Wednesday, October 30, 2013

OSI--MAC -- IP and Digital Money

Open Systems Interconnection Model OSI defined here by Wikipedia.  It is a communications system with many layers.  Understanding it requires some homework at Wikipedia.  Read it and return.  If you really want to know all about it then spend years and return.  Adequacy is sufficient.  Adequacy is the top of climbing a tree to the moon.  Beyond that progress is very slow.  OSI is a taller tree!  Actually the only tree in this forest like the Home Tree in Avatar.  We all conceptually live in it.  To me it is an object oriented metaphor but that is my orientation to everything.

Media Access Control MAC defined here by Wikipedia

Internet Protocol IP defined here by Wikipedia

In the previous blog entry I linked to an explanation of the relationship between Mac and IP:

"one can think of IP addressing as supporting the software implementation and MAC addresses as supporting the hardware implementation of the network stack. The MAC address generally remains fixed and follows the network device, but the IP address changes as the network device moves from one network to another"

MAC is the key to all the real physical world, (logical by virtue of nature and natural law) electrical hardware systems of physical electrical structures and processes.

IP is the key to all the conceptual software world,  (logic by virtue of human concept creation and definition of conceptual logic law) software systems composed of purely conceptual structures and processes.

Note: Natural world ecologist would probably say that our conceptually created conceptual eco system environment is based on the same logic as the natural world...or should be if we are to ever get it right!  True to a great extent.  We conceptualize systems from the basis of the natural world ecosystem.  However, even within the pureness of the real natural world we apply our own conceptualizations of that real world to confuse it.  For example:  Electricity does not move.  We think of it as physically moving.  Only the energy of electricity moves.  Perhaps it is just the natural inclination of most people to think in terms of movement as the explanation of an object in terms of what it does rather than what it is.  Exactly like the way we view money.  The way we conceptualize electricity however does not define what it is,  the way we conceptualize money however defines both what it is and what it does.  The factor that underlies the progress of computer systems is the separation of the tight binding between the physical and conceptual logic of a thing into two increasingly independent but related domains of related of an objects physical and related conceptual properties.

Perhaps money does not move.  That is exactly the foundation core idea of my monetary system architecture.  The energy of money moves from account to account.  Money is a static thing granting energy to the account that currently "owns" it!!!  More on that later.

MAC an IP are what bind together at a joining point the physical and conceptual worlds. Each has their objects with properties and behaviors.  MAC and IP is where physical world meets and interacts with conceptual world in the Information System Structure.  I initially wrote this using the term "logical" but changed it to "conceptual" which is more precise.  The physical world has its own logic locked into what a real physical thing is.  So does the conceptual word of computer software program have its own type of "logic" locked into the nature of a what a conceptual thing is.  (just a subset language child of a higher class object called Program).  Perhaps a small point of clarity but an important one.
MAC is the identifier of a unique instance of a real physical object.  Like a serial number on a paper piece of currency called a dollar bill.  Like a license plate on a car or a house address that is also associated with street and town.  Every computer device on the communication system has one assigned by the manufacturer.  Like we all have names given at birth, but perhaps not unique.  We can deal with that.  Computer hardware and software cannot.

The IP number might be viewed a MAC number that has made a Declaration of Independence!  It is a MAC number that said it does not have to be hardwired to another computer device with its own MAC number and told to communicate only with the MAC number of the other machine over the single wire connecting one to the other.  A Mac number with an attitude says it can chose any logical route it wants to get to another MAC numbered machine.  Freed from the physical chains that determined its strict physical path it became born again as an IP number to get where it wants to go.  Its logical abilities were no longer constrained by its tight binding to physical properties and behaviors.  It can choose its own best path.  A victory for freedom!

In our monetary system money has likewise made its Declaration of Independence of its physical nature from its logical nature.  Its logical properties that were once tightly bound to its physical properties were unchained over time.  Initially money expanded its power based on logic relationship that remained associated to it prior physical binding to something like gold.  Then it declared its independence of binding to any physical thing or an physical restrictions imposed on it limiting the logical power of money.  Even the limitations of fractional reserve.  A fractional reserve does not have to be existent prior to the creation of money in the form of a loan.  The reserve is sought after the loan is created.

Money is debt in our debt based money system.  The logical end of a progression of freeing the logic properties of an object from the physical properties to the extent that there exists no connection at all is.....total freedom!  In human beings that would be called death....In our computer system technology it is impossible, there must always be an inter relationship association between the real world of physical properties and behaviors working hand in hand with conceptual properties and behaviors to make the system work.  Every logical concept must have a physical counterpart with means of implementation in order for the entire system to operate.  It is like we could not think if there were no electrical/chemical capacity in our brains to facilitate it, as free as our minds may be to roam.

Debt money is an absence based conceptual structure where, by virtual of absence, presence is created.  It has no fundamental connection to anything other than absence which is nothing.

Conceptually the binary basis of computing can be defined as the presence or absence of an electrical charge.  However, the physical electrical charge itself is not defined by the presence or absence of an electron but their state of charge, positive or negative.  Binary computing is built on what computing is all about, being able to manipulate concepts that are detached but essentially related to realities of states of natural existence presence. 

Debt money is creating money out of nothing in an instant as a functional product of a contractual agreement that goes back to nothing over time as the loan is repaid.

Debt free virtual money currency is created by virtue of giving each instance of digital money a unique identity and unit value and associating it to its first ownership account.  Money as currency is a static entity.  It does not move, flow or change hands.  It stays in one place and only the owner account  of a unit of money changes.  An account is the power of money measured in total units at the disposal of the owner of the account.  Once debt free money currency is created and becomes associated with its first account it is born and lives forever.  Money itself does not go out of existence until there is no need for it. 

We have the technological capacity to design and implement a monetary system like that now.  The system model would not be much different conceptually from the Information Age computer system we now have.  If we do not do it now then we will have to do it after the dust of monetary collapse settles.  If done then we can call the digital debt free dollars Phoenixes.  If we still have the technology system we have now to do it.






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