Author: ioptio

Introduction & Technical Overview of SAFE Consensus

The features included in decentralized networks can be quite varied based on the proposed goals of the technology. From the sharing capabilities offered by Bittorrent to user privacy enabled via Tor’s routing protocol, network designs directly reflect the mission set forth by their architects. Within autonomous networks that rely on data and system integrity where network critical actions may fail or produce faulty outputs, consensus mechanisms are an important feature which optimise reliability. Just like in greater society where important business or policy decisions are typically deferred to a board or committee rather than depending on a single individual, computer systems which manage data and user accounts in a diverse environment face quite a lot of potential for parts of that system to be inaccurate or unresponsive. In commonly owned and openly participatory networks, the risk of malicious behavior adds even greater importance of consensus around its current state and actions taken.

As a decentralized, peer-to-peer network with an initial focus on reliable storage and communication, the SAFE Network requires a high standard for data integrity. User files and account information are secured and stored in such a way that no major outage should affect access of data for the main network. While most P2P networks gain in security from a global network of distributed nodes (the SAFE Network further obfuscates traffic using global multiple hop routing), critical decisions for maintaining security of stored data are kept “localised” in SAFE for increased efficiency and privacy.

The Nature of Consensus: Global & Local

Before diving into the specifics of SAFE consensus, let’s do a bit of comparison with other recent developments in decentralized consensus design. One of the more interesting implementations was introduced several years ago with the launch of Bitcoin. The combination of proof of work and blockchain technologies has enabled an extremely reliable way to track a permanent and ordered list of cryptographically secure transactions. All nodes within the Bitcoin Network store and verify a copy of the blockchain which protects against tampering with historical transactions and faulty reporting of newly created ones. Unfortunately, the global and public nature of Bitcoin’s consensus process creates drawbacks with regard to efficiency and privacy. . The fact that all nodes in the network need to track and agree on a single, infinitely growing ledger has proven scaling problems and simplifies the ability for deep analysis of the ledger and user profiling. While various efforts are looking to solve theses issues, the years of research carried out by the MaidSafe team has resulted in a consensus mechanism designed specifically for privacy and efficiency – a different goal than the proof of concept architected by Satoshi Nakamoto for Bitcoin. This protocol is the basis of the SAFE Network and when compared to Bitcoin takes a very different approach, enabling actions and verifying network states based on local node consensus.

Those following MaidSafe may know of our preference for the emulation of natural systems which have hundreds of thousands of years of testing in diverse environments and harsh conditions. This philosophy can be extended to help understand a high level reasoning for our approach to consensus. Animal societies of all kinds localise decisions to reach agreements about immediate threat levels and other states of being while brains have evolved to localise neuron function for efficiency. Additionally, local consensus allows for the more sophisticated societies formed around humans to make intelligent decisions about sensitive actions such as an elected committee deciding on substantial policy changes for a community. Of course, these social situations come with their own vulnerabilities if the individuals involved in consensus decisions have similar self interested goals which do not reflect the interest of that which they govern. However thankfully, in computer networks, measures can be implemented which prevent local consensus abuse (or misuse) by nodes and it all starts with the foundation on which the network is built upon.

XOR Close Group Consensus

A recent post on this blog titled Structuring Networks with XOR outlines the basics of defining closeness within the SAFE Network’s distributed hash table (DHT) implementation. If you are not familiar with the foundation of Kademlia-based DHTs, that post will be a prerequisite to effectively understanding consensus process in SAFE that we will now dive deeper into. As we explore how such local consensus is approached using XOR closeness, it is important to keep in mind that “closeness” in this sense does not refer to geographical closeness, rather from a perspective of network address. So when nodes have IDs which are close in distance according to the XOR calculation, their physical locations could be on opposite sides of the planet.

By relating network elements in terms of XOR closeness, a unique group of the closest nodes to a given object can be determined and subsequently act in a managerial role for it. As long as these objects have unique IDs which can be translated to binary, everything from data to nodes can be related to each other in terms of distance and assigned a close group of network nodes (or as we call them, Vaults). This close group of Vaults can take on a variety of purposes depending on the object they surround, but center on management of data and node integrity consensus processes. The graph below shows how we can relate any object with ID n to its four closest online Vaults.


Whether the data is public keys, encrypted personal files and client account information, or cryptocurrencies, close group authority is the basis for the SAFE Network’s ability to self-manage and self-heal. As long as nodes are not able to predetermine their location in the DHT address space, the inclusion within a close group is essentially random and drastically reduces any chance of group members colluding to disrupt the integrity of an action on particular piece of data. A future post detailing the security against various types of attacks will dive deeper into concepts like how IDs are assigned but for the purpose of understanding the consensus mechanism, we can view it as random. Further, each group consensus requires a quorum of vaults for authority approval which protects against a minority of unreliable nodes. The exact quorum to group size ratio will be investigated as part of ongoing test networks to balance efficiency with security. Additionally, as vaults in the network go on and offline (referred to as network churn), the members in close groups will be in a constant state of flux to accommodate for new or lost nodes.

Node and Group Authorities

The variety of close group authorities formed in SAFE are fundamentally determined based on the ID of the object which the vaults within that group surround. These distinct consensus responsibilities are referred to as personas. Client nodes act as a complementary authority for user authorised actions within the network and differ from Vault nodes as they do not route data but instead act as an interface for users to connect into the network and access or upload data. Each Vault node can also be considered an authority with the extremely limited capabilities of responding to requests for data they store. Using cryptographic key signing, the network verifies authority based on messages sent by Clients, personas and individual Vaults.

Some actions require just Client and Vault cryptographic authorisation (such as reading data already uploaded to the network) while others involve at least one persona consensus as well (such as storing new data to the network). Autonomous actions require no Client authority and solely rely on persona consensus and Vault cryptographic authorisation (such as network reconfiguration to reassign data storage when a Vault goes offline). These autonomous processes are what enables the SAFE Network’s ability to heal itself and manage nodes and stored data without the need for any centralised authority or Client action. This is a major difference from Bittorrent’s implementation of Kademlia which does not provide availability of data – if a few Bittorrent nodes hosting an niche piece of content all eventually go offline, there is no network procedure for reallocating that data and it therefore becomes inaccessible.

The Four Authorities

The network’s routing protocol defines four authorities. There are two node authorities: Client and ManagedNode (Vault storing data); and two fundamental persona types: ClientManager and NaeManager (Network Addressable Element) consensus groups. Fundamental persona types are defined based on placement in the DHT and XOR closeness to object IDs while ManagedNodes are determined based on their inclusion within a NaeManager group. The persona types are subcategorised into specialised responsibilities based on the type of data or account which they surround. It is expected that personas will overlap, meaning a single Vault might be included within several close groups simultaneously while also storing data assigned to it.

