The Author’s Bona Fides/Credentials: Who Am I

My name is Anoop Bungay, of Calgary, Alberta, Canada and you will discover that yours sincerely:

#1 - naturally discovered the [knowledge concept system and applied concept system of non-novel (exact) conformity science (www.conformity.org) coined the subordinate concept system: Bungay Unification of Quantum Processes Algorithm also represented, generically, as "BlockChain" and commercially represented by the trademark source identifier: "Principles of 'BlockChain'™"; first observed, discovered and commercialized between at least as early as August 14, 2001 and at least as early as April 9, 2005 by Mr. A. K. (Anoop) Bungay, for a globally accessible, "PEER TO PEER ELECTRONIC FINANCE SYSTEM" (www.privatelender.org); with integration to a subordinate system, namely a quality management infrastructure system registered to ISO 9001:2000 at least as early as May 9, 2005 and subsequent infrastructure upgrades to ISO 9001:2008 and the current, risk-based ISO 9001:2015.] as a result of seminal, primary scientific-method-based research, development, testing, commercialization and National and International registration to ISO 9001:2000; ISO 9001:2008 and ISO 9001:2015, from at least as early as August 14, 2001, in order to develop the world's first Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow electronic finance system for the trade in "non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading financial securities", namely, the “cryptoloan” and “cryptomortgage”; commencing on April 9, 2005, at the internet domain name www.privatelender.org and operating as PrivateLender.org: Canada's Private Lending Network®. Marketed globally pursuant to the Singapore Treaty, Nice Agreement, Madrid Protocol and World Intellectual Property Office protocols, under the international registered trademark brand name the BITMORTGAGE®. This occurred five (5) years before the experimental, alpha-state subordinate-network for payment transfer, a digital "cryptocurrency" network (generically marketed globally as 'bitcoin') was made available to the public on January 8, 2009.

#2 - defined a new field of study named conformity science. Learn more, including the dictionary definition at www.conformity.org.

Creations Speak > Louder than Actions which Speak > Louder than Words™

#3 - Commercialized (created) and developed pending commercialization for intellectual property reasons or pending technology readiness (but most things are commercialized) - This list is found in Schedule A, however you may as well know now in order to understand what 19 years of the “Principles of ‘BlockChain’” body of knowledge created:

The MQCC™: An organization of "Firsts", starting first with the Finance Sector, including:

• +First developer of BlockChain systems, technology, services and products in Finance (2001 onward); designed to assure National and International Standards-Class of conformity to statutory, regulatory and process requirements for regulated organizations and regulated processes. REGULATOR-PROOF your Business Operations.

• +Developer of the world's first meta-BlockChain protocol; an inherently "non-mining" solution. FYI: The "mining solution" was created over 4 years after the MQCC BlockChain protocol.

• +Inventor of the First Application of BlockChain-in-Finance; serving the global community since at least before April 9, 2005.

• +Inventor of the world's first BlockChain quality management system (BQMS™) and certified BlockChain quality management system (CBQMS™) - trademark branded as the MQCC uQMS™ Unified Quality Management System - registered to ISO 9001:2000, ISO 9001:2008, ISO 9001:2015; and the latest version: Quantum Unified Quality Management System™ QuQMS™ trademark brand.

• +Developer of the MQCC BlockChain Conformity Management System (BCMS™) Standards.

• +Inventor of the world's first Secure Risk-Based meta-Operating System.

• +Inventor of the world's first BlockChain platform network (MQCC BlockChain aka MQCC Network) registered to the international standard of Quality Management Systems since May 9, 2008.

• +Developer of the first commercially available, pan-industry, pan-functional, self-correcting, regulator-audited, hybrid-regulated, enterprise level, top-to-bottom (T2B) and end-to-end (E2E), Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance global, interoperable, meta-operating system built on MQCC™ Blockchain Principles (The technical title is the "Bungay Unification of Quantum Processes Algorithm") first identified by MQCC's founder: Anoop Bungay (2005 onward). Read every page of "authoritative encyclopedic referenceBlockChain.com" to learn more.

• +Inventor of the world's first National and International Standards-class, global, Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow credit intermediation & financial system; based upon MQCC Transmundane™ version of the World's first "global meta-operating system"; for 119 countries.

• + Developer of the world's first 12 Year old, BlockChain-based, Regulatory-Integrated, USA DoD Conforming, Rules-Based ,Global Internet Sub-network of Autonomous and Heterogeneous Federation of Systems (FOS) and System of Systems (SOS) designed for regulatory bodies, regulatees and the public whom both serve.

• +Developer of the world's first "open banking systems" protocol that integrates the "Principles of 'BlockChain'" with a pan-industry, pan-functional, self-correcting, regulator-audited, hybrid-regulated, enterprise level, top-to-bottom (T2B) and end-to-end (E2E), Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance global, interoperable, meta-operating system.

• +Inventor of the world's first National and International Standards-class, global, institutional credit intermediation & financial system; based upon MQCC Transmundane™ version of the World's first "global meta-operating system"; registered to the National Standard of 119 countries for Quality Management Systems.

• + World's first functioning System of System (SOS) and Federation of Systems (FOS) integrated meta-system structure; independent autonomous organizations inter-operating with other organizations on the basis of consensus-based rules, not technology, resulting in the utmost levels of autonomy, heterogeneity and independent control.

• +Developer of the world's first "application of "Principle's of 'BlockChain'" in commerce with seminal, functional-level, knowledge base including: ontology; and seminal controlled language (vocabulary), including: taxonomies, thesauri, terminology; concepts; principles; formulas; theorems, logic, proofs and related, 'first-level' core knowledge.

• +World's First integrated Principles of 'BlockChain'"-based system-network built on higher-level, consensus-based system standards and competency standards resulting in higher states of integrity and quality.

• +Developer of the world's first conformity system ontology based upon multi-discipline convergence of science, engineering, law and finance.

• +Developer of the world's first litigation tested meta-operating system; litigation tested by member organizations of the ICLR (International Conference of Legal Regulators) in 2013, for a transaction originated in 2010.

• MQCC: Tested by Lawyers; Trusted by Lawyers™

• +Developer of the world's first integrated, unified, governance-function, legal-function and operation-function based BlockChain protocol, within a Quality Management System layer.

• +Developer of the world's first "proof-of-quality" (POQ™) token process.

• +Developer of the MQCC "Highest and Best System State™" Standards

• +Inventor of the world's first Defense Standard, Military/Law Enforcement-Grade, NIST (National Institute of Standards and Technology) Framework Core-Standard, Integrated Policies & Procedures (IPP™) Cybersecurity Core BlockChain System (MQCC IPP™ Cyberlockchain™) & Engineered Privacy BlockChain algorithm.

• +Developer of the world's first "global sandbox" meta-operating environment that may be customized to "enforce compliance" to principles, guidelines and standards of the United Nations (UN), World Trade Organization (WTO), Organisation for Economic Cooperation and Development (OECD), International Organization for Standardization (ISO) and more.

• +Developer of the world's National and International Standards based, safest peer-to-peer (P2P)/private/crypto/secret/shadow financial syste

• +Developer of the world's first "cold-crypto" network integration protocol, for traditional "hot crypto" networks.

• +Developer of the Two-Phase Trust™ 2PT™ Protocol that underpins a good blockchain.

• +Developer of the Bungay TITO™- Squared (TITO²) Truth Trust Protocol: a "Truth In Truth Out" protocol which creates a "Trust In Trust Out" system.

• +First developer of a commercially available, fully regulated, enterprise level, top-to-bottom (T2B) and end-to-end (E2E) , global institutional banking and finance meta-operating system (2005 onward).

• +First & only developer of the world's oldest, safest and most trusted crypto- and noncrypto financial system continuously registered to ISO 9001:2000, ISO 9001:2008, ISO 9001:2015. Bringing quality, transparent, accountable and efficient methods and process to ANY financial transaction between industry and consumer (2008 onward).

