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Provided by explosiveskull
https://twitter.com/kaboomskull
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Right, finally, we
have Torsten Hoffmann,
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who's the producer of the Cryptopia Film.
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Thanks, Peter.
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Five years ago,
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I made a film about the history of money,
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banking, and Bitcoin.
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Buckle up, we said, it's
gonna be a bumpy ride.
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And now, some of the
big brains and big egos
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who championed cryptocurrency
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claim they're building a crypto-utopia.
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Magical things will happen.
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With something
called blockchain technology,
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and it just might change your life.
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And they really could compete with,
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if not take down the Facebooks
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and the Googles, and the Amazons.
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My name is Torsten Hoffmann,
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and I'm going to put some
of these claims to the test.
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Some critics say you kind
of hurt the community.
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What's your response to that?
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This innovation has enabled
lots of criminals and scammers.
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But basically looking at
it now, you lied to us.
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Forget all the hype.
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We'll explore the true
potential of this new invention.
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See who's already using it.
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Making it really easy and simple
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for people to own a piece of
a solar farm or wind farm.
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And go deep
into a secret bunker
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that holds billions in Bitcoin.
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We cannot
talk too much about it
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because it's pretty secret
what is down there, right.
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And if Bitcoin succeeds,
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it'll be at least $1 million per coin.
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We'll learn
lessons from the past
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and meet those building the future.
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But there are those who want to kill it.
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Join with me in introducing
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a bill to outlaw cryptocurrency
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so that we nip this in the bud.
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Control it.
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Next year, people are
going to start seeing
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that we have hundreds of patents
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and everything changes.
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Or change the world with it.
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Welcome to ground zero
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in the battle for the future
of the Internet: Web 3.0.
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They wanted a science fiction dream,
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what they actually did was
build forthcoming disaster.
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A lot of people were
not willing to learn
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and were not willing to
admit they were wrong.
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They're idiots.
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Why is this fraud allowed
to speak at this conference?
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Stop telling me that I have no clue.
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That's just bullshit.
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If you don't support free speech,
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you don't support Bitcoin.
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You're an enemy of Bitcoin.
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This is
bigger than the internet,
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the Iron Age,
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the Renaissance,
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the Industrial Revolution.
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This affects the entire world.
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For years and years,
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I've been researching
blockchain technology,
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cryptocurrencies, the
market booms and busts,
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and many have asked me to
explain Bitcoin to them,
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but I think this is why it's so difficult.
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Cryptocurrencies,
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everything you don't
understand about money
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combine with everything
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you don't understand about computers.
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Okay, let's start slowly
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with the basics of
money and it's creation.
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The total value
of all the world's money
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is about $120 trillion.
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What you probably didn't know
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is that each new dollar
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is created by governments
and banks as debt,
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which needs to be paid back
by someone in the future
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with interest.
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That's why there isn't
enough money in the world
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to repay all that debt.
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And there never will be.
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Oh, and almost all of the world's money
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is already digital,
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just entries in the ledger,
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usually managed by a bank.
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Only a small portion
exists as physical currency
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like cash or coins.
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Think of it this way,
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your employer deposits $1,000
into your bank account.
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Then you pay $200 in taxes,
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$500 for rent,
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$200 for bills and shopping and so forth.
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Whether you use credit cards,
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debit cards, PayPal, or bank transfers,
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they're all just pluses and minuses
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in different digital ledgers.
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That's why there's almost
no need for physical money
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in our daily lives.
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During the financial crisis in 2008,
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a mysterious figure
called Satoshi Nakamoto
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published this nine page white paper.
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It said with Bitcoin's
open source software,
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we can create our own money
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without banks or Governments.
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This new nerd money,
called cryptocurrency,
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is created and stored in computers.
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And before long, there
was a growing fan club,
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mostly guys like Roger Ver.
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Today, he's a polarizing figure,
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but back then, he gave
away thousands of coins
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to kickstart the movement,
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and they all called him Bitcoin Jesus.
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I think that for may years,
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he brought more people to
Bitcoin than anyone else.
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And we will forever be
grateful to him for doing that.
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When I was a kid,
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I was reading all these
science fiction books.
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They were talking about
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how the world is gonna be
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when we have this like
anonymous digital cash
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that people can use on the internet
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that's not controllable by anybody.
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And then when Bitcoin came along,
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it was like: Wow, this
science fiction money idea
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that I'd been reading about as a kid
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is finally here.
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So I got so excited about it.
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I heard about it at
about 10 in the morning.
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And I was planning to go to
work that day, but I didn't.
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I stayed home the entire
day reading about it.
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Didn't leave, I stayed
up all night that night
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reading about it.
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Stayed up all night the
next night reading about it.
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He went deep
down that rabbit hole
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to the point of physical exhaustion.
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So I called up a friend of mine,
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said please help me, I'm so sick.
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Can you bring me to the hospital?
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Yeah, Roger got bit bad
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by the Bitcoin bug.
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Cause it's truly one of
the most exciting inventions
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ever in the entire history of human kind.
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But how does it work?
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When my friends ask me to explain,
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well I often start with this analogy.
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Imagine a bank vault
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where you have a safety deposit box.
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Your key opens one of the boxes
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where you can securely
store physical valuables,
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like gold coins.
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In Bitcoin, there are digital keys.
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Think of them as very long passwords.
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Your private key gives
you access to a wallet,
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which unlocks billions of
unique Bitcoin addresses.
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Each one is a virtual safety deposit box
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that only you can open with your key.
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And there are more addresses
in this virtual vault
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than atoms in the universe.
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The doors to these boxes are transparent.
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You can see inside them.
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Here's one with digital
money, 0.21 Bitcoins.
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Sending them from one box to another
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is what's called a Bitcoin transaction.
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We'll explain that later.
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But for now,
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just remember that these digital coins
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can only exist inside these
transparent address boxes,
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can't be copied,
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and can't ever leave the vault.
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And this vault is owned
by no single entity.
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You don't need permission
from a government,
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a bank, or a corporation to use it.
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For most
early adopters of Bitcoin,
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it was all about global peer
to peer electronic cash.
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Room 77 in Berlin was one
of the very first businesses
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to accept Bitcoins as
payment for physical things,
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beers and burgers.
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Back in 2011, there were
no mobile wallets, right.
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So you had to go there, bring your laptop,
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type in this long address,
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risk losing the money if you
didn't type it correctly.
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So the first guy who built a mobile wallet
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was some guy in Berlin
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who built it in order to buy his beer
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with his phone instead of his computer.
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Credit cards
are an old technology,
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and actually pretty complex.
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And you payment details are
shared with many middlemen.
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Each of these parties are also
taking a cut of the action,
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which is built into the price
of nearly everything you buy.
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If you purchase something internationally,
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double the number of
middlemen and triple the fees.
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Credit cards handle almost $20 trillion
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of transactions per year.
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Early Bitcoin
adopters, like Room 77,
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avoided paying credit card fees.
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00:09:07,500 --> 00:09:10,505
But Joerg's real beef was with the bankers
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who collect them.
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Collapsing economies, murder,
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I didn't sign up for this.
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Let me get a drink.
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00:10:06,959 --> 00:10:09,586
Well, actually, I need
to buy my German crew
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00:10:09,610 --> 00:10:10,536
some Gluwein
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00:10:10,560 --> 00:10:12,333
and explain why they won't get paid
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until after Christmas.
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00:10:14,665 --> 00:10:16,718
You see, transferring
money from Australia,
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where I live,
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to Germany can take several days,
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and it will cost $30 plus exchange fees
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just for updating numbers
in digital ledgers.
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After all, it's just moving data.
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00:10:34,105 --> 00:10:35,789
I can send a picture or video
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to anyone on the planet
almost instantly, for free.
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We live in the age of the Internet,
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but the banks won't send the data
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00:10:42,687 --> 00:10:45,170
after 5:00 p.m., or on a weekend?
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00:10:45,194 --> 00:10:46,596
That doesn't make any sense.
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So what if those slow
and expensive middlemen
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with their multiple ledgers
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could be replaced with a giant database
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00:10:55,880 --> 00:10:58,107
synchronised over the Internet?
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00:10:58,131 --> 00:11:00,565
That's the big idea behind Bitcoin.
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00:11:00,589 --> 00:11:03,012
And it's run by a
decentralised global network
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00:11:03,036 --> 00:11:06,666
of powerful mining computers
and regular laptops.
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00:11:09,989 --> 00:11:11,161
Here's how it works.
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When I pay my cameraman,
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00:11:13,985 --> 00:11:16,229
what's really happening
is that I use my key
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00:11:16,253 --> 00:11:17,657
to open my wallet,
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00:11:17,681 --> 00:11:19,306
and then instruct the network
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00:11:19,330 --> 00:11:21,331
to send Bitcoins to his address.
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00:11:23,516 --> 00:11:25,719
Most Bitcoin apps use QR codes
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00:11:25,743 --> 00:11:27,308
to identify and address.
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00:11:27,332 --> 00:11:28,327
You scan it,
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00:11:28,351 --> 00:11:29,825
then swipe to use your key,
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00:11:29,849 --> 00:11:31,351
and approve the transaction.
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00:11:32,187 --> 00:11:33,332
This information is shared
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00:11:33,356 --> 00:11:35,706
throughout the global
network within seconds.
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00:11:37,402 --> 00:11:38,328
Every 10 minutes or so,
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00:11:38,352 --> 00:11:41,704
one miner using a
tremendous amount of energy
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00:11:41,728 --> 00:11:44,191
beats all the others in a contest
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00:11:44,215 --> 00:11:46,013
to solve a very difficult math problem.
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00:11:46,037 --> 00:11:48,107
That miner is authorised
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00:11:48,131 --> 00:11:50,045
to arrange the most recent transactions
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00:11:50,069 --> 00:11:51,773
into a structured block,
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00:11:51,797 --> 00:11:53,775
and is rewarded in Bitcoins for this work.
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00:11:53,799 --> 00:11:56,456
All the data contained inside each block
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00:11:56,480 --> 00:11:58,591
is represented by a check sum.
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00:11:58,615 --> 00:12:00,854
The miner now adds the new block
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00:12:00,878 --> 00:12:02,383
to the previous one.
253
00:12:02,407 --> 00:12:03,847
That's why it's called the blockchain.
254
00:12:03,871 --> 00:12:06,559
Now the ledger will be updated globally.
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00:12:06,583 --> 00:12:09,306
The check sums of the previous block
256
00:12:09,330 --> 00:12:11,124
match the beginning of the new one,
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00:12:11,148 --> 00:12:13,400
which are baked together forever.
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00:12:13,424 --> 00:12:16,381
It's impossible to tanker
with the data inside the block
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00:12:16,405 --> 00:12:18,377
without changing the check sums
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00:12:18,401 --> 00:12:19,896
and breaking the chain.
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00:12:25,504 --> 00:12:27,729
This immutability
is the first rule of Bitcoin.
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00:12:27,753 --> 00:12:30,275
It means one one can ever change
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00:12:30,299 --> 00:12:32,403
what was once recorded in the blockchain,
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00:12:32,427 --> 00:12:33,934
or spend the same coin twice.
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00:12:33,958 --> 00:12:36,043
That's also called censorship resistance,
266
00:12:36,067 --> 00:12:39,952
and it's critical to Bitcoin
being used as real money.
267
00:12:45,034 --> 00:12:46,549
Awarded winning journalist Laura Shin
268
00:12:46,573 --> 00:12:48,946
tells me a story about women
bloggers in Afghanistan
269
00:12:48,970 --> 00:12:50,884
being paid in Bitcoin.
270
00:12:50,908 --> 00:12:53,821
One of the women had an abusive husband,
271
00:12:53,845 --> 00:12:55,069
and saved up here Bitcoins
272
00:12:55,093 --> 00:12:58,249
and eventually was able to divorce him
273
00:12:58,273 --> 00:13:00,814
because she was able to control her money
274
00:13:00,838 --> 00:13:02,620
when she earned the Bitcoins.
275
00:13:02,644 --> 00:13:05,010
In my first
film, the early adopters
276
00:13:05,034 --> 00:13:07,637
said that this kind of
financial freedom for everyone
277
00:13:07,661 --> 00:13:09,086
was just around the corner.
278
00:13:09,110 --> 00:13:14,105
The world's most populous
network is adopting Bitcoin,
279
00:13:14,225 --> 00:13:15,089
that's the Internet.
280
00:13:15,113 --> 00:13:18,896
The world's largest economy
is adopting Bitcoin.
281
00:13:18,920 --> 00:13:20,235
That's the internet.
282
00:13:20,259 --> 00:13:21,933
We have transcended borders.
283
00:13:21,957 --> 00:13:24,115
It's totally failed as electronic cash.
284
00:13:24,139 --> 00:13:27,038
David Gerard
says it has unbanked
285
00:13:27,062 --> 00:13:29,845
the banked more than it
has banked the unbanked.
286
00:13:29,869 --> 00:13:32,147
He's an outspoken critic
of this technology.
287
00:13:32,171 --> 00:13:35,146
It's not very good as a payment system.
288
00:13:35,170 --> 00:13:37,637
There a small payment in this case
289
00:13:37,661 --> 00:13:40,285
if you want to trade in things
290
00:13:40,309 --> 00:13:41,800
the Government doesn't
want you to trade in.
291
00:13:41,824 --> 00:13:43,941
That's David's polite way
292
00:13:43,965 --> 00:13:45,537
of saying illegal stuff.
293
00:13:45,561 --> 00:13:47,695
In 2011, most of my partner colleagues
294
00:13:47,697 --> 00:13:48,844
In 2011, most of my partner colleagues
295
00:13:48,870 --> 00:13:50,057
were saying three things.
296
00:13:50,059 --> 00:13:50,960
were saying three things.
297
00:13:50,984 --> 00:13:52,235
It was either drugs,
pornography, or arm sales.
298
00:14:00,049 --> 00:14:01,643
The Silk
Road was a black market
299
00:14:01,667 --> 00:14:02,652
on the dark web
300
00:14:02,676 --> 00:14:04,087
where the buyers and sellers used Bitcoins
301
00:14:04,111 --> 00:14:06,614
to fly under the radar of the authorities.
302
00:14:06,638 --> 00:14:09,205
It had one million users
303
00:14:09,229 --> 00:14:12,184
until the FBI showed up and shut it down.
304
00:14:12,208 --> 00:14:14,849
They caught this guy for running it,
305
00:14:14,873 --> 00:14:17,097
and confiscated the coins held in escrow
306
00:14:17,121 --> 00:14:18,717
by snatching his computer.
307
00:14:18,741 --> 00:14:21,573
And then they locked him away for life.
308
00:14:21,597 --> 00:14:23,801
Seems like a pretty straight forward case
309
00:14:23,825 --> 00:14:26,059
of law enforcement doing their job,
310
00:14:26,083 --> 00:14:28,639
but in crypto, not
everybody sees it that way.
311
00:14:31,238 --> 00:14:32,802
People have an absolute right
312
00:14:32,826 --> 00:14:34,680
to put whatever they
want in their own bodies
313
00:14:34,704 --> 00:14:36,668
because their bodies belong to them.
314
00:14:36,692 --> 00:14:38,067
That makes Ross Ulbricht
315
00:14:38,091 --> 00:14:39,795
and the users of the Silk Road heroes,
316
00:14:39,819 --> 00:14:41,742
not criminal law breakers in a bad sense.
317
00:14:41,766 --> 00:14:44,311
They are criminal law
breakers in a good sense
318
00:14:44,335 --> 00:14:46,722
the same way that Harriet
Tubman or Rosa Parks,
319
00:14:46,746 --> 00:14:48,327
or you know, Thomas Jefferson,
320
00:14:48,351 --> 00:14:49,821
or George Washington were.
321
00:14:49,845 --> 00:14:53,851
No doubt
cryptocurrencies can be a tool
322
00:14:53,875 --> 00:14:55,244
for criminal activity.
323
00:14:55,268 --> 00:14:56,798
But so are dollar bills
324
00:14:56,822 --> 00:14:58,007
or the banking system.
325
00:14:58,031 --> 00:15:02,594
And let's not forget the
blockchain is a public ledger.
326
00:15:02,618 --> 00:15:04,700
It's actually been quite useful
327
00:15:04,724 --> 00:15:06,155
for uncovering crimes.
328
00:15:06,179 --> 00:15:08,819
A former federal prosecutor
named Kathryn Haun,
329
00:15:08,843 --> 00:15:10,884
she was the one who discovered
330
00:15:10,908 --> 00:15:13,146
that there were a couple
federal agents that
331
00:15:14,544 --> 00:15:17,607
were pilfering the Bitcoins
that the Government had obtained
332
00:15:17,631 --> 00:15:18,547
from the Silk Road case
333
00:15:18,571 --> 00:15:19,775
for their own gain.
334
00:15:19,799 --> 00:15:21,813
And what was interesting
335
00:15:21,837 --> 00:15:23,789
was she got a tip that there might be one,
336
00:15:23,813 --> 00:15:26,403
one agent that was doing this.
337
00:15:26,427 --> 00:15:28,766
But from looking at the movements
338
00:15:28,790 --> 00:15:29,795
on the blockchain itself,
339
00:15:29,819 --> 00:15:31,457
she realised that there were two people.
340
00:15:31,481 --> 00:15:34,410
The prosecutor could see
341
00:15:34,434 --> 00:15:35,954
those Bitcoins being moved.
342
00:15:35,978 --> 00:15:38,648
And when the dirty cops tried
to sell them for dollars,
343
00:15:38,672 --> 00:15:40,875
they got busted.
344
00:15:46,892 --> 00:15:49,415
But what makes Bitcoins worth stealing?
345
00:15:49,439 --> 00:15:51,191
Why do they have value at all?
346
00:15:52,446 --> 00:15:53,985
Let's go back
to where Bitcoins are stored
347
00:15:54,009 --> 00:15:57,052
in transparent digital deposit boxes,
348
00:15:57,076 --> 00:15:58,996
protected by strong cryptography.
349
00:15:59,020 --> 00:16:02,492
They can never be copied
or leave the vault
350
00:16:02,516 --> 00:16:04,143
because any transaction of any Bitcoin,
351
00:16:04,167 --> 00:16:07,547
down to a 100 millionth fraction
352
00:16:07,571 --> 00:16:10,704
is recorded in the
blockchain for eternity.
353
00:16:10,728 --> 00:16:12,482
This synchronised global ledger
354
00:16:12,506 --> 00:16:14,471
is shared among thousands
of computers worldwide.
355
00:16:14,495 --> 00:16:17,668
That's why it can't be
compromised or altered.
356
00:16:17,692 --> 00:16:18,908
Think about that.
357
00:16:18,932 --> 00:16:22,293
We can make an infinite number
of perfect digital copies
358
00:16:22,317 --> 00:16:24,348
of a movie, a song, any file,
359
00:16:24,372 --> 00:16:26,357
but for the first time in history,
360
00:16:26,381 --> 00:16:28,526
this distributed record keeping
361
00:16:28,550 --> 00:16:31,383
allows us to have a
truly unique and fungible
362
00:16:31,407 --> 00:16:34,146
digital object that is also scarce.
363
00:16:34,170 --> 00:16:37,106
If you could count all
of these virtual coins,
364
00:16:37,130 --> 00:16:40,197
you'd find about 18 million of them today.
