NOVEMBER 18, 2020

"MONOTONICITY" AS DISRUPTIVE TECHNOLOGY~REVIVING BECHI-UNIT PHILOSOPHYFOR SOLVING ECONOMIC DISCREPANCIESDISRUPTIVE TECHNOLOGIES FOR A SUSTAINABLE FUTURE
SPECIAL G20 EDITION - ADVANCING SUSTAINABILITY FOR THE 21ST CENTURY https://g20.sigefonline.com/

Hideto Tomabechi

drtomabechi@resiliencejapan.

Carnegie Mellon University※Fellow CyLab, Also, Visiting Professor C4I&Cyber Center George Mason University,CEO&CSO Cognitive Research Labs, Chairman Resilience Japan, Chairman Crypto-Asset Central Bank,Director Tomabechi Institute for Coaching Excellence (TICE)※Monotonicityl Amount of information only increases
and never decreasesl Monotonicity guarantees all traces of changes unalterable
l Typical example is accounting book.
Errors are corrected by crossing out and adding new numbers.
l Blockchain (Nakamoto 2008) is one pseudo example
using tree-based hashingl Bechi Unit used directed graph unification("Tomabechi Algorithm", 1990,1991)
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Monotonicity in blockchainis pseudo-monotonic
l no longer monotonic if fast nodes monopolize
CPU powers for selecting blocks
l no longer monotonic if time-delay in parts of networks lose nodes tobe added
l no longer monotonic if every transaction is not reflected in ablockchain
l no longer monotonic if blockchain is not public(as in private chain inside firewall)

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Unification is a purely
monotonic operationl Idempotent, Communicative, Associative,Absorptive, not Distributive
l fast non-destructive graph unification algorithms existl "Tomabechi Algorithms", 1990, 1991 are still fastest algorithms

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Bechi Unitl Designed as currency intended for exchange of values
in cyber spacel Early implementations: 1992 to 1998
at Tokushima University and Justsysteml Implemented as currency for avatar-based cyber world
in edutainment domain
l Japan's (may be world's) first digital currency
with pure "monotonicity"l Presented to select groups in Silicon Valley, etc.
in 90s for JS entry to US market
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Bechi Unit Philosophyl Currency only for cyber world onlyl Exchange with fiat currency
such as Yen, USD is prohibited

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Why Bechi Unit Prohibited exchangewith real currencyl Diminishing Marginal Cost in informational space ←Derivative tangent of cost function c(x)for goods/service x gradually slant downward○ productivity of value created in cyber space far surpasses
physical space○ therefore, values of cyber space currencies will far surpass
real currency○ we must prohibit cyber space currencies to buy land, food,natural resources, etc.
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○ Otherwise, it will create huge discrepancies
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My personal experience was bases
for Bechi Unit philosophyl Mitsubishi Estate Finance Officer from 1983-1992(Rockefeller purchase in 1989)l Japanese bank loans were uncontrolled(zero marginal cost in money creation)○ Justsystem VP for next-gen architecture(Advisor 1992-1995, VP R&D1995-1998 )- market share larger than Microsoft(marginal cost was printing of CDR only)○ Finance and software, two major areas
without almost zero marginal cost increase8○ World wealth discrepancy was easily foreseeable. H I D E T O T O M A B E C H I 2 0 2 0

How prices are represented
in Bechi Unit (BU) economyl Dual pricing system: fiat currency and BUØFor example:
uFerrari 40,000USD + 300,000BU (BU is Bechi Unit)uToyota 20,000USD + 20,000BU
l Price in USD is based on cost(recommended, but must for food, energy, etc.)l No restriction of price in BU is (i.e. supply and demand based)l Originally designed for exchange of application software, items inonline games, etc.
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How Bechi Unit wasissued and transferredl One central bank as a sole issuing agency
producing token graphs.
l Tokens (coins) are directed graphs and every transaction is performed
as an unification of existing token graph and a transaction graphl No central ledger, each coin contains unalterable history
l Multiple copies of same token graph can be kept (on memory, harddisk, paper, etc.)l As soon as one copy is used, all other copies disappear (in constanttime).
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How Bechi Unit wasissued and transferredl Every graph is time stamped by central bank server.
l As soon as one token graph is unified
with a transaction graph, resulting graph is time stamped.
(Every graph node created is time stamped and gensymed by coreTomabechi Algorithm)l Centralized issue, centralized gensym recording, centralized timestamp, distributed transactionl Since graph node it self is a coin (and not a ledger like Nakamoto),
double payment is inherently impossible.
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Reviving Bechi Unit project
after almost 30 years
l Because Nakamoto style blockchains arepseudo monotonic and unscalable(topic for another lecture)l Cyber currencies (crypto-currencies) are used for monetary gain in
physical worldl World now understands the importance of prohibiting exchange ofcyber value with physical values

