{"id":"Y21YtLzGbH0","title":"Blockchain 101 \"Onramp: Start Here! Deconstructing the Blockchain Ecosystem\" | San Francisco, CA","description":"This is the first event in our Blockchain Onramp education series.\n\nThe ecosystem around the blockchain technology is enormously complex. You might have the most familiarity with trading Bitcoin. Or buying ICOs. Or building DApps. Or perhaps even creating a chain from scratch. All of these are valid -- but very different -- points within this system.\n\nWhen we're looking ahead at how the technology can be used effectively in the future, the first step is to understand what actually makes up this ecosystem today and where you fit within it.\n\nIn this event, we'll take you from the highest level to the practical by examining what makes up the blockchain ecosystem and, ultimately, where the biggest opportunities for product, design and development lie.\n\n*About the Blockchain Onramp Series*\n\nBlockchain Onramp is a series of events covering the full spectrum of knowledge necessary to operate effectively within the blockchain ecosystem as a designer, developer or product person. After participating in these events, you should be able to take your functional expertise in any of these areas and apply them to blockchain projects.\n\nWe are doing this to provide a key -- and currently missing -- plain-English onramp for people of all functional experience who are interested in building real businesses on this new technology.\n\nThe format of each event may differ slightly but they will be a combination of expert talks and discussions with industry practitioners.\n\nThe rough Blockchain Onramp Series roadmap is:\n\nProduct Series: Ecosystem, DApps and Strategy\nDesign Series: Onboarding UX, Best Practices\nDevelopment Series: Developer stack, Building on TestNets, Security, Best Practices\nStartup Series: Marketing, Business Models, and Fundraising\n\n\nFollow the latest from NEAR Protocol on, \n\nMedium:   / nearprotocol  \nTwitter:   / nearprotocol  \nGitHub: https://github.com/nearprotocol\nLinkedIn:   / near-protocol  \nTelegram: https://t.me/cryptonear\nDiscord:   / discord","channel_name":"NEAR Protocol","published_at":"2018-12-14T00:00:00.000Z","thumbnail_url":"https://img.youtube.com/vi/Y21YtLzGbH0/hqdefault.jpg","transcript_text":"Oh so this is deconstructing the blockchain ecosystem so for everyone who's gotten into it I don't know how deep you guys are at this point but it's always a bit of a trial trying to find your way into this ecosystem I remember distinctly what it was like for me doing my research and it was like it was like a tire fire where you're sort of descending through the oily layers of smoke and misinformation to try and find where's the signal among the noise and and how do you how do you figure out what what matters what's what's real what's not and you know from all that like you have to sort of descend through the smoke and then you have to figure out who do you listen to and then from that you have to start building a picture of what this ecosystem is and then you can start figuring out what are the problems that you're supposed to solve so what I'm hoping to do here is shorten that path a little bit for you so one of the analogies that a lot of people use is the sort of the five stages of grief is a pretty good one for getting into the space you kind of see you kind of start with the abject denial then you get really angry that everybody else is is you know doing this and and and why does this even exist I've been through every single one of these over the last couple of years then there was definitely the bargaining phase which is like you know this is only good for a few things and obviously then you get depressed when you start seeing that all the idiots are getting rich and and finally there's there's acceptance that actually this is a maybe a viable technology and it's something that that's some of the smartest people in the world are working on and you know that's hopefully if you're not there I encourage you to find your way there and hopefully this can be helpful and if you are there then hopefully this can be helpful as well so like I said once you've kind of descended and you've actually gotten to the point where you believe in this you have to get your bearings you have to figure out you know what what is here well where did we arrive and and where can I fit in and so again I think a lot of the context that we get is is very much focused around starting from the technology and trying to educate you about why blockchain is a you know multi-layered series of cryptographic things that represent X Y Z right and and like that's maybe not as interesting for a lot of people to try and figure out it I'm a much more basic level like what's actually going on here and and and now can I be a part of it so that's basically my goal here is to try and short-circuit that so I think we all know the feeling if you've started to explore the space then the news comes in faster than you can absorb it so so information information throttling is is definitely a really strong you know personal asset to have so but it's a lot of fun and so again what I want to talk about today is is not the technology itself so I mean I'll kind of touch on the edges of the technology but you're not gonna see any of these like this is what blockchain is diagrams you can find those pretty much anywhere so today is much more about what goes on around the technology and they also say that you typically age in dog years in the space because of how fast the information comes but it's also a lot of fun so just quick bit about me I had operations at near near is a mobile first scalable blockchain so it's uses sharding that's layer 1 charting solution you may have an idea of what that means you may not but we we have a team of the essentially Russian rocket scientists out there building this they've built charted databases before and you know it's this is a problem that I deeply care about I'm very interested my background is sort of straddles as weird weird blend of of Wall Street and then online education in the software space and it's funny how this kind of draws from actually absolutely every single piece of this but so what I want to cover today is basically five things just kind of take a quick walk through what the