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The Need

The ASCA Smart communities – a future vision article talks of

  • “a true smart community is one where all aspects of the natural and built environment will be represented in virtual world that is fully integrated, interoperable and operates within a legal framework that mirrors the legal regime of the real world. The potential benefits from a virtual representation of the real world are unlimited. Without a legal framework to support the digital representation of the real world, we will not be able to fully benefit from these significant technological advances and unlock the trillions in efficiencies that have been identified”.

Key Questions

  1. How would this work at a national, regional, industry, R & D, Charitable or consumer level and how could all these needs be integrated?
  2. What business model, organisational methodology, operating system and governance structures nationally would be required to create and connect the Smart cities, Smart industries path to virtualisation and closed loop automation?
  3. Who owns or oversees the data? How is it collected and stored? How is the exchange of data & continuous flows facilitated both commercially and physically?
  4. How are consumer and community privacy issued going to be managed?
  5. How can this be monetised and thus sustainable?
  6. How would this be funded? How are the benefits distributed equitably between users, creators and the community?

Security, identity, risk management and liability are the key

As described in the ASCA article "Cyberattacks on smart cities could threaten public safety While smart cities offer great efficiencies for their inhabitants, the same connectivity that enables the efficiencies can be used to deliver physical damage to infrastructure and could also cause loss of life. Smart cities need to be built with cyber security in mind, not as an added afterthought.  Research has found that many cyber security experts are concerned that smart city technologies are being adopted faster than technology that is essential to protect them.

As described in the recent smart grid and meter blog “the big data that is floating around somewhere in clouds is becoming increasingly critical to business operations, but very few companies have a good understanding of where their data is at any given time”. The critical issue of liability is rarely mentioned and well described in this Liability and the internet of things article

  • ”The IoT is rapidly growing, as more devices are connected to it and more connections are created between devices already part of the IoT. Device manufacturers, software developers, users, distributors and data analysts are all involved in a complex relationship to make use of the IoT.
  • This brings up the question of who is at fault when things go wrong. Because of the huge range of devices using the IoT, the results of something going wrong range from the merely inconvenient to the potentially lethal. Imagine a patient’s medication records are incorrectly transferred from a home device (A) to a hospital device (B) and as a result they are given another drug which causes a fatal interaction.
  • So where does the potential for liability lie in such a catastrophic case?”

Put simply, there are some missing links in the current ecosystem necessary for us to evolve to a point to fully enable technology’s ability “to enrich lives and communities in the 21st century”.

What is missing?

  • The infrastructure for domain administration in Australia did not exist in 1996. It’s is hard to imagine a world without it. It was initially run privately until a major court victory enabled the established of the auDA by supply and demand stakeholders for independent governance, initially as a Not for profit and later with Govt “Authority” status.
  • Data is the blood that runs through the system that is common to and connects us all
  • However in 2016 no structures, standards exist for the interconnection & administration of data for smart cities let alone a smart society. This is the missing link in our post internet transition to a true interconnected society or decentralised autonomous network that is SAFE.
  • As with the pre auDA world, in 2036 we will look back at 2016 and wonder how internet worked prior to the establishment, by Citizen, Regional, Industry, R & D, Charitable & Government stakeholders of a national digital data infrastructure & administrator to underpin our evolution to a smart society that protects the interests of all.

Road to solution - 4 Fundamental Questions





  • Deployment of smart city and smart industry data hubs (interlinks) for decentralised autonomous network as a National "smart society" digital infrastructure
  • Commercially neutral infrastructure for management, operation, and governance of smart cities
  • Independence aggregator & open data marketplace
  • "Open data ownership, access & exchange protocol" framework to create data standard for inter-city and inter-regional sharing and enable closed loop automation
  • Citizen ownership of their private data, "Smart Community/Industry Institution" establish control of their campus/data hub and permission based ownership of aggregated data
  • Multi-Level Knowledge model to maximise national linkages
  • Community ownership of public resource
  • Social capital contract
  • Revolving Funds & community loyalty methodology to ensure benefits shared equitably
  • Government investment methodology via Social capital Investment Trust to provide single point to:
    • Secure IP & Investment to facilitate ongoing system & product development
    • Separate commercial requirements from "neutral infrastructure" role
    • Establish "internal funding bank" to support aligned ASCA R&D group project activities
  • CL au Smart society Lighthouse Phase 1 = Local industry platform POC opportunity start point

