{"version":"1.0.0","segments":[{"startTime":0.209,"endTime":3.042,"body":"(whooshing music)"},{"startTime":6.21,"endTime":10.35,"body":"- Okay, so to understand how"},{"startTime":6.21,"endTime":10.35,"body":"the crypto world operates,"},{"startTime":10.35,"endTime":13.02,"body":"let's start with the"},{"startTime":10.35,"endTime":13.02,"body":"question of ownership."},{"startTime":13.02,"endTime":16.503,"body":"What does it mean when"},{"startTime":13.02,"endTime":16.503,"body":"you say, I own something?"},{"startTime":17.46,"endTime":20.88,"body":"I own something, let's"},{"startTime":17.46,"endTime":20.88,"body":"say, in the physical world,"},{"startTime":20.88,"endTime":22.053,"body":"like a piece of land."},{"startTime":23.28,"endTime":25.203,"body":"Well, in the old days,"},{"startTime":26.37,"endTime":29.73,"body":"it was just a might versus"},{"startTime":26.37,"endTime":29.73,"body":"right kind of situation,"},{"startTime":29.73,"endTime":30.63,"body":"if you own something,"},{"startTime":30.63,"endTime":33.51,"body":"someone stronger than you"},{"startTime":30.63,"endTime":33.51,"body":"could come in, kill you,"},{"startTime":33.51,"endTime":35.403,"body":"take all your land away, or whatever."},{"startTime":36.39,"endTime":40.68,"body":"But then it became a situation"},{"startTime":36.39,"endTime":40.68,"body":"of social norms as well,"},{"startTime":40.68,"endTime":44.64,"body":"for example, if you own a"},{"startTime":40.68,"endTime":44.64,"body":"piece of land here in the UK,"},{"startTime":44.64,"endTime":48.39,"body":"if there's a walk through that land"},{"startTime":48.39,"endTime":51.81,"body":"which has been used for"},{"startTime":48.39,"endTime":51.81,"body":"hundreds of years by people,"},{"startTime":51.81,"endTime":55.2,"body":"they have a right of way"},{"startTime":51.81,"endTime":55.2,"body":"over the land which you own,"},{"startTime":55.2,"endTime":57.66,"body":"so that's also a social norm,"},{"startTime":57.66,"endTime":59.25,"body":"that's saying, I own the land,"},{"startTime":59.25,"endTime":61.71,"body":"but people have the habit of"},{"startTime":59.25,"endTime":61.71,"body":"walking through that land,"},{"startTime":61.71,"endTime":63.153,"body":"they can continue doing it."},{"startTime":64.5,"endTime":66.12,"body":"But there's a third form,"},{"startTime":66.12,"endTime":67.86,"body":"which is the rule of law,"},{"startTime":67.86,"endTime":69.66,"body":"that means if I own something,"},{"startTime":69.66,"endTime":74.253,"body":"I basically have my details"},{"startTime":69.66,"endTime":74.253,"body":"in a database somewhere,"},{"startTime":75.39,"endTime":79.001,"body":"and so that is your title,"},{"startTime":79.001,"endTime":82.08,"body":"if you have a house for example,"},{"startTime":82.08,"endTime":84.69,"body":"you have lawyers who"},{"startTime":82.08,"endTime":84.69,"body":"know where your house is,"},{"startTime":84.69,"endTime":88.38,"body":"it's recorded somewhere on a database."},{"startTime":88.38,"endTime":90.64,"body":"So the question I want to address today is"},{"startTime":91.71,"endTime":94.35,"body":"who maintains the databases?"},{"startTime":94.35,"endTime":95.73,"body":"The first answer, obviously,"},{"startTime":95.73,"endTime":98.283,"body":"is a central authority, maybe government."},{"startTime":99.39,"endTime":101.52,"body":"As a classic example of this,"},{"startTime":101.52,"endTime":104.037,"body":"think of the \"Domesday Book.\""},{"startTime":105.06,"endTime":106.86,"body":"Right after 1066,"},{"startTime":106.86,"endTime":111.69,"body":"when William the Conqueror"},{"startTime":106.86,"endTime":111.69,"body":"came in and invaded England,"},{"startTime":111.69,"endTime":113.4,"body":"probably one of the first examples"},{"startTime":113.4,"endTime":115.77,"body":"of a European national coming into the UK"},{"startTime":115.77,"endTime":117.663,"body":"and taking away good British jobs,"},{"startTime":118.502,"endTime":119.85,"body":"(audience laughs)"},{"startTime":119.85,"endTime":123.75,"body":"he came in, and after"},{"startTime":119.85,"endTime":123.75,"body":"he conquered England,"},{"startTime":123.75,"endTime":125.58,"body":"he instituted the \"Domesday Book,\""},{"startTime":125.58,"endTime":129.33,"body":"which is a central register"},{"startTime":125.58,"endTime":129.33,"body":"of what people owned,"},{"startTime":129.33,"endTime":132.0,"body":"so this is your property,"},{"startTime":129.33,"endTime":132.0,"body":"these are your houses,"},{"startTime":132.0,"endTime":134.55,"body":"this person, in this place, owned this."},{"startTime":134.55,"endTime":136.35,"body":"He did that for the sake of taxes,"},{"startTime":136.35,"endTime":138.123,"body":"but it was a central authority."},{"startTime":139.32,"endTime":141.6,"body":"Today, there's also a whole bunch"},{"startTime":141.6,"endTime":143.07,"body":"of financial intermediaries"},{"startTime":143.07,"endTime":146.58,"body":"who own these databases."},{"startTime":146.58,"endTime":149.37,"body":"If you own shares, for example,"},{"startTime":149.37,"endTime":150.72,"body":"it's recorded somewhere"},{"startTime":150.72,"endTime":152.79,"body":"in some kind of depository institution,"},{"startTime":152.79,"endTime":154.05,"body":"if you have a bank account,"},{"startTime":154.05,"endTime":155.733,"body":"the bank has your details."},{"startTime":157.05,"endTime":159.003,"body":"And the problem is, here,"},{"startTime":159.93,"endTime":163.92,"body":"the trust in these kinds of"},{"startTime":159.93,"endTime":163.92,"body":"databases is a little fragile."},{"startTime":163.92,"endTime":167.16,"body":"Imagine the first one,"},{"startTime":163.92,"endTime":167.16,"body":"the central authority."},{"startTime":167.16,"endTime":168.63,"body":"In many countries,"},{"startTime":168.63,"endTime":171.09,"body":"it still is a question of might and right,"},{"startTime":171.09,"endTime":173.67,"body":"so you own a property,"},{"startTime":173.67,"endTime":174.503,"body":"the government says,"},{"startTime":174.503,"endTime":176.16,"body":"well, I need that land,"},{"startTime":176.16,"endTime":177.63,"body":"they take your land away,"},{"startTime":177.63,"endTime":179.79,"body":"they throw you out onto the street."},{"startTime":179.79,"endTime":181.38,"body":"Perhaps not here in the UK,"},{"startTime":181.38,"endTime":184.203,"body":"but definitely in some"},{"startTime":181.38,"endTime":184.203,"body":"countries around the world."},{"startTime":185.04,"endTime":187.35,"body":"But even if you think"},{"startTime":185.04,"endTime":187.35,"body":"about intermediaries,"},{"startTime":187.35,"endTime":190.593,"body":"banks are not very good at"},{"startTime":187.35,"endTime":190.593,"body":"maintaining databases either."},{"startTime":191.82,"endTime":193.56,"body":"You might think this is an easy job,"},{"startTime":193.56,"endTime":195.36,"body":"I mean, you know, you have a bank account,"},{"startTime":195.36,"endTime":197.88,"body":"you put 100 pounds into your bank account,"},{"startTime":197.88,"endTime":200.4,"body":"how difficult is it for"},{"startTime":197.88,"endTime":200.4,"body":"the bank to type in,"},{"startTime":200.4,"endTime":203.1,"body":"even you can do this in"},{"startTime":200.4,"endTime":203.1,"body":"an Excel spreadsheet,"},{"startTime":203.1,"endTime":205.983,"body":"100 pounds, bank account, and so on?"},{"startTime":206.85,"endTime":209.07,"body":"It isn't, apparently, very easy,"},{"startTime":209.07,"endTime":210.93,"body":"it's incredibly difficult."},{"startTime":210.93,"endTime":213.83,"body":"To take an example, Wells Fargo,"},{"startTime":213.83,"endTime":218.49,"body":"it was recently fined"},{"startTime":213.83,"endTime":218.49,"body":"several million pounds"},{"startTime":218.49,"endTime":221.883,"body":"for messing up the way"},{"startTime":218.49,"endTime":221.883,"body":"it kept its databases."},{"startTime":222.81,"endTime":224.58,"body":"What did it do?"},{"startTime":224.58,"endTime":227.37,"body":"One of my favorite examples of Wells Fargo"},{"startTime":227.37,"endTime":228.9,"body":"was, during COVID,"},{"startTime":228.9,"endTime":229.89,"body":"the government said,"},{"startTime":229.89,"endTime":232.65,"body":"you need to offer loan"},{"startTime":229.89,"endTime":232.65,"body":"modification programs,"},{"startTime":232.65,"endTime":235.23,"body":"for people who cannot"},{"startTime":232.65,"endTime":235.23,"body":"pay back their loans."},{"startTime":235.23,"endTime":237.39,"body":"Wells Fargo looked at their records,"},{"startTime":237.39,"endTime":239.94,"body":"and they found 190 people whom they said,"},{"startTime":239.94,"endTime":241.62,"body":"oh, these are dead people,"},{"startTime":241.62,"endTime":244.95,"body":"so we don't need to offer them"},{"startTime":241.62,"endTime":244.95,"body":"loan modification programs."},{"startTime":244.95,"endTime":247.86,"body":"Now, this was a record keeping error"},{"startTime":247.86,"endTime":251.58,"body":"because these 190 people"},{"startTime":247.86,"endTime":251.58,"body":"were not in fact dead,"},{"startTime":251.58,"endTime":256.29,"body":"so they continued sending in"},{"startTime":251.58,"endTime":256.29,"body":"their checks to Wells Fargo,"},{"startTime":256.29,"endTime":258.81,"body":"and Wells Fargo had one database that said"},{"startTime":258.81,"endTime":260.13,"body":"these are dead people,"},{"startTime":260.13,"endTime":262.8,"body":"they don't need to have a"},{"startTime":260.13,"endTime":262.8,"body":"loan modification program,"},{"startTime":262.8,"endTime":264.24,"body":"and another system that said"},{"startTime":264.24,"endTime":266.583,"body":"these dead people are sending in checks."},{"startTime":267.63,"endTime":270.36,"body":"Maybe ghosts are incredibly"},{"startTime":267.63,"endTime":270.36,"body":"financially responsible,"},{"startTime":270.36,"endTime":271.47,"body":"who knows,"},{"startTime":271.47,"endTime":272.82,"body":"but the point was"},{"startTime":272.82,"endTime":276.0,"body":"banks have a whole"},{"startTime":272.82,"endTime":276.0,"body":"bunch of legacy systems,"},{"startTime":276.0,"endTime":278.61,"body":"written in ancient languages like COBOL,"},{"startTime":278.61,"endTime":280.32,"body":"which don't talk to each other,"},{"startTime":280.32,"endTime":282.18,"body":"so they're not extremely good"},{"startTime":282.18,"endTime":284.55,"body":"at maintaining their own databases,"},{"startTime":284.55,"endTime":286.02,"body":"they can mess up."},{"startTime":286.02,"endTime":289.74,"body":"So there's an alternative"},{"startTime":286.02,"endTime":289.74,"body":"idea in the crypto world,"},{"startTime":289.74,"endTime":294.24,"body":"which is trust a lot of complete strangers"},{"startTime":294.24,"endTime":296.283,"body":"to maintain your database."},{"startTime":298.35,"endTime":299.183,"body":"You're kind of like,"},{"startTime":299.183,"endTime":303.89,"body":"excuse me, is this more"},{"startTime":299.183,"endTime":303.89,"body":"reliable than this?"},{"startTime":304.74,"endTime":307.34,"body":"That's the thing that many"},{"startTime":304.74,"endTime":307.34,"body":"people are worried about,"},{"startTime":308.49,"endTime":310.443,"body":"but that is the essence of crypto."},{"startTime":311.367,"endTime":312.72,"body":"When we talk about this,"},{"startTime":312.72,"endTime":313.68,"body":"what we are doing is,"},{"startTime":313.68,"endTime":315.27,"body":"we have two transactions,"},{"startTime":315.27,"endTime":317.973,"body":"a transaction between"},{"startTime":315.27,"endTime":317.973,"body":"myself and one of you,"},{"startTime":318.9,"endTime":320.85,"body":"and it could be any kind of transaction,"},{"startTime":320.85,"endTime":322.35,"body":"it could be sending money,"},{"startTime":322.35,"endTime":325.47,"body":"it could be writing a legal"},{"startTime":322.35,"endTime":325.47,"body":"contract between two people,"},{"startTime":325.47,"endTime":327.9,"body":"it could be creating a market,"},{"startTime":327.9,"endTime":329.73,"body":"but the essence of all of this is"},{"startTime":329.73,"endTime":331.17,"body":"there's a bunch of strangers"},{"startTime":331.17,"endTime":333.24,"body":"who are economically interested"},{"startTime":333.24,"endTime":337.17,"body":"in keeping all the records safe,"},{"startTime":337.17,"endTime":338.883,"body":"that's the essence of crypto."},{"startTime":339.72,"endTime":343.62,"body":"Now, why are they economically interested"},{"startTime":343.62,"endTime":345.45,"body":"in keeping these records safe?"},{"startTime":345.45,"endTime":349.68,"body":"The answer lies in what you"},{"startTime":345.45,"endTime":349.68,"body":"call a consensus protocol."},{"startTime":349.68,"endTime":350.823,"body":"What does that mean?"},{"startTime":351.93,"endTime":353.913,"body":"Let's suppose I have a transaction,"},{"startTime":354.87,"endTime":357.63,"body":"the transaction would involve me,"},{"startTime":357.63,"endTime":360.183,"body":"say, paying 100 pounds to Victoria."},{"startTime":361.2,"endTime":362.67,"body":"Somebody has to write that,"},{"startTime":362.67,"endTime":365.34,"body":"so basically deduct it from my account,"},{"startTime":365.34,"endTime":367.68,"body":"augment her account by 100 pounds,"},{"startTime":367.68,"endTime":369.66,"body":"and that's the transaction."},{"startTime":369.66,"endTime":372.6,"body":"So you have a bunch of complete strangers"},{"startTime":372.6,"endTime":373.56,"body":"who are now saying,"},{"startTime":373.56,"endTime":374.91,"body":"you know what?"},{"startTime":374.91,"endTime":378.96,"body":"Let's augment one account,"},{"startTime":374.91,"endTime":378.96,"body":"Victoria's account,"},{"startTime":378.96,"endTime":381.51,"body":"let's reduce the amount in my account,"},{"startTime":381.51,"endTime":382.92,"body":"and everybody has to agree"},{"startTime":382.92,"endTime":384.84,"body":"this is the transaction that happened,"},{"startTime":384.84,"endTime":387.903,"body":"100 pounds, not 50, not 110."},{"startTime":388.74,"endTime":389.763,"body":"So how do you do it?"},{"startTime":390.63,"endTime":392.52,"body":"Well, you've got a"},{"startTime":390.63,"endTime":392.52,"body":"whole bunch of strangers"},{"startTime":392.52,"endTime":394.53,"body":"who see that transaction happening,"},{"startTime":394.53,"endTime":395.363,"body":"they have to say"},{"startTime":395.363,"endTime":398.463,"body":"that's the transaction"},{"startTime":395.363,"endTime":398.463,"body":"that actually took place."},{"startTime":399.54,"endTime":403.2,"body":"But how do you get all"},{"startTime":399.54,"endTime":403.2,"body":"those 1,000 people together"},{"startTime":403.2,"endTime":405.75,"body":"and say, this is what"},{"startTime":403.2,"endTime":405.75,"body":"happened, 100 pounds?"},{"startTime":405.75,"endTime":408.33,"body":"Maybe 10 people say it was 110,"},{"startTime":408.33,"endTime":409.183,"body":"maybe another 20 people say,"},{"startTime":409.183,"endTime":411.24,"body":"no, it was actually 90,"},{"startTime":411.24,"endTime":412.95,"body":"how do we know it's 100 pounds?"},{"startTime":412.95,"endTime":415.323,"body":"The answer is, possibly, majority rule."},{"startTime":416.4,"endTime":417.54,"body":"Majority rule says,"},{"startTime":417.54,"endTime":420.66,"body":"well, if 501 out of 1,000"},{"startTime":417.54,"endTime":420.66,"body":"people say it was 100 pounds,"},{"startTime":420.66,"endTime":421.493,"body":"we'll accept"},{"startTime":421.493,"endTime":424.44,"body":"that 100 pounds was the"},{"startTime":421.493,"endTime":424.44,"body":"amount that was transferred."},{"startTime":424.44,"endTime":425.4,"body":"The problem is"},{"startTime":425.4,"endTime":428.13,"body":"majority rule by itself doesn't work"},{"startTime":428.13,"endTime":430.86,"body":"because of something"},{"startTime":428.13,"endTime":430.86,"body":"called a Sybil attack."},{"startTime":430.86,"endTime":432.39,"body":"Sybil, by the way, here,"},{"startTime":432.39,"endTime":435.57,"body":"is not the Greek prophetess of old,"},{"startTime":435.57,"endTime":437.97,"body":"it's basically a 1970s book"},{"startTime":437.97,"endTime":440.58,"body":"written about a woman with"},{"startTime":437.97,"endTime":440.58,"body":"multiple personalities."},{"startTime":440.58,"endTime":441.843,"body":"And what happens here is,"},{"startTime":442.71,"endTime":444.903,"body":"you have, for example,"},{"startTime":447.06,"endTime":450.27,"body":"one person who spins up 1,000 computers,"},{"startTime":450.27,"endTime":451.77,"body":"all with their own IP addresses,"},{"startTime":451.77,"endTime":454.26,"body":"and pretends to be 1,000 different people"},{"startTime":454.26,"endTime":456.963,"body":"all voting for a fake transaction."},{"startTime":457.83,"endTime":460.14,"body":"As long as there's no cost to this,"},{"startTime":460.14,"endTime":463.35,"body":"you can put up as many"},{"startTime":460.14,"endTime":463.35,"body":"personalities as you want,"},{"startTime":463.35,"endTime":466.47,"body":"all saying that this is"},{"startTime":463.35,"endTime":466.47,"body":"the right transaction."},{"startTime":466.47,"endTime":470.64,"body":"So you need to make it costly"},{"startTime":466.47,"endTime":470.64,"body":"for these people to vote,"},{"startTime":470.64,"endTime":471.96,"body":"and how do you do that?"},{"startTime":471.96,"endTime":473.61,"body":"Well, the answer is,"},{"startTime":473.61,"endTime":475.86,"body":"originally from Bitcoin's perspective,"},{"startTime":475.86,"endTime":477.9,"body":"what they call proof of work."},{"startTime":477.9,"endTime":480.93,"body":"That means if you spin up 1,000 computers,"},{"startTime":480.93,"endTime":482.88,"body":"the system will automatically increase"},{"startTime":482.88,"endTime":486.0,"body":"the level of difficulty of"},{"startTime":482.88,"endTime":486.0,"body":"verifying a transaction,"},{"startTime":486.0,"endTime":489.42,"body":"which means it's really"},{"startTime":486.0,"endTime":489.42,"body":"not worth your while"},{"startTime":489.42,"endTime":491.16,"body":"to go through with that whole process"},{"startTime":491.16,"endTime":493.02,"body":"of trying to falsify a transaction,"},{"startTime":493.02,"endTime":495.12,"body":"it's impossible to do it."},{"startTime":495.12,"endTime":497.793,"body":"And so the essence of crypto is,"},{"startTime":498.72,"endTime":500.7,"body":"because nobody trusts anybody else,"},{"startTime":500.7,"endTime":503.343,"body":"you can verify any transaction you want,"},{"startTime":505.38,"endTime":506.73,"body":"that means you can trust it,"},{"startTime":506.73,"endTime":508.08,"body":"because there's no trust involved,"},{"startTime":508.08,"endTime":508.95,"body":"so you can trust it."},{"startTime":508.95,"endTime":511.68,"body":"So most people don't actually"},{"startTime":508.95,"endTime":511.68,"body":"check the entire blockchain,"},{"startTime":511.68,"endTime":514.05,"body":"they could, but they don't,"},{"startTime":514.05,"endTime":515.043,"body":"because they could."},{"startTime":516.42,"endTime":520.62,"body":"All right, so as I pointed out last time,"},{"startTime":520.62,"endTime":523.41,"body":"crypto's kind of like this generic term,"},{"startTime":523.41,"endTime":525.48,"body":"it has a whole bunch of different things,"},{"startTime":525.48,"endTime":527.64,"body":"and today, I want to spend some time"},{"startTime":527.64,"endTime":530.28,"body":"talking about those different things."},{"startTime":530.28,"endTime":531.54,"body":"So for example,"},{"startTime":531.54,"endTime":534.66,"body":"it could be cryptocurrencies,"},{"startTime":531.54,"endTime":534.66,"body":"dealing with money,"},{"startTime":534.66,"endTime":537.723,"body":"or it could be tokens,"},{"startTime":534.66,"endTime":537.723,"body":"sort of dealing with money,"},{"startTime":538.62,"endTime":540.87,"body":"it could be decentralized finance,"},{"startTime":540.87,"endTime":543.57,"body":"which deals with automatic contracts,"},{"startTime":543.57,"endTime":546.27,"body":"it could be blockchains,"},{"startTime":543.57,"endTime":546.27,"body":"which deal with databases,"},{"startTime":546.27,"endTime":551.27,"body":"all of them fall under this"},{"startTime":546.27,"endTime":551.27,"body":"rubric of crypto, fine."},{"startTime":552.39,"endTime":554.61,"body":"It could also be Web3,"},{"startTime":554.61,"endTime":557.82,"body":"which is sort of a decentralized"},{"startTime":554.61,"endTime":557.82,"body":"evolution of Web 1.0,"},{"startTime":557.82,"endTime":561.78,"body":"which was the earliest,"},{"startTime":557.82,"endTime":561.78,"body":"chaotic kind of development"},{"startTime":561.78,"endTime":562.613,"body":"of the Web"},{"startTime":562.613,"endTime":565.98,"body":"starting with Tim Berners-Lee"},{"startTime":562.613,"endTime":565.98,"body":"back in the 1990s,"},{"startTime":565.98,"endTime":567.48,"body":"everybody had their own website,"},{"startTime":567.48,"endTime":568.95,"body":"nobody could find anything,"},{"startTime":568.95,"endTime":572.64,"body":"it was completely chaotic, the 1990s,"},{"startTime":572.64,"endTime":574.08,"body":"and then Web 2.0,"},{"startTime":574.08,"endTime":578.67,"body":"when centralized people like"},{"startTime":574.08,"endTime":578.67,"body":"Google, Apple, Facebook,"},{"startTime":578.67,"endTime":582.12,"body":"all of them started carving"},{"startTime":578.67,"endTime":582.12,"body":"out their own walled gardens,"},{"startTime":582.12,"endTime":584.49,"body":"and so they were collecting all your data,"},{"startTime":584.49,"endTime":585.69,"body":"hoovering it up,"},{"startTime":585.69,"endTime":587.85,"body":"Web3 is sort of, let's decentralize it"},{"startTime":587.85,"endTime":590.523,"body":"and go back to it being"},{"startTime":587.85,"endTime":590.523,"body":"owned by the people."},{"startTime":591.75,"endTime":596.75,"body":"All right, now, let's"},{"startTime":591.75,"endTime":596.75,"body":"apply all this to finance."},{"startTime":597.36,"endTime":599.76,"body":"The first thing you have"},{"startTime":597.36,"endTime":599.76,"body":"to realize about finance"},{"startTime":599.76,"endTime":601.113,"body":"is that it's bizarre."},{"startTime":602.79,"endTime":604.74,"body":"Why is it bizarre?"},{"startTime":604.74,"endTime":607.17,"body":"It's because, if you are a finance person,"},{"startTime":607.17,"endTime":610.74,"body":"there are a whole bunch of"},{"startTime":607.17,"endTime":610.74,"body":"arcane rules and arcane logic"},{"startTime":610.74,"endTime":612.63,"body":"which you cannot understand"},{"startTime":612.63,"endTime":615.27,"body":"unless you know financial history."},{"startTime":615.27,"endTime":618.6,"body":"For example, for a long time,"},{"startTime":618.6,"endTime":620.07,"body":"you could only, in America,"},{"startTime":620.07,"endTime":624.21,"body":"you could only buy shares"},{"startTime":620.07,"endTime":624.21,"body":"in 1/8 of a dollar."},{"startTime":624.21,"endTime":625.08,"body":"That means, in other words,"},{"startTime":625.08,"endTime":629.35,"body":"you could buy a share for"},{"startTime":625.08,"endTime":629.35,"body":"25 1/8 of a dollar, 25.125,"},{"startTime":631.29,"endTime":634.83,"body":"but you could not buy a share for 25.2,"},{"startTime":634.83,"endTime":637.427,"body":"you could not buy a share for 25.18,"},{"startTime":637.427,"endTime":641.13,"body":"it was decimalized about 30 years ago,"},{"startTime":641.13,"endTime":642.18,"body":"but before that,"},{"startTime":642.18,"endTime":644.31,"body":"it was only in eighths of a dollar."},{"startTime":644.31,"endTime":645.27,"body":"Why?"},{"startTime":645.27,"endTime":649.05,"body":"Because originally, when"},{"startTime":645.27,"endTime":649.05,"body":"they started trading shares,"},{"startTime":649.05,"endTime":651.75,"body":"you could break a silver dollar into half,"},{"startTime":651.75,"endTime":654.51,"body":"that would still be sort of"},{"startTime":651.75,"endTime":654.51,"body":"recognizable as a dollar,"},{"startTime":654.51,"endTime":656.07,"body":"you could break it into a quarter,"},{"startTime":656.07,"endTime":657.39,"body":"you could break into an eighth."},{"startTime":657.39,"endTime":658.223,"body":"Beyond an eighth,"},{"startTime":658.223,"endTime":660.39,"body":"it becomes an unrecognizable"},{"startTime":658.223,"endTime":660.39,"body":"hunk of metal,"},{"startTime":660.39,"endTime":663.39,"body":"you're not really sure"},{"startTime":660.39,"endTime":663.39,"body":"whether it is this or not."},{"startTime":663.39,"endTime":665.91,"body":"So unless you understand"},{"startTime":663.39,"endTime":665.91,"body":"that, it's bizarre,"},{"startTime":665.91,"endTime":668.463,"body":"why are shares traded"},{"startTime":665.91,"endTime":668.463,"body":"in eighths of a dollar?"},{"startTime":669.48,"endTime":671.22,"body":"It's just something that happens,"},{"startTime":671.22,"endTime":672.723,"body":"nobody really knows why."},{"startTime":673.59,"endTime":675.27,"body":"The same thing with crypto,"},{"startTime":675.27,"endTime":677.52,"body":"crypto is equally bizarre."