a bunch of computer code that a bunch of
criminals idealists and speculators
agree is worth real money sadly it’s
real money value swings widely making it
impractical except for criminals
idealists and speculators blockchain a
different bunch of computer code
containing an unalterable record of a
series of transactions the most famous
is a digital ledger recording all
Bitcoin transfers those definitions came
courtesy of the AARP just a few weeks
ago it is no wonder that there is
rampant confusion and misunderstanding
I’m going to offer you a different view
I believe that blockchain has the
potential to transform commerce the way
the internet transformed communication
now why do I think that I’ve been
working in high-tech for over two
decades I would tell you the true length
of time but then you’d know how old I am
so I’m not going to do that I’ve been
part of two startups one of which went
bankrupt totally not my fault
and I have been part of the rise of
major technology trends including
Wireless and internet-based
communications in the cloud I understand
enough about how technology disrupts
industries and gets adopted to be
dangerously committed to my beliefs an
envision of future that is both exciting
and in my view likely to happen that
AARP definition did get a few things
right bitcoin is not blockchain and
blockchain is not Bitcoin they are in
fact different bunches of code and
bitcoin is the most famous use case of
blockchain at least today
but blockchain is where the magic
happens
it can simplify the complicated
streamline the convoluted and create
transparency and Trust it can transform
commerce I think back to the emergence
of email I was working at a government
agency when we were rolling email out
and trying to move away from faxes we
had an administrator and she for the
life of her could not understand why we
would use email she thought it was silly
and duplicative I should probably
mention her job was in large part taking
our faxes copying them and filing them
so she thought email was duplicated and
it was if you believe that nothing can
be improved if I had dared I was young
and she was frankly a little scary so I
didn’t dare but if I had dared I think I
would have said to her yes faxes work
but this is going to be better it’s
going to reduce friction it’s going to
be more reliable and it’s ultimately
going to simplify what we do these days
I’m actually having similar
conversations with some of my colleagues
when we look at test cases using
blockchain they challenge me on my
assertion that blockchain will transform
commerce because when we look at those
test cases it it actually just looks
like a streamlined process like when you
order something from Amazon you can see
exactly where your order is through the
process right the way through until it
ships to your doorstep and they’re not
using blockchain to do that so my
colleagues will ice me why don’t we use
a database and some application
programming interfaces instead won’t
that work just as well they’re not wrong
my response pretty consistently is yes
that works
but it won’t be as simple you’ll need
intermediaries processes paper checkers
like leery checkers all of which limit
efficiency and add costs blockchain is
giving us a new way of exchanging value
and conducting commerce by no means the
only way and much as the Internet
fundamentally transformed how we
communicate
I think blockchain has the potential to
fundamentally transform how we exchange
value why am I so convinced because I
see similarities between what the
internet did and what blockchain can do
it creates simplicity transparency speed
and above all Trust so let’s look at
what blockchain does and how it does it
when I first started learning about
blockchain I did the usual I went to
presentations went to webinars read I
read a lot and I found myself thoroughly
and undoubtedly confused I would read
and reread a definition that goes
something along the lines of the
following blockchain is a distributed
ledger database based on a cryptographic
peer-to-peer network providing a single
source of the truth now if you’re
anything like me you understand all if
not most of those words individually but
you put them together and say that’s
your definition not a clue I mean
seriously is there it any wonder that
the AARP felt the need to come up with
their own definition so let me break it
down blockchain is a ledger something to
track the exchange of value to record
transactions
it’s a new version of the old paper
ledger that was computerized in the 80s
and the 90s but this letter is special
it resides in multiple places with
exactly the same information that is
continuously updated everybody has
access to the same exact information
isn’t this the very definition of
transparency but why would we trust the
information that’s in the ledger why do
we believe it the answer to that
question lies literally in the block and
the chain so a block is a record of the
transaction but in order to lay down
that block you need to solve a
cryptographic algorithm fancy
terminology for super hard math problem
so you have to solve the math problem in
order to record the transaction for
clarity the computer does the math you
all don’t need to do the math down the
road when we won’t move to blockchain so
it’s the computer and since we know that
there’s only one answer to that math
problem I think we learned that in
elementary school the entire system
knows it must be a true record of the
transaction now subsequent transactions
are recorded in exactly the same way you
record a transaction by doing the math
problem and laying it down in the block
that’s what forms the chain a block can
never be changed so if a mistake is made
you actually need to do a new
transaction recorded in a block to
