[Music]
so I think Tupac had it right trust
nobody
at least when it comes to exchanging
value and transacting you really can’t
trust is outdated I mean for most of
human history our transactions happened
face to face so we could kind of get
away with we started with a barter
economy everything was trade base for
example I had a goat you had two
chickens we’d find a time to meet but in
like your chickens well I just take my
goat and I go home the downside was an
inconvenience but we know people are in
the market for more than just goats and
chickens we needed a more ubiquitous way
to transact which is where we have fiat
currency or paper money now with the
uniform currency I could go to work
create some value and then I get paid in
dollars I take those dollars I posit
some of the bank I buy some groceries
and then I go home now the problem here
is we’ve added a few layers of trust
we’re trusting the bank to safely secure
my my I’m trusting a third-party
intermediary to facilitate some of these
transactions and I’m also trusting the
Federal Reserve that they’re gonna be
responsible with the supply of money and
through history we’ve seen all three
levels that trust has been broken we’ve
seen banks go bankrupt money gone we’ve
seen these intermediaries take a point
off purchase and we’ve seen extreme
examples of hyperinflation where a
government wants to fund a political
agenda so they print twice as much money
overnight
the populace now half is rich and now
we’ve moved into this age of
globalization and we’ve piled on the
amount of trust that we need now on one
side it’s amazing we get to have global
access than this amount of value that we
create and can capture but on the other
side a lot of times we’re never even
meeting the people that we’re
transacting with we have whole asset
classes that are purely digital now let
me give you an example of how Trust can
be broken in this scenario so a couple
years ago I want to go to a J’s but it
was sold out back when they were still
winning it so I try and find some
tickets on the after mark I find someone
online and I do an e transfer and he
emails me to take us boom I’m on my way
to the game except I’m not cuz when I
show up it turns out these tickets are
fake now it was a little bit
embarrassing because I was on a date but
at the end of the day I still go home I
have a roof over my head food on the
table and I’m safe but not all of these
instances are so inconsequential let me
tell you about a friend of mine whose
family immigrated here to provide a
better life for him and all the siblings
now before they get here they need a
place to live so the parents go online
they find an apartment they sign a lease
and they send first and last month’s
rent and when they show up to Canada
excited about this new life and new
opportunities they show up to their new
house you know who greets them someone
who’s never even heard of them before
they got scammed
that leaves garbage first and last
month’s rent gone but most importantly
they’re homeless they moved across the
world excited for this new opportunity
and they don’t even have a home now what
if there was a better way what if we
didn’t even need dress we didn’t need to
rely on trust we could throw it out the
way now in 2008 we were introduced to a
better way
in Bitcoin and it came in a really
interesting time just weeks after the
financial collapse trust at an all-time
low so this person or collection of
people under the alias Satoshi Nakamoto
proposes a new financial system that
takes the characteristics of gold a
finite supply 21 million Bitcoin never
more never less but the mobility of the
digital currency and it also takes out
all trusted third parties so it’s trust
West now trustless is this term this
paradoxical term that I love it implies
that there is so much confidence that
you don’t even need to rely on trust so
how did Bitcoin accomplish this will
accomplish this through the blockchain
and we may ask ourselves what is the
block it seems like this term that we
see on the cover of every publication
everyone’s talking about it but I’m not
sure everyone truly understands what it
is now quite simply the blockchain is a
digital ledger a balance sheet but no
one owns it it’s distributed globally
it’s a fundamental shift in thinking
that actually the most secure way to run
a financial system is to be open
transparent and collaborative completely
orthogonal to how we traditionally think
about financials distance so in the
context of Bitcoin what does this look
like Mises Satoshi created 21 million
Bitcoin and he commits this to the
public ledger but in order to commit to
this to the public ledger it actually
goes before collection of notes these
are powerful computers these powerful
computers reach consensus on this
transaction and then add it to the
blockchain and to give you a little bit
of context there 10,000 of these nodes
around the world so this truly is a
distributed global set of what
so it’s added to the boccie this is the
first block the Genesis
with 21 million bitcoins in any
iteration needs to actually go before
they set of notes and reach consensus no
one entity controls and he changes the
financial system so for example so she
distributes some of these luckily I was
one of these not actually in the
original but there so it’s distributed
and then once those nodes confirm it it
gets added to the next block these do we
have a chain of blocks the blockchain
but what’s really important is that each
subsequent block has a reference to the
previous block so you see that
originally there were 21 million
bitcoins never more never less Satoshi
could not go create a million more
bitcoins and put that in his account so
if I want to make a transfer I actually
have to commit this to the blockchain
set of nodes reaches consensus and then
it gets transferred and this blockchain
is actually stored among these 10,000
