0 00:00:00,000 --> 00:00:30,000 Dear viewer, these subtitles were generated by a machine via the service Trint and therefore are (very) buggy. If you are capable, please help us to create good quality subtitles: https://c3subtitles.de/talk/878 Thanks! 1 00:00:15,320 --> 00:00:17,899 And our next speaker 2 00:00:17,900 --> 00:00:20,269 is Zucco, 3 00:00:20,270 --> 00:00:22,399 and I don't think 4 00:00:22,400 --> 00:00:24,589 I need to introduce him 5 00:00:24,590 --> 00:00:27,349 because there is a huge crowd of people 6 00:00:27,350 --> 00:00:29,569 who probably came to this hall 7 00:00:29,570 --> 00:00:32,179 just to listen to this talk, 8 00:00:32,180 --> 00:00:33,949 maybe even came to the Congress just to 9 00:00:33,950 --> 00:00:34,950 listen to this. 10 00:00:35,990 --> 00:00:38,239 So the founder 11 00:00:38,240 --> 00:00:40,549 of the cash, 12 00:00:40,550 --> 00:00:42,739 zuka, a round of applause, a 13 00:00:42,740 --> 00:00:44,479 huge, huge round of applause. 14 00:00:52,120 --> 00:00:54,849 Oh, my God, there's so many people, 15 00:00:54,850 --> 00:00:56,649 I think I've never stood in front of this 16 00:00:56,650 --> 00:00:59,079 many people before in my life. 17 00:00:59,080 --> 00:00:59,979 Thank you. Thank you. 18 00:00:59,980 --> 00:01:01,749 Thank you all for being here. 19 00:01:01,750 --> 00:01:04,059 I'm Zucco and 20 00:01:04,060 --> 00:01:05,889 I'm the founder of Z Cash. 21 00:01:05,890 --> 00:01:06,890 And 22 00:01:08,830 --> 00:01:10,959 a long time ago, I worked on Deji 23 00:01:10,960 --> 00:01:13,089 Cash, which was the first cryptocurrency 24 00:01:13,090 --> 00:01:15,069 in 1996 for David Chom, 25 00:01:16,180 --> 00:01:18,279 who is one of the first 26 00:01:18,280 --> 00:01:20,919 cryptographers who made cryptography 27 00:01:20,920 --> 00:01:22,989 into an open public science 28 00:01:22,990 --> 00:01:25,089 instead of a military secret. 29 00:01:25,090 --> 00:01:27,309 But then three years ago, I got 30 00:01:27,310 --> 00:01:29,499 an opportunity to 31 00:01:29,500 --> 00:01:31,689 create cash with a bunch 32 00:01:31,690 --> 00:01:32,950 of other scientists. 33 00:01:34,090 --> 00:01:36,219 And cash is a combination of 34 00:01:36,220 --> 00:01:38,319 Bitcoin technology with 35 00:01:38,320 --> 00:01:39,320 encryption. 36 00:01:40,600 --> 00:01:42,759 But this talk is not mostly about that. 37 00:01:42,760 --> 00:01:44,019 It's not about cash. 38 00:01:44,020 --> 00:01:46,359 It's about what I've been doing 39 00:01:46,360 --> 00:01:48,489 and learning in the last three years as 40 00:01:48,490 --> 00:01:49,780 I travel the world 41 00:01:51,880 --> 00:01:53,649 talking to people who are using cash and 42 00:01:53,650 --> 00:01:55,809 building all these related technologies, 43 00:01:55,810 --> 00:01:58,119 all these other coins and Ethereum 44 00:01:58,120 --> 00:01:59,559 and smart contracts and all that other 45 00:01:59,560 --> 00:02:01,749 stuff. So so this talk is 46 00:02:01,750 --> 00:02:03,819 a brief survey 47 00:02:03,820 --> 00:02:05,949 of 50 different weird things that 48 00:02:05,950 --> 00:02:07,569 I've learned in the last couple of years. 49 00:02:07,570 --> 00:02:08,570 And it's very 50 00:02:09,699 --> 00:02:11,289 it's very much just this is just my 51 00:02:11,290 --> 00:02:13,419 opinions and 52 00:02:13,420 --> 00:02:15,129 biases. And there's a whole bunch of 53 00:02:15,130 --> 00:02:17,109 important stuff that's not included in 54 00:02:17,110 --> 00:02:20,079 this talk because I'm blind spots. 55 00:02:20,080 --> 00:02:22,329 So don't take it as objective 56 00:02:22,330 --> 00:02:24,729 truth. And my main questions 57 00:02:24,730 --> 00:02:26,859 that I hope to tell 58 00:02:26,860 --> 00:02:29,139 you my opinion about is all 59 00:02:29,140 --> 00:02:31,929 of this cryptocurrency technology 60 00:02:31,930 --> 00:02:34,149 and block chain and cerium and all that, 61 00:02:34,150 --> 00:02:36,309 is it just is it just hype 62 00:02:36,310 --> 00:02:38,049 or is it a real thing? 63 00:02:38,050 --> 00:02:40,569 Is it is a really revolutionary or what? 64 00:02:40,570 --> 00:02:43,119 And is it revolutionary for good or for 65 00:02:43,120 --> 00:02:44,120 evil? 66 00:02:46,280 --> 00:02:47,470 OK, real quick, 67 00:02:49,070 --> 00:02:50,989 Bitcoin was a revelation when it went 68 00:02:50,990 --> 00:02:53,420 Satoshi Nakamoto came up with it in 2008. 69 00:02:55,950 --> 00:02:58,249 Bitcoin, as you probably mostly 70 00:02:58,250 --> 00:03:00,739 know, is this amazing 71 00:03:00,740 --> 00:03:01,939 technique to 72 00:03:03,200 --> 00:03:05,659 maintain a global consistent 73 00:03:05,660 --> 00:03:07,759 ledger that everyone on the 74 00:03:07,760 --> 00:03:09,949 planet can simultaneously agree 75 00:03:09,950 --> 00:03:12,589 roughly to within the last 76 00:03:12,590 --> 00:03:14,899 few hours of the contents 77 00:03:14,900 --> 00:03:16,009 of this ledger. 78 00:03:16,010 --> 00:03:17,839 And it uses this concept of proof of 79 00:03:17,840 --> 00:03:19,939 work, which enables mining, which 80 00:03:19,940 --> 00:03:22,639 is one of the things that helps prevent 81 00:03:22,640 --> 00:03:24,679 this ledger from being fragmented. 82 00:03:24,680 --> 00:03:25,939 So different people believe different 83 00:03:25,940 --> 00:03:28,039 things or getting rolled 84 00:03:28,040 --> 00:03:29,269 back or reverted. 85 00:03:29,270 --> 00:03:31,399 And then the whole point of it, 86 00:03:31,400 --> 00:03:33,379 of using all that through technology is 87 00:03:33,380 --> 00:03:35,899 just to be digital cash, 88 00:03:35,900 --> 00:03:37,399 electronic digital cash 89 00:03:38,750 --> 00:03:40,819 without relying on any 90 00:03:40,820 --> 00:03:42,469 central party. 91 00:03:42,470 --> 00:03:43,879 That's the whole point of it. So you have 92 00:03:43,880 --> 00:03:46,039 this ledger and then all you do is 93 00:03:46,040 --> 00:03:48,859 keep track of who owns how many bitcoins 94 00:03:48,860 --> 00:03:50,029 in the ledger. 95 00:03:50,030 --> 00:03:52,519 And that's an awesome breakthrough. 96 00:03:52,520 --> 00:03:54,349 It was a computer science and 97 00:03:54,350 --> 00:03:55,459 cryptography breakthrough. 98 00:03:55,460 --> 00:03:56,460 And it came out 99 00:03:58,790 --> 00:04:00,199 and it meant a lot to me personally 100 00:04:00,200 --> 00:04:01,580 because I had struggled for 101 00:04:02,810 --> 00:04:05,179 at least a decade to invent such a thing 102 00:04:05,180 --> 00:04:07,009 and failed. And so I had concluded that 103 00:04:07,010 --> 00:04:08,629 it was probably impossible. 104 00:04:08,630 --> 00:04:10,969 And so when Satoshi did it, it was 105 00:04:10,970 --> 00:04:11,989 quite the revelation. 106 00:04:11,990 --> 00:04:13,430 And it has led to everything else 107 00:04:14,780 --> 00:04:15,780 in this talk. 108 00:04:18,730 --> 00:04:21,009 There's a typical pattern, I think, 109 00:04:21,010 --> 00:04:23,139 that new 110 00:04:23,140 --> 00:04:25,269 inventions take about five years 111 00:04:25,270 --> 00:04:27,969 to get traction and really become 112 00:04:27,970 --> 00:04:29,889 mature enough for people to rely on them 113 00:04:29,890 --> 00:04:33,369 and get more than a fringe 114 00:04:33,370 --> 00:04:35,379 degree of usage. 115 00:04:35,380 --> 00:04:37,029 And then they typically take another five 116 00:04:37,030 --> 00:04:39,219 years after that. So about 10 117 00:04:39,220 --> 00:04:41,529 years total before they before 118 00:04:41,530 --> 00:04:43,629 they reach their potential and start 119 00:04:43,630 --> 00:04:45,879 helping start providing value 120 00:04:45,880 --> 00:04:47,739 in larger and larger amounts to larger, 121 00:04:47,740 --> 00:04:49,989 larger and larger numbers of people. 122 00:04:49,990 --> 00:04:52,119 So Bitcoin is past the first five 123 00:04:52,120 --> 00:04:54,369 years, Mark. It has reached 124 00:04:54,370 --> 00:04:56,619 maturity and has proven 125 00:04:56,620 --> 00:04:58,240 that people actually use it for things. 126 00:04:59,740 --> 00:05:02,439 And then in 2013 127 00:05:02,440 --> 00:05:04,569 of its Veeteren came up with the concept 128 00:05:04,570 --> 00:05:06,879 of Ethereum and thorium is 129 00:05:06,880 --> 00:05:10,029 the can is it's a world computer. 130 00:05:10,030 --> 00:05:12,189 So like Bitcoin is a worldwide 131 00:05:12,190 --> 00:05:13,789 ledger. 132 00:05:13,790 --> 00:05:15,769 Ethereum is a worldwide computer and 133 00:05:15,770 --> 00:05:18,009 there's just one computer and everyone 134 00:05:18,010 --> 00:05:20,109 has to line up and take 135 00:05:20,110 --> 00:05:21,249 turns submitting their program. 136 00:05:21,250 --> 00:05:23,139 So it's in fact a timesharing machine if 137 00:05:23,140 --> 00:05:24,579 anybody knows what those were. 138 00:05:26,270 --> 00:05:28,959 It's the world time sharing service 139 00:05:28,960 --> 00:05:29,960 and 140 00:05:31,900 --> 00:05:33,009 the way it works 141 00:05:34,300 --> 00:05:36,759 briefly, Ethereum, is that 142 00:05:36,760 --> 00:05:39,039 all of the miners are validators that 143 00:05:39,040 --> 00:05:41,139 in Bitcoin, all of those nodes are 144 00:05:41,140 --> 00:05:42,789 just making sure the ledgers kept up to 145 00:05:42,790 --> 00:05:45,669 date and internally consistent. 146 00:05:45,670 --> 00:05:47,139 And in theory, and what all those nodes 147 00:05:47,140 --> 00:05:48,699 are doing is running the programs that 148 00:05:48,700 --> 00:05:50,799 the users have submitted and then 149 00:05:50,800 --> 00:05:52,239 they're all agreeing on the results of 150 00:05:52,240 --> 00:05:54,039 the program. And that's how everyone can 151 00:05:54,040 --> 00:05:56,139 rely on the programs to get 152 00:05:56,140 --> 00:05:58,119 run correctly. 153 00:05:58,120 --> 00:05:59,559 But that's very inefficient. 154 00:05:59,560 --> 00:06:01,149 And in fact, both Bitcoin in theory have 155 00:06:01,150 --> 00:06:03,969 the exact same scaling 156 00:06:03,970 --> 00:06:06,069 limitation or flaw, which 157 00:06:06,070 --> 00:06:07,839 is that there's sort of one 158 00:06:09,280 --> 00:06:10,659 bucket of service. 159 00:06:10,660 --> 00:06:12,010 One one. 160 00:06:14,890 --> 00:06:16,869 Yeah, there's in Bitcoin's case, there's 161 00:06:16,870 --> 00:06:19,449 one total amount of transactions, 162 00:06:19,450 --> 00:06:21,279 which is about three transactions per 163 00:06:21,280 --> 00:06:23,709 second, averaged over 164 00:06:23,710 --> 00:06:24,710 like a day. 165 00:06:26,340 --> 00:06:27,959 And in this case, there's one sort of 166 00:06:27,960 --> 00:06:30,329 number of programs that we can run on, 167 00:06:30,330 --> 00:06:32,309 on the theory of universal shared time 168 00:06:32,310 --> 00:06:34,509 sharing system, and it doesn't scale up. 169 00:06:34,510 --> 00:06:36,629 So if you get twice as many 170 00:06:36,630 --> 00:06:38,639 people who want to make transactions or 171 00:06:38,640 --> 00:06:41,099 who want to run programs, 172 00:06:41,100 --> 00:06:43,259 then either half of them 173 00:06:43,260 --> 00:06:44,189 just don't get to do it. 174 00:06:44,190 --> 00:06:46,459 Or in the case of Bitcoin, the 175 00:06:46,460 --> 00:06:48,419 the price goes up, the price doubles or 176 00:06:48,420 --> 00:06:50,549 whatever, until whoever 177 00:06:50,550 --> 00:06:51,809 can't afford it doesn't get to do it. 178 00:06:51,810 --> 00:06:53,459 And the other half who pay more, you get 179 00:06:53,460 --> 00:06:54,329 to do it. 180 00:06:54,330 --> 00:06:55,539 That's a fundamental problem. 181 00:06:55,540 --> 00:06:56,789 Then there's block chain, which I'm not 182 00:06:56,790 --> 00:06:58,289 going to talk much more about in this 183 00:06:58,290 --> 00:07:00,979 talk. It's the it's 184 00:07:00,980 --> 00:07:03,179 a few years ago, a bunch of 185 00:07:03,180 --> 00:07:04,440 bankers and 186 00:07:05,640 --> 00:07:07,889 industrial enterprise 187 00:07:07,890 --> 00:07:10,049 companies said this bitcoin 188 00:07:10,050 --> 00:07:11,729 stuff is weird and revolutionary and 189 00:07:11,730 --> 00:07:13,259 scary and creepy, and we're not going to 190 00:07:13,260 --> 00:07:14,339 touch it with a ten foot pole. 191 00:07:14,340 --> 00:07:16,649 But let's take this 192 00:07:16,650 --> 00:07:18,329 component out of it, which we call block 193 00:07:18,330 --> 00:07:21,269 chain and use that for our businesses. 194 00:07:21,270 --> 00:07:22,270 And 195 00:07:23,670 --> 00:07:25,259 I actually think that's a good idea for 196 00:07:25,260 --> 00:07:27,419 some things, but it'll probably be 197 00:07:27,420 --> 00:07:29,009 five years since 2014. 198 00:07:29,010 --> 00:07:30,539 So it'll probably be a couple more years 199 00:07:30,540 --> 00:07:32,519 before we find out if it's really a good 200 00:07:32,520 --> 00:07:33,779 idea. 201 00:07:33,780 --> 00:07:35,309 And in the meantime, I'm really amused 202 00:07:35,310 --> 00:07:37,469 that in 2017, a lot of those same 203 00:07:37,470 --> 00:07:39,899 banks and enterprises 204 00:07:39,900 --> 00:07:41,909 have decided that Bitcoin is cool after 205 00:07:41,910 --> 00:07:43,409 all. And if you're in this cool after 206 00:07:43,410 --> 00:07:44,459 all, and they're actually going to use 207 00:07:44,460 --> 00:07:45,460 that. 208 00:07:46,530 --> 00:07:47,769 So forget about blocking because they're 209 00:07:47,770 --> 00:07:49,139 way too much else to talk about in this 210 00:07:49,140 --> 00:07:50,369 talk. 211 00:07:50,370 --> 00:07:52,429 Hey, cryptography is super awesome. 212 00:07:52,430 --> 00:07:54,779 And that's one of my favorite things 213 00:07:54,780 --> 00:07:56,909 in the 1970s, David, from 214 00:07:56,910 --> 00:07:59,039 the man that I mentioned and Whit 215 00:07:59,040 --> 00:08:00,779 Diffie and. 216 00:08:00,780 --> 00:08:02,579 You know, her vest and schmear and all 217 00:08:02,580 --> 00:08:03,930 these other people. 218 00:08:06,750 --> 00:08:08,849 Were they acted 219 00:08:08,850 --> 00:08:11,469 as activists, they courageously 220 00:08:11,470 --> 00:08:13,600 arrested control of the 221 00:08:14,730 --> 00:08:16,829 the nascent science of cryptography 222 00:08:16,830 --> 00:08:19,349 and made it part of our communal 223 00:08:19,350 --> 00:08:21,629 public knowledge and our 224 00:08:21,630 --> 00:08:23,729 our heritage instead of being military 225 00:08:23,730 --> 00:08:25,019 secrets and. 226 00:08:26,590 --> 00:08:29,049 Almost all of the cryptography that 227 00:08:29,050 --> 00:08:30,759 underlies the whole Internet and every 228 00:08:30,760 --> 00:08:32,408 computer in every database and every cell 229 00:08:32,409 --> 00:08:34,959 phone and everything today grew 230 00:08:34,960 --> 00:08:37,239 out of this this flourishing 231 00:08:37,240 --> 00:08:38,439 starting in the 70s. 232 00:08:38,440 --> 00:08:40,629 And a neat fact is 233 00:08:40,630 --> 00:08:42,819 that Bitcoin and a theory are 234 00:08:42,820 --> 00:08:44,919 built with only two of the 235 00:08:44,920 --> 00:08:46,989 concepts, two of the 236 00:08:46,990 --> 00:08:49,389 building blocks from cryptography, 237 00:08:49,390 --> 00:08:50,889 digital signatures and secure hash 238 00:08:50,890 --> 00:08:51,890 functions. 239 00:08:52,510 --> 00:08:54,369 So for one thing, it's really awesome 240 00:08:54,370 --> 00:08:56,559 that you can invent a whole new 241 00:08:56,560 --> 00:08:58,059 thing using just digital signatures and 242 00:08:58,060 --> 00:08:59,060 secure hash functions. 243 00:09:00,460 --> 00:09:01,839 And for another thing, it's a really good 244 00:09:01,840 --> 00:09:03,549 question as to what else you could invent 245 00:09:03,550 --> 00:09:05,080 if you start using some of the other 246 00:09:06,700 --> 00:09:08,889 primitives from cryptography like 247 00:09:08,890 --> 00:09:10,959 encryption and your knowledge proofs, 248 00:09:10,960 --> 00:09:13,419 which is part of this project 249 00:09:13,420 --> 00:09:15,249 to do that, to use encryption and zero 250 00:09:15,250 --> 00:09:17,960 knowledge proofs in in a cryptocurrency. 