• +Developer of the world's first pan-jurisdiction (national and international) harmonized regulatory BlockChain protocol, assuring "cross-border" conformity of disparate regulations on a digital basis (digital conformity)..

• +Developer of the world's first self-learning/self-correcting system built on and in AI (artificial intelligence) algorithm-based ecosystem. With component systems built on the meta-operating system MQCC (R)evolution.

• +Developer of the world's first Intellectual Property Utility Token protocol MQCC InPUT™

• +Developer of the world's first "systems-level AI" (artificial intelligence/computer intelligence) functional, self-learning, self-correcting system & technology designed at an organization level, for a high-quality, 'overarching system of control' for management of complex and critical projects. MQCC proprietary "Systems Learning" (SL) proprietary knowledge-base is beyond machine learning (ML) , Deep Learning (DL) and Neural Networks (NN).

• +Developer of the world's first "self-learning management system" and "self-learning quality management system" built on "Principles of 'BlockChain'" and "AI".

• ++ Developer of the technology neutral "open commerce standard" extension (.ocst™) protocol and the OurCompanyPlan.com™ .ocp™: Active BlockChain Corporate Data Electronic File™ (ABCDEF™) Standard.

• +Developer of the globally recognized "Certified BlockChain System CBCS™ Standards".

• +Developer of the world's first (deployed in 2008) "Governance & Operating Decentralized System" (MQCC GODSNET™) deployed on a Federation of System (FOS) network (MQCC FOSNET™) interoperable with a System of Systems (MQCC SOSNET™) subordinate network. MQCC GODSNET™ is a secure, Federal Government Recognized, Canadian and USA Department of Defense-grade, National and International standards-class, easy-to-deploy, cost-efficient, technology neutral, overarching system of command, control and quality (CCQ™), designed to assure the highest level of transparent, measurable and sustainable good governance practice, effectiveness, trust and confidence within Government-Regulator-Regulatee organizations for the benefit of General Public /Constituents. The proven, 12 year old MQCC FOSNET™ helps federal, provincial and civic governments realize Canada's Federal Directive on Regulations (public policy) because it is built from the ground-up on seminal "Principles of 'BlockChain'" - first discovered by the Founder of MQCC between 2001 and 2005) - and enables independently managed Regulators (Regulatory Body) within any discipline or industry group to coexist with other independently managed Regulators (Regulatory Body) within other disciplines or industry groups; and enables all Regulators to create and manage their own respective System of Systems (SOS) Network (MQCC SOSNET™) comprised of decentralized autonomous organizations (MQCC DAO™) or Regulatees (Regulated Entities) within a rules (policy) based environment. Both the MQCC FOSNET™ and the MQCC SOSNET™ are built with National and International equivalent Quality Management System standards and incorporate best-in-sector governance industry (public administration) practice protocols allowing for all parties (Regulator and Regulatee) to function in a manner that conforms to statutory, regulatory, shareholder (government or investor) and customer (government, general public/constituent or corporate) requirements. The MQCC FOSNET™ has no central authority and each member Regulator (Regulatory Body) functions independently in accordance with their constating requirements to their shareholders, normally, a Government Ministry or Government Department. The MQCC SOSNET™ is hierarchical in nature (Regulator over Regulatee) and a customizable level of interoperability and integration to allow for regulated audit, regulated disclosure and reporting while maintaining high levels of regulated privacy, regulated anonymity and regulated autonomy. While MQCC SOSNET™ has hierarchical relationships, there is no central authority and direction, each Regulated Entity (Regulatee) has its own independent management and purpose based upon a set of applicable rules. Both MQCC FOSNET™ and MQCC SOSNET™ incorporate, measurable, consensus-based National and International Quality Management System standards (recognized in at least 119 countries), so Regulators (Regulatory Bodies) can prove to their stakeholders (Government, Shareholders, General Public, and the Regulatees whom they regulate) that they function in a manner that certifiably conforms to statutory, regulatory, process, customer and National Quality Management System requirements for its intended scope of Regulatory Operations. Obversely, Regulatees (Regulated Entities) can also prove to their respective stakeholders (Government, Shareholders, General Public/Constituents, and the Regulators who regulated them) that they, too, function in a manner that certifiably conforms to statutory, regulatory, process, customer and National Quality Management System requirements for their intended scope of Regulated Operations. Effectively, MQCC has developed a Regulator Operating System (MQCC ROSOR™) and a Regulatee Operating System (MQCC ROSEE™). When the General Public Constituents within a jurisdiction understand that both their Regulatory Bodies and Regulated Bodies function within a Regulatory Governance Framework recognized by the Federal Government to conform to their countries highest standards of Quality Management Systems - standards which transform both Regulator and Regulatee into "better, safer and more efficient" entities - the General Public/Constituents will experience the highest degree of trust and confidence in their Government's stewardship of the Regulatory Environment within their jurisdiction.

• +Developer of the "lossless commerce" and "lossless investing principles"; pursuant to discovery of the "Principles of 'BlockChain'".

• +Developer of the "NOCLAR - NOPROBLEM™" MQCC™ BlockChain subsystem application; the world's first system for organizations who employ third party, fiduciary-standard, independent auditors whose role is to ensure conformity to statutory and regulatory (laws and regulations) requirements; and report instances of non-conformity to laws and regulations (NOCLAR.org) to fourth parties including: boards of directors, shareholders, regulatory bodies, law enforcement entities.

• +Developer of the world's first commercially available MQCC Quantum BlockChain Framework™ for transforming "classical organizations" into safer, better and more efficient, "quantum organizations". Quantum Computing Ready: once user-friendly technology is made available, the classical MQCC process algorithms can be converted to quantum MQCC process algorithms on future MQCC Quantum™ server appliances.

• +Developer of MQCC Quantum™ Management Excellence: A methodology for early adopting Multinationals, to have a have permanent - MQCC BlockChain-based systems - that offer quantum competitive advantage; including: organization resiliency, increased profitability, permanent loss/waste prevention and continuous improvement.

• + Developer of a BlockChain-based protocol to demonstrably achieve six sigma level 6 or higher (7) in financial organizations. Registered to the National Standard of 119 Countries.

• Please take the time to read this entire website for all the proof you might need. You may need to register and pay a fee for access to intellectual property.

• + Developer of the Globally Trusted NISC™ Designation for Environments and Professionals (National Standards-Class and International Standards-Class)

• +Developer of the world's first learning space (based in Calgary, Alberta, Canada) to impart the "Principles of 'BlockChain'" subject pedagogy; integrating Blooms taxonomy for classification educational goals; and a systems-level curriculum based upon the DACUM method and SCID method. A rigorous multi-year program that incorporates the scholarly method with real-world activities within the MQCC System-Network active environment.

Proven BlockChain based Quality-in-Finance is limited and therefore at a premium.

You have not heard of a company like MQCC™ before, because it has not existed before.

Here to Serve You™

Expertise (Legal Standard) of Anoop Bungay

Pursuant to the legal standard of generally accepted rules of competence, and expert evidence, Anoop Bungay, the individual who first applied the principles of “BlockChain” to a peer-to-peer electronic financial system for unregulated or regulatory market-exempt (free-trading) securities, is considered an expert in the fields of:

• Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow Finance

• Conformity Science

• Principles of BlockChain

• Defense Standard (Military & Law Enforcement Grade) Quality Management Systems

• Quantum Organization Unification Theory of Enterprise (QUOTE™^[94]) and Practice of Meta-Operating Systems

This is not an exhaustive list.

While the primary research, developed since pre-2001 and present-day is not publically available, the commercial businesses borne of the primary research are going concerns and litigation tested. Namely:

• MortgageQuote Canada Corp. - Financial Products

• The MQCC Money Quality Conformity Control Organization - Conformity Science related technology, systems, products and services.

UK Common Law Standard and UK Law Commission Recommended Standard

UK Common Law Standard

Excerpt from “Expert Evidence in Criminal Proceedings in England and Wales” prepared by the Law Commission of UK^[95]:

2.1 Four requirements relating to the admissibility of expert evidence in criminal proceedings have developed at common law, principally with reference to expert opinion evidence.

