Smart Property - Revision history

Jbaczuk: corrected the history of the term smart property by referencing an earlier paper, matching what is on wikipedia at https://en.wikipedia.org/wiki/Smart_contract#cite_note-sc1994-2

2018-07-16T16:36:38Z

corrected the history of the term smart property by referencing an earlier paper, matching what is on wikipedia at https://en.wikipedia.org/wiki/Smart_contract#cite_note-sc1994-2

← Older revision		Revision as of 16:36, 16 July 2018
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	'''Smart property''' is property whose ownership is controlled via the Bitcoin [[block chain]], using [[Contracts\|contracts]]. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.		'''Smart property''' is property whose ownership is controlled via the Bitcoin [[block chain]], using [[Contracts\|contracts]]. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.

	Smart property was ~~first proposed~~ by [[Nick Szabo]] in ~~his 1997 paper~~, [http://szabo.best.vwh.net/~~idea~~.html "~~The idea of smart contracts~~"].		Smart property was coined by [[Nick Szabo]] in 1994, [http://www.fon.hum.uva.nl/rob/Courses/InformationInSpeech/CDROM/Literature/LOTwinterschool2006/szabo.best.vwh.net/smart.contracts.html "Smart Contracts"].
	==Background==		==Background==

JonathanCross: Linking Nick Szabo. Removing sentence: "This page was written by Mike Hearn. Contact him with any questions or ask on the forums."

2016-05-10T17:19:53Z

Linking Nick Szabo. Removing sentence: "This page was written by Mike Hearn. Contact him with any questions or ask on the forums."

← Older revision		Revision as of 17:19, 10 May 2016
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	'''Smart property''' is property whose ownership is controlled via the Bitcoin block chain, using [[Contracts\|contracts]]. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.		'''Smart property''' is property whose ownership is controlled via the Bitcoin [[block chain]], using [[Contracts\|contracts]]. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.

	Smart property was first proposed by Nick Szabo in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"]. This page was written by [mailto:mike@plan99.net Mike Hearn]. Contact him with any questions or ask on the forums.

			Smart property was first proposed by [[Nick Szabo]] in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"].
	==Background==		==Background==

Norill: i made one

2015-07-31T12:43:39Z

i made one

← Older revision		Revision as of 12:43, 31 July 2015
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	'''Smart property''' is property whose ownership is controlled via the Bitcoin block chain, using [[Contracts\|contracts]]. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.		'''Smart property''' is property whose ownership is controlled via the Bitcoin block chain, using [[Contracts\|contracts]]. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.

	Smart property was first proposed by Nick Szabo in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"]~~. There are currently no implementations of this idea~~. This page was written by [mailto:mike@plan99.net Mike Hearn]. Contact him with any questions or ask on the forums.		Smart property was first proposed by Nick Szabo in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"]. This page was written by [mailto:mike@plan99.net Mike Hearn]. Contact him with any questions or ask on the forums.

	==Background==		==Background==

Jayemar: Minor grammar fix breaking a phrase into two sentences

2015-07-11T13:39:29Z

Minor grammar fix breaking a phrase into two sentences

← Older revision		Revision as of 13:39, 11 July 2015
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	'''Smart property''' is property whose ownership is controlled via the Bitcoin block chain, using [[Contracts\|contracts]]. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.		'''Smart property''' is property whose ownership is controlled via the Bitcoin block chain, using [[Contracts\|contracts]]. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.

	Smart property was first proposed by Nick Szabo in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"]. There are currently no implementations of this idea. This page was written by [mailto:mike@plan99.net Mike Hearn]~~, contact~~ him with any questions or ask on the forums.		Smart property was first proposed by Nick Szabo in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"]. There are currently no implementations of this idea. This page was written by [mailto:mike@plan99.net Mike Hearn]. Contact him with any questions or ask on the forums.