251 00:09:19,090 --> 00:09:20,799 OK, then there's this completely other 252 00:09:20,800 --> 00:09:22,689 different kind of technology that came 253 00:09:22,690 --> 00:09:24,819 out in 2015 called Lightning Network. 254 00:09:24,820 --> 00:09:26,919 And by the way, I'm talking 255 00:09:26,920 --> 00:09:27,999 fast because I want to have lots of 256 00:09:28,000 --> 00:09:29,000 questions. 257 00:09:34,840 --> 00:09:36,879 Lightning Network is a new idea that was 258 00:09:36,880 --> 00:09:38,979 just discovered in 2015, 259 00:09:38,980 --> 00:09:41,079 is an attempt to overcome this scaling 260 00:09:41,080 --> 00:09:42,340 limitation in Bitcoin. 261 00:09:43,720 --> 00:09:45,070 And the idea of it is 262 00:09:46,990 --> 00:09:49,239 if you have a ledger which can't 263 00:09:49,240 --> 00:09:51,279 scale, so as you have more and more 264 00:09:51,280 --> 00:09:52,899 people who want to make transactions, 265 00:09:52,900 --> 00:09:55,239 they exceed the 266 00:09:55,240 --> 00:09:56,619 capacity of that ledger to hold new 267 00:09:56,620 --> 00:09:58,059 transactions then. 268 00:09:59,170 --> 00:10:01,240 We'll use that ledger to record 269 00:10:02,410 --> 00:10:03,410 deposits, 270 00:10:05,380 --> 00:10:07,629 which can then be leveraged by this 271 00:10:07,630 --> 00:10:09,789 other off chain protocol called 272 00:10:09,790 --> 00:10:11,619 the Lightning Network, and that one can 273 00:10:11,620 --> 00:10:14,199 scale can do zillions of transactions 274 00:10:14,200 --> 00:10:15,969 at very small amounts, micro 275 00:10:15,970 --> 00:10:16,970 transactions. 276 00:10:17,950 --> 00:10:19,150 And the reason that one works. 277 00:10:20,660 --> 00:10:22,369 Dissent in a decentralized way without 278 00:10:22,370 --> 00:10:24,559 relying on any third party is 279 00:10:24,560 --> 00:10:27,619 that if there's conflict 280 00:10:27,620 --> 00:10:29,569 or disagreement over who got the micro 281 00:10:29,570 --> 00:10:31,579 payments, that can be resolved by 282 00:10:32,630 --> 00:10:35,269 reference to the central unscalable 283 00:10:35,270 --> 00:10:36,770 shared ledger. 284 00:10:45,200 --> 00:10:46,200 OK, so 285 00:10:47,360 --> 00:10:50,269 when we started coming up with the stuff 286 00:10:50,270 --> 00:10:52,219 we don't don't start reading, if I put up 287 00:10:52,220 --> 00:10:53,449 on your word, you'll start reading and 288 00:10:53,450 --> 00:10:55,459 stop listening to me when we're when 289 00:10:55,460 --> 00:10:56,689 people were coming up with these kind of 290 00:10:56,690 --> 00:10:58,249 ideas like Setto Shoes, original paper 291 00:10:58,250 --> 00:10:59,929 said this is a way to make decentralized 292 00:10:59,930 --> 00:11:00,799 digital cash. 293 00:11:00,800 --> 00:11:03,139 So he had a clear idea about 294 00:11:03,140 --> 00:11:05,449 what the purpose was. 295 00:11:05,450 --> 00:11:07,399 And people who invented these other 296 00:11:07,400 --> 00:11:09,559 technologies may have had imaginations 297 00:11:09,560 --> 00:11:11,719 about what people would use it for. 298 00:11:11,720 --> 00:11:13,849 But what do you what have people 299 00:11:13,850 --> 00:11:15,589 actually used it for so far? 300 00:11:15,590 --> 00:11:17,809 I think it's really useful to learn from 301 00:11:17,810 --> 00:11:19,699 real world experience and what people are 302 00:11:19,700 --> 00:11:20,869 using it for. 303 00:11:20,870 --> 00:11:22,729 As of today, maybe surprising, 304 00:11:24,380 --> 00:11:26,569 the most important by monitoring, 305 00:11:26,570 --> 00:11:28,639 if you measure importance by money, the 306 00:11:28,640 --> 00:11:30,769 most important use of all 307 00:11:30,770 --> 00:11:32,120 of these is 308 00:11:33,290 --> 00:11:34,290 gambling 309 00:11:35,660 --> 00:11:38,119 or or maybe it's investment 310 00:11:38,120 --> 00:11:39,529 for the long term, or maybe it's 311 00:11:41,120 --> 00:11:42,120 funding 312 00:11:43,220 --> 00:11:45,709 funding new startups by using this 313 00:11:45,710 --> 00:11:47,989 these coins as a funding mechanism. 314 00:11:47,990 --> 00:11:50,059 So the top line here is people 315 00:11:50,060 --> 00:11:51,229 who buy and sell. 316 00:11:52,580 --> 00:11:54,349 Coins, including Bitcoin and a few 317 00:11:54,350 --> 00:11:56,449 humanzee cash on 318 00:11:56,450 --> 00:11:58,639 exchanges, and it's 319 00:11:58,640 --> 00:12:01,429 pretty mind boggling since 320 00:12:01,430 --> 00:12:03,379 this just really blew up during twenty 321 00:12:03,380 --> 00:12:05,299 seventeen, but right now, as of the end 322 00:12:05,300 --> 00:12:07,369 of twenty seventeen, there's half 323 00:12:07,370 --> 00:12:09,739 a trillion dollars worth of 324 00:12:09,740 --> 00:12:12,829 money, which is a pretty unreliable, 325 00:12:12,830 --> 00:12:15,619 sort of potentially illusory measure. 326 00:12:15,620 --> 00:12:17,899 It's like take take 327 00:12:17,900 --> 00:12:19,699 all the coins of all kinds, all the 328 00:12:19,700 --> 00:12:21,379 bitcoins and all the ether and all those 329 00:12:21,380 --> 00:12:23,569 cash and whatever, and then multiply 330 00:12:23,570 --> 00:12:26,149 by how much someone paid today 331 00:12:26,150 --> 00:12:28,339 for one of those coins and add all those 332 00:12:28,340 --> 00:12:29,389 numbers up and it comes up to five 333 00:12:29,390 --> 00:12:30,589 hundred billion dollars. 334 00:12:30,590 --> 00:12:32,749 But I don't know 335 00:12:32,750 --> 00:12:34,189 how meaningful that number is, but it's 336 00:12:34,190 --> 00:12:36,139 absolutely clear that a large number of 337 00:12:36,140 --> 00:12:38,419 people around the world who are 338 00:12:38,420 --> 00:12:41,029 spending or risking or investing 339 00:12:41,030 --> 00:12:42,980 a whole lot of money and just. 340 00:12:44,410 --> 00:12:46,479 Hoping that the price will go 341 00:12:46,480 --> 00:12:47,480 up 342 00:12:48,580 --> 00:12:50,199 and I think in my opinion, that's both 343 00:12:50,200 --> 00:12:52,179 good and bad, or it could be both good 344 00:12:52,180 --> 00:12:53,559 and bad, but you'll have to form your own 345 00:12:53,560 --> 00:12:55,899 opinion, most definitely big. 346 00:12:55,900 --> 00:12:57,159 And then the other big thing that 347 00:12:57,160 --> 00:12:59,289 happened in twenty seventeen was people 348 00:12:59,290 --> 00:13:01,179 discovered they could use these coins as 349 00:13:01,180 --> 00:13:03,069 a way to fund their new project or their 350 00:13:03,070 --> 00:13:04,070 new startup. 351 00:13:05,470 --> 00:13:07,539 So they invent a 352 00:13:07,540 --> 00:13:09,789 business or a technology 353 00:13:09,790 --> 00:13:10,790 or both. 354 00:13:12,610 --> 00:13:14,649 And then they invent a new coin to go 355 00:13:14,650 --> 00:13:16,419 with it, and then they sell those coin, 356 00:13:16,420 --> 00:13:17,919 the newly generated coins that they just 357 00:13:17,920 --> 00:13:19,599 invented to buyers, 358 00:13:20,710 --> 00:13:22,779 and five billion dollars worth of such 359 00:13:22,780 --> 00:13:24,849 coins have been sold in twenty 360 00:13:24,850 --> 00:13:26,409 seventeen. 361 00:13:26,410 --> 00:13:28,749 Innumerable new projects, 362 00:13:28,750 --> 00:13:31,209 like hundreds, I guess, of new projects. 363 00:13:31,210 --> 00:13:32,409 Some of the biggest ones have raised 364 00:13:32,410 --> 00:13:34,989 hundreds of millions of dollars, each 365 00:13:34,990 --> 00:13:36,339 like for one particular project. 366 00:13:39,350 --> 00:13:40,429 Well, it's really interesting, and that 367 00:13:40,430 --> 00:13:41,839 could be both good and bad in different 368 00:13:41,840 --> 00:13:43,219 ways, I definitely think it's good and 369 00:13:43,220 --> 00:13:44,809 bad. It's both good and bad in different 370 00:13:44,810 --> 00:13:45,830 ways, in my opinion. 371 00:13:51,110 --> 00:13:53,209 The thing that I like best about it is 372 00:13:53,210 --> 00:13:55,189 that there's a combination of a 373 00:13:55,190 --> 00:13:57,109 scientific breakthrough because Bitcoin 374 00:13:57,110 --> 00:14:00,009 turned out to work like 375 00:14:00,010 --> 00:14:01,009 remember I said this is a great 376 00:14:01,010 --> 00:14:02,869 breakthrough. It wasn't just for me, but 377 00:14:02,870 --> 00:14:05,419 for all of computer scientists 378 00:14:05,420 --> 00:14:07,219 like Bitcoin basically did a thing that 379 00:14:07,220 --> 00:14:09,589 computer scientists had been confidently 380 00:14:09,590 --> 00:14:11,599 telling one another in rigorous proofs 381 00:14:11,600 --> 00:14:12,600 was impossible. 382 00:14:14,360 --> 00:14:16,969 And so that broke open this whole field 383 00:14:16,970 --> 00:14:19,399 of things that were previously 384 00:14:19,400 --> 00:14:20,479 believed to be impossible. 385 00:14:20,480 --> 00:14:22,669 And now with Bitcoin and Ethereum, 386 00:14:22,670 --> 00:14:24,769 we know that a lot of those 387 00:14:24,770 --> 00:14:26,719 things are actually possible. 388 00:14:26,720 --> 00:14:29,479 So there's this sudden 389 00:14:29,480 --> 00:14:32,299 frontier of new technologies 390 00:14:32,300 --> 00:14:33,499 that were previously thought to be 391 00:14:33,500 --> 00:14:35,569 impossible, that are are 392 00:14:35,570 --> 00:14:37,189 now suspected to be possible. 393 00:14:37,190 --> 00:14:39,019 And it's combined with five billion 394 00:14:39,020 --> 00:14:41,359 dollars worth of 395 00:14:41,360 --> 00:14:43,489 money now in the hands of 396 00:14:43,490 --> 00:14:45,889 either inventors 397 00:14:45,890 --> 00:14:48,289 or scammers or 398 00:14:48,290 --> 00:14:49,290 whatever. 399 00:14:49,910 --> 00:14:52,009 But at least 400 00:14:52,010 --> 00:14:54,259 at least some of that five billion 401 00:14:54,260 --> 00:14:56,269 is going to be funding people to. 402 00:14:57,580 --> 00:14:59,199 Try to implement and deploy these new 403 00:14:59,200 --> 00:15:00,999 possibilities. 404 00:15:01,000 --> 00:15:03,079 Of course, by my by my rule of thumb, 405 00:15:03,080 --> 00:15:05,569 it might take five years before 406 00:15:05,570 --> 00:15:07,159 we find out for sure whether any of them 407 00:15:07,160 --> 00:15:08,449 actually all we know which of the new 408 00:15:08,450 --> 00:15:10,669 possibilities really work. 409 00:15:10,670 --> 00:15:12,379 I'm sure some of them will, but we 410 00:15:12,380 --> 00:15:13,789 probably won't know for a while. 411 00:15:13,790 --> 00:15:15,619 And I also wonder what will happen to the 412 00:15:15,620 --> 00:15:17,239 the market in the money in the interim of 413 00:15:17,240 --> 00:15:18,619 five years, because that's a long time 414 00:15:18,620 --> 00:15:20,600 for those buyers who bought those coins. 415 00:15:22,160 --> 00:15:24,079 Bitcoin was actually used at the 416 00:15:24,080 --> 00:15:26,329 beginning of twenty seventeen for retail 417 00:15:26,330 --> 00:15:27,919 purchases, but not for very much. 418 00:15:27,920 --> 00:15:29,839 There was about a billion dollars in 419 00:15:29,840 --> 00:15:32,239 twenty seventeen of people buying stuff 420 00:15:32,240 --> 00:15:34,939 with Bitcoin on the Internet, mainly 421 00:15:34,940 --> 00:15:36,679 buying games from steam I think, but. 422 00:15:38,810 --> 00:15:40,909 But OK, that was already not big, 423 00:15:40,910 --> 00:15:42,559 but it was something and it was growing, 424 00:15:42,560 --> 00:15:44,779 so that was good in my opinion, 425 00:15:44,780 --> 00:15:46,579 but now it's dead because of the 426 00:15:46,580 --> 00:15:48,109 aforementioned scaling problem. 427 00:15:48,110 --> 00:15:49,610 Now, the 428 00:15:51,080 --> 00:15:53,059 cost of sending a Bitcoin transaction has 429 00:15:53,060 --> 00:15:55,039 skyrocketed from something on the order 430 00:15:55,040 --> 00:15:56,839 of 10 cents or a dollar, maybe at the 431 00:15:56,840 --> 00:15:58,699 beginning of twenty seventeen. 432 00:15:58,700 --> 00:16:00,289 And now it's skyrocketed to at least ten 433 00:16:00,290 --> 00:16:02,449 dollars on a bad day. 434 00:16:02,450 --> 00:16:04,009 It might cost, I don't know, maybe forty 435 00:16:04,010 --> 00:16:05,959 dollars or something to make a Bitcoin 436 00:16:05,960 --> 00:16:07,279 transaction. 437 00:16:07,280 --> 00:16:08,779 And it doesn't matter how much bitcoin 438 00:16:08,780 --> 00:16:10,039 you're transferring. 439 00:16:10,040 --> 00:16:11,539 So if you're transferring a million 440 00:16:11,540 --> 00:16:12,949 dollars worth of Bitcoin or one hundred 441 00:16:12,950 --> 00:16:14,059 dollars worth of Bitcoin, it's still 442 00:16:14,060 --> 00:16:16,129 going to cost you ten or twenty 443 00:16:16,130 --> 00:16:18,289 or forty dollars for 444 00:16:18,290 --> 00:16:19,909 that transaction. 445 00:16:19,910 --> 00:16:22,819 Will, that totally kills the use case of 446 00:16:22,820 --> 00:16:24,739 buying steam games over Bitcoin. 447 00:16:24,740 --> 00:16:25,740 So 448 00:16:26,810 --> 00:16:28,369 so that billion dollars a year may fall 449 00:16:28,370 --> 00:16:30,859 to zero next year, for all I know, unless 450 00:16:30,860 --> 00:16:33,139 someone very rapidly solves the scaling 451 00:16:33,140 --> 00:16:34,140 problem. 452 00:16:35,660 --> 00:16:37,339 OK, the next thing is crypto kitties. 453 00:16:37,340 --> 00:16:39,949 Behold, this is this was surprising 454 00:16:39,950 --> 00:16:41,059 and hilarious to me. 455 00:16:41,060 --> 00:16:42,559 It turns out that if you give people a 456 00:16:42,560 --> 00:16:44,959 world computer that can compute any 457 00:16:44,960 --> 00:16:47,239 computation, they 458 00:16:47,240 --> 00:16:49,309 screw around with it for like two years, 459 00:16:49,310 --> 00:16:50,869 trying to figure out how it works. 460 00:16:50,870 --> 00:16:53,179 They sell five billion dollars worth 461 00:16:53,180 --> 00:16:55,309 of investments in their new startups 462 00:16:55,310 --> 00:16:57,529 and then they invent a game with 463 00:16:57,530 --> 00:16:59,599 collectible cute 464 00:16:59,600 --> 00:17:01,699 kittens kitties that you can 465 00:17:01,700 --> 00:17:04,368 collect and own and buy and sell. 466 00:17:04,369 --> 00:17:06,499 And each kitty is unique. 467 00:17:06,500 --> 00:17:08,179 And then you can breed two kitties 468 00:17:08,180 --> 00:17:09,618 together to make kittens. 469 00:17:09,619 --> 00:17:12,049 And the world computer is crunching away, 470 00:17:14,630 --> 00:17:16,759 making sure that your kittens are the 471 00:17:16,760 --> 00:17:19,159 real correct offspring 472 00:17:19,160 --> 00:17:20,629 of the parent kittens so that nobody can 473 00:17:20,630 --> 00:17:21,769 counterfeit kittens. 474 00:17:22,970 --> 00:17:24,799 And so far and this launched one month 475 00:17:24,800 --> 00:17:26,899 ago like three weeks or 476 00:17:26,900 --> 00:17:29,059 something ago, and so far, apparently 477 00:17:29,060 --> 00:17:31,339 about twenty million dollars worth of 478 00:17:31,340 --> 00:17:34,579 cute kittens have been traded around. 479 00:17:34,580 --> 00:17:36,169 And I think this is a harbinger of things 480 00:17:36,170 --> 00:17:37,969 to come. I think next year we will see 481 00:17:37,970 --> 00:17:40,159 more and more games on 482 00:17:40,160 --> 00:17:41,160 these networks, 483 00:17:42,890 --> 00:17:45,049 except the scaling problem 484 00:17:45,050 --> 00:17:47,149 is also going to hit etherial next 485 00:17:47,150 --> 00:17:49,189 year like a hit Bitcoin this year 486 00:17:49,190 --> 00:17:51,469 momentarily. Already the Ethereum 487 00:17:51,470 --> 00:17:54,169 pipes were clogged with crypto kitties 488 00:17:54,170 --> 00:17:55,789 and so people couldn't get their 489 00:17:55,790 --> 00:17:57,949 important Icko funding through 490 00:17:57,950 --> 00:17:58,939 and they were complaining. 