2.2 In this Part we first provide a summary of these requirements (“assistance”, “relevant expertise”, “impartiality” and “evidentiary reliability”) and then set out our view on whether they apply, and whether they should apply, to expert evidence of Fact.

In addition to the UK Common law standard, the UK Law Commission recommended additional standards, include three “tests” described in a draft bill entitled: “Expert Evidence in Criminal Proceedings in England and Wales HC 829”^[96].

United Kingdom (UK) Draft (unenacted) Bill: Recommended Standard by the UK Law Commission regarding: Expert Evidence in Criminal Proceedings in England and Wales HC 829

THE QUALIFICATION (EXPERTISE) TEST

Of the three tests:

• The Turner Test

• The test merely requires that the court (the trial judge or magistrates’ court) be “satisfied” that the expert evidence “is likely” to be outside a judge or jury’s experience and knowledge and that the evidence would provide help. This is not a requirement which would need to be proved^[97].

• The Qualification (Expertise) Test

• Clause 1(1) of our draft Criminal Evidence (Experts) Bill also provides that expert evidence is admissible in criminal proceedings only if –
  (b) the person who gives it is qualified to do so …

• 4.16 Clause 2(1) provides that, for the purposes of clause 1(1)(b), “a person may be qualified to give expert evidence by virtue of study, training, experience or any other appropriate means”. Clause 2(2) provides that, for that person’s evidence to be admissible, the court “must be satisfied on the balance of probabilities that [he or she] is so qualified”.

• 4.17 This standard of proof provides the minimum acceptable level of knowledge, experience or skill which must be established before an individual can provide expert evidence. The extent of the expert’s expertise beyond this minimum threshold goes to weight. That is to say, all other things being equal, the greater the level of expertise borne by an expert witness, the more likely it is that the fact finding tribunal will accept his or her evidence^[98].

• The Impartiality Test

• the starting point is that there is a presumption of impartiality, based on
  the common-sense assumption that expert witnesses generally tend to
  comply with their duty to the court^[99].

General UK Comment

3.6 We proposed that there should be a new admissibility requirement along the following lines^[100]:

(1) The opinion evidence of an expert witness is admissible only if the court is satisfied that it is sufficiently reliable to be admitted.

(2) The opinion evidence of an expert witness is sufficiently reliable to be admitted if:–

(a) the evidence is predicated on sound principles, techniques and assumptions;

(b) those principles, techniques and assumptions have been properly applied to the facts of the case; and

(c) the evidence is supported by [that is, logically in keeping with] those principles, techniques and assumptions as applied to the facts of the case

Definition of “what is” Relevant Expertise

According to the Law Commission of UK, “Expert Evidence Report”^[101] respecting the “relevant expertise” of a prospective expert: The individual claiming expertise must be an expert in the relevant field. This was described in the South Australian case of Bonython^[102] as a requirement that the individual “has acquired by study or experience sufficient knowledge of the subject to render his [or her] opinion of value”^[103], a description which has found favour in England and Wales.^[104]

Further, the Law Commission of UK, “Expert Evidence Report”^[105] states:

Generally speaking, it is the expertise itself which determines whether this admissibility requirement is satisfied, not the route by which the expert came to have it.^[106] A recent judicial comment suggests, moreover, that the threshold for demonstrating expertise is quite low.^[107] Against those points, however, it should be noted: first, that the threshold cannot (we suggest) be any lower than a requirement of proof on the balance of probabilities; secondly, that amateurs are not qualified to give some types of expert evidence;^[108] and, thirdly, that explicit guidelines for determining expertise are now being formulated for certain scientific fields.^[109]

In UK: Registration of the System which embodies the technology, services and products related to Anoop Bungay’s discovery and inventions, to ISO 9001:2001, ISO 9001:2008, ISO 9001:2015: The Basis for Demonstrating “Evidentiary Reliability”

According to the Law Commission of UK, “Expert Evidence Report”^[110] respecting “evidentiary reliability”:

The expert’s opinion evidence must in other respects satisfy a threshold of acceptable reliability.^[111] The existence of a further common law admissibility requirement of some sort can be discerned from the cases where the Court of Appeal (Criminal Division) has:

(1) held that the field of expertise must at least be “sufficiently well established to pass the ordinary tests of relevance and reliability;”^[112]

(2) cited the admissibility test for expert opinion evidence in Bonython which has a reliability component, albeit one which has never been properly analysed in England and Wales; and

(3) suggested a particular type of reliability test.

USA Standard

Federal Rules of Evidence › ARTICLE VII. OPINIONS AND EXPERT TESTIMONY › Rule 702^{[113] [114]}

Rule 702: Testimony by Expert Witnesses

A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if:

• the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;

• the testimony is based on sufficient facts or data;

• the testimony is the product of reliable principles and methods; and

• the expert has reliably applied the principles and methods to the facts of the case

1923 - The Frye standard (superseded by the Federal Rules of Evidence)^[115]

Prior to the ruling by the US Supreme Court (In Daubert v. Merrell Dow Pharmaceuticals, 509 U.S. 579 (1993)) the Frye standard for expert testimony was followed, and still applies in some US States.(FRYE v.UNITED STATES. 293 F. 1013 ( D.C.. Cir 1923))^{[116] [117]}

The rule is that the opinions of experts or skilled witnesses are admissible in evidence in those cases in which the matter of inquiry is such that inexperienced persons are unlikely to prove capable of forming a correct judgment upon it, for the reason that the subject-matter so far partakes of a science, art, or trade as to require a previous habit or experience or study in it, in order to acquire a knowledge of it. When the question involved does not lie within the range of common experience or common knowledge, but requires special experience or special knowledge, then the opinions of witnesses skilled in that particular science, art, or trade to which the question relates are admissible in evidence.

Numerous cases are cited in support of this rule. Just when a scientific principle or discovery crosses the line between the experimental and demonstrable stages is difficult to define. Somewhere in this twilight zone the evidential force of the principle must be recognized, and while courts will go a long way in admitting expert testimony deduced from a well-recognized scientific principle or discovery, the thing from which the deduction is made must be sufficiently established to have gained general acceptance in the particular field in which it belongs.

1993 - Rule 702 Amendment:^[118] The Daubert ruling (standard); Daubert v. Merrell Dow Pharmaceuticals, Inc.^[119]

This is the standard used by a trial judge to assess whether an expert witness’s scientific testimony is based on scientifically valid reasoning that which can properly be applied to the facts at issue. This standard comes from the Supreme Court case, Daubert v. Merrell Dow Pharmaceuticals Inc., 509 U.S. 579 (1993)^[120] and supersedes the Frye standard.

Under the Daubert standard, the factors that may be considered in determining whether the methodology is valid are:^[121]

• whether the theory or technique in question can be and has been tested;

• whether it has been subjected to peer review and publication [though not required];^[122]

• its known or potential error rate;

• the existence and maintenance of standards controlling its operation; and

• whether it has attracted widespread acceptance within a relevant scientific community.

The Daubert standard is the test currently used in the federal courts and some state courts. In the federal court system, it replaced the Frye standard, which is still used in some states.^[123]

The primary locus of this obligation is Rule 702 [governing expert testimony], which clearly contemplates some degree of regulation of the subjects and theories about which an expert may testify. "If scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue" an expert "may testify thereto." The subject of an expert's testimony must be "scientific . . . knowledge." Footnote by Justice Blackmun regarding “technical, or other specialized knowledge."

Canada Standard

R. v. Mohan

In 1994, the Supreme Court of Canada, in R. v. Mohan, set out the following general criteria for the admissibility of expert opinion evidence:

1. The evidence is relevant to some issue in the case;

2. the evidence is necessary to assist the trier of fact;

3. the evidence does not violate an exclusionary rule; and

4. the witness is a properly qualified expert.^[124]

A court must also weigh the benefits of the evidence against its potential costs (probative value versus prejudicial effect). An important factor in assessing the benefit of the evidence is its reliability, including:

• the extent to which the scientific theories on which it is based are accepted in the
  relevant scientific community;

• the potential rate and nature of errors associated with a scientific technique relied
  Upon; and

• whether the scientific technique or theory has been tested via the scientific method.