Authority Network
Persona Group
Client Client node N/A Private & public
data access
Vault node
close group
MaidManager Client authentication
& PUT allowance
MpidManager Client inbox/outbox
Vault node
close group
GET rewards & data
GET rewards, data
updates & data
ComputeManager (TBA) TBA
ManagedNode Vault node N/A Store data & respond
to data requests


While Clients have authority outside of group consensus, as previously mentioned, they have limited control and are never in a position which affects data reliability. Clients are the windows into the network for users and therefore will control data and messages from a client-side perspective such as encryption and decryption for uploaded data. For each client connection into the network, there is an anonymising proxy node which relays all data to and from destinations within the network, but the proxy does not have the ability to read any of it (for those familiar with Tor, this function is akin to a “guard node”).1


The ClientManager persona consists of Vaults closest to a Client ID and is subcategorised into MaidManager and MpidManager personas. MaidManager (Maid Anonymous ID) is adjacent to the personal ID associated with a Client and has the responsibility of managing that user’s personal account functions, such as upload allowance and authentication. MpidManger (Maid Public ID) surrounds the public ID associated with a Client and is responsible for maintaining the Client’s inbox and outbox for sending messages to other Clients.


The NaeManager persona consists of Vaults closest to network addressable elements such as data chunks. The initial release of SAFE will focus on implementing the persona type DataManager to take on the task of enforcing data storage reliability with future plans for ComputeManager persona type for reliably computing data. DataManager is further subcategorised into functions managing immutable data and structured data. ImmutableDataManager are a group of Vaults closest to the ID of an immutable chunk of data and manages GET rewards (safecoin farming) for successful ManagedNode responses and the relocation of data when one of these goes offline. Immutable data chunks are encrypted pieces of user uploaded files with IDs derived from the data chunk itself. A file is only able to be reassembled by users with access to the specific data map, more commonly known as a symmetric key file. StructuredDataManager is closest to the ID of structured data which are small, mutable data files owned by users on the network such as DNS entries, safecoin and data maps for immutable file reassembly. In addition to managing GET rewards for ManagedNodes storing the file and relocation responsibilities, StructuredDataManager will also acknowledge updates initiated by owners of the data (such reassigning ownership to another user).


Like Clients, ManagedNodes have limited control in the authority functions they take on as individual Vaults. They only have control over data which they store and responses to requests for that data. Since all uploaded data is stored redundantly over at least a few ManagedNodes they are never in total control of any data piece. All Vaults in the network may store data and will take on this limited ManagedNode authority over a piece of data when assigned to the DataManager group surrounding that data ID. This means all DataManagers will also be ManagedNodes storing that data. The role a Vault takes on as a ManagedNode storing (or eventually computing) a piece of data is directly dependent on its role as a DataManager group member for that data, but the two authorities are nonetheless distinct.

The illustration below shows relationships of a Client (n) and the closest online Vaults which make up their ClientManager (n+2, n+5, n+7, n-8), a data chunk (m) and the closest online Vaults which make up its DataManager (m-1, m-2, m-3, m+7) and those DataManager Vaults acting also as ManagedNodes storing m.


Mapping Network Actions

With these various roles and authorities in mind, let’s explore some actions which can give a more complete view of how the network functions. For simplicity, we’ll use the same groups as the previous illustration for all examples. Each action within the network originates from one of the four authorities. Client initiates actions for storing new data or modifying and reading existing data they have access to while DataManager authority initiates restoring a piece of data when a ManagedNode becomes unresponsive. A ManagedNode will never initiate an action and only acts in authority to requests for data. Every action additionally involves cryptographic verification of authorities involved at each step.


When a logged in user uploads a new piece of data to the SAFE Network, a series of authorities come into play for securely and privately storing it. If a Client is putting a standard file type (such as a document or image) onto the network, it will first locally self-encrypt the data into chunks while creating a data map (symmetric key) and upload each data piece to be stored and managed within its own location on the DHT. As mentioned, these immutable data chunks have unique IDs derived from the contents of the encrypted chunk itself while the decryption key, or data map, is uploaded with its own unique ID within a structured data file. The self-encrypt video linked above illustrates how the data map is both a decryption key and list of data chunk IDs which double as pointers for locating them in the network. The authorities involved in uploading a single piece of data (whether immutable or structured) are as follows:


The Client sends a signed message via bootstrap relay node with the data chunk to its own ID which is picked up by the MaidManager close group in that part of the network. After checking the authority comes from the Client, a quorum of Vaults within this group must confirm the storage allowance for the Client before deducting an amount then sending the data and a message signed by the group to the location in the network where the ID for that data exists. In the case that the data already exists, no allowance is deducted and the Client is instead given access to existing data. If it does not exist, the message from the MaidManager is picked up by the closest group of Vaults to the data ID as a new DataManager, which checks the authority coming from the MaidManager persona. DataManager Vaults then initiate storage on each Vault in the group as individual ManagedNodes. Each ManagedNode sends a success response (or fail in the case of insufficient resources) back to data ID which is again picked up by the DataManager and forwarded back to the Client ID which is in turn picked up by the ClientManager and forwarded back to the Client.


The action of reading a piece of data which a user has access to is a simpler process as there is no need for MaidManager consensus. Clients can send messages directly to ManagedNodes so long as they know the ID for the data which they store locally. In fact, there is no direct consensus needed to retrieve a data piece however in order to reward the data holder with proof of resource, DataManagers confirm successful response of data.


The Client sends a message to the ID for the data they are looking for which is picked up by the closest ManagedNode among the DataManager group and responds with the data itself. If there is a problem obtaining the data from this Vault, a short timeout will trigger the second closest ManagedNode to instead respond with the data and so on. The DataManager group confirms response by the Vault and sends a reward message with a newly created structured data representing a unique safecoin to the public address of that particular node. A future post will go more in depth into safecoin creation, handling and cost metrics.

Relocate Stored Data

When the network churns and ManagedNodes holding data go offline, it is only natural that the network assigns data storage responsibilities to another node for preserving data retrievability. This is a network critical action and is one of the few instances of actions being initiated by a persona rather than a Client. The absence of a missing ManagedNode will be detected quickly as periodic heartbeat messages are sent between all connected nodes.


A ManagedNode storing a particular piece of data that is unresponsive to a connected node will have its closest Vaults alerted. Once confirmed by the DataManager maintaining that data chunk, they choose the next closest Vault to the data ID to become a new ManagedNode and member of the DataManager group. The newly chosen ManagedNode sends a success response to the rest of the close group which is then confirmed.

