Implications of non-fungible blockchain tokens
Reality Is Fake, research and development team, 2018
BLACK PAPER 02-2018-rifrd.black
For immediate release. Distribute at will.
Implications of non-fungible blockchain tokens
There is a cloud of hype around the distributed-computing protocols known as "blockchain." Our team has investigated these technologies and we believe that there is a lot of potential in them. However, much of what has been proposed and promised is quite far from delivery. Vaporware seems to exist in greater proportion than actual demonstrable product. And even much of what is already in alpha and beta phase relies on traditional, centralized tech patches to work properly.
Because of this, we are less excited about the possibilities of blockchain protocols. Apart from enabling stateless currencies, there seems to be little need for them.
However, there is one product, which has been released and seems to be working fine, that indicates fertile ground for us to investigate at these research facilities. As frivolous as it may seem on the surface, the Cryptokitties game showcases a core feature of the blockchain protocols that is truly remarkable--the ability to create unique and copy-proof digital goods. Or, if you like, "intentional scarcity." Or even "scarcification."
The eventual effects of this feature could be meaningful. It is, after all, a reversal of the costless reproduction of digital information that computing technology allows, and which has so radically affected human civilization. The culture industries--publishing, film production, music and recording arts, etc. etc.--were mortally wounded by computer-aided "piracy" at the end of the 20th century. Culture makers, meanwhile, found new ways to support their activities, even prospering better without the drag of production-and-distribution middlemen. In less than a quarter century, everything has changed, simply because it takes no effort to copy a Hollywood movie and give it to your friends.
And now we have a potential antidote to that phenomenon. The existence of unique, copy-proof cartoon kittens implies of course that it is possible to make any other information object copy-proof as well. Can a 90-minute film be distributed thusly? Can a full album be released on the net and be also invulnerable to piracy? What are the limitations of this new technical capability? How much control does it give to the owners of intellectual property? (Our ideas about the validity of such ownership notwithstanding.)
The truth, at present, is that the data cost of a single cryptokitty is rather small. It is but is a string of letters and numbers. Such digital objects as a film, music album, or even a short book are much larger. It is not currently practical to store large pieces of data on a blockchain (though obviously there are tech companies working on the problem.) Returning practical (as opposed to legal) control of creative output to that output's creator is at least one breakthrough short of actually happening.
That breakthrough may yet come. In the meantime, the invention of nonfungible tokens, as they are called, is still rich with possibilities. So far we have imagined these:
Unique artifacts in mixed reality. As cryptokitties, and other digital collectibles, are rendered visually on the web through markup language and vector graphics, so might they be rendered through any language, in any media. For instance, it would be just as possible to use a nonfungible token to describe an object in augmented reality. Imagine a species of breedable creatures that can be seen with smartglasses, in three dimensions, moving and playing on the very real floor of our own homes, yet existing only as beasts of the digital layer.
Limited edition seeds for procedurally generated music and art. Whether or not it's possible to store recorded music on the blockchain, it is still possible to use nonfungible tokens as inputs for any procedural music generator, and to offer a selection of musical moods and styles for sale to the public. Other forms of art can be made with procedural generators as well. In fact, as augmented and virtual reality becomes more available in the consumer market, it may be possible to design and sell entire explorable worlds for only $19.99. These seeds will be as limitable and copy-proof as any other nonfungible item.
Autonomous Digital Entities--Exactly how far can this go? Can a nonfungible token provide the parameters for an artificial intelligence? And if a person can own such a token, can that person somehow release that token into the wild? If these things are possible, then we can presume the possibility of unique digital intelligence structures living free in the digital layer. Admittedly, this would require new links to be formed between a few technologies. Still, we've come this far, haven't we? Why not further yet? It can be built. And when you consider this concept in light of the above-described augmented reality concept . . .
- Fr. Mendax, Alaska, 2018
references-
https://github.com/ethereum/EIPs/issues/809
https://github.com/ethereum/eips/issues/721