trust it’s something so powerful it
takes decades to build an instant to
destroy him and I’m pretty sure we
remember companies or other people that
have misused our trust and maybe you
have also misused someone else’s trust
sometimes Trust is something that has
shaped mankind is something that has
brought mankind to where it is today but
when we ask the question what is trust
actually then the definition that I can
come up with it’s two things its
predictability and accountability it is
accountability in a sense to what am I
in charge of what am I going to do and
predictability that I’m actually going
to do it so when we look at companies we
look at government’s we look at other
leaders and they misuse our trust what
does this mean it means one of two
things it means they either misuse
accountability or predictability let’s
start with predictability basically
they’re saying a and then they’re doing
B every year in the u.s. there is this
competition where people get to vote
companies against each other who is
misusing our trust more and there’s this
playoff bracket pretty much where then
you have this winner who is them pretty
much the loser because it’s the company
that no one trusts and what these
companies pretty much are doing is they
are not doing what they’re saying they
are doing so predictability is at the
low now since this is really difficult
to tackle people have wondered maybe we
can focus on the other side and we
cannot put so much trust into these
companies how can we decrease
accountability and this is actually
something that especially with data
protection with banks with governments
and all these things it becomes more and
more apparent and more and more
important the question simply is do we
need to entrust companies do we need to
give them all the power and then they
are in charge of all these things
there’s a bank
have to have the overview of all our
finances the challenge in the digital
world is simple it’s very easy to create
information copy information and destroy
information I can take a picture I can
edit this picture I can copy this
picture at no cost and so if I don’t
have a central entity that makes sure
that a thousand dollars on a bank
accounts stay a thousand dollars it’s
very difficult to trust this system
because anyone could just add a zero and
it becomes ten thousand dollars or
anyone could edit a word file and say
well yesterday I said this team is gonna
win and then I just changed the word
file and I say that team won and because
there’s no central entity governing this
it’s very difficult to build trust if no
one is in charge or is it for a very
long time people have wondered how there
would be a solution basically a
decentralized solution and maybe I’ve
heard these terms like distributed
lecture technologies DLTS
a blockchain cryptocurrency maybe I’ve
heard about Bitcoin what are these
things and how come people say we can
trust these things even though no one is
in charge so let’s very simply go five
level steep to go all the way from trust
or consensus down to one of millions of
examples namely Bitcoin consensus is
what happened or what didn’t happen and
consensus is distrust and we put it in a
centralized institution but this could
also be decentralized and this works in
a way when instead of a bank saying how
much money you have or some contractor
having the contract data some social
media company having all your
information every participant of the
community stores a little bit of this
information so instead of one bank
saying Julian you have a thousand
dollars it would be everyone saying that
I would have a thousand dollars this is
what’s called a distributed ledger not
centralized but distributed in the
example of blockchain what happens is
this information gets
junk it into time blocks and whenever an
update happens these updates to the
ledger happen within a time block for
example ten minutes and so every 10
minutes the community looks how does
this ledger get updated this information
and then everyone takes this information
and puts it into history earn own
database and because these time blocks
get chained together through
cryptography we call this digital file
where everyone stores information and
everyone agrees on a block chain it’s
actually something very simple just most
people explain it so complicated that no
one out there understands it and that’s
why there’s so many myths and rumors on
what this actually is and so the next
fourth layer is just what gets stored in
this digital file what time blocks are
chained together and in theory could be
anything anything where we don’t want a
centralized power to store the data and
in the case of cryptocurrencies we store
financial information or how much money
someone else there is approximately 50
to 70 large large areas just like the
finance area where block chains
basically information in this file is
immensely disrupting this industry we
just don’t see it right now it started
with finance the next area is probably
gonna be logistics many many many other
areas are gonna follow here as well the
area that brought me into this field is