491 00:17:58,940 --> 00:18:00,199 And that's going to happen a lot more 492 00:18:00,200 --> 00:18:01,200 next year. 493 00:18:02,450 --> 00:18:03,769 And then the last thing, stock markets, 494 00:18:03,770 --> 00:18:06,379 this was what Bitcoin was supposedly 495 00:18:06,380 --> 00:18:07,380 for originally. 496 00:18:08,710 --> 00:18:11,199 With the Silk Road and all that, and 497 00:18:11,200 --> 00:18:13,269 it may have been important to 498 00:18:13,270 --> 00:18:16,119 Bitcoin at some point in like 2013 499 00:18:16,120 --> 00:18:17,120 or whatever. 500 00:18:20,530 --> 00:18:21,999 But nowadays, it doesn't seem that 501 00:18:22,000 --> 00:18:24,280 important to me, actually, because 502 00:18:26,110 --> 00:18:27,909 one hundred million dollars a year is 503 00:18:27,910 --> 00:18:30,339 just my estimate, there's it's hard to 504 00:18:30,340 --> 00:18:32,439 tell different like researchers 505 00:18:32,440 --> 00:18:34,269 scrape dark market websites and try to 506 00:18:34,270 --> 00:18:35,559 sum up what they see. 507 00:18:35,560 --> 00:18:37,059 But of course, not everything is shown on 508 00:18:37,060 --> 00:18:38,799 the is visible that way. 509 00:18:38,800 --> 00:18:41,049 And and then law enforcement busts 510 00:18:41,050 --> 00:18:42,399 these markets. And then you find out 511 00:18:42,400 --> 00:18:44,679 from, like court cases what 512 00:18:44,680 --> 00:18:46,239 they learned. So this is a very rough 513 00:18:46,240 --> 00:18:47,980 estimate, but basically. 514 00:18:51,020 --> 00:18:52,909 Seven hundred billion dollars a year is a 515 00:18:52,910 --> 00:18:54,799 very, very rough estimate for total 516 00:18:54,800 --> 00:18:56,779 illegal drugs around the whole world, 517 00:18:56,780 --> 00:18:58,849 that's one about one percent of the 518 00:18:58,850 --> 00:19:01,129 global economy is 519 00:19:01,130 --> 00:19:02,299 maybe illegal drugs. 520 00:19:02,300 --> 00:19:03,739 But that's also extremely rough because 521 00:19:03,740 --> 00:19:05,269 no one knows how to count that either. 522 00:19:05,270 --> 00:19:07,339 But online drug markets are 523 00:19:07,340 --> 00:19:08,719 a teeny tiny fraction of that, and 524 00:19:08,720 --> 00:19:10,759 they're also a teeny tiny fraction of 525 00:19:10,760 --> 00:19:13,279 speculation and school funding. 526 00:19:13,280 --> 00:19:14,749 And I wouldn't be surprised if crypto 527 00:19:14,750 --> 00:19:16,579 kiddies are more important than 528 00:19:16,580 --> 00:19:18,589 underground drugs on on the Internet next 529 00:19:18,590 --> 00:19:19,590 year. 530 00:19:21,490 --> 00:19:22,449 What's next here? 531 00:19:22,450 --> 00:19:24,099 Oh, yeah, so. 532 00:19:27,450 --> 00:19:29,699 So every time I talk to people from my 533 00:19:29,700 --> 00:19:31,200 industry, they blow my mind 534 00:19:33,000 --> 00:19:35,159 by espousing this new 535 00:19:35,160 --> 00:19:36,629 technological invention, they've thought 536 00:19:36,630 --> 00:19:38,819 of like 537 00:19:38,820 --> 00:19:40,199 prediction markets, they're going to tell 538 00:19:40,200 --> 00:19:42,539 the future and like replacing 539 00:19:42,540 --> 00:19:45,089 Uber with Anthurium program and 540 00:19:45,090 --> 00:19:47,039 all these things. And I'm not even going 541 00:19:47,040 --> 00:19:48,059 to try to summarize. 542 00:19:48,060 --> 00:19:49,949 I can't even I don't even have the time 543 00:19:49,950 --> 00:19:51,659 and brainpower to tell how many of these 544 00:19:51,660 --> 00:19:53,669 ideas are even plausible. 545 00:19:53,670 --> 00:19:55,229 I'm going to wait five years and see how 546 00:19:55,230 --> 00:19:57,269 many of them have actually worked. 547 00:19:57,270 --> 00:19:59,249 But I do know very much about what some 548 00:19:59,250 --> 00:20:00,749 of the problems are. The first one I keep 549 00:20:00,750 --> 00:20:03,089 telling in this talk is scaling, scaling, 550 00:20:03,090 --> 00:20:04,090 scaling. 551 00:20:04,770 --> 00:20:06,899 It's it's 552 00:20:06,900 --> 00:20:08,009 completely changed. 553 00:20:09,520 --> 00:20:11,679 What people can and do use Bitcoin 554 00:20:11,680 --> 00:20:14,349 for during 2017, 555 00:20:14,350 --> 00:20:15,939 and I guess it's going to completely 556 00:20:15,940 --> 00:20:18,189 change what people can use Ethereum 557 00:20:18,190 --> 00:20:19,269 for in twenty eighteen. 558 00:20:19,270 --> 00:20:21,339 So I guess maybe no one will be able to 559 00:20:21,340 --> 00:20:23,529 afford to trade their crypto 560 00:20:23,530 --> 00:20:24,939 kiddies at a certain point, although I 561 00:20:24,940 --> 00:20:27,039 guess you can prove that you 562 00:20:27,040 --> 00:20:28,629 still have it. So that's interesting. 563 00:20:28,630 --> 00:20:30,099 Like if you trade crypto kitties then 564 00:20:30,100 --> 00:20:32,289 once etherial fills up and nobody 565 00:20:32,290 --> 00:20:34,419 can afford to 566 00:20:34,420 --> 00:20:36,579 make it a serious transaction for 567 00:20:36,580 --> 00:20:38,649 such a low value thing as trading crypto 568 00:20:38,650 --> 00:20:40,269 kitties, then I guess you just keep yours 569 00:20:40,270 --> 00:20:40,689 after that. 570 00:20:40,690 --> 00:20:42,249 That's cool. 571 00:20:42,250 --> 00:20:43,389 I just thought of that. But the other 572 00:20:43,390 --> 00:20:45,999 thing is safety 573 00:20:46,000 --> 00:20:47,949 is a huge ongoing problem. 574 00:20:49,270 --> 00:20:51,009 The total amount of Bitcoin that's 575 00:20:51,010 --> 00:20:52,989 probably been lost or stolen. 576 00:20:52,990 --> 00:20:54,609 Here's another number that nobody really 577 00:20:54,610 --> 00:20:55,659 knows how to measure. 578 00:20:55,660 --> 00:20:56,559 But this is an estimate. 579 00:20:56,560 --> 00:20:58,179 The total amount of Bitcoin that's 580 00:20:58,180 --> 00:21:00,249 probably been lost or stolen ever 581 00:21:00,250 --> 00:21:02,469 since it was invented is about 10 billion 582 00:21:02,470 --> 00:21:05,079 dollars worth of Bitcoin today. 583 00:21:05,080 --> 00:21:07,389 And the total amount of ether 584 00:21:07,390 --> 00:21:09,099 that's been lost or stolen in the last 585 00:21:09,100 --> 00:21:11,199 two years or however many years that it's 586 00:21:11,200 --> 00:21:13,419 been running is one billion dollars worth 587 00:21:13,420 --> 00:21:15,319 of either lost or stolen. 588 00:21:15,320 --> 00:21:17,829 And a lot of that it's almost even worse 589 00:21:17,830 --> 00:21:20,469 with ether's and with Bitcoin because 590 00:21:20,470 --> 00:21:22,869 you can lose or get 591 00:21:22,870 --> 00:21:25,059 or make vulnerable your money by a coding 592 00:21:25,060 --> 00:21:27,159 error in script, the script 593 00:21:27,160 --> 00:21:28,729 you're writing to running through him. 594 00:21:28,730 --> 00:21:30,399 So I think this is a pressing issue 595 00:21:30,400 --> 00:21:32,379 that's likely to get even worse next 596 00:21:32,380 --> 00:21:34,869 year. And a lot of those 597 00:21:34,870 --> 00:21:37,089 numerous projects that are trying to. 598 00:21:38,520 --> 00:21:40,139 Improve on the state of the art innovate 599 00:21:40,140 --> 00:21:42,449 technologically are aiming to improve 600 00:21:42,450 --> 00:21:43,530 on one of these two things. 601 00:21:46,100 --> 00:21:47,329 Yeah, like I said earlier, I think we'll 602 00:21:47,330 --> 00:21:49,459 see more gaming if we can 603 00:21:49,460 --> 00:21:50,460 afford it, maybe 604 00:21:51,680 --> 00:21:53,419 people will switch to other coins that 605 00:21:53,420 --> 00:21:55,759 have less loaded networks or somebody 606 00:21:55,760 --> 00:21:57,109 will make a breakthrough in scaling. 607 00:21:58,630 --> 00:22:00,909 Here's a snapshot of the 608 00:22:00,910 --> 00:22:02,679 marketplace for trading, this is the 609 00:22:02,680 --> 00:22:04,899 thing that all those people 610 00:22:04,900 --> 00:22:06,909 who are trading five hundred billion 611 00:22:06,910 --> 00:22:09,099 dollars worth of 612 00:22:09,100 --> 00:22:12,219 trading are looking at all day long. 613 00:22:12,220 --> 00:22:13,839 And there's a whole bunch of different 614 00:22:13,840 --> 00:22:15,379 coins on here. 615 00:22:15,380 --> 00:22:17,469 All of these well, there's 616 00:22:17,470 --> 00:22:19,869 like this is just the first 14 617 00:22:19,870 --> 00:22:22,929 lines of like a 900 line 618 00:22:22,930 --> 00:22:25,539 website because there are literally 619 00:22:25,540 --> 00:22:27,879 hundreds and hundreds of coins 620 00:22:27,880 --> 00:22:28,880 of various kinds. 621 00:22:30,600 --> 00:22:32,819 That one with a red circle slash 622 00:22:32,820 --> 00:22:34,349 in the middle there, that's not even a 623 00:22:34,350 --> 00:22:36,959 coin, it's actually a Ponzi scheme. 624 00:22:36,960 --> 00:22:39,179 And like I don't just mean it's a bad 625 00:22:39,180 --> 00:22:40,469 investment. I mean, it's literally a 626 00:22:40,470 --> 00:22:42,029 Ponzi scheme where they actually take 627 00:22:42,030 --> 00:22:43,259 your money and put it in your pocket and 628 00:22:43,260 --> 00:22:44,489 lie to you about what you got, 629 00:22:45,810 --> 00:22:47,969 put it in their pocket. I mean, but 630 00:22:47,970 --> 00:22:50,219 anyway but I think basically 631 00:22:50,220 --> 00:22:52,109 all the rest of them are more or less 632 00:22:52,110 --> 00:22:54,569 legitimate technology 633 00:22:54,570 --> 00:22:56,969 projects with interesting users 634 00:22:56,970 --> 00:22:58,919 and enthusiastic communities. 635 00:22:58,920 --> 00:23:01,199 And these are my five 636 00:23:01,200 --> 00:23:02,399 these are the five that I'm most 637 00:23:02,400 --> 00:23:04,499 interested in. And I wanted to tell 638 00:23:04,500 --> 00:23:05,500 you something about 639 00:23:06,750 --> 00:23:08,099 what they have in common, is that they 640 00:23:08,100 --> 00:23:10,619 have really active 641 00:23:10,620 --> 00:23:12,989 and sort of impassioned user 642 00:23:12,990 --> 00:23:14,939 communities and developers that are 643 00:23:14,940 --> 00:23:15,940 improving them. 644 00:23:20,520 --> 00:23:22,319 Bitcoin, I guess you know about, and 645 00:23:23,760 --> 00:23:25,139 one thing that I love about it is that 646 00:23:25,140 --> 00:23:26,129 it's super stable. 647 00:23:26,130 --> 00:23:28,739 They have now as of 2017, 648 00:23:28,740 --> 00:23:31,049 they've conclusively demonstrated that 649 00:23:31,050 --> 00:23:32,050 they won't change. 650 00:23:33,360 --> 00:23:35,609 The Bitcoin protocol will not 651 00:23:35,610 --> 00:23:37,529 get changed in a backward, incompatible 652 00:23:37,530 --> 00:23:39,839 way. And so it's extremely stable 653 00:23:39,840 --> 00:23:41,189 and predictable now. 654 00:23:41,190 --> 00:23:43,440 And it has this very 655 00:23:44,460 --> 00:23:47,039 broad, widespread and very 656 00:23:47,040 --> 00:23:48,569 committed, impassioned 657 00:23:49,680 --> 00:23:51,839 users who it's basically like a cult. 658 00:23:54,420 --> 00:23:55,559 And that's cool. 659 00:23:55,560 --> 00:23:57,689 That's awesome, and the 660 00:23:57,690 --> 00:23:58,829 other ones actually have really 661 00:23:58,830 --> 00:24:00,989 impassioned user communities 662 00:24:00,990 --> 00:24:03,119 as well, and they tend to be 663 00:24:03,120 --> 00:24:04,769 separate communities because, you know, 664 00:24:04,770 --> 00:24:06,719 people tend to clump together. 665 00:24:06,720 --> 00:24:08,879 And between some of them, there is 666 00:24:08,880 --> 00:24:11,819 like tribal enmity. 667 00:24:11,820 --> 00:24:14,069 I try to I try to 668 00:24:14,070 --> 00:24:15,959 set the example in the Sikh community 669 00:24:15,960 --> 00:24:18,179 that we have a much more porous community 670 00:24:18,180 --> 00:24:19,859 boundary and we're all we're all members 671 00:24:19,860 --> 00:24:21,419 of the other communities as well, because 672 00:24:21,420 --> 00:24:22,619 we love them, too. And we're all just 673 00:24:22,620 --> 00:24:24,299 friends here. But not everyone is like 674 00:24:24,300 --> 00:24:25,300 that. 675 00:24:28,650 --> 00:24:30,929 The 300 billion is the is again, 676 00:24:30,930 --> 00:24:33,359 that's that somewhat mysterious number 677 00:24:33,360 --> 00:24:35,699 about the total numbers of bitcoins 678 00:24:35,700 --> 00:24:37,649 that exist multiplied by the current 679 00:24:37,650 --> 00:24:39,749 price of a Bitcoin, which is some 680 00:24:39,750 --> 00:24:41,249 kind of estimate of how important it is 681 00:24:41,250 --> 00:24:41,969 to somebody. 682 00:24:41,970 --> 00:24:42,970 Rich people, I guess. 683 00:24:46,620 --> 00:24:48,329 Ethereum is the next biggest from that 684 00:24:48,330 --> 00:24:50,489 same measure, and Ethereum 685 00:24:50,490 --> 00:24:51,929 is super important because it's got the 686 00:24:51,930 --> 00:24:54,449 developer community like 687 00:24:54,450 --> 00:24:56,699 the network effect of developers, 688 00:24:56,700 --> 00:24:58,499 because developers who are inventing new 689 00:24:58,500 --> 00:25:00,839 stuff, they're making a new game 690 00:25:00,840 --> 00:25:03,059 or they want to make a new app that 691 00:25:03,060 --> 00:25:05,159 they're going to sell 692 00:25:05,160 --> 00:25:07,409 access to or whatever, or they're just 693 00:25:07,410 --> 00:25:09,569 hacking in their bedroom and they 694 00:25:09,570 --> 00:25:11,549 want to see what they can do and write 695 00:25:11,550 --> 00:25:13,019 some scripts and share them with other 696 00:25:13,020 --> 00:25:15,089 people. Almost all of those people go to 697 00:25:15,090 --> 00:25:17,009 work on Ethereum because that's it's 698 00:25:17,010 --> 00:25:19,439 inviting and easier 699 00:25:19,440 --> 00:25:21,210 than working on the other systems. 700 00:25:23,860 --> 00:25:26,349 And that's really important history of 701 00:25:26,350 --> 00:25:28,449 of like the computer industry tells us 702 00:25:28,450 --> 00:25:30,369 that the network effect of developers is 703 00:25:30,370 --> 00:25:32,379 super important for the long term. 704 00:25:32,380 --> 00:25:33,609 What's going to be the most important 705 00:25:33,610 --> 00:25:35,109 technology and the most widely used? 706 00:25:35,110 --> 00:25:36,339 Because that's what you learn from like 707 00:25:36,340 --> 00:25:37,340 Microsoft and 708 00:25:38,410 --> 00:25:40,809 like the World Wide Web, for example. 709 00:25:40,810 --> 00:25:42,849 So that's something super important about 710 00:25:42,850 --> 00:25:44,049 a theory. 711 00:25:44,050 --> 00:25:46,329 OK, Bitcoin cash is an interesting case. 712 00:25:46,330 --> 00:25:47,829 It just now sprang out of nothing 713 00:25:49,390 --> 00:25:50,769 this year. 714 00:25:50,770 --> 00:25:53,439 And what it is, is it's a form 715 00:25:53,440 --> 00:25:55,089 of bitcoin. 716 00:25:55,090 --> 00:25:56,090 So they. 717 00:25:56,880 --> 00:25:58,739 They copied the Bitcoin code base, but 718 00:25:58,740 --> 00:26:00,539 they also copied the Bitcoin ledger, 719 00:26:00,540 --> 00:26:01,589 right? 720 00:26:01,590 --> 00:26:04,139 So everybody who at that moment 721 00:26:04,140 --> 00:26:06,269 owned Bitcoin, then the 722 00:26:06,270 --> 00:26:08,309 next moment they also owned they still 723 00:26:08,310 --> 00:26:09,989 own this Bitcoin, but they also own the 724 00:26:09,990 --> 00:26:11,669 same amount of Bitcoin cash because 725 00:26:11,670 --> 00:26:13,199 because they copied the ledger. 726 00:26:13,200 --> 00:26:14,400 Makes sense. And then 727 00:26:15,540 --> 00:26:17,609 and then they they made 728 00:26:17,610 --> 00:26:19,019 some tweaks. But the important thing 729 00:26:19,020 --> 00:26:21,269 about it is that they're the refuge 730 00:26:21,270 --> 00:26:23,519 from the Bitcoin civil war that's raged 731 00:26:23,520 --> 00:26:26,519 for the last three years between 732 00:26:26,520 --> 00:26:28,739 liberals who wanted to upgrade 733 00:26:28,740 --> 00:26:31,439 the protocol, the Bitcoin protocol, 734 00:26:31,440 --> 00:26:32,939 and conservatives who wanted to keep the 735 00:26:32,940 --> 00:26:34,859 Bitcoin protocol stable. 