[Music]
this old old adage where money is power
typically reserved for the few with the
advent of cryptocurrencies and tokenized
assets money is now technology which
creates a more inspired adage of
technology equalling power democratized
for the money and we’re seeing this
narrative play out in the valuations of
the largest companies in the world Marc
Andreessen famous quote software is
eating the world is coming into focus
that’s further enunciated with some of
the biggest technology networks in the
world the largest taxi company owns no
cars the largest media company creates
no content the largest accommodations
provider owns no hotels the largest
e-commerce company has no inventory and
a seventy billion dollar currency has no
bank branches no CEO and no customer
service department but technology is
kind of scary kind of not intuitive on
the front end I remember growing up in
suburban Chicago and going to Kmart on
my BMX bike and buying a Commodore
vic-20 I couldn’t afford the 64 and I
remember coming home tapping out code
and saving it to a cassette tape I
remember using the internet for the
first time and that was a gopher
interface before the web browser first
cell phone was in a bag over the strap
over my shoulder that was like a
ginormous cinderblock social networking
MySpace and blockchain Vasavi Bitcoin
and I must admit when when Bitcoin first
came on my radar I did what most people
still do today
III discounted it I thought it was silly
magic internet money six years ago and
it took me a while to wrap my brain
around it and I did back then what I
still tell people to do today is lock
your door turn off your phone and study
this technology for a day is the same
advice I give my teenage kids and the
same advice I give to fortune 500 CEOs
so a Bitcoin is one of the greatest
inventions of our time that’s a bold
statement for a technology that’s been
around for less than a decade and based
on a nine-page white paper written by an
anonymous author named Satoshi Nakamoto
and what so she did is is is he created
the world’s first scarce digital asset a
token and that was an invention that an
innovation where you cannot copy that
and when we send emails and PDFs to each
other we’re sending copies and that’s
great for communication and
collaboration but for money factors for
value factors it’s not a great thing and
so I’d love to think through a an
example a SpaceX a Hyperloop a Tesla
example of how to explain Bitcoin but I
like this old-school railroad example
where the underlying blockchain are the
rails and Bitcoin the the tokens are the
box cars that run on that rail so if you
kind of picture that in your mind that’s
kind of how these token economies work
so who is Satoshi
I I get this question a lot and
certainly the media has been on the hunt
for Satoshi for quite some time and and
the way I contextualize it for myself is
going back to middle school geometry and
looking at the Pythagorean theorem a
squared plus B squared equals C squared
I don’t know if Pythagoras was I don’t
know what eat for breakfast we went to
school but I can bet my life on that
mathematical equation that will work
every single time I run it and I think
that’s the gifts that oh she gave us
where it’s don’t focus on the
personality don’t focus on an
institution focus on the math don’t
trust and verify so Satoshi and nobody
knows if it’s a he a she a group of
professors put the code out front and
and said to focus on that we have a
real-life Satoshi in our midst with a
gentleman named Vitalik Bou Turan who is
the inventor of etherium and etherium is
a global decentralized computing network
the dalek issued his white paper in 2014
and 30 months ago raised 16 million
in a crowdfunding where they sold tokens
in the etherium network to help build
out and develop that ecosystem which now
is worth 30 billion dollars that has
also inspired a whole group of
entrepreneurs to develop in this open
source decentralized ecosystem and and
that that that page has been taken out
to really help solve this chicken and
egg problem with funding financing open
source projects what that’s created is a
Cambrian explosion of innovation and
finance in these decentralized networks
so two billion dollars has been raised
so far in 2017 on about a hundred
different projects coin capped at i/o
this is a great dashboard for the token
economy and there’s about 900 projects
listed here and growing the collective
market cap is about a hundred and fifty
billion dollars that’s up 12 times in
the last year the daily liquidity in
this space is about three and a half
billion to put that in perspective Apple
currently trades about four billion a
day
so this ecosystem is hot at the same
time we’re just getting started so let’s
look at some use cases Amazon Web
Services AWS is one of the world’s is
the world’s largest public cloud
provider twice the size of Google
Microsoft and IBM combined which pales
in comparison to every computer we have
on our desktop and universities and
governments and corporations and so
every layer of AWS is being reimagined
on a decentralized basis think of the
DWS and as a great example is file coin
which about a month ago raised a quarter
billion dollars to build out that
platform and file coin is basically a
decentralized Dropbox so think of your
computer that has excess storage and you
would open that up to the file coin
network and if somebody would use that
you’d get paid in file coin tokens
conversely if you need storage you would
pay for that in final coin tokens
a new economy and a new resource has
been unlocked with with this distributed
platform how many of us feel like we own
our own identity you know with with
facial Facebook and Google mining our
data with the Equifax hack it’s hard to