actually medicine I’m an medical doctor
and the biggest problem medicine or one
of the major problems has always been
how to store medical data it’s something
so sensitive because I don’t want a
central company to store everyone’s data
if this company gets hacked everyone’s
data leaks now but in a blockchain no
one actually controls the data everyone
controls the data him or herself because
no one is in charge accountability is
brought to zero because the system is
kept accountable but here’s the question
when no one is in charge who is to blame
who is to trust who should we go to and
these are some relevant questions
because you might be wondering now
sounds very interesting but why is
blockchain not more advanced well small
example aetherium the second largest
blocked in the world it’s a
decentralized computer so instead of
having a central computer these programs
on there
run on thousands of computers all around
the world and one of these programs in
2016 is called the dao a decentralized
autonomous organization and the idea was
very smart the idea is you know why not
have a decentralized fund so instead of
having one fund manager this fund is
controlled for everyone who invests and
then there can be voting decisions on
where to invest this to this fund
collected within very brief time a
hundred and fifty million u.s. dollars
just until a hacker or let’s better say
someone who actually read the code
realized that he or she could cipher
money out of these 150 million and
ciphered 80 million dollars out of the
150 million dollars now we might call
this that this person hacked or stole
but did this person really it’s added in
the code that this was possible that
person didn’t do anything illegal per se
was it a buck or was it a feature and
actually the community and even the law
is not a hundred percent sure which way
it is and what happened in 2016 is that
this large blockchain split and that’s
why today we have an assyrian blockchain
and we have an aetherium classic
blockchain because even the community
another huge use case of this
decentralized technology is something
called IC owes an initial coin offering
is when a company raises money and
creates their own cryptocurrency they do
this because hopefully they do this to
build trust to have increased trust
through this technology called a
blockchain our accompany to next it one
of the largest i ciose to date in 2017
of 80 million dollars so obviously i’m a
big fan of i SEOs but I’m also one of
its biggest critics and the statistics
are earth-shattering over 80% of all I
cos actually scan 10
are doomed to fail and maybe 5% will
actually succeed so a technology that’s
there to increase trust is almost
destroying it through this another
buzzword is something called Smart
contract smart contract is instead of me
and you making a contract where maybe I
or you and the third party store this
contract to make sure with a third party
that this contract gets executed this
contract is stored on thousands of
computers all around the world and make
sure if event a happens it gets executed
a very nice example for this is for
example insurance think about it you
have a house the house is worth $250,000
and every month you pay the insurance
company $100 pure example and if
something happens to your house let’s
say your house would burn down you
receive $250,000 so you hope your house
never burns down but the insurance
company would cover for it now we could
do this with a smart contract on the
blockchain and the good thing is we
could remove the insurance company so
instead of having to pay $100 we might
only have to pay $80 because the $20 are
the cut for the company and now this is
a computer program we don’t have to pay
anyone it’s very very cheap so I pay
every month my $80 and in case something
happens an entire pool because other
people obviously would use this as well
I would receive $250,000 and it’s
guaranteed it’s gonna work but since no
one is in charge think about it what
could happen neighbor ace as Julian is a
very interesting idea let me also pay
$80 every month and if your house burns
down I will get also $250,000 neighbor B
says fantastic idea
let me also pay $80 every month and if
something happens to your house I’ll get
$250,000 and neighbor C and neighbor D
and neighbor E and suddenly maybe
there’s a hundred people all betting on
my house burning down so something that
was supposed to not happen and only in
the unlikely case I would be insured
something turns around and is very
unlikely to happen and why because no
one is in charge by definition no one is
in charge a company tried to create
decentralized IOT devices IOT the
Internet of Things huge buzzwords and
what they basically said was let’s make
thermostats that are so secure that not
even our company could access them they
are completely decentralized sounds like
a fantastic idea right well I had kin
noticed a bug in the code and programmed
their thermostats that from certain time
onwards every hour the temperature
increased by one degree and it did this
from 21 to 22 to 23 to 24 to 25 and
people started to having their own sauna
in their own house and these thermostats