365
00:16:40,221 --> 00:16:42,522
The mining reward is the only way
366
00:16:42,546 --> 00:16:43,863
new coins are created.
367
00:16:46,273 --> 00:16:47,463
In the first years of Bitcoin,
368
00:16:47,487 --> 00:16:50,891
miners competed for 50
Bitcoins every 10 minutes.
369
00:16:50,915 --> 00:16:53,443
Then their reward for
processing transactions
370
00:16:53,467 --> 00:16:55,736
dropped to 25 Bitcoins,
371
00:16:55,760 --> 00:16:57,606
then 12.5,
372
00:16:57,630 --> 00:17:00,409
and then half again and
again every four years.
373
00:17:00,433 --> 00:17:03,970
It's good old fashioned supply and demand.
374
00:17:03,994 --> 00:17:06,868
If investors or users of Bitcoin
375
00:17:06,892 --> 00:17:09,260
create a higher demand than
this decreasing supply,
376
00:17:09,284 --> 00:17:10,986
the price will go up.
377
00:17:11,010 --> 00:17:14,620
When the cap of 21 million is reached,
378
00:17:14,644 --> 00:17:16,800
the protocol stops the network
from creating any more.
379
00:17:16,824 --> 00:17:20,504
It's the opposite of our
traditional money supply,
380
00:17:20,528 --> 00:17:22,906
which keeps growing and growing.
381
00:17:30,739 --> 00:17:32,722
Hmm, and unlimited amount of dollars
382
00:17:32,746 --> 00:17:35,056
versus a very limited supply of Bitcoins.
383
00:17:35,080 --> 00:17:36,642
You do the math!
384
00:17:36,666 --> 00:17:39,695
If you use Euros or dollars,
385
00:17:39,719 --> 00:17:41,833
you might not care about a
little inflation per year.
386
00:17:41,857 --> 00:17:43,522
But if your currency isn't stable,
387
00:17:43,546 --> 00:17:45,659
you might be a trillionaire on paper,
388
00:17:45,683 --> 00:17:47,068
and be dead broke.
389
00:17:51,907 --> 00:17:53,042
I grew up in Patagonia
390
00:17:53,066 --> 00:17:54,350
in the southern part of Argentina.
391
00:17:54,374 --> 00:17:55,928
My parents are sheep ranchers there.
392
00:17:55,952 --> 00:17:59,066
And I remember growing up in my childhood,
393
00:17:59,090 --> 00:18:01,116
I saw my parents loose
everything three times.
394
00:18:01,140 --> 00:18:03,785
First because of a huge devaluation,
395
00:18:03,809 --> 00:18:05,484
then because of hyperinflation,
396
00:18:05,508 --> 00:18:08,115
and the last time because the
Government confiscated all
397
00:18:08,139 --> 00:18:10,674
our bank deposits.
398
00:18:10,698 --> 00:18:12,143
I think that today,
399
00:18:12,167 --> 00:18:15,140
there are billions of people,
400
00:18:15,164 --> 00:18:16,308
at least four billion people
401
00:18:16,332 --> 00:18:18,047
who would be a lot better off
402
00:18:18,071 --> 00:18:19,767
by having access to a form of money
403
00:18:19,791 --> 00:18:23,866
that is non-political and more democratic.
404
00:18:31,277 --> 00:18:32,402
We think of finance.
405
00:18:32,426 --> 00:18:33,292
We think of banking.
406
00:18:33,316 --> 00:18:34,600
We think of money.
407
00:18:34,624 --> 00:18:37,205
In terms of the experience and perspective
408
00:18:37,229 --> 00:18:39,832
of Western European or
developed nation person,
409
00:18:39,856 --> 00:18:44,560
and that is really just a
billion and a half people
410
00:18:44,584 --> 00:18:47,837
who have a very privileged financial life.
411
00:18:47,861 --> 00:18:49,555
What about the other six billion?
412
00:18:49,579 --> 00:18:52,029
Every single country that is free
413
00:18:52,053 --> 00:18:56,938
has essentially a legal
status for cryptocurrencies
414
00:18:56,962 --> 00:18:58,886
that is very open and permissive.
415
00:18:58,910 --> 00:19:01,113
And every single country that is unfree
416
00:19:01,137 --> 00:19:05,560
has restrictive or banned
cryptocurrency status.
417
00:19:23,535 --> 00:19:25,060
This is the Berlin Wall,
418
00:19:25,084 --> 00:19:26,348
still a powerful symbol
419
00:19:26,372 --> 00:19:29,721
of a Government trying
to control its citizens.
420
00:19:29,745 --> 00:19:33,369
But this is what happens when people
421
00:19:33,393 --> 00:19:35,455
want to be free.
422
00:19:35,479 --> 00:19:38,999
The very first open crypto-war
is playing out in Venezuela
423
00:19:39,023 --> 00:19:42,362
where the local currency
loses value every hour
424
00:19:42,386 --> 00:19:44,041
due to hyperinflation.
425
00:19:44,065 --> 00:19:45,269
A lot of people in Venezuela
426
00:19:45,293 --> 00:19:46,638
are trying to mine cryptocurrencies.
427
00:19:46,662 --> 00:19:50,314
And the government views
this as a threat obviously
428
00:19:50,338 --> 00:19:53,711
because they're trying to
keep the Bolivar propped up.
429
00:19:53,735 --> 00:19:55,619
The government actually
provided electricity
430
00:19:55,643 --> 00:19:56,452
to a lot of people,
431
00:19:56,476 --> 00:19:59,237
and if they perceive that
your electricity usage
432
00:19:59,261 --> 00:20:00,514
has gone up,
433
00:20:00,538 --> 00:20:03,601
they will come and check if
you have mining equipment
434
00:20:03,625 --> 00:20:05,559
in your house, and they will confiscate it
435
00:20:05,583 --> 00:20:07,437
if they find it.
436
00:20:07,461 --> 00:20:09,235
And that brings
us to the big question,
437
00:20:09,259 --> 00:20:11,183
can Governments or banks ban Bitcoin?
438
00:20:11,207 --> 00:20:13,568
So the title is "Jamie Dimon,
439
00:20:13,592 --> 00:20:16,069
"Here's why you're wrong about Bitcoin".
440
00:20:16,093 --> 00:20:17,769
Dimon runs JP Morgan Chase,
441
00:20:17,793 --> 00:20:20,065
one of the largest banks in the world
442
00:20:20,089 --> 00:20:22,742
that moves $6 trillion every single day.
443
00:20:22,766 --> 00:20:23,861
Oh, you said of Bitcoin
444
00:20:23,885 --> 00:20:25,516
eventually it will be closed.
445
00:20:25,540 --> 00:20:28,186
And then I said to
anyone who knows anything
446
00:20:28,210 --> 00:20:30,961
about the technology, this is an
incredibly absurd statement.
447
00:20:30,985 --> 00:20:34,460
I even said it was a little bit hilarious
448
00:20:34,484 --> 00:20:36,538
because I find it kind of funny
449
00:20:36,562 --> 00:20:39,036
the idea that you thought
you could close Bitcoin.
450
00:20:39,060 --> 00:20:41,715
But you'd have to shut down the Internet,
451
00:20:41,739 --> 00:20:43,576
which also doesn't make sense.
452
00:20:43,600 --> 00:20:46,029
I could understand if you
wanted Bitcoin shut down,
453
00:20:46,053 --> 00:20:47,507
or hoped it was a fraud.
454
00:20:47,531 --> 00:20:48,387
I mean if I were you,
455
00:20:48,411 --> 00:20:50,264
and if I really understood the disruption
456
00:20:50,288 --> 00:20:52,412
that crypto assets could
bring to financial services,
457
00:20:52,436 --> 00:20:53,891
I'd be very scared.
458
00:20:53,915 --> 00:20:55,429
And I think whatever Jamie Dimon
459
00:20:55,453 --> 00:20:56,492
says or thinks about Bitcoin
460
00:20:56,516 --> 00:20:59,850
is as relevant as whatever
the Postmaster General
461
00:20:59,874 --> 00:21:02,085
thought or said about email:
462
00:21:02,109 --> 00:21:03,762
Who cares?
463
00:21:03,786 --> 00:21:06,355
Then I wrote sincerely, Laura Shin.
464
00:21:07,871 --> 00:21:09,046
But some politicians
465
00:21:09,070 --> 00:21:11,785
still think they can stop
open source software.
466
00:21:11,809 --> 00:21:14,950
I look for colleagues to join with me
467
00:21:14,974 --> 00:21:19,682
in introducing a bill to
outlaw cryptocurrency purchases
468
00:21:19,706 --> 00:21:23,382
by Americans so that
we nip this in the bud
469
00:21:23,406 --> 00:21:28,401
in part because an awful lot
of our international power
470
00:21:28,462 --> 00:21:31,253
comes from the fact that the dollar
471
00:21:31,277 --> 00:21:33,787
is the standard unit of
international finance
472
00:21:33,811 --> 00:21:37,513
and transactions clearing
through the New York Fed
473
00:21:37,537 --> 00:21:41,144
is critical for major oil
and other transactions.
474
00:21:41,168 --> 00:21:43,981
And it is the announced purpose
475
00:21:44,005 --> 00:21:45,679
of the supporters of cryptocurrency
476
00:21:45,703 --> 00:21:48,253
to take that power away from us.
477
00:21:48,277 --> 00:21:52,106
Cryptocurrency represents a
litmus test for Governments.
478
00:21:52,130 --> 00:21:57,036
It reveals how much your
Government believes in,
479
00:21:57,060 --> 00:22:01,599
in the fundamental
freedoms and Human Rights
480
00:22:01,623 --> 00:22:05,709
because if they don't
trust their own citizens
481
00:22:05,733 --> 00:22:07,897
to have control over their own money,
482
00:22:07,921 --> 00:22:08,757
that says a lot about the government
483
00:22:08,781 --> 00:22:11,241
and says very little about cryptocurrency.
484
00:22:11,265 --> 00:22:14,830
You see, the
reason why some Governments
485
00:22:14,854 --> 00:22:17,117
and most banks are
threatened by this technology
486
00:22:17,141 --> 00:22:20,114
is simple, your private
key and your wallet
487
00:22:20,138 --> 00:22:21,892
can replace your bank account.
488
00:22:21,916 --> 00:22:23,961
The network is run by software
489
00:22:23,985 --> 00:22:26,468
and its currency is made and maintained
490
00:22:26,492 --> 00:22:28,576
by computing power and electricity.
491
00:22:28,600 --> 00:22:29,814
It can't be manipulated
492
00:22:29,838 --> 00:22:32,552
by central bankers, Wall Street lobbyists
493
00:22:32,576 --> 00:22:33,871
or politicians.
494
00:22:33,895 --> 00:22:36,651
But with new freedom
comes new responsibility.
495
00:22:36,675 --> 00:22:40,856
Simple rule, if you control
the keys, it's your Bitcoin.
496
00:22:40,880 --> 00:22:44,072
If you don't control the
keys, it's not your Bitcoin.
497
00:22:44,096 --> 00:22:45,709
Your keys, your Bitcoin.
498
00:22:45,733 --> 00:22:48,163
Not your keys, not your Bitcoin.
499
00:22:48,187 --> 00:22:49,187
Your keys, your Bitcoin.
500
00:22:50,245 --> 00:22:52,208
Not your keys, not your Bitcoin.
501
00:22:52,232 --> 00:22:54,340
Got that?
502
00:22:54,364 --> 00:22:55,529
If you lose your key,
503
00:22:55,553 --> 00:22:57,620
you will never be able to
access your coins again.
504
00:22:57,644 --> 00:22:59,795
And if someone hacks your computer
505
00:22:59,819 --> 00:23:01,339
where you store those passwords,
506
00:23:01,363 --> 00:23:03,653
your coins will be stolen in a second.
507
00:23:03,677 --> 00:23:06,218
And remember how Wences's family
508
00:23:06,242 --> 00:23:08,523
had their money stolen
by their own government?
509
00:23:08,547 --> 00:23:11,723
Well, maybe that's why
he built the Fort Knox
510
00:23:11,747 --> 00:23:13,285
of Bitcoin security, Xapo.
511
00:23:13,309 --> 00:23:15,759
Most of our seven million customers
512
00:23:15,783 --> 00:23:17,157
are in emerging markets.
513
00:23:17,181 --> 00:23:20,953
In countries where there is
problems with the currency,
514
00:23:20,977 --> 00:23:23,361
we have explosions in
activity like Venezuela
515
00:23:23,385 --> 00:23:24,929
right now or Turkey.
516
00:23:24,953 --> 00:23:26,947
And we develop this system of vault
517
00:23:26,971 --> 00:23:29,585
where we have five private keys
518
00:23:29,609 --> 00:23:31,723
for each one of our Bitcoin addresses.
519
00:23:31,747 --> 00:23:33,774
We keep those private keys
520
00:23:33,798 --> 00:23:37,317
in an offline server that
has never been online,
521
00:23:37,341 --> 00:23:38,197
will never be online.
522
00:23:38,221 --> 00:23:39,345
It's inside the vault.
523
00:23:39,369 --> 00:23:41,543
The vault is inside a bunker,
524
00:23:41,567 --> 00:23:42,872
usually deep underground.
525
00:23:42,896 --> 00:23:44,280
Our main one is in Switzerland
526
00:23:44,304 --> 00:23:46,932
in a decommissioned military bunker.
527
00:23:46,956 --> 00:23:49,755
I just had
to see it for myself
528
00:23:49,779 --> 00:23:51,844
even though it took months for
us to get cleared for a tour.
529
00:24:07,231 --> 00:24:08,866
We were met by Christoph Oschwald,
530
00:24:08,890 --> 00:24:11,513
a former military commander
who runs the place,
531
00:24:11,537 --> 00:24:13,511
and a representative from Xapo.
532
00:24:13,535 --> 00:24:16,128
Christoph said the guards
would rather shoot us
533
00:24:16,152 --> 00:24:17,532
than show us around.
534
00:24:17,556 --> 00:24:21,103
I hope he was kidding.
535
00:24:21,127 --> 00:24:24,064
They need to bring in the material
536
00:24:24,088 --> 00:24:26,891
to the other side of the personal lock.
537
00:24:26,915 --> 00:24:30,503
First up, one
more check of our IDs,
538
00:24:30,527 --> 00:24:33,401
a pat down for weapons or
any other monkey business,
539
00:24:33,425 --> 00:24:35,745
and gear inspection.
540
00:24:35,769 --> 00:24:39,148
Even the boss was searched.
541
00:24:39,172 --> 00:24:43,199
It took nearly an hour to
get my team through security,
542
00:24:43,223 --> 00:24:44,859
but it was worth it.
543
00:24:44,883 --> 00:24:47,667
No other film crew has
been allowed access.
544
00:24:47,691 --> 00:24:51,183
We are the largest custodian
of Bitcoin in the world
545
00:24:51,207 --> 00:24:53,421
because a lot of the
largest holders in the world
546
00:24:53,445 --> 00:24:55,526
use us for security.
547
00:24:55,550 --> 00:24:57,050
Rumour has it
548
00:24:57,074 --> 00:24:59,359
that 10% of all Bitcoins are stored here
549
00:24:59,383 --> 00:25:01,780
and in their four other secret locations.
550
00:25:04,903 --> 00:25:07,624
Unfortunately, I can't
confirm any of those numbers.
551
00:25:08,939 --> 00:25:09,994
From the mountain,
552
00:25:10,018 --> 00:25:13,960
we are getting a lot of benefits, right?
553
00:25:13,984 --> 00:25:15,250
Earthquake proof,
554
00:25:15,274 --> 00:25:16,952
flooding proof,
555
00:25:16,976 --> 00:25:19,175
but on the other side,
556
00:25:19,199 --> 00:25:21,283
you're facing a lot of additional costs.
557
00:25:21,307 --> 00:25:24,390
Like maintaining
seven independent
558
00:25:24,414 --> 00:25:26,005
backup power supplies.
559
00:25:30,328 --> 00:25:32,272
The labyrinth of tunnels
deep into the mountain
560
00:25:32,296 --> 00:25:34,925
is interrupted by nuclear grade doors.
561
00:25:45,493 --> 00:25:46,668
It's a level of security
562
00:25:46,692 --> 00:25:49,425
applied to all of the data
Christoph protects here,
563
00:25:49,449 --> 00:25:50,449
not just for Xapo.
564
00:25:52,066 --> 00:25:53,966
We cannot talk too much about it
565
00:25:53,990 --> 00:25:56,827
because it's pretty
secret what is down there.
566
00:25:56,851 --> 00:25:58,676
Are we allowed to film there?
567
00:25:58,700 --> 00:25:59,700
No.
568
00:26:00,662 --> 00:26:03,541
There were
doors that remained shut
569
00:26:03,565 --> 00:26:05,640
and security measures we
weren't allowed to see.
570
00:26:05,664 --> 00:26:08,944
And some of those
checks may be biometric
571
00:26:08,968 --> 00:26:11,475
including the eye and
the finger print scan
572
00:26:11,499 --> 00:26:14,530
and the fingerprint scanner
573
00:26:14,554 --> 00:26:16,418
also makes sure that you are alive
574
00:26:16,442 --> 00:26:18,006
so that you didn't cut someone's finger
575
00:26:18,030 --> 00:26:20,224
and you're just using it to open the gate.
576
00:26:20,248 --> 00:26:21,316
So you must have a pulse.
577
00:26:30,038 --> 00:26:32,036
Don't touch the racks.
578
00:26:34,773 --> 00:26:36,718
These aren't
Xapo's actual servers,
579
00:26:36,742 --> 00:26:39,001
but if you've ever wondered
what cryptocurrency thieves
580
00:26:39,025 --> 00:26:41,851
dream about, it's sitting
somewhere down here
581
00:26:41,875 --> 00:26:44,050
unplugged from the Internet.
582
00:26:44,074 --> 00:26:45,978
There is absolutely no way,
583
00:26:46,002 --> 00:26:50,230
zero way to attack the data
on the cold storage site.
584
00:26:50,254 --> 00:26:52,572
But here's my question,
585
00:26:52,596 --> 00:26:55,159
why do I need the cold offline servers
586
00:26:55,183 --> 00:26:56,126
to be inside a mountain?
587
00:26:56,150 --> 00:26:58,396
Why can't it be in my basement?
588
00:26:58,420 --> 00:26:59,785
While the server is in the basement,
589
00:26:59,809 --> 00:27:02,013
it still can be stolen, right?
590
00:27:02,037 --> 00:27:05,469
So this is like money.
591
00:27:05,493 --> 00:27:07,227
It is data, yes,
592
00:27:07,251 --> 00:27:08,596
it's bits and bytes,
593
00:27:08,620 --> 00:27:10,521
but it is money at the end,
594
00:27:10,545 --> 00:27:12,082
and a lot of money.
595
00:27:12,106 --> 00:27:14,030
This is why this data centre here
596
00:27:14,054 --> 00:27:16,669
is more a bank than a data centre.
597
00:27:18,999 --> 00:27:19,907
Okay, let's do a quick recap.
598
00:27:19,931 --> 00:27:22,981
We now have billions of
dollars worth of data
599
00:27:23,005 --> 00:27:24,290
secured in digital banks
600
00:27:24,314 --> 00:27:26,255
deep inside secret military bunkers.