736 00:26:34,860 --> 00:26:37,589 And the conservatives won on Bitcoin. 737 00:26:37,590 --> 00:26:39,659 And all of the people who 738 00:26:39,660 --> 00:26:41,549 wanted to change the Bitcoin protocol 739 00:26:41,550 --> 00:26:43,709 have started migrating 740 00:26:43,710 --> 00:26:45,329 en masse altogether. 741 00:26:45,330 --> 00:26:47,340 And they're heading toward Bitcoin cash. 742 00:26:48,820 --> 00:26:50,379 I was sort of annoyed when this happened 743 00:26:50,380 --> 00:26:52,009 because they could have headed towards 744 00:26:52,010 --> 00:26:54,159 Vikash, which I was the 745 00:26:54,160 --> 00:26:56,589 you know, we launched it a year ago and 746 00:26:58,180 --> 00:27:00,369 Anzai cash is just as good as 747 00:27:00,370 --> 00:27:02,469 Bitcoin cash is at, which is 748 00:27:02,470 --> 00:27:04,569 not very good at scaling 749 00:27:04,570 --> 00:27:06,429 up and sending more transactions. 750 00:27:06,430 --> 00:27:08,079 Like you can send a few more transactions 751 00:27:08,080 --> 00:27:09,560 than Bitcoin can, but not a lot more. 752 00:27:11,080 --> 00:27:13,389 However, what we didn't have was giving 753 00:27:13,390 --> 00:27:15,429 every current Bitcoin holder some of our 754 00:27:15,430 --> 00:27:16,879 coin. 755 00:27:16,880 --> 00:27:19,039 See, so when Bitcoin Cash launched just 756 00:27:19,040 --> 00:27:21,679 a few months ago, they both had a 757 00:27:21,680 --> 00:27:24,679 social moment that 758 00:27:24,680 --> 00:27:26,689 the people who had lost in the in the 759 00:27:26,690 --> 00:27:28,909 social battle needed somewhere to go 760 00:27:28,910 --> 00:27:31,879 and to be together, and 761 00:27:31,880 --> 00:27:34,189 they gave everyone free coins 762 00:27:34,190 --> 00:27:35,299 if they would come there. 763 00:27:35,300 --> 00:27:36,799 So that was really interesting how 764 00:27:36,800 --> 00:27:38,269 successful that was. And now it's more 765 00:27:38,270 --> 00:27:40,189 important than money or cash and less 766 00:27:40,190 --> 00:27:41,989 important than Bitcoin and Ethereum. 767 00:27:41,990 --> 00:27:43,639 If you believe that number as a measure 768 00:27:43,640 --> 00:27:44,640 of importance. 769 00:27:46,790 --> 00:27:49,159 Monero is a really important 770 00:27:49,160 --> 00:27:51,979 coin. It's one of the older ones. 771 00:27:51,980 --> 00:27:53,279 And I love it because the maturer 772 00:27:53,280 --> 00:27:55,339 community really values privacy. 773 00:27:58,840 --> 00:28:01,149 And it's a very community oriented, 774 00:28:01,150 --> 00:28:04,149 like anticorporate, decentralized 775 00:28:04,150 --> 00:28:06,549 zeitgeist in their community 776 00:28:06,550 --> 00:28:07,550 and. 777 00:28:09,230 --> 00:28:11,509 I really don't like to talk shit 778 00:28:11,510 --> 00:28:14,569 about other coins because 779 00:28:14,570 --> 00:28:16,099 it doesn't do anybody any good, and I 780 00:28:16,100 --> 00:28:17,100 really want. 781 00:28:18,240 --> 00:28:19,409 More and better. 782 00:28:22,150 --> 00:28:24,609 More and better invention and sharing 783 00:28:24,610 --> 00:28:26,769 and creation and value creation, but I 784 00:28:26,770 --> 00:28:28,989 do have to say I have a problem 785 00:28:28,990 --> 00:28:31,269 with Monero, which is the technology 786 00:28:31,270 --> 00:28:33,429 is just not good enough for 787 00:28:33,430 --> 00:28:34,719 security. 788 00:28:34,720 --> 00:28:36,999 And I can't go into 789 00:28:37,000 --> 00:28:38,710 the details right now because. 790 00:28:39,940 --> 00:28:42,129 It's complicated and I 791 00:28:42,130 --> 00:28:43,130 don't have slides, 792 00:28:44,290 --> 00:28:46,509 but basically Manara 793 00:28:46,510 --> 00:28:48,729 was invented before certain 794 00:28:48,730 --> 00:28:50,169 breakthroughs in cryptography that we 795 00:28:50,170 --> 00:28:53,829 were able to use cash, cash and so 796 00:28:53,830 --> 00:28:56,109 in cash we can use we can leverage 797 00:28:56,110 --> 00:28:57,429 encryption. 798 00:28:57,430 --> 00:28:59,829 We can make it so that in order 799 00:28:59,830 --> 00:29:02,199 for an attacker to extract private 800 00:29:02,200 --> 00:29:04,509 information about the users, the attacker 801 00:29:04,510 --> 00:29:06,999 has to literally break encryption. 802 00:29:07,000 --> 00:29:08,009 Like crack it. 803 00:29:08,010 --> 00:29:09,010 Yes. Or 804 00:29:10,610 --> 00:29:11,950 the core of cryptography 805 00:29:13,210 --> 00:29:14,680 has to do something which would 806 00:29:16,150 --> 00:29:17,979 also enable them to destroy the whole 807 00:29:17,980 --> 00:29:19,089 Internet and all the computers in the 808 00:29:19,090 --> 00:29:20,889 world or take over all the computers in 809 00:29:20,890 --> 00:29:23,619 the world. And encash isn't 810 00:29:23,620 --> 00:29:26,020 quite there like we've we've deployed. 811 00:29:27,190 --> 00:29:29,079 Encryption in cash, 812 00:29:30,100 --> 00:29:32,409 which is a victory, and I'm very proud 813 00:29:32,410 --> 00:29:33,519 of it, but it's not 814 00:29:34,570 --> 00:29:36,699 ubiquitous enough and good enough in 815 00:29:36,700 --> 00:29:37,700 cash. 816 00:29:39,860 --> 00:29:41,450 So we have a lot of work to do, but. 817 00:29:46,100 --> 00:29:47,660 It's possible to make. 818 00:29:49,080 --> 00:29:52,319 Much more reliable. 819 00:29:52,320 --> 00:29:54,689 Privacy technology than General currently 820 00:29:54,690 --> 00:29:56,339 has, something that's really good about 821 00:29:56,340 --> 00:29:58,589 Monero is that they have this active 822 00:29:58,590 --> 00:30:01,349 and enthusiastic 823 00:30:01,350 --> 00:30:03,689 community, also a cult, 824 00:30:03,690 --> 00:30:05,910 and that's great because they. 825 00:30:09,760 --> 00:30:12,069 They encourage and support researchers 826 00:30:12,070 --> 00:30:13,239 to improve it. 827 00:30:13,240 --> 00:30:15,399 And unlike Bitcoin, Monroe 828 00:30:15,400 --> 00:30:17,709 is not averse to backwards and compatible 829 00:30:17,710 --> 00:30:20,049 upgrades and improvements, 830 00:30:20,050 --> 00:30:22,149 so they will hopefully continue to 831 00:30:22,150 --> 00:30:24,579 improve their technology. 832 00:30:24,580 --> 00:30:25,869 Zarkasih. I'm not going to say too much 833 00:30:25,870 --> 00:30:27,969 about we launched it more than a year 834 00:30:27,970 --> 00:30:30,669 ago. It's based on a bunch of 835 00:30:30,670 --> 00:30:32,170 like hardcore science 836 00:30:33,700 --> 00:30:34,700 it. 837 00:30:36,060 --> 00:30:38,489 It includes backwards, compatible, 838 00:30:39,600 --> 00:30:41,699 clear text transactions, and 839 00:30:41,700 --> 00:30:44,159 that's the worst thing about its 840 00:30:44,160 --> 00:30:46,259 security, as contrasted with one 841 00:30:46,260 --> 00:30:47,399 area where there's no backwards, 842 00:30:47,400 --> 00:30:49,849 compatible, clear text transaction. 843 00:30:49,850 --> 00:30:51,839 So you have to kind of leap all the way 844 00:30:51,840 --> 00:30:54,179 to the higher tech 845 00:30:54,180 --> 00:30:55,139 transactions. 846 00:30:55,140 --> 00:30:57,059 And in cash, we decided to try to make it 847 00:30:57,060 --> 00:30:59,249 easy to get Bitcoin users to get on 848 00:30:59,250 --> 00:31:01,469 board by giving them a Bitcoin like 849 00:31:01,470 --> 00:31:02,470 starting point. 850 00:31:03,810 --> 00:31:05,309 So that's a good thing for the cash, 851 00:31:05,310 --> 00:31:07,499 adoption and usage, but it's a 852 00:31:07,500 --> 00:31:08,910 bad thing for geocache, cash, privacy. 853 00:31:11,680 --> 00:31:13,119 The other thing I want to say about cash 854 00:31:13,120 --> 00:31:14,949 is that I'm really not going to be 855 00:31:14,950 --> 00:31:17,259 satisfied if by the end of like 856 00:31:17,260 --> 00:31:19,179 let's say twenty eighteen people still 857 00:31:19,180 --> 00:31:21,819 call it a privacy coin 858 00:31:21,820 --> 00:31:23,859 because it's like when Netscape added 859 00:31:23,860 --> 00:31:26,109 encryption to the Web browser, 860 00:31:26,110 --> 00:31:28,779 it didn't make a privacy browser. 861 00:31:28,780 --> 00:31:31,239 It didn't make it good for browsing 862 00:31:31,240 --> 00:31:32,739 the privacy web. 863 00:31:32,740 --> 00:31:34,569 No, it's just encryption is a necessity 864 00:31:34,570 --> 00:31:36,639 for the Web. Like you can't have you 865 00:31:36,640 --> 00:31:38,229 can't use the Web for anything that's 866 00:31:38,230 --> 00:31:40,179 important without encryption. 867 00:31:40,180 --> 00:31:41,649 And similarly, I don't think you can 868 00:31:41,650 --> 00:31:45,009 really use decentralized 869 00:31:45,010 --> 00:31:47,409 networks, world computers 870 00:31:47,410 --> 00:31:49,629 or cryptocurrency for anything 871 00:31:49,630 --> 00:31:50,559 that's important. 872 00:31:50,560 --> 00:31:51,609 I mean, for anything other than 873 00:31:51,610 --> 00:31:53,679 speculation if you 874 00:31:53,680 --> 00:31:55,719 don't have encryption or something 875 00:31:55,720 --> 00:31:57,939 similarly strong to protect privacy. 876 00:31:59,760 --> 00:32:01,559 So, yeah, in fact, one of the things that 877 00:32:01,560 --> 00:32:02,999 we're probably going to be focusing on in 878 00:32:03,000 --> 00:32:05,129 the Zikos Development team in 879 00:32:05,130 --> 00:32:06,869 2018 is the scaling question. 880 00:32:09,120 --> 00:32:10,349 I have a little bit of time to go into 881 00:32:10,350 --> 00:32:12,389 that, so I told you a little bit about 882 00:32:12,390 --> 00:32:13,390 lightning, right? 883 00:32:14,070 --> 00:32:16,949 And it's a beautiful idea 884 00:32:16,950 --> 00:32:18,509 and I may just totally misunderstand it. 885 00:32:18,510 --> 00:32:19,979 And a lot of the makers of lightning are 886 00:32:19,980 --> 00:32:21,809 here. So if I told you I'd tell you wrong 887 00:32:21,810 --> 00:32:24,149 things, then they should come up to the 888 00:32:24,150 --> 00:32:26,279 microphone right away 889 00:32:26,280 --> 00:32:28,019 during Q&A, which is in 15 minutes. 890 00:32:31,050 --> 00:32:33,299 But from my understanding, 891 00:32:33,300 --> 00:32:34,919 there's a fundamental there's a couple of 892 00:32:34,920 --> 00:32:36,479 potential fundamental problems that 893 00:32:36,480 --> 00:32:37,919 prevent lightning from being a scaling 894 00:32:37,920 --> 00:32:39,209 solution. 895 00:32:39,210 --> 00:32:41,339 So remember, the first step in 896 00:32:41,340 --> 00:32:43,739 lightning is that you take your Bitcoin 897 00:32:43,740 --> 00:32:45,750 and you commit it to. 898 00:32:47,460 --> 00:32:49,529 To be leveraged for being able to do off 899 00:32:49,530 --> 00:32:51,599 chain lightning payments, well, currently 900 00:32:51,600 --> 00:32:54,149 it costs like at least 10, 20 dollars 901 00:32:54,150 --> 00:32:55,139 to do that step. 902 00:32:55,140 --> 00:32:57,239 So if you 903 00:32:57,240 --> 00:32:59,489 only have ten dollars worth of Bitcoin, 904 00:32:59,490 --> 00:33:00,809 you just can't use lightning, right? 905 00:33:00,810 --> 00:33:01,949 Am I missing something? 906 00:33:01,950 --> 00:33:04,019 So that doesn't seem 907 00:33:04,020 --> 00:33:05,429 like a complete scaling solution for, 908 00:33:05,430 --> 00:33:06,809 like the entire world, in my opinion, 909 00:33:06,810 --> 00:33:08,369 because most people don't have ten 910 00:33:08,370 --> 00:33:10,769 dollars worth of Bitcoin and never could 911 00:33:10,770 --> 00:33:11,939 have, no matter what. 912 00:33:13,170 --> 00:33:14,819 But maybe there's a solution that someone 913 00:33:14,820 --> 00:33:16,379 is already thinking about that I don't 914 00:33:16,380 --> 00:33:17,909 understand. And if so, I hope it doesn't 915 00:33:17,910 --> 00:33:19,439 take five years to deploy it. 916 00:33:19,440 --> 00:33:20,789 But that's one possibility. 917 00:33:20,790 --> 00:33:23,189 And we're what I want to do with the cash 918 00:33:23,190 --> 00:33:24,689 is watch that carefully, because the 919 00:33:24,690 --> 00:33:26,009 lightning people have done a lot of 920 00:33:26,010 --> 00:33:27,959 really solid engineering. 921 00:33:27,960 --> 00:33:30,059 They have multiple teams working on it 922 00:33:30,060 --> 00:33:32,009 and they just finalized their one point 923 00:33:32,010 --> 00:33:33,449 zero specification and they've done 924 00:33:33,450 --> 00:33:34,349 interrupt testing. 925 00:33:34,350 --> 00:33:35,969 And there's a button somewhere in this 926 00:33:35,970 --> 00:33:38,039 building where if you go poke 927 00:33:38,040 --> 00:33:40,619 the button, it sends a micropayment 928 00:33:40,620 --> 00:33:42,450 over the Bitcoin test net 929 00:33:43,860 --> 00:33:45,269 to demonstrate that lightning actually 930 00:33:45,270 --> 00:33:47,399 works over the Bitcoin. WestNet, but I 931 00:33:47,400 --> 00:33:48,569 don't think it could work on the main net 932 00:33:48,570 --> 00:33:49,919 because you. Well, I guess it could. 933 00:33:49,920 --> 00:33:51,599 You just have to put in like 20 bucks 934 00:33:51,600 --> 00:33:54,299 into your button and then that would work 935 00:33:54,300 --> 00:33:55,739 anyway. So Lightning Network is a really 936 00:33:55,740 --> 00:33:57,119 great possibility. Then there's the 937 00:33:58,850 --> 00:34:00,869 the Bitcoin cash approach that resulted 938 00:34:00,870 --> 00:34:02,729 in that like three year long civil war 939 00:34:02,730 --> 00:34:03,749 that's finally over. 940 00:34:03,750 --> 00:34:05,819 Thank God was just we'll 941 00:34:05,820 --> 00:34:07,919 just make the box bigger and tune up 942 00:34:07,920 --> 00:34:09,749 the parameters, like increase the 943 00:34:09,750 --> 00:34:12,359 capacity of the network. 944 00:34:12,360 --> 00:34:14,519 And there 945 00:34:14,520 --> 00:34:16,919 are a lot of detailed arguments 946 00:34:16,920 --> 00:34:18,988 that I'm not sure how to 947 00:34:18,989 --> 00:34:20,789 evaluate about whether that's good or bad 948 00:34:20,790 --> 00:34:21,790 or indifferent. 949 00:34:23,389 --> 00:34:24,738 But one thing I'm really sure is that 950 00:34:24,739 --> 00:34:26,658 it's not going to result in a whole lot 951 00:34:26,659 --> 00:34:28,519 more scaling, I don't think. 952 00:34:28,520 --> 00:34:30,619 I mean, so far the 953 00:34:30,620 --> 00:34:33,169 cash and Bitcoin cash have roughly 954 00:34:33,170 --> 00:34:35,359 quadrupled the capacity. 955 00:34:35,360 --> 00:34:37,549 But if we get four times as many users 956 00:34:37,550 --> 00:34:39,529 in eighteen as we got in 2017, then we'll 957 00:34:39,530 --> 00:34:40,759 be back to where we started. 958 00:34:40,760 --> 00:34:42,408 And I really don't know if you can just 959 00:34:42,409 --> 00:34:44,718 keep doubling it every year. 960 00:34:44,719 --> 00:34:45,888 What happens? So that's a it's a 961 00:34:45,889 --> 00:34:47,809 possibility it might work. 962 00:34:47,810 --> 00:34:49,999 I would tend to 963 00:34:50,000 --> 00:34:52,459 try to wait and see both scientific 964 00:34:52,460 --> 00:34:54,649 and empirical validation 965 00:34:54,650 --> 00:34:56,090 of how it works in practice. 966 00:34:58,920 --> 00:35:00,809 There a third thing, oh, if your home is 967 00:35:00,810 --> 00:35:02,369 working on this concept called shirting 968 00:35:02,370 --> 00:35:05,039 and I love the Assyrian people because 969 00:35:05,040 --> 00:35:07,139 for like four years now, 970 00:35:07,140 --> 00:35:09,359 ever since I first heard about etherial, 971 00:35:09,360 --> 00:35:11,579 like before it even like 972 00:35:11,580 --> 00:35:13,429 the first moment it was being designed, 973 00:35:14,460 --> 00:35:17,009 I've always said, that's 974 00:35:17,010 --> 00:35:19,659 awesome, but way too complicated, 975 00:35:19,660 --> 00:35:21,899 ambitious to actually work. 976 00:35:21,900 --> 00:35:23,849 And then they would go ahead and do it 977 00:35:23,850 --> 00:35:24,809 and it would actually work. 978 00:35:24,810 --> 00:35:27,029 And so then I would be amazed and then 979 00:35:27,030 --> 00:35:28,439 it would iterate again, they would say, 980 00:35:28,440 --> 00:35:29,429 we're going to do this next thing. 