said you know you have to send one
Bitcoin $10,000 back then to this
address for the thermostats to stop
increasing and people started freaking
out they started to call the company and
the company said sorry these things are
decentralized there’s nothing we can do
about it
so these people had to take a hammer and
they have hurt the thermostats out
because obviously didn’t want their
house to burn down now obviously I am
making fun of an industry or an area
where I am deeply invested in and the
reason I’m doing this is because I
believe in its success but I also want
to highlight that success is not a
straight road it’s actually back and
forth up and down and we should always
keep this a little bit in mind the
reason why I’m such a big fan of
blockchain is something that we at 10x
are actually doing it’s a system called
comet and it will connect these pools of
trust block chains with each other
similar how the internet connected pools
of information the Internet’s with each
other any business today that’s banking
on trust and charges users because they
use errs have to trust them block chains
will heavily disrupt this ecosystem fees
are going down because of this trust and
this will deliver massive value to users
and to people all around the world
because these systems are going to be
very very open and very open source and
that is something that’s really
beautiful as a future thinking forward
now there’s a big caveat with this and
that is that blockchain is this high
port there’s a company who makes ice tea
and they thought let’s use this hype
change our name from Long Island iced
tea to blockchain iced tea and you might
be thinking what is stupid idea well
their stock price doubled overnight just
by them adding the word blockchain
because of this hype so don’t fall for
every shiny syndrome we have seen this
in other areas obviously as well in this
case for example a pharmaceutical
company serranos that claimed that they
had a new technology now what can we
learn from that well we can learn from
Google invest Google invest didn’t fall
for them and the reason is something
that bill mary’s actually describes
really nicely he said you know they
talked about this new technology there
was a lot of hand waving but whenever we
went there we wanted to see execution we
wanted to see the actual product yes I
understand at the beginning it takes
some time but over years there was just
hand waving and clapping and flashy but
there was never actually an execution
then then you should be very very and
this is a key essential out of all this
yes there’s a big hype and yes there’s
huge potential be careful that you don’t
get sucked into this hype and just
blindly follow something without
actually asking does this make sense
does this work should you joined us
let’s circle back to the very first
question who to trust when no one is in
charge who to trust in a system that’s
extremely predictable who has ownership
who has accountability the most
important person you and this might
sound scary but it’s insanely powerful
because you’re gonna know that if you
can do something it will happen
obviously no system is perfect and the
big question is who is gonna cover up
when there’s a problem
who plays customer support it’s
something that I ask myself every single
time when I’m in a hotel room and I lose
my key card cuz I don’t want to end up
like this guests so I’m glad my room is
centrally centralized
all yeah but of course your is box yeah
I know the poor guy yes he has to use a
tray for a bit of cover and then he
heads to the reception desk yeah look at
this and demands me to what the
reception so I mean I think we’re all
glad in these situations that we don’t
have to run around naked through it to
our how sexually but we can actually go
down to the reception area and get a new
card and this only works because a hotel
is centralized that’s why I don’t
believe in a future that’s gonna be a
hundred percent decentralized these
systems will have to mix we will need
centralized systems and we will need
decentralized systems just like we don’t
wanna have a monarchy and an anarchy we
want something in the middle we want
some people in charge but we want people
in charge who can’t misuse our trust
where we know that if we can trust
ourselves stuff will happen the right
way and so the key in this area that’s
why I’m want to show you the up and down
set is it doesn’t matter whether the
glass is half full or half empty it
takes those people who are the
entrepreneurs who are the visionaries
people who see the voids people who in
any kind of area realize men blockchain
could really disrupt my business if I
don’t get moving and this is this really
important thing it is so important to
become what we call crypto fit it’s
something where I want people to
understand what blockchain is what
decentralization means what a
cryptocurrency is and what it’s not what
is the hype and what’s the legit it is
about just that kids ago you learned how
to trust the online digital world that
it’s now about trusting a system where
no one is in charge thank you
[Applause] [Music]