It should be noted that, for “non-novel science”, evidence must be “necessary”, but for “novel” or “junk” science Mohan has established that the evidence must be “essential”.^[125]

The main cost is the prospect of uncritical acceptance of the opinion by the trier of fact. Especially:

• if the scientific theory cannot be explained clearly;

• if there is no realistic opportunity of an opposing party conducting independent tests

• or calling experts in reply or;

• if the evidence could be presented in less conclusive or inflammatory terms than
  proposed.

Anoop Bungay Prior Expert Analysis History

[SEE TEXTBOOK: ORIGIN OF A SPECIE™]

Anoop Bungay Primary Research: Comment regarding Validity and Reliability

An additional footnote re: Validity and Reliability in Daubert v. Merrell Dow Pharmaceuticals Inc., 509 U.S. 579 (1993):

“We note that scientists typically distinguish between "validity" (does the principle support what it purports to show?) and "reliability" (does application of the principle produce consistent results?). See Black, A Unified Theory of Scientific Evidence, 56 Ford. L. Rev. 595, 599 (1988). Although "the difference between accuracy, validity, and reliability may be such that each is distinct from the other by no more than a hen's kick," Starrs, Frye v. United States Restructured and Revitalized: A Proposal to Amend Federal Evidence Rule 702, 26 Jurimetrics J. 249, 256 (1986), our reference here is to evidentiary reliability--that is, trustworthiness. Cf., e. g., Advisory Committee's Notes on Fed. Rule Evid. 602 (" `[T]he rule requiring that a witness who testifies to a fact which can be perceived by the senses must have had an opportunity to observe, and must have actually observed the fact' is a `most pervasive manifestation' of the common law insistence upon 'the most reliable sources of information.' " (citation omitted)); Advisory Committee's Notes on Art. VIII of the Rules of Evidence (hearsay exceptions will be recognized only "under circumstances supposed to furnish guarantees of trustworthiness"). In a case involving scientific evidence, evidentiary reliability will be based upon scientific validity”.^[127]

Peer Review and Publication of Anoop Bungay’s Primary Research is Not Required

• “Proof is the implementation within an international commercial enterprise.”

• Secondary proof is the registration to ISO 9001:2000, ISO 9001:2008 and the risk-based ISO 9001:2015 with third party audit by accredited auditors or accredited authorities.

Pursuant to Footnote 59 of The Law Commission Consultation Paper No 190: “THE ADMISSIBILITY OF EXPERT EVIDENCE IN CRIMINAL PROCEEDINGS IN ENGLAND AND WALES A New Approach to the Determination of Evidentiary Reliability A Consultation Paper”^[128], published by the Law Commission of the United Kingdom,^[129] Rule 702 and scientific evidence Daubert v. Merrell Dow Pharmaceuticals, Inc.

509 U.S. 579 (1993), 593. Karl Popper’s view (see, eg, The Logic of Scientific Discovery, 4th ed, 1980) was that the scientific method is underpinned by a principle of falsifiability or refutability; that is to say, generating hypotheses and testing them by experimentation or observation to see whether they are false (for the problem of induction holds that propositions as to the workings of the universe inferred from experience cannot be proved to be true). If a given hypothesis does not stand up to experimental scrutiny it will be reworked into a new hypothesis which will again be tested, and so on, producing successively better approximations to “truth”.

A hypothesis which repeatedly withstands experimental scrutiny will be regarded as corroborated but not proven, and so come to be generally accepted by the relevant scientific community, perhaps achieving the grand status of a scientific “theory” or even a scientific “law”.

Excerpt from Daubert v. Merrell Dow Pharmaceuticals, Inc.^[130]

60 509 US 579 (1993), 593 to 594. The Court’s view was that, while submission to the scrutiny of the relevant scientific community is a component of good science, because (amongst other things) it increases the likelihood that substantive flaws in methodology will be detected, publication is not to be regarded as a necessary requirement of admissibility. An innovative but nevertheless well-grounded theory may not have been published.

Extract from Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993)

Another pertinent consideration is whether the theory or technique has been subjected to peer review and publication. Publication (which is but one element of peer review) is not a sine qua non of admissibility; it does not necessarily correlate with reliability, see S. Jasanoff, The Fifth Branch: Science Advisors as Policymakers 61-76 (1990), and in some instances well-grounded but innovative theories will not have been published, see Horrobin, The Philosophical Basis of Peer Review and the Suppression of Innovation, 263 JAMA 1438 (1990). Some propositions, moreover, are too particular, too new, or of too limited interest to be published. But submission to the scrutiny of the scientific community is a component of "good science," in part because it increases the likelihood that substantive flaws in methodology will be detected.^[131] See J. Ziman, Reliable Knowledge: An Exploration.^[132]

A Global Misunderstanding is Not Surprising

This global misunderstanding is not surprising because the objects or phenomena conceptualized as ‘BlockChain’, distributed/decentralized ledger and related ideas are commonly understood to have emanated from a set of programmatically coded rules that appeared deus ex machina, out of nowhere, in the form of an executable, alpha-state, experimental software program written in the computer language of C++, to create “peer-to-peer electronic cash system” for the transfer of payments, in January 8, 2009^[133]. And over the course of seven (7) years, slowly and recently, captured the attention of the world, most notably in 2017^[134]. And because the nebulous history of the “peer-to-peer electronic cash system”, most people were afraid to go near it.

With this book, the “world” will learn that when this independently created^[135] “peer-to-peer electronic cash system” appeared, it actually or ostensibly become nothing more than subordinate routine or a subsystem of a larger, pre-existing, commercially available, peer-to-peer electronic finance system-network^[136], ^[137] which was over five (5) years old by January 8, 2009. Further, six (6) months earlier (on May 9, 2008), the pre-existing peer-to-peer electronic finance system-network quality management subsystem earned registration to the globally trusted and respected, rigorous National and International Quality Management System (QMS) standard of at least 119 countries, namely ISO 9001:2000^[138]. The QMS was independently audited by members of two of the most prestigious organizations of their kind: the internationally respected and trusted International Accreditation Forum (IAF); and, the equally respected and trusted: American National Standards Institute (ANSI), ANSI National Accreditation Board (ANAB) based in the United States^[139].

Finally, the pre-existing, peer-to-peer electronic finance system-network is built on a combination of principles and rules that meet or exceed various recommended, endorsed or established requirements, guidelines and best practices by the World Trade Organization (WTO), the Organisation for Economic Co-operation and Development (OECD) and the United Nations Chief Executives Board for Coordination (CEB), International Organization for Standardization (ISO)^[140].

The purpose of this document is to introduce the “world” to the origins of the Bungay Unification of Quantum Processes Algorithm also represented as the “Principles of ‘BlockChain’”; from at least as early as 2001 to present day (2019); and to show you how simple it is, how powerful it is, how stable it is and how comprehensive it must be, in order to effectively function.

Finally, the rules that created peer-to-peer electronic cash system, unlike the principles that create the peer-to-peer electronic finance system-network, are subject to change and already have changed. There are new forms of peer-to-peer electronic cash systems being created every day. What has not changed, are those things that are largely unknown: the “Principles” that created the world’s first peer-to-peer electronic finance system-network or correctly known as:

The world’s first system-network for trading in non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading securities and related financial instruments; transacted on a Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow basis.

When it comes to the difference between rules and principles, the United States of America President Franklin Delano Roosevelt said it best during his Radio Address to the Young Democratic Club (and the youth of the Republican party^[141]) of America on August 24, 1935:

Rules are not necessarily sacred; principles are^[142].