	==Background==		==Background==

Taras: Undo revision 57316 by Yashar (talk)

2015-07-10T01:45:08Z

Undo revision 57316 by Yashar (talk)

← Older revision		Revision as of 01:45, 10 July 2015
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	==Loans and collateral==		==Loans and collateral==

	Being able to trade physical property without fraud risk is useful, but we can add an extra layer to allow for secured low-trust loans. Consider a loan with which to start a ~~[http://cloudroll.io BitCoin Casino]~~. Rather than deal with a bank, you decide to allow people from around the world bid on your debt so you can get the best rates. For this to work, the strangers need some assurance that if the loan is not repaid, they get to keep the collateral - yet you still need to be able to use the car to set up the business.		Being able to trade physical property without fraud risk is useful, but we can add an extra layer to allow for secured low-trust loans. Consider a loan with which to start a small business. Rather than deal with a bank, you decide to allow people from around the world bid on your debt so you can get the best rates. For this to work, the strangers need some assurance that if the loan is not repaid, they get to keep the collateral - yet you still need to be able to use the car to set up the business.

	We can do this by adding ''access keys'' to the ownership key. By signing a message with the ownership key, access keys can be added or removed. Access keys can be temporary in nature. This means that for the duration of the loan, you can re-assign ownership of the vehicle to the creditor whilst keeping an access key for yourself.		We can do this by adding ''access keys'' to the ownership key. By signing a message with the ownership key, access keys can be added or removed. Access keys can be temporary in nature. This means that for the duration of the loan, you can re-assign ownership of the vehicle to the creditor whilst keeping an access key for yourself.

Yashar at 00:22, 8 July 2015

2015-07-08T00:22:20Z

← Older revision		Revision as of 00:22, 8 July 2015
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	==Loans and collateral==		==Loans and collateral==

	Being able to trade physical property without fraud risk is useful, but we can add an extra layer to allow for secured low-trust loans. Consider a loan with which to start a ~~small business~~. Rather than deal with a bank, you decide to allow people from around the world bid on your debt so you can get the best rates. For this to work, the strangers need some assurance that if the loan is not repaid, they get to keep the collateral - yet you still need to be able to use the car to set up the business.		Being able to trade physical property without fraud risk is useful, but we can add an extra layer to allow for secured low-trust loans. Consider a loan with which to start a [http://cloudroll.io BitCoin Casino]. Rather than deal with a bank, you decide to allow people from around the world bid on your debt so you can get the best rates. For this to work, the strangers need some assurance that if the loan is not repaid, they get to keep the collateral - yet you still need to be able to use the car to set up the business.

	We can do this by adding ''access keys'' to the ownership key. By signing a message with the ownership key, access keys can be added or removed. Access keys can be temporary in nature. This means that for the duration of the loan, you can re-assign ownership of the vehicle to the creditor whilst keeping an access key for yourself.		We can do this by adding ''access keys'' to the ownership key. By signing a message with the ownership key, access keys can be added or removed. Access keys can be temporary in nature. This means that for the duration of the loan, you can re-assign ownership of the vehicle to the creditor whilst keeping an access key for yourself.

Ontarioboy: /* Theory */ grammar

2014-02-03T01:58:31Z

Theory: grammar

← Older revision		Revision as of 01:58, 3 February 2014
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	This section assumes you are familiar with the Bitcoin protocol, and have a good understanding of [[contracts]].		This section assumes you are familiar with the Bitcoin protocol, and have a good understanding of [[contracts]].

	Let's start with the example of a car. The cars computer requires authentication using an ''ownership key''. The ownership key is a regular Bitcoin ECDSA-256 key. The car starts its life at the factory gate with the public part of a newly created ownership key. A small token amount of Bitcoins are deposited on that key, call the amount T (it could be 0.0001 BTC for example). Additionally the car has a digital certificate from its manufacturer, and an ''identification key'' which has the public part in the certificate. This allows the car to prove things like its existence, age or mileage to third parties.		Let's start with the example of a car. The cars computer requires authentication using an ''ownership key''. The ownership key is a regular Bitcoin ECDSA-256 key. The car starts its life at the factory gate with the public part of a newly created ownership key. A small token amount of Bitcoins are deposited on that key, call the amount T (it could be 0.0001 BTC for example). Additionally the car has a digital certificate from its manufacturer, and an ''identification key'' which has the public part in the certificate. This allows the car to prove things like its existence, age or mileage to third parties.