601
00:27:26,279 --> 00:27:28,256
If you don't think Bitcoin
602
00:27:28,280 --> 00:27:30,723
is already changing the
world's concept of money,
603
00:27:30,747 --> 00:27:32,446
you haven't been paying attention.
604
00:27:33,645 --> 00:27:35,129
Remember Mervyn?
605
00:27:35,153 --> 00:27:37,517
He used to be a senior
executive at Deutsche Bank.
606
00:27:37,541 --> 00:27:39,002
His colleagues once said Bitcoin
607
00:27:39,026 --> 00:27:40,564
was for law breakers and troublemakers.
608
00:27:40,588 --> 00:27:44,597
He now runs $100 million
crypto fund out of Malta.
609
00:27:46,492 --> 00:27:50,756
Our research shows
that the crypto markets
610
00:27:50,780 --> 00:27:55,698
are gonna probably be worth
about $8.7 trillion in 2027.
611
00:27:55,722 --> 00:27:58,266
Which is 50x from today.
612
00:27:58,290 --> 00:27:59,290
Exactly.
613
00:28:05,163 --> 00:28:06,478
Most financial analysts
614
00:28:06,502 --> 00:28:09,198
say you better stick to your
shares and bonds and dollars.
615
00:28:09,222 --> 00:28:10,797
Bitcoin is dangerous nonsense,
616
00:28:10,821 --> 00:28:13,296
far too risky as investment.
617
00:28:13,320 --> 00:28:16,158
To others, Bitcoin is an escape hatch
618
00:28:16,182 --> 00:28:18,366
that will take them away from risk,
619
00:28:18,390 --> 00:28:20,306
an insurance against financial doomsday,
620
00:28:20,330 --> 00:28:22,841
a way out of the debt crisis,
621
00:28:22,865 --> 00:28:24,220
negative interest rates,
622
00:28:24,244 --> 00:28:27,017
trade wars, and economic downturn.
623
00:28:27,041 --> 00:28:29,027
They say it's an anti-fragile asset
624
00:28:29,051 --> 00:28:32,112
uncorrelated to financial markets.
625
00:28:32,136 --> 00:28:33,551
So who's right here?
626
00:28:33,575 --> 00:28:35,579
Well, every time I turn on the television,
627
00:28:35,603 --> 00:28:37,057
it gets even more confusing.
628
00:28:37,081 --> 00:28:38,281
Bitcoin is worth about a bit
629
00:28:39,723 --> 00:28:40,533
under $200 billion today.
630
00:28:40,557 --> 00:28:43,211
All the gold in the world
is worth eight trillion,
631
00:28:43,235 --> 00:28:45,439
and it could become the next gold.
632
00:28:45,463 --> 00:28:48,446
In terms of cryptocurrencies, generally,
633
00:28:48,470 --> 00:28:51,692
I can say almost with certainty
634
00:28:51,716 --> 00:28:53,964
that they will come to a bad ending.
635
00:28:53,988 --> 00:28:57,926
But if Bitcoin is out
there, and gold is out there,
636
00:28:57,950 --> 00:29:01,393
it can be a participant in
bringing down the dollar.
637
00:29:01,417 --> 00:29:03,111
I say it's the mother of all bubbles,
638
00:29:03,135 --> 00:29:05,349
and it's also the biggest
bubble in human history.
639
00:29:05,373 --> 00:29:07,097
Do you think this is a currency?
640
00:29:07,121 --> 00:29:08,811
A currency that's really
gonna work eventually?
641
00:29:08,835 --> 00:29:10,920
Well, I think it is working.
642
00:29:10,944 --> 00:29:14,400
And there will be other currencies like it
643
00:29:14,424 --> 00:29:15,948
that may be even better.
644
00:29:15,972 --> 00:29:17,872
Bitcoin is successful
645
00:29:17,896 --> 00:29:22,019
only because of its
potential for circumvention,
646
00:29:22,043 --> 00:29:24,508
lack of oversight.
647
00:29:24,532 --> 00:29:26,890
So it seems to me it ought to be outlawed.
648
00:29:26,914 --> 00:29:30,025
It doesn't serve any
social useful function.
649
00:29:30,049 --> 00:29:32,861
This film
isn't investment advice,
650
00:29:32,885 --> 00:29:34,808
but it strikes me that
most of these TV shows
651
00:29:34,832 --> 00:29:36,619
just want to stir controversy.
652
00:29:36,643 --> 00:29:39,303
They don't understand what's going on,
653
00:29:39,327 --> 00:29:41,263
but they know that filling airtime
654
00:29:41,287 --> 00:29:42,781
with a controversial topic
655
00:29:42,805 --> 00:29:44,186
will get them higher ratings.
656
00:29:44,210 --> 00:29:46,114
So how about the general public?
657
00:29:46,138 --> 00:29:48,805
In America, the younger generation
658
00:29:48,829 --> 00:29:50,985
already starts to trust
this new asset class
659
00:29:51,009 --> 00:29:52,991
and Wences says Bitcoin
660
00:29:53,015 --> 00:29:55,039
may reach a million dollars per coin.
661
00:29:55,063 --> 00:29:59,774
I would say the
biggest financial mistake
662
00:29:59,798 --> 00:30:00,833
you can make right now
663
00:30:00,857 --> 00:30:02,781
is to own an amount of Bitcoin
664
00:30:02,805 --> 00:30:04,130
that you cannot afford to lose
665
00:30:04,154 --> 00:30:06,368
because it's super risky
and you may lose it.
666
00:30:06,392 --> 00:30:08,456
The second biggest financial
mistake you can make
667
00:30:08,480 --> 00:30:09,964
is not to own any.
668
00:30:09,988 --> 00:30:14,983
Because you put 1% of
your net worth in Bitcoin.
669
00:30:15,244 --> 00:30:19,084
Most people can afford to
lose 1% of their net worth.
670
00:30:19,108 --> 00:30:20,334
And if I am right,
671
00:30:20,358 --> 00:30:22,641
it's gonna be more than
100% of your net worth,
672
00:30:22,665 --> 00:30:24,213
so with a non-material exposure,
673
00:30:24,237 --> 00:30:25,948
you change your life.
674
00:30:25,972 --> 00:30:28,695
Now what you would spend
on a romantic weekend
675
00:30:28,719 --> 00:30:29,595
with your wife,
676
00:30:29,619 --> 00:30:32,381
say sorry, we're not gonna
do that this weekend.
677
00:30:32,405 --> 00:30:33,916
I'm gonna just buy Bitcoin.
678
00:30:33,940 --> 00:30:35,270
Consider it spent.
679
00:30:35,294 --> 00:30:37,548
It disappears, and check in seven years.
680
00:30:37,572 --> 00:30:41,602
I either give you bad advice,
and cost you a weekend,
681
00:30:41,626 --> 00:30:44,020
or I want a grandkid called Wencito.
682
00:30:46,991 --> 00:30:49,894
But what you fail to
mention is that the currency,
683
00:30:49,918 --> 00:30:51,133
the micro transaction.
684
00:30:51,157 --> 00:30:53,235
All of that is irrelevant, right?
685
00:30:53,259 --> 00:30:56,547
Meaning all of the cryptocurrencies
686
00:30:56,571 --> 00:30:57,566
are way too volatile
687
00:30:57,590 --> 00:30:59,180
for anyone to take them seriously.
688
00:30:59,204 --> 00:31:02,322
Hold on, let's go back
to where we started.
689
00:31:02,346 --> 00:31:04,630
Bitcoin was created as peer
to peer electronic cash.
690
00:31:04,654 --> 00:31:06,258
That was the killer app,
691
00:31:06,282 --> 00:31:07,954
a payment directly from you to me,
692
00:31:07,978 --> 00:31:10,126
from me to the coffee shop.
693
00:31:10,150 --> 00:31:13,701
I have bought a bag of coffee
694
00:31:13,725 --> 00:31:16,802
for two Bitcoin in 2012,
695
00:31:16,826 --> 00:31:21,821
which today costs me
$12,000 in today's money.
696
00:31:22,026 --> 00:31:24,636
That is a deflationary effect.
697
00:31:24,660 --> 00:31:29,235
As long as Bitcoin keeps doing
sudden increases in prices,
698
00:31:29,259 --> 00:31:32,629
that's gonna stop retail
use in it's tracks.
699
00:31:32,653 --> 00:31:35,918
With Bitcoin, you can
send $1 or $1 million
700
00:31:35,942 --> 00:31:37,856
worth of value anywhere in the world.
701
00:31:37,880 --> 00:31:39,062
You can do it for free.
702
00:31:39,086 --> 00:31:41,133
But basically,
looking at it now,
703
00:31:41,157 --> 00:31:42,409
you lied to us.
704
00:31:42,433 --> 00:31:44,879
Yeah, that's what they
all used to tell me,
705
00:31:44,903 --> 00:31:49,065
cheap, easy, fast, global, unstoppable.
706
00:31:49,089 --> 00:31:51,902
I'm not done with you, pal.
707
00:31:51,926 --> 00:31:53,613
But I need to explain what happened here.
708
00:31:53,637 --> 00:31:57,028
Every block contains about
one megabyte of data,
709
00:31:57,052 --> 00:31:59,856
much smaller than a photo
you post on Instagram.
710
00:31:59,880 --> 00:32:03,860
That means only a limited
number of transactions
711
00:32:03,884 --> 00:32:05,668
can fit into each block.
712
00:32:05,692 --> 00:32:07,431
If you want your payment to jump the line,
713
00:32:07,455 --> 00:32:09,623
you can choose to pay a premium fee
714
00:32:09,647 --> 00:32:11,387
or sit and wait.
715
00:32:11,411 --> 00:32:13,715
At one point, the blocks became so full
716
00:32:13,739 --> 00:32:16,650
that the transaction time
went to several hundred hours.
717
00:32:16,674 --> 00:32:19,192
That's days!
718
00:32:19,216 --> 00:32:21,947
And it was more expensive than
international wire services.
719
00:32:21,971 --> 00:32:25,419
It got so bad that a Bitcoin conference
720
00:32:25,443 --> 00:32:27,517
wouldn't take payment in Bitcoins!
721
00:32:27,541 --> 00:32:30,353
And he's the guy who promised
me moving money fast and for free.
722
00:32:30,377 --> 00:32:33,617
What went wrong?
723
00:32:33,641 --> 00:32:36,807
That's a direct intentional result
724
00:32:36,831 --> 00:32:38,346
of Bitcoin Core's policies
725
00:32:38,370 --> 00:32:40,264
of intentionally making it slow,
726
00:32:40,288 --> 00:32:41,801
expensive and unreliable.
727
00:32:41,825 --> 00:32:43,824
And Roger blames this guy
728
00:32:44,726 --> 00:32:47,568
for Bitcoin not becoming a
mainstream global currency.
729
00:32:47,592 --> 00:32:51,308
There are no shortage
of conspiracy theories.
730
00:32:53,265 --> 00:32:55,757
Blockstream was founded in 2014.
731
00:32:55,781 --> 00:32:59,484
The original co-founders are
a lot of core developers.
732
00:32:59,508 --> 00:33:00,903
Those are the software coders
733
00:33:00,927 --> 00:33:03,364
who continue building Bitcoin
after Satoshi vanished.
734
00:33:03,388 --> 00:33:06,858
Roger thinks those guys sabotaged
the scaling of the network
735
00:33:06,882 --> 00:33:10,189
so Blockstream could promote
its own software solutions.
736
00:33:10,213 --> 00:33:12,068
Sampson says come on,
737
00:33:12,092 --> 00:33:14,815
the blockchain is already 200
Gigabytes large and growing.
738
00:33:14,839 --> 00:33:17,100
Every transaction made
739
00:33:17,124 --> 00:33:19,764
has to go out to the whole network.
740
00:33:19,788 --> 00:33:22,724
And every block that contains
that transaction that is mined
741
00:33:22,748 --> 00:33:25,039
has also to go out to the whole network.
742
00:33:25,063 --> 00:33:27,208
And it has to be stored for eternity.
743
00:33:27,232 --> 00:33:29,094
The argument,
744
00:33:29,118 --> 00:33:31,751
more independent miners will
continue running Bitcoin
745
00:33:31,775 --> 00:33:33,935
and ensure decentralisation
746
00:33:33,959 --> 00:33:36,265
if the blockchain is kept small.
747
00:33:36,289 --> 00:33:38,497
In his view, this decentralisation
748
00:33:38,521 --> 00:33:40,296
is what makes Bitcoin valuable,
749
00:33:40,320 --> 00:33:42,149
a store of value!
750
00:33:42,173 --> 00:33:45,079
So holding Bitcoin is also a use case.
751
00:33:45,103 --> 00:33:46,707
And that store money hypothesis,
752
00:33:46,731 --> 00:33:47,926
I cannot get my head around.
753
00:33:47,950 --> 00:33:48,948
It's the most,
754
00:33:48,972 --> 00:33:52,152
like, nutty thing I've ever heard.
755
00:33:52,176 --> 00:33:54,519
One philosophy could
be described as Bitcoin
756
00:33:54,543 --> 00:33:56,927
as digital gold, and the other philosophy
757
00:33:56,951 --> 00:33:59,075
could be described as
Bitcoin as digital cash.
758
00:33:59,099 --> 00:34:00,645
The other team said
759
00:34:00,669 --> 00:34:02,677
you guys have it the wrong way around.
760
00:34:02,701 --> 00:34:05,428
First, Bitcoin needs to
be usable as a currency,
761
00:34:05,452 --> 00:34:07,536
a medium of exchange.
762
00:34:07,560 --> 00:34:09,319
Then, maybe, it will become stable
763
00:34:09,343 --> 00:34:10,963
and a store of value.
764
00:34:13,394 --> 00:34:16,367
The solution is easy, just
increase the size of the blocks
765
00:34:16,391 --> 00:34:18,435
from one to two, four, eight megabytes
766
00:34:18,459 --> 00:34:20,294
so that more transactions fit into them.
767
00:34:20,318 --> 00:34:22,423
This will lower the fees,
768
00:34:22,447 --> 00:34:25,690
and people will start using
Bitcoin as cash again.
769
00:34:25,714 --> 00:34:28,086
The original title of
the Bitcoin white paper
770
00:34:28,110 --> 00:34:29,985
is Bitcoin, an electronic peer to peer
771
00:34:30,009 --> 00:34:32,301
electronic cash system.
772
00:34:32,325 --> 00:34:33,980
But you know,
Satoshi's white paper
773
00:34:34,004 --> 00:34:35,149
isn't the Bible.
774
00:34:35,173 --> 00:34:36,039
It's not a religion.
775
00:34:36,063 --> 00:34:38,116
Stuff changes, we evolve,
776
00:34:38,140 --> 00:34:39,634
we might find out new things.
777
00:34:39,658 --> 00:34:43,139
So why this fixation on that white paper
778
00:34:43,163 --> 00:34:46,267
created 10 years ago.
779
00:34:46,291 --> 00:34:47,476
There isn't any fixation.
780
00:34:47,500 --> 00:34:49,716
It's not the version of Bitcoin
that I got involved with,
781
00:34:49,740 --> 00:34:51,016
and it's not the version of Bitcoin
782
00:34:51,040 --> 00:34:52,991
that I want to support.
783
00:34:53,015 --> 00:34:54,339
So Roger joined forces
784
00:34:54,363 --> 00:34:56,324
with a controversial online
gambling billionaire, Bitmain,
785
00:34:56,348 --> 00:34:59,494
a Chinese crypto mining
company and this guy.
786
00:34:59,518 --> 00:35:04,513
I'll do whatever the
fuck I want with my money.
787
00:35:04,667 --> 00:35:06,198
Okay?!
788
00:35:06,222 --> 00:35:08,485
Anyway, they forced a software fork,
789
00:35:08,509 --> 00:35:10,596
which is a split into
two separate blockchains.
790
00:35:10,620 --> 00:35:13,567
Every holder of Bitcoin now also owned
791
00:35:13,591 --> 00:35:15,337
the same amount of Bitcoin cash.
792
00:35:15,361 --> 00:35:19,274
Roger had nothing to do with
the creation of Bitcoin cash.
793
00:35:19,298 --> 00:35:20,197
Roger didn't know about it
794
00:35:20,221 --> 00:35:22,056
until a few weeks before
it actually happened.
795
00:35:22,080 --> 00:35:24,269
But still, Bitcoin Jesus
796
00:35:24,293 --> 00:35:25,850
had become Bitcoin Judas.
797
00:35:25,874 --> 00:35:28,746
Every revolution is followed
by the counter-revolution,
798
00:35:28,770 --> 00:35:32,254
which is usually a purge of
the original revolutionaries.
799
00:35:32,278 --> 00:35:36,595
People are very
passionate about Bitcoin.
800
00:35:36,619 --> 00:35:41,572
And that's why they show a lot of emotion.
801
00:35:41,596 --> 00:35:42,871
When you're part of a tribe,
802
00:35:42,895 --> 00:35:44,799
you get very religious about your tribe,
803
00:35:44,823 --> 00:35:46,773
making the other tribe almost your enemy.
804
00:35:46,797 --> 00:35:50,182
It's very hard to debate Roger
805
00:35:50,206 --> 00:35:53,242
because a lot of what he's
saying is just his opinions
806
00:35:53,266 --> 00:35:54,589
and his emotions.
807
00:35:54,613 --> 00:35:56,732
You cannot debate someone's emotions.
808
00:35:56,756 --> 00:36:00,293
And then they basically
diverted entire Bitcoin project
809
00:36:00,317 --> 00:36:03,520
into something that wasn't
usable as peer to peer cash.
810
00:36:03,544 --> 00:36:05,069
When he gave his talk,
811
00:36:05,093 --> 00:36:08,315
I kinda knew that that
whole debate slash panel,
812
00:36:08,339 --> 00:36:10,064
I kind of expected it to go off the rails,
813
00:36:10,088 --> 00:36:11,692
but I didn't expect killing babies.
814
00:36:11,716 --> 00:36:12,840
So that means more babies
815
00:36:12,864 --> 00:36:15,998
are dying in countries around the world
816
00:36:16,022 --> 00:36:18,235
because they have less economic freedom.
817
00:36:18,259 --> 00:36:20,303
More people are starving to death
818
00:36:20,327 --> 00:36:22,114
because they have less economic freedom.
819
00:36:22,138 --> 00:36:25,228
People are literally
dying because of this.
820
00:36:25,252 --> 00:36:26,109
I'm not exaggerating.
821
00:36:26,133 --> 00:36:27,623
This is a life and death matter.
822
00:36:27,647 --> 00:36:30,614
And remember
that list of promises
823
00:36:30,638 --> 00:36:32,282
that early Bitcoiners championed?
824
00:36:32,306 --> 00:36:36,504
Cheap, easy, fast, unstoppable.
825
00:36:36,528 --> 00:36:38,178
I forgot one.
826
00:36:38,202 --> 00:36:40,054
If you don't support free speech,
827
00:36:40,078 --> 00:36:41,182
you don't support Bitcoin.
828
00:36:41,206 --> 00:36:42,411
You're an enemy of Bitcoin.
829
00:36:42,435 --> 00:36:45,009
Censorship
shall not be abided.
830
00:36:45,033 --> 00:36:46,617
In fact, I myself
831
00:36:46,641 --> 00:36:48,625
have tried posting just a direct quote
832
00:36:48,649 --> 00:36:49,894
from Satoshi Nakamoto,
833
00:36:49,918 --> 00:36:50,973
the creator of Bitcoin.