takes decades to build an instant to
destroy him and I’m pretty sure we
remember companies or other people that
have misused our trust and maybe you
have also misused someone else’s trust
sometimes Trust is something that has
shaped mankind is something that has
brought mankind to where it is today but
when we ask the question what is trust
actually then the definition that I can
come up with it’s two things its
predictability and accountability it is
accountability in a sense to what am I
in charge of what am I going to do and
predictability that I’m actually going
to do it so when we look at companies we
look at government’s we look at other
leaders and they misuse our trust what
does this mean it means one of two
things it means they either misuse
accountability or predictability let’s
start with predictability basically
they’re saying a and then they’re doing
B every year in the u.s. there is this
competition where people get to vote
companies against each other who is
misusing our trust more and there’s this
playoff bracket pretty much where then
you have this winner who is them pretty
much the loser because it’s the company
that no one trusts and what these
companies pretty much are doing is they
are not doing what they’re saying they
are doing so predictability is at the
low now since this is really difficult
to tackle people have wondered maybe we
can focus on the other side and we
cannot put so much trust into these
companies how can we decrease
accountability and this is actually
something that especially with data
protection with banks with governments
and all these things it becomes more and
more apparent and more and more
important the question simply is do we
need to entrust companies do we need to
give them all the power and then they
are in charge of all these things
there’s a bank
have to have the overview of all our
finances the challenge in the digital
world is simple it’s very easy to create
information copy information and destroy
information I can take a picture I can
edit this picture I can copy this
picture at no cost and so if I don’t
have a central entity that makes sure
that a thousand dollars on a bank
accounts stay a thousand dollars it’s
very difficult to trust this system
because anyone could just add a zero and
it becomes ten thousand dollars or
anyone could edit a word file and say
well yesterday I said this team is gonna
win and then I just changed the word
file and I say that team won and because
there’s no central entity governing this
it’s very difficult to build trust if no
one is in charge or is it for a very
long time people have wondered how there
would be a solution basically a
decentralized solution and maybe I’ve
heard these terms like distributed
lecture technologies DLTS
a blockchain cryptocurrency maybe I’ve
heard about Bitcoin what are these
things and how come people say we can
trust these things even though no one is
in charge so let’s very simply go five
level steep to go all the way from trust
or consensus down to one of millions of
examples namely Bitcoin consensus is
what happened or what didn’t happen and
consensus is distrust and we put it in a
centralized institution but this could
also be decentralized and this works in
a way when instead of a bank saying how
much money you have or some contractor
having the contract data some social
media company having all your
information every participant of the
community stores a little bit of this
information so instead of one bank
saying Julian you have a thousand
dollars it would be everyone saying that
I would have a thousand dollars this is
what’s called a distributed ledger not
centralized but distributed in the
example of blockchain what happens is
this information gets
junk it into time blocks and whenever an
update happens these updates to the
ledger happen within a time block for
example ten minutes and so every 10
minutes the community looks how does
this ledger get updated this information
and then everyone takes this information
and puts it into history earn own
database and because these time blocks
get chained together through
cryptography we call this digital file
where everyone stores information and
everyone agrees on a block chain it’s
actually something very simple just most
people explain it so complicated that no
one out there understands it and that’s
why there’s so many myths and rumors on
what this actually is and so the next
fourth layer is just what gets stored in
this digital file what time blocks are
chained together and in theory could be
anything anything where we don’t want a
centralized power to store the data and
in the case of cryptocurrencies we store
financial information or how much money
someone else there is approximately 50
to 70 large large areas just like the
finance area where block chains
basically information in this file is
immensely disrupting this industry we
just don’t see it right now it started
with finance the next area is probably
gonna be logistics many many many other
areas are gonna follow here as well the
area that brought me into this field is
actually medicine I’m an medical doctor
and the biggest problem medicine or one
