The Stone Society

Version 3.4a (September '99)
Copyright Peter Merel, 1996, 1997, 1998, 1999.
Pat. Pending

Permission to copy this document in part or in whole is granted provided that these copies are not made or distributed for resale, and provided that the copyright notice is retained verbatim and displayed conspicuously. If you would like to obtain further permissions, please email Peter Merel.

The economy of the future will be based on relationship rather than possession.
- John Perry Barlow.

Maybe we can continue another very small step along that path that we started when we stopped using violence to settle or to decide things, and moved on to using money.
- Tim Berners-Lee.

Money doesn't exist in the twenty-fourth century.
- Jean-Luc Picard, ST8.


Contents

  1. Executive Summary
  2. Parallels
  3. Stone Society Elements
  4. Stone Society Mechanics
  5. Comparison with Contemporary Socio-Economics
  6. Applications and Benefits
  7. Implementation Notes
  8. Patent Notes
  9. Stones Forum
  10. Changes Since Version 1.0 (October 1996)

  1. Executive Summary
  2. The Stone Society is a socioeconomic technology suited to the corporate management of shared human, logistic, software and capital resources, online collaborative determination of policy, automatic network load-balancing, and scalable online gaming. The Stone Society is not a prescription for a specific kind of society, but a mechanism to support an evolving network of many different societies. This mechanism is described in considerable detail below, but here in a nutshell:

    There's a lot more in what follows. The point is that this mechanism seems to offer significant advantages over traditional socioeconomics:

    In short, the Stone Society should permit any-sized group of human or automated participants to obtain harmonious social arrangements without depending on representatives, banks, insurers, or any other traditional delegated authority.


  3. Parallels
  4. There have been few historical parallels to the Stone Society. This is not surprising, as it is not practical to scale this system without the use of modern computer networks and public-key cryptography. The Stone Society also requires freedoms of expression and political participation that have been suppressed throughout most human history.

    Without such tools and freedoms there was little opportunity for people to employ a socio-economics like this. Only a handful of small-scale historical enterprises exhibit a similarity: one colorful but disreputable example was the 17-18th century society of the Brethren of the Coast.

    The motivation for originating this system was to develop an economics that embodied philosophical Taoism as expressed by Lao Tse. Although generally interpreted in other contexts, Lao's ancient Chinese poem is useful as a strategic guide to the equally venerable game of Wei Qi, best known today by its Japanese name, Go. The rules of Go, which match pieces called Stones in a space of competing configurations, were the starting point for the mechanism of the Stone Society.


  5. Stone Society Elements
  6. Societies

    A Society is, for our purposes, a collection of persons, automatons and sub-societies interoperating under a Charter that formally defines the Society's scope and purpose, the recourse and responsibilities of its Officers, and means whereby Officers and Resources may enter, leave and exchange Service within it.

    A Stone Society is one whose Charter accomodates the elements and mechanisms described below. The Stone Society does not entail any particular ethics, scope, or purpose; it's a tool to be employed by many different kinds of society in many different contexts.

    Stones

    Stones represent the opportunities a Society offers its participants. They are tokens of both political and economic franchise. A Stone is not a physical object, but rather a string of bits that can be permanently associated with a particular officer by means of a digital signature. Mechanisms for authenticating Stone interactions will be similar to those now widely employed over the Internet for authenticating electronic cash.

    Each Officer of a Stone Society may originate only a finite number of Stones. For the purposes of a democracy, all Officers will originate the same number of Stones. Meritocratic societies such as a university or the crew of a ship may allocate their Stones in proportion to the market value of the duties undertaken by their Officers.

    Commissions

    A Commission is a voluntary contract; it attaches a group of the Society's Stones to a person, automaton or sub-Society, and creates it as an Officer with a well-defined set of duties to the Society. Stones are created in a Stone Society only when Officers accept its Commissions.

    The duties of a Commission require acceptance of some legislative code or compact. In societies dedicated to operational purposes, such as the function of a ship, these duties may include practical requirements and contingent chains of command. Some Stone Societies may also allow "Non-Commissioned Officers" to hold Stones, participate in Services, or bid at Auctions without their accepting a Commission.

    Auctions and Preferences

    An Auction is used within a Stone Society to obtain or contest the control of Resources and to choose between alternative Preferences: policies, courses of action, and Commissions. Different Auctions represent choices that are more or less independent; Preferences within each Auction are mutually exclusive.

