# CAERULEUM
Abstract
The intensification of Human activities is re-shaping the Earth, triggering a vast ecological crisis. Centrally controlled commodity and environmental markets are inefficient, miscommunicating information about the environmental, social, and humanitarian value of environmental systems, driving the depletion of natural habitats.

Establishing a credible accounting-system for Natural resources and environmental systems while providing for a distributed consensus mechanism would allow consumers to trade with one another without the need for intermediaries. Decentralized Environmental Capital Markets brings the potential to unlock the value of ecosystems, create value for local communities, and Preserve Natural Habitats.

A Trusted Decentralized Accounting Institution would provide communities with the capacity to act and coordinate actions towards the desired conditions of the Future while reversing the stress on Earth's environmental systems.

We will further explore the potential of such blockchain systems on creating a planning system that would allow for planning for our Planet collaboratively with hundreds of millions of people and, eventually, billions of people.

## 1. Distributed, consensus-based, counting systems, on state machines: The backbone of not only Caeruleum but of the Bitcoin blockchain paradigm.

We will introduce the basic concepts behind Caeruleum that is also the basis of the Bitcoin paradigm, a model that forms the backbone of blockchain technologies.

The intention of this de-construction process is to identify:
* what kind of components are necessary to establish a Decentralised Institution, equal or better tothe model of Bitcoin.
* What are the absoluteley minimum functionality these components should have to serve their purpose.
* What is the scope of this Institution and why do we need it.

### 1.2 State Transition Systems
**Definition**
A transition-system is a concept from computer science to describe the potential behavior of discrete systems. It consists of states and transitions between states, through some relation. The set of states and transitions is not necessarily finite, or even countable.

**The Bitcoin computer**
From a technical standpoint, the ledger of a cryptocurrency such as Bitcoin is a state transition system, where there is a "state" consisting of the ownership status of all existing bitcoins and a "state transition function" that takes a state and a transaction and outputs a new state which is the result.(Buterin 2015)

The "Bitcoin" system would be trivial to implement, using a centralized server's hard drive to keep track of the state. Institutions build with central governance systems have the opportunity to implement arbitrary changes in their objectives as an outcome of evolving policies, cultural changes, or unforeseen externalities.

However, the Bitcoin computing established the paradigm of the decentralized counting system, where the state transition system is coupled with a consensus system to ensure that everyone agrees on the order of transactions. The State of the Bitcoin System transitions through executed transactions that are accessible for verification to everyone.

Thus the blockchain computer can be described as a State-Machine where the state transition function is an executed transaction. Conceptually the Bitcoin computer transformed Trust into computing primitive.

**Novel functionalities**
Blockchain technologies such as the Bitcoin paradigm generated a number of distinctive outcomes that were not possible before. The counting system of Bitcoin, which is integrated into the World-State of the system, enables the credible creation of information flows and data feedback loops. Using these data, we can create a number of computing primitives and applications.
### 1.3 Counting Systems
accountability to external parties
The genesis of double entry as we know it emerged in Genoa,---Summa de Arithmetica--- Italy during the 14th century before spreading to the rest of Italy and neighboring European countries.

#### 1.3.0 The value of a counting system

#### 1.3.1 The counting System of Bitcoin
The Bitcoin computing system became a Trusted Decentralized Accounting Institution and established a self-issued monetary system, the "Bitcoin" currency. Implementing the state-machine counting paradigm, in other fields such as natural capital accounting, it becomes possible to assembly infrastructure systems and establishes credible self-issued Institutions.

#### 1.3.2 The counting system of Ethereum

### 1.3.1 **Counting the value of Environmental Systems and Natural resources.**
The term natural capital is attributed to economist E.F Schumacher, who presented the concept in his 1973 book Small is Beautiful. There are many definitions of the term, and many attempts to create standards to support selected policies.

The environment and ecosystems are considered assets because they are the sources supporting human well-being through the supply of such vital goods and services like clean water, fertile soil, and valuable genetic resources.

The depletion of natural capital – including assets like forests, water, fish stocks, minerals, biodiversity, and land – poses a significant challenge to achieving poverty reduction and sustainable development objectives.

## 2. The Caeruleum Blockchain

Caeruleum is developing a blockchain accounting protocol to relate communities with [environmental stocks and flows] and allow for the credible allocation of property rights.

A Decentralized Accounting Institution would allow any community in the world to create environmental projects with their own arbitrary rules for ownership, transaction formats and [trading primitives]
The system would allow access to internet markets and the creation of new classes of digital assets in a permissionless and trusted manner.

### Decentralised Environmental Markets
Decentralized Environmental Capital Markets are created to Preserve Natural Resources and to unlock the value of Environmental Systems while empowering communities to protect and manage environmental resources. They bring the potential to Distribute wealth to the communities and reduce the threat of global poverty.

Traditional commodity markets are inefficient, miscommunicating information, driving the depletion of natural resources while access is restricted to insiders.

We offer several possible designs of marketplaces for ecosystems where property rights allocation is a key feature. We suggest that these marketplaces have the potential to reverse the degradation of many ecosystems, including forests, watersheds, and depreciated urban ecologies. The markets are designed as P2P systems without the need of a central planner or a government regulator; indeed, in many cases, the small-scale local organization of commons regulation would be both preferable and more likely (Ostrom, 1990)

The Protocol provides frameworks for producing accounts in several thematic areas, including:
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## 3. System components

Having introduced the basic concepts behind Caeruleum, we will discuss the functions of a transaction, a Contract, an account and the state in more detail.

> ### We will also expand on how to use the World-State as a design tool and build: A state-machine paradigm to Plan for the Planet collaboratively with millions of people

#### 3.1 System-State

The system-state is a mapping between Contracts and Account States. We begin with a state and incrementally, executing transactions to form a future state. The accounting system and adequately designed data structures, allow us to observe how the state changes over time, and perform calculations such as: to create alternative views of the system.

The state includes all information from Contract Accounts and Natural Capital account balances that relates to the physical world and are represented as computing primitives. It also contains all the outcomes of accounting operations from users, such as environmental markets and products.

#### 3.2 Contracts

#### 3.3 Account States of Natural Capital

#### 3.4 Transaction Execution
The execution of a transaction: it defines the state transition function Y.

## 4.0 A State-Machine to Plan for the Planet.
> Caeruleum is a project which attempts to build: distributed, consensus-based, state-machine, where all [possible futures of the Anthropocene] may be programed as transactions.
>
The protocol would allow for a new interdisciplinary Planning System that brings together the domains of Environment, Social/Culture, Technology, Economics, and Public Policy.
Eventually Caeruleum would allow to plan for our planet collaboratively with milions of people.

#### 4.1 Programmable Features, Ecologies