What is the business model

The CL business model is based on the patented methodology of ULB Founder Ian Wilson and involves a commercial partnership between consumer, region, industry, R & D, charitable and Government “Access” user representatives to establish a national data administrator (NDA) and enabling operating system as the next natural evolution of the auDA.

The NDA will establish the commercially neutral smart city infrastructure, and provide the management, operations and governance necessary for approved communities to deploy smart city and industry hubs to enable inter regional and inter industry data sharing and closed loop automation within a decentralised autonomous network to support the smart city revolution need.

Self-organising community (regions, industry and consumers) will establish their own smart hub and to act as the Investment manager of their own information, data and associated revenues and manage their localised security, risk and smart community transition within a national, decentralised, open information and data marketplace.

The role of the NDA is to oversee the deployment of the smart city infrastructure, to manage and provide ongoing governance over the transition from human to machine scale change inflexion point we are currently at as part of a national IOT/E strategy for the benefit of all.



Why a commericial partnership?

The CommunityLink business model uses a Limited Partnership structure and organization methodology similar to Global Legal and Accounting firms which also operate decentralised autonomous networks managed by local partners. So we are using a proven commercial structure and applying it to the smart city revolution need for a “commercial and legal framework to support the digital representation of the real world”

In the CommunityLink model representative Regional, Industry, R & D , Charitable, Consumer & Government stakeholders establish a “Access” limited partnership with themselves as the general partner and members as Limited partners. For example the Australian Smart Communities Association would establish the Regional Access Limited Partnership with Council members as Limited partners. Similarly the IOTAA could establish the Industry IOT partnership with themselves as the General partner with Industry members as Limited partners.

From here the Consumer, Region, Industry, R & D, Charitable and Government “Access” Limited partnerships establish a national CommunityLink Partnership and National Data Administrator entity as General Partner and themselves as the Limited partners. Limited partners form their specific “Access” NDA Board Advisory committee to ensure NDA Board and management alignment to their ongoing Access user operational requirement.

The benefits of this approach to stakeholders is that it

  1. creates the smart city commercial framework & legal environment necessary to move to a fully integrated, interoperable smart society
  2. enables partners to maintain their current activities and engage in the general partner role as one additional activity... so all eggs not in one basket
  3. provides Not for Profit General Partners with a commercial & legal structure to receipt investment and grant dollars to get paid to establish the commercially neutral infrastructure without conflict of interest
  4. provides the commercial vehicle to receipt ongoing % revenue streams from the CommunityLink network without interfering with the current stakeholder model operations

In short it enables existing players to partner and build through to a new smart city commercial structure from and without disturbing their existing operating vehicle.

Our research indicates that we have reached an evolutionary convergence point in Australia to implement the business model and operating framework with only a slight refinement and alignment of the enormous efforts of existing national smart city stakeholders in partnership with core underlying ICT platforms partners





"Research has found that many cyber security experts are concerned that smart city technologies are being adopted faster than technology that is essential to protect them"

- Australian Smart Communities Association 2016

What is the Operating System?

If we could describe the ideal system for the smart city revolution that was SAFE what would it look like?
To deliver to the ultimate smart city revolution/promise of smart closed loop autonomous systems, the operating system need is for a secure, unhackable system. This must be combined with a governance methodology to assess and manage ongoing stakeholder, security and liability requirements combined with affordability.