834
00:36:50,997 --> 00:36:53,588
I think Roger complains a
lot about censorship on Reddit,
835
00:36:53,612 --> 00:36:58,096
but Reddit is just one of many platforms.
836
00:36:58,120 --> 00:36:59,866
Word for word quote from Satoshi,
837
00:36:59,890 --> 00:37:02,191
without any additional
commentary from myself at all,
838
00:37:02,215 --> 00:37:04,779
and I've had that post deleted.
839
00:37:04,803 --> 00:37:06,547
Even though I may not
agree with a lot of things
840
00:37:06,571 --> 00:37:07,816
that Roger Ver is doing now,
841
00:37:07,840 --> 00:37:09,202
I do sympathise with him
842
00:37:09,226 --> 00:37:11,370
and his frustration with being censored.
843
00:37:11,394 --> 00:37:13,730
They're literally censoring the words
844
00:37:13,754 --> 00:37:15,278
of the creator of Bitcoin.
845
00:37:15,302 --> 00:37:16,427
Ultimately, it's just a forum
846
00:37:16,451 --> 00:37:18,006
that these guys set up
847
00:37:18,030 --> 00:37:19,384
to talk about Bitcoin,
848
00:37:19,408 --> 00:37:21,196
and they can do whatever
they want with it, right?
849
00:37:21,220 --> 00:37:23,880
When I first
started covering this space,
850
00:37:23,904 --> 00:37:25,688
everyone was united in their struggle
851
00:37:25,712 --> 00:37:27,306
against the establishment.
852
00:37:27,330 --> 00:37:28,984
Now the industry has grown so much
853
00:37:29,008 --> 00:37:30,933
that they are competing parties,
854
00:37:30,957 --> 00:37:33,094
propaganda machines, conspiracy theories.
855
00:37:33,118 --> 00:37:35,188
Looks a lot like politics.
856
00:37:35,212 --> 00:37:37,799
The biggest fight within
the Bitcoin ecosystem
857
00:37:37,823 --> 00:37:38,905
is over at the moment
858
00:37:38,929 --> 00:37:40,894
is who has the right to the name Bitcoin?
859
00:37:40,918 --> 00:37:42,161
But at the end of the day,
860
00:37:42,185 --> 00:37:44,289
I think the version of Bitcoin described
861
00:37:44,313 --> 00:37:45,412
in the Bitcoin white paper
862
00:37:45,436 --> 00:37:48,204
has the strongest claim
to the name Bitcoin
863
00:37:48,228 --> 00:37:49,421
than anything else.
864
00:37:49,445 --> 00:37:51,202
And that's Bitcoin Cash.
865
00:37:51,226 --> 00:37:52,675
Roger owns Bitcoin.com
866
00:37:53,694 --> 00:37:55,128
and he has every intention
of bringing Bitcoin Cash
867
00:37:55,152 --> 00:37:56,477
to the masses,
868
00:37:56,501 --> 00:37:58,001
even if it means that some people
869
00:37:58,025 --> 00:37:59,374
coming to his website
870
00:37:59,398 --> 00:38:00,900
think that they're buying Bitcoin
871
00:38:00,924 --> 00:38:02,788
but they're getting Bitcoin Cash.
872
00:38:04,103 --> 00:38:06,914
I think it's fraudulent to
say that in causing people
873
00:38:06,938 --> 00:38:10,178
to buy Bitcoin Cash when they
actually want to buy Bitcoin.
874
00:38:28,479 --> 00:38:29,904
So Bitcoin core fans
875
00:38:29,928 --> 00:38:32,481
say Roger is hijacking the brand name,
876
00:38:32,505 --> 00:38:35,318
and Bitcoin Cash supports
claim that Blockstream
877
00:38:35,342 --> 00:38:37,946
is hijacking Bitcoin's development.
878
00:38:37,970 --> 00:38:39,433
I mean yeah, it is
a conflict of interest
879
00:38:39,457 --> 00:38:43,210
because they're developing
this open source protocol
880
00:38:43,234 --> 00:38:46,512
in a way where their
company can benefit from it.
881
00:38:46,536 --> 00:38:48,195
Everything we're doing is open source,
882
00:38:48,219 --> 00:38:52,681
so it's not like there's
some secrecy or anything.
883
00:38:52,705 --> 00:38:54,919
You can see all the code that's committed,
884
00:38:54,943 --> 00:38:56,656
and it does go through
this vetting process.
885
00:38:56,680 --> 00:38:58,596
They have had influence.
886
00:38:58,620 --> 00:39:01,709
I wouldn't say it's not true.
887
00:39:01,733 --> 00:39:05,488
But I don't think they
have enough influence
888
00:39:05,512 --> 00:39:08,135
to actually corrupt Bitcoin.
889
00:39:08,159 --> 00:39:10,093
We no longer have anyone
maintaining the project
890
00:39:10,117 --> 00:39:11,202
just because we don't want
891
00:39:11,226 --> 00:39:13,777
that potential conflict of interest.
892
00:39:13,801 --> 00:39:16,542
But in a way, now they've
won the battle anyways.
893
00:39:16,566 --> 00:39:19,128
So who won
Bitcoin's first war?
894
00:39:19,152 --> 00:39:21,789
Well, both parties got their way.
895
00:39:21,813 --> 00:39:25,110
After the split, the market
valued Bitcoins much higher.
896
00:39:25,134 --> 00:39:29,695
And Bitcoin Cash transaction
fees were much lower.
897
00:39:29,719 --> 00:39:32,693
The benefit of the scaling
debate or civil war was
898
00:39:32,717 --> 00:39:34,769
Bitcoin was battle tested.
899
00:39:34,793 --> 00:39:36,327
Like a lot of companies
900
00:39:36,351 --> 00:39:37,626
and a lot of powerful people
901
00:39:37,650 --> 00:39:42,201
tried very hard to try to
change Bitcoin, and they failed.
902
00:39:42,225 --> 00:39:45,335
This thing that
Satoshi Nakamoto launched
903
00:39:45,359 --> 00:39:49,151
is much more resilient
than anyone even hoped.
904
00:39:55,102 --> 00:39:56,437
I know, I know, you want to find out
905
00:39:56,461 --> 00:39:57,925
what any of this has to do
906
00:39:57,949 --> 00:40:00,743
with this new crytopia,
a revolutionary internet.
907
00:40:00,767 --> 00:40:01,623
We'll get there, I promise.
908
00:40:01,647 --> 00:40:05,071
But first, we need to go from
Bitcoins original blockchain
909
00:40:05,095 --> 00:40:06,933
to hundreds of blockchains.
910
00:40:09,308 --> 00:40:12,097
Back in 2011, when Charlie
Lee was a Google engineer,
911
00:40:12,121 --> 00:40:14,339
he wanted a faster and lighter version
912
00:40:14,363 --> 00:40:15,999
of Satoshi's cryptocurrency,
913
00:40:16,023 --> 00:40:18,063
and was one of the first to experiment
914
00:40:18,087 --> 00:40:20,219
with the open source software.
915
00:40:20,243 --> 00:40:22,760
The actual coding in terms
of the code differences
916
00:40:22,784 --> 00:40:24,699
became Bitcoin and Litecoin
917
00:40:24,723 --> 00:40:25,928
was actually pretty trivial.
918
00:40:25,952 --> 00:40:28,033
And what does that mean in time?
919
00:40:28,057 --> 00:40:32,727
I would say like four,
four or five hours.
920
00:40:32,751 --> 00:40:34,812
Litecoin was positioned as silver
921
00:40:34,836 --> 00:40:36,607
to Bitcoin's gold.
922
00:40:36,631 --> 00:40:39,308
And it's network value grew
to billions of dollars.
923
00:40:39,332 --> 00:40:42,531
Some critics say: Well, you
sold at the highest point,
924
00:40:42,555 --> 00:40:44,219
and you kind of hurt the community.
925
00:40:44,243 --> 00:40:45,538
What's your response to that?
926
00:40:45,562 --> 00:40:47,995
When I sold, no one knew
it was at the highest point.
927
00:40:48,019 --> 00:40:49,514
I didn't know it was gonna
be the highest point.
928
00:40:49,538 --> 00:40:50,948
Everyone thought it was
gonna keep going up.
929
00:40:50,972 --> 00:40:53,917
In hindsight, it was good timing,
930
00:40:53,941 --> 00:40:55,505
selling it at that high.
931
00:40:55,529 --> 00:40:58,182
But I'm still focused
full-time on Litecoin adoption,
932
00:40:58,206 --> 00:41:01,242
and working on Litecoin,
Litecoin development.
933
00:41:01,266 --> 00:41:03,476
So it's not like I sold it and just quit.
934
00:41:03,500 --> 00:41:06,696
Nobody gets to kind of dictate
935
00:41:06,720 --> 00:41:10,108
how Bitcoin improves or grows.
936
00:41:10,132 --> 00:41:14,959
Whereas with Litecoin, I
have a strong influence
937
00:41:14,983 --> 00:41:16,876
on the growth of Litecoin,
938
00:41:16,900 --> 00:41:18,061
which is good and bad.
939
00:41:18,085 --> 00:41:22,311
It's kinda like difference
between the benevolent dictator
940
00:41:22,335 --> 00:41:25,274
versus a democracy.
941
00:41:25,298 --> 00:41:27,749
The benevolent dictator is more efficient,
942
00:41:27,773 --> 00:41:29,544
but you have to assume
943
00:41:29,568 --> 00:41:31,316
that the benevolent
dictator stays benevolent.
944
00:41:31,340 --> 00:41:32,720
Let's put a pin in that.
945
00:41:32,744 --> 00:41:35,865
Litecoin was one of the first
alternative cryptocurrencies,
946
00:41:35,889 --> 00:41:37,598
or alt-coins.
947
00:41:37,622 --> 00:41:40,727
Some of the early adopters,
like Charlie, made fortunes.
948
00:41:40,751 --> 00:41:42,940
Soon, there were hundreds of coins
949
00:41:42,964 --> 00:41:46,621
made by cryptographers,
copycats, and con-men.
950
00:41:46,645 --> 00:41:48,465
There's a coin for bloggers,
951
00:41:48,489 --> 00:41:50,276
a currency for online gamers,
952
00:41:50,300 --> 00:41:53,120
one with anonymity,
and even one for banks.
953
00:41:53,144 --> 00:41:56,950
But can this invention unleash
something even more powerful
954
00:41:56,974 --> 00:41:58,964
than digital currencies?
955
00:42:03,044 --> 00:42:06,321
Back in 2014, I met the
kid who knew how to do it.
956
00:42:06,345 --> 00:42:08,665
Hi, I'm Vitalik Buterin,
957
00:42:08,689 --> 00:42:10,643
co-founder of Bitcoin Magazine,
958
00:42:10,667 --> 00:42:11,476
founder of Ethereum,
959
00:42:11,500 --> 00:42:14,141
and just general Bitcoin and
crypto currency advocate.
960
00:42:14,165 --> 00:42:16,062
Just 19 years old,
961
00:42:16,086 --> 00:42:19,241
Vitalik was on a mission
to make money programmable.
962
00:42:23,704 --> 00:42:25,346
Vitalik is a very very smart guy.
963
00:42:25,370 --> 00:42:28,834
The thing about Vitalik is
he was pushed away of Bitcoin
964
00:42:28,858 --> 00:42:32,511
because he had gone to to
Bitcoin Core developers
965
00:42:32,535 --> 00:42:35,268
and tried to build
Ethereum on top of Bitcoin.
966
00:42:35,292 --> 00:42:38,067
And they basically
said nope, not interested.
967
00:42:38,091 --> 00:42:40,943
So he built a separate
blockchain called Ethereum,
968
00:42:40,967 --> 00:42:43,690
with its own currency called Ether.
969
00:42:43,714 --> 00:42:47,229
A comparison might be
Bitcoin is like a spreadsheet,
970
00:42:47,253 --> 00:42:50,514
and Ethereum is like a
spreadsheet with macros.
971
00:42:50,538 --> 00:42:53,849
Using our
analogy, Ethereum allows you
972
00:42:53,873 --> 00:42:56,477
to store cryptocurrency and computer code
973
00:42:56,501 --> 00:42:58,092
in the same secure box.
974
00:43:00,337 --> 00:43:01,589
Here's how a smart contract might work.
975
00:43:01,613 --> 00:43:04,469
Let's say I bet Charlie
976
00:43:04,493 --> 00:43:07,486
that a Litecoin will be worth $200
977
00:43:07,510 --> 00:43:09,438
on January 1st of next year.
978
00:43:09,462 --> 00:43:11,712
We each put an ether into a box
979
00:43:11,736 --> 00:43:13,290
along with a smart contract,
980
00:43:13,314 --> 00:43:15,628
a simple programme that
automatically checks
981
00:43:15,652 --> 00:43:17,036
the price of Litecoins
982
00:43:17,060 --> 00:43:18,655
on that future date.
983
00:43:18,679 --> 00:43:20,673
If I'm right, the money goes to me.
984
00:43:20,697 --> 00:43:21,533
If I'm wrong,
985
00:43:21,557 --> 00:43:22,668
it's sent to Charlie.
986
00:43:27,080 --> 00:43:29,566
A smart contract is
neither smart nor a contract.
987
00:43:29,590 --> 00:43:31,106
It's a dumb program.
988
00:43:31,130 --> 00:43:34,624
And once you understand that
all it is a dumb program,
989
00:43:34,648 --> 00:43:36,429
that clarifies a lot of stuff.
990
00:43:36,453 --> 00:43:39,492
And the word contract there
is in the meaning of finance.
991
00:43:39,516 --> 00:43:42,453
Most financial arrangements
992
00:43:42,477 --> 00:43:44,673
are pretty simple and clear cut.
993
00:43:44,697 --> 00:43:46,387
A bet with Charlie,
994
00:43:46,411 --> 00:43:47,317
your home loan,
995
00:43:47,341 --> 00:43:48,447
and insurance policy,
996
00:43:48,471 --> 00:43:51,503
just two parties and some
form of exchange of value
997
00:43:51,527 --> 00:43:54,020
based on a set of rules called a contract.
998
00:43:54,044 --> 00:43:56,496
The same is true for
global financial markets.
999
00:43:56,520 --> 00:43:59,493
Think bonds, futures, derivatives,
1000
00:43:59,517 --> 00:44:01,462
credit default swaps.
1001
00:44:01,486 --> 00:44:03,180
They're all just contracts,
1002
00:44:03,204 --> 00:44:05,565
and the world economy runs
on them using middlemen
1003
00:44:05,589 --> 00:44:07,731
who all charge high fees.
1004
00:44:07,755 --> 00:44:11,015
Proponents say that if
we used smart contracts,
1005
00:44:11,039 --> 00:44:12,860
we could tell the bankers,
1006
00:44:12,884 --> 00:44:16,427
lawyers, escrow agents, and
Wall Street finance guys
1007
00:44:16,451 --> 00:44:17,725
to take a hike.
1008
00:44:17,749 --> 00:44:20,712
A soda machine is a smart
contract machine, right.
1009
00:44:20,736 --> 00:44:22,872
You stick in a dollar, you get a soda.
1010
00:44:22,896 --> 00:44:24,678
It's very, very simple.
1011
00:44:24,702 --> 00:44:26,322
The soda machine does take statistics,
1012
00:44:26,346 --> 00:44:28,954
and it has to make sure
that you can't scam it
1013
00:44:28,978 --> 00:44:30,473
by stealing the soda,
1014
00:44:30,497 --> 00:44:32,820
but Ethereum and the people
1015
00:44:32,844 --> 00:44:34,313
that are trying to decentralise this
1016
00:44:34,337 --> 00:44:37,416
will tell you that that transaction,
1017
00:44:37,440 --> 00:44:39,877
that smart contract between
you and the soda machine
1018
00:44:39,901 --> 00:44:43,798
is so critical that it needs
to be globally processed
1019
00:44:43,822 --> 00:44:47,997
and saved at 100,000
decentralised computers
1020
00:44:48,021 --> 00:44:50,283
because it is so sensitive.
1021
00:44:50,307 --> 00:44:53,836
And in reality, 99% of
all of these contracts,
1022
00:44:53,860 --> 00:44:57,645
they don't need this kind
of censorship resistance.
1023
00:44:57,669 --> 00:44:58,654
You know, in two years time
1024
00:44:58,678 --> 00:44:59,913
when people will see this film,
1025
00:44:59,937 --> 00:45:00,746
or in four years time,
1026
00:45:00,770 --> 00:45:03,560
I think will be an
interesting historic moment.
1027
00:45:03,584 --> 00:45:05,825
What we're doing is we're saying,
1028
00:45:05,849 --> 00:45:06,658
we have this Ethereum network,
1029
00:45:06,682 --> 00:45:09,140
inside the Ethereum network
there's this asset called Ether,
1030
00:45:09,164 --> 00:45:11,482
and we're actually going
to be selling Ether.
1031
00:45:11,506 --> 00:45:12,362
We're going to be selling Ether
1032
00:45:12,386 --> 00:45:14,379
at a rate of 1,000 to 2,000
Ether for one Bitcoin.
1033
00:45:14,403 --> 00:45:16,956
And that's how we're
gonna raise all the money.
1034
00:45:16,980 --> 00:45:18,325
It worked.
1035
00:45:18,349 --> 00:45:19,934
Vitalik figured out a way
to fun the Ethereum project.
1036
00:45:19,958 --> 00:45:22,634
And it made his investors very rich.
1037
00:45:25,681 --> 00:45:27,437
This new model for
fundraising soon had a name,
1038
00:45:27,461 --> 00:45:31,671
and initial coin offering, or ICO.
1039
00:45:31,695 --> 00:45:34,728
IPOs and ICOs sound similar,
1040
00:45:34,752 --> 00:45:36,906
but they have, they're nothing similar.
1041
00:45:36,930 --> 00:45:38,135
The only thing similar about them
1042
00:45:38,159 --> 00:45:40,350
is they both help you raise money.
1043
00:45:41,591 --> 00:45:44,499
IPOs, you don't do until
you have a company,
1044
00:45:44,523 --> 00:45:45,627
until you have revenue,
1045
00:45:45,651 --> 00:45:46,886
until you have users,
1046
00:45:46,910 --> 00:45:49,733
until you can actually prove
to the public investors
1047
00:45:49,757 --> 00:45:50,992
that this is a valuable company
1048
00:45:51,016 --> 00:45:52,081
that's worth investing in,
1049
00:45:52,105 --> 00:45:53,929
and it's worth buying their stock.
1050
00:45:53,953 --> 00:45:57,017
ICOs, it's pre-product.
1051
00:45:57,041 --> 00:45:59,534
You have maybe a couple
of people on the team.
1052
00:45:59,558 --> 00:46:01,042
It's just a white paper.
1053
00:46:01,066 --> 00:46:02,933
And so people are just buying into,
1054
00:46:02,957 --> 00:46:06,262
trust into faith that this
is something that will exist.
1055
00:46:06,286 --> 00:46:08,876
And this is the
guy who opened the floodgates.
1056
00:46:08,900 --> 00:46:12,011
He crated a standard called ERC-20,
1057
00:46:12,035 --> 00:46:15,555
enabling you or me or
anyone to create an ICO.