Finally, while there are many reasons this book is being written today - and remember - MQCC and Bungay International Inc. have been commercially doing peer-to-peer finance for over 17 years; ask yourself, would you have paid attention 10 years ago? MQCC was around then. What about five (5) years ago? MQCC was around then. Now that some of you have made money, the majority of you have most likely lost money, take the time to find out what the “Principles of ‘BlockChain’” are, what they have done (created a frictionless system of trust (SOT™)) and what more they will do.

Don’t Worry: Journalists or Members of the International Federation of Journalists (IFJ), Members of the International Science Council (ISC), Members of the Bank for International Settlements (BIS) and Members of the International Organization of Securities Commissions (IOSCO) also Unrecognized the Very Public Origins

A look through the articles registry in the Appendix of this book: MQCC™ Global Public BlockChain/Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow Knowledge Register of Articles & Entities (Responses) will show you that the mundane origins of “electronic peer-to-peer finance”, “blockchain”, “utility token”, “securities token” is largely unrecognized. The goods news with inventing the world’s first “Principles of ‘BlockChain’” commercial business is that all claims are (among other things) traceable, verifiable and immutable.

Some notable misunderstandings:

• Not recognizing that “pool-to-peer” (also known as ‘crowdfunding’^[143]) business model companies are not “peer-to-peer” business model companies because the former trades in what are largely regulated securities and the latter trades in what are largely non-regulated securities^[144].

• Once it made sense of “what was going on” the United States Securities Commission (SEC®) immediately grasped the understanding of the securities-regulated activity of “pool-to-peer” lending companies passing off (presenting themselves in a misdescriptive or deceptively misdescriptive manner^[145]) as “peer-to-peer” lending companies, immediately invoked corrective action as early as November 24, 2008 through cease-and-desist orders.^[146]

• Pooled funds in the form of payment dependent notes^[147] or similar financial instruments do not meet the generally accepted definition of what is a “peer-to-peer” financial instrument^[148] in terms of ingredient, quality, characteristic, function, feature, purpose, or use^[149].

• Regrettably, the moniker of “peer-to-peer” continues to be used, which is one of the reasons for writing this book; to officially correct the public record on the difference between “pool-to-peer” and “peer-to-peer”.

• And this correction matters more than you think because the world’s first peer-to-peer electronic finance system-network became registered to the National and International Quality Management System standard ISO 9001:2000^[150] on May 9, 2008^[151], seven (7) months before the SEC® shut down an actual or ostensible “pool-to-peer” business company passing off as a “peer-to-peer” business model company.

• The implication is clear: to be registered as an ISO 9001:2000 company, means that your business model conforms to applicable statutory, regulatory, process, customer and stakeholder requirements, so any company that does not fit the profile cannot be classified as the same. On May 9, 2008, MQCC became the de facto benchmark for all aspects including Quality Management Systems, of peer-to-peer electronic finance. Inclusive of its subordinate concepts: “Bungay Unification of Quantum Processes Algorithm”, also represented as the “Principles of ‘BlockChain’”; “Distributed/Decentralized Ledger”; “Utility Tokens”; “Securities Token”; “Intellectual Property Tokens”; “Quality Tokens”; “Proof of Work”; “Proof of Record” and more^[152].

• Registration of the MQCC peer-to-peer electronic finance-network to ISO 9001:2000 on May 9, 2008 actually or ostensibly transformed MQCC to the global de facto benchmark for all aspects including Quality Management Systems, of peer-to-peer electronic finance-network in at least 119 countries for:

• Standards-based consumer expectations

• Government-regulatory best-practice

• Commercial best-practice

because the ISO 9000 family of Quality Management System standards are adopted as National Standards in at least 119 countries, including, Canada, USA, Australia, UK, China, India, Russia, Finland, Peru, Nigeria, Saudi Arabia, Botswana, Malaysia, Fiji^[153].

• Indeed regulatory bodies including securities regulators like the United States Securities and Exchange Commission and the Canadian Members of the Canadian Securities Administrators are encouraged by their respective federal governments. For example:

• United States of America

• ...with the approval of the National Technology Transfer and Advancement Act (NTTAA) of 1995 (Public Law 104-113), federal agencies [Authors note: like the SEC® - A member of the International Organization of Securities Commissions (IOSCO)^[154]] are encouraged to utilize voluntary consensus standards where feasible and to participate as appropriate in voluntary consensus standards development activities.^[155]

• Canada

• Pursuant to Canada’s Cabinet Directive on Regulation^[156], Sub Clause^[157] 5.2.5 regulatory cooperation: assessment should also include a review of work undertaken by international standard development organizations for possible incorporation by reference.

• Which is consistent with the Canadian Federal Legislation: Standards Council of Canada Act^[158] which involves Ministers from all Canadian Provinces and Territories.

• And consistent with the Canadian Free Trade Agreement (CFTA)^[159] whose goal is to align regulatory frameworks between federal-provincial-territorial bodies.

• And finally the Cabinet Directive on Regulation becomes implemented in real-world practice in Canada with bodies like the financial regulatory members of the Canadian Securities Administrators^[160], whose members consist of members of the International Organization of Securities Commissions (IOSCO) and whose goals under the Provincial/Territorial Memorandum of Understanding Regarding Securities^[161] include:

• work closely together to develop and sustain a provincial/ territorial framework for securities regulation that inspires investor confidence and supports competitiveness, innovation and growth;

• commitment to explore, on an ongoing basis, new opportunities to strengthen the Canadian securities regulatory framework.

• The Bank of Canada published a report on December 14, 2015, over seven (7) years after the United States Securities and Exchange Commission SEC® recognized that companies are actually or ostensibly passing off as peer-to-peer lenders by engaging in the “business of loans” capitalized through pooled financial instruments like payment dependent notes; and these companies are actually or ostensibly NOT “peer-to-peer” entities, but rather “pool-to-peer” (pooling funds from the public market) and therefore subject to securities regulation; which, necessarily, a correctly identified “peer-to-peer” investor-lender, is not. This position that “pool-to-peer” is the same as “peer-to-peer” was further confirmed by US SEC® Commissioner Luis A. Aguilar in a speech entitled The Important Role of Immigrants in Our Economy at the 2013 Annual Gala, Georgia Hispanic Chamber of Commerce, Atlanta, Georgia on May 18, 2013^[162]; Commissioner Aguilar expressed his personal view^[163] that:

• Currently, crowdfunding [Pool-to-Peer] may not be used to sell company shares in the United States. Under current laws, that would be a public offering and would require registration with the SEC, a process that, admittedly, can take time and money, but is designed to inform and protect investors. With the following very important footnote:

• To the extent properly structured, the business of “peer-to-peer” lending (a form of crowdfunding for debt capital) may be conducted in the U.S. without registration under the Securities Act of 1933 or the Securities Exchange Act of 1934.

• Although you can see that Commissioner Aguilar also did not recognize that the term “peer-to-peer” is not synonymous with the term “crowdfunding” given the prior litigation history of the SEC® on the matter. No problem; once again, this is why (among other reasons) this book is written; to correct current misunderstanding and prevent future misunderstanding.

• Now, back to the Bank of Canada, a member of Members of the Bank for International Settlements (BIS)^[164].

• Disclaimer: the Author, Anoop Bungay and MQCC™ Money Quality Conformity Control Organization incorporated as MortgageQuote Canada Corp. have a direct and indirect relationship with one another because of the following:

• On Thursday, October 20, 2016, MQCC invited the Bank of Canada through its Agency Operations Centre division Management to Join the Certified Quality Management-in-Finance Association CQMFA™ (CQMFA.org) founded by MQCC; more about this in a later section.

• The Bank of Canada - at a divisional level - is registered to the risk-based Canadian National Standard^[165] and International equivalent Quality Management System Standard ISO 9001:2015, just as MortgageQuote Canada Corp. is registered to the same risk-based International Quality Management System Standard ISO 9001:2015, but for a different scope.

