During the first 18 months since the beginning of the project, the consortium has achieved the following progresses: 1) a measurement system to assess the capability of liquids to respond to electrical stimulation, with a broad band resolution, that already allowed us to collect 10 GB of raw data on several liquids under test. Based on the first results, we have started developing a dedicated integrated circuit for measuring the colloids state changes and implement in a single chip all of those functionalities. The chip is currently under final design stages in a low-cost technology. 2) We have discovered a protocol for implementation of learning in liquid systems via a programmable propagation of conductive pathways. Also, we obtained fundamental preliminary results on implementation of reservoir computing in colloid systems, achieving very nice demonstration of in memory computing, of liquid analogue memory equivalent to 6 bits, of liquid state artificial recurrent neural network. The liquid was shown able to recognize 10 digits, from zero to nine. Such results represent a unique achievement in science. 3) Alternative energy supply in the soft cybernetic system was explored with the idea of inducing the conversion of light into heat directly in the liquid phase, avoiding solid interfaces, and to exploit with a mixed composition the resulting thermal gradient into electrical power. 4) Several magnetic and infrared absorbing nanomaterials on the base of Iron(II, III) oxides and Titanium Nitrides as well as Magnetite with different susceptibility and pyromagnetic effects were developed and tested. These technologies and materials will lay the basement for computing subsystems used in later tasks. 5) Self-healing soft skins for protecting the functional colloids were developed.