Close Group Strategy

Decentralized data reliability is an important feature of systems which remove dependence on central parties. Furthermore, such systems which aim to preserve privacy for users must also consider their methods used for consensus and understand the trade-offs. Bitcoin’s global consensus around a single public ledger helps guarantee network and transaction status but lacks in scalability and privacy. By segregating vault responsibilities in SAFE based on XOR closeness, the network is able to achieve reliable data and network status maintenance without the need to reveal any information globally. The potential for attacks on consensus mechanisms also varies with their implementations. While no system can claim absolute security, sufficient measures can be put in place to reduce potential by increasing the difficulty and necessary resources for staging such an attack. In SAFE, for example, a series of close group consensus in a PUT forces attackers to control a quorum in multiple close groups. Additionally, network churn in such a large address space facilitates the constant distribution of new IDs makes Sybil attacks more difficult to attain as nodes are constantly showing up in random parts of the network. Node ranking can also be used in close groups to detect disagreements in consensus and downgrade or push out unagreeable nodes.

With the previous introduction of XOR properties in DHTs and overview of their use for close group consensus within SAFE, we hope we have provided a better general understanding of data reliability in the network. This authority process is used for every action on the network including managing safecoin ownership and transfer. Expect future posts which dive into details of attacks on close group consensus (and mitigations), data types in SAFE, and safecoin functionality including the built-in reward system for data holders, applications and public content. In the meantime, questions or discussion about the consensus approach are welcome in our community forum.


1This proxy also serves as the initial bootstrap node for introducing nodes back into the network whether a Client or Vault. All nodes start out as a client and negotiate connections to their future peers via their proxy node. The bootstrap node has no relationship to the Client or Vault (in terms of closeness) and is randomly chosen from a list of hardcoded nodes in a bootstrap config file, taken from a cache of previously used bootstrap nodes or through a service discovery mechanism such as a vault already connected to SAFE on the same local area network (LAN).

Further resources:

The Language of the Network (2014)

Autonomous Network whitepaper (2010)

‘Peer to Peer’ Public Key Infrastructure whitepaper (2010)

MaidSafe Distributed Hash Table whitepaper (2010)

MaidSafe Distributed File System whitepaper (2010)

Structuring Networks with XOR

A prerequisite to understanding the SAFE Network on a technical level, including the consensus process, requires knowledge of the underlying structure which powers it as a decentralized, autonomous system. Peer-to-peer networks can be categorised into two general types: structured and unstructured. In unstructured networks, there is no explicit organization of nodes and the process of joining and forming connections to others is random. In structured networks, like those which use a distributed hash table (DHT) such as Bittorrent or the SAFE Network, the overlay protocol includes a structure for organizing the network and makes purposeful connections to specific nodes more efficient.

One of the most widely adopted DHT’s, named Kademlia, was originally popularised through its implementation in Bittorrent’s Mainline DHT which removed dependence on central trackers for finding the locations of nodes and data stored on the network. Kademlia employs a rather simple operation called “exclusive or” (XOR) to establish a mathematical relationship between node identifiers. While SAFE uses a modified version of Kademlia, the XOR operation is consistent across implementations and understanding this equation will give insight to all networks based from Kademlia.

Comparing Bits

To best understand how XOR facilitates a structured, p2p network, let’s start from the very basics of the operation which at its foundation, compares two inputs and then outputs their difference. The input numbers used are binary, meaning they are made of only 0’s and 1’s. The mathematical symbol for a XOR operation is ⊕.

To show the simplicity of calculating the XOR output of two binary numbers, let’s first look at an example with fairly large numbers as inputs:

Input A: 11001010011010100100010101011110
Input B: 01001000101110011010011111000101

Now, to find the XOR output, simply compare the bits (a bit is a single digit in a binary number) individually and in order. Where the bits are the same, place a zero (0) and where the bits differ, place a one (1).

The table below shows the calculation of the 32-bit inputs we chose where input A is the first row in yellow, input B the second row in blue and the XOR output last in green.

1 1 0 0 1 0 1 0 0 1 1 0 1 0 1 0 0 1 0 0 0 1 0 1 0 1 0 1 1 1 1 0
0 1 0 0 1 0 0 0 1 0 1 1 1 0 0 1 1 0 1 0 0 1 1 1 1 1 0 0 0 1 0 1
1 0 0 0 0 0 1 0 1 1 0 1 0 0 1 1 1 1 1 0 0 0 1 0 1 0 0 1 1 0 1 1


Since the first bit in input A is 1 and the first bit in input B is 0, the XOR output for that digit is 1. Meanwhile, the second bit in both numbers is 1 so the XOR output for that digit is 0 and the third bit in each number is 0 so the XOR output for that digit is also 0. By comparing each digit down the line as the same or different, we arrive at an XOR output of 10000010110100111110001010011011. The decimal conversion of that value is 2194924187 which is not such a straightforward calculation, however, it can be helpful to know how the pattern of binary counting works:

And so on...

Properties of XOR

Now, to get a grasp on the usefulness of XOR calculations, let’s take a step back and focus on 1-bit numbers as our inputs.

XOR operations on 1-bit numbers (0, 1)
Input A Input B Output C Operation A⊕B==C
0 0 0 0⊕0==0
0 1 1 0⊕1==1
1 0 1 1⊕0==1
1 1 0 1⊕1==0


Using the table above (which shows every possible combination of those values), we can see that regardless of the input values, if they are equal to each other, the output is zero. Alternatively, if input values are not equal, the output is a non-zero value (1 in the case in 1-bit values). The last characteristic we can gather from this table is that if we swap A for B then C stays the same which in mathematics is called commutative and can be expressed as:

if A ⊕ B == C therefore B ⊕ A == C

Furthermore (but a bit more difficult to tell in this simple example), if we swap A or B for C, the new output will be the value which C replaced and can be expressed as:

if A ⊕ B == C therefore C ⊕ B == A and A ⊕ C == B

We can now observe how these properties hold true with slightly larger binary values.

XOR operations on 2-bit numbers (00, 01, 10, 11)
Input A Input B Output C Operation A⊕B==C
00 01 01 00⊕01==01
00 11 11 00⊕11==11
01 01 00 01⊕01==00
01 10 11 01⊕10==11
10 11 01 10⊕11==01
11 01 10 11⊕01==10
11 11 00 11⊕11==00


Using the table above (which only shows a sample of possible combinations) we can still see that equal inputs give an output of zero (00), unequal inputs give a non-zero output and the property where swapping any of A, B or C for each other in the operation holds valid (highlighted in coloured rows). As the binary numbers grow larger, these characteristics of XOR operations will continue to hold. Additionally, we can deduce that the XOR output of two values (also called XOR distance) A and B will always be unique for those inputs. In other words, there is only one value B at a given distance C from given value A which can be expressed as

if A ⊕ B == C then never A ⊕ B == D and never A ⊕ D == C

XOR Relationships in Networks

With basic understanding of XOR characteristics, let’s now explore how it maps onto a peer-to-peer network using binary tree graphs.


The two graphs above illustrate the simple tables we used to explain XOR properties with the left side being a 1-bit network (two nodes) and the right side, a 2-bit network (four nodes). Within each graph, a step to the left at a vertex point adds a zero (0) bit to the end of the number and a step to the right adds a one (1).