},{"startTime":677.52,"endTime":678.87,"body":"In the last 15 years,"},{"startTime":678.87,"endTime":683.013,"body":"crypto has built a whole new"},{"startTime":678.87,"endTime":683.013,"body":"financial system from scratch."},{"startTime":684.36,"endTime":687.63,"body":"Well, it has basically reinvented"},{"startTime":684.36,"endTime":687.63,"body":"and rediscovered things"},{"startTime":687.63,"endTime":689.733,"body":"that finance has been doing for centuries."},{"startTime":690.6,"endTime":691.8,"body":"Some cases,"},{"startTime":691.8,"endTime":694.623,"body":"it's found new and"},{"startTime":691.8,"endTime":694.623,"body":"better ways to do things,"},{"startTime":695.52,"endTime":698.19,"body":"some cases, it's done much worse ways,"},{"startTime":698.19,"endTime":699.9,"body":"basically heading down paths"},{"startTime":699.9,"endTime":704.373,"body":"which were abandoned by traditional"},{"startTime":699.9,"endTime":704.373,"body":"finance a long time ago."},{"startTime":705.24,"endTime":707.34,"body":"Sometimes, it's doing the same thing"},{"startTime":707.34,"endTime":709.41,"body":"that traditional finance is doing,"},{"startTime":709.41,"endTime":711.633,"body":"but under a new name and a new motivation."},{"startTime":713.22,"endTime":715.83,"body":"So these are what you can do with crypto,"},{"startTime":715.83,"endTime":720.69,"body":"it's a completely self-contained,"},{"startTime":715.83,"endTime":720.69,"body":"elegant financial system,"},{"startTime":720.69,"endTime":724.23,"body":"which is kind of interconnected"},{"startTime":724.23,"endTime":726.63,"body":"with the traditional financial system."},{"startTime":726.63,"endTime":729.09,"body":"Let's take examples of these,"},{"startTime":729.09,"endTime":731.483,"body":"let's start with cryptocurrency."},{"startTime":732.93,"endTime":734.28,"body":"What is a cryptocurrency?"},{"startTime":734.28,"endTime":736.77,"body":"We talk about Bitcoin,"},{"startTime":734.28,"endTime":736.77,"body":"we talk about Ether,"},{"startTime":736.77,"endTime":739.11,"body":"we talk about all these cryptocurrencies,"},{"startTime":739.11,"endTime":740.373,"body":"but what is it?"},{"startTime":741.3,"endTime":744.933,"body":"Well, one thing people might"},{"startTime":741.3,"endTime":744.933,"body":"say is it's a store of value,"},{"startTime":746.19,"endTime":747.24,"body":"I buy a bitcoin,"},{"startTime":747.24,"endTime":749.25,"body":"I'm storing it, it's like money,"},{"startTime":749.25,"endTime":750.243,"body":"but is it?"},{"startTime":751.11,"endTime":753.9,"body":"Well, if you think about how this started,"},{"startTime":753.9,"endTime":755.94,"body":"when you measure value in finance,"},{"startTime":755.94,"endTime":757.2,"body":"we need two things,"},{"startTime":757.2,"endTime":758.43,"body":"we need cash flows"},{"startTime":758.43,"endTime":762.12,"body":"and we need an estimate of"},{"startTime":758.43,"endTime":762.12,"body":"the risk these things take,"},{"startTime":762.12,"endTime":763.76,"body":"so cash flow and risk."},{"startTime":763.76,"endTime":766.323,"body":"To value something in"},{"startTime":763.76,"endTime":766.323,"body":"finance, you need both."},{"startTime":767.37,"endTime":769.68,"body":"But there are no cash flows in Bitcoin,"},{"startTime":769.68,"endTime":771.84,"body":"how do you figure out"},{"startTime":769.68,"endTime":771.84,"body":"what the cash flows are?"},{"startTime":771.84,"endTime":773.58,"body":"It's a currency in itself,"},{"startTime":773.58,"endTime":776.07,"body":"but it's not even a currency."},{"startTime":776.07,"endTime":778.563,"body":"When Satoshi Nakamoto created this,"},{"startTime":779.55,"endTime":780.87,"body":"what he essentially did"},{"startTime":780.87,"endTime":785.25,"body":"was to create a way of"},{"startTime":780.87,"endTime":785.25,"body":"transferring ownership of a number"},{"startTime":785.25,"endTime":786.783,"body":"from one person to another."},{"startTime":787.89,"endTime":789.66,"body":"To put this in another way,"},{"startTime":789.66,"endTime":791.34,"body":"if, for example,"},{"startTime":791.34,"endTime":795.96,"body":"I were to send somebody the number 100,"},{"startTime":795.96,"endTime":796.95,"body":"how do I do it?"},{"startTime":796.95,"endTime":799.143,"body":"Type 100 into an email and send it over."},{"startTime":800.79,"endTime":802.62,"body":"But does that mean I lose my 100?"},{"startTime":802.62,"endTime":804.12,"body":"No, I don't, I can type it in again,"},{"startTime":804.12,"endTime":805.05,"body":"it's an Excel spreadsheet,"},{"startTime":805.05,"endTime":807.39,"body":"I can type it in as many times as I want."},{"startTime":807.39,"endTime":809.28,"body":"What Satoshi Nakamoto said was,"},{"startTime":809.28,"endTime":810.3,"body":"in your ledger,"},{"startTime":810.3,"endTime":812.46,"body":"I can take the 100 out of your ledger,"},{"startTime":812.46,"endTime":813.9,"body":"transfer it to another person,"},{"startTime":813.9,"endTime":816.24,"body":"and you cannot spend that number again."},{"startTime":816.24,"endTime":817.073,"body":"Remember, last time,"},{"startTime":817.073,"endTime":821.91,"body":"we talked about the"},{"startTime":817.073,"endTime":821.91,"body":"falsification of entries,"},{"startTime":821.91,"endTime":824.55,"body":"and we talked about the"},{"startTime":821.91,"endTime":824.55,"body":"double-spending problem."},{"startTime":824.55,"endTime":826.98,"body":"Basically, he solved that"},{"startTime":824.55,"endTime":826.98,"body":"double spending problem:"},{"startTime":826.98,"endTime":829.32,"body":"you transfer ownership of a number,"},{"startTime":829.32,"endTime":830.79,"body":"one person gets a number,"},{"startTime":830.79,"endTime":833.22,"body":"the other person cannot use that number."},{"startTime":833.22,"endTime":834.69,"body":"And some people said,"},{"startTime":834.69,"endTime":836.79,"body":"hmm, that's kind of interesting."},{"startTime":836.79,"endTime":841.14,"body":"Well, you artificially created scarcity"},{"startTime":841.14,"endTime":843.18,"body":"for a digital asset,"},{"startTime":843.18,"endTime":844.14,"body":"which makes no sense"},{"startTime":844.14,"endTime":845.913,"body":"because a digital asset is just,"},{"startTime":847.53,"endTime":851.88,"body":"if I send you a song or a book over email,"},{"startTime":851.88,"endTime":853.83,"body":"I don't lose control of that;"},{"startTime":853.83,"endTime":854.94,"body":"here, I do."},{"startTime":854.94,"endTime":857.16,"body":"So some people said that's like money,"},{"startTime":857.16,"endTime":860.973,"body":"so we can associate"},{"startTime":857.16,"endTime":860.973,"body":"those numbers with money."},{"startTime":862.08,"endTime":863.43,"body":"But how much money?"},{"startTime":863.43,"endTime":865.743,"body":"That's arbitrary, it's"},{"startTime":863.43,"endTime":865.743,"body":"an arbitrary number,"},{"startTime":866.97,"endTime":868.08,"body":"this is arbitrary,"},{"startTime":868.08,"endTime":871.023,"body":"so how much value you associate"},{"startTime":868.08,"endTime":871.023,"body":"with it is also arbitrary,"},{"startTime":871.023,"endTime":873.073,"body":"there are no cash flows, there's no risk."},{"startTime":874.47,"endTime":876.36,"body":"And so some other people said,"},{"startTime":876.36,"endTime":879.723,"body":"wait, this guy has come up"},{"startTime":876.36,"endTime":879.723,"body":"with an artificial number,"},{"startTime":880.734,"endTime":881.76,"body":"or he's come up with a way"},{"startTime":881.76,"endTime":883.83,"body":"of transferring one"},{"startTime":881.76,"endTime":883.83,"body":"number to somebody else,"},{"startTime":883.83,"endTime":885.69,"body":"and people are paying for it?"},{"startTime":885.69,"endTime":887.28,"body":"Let me come up with my own method."},{"startTime":887.28,"endTime":889.17,"body":"So they came up with their"},{"startTime":887.28,"endTime":889.17,"body":"own cryptocurrencies,"},{"startTime":889.17,"endTime":890.363,"body":"and their own cryptocurrencies,"},{"startTime":890.363,"endTime":893.1,"body":"and now we have thousands"},{"startTime":890.363,"endTime":893.1,"body":"of cryptocurrencies,"},{"startTime":893.1,"endTime":895.05,"body":"which are all methods of saying,"},{"startTime":895.05,"endTime":896.49,"body":"I have a foolproof way"},{"startTime":896.49,"endTime":898.47,"body":"of transferring a number to somebody else,"},{"startTime":898.47,"endTime":900.593,"body":"and maybe people will"},{"startTime":898.47,"endTime":900.593,"body":"give me some money for it."},{"startTime":901.727,"endTime":903.783,"body":"As a classic example, Dogecoin."},{"startTime":904.62,"endTime":909.27,"body":"The guys who came up with"},{"startTime":904.62,"endTime":909.27,"body":"Dogecoin invented a joke currency,"},{"startTime":909.27,"endTime":913.59,"body":"the Dogecoin was basically"},{"startTime":909.27,"endTime":913.59,"body":"a Shiba Inu dog meme,"},{"startTime":913.59,"endTime":914.423,"body":"and they said,"},{"startTime":914.423,"endTime":918.48,"body":"let's come up with a currency"},{"startTime":914.423,"endTime":918.48,"body":"which uses that meme,"},{"startTime":918.48,"endTime":919.313,"body":"and people said,"},{"startTime":919.313,"endTime":920.146,"body":"oh, this is cool,"},{"startTime":920.146,"endTime":921.69,"body":"so they gave money for that,"},{"startTime":921.69,"endTime":925.59,"body":"so Dogecoin is the sixth or"},{"startTime":921.69,"endTime":925.59,"body":"seventh biggest cryptocurrency"},{"startTime":925.59,"endTime":927.15,"body":"right now."},{"startTime":927.15,"endTime":930.12,"body":"Okay, but there's"},{"startTime":927.15,"endTime":930.12,"body":"another interesting thing"},{"startTime":930.12,"endTime":932.01,"body":"about cryptocurrencies,"},{"startTime":932.01,"endTime":933.123,"body":"this part here."},{"startTime":934.11,"endTime":935.913,"body":"What is risk in finance?"},{"startTime":937.05,"endTime":940.323,"body":"In finance, risk is all about correlation."},{"startTime":941.43,"endTime":944.13,"body":"If the economy is doing badly,"},{"startTime":944.13,"endTime":946.38,"body":"all your portfolio, your entire portfolio"},{"startTime":946.38,"endTime":948.09,"body":"is going down the tube,"},{"startTime":948.09,"endTime":949.95,"body":"everything is crashing,"},{"startTime":949.95,"endTime":952.05,"body":"you want at least one asset"},{"startTime":952.05,"endTime":953.73,"body":"which is going in the opposite direction,"},{"startTime":953.73,"endTime":956.73,"body":"it's going up while"},{"startTime":953.73,"endTime":956.73,"body":"everything else is crashing,"},{"startTime":956.73,"endTime":959.19,"body":"that acts like insurance,"},{"startTime":959.19,"endTime":962.58,"body":"you're reducing your risk by"},{"startTime":959.19,"endTime":962.58,"body":"adding that to your portfolio."},{"startTime":962.58,"endTime":964.89,"body":"When the world is going"},{"startTime":962.58,"endTime":964.89,"body":"to hell in a hand basket,"},{"startTime":964.89,"endTime":967.05,"body":"this thing is doing well,"},{"startTime":967.05,"endTime":968.1,"body":"gold, for example,"},{"startTime":968.1,"endTime":970.83,"body":"people think of gold as an example."},{"startTime":970.83,"endTime":974.31,"body":"But arbitrary number, arbitrary value,"},{"startTime":974.31,"endTime":975.3,"body":"so a lot of people say,"},{"startTime":975.3,"endTime":976.133,"body":"you know what?"},{"startTime":976.133,"endTime":979.32,"body":"Bitcoin is a great store of value"},{"startTime":979.32,"endTime":982.717,"body":"because it's uncorrelated to"},{"startTime":979.32,"endTime":982.717,"body":"all the other assets we have."},{"startTime":982.717,"endTime":984.9,"body":"The world is going to hell,"},{"startTime":984.9,"endTime":987.81,"body":"this one is just some arbitrary numbers,"},{"startTime":987.81,"endTime":992.01,"body":"so it reduces your risk to"},{"startTime":987.81,"endTime":992.01,"body":"have bitcoin in your portfolio."},{"startTime":992.01,"endTime":994.48,"body":"Unfortunately, that argument worked well"},{"startTime":995.67,"endTime":997.83,"body":"'til about three or four months ago."},{"startTime":997.83,"endTime":1001.34,"body":"Since then, all of these"},{"startTime":997.83,"endTime":1001.34,"body":"are more like meme stocks,"},{"startTime":1001.34,"endTime":1002.173,"body":"they're fashionable,"},{"startTime":1002.173,"endTime":1003.587,"body":"they're like, oh, let's give"},{"startTime":1002.173,"endTime":1003.587,"body":"a lot of money to Bitcoin,"},{"startTime":1003.587,"endTime":1004.88,"body":"the value goes up,"},{"startTime":1004.88,"endTime":1009.88,"body":"now it's 1/3 of what the"},{"startTime":1004.88,"endTime":1009.88,"body":"value was a year ago."},{"startTime":1010.58,"endTime":1012.44,"body":"Another way to think of a cryptocurrency"},{"startTime":1012.44,"endTime":1013.793,"body":"is more fascinating,"},{"startTime":1014.9,"endTime":1018.65,"body":"and that is, it's actually"},{"startTime":1014.9,"endTime":1018.65,"body":"a computer system."},{"startTime":1018.65,"endTime":1023.513,"body":"Think about what a Bitcoin"},{"startTime":1018.65,"endTime":1023.513,"body":"system actually is:"},{"startTime":1024.56,"endTime":1028.07,"body":"you are instructing a computer to say,"},{"startTime":1028.07,"endTime":1030.5,"body":"take 100 pounds out of my ledger,"},{"startTime":1030.5,"endTime":1032.48,"body":"100 bitcoins out of my ledger,"},{"startTime":1032.48,"endTime":1034.97,"body":"and transfer it over to somebody else,"},{"startTime":1034.97,"endTime":1037.64,"body":"it's an instruction, I'm"},{"startTime":1034.97,"endTime":1037.64,"body":"giving an instruction,"},{"startTime":1037.64,"endTime":1039.56,"body":"take 100 pounds out of this account,"},{"startTime":1039.56,"endTime":1041.213,"body":"put 100 pounds in that account."},{"startTime":1042.11,"endTime":1046.28,"body":"And somebody called Vitalik"},{"startTime":1042.11,"endTime":1046.28,"body":"Buterin came up with the idea,"},{"startTime":1046.28,"endTime":1048.35,"body":"he was 20 years old when he invented that,"},{"startTime":1048.35,"endTime":1051.113,"body":"now he's very old, he's"},{"startTime":1048.35,"endTime":1051.113,"body":"about 28 years old,"},{"startTime":1052.34,"endTime":1055.64,"body":"but he was 20 years old when"},{"startTime":1052.34,"endTime":1055.64,"body":"he came up with the idea,"},{"startTime":1055.64,"endTime":1057.14,"body":"he said, hold on a minute,"},{"startTime":1057.14,"endTime":1059.723,"body":"that is actually a computer program,"},{"startTime":1060.74,"endTime":1065.74,"body":"so how do I make it an"},{"startTime":1060.74,"endTime":1065.74,"body":"explicit computer program?"},{"startTime":1065.81,"endTime":1069.71,"body":"What he did was to add"},{"startTime":1065.81,"endTime":1069.71,"body":"an if-then statement"},{"startTime":1069.71,"endTime":1073.85,"body":"to that question of"},{"startTime":1069.71,"endTime":1073.85,"body":"transfer money from A to B."},{"startTime":1073.85,"endTime":1075.983,"body":"So what is that if-then statement?"},{"startTime":1077.0,"endTime":1078.74,"body":"Well, two possibilities,"},{"startTime":1078.74,"endTime":1082.22,"body":"one is, let's imagine, for example,"},{"startTime":1082.22,"endTime":1084.8,"body":"you're buying flight insurance,"},{"startTime":1084.8,"endTime":1087.59,"body":"your plane takes off from London to Paris,"},{"startTime":1087.59,"endTime":1088.91,"body":"you buy flight insurance,"},{"startTime":1088.91,"endTime":1091.85,"body":"if your flight is delayed"},{"startTime":1088.91,"endTime":1091.85,"body":"by more than four hours,"},{"startTime":1091.85,"endTime":1093.053,"body":"you get compensation,"},{"startTime":1094.1,"endTime":1095.9,"body":"but you have to file for the insurance,"},{"startTime":1095.9,"endTime":1097.94,"body":"they have to check all that stuff."},{"startTime":1097.94,"endTime":1100.79,"body":"If there's an if-then statement"},{"startTime":1097.94,"endTime":1100.79,"body":"in the insurance policy,"},{"startTime":1100.79,"endTime":1104.15,"body":"you say, if the flight is"},{"startTime":1100.79,"endTime":1104.15,"body":"delayed by more than four hours,"},{"startTime":1104.15,"endTime":1106.28,"body":"money will automatically be transferred"},{"startTime":1106.28,"endTime":1108.43,"body":"from the airline's"},{"startTime":1106.28,"endTime":1108.43,"body":"account to your account."},{"startTime":1109.67,"endTime":1112.16,"body":"But that means you need an oracle,"},{"startTime":1112.16,"endTime":1114.05,"body":"you need something to say"},{"startTime":1114.05,"endTime":1118.19,"body":"that was the time the"},{"startTime":1114.05,"endTime":1118.19,"body":"flight actually took off,"},{"startTime":1118.19,"endTime":1121.4,"body":"something to connect the"},{"startTime":1118.19,"endTime":1121.4,"body":"crypto world to the real world."},{"startTime":1121.4,"endTime":1123.8,"body":"Or you could have a different one,"},{"startTime":1123.8,"endTime":1126.29,"body":"I can send an instruction to an address,"},{"startTime":1126.29,"endTime":1127.4,"body":"and I can say,"},{"startTime":1127.4,"endTime":1129.77,"body":"if I transfer money to that address,"},{"startTime":1129.77,"endTime":1134.183,"body":"send me back a picture of"},{"startTime":1129.77,"endTime":1134.183,"body":"a Bored Ape, for example,"},{"startTime":1135.29,"endTime":1138.23,"body":"so that would be like a vending machine,"},{"startTime":1138.23,"endTime":1140.416,"body":"I just send something"},{"startTime":1138.23,"endTime":1140.416,"body":"to a particular address"},{"startTime":1140.416,"endTime":1144.68,"body":"on the Ethereum virtual machine,"},{"startTime":1144.68,"endTime":1146.3,"body":"and it'll send me back a picture,"},{"startTime":1146.3,"endTime":1148.343,"body":"a CryptoKitty, or something like that."},{"startTime":1149.21,"endTime":1150.62,"body":"So that's the idea,"},{"startTime":1150.62,"endTime":1152.99,"body":"so that once you have that idea,"},{"startTime":1152.99,"endTime":1155.93,"body":"you can do a lot more with the blockchain."},{"startTime":1155.93,"endTime":1158.45,"body":"So what can you do with the blockchain?"},{"startTime":1158.45,"endTime":1161.3,"body":"Well, the neat bit about this computer is"},{"startTime":1161.3,"endTime":1163.1,"body":"there's no keyboard, there's no mouse,"},{"startTime":1163.1,"endTime":1164.05,"body":"there's no monitor."},{"startTime":1165.08,"endTime":1166.34,"body":"Instead, what it is,"},{"startTime":1166.34,"endTime":1167.78,"body":"a bunch of distributed apps,"},{"startTime":1167.78,"endTime":1169.76,"body":"what we call dapps."},{"startTime":1169.76,"endTime":1172.22,"body":"The way a distributed app works is,"},{"startTime":1172.22,"endTime":1174.65,"body":"it's a program that runs on the Web,"},{"startTime":1174.65,"endTime":1176.78,"body":"runs on the Ethereum virtual machine,"},{"startTime":1176.78,"endTime":1179.66,"body":"but the data is kept on the blockchain."},{"startTime":1179.66,"endTime":1181.25,"body":"For example,"},{"startTime":1181.25,"endTime":1186.25,"body":"if you're doing a sword and"},{"startTime":1181.25,"endTime":1186.25,"body":"sorcery-type fantasy video game,"},{"startTime":1187.85,"endTime":1190.703,"body":"your character in the video"},{"startTime":1187.85,"endTime":1190.703,"body":"game might have a sword,"},{"startTime":1191.81,"endTime":1194.66,"body":"so the characteristics"},{"startTime":1191.81,"endTime":1194.66,"body":"of the sword, however,"},{"startTime":1194.66,"endTime":1196.16,"body":"are stored on the blockchain."},{"startTime":1196.16,"endTime":1199.76,"body":"Maybe it's three feet long,"},{"startTime":1196.16,"endTime":1199.76,"body":"maybe it's very sharp,"},{"startTime":1199.76,"endTime":1201.56,"body":"maybe it can cut through metal, whatever,"},{"startTime":1201.56,"endTime":1202.877,"body":"the characteristics are kept there,"},{"startTime":1202.877,"endTime":1204.71,"body":"but it's rendered virtually"},{"startTime":1204.71,"endTime":1206.873,"body":"using the graphics card on your computer."},{"startTime":1208.4,"endTime":1210.953,"body":"Now, how does a distributed app work?"},{"speaker":"So let's have this instruction","startTime":1214.07,"endTime":1219.07,"body":"if the temperature is"},{"speaker":"So let's have this instruction","startTime":1214.07,"endTime":1219.07,"body":"below one degree centigrade"},{"speaker":"So let's have this instruction","startTime":1219.08,"endTime":1220.61,"body":"on this particular day,"},{"speaker":"So let's have this instruction","startTime":1220.61,"endTime":1225.61,"body":"then transfer 100 coins from"},{"speaker":"So let's have this instruction","startTime":1220.61,"endTime":1225.61,"body":"this address to that address,"},{"speaker":"So let's have this instruction","startTime":1225.65,"endTime":1226.523,"body":"it's a program."},{"speaker":"So let's have this instruction","startTime":1227.51,"endTime":1229.43,"body":"So what happens?"},{"speaker":"So let's have this instruction","startTime":1229.43,"endTime":1232.82,"body":"Well, it's sent to the entire network,"},{"speaker":"So let's have this instruction","startTime":1232.82,"endTime":1236.75,"body":"and every node in that network"},{"speaker":"So let's have this instruction","startTime":1232.82,"endTime":1236.75,"body":"executes that transaction."},{"speaker":"So let's have this instruction","startTime":1236.75,"endTime":1238.01,"body":"They'll check the weather,"},{"speaker":"So let's have this instruction","startTime":1238.01,"endTime":1239.24,"body":"is it below one degree?"},{"speaker":"So let's have this instruction","startTime":1239.24,"endTime":1240.08,"body":"Okay, it is?"},{"speaker":"So let's have this instruction","startTime":1240.08,"endTime":1241.82,"body":"Fine, let's transfer."},{"speaker":"So let's have this instruction","startTime":1241.82,"endTime":1242.93,"body":"Some computers might say,"},{"speaker":"So let's have this instruction","startTime":1242.93,"endTime":1244.19,"body":"no, no, no, in my area,"},{"speaker":"So let's have this instruction","startTime":1244.19,"endTime":1246.2,"body":"it's not less than one degree,"},{"speaker":"So let's have this instruction","startTime":1246.2,"endTime":1248.24,"body":"so they don't transfer,"},{"speaker":"So let's have this instruction","startTime":1248.24,"endTime":1251.75,"body":"but then all these computers"},{"speaker":"So let's have this instruction","startTime":1248.24,"endTime":1251.75,"body":"have to get together,"},{"speaker":"So let's have this instruction","startTime":1251.75,"endTime":1252.71,"body":"and then they have to say,"},{"speaker":"So let's have this instruction","startTime":1252.71,"endTime":1253.88,"body":"okay, you know what?"},{"speaker":"So let's have this instruction","startTime":1253.88,"endTime":1255.14,"body":"The consensus is"},{"speaker":"So let's have this instruction","startTime":1255.14,"endTime":1257.75,"body":"the temperature did in"},{"speaker":"So let's have this instruction","startTime":1255.14,"endTime":1257.75,"body":"fact drop by one degree,"},{"speaker":"So let's have this instruction","startTime":1257.75,"endTime":1260.05,"body":"and therefore the money"},{"speaker":"So let's have this instruction","startTime":1257.75,"endTime":1260.05,"body":"should be transferred."},{"speaker":"So let's have this instruction","startTime":1261.23,"endTime":1264.32,"body":"So it's a consensus of all these programs,"},{"speaker":"So let's have this instruction","startTime":1264.32,"endTime":1267.23,"body":"which are being run on"},{"speaker":"So let's have this instruction","startTime":1264.32,"endTime":1267.23,"body":"every single computer"},{"speaker":"So let's have this instruction","startTime":1267.23,"endTime":1268.853,"body":"connected to Ethereum network,"},{"speaker":"So let's have this instruction","startTime":1269.96,"endTime":1272.39,"body":"so what that means, of course, is"},{"speaker":"So let's have this instruction","startTime":1272.39,"endTime":1273.56,"body":"very slow."},{"speaker":"So let's have this instruction","startTime":1273.56,"endTime":1275.42,"body":"You do not want to have one of these"},{"speaker":"So let's have this instruction","startTime":1275.42,"endTime":1277.34,"body":"running your Tesla, for example,"},{"speaker":"So let's have this instruction","startTime":1277.34,"endTime":1279.92,"body":"when you're driving your Tesla"},{"speaker":"So let's have this instruction","startTime":1279.92,"endTime":1283.01,"body":"and have autopilot on,"},{"speaker":"So let's have this instruction","startTime":1283.01,"endTime":1285.32,"body":"because a pedestrian comes in,"},{"speaker":"So let's have this instruction","startTime":1285.32,"endTime":1287.45,"body":"it has to check with 1,000 other Teslas,"},{"speaker":"So let's have this instruction","startTime":1287.45,"endTime":1289.3,"body":"is there a pedestrian in front of me?"},{"speaker":"So let's have this instruction","startTime":1290.27,"endTime":1291.425,"body":"And then, you know,"},{"speaker":"So let's have this instruction","startTime":1291.425,"endTime":1293.33,"body":"there's a pedestrian in front of you,"},{"speaker":"So let's have this instruction","startTime":1293.33,"endTime":1295.46,"body":"too late for the poor pedestrian."