future might look like in some of the macro trends that that define it take a look back in time at some of the historical narratives more focusing on the narrative then on the history because the narrative tends to drive us far more than the actual fact underneath it finally or then moving into the use cases talk about where we are in adoption and then naturally from that what are the problems that we're facing and then ultimately what does that mean for how you can actually begin to step into this so kicking things off with vision to to giant super trends that I think are well worth paying attention to are the fact that everything is becoming data I think what you guys are probably all well aware of the idea of software is eating the world but this keeps going and it's more than just software eating the world it's everything is becoming data and we are digitizing and data data tizen just about everything and on the flip side the people who control the data or the entities that control that data are getting more and more and more power in in the global system so one of the things that's becoming data is money so when we when we got started we bartered then we went and we had coinage and coinage moved into banking where we were storing it in a vault and we got an IOU for the exact amount of coordination that we put in there and then central bank's started making up money out of thin air and and that was Fiat and then then we stopped even bothering to actually issue money at all and and we put money in the cloud and so now we just trust that money going between accounts is out there somewhere and it really all it is is ones and zeroes and we have to trust that that exists assets are also becoming data right so once upon a time if you could defend it you own it then we moved into physical titling we we began Agrotech aggregating digitized goods so so you know things like Real Estate's you you're able to pool these all together securitize them sell them off and now today we're actually instead of the aggregation of digital goods we're actually moving back into the disaggregation specifically chopping things up into tokens but again everything is starting to become data and of course you you are also now data sadly once upon a time we had total anonymity for a brief period of time there was data but it was forgotten but everything you do has a vapor trail which I think we're all well aware of but also you are a data point and you're a data point that gets passed around constantly everything every single thing you do gets tied back to these identities that companies have created for you behind the scenes whether it's Facebook or an advertising platform or a healthcare company everybody is passing you around behind the scenes so you are also data and this is important because if who controls the data controls the system so again once upon a time data used to disappear and that was wonderful we could get away with things right now we're in a phase where data is hoarded and and because people realize that you can extract value from that data and of course so right now corporations are basically using that you apply machine learning or use analytics I mean you can use it across a whole number of things I think we're all well aware of where that goes but ultimately it means that they're able to build better products but those products come with motes in those modes with rent and that means that ultimately it's it's it's a great rise up but once you're locked into a system and you don't and you can't leave it and you want to leave it that's a problem and among other problems which is of course that once you've centralized that data it becomes a tool for hackers a target for hackers it becomes a target for governments and it becomes an asset that companies can sell off so I don't want to I don't to stand on a soapbox but I mean it is obviously relevant to to all of our lives and the world that we live in that this is what this is what occurs and what we're hoping to move towards is individual control of data so this is one of the things that that blockchain allows which is which is quite interesting is is that we sort of we begin to read decentralized data and and allow you to contain control of it and so that I think is an important super trend that we're hoping to continue forward but we'll see and again just a quick illustration of if you control the data you control the world in 2001 there was one tech company in the top five and now in 2016 there are five tech companies in the top five largest companies I think we all know that but it's telling telling to see that and to see the value that gets placed on on the way that they're they're operating their gatekeeping so we kind of have two visions for the future I mean I'd say the default future is feature one which means which is where we are which is you know as a company what you should try to do is find as much data as possible hoard that data and monetize it and feature to is is there a future where we can Reedy centralize that data give the power back to the people and and ultimately will that actually open up new paths that are ultimately better and and I think you everybody has an opinion about kind of where that goes and I'm more just gonna take a step back and and just say future one might be a local maximum whereas feature two is a global Maxima and it's just it's a tough journey to get there but we have to get there that's not a given I think we can all agree that we're early enough in this space that we don't actually know we don't we don't actually know if this is if this is you know if that is in fact a better world or if it's not but I think we're all confident enough to to you know put our time into it and actually try to get there and obviously it's a bumpy road you know we're in a lot of ways we're fighting people's natural tendencies to want to give their data to centralized entities right do you do you really want to do you really want the responsibility for controlling things I mean you know the more and more things I have the more things I lose so this is a really important set of forces there are a lot of user experience related reasons why we why it's actually a good thing to centralize a lot of a lot of data and so the only way that we can actually succeed is if we create some individual