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One Current Project Reviving
Bechi Unit (BU) Philosophyl Coaching Unit (CU) for professional coaches andclients 2020 (Covid motivated)l Basic rule 1: Flow of knowledge is always accompanied by flow in CU
l Basic rule 2: CU is only created as loan. No miningl Basic rule 3: Eligible for new loan after establishing credit in CU
spacel Basic rule 4: No CU exchange with real currencies and equivalents(strictly BU model)

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Coaching Currency(Coaching Unit or CU)
under Bechi Unit philosophyl CU Central Bank is a sole issuer of CU.
l Coaches declare planned next year coaching and lecture hours
l CU Central Bank loans CU to each coach based on declared hoursand rankl Coaches price coaching fee by combination of CU and Yen.
l Pricing in CU is arbitrary. Price in Yen is based on estimated cost inYenl Coaches can also add Yen premium as transition period
compensations
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CU transfer modell Clients pay coaches in combination of CU and Yen
l If clients have no CU, the person can attend
free lectures provided by coachesl Clients receive CU by either attending free/paid lectures or bycoaching sessions

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CU loan credit establishment
and future loans
l Coaches start repaying CU loan
as coaching activities progress,
Coaches can apply for further loan after establishing repayment credits
l no interests, no collateral, only plans for future coaching or lecture
hours needed

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Benefit of CU systeml Clients can receive coaching sessions with small
amount of Yen (to cover physical cost hourly rent,utility etc.)
Clients can pay CUs by attending free lectures and receiving CUs.
l Coaches can perform coaching activities charging actual yen cost percapita
l Currently, Yen premium is allowed
l In the future Yen premium is probably not needed if similar services
become prevailing
Scalable to other educational areas. Educational opportunities for have-nots.
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"Physical Cost Only in Fiat Currency"
Bechi Unit is scalable
to entire world economyl If we separate currency for physical cost and informational
added-value, higher education can be given at cost basisl Flow of information always accompanies with flow of cyber currencies.
People can earn BU-model currencies by attending government paid orvolunteer based education. They can pay BU-model currencies neededfor further education

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"Physical Cost Only in Fiat Currency"
Bechi Unit is scalable
to entire world economy
l 90 percent or more of our earnings and spendings are bothin information space regardless of jobs.
Values in information space can be exchanged without currencies
for physical spacel If we expand this model to world economy, have-nots in the world canbuy needs at costl Of course, if you want exotic cars, super hi-res audios and videos, superhigh service accommodations, you can always pay the added value in
information space earned in information space in BU-style currencies.
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Conclusionl If we allow values gained in information space
to purchase food, water, land, natural resources, etc.,
gaps of haves and have-nots will be infinitely largerl I proposed to divide currencies for physical and informational withmathematical solutions 30 years agol Now machines are fast enough and world understand concept of cybercurrency, Bechi-Unit model can be re-introduced to the world

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Appendix 0: Nakamoto vs Tomabechil Nakamoto-style blockchain is not scalable
l graph unification may require more CPU power
but is scalable
l Graph unification based monotonicity can be a disruptive technology
for future

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Appendix 1:
Why blockchain is pseudo monotonic
Blockchain as a pseudo-monotonic architecture 1l Trees of hashed data blocks with timestamps attain architectural
monotonicityl Vulnerabilities do exist in architecture if nodes are monopolized by
fast groupsl Vulnerabilities may be solved by running own full node and nlog nverifications

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Appendix 1:
Why blockchain is pseudo monotonic
Blockchain as a pseudo-monotonic architecture 2
l Modification on a block is kept monotonically based on somecomputational rule (PoW, etc.)l May be vulnerable to very fast node which can overwhelm the total
CPU power of the rest.

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Appendix 1:
Why blockchain is pseudo monotonic
Blockchain as a pseudo-monotonic architecture 3l Longest chain rule for adding a new block may introduce
vulnerabilityl Attackers can quickly add blocks that are not longest to makeanother chain longest
l Time-delay in parts of networks may result in non-longest chain to be
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Appendix 1:
Why blockchain is pseudo monotonic
Blockchain as a pseudo-monotonic architecture 4l Because of computational cost, every transaction may not bereflected in a blockchainl Often, balances are kept in apps and are reflected occasionally in ablockchainl Balance are often kept in separate non-monotonic database and notin a blockchain. (Coincheck who lost 550 million USD worth NEM only
had one wallet node for 280 thousand customers)

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Appendix 1:
Why blockchain is pseudo monotonic
Blockchain as a pseudo-monotonic architecture 5l Some blockchains are not transparentl So called "private chains" are not transparent because they are
inside firewallsl State digital currencies "CBDC" are normally not transparent
l non-transparent cannot be monotonic because there will be no publicverifications

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Appendix 2: Basic Discrete Mathematics
of Unification-based Monotonicityl "Unification"(directed cyclic/acyclic feature structure graph unification)l Idempotent, Communicative, Associative, Absorptive,not Distributive
l non-destructive graph unification is costly to make node copiesl "Tomabechi Algorithms", 1990, 1991 solved this problem

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Project contact

Dr. Hideto Tomabechi
drtomabechi@resiliencejapan.jp

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