},{"speaker":"So let's have this instruction","startTime":1295.46,"endTime":1298.013,"body":"But how does it reach a consensus?"},{"speaker":"So let's have this instruction","startTime":1298.91,"endTime":1301.043,"body":"Before September, 2022,"},{"speaker":"So let's have this instruction","startTime":1302.156,"endTime":1305.36,"body":"Ethereum used a proof of"},{"speaker":"So let's have this instruction","startTime":1302.156,"endTime":1305.36,"body":"work consensus protocol."},{"speaker":"So let's have this instruction","startTime":1305.36,"endTime":1309.62,"body":"That means all these guys"},{"speaker":"So let's have this instruction","startTime":1305.36,"endTime":1309.62,"body":"had to burn electricity"},{"speaker":"So let's have this instruction","startTime":1309.62,"endTime":1313.67,"body":"in order to solve a"},{"speaker":"So let's have this instruction","startTime":1309.62,"endTime":1313.67,"body":"meaningless mathematical puzzle"},{"speaker":"So let's have this instruction","startTime":1313.67,"endTime":1316.07,"body":"just to get their right to validate."},{"speaker":"So let's have this instruction","startTime":1316.07,"endTime":1319.43,"body":"But in September, 2022, last year,"},{"speaker":"So let's have this instruction","startTime":1319.43,"endTime":1322.82,"body":"they changed the protocol"},{"speaker":"So let's have this instruction","startTime":1319.43,"endTime":1322.82,"body":"to proof of stake protocol."},{"speaker":"So let's have this instruction","startTime":1322.82,"endTime":1324.65,"body":"How does that work?"},{"speaker":"So let's have this instruction","startTime":1324.65,"endTime":1328.88,"body":"Well, let's say you want to"},{"speaker":"So let's have this instruction","startTime":1324.65,"endTime":1328.88,"body":"be what they call a validator"},{"speaker":"So let's have this instruction","startTime":1328.88,"endTime":1330.53,"body":"on the network,"},{"speaker":"So let's have this instruction","startTime":1330.53,"endTime":1333.08,"body":"what the validator does is simple,"},{"speaker":"So let's have this instruction","startTime":1333.08,"endTime":1336.02,"body":"he takes the money, he"},{"speaker":"So let's have this instruction","startTime":1333.08,"endTime":1336.02,"body":"buys the network currency,"},{"speaker":"So let's have this instruction","startTime":1336.02,"endTime":1336.853,"body":"and deposits it"},{"speaker":"So let's have this instruction","startTime":1336.853,"endTime":1339.263,"body":"into a special smart"},{"speaker":"So let's have this instruction","startTime":1336.853,"endTime":1339.263,"body":"contract called a stake."},{"speaker":"So let's have this instruction","startTime":1340.13,"endTime":1343.82,"body":"So I put my money, I"},{"speaker":"So let's have this instruction","startTime":1340.13,"endTime":1343.82,"body":"bought a stake on this."},{"speaker":"So let's have this instruction","startTime":1343.82,"endTime":1346.88,"body":"That stake has limitations"},{"speaker":"So let's have this instruction","startTime":1343.82,"endTime":1346.88,"body":"on its withdrawal,"},{"speaker":"So let's have this instruction","startTime":1346.88,"endTime":1349.52,"body":"I can't pull the money"},{"speaker":"So let's have this instruction","startTime":1346.88,"endTime":1349.52,"body":"out whenever I want to,"},{"speaker":"So let's have this instruction","startTime":1349.52,"endTime":1350.963,"body":"it stays in the system."},{"speaker":"So let's have this instruction","startTime":1352.64,"endTime":1355.88,"body":"Now, if you're a validator,"},{"speaker":"So let's have this instruction","startTime":1355.88,"endTime":1357.77,"body":"you compile all the transactions,"},{"speaker":"So let's have this instruction","startTime":1357.77,"endTime":1360.443,"body":"all these programs into blocks."},{"speaker":"So let's have this instruction","startTime":1361.67,"endTime":1364.31,"body":"Now, every now and then,"},{"speaker":"So let's have this instruction","startTime":1364.31,"endTime":1367.97,"body":"a validator is randomly"},{"speaker":"So let's have this instruction","startTime":1364.31,"endTime":1367.97,"body":"chosen to pick one block,"},{"speaker":"So let's have this instruction","startTime":1367.97,"endTime":1371.48,"body":"and then another bunch of"},{"speaker":"So let's have this instruction","startTime":1367.97,"endTime":1371.48,"body":"random validators are chosen"},{"speaker":"So let's have this instruction","startTime":1371.48,"endTime":1373.553,"body":"to review and vote on that block."},{"speaker":"So let's have this instruction","startTime":1374.69,"endTime":1375.74,"body":"So in other words,"},{"speaker":"So let's have this instruction","startTime":1375.74,"endTime":1379.31,"body":"you don't have millions of"},{"speaker":"So let's have this instruction","startTime":1375.74,"endTime":1379.31,"body":"people all trying to verify it,"},{"speaker":"So let's have this instruction","startTime":1379.31,"endTime":1381.26,"body":"a smaller group of computers"},{"speaker":"So let's have this instruction","startTime":1381.26,"endTime":1382.76,"body":"just getting together and saying,"},{"speaker":"So let's have this instruction","startTime":1382.76,"endTime":1384.05,"body":"okay, hmm,"},{"speaker":"So let's have this instruction","startTime":1384.05,"endTime":1386.9,"body":"I think this is the consensus"},{"speaker":"So let's have this instruction","startTime":1384.05,"endTime":1386.9,"body":"transaction that happened,"},{"speaker":"So let's have this instruction","startTime":1386.9,"endTime":1391.9,"body":"and therefore this is the"},{"speaker":"So let's have this instruction","startTime":1386.9,"endTime":1391.9,"body":"outcome of that program."},{"speaker":"So let's have this instruction","startTime":1392.27,"endTime":1393.103,"body":"The good news is,"},{"speaker":"So let's have this instruction","startTime":1393.103,"endTime":1395.303,"body":"because this is done in a very simple way,"},{"speaker":"So let's have this instruction","startTime":1396.2,"endTime":1397.25,"body":"you don't have to mine,"},{"speaker":"So let's have this instruction","startTime":1397.25,"endTime":1399.62,"body":"you don't have to solve"},{"speaker":"So let's have this instruction","startTime":1397.25,"endTime":1399.62,"body":"a complicated problem,"},{"speaker":"So let's have this instruction","startTime":1399.62,"endTime":1401.15,"body":"so in the proof of stake network,"},{"speaker":"So let's have this instruction","startTime":1401.15,"endTime":1404.93,"body":"the electricity consumption drops by 99%"},{"speaker":"So let's have this instruction","startTime":1404.93,"endTime":1407.93,"body":"relative to a proof of"},{"speaker":"So let's have this instruction","startTime":1404.93,"endTime":1407.93,"body":"work consensus protocol,"},{"speaker":"So let's have this instruction","startTime":1407.93,"endTime":1410.18,"body":"so this is all good stuff."},{"speaker":"So let's have this instruction","startTime":1410.18,"endTime":1414.623,"body":"But interestingly, what"},{"speaker":"So let's have this instruction","startTime":1410.18,"endTime":1414.623,"body":"happens if you lie?"},{"speaker":"So let's have this instruction","startTime":1415.67,"endTime":1418.55,"body":"So if you're a validator, and you say,"},{"speaker":"So let's have this instruction","startTime":1418.55,"endTime":1419.75,"body":"this transaction happened,"},{"speaker":"So let's have this instruction","startTime":1419.75,"endTime":1421.4,"body":"when actually, that one happened,"},{"speaker":"So let's have this instruction","startTime":1422.63,"endTime":1424.13,"body":"you do this consistently,"},{"speaker":"So let's have this instruction","startTime":1424.13,"endTime":1425.24,"body":"they cut off your stake,"},{"speaker":"So let's have this instruction","startTime":1425.24,"endTime":1426.23,"body":"so you lose your money,"},{"speaker":"So let's have this instruction","startTime":1426.23,"endTime":1428.78,"body":"so you have no incentive"},{"speaker":"So let's have this instruction","startTime":1426.23,"endTime":1428.78,"body":"to act dishonestly."},{"speaker":"So let's have this instruction","startTime":1428.78,"endTime":1430.34,"body":"If you collude,"},{"speaker":"So let's have this instruction","startTime":1430.34,"endTime":1433.55,"body":"so if 100 people are chosen"},{"speaker":"So let's have this instruction","startTime":1430.34,"endTime":1433.55,"body":"to validate a transaction,"},{"speaker":"So let's have this instruction","startTime":1433.55,"endTime":1435.62,"body":"and those 100 people"},{"speaker":"So let's have this instruction","startTime":1433.55,"endTime":1435.62,"body":"collude among themselves"},{"speaker":"So let's have this instruction","startTime":1435.62,"endTime":1436.94,"body":"to give a wrong transaction,"},{"speaker":"So let's have this instruction","startTime":1436.94,"endTime":1438.74,"body":"people don't trust the system,"},{"speaker":"So let's have this instruction","startTime":1438.74,"endTime":1440.42,"body":"and the value of ether falls."},{"speaker":"So let's have this instruction","startTime":1440.42,"endTime":1443.843,"body":"So all of this is to prevent"},{"speaker":"So let's have this instruction","startTime":1440.42,"endTime":1443.843,"body":"the system from going down."},{"speaker":"So let's have this instruction","startTime":1445.04,"endTime":1446.75,"body":"So how do you earn money?"},{"speaker":"So let's have this instruction","startTime":1446.75,"endTime":1448.04,"body":"Proof of work, Bitcoin,"},{"speaker":"So let's have this instruction","startTime":1448.04,"endTime":1449.33,"body":"buy lots of computers,"},{"speaker":"So let's have this instruction","startTime":1449.33,"endTime":1451.52,"body":"solve these meaningless"},{"speaker":"So let's have this instruction","startTime":1449.33,"endTime":1451.52,"body":"mathematical riddles,"},{"speaker":"So let's have this instruction","startTime":1451.52,"endTime":1453.68,"body":"earn bitcoin for that;"},{"speaker":"So let's have this instruction","startTime":1453.68,"endTime":1454.67,"body":"proof of stake,"},{"speaker":"So let's have this instruction","startTime":1454.67,"endTime":1456.35,"body":"deposit ether to buy a stake,"},{"speaker":"So let's have this instruction","startTime":1456.35,"endTime":1457.73,"body":"validate a transaction,"},{"speaker":"So let's have this instruction","startTime":1457.73,"endTime":1460.16,"body":"and earn fees, which are called gas fees,"},{"speaker":"So let's have this instruction","startTime":1460.16,"endTime":1461.16,"body":"based on your stake."},{"speaker":"So let's have this instruction","startTime":1462.11,"endTime":1465.503,"body":"Now, gas fees are super"},{"speaker":"So let's have this instruction","startTime":1462.11,"endTime":1465.503,"body":"important for Ethereum,"},{"speaker":"So let's have this instruction","startTime":1466.73,"endTime":1469.25,"body":"because the idea of a gas fee is,"},{"speaker":"So let's have this instruction","startTime":1469.25,"endTime":1472.34,"body":"let's remember that a transaction in ether"},{"speaker":"So let's have this instruction","startTime":1472.34,"endTime":1473.543,"body":"is actually a program,"},{"speaker":"So let's have this instruction","startTime":1474.41,"endTime":1475.94,"body":"so that means, in other words,"},{"speaker":"So let's have this instruction","startTime":1475.94,"endTime":1480.23,"body":"I can have maybe a 100,000 line program,"},{"speaker":"So let's have this instruction","startTime":1480.23,"endTime":1481.61,"body":"if this happens, do that,"},{"speaker":"So let's have this instruction","startTime":1481.61,"endTime":1483.26,"body":"if that happens, do something else,"},{"speaker":"So let's have this instruction","startTime":1483.26,"endTime":1484.55,"body":"if something else happens,"},{"speaker":"So let's have this instruction","startTime":1484.55,"endTime":1486.95,"body":"I can have a 100,000 line program,"},{"speaker":"So let's have this instruction","startTime":1486.95,"endTime":1488.66,"body":"and this has to be executed"},{"speaker":"So let's have this instruction","startTime":1488.66,"endTime":1490.853,"body":"on all the thousands of computers,"},{"speaker":"So let's have this instruction","startTime":1492.05,"endTime":1494.84,"body":"which means it is going"},{"speaker":"So let's have this instruction","startTime":1492.05,"endTime":1494.84,"body":"to take up a lot of time."},{"speaker":"So let's have this instruction","startTime":1494.84,"endTime":1496.76,"body":"So Ether says"},{"speaker":"So let's have this instruction","startTime":1496.76,"endTime":1499.64,"body":"this is the maximum gas"},{"speaker":"So let's have this instruction","startTime":1496.76,"endTime":1499.64,"body":"limit which is allowed"},{"speaker":"So let's have this instruction","startTime":1499.64,"endTime":1502.58,"body":"on any individual program you write."},{"speaker":"So let's have this instruction","startTime":1502.58,"endTime":1504.95,"body":"So if you write a 100,000 line program,"},{"speaker":"So let's have this instruction","startTime":1504.95,"endTime":1507.8,"body":"you run out of gas, the"},{"speaker":"So let's have this instruction","startTime":1504.95,"endTime":1507.8,"body":"program will not be executed."},{"speaker":"So let's have this instruction","startTime":1507.8,"endTime":1511.43,"body":"And there's also a limit on the"},{"speaker":"So let's have this instruction","startTime":1507.8,"endTime":1511.43,"body":"amount of gas you can spend,"},{"speaker":"So let's have this instruction","startTime":1511.43,"endTime":1513.8,"body":"so there's a price of gas"},{"speaker":"So let's have this instruction","startTime":1511.43,"endTime":1513.8,"body":"which you're going to do,"},{"speaker":"So let's have this instruction","startTime":1513.8,"endTime":1515.99,"body":"so if you run into an infinite loop,"},{"speaker":"So let's have this instruction","startTime":1515.99,"endTime":1518.87,"body":"if A happens then do B,"},{"speaker":"So let's have this instruction","startTime":1515.99,"endTime":1518.87,"body":"if B happens then do A,"},{"speaker":"So let's have this instruction","startTime":1518.87,"endTime":1520.1,"body":"it's an infinite loop,"},{"speaker":"So let's have this instruction","startTime":1520.1,"endTime":1521.57,"body":"it'll crash the system,"},{"speaker":"So let's have this instruction","startTime":1521.57,"endTime":1523.25,"body":"but it'll stop,"},{"speaker":"So let's have this instruction","startTime":1523.25,"endTime":1525.983,"body":"the gas fees will stop"},{"speaker":"So let's have this instruction","startTime":1523.25,"endTime":1525.983,"body":"you from doing that."},{"speaker":"So let's have this instruction","startTime":1527.0,"endTime":1528.65,"body":"But the gas fees allow us"},{"speaker":"So let's have this instruction","startTime":1528.65,"endTime":1531.683,"body":"to reinvent the concept of interest."},{"speaker":"Let's take an example","startTime":1534.92,"endTime":1537.2,"body":"when you deposit money in a bank,"},{"speaker":"Let's take an example","startTime":1537.2,"endTime":1539.42,"body":"why do you earn interest?"},{"speaker":"Let's take an example","startTime":1539.42,"endTime":1541.82,"body":"Well, the banker takes your money"},{"speaker":"Let's take an example","startTime":1541.82,"endTime":1543.833,"body":"and lends it out to somebody else,"},{"speaker":"Let's take an example","startTime":1544.97,"endTime":1547.775,"body":"and that person does something productive,"},{"speaker":"Let's take an example","startTime":1547.775,"endTime":1551.36,"body":"a productive activity helping society,"},{"speaker":"Let's take an example","startTime":1551.36,"endTime":1552.947,"body":"they transfer the money back to the bank,"},{"speaker":"Let's take an example","startTime":1552.947,"endTime":1555.32,"body":"and the bank gives you interest."},{"speaker":"Let's take an example","startTime":1555.32,"endTime":1558.53,"body":"Here, why do you earn interest?"},{"speaker":"Let's take an example","startTime":1558.53,"endTime":1561.62,"body":"Well, if you want to be a validator,"},{"speaker":"Let's take an example","startTime":1561.62,"endTime":1563.51,"body":"but you don't have the money,"},{"speaker":"Let's take an example","startTime":1563.51,"endTime":1564.47,"body":"what do you do?"},{"speaker":"Let's take an example","startTime":1564.47,"endTime":1565.49,"body":"You ask your friends,"},{"speaker":"Let's take an example","startTime":1565.49,"endTime":1568.67,"body":"hey, I need to be a validator,"},{"speaker":"Let's take an example","startTime":1568.67,"endTime":1570.47,"body":"I need so much ether,"},{"speaker":"Let's take an example","startTime":1570.47,"endTime":1571.52,"body":"and if your friends say,"},{"speaker":"Let's take an example","startTime":1571.52,"endTime":1573.71,"body":"fine, I'm going to lend you the ether,"},{"speaker":"Let's take an example","startTime":1573.71,"endTime":1575.09,"body":"you put it into a pool,"},{"speaker":"Let's take an example","startTime":1575.09,"endTime":1577.85,"body":"and use that pool to become a validator,"},{"speaker":"Let's take an example","startTime":1577.85,"endTime":1578.893,"body":"and then you earn gas fees,"},{"speaker":"Let's take an example","startTime":1578.893,"endTime":1582.71,"body":"and you return a portion of"},{"speaker":"Let's take an example","startTime":1578.893,"endTime":1582.71,"body":"the gas fees as interest."},{"speaker":"Let's take an example","startTime":1582.71,"endTime":1584.48,"body":"Nothing productive being done here,"},{"speaker":"Let's take an example","startTime":1584.48,"endTime":1585.313,"body":"all you're doing"},{"speaker":"Let's take an example","startTime":1585.313,"endTime":1588.5,"body":"is verifying the security"},{"speaker":"Let's take an example","startTime":1585.313,"endTime":1588.5,"body":"of your transaction."},{"speaker":"Let's take an example","startTime":1588.5,"endTime":1590.27,"body":"So interest is being earned"},{"speaker":"Let's take an example","startTime":1590.27,"endTime":1593.123,"body":"for a purpose very different"},{"speaker":"Let's take an example","startTime":1590.27,"endTime":1593.123,"body":"from what the banks do."},{"speaker":"Let's take an example","startTime":1594.2,"endTime":1596.66,"body":"Banks increase the value to society,"},{"speaker":"Let's take an example","startTime":1596.66,"endTime":1599.6,"body":"here, you're just verifying the security"},{"speaker":"Let's take an example","startTime":1599.6,"endTime":1601.853,"body":"of your particular transaction."},{"speaker":"Let's take an example","startTime":1603.29,"endTime":1607.55,"body":"All right, let's go"},{"speaker":"Let's take an example","startTime":1603.29,"endTime":1607.55,"body":"now to fungible tokens."},{"speaker":"Let's take an example","startTime":1607.55,"endTime":1609.95,"body":"Why do you need a token at all?"},{"speaker":"Let's take an example","startTime":1609.95,"endTime":1611.66,"body":"What is a token?"},{"speaker":"Let's take an example","startTime":1611.66,"endTime":1614.51,"body":"Well, if you think about it,"},{"speaker":"Let's take an example","startTime":1614.51,"endTime":1616.79,"body":"let's say you've created"},{"speaker":"Let's take an example","startTime":1614.51,"endTime":1616.79,"body":"a computer program"},{"speaker":"Let's take an example","startTime":1616.79,"endTime":1618.62,"body":"which does something interesting,"},{"speaker":"Let's take an example","startTime":1618.62,"endTime":1621.29,"body":"one thing you might do"},{"speaker":"Let's take an example","startTime":1618.62,"endTime":1621.29,"body":"is, say, flight insurance,"},{"speaker":"Let's take an example","startTime":1621.29,"endTime":1623.84,"body":"we talked about that a few minutes ago."},{"speaker":"Let's take an example","startTime":1623.84,"endTime":1627.23,"body":"So if you apply through"},{"speaker":"Let's take an example","startTime":1623.84,"endTime":1627.23,"body":"my blockchain system"},{"speaker":"Let's take an example","startTime":1627.23,"endTime":1629.21,"body":"for flight insurance,"},{"speaker":"Let's take an example","startTime":1629.21,"endTime":1631.82,"body":"how do I charge you for it?"},{"speaker":"Let's take an example","startTime":1631.82,"endTime":1633.2,"body":"I mean, I'm giving you a service,"},{"speaker":"Let's take an example","startTime":1633.2,"endTime":1634.43,"body":"I'm giving you insurance,"},{"speaker":"Let's take an example","startTime":1634.43,"endTime":1636.23,"body":"so I want to charge you for it."},{"speaker":"Let's take an example","startTime":1636.23,"endTime":1637.13,"body":"One possibility,"},{"speaker":"Let's take an example","startTime":1637.13,"endTime":1640.25,"body":"I can charge you in pounds, or dollars."},{"speaker":"Let's take an example","startTime":1640.25,"endTime":1642.65,"body":"Problem is, dollars"},{"speaker":"Let's take an example","startTime":1640.25,"endTime":1642.65,"body":"live in the real world,"},{"speaker":"Let's take an example","startTime":1642.65,"endTime":1643.55,"body":"this is the crypto world,"},{"speaker":"Let's take an example","startTime":1643.55,"endTime":1645.53,"body":"it's going to take effort and time"},{"speaker":"Let's take an example","startTime":1645.53,"endTime":1647.36,"body":"to transfer money back and forth"},{"speaker":"Let's take an example","startTime":1647.36,"endTime":1649.97,"body":"between the crypto world, the real world."},{"speaker":"Let's take an example","startTime":1649.97,"endTime":1651.29,"body":"Second, I can say,"},{"speaker":"Let's take an example","startTime":1651.29,"endTime":1652.123,"body":"well, you know,"},{"speaker":"Let's take an example","startTime":1653.45,"endTime":1654.95,"body":"I'm running on the Ethereum system,"},{"speaker":"Let's take an example","startTime":1654.95,"endTime":1657.98,"body":"so I'll take payment in ether, fine,"},{"speaker":"Let's take an example","startTime":1657.98,"endTime":1659.75,"body":"or I can say,"},{"speaker":"Let's take an example","startTime":1659.75,"endTime":1663.413,"body":"I'm going to take payment"},{"speaker":"Let's take an example","startTime":1659.75,"endTime":1663.413,"body":"in my own made-up currency,"},{"speaker":"Let's take an example","startTime":1664.43,"endTime":1665.83,"body":"like an FTT Token for example,"},{"speaker":"Let's take an example","startTime":1665.83,"endTime":1667.853,"body":"which we'll talk about in a bit."},{"speaker":"Let's take an example","startTime":1668.96,"endTime":1671.15,"body":"Now, what's interesting about this?"},{"speaker":"Let's take an example","startTime":1671.15,"endTime":1674.093,"body":"Well, think about something like Helium."},{"speaker":"Let's take an example","startTime":1675.26,"endTime":1680.26,"body":"Helium is a system which"},{"speaker":"Let's take an example","startTime":1675.26,"endTime":1680.26,"body":"runs a network like this"},{"speaker":"Let's take an example","startTime":1680.51,"endTime":1685.51,"body":"to provide Wi-Fi access to"},{"speaker":"Let's take an example","startTime":1680.51,"endTime":1685.51,"body":"people around the world."},{"speaker":"Let's take an example","startTime":1685.67,"endTime":1686.96,"body":"The way it works is,"},{"speaker":"Let's take an example","startTime":1686.96,"endTime":1689.6,"body":"if you open up your Wi-Fi system"},{"speaker":"Let's take an example","startTime":1689.6,"endTime":1691.97,"body":"for strangers to connect to your Wi-Fi,"},{"speaker":"Let's take an example","startTime":1691.97,"endTime":1693.773,"body":"you earn Helium Tokens."},{"speaker":"Let's take an example","startTime":1695.33,"endTime":1697.1,"body":"The advantage of this one"},{"speaker":"Let's take an example","startTime":1697.1,"endTime":1699.95,"body":"is that you create something"},{"speaker":"Let's take an example","startTime":1697.1,"endTime":1699.95,"body":"called a network effect."},{"speaker":"Let's take an example","startTime":1699.95,"endTime":1702.56,"body":"People say, initially,"},{"speaker":"Let's take an example","startTime":1702.56,"endTime":1705.86,"body":"okay, why would I want to"},{"speaker":"Let's take an example","startTime":1702.56,"endTime":1705.86,"body":"be part of this network?"},{"speaker":"Let's take an example","startTime":1705.86,"endTime":1707.33,"body":"Think about Facebook,"},{"speaker":"Let's take an example","startTime":1707.33,"endTime":1709.31,"body":"why are we on Facebook?"},{"speaker":"Let's take an example","startTime":1709.31,"endTime":1711.47,"body":"I'm not on Facebook, by the way,"},{"speaker":"Let's take an example","startTime":1711.47,"endTime":1713.39,"body":"but people are only on Facebook"},{"speaker":"Let's take an example","startTime":1713.39,"endTime":1715.79,"body":"because their friends are on Facebook."},{"speaker":"Let's take an example","startTime":1715.79,"endTime":1717.11,"body":"If your friends are not on Facebook,"},{"speaker":"Let's take an example","startTime":1717.11,"endTime":1720.2,"body":"there's no incentive for"},{"speaker":"Let's take an example","startTime":1717.11,"endTime":1720.2,"body":"anyone to be on Facebook."