    Quanta and Terms

    The outcome of an Auction, together with the strength in Stones of its support, is referred to as the Auction's Quantum. The relative sizes of their Quanta resolve contradictions between conflicting Auctions. Each Quantum is fixed by its Auction for the duration of a Term defined in its Society's Charter. Generally, all Auctions within a Society are synchronized to the same Term and this Term will only vary according to the scale of the Society's operations.

    Bidding

    Bidding during one Term of an Auction does not affect its Quantum until the subsequent Term. Bids may be made for or against the various Preferences of an Auction with the effect that each bid Stone raises or lowers by one the Rank of the Preference for or against which it is bid. At the end of each Term a Society's Quanta are re-evaluated according to the Ranks that the Preferences of their Auctions have obtained. Each Auction's leading Preference and its Rank represent the Auction's Quantum for the subsequent Term.

    Recycling

    At the end of each Term, after its Quanta are determined, all the Stones bid to Auctions in a Society are recycled to their original Officers. This is necessary because the outcome of an Auction is not fixed. Auctions are subject to continual re-evaluation so that their Society can meet its circumstances as they change over time. Recycling also eliminates any need for the delegation of capital to banks or treasuries.

    Resources

    Things and processes that are the subject of a Stone Society's legitimate Auctions are treated within it as Resources. Control and disposition of Resources is determined for each Society by the interaction of its Stones as constrained by the qualifications of its Charter. In cases where a Resource generates further things and processes, these are controlled and disposed by the same means as the original Resource, except where explicitly re-assigned by Charter or by Auction.

    Services

    A Service is a lease of limited access to Resources and processes, initiated at the discretion of their controller(s) for the opportunity of others. Services proceed under the terms of Service Contracts in exchange for payments of Stones or barter in other Services.

    A Service overrides control of its Resources to the extent described in its Service Contract. It may not override the effects of any article of the Charter of its Society, nor may it override the effects of any of its Society's Auctions. Any remedy for the interruption of a Service by an Auction must be explicitly prescribed in the corresponding Service Contract.


  7. Stone Society Mechanics
  8. Officers and Possessors

    At most times each Stone is related to two of its Society's participants. The first is the Stone's Officer, the participant who has been assigned it in exchange for undertaking a Commission. The second is the Stone's possessor, who may be either the Officer or a participant who received the Stone as payment for a Service. A Stone's possessor may, subject to restrictions in the Society's Charter, hold the Stone indefinitely, pass it on to a new possessor in exchange for some other Service, or bid it in an Auction. When a Stone is bid, at the end of the Term in which it is bid, it is recycled to the possession of its Officer.

    Originating Auctions

    A new Auction may be created in two ways: one of the Society's Officers may propose it from scratch, or an Officer may propose to clone it from one or more of the Preferences in existing Auctions.

    An Auction starts from scratch when an Officer of a Stone Society proposes new policies, courses of action, assignments of Resources, Commissions or social conventions for the Society. Cloned Auctions are appropriate when an Officer feels the Preferences of some existing Auctions are not mutually-exclusive in some case, or that there is some significant ambiguity in resolving the outcomes of previously existing Auctions. By either method, the new Auction starts with all its Preferences ranked at zero.

    Auctions entail mutually exclusive Preferences but further Preferences may be added at any time. A Society's Charter may define some ante conditions for the origination of new Auctions and Preferences, such as that these would only be accepted along with some significant first bid of Stones.

    An extra Preference, known as a "donkey", is presented to bidders at the head of each Auction's list of Preferences. The effect of each donkey would be to cancel its Auction entirely. Because Auctions may never exceed the parameters of their Society's Charter, if a Society's Charter is effectively defined then most vexatious or trivial Auctions may be ruled out without resort to donkeys.

    End-of-Term Bidding

    If, at the end of a Term, a Quantum of an Auction seems likely to change, concerned participants may conduct a series of time-limited bidding rounds in order that that no Quantum is determined by ambush. This end-of-Term process continues until, for three rounds, no one can bid sufficient Stones to alter the Auction's outcome.

    When more than one Auction is in dispute at the end of a Term, end-of-Term bidding is conducted in parallel for all disputed Auctions. The Term does not finish, new Quanta do not take effect, and bid Stones are not recycled until the end-of-Term process is complete for all of a Society's Auctions.