really feel that way these days Civic is
a pioneer in this space and one of the
greatest use cases of blockchain
technology is digital identity a true
digital digital identity and if I go
into target today and buy a pack of gum
I give my credit card sometimes have to
get my driver’s license and right there
I’m over credentialed that cashier knows
my home address my credit card number
and that I’m a Sagittarius that’s that’s
overkill fast-forward we’re gonna have
partitioned identities so based on the
use case and and the element that we’re
trying to solve we’ll go into a bank
will have a certain partition of our
identity going to a hospital another set
apply for a job yet another one going
back to target all that will happen is
that process the transaction will
process and no personal information will
be shared traditional assets will also
be tokenized and so think about a
dentist in Toledo owning a fractional
piece of the Burj Khalifa in Dubai so
real estate cars boats traditional
assets will get tokenized both on an
ownership and a financing basis and then
even a fast-forward to security sirs
there’s a couple platforms today like
polymath and t0 that are providing
compliance registered tokenized
securities and exchanges to really honor
this opportunity okay what if I told you
that Kardashians can tokenize and create
their own economy okay so every brand
every artist every tribe can tokenize
their economy and and this is award
points mileage points 2.0 on steroids
and so you’re able to incentivize your
early adopters and your influencers and
create new economies with these tokens
this even applies to
okay so so think about a non-terrestrial
software network that you could store
data on and build applications on and
space chain is one of the the companies
that’s trying to accomplish that so it’s
it’s there’s no limit in terms of that
the types of things you could do with
this and what’s what’s transpired here
that a new asset class has developed
underneath our feet this token economy
is a 24/7 365 day a year phenomenon
there’s no Monday through Friday
there’s no bank holidays these tokens
are traded constantly and it’s open and
democratized meaning if you’re actually
driver a goat herder a hedge fund
manager you have access to these new
digital tokens and what’s different here
versus the early internet which Bob Kahn
and Vint Cerf built the tcp/ip protocol
you can’t really invest in that you’d
have to decide between a Google and an S
jefes you know and and you could be
right on the space but wrong on the
horse here what what these tokens
represent our participation rights in
these new protocols these new layers of
the Internet and that’s a big change for
investors participants and developers
that want to reimagine certain layers of
the Internet there will be bumps in the
road so regulation every other week you
see China banning a particular
cryptocurrency
or Japan legalizing Bitcoin and that’s
going to create regulatory arbitrage
generally um technology outpaces
regulation we saw that with Skype
whether it was a tech whether it was a
telecom or a software platform and a
regulars had to get their their arms
around that this is lighting up lots of
lights and and puzzling lots of
regulators there’s also a massive
opportunity for regulatory arbitrage and
regulatory innovation whereby the the
jobs investment and
innovation captured in this ecosystem
can create the new Wall Street can
create the new Silicon Valley and we’ll
see that play out over the next several
years adoption I remember you know five
six years ago managing my own Bitcoin
wall that was like filleting your own
Blowfish you know if you hit the wrong
gland something could go terribly wrong
and those form factors were not that
intuitive and so fast forward to today
that those form factors of a wall live
in coinbase or an exchange in bit wrecks
the four factors the user interface has
gotten much much better and continue to
do that and with that will drive new
adoption and a whole new level of
participation in this ecosystem hype so
is this a bubble is this tulipmania
is you know what is going on here a
hundred and fifty billion dollar market
cap ecosystem and growing in 12 months
it’s pretty incredible but I remember in
the early internet days where people got
really excited about putting pet food
and office supplies and women’s shoes
online that was like a big deal here
we’re talking about digital currencies
and identity and land titles it’s a
completely different form factor and and
things that are of consequence and of
real value the adoption curves for that
will be different it’s not like we’re
you know downloading Instagram and
sharing cat pictures these are money
factors and so are our trust factors and
our bar is going to be raised a lot
higher to engage in these these new
formats of money but at the same time
we’re in the early days well 150 billion
dollars looks looks heady today the
what’s that consequence here our new
trillion dollar networks and yes there
will be risk this is the same thing as
startup land 95% of these things will go
sideways but again the opportunity here
is to create these new rails these new
trillion-dollar rails for the movement
of value and money privately and
securely so this all translates into
a once-in-a-lifetime opportunity the
tokenization of things is upon us and
creates unprecedent levels of financial
access privacy and security and and kind
of ranks up there on the level of life
liberty pursuit of happiness those kinds
of form factors and and in many ways
this feels like a second bite at the
Apple to build a new internet and this
this bite is less about the technology
it’s more about being a part of this
movement to create a better future thank
you
[Applause]
[Music]
[Applause]
this old old adage where money is power
