Research Journal, 2(2), pp.136-155.
Hamel, G. 2000. Leading the revolution. Harvard Business School Press.
Hayek, F. 1976. Denationalization of money. Institute of Economic Affairs.
Hayek, F. 1990. Denationalization of Money-The Argument Refined. An Analysis of the Theory and
Practice of Concurrent Currencies (3rd ed.). Academic Press.
Ingham, G. 2013. The nature of money. John Wiley & Sons.
Keynes, J.M. 1915. The Island of Stone Money. Economic Journal (London), 25(98), 281–283.
Kim, YS, & Lee, JW 2011. Corruption and Government Roles: Causes, Economic Effects, and Scope. Korea
and the World Economy, 12(3), 513–553.
Lacity, MC, 2022. Blockchain: From Bitcoin to the Internet of Value and beyond. Journal of Information
Technology, 37(4), pp.326-340.
Lannoye, V. 2020. The History of Money for Understanding Economics. Vincent Lannoye.
Laukyte, M. & Lucchi, N., 2022. Creative AI: The Complex Relationship between Human Inventiveness
and Intellectual Property. BioLaw Journal-Rivista di BioDiritto, (3), pp.169-183.
56
Livingston, D., Sivaram, V., Freeman, M., & Fiege, M. 2018. Applying blockchain technology to electrical
power systems. Academic Press.
Loureiro, M., Pêgo, A. and Raposo, I.G., 2021. The Real Blockchain Game Changer: Protocols and DAOs
for Coordinating Work to Provide Goods and Services. In: D. Rodrigues, ed., Political and Economic
Implications of Blockchain Technology in Business and Healthcare. IGI Global, pp.160-172.
Martin, F. 2013. The Unauthorized Biography. Random House.
Negroponte, N. 1995. Being Digital–A Book (P) review. Wired.com, 3.
Rodrigues, D. 2020. The Dangerous Business Model of Social Networks. Observer.
https://observador.pt/opiniao/o-perigoso-modelo-de-negocio-das-redes-sociais/
Rodrigues, D. 2011. Cyberethics of E-Business Social Networking. In MM Cruz-Cunha et al. eds.
Handbook of Research on Business Social Networking: Organizational, Managerial, and Technological
Dimensions. IGI Global – Business Science Reference Publishers, pp.314-338.
Rodrigues, DD and Lopes, PS 2021. Blockchanging Politics: Opening a Trustworthy but Hazardous
Reforming Era. In: D. Rodrigues, ed. Political and Economic Implications of Blockchain Technology in
Business and Healthcare. IGI Global. pp.118-159.
Rodrigues, DD, 2021. Blockchanging Trust: Ethical Metamorphosis in Business and Healthcare. In DD
Rodrigues, ed. Political and Economic Implications of Blockchain Technology in Business and Healthcare.
IGI Global, pp.1-41.
Rodrigues, DD, 2021. Blockchanging Money: Reengineering the Free World Incentive System. In DD
Rodrigues, ed. Political and Economic Implications of Blockchain Technology in Business and Healthcare.
IGI Global, pp.69-117.
Szabo, N. 2002. The Origins of Money (No. 0211005). UniversityLibrary of Munich.
Tapscott, D., & Tapscott, A. 2016. Blockchain revolution: how the technology behind bitcoin is changing
money, business, and the world. Penguin.
Tavares, J. (2021). Electronic Health Record Patient Portals and the Blockchain Technology. In D.
Rodrigues (Ed.), Political and Economic Implications of Blockchain Technology in Business and
Healthcare (pp. 218-227). IGI Global.
Von Hayek, FA 1944. The road to serfdom. London: George Routledge & Sons, 67, 84.
Weatherford, J. 2009. The history of money. Crown Currency.
Werbach, K. 2018. The blockchain and the new architecture of trust. MIT Press.
Westerlund, M. 2019. The emergence of deepfake technology: A review. Technology Innovation
Management Review, 9(11).
Worldcoin, 2023. Worldcoin tokenomics. Available at: https://whitepaper.worldcoin.org/tokenomics.
Young, S. 2018. Changing governance models by applying blockchain computing. Catholic University
Journal of Law and Technology, 26(2), 87–128.
Zwitter, A., & Hazenberg, J. 2020. Decentralized Network Governance: Blockchain Technology and the
Future of Regulation. Frontiers in Blockchain-Blockchain for Good, 3, 12.
57
This work is licensed under the CC BY-NC-ND 4.0 public license. VIDEO SERIES