nodes and they have to reach consensus
on each transaction and they store each
of these so it’s open and transparent
but if we’re gonna be open and
transparent with our financial we need a
certain level of security so this is
where cryptography why referred to as a
cryptocurrency because through
cryptography every person has a specific
identity on the blockchain that is
protected now this is a trust less
peer-to-peer financial system but will
gets me excited is all of the things
that are being built on top of this the
innovation is happening around blocking
Bitcoin was blockchain one data and
we’re starting to see more and more
innovation I would argue that blockchain
2.0 probably one of the most fundamental
innovations in the botching space
happened right here at UW in a theory
now aetherium takes blockchain and is
able to actually write smart contracts
it adds logic to the blockchain
so in the context of the Jays tickets
for example Jays create 20,000 thickness
they’re all uniquely identified on watch
and they’re distributed now Here I am I
have some money and here’s Brandon he
has some tickets I want two of those
tickets so I actually commit some
dollars or tokens to this transaction
and Brandon commits the tickets now
solves two things one I have confidence
that these tickets are real brandon has
confidence that I actually have the
money for it
but also it solves this fundamental
problem with sometimes that do I send
the money first or just rent send the
tickets first I can commit one side
Brandon it’s the other and then once
they’re confirmed by the nodes the
switch happens now I have the tickets
I’m actually on the on my way to the
game now why am i up here talking about
Jays it’s in the block the reality is I
actually don’t really I haven’t really
thought about that game until just
recently but what I do care about is my
friend who moves across the world that
ends up homeless this is not a one-off
event this is not an exclusive one time
these things happen every single day
people rely on trust and trust fails but
if we want to actually commit some
numbers to this 2.5 billion people
across the world are unbanked or
financially underserved and they’re
generating about 4.5 billion
transactions per day that means a third
of the world is relying on trust for
every single transaction but not just
that
they’re limited to transaction with
people they can actually reach
face-to-face so as we push forward in
this age of globalization they are not
connected 1/3 of the world is being left
behind no the blockchain offers an
opportunity for us to actually include
those and for us globally to not have to
rely on trust to be able to exchange
value very easily peer to peer
now what does the world look like when
we’re all actually connect well one we
have access mobile access we just talked
about but to each and every one of us is
an entrepreneur we create an immense
amount of value every single day we’re
just not collecting our paychecks in
this age we’re all connected we’re
creating these data points and we’re
creating this immense amount of value
but it’s fragmented and we actually
don’t even control that this is what it
looks like today for example Google
knows what I’m searching for Spotify
knows what I’m listening Facebook knows
where I’ve been and they control that
data and that’s how they fund their
visit and there’s two things that
happens one I’m on the outside looking
in I’m going creating this value and not
capturing any of that but then two these
are very fragmented sets of data for
example for the past six months I’ve
been getting these ads for diapers
because it was six months ago I searched
what do you buy a one-year-old for their
birthday cuz I have a friend who has a
one-year-old but after that I’m not in
the market type so this data on its own
sometimes isn’t even that value and
these centralized entities are
controlling that it’s very hard to get
that data there’s actually firms all do
it and I tried really hard to get a
bunch of the data that I’ve been
generating and one it’s hard and then B
it’s very cumbersome but if we’re
actually all connected through the
blockchain we can actually become a
stakeholder in this this data is a Gris
and then one I can become the owner of
this and actually choose when and how I
share it can rent that data out I could
sell that data but it would be selling
and renting for the purpose of magnified
experiences richer experiences for
example now if I’m shopping on Amazon
instead of being offered an ad for
diapers it would probably know that I
care about some recent natural disaster
that I’ve been reading about a lot on
Twitter and it says at the end of my
purchase do you want to donate this yes
absolutely that’s something that’s more
valuable for me and others then an ad
I don’t care about but also it allows
all of these centralized entities that
are holding on to this data and trying
to make a really valuable experience it
actually allows them to create rich
experience for example maybe I’ve booked
an Airbnb Airbnb knows that I’ve been
listened to a lot of Justin Bieber
lately it says hey there’s a concert
while you’re here about five miles away
you want to take it yes taken a stir
just made some bread and hey we’ll book
a ride for you
boom lifts just made some revenue so now
I’m having a much richer experience
these businesses are able to create
richer experiences and bring other
businesses in and ultimately everyone’s
creating more value so what does the
blockchain really offer well number one
it creates access it allows us to have
an inclusive financial system where we
don’t need to rely on trust and we can
create this value but it also allows us
to capture them now if I bring it back
to Tupac they’ll don’t trust me I want
you to go find out for yourself I
promise you’ll get pretty excited thank
you
you
so I think Tupac had it right trust