For better understanding of these properties in larger networks, the graph above shows a 5-bit XOR network consisting of 32 nodes (00000 to 11111 in binary, 0-31 in decimal) and follows the same vertex stepping rule. The two blue coloured nodes, 12 (01100) and 15 (01111), have an XOR distance of 00011 (3 in decimal) while the two orange nodes 16 (10000) and 31 (11111) have an XOR distance of 01111 (15). However, even though the blue node 15 and the orange node 16 are next to each other in the line, their XOR distance is even larger at 11111 (31) and shows that XOR distance does not follow the same distance assumptions as we are used to. Since every node has a unique distance to every other node in the network, it becomes quite simple to reliably relate them to each other using this property and therefore finding nodes that are closest to each other is straightforward by doing an XOR calculation on a node ID and the smallest distances (think back on the property of swapping values in XOR calculations).

Say we want to find the closest 4 values to the input value of 01010 (10) then we can XOR the input value with the 4 closest non-zero distances 00001 (1), 00010 (2), 00011 (3) and 00100 (4).

Inputs 01010
Output (11) 01011 (8) 01000 (9) 01001 (14) 01110


Now, if we take one of those closest values, say, 01110 (14) and again find the closest 4 non-zero values to it, we get a unique set of outputs.

Inputs 01110
Output (15) 01111 (12) 01100 (13) 01101 (10) 01010


Since the XOR distance between a particular value and every other value is unique, the closest value set will also be unique. With that in mind, imagine a network using XOR calculations to relate node IDs where each node establishes connections with and stores data about their closest nodes. By communicating with the group of nodes closest and asking what each of their closest nodes are, any single node can eventually locate any other node in the network creating a distributed database.

Decentralization Requirements

It is extremely important in XOR networks that each node has a unique ID. In decentralized networks where there is no central party to issue and enforce unique IDs, this task requires a large enough ID range (ie. with 128-bit or 256-bit numbers) to reduce chance of overlap and a secure hashing algorithm to prevent predetermination of a node’s ID and therefore a node’s placement in the network. Due to the necessarily high ID space and random placement, decentralized networks will not have nodes occupying every value in the ID range and therefore, the closest nodes are most likely not going to be one of the closest 3 nodes like the example above. Regardless of what the actual closest nodes are, however, the relationships between them allows for each node to maintain a narrow perspective of the network and use their established connections for scoping beyond that when needed. This type of relay network makes it easier to discover data and route messages in a targeted but decentralized manner.

This concept is the foundation for Kademlia-based distributed hash tables (understand the name better, now?), including those used in Bittorrent and SAFE. In Bittorrent, this discovery pattern allows nodes to discover which other nodes are storing a particular file. In SAFE, the data on the network is identified with IDs in the same range as nodes so that the data itself can be mathematically related to nodes for storage purposes in the same way nodes are related to each other. XOR closeness is the basis for the SAFE Network’s consensus processes to ensure data reliability and security. This will be covered in more detail in a future post now that we have established an understanding of XOR properties in structured, p2p networks.

Theories on Incentives, Scaling & An Evolved Economy Pt 3

So far this series has explored how our increasingly digital world is both affecting and being affected by the progressingly global economy. Though this exploration, we can discover more scalable and sustainable foundations for building tools which better integrate these systems and help us in communicating these tools and their purpose for wider adoption. The history of money and trade can show us some possible outcomes of scaling economic systems and the influx of intellectual property on the Internet has stressed the need for progress. Thankfully, more recent experiments and innovations have provided stepping stones towards increasingly sustainable global economic models. Looking at the structures and incentives from various networks and analysing their effects has paved a path for the improvements built into the foundations of the SAFE Network and continuing to push these boundaries through SAFE and other projects will allow for more realistic and sustainable rewards for the labor behind intellectual property and subsequently the global economy.  (Disclaimer: Some references in this post assume having read the content from the first two parts of this series.)

Pushing the Boundaries and Building the Bridges

So it’s clear that scaling a system globally without spiraling downward into a cycle of centralization leading to control, power and increasing self interest is a really difficult task. One of the reasons I’m optimistic about the SAFE Network is the approach to reach a global scale by mimicking how nature scales itself while still attempting to work within the existing economy as an evolutionary step. Many global systems are already headed in the right direction by thinking about maintaining autonomy such that not any one party has control. Bitcoin, Bittorrent and Tor are all examples of systems which strive for autonomy through decentralisation as a form of security. With regards to economics, both Tor and Bittorrent networks are run purely on a volunteer basis and do not depend on a currency or credits within their systems. Users are incentivised to provide resources as nodes with the expectation that they receive value in return by others who also participate in the network, very similar to the previously explored gift economy model. Though, in bittorrent each node is additionally shown an upload to download ratio which allows users to gauge how many peer nodes have accessed content from them versus how much they’ve accessed from others. The visibility of this ratio offers a slight psychological effect on increasing incentives for nodes to stay connected and to continue providing their resources to the network, but show similar vulnerabilities in scaling globally as gift economies. Even without an explicitly integrated credit or currency, Tor and Bittorrent have found success in pushing the boundaries of our online economy to evolve away from business models based on tracking and forcing scarcity on content, a critical part in this evolution.

Alternatively, Bitcoin builds a bridge for the online economy as a currency which facilitates value transfer and storage outside of centralised third-parties. Unfortunately, the distribution of Bitcoin has driven the network to become more and more centralised in part by the force of economies of scale. The main benefit that Tor and Bittorrent gain from a lack of currency incentives is avoiding tendency towards centralisation based on participants attraction to accelerating wealth. The common and open ownership designs of each of these systems allow them to initially scale as global networks while the variance in incentive structures  provides models for sustaining their structures. Maintaining its diverse peer-to-peer structure is Bitcoin’s key separation from any other global payment network and whether it ultimately succeeds or fails, it is more clear that implementation of currency-based incentives brings different kinds of scaling problems to decentralised systems. Regardless, each of these networks provide a stepping stone towards future designs which can more desirably bridge this gap, and in particular the foundations we’re building in SAFE.

A Foundation for Ideas, Art and Code within An Evolved Economy

The SAFE Network is designed to both push the boundaries of IP ownership and tracking while still integrating a bridge to the current economy. The network is built on a foundation of anonymous and autonomous management of data storage, routing and integrity. It allows for any data such as a network token to be stored, transferred and confirmed in “localised” closed groups of nodes which access the minimal amount of data to do their jobs. When peers go offline or come online, the network reconfigures based on their positions in the ID space of the DHT. The network nodes are assigned IDs and thus position in a group at random to avoid predetermination of roles assigned to it. If the node successfully stores data and supplies it when requested, the “farming” incentive scheme will award it with a network created and managed token. It’s important to note that this incentive distribution allows for much more granular measurements of resource capability than block rewards in bitcoin and other blockchain cryptocurrencies. This more dispersed distribution scheme was designed to  prevent some of the natural centralization that is occurring with Bitcoin. With further understanding that economies of scale are still a strong force in our economy, SAFE additionally employs a sigmoid distribution rate which rewards network average resource supplies in order that nodes with drastically more resources don’t centralize storage of content. With this focus on granular incentives and rewarding average network resources in token distribution, we can improve on the system’s ability to integrate with the global economy while avoiding some of the key centralisation effects of economies of scale.