981 00:35:29,430 --> 00:35:30,430 And I would say that's. 982 00:35:31,500 --> 00:35:33,659 Brilliant, and I love that, but that 983 00:35:33,660 --> 00:35:35,399 you'll never pull it off and they would 984 00:35:35,400 --> 00:35:36,689 pull that off, so the next thing that 985 00:35:36,690 --> 00:35:37,799 they're doing, which I don't think they 986 00:35:37,800 --> 00:35:40,139 could ever really succeed at, is taking 987 00:35:40,140 --> 00:35:41,549 a theory and making it so. 988 00:35:41,550 --> 00:35:44,879 It's still a single world computer, but 989 00:35:44,880 --> 00:35:47,429 it paralyzes the computations 990 00:35:47,430 --> 00:35:49,749 to like thousands of, 991 00:35:49,750 --> 00:35:51,869 like, subnetwork and 992 00:35:51,870 --> 00:35:54,209 then nizza the computations back together 993 00:35:54,210 --> 00:35:56,399 again in time for 994 00:35:56,400 --> 00:35:58,579 you to receive your newly bred Krypto 995 00:35:58,580 --> 00:36:00,569 kitty. So that's what they're working on. 996 00:36:00,570 --> 00:36:01,829 It's called Sharding. 997 00:36:01,830 --> 00:36:04,139 And I don't know, with 998 00:36:04,140 --> 00:36:06,479 lightning sharding and just 999 00:36:06,480 --> 00:36:07,979 turning up the parameters. 1000 00:36:07,980 --> 00:36:08,980 I don't know. 1001 00:36:10,830 --> 00:36:13,109 I think we'll learn a lot in the next 1002 00:36:13,110 --> 00:36:15,299 year from people's attempts to 1003 00:36:15,300 --> 00:36:16,300 do that. 1004 00:36:17,070 --> 00:36:18,059 All three of them. 1005 00:36:18,060 --> 00:36:19,259 And so that's what we're doing. 1006 00:36:19,260 --> 00:36:21,509 It's just sort of watching those like 1007 00:36:21,510 --> 00:36:23,459 hawks trying to figure out what's going 1008 00:36:23,460 --> 00:36:25,499 to work and what we should copy or if we 1009 00:36:25,500 --> 00:36:27,209 need to come up with a fourth idea 1010 00:36:27,210 --> 00:36:28,919 ourselves to make some cash more widely 1011 00:36:28,920 --> 00:36:29,939 usable. 1012 00:36:29,940 --> 00:36:31,199 OK, I'm almost out of time, thank 1013 00:36:31,200 --> 00:36:33,179 goodness. OK, this is my last flight. 1014 00:36:35,460 --> 00:36:37,429 So I've been traveling the world. 1015 00:36:37,430 --> 00:36:39,329 I like to say I'm an imaginary coin 1016 00:36:39,330 --> 00:36:41,459 salesman. I've been traveling the world 1017 00:36:41,460 --> 00:36:44,249 telling people about the virtues of cash. 1018 00:36:44,250 --> 00:36:45,539 It's been really nice giving this talk, 1019 00:36:45,540 --> 00:36:47,369 which is mostly not about the virtues of 1020 00:36:47,370 --> 00:36:48,570 cash, but 1021 00:36:50,670 --> 00:36:52,349 these are not the most important 1022 00:36:52,350 --> 00:36:53,729 countries in the world. 1023 00:36:53,730 --> 00:36:55,409 There are several important continents 1024 00:36:55,410 --> 00:36:56,669 with billions of people that are not even 1025 00:36:56,670 --> 00:36:58,229 mentioned on this slide. 1026 00:36:58,230 --> 00:37:00,569 But these are six interesting ones. 1027 00:37:00,570 --> 00:37:02,729 The top three are the most important if 1028 00:37:02,730 --> 00:37:05,069 you believe in total 1029 00:37:05,070 --> 00:37:07,169 amount of coins bought and sold 1030 00:37:07,170 --> 00:37:09,119 that day as being a measure of 1031 00:37:09,120 --> 00:37:10,120 importance. So 1032 00:37:11,220 --> 00:37:13,469 Japan buys and sells more crypto coins 1033 00:37:13,470 --> 00:37:16,019 every day than any other country does. 1034 00:37:16,020 --> 00:37:17,429 Ten minutes, no questions. 1035 00:37:17,430 --> 00:37:19,049 Actually, I might stop for ten minutes. 1036 00:37:19,050 --> 00:37:20,609 You guys should start coming up with your 1037 00:37:20,610 --> 00:37:21,629 questions. 1038 00:37:21,630 --> 00:37:23,789 And I think it would be cool if 1039 00:37:23,790 --> 00:37:25,619 the first question came from a woman. 1040 00:37:25,620 --> 00:37:27,029 So if you're a woman and you have a 1041 00:37:27,030 --> 00:37:28,289 question, you should hurry to the. 1042 00:37:33,080 --> 00:37:34,080 So. 1043 00:37:35,690 --> 00:37:37,279 So there's this perfect storm of things 1044 00:37:37,280 --> 00:37:38,719 happening in Japan, which is that the 1045 00:37:38,720 --> 00:37:41,449 government has this very 1046 00:37:41,450 --> 00:37:44,089 simple and reasonable regulatory 1047 00:37:44,090 --> 00:37:46,399 framework, which makes it apparent 1048 00:37:46,400 --> 00:37:48,469 to all the businesses and the industry 1049 00:37:48,470 --> 00:37:50,659 on the right hand side and all the people 1050 00:37:50,660 --> 00:37:53,179 who might want to gamble their 1051 00:37:53,180 --> 00:37:55,819 savings that 1052 00:37:55,820 --> 00:37:57,349 the government considers cryptocurrency 1053 00:37:57,350 --> 00:37:59,509 used to be a legitimate, normal, real 1054 00:37:59,510 --> 00:38:00,589 thing. 1055 00:38:00,590 --> 00:38:02,149 And I think that's actually because of 1056 00:38:02,150 --> 00:38:04,459 Mt. Gox, which is the biggest 1057 00:38:04,460 --> 00:38:05,819 cryptocurrency exchange ever. 1058 00:38:05,820 --> 00:38:06,860 And then it was 1059 00:38:09,290 --> 00:38:11,239 all of the bitcoins disappeared. 1060 00:38:11,240 --> 00:38:13,209 We all close our eyes and to 10. 1061 00:38:13,210 --> 00:38:14,569 And when we open them, the bitcoins were 1062 00:38:14,570 --> 00:38:16,099 gone. And it was like the most Bitcoin 1063 00:38:16,100 --> 00:38:17,479 ever that disappeared. 1064 00:38:17,480 --> 00:38:18,709 And that thing was headquartered in 1065 00:38:18,710 --> 00:38:20,779 Japan. So and that was, what, 1066 00:38:20,780 --> 00:38:21,780 five years ago now. 1067 00:38:22,670 --> 00:38:24,889 So maybe in addition to technologies 1068 00:38:24,890 --> 00:38:27,169 being turned into products or 1069 00:38:27,170 --> 00:38:28,879 conceptions being turned into products, 1070 00:38:28,880 --> 00:38:30,529 also, it takes five years for disasters 1071 00:38:30,530 --> 00:38:31,759 to be turned into laws. 1072 00:38:31,760 --> 00:38:33,889 But as of this year, the government 1073 00:38:33,890 --> 00:38:36,019 of Japan passed some laws explaining 1074 00:38:36,020 --> 00:38:37,020 what? 1075 00:38:38,080 --> 00:38:40,119 Businesses and people would be required 1076 00:38:40,120 --> 00:38:41,679 to do around cryptocurrency and just the 1077 00:38:41,680 --> 00:38:43,929 fact that the laws exist has 1078 00:38:43,930 --> 00:38:45,879 encouraged people to buy and sell them at 1079 00:38:45,880 --> 00:38:47,589 high rates of speed. 1080 00:38:47,590 --> 00:38:48,729 That's why Japan is the most important 1081 00:38:48,730 --> 00:38:50,799 country. US is the second most important 1082 00:38:50,800 --> 00:38:51,879 country. 1083 00:38:51,880 --> 00:38:53,589 I spent a lot of time talking to United 1084 00:38:53,590 --> 00:38:55,569 States regulators and law enforcement and 1085 00:38:55,570 --> 00:38:58,629 people like that, and they largely 1086 00:38:58,630 --> 00:39:00,629 have their hearts in the right place, 1087 00:39:00,630 --> 00:39:03,129 like they want to not discourage 1088 00:39:03,130 --> 00:39:05,769 the development of potentially valuable 1089 00:39:05,770 --> 00:39:07,389 technology and they want to protect 1090 00:39:07,390 --> 00:39:09,779 consumers from being robbed or 1091 00:39:09,780 --> 00:39:11,919 or scammed and so 1092 00:39:11,920 --> 00:39:13,629 forth. But on the other hand, it takes 1093 00:39:13,630 --> 00:39:15,939 them for fuckin ever to get anything 1094 00:39:15,940 --> 00:39:17,020 done. And 1095 00:39:18,130 --> 00:39:20,439 and there are literally dozens, like 1096 00:39:20,440 --> 00:39:22,989 60 or 80 different 1097 00:39:22,990 --> 00:39:25,509 agencies in the United States that are 1098 00:39:25,510 --> 00:39:27,639 that potentially are 1099 00:39:27,640 --> 00:39:29,829 empowered to regulate 1100 00:39:29,830 --> 00:39:32,649 and oversee different kinds of financial 1101 00:39:32,650 --> 00:39:34,779 and technological things. 1102 00:39:34,780 --> 00:39:36,549 So nobody even knows which agency is 1103 00:39:36,550 --> 00:39:38,199 actually got the authority to make which 1104 00:39:38,200 --> 00:39:39,429 kinds of rules about stuff. 1105 00:39:39,430 --> 00:39:41,259 And they're making progress over the last 1106 00:39:41,260 --> 00:39:42,439 couple of years. 1107 00:39:42,440 --> 00:39:43,689 They're heading in the right direction. 1108 00:39:45,130 --> 00:39:46,779 And the fact that they seem to be have 1109 00:39:46,780 --> 00:39:48,039 their hearts in the right place from the 1110 00:39:48,040 --> 00:39:49,959 perspective of entrepreneurs and be 1111 00:39:49,960 --> 00:39:51,189 heading in the right direction from the 1112 00:39:51,190 --> 00:39:52,449 perspective of entrepreneurs, has 1113 00:39:52,450 --> 00:39:54,519 encouraged the industry and the United 1114 00:39:54,520 --> 00:39:56,170 States in Silicon Valley. 1115 00:39:57,670 --> 00:39:59,019 And people in the United States are 1116 00:39:59,020 --> 00:40:00,759 buying lots and lots of bitcoins and 1117 00:40:00,760 --> 00:40:01,929 other coins every day. 1118 00:40:01,930 --> 00:40:03,369 And South Korea is a really fun, 1119 00:40:03,370 --> 00:40:06,369 interesting case. It's one of the biggest 1120 00:40:06,370 --> 00:40:08,709 markets in terms of people 1121 00:40:08,710 --> 00:40:10,779 buying it. And it's really mainstream in 1122 00:40:10,780 --> 00:40:12,999 South Korea, like, I think more so than 1123 00:40:13,000 --> 00:40:14,000 almost anywhere else. 1124 00:40:16,990 --> 00:40:19,359 Like half maybe of all people 1125 00:40:19,360 --> 00:40:21,909 are aware of Bitcoin 1126 00:40:21,910 --> 00:40:23,139 as a thing that they might consider 1127 00:40:23,140 --> 00:40:24,369 buying. And 1128 00:40:25,900 --> 00:40:28,449 there are these major like the 1129 00:40:28,450 --> 00:40:30,009 the chat app that every single Korean 1130 00:40:30,010 --> 00:40:31,509 person uses all day long. 1131 00:40:31,510 --> 00:40:33,609 It the company behind that chat app 1132 00:40:33,610 --> 00:40:35,829 has bought a cryptocurrency exchange and 1133 00:40:35,830 --> 00:40:37,899 the gaming service like 1134 00:40:37,900 --> 00:40:39,819 Steam that that half of Koreans are 1135 00:40:39,820 --> 00:40:41,949 playing games on every day that 1136 00:40:41,950 --> 00:40:44,229 has launched its own cryptocurrency 1137 00:40:44,230 --> 00:40:45,969 service. So there's a lot going on in the 1138 00:40:45,970 --> 00:40:47,649 industry, in the community, but the 1139 00:40:47,650 --> 00:40:49,029 Korean government, South Korean 1140 00:40:49,030 --> 00:40:50,229 government can't seem to make up its 1141 00:40:50,230 --> 00:40:52,149 mind. The other day, the prime minister 1142 00:40:52,150 --> 00:40:54,579 of South Korea was publicly wringing 1143 00:40:54,580 --> 00:40:56,709 his hands, saying that all this coin 1144 00:40:56,710 --> 00:40:58,839 stuff might lead the nation's youth 1145 00:40:58,840 --> 00:40:59,840 into corruption 1146 00:41:01,000 --> 00:41:02,749 or maybe lead them to drugs. 1147 00:41:02,750 --> 00:41:04,089 And I wasn't sure why. 1148 00:41:04,090 --> 00:41:05,709 I thought that was what he's worried 1149 00:41:05,710 --> 00:41:06,710 about, but. 1150 00:41:09,650 --> 00:41:11,629 China is an interesting case or anything. 1151 00:41:11,630 --> 00:41:13,579 Yeah, OK, so there's all this interesting 1152 00:41:13,580 --> 00:41:15,619 stuff going on, like the government of 1153 00:41:15,620 --> 00:41:16,969 Venezuela just announced that they're 1154 00:41:16,970 --> 00:41:18,349 going to launch their own cryptocurrency, 1155 00:41:18,350 --> 00:41:19,609 but they don't appear to know what one 1156 00:41:19,610 --> 00:41:20,610 is. 1157 00:41:25,380 --> 00:41:27,599 OK, but I want to save some more time 1158 00:41:27,600 --> 00:41:29,309 for questions, so my original questions 1159 00:41:29,310 --> 00:41:30,659 at the time was, is this all 1160 00:41:31,800 --> 00:41:34,049 hype and mania and craziness 1161 00:41:34,050 --> 00:41:36,039 in tulips or what? 1162 00:41:36,040 --> 00:41:37,979 My answer is, it's definitely not just 1163 00:41:37,980 --> 00:41:39,749 hype. There's definitely a lot of hype. 1164 00:41:39,750 --> 00:41:42,029 And I don't know if it's like 50 percent 1165 00:41:42,030 --> 00:41:44,099 or 99 percent of the 1166 00:41:44,100 --> 00:41:46,799 money that's currently at stake 1167 00:41:46,800 --> 00:41:49,019 is going to disappear or flee 1168 00:41:50,250 --> 00:41:52,439 in the future or 10 percent 1169 00:41:52,440 --> 00:41:52,949 or whatever. 1170 00:41:52,950 --> 00:41:54,149 There's definitely a lot of hype, but 1171 00:41:54,150 --> 00:41:55,979 there's definitely a lot of things going 1172 00:41:55,980 --> 00:41:57,749 on here which are not which are real 1173 00:41:57,750 --> 00:41:59,459 things that were previously impossible 1174 00:41:59,460 --> 00:42:02,129 and are now definitely possible and are 1175 00:42:02,130 --> 00:42:03,899 are demonstrated to be valuable to 1176 00:42:03,900 --> 00:42:04,900 people. 1177 00:42:06,510 --> 00:42:07,589 Is it going to be used for good or ill? 1178 00:42:07,590 --> 00:42:09,119 Well, I didn't actually say anything 1179 00:42:09,120 --> 00:42:10,379 about that. You have to make up your own 1180 00:42:10,380 --> 00:42:12,329 mind. You tried to give just a lot of 1181 00:42:12,330 --> 00:42:13,589 empirical facts about things I've 1182 00:42:13,590 --> 00:42:14,590 observed. 1183 00:42:16,050 --> 00:42:18,689 But for my personal conviction, 1184 00:42:18,690 --> 00:42:21,149 this kind of technology is inherently 1185 00:42:21,150 --> 00:42:22,379 empowering. 1186 00:42:22,380 --> 00:42:24,359 And my conviction is that when you 1187 00:42:24,360 --> 00:42:26,609 empower people, them 1188 00:42:26,610 --> 00:42:28,679 using it for good and to help 1189 00:42:28,680 --> 00:42:29,999 each other and lift each other up is 1190 00:42:30,000 --> 00:42:32,099 going to outweigh them using it 1191 00:42:32,100 --> 00:42:34,829 in order to oppress smaller groups or 1192 00:42:34,830 --> 00:42:36,179 harm each other or do ill. 1193 00:42:36,180 --> 00:42:37,579 That's just what I think. 1194 00:42:37,580 --> 00:42:39,069 That's my beliefs about humanity. 1195 00:42:39,070 --> 00:42:41,399 So I think in the long run, at the large 1196 00:42:41,400 --> 00:42:42,719 scale, these technologies are going to be 1197 00:42:42,720 --> 00:42:44,789 very, very good and very 1198 00:42:44,790 --> 00:42:47,009 powerful and disruptive. 1199 00:42:47,010 --> 00:42:47,899 And that's what I think. 1200 00:42:47,900 --> 00:42:48,900 OK. 1201 00:43:00,040 --> 00:43:01,029 Thank you so much. 1202 00:43:01,030 --> 00:43:03,279 We have a lot of time for questions, so 1203 00:43:03,280 --> 00:43:05,709 step up to the microphones and. 1204 00:43:07,380 --> 00:43:08,969 OK, microphone six. 1205 00:43:10,060 --> 00:43:12,059 OK, thanks. 1206 00:43:12,060 --> 00:43:13,060 We'll talk here. 1207 00:43:14,200 --> 00:43:16,689 We're six here. 1208 00:43:16,690 --> 00:43:17,690 Oh, hello. 1209 00:43:19,030 --> 00:43:21,249 So since Christmas just 1210 00:43:21,250 --> 00:43:23,049 passed and you talk to normal people at 1211 00:43:23,050 --> 00:43:25,989 the family table and try to explain 1212 00:43:25,990 --> 00:43:27,840 cryptocurrency, which is all time, 1213 00:43:29,680 --> 00:43:31,670 what how would you explain 1214 00:43:32,920 --> 00:43:35,349 to people to invest into 1215 00:43:35,350 --> 00:43:36,350 cryptos? 