	When the car is sold, the following protocol is used:		When the car is sold, the following protocol is used:
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	# The seller selects a key to receive the payment, k1, and names their price P.		# The seller selects a key to receive the payment, k1, and names their price P.
	# The buyer generates a new ownership key, k2.		# The buyer generates a new ownership key, k2.
	# The buyer creates a transaction with two inputs and two outputs. The first input signs for P coins. The second input is connected to the output holding T coins for the ownership address. The first output sends P coins to k1 and the second output sends T coins to k2. This transaction is not valid because only the first input can be signed. The buyer passes this partially complete transaction to the seller, who then signs the second input with the ~~cars~~ current ownership key and broadcasts the transaction.		# The buyer creates a transaction with two inputs and two outputs. The first input signs for P coins. The second input is connected to the output holding T coins for the ownership address. The first output sends P coins to k1 and the second output sends T coins to k2. This transaction is not valid because only the first input can be signed. The buyer passes this partially complete transaction to the seller, who then signs the second input with the car's current ownership key and broadcasts the transaction.
	# They wait for some confirmations.		# They wait for some confirmations.
	# The buyer presents the car with the Bitcoin transaction, a merkle branch linking it to the block header and then enough block headers to fill in the gap from the cars current ownership transaction. The car sees that the new transaction re-assigns ownership and is further along in the chain than its current one, plus it has enough work piled on top to be sure the tx won't be reversed. It then updates its ownership information. The car does not need to keep a full record of the chain nor all headers, but rather just enough data to be able to connect future block headers to the one it was previously presented with.		# The buyer presents the car with the Bitcoin transaction, a merkle branch linking it to the block header and then enough block headers to fill in the gap from the cars current ownership transaction. The car sees that the new transaction re-assigns ownership and is further along in the chain than its current one, plus it has enough work piled on top to be sure the tx won't be reversed. It then updates its ownership information. The car does not need to keep a full record of the chain nor all headers, but rather just enough data to be able to connect future block headers to the one it was previously presented with.

	In practice this process would likely be handled using smartphones with NFC hardware - the act of touching the phone containing the ownership key to the dashboard would start your wallet app in a special mode that knows how to do smart property trades, after inputting the price the buyer and seller would then touch their phones together to finalize the deal. Although the cryptography is complex they would never need to know anything about it. The phone could double as a way to start the car as well.		In practice this process would likely be handled using smartphones with NFC hardware -- the act of touching the phone containing the ownership key to the dashboard would start your wallet app in a special mode that knows how to do smart property trades, after inputting the price the buyer and seller would then touch their phones together to finalize the deal. Although the cryptography is complex they would never need to know anything about it. The phone could double as a way to start the car as well.

	==Loans and collateral==		==Loans and collateral==

Ontarioboy: /* Background */ grammar

2014-02-03T01:53:05Z

Background: grammar

← Older revision		Revision as of 01:53, 3 February 2014
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	Primitive forms of smart property are already common - if you own a car, it probably comes with an immobilizer. Immobilizers augment the physical key with a protocol exchange ensuring only the holders of the correct cryptographic token can activate the engine. They have dramatically reduced car theft, for example, immobilisers are fitted to around 45% of all cars in Australia, but account for only 7% of the cars that are stolen.		Primitive forms of smart property are already common - if you own a car, it probably comes with an immobilizer. Immobilizers augment the physical key with a protocol exchange ensuring only the holders of the correct cryptographic token can activate the engine. They have dramatically reduced car theft, for example, immobilisers are fitted to around 45% of all cars in Australia, but account for only 7% of the cars that are stolen.

	Many other forms of modern property are protected against theft using cryptography, for example, some smartphones will refuse to release certain keys if the correct PIN unlock isn't entered, and cryptography not only renders a stolen device fairly useless but makes it impossible to steal ~~somebodies~~ phone number as well.		Many other forms of modern property are protected against theft using cryptography, for example, some smartphones will refuse to release certain keys if the correct PIN unlock isn't entered, and cryptography not only renders a stolen device fairly useless but makes it impossible to steal someone's phone number as well.

	Although these are victories for cryptography, the potential of cryptographically activated property has not been fully explored. The private key is usually itself held in a physical container (like a key or SIM card) and can't be easily transferred or manipulated. Smart property changes this, allowing ownership to be intermediated by Bitcoin miners.		Although these are victories for cryptography, the potential of cryptographically activated property has not been fully explored. The private key is usually itself held in a physical container (like a key or SIM card) and can't be easily transferred or manipulated. Smart property changes this, allowing ownership to be intermediated by Bitcoin miners.