Further, the network is prepared to include incentives for application developers, core developers and content creators. By allowing individuals to opt into embedding payment addresses into applications and content, the establishment of a “creator” can be made for a baseline revenue in tokens from the same pool which rewards resource providers. It is the belief that these participants in the network bring value to the ecosystem and should be included in the distribution structure. The inclusion of diverse incentives are important experiments in finding the ideal bridge to a better economic model for developers, journalists, artist and researchers sharing their intellectual property.

To complete the basic ecosystem in SAFE, there is a replenishing method for the pool of safecoin which is distributed to these key participants. Payments back into this pool are linked to storing new data to the network. At its best, this recycling mechanism can allow for a perpetual supply of safecoin for these incentives and at the very least provide a way to extend the ability to autonomously pay members of the ecosystem. The token requirement from users uploading new content will help to prevent abuse by parties storing significant amounts of content who are not giving back by providing network resources themselves. This concept of balancing out consumption to providing a service is similar in theory to the ratio displayed in bittorrent clients but is enforced by the network through the token mechanism. So long as the network incentives align properly, the SAFE Network economy will establish a very basic common credit system that though it’s autonomous nature, should scale to support public intellectual property and offer alternatives to privatising software and content through physical or legal restrictions.

Extending the Foundation

The SAFE Network will not only integrate a basic infrastructure for sustaining a global economy but also relies on experimentation on top of it. While it would be great if SAFE could sustain itself with this economic foundation, we cannot assume that it will be enough. The essence of experimentation is an important factor to evolving systems (as nature shows us) but the historical control and extreme centralization of the economy has hampered these processes until very recently. New schemes being tested on today’s Internet will find a comfortable and more suitable home on top of SAFE’s economic foundation. Expect to see business models like pay-what-you-want and crowdfunding take on whole new capabilities with the support of safecoin and the autonomous, cryptographically secured network. Additionally granular approaches to digital consumption are ripe for better integration into the economy as well as methods for working with existing private intellectual property whose use may contain certain licensing restrictions. In particular, I envision methods similar to git’s distributed revisioning, but with integrated payments options adapted to include content like research and art. So much intellectual property is based on previous discoveries, thoughts or works and integrating that flow into a functional platform would be a worthwhile experiment to extend the SAFE economy into a more scalable network that sustains itself and supports inherent scarceless characteristics of intellectual property.

The impact of intellectual property is no doubt expediting our way to an economical evolution, but there’s still a long way to go before we can stop forcing digital content and general intellectual property to be artificially scarce as a solution for supporting the labor went in creating and maintaining it. By learning lessons from how our current economy has adapted to scaling (whether successful or not), it will be much easier to build experiments which fit the world of intellectual property and successfully support that labor in a global manner. Creating the proper incentives to allow for more free software development and open access to knowledge through implementing new solutions is the quickest way to build a more sustainable economy and show others the value in publicly owned, decentralized networks.

Theories on Incentives, Scaling & An Evolved Economy Pt 2

In the previous post of this series, I described ways in which human monetary systems have typically tended to scale and how it compares to the history of the Internet. Both systems are functioning with models which have incentives to centralise at scale which introduce vulnerabilities as dependence on the central points grow. Next, I want to extend this exploration to the exchange and ownership of property on the Internet and scaling intellectual property systems. Reviewing contrasts and similarities in physical property and intellectual property can help to shed light on the challenges we face in managing those systems as they grow – online and off. (Disclaimer: Some references in this post assume having read the content from the first part.)

Properties of Property: Personal, Private and Public

Having explored historical implementations of economies and their breakdown points at scale, we will find similarities to systems dealing with ownership of property. While cultures around the world have different perspectives on property, there are three basic categories in which to categorise ownership: personal, private and public.

Personal property are belongings actively used by an individual such as a toothbrush, a homemade apple pie or a wrist watch. Public or common property are objects or land openly used or consumed by any member within a community such as a common walking path or a common garden maintained by some or all of it’s members. Finally, private property is ownership usually in the form of real estate but can be seen more broadly as relatively unused property owned by a person or group as well as any property requiring significant external security (usually provided by state-based registration/titles). Examples of private property are banks, rental apartments and summer sailing boats. The lines between these categories can blur at times but I will not address those cases for the purpose of simplicity.

Abundance within Meatspace Economies

The distinction between private and public ownership models and their respective abilities to scale are important aspects in economies to explore. For example, a community where food and the labor to sustain the growth of food is abundant (perhaps out of love for gardening), the food itself is not very useful as an exchange of value as it is produced without distinct demand market forces. If one of these gardeners offers four apples to a blacksmith in exchange for a specific gardening tool, by normal market standards the trade doesn’t make sense since the produce is in abundance already and further will rot if not consumed. However, it would make sense for the blacksmith to view the gardener’s labor as an important value to the community and to support them by simply giving them the tool and continuing to eat the produce at their leisure. The two versions of this exchange may sound equivalent but the incentives and transactions have quite different characteristics as the system grows.

Scaling Public Gardens

The preferred type of trade in the above scenario of abundance, also referred to as a gift economy, can be related to the concept of tracking Rai stone ownership (which we explored in the previous post) in that it can sustain itself as the scale stays small but beyond that, a garden maintainer might realise the relationships with those consuming the produce have become less beneficial and thus are no longer able to depend on the precedent of established community connections to depend on gifts from others. At a larger scale, it makes sense for these producers to prefer working privately because the abundance is reduced when growing for more individuals while putting a price on the produce helps to guarantee their labor has a similar or greater rate of return and isn’t likely to be taken advantage of. This price can come in the form of credits (by tracking the number of fruits and vegetables individuals receive) or as a relative price to a more fluid value of exchange such as currencies. However, even when a privately exhibits improvements in ability to scale compared to commonly managed garden, it is not void of the further vulnerabilities brought on by economies of scale. Reducing the cost of input for a growing output is a natural tendency for business which at a certain threshold leads into a rather self destructive cycle of incentives towards more centralised control.