    Quanta and Effects

    Where two Auctions obtain Quantums that contradict in a particular case at a particular time, whichever outcome has resulted in the largest Quantum will take precedence. If Officers of a Society perceive this to be inequitable, they may soon alter matters by bidding Stones for or against one or another Quantum, or by framing a new Auction to decide the matter directly.

    The effect of the Quantum of a particular Auction will often outlive that Quantum. Commitment of a Society to a contractual arrangment, the offer or extinction of its Commissions, and various physical effects of Quanta may not be readily altered. This is similar to the effect that personal decisions have on the circumstances of an individual; though a commitment may be regretted, the Quantum that represents it reversed, the persistence of its effect will often affect a Society as an ongoing circumstance.

    Parameterized Quanta

    It is possible to frame a Preference in an Auction such that its effect is determined as a function of the amounts, bidders or other properties of the Stones bid for or against the Preference. It is important that Stones bid both for and against such a Preference be equivalent in their contribution to its effect, so that Officers may bid against the Preference while still guarding their interests. As per usual, the effect will only be empowered should the Preference become a Quantum, and in every other way such a Parameterized Quantum is treated by the Society as it would treat any other Quantum.

    Terms

    Even when dwarfed by new bids, for the duration of an Auction's Term its old Quantum must remain in force. So different Terms will be appropriate for different scales of Society.

    A Society of automated agents controlling a machine might be appropriately responsive only when it employs a Term of nanoseconds. A small Society of humans will likely employ Terms of days, with contingent exceptions defined by means of sub-Societies (defined below). A Society of nations might require Terms of a year or more, and some future Stone Society, with Officers at far-flung relativistic distances, might employ Terms of decades and centuries. Each Stone Society will employ a Term that coordinates its operation without unduly distressing its Officers.

    Commissions

    Commissions provide for the acquisition of skills, technologies, materiel and opportunities by a Society. They may also be used to define, scope and resource subsidiary Societies.

    Unless described within a Society's Charter, the form of each Commission is defined by means of a Commission Definition Auction ("CDA"). Each CDA describes necessary qualifications, attendant responsibilities, conditions of discharge, and other requirements.

    A subsequent Auction, a Commission Recruitment Auction (CRA), selects candidates for the Commission. Each candidate's qualifications and asking price in new Stones will be represented as a Preference in the CRA, with its donkey Preference having the effect of rejecting all candidates.

    When the CRA completes its Term, formal offers are extended to the preferred candidates. If an offer is accepted, a group of Stones is created for each new Officer when they accept the duties of the Commission.

    A Officer of a Society may resign or may be discharged from their Commission depending on its details, the circumstances, and the Charter of the Society. If penalties are to attend termination of a Commission, these must have been detailed in the description of the Commission before it was accepted.

    Involuntary termination is effected by a Commission Termination Auction (CTA). Conditions on the creation of a CTA, including its range of Preferences, will be specified in the Society's Charter and the original CDA. A donkey Preference of the CTA has the effect of cancelling it, and the relevant CDA and Charter may specify double-jeopardy restrictions on subsequent CTAs. Conditions on the creation of a CTA may also include numbers and qualifications of Officers proposing the CTA, approval by Contextual Societies, standards of evidence, rights of appeal to external courts, and so on.

    Stones originated by a de-Commissioned person are deactivated in this way: any of their original Stones remaining in their possession are immediately cancelled; their original Stones not in their possession are simply not recycled when next bid at Auction. De-Commissioning does not affect a person's possession of the Stones of others unless specified by the relevant CDA or Charter.

    Contextual and Subsidiary Societies

    When it is convenient for Stone Societies to interact, they may establish a supervening Stone Society to serve as the context of their interaction. This is known as a Contextual Society. Once a Charter for such a Society is agreed, the participating Societies accept various Commissions within it. Conversely a Subsidiary or "Sub" Society may be formed by an existing Stone Society to fulfill one of its Commissions.

    The Stones of a Contextual Society, "Contextual Stones", are controlled within a Sub-Society by the same means that control all the Sub-Society's Resources: by Auctions of the Sub-Society's Stones. Resources involved in a Contextual Society may be controlled as per its Charter only by means of its Contextual Stones. So long as the Charters of interacting societies are closely defined, and the scoping of such societies permits no loops, these arrangements may be managed by means of the standard Stone mechanisms.