Our expert advice is that current technology can only offer a bandaid solution which would require extensive & expensive multiple layers of security and which is ultimately unreliable because the current internet is based on central servers. By definition and thus by necessity it appears it can only ever can be an interim due to its inability to meet this need

From a theoretical viewpoint, pure logic would suggest the only solution/ideal? which can ultimately solve the security, liability and identity issues in a systemic rather than the current piecemeal bandaid approach appears to be to establish a dedicated smart city peer to peer platform that enables smart cities, industries and consumers to interact in a system with no centralised server so cannot be hacked.

To date neither the business model) nor platform the enable this apparent smart city revolution necessity has existed. The CommunityLink business model (link back to break thru model) involves deployment of smart city and smart industry data hubs (interlinks) to create a decentralised autonomous network operating as a national “smart society” digital infrastructure. What platforms exist to meet our need?

Our Research

We have done significant research into underlying platforms which could support the CL model to deploy smart city and smart industry data hubs which meet the smart city stakeholder requirement. Initial research into the much hyped Blockchain and the Bitcoin network which has over 6.000 independent nodes indicated the fundamental flaws in the blockchain but confirmed it as a core part of an integrated solution.

From here our research into distributed network solutions to solve this led us to the BOINC system developed by University of Californian, Berkeley, funded by American Science Foundation. It is used by the SETI program which uses 10,000 supporters who provide access to their unused computing power. A number of Universities are now using this approach and they give the example of a $10K cost for a server combined with using existing uni computing facilities to create the equivalent of a $5ml super computer and save $1ml p.a. in annual costs. The term used to describe this is Virtual Campus Super Computer (VCSC).

Our research ultimately led us to the SAFE network a open source decentralised data storage and messaging network that provides a secure, efficient and no cost infrastructure (which meets our Lean criteria) combined with an internal value transfer capability necessary for clip ticket transaction that are fundamental to autonomous smart city applications. The SAFE network which is currently under development has the potential to enable the CommunityLink system. Similar to the BOINC approach SAFE joins together the spare computing capacity of all SAFE users, creating a global network. As one of the three existing open source software application for integration to support the Phase 1 smart city requirement.

As described in the Introduction & Technical overview of SAFE consensus the SAFE system would enable CL Smart City or Industry stakeholders to create a CL SAFE close group consensus (minimum 32 members) to establish their (Bitcoin node equivalent) hub/data storage/exchange capability. This would then be integrated with key enabling software platforms such as Blockchain or Hypercat to be customised to the specific smart community or smart IOT industry requirement within the CommunityLink smart network. Creating a dedicated smart city peer to peer platform necessary to deliver to the Smart city Phase 1 systems reengineering Business Case requires the establishment of 4 close groups.





How is it funded?

The question put simply is how do you raise monies from investors to fund establishment of a business model, decentralised data infrastructure and an initial phase 1 to enable the global smart city revolution which cannot owned by investors?

The global development, application and distribution of CommunityLink as a generic methodology or global system can’t be driven from establishment of a national only based entity responsible for the au data governance only. Case in point the Australian Domain Administration Authority (auDA) can’t fund and drive the expansion of the auDA in other countries as it is geographically based. It can however act as a benchmark and provide support and expertise to CommunityLink.uk or nz for example.

ULB Holistic Capital Management (ULBH) is a specialist Strategy Consulting firm that has been tasked to develop a Commercialisation Strategy and Funding methodology for the CommunityLink business model and system designed by ULB Research Institute. This has presented some unique challenges particularly in relation to funding and a path to market.

ULBH has designed and is advocating the Social Capital Investment Trust (SCIT) collective investment methodology which is an elegantly simple but sophisticated Portfolio Asset Management approach. The role of a Social Capital Investment Trust (SCIT) overseen by a B Corporation Asset Manager is to secure the IP, fund and build the core CommunityLink Foundation Smart Society system asset to be accessed by self-organising communities in perpetuity in return for an annuity revenue stream.

How does it work?