},{"speaker":"Let's take an example","startTime":1720.2,"endTime":1721.7,"body":"So that's a network effect,"},{"speaker":"Let's take an example","startTime":1721.7,"endTime":1723.41,"body":"you only join a platform"},{"speaker":"Let's take an example","startTime":1723.41,"endTime":1726.02,"body":"because other people are"},{"speaker":"Let's take an example","startTime":1723.41,"endTime":1726.02,"body":"joining the platform."},{"speaker":"Let's take an example","startTime":1726.02,"endTime":1727.52,"body":"The same thing here,"},{"speaker":"Let's take an example","startTime":1727.52,"endTime":1729.92,"body":"you only join a platform like Helium"},{"speaker":"Let's take an example","startTime":1729.92,"endTime":1732.77,"body":"because everybody else"},{"speaker":"Let's take an example","startTime":1729.92,"endTime":1732.77,"body":"is on that platform,"},{"speaker":"Let's take an example","startTime":1732.77,"endTime":1733.883,"body":"providing Wi-Fi."},{"speaker":"Let's take an example","startTime":1735.83,"endTime":1738.113,"body":"But how do you get that platform started?"},{"speaker":"The chicken and egg problem","startTime":1740.18,"endTime":1742.7,"body":"people won't join it"},{"speaker":"The chicken and egg problem","startTime":1740.18,"endTime":1742.7,"body":"until there's money in it,"},{"speaker":"The chicken and egg problem","startTime":1742.7,"endTime":1744.68,"body":"but if people don't join,"},{"speaker":"The chicken and egg problem","startTime":1744.68,"endTime":1746.3,"body":"then there's no money in it."},{"speaker":"The chicken and egg problem","startTime":1746.3,"endTime":1748.07,"body":"The token solves that problem."},{"speaker":"The chicken and egg problem","startTime":1748.07,"endTime":1749.6,"body":"Initially, when you join,"},{"speaker":"The chicken and egg problem","startTime":1749.6,"endTime":1750.95,"body":"you get cheap tokens,"},{"speaker":"The chicken and egg problem","startTime":1750.95,"endTime":1752.9,"body":"but as the platform increases in value,"},{"speaker":"The chicken and egg problem","startTime":1752.9,"endTime":1754.3,"body":"the value of tokens goes up."},{"speaker":"The chicken and egg problem","startTime":1755.99,"endTime":1759.95,"body":"And creating a new token"},{"speaker":"The chicken and egg problem","startTime":1755.99,"endTime":1759.95,"body":"in Ethereum is dead easy,"},{"speaker":"The chicken and egg problem","startTime":1759.95,"endTime":1761.201,"body":"you just use, for example,"},{"speaker":"The chicken and egg problem","startTime":1761.201,"endTime":1762.551,"body":"\"The Ethereum Whitepaper,\""},{"speaker":"The chicken and egg problem","startTime":1762.551,"endTime":1763.82,"body":"there's a four-line code snippet"},{"speaker":"The chicken and egg problem","startTime":1763.82,"endTime":1765.98,"body":"for implementing a token system."},{"speaker":"The chicken and egg problem","startTime":1765.98,"endTime":1770.183,"body":"So there are literally"},{"speaker":"The chicken and egg problem","startTime":1765.98,"endTime":1770.183,"body":"thousands of tokens everywhere,"},{"speaker":"The chicken and egg problem","startTime":1771.32,"endTime":1772.16,"body":"but this allows us"},{"speaker":"The chicken and egg problem","startTime":1772.16,"endTime":1774.833,"body":"to reinvent the concept"},{"speaker":"The chicken and egg problem","startTime":1772.16,"endTime":1774.833,"body":"of capital raising."},{"speaker":"The chicken and egg problem","startTime":1775.67,"endTime":1779.09,"body":"How do you typically raise"},{"speaker":"The chicken and egg problem","startTime":1775.67,"endTime":1779.09,"body":"money as a new company?"},{"speaker":"The chicken and egg problem","startTime":1779.09,"endTime":1781.25,"body":"Well, you come up with a business plan,"},{"speaker":"The chicken and egg problem","startTime":1781.25,"endTime":1782.24,"body":"you're an entrepreneur,"},{"speaker":"The chicken and egg problem","startTime":1782.24,"endTime":1784.55,"body":"you go to a bank, you go"},{"speaker":"The chicken and egg problem","startTime":1782.24,"endTime":1784.55,"body":"to a venture capitalist,"},{"speaker":"The chicken and egg problem","startTime":1784.55,"endTime":1785.383,"body":"and you say,"},{"speaker":"The chicken and egg problem","startTime":1785.383,"endTime":1787.55,"body":"here's my business plan, give me money,"},{"speaker":"The chicken and egg problem","startTime":1787.55,"endTime":1789.86,"body":"and then you beg, and"},{"speaker":"The chicken and egg problem","startTime":1787.55,"endTime":1789.86,"body":"borrow, and whatever,"},{"speaker":"The chicken and egg problem","startTime":1789.86,"endTime":1790.73,"body":"and then, eventually,"},{"speaker":"The chicken and egg problem","startTime":1790.73,"endTime":1793.04,"body":"you do a roadshow, standard process,"},{"speaker":"The chicken and egg problem","startTime":1793.04,"endTime":1793.873,"body":"collect money."},{"speaker":"The chicken and egg problem","startTime":1795.05,"endTime":1797.69,"body":"Now, think about Ethereum, in contrast,"},{"speaker":"The chicken and egg problem","startTime":1797.69,"endTime":1799.373,"body":"how did Ethereum raise money?"},{"speaker":"The chicken and egg problem","startTime":1800.57,"endTime":1802.85,"body":"Well, Ethereum could have"},{"speaker":"The chicken and egg problem","startTime":1800.57,"endTime":1802.85,"body":"gone the traditional route,"},{"speaker":"The chicken and egg problem","startTime":1802.85,"endTime":1803.683,"body":"the traditional route"},{"speaker":"The chicken and egg problem","startTime":1803.683,"endTime":1805.25,"body":"would have been to go"},{"speaker":"The chicken and egg problem","startTime":1803.683,"endTime":1805.25,"body":"to a venture capitalist,"},{"speaker":"The chicken and egg problem","startTime":1805.25,"endTime":1807.14,"body":"say, we're establishing a new system,"},{"speaker":"The chicken and egg problem","startTime":1807.14,"endTime":1808.25,"body":"give us money,"},{"speaker":"The chicken and egg problem","startTime":1808.25,"endTime":1812.99,"body":"and we'll collect 1%, or maybe 0.1%"},{"speaker":"The chicken and egg problem","startTime":1812.99,"endTime":1815.99,"body":"of every Ethereum"},{"speaker":"The chicken and egg problem","startTime":1812.99,"endTime":1815.99,"body":"transaction like royalties,"},{"speaker":"The chicken and egg problem","startTime":1815.99,"endTime":1818.33,"body":"because we're opening up"},{"speaker":"The chicken and egg problem","startTime":1815.99,"endTime":1818.33,"body":"the system to everybody,"},{"speaker":"The chicken and egg problem","startTime":1818.33,"endTime":1821.03,"body":"and that's our cash cashflow coming out."},{"speaker":"The chicken and egg problem","startTime":1821.03,"endTime":1822.14,"body":"It would have worked,"},{"speaker":"The chicken and egg problem","startTime":1822.14,"endTime":1823.52,"body":"except these guys said,"},{"speaker":"The chicken and egg problem","startTime":1823.52,"endTime":1825.83,"body":"we want to build a decentralized system,"},{"speaker":"The chicken and egg problem","startTime":1825.83,"endTime":1829.01,"body":"so we are going to issue"},{"speaker":"The chicken and egg problem","startTime":1825.83,"endTime":1829.01,"body":"tokens, ether tokens,"},{"speaker":"The chicken and egg problem","startTime":1829.01,"endTime":1831.38,"body":"give us bitcoin, we'll give you tokens."},{"speaker":"The chicken and egg problem","startTime":1831.38,"endTime":1832.82,"body":"And the amount of tokens they raised"},{"speaker":"The chicken and egg problem","startTime":1832.82,"endTime":1834.527,"body":"was about $18 million"},{"speaker":"The chicken and egg problem","startTime":1834.527,"endTime":1835.94,"body":"to start the Ethereum system,"},{"speaker":"The chicken and egg problem","startTime":1835.94,"endTime":1838.76,"body":"that eventually became $122 million,"},{"speaker":"The chicken and egg problem","startTime":1838.76,"endTime":1841.973,"body":"so a really good investment over there."},{"speaker":"The chicken and egg problem","startTime":1844.04,"endTime":1845.66,"body":"But that exploded even further,"},{"speaker":"The chicken and egg problem","startTime":1845.66,"endTime":1846.89,"body":"so everyone was saying,"},{"speaker":"The chicken and egg problem","startTime":1846.89,"endTime":1848.48,"body":"well, Ethereum can do this,"},{"speaker":"The chicken and egg problem","startTime":1848.48,"endTime":1851.66,"body":"and so they started a"},{"speaker":"The chicken and egg problem","startTime":1848.48,"endTime":1851.66,"body":"world of coin offerings."},{"speaker":"The chicken and egg problem","startTime":1851.66,"endTime":1853.19,"body":"The idea was,"},{"speaker":"The chicken and egg problem","startTime":1853.19,"endTime":1854.57,"body":"give me money"},{"speaker":"The chicken and egg problem","startTime":1854.57,"endTime":1857.69,"body":"and I will give you"},{"speaker":"The chicken and egg problem","startTime":1854.57,"endTime":1857.69,"body":"coins in my new offering."},{"speaker":"The chicken and egg problem","startTime":1857.69,"endTime":1861.11,"body":"So the sheer number of"},{"speaker":"The chicken and egg problem","startTime":1857.69,"endTime":1861.11,"body":"initial coin offerings"},{"speaker":"The chicken and egg problem","startTime":1861.11,"endTime":1866.11,"body":"took off dramatically in 2017, and so on."},{"speaker":"The chicken and egg problem","startTime":1867.29,"endTime":1869.06,"body":"This was like an initial public offering,"},{"speaker":"The chicken and egg problem","startTime":1869.06,"endTime":1871.64,"body":"except, give me money,"},{"speaker":"The chicken and egg problem","startTime":1871.64,"endTime":1875.45,"body":"and I'm giving you my"},{"speaker":"The chicken and egg problem","startTime":1871.64,"endTime":1875.45,"body":"made-up coin, my token,"},{"speaker":"The chicken and egg problem","startTime":1875.45,"endTime":1877.39,"body":"and hopefully, the value will go up"},{"speaker":"The chicken and egg problem","startTime":1877.39,"endTime":1878.99,"body":"if this thing takes off."},{"speaker":"The chicken and egg problem","startTime":1878.99,"endTime":1882.38,"body":"Good stuff, except the"},{"speaker":"The chicken and egg problem","startTime":1878.99,"endTime":1882.38,"body":"SEC came in and said,"},{"speaker":"The chicken and egg problem","startTime":1882.38,"endTime":1884.84,"body":"hold on, this is not a currency,"},{"speaker":"The chicken and egg problem","startTime":1884.84,"endTime":1886.31,"body":"this is a security,"},{"speaker":"The chicken and egg problem","startTime":1886.31,"endTime":1889.07,"body":"so if you're issuing a"},{"speaker":"The chicken and egg problem","startTime":1886.31,"endTime":1889.07,"body":"security to a US investor,"},{"speaker":"The chicken and egg problem","startTime":1889.07,"endTime":1891.61,"body":"you have to comply with"},{"speaker":"The chicken and egg problem","startTime":1889.07,"endTime":1891.61,"body":"all these SEC rules,"},{"speaker":"The chicken and egg problem","startTime":1891.61,"endTime":1893.87,"body":"and the SEC rules are pretty stringent"},{"speaker":"The chicken and egg problem","startTime":1893.87,"endTime":1895.94,"body":"when it comes to offering"},{"speaker":"The chicken and egg problem","startTime":1893.87,"endTime":1895.94,"body":"this kind of stuff,"},{"speaker":"The chicken and egg problem","startTime":1895.94,"endTime":1897.59,"body":"so ICO has pretty much dried out,"},{"speaker":"The chicken and egg problem","startTime":1898.61,"endTime":1901.16,"body":"very few ICOs being launched"},{"speaker":"The chicken and egg problem","startTime":1898.61,"endTime":1901.16,"body":"in the last few years."},{"speaker":"The chicken and egg problem","startTime":1901.16,"endTime":1903.59,"body":"In fact, this is my favorite ICO,"},{"speaker":"The chicken and egg problem","startTime":1903.59,"endTime":1906.233,"body":"it was called the Useless Ethereum token."},{"speaker":"The chicken and egg problem","startTime":1907.64,"endTime":1908.473,"body":"So these guys say,"},{"speaker":"The chicken and egg problem","startTime":1908.473,"endTime":1912.223,"body":"\"The first 100% honest Ethereum ICO.\""},{"speaker":"The chicken and egg problem","startTime":1912.223,"endTime":1913.056,"body":"They say,"},{"speaker":"The chicken and egg problem","startTime":1913.056,"endTime":1914.51,"body":"you're going to give some random"},{"speaker":"The chicken and egg problem","startTime":1913.056,"endTime":1914.51,"body":"person on the Internet money,"},{"speaker":"The chicken and egg problem","startTime":1914.51,"endTime":1916.13,"body":"and they're going to take it"},{"speaker":"The chicken and egg problem","startTime":1914.51,"endTime":1916.13,"body":"and by some stuff with it,"},{"speaker":"The chicken and egg problem","startTime":1916.13,"endTime":1918.773,"body":"possibly electronics,"},{"speaker":"The chicken and egg problem","startTime":1916.13,"endTime":1918.773,"body":"maybe even a big-screen TV,"},{"speaker":"The chicken and egg problem","startTime":1919.88,"endTime":1920.717,"body":"and this guy says,"},{"speaker":"The chicken and egg problem","startTime":1920.717,"endTime":1924.83,"body":"the UET ICO transparently"},{"speaker":"The chicken and egg problem","startTime":1920.717,"endTime":1924.83,"body":"offers investors no value,"},{"speaker":"The chicken and egg problem","startTime":1924.83,"endTime":1926.66,"body":"so no expectation of gains,"},{"speaker":"The chicken and egg problem","startTime":1926.66,"endTime":1928.52,"body":"no gains means fewer investors,"},{"speaker":"The chicken and egg problem","startTime":1928.52,"endTime":1930.11,"body":"few investors means few transactions,"},{"speaker":"The chicken and egg problem","startTime":1930.11,"endTime":1933.41,"body":"few transactions means"},{"speaker":"The chicken and egg problem","startTime":1930.11,"endTime":1933.41,"body":"no Ethereum network lag,"},{"speaker":"The chicken and egg problem","startTime":1933.41,"endTime":1935.06,"body":"you're done,"},{"speaker":"The chicken and egg problem","startTime":1935.06,"endTime":1936.743,"body":"it's even called UET."},{"speaker":"The chicken and egg problem","startTime":1939.29,"endTime":1942.14,"body":"And they sold $350,000 worth of them,"},{"speaker":"The chicken and egg problem","startTime":1942.14,"endTime":1944.75,"body":"which appreciated more than 240%,"},{"speaker":"The chicken and egg problem","startTime":1944.75,"endTime":1946.76,"body":"that's how obsessive people were"},{"speaker":"The chicken and egg problem","startTime":1946.76,"endTime":1948.383,"body":"about buying this kind of stuff."},{"speaker":"The chicken and egg problem","startTime":1949.76,"endTime":1954.62,"body":"And then the next development"},{"speaker":"The chicken and egg problem","startTime":1949.76,"endTime":1954.62,"body":"after the ICOs dropped off"},{"speaker":"The chicken and egg problem","startTime":1954.62,"endTime":1955.453,"body":"was the concept"},{"speaker":"The chicken and egg problem","startTime":1955.453,"endTime":1958.973,"body":"of a decentralized"},{"speaker":"The chicken and egg problem","startTime":1955.453,"endTime":1958.973,"body":"autonomous organization, DAO."},{"speaker":"The chicken and egg problem","startTime":1960.17,"endTime":1963.11,"body":"The idea here is you"},{"speaker":"The chicken and egg problem","startTime":1960.17,"endTime":1963.11,"body":"have a group of people"},{"speaker":"The chicken and egg problem","startTime":1963.11,"endTime":1965.72,"body":"who are like a venture capital fund,"},{"speaker":"The chicken and egg problem","startTime":1965.72,"endTime":1968.9,"body":"so all of us deposit money into this fund"},{"speaker":"The chicken and egg problem","startTime":1968.9,"endTime":1971.48,"body":"and somebody applies to us to say,"},{"speaker":"The chicken and egg problem","startTime":1971.48,"endTime":1973.25,"body":"let's start this project,"},{"speaker":"The chicken and egg problem","startTime":1973.25,"endTime":1974.75,"body":"I want money to fund this project,"},{"speaker":"The chicken and egg problem","startTime":1974.75,"endTime":1978.44,"body":"and people vote based on"},{"speaker":"The chicken and egg problem","startTime":1974.75,"endTime":1978.44,"body":"their token ownership,"},{"speaker":"The chicken and egg problem","startTime":1978.44,"endTime":1980.9,"body":"I want to invest in that project."},{"speaker":"The chicken and egg problem","startTime":1980.9,"endTime":1982.04,"body":"The problem, of course, is,"},{"speaker":"The chicken and egg problem","startTime":1982.04,"endTime":1984.5,"body":"this sounds great, right, decentralized,"},{"speaker":"The chicken and egg problem","startTime":1984.5,"endTime":1985.733,"body":"the problem is,"},{"speaker":"The chicken and egg problem","startTime":1987.53,"endTime":1990.26,"body":"are you a corporation or a partnership?"},{"speaker":"The chicken and egg problem","startTime":1990.26,"endTime":1991.91,"body":"And in May, last year,"},{"speaker":"The chicken and egg problem","startTime":1991.91,"endTime":1994.94,"body":"a DAO was sued because it lost money,"},{"speaker":"The chicken and egg problem","startTime":1994.94,"endTime":1995.9,"body":"and they said"},{"speaker":"The chicken and egg problem","startTime":1995.9,"endTime":1999.41,"body":"there are no titles of incorporation here,"},{"speaker":"The chicken and egg problem","startTime":1999.41,"endTime":2003.28,"body":"you just gave money to be part of a DAO,"},{"speaker":"The chicken and egg problem","startTime":2003.28,"endTime":2004.72,"body":"which means you're a partnership,"},{"speaker":"The chicken and egg problem","startTime":2004.72,"endTime":2006.7,"body":"and if you're a partnership, in America,"},{"speaker":"The chicken and egg problem","startTime":2006.7,"endTime":2008.713,"body":"you have unlimited liability."},{"speaker":"The chicken and egg problem","startTime":2009.61,"endTime":2010.57,"body":"If you're a corporation,"},{"speaker":"The chicken and egg problem","startTime":2010.57,"endTime":2011.98,"body":"the maximum you can lose"},{"speaker":"The chicken and egg problem","startTime":2011.98,"endTime":2014.23,"body":"is the amount of money you put in,"},{"speaker":"The chicken and egg problem","startTime":2014.23,"endTime":2015.82,"body":"but if you're a partnership,"},{"speaker":"The chicken and egg problem","startTime":2015.82,"endTime":2018.1,"body":"like Lloyd's of London nearly went under"},{"speaker":"The chicken and egg problem","startTime":2018.1,"endTime":2021.82,"body":"because all the names were"},{"speaker":"The chicken and egg problem","startTime":2018.1,"endTime":2021.82,"body":"called upon to give money"},{"speaker":"The chicken and egg problem","startTime":2021.82,"endTime":2024.43,"body":"beyond the amount they"},{"speaker":"The chicken and egg problem","startTime":2021.82,"endTime":2024.43,"body":"had already invested."},{"speaker":"The chicken and egg problem","startTime":2024.43,"endTime":2025.99,"body":"So you're not quite sure,"},{"speaker":"The chicken and egg problem","startTime":2025.99,"endTime":2027.67,"body":"is this a partnership?"},{"speaker":"The chicken and egg problem","startTime":2027.67,"endTime":2029.32,"body":"You didn't think it was a partnership,"},{"speaker":"The chicken and egg problem","startTime":2029.32,"endTime":2031.603,"body":"but it can be treated as a partnership."},{"speaker":"The chicken and egg problem","startTime":2032.62,"endTime":2035.26,"body":"Now, let's go to the next stage,"},{"speaker":"The chicken and egg problem","startTime":2035.26,"endTime":2036.76,"body":"so there's a fungible token,"},{"speaker":"The chicken and egg problem","startTime":2036.76,"endTime":2038.98,"body":"and a non-fungible token."},{"speaker":"The chicken and egg problem","startTime":2038.98,"endTime":2040.817,"body":"What's a non-fungible token, an NFT?"},{"speaker":"The chicken and egg problem","startTime":2042.46,"endTime":2043.99,"body":"The idea here is simple,"},{"speaker":"The chicken and egg problem","startTime":2043.99,"endTime":2045.583,"body":"it's a unique token."},{"speaker":"The chicken and egg problem","startTime":2046.51,"endTime":2047.77,"body":"What does that mean?"},{"speaker":"The chicken and egg problem","startTime":2047.77,"endTime":2051.68,"body":"Well, the protocol is Ethereum 721,"},{"speaker":"The chicken and egg problem","startTime":2051.68,"endTime":2053.71,"body":"which just basically says,"},{"speaker":"The chicken and egg problem","startTime":2053.71,"endTime":2056.44,"body":"add a token ID to your contract number"},{"speaker":"The chicken and egg problem","startTime":2056.44,"endTime":2058.57,"body":"so that that's unique."},{"speaker":"The chicken and egg problem","startTime":2058.57,"endTime":2060.13,"body":"That means, in other words,"},{"speaker":"The chicken and egg problem","startTime":2060.13,"endTime":2061.27,"body":"when you write a program,"},{"speaker":"The chicken and egg problem","startTime":2061.27,"endTime":2062.2,"body":"you're just saying,"},{"speaker":"The chicken and egg problem","startTime":2062.2,"endTime":2065.11,"body":"send a message to this particular address"},{"speaker":"The chicken and egg problem","startTime":2065.11,"endTime":2066.7,"body":"with this token ID,"},{"speaker":"The chicken and egg problem","startTime":2066.7,"endTime":2068.59,"body":"it will return you something,"},{"speaker":"The chicken and egg problem","startTime":2068.59,"endTime":2072.34,"body":"a picture of a monkey, a picture of kitty,"},{"speaker":"The chicken and egg problem","startTime":2072.34,"endTime":2074.77,"body":"a picture of something else,"},{"speaker":"The chicken and egg problem","startTime":2074.77,"endTime":2075.603,"body":"and people said,"},{"speaker":"The chicken and egg problem","startTime":2075.603,"endTime":2077.86,"body":"whoa, that's worth a lot of money."},{"speaker":"The chicken and egg problem","startTime":2077.86,"endTime":2078.693,"body":"How much money?"},{"speaker":"The chicken and egg problem","startTime":2079.6,"endTime":2082.84,"body":"Well, Beeple sold an NFT, this one here,"},{"speaker":"The chicken and egg problem","startTime":2082.84,"endTime":2085.153,"body":"for $69 million."},{"speaker":"The chicken and egg problem","startTime":2086.98,"endTime":2089.14,"body":"And basically, until then,"},{"speaker":"The chicken and egg problem","startTime":2089.14,"endTime":2092.2,"body":"the maximum he'd ever sold"},{"speaker":"The chicken and egg problem","startTime":2089.14,"endTime":2092.2,"body":"something for was $100,"},{"speaker":"The chicken and egg problem","startTime":2092.2,"endTime":2094.66,"body":"this was $69 million."},{"speaker":"The chicken and egg problem","startTime":2094.66,"endTime":2095.62,"body":"And what is it?"},{"speaker":"The chicken and egg problem","startTime":2095.62,"endTime":2097.42,"body":"Basically, a computer program which,"},{"speaker":"The chicken and egg problem","startTime":2097.42,"endTime":2098.71,"body":"every time you type it in,"},{"speaker":"The chicken and egg problem","startTime":2098.71,"endTime":2101.29,"body":"would go to one picture over there."},{"speaker":"The chicken and egg problem","startTime":2101.29,"endTime":2103.87,"body":"You can download the picture for free,"},{"speaker":"The chicken and egg problem","startTime":2103.87,"endTime":2105.82,"body":"but in this particular case, of course,"},{"speaker":"The chicken and egg problem","startTime":2105.82,"endTime":2107.67,"body":"this guy who paid that money"},{"speaker":"The chicken and egg problem","startTime":2107.67,"endTime":2109.0,"body":"is the only guy who,"},{"speaker":"The chicken and egg problem","startTime":2109.0,"endTime":2110.92,"body":"the token would come back and say,"},{"speaker":"The chicken and egg problem","startTime":2110.92,"endTime":2114.13,"body":"this pointer was purchased by this person."},{"speaker":"The chicken and egg problem","startTime":2114.13,"endTime":2118.693,"body":"Jack Dorsey sold his first"},{"speaker":"The chicken and egg problem","startTime":2114.13,"endTime":2118.693,"body":"tweet for over $1 million."},{"speaker":"The chicken and egg problem","startTime":2120.43,"endTime":2122.26,"body":"To put that into perspective,"},{"speaker":"The chicken and egg problem","startTime":2122.26,"endTime":2123.25,"body":"if you decided to buy"},{"speaker":"The chicken and egg problem","startTime":2123.25,"endTime":2127.06,"body":"a physical painting of"},{"speaker":"The chicken and egg problem","startTime":2123.25,"endTime":2127.06,"body":"water lilies by Monet,"},{"speaker":"The chicken and egg problem","startTime":2127.06,"endTime":2128.443,"body":"that was only 54 million."},{"speaker":"The chicken and egg problem","startTime":2130.0,"endTime":2130.96,"body":"Okay, well, you know,"},{"speaker":"The chicken and egg problem","startTime":2130.96,"endTime":2132.16,"body":"some people did that."},{"speaker":"The chicken and egg problem","startTime":2132.16,"endTime":2135.823,"body":"Here's a CryptoKitty cat for $172,000,"},{"speaker":"The chicken and egg problem","startTime":2138.1,"endTime":2140.47,"body":"and of course, this is the Bored Apes,"},{"speaker":"The chicken and egg problem","startTime":2140.47,"endTime":2142.06,"body":"there were insider trading allegations."