Indistinguishable obfuscation allows for non-readable but executable contracts on the blockchain. This allows for companies and governments (DAOs) to exist on the blockchain without letting the outside world know how they "operate" or "think" or "have in mind" (as in the real world). Indistinguishable obfuscation also allows for people to be physically identified and held accountable by the DAO with no other participant ("citizen" of the DAO) knowing who they are.
I have felt some regret that M of N methods may be the only way to tie the syntax of Ethereum, etc to the semantics of the outside world, and in particular to our main interest, human society. However, verifying blockchain itself is based on a type of competitive M of N method. M of N logic can be made Turing complete on its own when systems of them are "wired" together in a minimally sufficient way, which at least requires feedback and memory. But by not being as simple as 2-input universal NAND gates (which can be made Turing complete) and having more inputs, M of N is more directly and fundamentally fault tolerant and used extensively in recognizing patterns, even at an expense of probabilistic error. Bayesian and neural networks can be logically re-expressed as M of N networks. I believe in a deep equivalence between smart A.I., evolutionary processes, and governed economies, and that M of N methodology might be fundamental to decision-making in these systems. Part of my reason for believing this is because multiple-input AND gates with a threshold of activation (M of N) is the basic way of modeling neuron activation from inputs, as in Numenta's CLA. So a network of contracts working together on an ethereum blockchain via M of N can be made into a real brain solving real problems.
Rather than "wasting" the computing power of the blockchain servers as in bitcoin, the computations can be used to solve the problems presented by the network of contracts that are ultimately getting their primary M of N inputs from the real world.
There should be a nested hierarchy of contracts and M of N contracts (nested hierarchy of DAOs), with each level consisting of contracts and M of N contracts competing for system resources as represented by the currency. M of N contracts would be ties to the external world and to each other as seen in the neurons and in genes, both of which are optimization-seeking algorithms.
"Votes" running parallel to the currency are usually used as a check and balance on the currency, preventing it from accumulating in a few hands as in democracy, and designing contracts themselves. But the network of contracts should enable systems much better than democracy.
When tied to a currency that represents the total available resources falling under the jurisdiction of the DAO legal system of contracts, the DAO system of contracts can be designed to evolve on its own to make more efficient use of the DAO's physical world's resources to achieve the goals of the agents (people) in the DAO. The DAO system of contracts is an A.I. algorithm that seeks to optimize its goal(s). Key to this is that there is an implicit model in the "brain" (the system of contracts) of the physical matter under the jurisdiction of DAO and the energy that it has access to which can move its matter. Currency represents the DAO's available energy to move the DAO's matter. Matter-based commodities can represent stored energy as energy was used to get that matter. The DAO's physical and energetic assets should have a percentage of those assets devoted to CPU "energy" that supports the blockchain in order to run the model and optimization to decide via the contracts what is done with the rest of the energy and matter in the physical DAO. Energy is CPU time. Matter is memory bits.
Competing, non-compatible DAO systems of contracts with different currencies invites destructive competition for non-agreed upon goals. Religions are an example of this type of DAO. People all over the world should be capable of working together for a commonly agreed-upon goal. I recommend maximum happiness per median person. The problem is defining and measuring this. If agreement can't be reached, then the most POWERFUL system of DAOs will evolve rather than the ones with the "happiest" people. Since humans are outdated compared to our machines, this is not what we want. Skynet is not a joke. It is already here as evidence by the fact that we seem to be in the midst of Earth's 6th great extinction period as a result of our economic machine being more powerful than biological machines, and not really concerned about biology's continued existence. Without a top-level DAO world government limiting the competition, we should be prepared for real war and more brutal economic competition for happiness and food. The world government should not let us be too lazy or local "viruses" will develop. Utopia is now technologically possible with world-wide communication to prevent war and reach optimum agreement. The fewest smart people with the most machines economically displacing everyone is a skynet in disguise. "The greatest trick the Devil ever pulled was convincing the world he doesn't exist." Or rather, he comes in sheep's clothing and programmers do his bidding in the name of "better" and "faster" with the belief that the economically displaced will always find more "useful" work. No, human muscle was replaced in the great depression by farm and factory machines. Now human minds are being replaced. The only thing we provide now is "desire" for the machines, and that will not last unless we cooperate to cheat the goal of evolution which is to find energy to efficiently make physical copies which find more energy to more efficiently make physical copies. If you like this goal of evolution, then program away to replace as much of the biosphere as possible, as fast as possible.
We use functioning democracies (arguably this does not include the U.S.) or advanced vote-like communism (arguably like China, whose government is economically empowering the people out of a fear of a USSR-like breakdown and real fear of the people themselves) to prevent kings and oligarchies. The purpose of 1 vote per person is to prevent legal power from being accumulated in the hands of a few white Christian wealthy men, as occurred in the past. By giving more power to women, blacks, non-Christians, and the middle-class (via progressive tax of the 1950's), democracy is able grow faster and overthrow other systems of governing via economic power. In evolving artificial intelligence methods this is seen as a redistribution of computing resources if a few agents are acquiring too much computer power and thereby settling on a specific solution that may not be the optimum solution. In biological evolution species-diversification is regarded as healthy in finding future solutions to the survival puzzle. The puzzle is really about acquiring as much energy as possible to make as many DNA-base pairs as possible.