of the major problems has always been
how to store medical data it’s something
so sensitive because I don’t want a
central company to store everyone’s data
if this company gets hacked everyone’s
data leaks now but in a blockchain no
one actually controls the data everyone
controls the data him or herself because
no one is in charge accountability is
brought to zero because the system is
kept accountable but here’s the question
when no one is in charge who is to blame
who is to trust who should we go to and
these are some relevant questions
because you might be wondering now
sounds very interesting but why is
blockchain not more advanced well small
example aetherium the second largest
blocked in the world it’s a
decentralized computer so instead of
having a central computer these programs
on there
run on thousands of computers all around
the world and one of these programs in
2016 is called the dao a decentralized
autonomous organization and the idea was
very smart the idea is you know why not
have a decentralized fund so instead of
having one fund manager this fund is
controlled for everyone who invests and
then there can be voting decisions on
where to invest this to this fund
collected within very brief time a
hundred and fifty million u.s. dollars
just until a hacker or let’s better say
someone who actually read the code
realized that he or she could cipher
money out of these 150 million and
ciphered 80 million dollars out of the
150 million dollars now we might call
this that this person hacked or stole
but did this person really it’s added in
the code that this was possible that
person didn’t do anything illegal per se
was it a buck or was it a feature and
actually the community and even the law
is not a hundred percent sure which way
it is and what happened in 2016 is that
this large blockchain split and that’s
why today we have an assyrian blockchain
and we have an aetherium classic
blockchain because even the community
another huge use case of this
decentralized technology is something
called IC owes an initial coin offering
is when a company raises money and
creates their own cryptocurrency they do
this because hopefully they do this to
build trust to have increased trust
through this technology called a
blockchain our accompany to next it one
of the largest i ciose to date in 2017
of 80 million dollars so obviously i’m a
big fan of i SEOs but I’m also one of
its biggest critics and the statistics
are earth-shattering over 80% of all I
cos actually scan 10
are doomed to fail and maybe 5% will
actually succeed so a technology that’s
there to increase trust is almost
destroying it through this another
buzzword is something called Smart
contract smart contract is instead of me
and you making a contract where maybe I
or you and the third party store this
contract to make sure with a third party
that this contract gets executed this
contract is stored on thousands of
computers all around the world and make
sure if event a happens it gets executed
a very nice example for this is for
example insurance think about it you
have a house the house is worth $250,000
and every month you pay the insurance
company $100 pure example and if
something happens to your house let’s
say your house would burn down you
receive $250,000 so you hope your house
never burns down but the insurance
company would cover for it now we could
do this with a smart contract on the
blockchain and the good thing is we
could remove the insurance company so
instead of having to pay $100 we might
only have to pay $80 because the $20 are
the cut for the company and now this is
a computer program we don’t have to pay
anyone it’s very very cheap so I pay
every month my $80 and in case something
happens an entire pool because other
people obviously would use this as well
I would receive $250,000 and it’s
guaranteed it’s gonna work but since no
one is in charge think about it what
could happen neighbor ace as Julian is a
very interesting idea let me also pay
$80 every month and if your house burns
down I will get also $250,000 neighbor B
says fantastic idea
let me also pay $80 every month and if
something happens to your house I’ll get
$250,000 and neighbor C and neighbor D
and neighbor E and suddenly maybe
there’s a hundred people all betting on
my house burning down so something that
was supposed to not happen and only in
the unlikely case I would be insured
something turns around and is very
unlikely to happen and why because no
one is in charge by definition no one is
in charge a company tried to create
decentralized IOT devices IOT the
Internet of Things huge buzzwords and
what they basically said was let’s make
thermostats that are so secure that not
even our company could access them they
are completely decentralized sounds like
a fantastic idea right well I had kin
noticed a bug in the code and programmed
their thermostats that from certain time
onwards every hour the temperature
increased by one degree and it did this
from 21 to 22 to 23 to 24 to 25 and
people started to having their own sauna
in their own house and these thermostats
said you know you have to send one