• The Bank of Canada scope of ISO 9001:2015 registration covers “Processing and distribution services.”^[166]

• The MortgageQuote Canada Corp. scope of ISO 9001:2015 registration covers “Provision of mortgage banking (“lending” in Canada) and mortgage brokerage services.”^[167]

• The Bank of Canada switched one of its vendors of third-party services, to one that has a pre-existing, long-standing relationship with MortgageQuote Canada Corp. End Disclaimer].

To start with it is not unreasonable to think that central bankers most likely do not follow the enforcement actions of other non-central bank financial regulators ie: the United States Securities and Exchange Commission SEC®; with this in mind, consider the following; in a December 2015 report entitled Financial System Review^[168] authored in part, by the Governor and Deputy Governor. Regrettably and most likely unintentionally, even as late as 2015, there remained a global misunderstanding of the very private and free-trading origins^[169] of non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading securities and related financial instruments; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow securities and related financial instruments; this misunderstanding is perfectly highlighted by the following two points:

• Peer-to-peer (P2P) lending is the practice of individuals lending money to other individuals through websites^[170].

• Authors note: Correct.

• In Canada, P2P lenders first appeared in late 2014^[171].

• Authors note: Incorrect.

• Coincidentally, the Bank of Canada is based in Canada’s capital city, Ottawa; in the province of Ontario, where MQCC has been trading in the Ontario-government-regulated business of peer-to-peer (p2p) lending and investing services as PrivateLender.org: Canada’s Private Lending Network™ since at least as early as January 7, 2009^[172].

• The International Science Councils ISC^[173] associate body: the International Council for Scientific and Technical Information ICSTI^[174] as late as 2018 hosted a knowledge seminar^[175] entitled Blockchain’ (sic) for Science. The “Principles of ‘BlockChain’” were described by the ISC/ISCTI as:

• This first complimentary online seminar in the ICSTI 2018 Webinar series, takes an in-depth look at the opportunities and potential changes in the world of scholarly communication that may be stimulated by Blockchain.

• Authors note: This book is an “indepth” look at the real origins, real opportunities and real change in the world of scholarly communication because the “Principles of ‘BlockChain’” helped to disintermediate the global academic community by going directly from discovery to commercialization and subsequent International Standards registration while bypassing traditional Scholarly Communicative methods.^[176]

• Blockchain is the technology behind Bitcoin and offers a peer-2-peer network for Trust that potentially can disintermediate traditional brokering authorities like banks, notaries, perhaps even publishers?

• Authors note: The “Principles of ‘BlockChain’” are not a technology^[177]; and the “peer-2-peer network for Trust” does not potentially disintermediate traditional brokering authorities like banks, notaries, perhaps even publishers (and even traditional brokers of knowledge: Scholars), the “peer-2-peer network for Trust” does actually disintermediate traditional brokering authorities like banks, notaries, publishers and the traditional brokers of knowledge: Scholars.

• As for the Journalists and sub-members of the Members of the International Federation of Journalists (IFJ); read the Appendix of this book entitled: MQCC™ Global Public BlockChain/Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow Knowledge Register of Articles & Entities (Responses) and see some of the articles (which you will need to find on your own), and see for yourself how Journalists have also misunderstood the origins of “peer-to-peer” finance, the “Principles of ‘BlockChain’” and related topic matter.

• Yours sincerely emailed a large number of journalists over the years; most notably in an omnibus notice sent to some leading journalists and academics which may be seen in Volume 1:Issue 1 of the International Journal of Conformity Science IJCS™ at ijcs.mqcc.org and is entitled:

• Introduction to MQCC.org and Clarification of a Journalistic Descriptive Claim regarding 'the "World's First" RE: An Application of the Principles of "BlockChain" in Commerce". April 9, 2005 Free Trading Securities of a Financial & Electronic Nature, Begins.^[178]

The implication of this section of the book is clear; most world leaders, scientists, thinkers and business leaders have gotten this wrong; at the highest levels. Do not worry if your current understanding of the world of “peer-to-peer finance”, “principles of ‘BlockChain’”, “utility token”, “security token’”, “conformity token”, “distributed/decentralized ledger”, “system of trust”, “ISO 9000” is not consistent with historical evidence and is quickly becoming deconstructed; while the commercialized phenomena is over 14 years old, the “world” only started getting interested in earnest, less than (5) years ago. A person cannot become even a Medical Doctor in five (5) years; so there is lots of time to learn. This book is one step in a “global corrective action” that started years ago by yours sincerely, but no one paid attention. Another reason, among many, that this book is written.

The “World” is “Inefficiently Expending” Valuable Money and Precious Time on an Incorrect Understanding: Walk don’t Run

“Inefficiently Expending” is polite term. Over a period of less than five (5) years^[179], globally, hundreds of millions of dollars of government, sovereign, private company and retail investor wealth and valuable personal time is hastily expended because of a fear of missing out (‘fomo”) and an incorrect focus on “technology” not “principles”. And worse; because trusting members of Top Management^[180] of organizations^[181] (CEOs, Presidents, Boards of Directors), Major Shareholders, Shareholders and retail investors are being bombarded with investment opportunities, technology upgrade opportunities or innovation consulting from people who are either “self taught”^[182], or have limited or no credentialed or practical experience in matters related to the subject matter of this book, including items listed in MQCC Table 1.

You are not Learning about Baking, Buying A Loaf of Bread or Investing in a Bakery: Not Wholly Visible

Have you ever seen a “BlockChain”? Have you ever touched a “binary digit securities token”? Have you ever seen all the places where a distributed ledger is actually located?

The subject matter of this book or First Edition authoritative encyclopedic reference, includes information on the origin of the discovery of the principles “BlockChains” [Bungay Unification of Quantum Processes Algorithm also represented as the “Principles of ‘BlockChain’”], “digital assets”, “utility tokens” and some of the items listed in MQCC Table 1. These items are not visible to you; you cannot wholly “see”, “hold” or “touch” a “BlockChain” or related terminological items, in specie or in their real, precise, or actual form^[183]. The implication is clear: if you cannot visualize an item or concept then you cannot, in a simple manner, determine if the item or concept conforms^[184] to your requirements as a customer, shareholder, investor, regulator, public official, policymaker, or prospective party. So, what do you do? As a start, do what yours sincerely learned to do: ask lots of questions and then implement a process of precise measurement, testing and control protocols.

What are the right questions and the precise measurement, testing and control protocols? Well, this book is only meant as an introductory authoritative encyclopedic reference, not the "main textbook"; whose working title is: Theories, Principles, Protocols, Laws, Math and Litigation-Tested Applications of the Bungay Unification of Quantum Processes Algorithm also represented as the “Principles of ‘BlockChain’” from August 14, 2001 to Present Day; which is not yet completed and will be much bigger than this book and will come one day (not sure when); nonetheless, the rest of the sections of this authoritative encyclopedic reference will give you an excellent idea; or, you can always contact MQCC and request a personal consultation - which is another reason for writing this book - to let you know MQCC is open for business to license its over 19 years of intellectual property, systems, technology, services and products.

A Defense-Standard, Military-Grade Problem Demands a Defense-Standard, Military-Grade Solution

In the early 2000’s when setting up the system, it was quickly discovered that when it comes to non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading securities and related financial instruments; transacted on a Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow basis, Bungay International Inc. (BII) is dealing in Top Secret, classified information. Specifically, what is called today: Personally Identifiable Information (PII)^[185]. This why international structures were created:

• PrivateLender.org: Canada’s Private Lending Network™/®

• PrivateLenderCheck.org

• MQCC.org Money Quality Conformity Control Organization

• OSBSO.org: Office of the Shadow Banking System Ombudsman/person

• And more. See Image A.

Image A: (next page)

Source MQCC Twitter Account (@mymortgagequote)

Visit www.mqcc.org to learn more about the international structures created.