    Note that, to the extent permitted by a Sub-Society's Commission within a Contextual Society, the Contextual Society may permanently remove Resources from or otherwise coerce the Sub-Society.

    Privacy

    A Stone Society can only function to the extent that its participants are able to trust one another. Therefore, within a Stone Society, to the extent defined by its Charter, there can be no secrecy among its Officers. If a Commission is a voluntary contract between the Society and its Officers then the details of Auctions, Services, Stone dispositions and the Charter itself must be common knowledge among them.

    It will still be possible that the true identities of Stone Society participants may be protected; they may be known to one another solely as cryptographically protected pseudonyms. But their operations within the Society cannot be hidden from one another if the proper function of the Society is to be assured.

    The flow of information between a Stone Society and persons outside it, however, may be secured by any means that the Society sees fit to install. The discretion of Officers of a Society can be secured by means of conditions attached to their Commissions. The physical flow of bits between Officers can be secured by public key cryptography. Just as a person, a Society should be able to share any of its information with external agencies, or not, as only it sees fit.

    In the case of Subsidiary Stone Societies, described above, the Charters of Contextual Societies will make explicit reference to any information sharing/hiding obligations in their Commissions. It should thus be straightforward to construct hierarchies of Stone Societies as appropriate to the security of any cooperative endeavour.

    Limitation of Franchise

    In some Societies, especially those with few Officers, there is some danger that a conspiracy may attempt to stack the process of new Commissions and thereby allocate itself and its confederates an overwhelming majority of Stones. This is similar to a situation in capitalism where the major shareholders of a company dilute its stock to the disadvantage of minor shareholders.

    This issue must be addressed explicitly in a Society's Charter. Limitations on numbers and types of Commissions and careful definition of standards of duty of Officers to their Society must be carefully designed to detect and mitigate abuses of franchise.

    Antitrust Protection

    Antitrust restrictions on Services may be specified by a Society's Charter. These restrictions attempt to promote competition by prohibiting practices that lead to unreasonable restraints of franchise. In a Stone Society the aim is generally to prevent "denial of service" strategies whereby a block of participants, by only trading Services among themselves and hoarding Stones they receive from outside the block, effectively increase their own franchise.

    In a Stone Charter, antitrust restrictions may be as simple as time limits on the possession of non-original Stones. Stones paid for a Service wouldn't be available to the sellers forever, but would instead be recycled a certain number of Terms after they were paid, or even at the end of the same Term in which they were paid, whether or not they were bid in an Auction.

    Executing multi-Term and multi-stage Services under such restrictions would require a negotiation process similar to the the method by which virtual circuits are set up under an ATM communications protocol. Stone market effects would tend to optimize the arrangement of such Service stages even before the negotiated Services commenced. More likely, however, is that such complex relationships will actually be conducted by a combination of new Commissions and sub-societies.

    Death and Taxes.

    Stones are only created in a Society when new Officers are Commissioned. These Stones are recycled perpetually until Officers are either de-Commissioned or die. An Officer's control of Resources and their possession of Stones may be inherited or transferred as constrained by their Society's Charter. An Officer's ability to originate and recycle Stones, however, may not be inherited or transferred. Furthermore, some Societies may define their Charters so that Resources and Stones may be removed from their control only under certain circumstances.

    Stone Societies permit a remarkable efficiency with regard to taxes. If a Society is to implement centralized or public-service oriented agencies (usually as sub-Societies) these may be funded directly by the Stones attached to a Commission. Each agency's budget is thereby allocated without the need to levy taxes on other enterprises or on the property and incomes of the Society's Officers.

    Restitution and Diplomacy

    The normal process of a Stone Society is interrupted when its participants' consensual access to one another and to social resources is interfered with. We distinguish here between interference originating with Officers of the Society and interference originating outside the Society. The former is regarded as a tort for which restitution must be made, where the latter is a subject for the Society's diplomatic process.

    Stone torts occur when Officers of the Society intentionally interfere with the effects of the Society's Quanta, Commissions, or Services by coercion, fraud, theft, censorship, dereliction, violence or other force. In principle, such Officers are liable to restitute their Society to an extent determined by the value of the effects they disrupt.