1058
00:46:17,120 --> 00:46:18,355
So on the one hand,
1059
00:46:18,379 --> 00:46:19,295
you have these smart contracts,
1060
00:46:19,319 --> 00:46:21,026
these little programmes
that can talk to each other,
1061
00:46:21,050 --> 00:46:24,339
but you have to define how
do they talk to each other.
1062
00:46:24,363 --> 00:46:26,601
And because everybody now
agrees to that same standard.
1063
00:46:26,625 --> 00:46:29,464
Smart contracts can interact
1064
00:46:29,488 --> 00:46:30,957
within the entire Ethereum network
1065
00:46:30,981 --> 00:46:34,817
and the ERC-20 standard
allow the creation of tokens.
1066
00:46:34,841 --> 00:46:38,445
The goal here is like, ultimately,
1067
00:46:38,469 --> 00:46:39,484
I'd like to see eight year olds
1068
00:46:39,508 --> 00:46:40,898
building their own financial systems.
1069
00:46:40,922 --> 00:46:44,126
Yeah, but what if
some of these eight year olds
1070
00:46:44,150 --> 00:46:45,931
are also scammers?
1071
00:46:45,955 --> 00:46:49,246
So let's say I'm trying to do a ICO,
1072
00:46:49,270 --> 00:46:51,693
and I create a smart contract
1073
00:46:51,717 --> 00:46:54,375
where I create a million coins,
1074
00:46:54,399 --> 00:46:58,166
and one of the transactions is that if you
1075
00:46:58,190 --> 00:47:02,614
send me $100, I will send
you that many worth of coins.
1076
00:47:02,638 --> 00:47:05,283
It was a mad gold rush.
1077
00:47:05,307 --> 00:47:07,266
People realised wow, if,
1078
00:47:07,290 --> 00:47:09,903
if I can just pull up,
pull together a project
1079
00:47:09,927 --> 00:47:11,155
and a white paper, I can raise money.
1080
00:47:11,179 --> 00:47:13,047
Like a lot of money.
1081
00:47:30,586 --> 00:47:32,806
Some people hawking new
coins didn't actually exist.
1082
00:47:32,830 --> 00:47:35,857
This handsome chap is the graphic designer
1083
00:47:35,881 --> 00:47:37,565
of a Bulgarian ICO.
1084
00:47:37,589 --> 00:47:40,380
Actually, they just posted
a photo of Ryan Gosling.
1085
00:47:40,404 --> 00:47:43,529
Another project raised millions in Ether,
1086
00:47:43,553 --> 00:47:45,008
and then vanished,
1087
00:47:45,032 --> 00:47:47,785
leaving investors with this website.
1088
00:47:47,809 --> 00:47:50,202
Look closer, that's nice.
1089
00:47:50,226 --> 00:47:52,960
Most of the scam coins were built
1090
00:47:52,984 --> 00:47:54,355
on Vitalik's smart
contract platform Ethereum
1091
00:47:54,379 --> 00:47:57,454
using Fabian's token standard.
1092
00:47:57,478 --> 00:48:01,467
This innovation has enabled a
lot of criminals and scammers.
1093
00:48:01,491 --> 00:48:06,486
So I would say the amount of scams
1094
00:48:06,770 --> 00:48:09,823
in that system are rather low.
1095
00:48:09,847 --> 00:48:11,841
It sometimes looks bigger than it is.
1096
00:48:11,865 --> 00:48:14,908
I would assume that the actual scams,
1097
00:48:14,932 --> 00:48:18,405
purposeful scams, in that system
1098
00:48:18,429 --> 00:48:20,283
maybe were like two or three percent.
1099
00:48:20,307 --> 00:48:24,594
I would say actually
most ICOs were not scams.
1100
00:48:24,618 --> 00:48:27,975
I would say about two to
five percent of the thousands of ICOs
1101
00:48:27,999 --> 00:48:29,706
that are happening are actually legit.
1102
00:48:29,730 --> 00:48:31,523
And the rest is?
1103
00:48:31,547 --> 00:48:34,020
Pretty scammy, or just not gonna work.
1104
00:48:34,044 --> 00:48:38,819
Can you define for
me what a shitcoin is?
1105
00:48:40,339 --> 00:48:44,402
I think it's just a
derogatory term people use
1106
00:48:44,426 --> 00:48:47,359
on coins that they don't like
1107
00:48:47,383 --> 00:48:49,271
for Bitcoin maximalists,
1108
00:48:49,295 --> 00:48:51,721
people who only care about Bitcoin,
1109
00:48:51,745 --> 00:48:53,304
everything else is a shitcoin.
1110
00:48:53,328 --> 00:48:55,008
In my point of view,
1111
00:48:55,032 --> 00:48:59,723
I think a coin that is kind
of a scam is a shitcoin.
1112
00:48:59,747 --> 00:49:03,061
So people create coins
just to get rich from it,
1113
00:49:03,085 --> 00:49:05,847
print a lot of tokens out of thin air,
1114
00:49:05,871 --> 00:49:06,946
trying to pump the price up
1115
00:49:06,970 --> 00:49:08,884
and make a lot of money from it.
1116
00:49:08,908 --> 00:49:10,475
And it's not really
providing a lot of value
1117
00:49:10,499 --> 00:49:13,300
to the world.
1118
00:49:13,324 --> 00:49:15,198
No value for the world,
1119
00:49:15,222 --> 00:49:17,262
but they did add value for their creators.
1120
00:49:17,286 --> 00:49:19,787
If you can print billions
of tokens out of thin air
1121
00:49:19,811 --> 00:49:22,562
like a central bank,
well, that's why this guy
1122
00:49:22,586 --> 00:49:25,552
was one of the wealthiest men
on earth for a brief moment.
1123
00:49:25,576 --> 00:49:28,285
Here's how that happened.
1124
00:49:28,309 --> 00:49:30,632
There will only
every be 21 million Bitcoins,
1125
00:49:30,656 --> 00:49:33,170
and it's inventor had to earn them
1126
00:49:33,194 --> 00:49:34,808
by mining with his computers
1127
00:49:34,832 --> 00:49:36,386
just like everyone else.
1128
00:49:36,410 --> 00:49:37,775
There are more Litecoins,
1129
00:49:37,799 --> 00:49:40,045
and even more Ether in circulation.
1130
00:49:40,069 --> 00:49:42,942
Vitalik kept some portion to
fund the development team.
1131
00:49:42,966 --> 00:49:45,162
And then there's Ripple.
1132
00:49:45,186 --> 00:49:48,344
They created 100 billion XRP
1133
00:49:48,368 --> 00:49:51,041
but kept 80% for themselves
and their clients.
1134
00:49:51,065 --> 00:49:54,384
And the other 20%, they gave
as a bonus to the founders.
1135
00:49:54,408 --> 00:49:57,410
That's how you get to be one
of the richest men on earth.
1136
00:49:57,434 --> 00:50:00,795
Okay, maybe I
was a bit too harsh on ICOs
1137
00:50:00,819 --> 00:50:04,156
democratising start up
finance can be a good thing.
1138
00:50:04,180 --> 00:50:07,279
There were many legit
companies raising capital too.
1139
00:50:07,303 --> 00:50:09,733
Over the years, I've met many founders
1140
00:50:09,757 --> 00:50:12,131
who have real offices with real people
1141
00:50:12,155 --> 00:50:13,926
trying to solve real problems.
1142
00:50:15,424 --> 00:50:16,929
But to Bitcoin maximalists,
1143
00:50:16,953 --> 00:50:20,202
Bitcoin is the be all end
all of cryptocurrency.
1144
00:50:20,226 --> 00:50:23,460
Other blockchains, ICOs, smart contracts,
1145
00:50:23,484 --> 00:50:25,864
that's all a waste of time.
1146
00:50:29,682 --> 00:50:33,230
There is no such thing as blockchains,
1147
00:50:33,254 --> 00:50:36,107
that revolutionise the healthcare industry,
1148
00:50:36,131 --> 00:50:37,956
and the automotive production...
1149
00:50:37,980 --> 00:50:40,002
Of course there is.
1150
00:50:40,026 --> 00:50:40,953
Huh?
1151
00:50:40,977 --> 00:50:41,786
Of course there is.
1152
00:50:41,810 --> 00:50:43,005
What you're saying is a
maximalist point of view.
1153
00:50:43,029 --> 00:50:46,135
You are speaking about
from a perspective of,
1154
00:50:46,159 --> 00:50:48,382
of a cult or a sect.
1155
00:50:48,406 --> 00:50:53,289
My problem is that you
are hijacking a movement
1156
00:50:53,313 --> 00:50:55,730
of a technology that is far greater
1157
00:50:55,754 --> 00:50:57,905
and has far more potential
1158
00:50:57,929 --> 00:51:00,562
than just these individuals.
1159
00:51:00,586 --> 00:51:01,911
There's all of these different things
1160
00:51:01,935 --> 00:51:03,197
that you could use blockchain for, right.
1161
00:51:03,221 --> 00:51:04,688
And so people have,
1162
00:51:04,712 --> 00:51:06,563
they're almost like different ecosystems.
1163
00:51:06,587 --> 00:51:09,787
And then what you see is almost
like an evolutionary process
1164
00:51:09,811 --> 00:51:12,057
right, where the blockchains fork
1165
00:51:12,081 --> 00:51:13,849
and they have the same ancestries,
1166
00:51:13,873 --> 00:51:15,324
but they adapt to different environments
1167
00:51:15,348 --> 00:51:19,174
and we see this like every
increasing level of diversity
1168
00:51:19,198 --> 00:51:20,518
in number of blockchains.
1169
00:51:20,542 --> 00:51:22,860
So I think the idea that
here's like one blockchain,
1170
00:51:22,884 --> 00:51:23,693
gonna be one blockchain
1171
00:51:23,717 --> 00:51:25,506
and it's gonna be fit for everything,
1172
00:51:25,530 --> 00:51:30,525
it's almost like disregarding
the nature of evolution.
1173
00:51:30,879 --> 00:51:34,298
Meanwhile, the big corporations
1174
00:51:34,322 --> 00:51:35,696
have been studying cryptocurrency.
1175
00:51:35,720 --> 00:51:38,604
And they think that
Bitcoin's underlying database
1176
00:51:38,628 --> 00:51:39,923
is where the magic is.
1177
00:51:39,947 --> 00:51:41,358
The motto in the boardrooms,
1178
00:51:43,803 --> 00:51:45,611
Blockchain, not Bitcoin!
1179
00:51:49,761 --> 00:51:51,031
Back in Germany, my friend Oliver
1180
00:51:51,055 --> 00:51:53,409
keeps tabs on the men in suits.
1181
00:51:53,433 --> 00:51:54,935
He used to be one of them.
1182
00:51:59,677 --> 00:52:01,637
BMW is looking
at using the blockchain
1183
00:52:11,514 --> 00:52:13,739
for their future fleet of electric cars
1184
00:52:13,763 --> 00:52:15,666
to interact with public transport.
1185
00:52:15,690 --> 00:52:18,604
Lufthansa wants to see if the blockchain
1186
00:52:18,628 --> 00:52:20,212
can better track parts and maintenance.
1187
00:52:20,236 --> 00:52:23,299
And Deutsche Telekom is
using smart contracts
1188
00:52:23,323 --> 00:52:24,688
to negotiate tariffs
1189
00:52:24,712 --> 00:52:26,814
for roaming costs with other telecoms.
1190
00:52:33,453 --> 00:52:35,376
if we can store trade certificates
and shipping documents
1191
00:52:35,400 --> 00:52:37,096
on the blockchain,
1192
00:52:37,120 --> 00:52:40,003
you can check to see where
those organic avocados
1193
00:52:40,027 --> 00:52:41,813
really came from, who grew them,
1194
00:52:41,837 --> 00:52:43,479
who packed them,
1195
00:52:43,503 --> 00:52:44,552
and who shipped them.
1196
00:52:45,551 --> 00:52:47,185
Besides, the Internet of things
1197
00:52:47,209 --> 00:52:49,396
needs a ledger of all those things.
1198
00:52:49,420 --> 00:52:51,781
Well, that's the idea
1199
00:52:51,805 --> 00:52:53,909
behind private centralised blockchains,
1200
00:52:53,933 --> 00:52:56,436
maintained and controlled by corporations.
1201
00:52:56,460 --> 00:52:58,654
A famous example, the
Walmart supply chain trial,
1202
00:52:58,678 --> 00:53:00,620
which they're working with IBM.
1203
00:53:00,644 --> 00:53:02,940
That's a completely centralised.
1204
00:53:02,964 --> 00:53:06,376
They use a blockchain
derived product Hyperledger,
1205
00:53:06,400 --> 00:53:08,317
but all the nodes reside on the IBM cloud,
1206
00:53:08,341 --> 00:53:10,872
and they're all administered by Walmart,
1207
00:53:10,896 --> 00:53:13,108
and the supplier is used
because Walmart told them to.
1208
00:53:13,132 --> 00:53:15,326
It's a centralised database system!
1209
00:53:15,350 --> 00:53:17,103
But they marketed it Blockchain.
1210
00:53:17,127 --> 00:53:18,632
So that means one,
1211
00:53:18,656 --> 00:53:20,885
they wouldn't have got a
New York Times headline
1212
00:53:20,909 --> 00:53:22,627
if they just said database.
1213
00:53:22,651 --> 00:53:24,308
You might wonder
1214
00:53:24,332 --> 00:53:25,657
what's the point of a blockchain
1215
00:53:25,681 --> 00:53:27,024
if it's controlled by a company?
1216
00:53:27,048 --> 00:53:29,164
Well, I compare it to the open Internet
1217
00:53:29,188 --> 00:53:31,061
versus company owned Intranets.
1218
00:53:31,085 --> 00:53:33,113
They both exist.
1219
00:53:33,137 --> 00:53:36,503
Meanwhile, Facebook
announced a cryptocurrency
1220
00:53:36,527 --> 00:53:38,403
for their two billion users.
1221
00:53:38,427 --> 00:53:40,912
Such a system might be more efficient
1222
00:53:40,936 --> 00:53:42,330
than a public blockchain,
1223
00:53:42,354 --> 00:53:43,869
but there's a downside.
1224
00:53:43,893 --> 00:53:44,827
Some Governments banned it within weeks.
1225
00:53:48,908 --> 00:53:50,532
Right now, the ways, pieces of paper,
1226
00:53:50,556 --> 00:53:52,770
that's being shifted around,
that doesn't make any sense.
1227
00:53:52,794 --> 00:53:54,458
That infrastructure needs to be replaced.
1228
00:53:54,482 --> 00:53:55,957
Why occupy Wall Street
1229
00:53:55,981 --> 00:53:58,216
when we can build a new one
on the blockchain instead?
1230
00:53:58,240 --> 00:54:00,434
In the future of decentralised finance,
1231
00:54:00,458 --> 00:54:03,689
stock certificate, corporate bonds,
1232
00:54:03,713 --> 00:54:06,146
insurance policies, property deeds,
1233
00:54:06,170 --> 00:54:08,675
mortgages, all can be
turned into crypto tokens
1234
00:54:08,699 --> 00:54:10,645
and made tradable 24/7.
1235
00:54:32,634 --> 00:54:35,097
What's much more exciting
than tokenized securities
1236
00:54:35,121 --> 00:54:37,365
of traditional businesses
where it's just equity
1237
00:54:37,389 --> 00:54:38,305
that you pass around
1238
00:54:38,329 --> 00:54:40,832
is totally novel digital securities
1239
00:54:40,856 --> 00:54:42,970
that you couldn't do before, right.
1240
00:54:42,994 --> 00:54:45,144
Novel use cases where you
could kick back cash flow
1241
00:54:45,168 --> 00:54:46,675
on a continual basis.
1242
00:54:46,699 --> 00:54:48,654
I think some examples of this
1243
00:54:48,678 --> 00:54:49,802
that we're seeing now are MakerDao,
1244
00:54:49,826 --> 00:54:52,842
Binance which has Binance Coin,
1245
00:54:52,866 --> 00:54:55,987
that's actually much
bigger of an opportunity
1246
00:54:56,011 --> 00:54:57,800
because it represents
something totally new.
1247
00:55:03,633 --> 00:55:04,936
My name is Dr. Jemma Green,
1248
00:55:04,960 --> 00:55:08,471
and I'm a co-founder and the
chairman of PowerLedger.
1249
00:55:08,495 --> 00:55:10,642
And we use the blockchain
1250
00:55:10,666 --> 00:55:12,241
to enable electricity trading,
1251
00:55:12,265 --> 00:55:16,236
energy asset financing,
and carbon markets.
1252
00:55:16,260 --> 00:55:18,074
This award
winning Australian company
1253
00:55:18,098 --> 00:55:20,167
wants to take us to a
carbon-free economy faster.
1254
00:55:20,191 --> 00:55:22,514
Jemma has identified a problem.
1255
00:55:22,538 --> 00:55:26,036
Apartment buildings, often
the buildings are tenanted.
1256
00:55:26,060 --> 00:55:28,030
An it means that if there is solar panels,
1257
00:55:28,054 --> 00:55:31,121
the owner of the apartment
isn't really incentivize
1258
00:55:31,145 --> 00:55:32,730
to put in solar panels or batteries
1259
00:55:32,754 --> 00:55:34,218
because the tenant benefits.
1260
00:55:34,242 --> 00:55:35,777
But using our platform,
1261
00:55:35,801 --> 00:55:37,595
the tenant will pay their electricity bill
1262
00:55:37,619 --> 00:55:39,173
to the body corporate.
1263
00:55:39,197 --> 00:55:40,173
Using PowerLedger,
1264
00:55:40,197 --> 00:55:42,477
the tenant pays the owner,
not the power company
1265
00:55:42,501 --> 00:55:44,468
for their electricity.
1266
00:55:44,492 --> 00:55:45,759
And if the tenant isn't at home,
1267
00:55:45,783 --> 00:55:47,844
the unused energy will
be sold to a neighbour,
1268
00:55:47,868 --> 00:55:49,777
lowering their power bill
1269
00:55:49,801 --> 00:55:52,450
and making a profit for the owner.
1270
00:55:52,474 --> 00:55:54,413
So it actually crates the mechanism
1271
00:55:54,437 --> 00:55:57,171
to justify investing the
capital in the first place.
1272
00:55:57,195 --> 00:55:59,367
This system could speed up investment
1273
00:55:59,391 --> 00:56:00,967
in sustainable energy projects
1274
00:56:00,991 --> 00:56:03,771
by making it easy to own a
piece of a solar or wind farm.
1275
00:56:08,768 --> 00:56:10,232
Why do I need a blockchain for this?
1276
00:56:10,256 --> 00:56:13,948
Can't I invest in a solar farm
without this new fancy tech?
1277
00:56:13,972 --> 00:56:15,915
The blockchain acts as
a kind of asset register
1278
00:56:15,939 --> 00:56:17,915
and income register,
1279
00:56:17,939 --> 00:56:19,420
and in tokenizing the asset,
1280
00:56:19,444 --> 00:56:21,931
it becomes tradable on an exchange.
1281
00:56:21,955 --> 00:56:24,458
You might own two or three solar panels
1282
00:56:24,482 --> 00:56:27,221
of a thousand, you know, in a solar farm,
1283
00:56:27,245 --> 00:56:30,048
and you would receive the
income associated with that
1284
00:56:30,072 --> 00:56:31,843
amount of ownership.