And this is why there was a need to model best practice of organization and information command, control and quality (CCQ™) from the world’s best regulations and standards for command, control and quality, including but not limited to:

• United States Department of Defense (DOD)

• United States General Services Administration (GSA)

• National Aeronautics and Space Administration (NASA)

• International Standards Organization (ISO)

Learn from the Best: Seminal Experience Matters

How do you deal with concepts or innovations that are not wholly visible? Learn from the experts whom yours sincerely learned from: the United States Department of Defense (DOD), General Services Administration (GSA) and National Aeronautics and Space Administration (NASA). These three globally respected organizations collaborated to develop a nice terminology that best describes items that are not wholly visible, like the subject matter of this book, namely, the Bungay Unification of Quantum Processes Algorithm also known as the “Principles of ‘BlockChain’”; and the Birth of Binary Digit, Non-Bank, Non-Institutional, Non-Syndicated, Non-Regulated or Regulatory Exempt, Free Trading Securities and Related Financial instruments also known (because of the manner in which they are delivered) as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow Securities and Related Financial Instruments; “Principles of ‘BlockChain’”-based, Regulatory-Integrated, Risk-Based Systems, Technology, Services and Products; including many of the items listed in MQCC Table 1; the terminology is:

• Complexity

• Complex items have quality characteristics, not wholly visible in the end item, for which contractual conformance must be established progressively through precise measurements, tests, and controls applied during purchasing, manufacturing, performance, assembly, and functional operation either as an individual item or in conjunction with other items^[186].

If you are a public official, policy maker, regulator, member of an organization Top Management, shareholder, investor, business owner or retail investor and you want to purchase or invest in a “Principles of ‘BlockChain’” related matter, then how do you really know what you are getting if:

• What you are learning, buying or investing in, is not wholly visible.

• You - as the buyer or investor - did not establish contractual conformance through implementation of precise measurement, testing and control protocols.

People in leadership roles in the world do not have this precise, defense standard, military grade level of understanding because nobody, other than yours sincerely is talking like this. And why is that? Most likely because nobody, other than yours sincerely established the internationally accepted global standards and benchmark for trade related to the “Principles of ‘BlockChain’”.

Internationally Accepted Global Standard and Benchmark for Consumer Expectations: MQCC is the de facto Global Standard

Why? Because yours sincerely:

• First discovered the “Principles of ‘BlockChain’” through a natural process (between at least as early as August 14, 2001 and April 9, 2005; then,

• Abstracted and developed a Concept System for the “Principles of ‘BlockChain’” and its superordinate domain of science: Conformity Science; then,

• Researched the “Principles of ‘BlockChain’” using the scientific-method; then,

• Developed the “Principles of ‘BlockChain’”; then,

• Commercialized the “Principles of ‘BlockChain’” at least as early as April 9, 2005 at www.privatelender.org; then,

• Created a commercialized non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading securities and related financial instruments business tokenization system to be transmitted over a global computer network as least as early as April 9, 2005^[187].

• Created a commercialized Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow securities and related financial instruments business tokenization system to be transmitted over a global computer network at least as early as April 9, 2005^[188].

• Registered a subordinate Quality Management System consisting of

• Vocabularies

• Terminologies

• Ontologies

• Systems Architecture

• Reference Models, Reference Architectures, Reference Implementations

• Related Intellectual Property

to the International Quality Management System ISO 9001:2000, ISO 9001:2008 and ISO 9001:2015^[189].

• Maintained over 12 years of continuous registration to ISO 9001:2000, ISO 9001:2008 and ISO 9001:2015 from at least as early as May 9, 2008 until present day (September 2019)^[190].

• Satisfied over 12 years of independent audit from members of the internationally respected and trusted of American National Standards Institute (ANSI), ANSI National Accreditation Board (ANAB) based in the United States^[191].

• Satisfied over 12 years of independent audit from members of the internationally respected and trusted of International Accreditation Forum; with global members^[192].

• Satisfied over 12 years of independent audit from members of the internationally respected and trusted of United Kingdom Accreditation Service (UKAS), based in the United Kingdom of Great Britain and Northern Ireland^[193].

• Created a commercialized “Principles of ‘BlockChain’”-based system-network that conforms to the National Standard of at least 119 countries^[194].

• Created a commercialized “Principles of ‘BlockChain”-based system-network that meets or exceeds recommended guidelines established by the World Trade Organization (WTO), the Organisation for Economic Co-operation and Development (OECD) and the United Nations Chief Executives Board for Coordination (CEB)^[195].

• Litigation tested the commercialized “Principles of ‘BlockChain’” by some members of the International Conference of Legal Regulators, successfully.

• Satisfied Repeated Regulatory Audits

• Satisfied Repeated Regulatory Scrutiny

• This is an incomplete list.

A global corrective action must take place and this book is one step of the corrective action process. Note to the world: Stop wasting your time and money.

The good news is that the current state of common understanding (though more or less nonconforming) is less than a few years old (maybe 3) - see MQCC™ Global Public BlockChain/Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow Knowledge Register of Articles & Entities in the Appendix, so it is not late to implement global corrective action.

Regulatory Missing Link: MQCC MOS™ (Meta-Operating System)

As explained to the Royal Society of UK on August 29, 2019^[196];

• The Royal Society Fellows will also discover that yours sincerely defined a new field of study, named: Conformity Science. You may learn about this new field of study at www.conformity.org. A field of study that is recognized and appreciated by regulatory bodies as "the missing link" between regulatory and regulatees for the benefit of the public whom both serve.

While the origins of the “Principles of ‘BlockChain’” are rooted in non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading securities and related financial instruments; transacted on a Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow basis , because this business is non-regulated or regulatory exempt, free trading, Bungay International Inc. and MQCC needed to create its own:

• Private standards

• Private regulations

• Private enforcement mechanisms

• Cross-cutting^[197] protocols to integrate with third-party regulatory requirements

• An easy-to-use, cost effective, scalable system with global access

• A risk-based approach to reduce, mitigate or eliminate risk which is the effect of uncertainty^[198].

• A private, globally accessible network consisting of a federation of systems (FOS)^[199] that consists of heterogeneous organizations that function decentrally and autonomously, trademark registered by its brand-class DHAO™^[200]. MQCC System-Network™^[201] DHAO™ entities function independently within their own industry-specific, system of systems (SOS) constituency; using a common (uniform), consensus-based set of principles and continually improving rules which function in an interoperable, technology-neutral, single architectural framework designed to work with protocol-based integrations so that each DHAO™ in the MQCC System-Network™ functions in a manner that conforms to statutory, regulatory and system requirements at all levels (top - down^[202]) and all phases (end-to-end).

• Organizational level

• Professional level

• Employee level

For example:

• USA DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT^[203]

• Organization for Economic Co-operation and Development OECD Common Reporting Standards^[204]

• Canadian Interest Act^[205]

From as early as August 14, 2001, yours sincerely, Bungay International Inc. and MQCC are currently or were previously, deemed to be regulated entities because some facets of Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow finance had regulatory obligations. The implication is clear: the Bungay International Inc. and MQCC System-Network™ needed to interoperate with regulatory systems; which it has done successfully for over 14 years.

This concept being described involved into a higher-order; “Principles of ‘BlockChain’”-based, inherently technology-neutral, risk-based, regulatory-integrated, defense-standard, military-grade, command, control, quality (CCQ™^[206]) operating system built on a knowledge kernel^[207] (MOS™^[208] Kernel) that itself, is built on the seminal “Principles of ‘BlockChain’”; and marketed to regulators and regulatees throughout the world under the trademark brand-class name MQCC MOS™^[209] integrates with all lower-order, technology-specific operating systems (OS) and the hierarchy looks like this:

• Higher Order Operating System (OS)

• “Principles of ‘BlockChain’”-based, Inherently Technology-Neutral, Risk-Based, Regulatory Integrated, Command, Control, Quality, MQCC MOS™ Brand Operating System

• MQCC MOS™/® OS (www.mqcc.org)

• Lower Order Operating System (OS)

• Non-Inherently Technology-Neutral, Defense-Standard, Military-Grade, Regulatory-Integrated, Command, Control, Quality Operating System

• MICROSOFT® OS (www.microsoft.com)

• APPLE® OS (www.apple.com)

• ANDROID® OS (www.android.com)

• LINUX® OS (www.linux.org)

Regulating the Regulators: How the “Principles of ‘BlockChain’” helped a Private Regulator Teach Public Regulators that “It Can Be Done”

On July 2019, the United States Department of Treasury, Office of Inspector General (OIG)^[210] Council of Inspectors General on Financial Oversight^[211] published a report entitled: Top Management and Performance Challenges Facing Financial-Sector Regulatory Organizations (July 2019)^[212]

The purpose of the report was to:

• ...identify cross-cutting Challenges faced by Financial-Sector Regulatory Organizations.