},{"speaker":"The chicken and egg problem","startTime":2142.06,"endTime":2144.52,"body":"This guy said, a guy called Nate Chastain,"},{"speaker":"The chicken and egg problem","startTime":2144.52,"endTime":2145.78,"body":"who was head of OpenSea,"},{"speaker":"The chicken and egg problem","startTime":2145.78,"endTime":2147.73,"body":"basically would figure out"},{"speaker":"The chicken and egg problem","startTime":2147.73,"endTime":2149.92,"body":"what was being sold on Monday morning,"},{"speaker":"The chicken and egg problem","startTime":2149.92,"endTime":2151.36,"body":"buy them on Sunday evening,"},{"speaker":"The chicken and egg problem","startTime":2151.36,"endTime":2153.31,"body":"and then put them on the market on Monday."},{"speaker":"The chicken and egg problem","startTime":2153.31,"endTime":2155.353,"body":"He was accused of insider trading,"},{"speaker":"The chicken and egg problem","startTime":2156.52,"endTime":2157.93,"body":"but insider trading,"},{"speaker":"The chicken and egg problem","startTime":2157.93,"endTime":2158.98,"body":"it sounds weird, right?"},{"speaker":"The chicken and egg problem","startTime":2158.98,"endTime":2161.29,"body":"I mean, this is a pointer."},{"speaker":"The chicken and egg problem","startTime":2161.29,"endTime":2162.922,"body":"I mean, how do you know it's"},{"speaker":"The chicken and egg problem","startTime":2161.29,"endTime":2162.922,"body":"going to go up in value?"},{"speaker":"The chicken and egg problem","startTime":2162.922,"endTime":2165.58,"body":"What do you know about the"},{"speaker":"The chicken and egg problem","startTime":2162.922,"endTime":2165.58,"body":"true value of this stuff?"},{"speaker":"The chicken and egg problem","startTime":2165.58,"endTime":2167.47,"body":"If you don't know what the true value is,"},{"speaker":"The chicken and egg problem","startTime":2167.47,"endTime":2169.183,"body":"how can you be an insider?"},{"speaker":"The chicken and egg problem","startTime":2170.53,"endTime":2171.76,"body":"There's no true value,"},{"speaker":"The chicken and egg problem","startTime":2171.76,"endTime":2172.593,"body":"what do you do?"},{"speaker":"The chicken and egg problem","startTime":2173.56,"endTime":2177.133,"body":"So if you guys find this fishy,"},{"speaker":"The chicken and egg problem","startTime":2179.29,"endTime":2180.79,"body":"some heads nodding here,"},{"speaker":"The chicken and egg problem","startTime":2180.79,"endTime":2182.2,"body":"no problem."},{"speaker":"The chicken and egg problem","startTime":2182.2,"endTime":2184.99,"body":"This is something called"},{"speaker":"The chicken and egg problem","startTime":2182.2,"endTime":2184.99,"body":"L'Eau de Distance,"},{"speaker":"The chicken and egg problem","startTime":2184.99,"endTime":2187.723,"body":"which is a virtual perfume."},{"speaker":"The chicken and egg problem","startTime":2188.694,"endTime":2190.24,"body":"(audience laughs)"},{"speaker":"The chicken and egg problem","startTime":2190.24,"endTime":2194.02,"body":"This is a non-fungible"},{"speaker":"The chicken and egg problem","startTime":2190.24,"endTime":2194.02,"body":"token for a virtual perfume."},{"speaker":"The chicken and egg problem","startTime":2194.02,"endTime":2196.66,"body":"So essentially, when you click on that,"},{"speaker":"The chicken and egg problem","startTime":2196.66,"endTime":2198.97,"body":"and you can go to that particular site,"},{"speaker":"The chicken and egg problem","startTime":2198.97,"endTime":2201.4,"body":"it will give you this."},{"speaker":"The chicken and egg problem","startTime":2201.4,"endTime":2202.39,"body":"I downloaded it,"},{"speaker":"The chicken and egg problem","startTime":2202.39,"endTime":2203.223,"body":"I mean, it's free,"},{"speaker":"The chicken and egg problem","startTime":2203.223,"endTime":2205.27,"body":"but I didn't buy it."},{"speaker":"The chicken and egg problem","startTime":2205.27,"endTime":2207.07,"body":"Somebody bought it,"},{"speaker":"The chicken and egg problem","startTime":2207.07,"endTime":2211.66,"body":"and so that's the smell of NFTs."},{"speaker":"The chicken and egg problem","startTime":2214.63,"endTime":2216.1,"body":"But if you think about it,"},{"speaker":"The chicken and egg problem","startTime":2216.1,"endTime":2217.66,"body":"that's actually quite interesting."},{"speaker":"The chicken and egg problem","startTime":2217.66,"endTime":2218.493,"body":"Initially, of course,"},{"speaker":"The chicken and egg problem","startTime":2218.493,"endTime":2219.49,"body":"you have all these stories"},{"speaker":"The chicken and egg problem","startTime":2219.49,"endTime":2222.37,"body":"about CryptoKitties, and"},{"speaker":"The chicken and egg problem","startTime":2219.49,"endTime":2222.37,"body":"Beeple, and all that,"},{"speaker":"The chicken and egg problem","startTime":2222.37,"endTime":2225.28,"body":"but how do you reinvent borrowing?"},{"speaker":"The chicken and egg problem","startTime":2225.28,"endTime":2227.97,"body":"Think about, you want to buy a house."},{"speaker":"The chicken and egg problem","startTime":2227.97,"endTime":2229.66,"body":"In the traditional finance world,"},{"speaker":"The chicken and egg problem","startTime":2229.66,"endTime":2230.62,"body":"what do you do?"},{"speaker":"The chicken and egg problem","startTime":2230.62,"endTime":2231.453,"body":"Go to your bank,"},{"speaker":"The chicken and egg problem","startTime":2231.453,"endTime":2233.56,"body":"the bank will send an"},{"speaker":"The chicken and egg problem","startTime":2231.453,"endTime":2233.56,"body":"appraiser over to your house,"},{"speaker":"The chicken and egg problem","startTime":2233.56,"endTime":2234.393,"body":"the appraiser will say,"},{"speaker":"The chicken and egg problem","startTime":2234.393,"endTime":2235.93,"body":"this house is worth 1 million pounds,"},{"speaker":"The chicken and egg problem","startTime":2235.93,"endTime":2237.34,"body":"fine, I'll give you half of that,"},{"speaker":"The chicken and egg problem","startTime":2237.34,"endTime":2240.85,"body":"half, 500,000, security"},{"speaker":"The chicken and egg problem","startTime":2237.34,"endTime":2240.85,"body":"against your house."},{"speaker":"The chicken and egg problem","startTime":2240.85,"endTime":2243.28,"body":"But now, you want to do"},{"speaker":"The chicken and egg problem","startTime":2240.85,"endTime":2243.28,"body":"this in the crypto world,"},{"speaker":"The chicken and egg problem","startTime":2243.28,"endTime":2244.113,"body":"how do you do it,"},{"speaker":"The chicken and egg problem","startTime":2244.113,"endTime":2246.34,"body":"how do you sell half your house?"},{"speaker":"The chicken and egg problem","startTime":2246.34,"endTime":2249.13,"body":"I mean, raise money, half your house?"},{"speaker":"The chicken and egg problem","startTime":2249.13,"endTime":2250.21,"body":"And first of all, number one,"},{"speaker":"The chicken and egg problem","startTime":2250.21,"endTime":2251.44,"body":"you don't want to leave your house,"},{"speaker":"The chicken and egg problem","startTime":2251.44,"endTime":2254.26,"body":"number two, how do you do"},{"speaker":"The chicken and egg problem","startTime":2251.44,"endTime":2254.26,"body":"it for half your house?"},{"speaker":"The chicken and egg problem","startTime":2254.26,"endTime":2256.06,"body":"That means without selling it."},{"speaker":"Answer","startTime":2256.06,"endTime":2260.47,"body":"maybe you do something,"},{"speaker":"Answer","startTime":2256.06,"endTime":2260.47,"body":"an NFT on your house."},{"speaker":"Answer","startTime":2260.47,"endTime":2262.55,"body":"So you issue an NFT on your house,"},{"speaker":"Answer","startTime":2262.55,"endTime":2266.71,"body":"which is pointing directly to"},{"speaker":"Answer","startTime":2262.55,"endTime":2266.71,"body":"your title deed on the house,"},{"speaker":"Answer","startTime":2266.71,"endTime":2269.44,"body":"and then somebody buys that,"},{"speaker":"Answer","startTime":2269.44,"endTime":2270.46,"body":"so five years from now,"},{"speaker":"Answer","startTime":2270.46,"endTime":2272.02,"body":"when the loan comes due,"},{"speaker":"Answer","startTime":2272.02,"endTime":2273.31,"body":"you toss a coin."},{"speaker":"Answer","startTime":2273.31,"endTime":2275.44,"body":"It comes up heads, he"},{"speaker":"Answer","startTime":2273.31,"endTime":2275.44,"body":"gets the entire house,"},{"speaker":"Answer","startTime":2275.44,"endTime":2276.73,"body":"tails, you keep the house,"},{"speaker":"Answer","startTime":2276.73,"endTime":2278.655,"body":"so you've a 50% of keeping the house"},{"speaker":"Answer","startTime":2278.655,"endTime":2280.543,"body":"and a 50% chance of losing the house."},{"speaker":"Answer","startTime":2281.98,"endTime":2283.12,"body":"Suppose you don't want to do that,"},{"speaker":"Answer","startTime":2283.12,"endTime":2284.2,"body":"you're like, now hold on a minute,"},{"speaker":"Answer","startTime":2284.2,"endTime":2286.12,"body":"I don't want a 50% chance losing my house,"},{"speaker":"Answer","startTime":2286.12,"endTime":2286.953,"body":"no problem,"},{"speaker":"Answer","startTime":2286.953,"endTime":2287.786,"body":"you go into the market,"},{"speaker":"Answer","startTime":2287.786,"endTime":2289.75,"body":"buy an NFT of a different house"},{"speaker":"Answer","startTime":2289.75,"endTime":2291.73,"body":"which is in the same class of houses,"},{"speaker":"Answer","startTime":2291.73,"endTime":2294.34,"body":"so a house in the London"},{"speaker":"Answer","startTime":2291.73,"endTime":2294.34,"body":"market, in this area,"},{"speaker":"Answer","startTime":2294.34,"endTime":2296.56,"body":"and then replace your NFT with that NFT,"},{"speaker":"Answer","startTime":2296.56,"endTime":2298.537,"body":"so you never actually"},{"speaker":"Answer","startTime":2296.56,"endTime":2298.537,"body":"go through with that."},{"speaker":"Answer","startTime":2298.537,"endTime":2302.44,"body":"But the point is you can do"},{"speaker":"Answer","startTime":2298.537,"endTime":2302.44,"body":"this in the crypto world,"},{"speaker":"Answer","startTime":2302.44,"endTime":2303.73,"body":"like raising money,"},{"speaker":"Answer","startTime":2303.73,"endTime":2305.67,"body":"without ever actually having to go"},{"speaker":"Answer","startTime":2305.67,"endTime":2307.52,"body":"to a traditional financial authority."},{"speaker":"Answer","startTime":2309.13,"endTime":2312.64,"body":"Now, to make this useful for business,"},{"speaker":"Answer","startTime":2312.64,"endTime":2313.987,"body":"we need to solve a problem,"},{"speaker":"Answer","startTime":2313.987,"endTime":2317.11,"body":"and the problem is called"},{"speaker":"Answer","startTime":2313.987,"endTime":2317.11,"body":"the blockchain trilemma."},{"speaker":"Answer","startTime":2317.11,"endTime":2319.18,"body":"Vitalik Buterin put that up,"},{"speaker":"Answer","startTime":2319.18,"endTime":2320.02,"body":"and his thing was,"},{"speaker":"Answer","startTime":2320.02,"endTime":2321.97,"body":"you can have two of these three things,"},{"speaker":"Answer","startTime":2321.97,"endTime":2325.54,"body":"you can have security,"},{"speaker":"Answer","startTime":2321.97,"endTime":2325.54,"body":"you can have stability,"},{"speaker":"Answer","startTime":2325.54,"endTime":2327.67,"body":"or you can have decentralization,"},{"speaker":"Answer","startTime":2327.67,"endTime":2329.623,"body":"you cannot have all three."},{"speaker":"Answer","startTime":2331.09,"endTime":2332.687,"body":"If you think of a traditional chain,"},{"speaker":"Answer","startTime":2332.687,"endTime":2334.0,"body":"like Bitcoin, like Ethereum,"},{"speaker":"Answer","startTime":2334.0,"endTime":2336.25,"body":"they're decentralized"},{"speaker":"Answer","startTime":2334.0,"endTime":2336.25,"body":"and they're very secure,"},{"speaker":"Answer","startTime":2336.25,"endTime":2337.96,"body":"but they're not scalable."},{"speaker":"Answer","startTime":2337.96,"endTime":2340.48,"body":"If you think of something"},{"speaker":"Answer","startTime":2337.96,"endTime":2340.48,"body":"that's scalable and secure,"},{"speaker":"Answer","startTime":2340.48,"endTime":2343.3,"body":"it's high throughput chains,"},{"speaker":"Answer","startTime":2343.3,"endTime":2345.46,"body":"but they're not decentralized."},{"speaker":"Answer","startTime":2345.46,"endTime":2347.62,"body":"Or you think of a multi-chain ecosystem,"},{"speaker":"Answer","startTime":2347.62,"endTime":2348.97,"body":"they're decentralized and scalable,"},{"speaker":"Answer","startTime":2348.97,"endTime":2350.12,"body":"but they're not secure."},{"speaker":"Answer","startTime":2351.16,"endTime":2352.75,"body":"Solving this problem"},{"speaker":"Answer","startTime":2352.75,"endTime":2354.61,"body":"is one of the biggest"},{"speaker":"Answer","startTime":2352.75,"endTime":2354.61,"body":"things that crypto has,"},{"speaker":"Answer","startTime":2354.61,"endTime":2356.92,"body":"how do you make all three things happen?"},{"speaker":"Answer","startTime":2356.92,"endTime":2358.84,"body":"Very, very tough to do."},{"speaker":"Answer","startTime":2358.84,"endTime":2362.05,"body":"And besides, you have a"},{"speaker":"Answer","startTime":2358.84,"endTime":2362.05,"body":"problem with regulators."},{"speaker":"Answer","startTime":2362.05,"endTime":2364.06,"body":"Your regulator comes to you and says,"},{"speaker":"Answer","startTime":2364.06,"endTime":2365.38,"body":"okay, so how do you ensure"},{"speaker":"Answer","startTime":2365.38,"endTime":2367.54,"body":"the security of your transactions?"},{"speaker":"Answer","startTime":2367.54,"endTime":2368.373,"body":"You're like,"},{"speaker":"Answer","startTime":2368.373,"endTime":2369.82,"body":"hmm, I've got some miners in Russia"},{"speaker":"Answer","startTime":2369.82,"endTime":2373.18,"body":"who are looking at the security,"},{"speaker":"Answer","startTime":2373.18,"endTime":2375.58,"body":"your regulator's not going"},{"speaker":"Answer","startTime":2373.18,"endTime":2375.58,"body":"to be really very happy."},{"speaker":"Answer","startTime":2376.48,"endTime":2379.3,"body":"So some banks said,"},{"speaker":"Answer","startTime":2379.3,"endTime":2381.49,"body":"okay, we can forget about all this"},{"speaker":"Answer","startTime":2381.49,"endTime":2383.38,"body":"and go with this route here,"},{"speaker":"Answer","startTime":2383.38,"endTime":2385.27,"body":"which is basically a"},{"speaker":"Answer","startTime":2383.38,"endTime":2385.27,"body":"permission blockchain,"},{"speaker":"Answer","startTime":2385.27,"endTime":2386.68,"body":"a private blockchain,"},{"speaker":"Answer","startTime":2386.68,"endTime":2388.54,"body":"nobody else is allowed to participate"},{"speaker":"Answer","startTime":2388.54,"endTime":2390.76,"body":"except for 10 banks who know each other,"},{"speaker":"Answer","startTime":2390.76,"endTime":2391.9,"body":"and they're the only people"},{"speaker":"Answer","startTime":2391.9,"endTime":2394.93,"body":"allowed to read or write"},{"speaker":"Answer","startTime":2391.9,"endTime":2394.93,"body":"on that blockchain,"},{"speaker":"Answer","startTime":2394.93,"endTime":2396.103,"body":"that's one possibility."},{"speaker":"Answer","startTime":2397.24,"endTime":2399.79,"body":"But the last part of my talk today is,"},{"speaker":"Answer","startTime":2399.79,"endTime":2402.697,"body":"how do you move from the"},{"speaker":"Answer","startTime":2399.79,"endTime":2402.697,"body":"crypto world to the real world?"},{"speaker":"Answer","startTime":2402.697,"endTime":2405.313,"body":"And this is the biggest"},{"speaker":"Answer","startTime":2402.697,"endTime":2405.313,"body":"problem that crypto has."},{"speaker":"Answer","startTime":2406.33,"endTime":2408.13,"body":"If you move from one"},{"speaker":"Answer","startTime":2406.33,"endTime":2408.13,"body":"blockchain to another,"},{"speaker":"Answer","startTime":2408.13,"endTime":2409.69,"body":"that's difficult enough,"},{"speaker":"Answer","startTime":2409.69,"endTime":2411.58,"body":"you need to have a crypto bridge,"},{"speaker":"Answer","startTime":2411.58,"endTime":2414.25,"body":"like, let's say I have ether"},{"speaker":"Answer","startTime":2414.25,"endTime":2417.64,"body":"but I want to convert"},{"speaker":"Answer","startTime":2414.25,"endTime":2417.64,"body":"it to, say, Dogecoin,"},{"speaker":"Answer","startTime":2417.64,"endTime":2419.17,"body":"how do I do this?"},{"speaker":"Answer","startTime":2419.17,"endTime":2420.55,"body":"They're in different blockchains,"},{"speaker":"Answer","startTime":2420.55,"endTime":2422.08,"body":"how do I do that?"},{"speaker":"Answer","startTime":2422.08,"endTime":2422.913,"body":"One thing I can do"},{"speaker":"Answer","startTime":2422.913,"endTime":2427.8,"body":"is send ether to an address"},{"speaker":"Answer","startTime":2422.913,"endTime":2427.8,"body":"on the Ethereum blockchain,"},{"speaker":"Answer","startTime":2429.61,"endTime":2432.49,"body":"that will go to an offline computer,"},{"speaker":"Answer","startTime":2432.49,"endTime":2435.73,"body":"the offline computer will then"},{"speaker":"Answer","startTime":2432.49,"endTime":2435.73,"body":"log on to the other computer,"},{"speaker":"Answer","startTime":2435.73,"endTime":2437.337,"body":"the Dogecoin blockchain,"},{"speaker":"Answer","startTime":2437.337,"endTime":2440.2,"body":"and they'll transfer money"},{"speaker":"Answer","startTime":2437.337,"endTime":2440.2,"body":"across from one to the other."},{"speaker":"Answer","startTime":2440.2,"endTime":2442.99,"body":"It'll open an account for you"},{"speaker":"Answer","startTime":2440.2,"endTime":2442.99,"body":"on the Dogecoin blockchain"},{"speaker":"Answer","startTime":2442.99,"endTime":2444.73,"body":"with the amount of money"},{"speaker":"Answer","startTime":2442.99,"endTime":2444.73,"body":"you transferred over"},{"speaker":"Answer","startTime":2444.73,"endTime":2445.81,"body":"at that exchange,"},{"speaker":"Answer","startTime":2445.81,"endTime":2447.64,"body":"that's a crypto bridge,"},{"speaker":"Answer","startTime":2447.64,"endTime":2448.57,"body":"from one to the other."},{"speaker":"Answer","startTime":2448.57,"endTime":2449.403,"body":"It's doable,"},{"speaker":"Answer","startTime":2449.403,"endTime":2451.18,"body":"it's tough, but it's doable."},{"speaker":"Answer","startTime":2451.18,"endTime":2453.7,"body":"But moving from blockchain"},{"speaker":"Answer","startTime":2451.18,"endTime":2453.7,"body":"to the real world,"},{"speaker":"Answer","startTime":2453.7,"endTime":2455.323,"body":"that's really difficult."},{"speaker":"Answer","startTime":2458.14,"endTime":2460.04,"body":"Matt Levine has a very nice article"},{"speaker":"Answer","startTime":2461.349,"endTime":2462.821,"body":"in \"Bloomberg Businessweek\" in October,"},{"speaker":"Answer","startTime":2462.821,"endTime":2466.27,"body":"the entire \"Businessweek\" that week"},{"speaker":"Answer","startTime":2466.27,"endTime":2467.68,"body":"is called \"The Crypto Story,\""},{"speaker":"Answer","startTime":2467.68,"endTime":2469.39,"body":"and it talks about all these issues,"},{"speaker":"Answer","startTime":2469.39,"endTime":2472.42,"body":"but he basically defines"},{"speaker":"Answer","startTime":2469.39,"endTime":2472.42,"body":"crypto as a bunch of things,"},{"speaker":"Answer","startTime":2472.42,"endTime":2473.77,"body":"like a set of tokens"},{"speaker":"Answer","startTime":2473.77,"endTime":2476.05,"body":"which are worth arbitrary"},{"speaker":"Answer","startTime":2473.77,"endTime":2476.05,"body":"amounts of money,"},{"speaker":"Answer","startTime":2476.05,"endTime":2478.63,"body":"a set of ways to create new"},{"speaker":"Answer","startTime":2476.05,"endTime":2478.63,"body":"tokens and distribute them,"},{"speaker":"Answer","startTime":2478.63,"endTime":2479.95,"body":"and try to make them worth money,"},{"speaker":"Answer","startTime":2479.95,"endTime":2482.81,"body":"a way of recording your holding of assets,"},{"speaker":"Answer","startTime":2482.81,"endTime":2485.2,"body":"a way to write contracts and programs"},{"speaker":"Answer","startTime":2485.2,"endTime":2486.553,"body":"which are interchangeable."},{"speaker":"Answer","startTime":2488.56,"endTime":2491.5,"body":"But none of these get to that problem"},{"speaker":"Answer","startTime":2491.5,"endTime":2494.593,"body":"of how do you go from the"},{"speaker":"Answer","startTime":2491.5,"endTime":2494.593,"body":"crypto world to the real world."},{"speaker":"Answer","startTime":2495.52,"endTime":2498.133,"body":"Let's look at that real financial system."},{"speaker":"Answer","startTime":2499.6,"endTime":2500.74,"body":"One thing we can say is,"},{"speaker":"Answer","startTime":2500.74,"endTime":2503.41,"body":"the crypto world, as I"},{"speaker":"Answer","startTime":2500.74,"endTime":2503.41,"body":"said in the beginning,"},{"speaker":"Answer","startTime":2503.41,"endTime":2505.57,"body":"an elegant, self-contained system"},{"speaker":"Answer","startTime":2505.57,"endTime":2507.37,"body":"with permission-less innovation."},{"speaker":"Answer","startTime":2507.37,"endTime":2508.78,"body":"What does that mean?"},{"speaker":"Answer","startTime":2508.78,"endTime":2510.94,"body":"If I want to write a computer program,"},{"speaker":"Answer","startTime":2510.94,"endTime":2513.25,"body":"I don't have to ask Vitalik"},{"speaker":"Answer","startTime":2510.94,"endTime":2513.25,"body":"Buterin's permission,"},{"speaker":"Answer","startTime":2513.25,"endTime":2514.57,"body":"I don't have to ask anybody's permission,"},{"speaker":"Answer","startTime":2514.57,"endTime":2515.8,"body":"I just launch it."},{"speaker":"Answer","startTime":2515.8,"endTime":2516.67,"body":"Somebody wants it,"},{"speaker":"Answer","startTime":2516.67,"endTime":2517.86,"body":"they can pay for it,"},{"speaker":"Answer","startTime":2517.86,"endTime":2518.98,"body":"and then they can take it,"},{"speaker":"Answer","startTime":2518.98,"endTime":2520.63,"body":"I don't need anyone's permission."},{"speaker":"Answer","startTime":2521.71,"endTime":2523.48,"body":"So there are two opinions,"},{"speaker":"Answer","startTime":2523.48,"endTime":2524.313,"body":"one opinion is"},{"speaker":"Answer","startTime":2524.313,"endTime":2527.47,"body":"a streamlined, modernized,"},{"speaker":"Answer","startTime":2524.313,"endTime":2527.47,"body":"innovative evolution"},{"speaker":"Answer","startTime":2527.47,"endTime":2529.33,"body":"of the traditional system,"},{"speaker":"Answer","startTime":2529.33,"endTime":2531.97,"body":"the other one says it's"},{"speaker":"Answer","startTime":2529.33,"endTime":2531.97,"body":"a chaotic devolution"},{"speaker":"Answer","startTime":2531.97,"endTime":2533.53,"body":"of the traditional financial system"},{"speaker":"Answer","startTime":2533.53,"endTime":2535.84,"body":"that never learned"},{"speaker":"Answer","startTime":2533.53,"endTime":2535.84,"body":"important historic lessons"},{"speaker":"Answer","startTime":2535.84,"endTime":2538.003,"body":"for fraud, leverage, risk, and regulation,"},{"speaker":"Answer","startTime":2539.05,"endTime":2541.933,"body":"two totally different"},{"speaker":"Answer","startTime":2539.05,"endTime":2541.933,"body":"opinions about crypto."},{"speaker":"Answer","startTime":2543.37,"endTime":2546.19,"body":"So let's take a look at"},{"speaker":"Answer","startTime":2543.37,"endTime":2546.19,"body":"some of these things."},{"speaker":"Answer","startTime":2546.19,"endTime":2548.14,"body":"Centralized intermediation,"},{"speaker":"Answer","startTime":2548.14,"endTime":2550.963,"body":"think about losing your"},{"speaker":"Answer","startTime":2548.14,"endTime":2550.963,"body":"password to your bank account."},{"speaker":"Answer","startTime":2552.16,"endTime":2554.74,"body":"What happens if you lose your"},{"speaker":"Answer","startTime":2552.16,"endTime":2554.74,"body":"password to your bank account?"},{"speaker":"Answer","startTime":2554.74,"endTime":2556.12,"body":"Well, you call your bank,"},{"speaker":"Answer","startTime":2556.12,"endTime":2558.73,"body":"and the bank goes through"},{"speaker":"Answer","startTime":2556.12,"endTime":2558.73,"body":"a bunch of identity checks,"},{"speaker":"Answer","startTime":2558.73,"endTime":2561.1,"body":"and says, fine, I've reset your password,"},{"speaker":"Answer","startTime":2561.1,"endTime":2563.563,"body":"it's test123, please"},{"speaker":"Answer","startTime":2561.1,"endTime":2563.563,"body":"don't lose it this time,"},{"speaker":"Answer","startTime":2564.55,"endTime":2565.57,"body":"something like that,"},{"speaker":"Answer","startTime":2565.57,"endTime":2566.74,"body":"or on the website,"},{"speaker":"Answer","startTime":2566.74,"endTime":2567.7,"body":"there'll be a little link, saying,"},{"speaker":"Answer","startTime":2567.7,"endTime":2568.81,"body":"lost your password,"},{"speaker":"Answer","startTime":2568.81,"endTime":2570.67,"body":"you type in your thing, they'll do it."},{"speaker":"Answer","startTime":2570.67,"endTime":2571.803,"body":"What happens if you lose your password"},{"speaker":"Answer","startTime":2571.803,"endTime":2573.91,"body":"to your bitcoin wallet?"},{"speaker":"Answer","startTime":2573.91,"endTime":2575.263,"body":"Well, here's an example."