incentives that make it more worth your while to control this than it is to give it up and that's that's what sort of a fundamental thing or or or also if we have enough if we're fed up as a collective enough that we can vote through sort of the the aggregate systems that we have like of a control like governments and give them the tools to implement things like say GDP are in Europe which was more or less we're fed up with you know being monetized and and and and advertised that and not have control of our data and they were able to pass that which you know again pros and cons but in aggregate what it says is you know people are able to actually exercise their collective will through law it weed one of those two mechanisms to actually become compelling enough that people take a step forward otherwise it's just not going to happen we can't tell people day in and day out this is good for you eat your vitamins if they don't actually have a short-term incentive to do that so so one of the fundamental searches that we have in this space is looking for these incentives how do we how do we create how do we create new models new interactions that that show people that this is valuable and give them new ways of making this valuable for them in the short term so I think I think this is kind of a fun part historical narratives so you know obviously the best way to get context for where you are is to know where you've been and this is a little bit different than then you're your average history just because I'm not gonna walk through the dates of what led up to the Bitcoin white paper I think you can find that online what I want to highlight is that actually it's a convergence it's not the convergence of a single thread it's convergence of a whole ton of different threads it all all come together so you know one of them is the cypherpunks movement you know freedom cryptography from the government you know the government used to actually regulate the export of cryptography you know that's not the only thing they stand for but but it was it was it was an important step forward you know you had obviously the digital money movement was was a major factor you know people for decades and decades and decades since there were computers we're trying to invent digital money you know you have the open and closed Internet paradigm which I'm actually gonna I'm actually talk about in a sec you have open source which has been constantly struggling for a business model I mean open source software is phenomenal but but the mechanisms by which it's produced still are really problematic for developers and also for the maintenance of that software so it's definitely not the optimal way to develop the systems it just happens to be the way systems have been developed you also have social trends like I saying with GDP are you have you have the beginnings of movements that are getting bigger around turning against data hoarding against you know the sort of the governmental use of data and everything on that side and then finally I think another another useful one is is peer-to-peer the the file sharing movement was actually hugely influential in a lot of what's going on into this space because a lot of the protocols that that emerge from the peer-to-peer file-sharing movement actually informed or actually are effectively being used in in in you know the the blockchain world and I think specifically the fact that file sharing could not be killed was a very is a very interesting thing to keep in mind because you can see the same things in in Bitcoin which is you know despite every every effort whether internal or external intentional or unintentional it just continued to persist and that's actually a really useful set of lessons so I encourage you john backus put out a really interesting set of articles on on medium about the peer-to-peer file sharing history so I'm not gonna dive into that specifically but it's actually a really good read where he kind of he kind of walks through the history of file sharing and kind of how how the protocols developed and it was all about it was all about staying half a step ahead of what was going to shut down those protocols and and it wasn't they didn't go out there to be decentralized they were forced to be decentralized because everybody kept their reg you know the lawyers and governments were playing whack-a-mole and and the only way for them not to get whacked was the decentralized and so was it's kind of an interesting progression that's that that's gone through that we're where I I think one of the key takeaways is in fact that that decentralization is not an end it's it's more of a side effect of trying to avoid other things so this is the one I wanted to highlight which is kind of interesting this is actually something that I heard first from Benedict Evans from a 16z who's his talks online are really great they're they're really useful for everything from you know consumer trends to AI driven research to to blockchain stuff you basically I think he just gets paid to be smart and and give talks luckily he's good at it so basically the the theory here is is of course that in the early 90s we had closed networks you know I did the way you got into the into the internet was at best through AOL and then in the late 90s we opened up those Internet's and that was the the heyday of the decentralized web and where you had permissionless innovation which was of course a phrase that we've all heard and it's a super important thing for for enabling aggregate creativity just to emerge you know sort of the emergent property of aggregated creativity is innovation as opposed to top-down innovation but then of course in the late 2000s we had the riri centralization through gatekeepers through aggregators like googles and Facebooks and platforms and then walled gardens through smartphones kind of sealed the lid on a lot of things because of course you know the apple the Apple Store the Play Store things like that are hugely influential gateways for for accessing the the web and pretty much all of the features of it but then the question is are we cycling back into an open paradigm because we have the potential to be in an open paradigm because a lot of what we're looking at in the new web is reopening redo centralizing again the key question is can we get there and is