The Social Capital Investment Trust methodology

  • Separates the commercial build, risk and ongoing development requirement from the “smart city commercially neutral infrastructure/governance” role
  • Provides a single collective investment & engagement point for securing IP & investment to facilitate ongoing system & product development (Commercial project section 1)
  • Secures core IP and pays licensing fees via the Portfolio Integration Asset Fund to create the plug in plug out capability necessary for continuous smart system improvement without commercial risk to the system as a whole.
  • Places system IP created by KIF in a CommunityLink Foundation to protect open system and create the framework & path for global governance discussion
  • Provides funding via the Strategic Investment Fund (SIF) for the Community project section to solve Access partner fund & grant raising, conflict of interest and business/revenue model problem and create the KIF client.
  • Operates as an internal system “social capital investment bank” of funds to support global CL deployment and fund transition from the old disconnected system to the new inter-operable system. We call this Data Transvestment.
  • Maximises system efficiency profits through simultaneous new system value/data creation via placement of the new smart interlinks and tactical data transition from the current system to maximise the emergent system's competitiveness".
  • Utilises margins from efficiencies created in the old system to fund transition the new system deployment to create further old system efficiencies until the new becomes dominant.
  • Has a Smart City Phase 1 system reengineering business case commercial start point

Why the multi-fund approach?

To create a smart society and smart city system which learns continuously we need to be able to bring multiple IT systems/players together with the ability to plug in and out as they become obsolete without disruption to the system. Continuous learning, adaption & improvement is fundamental to a smart system, so it cannot be held captive to existing "capital ROI's". This is a key area of risk management which needed to be addressed. Placing the risk areas into separate funds provides the legal basis for SCIT to design an “Integrated Portfolio design” to engage with the holistic requirements of the system build and ongoing operation in a way which reduces the risk for all collaborators and protects the interests and integrity of the system as a whole. We call this Holistic Capital Management. The initial Phase 1 Integrated Portfolio “smart city” design is detailed below

ULB is advocating moving the Social Capital Investment Trust incubation of the CL model to a significant Research based Innovation Centre to bring converging CL Foundation Close Group consensus parties together create a continuous learning environment. This creates the environment to bring the key commercial and community partners who will most benefit together into a commercial environment which supports rapid application development and creates the learning environment necessary for Access community stakeholders to establish their own Access data hub and tests the interactions to meet the Phase 1 smart city CDC/Council product requirement in a coordinated manner. So a win win win for the community as a whole along with investors and IP providers.

Who manages it?

As with other major Infrastructure Trusts the SCIT will have an Asset Manager with a unique global mandate & social capital purpose to fund the development of the underlying infrastructure asset with the following value proposition and benefits;

  • An equity investment with global social & economic reach
  • Establishment of a wholesale social investment fund/social investment bank
    • Perpetual ROI & IP annuity income stream from community monopoly infrastructure asset
    • Sole mandate to fund similar country based CommunityLink projects globally
    • Leveraged ability to support social outcomes
    • Drive ongoing system innovation without conflict of interest
  • Unique Multi Fund Asset Management approach and Integrated Phase 1 Smart City Portfolio design
  • Potential 40% IRR from Australian smart city project
  • Board & investment fund involvement for the investor
  • Access to capital markets if additional capital is required
  • Acts as a new generation “social capital investment bank”

The creation and funding of a new generation Social Capital Investment Bank funded through annuity style revenues stream from a community monopoly infrastructure is a key strategy to support our transition to a new economy based on Regenerative capitalism and Plan B Principles that “put people and planet alongside profits.” ULBH is seeking to engage with values aligned global investment experts to partner in the ongoing development of the SCIT and its “sustainable wealth creation and its equitable distribution” investment mandate.





Where do we start?

The Commercial start point

The commercial start point is the Smart City Phase 1 – Business case opportunity to re-engineer $25bl p.a. of existing Council physical infrastructure expenditure to create client projected savings growing to $2-5bl p.a. nationally whilst creating a national digital data infrastructure network with projected $billion revenues to facilitate inter regional & industry data sharing and fund next generation social and economic functionality to support sustainable community ecologies.