Properties of Intangible Property

Now that we’ve established a perspective on basic concepts in meatspace property, we can map them fairly accurately to intellectual property for a better understanding of the technology industry’s challenge to scale labor that goes behind open source development and public content. Intellectual property (IP) can also be categorised between personal, private and public. Personal IP are any ideas or data that we would keep to ourselves so only ourselves (and perhaps a very few others) could have access such as health records and personal thoughts. Public IP in contrast are ideas and information that are shared free and openly for anyone to access and use like weather reports, certain online academic journals and content within the public domain. Finally, intellectual property considered private would be data controlled for restricted use such as restricted software code or online publishing which require payment to view contents. To further sub categorise private intellectual property one can consider both those protected by avoiding physical reproduction such as DRM (Digital Rights Management) and those protected by legal security such as copyright and even free software licenses. While licenses like GPL and MIT promote open standards, the fact that there’s a restriction of use introduces aspects of private, owner controlled controlled IP. Not to say this is a wrong method, (I heavily stand by MaidSafe’s decision to release code as GPLv3) but in the context of these definitions and for the next part in this series, I think it’s important to keep this in mind.

Scaling Public Idea Gardens

So, with these distinctions there’s obviously a vast amount of private IP out there of all shapes and sizes as our society reacts to the globalisation of ideas. Patents and copyright systems have been put to use for several hundreds of years mostly aiming to resolve the labor that goes into creations with inherent lack of scarcity like blueprints to inventions and writings and generally give an economic advantage to the creator. Unfortunately, this sort of solution essentially puts a price on access to a piece of intellectual property and privatises ownership similar to the “once localised and looking to scale” community gardens but even more drastic. The physical limit for the abundance of intellectual property to be overcome is comparatively miniscule and shrinking further thanks to improving storage capabilities of computers. So like the some members of a community may be inclined to tend a community garden, others might selfishly enjoy creating intellectual property such as inventors and designers but as soon as their labor is easily taken for granted, the economical balance is disrupted. We should be able to support production of intellectual property at a small scale but the globalisation of communications and knowledge over the past several centuries has made that not practical.

Code and Content as Assets

Many activists involved in resisting DRM, copyright and patents often evangelise that private IP conflicts with long-term progress and inhibits essential freedoms. Finding economical answers to better serve production of intellectual property so more people are incentivised to choose sharing ideas publicly rather than keep them privately protected is certainly a difficult task and most likely will not be resolved via a single solution. Most mainstream research journals see the IP they publish as assets to protect in order to sustain their business and thus make the access artificially scarce by marking it with a price. Many VCs who fund software development similarly see the code produced by developers as a significant asset which protects against competition implementations. In some cases, there can be agreements between corporate competitors to build public solutions for standardising purposes but this is not a reliable solution and has potential to lead to bad implementations of those standards that many others must begin to rely upon. To integrate intellectual property into our economy properly, we must work to evolve the economic system itself rather than force ideas to take on characteristics which make them artificially scarce.

In the final post of this series, I will overview solutions which have pushed the boundaries of how we deal with money and intellectual property and more specifically, what SAFE brings into the mix. Scaling is the main factor in the breakdown that we see in many systems from currency and property to the Internet itself so focusing our sights on this problem is essential. While MaidSafe is working on a single solution to address these issues via an evolved Internet, the previous experimentation and future supplementary projects from other parties will be necessary to grow a real foundation for a global economy and digital society.

Theories on Incentives, Scaling & An Evolved Economy Pt. 1

After meeting lots of great people and learning more about interesting free and open source (FOSS) software projects at LibrePlanet last year, I had the pleasure of attending and speaking at the conference again this year. The Free Software Foundation has been hosting these events since 2009 where foundation members (and non-members) gather to discuss technology, legal concepts and the general philosophies relating to free and open source software (and hardware). It was also my second opportunity to see Edward Snowden give a remote keynote which in both cases clearly fill the room with excitement and renewed energy to defeat the insecurities and threats towards human rights brought on by mass surveillance and censorship.

Last year at the conference, I gave an overview of the SAFE Network and hosted a booth in anticipation of introducing people to the network while this year, I focused on the economics, incentives and distribution specifically regarding free software and digital content. I’ll expand on the thoughts presented there in a short series of blog posts here. In particular, economies of scale play a significant role in how our businesses and organisations have evolved to serve a global society. This centralisation of resources has enabled significant scaling properties which allows for conserving input cost while maintaining output growth. While this blog has featured many thoughts regarding the interesting economical aspects of building a new Internet from the infrastructure-based incentives to the inherent difference in consumption of physical products to digital products, there is more to explore in those thoughts if we want to consider and implement the best solutions. Explaining these concepts to free software enthusiasts was an invigorating experience for me and I hope that MaidSafe can continue to be an positive influence on this topic in this community. Sometimes it’s very difficult to see a future where money and value exchange systems work for the people instead of becoming monopolised and serving the special interests of those in power but by taking a step back, we can begin to see how current incentives promote centralisation and what new ways we can understand the nature of human economics and our perceptions on property and ownership to build tools for an evolved system.

Rai Stones & the Dynamics of Accountability and Distance

The Internet and monetary systems have very similar histories in terms of tendency towards centralisation in their reach for globalisation. If you weren’t aware already, the insecure and controlling effects of the server-based Internet are the main factors for the SAFE network’s design and development. However, understanding the history of economies throughout various cultures and their diverse solutions to issues around the transfer of property, ownership of services and general value management in addition to their common incentive characteristics are also key factors in building this evolved Internet particularly when it comes to scaling. In small communities and tribes where individuals have established relationships with everyone they interact with, it is relatively simple to sustain an economy and the trade of property and maintenance of common services. On the Island of Yak, for example, the inhabitants famously used Rai stones (massive, stationary representations of value used as a local currency) where members of the community simply kept track of their ownership when exchanges happened. This sort of system can work well within a small scale such that remembering ownership is not a problem, but as soon as this community is expanded past ability for individuals to keep track of exchanges, the Rai system will inevitably fall apart or centralise such that the responsibility becomes more efficiently handled by trusted third parties. Alternatively, the widespread adoption of gold and silver coins can be attributed to its ability to scale further. Instead of remembering ownership of immovable rocks, individuals can physically trade more granular representations of value and that value is more easily kept private. However, you can imagine that this anonymity feature in gold brings along problems of counterfeiting especially as the distance of trade grows and trust between the parties in an exchange is lost. So even with increased scaling characteristics in physically traded tokens, establishment of community banks around ownership, security and purity of gold would eventually inserted themselves as efficient third-party solutions.

The Downward Spiral in the Nature of Scaling

Now this per community centralisation is perhaps not the worst form to take, especially if members of the community are able to hold this third-party accountable and prevent those running the services from becoming self interested. With any service meant for community consumption such as policing and public security where individuals are granted special responsibilities involving trust, we see a breakdown in the system if it is not kept 100% accountable. This accountability requires active community participation itself and itself has a stability threshold. If a community bank is depended on by too many people, the responsibilities of those managing the bank start to become more abstract as the relationships with their members is spread out and ultimately lost. It is not to say that a community bank managed by a group of well intentioned and well organised individuals cannot sustain itself to scale, but this is not the norm and we should not assume this can be standard. Any altruist, scalable bank must take on additional responsibility of preventing malevolent actors from infiltrating as those who crave power for power’s sake typically have more incentive to obtain those positions of control.