offset it so you have a record that you
know is true you have a record that can
never be changed and you can all see it
you have trust and transparency so let’s
think about how that dynamic works today
when parties who don’t trust each other
either because they don’t know each
other or
just got no reason to it’s not a bad
kind of not trusting each other it’s
just the way it is when they need to
transact they use intermediaries
somebody who does have a trusted
relationship it is this trust and
transparency that is so huge and so
transformative because think about it
think about all the intermediaries that
exist because we don’t trust and don’t
have transparency attorneys brokers
bankers and think about the paper and
the processes that move around and get
checked and rechecked because we don’t
trust and don’t have transparency
insurance document documents shipping
documents proof of ownership and think
about the cost and the time that’s
involved I imagine a world where those
intermediaries and those processes are
gone or greatly eliminated where
friction is reduced and transactions
occur as easily as information as
exchanged over the Internet but this is
not going to be an overnight change as
with the early days of the Internet
there are weaknesses blockchain is still
a new technology there hiccups there are
lots of skeptics and there’s no
regulatory regime as of yet and as with
that administrator when we were moving
to email blockchain will require a
change in processes behavior and likely
beliefs so while I don’t think it will
happen overnight I do think that we will
get there how do I think it’s going to
evolve I think back to when the internet
was becoming more widespread information
was actually still pretty limited and to
a large extent you had to know where to
find it and in many cases you need
needed permission to access it
and look at us now a world wide web of
information
this is democratically available and in
to ative to access I think we’ll see a
similar evolution here we’re already
beginning to see the rise of private
blockchain networks where the parties in
a transaction have permissioned
access to the blockchain like that major
retail giant that is tracking the
shipment of produce from its origin to
their retail stores using blockchain
these private blockchain networks will
become more and more common and easier
and more intuitive to use the
information will become richer as the
assets change hands and they and they
grow until ultimately we’ll have a web
of transaction information maybe even a
worldwide web of Commerce so while some
think that that bunch of code blockchain
is just the enabler for that other bunch
of code Bitcoin and a bubble I see it as
the technology that’s going to
democratize and revolutionize commerce
freeing up hundreds of billions of
dollars in cost and making it easier for
all of us to trust and transact thank
you [Music]
criminals idealists and speculators
agree is worth real money sadly it’s
real money value swings widely making it
impractical except for criminals
idealists and speculators blockchain a
different bunch of computer code
containing an unalterable record of a
series of transactions the most famous
is a digital ledger recording all
Bitcoin transfers those definitions came
courtesy of the AARP just a few weeks
ago it is no wonder that there is
rampant confusion and misunderstanding
I’m going to offer you a different view
I believe that blockchain has the
potential to transform commerce the way
the internet transformed communication
now why do I think that I’ve been
working in high-tech for over two
decades I would tell you the true length
of time but then you’d know how old I am
so I’m not going to do that I’ve been
part of two startups one of which went
bankrupt totally not my fault
and I have been part of the rise of
major technology trends including
Wireless and internet-based
communications in the cloud I understand
enough about how technology disrupts
industries and gets adopted to be
dangerously committed to my beliefs an
envision of future that is both exciting
and in my view likely to happen that
AARP definition did get a few things
right bitcoin is not blockchain and
blockchain is not Bitcoin they are in
fact different bunches of code and
bitcoin is the most famous use case of
blockchain at least today
but blockchain is where the magic
happens
it can simplify the complicated
streamline the convoluted and create
transparency and Trust it can transform
commerce I think back to the emergence
of email I was working at a government
agency when we were rolling email out
and trying to move away from faxes we
had an administrator and she for the
life of her could not understand why we
would use email she thought it was silly
and duplicative I should probably
mention her job was in large part taking
our faxes copying them and filing them
so she thought email was duplicated and
it was if you believe that nothing can
be improved if I had dared I was young
and she was frankly a little scary so I
didn’t dare but if I had dared I think I
would have said to her yes faxes work
but this is going to be better it’s
going to reduce friction it’s going to
be more reliable and it’s ultimately
going to simplify what we do these days
I’m actually having similar
conversations with some of my colleagues
when we look at test cases using
blockchain they challenge me on my
assertion that blockchain will transform
commerce because when we look at those
test cases it it actually just looks
like a streamlined process like when you
order something from Amazon you can see
exactly where your order is through the
process right the way through until it
ships to your doorstep and they’re not
using blockchain to do that so my
colleagues will ice me why don’t we use
a database and some application