Mike: link to contracts page

2012-11-02T11:26:31Z

link to contracts page

← Older revision		Revision as of 11:26, 2 November 2012
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	'''Smart property''' is property whose ownership is controlled via the Bitcoin block chain. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.		'''Smart property''' is property whose ownership is controlled via the Bitcoin block chain, using [[Contracts\|contracts]]. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.

	Smart property was first proposed by Nick Szabo in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"]. There are currently no implementations of this idea. This page was written by [mailto:mike@plan99.net Mike Hearn], contact him with any questions or ask on the forums.		Smart property was first proposed by Nick Szabo in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"]. There are currently no implementations of this idea. This page was written by [mailto:mike@plan99.net Mike Hearn], contact him with any questions or ask on the forums.

Mike at 09:00, 16 July 2012

2012-07-16T09:00:47Z

← Older revision		Revision as of 09:00, 16 July 2012
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	'''Smart property''' is property whose ownership is controlled via the Bitcoin block chain. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.		'''Smart property''' is property whose ownership is controlled via the Bitcoin block chain. Examples could include physical property such as cars, phones or houses. Smart property also includes non-physical property like shares in a company or access rights to a remote computer. Making property smart allows it to be traded with radically less trust. This reduces fraud, mediation fees and allows trades to take place that otherwise would never have happened. For example, it allows strangers to loan you money over the internet taking your smart property as collateral, which should make lending more competitive and thus credit cheaper.

	Smart property was first proposed by Nick Szabo in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"]. There are currently no implementations of this idea.		Smart property was first proposed by Nick Szabo in his 1997 paper, [http://szabo.best.vwh.net/idea.html "The idea of smart contracts"]. There are currently no implementations of this idea. This page was written by [mailto:mike@plan99.net Mike Hearn], contact him with any questions or ask on the forums.

	==Background==		==Background==
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	# The buyer creates a transaction with two inputs and two outputs. The first input signs for P coins. The second input is connected to the output holding T coins for the ownership address. The first output sends P coins to k1 and the second output sends T coins to k2. This transaction is not valid because only the first input can be signed. The buyer passes this partially complete transaction to the seller, who then signs the second input with the cars current ownership key and broadcasts the transaction.		# The buyer creates a transaction with two inputs and two outputs. The first input signs for P coins. The second input is connected to the output holding T coins for the ownership address. The first output sends P coins to k1 and the second output sends T coins to k2. This transaction is not valid because only the first input can be signed. The buyer passes this partially complete transaction to the seller, who then signs the second input with the cars current ownership key and broadcasts the transaction.
	# They wait for some confirmations.		# They wait for some confirmations.
	# The buyer presents the car with the Bitcoin transaction, a merkle branch linking it to the block header and then enough ~~blocks~~ to fill in the gap from the cars current ownership transaction. The car sees that the new transaction re-assigns ownership and is further along in the chain than its current one, plus it has enough work piled on top to be sure the tx won't be reversed. It then updates its ownership information. The car does not need to keep a full record of the chain nor all headers, but rather just enough data to be able to connect future ~~blocks~~ to the one it was previously presented with.		# The buyer presents the car with the Bitcoin transaction, a merkle branch linking it to the block header and then enough block headers to fill in the gap from the cars current ownership transaction. The car sees that the new transaction re-assigns ownership and is further along in the chain than its current one, plus it has enough work piled on top to be sure the tx won't be reversed. It then updates its ownership information. The car does not need to keep a full record of the chain nor all headers, but rather just enough data to be able to connect future block headers to the one it was previously presented with.

	In practice this process would likely be handled using smartphones with NFC hardware - the act of touching the phone containing the ownership key to the dashboard would start your wallet app in a special mode that knows how to do smart property trades, after inputting the price the buyer and seller would then touch their phones together to finalize the deal. Although the cryptography is complex they would never need to know anything about it. The phone could double as a way to start the car as well.		In practice this process would likely be handled using smartphones with NFC hardware - the act of touching the phone containing the ownership key to the dashboard would start your wallet app in a special mode that knows how to do smart property trades, after inputting the price the buyer and seller would then touch their phones together to finalize the deal. Although the cryptography is complex they would never need to know anything about it. The phone could double as a way to start the car as well.