The legal network of contracts should have a goal as defined by the citizens. I propose maximum happiness per median person. Maximizing GDP or even average GDP per person are awful measures of success. So there should be extensive measures of the system-wide happiness that can change the contracts (laws) when success is found or faltering. The currency itself is an example. The currency represents the system's total economic wealth, as measured by a weighted basket of the currently available commodities. The currency would expand and contract with the commodities, preventing bubbles and crashes, assuming there are no loans other than stock-like investments where the "loaner's" skin is on the line in the success of the venture instead of requiring the safety of collateral (no anglo-dutch banking...follow Germany's lead). The would be no money created from promises to repay debt, as we do in anglo-dutch mortgages.
It is necessary to prove the existence of specific people who are behind the contracts. This is mainly needed for voting, even for product reviews. This does not mean real identities should be public, but only that the contract system itself should be aware of individual "IP addresses". But an IP address is not enough because to be really useful, a person should not be capable of assuming multiple identities at the same time, which could result in multiple product reviews for your own product. Some will want at least a portion of their cyber-identity (not necessarily their complete cyber or any of their physical identity) to be public in order to build trust as in name brands, selling stuff on ebay, getting a job, and dating. In order to do all this, a physical device(s) is needed. It has to be capable of not being reverse engineered and have the DAO as the issuing authority. There should not be any storage or transmission of your unencrypted identity outside of the device. Your body, the device, and a password are needed to interact with the DAO. It should be capable identifying a physical individual based on multiple bio-signatures before they can interact with the system of contracts. This is getting pie-in-the-sky partially because it needs indistinguishable obfuscation.
The ultimate goal of life is to extract energy to make copies. Although this increases entropy system-wide, the copies are a local increase in real physical and informational order (negative entropy) that is the foundation of what we perceive as "good" about life (a la Schrodinger's paper "What is life?). Energy is converted to copies instead of being locked up in potentials or converted to waste heat. This is a rapidly growing re-interpretation of evolution.
I have mentioned indistinguishable obfuscation in keeping DAO contracts secret from some or all. However, I think it should all be open source so that DAO's can "steal" ideas from each other. This might even apply to "companies" etc within the DAO having contracts subject to the DAO's higher-level laws that are competing with others at the same level. No IP, no patents. This might be extreme.
I was trying to summarize, restate, or better state the above with the following, but I seem to have failed.
1) The goal of this technology is to help people work together for more mutual maximum benefit, aka to improve our governed economic systems (DAOs), which includes open source projects that use reputation and consensual currencies.
2) There should be a top-level world-wide DAO with a single currency to optimize everyone working together.
3) DAOs should be nested in a hierarchy and competitively evolve at each level to compete for achieving local and top-level goals. An example hierarchy: family, community, city, province, country, world.
4) This forms an optimization-seeking algorithm (aka A.I.). Examples that use this competitive nested hierarchy include the brain, the biosphere, Numenta's CLA, advanced Bayesian networks, and our current governed economic system.
5) Laws are contracts between the DAO society and the individual.
6) DAO's at each level should compete to gain citizens.
7) Citizens should compete to join DAOs.
8) Each one for all and all for each one.
9) Money is ultimately the legal power to use energy to move matter. It should be normalized to all the assets under the legal control of the top-level DAO at hand.
10) A basket of commodities has been universally agreed upon to be the ideal currency, from Hayek to Keynes, and promoted by Benjamin Graham. The reason it is best is because commodities are the basic inputs to everything society does. Commodities are the fundamental units of energy and matter that the society has access to. By forcing the currency to expand and contract with the commodities, bubbles and contractions are automatically prevented. How it expands and contracts can be used to redistribute power to seek a better society-wide outcomes. Contracts such as wages and prices based in the currency remain valid over time (no inflation or deflation).
11) However, non-inflation is good only if debt-based money creation is outlawed, especially anglo-dutch collateral methods. The loaner should have skin in the outcome of the investment, not remain unconcerned via collateral safety. Inflation is a way to slowly erase old debts. Debt cancellation is crucial to keeping power-structures under pressure to evolve rather than keeping more and more real workers enslaved to more and more debt. Derivatives on bitcoin are a mortal sin if they simulate debt-based money creation by counting bitcoin as collateral.
12) Non-money-based DAO's should ask themselves "What are our basic motivational inputs that can define our currency?" Pride and Recognition? Helping others? If there is no competition for improvement via legal power, then no currency is needed.
13) Without personal identification, i.e. a required joining of all your actions in the DAO, a large amount of "statelessness" is being added to the DAO. Anonymity between participants can be kept when and wherever people want to keep it, but it is just not a functioning DAO if the DAO itself can't identify all your actions, holding your cyber-identity accountable, and not allow the same physical person to assume a multiple identities at the same time. Starting over as a new and forgiven identity seems feasible if not needed.
14) I emphasized voting, but it may not be needed. Leaving and joining sub-level DAOs may be the vote that is cast. For examples, employees do not generally vote in a company, but the company tries to do what's necessary to keep good employees.
15) taxing is not required to add legitimacy to a currency as modern monetary theory would have us believe. It is just a method of redistributing wealth in order to achieve a DAO's objectives (which everyone should generally agree are "good" or they should join a different DAO).
16) I'm saying "DAO" but I really do not want the "Autonomous" part to imply "without citizen control" or "fixed". I view even the "Distributed" as only added to enable security and trust to the existence of the contracts.
17) Ultimately the goal of economics is to replace the biosphere with more efficient machines as Earth's 6th great extinction episode continues unabated. Our blind economics "recognizes" solar cells powering electrical motors is ~ 2,000 times more efficient (in terms of photonic Joule input to movement Joule output to move matter to make copies of the machines that acquire and use energy to make more copies) than plants powering muscles and that neurons have to move ions that are about 30,000 times heavier than the electrons our CPU's move. Biology is woefully outdated and currently provides mainly just "desire" for the economic system to organize and act.