    In the case of a Quantum, this will be the number of Stones represented in the Quantum multiplied by the number of Terms in which the interference occurs. In the case of a Commission, this will be the number of Stones awarded in the Commission multiplied by the number of Terms during which the interference occurs. In both these cases the injured party is the Society as a whole, so restitution, garnished from the offender's account until paid in full, is simply recycled as if it had been bid at an Auction.

    In the case of a Service, restitution is the number of Stones exchanged in the Service Contract over the period of the interference. This being an offence against the purchasers of the Service rather than against the Society as a whole, this restitution is paid proportionally to the parties who paid for the Service.

    If an Officer is unwilling or unable to make restitution as prescribed here - in the case, for example, where the value of the restitution is greater than they could possibly pay - a Society may further see fit to expel them. In such cases, as with forms of interference originating outside the Society, diplomatic remedies and precautions may then be applied.

    Criminality and the Stone Judiciary

    The role of a Stone judiciary is removed from the processes of drafting and applying policy, and determining penalties, which are naturally implemented by means of the standard mechanism of a Stone Society, possibly augmented by its creation of Contextual Societies. The Stone judiciary's purpose is then only to investigate, certify and present evidence for consideration by its Society.

    A Stone judiciary must provide structures for formal legal processes involving disputants, witnesses and advocates. It may be that these processes will involve no delegated authorities, and that Stone judgements may be rendered by Auction. It may be, however, that such an arrangement would itself produce an avenue for the application of preemptive force unless persons prejudiced against one or another party in a dispute could be excluded from the Auction. This being the case, delegation of judgemental authority to a Contextual Society may be unavoidable.

    Although the structure of the legal process of a Stone Society will be peculiar to that society, Stone judiciaries should entail some roles that can be identified here. One such is that of an Advocate - someone whose purpose is to gather and present evidence for or against various Preferences in a Stone Auction. Another is a Moderator - something like the role of a judge, but with no power of decision - a quality-assurance job to ensure that appropriate presentations, standards of evidence, and qualification of jurors are met. These roles will weigh heavily, and likely be assigned by Commission.

    A Stone Society, as described above, holds its Officers criminally accountable only to the extent specified by their Commissions. People who are not Officers might still be held accountable if a society maintains reciprocity with societies that do have them as an Officer. Sanctions against persons who do not thereby fall within a Society's jurisdiction cannot be described as legal sanctions: they must properly be thought of as acts of diplomacy.


  9. Comparison with Contemporary Socio-Economics
  10. Contemporary socio-economics are based on two forms of representation: representative democracy and representative pricing. Where these representations fail, or where interaction between the two can be manipulated, contemporary socio-economics breaks down.

    The Stone Society seems secure against contemporary failings because it employs methods of consensual participation instead of delegated authority. This is not to say that problems can't arise when Stone Societies are put into use; a poorly defined Stone Charter might produce any kind of social monstrosity. The potential benefits of Stone Societies, however, are easily appreciated in the light of present-day failings.

    Failures of representative pricing

    Disinformation

    Modern marketing sets out to distort market perceptions rather than to accurately represent goods and services. Conversely, many vital resources go unrepresented; for example there is no market for ecological or social interdependence, so such considerations cannot influence economic decisions.

    Participants in Stone Societies who misrepresent their Services must subsequently succumb to hostile bids from those they mislead. Participants concerned with ecological or social interdependence can link these issues directly to the pricing of development policies. Many traditional forms of disinformation should therefore be impractical under a Stone Society.

    Hoarding

    Irrevocability and exclusivity of resource control result in irresponsibility among resource controllers. While collective and exclusive modes of resource management are easily represented under contemporary socio-economics, modes of resource sharing are not. Because these modes are not formally represented, they become unobtainable.

    Under a Stone Society, no resource is irrevocably controlled. Market responsibility is required at all times if control of a resource is to be maintained. Likewise, exclusive control policies, while feasible, will be much less stable than arrangements for resources to be shared; shared usage Preferences will gain more support bids and less opposition bids in Auction than exclusive Preferences, and so must predominate. Resource sharing is wholely market-defined, however, and so will not degenerate to collective resource management except when market-forces actually prefer this.

    Privileged franchise

    At present only governments and banks can create money. Many worthy endeavours are cash-starved, and undeserving endeavours cashed to the hilt, according only with the social preferences of bankers and bureaucrats. Every Officer of a Stone Society, on the other hand, possesses the capacity to originate capital; the extent to which ordinary Officers' interests can be aroused determines support for any new endeavour.