1216 00:43:37,510 --> 00:43:39,010 So what's the motivation 1217 00:43:40,360 --> 00:43:42,519 for them, which is not just 1218 00:43:42,520 --> 00:43:45,309 speculation. So what should be a 1219 00:43:45,310 --> 00:43:47,379 motivation for normal people to buy 1220 00:43:47,380 --> 00:43:48,380 cryptocurrency? 1221 00:43:49,390 --> 00:43:50,589 That's a good question. 1222 00:43:50,590 --> 00:43:53,139 I think the only good 1223 00:43:53,140 --> 00:43:55,059 reason right now is just speculation 1224 00:43:55,060 --> 00:43:56,149 which you excluded. 1225 00:43:56,150 --> 00:43:57,729 So and I try not to give investment 1226 00:43:57,730 --> 00:43:58,730 advice. 1227 00:44:00,340 --> 00:44:02,409 I guess if somebody were like my 1228 00:44:02,410 --> 00:44:04,899 family at Christmas were demanding 1229 00:44:04,900 --> 00:44:06,969 investment advice, I would tell them not 1230 00:44:06,970 --> 00:44:08,769 to invest more than they could afford to 1231 00:44:08,770 --> 00:44:09,770 lose. 1232 00:44:16,710 --> 00:44:18,359 We're going to take the next one from 1233 00:44:18,360 --> 00:44:20,009 microphone three. 1234 00:44:20,010 --> 00:44:22,079 Hi, thanks for talk. 1235 00:44:22,080 --> 00:44:24,359 How is your view on this 1236 00:44:24,360 --> 00:44:26,529 child and the parent child 1237 00:44:26,530 --> 00:44:29,159 train approach that some cryptocurrency 1238 00:44:29,160 --> 00:44:31,649 so doing at the moment of solving 1239 00:44:31,650 --> 00:44:32,819 the problem? 1240 00:44:32,820 --> 00:44:34,409 It's one of those things that goes into 1241 00:44:34,410 --> 00:44:36,239 that slide called new technology that I 1242 00:44:36,240 --> 00:44:37,659 don't know yet. 1243 00:44:37,660 --> 00:44:39,959 I don't really know how to evaluate. 1244 00:44:39,960 --> 00:44:41,039 There's a lot of those. 1245 00:44:41,040 --> 00:44:42,899 There's a lot of different ideas that 1246 00:44:42,900 --> 00:44:45,089 people who are way smarter than me seem 1247 00:44:45,090 --> 00:44:47,309 to think are great ideas. 1248 00:44:47,310 --> 00:44:48,540 And I'm very 1249 00:44:50,700 --> 00:44:52,259 empirically oriented. 1250 00:44:52,260 --> 00:44:53,759 So I'm going to wait and see if they can 1251 00:44:53,760 --> 00:44:55,029 get it running first. 1252 00:44:56,490 --> 00:44:57,490 Thanks. 1253 00:45:00,030 --> 00:45:02,099 Now we have a question from the 1254 00:45:02,100 --> 00:45:04,139 Internet, from someone who is watching 1255 00:45:04,140 --> 00:45:05,549 the stream right now. 1256 00:45:05,550 --> 00:45:07,529 Thank you. In one of your slides, you 1257 00:45:07,530 --> 00:45:09,239 said that only a tiny fraction of 1258 00:45:09,240 --> 00:45:12,459 transaction actually used illegal stuff 1259 00:45:12,460 --> 00:45:14,969 that does this number come from. 1260 00:45:14,970 --> 00:45:16,409 What is the source? 1261 00:45:16,410 --> 00:45:17,670 That's a good question. 1262 00:45:18,720 --> 00:45:20,789 This estimate of 1263 00:45:20,790 --> 00:45:23,039 drug of illegal drugs is 1264 00:45:23,040 --> 00:45:25,289 from there's a couple of studies. 1265 00:45:25,290 --> 00:45:27,449 One was by the RAND Corporation 1266 00:45:27,450 --> 00:45:29,639 and one was by some academic 1267 00:45:29,640 --> 00:45:31,019 researchers who I can't remember right 1268 00:45:31,020 --> 00:45:32,069 now, I'm sorry. 1269 00:45:32,070 --> 00:45:34,169 And mostly what 1270 00:45:34,170 --> 00:45:36,659 they were doing was just visiting 1271 00:45:36,660 --> 00:45:39,479 darknet Web sites and 1272 00:45:39,480 --> 00:45:40,480 counting up 1273 00:45:41,550 --> 00:45:42,659 how many drugs were for sale, at what 1274 00:45:42,660 --> 00:45:44,999 price, which would be expected 1275 00:45:45,000 --> 00:45:45,899 to underestimate. 1276 00:45:45,900 --> 00:45:48,029 And so therefore, I doubled the number 1277 00:45:48,030 --> 00:45:49,480 when I wrote this slide. 1278 00:45:50,960 --> 00:45:52,109 So it's that kind of estimate. 1279 00:45:52,110 --> 00:45:53,909 Nobody knows, but at least I'm honest 1280 00:45:53,910 --> 00:45:54,910 about it. Sorry. 1281 00:45:56,830 --> 00:45:59,189 Next, her phone number 1282 00:45:59,190 --> 00:46:01,629 four, that's what this little Tildy 1283 00:46:01,630 --> 00:46:04,359 means, is that it's really uncertain 1284 00:46:04,360 --> 00:46:05,409 before the. Yeah, 1285 00:46:06,480 --> 00:46:07,809 thank you for your talk. 1286 00:46:07,810 --> 00:46:10,029 And what are you thinking about? 1287 00:46:10,030 --> 00:46:12,189 Proofer stage alternatives to 1288 00:46:12,190 --> 00:46:13,190 proof of work. 1289 00:46:14,400 --> 00:46:16,199 That's a good one, proof of stake is this 1290 00:46:16,200 --> 00:46:18,669 really interesting concept, 1291 00:46:18,670 --> 00:46:19,670 this. 1292 00:46:21,270 --> 00:46:23,099 Seems very promising, and it's to switch, 1293 00:46:23,100 --> 00:46:25,259 you know, how Bitcoin uses proof of work, 1294 00:46:25,260 --> 00:46:27,509 where your computer is doing 1295 00:46:27,510 --> 00:46:29,639 some unfordable, it's basically 1296 00:46:29,640 --> 00:46:31,709 paying a cost in a way that it can prove 1297 00:46:31,710 --> 00:46:33,419 to everyone else that it paid a cost. 1298 00:46:33,420 --> 00:46:34,409 That's proof of work. 1299 00:46:34,410 --> 00:46:36,539 And the cost in this case is the cost of 1300 00:46:36,540 --> 00:46:38,579 computing. A bazillion shot to fifty six 1301 00:46:38,580 --> 00:46:40,649 hashes in cash. 1302 00:46:40,650 --> 00:46:42,809 It's a different thing that is 1303 00:46:42,810 --> 00:46:45,089 more friendly to GPS instead of ASX. 1304 00:46:45,090 --> 00:46:46,799 But whatever it's still the whole point 1305 00:46:46,800 --> 00:46:48,089 of it is just proving that you paid a 1306 00:46:48,090 --> 00:46:50,639 cost. And then that is the basis 1307 00:46:50,640 --> 00:46:53,039 of where we don't think 1308 00:46:53,040 --> 00:46:55,259 anyone will attack the network 1309 00:46:55,260 --> 00:46:57,449 by paying so much 1310 00:46:57,450 --> 00:46:59,279 cost that they can outweigh all of the 1311 00:46:59,280 --> 00:47:00,599 other miners in the whole network. 1312 00:47:00,600 --> 00:47:01,709 That's the whole concept of proof of 1313 00:47:01,710 --> 00:47:04,019 work, which was the breakthrough really 1314 00:47:04,020 --> 00:47:05,549 institutions paper. 1315 00:47:05,550 --> 00:47:06,779 And then there's this newer concept 1316 00:47:06,780 --> 00:47:08,279 called Proof of stake, which is that we 1317 00:47:08,280 --> 00:47:09,299 could replace that way. 1318 00:47:09,300 --> 00:47:11,549 Instead of proving 1319 00:47:11,550 --> 00:47:13,679 very showing that you did something 1320 00:47:13,680 --> 00:47:15,809 costly, you could 1321 00:47:17,100 --> 00:47:19,259 verifiably lock up some of 1322 00:47:19,260 --> 00:47:22,259 your money, some of your crypto money 1323 00:47:22,260 --> 00:47:24,509 in order to show 1324 00:47:24,510 --> 00:47:26,639 that you're in 1325 00:47:26,640 --> 00:47:28,769 order to limit how much someone could 1326 00:47:28,770 --> 00:47:30,059 attack the network by doing this, because 1327 00:47:30,060 --> 00:47:31,109 they would have to lock up a whole bunch 1328 00:47:31,110 --> 00:47:32,489 of crypto money. And then there's a 1329 00:47:32,490 --> 00:47:33,989 really neat thing about proof of stake, 1330 00:47:33,990 --> 00:47:34,990 which is that 1331 00:47:36,330 --> 00:47:38,069 you can then confiscate and redistribute 1332 00:47:38,070 --> 00:47:40,139 their money if they if you can 1333 00:47:40,140 --> 00:47:42,089 verify that they were lying or attacking 1334 00:47:42,090 --> 00:47:43,769 the network. So that's interesting. 1335 00:47:43,770 --> 00:47:45,809 But basically, it is boils down to 1336 00:47:45,810 --> 00:47:47,159 another one of those technologies that 1337 00:47:47,160 --> 00:47:48,779 I'm not sure about yet. There are a lot 1338 00:47:48,780 --> 00:47:51,209 of smaller coins that have deployed 1339 00:47:51,210 --> 00:47:52,979 proof of stake, but they're not big 1340 00:47:52,980 --> 00:47:55,049 enough and important enough for people to 1341 00:47:55,050 --> 00:47:57,899 attack them, refer to them, be stressed, 1342 00:47:57,900 --> 00:47:58,619 tested yet. 1343 00:47:58,620 --> 00:48:00,659 So I'm not convinced by the empiricism of 1344 00:48:00,660 --> 00:48:01,679 that observation. 1345 00:48:01,680 --> 00:48:04,019 And there's a lot of good scientific 1346 00:48:04,020 --> 00:48:05,459 research on proof of stake, which looks 1347 00:48:05,460 --> 00:48:06,989 pretty promising. So I consider it a 1348 00:48:06,990 --> 00:48:09,629 really promising thing for the future. 1349 00:48:09,630 --> 00:48:10,559 Hope that helped. 1350 00:48:10,560 --> 00:48:11,560 Thank you. 1351 00:48:12,350 --> 00:48:14,029 Thank you. The next question is 1352 00:48:14,030 --> 00:48:15,030 microphone one. 1353 00:48:15,980 --> 00:48:17,029 Hello. 1354 00:48:17,030 --> 00:48:19,549 I have a question regarding the usability 1355 00:48:19,550 --> 00:48:22,039 of cryptocurrency as real 1356 00:48:22,040 --> 00:48:24,229 currencies for everyday use. 1357 00:48:24,230 --> 00:48:26,299 Everything I've seen with Bitcoin, 1358 00:48:26,300 --> 00:48:28,819 it's insanely valuable and insanely 1359 00:48:28,820 --> 00:48:31,399 volatile and it's insanely expensive 1360 00:48:31,400 --> 00:48:32,629 to do transactions. 1361 00:48:32,630 --> 00:48:35,029 And it's all things that make currency 1362 00:48:35,030 --> 00:48:37,429 useless, equally useless 1363 00:48:37,430 --> 00:48:39,589 if they are worth nothing. 1364 00:48:39,590 --> 00:48:41,779 You can't use a currency if it's to. 1365 00:48:41,780 --> 00:48:44,209 Yeah, if it's too valuable, 1366 00:48:44,210 --> 00:48:45,589 you can't use it either. 1367 00:48:45,590 --> 00:48:48,169 What would be needed from a technical 1368 00:48:48,170 --> 00:48:50,779 standpoint to make cryptocurrency 1369 00:48:50,780 --> 00:48:53,029 as an everyday currency that 1370 00:48:53,030 --> 00:48:55,219 actually can be used to do 1371 00:48:55,220 --> 00:48:56,569 real stuff? 1372 00:48:56,570 --> 00:48:59,389 Well, I don't know if the volatility 1373 00:48:59,390 --> 00:49:01,489 in the value is the most important factor 1374 00:49:01,490 --> 00:49:03,589 it might be, but I could imagine 1375 00:49:03,590 --> 00:49:05,569 if we could solve the other problems 1376 00:49:05,570 --> 00:49:07,729 which we know about, like safety, 1377 00:49:07,730 --> 00:49:09,919 like you X is the number one 1378 00:49:09,920 --> 00:49:12,229 thing, right? Like if you ever tried 1379 00:49:12,230 --> 00:49:14,359 to help some random newbie 1380 00:49:14,360 --> 00:49:16,789 who's not a total geek use 1381 00:49:16,790 --> 00:49:19,009 a cryptocurrency for anything, it's just 1382 00:49:19,010 --> 00:49:20,689 hell, it's ridiculous. 1383 00:49:20,690 --> 00:49:23,949 So we can't really go blaming economics 1384 00:49:23,950 --> 00:49:25,639 when that's the way the U.S. 1385 00:49:25,640 --> 00:49:28,429 is an obvious stumbling block. 1386 00:49:28,430 --> 00:49:29,689 And then there's the skill problem that 1387 00:49:29,690 --> 00:49:31,879 we just talked about, where a 1388 00:49:31,880 --> 00:49:34,039 currency by necessity is only 1389 00:49:34,040 --> 00:49:36,199 useful and valuable when, like everyone 1390 00:49:36,200 --> 00:49:37,969 else, you know, is also using it. 1391 00:49:37,970 --> 00:49:40,609 And so, A, we would have to bootstrap 1392 00:49:40,610 --> 00:49:42,229 to get to that scale. 1393 00:49:42,230 --> 00:49:43,769 But being under the current technology, 1394 00:49:43,770 --> 00:49:44,959 you could support it if we did. 1395 00:49:44,960 --> 00:49:47,329 So that's another obvious fundamental 1396 00:49:47,330 --> 00:49:48,349 stumbling block where you can't really 1397 00:49:48,350 --> 00:49:49,999 blame economics when we can't even supply 1398 00:49:50,000 --> 00:49:51,739 the fundamental behavior in the first 1399 00:49:51,740 --> 00:49:52,069 place. 1400 00:49:52,070 --> 00:49:53,749 OK, then yes, there's an economics 1401 00:49:53,750 --> 00:49:55,969 question. And my sense, my very 1402 00:49:55,970 --> 00:49:58,099 vague sense is that 1403 00:49:58,100 --> 00:50:00,169 you can fix you can 1404 00:50:00,170 --> 00:50:02,299 people will be willing to spend money 1405 00:50:02,300 --> 00:50:04,549 in order to gain 1406 00:50:04,550 --> 00:50:07,219 value despite the volatility 1407 00:50:07,220 --> 00:50:09,439 and other questions, because either 1408 00:50:09,440 --> 00:50:11,269 you could hold your money. 1409 00:50:11,270 --> 00:50:12,649 And there's a lot of ways maybe. 1410 00:50:13,840 --> 00:50:14,919 That's my answer. Thank you. 1411 00:50:16,990 --> 00:50:18,999 Thank you. They look huge. 1412 00:50:19,000 --> 00:50:20,000 Hey, look, women. 1413 00:50:21,890 --> 00:50:23,379 You're late. 1414 00:50:23,380 --> 00:50:25,449 I tried to, 1415 00:50:25,450 --> 00:50:27,609 you know, the already on 1416 00:50:27,610 --> 00:50:29,709 the Internet and they have a question 1417 00:50:29,710 --> 00:50:31,779 about women, cats on 1418 00:50:31,780 --> 00:50:33,499 the Internet. So many things. 1419 00:50:33,500 --> 00:50:35,229 OK, I have a lot of questions, but I'll 1420 00:50:35,230 --> 00:50:36,230 limit it to one 1421 00:50:37,840 --> 00:50:39,069 to sort of touch what you were saying 1422 00:50:39,070 --> 00:50:40,840 about you being super important. 1423 00:50:41,890 --> 00:50:43,479 I found even during the course of this 1424 00:50:43,480 --> 00:50:45,489 conference, it's been challenging talking 1425 00:50:45,490 --> 00:50:47,739 to people with a really strong technical 1426 00:50:47,740 --> 00:50:49,809 focus on the importance of U X and 1427 00:50:49,810 --> 00:50:51,909 actually, you know, adopting 1428 00:50:51,910 --> 00:50:53,589 and using technology useful. 1429 00:50:53,590 --> 00:50:56,229 And so what would your persuasive 1430 00:50:56,230 --> 00:50:58,479 argument to technically minded 1431 00:50:58,480 --> 00:51:00,549 people be for, like, you know, if 1432 00:51:00,550 --> 00:51:01,599 you had to do the hard sell? 1433 00:51:03,370 --> 00:51:04,809 I'm not so good at that, but I'm 1434 00:51:04,810 --> 00:51:07,659 empirical or 1435 00:51:07,660 --> 00:51:09,429 empirically persuasive, you know, Moxie 1436 00:51:09,430 --> 00:51:10,659 Marlinspike. I love that guy. 1437 00:51:10,660 --> 00:51:11,919 Is he here? 1438 00:51:11,920 --> 00:51:13,989 Moxy Marlinspike gave a talk 1439 00:51:13,990 --> 00:51:14,990 once and he said 1440 00:51:16,720 --> 00:51:18,909 the strategy for the first sort of era 1441 00:51:18,910 --> 00:51:21,189 of the cypherpunk project was, we'll 1442 00:51:21,190 --> 00:51:23,109 make tools that are really good for us to 1443 00:51:23,110 --> 00:51:25,359 use step two. 1444 00:51:25,360 --> 00:51:27,010 We'll make everyone else be like us. 1445 00:51:28,060 --> 00:51:29,060 Right. 1446 00:51:29,620 --> 00:51:30,789 And it was like, oh, you're right. 1447 00:51:30,790 --> 00:51:32,229 That was what we were doing back then, 1448 00:51:32,230 --> 00:51:33,589 wasn't it? Yeah. 1449 00:51:33,590 --> 00:51:35,679 So I mean I mean, I was part of 1450 00:51:35,680 --> 00:51:37,269 that mia culpa. 1451 00:51:38,350 --> 00:51:40,449 So empirically, what we've 1452 00:51:40,450 --> 00:51:42,789 learned in the last, you know, 15 years 1453 00:51:42,790 --> 00:51:45,039 is that you is king 1454 00:51:45,040 --> 00:51:47,259 and network effects, positive network 1455 00:51:47,260 --> 00:51:49,449 effects are king. So that's why Facebook 1456 00:51:49,450 --> 00:51:51,279 is super duper important in diaspora is 1457 00:51:51,280 --> 00:51:52,280 not. 1458 00:51:55,080 --> 00:51:56,089 Is that good enough answer? 