Working Paper on Blockchain Technology:** http://www.coengineers.com/nspe-fintech-working-paper-on-blockchain-technology/

<img src="https://c2.staticflickr.com/8/7437/14177919353_93c2036d45_m.jpg" width="240" height="161" alt="water slide">

**Executive Summary**

Instead of multiple databases, each controlled by their respective central authorities and
trying to interact with each other in real time, blockchains (the technology behind bitcoin
and other digital currencies) permits all parties to share a single decentralized database
where access is managed with software.

The result is high efficiency, great speeds, low marginal cost, and infinite scalability.
Unfortunately, digital currencies - the lubrication of such databases - are struggling to
achieve generalized liquidity due to a lack of intrinsic value. They struggle to serve as
money, they exist as extralegal entities, and it is difficult to treat them directly as
property. More importantly, digital currencies seem unable to broach the “capitalization
gap” unless marketed as an object of speculation. What blockchain technology lacks is
an interface with the physical world.

The Professional Engineering Protocol, with it’s own model law, is effective in bridging
the capitalization gap – that long period of time between money flowing to a project and
the time that project produces revenue. During the capitalization gap, the engineer’s
stamp serves as proxy for title and money on a balance sheet. Additionally, there may
be significant functional similarities between the mechanics of the Professional
Engineering Protocol and the Blockchain Protocol. On the downside, professional
engineering is an 80-year old institution struggling for an interface with the digital world.

The argument set forth in this whitepaper is that by integrating Blockchain Protocol with
the Professional Engineering Protocol, several mutual needs may be resolved. This
position is supported herein with an enterprise risk management model rather than a
capital asset pricing model. The conclusion is that the decentralization of risk may
lower the cost of capital to the extent that projects upon which society depends most will
be prioritized correctly on a critical financial path.

Finally, it is recommended that professional engineering societies form a consortium with
the insurance industry to develop oracle contracts for capitalization of public and private
infrastructure. An engineering backed digital currency would be highly intrinsic and an
effective store of the value derived from human productivity.