typically reserved for the few with the
advent of cryptocurrencies and tokenized
assets money is now technology which
creates a more inspired adage of
technology equalling power democratized
for the money and we’re seeing this
narrative play out in the valuations of
the largest companies in the world Marc
Andreessen famous quote software is
eating the world is coming into focus
that’s further enunciated with some of
the biggest technology networks in the
world the largest taxi company owns no
cars the largest media company creates
no content the largest accommodations
provider owns no hotels the largest
e-commerce company has no inventory and
a seventy billion dollar currency has no
bank branches no CEO and no customer
service department but technology is
kind of scary kind of not intuitive on
the front end I remember growing up in
suburban Chicago and going to Kmart on
my BMX bike and buying a Commodore
vic-20 I couldn’t afford the 64 and I
remember coming home tapping out code
and saving it to a cassette tape I
remember using the internet for the
first time and that was a gopher
interface before the web browser first
cell phone was in a bag over the strap
over my shoulder that was like a
ginormous cinderblock social networking
MySpace and blockchain Vasavi Bitcoin
and I must admit when when Bitcoin first
came on my radar I did what most people
still do today
III discounted it I thought it was silly
magic internet money six years ago and
it took me a while to wrap my brain
around it and I did back then what I
still tell people to do today is lock
your door turn off your phone and study
this technology for a day is the same
advice I give my teenage kids and the
same advice I give to fortune 500 CEOs
so a Bitcoin is one of the greatest
inventions of our time that’s a bold
statement for a technology that’s been
around for less than a decade and based
on a nine-page white paper written by an
anonymous author named Satoshi Nakamoto
and what so she did is is is he created
the world’s first scarce digital asset a
token and that was an invention that an
innovation where you cannot copy that
and when we send emails and PDFs to each
other we’re sending copies and that’s
great for communication and
collaboration but for money factors for
value factors it’s not a great thing and
so I’d love to think through a an
example a SpaceX a Hyperloop a Tesla
example of how to explain Bitcoin but I
like this old-school railroad example
where the underlying blockchain are the
rails and Bitcoin the the tokens are the
box cars that run on that rail so if you
kind of picture that in your mind that’s
kind of how these token economies work
so who is Satoshi
I I get this question a lot and
certainly the media has been on the hunt
for Satoshi for quite some time and and
the way I contextualize it for myself is
going back to middle school geometry and
looking at the Pythagorean theorem a
squared plus B squared equals C squared
I don’t know if Pythagoras was I don’t
know what eat for breakfast we went to
school but I can bet my life on that
mathematical equation that will work
every single time I run it and I think
that’s the gifts that oh she gave us
where it’s don’t focus on the
personality don’t focus on an
institution focus on the math don’t
trust and verify so Satoshi and nobody
knows if it’s a he a she a group of
professors put the code out front and
and said to focus on that we have a
real-life Satoshi in our midst with a
gentleman named Vitalik Bou Turan who is
the inventor of etherium and etherium is
a global decentralized computing network
the dalek issued his white paper in 2014
and 30 months ago raised 16 million
in a crowdfunding where they sold tokens
in the etherium network to help build
out and develop that ecosystem which now
is worth 30 billion dollars that has
also inspired a whole group of
entrepreneurs to develop in this open
source decentralized ecosystem and and
that that that page has been taken out
to really help solve this chicken and
egg problem with funding financing open
source projects what that’s created is a
Cambrian explosion of innovation and
finance in these decentralized networks
so two billion dollars has been raised
so far in 2017 on about a hundred
different projects coin capped at i/o
this is a great dashboard for the token
economy and there’s about 900 projects
listed here and growing the collective
market cap is about a hundred and fifty
billion dollars that’s up 12 times in
the last year the daily liquidity in
this space is about three and a half
billion to put that in perspective Apple
currently trades about four billion a
day
so this ecosystem is hot at the same
time we’re just getting started so let’s
look at some use cases Amazon Web
Services AWS is one of the world’s is
the world’s largest public cloud
provider twice the size of Google
Microsoft and IBM combined which pales
in comparison to every computer we have
on our desktop and universities and
governments and corporations and so
every layer of AWS is being reimagined
on a decentralized basis think of the
DWS and as a great example is file coin
which about a month ago raised a quarter
billion dollars to build out that
platform and file coin is basically a
decentralized Dropbox so think of your
computer that has excess storage and you
would open that up to the file coin
network and if somebody would use that
you’d get paid in file coin tokens
conversely if you need storage you would
pay for that in final coin tokens
a new economy and a new resource has
been unlocked with with this distributed
platform how many of us feel like we own
our own identity you know with with
facial Facebook and Google mining our
data with the Equifax hack it’s hard to
really feel that way these days Civic is