1285
00:56:32,855 --> 00:56:35,377
Now bankers don't very
much like being cut out
1286
00:56:35,401 --> 00:56:36,646
of the cashflow loop,
1287
00:56:36,670 --> 00:56:37,944
so they took another look
1288
00:56:37,968 --> 00:56:40,307
at Mr. Nakamoto's curious
little white paper.
1289
00:56:40,331 --> 00:56:42,820
And they've recently been spending
1290
00:56:42,844 --> 00:56:45,724
a billion dollars a year
in blockchain research.
1291
00:56:46,781 --> 00:56:48,163
Isn't it ironic,
1292
00:56:48,187 --> 00:56:50,162
Satoshi's anti-bank invention
1293
00:56:50,186 --> 00:56:51,521
is now being used by the banks
1294
00:56:51,545 --> 00:56:52,720
to move money faster.
1295
00:56:52,744 --> 00:56:54,447
And by big business to
track supply chains.
1296
00:57:11,402 --> 00:57:12,333
Cryptocurrencies, digital tokens,
1297
00:57:12,357 --> 00:57:14,758
public blockchains, private blockchains,
1298
00:57:14,782 --> 00:57:16,067
where is the killer app?
1299
00:57:16,091 --> 00:57:18,552
Well, adoption of new technology
1300
00:57:18,576 --> 00:57:20,912
often follows old trends.
1301
00:57:20,936 --> 00:57:23,069
My name is Marc Ventresca.
1302
00:57:23,093 --> 00:57:25,247
I'm here at Oxford, the
University of Oxford
1303
00:57:25,271 --> 00:57:26,466
on the faculty.
1304
00:57:26,490 --> 00:57:28,324
I'm an economics sociologist by training,
1305
00:57:28,348 --> 00:57:30,515
interested in how large-scale
infrastructure changes.
1306
00:57:30,539 --> 00:57:33,081
So great so see you after nine years.
1307
00:57:33,105 --> 00:57:34,569
I know.
1308
00:57:34,593 --> 00:57:36,616
Marc teaches a class
1309
00:57:36,640 --> 00:57:38,003
on innovation and system building.
1310
00:57:38,027 --> 00:57:40,014
He tells me what must align
1311
00:57:40,038 --> 00:57:42,044
for a new technology to become fruitful.
1312
00:57:42,068 --> 00:57:46,177
All technologies start
out as interesting ideas.
1313
00:57:46,201 --> 00:57:48,695
Some of them begin to
develop into innovations
1314
00:57:48,719 --> 00:57:50,913
and we know that arc from
invention to innovation
1315
00:57:50,937 --> 00:57:52,998
takes a lot of time, takes a lot of work.
1316
00:57:53,022 --> 00:57:55,147
Some of those innovations
1317
00:57:55,171 --> 00:57:56,651
eventually become commercially viable.
1318
00:57:56,675 --> 00:58:00,125
Case in point, the automobile.
1319
00:58:00,149 --> 00:58:01,311
In the early days,
1320
00:58:01,335 --> 00:58:02,887
cars looked like a pretty lousy idea,
1321
00:58:02,911 --> 00:58:05,284
and poorly executed.
1322
00:58:07,236 --> 00:58:08,920
Early on, there were electric cars,
1323
00:58:08,944 --> 00:58:10,448
there were battery operated cars.
1324
00:58:10,472 --> 00:58:13,414
The combustion engine was
a relative late comer.
1325
00:58:13,438 --> 00:58:16,476
It took Henry
Ford's mass production
1326
00:58:16,500 --> 00:58:18,114
to create the standards,
1327
00:58:18,138 --> 00:58:19,284
what a car looked like,
1328
00:58:19,308 --> 00:58:20,941
what parts it needed,
1329
00:58:20,965 --> 00:58:22,028
how it operated.
1330
00:58:22,052 --> 00:58:23,940
That's when complementary assets
1331
00:58:23,964 --> 00:58:26,229
and infrastructure emerged.
1332
00:58:26,253 --> 00:58:29,142
So you have a paved
roads and petrol stations.
1333
00:58:29,166 --> 00:58:32,886
Then you have secondary things
like motels and restaurants,
1334
00:58:32,910 --> 00:58:35,115
and places to eat while you're
on the highway and buy food.
1335
00:58:35,139 --> 00:58:37,515
Then you have interesting questions
1336
00:58:37,539 --> 00:58:38,920
like what side of the
road should we drive on.
1337
00:58:38,944 --> 00:58:41,820
An entire
ecosystem had been built,
1338
00:58:41,844 --> 00:58:44,605
but it wasn't a smooth
transition by any means.
1339
00:58:46,170 --> 00:58:48,544
The imagery here is there
are maybe a couple of hundred,
1340
00:58:48,568 --> 00:58:49,583
three or four hundred companies
1341
00:58:49,607 --> 00:58:51,081
that tried to get into this space.
1342
00:58:51,105 --> 00:58:52,210
But they're not car companies.
1343
00:58:52,234 --> 00:58:53,606
They're bicycle manufacturers
1344
00:58:53,630 --> 00:58:55,042
or steam engine manufacturers.
1345
00:58:55,066 --> 00:58:57,762
At some point, in this account,
1346
00:58:57,786 --> 00:58:59,882
all that period of ferment settles
1347
00:58:59,906 --> 00:59:01,211
around a dominant design,
1348
00:59:01,235 --> 00:59:02,470
and then you have what,
1349
00:59:02,494 --> 00:59:04,467
again, what innovation
economist would call a shakeout.
1350
00:59:04,491 --> 00:59:07,283
They would say you go from
300 or 400 producers,
1351
00:59:07,307 --> 00:59:12,130
all of them vying to
shape this emerging space,
1352
00:59:12,154 --> 00:59:13,779
this emerging thing called the automobile.
1353
00:59:13,803 --> 00:59:15,978
You may then drop to
20 or 30 manufacturers.
1354
00:59:16,002 --> 00:59:18,616
And then you may drop to five or six.
1355
00:59:20,945 --> 00:59:21,754
It took 50 years
1356
00:59:21,778 --> 00:59:23,559
for cars to go from curious invention
1357
00:59:23,583 --> 00:59:26,186
to finally tuned, mass market product.
1358
00:59:26,210 --> 00:59:28,900
50 years to change the
world as we knew it.
1359
00:59:33,263 --> 00:59:34,431
Your destination is on the left.
1360
00:59:34,455 --> 00:59:38,863
But our story
isn't about cars or roads.
1361
00:59:38,887 --> 00:59:40,771
I want to learn about dominate designs
1362
00:59:40,795 --> 00:59:42,277
of digital technology.
1363
00:59:43,143 --> 00:59:45,098
That's why I came to the
Computer History Museum
1364
00:59:45,122 --> 00:59:47,355
in the heart of Silicon Valley.
1365
00:59:47,379 --> 00:59:50,117
So you're looking at
the console for SAGE,
1366
00:59:50,141 --> 00:59:52,522
which was probably the
first computer network.
1367
00:59:52,524 --> 00:59:53,429
- which was probably the first computer network.
- The US military and some American universities
1368
00:59:53,431 --> 00:59:53,453
The US military
and some American universities
1369
00:59:53,455 --> 00:59:54,803
- There were 23 centres around North America
- TORSTEN: The US military and some American universities
1370
00:59:54,805 --> 00:59:57,085
There were 23 centres around North America
1371
00:59:57,109 --> 00:59:58,779
to warn against Soviet bombers.
1372
00:59:58,803 --> 01:00:01,236
And they were waiting for World War III.
1373
01:00:04,607 --> 01:00:07,652
asked this guy to create
a new kind of network
1374
01:00:07,676 --> 01:00:09,887
to connect their separate networks.
1375
01:00:09,911 --> 01:00:12,131
And this young girl
1376
01:00:12,155 --> 01:00:14,867
got up and she had a bunch of questions,
1377
01:00:14,891 --> 01:00:16,785
but her first one was
1378
01:00:16,809 --> 01:00:19,203
how did I manage to
convince all the governments
1379
01:00:19,227 --> 01:00:20,951
of the world to let us build the Internet.
1380
01:00:20,975 --> 01:00:23,569
And I said well, except
for the handful of us
1381
01:00:23,593 --> 01:00:24,886
that were actually
working on the Internet,
1382
01:00:24,910 --> 01:00:28,064
nobody else really thought
it was a very good idea,
1383
01:00:28,088 --> 01:00:29,581
and they didn't think it
was gonna lead anywhere.
1384
01:00:29,605 --> 01:00:32,534
And you know, we pretty
much had free running room.
1385
01:00:32,558 --> 01:00:36,156
Yes, that's the
man who co-invented TCP/IP
1386
01:00:36,180 --> 01:00:37,545
about 50 years ago.
1387
01:00:37,569 --> 01:00:39,443
That's their original academic paper.
1388
01:00:39,467 --> 01:00:42,000
You can think of TCP as the
backbone of the Internet.
1389
01:00:42,024 --> 01:00:44,868
But back then, there were
many competing technologies.
1390
01:00:44,892 --> 01:00:48,247
There was a very big
battle over the protocols.
1391
01:00:48,271 --> 01:00:50,828
TCP/IP didn't just win by default.
1392
01:00:50,852 --> 01:00:55,357
It won through attrition
by basically being better,
1393
01:00:55,381 --> 01:00:57,379
simpler, easier to deploy
1394
01:00:57,403 --> 01:00:59,001
than all of the other proposals.
1395
01:00:59,025 --> 01:00:59,833
More scalable.
1396
01:00:59,857 --> 01:01:00,782
And more scalable.
1397
01:01:00,806 --> 01:01:02,520
And it had a lot of competition
1398
01:01:02,544 --> 01:01:06,490
from phone companies that
tried to make the Internet
1399
01:01:06,514 --> 01:01:10,559
a closed, metered, controlled system.
1400
01:01:10,583 --> 01:01:12,879
They tried to do what people
1401
01:01:12,903 --> 01:01:14,510
are trying to do today with blockchains,
1402
01:01:14,534 --> 01:01:16,780
which is take the open
decentralised network
1403
01:01:16,804 --> 01:01:20,249
and turn it into this sterile,
closed corporate system
1404
01:01:20,273 --> 01:01:22,978
where they can charge by the
minute and be in control.
1405
01:01:23,002 --> 01:01:24,766
The Internet's
ultimate victory
1406
01:01:24,790 --> 01:01:26,946
has a dirty little secret.
1407
01:01:26,970 --> 01:01:29,052
The men in charge of promoting it
1408
01:01:29,076 --> 01:01:31,099
were employees of the military
1409
01:01:31,123 --> 01:01:34,797
with the muscle and the cash
to beat the competition.
1410
01:01:34,821 --> 01:01:36,166
And then there's email.
1411
01:01:36,190 --> 01:01:36,999
Email?
1412
01:01:37,023 --> 01:01:38,394
I heard that's really neat.
1413
01:01:38,418 --> 01:01:39,294
Email was perhaps
1414
01:01:39,318 --> 01:01:40,921
the Internet's first killer app.
1415
01:01:40,945 --> 01:01:41,754
Then in the early 90s,
1416
01:01:41,778 --> 01:01:43,156
Tim Berners-Lee introduced
the World Wide Web
1417
01:01:43,180 --> 01:01:46,127
as a 20 page proposal.
1418
01:01:46,151 --> 01:01:48,861
Soon, there were browsers
that made it more accessible
1419
01:01:48,885 --> 01:01:51,739
and user-friendly for the general public.
1420
01:01:54,631 --> 01:01:55,986
I think that the Internet
1421
01:01:56,010 --> 01:01:58,252
is going to be one of the major forces
1422
01:01:58,276 --> 01:02:01,372
for reducing the role of Government.
1423
01:02:01,396 --> 01:02:03,688
The one thing that's missing,
1424
01:02:03,712 --> 01:02:05,373
but that will soon be developed,
1425
01:02:05,397 --> 01:02:07,804
is a reliable e-cash.
1426
01:02:07,828 --> 01:02:09,642
Still, few
understood the potential
1427
01:02:09,666 --> 01:02:11,051
of this new tech.
1428
01:02:11,075 --> 01:02:13,459
From people who thought it would just be
1429
01:02:13,483 --> 01:02:15,437
the world's greatest library,
1430
01:02:15,461 --> 01:02:18,260
to some of the early cypherpunks,
1431
01:02:18,284 --> 01:02:21,135
who are the direct forefathers of crypto,
1432
01:02:21,159 --> 01:02:24,642
and certainly blockchain-type ideas,
1433
01:02:24,666 --> 01:02:26,835
who thought much as today,
1434
01:02:26,859 --> 01:02:29,015
that it would create kind of a Commons
1435
01:02:29,039 --> 01:02:31,800
that was outside of the direct control
1436
01:02:31,824 --> 01:02:33,455
and normal laws of Governments.
1437
01:02:33,479 --> 01:02:36,136
That's ironic
because the US Government
1438
01:02:36,160 --> 01:02:37,462
funded it in the first place.
1439
01:02:37,486 --> 01:02:39,912
The spiritual forefathers of crypto
1440
01:02:39,936 --> 01:02:41,191
who built the early Internet
1441
01:02:41,215 --> 01:02:43,089
thought it was a new technology
1442
01:02:43,113 --> 01:02:44,491
for global freedom of expression
1443
01:02:44,515 --> 01:02:47,545
and a blank canvas upon which
they could build their dreams.
1444
01:02:47,569 --> 01:02:49,520
Boy, that sounds familiar!
1445
01:02:49,544 --> 01:02:51,411
And the media?
1446
01:02:51,435 --> 01:02:52,361
They didn't quite know
1447
01:02:52,385 --> 01:02:54,228
what to make of this new thing either.
1448
01:02:54,252 --> 01:02:56,226
But sure enough, they found juicy stories
1449
01:02:56,250 --> 01:02:57,589
about the dark side of it.
1450
01:02:57,613 --> 01:03:00,418
Which was the Internet
is full of criminals,
1451
01:03:00,442 --> 01:03:02,690
and paedophiles, and pornographers.
1452
01:03:02,714 --> 01:03:06,264
And it's too dangerous to
use your credit card on it.
1453
01:03:06,288 --> 01:03:07,889
It's full of scams.
1454
01:03:07,913 --> 01:03:10,052
We're seeing the exact same story now.
1455
01:03:10,076 --> 01:03:12,530
We envision technology
as if it were autonomous,
1456
01:03:12,554 --> 01:03:17,431
as if it were simply outside
of human and social experience.
1457
01:03:17,455 --> 01:03:20,002
But we see our technologies
1458
01:03:20,026 --> 01:03:22,064
that become shaped by
commercial interests,
1459
01:03:22,088 --> 01:03:24,045
by political an regulatory infrastructure,
1460
01:03:24,069 --> 01:03:28,302
by actors who are acting
for many reasons, right?
1461
01:03:28,326 --> 01:03:29,762
Where do you want me?
1462
01:03:29,786 --> 01:03:30,838
Remember Bob?
1463
01:03:30,862 --> 01:03:33,139
The big telecoms wanted his thoughts
1464
01:03:33,163 --> 01:03:34,885
on a little idea they were kicking around.
1465
01:03:34,909 --> 01:03:36,725
They had a meeting
1466
01:03:36,749 --> 01:03:37,954
where they trying to figure out
1467
01:03:37,978 --> 01:03:39,033
how they could buy the Internet.
1468
01:03:39,057 --> 01:03:39,883
If they couldn't kill it,
1469
01:03:39,907 --> 01:03:41,091
well why not own it?
1470
01:03:41,115 --> 01:03:42,519
I got asked that myself
1471
01:03:42,543 --> 01:03:44,659
by an executive at a
large information company.
1472
01:03:44,683 --> 01:03:49,009
It was probably in 1990 if
they could buy the Internet.
1473
01:03:50,346 --> 01:03:51,760
I remember asking them
1474
01:03:51,784 --> 01:03:52,873
well, why don't you buy the world economy,
1475
01:03:52,897 --> 01:03:54,263
then you can own everything.
1476
01:03:54,287 --> 01:03:55,929
Why don't you buy the weather,
1477
01:03:55,953 --> 01:03:57,668
then you can control that too.
1478
01:03:57,692 --> 01:04:00,087
As the Internet's
momentum and hype grew,
1479
01:04:00,111 --> 01:04:02,185
investors threw money at entrepreneurs
1480
01:04:02,209 --> 01:04:03,891
and shady characters.
1481
01:04:11,884 --> 01:04:13,196
The joke in the Dotcom era
1482
01:04:13,220 --> 01:04:16,465
was that you put a dotcom
behind your company
1483
01:04:16,489 --> 01:04:18,703
even if it had nothing
to do with the Internet.
1484
01:04:18,727 --> 01:04:21,461
And the venture capitalist
just throw money at you.
1485
01:04:21,485 --> 01:04:23,832
It took a few
decades and hype cycles,
1486
01:04:23,856 --> 01:04:26,354
but the wild Internet was
eventually domesticated,
1487
01:04:26,378 --> 01:04:29,193
co-opted by trillion dollar companies
1488
01:04:29,217 --> 01:04:32,041
and then fundamentally
transformed how we shop,
1489
01:04:32,065 --> 01:04:34,172
work, and communicate.
1490
01:04:39,906 --> 01:04:42,337
Speaker's Corner in London's Hyde Park.
1491
01:04:43,423 --> 01:04:46,171
For 150 years, this has
been a safe place to stand
1492
01:04:46,195 --> 01:04:49,193
on a soapbox to sell your ideas,
1493
01:04:49,217 --> 01:04:50,345
preach the Gospel,
1494
01:04:50,369 --> 01:04:53,997
badmouth the king, or promote communism.
1495
01:04:54,021 --> 01:04:56,216
Today, with the World Wide Web,
1496
01:04:56,240 --> 01:04:59,133
we can stand on giant, digital soapboxes
1497
01:04:59,157 --> 01:05:01,570
using Facebook, Twitter, YouTube.
1498
01:05:01,594 --> 01:05:02,903
We can share our ideas,
1499
01:05:02,927 --> 01:05:06,478
or start a fight, with
anyone on the planet.
1500
01:05:08,957 --> 01:05:11,704
Well, almost anyone.
1501
01:05:11,728 --> 01:05:14,398
Of 65 countries studied,
1502
01:05:14,422 --> 01:05:16,086
China has the least free Internet,
1503
01:05:16,110 --> 01:05:17,967
worse than Iran, Cuba or Syria.
1504
01:05:17,991 --> 01:05:21,426
A police force of more
than two million cybercops
1505
01:05:21,450 --> 01:05:23,608
and the world's most sophisticated
1506
01:05:23,632 --> 01:05:25,287
Artificial Intelligence system
1507
01:05:25,311 --> 01:05:27,587
keep China's web content
clean and users in check.
1508
01:05:27,611 --> 01:05:30,871
So sorry to break it to you,
1509
01:05:30,895 --> 01:05:32,779
but there's no longer a World Wide Web.
1510
01:05:32,803 --> 01:05:34,517
Welcome to the Splinternet.
1511
01:05:34,541 --> 01:05:36,042
No, it's not just in China.
1512
01:05:36,066 --> 01:05:39,002
In Russia,
Wikipedia is illegal.
1513
01:05:39,026 --> 01:05:41,293
Facebook is outlawed in Bangladesh.
1514
01:05:41,317 --> 01:05:43,147
There's no WhatsApp in Dubai.