programming interfaces instead won’t
that work just as well they’re not wrong
my response pretty consistently is yes
that works
but it won’t be as simple you’ll need
intermediaries processes paper checkers
like leery checkers all of which limit
efficiency and add costs blockchain is
giving us a new way of exchanging value
and conducting commerce by no means the
only way and much as the Internet
fundamentally transformed how we
communicate
I think blockchain has the potential to
fundamentally transform how we exchange
value why am I so convinced because I
see similarities between what the
internet did and what blockchain can do
it creates simplicity transparency speed
and above all Trust so let’s look at
what blockchain does and how it does it
when I first started learning about
blockchain I did the usual I went to
presentations went to webinars read I
read a lot and I found myself thoroughly
and undoubtedly confused I would read
and reread a definition that goes
something along the lines of the
following blockchain is a distributed
ledger database based on a cryptographic
peer-to-peer network providing a single
source of the truth now if you’re
anything like me you understand all if
not most of those words individually but
you put them together and say that’s
your definition not a clue I mean
seriously is there it any wonder that
the AARP felt the need to come up with
their own definition so let me break it
down blockchain is a ledger something to
track the exchange of value to record
transactions
it’s a new version of the old paper
ledger that was computerized in the 80s
and the 90s but this letter is special
it resides in multiple places with
exactly the same information that is
continuously updated everybody has
access to the same exact information
isn’t this the very definition of
transparency but why would we trust the
information that’s in the ledger why do
we believe it the answer to that
question lies literally in the block and
the chain so a block is a record of the
transaction but in order to lay down
that block you need to solve a
cryptographic algorithm fancy
terminology for super hard math problem
so you have to solve the math problem in
order to record the transaction for
clarity the computer does the math you
all don’t need to do the math down the
road when we won’t move to blockchain so
it’s the computer and since we know that
there’s only one answer to that math
problem I think we learned that in
elementary school the entire system
knows it must be a true record of the
transaction now subsequent transactions
are recorded in exactly the same way you
record a transaction by doing the math
problem and laying it down in the block
that’s what forms the chain a block can
never be changed so if a mistake is made
you actually need to do a new
transaction recorded in a block to
offset it so you have a record that you
know is true you have a record that can
never be changed and you can all see it
you have trust and transparency so let’s
think about how that dynamic works today
when parties who don’t trust each other
either because they don’t know each
other or
just got no reason to it’s not a bad
kind of not trusting each other it’s
just the way it is when they need to
transact they use intermediaries
somebody who does have a trusted
relationship it is this trust and
transparency that is so huge and so
transformative because think about it
think about all the intermediaries that
exist because we don’t trust and don’t
have transparency attorneys brokers
bankers and think about the paper and
the processes that move around and get
checked and rechecked because we don’t
trust and don’t have transparency
insurance document documents shipping
documents proof of ownership and think
about the cost and the time that’s
involved I imagine a world where those
intermediaries and those processes are
gone or greatly eliminated where
friction is reduced and transactions
occur as easily as information as
exchanged over the Internet but this is
not going to be an overnight change as
with the early days of the Internet
there are weaknesses blockchain is still
a new technology there hiccups there are
lots of skeptics and there’s no
regulatory regime as of yet and as with
that administrator when we were moving
to email blockchain will require a
change in processes behavior and likely
beliefs so while I don’t think it will
happen overnight I do think that we will
get there how do I think it’s going to
evolve I think back to when the internet
was becoming more widespread information
was actually still pretty limited and to
a large extent you had to know where to
find it and in many cases you need
needed permission to access it
and look at us now a world wide web of
information
this is democratically available and in
to ative to access I think we’ll see a
similar evolution here we’re already
beginning to see the rise of private
blockchain networks where the parties in
a transaction have permissioned
access to the blockchain like that major
retail giant that is tracking the
shipment of produce from its origin to
their retail stores using blockchain
these private blockchain networks will
become more and more common and easier
and more intuitive to use the
information will become richer as the
assets change hands and they and they
grow until ultimately we’ll have a web
of transaction information maybe even a
worldwide web of Commerce so while some
think that that bunch of code blockchain
is just the enabler for that other bunch
of code Bitcoin and a bubble I see it as
the technology that’s going to
democratize and revolutionize commerce
freeing up hundreds of billions of
dollars in cost and making it easier for
all of us to trust and transact thank
you [Music]
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