nobody
at least when it comes to exchanging
value and transacting you really can’t
trust is outdated I mean for most of
human history our transactions happened
face to face so we could kind of get
away with we started with a barter
economy everything was trade base for
example I had a goat you had two
chickens we’d find a time to meet but in
like your chickens well I just take my
goat and I go home the downside was an
inconvenience but we know people are in
the market for more than just goats and
chickens we needed a more ubiquitous way
to transact which is where we have fiat
currency or paper money now with the
uniform currency I could go to work
create some value and then I get paid in
dollars I take those dollars I posit
some of the bank I buy some groceries
and then I go home now the problem here
is we’ve added a few layers of trust
we’re trusting the bank to safely secure
my my I’m trusting a third-party
intermediary to facilitate some of these
transactions and I’m also trusting the
Federal Reserve that they’re gonna be
responsible with the supply of money and
through history we’ve seen all three
levels that trust has been broken we’ve
seen banks go bankrupt money gone we’ve
seen these intermediaries take a point
off purchase and we’ve seen extreme
examples of hyperinflation where a
government wants to fund a political
agenda so they print twice as much money
overnight
the populace now half is rich and now
we’ve moved into this age of
globalization and we’ve piled on the
amount of trust that we need now on one
side it’s amazing we get to have global
access than this amount of value that we
create and can capture but on the other
side a lot of times we’re never even
meeting the people that we’re
transacting with we have whole asset
classes that are purely digital now let
me give you an example of how Trust can
be broken in this scenario so a couple
years ago I want to go to a J’s but it
was sold out back when they were still
winning it so I try and find some
tickets on the after mark I find someone
online and I do an e transfer and he
emails me to take us boom I’m on my way
to the game except I’m not cuz when I
show up it turns out these tickets are
fake now it was a little bit
embarrassing because I was on a date but
at the end of the day I still go home I
have a roof over my head food on the
table and I’m safe but not all of these
instances are so inconsequential let me
tell you about a friend of mine whose
family immigrated here to provide a
better life for him and all the siblings
now before they get here they need a
place to live so the parents go online
they find an apartment they sign a lease
and they send first and last month’s
rent and when they show up to Canada
excited about this new life and new
opportunities they show up to their new
house you know who greets them someone
who’s never even heard of them before
they got scammed
that leaves garbage first and last
month’s rent gone but most importantly
they’re homeless they moved across the
world excited for this new opportunity
and they don’t even have a home now what
if there was a better way what if we
didn’t even need dress we didn’t need to
rely on trust we could throw it out the
way now in 2008 we were introduced to a
better way
in Bitcoin and it came in a really
interesting time just weeks after the
financial collapse trust at an all-time
low so this person or collection of
people under the alias Satoshi Nakamoto
proposes a new financial system that
takes the characteristics of gold a
finite supply 21 million Bitcoin never
more never less but the mobility of the
digital currency and it also takes out
all trusted third parties so it’s trust
West now trustless is this term this
paradoxical term that I love it implies
that there is so much confidence that
you don’t even need to rely on trust so
how did Bitcoin accomplish this will
accomplish this through the blockchain
and we may ask ourselves what is the
block it seems like this term that we
see on the cover of every publication
everyone’s talking about it but I’m not
sure everyone truly understands what it
is now quite simply the blockchain is a
digital ledger a balance sheet but no
one owns it it’s distributed globally
it’s a fundamental shift in thinking
that actually the most secure way to run
a financial system is to be open
transparent and collaborative completely
orthogonal to how we traditionally think
about financials distance so in the
context of Bitcoin what does this look
like Mises Satoshi created 21 million
Bitcoin and he commits this to the
public ledger but in order to commit to
this to the public ledger it actually
goes before collection of notes these
are powerful computers these powerful
computers reach consensus on this
transaction and then add it to the
blockchain and to give you a little bit
of context there 10,000 of these nodes
around the world so this truly is a
distributed global set of what
so it’s added to the boccie this is the
first block the Genesis
with 21 million bitcoins in any
iteration needs to actually go before
they set of notes and reach consensus no
one entity controls and he changes the
financial system so for example so she
distributes some of these luckily I was
one of these not actually in the
original but there so it’s distributed
and then once those nodes confirm it it
gets added to the next block these do we
have a chain of blocks the blockchain
but what’s really important is that each
subsequent block has a reference to the
previous block so you see that
originally there were 21 million
bitcoins never more never less Satoshi
could not go create a million more
bitcoins and put that in his account so
if I want to make a transfer I actually
have to commit this to the blockchain
set of nodes reaches consensus and then
it gets transferred and this blockchain
is actually stored among these 10,000