1515
01:05:43,171 --> 01:05:45,296
Twitter was banned in Turkey
1516
01:05:45,320 --> 01:05:47,559
after news about Government
corruption spread.
1517
01:05:47,583 --> 01:05:49,632
And Saudi Arabia shut down
1518
01:05:49,656 --> 01:05:51,201
the region's largest news services,
1519
01:05:51,225 --> 01:05:52,617
Al Jazeera and the BBC.
1520
01:05:52,641 --> 01:05:55,916
Meanwhile, in India, the
entire web was turned off
1521
01:05:55,940 --> 01:05:57,437
100 times last year.
1522
01:05:59,616 --> 01:06:00,425
To be fair,
1523
01:06:00,449 --> 01:06:02,739
some of the censorship is to
prevent terrorist recruitment,
1524
01:06:02,763 --> 01:06:05,305
or to stop violent mobs
from hurting people.
1525
01:06:05,329 --> 01:06:08,104
But I think Government's
control over the Internet
1526
01:06:08,128 --> 01:06:10,137
has gone just a little too far...
1527
01:06:10,161 --> 01:06:13,838
Hello, I'm from the
Australian Government.
1528
01:06:13,862 --> 01:06:15,656
Do you have something to hide?
1529
01:06:15,680 --> 01:06:17,568
We've taken the UK's fascist spying law
1530
01:06:17,592 --> 01:06:19,752
and made it even more fascist.
1531
01:06:19,776 --> 01:06:21,161
To test this shit fuckery,
1532
01:06:21,185 --> 01:06:21,994
we chose Australia,
1533
01:06:22,018 --> 01:06:24,298
the weakest of the Five Eyes alliance,
1534
01:06:24,322 --> 01:06:26,136
thanks to our lack of a Bill of Rights.
1535
01:06:26,160 --> 01:06:27,694
So international data requests
1536
01:06:27,718 --> 01:06:29,153
will now be funnelled through us,
1537
01:06:29,177 --> 01:06:30,721
compromising not just Aussies,
1538
01:06:30,745 --> 01:06:32,479
but all of you fuckers too.
1539
01:06:32,503 --> 01:06:33,812
You're welcome!
1540
01:06:37,868 --> 01:06:38,913
Hold on,
1541
01:06:38,937 --> 01:06:40,620
Satoshi turned money into code,
1542
01:06:40,644 --> 01:06:43,269
code is just letters and numbers,
1543
01:06:43,293 --> 01:06:44,610
which is speech, right?
1544
01:06:44,634 --> 01:06:46,485
So money, now is speech,
1545
01:06:46,509 --> 01:06:48,883
which is a pretty powerful
idea if you think about it.
1546
01:06:48,907 --> 01:06:51,730
But if Bitcoin is this uncontrollable,
1547
01:06:51,754 --> 01:06:54,617
uncensorable technology.
Can the blockchain
1548
01:06:54,641 --> 01:06:56,340
also enable global free speech?
1549
01:06:57,908 --> 01:06:59,544
In some
places, it already does.
1550
01:06:59,568 --> 01:07:02,727
One Chinese student tried
to report a sexual assault,
1551
01:07:02,751 --> 01:07:04,777
and was silenced by her college.
1552
01:07:04,801 --> 01:07:06,759
But she knew that she can attach a message
1553
01:07:06,783 --> 01:07:08,845
into the metadata of an
Ethereum transaction.
1554
01:07:08,869 --> 01:07:11,080
So she spent 15 cents
1555
01:07:11,104 --> 01:07:13,474
and now her letter outlining her story
1556
01:07:13,498 --> 01:07:14,986
and the threats she received
1557
01:07:15,010 --> 01:07:16,973
is on the public Ethereum blockchain
1558
01:07:16,997 --> 01:07:19,492
where it will remain unchangeable forever.
1559
01:07:27,229 --> 01:07:28,513
The early cryptopioneers
1560
01:07:28,537 --> 01:07:30,062
wanted to democratised money.
1561
01:07:30,086 --> 01:07:31,442
Finance 2.0, if you will.
1562
01:07:31,466 --> 01:07:34,178
But now, the believers in the blockchains
1563
01:07:34,202 --> 01:07:36,182
have their eyes on a bigger prize:
1564
01:07:36,206 --> 01:07:38,558
They want to decentralise everything.
1565
01:07:38,582 --> 01:07:40,460
Web 3.0.
1566
01:07:40,484 --> 01:07:42,899
Facebook without the propaganda.
1567
01:07:42,923 --> 01:07:44,768
Twitter without the terms of service.
1568
01:07:44,792 --> 01:07:46,490
Reddit without the censorship.
1569
01:07:46,514 --> 01:07:48,905
Online identity without the hacks.
1570
01:07:48,929 --> 01:07:51,667
Internet browsing without
tracking software.
1571
01:07:51,691 --> 01:07:54,364
Websites without the advertising.
1572
01:07:57,229 --> 01:07:59,955
We pay with either attention or privacy.
1573
01:07:59,979 --> 01:08:03,627
So we either have
advertising thrown at us,
1574
01:08:03,651 --> 01:08:05,057
our attention is monetized,
1575
01:08:05,081 --> 01:08:08,582
or we pay with micro
violations of our privacy.
1576
01:08:08,606 --> 01:08:10,641
And that is
why the internet today
1577
01:08:10,665 --> 01:08:12,564
is the ultimate surveillance economy.
1578
01:08:12,588 --> 01:08:14,925
One privacy tool is the Brave browser.
1579
01:08:14,949 --> 01:08:17,234
It doesn't store data
1580
01:08:17,258 --> 01:08:19,472
and pays users and content publishers
1581
01:08:19,496 --> 01:08:21,516
in their basic attention tokens.
1582
01:08:26,429 --> 01:08:28,863
What most people in the crypto space
1583
01:08:28,887 --> 01:08:31,095
are probably most excited about
1584
01:08:31,119 --> 01:08:34,143
is this notion that we can create
1585
01:08:34,167 --> 01:08:36,812
these kinds of user-owned
decentralised networks.
1586
01:08:36,836 --> 01:08:40,211
You can, for instance, offer file storage
1587
01:08:40,235 --> 01:08:41,551
in the way that an Amazon does,
1588
01:08:41,575 --> 01:08:44,807
or that you could offer search,
1589
01:08:44,831 --> 01:08:45,846
you know, the way Google does,
1590
01:08:45,870 --> 01:08:47,625
but do it in a peer-to-peer fashion
1591
01:08:47,649 --> 01:08:52,619
without this behemoth at
the centre extracting rents.
1592
01:08:52,643 --> 01:08:54,257
And do it in a way where all the people
1593
01:08:54,281 --> 01:08:55,433
that are users of it can benefit.
1594
01:08:55,457 --> 01:08:58,654
Blockstack is the next
evolution in computing.
1595
01:08:58,678 --> 01:09:01,875
We've seen three main
eras of computing before.
1596
01:09:01,899 --> 01:09:05,370
We had mainframes that
were these large computers
1597
01:09:06,310 --> 01:09:07,120
that everyone depended on.
1598
01:09:07,144 --> 01:09:09,997
Then we got desktops where
users were in control,
1599
01:09:10,021 --> 01:09:12,140
and they owned their own computers,
1600
01:09:12,164 --> 01:09:13,928
and their data and information.
1601
01:09:13,952 --> 01:09:15,976
And then we saw cloud computing
1602
01:09:16,000 --> 01:09:18,306
where we're dependent
on these large companies
1603
01:09:18,330 --> 01:09:19,669
running services for us.
1604
01:09:19,693 --> 01:09:21,464
And we're about to embark
1605
01:09:21,488 --> 01:09:23,695
on this major shift in computing
1606
01:09:23,719 --> 01:09:25,796
called decentralised computing
1607
01:09:25,820 --> 01:09:28,604
where users are getting back in control.
1608
01:09:31,954 --> 01:09:35,676
And they really could
some day compete with,
1609
01:09:35,700 --> 01:09:38,963
if not take down some
of the big tech giants,
1610
01:09:38,987 --> 01:09:40,742
like the Facebooks and the
Googles and the Amazons
1611
01:09:40,766 --> 01:09:42,107
that we know.
1612
01:09:43,349 --> 01:09:44,477
That's a tall, tall order.
1613
01:09:44,501 --> 01:09:45,767
It is, it is, but I
mean who would've thought
1614
01:09:45,791 --> 01:09:48,353
at the beginning of the Internet
1615
01:09:48,377 --> 01:09:50,201
that Wikipedia would beat out Encarta.
1616
01:09:50,225 --> 01:09:52,173
These Web3
promises sound good,
1617
01:09:52,197 --> 01:09:55,236
but my professional
network is on LinkedIn.
1618
01:09:55,260 --> 01:09:57,351
My personal photos are on Instagram.
1619
01:09:57,375 --> 01:09:59,122
If I deleted my accounts,
1620
01:09:59,146 --> 01:10:00,491
I'd lose everything!
1621
01:10:00,515 --> 01:10:02,699
These services aren't just walled gardens,
1622
01:10:02,723 --> 01:10:04,477
they are digital prisons.
1623
01:10:04,501 --> 01:10:06,585
Data is locked up in several companies.
1624
01:10:06,609 --> 01:10:09,302
And we don't own it.
1625
01:10:09,326 --> 01:10:10,521
The companies own it.
1626
01:10:10,545 --> 01:10:12,100
But they use the data
1627
01:10:12,124 --> 01:10:14,277
to mine it, to advertise to us,
1628
01:10:14,301 --> 01:10:15,109
to sell us things,
1629
01:10:15,133 --> 01:10:16,133
to manipulate us,
1630
01:10:17,135 --> 01:10:18,363
to change our behaviour,
1631
01:10:18,387 --> 01:10:20,141
and Ocean Protocol is the answer
1632
01:10:20,165 --> 01:10:21,600
to freeing up the data
1633
01:10:21,624 --> 01:10:23,606
and giving the power back to individuals.
1634
01:10:23,630 --> 01:10:25,398
So how do you plan to do that?
1635
01:10:25,422 --> 01:10:28,443
It's essentially an operating system
1636
01:10:28,467 --> 01:10:29,752
on top of Ethereum
1637
01:10:29,776 --> 01:10:33,328
that allows for people to share data,
1638
01:10:33,352 --> 01:10:36,530
storage, algorithms,
1639
01:10:36,554 --> 01:10:40,542
and computation in a way
that preserves privacy.
1640
01:10:40,566 --> 01:10:42,539
It's too early to tell
1641
01:10:42,563 --> 01:10:44,096
whether projects like these can succeed.
1642
01:10:44,120 --> 01:10:47,228
But I do like the ideal of
digital property rights.
1643
01:10:47,252 --> 01:10:49,512
Wouldn't it be nice if companies
1644
01:10:49,536 --> 01:10:51,110
paid us in cryptocurrency
1645
01:10:51,134 --> 01:10:52,479
when they use our data?
1646
01:10:52,503 --> 01:10:54,737
And if we control who has access to it
1647
01:10:54,761 --> 01:10:56,682
instead of our digital overlords.
1648
01:10:56,706 --> 01:10:58,753
And then there is the question
1649
01:10:58,777 --> 01:11:00,785
of our most precious information,
1650
01:11:00,809 --> 01:11:03,268
our very identity.
1651
01:11:03,292 --> 01:11:05,126
If you take the history of mankind,
1652
01:11:05,150 --> 01:11:07,045
a lot of blood has been shed
1653
01:11:07,069 --> 01:11:08,223
getting to democracy, right?
1654
01:11:08,247 --> 01:11:10,931
The idea that every man
has a vote in the world.
1655
01:11:10,955 --> 01:11:12,979
And you know, I take it kind of personally
1656
01:11:13,003 --> 01:11:15,044
because I was born in South
Africa during apartheid,
1657
01:11:15,068 --> 01:11:18,703
you know, a child of Indian immigrants.
1658
01:11:18,727 --> 01:11:21,340
And we were not allowed to vote.
1659
01:11:21,364 --> 01:11:23,538
Vinny tells me
that in the United States alone
1660
01:11:23,562 --> 01:11:27,374
there are 14,000 different paper
forms of birth certificates
1661
01:11:27,398 --> 01:11:29,208
issued by local authorities.
1662
01:11:29,232 --> 01:11:31,090
There are mistakes on them
1663
01:11:31,114 --> 01:11:33,816
and even identity theft
starting from birth.
1664
01:11:33,840 --> 01:11:36,409
All your information
is already out there.
1665
01:11:36,433 --> 01:11:38,303
You know, there's five
hacks a day happening,
1666
01:11:38,327 --> 01:11:41,195
so how do you prove that
you are who you say you are?
1667
01:11:45,870 --> 01:11:47,504
Our crypto celebrity Andreas
1668
01:11:47,528 --> 01:11:49,552
has 10 imposters on Instagram.
1669
01:11:49,576 --> 01:11:51,140
Ryan Gosling's alter ego
1670
01:11:51,164 --> 01:11:53,350
is committing financial fraud in Bulgaria.
1671
01:11:53,374 --> 01:11:54,827
And who knows what's happening
1672
01:11:54,851 --> 01:11:56,951
with your compromised information?
1673
01:11:58,357 --> 01:12:00,654
Blockchain-based services
like Civic's identity.com,
1674
01:12:00,678 --> 01:12:03,421
or Microsoft's Ion say
they can give us control
1675
01:12:03,445 --> 01:12:06,405
of our identity and protect it.
1676
01:12:06,429 --> 01:12:09,242
Currently, we are having our reputation,
1677
01:12:09,266 --> 01:12:11,490
our history with different systems
1678
01:12:11,514 --> 01:12:13,023
and different companies,
like Facebook and Twitter.
1679
01:12:13,047 --> 01:12:16,589
With the blockchain, the
core of important information
1680
01:12:16,613 --> 01:12:18,750
sits on that trusted system
1681
01:12:18,774 --> 01:12:22,319
which we control and we
can take from wherever
1682
01:12:22,343 --> 01:12:23,968
we want to go to something else.
1683
01:12:23,992 --> 01:12:26,825
Meanwhile,
Vitalik has inspired thousands
1684
01:12:26,849 --> 01:12:28,883
of software developers to build is vision
1685
01:12:28,907 --> 01:12:30,520
of decentralised finance,
1686
01:12:30,544 --> 01:12:32,609
but early in Ethereum's history,
1687
01:12:32,633 --> 01:12:33,758
something went wrong
1688
01:12:33,782 --> 01:12:35,636
with one of the first smart contracts
1689
01:12:35,660 --> 01:12:37,594
called the DAO.
1690
01:12:37,618 --> 01:12:39,112
The DAO went like this,
1691
01:12:39,136 --> 01:12:40,458
they wanted a completely
1692
01:12:40,482 --> 01:12:42,639
"the Decentralised
Autonomous Organisation".
1693
01:12:42,663 --> 01:12:45,756
They wanted a science fiction dream
1694
01:12:45,780 --> 01:12:47,604
of an independent computer program
1695
01:12:47,628 --> 01:12:49,409
that was immune to human influence.
1696
01:12:49,433 --> 01:12:54,197
So what they actually did was
build a forthcoming disaster.
1697
01:12:54,221 --> 01:12:56,035
The problem?
1698
01:12:56,059 --> 01:12:58,283
Some sloppy code left their
safety deposit box wide open,
1699
01:12:58,307 --> 01:13:01,276
and somebody just helped themselves.
1700
01:13:03,532 --> 01:13:05,737
It allowed them to pilfer $50 million
1701
01:13:05,761 --> 01:13:08,057
from this smart contract.
1702
01:13:08,081 --> 01:13:12,799
And that's why when I
say it's not even clear
1703
01:13:12,823 --> 01:13:13,987
whether or not it was a hack, you know,
1704
01:13:14,011 --> 01:13:15,236
this smart contract
allowed them to do that.
1705
01:13:15,260 --> 01:13:18,203
You know, what happened was
the majority of the community
1706
01:13:18,227 --> 01:13:20,657
did decide to roll back the blockchain
1707
01:13:20,681 --> 01:13:23,496
and to pretend like
the DAO never happened.
1708
01:13:23,520 --> 01:13:26,012
Yep, you heard that correctly.
1709
01:13:26,036 --> 01:13:28,763
The top decision makers forked Ethereum
1710
01:13:28,787 --> 01:13:30,235
into two separate networks,
1711
01:13:30,259 --> 01:13:32,043
one where the money was gone,
1712
01:13:32,067 --> 01:13:33,967
and a new one where the money
1713
01:13:33,991 --> 01:13:36,475
was restored to it's original owners
1714
01:13:36,499 --> 01:13:38,401
breaking the first rule of cryptocurrency,
1715
01:13:38,425 --> 01:13:41,050
never alter the blockchain.
1716
01:13:43,222 --> 01:13:45,476
Immutability last only as long
1717
01:13:45,500 --> 01:13:47,458
as the big boys haven't lost money.
1718
01:13:47,482 --> 01:13:49,642
Just like Bitcoin,
1719
01:13:49,666 --> 01:13:51,235
Ethereum also experienced
scaling problems.
1720
01:13:51,259 --> 01:13:54,418
When a decentralised app
called Crypto Kitties,
1721
01:13:54,442 --> 01:13:56,437
I'm not kidding, went viral,
1722
01:13:56,461 --> 01:14:00,641
and the kitties bred like
rabbits in it's blockchain,
1723
01:14:00,665 --> 01:14:02,690
the system ground to a halt.
1724
01:14:02,714 --> 01:14:05,061
The network is now being upgraded.
1725
01:14:05,085 --> 01:14:06,994
But there are many competitors
1726
01:14:07,018 --> 01:14:08,860
who claim that their
blockchains are faster,
1727
01:14:08,884 --> 01:14:10,983
fairer, and more scalable.
1728
01:14:11,007 --> 01:14:14,355
The next shakeout will sure
be interesting to watch.
1729
01:14:14,379 --> 01:14:17,834
It's never easy to admit that,
1730
01:14:17,858 --> 01:14:19,056
that you've been fooled.
1731
01:14:22,043 --> 01:14:23,225
Maybe I've been fooled.
1732
01:14:28,787 --> 01:14:29,787
Maybe?
1733
01:14:30,835 --> 01:14:31,731
The crypto community
1734
01:14:31,755 --> 01:14:33,478
doesn't agree on much of anything,
1735
01:14:33,502 --> 01:14:35,623
except when it comes to this guy.
1736
01:14:35,647 --> 01:14:38,243
Hello, my name is Dr. Craig Wright.
1737
01:14:38,267 --> 01:14:40,992
I'm the chief scientist of nChain Limited.
1738
01:14:41,016 --> 01:14:42,848
On the balance of the evidence,
1739
01:14:42,872 --> 01:14:46,330
Craig Wright almost certainly
is not Satoshi Nakamoto.
1740
01:14:46,354 --> 01:14:48,686
The proofs that he gave
were not real proofs.
1741
01:14:48,710 --> 01:14:50,661
In the end, he either chickened out
1742
01:14:50,685 --> 01:14:52,119
or didn't actually have the proof.
1743
01:14:52,143 --> 01:14:55,409
Craig Wright obviously
seems to be a scammer.
1744
01:14:58,477 --> 01:15:01,620
I'm happy to say that
Craig Wright is a fraud.
1745
01:15:01,644 --> 01:15:03,724
I know he's controversial.