1459 00:51:56,090 --> 00:51:57,239 Yeah, thank you. 1460 00:51:58,510 --> 00:52:00,609 So now we'll have to take 1461 00:52:00,610 --> 00:52:02,389 that question from the Internet. 1462 00:52:02,390 --> 00:52:04,389 We'll be right in my my voice, it might 1463 00:52:04,390 --> 00:52:05,859 be from a woman that we'll never know. 1464 00:52:07,300 --> 00:52:08,259 Thank you. 1465 00:52:08,260 --> 00:52:09,909 Two brief questions. 1466 00:52:09,910 --> 00:52:11,589 First one, how can you make a 1467 00:52:11,590 --> 00:52:13,659 cryptocurrency private untraceable 1468 00:52:13,660 --> 00:52:14,679 at the same time? 1469 00:52:14,680 --> 00:52:16,929 And the second one, do you think digital 1470 00:52:16,930 --> 00:52:18,999 currencies might be outlawed? 1471 00:52:19,000 --> 00:52:20,829 And what happens then? 1472 00:52:20,830 --> 00:52:22,899 Good questions. The first one alludes to 1473 00:52:22,900 --> 00:52:25,719 my least favorite tweet that I ever made 1474 00:52:25,720 --> 00:52:28,119 where I said we could make easy cash, 1475 00:52:28,120 --> 00:52:29,709 private, untraceable sums. 1476 00:52:29,710 --> 00:52:32,019 I forget exactly how I put it, but 1477 00:52:32,020 --> 00:52:34,059 if you read the whole thread instead of 1478 00:52:34,060 --> 00:52:36,759 just the tweet, what 1479 00:52:36,760 --> 00:52:38,139 I was saying, that 1480 00:52:39,520 --> 00:52:41,589 this will probably work at 1481 00:52:41,590 --> 00:52:43,779 least as long as the criminals whom I 1482 00:52:43,780 --> 00:52:46,119 was complaining about at the time 1483 00:52:46,120 --> 00:52:48,399 want to cash out to Fiat, 1484 00:52:48,400 --> 00:52:49,719 because the way our whole 1485 00:52:50,740 --> 00:52:52,690 financial system works, both with 1486 00:52:53,770 --> 00:52:56,349 paper cash and bank transfers 1487 00:52:56,350 --> 00:52:58,539 and swift and everything else 1488 00:52:58,540 --> 00:53:00,069 and credit cards and everything else, is 1489 00:53:00,070 --> 00:53:02,169 that the the gateway 1490 00:53:02,170 --> 00:53:04,779 between the different networks 1491 00:53:04,780 --> 00:53:06,729 is controlled by financial institutions. 1492 00:53:06,730 --> 00:53:09,669 And it's the financial institutions job 1493 00:53:09,670 --> 00:53:12,039 to spy on and report 1494 00:53:12,040 --> 00:53:13,749 on their customers on behalf of their 1495 00:53:13,750 --> 00:53:14,750 local governments 1496 00:53:15,850 --> 00:53:18,189 anyway. So basically, I guess my argument 1497 00:53:18,190 --> 00:53:20,349 is the cash and 1498 00:53:20,350 --> 00:53:22,719 bitcoin are not really different 1499 00:53:22,720 --> 00:53:24,909 or really much worse for that 1500 00:53:24,910 --> 00:53:27,009 kind of regulation than 1501 00:53:27,010 --> 00:53:28,839 the whole rest of the current system is, 1502 00:53:28,840 --> 00:53:29,919 if that makes sense. 1503 00:53:29,920 --> 00:53:31,209 And the other question was, will 1504 00:53:31,210 --> 00:53:32,759 governments outlaw cryptocurrency? 1505 00:53:32,760 --> 00:53:33,729 That's a really good question. 1506 00:53:33,730 --> 00:53:35,979 And we've already gotten empirical 1507 00:53:35,980 --> 00:53:37,899 evidence about that because some have, 1508 00:53:37,900 --> 00:53:40,119 like China, 1509 00:53:40,120 --> 00:53:41,230 has outlawed 1510 00:53:43,300 --> 00:53:45,519 various uses of cryptocurrency. 1511 00:53:45,520 --> 00:53:47,589 South Korea has outlawed like two out 1512 00:53:47,590 --> 00:53:49,389 of three uses of cryptocurrency, but has 1513 00:53:49,390 --> 00:53:51,759 allowed the third. 1514 00:53:51,760 --> 00:53:53,889 Venezuela doesn't really have laws, but 1515 00:53:53,890 --> 00:53:56,019 the police go around extorting miners and 1516 00:53:56,020 --> 00:53:57,159 stealing their money. 1517 00:53:58,960 --> 00:54:01,029 Russia, like every other day, they put 1518 00:54:01,030 --> 00:54:02,469 out another announcement from a different 1519 00:54:02,470 --> 00:54:03,849 part of the Russian government saying 1520 00:54:03,850 --> 00:54:05,979 they will or will not outlaw 1521 00:54:05,980 --> 00:54:06,980 crypto currencies. 1522 00:54:08,830 --> 00:54:10,629 And at the same time, other countries 1523 00:54:10,630 --> 00:54:12,279 like Japan is the leading example. 1524 00:54:12,280 --> 00:54:13,749 But a lot of other countries, big and 1525 00:54:13,750 --> 00:54:15,579 small, are making completely different 1526 00:54:15,580 --> 00:54:17,109 sorts of policies. So that's pretty 1527 00:54:17,110 --> 00:54:18,939 interesting patchwork of different 1528 00:54:18,940 --> 00:54:19,940 policies. 1529 00:54:20,710 --> 00:54:22,509 My prediction for the United States is 1530 00:54:22,510 --> 00:54:24,489 that there no way you're going to outlaw 1531 00:54:24,490 --> 00:54:26,019 cryptocurrency in the United States and 1532 00:54:26,020 --> 00:54:27,909 it's one of the most important countries 1533 00:54:27,910 --> 00:54:28,910 by this measure 1534 00:54:30,100 --> 00:54:31,759 and that they're heading towards instead 1535 00:54:31,760 --> 00:54:33,279 legitimizing the more and more. 1536 00:54:36,480 --> 00:54:38,609 Jay, back to microphone 1537 00:54:38,610 --> 00:54:39,610 one. 1538 00:54:41,170 --> 00:54:42,909 You didn't tell us anything about this 1539 00:54:42,910 --> 00:54:44,859 ceremony, maybe you want to say something 1540 00:54:44,860 --> 00:54:45,879 about that. 1541 00:54:45,880 --> 00:54:47,829 Thanks for saying that, because I forgot 1542 00:54:47,830 --> 00:54:50,229 to mention that there's a ceremony like 1543 00:54:50,230 --> 00:54:52,269 training session happening today. 1544 00:54:52,270 --> 00:54:53,589 At some point, I guess it'll be on the 1545 00:54:53,590 --> 00:54:55,659 schedule as a self organized event. 1546 00:54:55,660 --> 00:54:57,879 But the ceremony is this really 1547 00:54:57,880 --> 00:54:58,989 complicated thing. We don't have time to 1548 00:54:58,990 --> 00:55:01,329 explain where the kind of 1549 00:55:01,330 --> 00:55:03,549 the kind of zero knowledge proofs used 1550 00:55:03,550 --> 00:55:05,819 in Vikash. You're required to generate 1551 00:55:05,820 --> 00:55:07,779 the certain public like cryptographic 1552 00:55:07,780 --> 00:55:09,879 value, and you want to make sure it 1553 00:55:09,880 --> 00:55:11,979 was generated in a correct way so that 1554 00:55:11,980 --> 00:55:13,449 nobody could insert a back door into 1555 00:55:13,450 --> 00:55:14,769 cryptographic value. 1556 00:55:14,770 --> 00:55:16,569 And so the ceremony is a process to get 1557 00:55:16,570 --> 00:55:19,029 multiple people who are all like 1558 00:55:19,030 --> 00:55:20,829 preventing each other from inserting a 1559 00:55:20,830 --> 00:55:22,360 back door. So the more people like 1560 00:55:23,530 --> 00:55:26,139 an attacker would have to compromise all 1561 00:55:26,140 --> 00:55:29,259 of the participants and 1562 00:55:29,260 --> 00:55:31,449 surreptitiously backdoor all 1563 00:55:31,450 --> 00:55:33,819 of their computers at once in order to 1564 00:55:33,820 --> 00:55:35,769 get a back door into the cryptographic 1565 00:55:35,770 --> 00:55:36,699 value. 1566 00:55:36,700 --> 00:55:38,889 And we are we already did this more 1567 00:55:38,890 --> 00:55:40,719 than a year ago for for the first release 1568 00:55:40,720 --> 00:55:42,009 of the cash. But we're currently in the 1569 00:55:42,010 --> 00:55:44,199 process of doing it again with a lot more 1570 00:55:44,200 --> 00:55:46,059 people, because the first time around for 1571 00:55:46,060 --> 00:55:48,639 performance computational 1572 00:55:48,640 --> 00:55:51,069 cost reasons, we couldn't only handle six 1573 00:55:51,070 --> 00:55:52,809 people and the first ceremony. 1574 00:55:52,810 --> 00:55:53,799 And right now we're doing another 1575 00:55:53,800 --> 00:55:55,239 ceremony which should be able to handle 1576 00:55:55,240 --> 00:55:57,250 any number of people, like practically 1577 00:55:58,570 --> 00:56:00,219 at least 100 maybe, and 1578 00:56:03,160 --> 00:56:05,469 even more than 100 people show 1579 00:56:05,470 --> 00:56:06,369 up and offer to help. 1580 00:56:06,370 --> 00:56:07,869 Then we could probably do that, too. 1581 00:56:07,870 --> 00:56:10,449 But but it also 1582 00:56:10,450 --> 00:56:12,789 the new ceremony is not just for XXIII's, 1583 00:56:12,790 --> 00:56:14,709 for it's useful for this kind of 1584 00:56:14,710 --> 00:56:15,759 efficient general purpose. 1585 00:56:15,760 --> 00:56:17,259 Zero knowledge proof for any other 1586 00:56:17,260 --> 00:56:18,849 cryptocurrency or even for non 1587 00:56:18,850 --> 00:56:20,949 cryptocurrency is for proving the 1588 00:56:20,950 --> 00:56:23,379 correctness of your identity 1589 00:56:23,380 --> 00:56:25,239 and some kind of future government ID 1590 00:56:25,240 --> 00:56:27,459 system or proving 1591 00:56:27,460 --> 00:56:29,079 that some kind of server computed 1592 00:56:29,080 --> 00:56:30,279 correctly on your data. 1593 00:56:30,280 --> 00:56:31,569 So anyway, it's just general purpose 1594 00:56:31,570 --> 00:56:32,859 here. Knowledge proofs, which are a 1595 00:56:32,860 --> 00:56:35,079 really powerful, interesting new tool. 1596 00:56:35,080 --> 00:56:36,939 And if you look in the schedule, I'm 1597 00:56:36,940 --> 00:56:38,919 sorry, I don't know if anyone knows, but 1598 00:56:38,920 --> 00:56:40,270 there's supposed to be a 1599 00:56:41,800 --> 00:56:44,289 zero knowledge ceremony, 1600 00:56:44,290 --> 00:56:46,269 too, so that you can participate in the 1601 00:56:46,270 --> 00:56:48,639 current second generation ceremony. 1602 00:56:48,640 --> 00:56:49,959 And it supposed to be I think it's six 1603 00:56:49,960 --> 00:56:51,399 thirty today. 1604 00:56:51,400 --> 00:56:52,599 It's right after this time. 1605 00:56:52,600 --> 00:56:53,769 Right after this talk. 1606 00:56:53,770 --> 00:56:54,770 Thank you. 1607 00:56:55,750 --> 00:56:58,059 And you are now responsible for another 1608 00:56:58,060 --> 00:57:00,249 50 meters along the line 1609 00:57:00,250 --> 00:57:02,319 somewhere. It's probably for 1610 00:57:02,320 --> 00:57:03,519 the ceremony. 1611 00:57:03,520 --> 00:57:05,709 I'm responsible for one for 1612 00:57:05,710 --> 00:57:07,030 the line to the ceremony. 1613 00:57:08,830 --> 00:57:09,909 I didn't understand. 1614 00:57:09,910 --> 00:57:12,129 Sorry. All right. 1615 00:57:12,130 --> 00:57:13,839 Let's take another question, OK? 1616 00:57:17,080 --> 00:57:18,459 Involve me being responsible for 1617 00:57:18,460 --> 00:57:19,959 something, so I'm happy to not know what 1618 00:57:19,960 --> 00:57:21,999 it was, you're responsible for a lot of 1619 00:57:22,000 --> 00:57:22,969 things by now, you know? 1620 00:57:22,970 --> 00:57:23,970 Yeah. 1621 00:57:25,790 --> 00:57:26,960 Including answering more questions. 1622 00:57:29,080 --> 00:57:30,519 I'm responsible for a lot of things right 1623 00:57:30,520 --> 00:57:31,649 now, including answering more, a 1624 00:57:31,650 --> 00:57:34,089 microphone, pick a microphone, 1625 00:57:34,090 --> 00:57:35,529 I pick Debra. 1626 00:57:35,530 --> 00:57:37,629 OK, it seems 1627 00:57:37,630 --> 00:57:39,489 like centralized protocols are winning. 1628 00:57:39,490 --> 00:57:42,609 I mean, in social networks and 1629 00:57:42,610 --> 00:57:44,529 in payment systems that are in a very 1630 00:57:44,530 --> 00:57:45,609 entrenched position. 1631 00:57:45,610 --> 00:57:47,709 You have these mobile 1632 00:57:47,710 --> 00:57:48,789 networks like MySpace. 1633 00:57:48,790 --> 00:57:50,290 I've got my own thing. 1634 00:57:51,580 --> 00:57:53,889 Do decentralized protocols 1635 00:57:53,890 --> 00:57:55,989 and systems have sufficient 1636 00:57:55,990 --> 00:57:57,909 advantages that they are going to take 1637 00:57:57,910 --> 00:58:00,009 over? That's a really super great 1638 00:58:00,010 --> 00:58:01,629 question. I don't know for sure. 1639 00:58:01,630 --> 00:58:04,329 And one I mean, so the pessimistic 1640 00:58:04,330 --> 00:58:06,489 thing, like I'm a veteran of trying 1641 00:58:06,490 --> 00:58:08,919 to produce decentralized privacy, 1642 00:58:08,920 --> 00:58:10,719 preserving user, protecting things that 1643 00:58:10,720 --> 00:58:12,879 turn out not 1644 00:58:12,880 --> 00:58:14,949 to be as appealing as the centralized 1645 00:58:14,950 --> 00:58:15,950 user 1646 00:58:17,050 --> 00:58:19,809 vulnerable, making alternative. 1647 00:58:19,810 --> 00:58:21,759 So the pessimistic answer is no. 1648 00:58:21,760 --> 00:58:24,039 Sure. Like as soon as 1649 00:58:24,040 --> 00:58:26,259 as soon as Bitcoin and if you humanzee 1650 00:58:26,260 --> 00:58:28,029 cash turn out to be a real threat, then 1651 00:58:28,030 --> 00:58:29,589 like Facebook will just make Facebook and 1652 00:58:29,590 --> 00:58:31,299 everyone use that. But there's a better 1653 00:58:31,300 --> 00:58:32,829 answer, which is that those centralized 1654 00:58:32,830 --> 00:58:34,719 systems, they do, they have the ability 1655 00:58:34,720 --> 00:58:36,849 to scale up really high and fast and 1656 00:58:36,850 --> 00:58:38,499 scale in terms of the network effect 1657 00:58:38,500 --> 00:58:40,329 seems to be the most important thing. 1658 00:58:40,330 --> 00:58:42,369 But they also have like a self limiting 1659 00:58:42,370 --> 00:58:44,259 factor, like Facebook can't get much 1660 00:58:44,260 --> 00:58:45,159 bigger than it is. 1661 00:58:45,160 --> 00:58:47,289 Right, because I don't 1662 00:58:47,290 --> 00:58:48,639 know, because different countries are 1663 00:58:48,640 --> 00:58:50,949 different people or different 1664 00:58:50,950 --> 00:58:53,319 other social networks aren't willing 1665 00:58:53,320 --> 00:58:54,759 to join it or something. I don't know the 1666 00:58:54,760 --> 00:58:57,069 same with like religions and 1667 00:58:57,070 --> 00:58:59,499 nations, like nations or super awesome. 1668 00:58:59,500 --> 00:59:00,489 And they're very high scale. 1669 00:59:00,490 --> 00:59:01,749 And there's a lot of value from having 1670 00:59:01,750 --> 00:59:03,459 everyone be part of the same nation. 1671 00:59:03,460 --> 00:59:04,989 But they're also kind of like self 1672 00:59:04,990 --> 00:59:06,399 limiting, like the United States can't 1673 00:59:06,400 --> 00:59:08,349 get it much bigger than it is no matter 1674 00:59:08,350 --> 00:59:09,350 how it tries. 1675 00:59:11,280 --> 00:59:13,649 Anyway, and so I kind of hope that 1676 00:59:13,650 --> 00:59:15,869 decentralized things can break, that 1677 00:59:15,870 --> 00:59:18,029 ceiling can be bigger than that, because 1678 00:59:18,030 --> 00:59:20,489 everyone can be willing to rely 1679 00:59:20,490 --> 00:59:22,769 on a decentralized network even 1680 00:59:22,770 --> 00:59:24,899 when they are unwilling to share a nation 1681 00:59:24,900 --> 00:59:26,999 or a religion or a language or an social 1682 00:59:27,000 --> 00:59:28,440 network or whatever. 1683 00:59:31,210 --> 00:59:31,779 I hope so. 1684 00:59:31,780 --> 00:59:33,969 Thank you. Thanks. 1685 00:59:33,970 --> 00:59:36,159 We've been told that we are consistently 1686 00:59:36,160 --> 00:59:38,409 ignoring the microphone number two. 1687 00:59:38,410 --> 00:59:40,599 OK, I'm so sorry for number 1688 00:59:40,600 --> 00:59:41,600 two 1689 00:59:44,140 --> 00:59:45,789 now going to be number two. 1690 00:59:45,790 --> 00:59:46,989 Sorry. 1691 00:59:46,990 --> 00:59:49,209 Have have there been any useful 1692 00:59:49,210 --> 00:59:51,459 applications for society for 1693 00:59:51,460 --> 00:59:53,829 cryptocurrency so far besides 1694 00:59:53,830 --> 00:59:55,929 maybe donating to organizations 1695 00:59:55,930 --> 00:59:57,909 like WikiLeaks where it's blocked, which 1696 00:59:57,910 --> 01:00:00,189 can't be done like applications 1697 01:00:00,190 --> 01:00:02,109 but can't be done by traditional 1698 01:00:02,110 --> 01:00:03,110 currencies? 