    Failures of representative democracy

    Hierarchical organization

    Each node in an organizational hierarchy compartmentalizes and distorts the information that passes through it. The deeper the hierarchy, the worse the effects of these "Chinese Whispers". Traditional socio-economics, by its delegation of authority and its preference for exclusive control modes, directly encourages the spontaneous formation of bureaucracies, corpocracies, and other greasy-poles.

    Intentional hierarchies are practicable under a Stone Society. This is just as well, as organizations that must be tightly controlled, such as military forces, are best ordered by chains of command. Spontaneous generation of hierarchies, however, will be discouraged under a Stone Society, as authority can neither be obtained nor delegated except by market forces. So Stone-based organizations will determine their structures fluidly according to changing circumstances.

    Party systems

    Representatives are responsible to the constituents of their parties instead of the constituents of their electorate; a political party is often a kind of conspiracy against the public interest, and an election often equivalent to the choice between blindfold and cigarette.

    Officers of a Stone Society do not employ representatives, but determine policy directly. While Stone Societies may Commission administrators, these will neither serve as representatives nor benefit by conspiring in parties.

    Disrepresentation

    Under contemporary socio-economics, political and economic representatives enjoy various forms of extra-legal privilege and immunity, even when they abuse their positions. Blind eyes and golden handshakes are commonplace; elected representatives often retain office no matter how they betray their electors' interests.

    Stone Societies, for the most part, may operate as meritocracies. The security of any administrator under a Stone Society depends entirely on that Society's satisfaction with their performance, as expressed by Auction. Any administrator that does not satisfy their Society will swiftly find themselves out of a job.

    Market Manipulations

    Undue Influence

    "Strings", campaign donations, payola, market speculation by government members, insider-trading by corporate officers, and so on, profoundly distort all areas of policy, because only socially privileged persons are able to access these methods.

    Under a Stone Society, such forms of influence are no longer privileged. Every Officer of a Stone Society can use their economic franchise to directly and equitably influence political decisions without any effect of impropriety. When political influence is not privileged, no influence can be "undue".

    Speculation

    Charting and gambling, rather than accurate assessments of value, dominate present-day markets. Systemic abstractions like debt and profit are almost always preferred to real human experiences of resource and opportunity.

    Such systemic abstractions play no part in the mechanism of Stone Societies because Stones are grounded in common perceptions of opportunity and resource. Activities that monopolize resources, or that do not hold out tangible benefit to a Society, will not pay; in fact, due to hostile bids, these activities should result in considerable losses.

    *****

    Although deeply flawed, traditional socio-economics is not all bad. In fact it enables more people to enjoy material security and productive endeavour than ever before in history. If there is to be a resolution of the failures described here it must represent evolution from rather than revolution against present day socio-economics. Picard says of the Star Trek utopia: "The accumulation of wealth is no longer the driving force: we work to better ourselves and humanity." If it is at all practicable, the Stone Society may provide a stepping-stone towards the realization of this ideal.


  11. Applications and Benefits
  12. The Stone Society offers many advantages over the alternatives described above. These include:


  13. Implementation Notes
  14. The following notes sketch a simple client-server implementation of a Stone Society. More scalable implementations should base their designs on the physical distribution of Stones and Auctions, so the following may be regarded more as design concept than development plan.

    Stone Society Architecture

    In order to implement the Stone Society as an information system we need a process model, which organizes and resources the function of the Society, a user interface, which makes the function of the Society accessible to its participants, and an authentication model, which verifies the correct function of the Society for its Officers.

    These three models correspond in this design with three programs that work together to implement a Stone Society. These are the Stone Client ("SC"), the Stone Engine ("SE"), and the Stone Auditor ("SA").

    An SC is a Java Bean or similar componentware that will integrate with the Netscape Navigator, Microsoft Internet Explorer and other clients. It manages interfaces between users, third party components and one or more Stone Societies. The SC runs on the users' computers and communicates with SEs via standard Internet communication and database protocols, most likely TCP under RMI, CORBA, and/or Voyager. The SC is capable of dealing with the SEs of many different Stone Societies simultaneously.

    An SE is a server or servlet that maintains a database of Stones, Officers, Accounts, Auctions and Services that represent a particular Stone Society. The SE program includes provision for fault-tolerance, load sharing and multi-tier scalability; many SE processes may be hooked together in networks to properly service a growing Stone Society. These networks behave, from the viewpoint of an SC or SA, as a single SE, so no distinction is made below between a single SE and a network of them.