},{"speaker":"Answer","startTime":2576.25,"endTime":2579.19,"body":"This poor sod, Stefan Thomas,"},{"speaker":"Answer","startTime":2579.19,"endTime":2580.48,"body":"was living in San Francisco,"},{"speaker":"Answer","startTime":2580.48,"endTime":2583.87,"body":"stored his private key on"},{"speaker":"Answer","startTime":2580.48,"endTime":2583.87,"body":"what we call an iron key,"},{"speaker":"Answer","startTime":2583.87,"endTime":2585.13,"body":"which is a hardware device"},{"speaker":"Answer","startTime":2585.13,"endTime":2588.61,"body":"which allows you 10 tries to"},{"speaker":"Answer","startTime":2585.13,"endTime":2588.61,"body":"get your password correct."},{"speaker":"Answer","startTime":2588.61,"endTime":2589.78,"body":"He's done eight,"},{"speaker":"Answer","startTime":2589.78,"endTime":2591.43,"body":"he's got his private key on the iron key."},{"speaker":"Answer","startTime":2591.43,"endTime":2593.02,"body":"After 10, it bricks up,"},{"speaker":"Answer","startTime":2593.02,"endTime":2596.53,"body":"there's nothing, no one can"},{"speaker":"Answer","startTime":2593.02,"endTime":2596.53,"body":"extract it from the iron key."},{"speaker":"Answer","startTime":2596.53,"endTime":2598.15,"body":"He's got eight tries,"},{"speaker":"Answer","startTime":2598.15,"endTime":2599.41,"body":"and he's got two left,"},{"speaker":"Answer","startTime":2599.41,"endTime":2602.593,"body":"and the password is"},{"speaker":"Answer","startTime":2599.41,"endTime":2602.593,"body":"worth about $220 million,"},{"speaker":"Answer","startTime":2604.57,"endTime":2606.52,"body":"in theory, he's worth a lot of money."},{"speaker":"Answer","startTime":2606.52,"endTime":2607.9,"body":"There's also, every now and then,"},{"speaker":"Answer","startTime":2607.9,"endTime":2609.91,"body":"stories about this poor guy in Wales"},{"speaker":"Answer","startTime":2609.91,"endTime":2614.86,"body":"who had his password"},{"speaker":"Answer","startTime":2609.91,"endTime":2614.86,"body":"stored on his hard disk,"},{"speaker":"Answer","startTime":2614.86,"endTime":2617.23,"body":"which he threw out into the garbage heap,"},{"speaker":"Answer","startTime":2617.23,"endTime":2618.34,"body":"and so every now and then,"},{"speaker":"Answer","startTime":2618.34,"endTime":2620.77,"body":"he begs the city to let him"},{"speaker":"Answer","startTime":2618.34,"endTime":2620.77,"body":"dig through the garbage heap"},{"speaker":"Answer","startTime":2620.77,"endTime":2622.42,"body":"to try to find his hard disk,"},{"speaker":"Answer","startTime":2622.42,"endTime":2623.653,"body":"but they have said no."},{"speaker":"Answer","startTime":2625.96,"endTime":2627.793,"body":"So how do you invest in crypto?"},{"speaker":"Answer","startTime":2628.87,"endTime":2630.88,"body":"If you're a mainstream investor,"},{"speaker":"Answer","startTime":2630.88,"endTime":2633.25,"body":"you can't actually buy crypto,"},{"speaker":"Answer","startTime":2633.25,"endTime":2635.23,"body":"because what happens if"},{"speaker":"Answer","startTime":2633.25,"endTime":2635.23,"body":"you try to buy crypto"},{"speaker":"Answer","startTime":2635.23,"endTime":2636.28,"body":"is that the regulator will say,"},{"speaker":"Answer","startTime":2636.28,"endTime":2638.053,"body":"hold on a minute, what is this?"},{"speaker":"Answer","startTime":2639.67,"endTime":2642.01,"body":"You have to have assets"},{"speaker":"Answer","startTime":2639.67,"endTime":2642.01,"body":"which have some value,"},{"speaker":"Answer","startTime":2642.01,"endTime":2642.91,"body":"which have something,"},{"speaker":"Answer","startTime":2642.91,"endTime":2645.13,"body":"they're very uncomfortable with this."},{"speaker":"Answer","startTime":2645.13,"endTime":2648.52,"body":"So you can buy Bitcoin futures,"},{"speaker":"Answer","startTime":2648.52,"endTime":2649.81,"body":"everybody understands futures,"},{"speaker":"Answer","startTime":2649.81,"endTime":2651.55,"body":"the traditional financial system,"},{"speaker":"Answer","startTime":2651.55,"endTime":2653.8,"body":"so some companies, some hedge fund"},{"speaker":"Answer","startTime":2653.8,"endTime":2655.24,"body":"will buy the bitcoin,"},{"speaker":"Answer","startTime":2655.24,"endTime":2657.25,"body":"and sell you futures on it,"},{"speaker":"Answer","startTime":2657.25,"endTime":2658.66,"body":"so that's one way."},{"speaker":"Answer","startTime":2658.66,"endTime":2661.69,"body":"Or you can buy Bitcoin future ETFs,"},{"speaker":"Answer","startTime":2661.69,"endTime":2662.83,"body":"which is like a stock,"},{"speaker":"Answer","startTime":2662.83,"endTime":2665.2,"body":"so it's a stock wrapper around a future,"},{"speaker":"Answer","startTime":2665.2,"endTime":2666.8,"body":"which is in turn around Bitcoin."},{"speaker":"Answer","startTime":2668.77,"endTime":2671.773,"body":"But suppose you want"},{"speaker":"Answer","startTime":2668.77,"endTime":2671.773,"body":"to directly buy crypto."},{"speaker":"Answer","startTime":2672.79,"endTime":2674.23,"body":"Well, if you wanted to do it directly,"},{"speaker":"Answer","startTime":2674.23,"endTime":2676.54,"body":"I could go to one of you and say,"},{"speaker":"Answer","startTime":2676.54,"endTime":2679.27,"body":"here's some money, give me some crypto,"},{"speaker":"Answer","startTime":2679.27,"endTime":2680.92,"body":"here's my wallet, we can do that."},{"speaker":"Answer","startTime":2680.92,"endTime":2683.02,"body":"But if you want to do"},{"speaker":"Answer","startTime":2680.92,"endTime":2683.02,"body":"this through an exchange,"},{"speaker":"Answer","startTime":2683.02,"endTime":2685.81,"body":"will the exchange send you the crypto?"},{"speaker":"Answer","startTime":2685.81,"endTime":2686.71,"body":"What do you think?"},{"speaker":"Answer","startTime":2687.58,"endTime":2689.32,"body":"No way. Why?"},{"speaker":"Think about it","startTime":2690.37,"endTime":2691.69,"body":"suppose you go to Coinbase and say,"},{"speaker":"Think about it","startTime":2691.69,"endTime":2694.903,"body":"I want to buy one bitcoin."},{"speaker":"Think about it","startTime":2694.903,"endTime":2697.24,"body":"They say, sure, give us"},{"speaker":"Think about it","startTime":2694.903,"endTime":2697.24,"body":"your credit card number,"},{"speaker":"Think about it","startTime":2697.24,"endTime":2700.0,"body":"you send them your credit card number,"},{"speaker":"Think about it","startTime":2700.0,"endTime":2701.59,"body":"they transfer $20,000,"},{"speaker":"Think about it","startTime":2701.59,"endTime":2703.18,"body":"they send you one bitcoin."},{"speaker":"Think about it","startTime":2703.18,"endTime":2704.83,"body":"And then you call your"},{"speaker":"Think about it","startTime":2703.18,"endTime":2704.83,"body":"credit card company,"},{"speaker":"Think about it","startTime":2704.83,"endTime":2706.36,"body":"say, my card was stolen"},{"speaker":"Think about it","startTime":2706.36,"endTime":2708.34,"body":"and someone's been"},{"speaker":"Think about it","startTime":2706.36,"endTime":2708.34,"body":"using it to buy bitcoin,"},{"speaker":"Think about it","startTime":2708.34,"endTime":2709.57,"body":"I want my money back."},{"speaker":"Think about it","startTime":2709.57,"endTime":2710.98,"body":"And so they'll call the exchange"},{"speaker":"Think about it","startTime":2710.98,"endTime":2712.72,"body":"and they'll try to get it"},{"speaker":"Think about it","startTime":2710.98,"endTime":2712.72,"body":"back from the exchange."},{"speaker":"Think about it","startTime":2712.72,"endTime":2714.13,"body":"The exchange doesn't want this."},{"speaker":"Think about it","startTime":2714.13,"endTime":2716.11,"body":"So once they transfer the money over,"},{"speaker":"Think about it","startTime":2716.11,"endTime":2717.61,"body":"they can't get it back,"},{"speaker":"Think about it","startTime":2717.61,"endTime":2720.1,"body":"so they're not going to"},{"speaker":"Think about it","startTime":2717.61,"endTime":2720.1,"body":"transfer the bitcoin over,"},{"speaker":"Think about it","startTime":2720.1,"endTime":2722.71,"body":"they will keep the bitcoin for you."},{"speaker":"Think about it","startTime":2722.71,"endTime":2724.06,"body":"But that raises a question,"},{"speaker":"Think about it","startTime":2725.11,"endTime":2726.493,"body":"who guards the guardians?"},{"speaker":"Think about it","startTime":2727.75,"endTime":2731.56,"body":"And there are lots of"},{"speaker":"Think about it","startTime":2727.75,"endTime":2731.56,"body":"examples of exchanges"},{"speaker":"Think about it","startTime":2731.56,"endTime":2732.763,"body":"which have been hacked."},{"speaker":"Think about it","startTime":2733.93,"endTime":2736.48,"body":"So if you've got the exchange with them,"},{"speaker":"Think about it","startTime":2736.48,"endTime":2738.733,"body":"it could be that you"},{"speaker":"Think about it","startTime":2736.48,"endTime":2738.733,"body":"lose your money forever,"},{"speaker":"Think about it","startTime":2740.62,"endTime":2741.61,"body":"but again,"},{"speaker":"Think about it","startTime":2741.61,"endTime":2744.61,"body":"that's as long as the"},{"speaker":"Think about it","startTime":2741.61,"endTime":2744.61,"body":"people stealing your money"},{"speaker":"Think about it","startTime":2744.61,"endTime":2747.04,"body":"stay in the crypto world,"},{"speaker":"Think about it","startTime":2747.04,"endTime":2749.167,"body":"moving to the real world is tough,"},{"speaker":"Think about it","startTime":2749.167,"endTime":2751.78,"body":"and this is the point I'm"},{"speaker":"Think about it","startTime":2749.167,"endTime":2751.78,"body":"trying to make again and again."},{"speaker":"Think about it","startTime":2751.78,"endTime":2753.67,"body":"So in this particular case,"},{"speaker":"Think about it","startTime":2753.67,"endTime":2758.67,"body":"it turns out the Bitfinex"},{"speaker":"Think about it","startTime":2753.67,"endTime":2758.67,"body":"hack, over here, in 2016,"},{"speaker":"Think about it","startTime":2758.83,"endTime":2762.58,"body":"this couple, Ilya Lichtenstein"},{"speaker":"Think about it","startTime":2758.83,"endTime":2762.58,"body":"and his wife Heather Morgan,"},{"speaker":"Think about it","startTime":2762.58,"endTime":2764.02,"body":"basically stole that money"},{"speaker":"Think about it","startTime":2764.02,"endTime":2764.86,"body":"and moved it"},{"speaker":"Think about it","startTime":2764.86,"endTime":2767.44,"body":"through a whole bunch of"},{"speaker":"Think about it","startTime":2764.86,"endTime":2767.44,"body":"different transactions,"},{"speaker":"Think about it","startTime":2767.44,"endTime":2769.48,"body":"but it's all on the blockchain,"},{"speaker":"Think about it","startTime":2769.48,"endTime":2772.09,"body":"which meant that every single"},{"speaker":"Think about it","startTime":2769.48,"endTime":2772.09,"body":"one of those transactions"},{"speaker":"Think about it","startTime":2772.09,"endTime":2773.32,"body":"could be traced."},{"speaker":"Think about it","startTime":2773.32,"endTime":2777.58,"body":"These guys had stolen $3.6 billion,"},{"speaker":"Think about it","startTime":2777.58,"endTime":2779.26,"body":"were they living high on the hog?"},{"speaker":"Think about it","startTime":2779.26,"endTime":2780.973,"body":"No, they couldn't get it out."},{"speaker":"Think about it","startTime":2782.08,"endTime":2785.83,"body":"And eventually, they bought"},{"speaker":"Think about it","startTime":2782.08,"endTime":2785.83,"body":"one Walmart gift card,"},{"speaker":"Think about it","startTime":2785.83,"endTime":2789.19,"body":"which was connected to"},{"speaker":"Think about it","startTime":2785.83,"endTime":2789.19,"body":"a real world address,"},{"speaker":"Think about it","startTime":2789.19,"endTime":2790.603,"body":"and so they got caught."},{"speaker":"Think about it","startTime":2791.56,"endTime":2793.06,"body":"That's one of the issues here,"},{"speaker":"Think about it","startTime":2793.06,"endTime":2794.17,"body":"going back and forth"},{"speaker":"Think about it","startTime":2794.17,"endTime":2796.63,"body":"from the crypto world to the real world."},{"speaker":"Think about it","startTime":2796.63,"endTime":2797.463,"body":"And of course,"},{"speaker":"Think about it","startTime":2797.463,"endTime":2798.64,"body":"if you think about other things"},{"speaker":"Think about it","startTime":2798.64,"endTime":2800.35,"body":"which are in the crypto world,"},{"speaker":"Think about it","startTime":2800.35,"endTime":2802.45,"body":"like stock exchanges,"},{"speaker":"Think about it","startTime":2802.45,"endTime":2803.68,"body":"in a security exchange,"},{"speaker":"Think about it","startTime":2803.68,"endTime":2805.63,"body":"you have all these"},{"speaker":"Think about it","startTime":2803.68,"endTime":2805.63,"body":"decisions which are made,"},{"speaker":"Think about it","startTime":2805.63,"endTime":2807.03,"body":"how much will they lend you,"},{"speaker":"Think about it","startTime":2807.91,"endTime":2809.923,"body":"what's the size of your margin account,"},{"speaker":"Think about it","startTime":2810.97,"endTime":2813.4,"body":"what role should the clearing house play?"},{"speaker":"Think about it","startTime":2813.4,"endTime":2814.72,"body":"Unfortunately, the crypto world"},{"speaker":"Think about it","startTime":2814.72,"endTime":2816.46,"body":"is supposed to be decentralized,"},{"speaker":"Think about it","startTime":2816.46,"endTime":2817.57,"body":"it's not decentralized,"},{"speaker":"they have the same problem","startTime":2818.98,"endTime":2821.2,"body":"how do you set leverage limits,"},{"speaker":"they have the same problem","startTime":2821.2,"endTime":2824.65,"body":"what is the level of collateral"},{"speaker":"they have the same problem","startTime":2821.2,"endTime":2824.65,"body":"which you need to hold?"},{"speaker":"they have the same problem","startTime":2824.65,"endTime":2826.9,"body":"And coming back in here,"},{"speaker":"they have the same problem","startTime":2826.9,"endTime":2828.22,"body":"how to set a leverage limit?"},{"speaker":"FTX-Alameda is the classic example","startTime":2830.68,"endTime":2833.29,"body":"leverage limits for"},{"speaker":"FTX-Alameda is the classic example","startTime":2830.68,"endTime":2833.29,"body":"everybody except for Alameda,"},{"speaker":"FTX-Alameda is the classic example","startTime":2833.29,"endTime":2834.76,"body":"who could borrow a ton of money,"},{"speaker":"FTX-Alameda is the classic example","startTime":2834.76,"endTime":2838.423,"body":"and eventually almost bring"},{"speaker":"FTX-Alameda is the classic example","startTime":2834.76,"endTime":2838.423,"body":"down the entire system."},{"speaker":"FTX-Alameda is the classic example","startTime":2839.35,"endTime":2840.183,"body":"Stablecoins."},{"speaker":"FTX-Alameda is the classic example","startTime":2841.15,"endTime":2841.983,"body":"One way to think about this is,"},{"speaker":"FTX-Alameda is the classic example","startTime":2841.983,"endTime":2843.82,"body":"okay, a stablecoin is a crypto token"},{"speaker":"FTX-Alameda is the classic example","startTime":2843.82,"endTime":2845.72,"body":"that's always supposed to be worth $1."},{"speaker":"FTX-Alameda is the classic example","startTime":2846.85,"endTime":2848.02,"body":"How do you do it?"},{"speaker":"FTX-Alameda is the classic example","startTime":2848.02,"endTime":2850.63,"body":"One thing is collateralized stablecoin,"},{"speaker":"FTX-Alameda is the classic example","startTime":2850.63,"endTime":2851.463,"body":"example, Tether."},{"speaker":"FTX-Alameda is the classic example","startTime":2852.4,"endTime":2854.53,"body":"Tether says, you give me $1,"},{"speaker":"FTX-Alameda is the classic example","startTime":2854.53,"endTime":2856.39,"body":"and make sure your stablecoin, Tether,"},{"speaker":"FTX-Alameda is the classic example","startTime":2856.39,"endTime":2858.038,"body":"is always worth $1."},{"speaker":"FTX-Alameda is the classic example","startTime":2858.038,"endTime":2858.97,"body":"So in a way,"},{"speaker":"FTX-Alameda is the classic example","startTime":2858.97,"endTime":2859.96,"body":"you're giving them money,"},{"speaker":"FTX-Alameda is the classic example","startTime":2859.96,"endTime":2861.845,"body":"they put it into an envelope,"},{"speaker":"FTX-Alameda is the classic example","startTime":2861.845,"endTime":2863.41,"body":"and they put the envelope in the safe."},{"speaker":"FTX-Alameda is the classic example","startTime":2863.41,"endTime":2864.243,"body":"You come back and say,"},{"speaker":"FTX-Alameda is the classic example","startTime":2864.243,"endTime":2865.076,"body":"I want my money,"},{"speaker":"FTX-Alameda is the classic example","startTime":2865.076,"endTime":2866.53,"body":"they pull your envelope out of the safe,"},{"speaker":"FTX-Alameda is the classic example","startTime":2866.53,"endTime":2868.15,"body":"give it back to you."},{"speaker":"FTX-Alameda is the classic example","startTime":2868.15,"endTime":2870.19,"body":"But this doesn't earn anything,"},{"speaker":"FTX-Alameda is the classic example","startTime":2870.19,"endTime":2873.37,"body":"so what they really do is"},{"speaker":"FTX-Alameda is the classic example","startTime":2870.19,"endTime":2873.37,"body":"they lend out your money"},{"speaker":"FTX-Alameda is the classic example","startTime":2873.37,"endTime":2874.39,"body":"to earn money,"},{"speaker":"FTX-Alameda is the classic example","startTime":2874.39,"endTime":2875.53,"body":"but they can't tell you this"},{"speaker":"FTX-Alameda is the classic example","startTime":2875.53,"endTime":2877.21,"body":"because if people lose confidence,"},{"speaker":"FTX-Alameda is the classic example","startTime":2877.21,"endTime":2878.65,"body":"they'll all ask for their money back,"},{"speaker":"FTX-Alameda is the classic example","startTime":2878.65,"endTime":2880.24,"body":"which is a bank run."},{"speaker":"FTX-Alameda is the classic example","startTime":2880.24,"endTime":2881.073,"body":"So they say,"},{"speaker":"FTX-Alameda is the classic example","startTime":2881.073,"endTime":2882.67,"body":"we are auditing our stuff,"},{"speaker":"FTX-Alameda is the classic example","startTime":2882.67,"endTime":2885.01,"body":"but they won't tell you"},{"speaker":"FTX-Alameda is the classic example","startTime":2882.67,"endTime":2885.01,"body":"the result of the audit,"},{"speaker":"FTX-Alameda is the classic example","startTime":2885.01,"endTime":2887.38,"body":"it's all very, very secret,"},{"speaker":"FTX-Alameda is the classic example","startTime":2887.38,"endTime":2888.213,"body":"but they claim,"},{"speaker":"FTX-Alameda is the classic example","startTime":2888.213,"endTime":2890.35,"body":"trust us and everything will be fine."},{"speaker":"FTX-Alameda is the classic example","startTime":2890.35,"endTime":2893.74,"body":"Or you can have an algorithmic stablecoin."},{"speaker":"FTX-Alameda is the classic example","startTime":2893.74,"endTime":2895.09,"body":"What does that mean?"},{"speaker":"FTX-Alameda is the classic example","startTime":2895.09,"endTime":2896.71,"body":"That means you put in 100 bucks"},{"speaker":"FTX-Alameda is the classic example","startTime":2896.71,"endTime":2899.47,"body":"and get back something"},{"speaker":"FTX-Alameda is the classic example","startTime":2896.71,"endTime":2899.47,"body":"that's worth 100 bucks,"},{"speaker":"FTX-Alameda is the classic example","startTime":2899.47,"endTime":2900.67,"body":"but you guarantee it"},{"speaker":"FTX-Alameda is the classic example","startTime":2900.67,"endTime":2903.52,"body":"by a large amount of a"},{"speaker":"FTX-Alameda is the classic example","startTime":2900.67,"endTime":2903.52,"body":"volatile cryptocurrency."},{"speaker":"FTX-Alameda is the classic example","startTime":2903.52,"endTime":2904.9,"body":"So if you want that $100,"},{"speaker":"FTX-Alameda is the classic example","startTime":2904.9,"endTime":2908.05,"body":"you're putting $500 of"},{"speaker":"FTX-Alameda is the classic example","startTime":2904.9,"endTime":2908.05,"body":"bitcoin, or something else"},{"speaker":"FTX-Alameda is the classic example","startTime":2908.05,"endTime":2910.0,"body":"to guarantee that value."},{"speaker":"FTX-Alameda is the classic example","startTime":2910.0,"endTime":2911.23,"body":"But the problem here is,"},{"speaker":"FTX-Alameda is the classic example","startTime":2911.23,"endTime":2913.87,"body":"if people lose confidence in this,"},{"speaker":"FTX-Alameda is the classic example","startTime":2913.87,"endTime":2916.81,"body":"they will start immediately"},{"speaker":"FTX-Alameda is the classic example","startTime":2913.87,"endTime":2916.81,"body":"asking for their money back,"},{"speaker":"FTX-Alameda is the classic example","startTime":2916.81,"endTime":2919.27,"body":"which reduces the value of"},{"speaker":"FTX-Alameda is the classic example","startTime":2916.81,"endTime":2919.27,"body":"the algorithmic stablecoin,"},{"speaker":"FTX-Alameda is the classic example","startTime":2919.27,"endTime":2921.19,"body":"which reduces the value"},{"speaker":"FTX-Alameda is the classic example","startTime":2919.27,"endTime":2921.19,"body":"of the cryptocurrency,"},{"speaker":"FTX-Alameda is the classic example","startTime":2921.19,"endTime":2923.653,"body":"and that is called a death spiral."},{"speaker":"FTX-Alameda is the classic example","startTime":2925.63,"endTime":2929.593,"body":"Okay, so last thing, crypto exchanges."},{"speaker":"FTX-Alameda is the classic example","startTime":2930.79,"endTime":2932.74,"body":"In a regular stock market,"},{"speaker":"FTX-Alameda is the classic example","startTime":2932.74,"endTime":2935.89,"body":"you have market makers"},{"speaker":"FTX-Alameda is the classic example","startTime":2932.74,"endTime":2935.89,"body":"and limit order books,"},{"speaker":"FTX-Alameda is the classic example","startTime":2935.89,"endTime":2937.45,"body":"so in other words, you can say,"},{"speaker":"FTX-Alameda is the classic example","startTime":2937.45,"endTime":2941.47,"body":"I want to place an order"},{"speaker":"FTX-Alameda is the classic example","startTime":2937.45,"endTime":2941.47,"body":"for 100 shares of Microsoft"},{"speaker":"FTX-Alameda is the classic example","startTime":2941.47,"endTime":2942.34,"body":"at this price."},{"speaker":"FTX-Alameda is the classic example","startTime":2942.34,"endTime":2943.51,"body":"If the price goes above that,"},{"speaker":"FTX-Alameda is the classic example","startTime":2943.51,"endTime":2944.35,"body":"I don't want to pay that,"},{"speaker":"FTX-Alameda is the classic example","startTime":2944.35,"endTime":2945.73,"body":"it's a limit order."},{"speaker":"FTX-Alameda is the classic example","startTime":2945.73,"endTime":2948.79,"body":"So if its price stays"},{"speaker":"FTX-Alameda is the classic example","startTime":2945.73,"endTime":2948.79,"body":"below that, I can buy,"},{"speaker":"FTX-Alameda is the classic example","startTime":2948.79,"endTime":2951.52,"body":"otherwise I never execute the trade."},{"speaker":"FTX-Alameda is the classic example","startTime":2951.52,"endTime":2953.32,"body":"This doesn't work in crypto"},{"speaker":"FTX-Alameda is the classic example","startTime":2953.32,"endTime":2955.633,"body":"because every time you"},{"speaker":"FTX-Alameda is the classic example","startTime":2953.32,"endTime":2955.633,"body":"put in a transaction,"},{"speaker":"FTX-Alameda is the classic example","startTime":2955.633,"endTime":2957.88,"body":"even if you've withdrawn"},{"speaker":"FTX-Alameda is the classic example","startTime":2955.633,"endTime":2957.88,"body":"an incomplete transaction,"},{"speaker":"FTX-Alameda is the classic example","startTime":2957.88,"endTime":2960.16,"body":"you have to pay for it with a gas fee."},{"speaker":"FTX-Alameda is the classic example","startTime":2960.16,"endTime":2961.81,"body":"You're giving an instruction,"},{"speaker":"FTX-Alameda is the classic example","startTime":2961.81,"endTime":2964.03,"body":"the instruction means a"},{"speaker":"FTX-Alameda is the classic example","startTime":2961.81,"endTime":2964.03,"body":"gas fee has to be done,"},{"speaker":"FTX-Alameda is the classic example","startTime":2964.03,"endTime":2965.71,"body":"even if it's incomplete,"},{"speaker":"FTX-Alameda is the classic example","startTime":2965.71,"endTime":2966.97,"body":"it's too expensive."},{"speaker":"FTX-Alameda is the classic example","startTime":2966.97,"endTime":2968.29,"body":"So how do they work,"},{"speaker":"FTX-Alameda is the classic example","startTime":2968.29,"endTime":2971.17,"body":"how do these guys set up"},{"speaker":"FTX-Alameda is the classic example","startTime":2968.29,"endTime":2971.17,"body":"a market making system"},{"speaker":"FTX-Alameda is the classic example","startTime":2971.17,"endTime":2973.66,"body":"when this problem is there?"