nodes and they have to reach consensus
on each transaction and they store each
of these so it’s open and transparent
but if we’re gonna be open and
transparent with our financial we need a
certain level of security so this is
where cryptography why referred to as a
cryptocurrency because through
cryptography every person has a specific
identity on the blockchain that is
protected now this is a trust less
peer-to-peer financial system but will
gets me excited is all of the things
that are being built on top of this the
innovation is happening around blocking
Bitcoin was blockchain one data and
we’re starting to see more and more
innovation I would argue that blockchain
2.0 probably one of the most fundamental
innovations in the botching space
happened right here at UW in a theory
now aetherium takes blockchain and is
able to actually write smart contracts
it adds logic to the blockchain
so in the context of the Jays tickets
for example Jays create 20,000 thickness
they’re all uniquely identified on watch
and they’re distributed now Here I am I
have some money and here’s Brandon he
has some tickets I want two of those
tickets so I actually commit some
dollars or tokens to this transaction
and Brandon commits the tickets now
solves two things one I have confidence
that these tickets are real brandon has
confidence that I actually have the
money for it
but also it solves this fundamental
problem with sometimes that do I send
the money first or just rent send the
tickets first I can commit one side
Brandon it’s the other and then once
they’re confirmed by the nodes the
switch happens now I have the tickets
I’m actually on the on my way to the
game now why am i up here talking about
Jays it’s in the block the reality is I
actually don’t really I haven’t really
thought about that game until just
recently but what I do care about is my
friend who moves across the world that
ends up homeless this is not a one-off
event this is not an exclusive one time
these things happen every single day
people rely on trust and trust fails but
if we want to actually commit some
numbers to this 2.5 billion people
across the world are unbanked or
financially underserved and they’re
generating about 4.5 billion
transactions per day that means a third
of the world is relying on trust for
every single transaction but not just
that
they’re limited to transaction with
people they can actually reach
face-to-face so as we push forward in
this age of globalization they are not
connected 1/3 of the world is being left
behind no the blockchain offers an
opportunity for us to actually include
those and for us globally to not have to
rely on trust to be able to exchange
value very easily peer to peer
now what does the world look like when
we’re all actually connect well one we
have access mobile access we just talked
about but to each and every one of us is
an entrepreneur we create an immense
amount of value every single day we’re
just not collecting our paychecks in
this age we’re all connected we’re
creating these data points and we’re
creating this immense amount of value
but it’s fragmented and we actually
don’t even control that this is what it
looks like today for example Google
knows what I’m searching for Spotify
knows what I’m listening Facebook knows
where I’ve been and they control that
data and that’s how they fund their
visit and there’s two things that
happens one I’m on the outside looking
in I’m going creating this value and not
capturing any of that but then two these
are very fragmented sets of data for
example for the past six months I’ve
been getting these ads for diapers
because it was six months ago I searched
what do you buy a one-year-old for their
birthday cuz I have a friend who has a
one-year-old but after that I’m not in
the market type so this data on its own
sometimes isn’t even that value and
these centralized entities are
controlling that it’s very hard to get
that data there’s actually firms all do
it and I tried really hard to get a
bunch of the data that I’ve been
generating and one it’s hard and then B
it’s very cumbersome but if we’re
actually all connected through the
blockchain we can actually become a
stakeholder in this this data is a Gris
and then one I can become the owner of
this and actually choose when and how I
share it can rent that data out I could
sell that data but it would be selling
and renting for the purpose of magnified
experiences richer experiences for
example now if I’m shopping on Amazon
instead of being offered an ad for
diapers it would probably know that I
care about some recent natural disaster
that I’ve been reading about a lot on
Twitter and it says at the end of my
purchase do you want to donate this yes
absolutely that’s something that’s more
valuable for me and others then an ad
I don’t care about but also it allows
all of these centralized entities that
are holding on to this data and trying
to make a really valuable experience it
actually allows them to create rich
experience for example maybe I’ve booked
an Airbnb Airbnb knows that I’ve been
listened to a lot of Justin Bieber
lately it says hey there’s a concert
while you’re here about five miles away
you want to take it yes taken a stir
just made some bread and hey we’ll book
a ride for you
boom lifts just made some revenue so now
I’m having a much richer experience
these businesses are able to create
richer experiences and bring other
businesses in and ultimately everyone’s
creating more value so what does the
blockchain really offer well number one
it creates access it allows us to have
an inclusive financial system where we
don’t need to rely on trust and we can
create this value but it also allows us
to capture them now if I bring it back
to Tupac they’ll don’t trust me I want
you to go find out for yourself I
promise you’ll get pretty excited thank
you
you
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