IOHK | WHY WE ARE BUILDING CARDANO | 06/28/2017    This effort allows us to have a macro discussion about how a marketplace should be controlled in order to ensure consumer protection. Second, we can discuss how to model transactions in a way to automatically ensure legal protection and rights within specific jurisdictions, such as New Hampshire. Working with the Cardano Foundation, IOHK and other entities, the Cardano project will create a reference library of Marketplace DAOs for smart contract developers to use. Our hope is that insurance and regulatory markets can form around these DAOs and that they will be self-evolving based upon outcomes. 5. Sustainability An immersion into the cryptocurrency area yields many conceptual contradictions. Cryptocurrencies are designed to be difficult to change, but, like all technology, they need to change to address design flaws and advancements. Blockchains are intended to prevent centralization, yet require strong actors to lead changes or maintain the code. Perhaps the most frustrating experience comes when there are clear deficiencies that most stakeholders agree need to be corrected, yet consensus cannot emerge on the path forwards. Bitcoin’s block size debate has now been an active issue for more than two years. Daily, transactions totalling over a billion dollars are pending because the network is at peak capacity. If changing a simple parameter — even in the presence of temporary solutions — cannot be coordinated, then how can enterprises and governments feel comfortable investing billions of dollars into building infrastructure on top of these systems? For that matter, how can any business gamble on the strategic risk of integrating accountability-free protocols that cannot make rational design upgrades? Looking back into history, the evolution of the internet has followed a similar pattern with even simple changes like the transition from IPv4 to IPv6 taking decades to realize. Yet there is a strong contrast between blockchain technology and the internet in that they follow a very different style of custodianship. The internet was a military project that grew out of DARPA into academic circles with strong government backing and a well-defined set of initial custodians. The internet grew under non-commercial conditions without the machinations of corporate influence attempting to WHY WE ARE BUILDING CARDANO  Creative Commons Attribution 4.0 International License Page 40 of 44