},{"speaker":"FTX-Alameda is the classic example","startTime":2973.66,"endTime":2974.493,"body":"Answer is,"},{"speaker":"FTX-Alameda is the classic example","startTime":2974.493,"endTime":2975.97,"body":"and this is unusual,"},{"speaker":"FTX-Alameda is the classic example","startTime":2975.97,"endTime":2980.23,"body":"because it does not exist"},{"speaker":"FTX-Alameda is the classic example","startTime":2975.97,"endTime":2980.23,"body":"outside the crypto world,"},{"speaker":"FTX-Alameda is the classic example","startTime":2980.23,"endTime":2982.81,"body":"so this is an example"},{"speaker":"FTX-Alameda is the classic example","startTime":2980.23,"endTime":2982.81,"body":"of what I was saying,"},{"speaker":"FTX-Alameda is the classic example","startTime":2982.81,"endTime":2985.72,"body":"that these guys have invented new ways"},{"speaker":"FTX-Alameda is the classic example","startTime":2985.72,"endTime":2987.16,"body":"of coming up with finance"},{"speaker":"FTX-Alameda is the classic example","startTime":2987.16,"endTime":2990.04,"body":"that the traditional"},{"speaker":"FTX-Alameda is the classic example","startTime":2987.16,"endTime":2990.04,"body":"finance world never uses."},{"speaker":"FTX-Alameda is the classic example","startTime":2990.04,"endTime":2991.45,"body":"So what is the example here?"},{"speaker":"It's simple","startTime":2992.5,"endTime":2993.73,"body":"an automated market maker"},{"speaker":"It's simple","startTime":2993.73,"endTime":2996.64,"body":"is a market maker that"},{"speaker":"It's simple","startTime":2993.73,"endTime":2996.64,"body":"develops equal amounts of ether"},{"speaker":"It's simple","startTime":2996.64,"endTime":2998.53,"body":"and a dollar equivalent stablecoin,"},{"speaker":"It's simple","startTime":2998.53,"endTime":2999.363,"body":"so in this case,"},{"speaker":"It's simple","startTime":2999.363,"endTime":3001.71,"body":"say 1 ether is at $1,200 right now,"},{"speaker":"It's simple","startTime":3001.71,"endTime":3003.49,"body":"so you deposit 1,000 ether"},{"speaker":"It's simple","startTime":3003.49,"endTime":3005.913,"body":"and 1.2 million equivalent stablecoin."},{"speaker":"It's simple","startTime":3008.1,"endTime":3009.18,"body":"The idea is,"},{"speaker":"It's simple","startTime":3009.18,"endTime":3012.3,"body":"one algorithm is called a"},{"speaker":"It's simple","startTime":3009.18,"endTime":3012.3,"body":"constant product market maker,"},{"speaker":"It's simple","startTime":3012.3,"endTime":3016.77,"body":"keep the product of these"},{"speaker":"It's simple","startTime":3012.3,"endTime":3016.77,"body":"two constant at 1.2 billion."},{"speaker":"It's simple","startTime":3016.77,"endTime":3018.3,"body":"Now, let's take,"},{"speaker":"It's simple","startTime":3018.3,"endTime":3020.88,"body":"somebody says, I want to buy 100 ether."},{"speaker":"It's simple","startTime":3020.88,"endTime":3024.36,"body":"The fund contains 1,000 ether,"},{"speaker":"It's simple","startTime":3024.36,"endTime":3026.793,"body":"so now it has 900 ether in the fund."},{"speaker":"All the algorithm does is simple","startTime":3030.63,"endTime":3032.49,"body":"I want the product to stay the same,"},{"speaker":"All the algorithm does is simple","startTime":3032.49,"endTime":3035.13,"body":"the product, remember, is 1.2 billion,"},{"speaker":"All the algorithm does is simple","startTime":3035.13,"endTime":3037.29,"body":"that has to stay the same."},{"speaker":"All the algorithm does is simple","startTime":3037.29,"endTime":3039.51,"body":"So how do I do it algorithmically?"},{"speaker":"All the algorithm does is simple","startTime":3039.51,"endTime":3043.92,"body":"I say 1.2 billion divided"},{"speaker":"All the algorithm does is simple","startTime":3039.51,"endTime":3043.92,"body":"by 900 is 1.33 million,"},{"speaker":"All the algorithm does is simple","startTime":3043.92,"endTime":3047.7,"body":"I already have 1.2 million USDC in that"},{"speaker":"All the algorithm does is simple","startTime":3047.7,"endTime":3052.02,"body":"so I need you pay an"},{"speaker":"All the algorithm does is simple","startTime":3047.7,"endTime":3052.02,"body":"additional 133,000 USDC,"},{"speaker":"All the algorithm does is simple","startTime":3052.92,"endTime":3054.66,"body":"which means that's the exchange rate."},{"speaker":"All the algorithm does is simple","startTime":3054.66,"endTime":3055.86,"body":"I don't need a human being,"},{"speaker":"All the algorithm does is simple","startTime":3055.86,"endTime":3057.903,"body":"it's automatically done by the system."},{"speaker":"All the algorithm does is simple","startTime":3058.95,"endTime":3063.24,"body":"So this thing here is not"},{"speaker":"All the algorithm does is simple","startTime":3058.95,"endTime":3063.24,"body":"there in the real world,"},{"speaker":"All the algorithm does is simple","startTime":3063.24,"endTime":3065.04,"body":"market makers don't work like this,"},{"speaker":"All the algorithm does is simple","startTime":3065.04,"endTime":3067.14,"body":"but you have to do this"},{"speaker":"All the algorithm does is simple","startTime":3065.04,"endTime":3067.14,"body":"in the crypto world,"},{"speaker":"All the algorithm does is simple","startTime":3067.14,"endTime":3068.89,"body":"which is an automated market maker."},{"speaker":"All the algorithm does is simple","startTime":3070.05,"endTime":3073.47,"body":"So if you are lending your"},{"speaker":"All the algorithm does is simple","startTime":3070.05,"endTime":3073.47,"body":"crypto against real assets,"},{"speaker":"All the algorithm does is simple","startTime":3073.47,"endTime":3075.24,"body":"you have margin lending,"},{"speaker":"All the algorithm does is simple","startTime":3075.24,"endTime":3078.93,"body":"but we talked about unsecured"},{"speaker":"All the algorithm does is simple","startTime":3075.24,"endTime":3078.93,"body":"lending for real assets,"},{"speaker":"All the algorithm does is simple","startTime":3078.93,"endTime":3081.63,"body":"we talked about DAOs a few minutes ago,"},{"speaker":"All the algorithm does is simple","startTime":3081.63,"endTime":3084.6,"body":"but now it becomes more complicated,"},{"speaker":"All the algorithm does is simple","startTime":3084.6,"endTime":3086.58,"body":"because let's say you have staked to ether"},{"speaker":"All the algorithm does is simple","startTime":3086.58,"endTime":3087.663,"body":"to become validator,"},{"speaker":"All the algorithm does is simple","startTime":3088.8,"endTime":3090.99,"body":"so now you're a validator, you staked it,"},{"speaker":"All the algorithm does is simple","startTime":3090.99,"endTime":3092.34,"body":"what does the system do?"},{"speaker":"All the algorithm does is simple","startTime":3092.34,"endTime":3095.88,"body":"It gives you a receipt"},{"speaker":"All the algorithm does is simple","startTime":3092.34,"endTime":3095.88,"body":"for your staked ether."},{"speaker":"All the algorithm does is simple","startTime":3095.88,"endTime":3097.02,"body":"But the receipt is valuable"},{"speaker":"All the algorithm does is simple","startTime":3097.02,"endTime":3098.01,"body":"because it's saying,"},{"speaker":"All the algorithm does is simple","startTime":3098.01,"endTime":3099.33,"body":"I have staked this amount."},{"speaker":"All the algorithm does is simple","startTime":3099.33,"endTime":3100.77,"body":"So what do I do?"},{"speaker":"All the algorithm does is simple","startTime":3100.77,"endTime":3102.06,"body":"I take that receipt"},{"speaker":"All the algorithm does is simple","startTime":3102.06,"endTime":3103.11,"body":"and use it as collateral"},{"speaker":"All the algorithm does is simple","startTime":3103.11,"endTime":3105.36,"body":"to get another token in"},{"speaker":"All the algorithm does is simple","startTime":3103.11,"endTime":3105.36,"body":"a different currency,"},{"speaker":"All the algorithm does is simple","startTime":3106.47,"endTime":3108.15,"body":"and I can keep doing this"},{"speaker":"All the algorithm does is simple","startTime":3108.15,"endTime":3110.07,"body":"to get something called yield farming,"},{"speaker":"All the algorithm does is simple","startTime":3110.07,"endTime":3112.02,"body":"I move from token to token"},{"speaker":"All the algorithm does is simple","startTime":3112.02,"endTime":3114.51,"body":"trying to get as much"},{"speaker":"All the algorithm does is simple","startTime":3112.02,"endTime":3114.51,"body":"interest as possible."},{"speaker":"All the algorithm does is simple","startTime":3114.51,"endTime":3116.703,"body":"The perfect example was the Olympus DAO,"},{"speaker":"All the algorithm does is simple","startTime":3118.74,"endTime":3120.39,"body":"they actually had this on the website,"},{"speaker":"All the algorithm does is simple","startTime":3120.39,"endTime":3122.64,"body":"it's called the (3, 3) prisoner's dilemma."},{"speaker":"All the algorithm does is simple","startTime":3122.64,"endTime":3123.9,"body":"It basically said,"},{"speaker":"All the algorithm does is simple","startTime":3123.9,"endTime":3127.86,"body":"as long as nobody liquidates their money,"},{"speaker":"All the algorithm does is simple","startTime":3127.86,"endTime":3130.92,"body":"we all will have increasing values."},{"speaker":"All the algorithm does is simple","startTime":3130.92,"endTime":3131.753,"body":"It's kind of like,"},{"speaker":"All the algorithm does is simple","startTime":3131.753,"endTime":3132.783,"body":"okay, excuse me, right."},{"speaker":"All the algorithm does is simple","startTime":3134.64,"endTime":3137.25,"body":"So you could do anything with blockchain,"},{"speaker":"All the algorithm does is simple","startTime":3137.25,"endTime":3139.563,"body":"even buy a blockchain face cream."},{"speaker":"All the algorithm does is simple","startTime":3144.6,"endTime":3147.27,"body":"Real world arbitrage is"},{"speaker":"All the algorithm does is simple","startTime":3144.6,"endTime":3147.27,"body":"super difficult to do."},{"speaker":"All the algorithm does is simple","startTime":3147.27,"endTime":3148.38,"body":"Why?"},{"speaker":"All the algorithm does is simple","startTime":3148.38,"endTime":3150.84,"body":"Because if you have an idea,"},{"speaker":"All the algorithm does is simple","startTime":3150.84,"endTime":3151.68,"body":"you go to a hedge fund,"},{"speaker":"All the algorithm does is simple","startTime":3151.68,"endTime":3152.513,"body":"the hedge fund say,"},{"speaker":"All the algorithm does is simple","startTime":3152.513,"endTime":3154.29,"body":"that's a great idea,"},{"speaker":"All the algorithm does is simple","startTime":3152.513,"endTime":3154.29,"body":"thank you very much, bye,"},{"speaker":"All the algorithm does is simple","startTime":3154.29,"endTime":3156.09,"body":"and they'll implement it themselves."},{"speaker":"All the algorithm does is simple","startTime":3157.02,"endTime":3158.31,"body":"In the crypto world,"},{"speaker":"All the algorithm does is simple","startTime":3158.31,"endTime":3159.45,"body":"you can have lots of ideas"},{"speaker":"All the algorithm does is simple","startTime":3159.45,"endTime":3161.13,"body":"because they're running public codes,"},{"speaker":"All the algorithm does is simple","startTime":3161.13,"endTime":3163.2,"body":"so you can find lots and lots of ideas."},{"speaker":"All the algorithm does is simple","startTime":3163.2,"endTime":3164.1,"body":"How do you do that?"},{"speaker":"All the algorithm does is simple","startTime":3164.1,"endTime":3166.14,"body":"Something called a flash loan."},{"speaker":"All the algorithm does is simple","startTime":3166.14,"endTime":3167.46,"body":"An example of flash loan is,"},{"speaker":"All the algorithm does is simple","startTime":3167.46,"endTime":3169.5,"body":"suppose ether is trading"},{"speaker":"All the algorithm does is simple","startTime":3167.46,"endTime":3169.5,"body":"at two different prices"},{"speaker":"All the algorithm does is simple","startTime":3169.5,"endTime":3170.79,"body":"on two exchanges,"},{"speaker":"All the algorithm does is simple","startTime":3170.79,"endTime":3172.05,"body":"what do you do?"},{"speaker":"All the algorithm does is simple","startTime":3172.05,"endTime":3174.39,"body":"Borrow $100 million, which you don't have,"},{"speaker":"All the algorithm does is simple","startTime":3174.39,"endTime":3176.55,"body":"borrow $100 million from this,"},{"speaker":"All the algorithm does is simple","startTime":3176.55,"endTime":3178.92,"body":"two, use $100 million to buy a token"},{"speaker":"All the algorithm does is simple","startTime":3178.92,"endTime":3181.71,"body":"on decentralized exchange A,"},{"speaker":"All the algorithm does is simple","startTime":3181.71,"endTime":3185.58,"body":"sell the token on exchange"},{"speaker":"All the algorithm does is simple","startTime":3181.71,"endTime":3185.58,"body":"B for 110 million,"},{"speaker":"All the algorithm does is simple","startTime":3185.58,"endTime":3187.83,"body":"return 100 million to"},{"speaker":"All the algorithm does is simple","startTime":3185.58,"endTime":3187.83,"body":"the lending protocol,"},{"speaker":"All the algorithm does is simple","startTime":3187.83,"endTime":3189.51,"body":"plus a small fee,"},{"speaker":"All the algorithm does is simple","startTime":3189.51,"endTime":3191.21,"body":"and keep the leftover $10 million."},{"speaker":"All the algorithm does is simple","startTime":3192.252,"endTime":3193.5,"body":"And if you're looking at this and saying,"},{"speaker":"All the algorithm does is simple","startTime":3193.5,"endTime":3196.68,"body":"wait, where's all those"},{"speaker":"All the algorithm does is simple","startTime":3193.5,"endTime":3196.68,"body":"100 million coming from?"},{"speaker":"All the algorithm does is simple","startTime":3196.68,"endTime":3199.26,"body":"The answer is it's a computer program,"},{"speaker":"All the algorithm does is simple","startTime":3199.26,"endTime":3201.42,"body":"the entire thing is one program."},{"speaker":"All the algorithm does is simple","startTime":3201.42,"endTime":3203.94,"body":"So you send the entire program across,"},{"speaker":"All the algorithm does is simple","startTime":3203.94,"endTime":3205.53,"body":"it will only execute"},{"speaker":"All the algorithm does is simple","startTime":3205.53,"endTime":3208.44,"body":"if all the five steps work out."},{"speaker":"All the algorithm does is simple","startTime":3208.44,"endTime":3211.11,"body":"If the price of ether"},{"speaker":"All the algorithm does is simple","startTime":3208.44,"endTime":3211.11,"body":"changes in the middle,"},{"speaker":"All the algorithm does is simple","startTime":3211.11,"endTime":3212.49,"body":"the program will not execute,"},{"speaker":"All the algorithm does is simple","startTime":3212.49,"endTime":3214.8,"body":"you don't lose any money at all,"},{"speaker":"All the algorithm does is simple","startTime":3214.8,"endTime":3216.453,"body":"it is totally free."},{"speaker":"All the algorithm does is simple","startTime":3217.77,"endTime":3218.82,"body":"So that's a flash loan,"},{"speaker":"All the algorithm does is simple","startTime":3218.82,"endTime":3220.86,"body":"you're writing an entire computer program,"},{"speaker":"and that means the problem is this","startTime":3224.25,"endTime":3225.78,"body":"somebody writes a contract,"},{"speaker":"and that means the problem is this","startTime":3225.78,"endTime":3227.64,"body":"bugs occasionally let the user"},{"speaker":"and that means the problem is this","startTime":3227.64,"endTime":3230.25,"body":"put in one token and get back two."},{"speaker":"and that means the problem is this","startTime":3230.25,"endTime":3231.63,"body":"What do you do?"},{"speaker":"and that means the problem is this","startTime":3231.63,"endTime":3232.83,"body":"A flash attack,"},{"speaker":"and that means the problem is this","startTime":3232.83,"endTime":3235.44,"body":"so you write an entire program, like this,"},{"speaker":"and that means the problem is this","startTime":3235.44,"endTime":3236.46,"body":"send it through,"},{"speaker":"and that means the problem is this","startTime":3236.46,"endTime":3240.03,"body":"and basically, someone writes a program,"},{"speaker":"and that means the problem is this","startTime":3240.03,"endTime":3241.14,"body":"puts in 1 billion tokens,"},{"speaker":"and that means the problem is this","startTime":3241.14,"endTime":3243.18,"body":"gets back 2 billion tokens,"},{"speaker":"and that means the problem is this","startTime":3243.18,"endTime":3245.33,"body":"and blows up the smart"},{"speaker":"and that means the problem is this","startTime":3243.18,"endTime":3245.33,"body":"contract completely."},{"speaker":"and that means the problem is this","startTime":3246.42,"endTime":3248.613,"body":"All right, last problem, front-running."},{"speaker":"and that means the problem is this","startTime":3250.47,"endTime":3251.303,"body":"Front-running is,"},{"speaker":"and that means the problem is this","startTime":3251.303,"endTime":3252.54,"body":"somebody figures out what you're doing"},{"speaker":"and that means the problem is this","startTime":3252.54,"endTime":3253.69,"body":"and trades against you."},{"speaker":"and that means the problem is this","startTime":3254.79,"endTime":3256.02,"body":"In the real world, this is tough,"},{"speaker":"and that means the problem is this","startTime":3256.02,"endTime":3258.3,"body":"so lots of people pay money"},{"speaker":"and that means the problem is this","startTime":3258.3,"endTime":3260.34,"body":"to be fastest in the line."},{"speaker":"and that means the problem is this","startTime":3260.34,"endTime":3263.31,"body":"There's a book called \"Flash"},{"speaker":"and that means the problem is this","startTime":3260.34,"endTime":3263.31,"body":"Boys,\" by Michael Lewis,"},{"speaker":"and that means the problem is this","startTime":3263.31,"endTime":3265.14,"body":"which talks about this."},{"speaker":"and that means the problem is this","startTime":3265.14,"endTime":3266.19,"body":"In the crypto world,"},{"speaker":"and that means the problem is this","startTime":3266.19,"endTime":3268.23,"body":"this happens all the time."},{"speaker":"and that means the problem is this","startTime":3268.23,"endTime":3270.0,"body":"To have a way to make money,"},{"speaker":"and that means the problem is this","startTime":3270.0,"endTime":3271.77,"body":"you have to put into the blockchain,"},{"speaker":"and that means the problem is this","startTime":3271.77,"endTime":3273.72,"body":"and everybody can see this,"},{"speaker":"and that means the problem is this","startTime":3273.72,"endTime":3274.68,"body":"and so somebody says,"},{"speaker":"and that means the problem is this","startTime":3274.68,"endTime":3275.58,"body":"hey, this is cool,"},{"speaker":"and that means the problem is this","startTime":3275.58,"endTime":3277.08,"body":"I'll pay a higher gas fee"},{"speaker":"and that means the problem is this","startTime":3277.08,"endTime":3278.91,"body":"and get ahead of you."},{"speaker":"and that means the problem is this","startTime":3278.91,"endTime":3280.59,"body":"I can see your program to make money,"},{"speaker":"and that means the problem is this","startTime":3280.59,"endTime":3281.85,"body":"so let me make money ahead of you,"},{"speaker":"and that means the problem is this","startTime":3281.85,"endTime":3283.83,"body":"just increase the gas fees."},{"speaker":"and that means the problem is this","startTime":3283.83,"endTime":3286.41,"body":"Very tough to actually implement this."},{"speaker":"and that means the problem is this","startTime":3286.41,"endTime":3288.81,"body":"And finally, because of all these things,"},{"speaker":"and that means the problem is this","startTime":3288.81,"endTime":3293.37,"body":"crypto has done what we"},{"speaker":"and that means the problem is this","startTime":3288.81,"endTime":3293.37,"body":"did in finance in 2008,"},{"speaker":"and that means the problem is this","startTime":3293.37,"endTime":3296.25,"body":"we have got a crypto financial crisis."},{"speaker":"and that means the problem is this","startTime":3296.25,"endTime":3297.33,"body":"What have we done?"},{"speaker":"and that means the problem is this","startTime":3297.33,"endTime":3298.92,"body":"If you think about Satoshi Nakamoto,"},{"speaker":"and that means the problem is this","startTime":3298.92,"endTime":3301.68,"body":"he minted bitcoin to get"},{"speaker":"and that means the problem is this","startTime":3298.92,"endTime":3301.68,"body":"away from all these problems,"},{"speaker":"and that means the problem is this","startTime":3301.68,"endTime":3303.18,"body":"because of 2008,"},{"speaker":"and that means the problem is this","startTime":3303.18,"endTime":3305.4,"body":"he said, I don't want to deal with this,"},{"speaker":"and that means the problem is this","startTime":3305.4,"endTime":3307.02,"body":"but this is everything,"},{"speaker":"and that means the problem is this","startTime":3307.02,"endTime":3308.73,"body":"it's a new financial system,"},{"speaker":"and that means the problem is this","startTime":3308.73,"endTime":3309.75,"body":"but the problem is"},{"speaker":"and that means the problem is this","startTime":3309.75,"endTime":3312.93,"body":"the traditional finance"},{"speaker":"and that means the problem is this","startTime":3309.75,"endTime":3312.93,"body":"people who got in there said,"},{"speaker":"and that means the problem is this","startTime":3312.93,"endTime":3314.13,"body":"hey man, this is fun,"},{"speaker":"and that means the problem is this","startTime":3314.13,"endTime":3315.03,"body":"it's wide open,"},{"speaker":"and that means the problem is this","startTime":3315.03,"endTime":3316.17,"body":"permissionless innovation,"},{"speaker":"and that means the problem is this","startTime":3316.17,"endTime":3317.76,"body":"and everybody's getting rich,"},{"speaker":"and that means the problem is this","startTime":3317.76,"endTime":3320.07,"body":"so why don't we get in as well?"},{"speaker":"and that means the problem is this","startTime":3320.07,"endTime":3324.18,"body":"And so we have TerraUSD"},{"speaker":"and that means the problem is this","startTime":3320.07,"endTime":3324.18,"body":"and Luna, we have Celsius,"},{"speaker":"and that means the problem is this","startTime":3324.18,"endTime":3325.013,"body":"we have contagion,"},{"speaker":"and that means the problem is this","startTime":3325.013,"endTime":3327.45,"body":"because all these tokens"},{"speaker":"and that means the problem is this","startTime":3325.013,"endTime":3327.45,"body":"are tied to each other,"},{"speaker":"and that means the problem is this","startTime":3327.45,"endTime":3330.15,"body":"one token goes down, everything goes down,"},{"speaker":"and that means the problem is this","startTime":3330.15,"endTime":3333.15,"body":"and we have FTX-Alameda most recently."},{"speaker":"and that means the problem is this","startTime":3333.15,"endTime":3335.61,"body":"So, what's the future of crypto?"},{"speaker":"and that means the problem is this","startTime":3335.61,"endTime":3337.32,"body":"Well with real assets, it's tough,"},{"speaker":"and that means the problem is this","startTime":3337.32,"endTime":3338.82,"body":"I don't know how to do this,"},{"speaker":"and that means the problem is this","startTime":3338.82,"endTime":3340.5,"body":"nobody knows how to solve this,"},{"speaker":"and that means the problem is this","startTime":3340.5,"endTime":3343.41,"body":"how do you go from the crypto"},{"speaker":"and that means the problem is this","startTime":3340.5,"endTime":3343.41,"body":"world to the real world?"},{"speaker":"and that means the problem is this","startTime":3343.41,"endTime":3345.873,"body":"Digital assets, I can explain this,"},{"speaker":"and that means the problem is this","startTime":3347.28,"endTime":3349.56,"body":"maybe that is the future of the world,"},{"speaker":"and that means the problem is this","startTime":3349.56,"endTime":3351.96,"body":"all of us with virtual reality helmets,"},{"speaker":"and that means the problem is this","startTime":3351.96,"endTime":3353.64,"body":"we stay in a digital world,"},{"speaker":"and that means the problem is this","startTime":3353.64,"endTime":3355.86,"body":"real world is less and less important."},{"speaker":"and that means the problem is this","startTime":3355.86,"endTime":3358.983,"body":"In that case, maybe crypto"},{"speaker":"and that means the problem is this","startTime":3355.86,"endTime":3358.983,"body":"is actually the way to go."},{"speaker":"and that means the problem is this","startTime":3360.93,"endTime":3363.09,"body":"But at the moment, I can probably say"},{"speaker":"and that means the problem is this","startTime":3363.09,"endTime":3366.303,"body":"this part here is the part"},{"speaker":"and that means the problem is this","startTime":3363.09,"endTime":3366.303,"body":"where crypto has a problem."},{"speaker":"and that means the problem is this","startTime":3368.28,"endTime":3369.843,"body":"Okay, and that's it."},{"speaker":"and that means the problem is this","startTime":3371.333,"endTime":3374.333,"body":"(audience applauds)"},{"speaker":"and that means the problem is this","startTime":3375.52,"endTime":3378.243,"body":"- [Victoria] Do we have any"},{"speaker":"and that means the problem is this","startTime":3375.52,"endTime":3378.243,"body":"questions from the floor?"