This problem is in fact quite similar to the centralisation of the Internet in many ways and we can see this tendency towards third-party responsibility with solutions for security, identity, storage and many other services. The quick rate of change in the Internet’s evolution (mostly due to it’s historically open and free nature) allows ideas, experiments and development to iterate quickly and find better solutions. On the other hand, we are just now seeing some substantial research and testing for better global economic solutions (mostly due to it’s historically closed and controlled nature) such as cryptocurrencies which in large part is driven by the open and free nature of the Internet

These parallels between systems in how they scale within human society is not to be overlooked. In fact, if you were to explore systems based on other biological organisms in nature, you might find similar thresholds and patterns in scaling. Nature is rarely ever successful at widespread scaling, but in some systems, there are interesting properties with resilience and long-term efficiencies which may also develop in human-based networks and technologies. As you may know, Argentine ants have an interesting scaling that the SAFE network is in part inspired by in our mission for a sustainable, resilient, decentralized Internet. However, there are further considerations related to properly scaling the Internet which I will explore in the next part of this series.  The ownership of property and how it compares to intellectual property is a key element especially as we dive deeper towards the relevance to free software and digital content.

Glocalization of Internet Freedom

For the first week of March several hundred internet freedom activists from all around the world gathered for the Internet Freedom Festival in the Las Naves collaborative space in Valencia, Spain for a wide variety of sessions addressing tools, policies and perspectives within privacy and security on the Internet. Trainers, developers, journalists, technologists and those simply curious to learn from 76 countries traded perspectives and skills while forming bonds to continue collaboration post-festival and strengthen support for each others work. Previously named the “Circumvention Tech Festival”, the event organizers placed a strong emphasis on creating a safe space for open collaboration without compromising privacy and identity for those attending at the risk of local oppressive governments learning of certain individual’s attendance. A strict no photography rule was set in place in addition to the Chatham House rule (not referring to identities in referencing quotes or points individuals made) for note taking and general future discussion of the topics presented. Attention was also put on meeting other attendees through prioritizing sessions with discussion and collaborative activities. Session topics ranged from threat modeling through holistic risk analysis to community networks and the process of flashing routers to build a mesh. The entire festival offered a beating pulse of local perspectives on digital privacy and security while simultaneously highlighting the need for global collaboration in regards to building tools, advocating policy and strengthening communications within this community and beyond.

The concept of “glocalization” which permeated throughout the event was perfectly introduced to me in the first session that I attended at the festival; Glocalization for Noobs: How to Design Tools for a Global Audience where panelists discussed and advocated for integrating the process of translation more tightly into software development. They discussed the translation of software going beyond localizing text and taking into consideration the entire user experience from perspectives of various regions. While many products are marketed towards specific areas, most software is used globally, or at the least have potential for wider adoption and would benefit from the review of testers in various locales. Importance on focusing attention on region specific points of view continued throughout the event where a handful of meetups dedicated time to discussing the state of Internet security and surveillance in Latin America, Africa and the Middle East. Sessions also incorporated this focus recognizing and addressing the particular hurdles of regions. The session Network disconnections: Effects on Civil and Trade Rights included a short presentation on the regular disruptions in internet access people in Pakistan face and subsequent research followed by a general discussion about the broader topic of region-wide disruptions usually due to political pressure and what policy and economic arguments can be made in opposition. Other sessions focused on the general sense of considering global communities and allowing respective perspectives to be shared together. Privacy Across Cultures was dedicated to a discussion on what the impact of privacy and its absence has meant in various cultures beyond freedom of expression and focusing on more long term effects.

Beyond the diverse cultural representation at the event, there was also a wide array of representatives from tools, new and old. In one workshop session titled Deploy an emergency Libre-Mesh network with local services, we formed in small groups and flashed routers with libre-mesh to form a p2p network. It was one of the fastest and most simple efforts of flashing a router to build a mesh network that I’ve ever experienced – it took about 30 minutes total for all 7 groups (with a range of familiarity of flashing routers) to connect with each other. If mesh networks are something of interest to you or your community, I highly recommend checking out libre-mesh. Additionally, one of the evening’s featured a tool showcase of 15 technologies ranging from a service called Stingwatch for detecting and reporting locations of Stingrays (fake cellphone towers used by authorities for tracking individuals) to the more well known Freedombox (security and privacy focused software for personal servers). Unfortunately, I was not privy to this portion of the event beforehand and not aware of the status of the MVP launch, else I would have loved to participate and demo the SAFE network to the crowd. Alas, I was able to do so in a more intimate setting for a session of it’s own. Having attended the festival with the intention of presenting a more general session on improving communications on network topologies and ownership infrastructures (based on previous explorations of the topic), I was able to join several dozen others who created “self-organized” sessions which were added in the schedule as the week progressed. This session was much less interactive other than various questions from participants but because we have software to show now, I was able to finish the presentation with a successful demo of the SAFE Launcher and example app to a crowd for the first time!

Overall, the Internet Freedom Festival was a huge success from a personal perspective by highlighting a variety of topics from technology to communications and diversity. To achieve true internet freedom worldwide, we must consider localized efforts and understand that needs vary from region to region by listening rather than assuming. Digital security training has expanded throughout the world and understanding the array of obstacles that regions face will help us build better software. I feel confident that the SAFE network will be a strong example of building a diverse, global community (as we see it happening already) but also appreciate the strong reminder that this will happen much more efficiently if we put effort towards diversifying our perspective. While the MaidSafe core team has a regionally diverse team itself, community-based development and translation efforts will continue be essential if we want to make SAFE a truly global network. I really look forward to attending Internet Freedom Festival again next year with a proper SAFE network up and running while expanding my understanding even more to make the network accessible to more people (and hopefully capture a few other team members to attend as well).

Evolving Terminology Pt. 2: Topology vs Ownership

In the previous post in this series, I highlighted some standards that I think could help communicate the variances in networks. I had some great feedback from several individuals which pushed me to explore the roles of network administration and effect on control a bit deeper. Networks like Skype (before switching to client-server in 2014) and Spotify have structures that are peer-to-peer (p2p) topographically but also include a central entity for system critical components like registration and peer discovery. Since this sort of set-up is widely considered p2p and technically falls under our definition of distributed (passes messages directly between clients) but does not hold up to the requirements of decentralized due to the centralized administration points, how can we fit this network type into our terminology standards? What effect does this administration role in an otherwise p2p network have?