1699 01:00:04,120 --> 01:00:05,979 Yeah, well, I think the donating one is a 1700 01:00:05,980 --> 01:00:08,349 good, useful example 1701 01:00:08,350 --> 01:00:09,549 and that's still ongoing. 1702 01:00:09,550 --> 01:00:11,649 There are a lot of organizations that 1703 01:00:11,650 --> 01:00:13,419 maybe not because they're being targeted 1704 01:00:13,420 --> 01:00:15,669 by a national a powerful major national 1705 01:00:15,670 --> 01:00:17,199 government, but for other reasons they 1706 01:00:17,200 --> 01:00:19,359 can't accept like people 1707 01:00:19,360 --> 01:00:21,639 in their country or whatever. 1708 01:00:21,640 --> 01:00:24,039 I've also seen in the 1709 01:00:24,040 --> 01:00:26,109 morass hell 1710 01:00:26,110 --> 01:00:28,599 of Venezuela how both the fiat currency 1711 01:00:28,600 --> 01:00:30,939 and the government and the banking 1712 01:00:30,940 --> 01:00:34,239 system are all inoperable. 1713 01:00:34,240 --> 01:00:36,549 People can use crypto currencies to 1714 01:00:36,550 --> 01:00:38,919 transfer money across the border 1715 01:00:38,920 --> 01:00:40,510 in Venezuela, but that's of limited 1716 01:00:41,530 --> 01:00:42,849 scope and value right now. 1717 01:00:42,850 --> 01:00:43,899 But it's more than nothing. 1718 01:00:45,690 --> 01:00:46,719 I like your question because it was 1719 01:00:46,720 --> 01:00:47,799 empirical. 1720 01:00:47,800 --> 01:00:50,079 Other empirical uses 1721 01:00:50,080 --> 01:00:51,520 crypto could make people happier. 1722 01:00:54,190 --> 01:00:55,190 Besides that, 1723 01:00:56,530 --> 01:00:57,669 there's probably more that I'm not 1724 01:00:57,670 --> 01:00:58,670 thinking of. 1725 01:01:00,550 --> 01:01:01,989 I tried so far pretty hard. 1726 01:01:04,330 --> 01:01:06,189 So who is it that we're overlooking that 1727 01:01:06,190 --> 01:01:08,499 we're supposed to like, 1728 01:01:08,500 --> 01:01:10,749 OK, so people at the microphone 1729 01:01:10,750 --> 01:01:13,179 number six are jumping and waving there 1730 01:01:13,180 --> 01:01:14,949 butt who is where you guys are shouting 1731 01:01:14,950 --> 01:01:15,950 out? 1732 01:01:16,420 --> 01:01:17,739 Why are they shouting five? 1733 01:01:17,740 --> 01:01:19,779 Let's say they just shout the loudest. 1734 01:01:19,780 --> 01:01:21,969 Well, the five is popular, I guess. 1735 01:01:21,970 --> 01:01:23,749 Five, yeah. 1736 01:01:29,070 --> 01:01:30,070 Thanks. 1737 01:01:30,950 --> 01:01:33,679 So my question was concerning, 1738 01:01:33,680 --> 01:01:35,869 why should I choose to 1739 01:01:35,870 --> 01:01:38,299 make a contract on Ethereum 1740 01:01:38,300 --> 01:01:40,609 or any other block chain 1741 01:01:40,610 --> 01:01:42,769 compared to a classic 1742 01:01:42,770 --> 01:01:44,929 yeah contract 1743 01:01:44,930 --> 01:01:45,979 not on the block chain. 1744 01:01:45,980 --> 01:01:48,349 I mean, I have all these disadvantages, 1745 01:01:48,350 --> 01:01:50,989 a codas writing the contract, which 1746 01:01:50,990 --> 01:01:53,809 most of the time not legal experts, 1747 01:01:53,810 --> 01:01:55,939 just a single block can 1748 01:01:55,940 --> 01:01:56,929 problem. 1749 01:01:56,930 --> 01:01:58,579 So let me ask you, I think 1750 01:01:59,990 --> 01:02:01,339 they shouldn't have called them smart 1751 01:02:01,340 --> 01:02:03,499 contracts and they shouldn't have called 1752 01:02:03,500 --> 01:02:04,729 them contracts. They should just call 1753 01:02:04,730 --> 01:02:06,799 them programs because we know what those 1754 01:02:06,800 --> 01:02:08,119 are like. Right. 1755 01:02:08,120 --> 01:02:09,589 So the point in my opinion. 1756 01:02:09,590 --> 01:02:10,590 The point. 1757 01:02:13,420 --> 01:02:16,269 A very enthusiastic crowd 1758 01:02:16,270 --> 01:02:18,489 anyway, so maybe 1759 01:02:18,490 --> 01:02:20,199 you can use programs to accomplish some 1760 01:02:20,200 --> 01:02:21,519 of the same things that you would have 1761 01:02:21,520 --> 01:02:23,289 used a contract for, I don't know, maybe 1762 01:02:23,290 --> 01:02:24,969 not. There's a lot of caveats, but that's 1763 01:02:24,970 --> 01:02:25,970 my starting point. 1764 01:02:27,440 --> 01:02:29,269 Thanks, yeah. 1765 01:02:29,270 --> 01:02:31,579 OK, so there is an acrobatic 1766 01:02:31,580 --> 01:02:33,559 number happening next to the microphone 1767 01:02:33,560 --> 01:02:35,839 number six, I think we have 1768 01:02:35,840 --> 01:02:36,840 to get down to. 1769 01:02:41,120 --> 01:02:42,120 Wow. 1770 01:02:42,920 --> 01:02:45,049 Could you please explain a bit about how 1771 01:02:45,050 --> 01:02:46,129 Zeki snarks work 1772 01:02:51,800 --> 01:02:53,989 Zik snarks are a very 1773 01:02:53,990 --> 01:02:55,969 sophisticated cryptographic technique, so 1774 01:02:55,970 --> 01:02:57,619 it's hard for me to understand myself, 1775 01:02:57,620 --> 01:02:58,620 much less explain. 1776 01:02:59,840 --> 01:03:02,269 There's one 1777 01:03:02,270 --> 01:03:04,519 component of it that I think is helpful 1778 01:03:04,520 --> 01:03:06,859 for people, which is the notion 1779 01:03:06,860 --> 01:03:08,179 of a zero knowledge proof. 1780 01:03:08,180 --> 01:03:10,849 Bye bye bye metaphor. 1781 01:03:10,850 --> 01:03:11,850 Which is that. 1782 01:03:14,890 --> 01:03:15,890 If he. 1783 01:03:16,700 --> 01:03:18,859 If you're colorblind and 1784 01:03:18,860 --> 01:03:21,019 I have to billiard balls, that's 1785 01:03:21,020 --> 01:03:23,119 one's red and one's green, and 1786 01:03:23,120 --> 01:03:24,769 I want to prove to you that they're 1787 01:03:24,770 --> 01:03:26,779 different from each other, but not by 1788 01:03:26,780 --> 01:03:28,099 telling you this is the red one. 1789 01:03:29,450 --> 01:03:31,609 So this is a weird case, but bear with 1790 01:03:31,610 --> 01:03:33,859 me, so O0 is proof 1791 01:03:33,860 --> 01:03:35,479 is a weird concept because it means that 1792 01:03:35,480 --> 01:03:36,769 you can prove something to someone 1793 01:03:36,770 --> 01:03:38,149 without giving them any other 1794 01:03:38,150 --> 01:03:40,249 information. Other than that, the thing 1795 01:03:40,250 --> 01:03:41,929 you said is true. 1796 01:03:41,930 --> 01:03:42,930 So it's kind of like. 1797 01:03:43,850 --> 01:03:45,919 I am a truth teller, and it's impossible 1798 01:03:45,920 --> 01:03:47,869 for me to lie, sort of, 1799 01:03:49,290 --> 01:03:52,069 but you want to not expose 1800 01:03:52,070 --> 01:03:54,319 any other information. So with 1801 01:03:54,320 --> 01:03:56,419 the billable example, I might want to 1802 01:03:56,420 --> 01:03:58,219 prove to you that I have two different 1803 01:03:58,220 --> 01:04:00,409 colored balls, but 1804 01:04:00,410 --> 01:04:01,849 I don't want to give you any information 1805 01:04:01,850 --> 01:04:02,929 about which ones. 1806 01:04:02,930 --> 01:04:04,369 The red one. 1807 01:04:04,370 --> 01:04:06,769 And the way you can accomplish that 1808 01:04:06,770 --> 01:04:09,559 is I can give you the balls 1809 01:04:09,560 --> 01:04:10,969 and I can ask you to hold them behind 1810 01:04:10,970 --> 01:04:14,299 your back and swap them back and forth 1811 01:04:14,300 --> 01:04:15,289 or don't swap them. 1812 01:04:15,290 --> 01:04:16,609 But you're choosing whether or not to 1813 01:04:16,610 --> 01:04:18,079 swap them. And you're not telling me. 1814 01:04:18,080 --> 01:04:20,389 And then you reveal them to me. 1815 01:04:20,390 --> 01:04:22,549 And then I just tell you whether or 1816 01:04:22,550 --> 01:04:24,289 not you swap them. 1817 01:04:24,290 --> 01:04:25,699 But I don't tell you that's the red one, 1818 01:04:25,700 --> 01:04:27,019 because that's the thing I don't want to 1819 01:04:27,020 --> 01:04:28,020 give away. 1820 01:04:28,670 --> 01:04:30,229 So when I do that, so you bring it out 1821 01:04:30,230 --> 01:04:31,699 from behind your back and I say if you 1822 01:04:31,700 --> 01:04:33,739 swapped them and then you think to 1823 01:04:33,740 --> 01:04:36,289 yourself, well, he might 1824 01:04:36,290 --> 01:04:37,369 they might both be green 1825 01:04:38,390 --> 01:04:40,129 and he's just fooling me and he just 1826 01:04:40,130 --> 01:04:41,419 guessed. 1827 01:04:41,420 --> 01:04:43,039 Right. So then what we do is we do it 1828 01:04:43,040 --> 01:04:44,329 again. You hold him behind your back 1829 01:04:44,330 --> 01:04:45,829 again and you swap them or don't you 1830 01:04:45,830 --> 01:04:46,969 bring them out again? And this time I 1831 01:04:46,970 --> 01:04:48,769 tell you, no, you didn't stop them this 1832 01:04:48,770 --> 01:04:49,879 time. 1833 01:04:49,880 --> 01:04:51,139 So you think to yourself, well, maybe he 1834 01:04:51,140 --> 01:04:53,389 gets twice, but then you keep doing 1835 01:04:53,390 --> 01:04:55,129 that over and over. So you do it like 100 1836 01:04:55,130 --> 01:04:57,109 times in a row. And every time you do it, 1837 01:04:57,110 --> 01:04:58,939 I correctly tell you whether or not you 1838 01:04:58,940 --> 01:05:00,259 swap them, but I never say that's the 1839 01:05:00,260 --> 01:05:01,260 right one. 1840 01:05:01,850 --> 01:05:03,949 At the end of this, you're convinced 1841 01:05:03,950 --> 01:05:05,959 there must be two different colors, but 1842 01:05:05,960 --> 01:05:07,909 you've gotten zero information about 1843 01:05:07,910 --> 01:05:09,049 which ones, the red one. 1844 01:05:09,050 --> 01:05:11,329 So that's a very 1845 01:05:11,330 --> 01:05:13,669 simple metaphor that shows the concept 1846 01:05:13,670 --> 01:05:15,289 of a zero knowledge proof. 1847 01:05:15,290 --> 01:05:17,569 And there's still like 15 math ideas, 1848 01:05:17,570 --> 01:05:19,159 half of which I don't understand to 1849 01:05:19,160 --> 01:05:20,160 explain the case marks. 1850 01:05:21,890 --> 01:05:22,890 Thank you. 1851 01:05:25,630 --> 01:05:27,399 But by the way, there's an explainer 1852 01:05:27,400 --> 01:05:29,649 series on our website, Zeder Cash, 1853 01:05:29,650 --> 01:05:32,159 such blog, and go to the 1854 01:05:32,160 --> 01:05:34,329 section explainers and that has much 1855 01:05:34,330 --> 01:05:35,359 more technical details. 1856 01:05:35,360 --> 01:05:36,360 The other question, 1857 01:05:39,040 --> 01:05:41,139 it's not OK. 1858 01:05:41,140 --> 01:05:43,359 We have people next to the microphone 1859 01:05:43,360 --> 01:05:45,999 number three, who don't shout, 1860 01:05:46,000 --> 01:05:47,889 don't dance. They just stand there in 1861 01:05:47,890 --> 01:05:49,989 silence. And I think we should do more 1862 01:05:49,990 --> 01:05:52,389 patience and modesty 1863 01:05:52,390 --> 01:05:54,639 by letting them ask the last question 1864 01:05:54,640 --> 01:05:55,640 for this talk. 1865 01:05:57,460 --> 01:05:58,899 Hello. Yeah, thanks for your talk. 1866 01:05:58,900 --> 01:06:00,429 I actually have a bunch of questions, but 1867 01:06:00,430 --> 01:06:01,430 I'm just going to ask two. 1868 01:06:02,830 --> 01:06:03,830 So 1869 01:06:05,770 --> 01:06:07,599 two questions. Let's talk talking about 1870 01:06:07,600 --> 01:06:08,829 centralization. 1871 01:06:08,830 --> 01:06:10,029 What do you think about the growing 1872 01:06:10,030 --> 01:06:12,069 inequality? So basically, you have a few 1873 01:06:12,070 --> 01:06:14,109 people who hold most of the bitcoins are 1874 01:06:14,110 --> 01:06:16,209 also other coins and who are able 1875 01:06:16,210 --> 01:06:18,309 to decide which, you 1876 01:06:18,310 --> 01:06:20,199 know, if it's going to fluctuate, how 1877 01:06:20,200 --> 01:06:21,909 much, and it's going to have a huge 1878 01:06:21,910 --> 01:06:24,009 effect. Yeah, and the second 1879 01:06:24,010 --> 01:06:26,109 one, I recently read in the news that 1880 01:06:26,110 --> 01:06:28,239 you started working together with JP 1881 01:06:28,240 --> 01:06:29,259 Morgan. 1882 01:06:29,260 --> 01:06:31,569 So, I mean, 1883 01:06:31,570 --> 01:06:32,799 I'm confused. 1884 01:06:32,800 --> 01:06:34,719 What was what why would you do that? 1885 01:06:34,720 --> 01:06:36,609 And don't you think that the financial 1886 01:06:36,610 --> 01:06:38,829 world will eventually destroy most 1887 01:06:38,830 --> 01:06:40,959 cryptocurrency because they can. 1888 01:06:42,540 --> 01:06:43,540 OK, the 1889 01:06:45,000 --> 01:06:47,519 first question, the second question 1890 01:06:47,520 --> 01:06:49,649 is why would I why would we work with 1891 01:06:49,650 --> 01:06:50,650 J.P.Morgan? 1892 01:06:55,530 --> 01:06:56,530 We. 1893 01:06:58,380 --> 01:07:00,479 We have been able to help 1894 01:07:00,480 --> 01:07:03,089 them make this block chain 1895 01:07:03,090 --> 01:07:05,309 that they could potentially 1896 01:07:05,310 --> 01:07:07,439 use for their enterprize block 1897 01:07:07,440 --> 01:07:09,869 chain use cases in the financial 1898 01:07:09,870 --> 01:07:10,870 industry. 1899 01:07:12,830 --> 01:07:15,049 So that might be valuable to them 1900 01:07:15,050 --> 01:07:17,479 or their customers, and 1901 01:07:17,480 --> 01:07:20,029 it was also really helpful 1902 01:07:20,030 --> 01:07:21,030 for. 1903 01:07:22,210 --> 01:07:23,320 Persuading 1904 01:07:24,610 --> 01:07:27,009 people from that world like the 1905 01:07:27,010 --> 01:07:29,859 regulators and the, 1906 01:07:29,860 --> 01:07:31,509 you know, the start ups in the 1907 01:07:31,510 --> 01:07:34,689 enterprises over in USA, 1908 01:07:34,690 --> 01:07:36,579 that I could point to JPMorgan as an 1909 01:07:36,580 --> 01:07:39,129 example of how privacy 1910 01:07:39,130 --> 01:07:40,629 is important for business. 1911 01:07:41,710 --> 01:07:44,169 Privacy is important for commerce because 1912 01:07:44,170 --> 01:07:46,479 a lot of people don't learn from argument 1913 01:07:46,480 --> 01:07:48,639 or theory, they 1914 01:07:48,640 --> 01:07:50,049 only learn from example. 1915 01:07:50,050 --> 01:07:52,269 So it's really useful for me to be able 1916 01:07:52,270 --> 01:07:53,949 to instead of having to go around. 1917 01:07:53,950 --> 01:07:56,019 What I had to do previously was go around 1918 01:07:56,020 --> 01:07:58,179 saying privacy is going 1919 01:07:58,180 --> 01:08:01,779 to be important for normal old mainstream 1920 01:08:01,780 --> 01:08:03,250 taxpaying commerce. 1921 01:08:04,840 --> 01:08:06,159 And after we did that deal with JP 1922 01:08:06,160 --> 01:08:08,259 Morgan, I got to name drop JP Morgan and 1923 01:08:08,260 --> 01:08:10,839 say, for example, this is why 1924 01:08:10,840 --> 01:08:12,729 the most valuable bank in the world is 1925 01:08:12,730 --> 01:08:14,379 working with our technology, because 1926 01:08:14,380 --> 01:08:16,148 privacy is necessary for commerce. 1927 01:08:16,149 --> 01:08:17,499 And that went a lot further with that 1928 01:08:17,500 --> 01:08:19,809 crowd and your other 1929 01:08:19,810 --> 01:08:21,459 and and you said, don't I think the 1930 01:08:21,460 --> 01:08:22,749 financial industry is going to destroy 1931 01:08:22,750 --> 01:08:23,978 cryptocurrency because they can't. 1932 01:08:23,979 --> 01:08:26,419 No, I don't think they can. 1933 01:08:27,609 --> 01:08:28,779 So, no, I don't think they can. 1934 01:08:31,029 --> 01:08:34,568 The first of your questions, 1935 01:08:34,569 --> 01:08:35,569 what was it again was a good one. 1936 01:08:36,550 --> 01:08:37,478 Inequality. 1937 01:08:37,479 --> 01:08:39,278 Oh, yeah. That's a really good one. 1938 01:08:39,279 --> 01:08:41,528 Yeah. I don't have time for anymore. 1939 01:08:41,529 --> 01:08:43,028 It's a really important question. 1940 01:08:43,029 --> 01:08:45,188 And hopefully future technology, 1941 01:08:45,189 --> 01:08:46,599 something, something. But it's definitely 1942 01:08:46,600 --> 01:08:48,099 true. There is a lot of inequality. 1943 01:08:49,790 --> 01:08:51,459 Bob, thank you for the really important 1944 01:08:51,460 --> 01:08:52,599 question. 1945 01:08:52,600 --> 01:08:53,600 Thank you all.