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UNIVERSITY of CALIFORNIA, IRVINE Algorithmic Authority of The UNIVERSITY OF CALIFORNIA, IRVINE Algorithmic Authority of the Bitcoin BlockchAin THESIS submitted in pArtiAl sAtisfAction of the requirements for the degree of MASTER OF SCIENCE in InformAtics by CAitlin Lustig Thesis Committee: Professor Bonnie NArdi, Co-chair Professor Geoffrey C. Bowker Co-chair AssistAnt Professor JoshuA TAnenbAum 2018 © 2018 CAitlin Lustig DEDICATION To LAurA Louise Lustig (1993-2004) ii TABLE OF CONTENTS List of Figures ................................................................................................................. v List of Tables ................................................................................................................. vi Acknowledgements ....................................................................................................... vii Abstract of the Thesis ................................................................................................... xiii Preface ............................................................................................................................ 1 Chapter 1. Introduction ............................................................................................... 3 Chapter 2. The Importance of the Concept of an “Algorithm” ........................... 8 2.1. In Computer Science ........................................................................................... 10 2.2. In Critical Algorithms Studies ............................................................................. 11 2.3. The “Work” of Algorithms in Corporate and Wider Discourse ............................ 15 2.4. In this Thesis ....................................................................................................... 17 Chapter 3. Bitcoin ........................................................................................................22 3.1. Why Bitcoin? ...................................................................................................... 22 3.2. What is Bitcoin? .................................................................................................. 27 3.3. Related work ....................................................................................................... 37 Chapter 4. Methods .....................................................................................................40 4.1. Survey ................................................................................................................. 40 4.2. Interviews ............................................................................................................ 41 4.3. Observation ......................................................................................................... 42 Chapter 5. Bitcoin as an Example of Emergent Algorithmic Authority.........45 5.1. Who Uses Bitcoin? .............................................................................................. 46 5.1.1. A note on survey design ................................................................................................... 47 5.1.2. Survey results ........................................................................................................................ 50 5.2. Algorithms as Math ............................................................................................. 55 5.2.1. Algorithms mAy gAin authority by seeming objective and nAturAl ............. 56 5.2.2. Algorithms mAy gAin authority becAuse they are seen as more trustworthy and authoritAtive thAn existing institutions .................................................. 60 5.3. Algorithms as Stand-ins for Human Labor ........................................................... 64 5.3.1. Algorithms chAnge the orgAnizAtion of humAn lAbor ........................................ 64 5.3.2. Algorithmic authority is mediAted by humAn judgment .................................. 68 5.4. In order to have authority, open source algorithms need institutional support and may need to adopt a level of centralization or corporatization ........................................ 74 Chapter 6. Tensions Between Reality and Ideals ................................................87 6.1. Authority and utopia ............................................................................................ 89 6.2. Authority and Trust ............................................................................................. 94 iii Chapter 7. Conclusion and Future Work ...............................................................97 References ...........................................................................................................................99 iv LIST OF FIGURES Figure 1: The price of Bitcoin compAred to US dollArs................................................................ 4 Figure 2: Screenshot of the Bitcoin-Qt grAphicAl interfAce for Bitcoin Core. ................ 30 Figure 3: A grAphicAl representAtion of a blockchAin with forks. ....................................... 31 Figure 4: A screenshot of the bfgminer softwAre........................................................................ 32 Figure 5: FrAnkenmint's ASICMiner Block Erupters. ................................................................ 42 Figure 6: Protester in front of MtGox’s office. .............................................................................. 69 Figure 7: A Butterfly LAbs miner......................................................................................................... 71 Figure 8: A Bitcoin sign displAyed in a shop in MontréAl, Québec, CAnAdA. April 27, 2018. ................................................................................................................................... 75 Figure 9: Bitcoin miners in 2015. ....................................................................................................... 82 Figure 10: Bitcoin.com Pool’s lArge-scAle mining fArm in 2017. ......................................... 82 v LIST OF TABLES TAble 1: DemogrAphics of Bitcoin ...................................................................................................... 52 TAble 2: SummAry of tensions between utopiAn ideAls and reAlity ................................... 90 vi ACKNOWLEDGEMENTS There are more people to thAnk thAn I could possibly list here, but I value everyone who hAs ever contributed ideAs thAt hAve mAde it into this document or given me support thAt mAde it possible for me to write it. I thAnk my pArticipAnts, some of whom took considerAble amounts of time to shAre their thoughts with me and even reAched out lAter and sent me mAteriAls they thought I might find useful. I deeply appreciAte their generosity and enthusiAsm. ThAnk you to BodhisAttvA ChAttopAdhyAy, CAssidy Dever-Baker, Yubo Kou, DAve Miller, and JAime Snyder, who All reAd and critiqued my thesis. I especiAlly thAnk Hope Sisley for putting significAnt Amounts of time and energy into improving my writing. Words cAnnot reAlly describe how much Bonnie NArdi and Geof Bowker, my co-Advisors, hAve supported me through whAt hAs been an unconventionAl pAth through my acAdemic cAreer. When I entered the University of CAliforniA, Irvine’s InformAtics depArtment, Bonnie And Geof took A chAnce on a green student from a computer engineering bAckground who did not hAve much of the theoreticAl knowledge or many methodologicAl skills needed to pursue reseArch in their areas of study—just pAssion and interest. They were AlwAys pAtient co-Advisors and provided invAluAble advice, mentorship, and opportunities for growth. Geof and Bonnie believed in me even when I did not or when I could not see the vAlue in my work. My third committee member, Josh TAnenbAum, hAs not only provided an incredible amount of support, but he inspires me to be more creAtive and to seek out the reseArch thAt most excites me. I also thAnk JonAthAn AlexAnder, Finn Brunton, vii Bill MAurer, Don PAtterson, and AllAdi VenkAtesh who were on committees for me at vArious stAges of my cAreer. I hAve been fortunAte to hAve a number of unofficiAl mentors during grAduAte school as well. Yong Ming Kow collAborAted with me on my reseArch on the imAginAries of actors in the Bitcoin ecosystem And gAve me opportunities to do fieldwork thAt I would not hAve hAd otherwise. But more thAn thAt, he hAs been a good friend and mentor. I aspire to one dAy hAve his drive, generosity, and positivity. JAime Snyder hAs been an invAluAble source of locAl support as I finished my degree remotely in SeAttle. She helped me to refrAme mAny of the chAllenges thAt caused writer’s block into opportunities. Over the course of my grAduAte cAreer, I wAs also privileged to work as a grAduAte reseArch assistAnt with Bill MAurer and the Institute for Money, Technology & FinAnciAl Inclusion (IMTFI), Judith Gregory, And Don PAtterson. I especiAlly wAnt to extend a thAnk you to Judith, who is incredibly generous with her time, wisdom, and resources. I Also worked as a teAching assistAnt for a number of clAsses with DAvid KAy, and I value whAt he tAught me about pedAgogy. I thAnk the GrAduAte Resource Center at UCI, where I worked as a writing consultAnt. KAren FriedlAnder, the operAtions mAnAger, wAs the best boss thAt I could ask for. I would not hAve gotten through grAduAte school without the support and help of the InformAtics depArtment, pArticulArly André vAn der Hoek, our current depArtment chAir, and MelissA MAzmAniAn, our current vice-chAir of grAduAte AffAirs. I also wAnt to extend my deepest thAnks to the depArtment’s
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