a pioneer in this space and one of the
greatest use cases of blockchain
technology is digital identity a true
digital digital identity and if I go
into target today and buy a pack of gum
I give my credit card sometimes have to
get my driver’s license and right there
I’m over credentialed that cashier knows
my home address my credit card number
and that I’m a Sagittarius that’s that’s
overkill fast-forward we’re gonna have
partitioned identities so based on the
use case and and the element that we’re
trying to solve we’ll go into a bank
will have a certain partition of our
identity going to a hospital another set
apply for a job yet another one going
back to target all that will happen is
that process the transaction will
process and no personal information will
be shared traditional assets will also
be tokenized and so think about a
dentist in Toledo owning a fractional
piece of the Burj Khalifa in Dubai so
real estate cars boats traditional
assets will get tokenized both on an
ownership and a financing basis and then
even a fast-forward to security sirs
there’s a couple platforms today like
polymath and t0 that are providing
compliance registered tokenized
securities and exchanges to really honor
this opportunity okay what if I told you
that Kardashians can tokenize and create
their own economy okay so every brand
every artist every tribe can tokenize
their economy and and this is award
points mileage points 2.0 on steroids
and so you’re able to incentivize your
early adopters and your influencers and
create new economies with these tokens
this even applies to
okay so so think about a non-terrestrial
software network that you could store
data on and build applications on and
space chain is one of the the companies
that’s trying to accomplish that so it’s
it’s there’s no limit in terms of that
the types of things you could do with
this and what’s what’s transpired here
that a new asset class has developed
underneath our feet this token economy
is a 24/7 365 day a year phenomenon
there’s no Monday through Friday
there’s no bank holidays these tokens
are traded constantly and it’s open and
democratized meaning if you’re actually
driver a goat herder a hedge fund
manager you have access to these new
digital tokens and what’s different here
versus the early internet which Bob Kahn
and Vint Cerf built the tcp/ip protocol
you can’t really invest in that you’d
have to decide between a Google and an S
jefes you know and and you could be
right on the space but wrong on the
horse here what what these tokens
represent our participation rights in
these new protocols these new layers of
the Internet and that’s a big change for
investors participants and developers
that want to reimagine certain layers of
the Internet there will be bumps in the
road so regulation every other week you
see China banning a particular
cryptocurrency
or Japan legalizing Bitcoin and that’s
going to create regulatory arbitrage
generally um technology outpaces
regulation we saw that with Skype
whether it was a tech whether it was a
telecom or a software platform and a
regulars had to get their their arms
around that this is lighting up lots of
lights and and puzzling lots of
regulators there’s also a massive
opportunity for regulatory arbitrage and
regulatory innovation whereby the the
jobs investment and
innovation captured in this ecosystem
can create the new Wall Street can
create the new Silicon Valley and we’ll
see that play out over the next several
years adoption I remember you know five
six years ago managing my own Bitcoin
wall that was like filleting your own
Blowfish you know if you hit the wrong
gland something could go terribly wrong
and those form factors were not that
intuitive and so fast forward to today
that those form factors of a wall live
in coinbase or an exchange in bit wrecks
the four factors the user interface has
gotten much much better and continue to
do that and with that will drive new
adoption and a whole new level of
participation in this ecosystem hype so
is this a bubble is this tulipmania
is you know what is going on here a
hundred and fifty billion dollar market
cap ecosystem and growing in 12 months
it’s pretty incredible but I remember in
the early internet days where people got
really excited about putting pet food
and office supplies and women’s shoes
online that was like a big deal here
we’re talking about digital currencies
and identity and land titles it’s a
completely different form factor and and
things that are of consequence and of
real value the adoption curves for that
will be different it’s not like we’re
you know downloading Instagram and
sharing cat pictures these are money
factors and so are our trust factors and
our bar is going to be raised a lot
higher to engage in these these new
formats of money but at the same time
we’re in the early days well 150 billion
dollars looks looks heady today the
what’s that consequence here our new
trillion dollar networks and yes there
will be risk this is the same thing as
startup land 95% of these things will go
sideways but again the opportunity here
is to create these new rails these new
trillion-dollar rails for the movement
of value and money privately and
securely so this all translates into
a once-in-a-lifetime opportunity the
tokenization of things is upon us and
creates unprecedent levels of financial
access privacy and security and and kind
of ranks up there on the level of life
liberty pursuit of happiness those kinds
of form factors and and in many ways
this feels like a second bite at the
Apple to build a new internet and this
this bite is less about the technology
it’s more about being a part of this
movement to create a better future thank
you
[Applause]
[Music]
[Applause]
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