The utility of the “Principles of ‘BlockChain’” in their commercially available form developed by MQCC, when properly understood and applied, empower regulatory organizations to manage challenges in a manner that is better, safer and more efficient; to paraphrase the words of the internationally respected Canadian Federal Crown Corporation: Standards Council of Canada (SCC)^[213].

Remember, though a private entity, MQCC is itself actually or ostensibly a private regulatory body with self-regulating protocols to govern the non-regulated or regulatory exempt, free trading facets of all transactions; and the applicable class of participants involved in each transactions:

• Investor

• Lender

• Applicant

• Borrower

• Credit Intermediary (if applicable)

For the benefit of reducing, mitigating or eliminating risk for:

• All participants listed above and,

• Public Official

• Regulators

• Professional Liability Insurers

• Affected Stakeholders

In the July 2019 report, the Council of Inspectors General on Financial Oversight identified seven challenges facing the Financial-Sector Regulatory

Organizations including the below items with arrows. The list items with diamonds show the brand of the MQCC system, technology, service or product that addresses this need.

• Enhancing Oversight of Financial Institution Cybersecurity

• MQCC MOS™; risk-based, meta-operating system of overarching command, control, quality.

• MQCC CYBERLOCKCHAIN™^[214] Protocol (complying with the NIST^[215] Cybersecurity Framework Core)

• Managing and Securing Information Technology at Regulatory Organizations

• MQCC CYBERLOCKCHAIN™ Protocol

• Sharing Threat Information

• MQCC Federation of System (FOS) Communication Network; for both public and private transmissions.

• Ensuring Readiness for Crises

• MQCC MOS™; risk-based, meta-operating system of overarching command, control, quality.

• Strengthening Agency Governance

• MQCC MOS™; risk-based, meta-operating system of overarching command, control, quality.

• Managing Human Capital

• MQCC MOS™; risk-based, meta-operating system of overarching command, control, quality.

• Improving Contract and Grant Management

• MQCC MOS™; risk-based, meta-operating system of overarching command, control, quality.

The MQCC’s Suite™ of “Principles of ‘BlockChain’’-based systems, technology, services and products are empirically proven to effectively tackle the problems. You could call the MQCC System a “regulatory operating system”, but it is better to call it a “regulator-regulatee operating system” - if anything.

By this moment, you should be getting the idea why this introductory book is over 300 pages; remember, over 19 years of history of a business and field of study (conformity science) never before seen, working together to serve the public. And from what you are gathering by now, Bungay International Inc. and MQCC commercialized the “Principles of ‘BlockChain” first and commercialized “Principles of ‘BlockChain” right.

The corollary is that the “Principles of ‘BlockChain’” (and the superordinate and subordinate concepts ie: distributed/decentralized ledge, utility token, securities token) did not first appear deus ex machina, out of nowhere, in the form of a peer-to-peer electronic cash system without thought, explanation or consideration; rather, the “Principles of ‘BlockChain’” (and the superordinate and subordinate concepts ie: distributed/decentralized ledger; utility token, securities token) were formed from research commencing as early as August 14, 2001 and commercialized least five (5) years earlier at www.mortgagequote.ca a website registered October 10, 2003^[216] and later at www.privatelender.org, a website registered on April 9, 2005^[217]. And the reason that most people don’t know is because - something that the International Science Council (council.science) assumed was just a potentiality^[218] - the world’s first network for trust actually, successfully and sustainably, over the course of nearly 20 years, disintermediated the “world”.

The "main textbook" whose working title is: Theories, Principles, Protocols, Laws, Math and Litigation-Tested Applications of the Bungay Unification of Quantum Processes Algorithm also represented as the “Principles of ‘BlockChain’” from August 14, 2001 to Present Day is not yet completed and will be much bigger than this authoritative encyclopedic reference; but truth be told (pardon the pun) focus at the MQCC Head Office is licensing the MQCC Systems, Technology, Services and Products to its “highest and best use”, which means to Heads of States, governments, regulatory bodies, and the Top Management of regulated entities. And by now, you should be realizing why a practitioner in the subject matter of conformity science and the “Principles of ‘BlockChain’” requires at least four (4) years of formal training to achieve an undergraduate level of knowledge, and two (2) to four (4) more years of study for graduate, doctoral and post-doctoral research.

Banks, Regulators, Professional Liability Insurers, Credit Intermediaries, Investors and Investees have Benefitted from MQCC and it’s “Principles of ‘BlockChain’”-Based System and the “Token Concept”: So Can You

Over the past 14 years and longer, banks, regulators, professional liability insurers, credit intermediaries, investors and investees have unknowingly or knowingly (the majority are unknowing), benefitted from MQCC’s “Principles of ‘BlockChain’” based systems, technology, products and services as follows:

• Reduction in risk due to conformity to statutory and regulatory requirements.

• Trading in Personal (peer/private/secret/non-public) Financial Data in a token environment via a global computer network on a peer-to-peer basis (utility token).

• Trading in non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading securities and related financial in a token environment via a global computer network on a peer-to-peer basis (free trading securities token).

What is a “token”

ISO/IEC 2382:2015(en) published by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC)^[219] indicates that the term and definition of token was standardized in 1992 within the document published as ISO /IEC 2382-25:1992^[220]. The current standardized definition is:

• In a local area network, specified group of bits serving as a symbol of authority passed successively from one data station to another to indicate the station temporarily in control of the transmission medium.

• Note 1 to entry: All information is conveyed by frames. Some frames contain a token and no user data, others contain data and no token.

Binary Digit Financial Information Delivered via Token System: What 19 Years of Experience Shows

Binary digit (electronic) financial information for a lending system comes in several classes based upon the type of lender^[221]:

• Bank/Non-Bank (Regulated)

• Private Individual or Private Company (Non-Regulated)

Representing several origination-classes of money/wealth^[222]:

• Pooled (Syndicated/Regulated) Funds

• Non-Pooled (Peer/Non-Regulated) Funds

Utility Token (and types)

The first non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading, Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow binary digit utility token consisted of information representing loan application details (personally identifiable information PII) and was sent via email from Bungay International Inc. to an investor-lender at some point between August 14, 2001 and April 9, 2005. In most of the world, generally speaking, an organization must be licensed by a regulator to trade in loan applications where the loan is secured by real estate^[223].

• This is called a utility token because the information transmitted does not include evidence of an acceptance of a financial obligation; the token only contains personally identifiable information PII.

• Other types of utility tokens include:

• Intellectual Property Tokens

• Quality Tokens

• Conformity (Active, Enforced Compliance) Tokens

Securities Token

The first non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading, Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow binary digit free trading securities token consisted of information representing the details of a signed, legal binding document accepting the terms of a financial debt (personally identifiable information PII) and was sent via email from Bungay International Inc. to an investor-lender at some point between August 14, 2001 and April 9, 2005. In most of the world, generally speaking, an organization must be licensed by a regulator to trade in loan applications where the loan is secured by real estate^[224].

• This is called a securities token because the information transmitted includes evidence of an acceptance of a financial obligation in addition to personally identifiable information PII.

• Depending on the jurisdiction, the sender or the recipient or both may be subject to regulatory oversight, which is why it is in a class of its own.

MQCC markets its financial products globally under the trademark brand-class BIT BRAND™ financial services; and the binary digit loan system, technology, services and products for loans (secured, and unsecured) is marketed under the registered trademark brand name: BITMORTGAGE™/®.^[225]