Bitcoin $10,000 back then to this
address for the thermostats to stop
increasing and people started freaking
out they started to call the company and
the company said sorry these things are
decentralized there’s nothing we can do
about it
so these people had to take a hammer and
they have hurt the thermostats out
because obviously didn’t want their
house to burn down now obviously I am
making fun of an industry or an area
where I am deeply invested in and the
reason I’m doing this is because I
believe in its success but I also want
to highlight that success is not a
straight road it’s actually back and
forth up and down and we should always
keep this a little bit in mind the
reason why I’m such a big fan of
blockchain is something that we at 10x
are actually doing it’s a system called
comet and it will connect these pools of
trust block chains with each other
similar how the internet connected pools
of information the Internet’s with each
other any business today that’s banking
on trust and charges users because they
use errs have to trust them block chains
will heavily disrupt this ecosystem fees
are going down because of this trust and
this will deliver massive value to users
and to people all around the world
because these systems are going to be
very very open and very open source and
that is something that’s really
beautiful as a future thinking forward
now there’s a big caveat with this and
that is that blockchain is this high
port there’s a company who makes ice tea
and they thought let’s use this hype
change our name from Long Island iced
tea to blockchain iced tea and you might
be thinking what is stupid idea well
their stock price doubled overnight just
by them adding the word blockchain
because of this hype so don’t fall for
every shiny syndrome we have seen this
in other areas obviously as well in this
case for example a pharmaceutical
company serranos that claimed that they
had a new technology now what can we
learn from that well we can learn from
Google invest Google invest didn’t fall
for them and the reason is something
that bill mary’s actually describes
really nicely he said you know they
talked about this new technology there
was a lot of hand waving but whenever we
went there we wanted to see execution we
wanted to see the actual product yes I
understand at the beginning it takes
some time but over years there was just
hand waving and clapping and flashy but
there was never actually an execution
then then you should be very very and
this is a key essential out of all this
yes there’s a big hype and yes there’s
huge potential be careful that you don’t
get sucked into this hype and just
blindly follow something without
actually asking does this make sense
does this work should you joined us
let’s circle back to the very first
question who to trust when no one is in
charge who to trust in a system that’s
extremely predictable who has ownership
who has accountability the most
important person you and this might
sound scary but it’s insanely powerful
because you’re gonna know that if you
can do something it will happen
obviously no system is perfect and the
big question is who is gonna cover up
when there’s a problem
who plays customer support it’s
something that I ask myself every single
time when I’m in a hotel room and I lose
my key card cuz I don’t want to end up
like this guests so I’m glad my room is
centrally centralized
all yeah but of course your is box yeah
I know the poor guy yes he has to use a
tray for a bit of cover and then he
heads to the reception desk yeah look at
this and demands me to what the
reception so I mean I think we’re all
glad in these situations that we don’t
have to run around naked through it to
our how sexually but we can actually go
down to the reception area and get a new
card and this only works because a hotel
is centralized that’s why I don’t
believe in a future that’s gonna be a
hundred percent decentralized these
systems will have to mix we will need
centralized systems and we will need
decentralized systems just like we don’t
wanna have a monarchy and an anarchy we
want something in the middle we want
some people in charge but we want people
in charge who can’t misuse our trust
where we know that if we can trust
ourselves stuff will happen the right
way and so the key in this area that’s
why I’m want to show you the up and down
set is it doesn’t matter whether the
glass is half full or half empty it
takes those people who are the
entrepreneurs who are the visionaries
people who see the voids people who in
any kind of area realize men blockchain
could really disrupt my business if I
don’t get moving and this is this really
important thing it is so important to
become what we call crypto fit it’s
something where I want people to
understand what blockchain is what
decentralization means what a
cryptocurrency is and what it’s not what
is the hype and what’s the legit it is
about just that kids ago you learned how
to trust the online digital world that
it’s now about trusting a system where
no one is in charge thank you
[Applause] [Music]
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