    An SA is a Java Bean or similar componentware that obtains audit records from one or more SEs and cryptographically verifies their integrity. The SA employs the same communication facilities that SCs use to deal with SEs; its role is to serve the audit requirements of the Authentication model described here.

    Multiple instances of these processes work together to implement each Society's Auctions and Services. Each Stone Society deploys at least one SE, and each Officer in the Society deploys an SC and one or more SAs.

    Process Model

    Authentication Model

    Basis

    Public Key Cryptographic techniques provide three functions vital to the secure distribution of Stone Societies:

    The means by which Stone transactions are authenticated rely entirely on the security of these techniques.

    Method

    Each Stone transaction is an operation on a Society's distributed database of Stones, Officers, Accounts, Auctions and Services. Two guarantees are required to ensure the proper function of these transactions:

    To ensure this authentication, Stone Society transactions each involve a cryptographic process:

    At the end of each Term a Society's database has obtained a new state. This state is published along with all of the signed transactions that led to it. Each of the Society's Officers' SAs obtains this information and verifies that:

    In order that inconsistencies in the audit trail of a Society may be easily remedied, this process may actually be conducted at the start of end-of-Term bidding, and after each round of end-of-Term bidding as well. Remedies for inconsistencies in the audit trail will involve rollback to a previously well-defined state. In cases of deliberate fraud, they may also involve the cancellation of Stones and Commissions, and other measures that will vary from one Society to another.

    The weakest link in this model is the generation of the SEs' administrative keys; it is easily conceivable that a rogue administrator might crack these keys. There are, however, only two uses for such a crack, and both of them are readily detected:

    User Interface

    The functions of the SC are split into two broad categories. One is the reporting functions that cater to the need of an Officer of a Society to keep up with the progress of the various Auctions, Services and Commissions that concern him. The second is a control function that permits the Officer to propose Auctions and Preferences, to bid to Auctions, to create Services and conduct Audits.

    The SC user interface should be almost entirely non-modal, permitting an Officer to view whichever of its reports is convenient while still observing the progress of a Society's processes. The SC user interface will also include provision for preemption, interrupting the Officer when it detects events in which he has previously defined an interest.

    An Officer can use his SC to obtain reports on:

    An Officer can use his SC to contribute to:

    Many ancillary functions must also be catered to by an SC, mainly to do with the proper administration and maintenance of a Society and its SEs, and to coordinate the Quanta of the Society with the actual functions of its Resources.


  15. Patent Notes
  16. I'm not certain it was best to patent this idea. I support the abolition of software patents. I recognize the terrible damage they are doing to the software industry, the opportunities for useful development they quash, and the counterproductivity of the monopoly that is built on them.

    Nevertheless, Stones has been intended from the start as an evolutionary rather than a revolutionary system. It is supposed to complement existing socioeconomics, which includes among its many flaws the existence of software patents. I don't believe I can expect to safeguard the development of Stones without some ability to play in this arena.

    The intention now is to license the idea itself and the Stones software as free for non-commercial use. By this I mean that, most uses would be copyleft and patentleft - only inclusion/interfacing to proprietary software and deployment to manage commercial enterprises will likely require a commercial license. And by patentleft I mean that any software released under a GPL would get a free license.

    It has been lately suggested that Stones should properly own itself; that licensing of The Stone Society should be controlled by A Stone Society. I like this notion too, but I expect Stone Societies will come in a great many stripes, none of which we can properly anticipate right now. I don't want to recapitulate Camelot just yet, but eventually it seems inevitable ...

    Anyway the patent will only affect US usage. If you're using this stuff elsewhere you shouldn't need to trouble yourself beyond concerns with copyright. And good luck to you!

    [A quick update on this: as of 9/99 several of the original patent claims have been approved by the uspto. A CIP is in progress and links to the uspto stuff will go in here when the thing issues.]


  17. Where can I discuss this stuff?
  18. If you'd like to get informed of or involved in developing this idea, the best place to do it is the WikiWikiWeb. You can also receive anouncements about it by subscribing to the The Up-Wing Mailing List, though that's a lot quieter than the Wiki. An excellent discussion of other alternative economic systems is online at transaction.net.


  19. Changes since version 1.0 (October '96)