The Hidden Hand That Feeds

Hybrid or Pure

To better communicate the difference between p2p networks with central registration and closed access (Skype, Spotify) and those with decentralized registration or no registration and open access (SAFE Network, Bitcoin, BitTorrent), a great resource to consider is A Definition of Peer-to-Peer Networking for the Classification of Peer-to-Peer Architectures and Applications (pdf) by Rüdiger Schollmeier published in 2002. And while I made an indication in the last write-up that frequent revisiting of terms is necessary for such evolving technology, this is a case where the standards defined have stayed consistent with modern use cases and incorporating them into our language adds value. In this paper, Schollmeier defines p2p networks with administration roles or where “a central entity is necessary to provide parts of the offered network services” as hybrid peer-to-peer networks. Contrarily, he defines pure peer-to-peer networks as those where any “…entity can be removed from the network without having the network suffering any loss of network service.” I quite like this wording as the hybrid and pure descriptors make the distinctions easily understood. It’s valid here to point out the terms closed and open as analogous to hybrid and pure but in some contexts might be more useful especially when distinguishing central registration processes from those with decentralized or no registration. So while peer-to-peer is used to describe network structure, it does not paint the whole picture and using these new terms to talk more specifically about networks takes us a step beyond network topology to make clear whether hidden entities exist.

Required or Facilitating

In the Skype example, the central coordinating entity was required for registration and finding connections between peers which categorizes it as hybrid. It’s important here to note that this administration point is a requirement for proper network function and that it’s possible for pure p2p networks to use administration points for simply facilitating discovery. While not discussed in the Schollmeier paper, we can still relate to the definitions he laid out. BitTorrent trackers are central entities for finding peers faster but not “…necessary to provide parts of the offered network services”. To avoid a central discovery requirement, peer-to-peer networks often employ gossip protocols for decentralized node discovery where nodes relay information about already connected peers to facilitate new connections. In another example, the mesh networking application for sharing internet access by Open Garden should be considered a pure p2p network even with a server to facilitate finding other devices because it is not required. Here, the entity acts to provide a more seamless user experience, but in situations where a device is without Internet access or ISP networks are congested, a user can do manual pairing and bypass the admin. For the record their other app, FireChat, should be considered a hybrid and closed p2p network because of its central entity requirement for initial user registration and login even though there is a similar manual connection process if the server isn’t accessible post-registration. To avoid centrally controlled registration in a p2p network, employing blockchains is becoming a more popular solution but comes with privacy concerns if users aren’t proactive. MaidSafe has built an alternate approach removing third-parties and preserving anonymity called self-authentication for the SAFE Network. So while there are many kinds of networks which make use of p2p topology, some fall short when it comes to registration or peer discovery requirements as opposed to being independent of administration and accepting an optional, facilitating hand.


Decentralizing Administration with Multiple Hands

A final consideration of networks with p2p topologies are those with multiple administrative points rather than a single entity. While not as common, we can look at the Tor network’s use of directory authorities as an example. I should take this time to quickly mention that in the last post, I classified Tor a decentralized (but not p2p) network because it maintains a client-server infrastructure (which implies a hierarchy rather than flat structure) but nevertheless, the concept of dependence on administrative roles is carried over. Directory authorities are servers in the Tor network which create consensus around a public list of network nodes to route traffic through. This allows for properties like blacklisting IP addresses showing suspicious behavior and maintaining a complete list of Tor nodes without storing this data on each of them. If clients are blocked from accessing these authorities (ie. via the Great Firewall), they may connect through private servers called bridge relays but Tor routing nodes still need this list to access other connections to further forward the traffic. While Tor functionality depends on this directory, it is maintained by a consensus process made up of several independently run servers and thus alleviating a central administrator. Similarly, in the beginning days of the BitTorrent network (before implementing a dht-based discovery process), it required the tracker servers for discovering other peers. Categorizing these situations as pure or hybrid is therefore mostly dependent on the number and ownership of administration points: the more directory authorities owned by a diverse group of people, for example, the less the network depends on a single authority and teetering classification towards pure.

The Hand That Feeds is the Hand That Owns

The Range of De/centralization

By dissecting the role of administrative points in decentralized and p2p networks it is now clear that network topology is only one aspect that is important to consider in how we communicate networks. Requirements for entities outside of the topology illustrate how even p2p networks can have hidden ownership structures. While the collection of nodes is still a vital component in the functionality of a p2p system, the required administrative points carry more importance for network functionality and therefore, the people operating these points have proportionately more ownership than those operating network nodes. While central network ownership through an admin is not inherently bad, the consequences of this model can be detrimental and prone to censorship, surveillance or attack. This ownership model brings back vulnerabilities of centralized network topologies where all messages must go through a central point. Likewise, networks with multiple admin points show similar ownership properties as decentralized networks where there are a smaller number of backbone nodes enabling greater capabilities like longer distance connections in mesh networks or increased computing and hosting power like servers in the traditional Internet. Whether part of the topology or not, central points of dependence hold more importance in functionality of the overall network and as a result correlates to power and ownership. If there are enough of these points, it is not necessarily a problem but it is not enough to have multiple points: they must also be maintained by different people as to reduce chances of centralization or collusion.

The Range of De/centralization

The term “decentralized” in this sense should be seen as a range where the more spread out the ownership of the network is, the more decentralized the network itself is. Even when considering pure p2p networks, distribution of node ownership is critical. Networks like Tor, MaidSafe and Bitcoin lose a lot of their security properties the more a single entity owns network nodes. A common vulnerability in p2p networks happens when an entity can flood the system with nodes under their control or through the reverse where individual users discontinue operation of nodes, shrinking the spread of power. Outreach programs for Tor aim to onboard new node operators as there are fears that organizations like the NSA operate many Tor nodes in an attempt to undermine the security and monitor network traffic. This is also a strong point in the current Bitcoin blocksize debate where those against large blocksizes argue that the larger the bitcoin blockchain is, the more resources a node requires thus removing ability for some people to run them and effectively pushing it towards a less decentralized network and a greater potential for centralizing ownership. In the SAFE Network, we have implemented a more dynamic resource usage algorithm based off a sigmoid curve in hopes to diversify the ownership of the network as much as possible and greater resistance to attacks from actors owning many nodes by requiring a chain of consensus for each action.


Communicating Commonly Owned Networks

By zeroing in on some finer points of networks beyond topology such as administration roles and ownership considerations, we can continue to clarify distinctions between networks in order to understand them better. While closed networks operated and maintained by a company might gain some benefit from central administrative and ownership capabilities of hybrid p2p networks, open networks that are for the benefit of a general population should prioritise wider ownership to remove central dependences. Attacks on decentralized networks become harder and general network health increases with the more individuals that participate and take partial ownership. Unfortunately for the current Internet, corporations have taken ownership of much of the network and are in critical positions of power. By re-aligning incentive structures to spread out ownership, p2p networks like SAFE will give Internet users a second chance to rally around an alternative that offers an commonly maintained and owned infrastructure.