},{"speaker":"and that means the problem is this","startTime":3379.14,"endTime":3380.993,"body":"- [Questioner] This is a"},{"speaker":"and that means the problem is this","startTime":3379.14,"endTime":3380.993,"body":"really simple question:"},{"speaker":"and that means the problem is this","startTime":3382.59,"endTime":3385.35,"body":"putting aside Ponzi scheme concerns,"},{"speaker":"and that means the problem is this","startTime":3385.35,"endTime":3386.953,"body":"which I'm not going to talk about,"},{"speaker":"and that means the problem is this","startTime":3386.953,"endTime":3389.7,"body":"a very simple question, which is,"},{"speaker":"and that means the problem is this","startTime":3389.7,"endTime":3393.39,"body":"when things fail, you need a backup plan."},{"speaker":"and that means the problem is this","startTime":3393.39,"endTime":3394.47,"body":"In traditional finance,"},{"speaker":"and that means the problem is this","startTime":3394.47,"endTime":3396.3,"body":"you could usually find a written record,"},{"speaker":"and that means the problem is this","startTime":3396.3,"endTime":3398.91,"body":"it might be written on a computer program,"},{"speaker":"and that means the problem is this","startTime":3398.91,"endTime":3400.623,"body":"but it's written, it's in ink."},{"speaker":"and that means the problem is this","startTime":3401.88,"endTime":3403.14,"body":"I had the impression"},{"speaker":"and that means the problem is this","startTime":3403.14,"endTime":3405.57,"body":"that that is not really"},{"speaker":"and that means the problem is this","startTime":3403.14,"endTime":3405.57,"body":"possible to do in crypto,"},{"speaker":"and that means the problem is this","startTime":3405.57,"endTime":3407.07,"body":"so if the whole,"},{"speaker":"and that means the problem is this","startTime":3407.07,"endTime":3411.18,"body":"what my kids jokingly call"},{"speaker":"and that means the problem is this","startTime":3407.07,"endTime":3411.18,"body":"the Interwebs, crashes,"},{"speaker":"and that means the problem is this","startTime":3411.18,"endTime":3413.19,"body":"if we just lose power"},{"speaker":"and that means the problem is this","startTime":3413.19,"endTime":3418.19,"body":"and don't have any access"},{"speaker":"and that means the problem is this","startTime":3413.19,"endTime":3418.19,"body":"to the digital world,"},{"speaker":"and that means the problem is this","startTime":3418.89,"endTime":3420.12,"body":"what happens?"},{"speaker":"and that means the problem is this","startTime":3420.12,"endTime":3421.21,"body":"- You mean to say"},{"speaker":"and that means the problem is this","startTime":3422.13,"endTime":3423.66,"body":"within the digital world alone,"},{"speaker":"and that means the problem is this","startTime":3423.66,"endTime":3426.393,"body":"not connecting to the real,"},{"speaker":"and that means the problem is this","startTime":3423.66,"endTime":3426.393,"body":"traditional finance world."},{"speaker":"and that means the problem is this","startTime":3427.29,"endTime":3429.66,"body":"- [Questioner] Right, because"},{"speaker":"and that means the problem is this","startTime":3427.29,"endTime":3429.66,"body":"you've already, I think,"},{"speaker":"and that means the problem is this","startTime":3429.66,"endTime":3432.783,"body":"adequately explained why"},{"speaker":"and that means the problem is this","startTime":3429.66,"endTime":3432.783,"body":"that connection is difficult."},{"speaker":"and that means the problem is this","startTime":3433.71,"endTime":3437.13,"body":"- So, within the digital finance world,"},{"speaker":"and that means the problem is this","startTime":3437.13,"endTime":3438.75,"body":"as long as people are willing"},{"speaker":"and that means the problem is this","startTime":3438.75,"endTime":3441.36,"body":"to buy and sell different"},{"speaker":"and that means the problem is this","startTime":3438.75,"endTime":3441.36,"body":"types of digital assets"},{"speaker":"and that means the problem is this","startTime":3441.36,"endTime":3442.53,"body":"for different prices,"},{"speaker":"and that means the problem is this","startTime":3442.53,"endTime":3445.083,"body":"that world is self-contained"},{"speaker":"and that means the problem is this","startTime":3442.53,"endTime":3445.083,"body":"and it's very elegant."},{"speaker":"and that means the problem is this","startTime":3446.43,"endTime":3448.383,"body":"Our problem is, essentially,"},{"speaker":"and that means the problem is this","startTime":3449.393,"endTime":3450.45,"body":"there are two things which happen,"},{"speaker":"and that means the problem is this","startTime":3450.45,"endTime":3451.563,"body":"one is regulation,"},{"speaker":"and that means the problem is this","startTime":3452.49,"endTime":3455.04,"body":"traditional financial intermediaries,"},{"speaker":"and that means the problem is this","startTime":3455.04,"endTime":3456.36,"body":"regulators will not allow them"},{"speaker":"and that means the problem is this","startTime":3456.36,"endTime":3458.28,"body":"to enter the digital finance world"},{"speaker":"and that means the problem is this","startTime":3458.28,"endTime":3460.89,"body":"unless they have some kind of wrapper"},{"speaker":"and that means the problem is this","startTime":3460.89,"endTime":3464.25,"body":"which makes them look like a"},{"speaker":"and that means the problem is this","startTime":3460.89,"endTime":3464.25,"body":"traditional financial asset,"},{"speaker":"and that means the problem is this","startTime":3464.25,"endTime":3466.323,"body":"example, Bitcoin futures, for example."},{"speaker":"and that means the problem is this","startTime":3468.06,"endTime":3471.15,"body":"I don't see that changing anytime soon,"},{"speaker":"and that means the problem is this","startTime":3471.15,"endTime":3476.15,"body":"especially because the current"},{"speaker":"and that means the problem is this","startTime":3471.15,"endTime":3476.15,"body":"SEC Chair, Gary Gensler,"},{"speaker":"and that means the problem is this","startTime":3476.4,"endTime":3478.59,"body":"is highly against the whole idea"},{"speaker":"and that means the problem is this","startTime":3478.59,"endTime":3480.27,"body":"of treating the crypto world"},{"speaker":"and that means the problem is this","startTime":3480.27,"endTime":3481.71,"body":"as anything different"},{"speaker":"and that means the problem is this","startTime":3480.27,"endTime":3481.71,"body":"from the normal world."},{"speaker":"and that means the problem is this","startTime":3481.71,"endTime":3483.99,"body":"I mean, he's using things"},{"speaker":"and that means the problem is this","startTime":3481.71,"endTime":3483.99,"body":"like the Howey test"},{"speaker":"and that means the problem is this","startTime":3483.99,"endTime":3486.9,"body":"to decide whether something"},{"speaker":"and that means the problem is this","startTime":3483.99,"endTime":3486.9,"body":"is a security offering or not."},{"speaker":"and that means the problem is this","startTime":3486.9,"endTime":3491.9,"body":"So I think, in a traditional"},{"speaker":"and that means the problem is this","startTime":3486.9,"endTime":3491.9,"body":"financial system,"},{"speaker":"and that means the problem is this","startTime":3493.08,"endTime":3498.0,"body":"I don't think we need to"},{"speaker":"and that means the problem is this","startTime":3493.08,"endTime":3498.0,"body":"worry so much at the moment"},{"speaker":"and that means the problem is this","startTime":3498.0,"endTime":3500.97,"body":"about these guys invading this."},{"speaker":"and that means the problem is this","startTime":3500.97,"endTime":3504.9,"body":"You got a bunch of tech people"},{"speaker":"and that means the problem is this","startTime":3500.97,"endTime":3504.9,"body":"who don't understand finance,"},{"speaker":"and that means the problem is this","startTime":3504.9,"endTime":3506.13,"body":"and you've got a bunch of finance people"},{"speaker":"and that means the problem is this","startTime":3506.13,"endTime":3508.02,"body":"who don't understand tech,"},{"speaker":"and that means the problem is this","startTime":3508.02,"endTime":3510.75,"body":"so how do you get the two"},{"speaker":"and that means the problem is this","startTime":3508.02,"endTime":3510.75,"body":"guys to talk to each other,"},{"speaker":"and that means the problem is this","startTime":3510.75,"endTime":3512.25,"body":"that's the problem right now."},{"speaker":"and that means the problem is this","startTime":3512.25,"endTime":3515.91,"body":"If you look at Sam"},{"speaker":"and that means the problem is this","startTime":3512.25,"endTime":3515.91,"body":"Bankman-Fried, with FTX,"},{"speaker":"and that means the problem is this","startTime":3515.91,"endTime":3519.093,"body":"he had literally no idea"},{"speaker":"and that means the problem is this","startTime":3515.91,"endTime":3519.093,"body":"how the actual world worked,"},{"speaker":"and that means the problem is this","startTime":3520.17,"endTime":3522.6,"body":"if you read what he's talking about,"},{"speaker":"and that means the problem is this","startTime":3522.6,"endTime":3524.49,"body":"it seemed to be somewhat"},{"speaker":"and that means the problem is this","startTime":3522.6,"endTime":3524.49,"body":"of a Ponzi scheme,"},{"speaker":"and that means the problem is this","startTime":3524.49,"endTime":3527.193,"body":"believe in me and the value"},{"speaker":"and that means the problem is this","startTime":3524.49,"endTime":3527.193,"body":"of everything will go up."},{"speaker":"and that means the problem is this","startTime":3528.54,"endTime":3529.373,"body":"It didn't."},{"speaker":"and that means the problem is this","startTime":3530.25,"endTime":3531.443,"body":"- [Questioner] How about,"},{"speaker":"and that means the problem is this","startTime":3533.94,"endTime":3536.25,"body":"if you go by real world as, let's say,"},{"speaker":"and that means the problem is this","startTime":3536.25,"endTime":3538.5,"body":"buy land, or gold,"},{"speaker":"and that means the problem is this","startTime":3538.5,"endTime":3540.15,"body":"backed by digital assets,"},{"speaker":"and that means the problem is this","startTime":3540.15,"endTime":3544.5,"body":"will it make any difference,"},{"speaker":"and that means the problem is this","startTime":3540.15,"endTime":3544.5,"body":"the best of both?"},{"speaker":"and that means the problem is this","startTime":3544.5,"endTime":3546.99,"body":"- What do you mean? Can"},{"speaker":"and that means the problem is this","startTime":3544.5,"endTime":3546.99,"body":"you elaborate on that?"},{"speaker":"and that means the problem is this","startTime":3546.99,"endTime":3548.49,"body":"- [Questioner] For"},{"speaker":"and that means the problem is this","startTime":3546.99,"endTime":3548.49,"body":"instance, I have a house,"},{"speaker":"and that means the problem is this","startTime":3548.49,"endTime":3551.82,"body":"and I want to raise some funds on it,"},{"speaker":"and that means the problem is this","startTime":3551.82,"endTime":3554.86,"body":"so I have a physical-backed asset"},{"speaker":"and that means the problem is this","startTime":3555.87,"endTime":3559.74,"body":"on which, if I could able"},{"speaker":"and that means the problem is this","startTime":3555.87,"endTime":3559.74,"body":"to tokenize and raise funds,"},{"speaker":"and that means the problem is this","startTime":3559.74,"endTime":3561.39,"body":"is that doable?"},{"speaker":"and that means the problem is this","startTime":3561.39,"endTime":3563.85,"body":"- Yes, that's what I talked about"},{"speaker":"and that means the problem is this","startTime":3563.85,"endTime":3565.68,"body":"with Martingale fractionalization,"},{"speaker":"and that means the problem is this","startTime":3565.68,"endTime":3566.88,"body":"that's the whole idea."},{"speaker":"and that means the problem is this","startTime":3566.88,"endTime":3567.9,"body":"But it sounds weird,"},{"speaker":"and that means the problem is this","startTime":3567.9,"endTime":3569.19,"body":"because the whole point about this is,"},{"speaker":"and that means the problem is this","startTime":3569.19,"endTime":3572.43,"body":"I'm borrowing the expected"},{"speaker":"and that means the problem is this","startTime":3569.19,"endTime":3572.43,"body":"value of my house,"},{"speaker":"and that means the problem is this","startTime":3572.43,"endTime":3573.84,"body":"which is the value of my house"},{"speaker":"and that means the problem is this","startTime":3573.84,"endTime":3576.51,"body":"times the probability that"},{"speaker":"and that means the problem is this","startTime":3573.84,"endTime":3576.51,"body":"I might lose it or not,"},{"speaker":"and that means the problem is this","startTime":3576.51,"endTime":3578.28,"body":"is the crypto way of thinking of it."},{"speaker":"and that means the problem is this","startTime":3578.28,"endTime":3580.41,"body":"For a risk-neutral person,"},{"speaker":"and that means the problem is this","startTime":3580.41,"endTime":3581.82,"body":"I don't care whether"},{"speaker":"and that means the problem is this","startTime":3580.41,"endTime":3581.82,"body":"I get the actual value"},{"speaker":"and that means the problem is this","startTime":3581.82,"endTime":3582.78,"body":"or the expected value."},{"speaker":"and that means the problem is this","startTime":3582.78,"endTime":3586.74,"body":"- [Questioner] But let's"},{"speaker":"and that means the problem is this","startTime":3582.78,"endTime":3586.74,"body":"say, in a business,"},{"speaker":"and that means the problem is this","startTime":3586.74,"endTime":3588.21,"body":"like shares?"},{"speaker":"- Well, I'll put it this way","startTime":3590.31,"endTime":3592.5,"body":"this is all the beginning of this."},{"speaker":"- Well, I'll put it this way","startTime":3592.5,"endTime":3593.82,"body":"That whole thing about,"},{"speaker":"- Well, I'll put it this way","startTime":3593.82,"endTime":3595.08,"body":"going back to your question"},{"speaker":"- Well, I'll put it this way","startTime":3595.08,"endTime":3596.97,"body":"about the digital world"},{"speaker":"- Well, I'll put it this way","startTime":3595.08,"endTime":3596.97,"body":"and the real world,"},{"speaker":"- Well, I'll put it this way","startTime":3596.97,"endTime":3598.56,"body":"and how you bring them together,"},{"speaker":"- Well, I'll put it this way","startTime":3598.56,"endTime":3601.14,"body":"I think we are only now"},{"speaker":"- Well, I'll put it this way","startTime":3598.56,"endTime":3601.14,"body":"beginning to grapple"},{"speaker":"- Well, I'll put it this way","startTime":3601.14,"endTime":3603.093,"body":"with the complexity of that problem."},{"speaker":"- Well, I'll put it this way","startTime":3604.058,"endTime":3605.55,"body":"The last five years,"},{"speaker":"- Well, I'll put it this way","startTime":3605.55,"endTime":3607.14,"body":"the crypto world has been going great,"},{"speaker":"- Well, I'll put it this way","startTime":3607.14,"endTime":3608.04,"body":"except for the fact"},{"speaker":"- Well, I'll put it this way","startTime":3608.04,"endTime":3610.32,"body":"that nobody has figured out that part."},{"speaker":"- Well, I'll put it this way","startTime":3610.32,"endTime":3614.1,"body":"Now, there is almost like a crypto winter."},{"speaker":"- Well, I'll put it this way","startTime":3614.1,"endTime":3615.42,"body":"Okay, there may be a way,"},{"speaker":"- Well, I'll put it this way","startTime":3615.42,"endTime":3617.31,"body":"there my be real-life solutions"},{"speaker":"- Well, I'll put it this way","startTime":3617.31,"endTime":3618.78,"body":"which they're trying to solve now,"},{"speaker":"- Well, I'll put it this way","startTime":3618.78,"endTime":3621.0,"body":"but it's still the beginning."},{"speaker":"- Well, I'll put it this way","startTime":3621.0,"endTime":3623.67,"body":"- I might hijack the questions,"},{"speaker":"- Well, I'll put it this way","startTime":3623.67,"endTime":3624.503,"body":"if that's all right,"},{"speaker":"- Well, I'll put it this way","startTime":3624.503,"endTime":3626.223,"body":"with my privilege of chair."},{"speaker":"- Well, I'll put it this way","startTime":3627.12,"endTime":3628.59,"body":"As you know, I'm very interested"},{"speaker":"- Well, I'll put it this way","startTime":3628.59,"endTime":3631.92,"body":"in regulation of cyberspace"},{"speaker":"- Well, I'll put it this way","startTime":3628.59,"endTime":3631.92,"body":"and digital technology,"},{"speaker":"- Well, I'll put it this way","startTime":3631.92,"endTime":3634.14,"body":"you touched on regulation."},{"speaker":"- Well, I'll put it this way","startTime":3634.14,"endTime":3635.19,"body":"Very brief thoughts"},{"speaker":"- Well, I'll put it this way","startTime":3635.19,"endTime":3638.943,"body":"about the prospects of"},{"speaker":"- Well, I'll put it this way","startTime":3635.19,"endTime":3638.943,"body":"regulation of cryptocurrency?"},{"speaker":"- Well, I'll put it this way","startTime":3640.32,"endTime":3641.61,"body":"- Very good question."},{"speaker":"- Well, I'll put it this way","startTime":3641.61,"endTime":3644.76,"body":"The thing, as I've talked"},{"speaker":"- Well, I'll put it this way","startTime":3641.61,"endTime":3644.76,"body":"about with Gary Gensler,"},{"speaker":"- Well, I'll put it this way","startTime":3644.76,"endTime":3648.93,"body":"is that Gary Gensler is"},{"speaker":"- Well, I'll put it this way","startTime":3644.76,"endTime":3648.93,"body":"talking about the crypto world"},{"speaker":"- Well, I'll put it this way","startTime":3648.93,"endTime":3652.5,"body":"as just like another"},{"speaker":"- Well, I'll put it this way","startTime":3648.93,"endTime":3652.5,"body":"asset in the real world,"},{"speaker":"- Well, I'll put it this way","startTime":3652.5,"endTime":3654.57,"body":"so a lot of regulation is,"},{"speaker":"- Well, I'll put it this way","startTime":3654.57,"endTime":3657.99,"body":"I'm sorry, you may call it not a security,"},{"speaker":"- Well, I'll put it this way","startTime":3657.99,"endTime":3659.61,"body":"you may call it an initial coin offering,"},{"speaker":"- Well, I'll put it this way","startTime":3659.61,"endTime":3660.72,"body":"but that's a security,"},{"speaker":"- Well, I'll put it this way","startTime":3660.72,"endTime":3663.51,"body":"which means these are the"},{"speaker":"- Well, I'll put it this way","startTime":3660.72,"endTime":3663.51,"body":"rules you need to jump through."},{"speaker":"- Well, I'll put it this way","startTime":3663.51,"endTime":3665.43,"body":"So for example, the Howey test,"},{"speaker":"- Well, I'll put it this way","startTime":3665.43,"endTime":3666.48,"body":"which I talked about,"},{"speaker":"- Well, I'll put it this way","startTime":3666.48,"endTime":3668.97,"body":"was created in 1934,"},{"speaker":"- Well, I'll put it this way","startTime":3668.97,"endTime":3671.28,"body":"it's still being used today"},{"speaker":"- Well, I'll put it this way","startTime":3671.28,"endTime":3673.92,"body":"to do something which was never envisaged"},{"speaker":"- Well, I'll put it this way","startTime":3673.92,"endTime":3677.16,"body":"even 10 years ago, forget 1934."},{"speaker":"- Well, I'll put it this way","startTime":3677.16,"endTime":3680.28,"body":"So one bunch of regulators are saying"},{"speaker":"- Well, I'll put it this way","startTime":3680.28,"endTime":3681.27,"body":"this is no different"},{"speaker":"- Well, I'll put it this way","startTime":3681.27,"endTime":3683.61,"body":"from a traditional financial instrument,"},{"speaker":"- Well, I'll put it this way","startTime":3683.61,"endTime":3685.74,"body":"so we can regulate it the same way."},{"speaker":"- Well, I'll put it this way","startTime":3685.74,"endTime":3687.99,"body":"You've got another bunch of"},{"speaker":"- Well, I'll put it this way","startTime":3685.74,"endTime":3687.99,"body":"regulators who are saying,"},{"speaker":"- Well, I'll put it this way","startTime":3687.99,"endTime":3690.75,"body":"okay, let's find ways"},{"speaker":"- Well, I'll put it this way","startTime":3690.75,"endTime":3694.68,"body":"in which to treat this as"},{"speaker":"- Well, I'll put it this way","startTime":3690.75,"endTime":3694.68,"body":"new assets in themselves."},{"speaker":"- Well, I'll put it this way","startTime":3694.68,"endTime":3696.27,"body":"The second problem is,"},{"speaker":"- Well, I'll put it this way","startTime":3696.27,"endTime":3697.65,"body":"again, going back to the real world,"},{"speaker":"- Well, I'll put it this way","startTime":3697.65,"endTime":3699.18,"body":"unless you can show"},{"speaker":"- Well, I'll put it this way","startTime":3699.18,"endTime":3704.01,"body":"that it has an effect on real"},{"speaker":"- Well, I'll put it this way","startTime":3699.18,"endTime":3704.01,"body":"cash flows or real assets,"},{"speaker":"- Well, I'll put it this way","startTime":3704.01,"endTime":3706.127,"body":"it's tough for a regulator"},{"speaker":"- Well, I'll put it this way","startTime":3704.01,"endTime":3706.127,"body":"to do something about it,"},{"speaker":"- Well, I'll put it this way","startTime":3706.127,"endTime":3707.55,"body":"you're basically saying"},{"speaker":"- Well, I'll put it this way","startTime":3707.55,"endTime":3709.65,"body":"one arbitrary number has crashed."},{"speaker":"- Well, I'll put it this way","startTime":3709.65,"endTime":3710.91,"body":"How do you do this?"},{"speaker":"- Well, I'll put it this way","startTime":3710.91,"endTime":3713.64,"body":"Think about Nate Chastain and OpenSea,"},{"speaker":"- Well, I'll put it this way","startTime":3713.64,"endTime":3716.313,"body":"was that insider trading,"},{"speaker":"- Well, I'll put it this way","startTime":3713.64,"endTime":3716.313,"body":"was it not insider trading?"},{"speaker":"- Well, I'll put it this way","startTime":3717.27,"endTime":3719.13,"body":"Some people would argue"},{"speaker":"- Well, I'll put it this way","startTime":3717.27,"endTime":3719.13,"body":"that is not insider trading,"},{"speaker":"- Well, I'll put it this way","startTime":3719.13,"endTime":3720.903,"body":"you've got a joke card,"},{"speaker":"- Well, I'll put it this way","startTime":3722.73,"endTime":3724.05,"body":"how do you know the"},{"speaker":"- Well, I'll put it this way","startTime":3722.73,"endTime":3724.05,"body":"price is going to go up,"},{"speaker":"- Well, I'll put it this way","startTime":3724.05,"endTime":3725.67,"body":"where's the insider knowledge there?"},{"speaker":"- Well, I'll put it this way","startTime":3725.67,"endTime":3727.317,"body":"It's a very tough question,"},{"speaker":"- Well, I'll put it this way","startTime":3727.317,"endTime":3730.65,"body":"and I think the basic"},{"speaker":"- Well, I'll put it this way","startTime":3727.317,"endTime":3730.65,"body":"answer, quick answer, is,"},{"speaker":"- Well, I'll put it this way","startTime":3730.65,"endTime":3732.66,"body":"as far as the regulator can see a parallel"},{"speaker":"- Well, I'll put it this way","startTime":3732.66,"endTime":3735.27,"body":"between the digital"},{"speaker":"- Well, I'll put it this way","startTime":3732.66,"endTime":3735.27,"body":"world and the real world,"},{"speaker":"- Well, I'll put it this way","startTime":3735.27,"endTime":3736.22,"body":"they're going to use that"},{"speaker":"- Well, I'll put it this way","startTime":3736.22,"endTime":3738.75,"body":"to try to assert their"},{"speaker":"- Well, I'll put it this way","startTime":3736.22,"endTime":3738.75,"body":"authority over this."},{"speaker":"- Well, I'll put it this way","startTime":3738.75,"endTime":3740.43,"body":"- And polarized views,"},{"speaker":"- Well, I'll put it this way","startTime":3740.43,"endTime":3742.8,"body":"as with a lot in the digital world"},{"speaker":"- Well, I'll put it this way","startTime":3742.8,"endTime":3744.51,"body":"around how to govern it."},{"speaker":"- Well, I'll put it this way","startTime":3744.51,"endTime":3745.47,"body":"And with that, folks,"},{"speaker":"- Well, I'll put it this way","startTime":3745.47,"endTime":3747.69,"body":"I'm afraid we have run out of time,"},{"speaker":"- Well, I'll put it this way","startTime":3747.69,"endTime":3751.23,"body":"so it only now remains for me"},{"speaker":"- Well, I'll put it this way","startTime":3747.69,"endTime":3751.23,"body":"to thank those of you at home"},{"speaker":"- Well, I'll put it this way","startTime":3751.23,"endTime":3753.6,"body":"for joining in and tuning in today,"},{"speaker":"- Well, I'll put it this way","startTime":3753.6,"endTime":3755.37,"body":"and those of you in the audience"},{"speaker":"- Well, I'll put it this way","startTime":3755.37,"endTime":3756.9,"body":"for coming to see us in person,"},{"speaker":"- Well, I'll put it this way","startTime":3756.9,"endTime":3760.02,"body":"and of course to Professor Raghavendra Rau"},{"speaker":"- Well, I'll put it this way","startTime":3760.02,"endTime":3762.54,"body":"for another superb lecture."},{"speaker":"- Well, I'll put it this way","startTime":3762.54,"endTime":3764.183,"body":"Thank you very much."},{"speaker":"- Well, I'll put it this way","startTime":3764.183,"endTime":3767.183,"body":"(audience applauds)"}]}