1746
01:15:03,748 --> 01:15:06,395
No one really changes the world
1747
01:15:06,419 --> 01:15:09,685
without being bold, without
disrupting peoples' ideas,
1748
01:15:09,709 --> 01:15:12,477
an without drawing a little
controversy around the way.
1749
01:15:13,702 --> 01:15:15,076
But the majority of industry
1750
01:15:15,100 --> 01:15:16,387
says Craig is crazy or a conman.
1751
01:15:16,411 --> 01:15:20,491
So Craig, kindly join us on stage.
1752
01:15:20,515 --> 01:15:22,019
And that
giving him screen time
1753
01:15:22,043 --> 01:15:23,563
is irresponsible.
1754
01:15:24,419 --> 01:15:25,337
And I'll say this quite frankly
1755
01:15:25,361 --> 01:15:28,630
because I've got more
money than your country.
1756
01:15:30,625 --> 01:15:31,819
But I was in the area
1757
01:15:31,843 --> 01:15:33,573
and just couldn't resist.
1758
01:15:40,974 --> 01:15:42,449
A few quick facts,
1759
01:15:42,473 --> 01:15:43,339
Craig is the person
1760
01:15:43,363 --> 01:15:46,008
who claimed to be Satoshi
Nakamoto on the BBC.
1761
01:15:46,032 --> 01:15:49,006
But his cryptographic
proof didn't check out,
1762
01:15:49,030 --> 01:15:51,884
and since then, many just
see him as an imposter.
1763
01:15:51,908 --> 01:15:54,112
I'm the guy with a law degree
1764
01:15:54,136 --> 01:15:57,843
that used to work for federal police
1765
01:15:57,867 --> 01:15:59,830
and military intelligence.
1766
01:16:02,753 --> 01:16:04,657
You would actually be
the perfect super villain
1767
01:16:04,681 --> 01:16:05,945
for us because everybody
1768
01:16:05,969 --> 01:16:08,045
kind of doesn't believe you, hates you.
1769
01:16:08,069 --> 01:16:10,168
What do you say to your critics?
1770
01:16:10,192 --> 01:16:12,544
Do I start with a muahuahua?
1771
01:16:12,568 --> 01:16:16,255
Many people are hated early on
1772
01:16:16,279 --> 01:16:17,594
because they're not understood.
1773
01:16:17,618 --> 01:16:19,182
If it doesn't have a use,
1774
01:16:19,206 --> 01:16:20,621
it shouldn't have a value.
1775
01:16:20,645 --> 01:16:23,268
Right now, practically
everything is a Ponzi.
1776
01:16:23,292 --> 01:16:24,846
I don't particularly like Ethereum.
1777
01:16:24,870 --> 01:16:26,375
It's a dead end.
1778
01:16:26,399 --> 01:16:27,910
They can say whatever
they want about ERC-20
1779
01:16:27,934 --> 01:16:31,349
except practically
everything they're doing
1780
01:16:31,373 --> 01:16:33,567
that they want to solve,
I solved years ago.
1781
01:16:33,591 --> 01:16:38,586
Decentralisation was never
the point of Bitcoin, ever.
1782
01:16:38,946 --> 01:16:40,351
I was called a fool then,
1783
01:16:40,375 --> 01:16:41,907
and I'll be called a fool again.
1784
01:16:41,931 --> 01:16:44,544
And every single time I'll be right.
1785
01:16:44,568 --> 01:16:48,651
I picked up "Mastering
Bitcoin" the other day,
1786
01:16:48,675 --> 01:16:50,501
and I opened page one.
1787
01:16:50,525 --> 01:16:52,529
And I went this is wrong.
1788
01:16:52,553 --> 01:16:56,945
Silkroad was the worst thing
to ever happen to Bitcoin.
1789
01:16:56,969 --> 01:16:59,113
You seem to think that nobody else
1790
01:16:59,137 --> 01:17:01,290
has anything interesting to say.
1791
01:17:01,314 --> 01:17:03,138
You've already solved the
problems many years ago.
1792
01:17:03,162 --> 01:17:05,695
That's kind of the vibe
that I'm getting here.
1793
01:17:05,719 --> 01:17:06,738
Fairly much, yes.
1794
01:17:06,762 --> 01:17:08,700
Okay.
1795
01:17:09,755 --> 01:17:11,681
Turns out, Craig's playbook is patents.
1796
01:17:11,705 --> 01:17:14,034
Some say he's a patent troll.
1797
01:17:14,058 --> 01:17:16,395
Well, I've got a bucket list bit
1798
01:17:16,419 --> 01:17:18,258
which is to beat Edison, which
1799
01:17:18,282 --> 01:17:21,010
as silly as it sounds
1800
01:17:21,034 --> 01:17:22,786
came from a Simpsons episode.
1801
01:17:22,810 --> 01:17:24,577
To beat Mr. Edison,
1802
01:17:24,601 --> 01:17:27,423
I need to get 1,085.
1803
01:17:27,447 --> 01:17:29,362
And right at the moment,
1804
01:17:29,386 --> 01:17:32,326
I'm on white paper 1,074.
1805
01:17:33,592 --> 01:17:34,686
For each white paper,
1806
01:17:34,710 --> 01:17:36,509
he claims to file about 1.1 patents.
1807
01:17:37,618 --> 01:17:41,507
The first 163 will
be very shortly public.
1808
01:17:41,531 --> 01:17:44,367
Next year, people are gonna start seeing
1809
01:17:44,391 --> 01:17:45,825
that we have hundreds of patents,
1810
01:17:45,849 --> 01:17:47,893
and everything changes.
1811
01:17:47,917 --> 01:17:50,403
We file PCT and keep them
secret as long as we can.
1812
01:17:50,427 --> 01:17:53,388
There's a huge
philosophical disagreement
1813
01:17:53,412 --> 01:17:54,713
between myself and Craig.
1814
01:17:54,737 --> 01:17:57,683
So I think patents
1815
01:17:57,707 --> 01:17:59,249
are Government granted monopoly.
1816
01:17:59,273 --> 01:18:01,550
The big brains and big egos
1817
01:18:01,574 --> 01:18:02,968
who broke away from Bitcoin
1818
01:18:02,992 --> 01:18:04,946
couldn't hash out their differences.
1819
01:18:04,970 --> 01:18:06,820
So there was another split.
1820
01:18:06,844 --> 01:18:10,325
Craig's new coin also claims
to be the 'real' Bitcoin.
1821
01:18:10,349 --> 01:18:13,289
And he wants to enable blocks
a million times larger,
1822
01:18:13,313 --> 01:18:15,611
updating and storing this giant blockchain
1823
01:18:15,635 --> 01:18:18,111
will be impossible for normal computers.
1824
01:18:18,135 --> 01:18:20,034
I just can't figure this guy out.
1825
01:18:20,058 --> 01:18:23,086
Is he a genius, a madman, a fraud?
1826
01:18:23,110 --> 01:18:24,846
Maybe all three?
1827
01:18:24,870 --> 01:18:27,391
And a lot of the things he says are very,
1828
01:18:27,415 --> 01:18:29,915
are just wrong technically.
1829
01:18:29,939 --> 01:18:31,999
However, I did calculate
1830
01:18:32,023 --> 01:18:34,756
that nChain spent tens
of millions of dollars
1831
01:18:34,780 --> 01:18:36,753
to develop and file these patents.
1832
01:18:36,777 --> 01:18:38,939
And some have been granted.
1833
01:18:38,963 --> 01:18:42,628
What's the point of having
a war chest full of IP
1834
01:18:42,652 --> 01:18:44,577
if they aren't going to enforce it?
1835
01:18:44,601 --> 01:18:46,148
So basically what I'm looking at
1836
01:18:46,172 --> 01:18:49,681
is stuff that nobody's ever
really seen in the community.
1837
01:18:49,705 --> 01:18:50,514
That's correct.
1838
01:18:50,538 --> 01:18:51,347
Yes.
1839
01:18:51,371 --> 01:18:52,924
As soon as the price of Bitcoin
1840
01:18:52,948 --> 01:18:54,414
and the cryptocurrencies went higher,
1841
01:18:54,438 --> 01:18:56,527
what did most people do?
1842
01:18:56,551 --> 01:18:58,622
All they did was start adopting
1843
01:18:58,646 --> 01:19:00,940
all the worst behaviours of bankers,
1844
01:19:00,964 --> 01:19:02,190
scamming the market,
1845
01:19:02,214 --> 01:19:04,860
centralising wealth in a few hands.
1846
01:19:04,884 --> 01:19:08,045
Hmm, I think
that's called human nature.
1847
01:19:08,069 --> 01:19:10,358
So everyone wants to change the world
1848
01:19:10,382 --> 01:19:12,930
simply because they're not
in the position of power.
1849
01:19:12,954 --> 01:19:15,256
As soon as they get into that position,
1850
01:19:15,280 --> 01:19:16,569
they do exactly the same thing.
1851
01:19:16,593 --> 01:19:19,082
So guys like you
will build a better future
1852
01:19:19,106 --> 01:19:21,559
and we can trust you guys
better than the bankers?
1853
01:19:21,583 --> 01:19:22,608
You don't have to trust us.
1854
01:19:22,632 --> 01:19:23,637
That's the beauty.
1855
01:19:23,661 --> 01:19:25,226
We're building a trustless,
1856
01:19:25,250 --> 01:19:27,440
decentralised system that
gives power to people.
1857
01:19:33,903 --> 01:19:36,495
Trustless sounds like there's no trust.
1858
01:19:36,519 --> 01:19:39,581
But actually it means we
don't need to trust you.
1859
01:19:39,605 --> 01:19:42,419
I think the better word
should be trust-free..
1860
01:19:42,443 --> 01:19:45,705
About one third, or maybe
half of all the cost
1861
01:19:45,729 --> 01:19:48,649
of all the transactions are
paid to establish trust
1862
01:19:48,673 --> 01:19:50,644
between trading parties.
1863
01:19:50,668 --> 01:19:53,697
Like we're paying for lawyers.
1864
01:19:53,721 --> 01:19:55,855
We're paying auditors.
1865
01:19:55,879 --> 01:19:58,542
We're paying even police, even regulators,
1866
01:19:58,566 --> 01:20:00,471
Government to build trust,
1867
01:20:00,495 --> 01:20:02,552
to ensure everything will be enforced.
1868
01:20:02,576 --> 01:20:05,506
So trust is quite expensive.
1869
01:20:05,530 --> 01:20:07,174
Blockchain is the first time
1870
01:20:07,198 --> 01:20:09,122
that we saw some technology
1871
01:20:09,146 --> 01:20:11,559
that can eliminate the cost
1872
01:20:11,583 --> 01:20:14,536
or reduce the cost of trust dramatically.
1873
01:20:14,560 --> 01:20:16,285
Magical things will happen.
1874
01:20:16,309 --> 01:20:17,753
Trust may be expensive,
1875
01:20:17,777 --> 01:20:19,408
but it's also in short supply.
1876
01:20:19,432 --> 01:20:21,000
All around the globe,
1877
01:20:21,024 --> 01:20:23,215
people have been losing
faith in the media,
1878
01:20:23,239 --> 01:20:25,183
institutions, and Governments.
1879
01:20:25,207 --> 01:20:27,354
So what if this new technology
1880
01:20:27,378 --> 01:20:28,999
could fix one of society's biggest issues?
1881
01:20:29,023 --> 01:20:31,002
But the question remains:
1882
01:20:31,026 --> 01:20:32,730
What if you are cheated?
1883
01:20:32,754 --> 01:20:34,946
What if your password is stolen,
1884
01:20:34,970 --> 01:20:35,965
and the money,
1885
01:20:35,989 --> 01:20:37,014
the contracts,
1886
01:20:37,038 --> 01:20:38,799
your identity is gone?
1887
01:20:41,070 --> 01:20:43,129
If code is law,
1888
01:20:43,153 --> 01:20:47,232
who administers justice?
1889
01:20:49,925 --> 01:20:52,212
Aren't you worried that the
promise of decentralizing power
1890
01:20:52,236 --> 01:20:55,485
is kind of in jeopardy
with you and Charlie
1891
01:20:55,509 --> 01:20:57,374
and Vitalik and Craig
1892
01:20:57,398 --> 01:20:59,722
as such central figureheads?
1893
01:20:59,746 --> 01:21:01,380
Yeah, I really wish
1894
01:21:01,404 --> 01:21:04,157
there weren't public figures or leaders.
1895
01:21:04,181 --> 01:21:05,510
I want everyone to lead themselves,
1896
01:21:05,534 --> 01:21:08,103
but sadly that's not the world we live in.
1897
01:21:08,127 --> 01:21:09,412
If you're gonna look to a leader,
1898
01:21:09,436 --> 01:21:10,956
you know, choose your leader wisely.
1899
01:21:13,731 --> 01:21:15,046
But just how different are they
1900
01:21:15,070 --> 01:21:16,964
from our current political, financial,
1901
01:21:16,988 --> 01:21:18,153
and business leaders?
1902
01:21:18,177 --> 01:21:20,444
Are their systems really
resistant to corruption,
1903
01:21:20,468 --> 01:21:22,119
immune to manipulation,
1904
01:21:22,143 --> 01:21:23,819
and worthy of our trust?
1905
01:21:24,736 --> 01:21:28,173
Maybe that's why the best
bet is on the only project
1906
01:21:28,197 --> 01:21:29,163
without a figurehead:
1907
01:21:29,187 --> 01:21:31,748
Bitcoin doesn't care about human drama,
1908
01:21:31,772 --> 01:21:34,968
bad press, or what anyone thinks.
1909
01:21:34,992 --> 01:21:38,240
Yeah, sure, it hasn't succeeded
as a global currency yet,
1910
01:21:38,264 --> 01:21:39,876
but in the past decade,
1911
01:21:39,900 --> 01:21:43,555
it has been the world's best
performing financial asset.
1912
01:21:43,579 --> 01:21:46,444
So we're back to where we started:
1913
01:21:46,468 --> 01:21:48,278
The genius who vanished.
1914
01:21:49,835 --> 01:21:51,669
With Satoshi being gone from Bitcoin,
1915
01:21:51,693 --> 01:21:56,135
Bitcoin is really a very
decentralised network and currency.
1916
01:21:56,159 --> 01:21:59,256
He was intelligent enough to know that
1917
01:22:00,978 --> 01:22:01,787
a system without a father
1918
01:22:01,811 --> 01:22:03,198
was gonna be much more robust
1919
01:22:03,222 --> 01:22:04,775
than a system with a father.
1920
01:22:06,438 --> 01:22:07,963
No father maybe,
1921
01:22:07,987 --> 01:22:09,322
but without leaving a will,
1922
01:22:09,346 --> 01:22:11,868
the kids are now fighting over
the meaning of his invention,
1923
01:22:11,892 --> 01:22:14,117
and the inheritance,
1924
01:22:14,141 --> 01:22:17,410
projecting their fears and
fantasies onto his legacy.
1925
01:22:21,244 --> 01:22:23,248
For some, it's money for the Internet
1926
01:22:23,272 --> 01:22:25,016
that can replace middlemen
1927
01:22:25,040 --> 01:22:26,804
and bank the unbanked.
1928
01:22:26,828 --> 01:22:29,112
And maybe a tool for illicit trade,
1929
01:22:29,136 --> 01:22:30,380
or is it digital gold?
1930
01:22:30,404 --> 01:22:32,081
A totally new asset class.
1931
01:22:32,105 --> 01:22:34,138
A bet against the bankers.
1932
01:22:34,162 --> 01:22:36,309
And insurance against inflation.
1933
01:22:36,333 --> 01:22:38,719
Protection from corrupt politicians.
1934
01:22:38,743 --> 01:22:41,182
And a weapon against the state.
1935
01:22:41,206 --> 01:22:43,663
Maybe the end of money as we know it.
1936
01:22:43,687 --> 01:22:46,651
For some entrepreneurs,
it represents a shortcut
1937
01:22:46,675 --> 01:22:48,379
to fund their dreams.
1938
01:22:48,403 --> 01:22:50,356
A platform for fairer finance.
1939
01:22:50,380 --> 01:22:52,843
Which is why incumbents fight it.
1940
01:22:52,867 --> 01:22:55,026
Some say public blockchains
1941
01:22:55,050 --> 01:22:57,236
are just slow and useless databases.
1942
01:22:57,260 --> 01:23:00,770
While big business is busy
building private blockchains
1943
01:23:00,794 --> 01:23:02,478
to boost efficiency.
1944
01:23:02,502 --> 01:23:04,666
Or maybe this decentralised technology
1945
01:23:04,690 --> 01:23:07,124
is a new protocol layer for the Internet
1946
01:23:07,148 --> 01:23:09,081
upon which we can build a better web
1947
01:23:09,105 --> 01:23:11,569
to dethrone the tech giants,
1948
01:23:11,593 --> 01:23:13,258
reclaim free speech,
1949
01:23:13,282 --> 01:23:15,236
protect online identities,
1950
01:23:15,260 --> 01:23:17,749
and facilitate free trade in
a borderless, digital economy.
1951
01:23:17,773 --> 01:23:20,959
Oh, and a tool to rebuild
trust in our societies,
1952
01:23:20,983 --> 01:23:25,196
and yes, maybe even save the planet.
1953
01:23:25,220 --> 01:23:29,149
That's a never ending
list of cryptopian ideas.
1954
01:23:32,792 --> 01:23:34,010
Isn't this a bit too much to ask
1955
01:23:34,034 --> 01:23:35,909
of a nine page document?
1956
01:23:43,401 --> 01:23:45,076
Yeah sure, the Internet and the Web
1957
01:23:45,100 --> 01:23:46,705
started out as white papers too.
1958
01:23:46,729 --> 01:23:49,776
But it took decades before
it's infrastructure was built,
1959
01:23:49,800 --> 01:23:51,547
became user friendly,
1960
01:23:51,571 --> 01:23:53,597
and ready to scale globally.
1961
01:23:53,621 --> 01:23:56,334
We kind of domesticate
the wild potential
1962
01:23:56,358 --> 01:23:58,604
of technologies into what's familiar.
1963
01:23:58,628 --> 01:24:01,190
And we dramatically underestimate,
1964
01:24:01,214 --> 01:24:02,388
or under imagine
1965
01:24:02,412 --> 01:24:04,687
what that technology may eventually do.
1966
01:24:04,711 --> 01:24:05,995
It'll be the users,
1967
01:24:06,019 --> 01:24:07,413
maybe billions of them,
1968
01:24:07,437 --> 01:24:09,614
who will adopt this technology
without even knowing
1969
01:24:09,638 --> 01:24:12,206
what a blockchain is or how it works.
1970
01:24:13,166 --> 01:24:15,445
Because here's the thing:
1971
01:24:15,469 --> 01:24:17,873
The average users don't
care about the wires
1972
01:24:17,897 --> 01:24:19,521
that move their money quicker,
1973
01:24:19,545 --> 01:24:20,980
don't know about the software
1974
01:24:21,004 --> 01:24:23,442
that moves this movie or that picture,
1975
01:24:23,466 --> 01:24:25,525
what will move them
1976
01:24:25,549 --> 01:24:28,882
are services that'll make
their days a little brighter,
1977
01:24:28,906 --> 01:24:30,938
their chores a little lighter,
1978
01:24:30,962 --> 01:24:35,093
and their lives a little richer.
1979
01:26:19,228 --> 01:26:24,228
Provided by explosiveskull
https://twitter.com/kaboomskull
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