What is the practical start point?

For those familiar with the history of the Bitcoin the establishment of Bitcoin as a blockchain based decentralised autonomous network which currently has over 6,000 nodes required the creation of a Foundation or “genesis” blockchain. Similarly the established of the CL SAFE decentralised network of smart communities must start with a Foundation or genesis data hub/vault. As described in the Introduction & Technical overview of SAFE consensus this requires a Foundation group of like mined people to create a CL SAFE close group consensus (minimum 32 members) to establish the Foundation data hub to commence a development path enable Councils, CDC’s and other smart community operators to do the same and operate autonomously within the CL SAFE system.

The key questions that we need answers are:

  1. Who should be a member of the Foundation Close Group Consensus?
  2. How would a close group member engage?
  3. What is the commercial basis for it to operate??

Who Should be a member of the Foundation Close Group Consensus?

Logically the Foundation group should consist of those with the most to gain and most to deliver i.e. individuals whose associated organisations have the most to gain and who can make the greatest contribution to the collective effort and outcome in terms of IP, operational contribution, funding and advocacy.

From a practical point of view how do we best identify these individuals and organisations? The optimal approach is for members to be the key players to support the Phase 1 systems reengineering Business Case the project plan. The project plan has two project sections, Section 1 - commercial and Section 2 - community, each with a number of project workstreams to be worked on in parallel and integrated to deliver the operational start point milestone.

The Community Section involves Regional, Industry, Consumer, R & D & Charitable stakeholders to establishing their own Access data hub within the CL SAFE network and test the interactions to meet the Phase 1 smart city CDC/Council product requirement in a coordinated manner. Within the Commercial project section this involves partners/individuals providing the core business, IP, technology and funding requirement to support and enable the Community section partners. So we can clearly identify key beneficiaries!

How would a close group member engage?

ULBH will be approaching prospective CL close group stakeholders with an invitation to commence a discussion of benefits of involvement, collaborative actions and path to an Alignment session involving all key Close group stakeholders

The objective of the Alignment session is to sign off on a "driving execution worksheet" to progress the business case to a point where each stakeholders role, responsibility, $ requirement, margin can be factored into the business model, collective investment methodology, and integrated project critical path to an agreed "local industry platform" product roadmap start point. This by necessity incorporates establishment of a Foundation CL genesis hub as the key operational outcome and the CommunityLink Proof of Value (POV) algorithm start point.

ULB can facilitate the meeting and Driving Execution process to the business case and project funding outcome. From here the Social Capital Investment Trust incubation of the CL model would move to a significant Research based Innovation Centre to bring converging CL Foundation Close Group consensus parties together into a commercial environment which supports rapid application development.

This creates the learning environment necessary for Access community stakeholders to establish their own Access data hub and tests the interactions to meet the Phase 1 smart city CDC/Council product requirement and move to a commercial start point in a coordinated manner.



We are seeking sponsorship for this event from high profile global stakeholders who have sponsored similar events.



What is the commercial basis for it to operate?

CL close group stakeholders will operate with no change to their current situation whilst;

  1. i. engaging with the Social Capital Investment Trust in respect to their specific actions/requirement only e.g. Access stakeholders to secure the $2ml funding allocation from initial capital raising to establish their Limited partnership, hub and revenue stream
  2. ii. supporting establish of the CL Foundation (Community Project Workstream 7) to places system IP in a CommunityLink Foundation to protect the open system and create the framework & path for a discussion of a Access user established system of global governance for a system described by ULBI Director of Research Peter White that offers “a multilevel biofeedback framework to empower local and regional communities and private investors and govt’s to more effectively deal with local and global issues by increasing economic and social equity through redistributing wealth creation to the issues, people, communities and infrastructure that need it to redirect and sustain transformative new systems of collaboration for human sustainability”.