there enough incentive to get there but but that's but that's the possibility is that that pendulum comes back out again or that that aperture opens back out all right so now we're into that now now we're into the details you guys are well familiar 2008 Bitcoin Bitcoin still is the chimp I mean by market cap I don't know what its dominance technically is I don't know if you guys track the market directly maybe you have a quote from from today but it's you know it is still the number one and for the foreseeable future it will be it also has been driven by a bunch of narratives though because of course when Bitcoin first started it was it was an e cash thing right David again it was for digital money is it proof of concept and and I didn't make up this by the way Nick Carter had had a really great post where he went into this and you know so it's Bitcoin house it has all these different narratives it's been ecash it's been a peer-to-peer payment network it's been digital gold that censorship resistant it's been you know used in the darknet it's been used as a reserve currency for crypto it's been used as a programmable database and finally as an uncorrelated financial asset and you don't need to read the details of this but I mean this was this was the image that he used in that post to kind of illustrate the progression of the narratives it doesn't really matter which one is which to be honest I think for me my point is more about the generalization of narratives and the fact that they change over time and and that Bitcoin you know the the blue here is is the e-cash proof of concept which obviously started out great and as sort of petered down into nothing you know whereas on the other side you have uncorrelated financial assets are starting to come in as institutional players are beginning to look at the space but it's been interesting to track this over time and to see you know how how well you know bitcoin is it's gonna everybody's gonna pay for everything with Bitcoin oh wait that's too slow and too expensive okay well so you know it's it's actually it's more like gold and and will store value off to the side and so I think that that's an interesting thing that sort of informs both context and hopefully a healthy skepticism for anything you read today where people haven't figured out these narratives take years to progress but you know they all kind of run their course and we don't know which one is gonna win and obviously not necessarily one is going to win because you have a market when multiple people have different ideas of what's going on so in 2013 we had the rise of the currency coins and so that was those were the coins that were specifically modeling themselves off of some of the properties of Bitcoin that they wanted to emulate so you know you had light coin ripple and dogecoin all kind of got started in 2013 Ripple it's a little a little bit of a special case you know yet Manero you had - easy cash this this was kind of the early innovation again you don't need to really understand like the details of which one is which this is this is a price chart that shows Bitcoin coming out and kind of when we started tracking prices for these different these different currencies but yeah so so so kind of the first first thing was like oh well bitcoin is starting to actually work so we're gonna sort of copy it and make it a little bit better for the use case that we want whether it's privacy with Manero and z cash or light coin is basically just copying it dogecoin why the hell not and that was kind of the next the next iteration going at empty to kind of move beyond Bitcoin or at least replace Bitcoin one of the key problems is of course like how do you have to value a currency so so one of the struggles that we've had in the space has actually been around the valuation of these things because what does it mean if bitcoins worth a thousand dollars a bitcoins worth a hundred thousand dollars I think nobody really has this figured out all they can really do is start to walk backwards do the math and say okay wait so what's the total addressable market of money so if we create a currency what do what is that even worth you know so so so you could start with well remittances are about four hundred billion dollars a year you know that's that that's a pretty chunky market so if we can capture X portion of the remittances market and the value of our token and it's a currency you know maybe that gives us some percentage of that or you could start walking up the US money supply or you could go up to the global money supply which is 90 trillion dollars so you know does that mean that if you create a new currency that actually becomes digital gold or digital you know the let's say the world's reserve currency that now it's it has a 90 trillion dollar addressable market I don't know it's hard to say but this is these are some of the problems with with you know what's created the space and made it the way it is is is there's so much failure to understand how to how to actually create an exact model around what it actually is worth so we move into the we move into a theorem obviously so if your own comes around in 2014 and that basically becomes the rise of the smart contract platforms it's super innovative interesting idea big Bitcoin allowed you to you know to point allowed you to program certain pieces of what it was doing it was kind of like having an addition calculator you know plus minus divide calculator and so what Vitalik and and and crew came out with was well so what if instead of having an addition calculator we actually just built a computer it was using the same type of technology and so that was where theorem came from and that kicked off this idea that well so what if we like what can we build on top of a computer that runs in the whole world across the whole world in a decentralized way and so then you started to see the rise of the smart contract platforms but still I mean all of these things have taken years so you know you had you had a number of platforms sort of slowly coming out 2016 I mean if you're even classic isn't even a new platform it's just a fork when they got pissed off that you know that the Dow hack got resolved in a certain way and then finally in 2017 I think there there was enough momentum building up where where there's enough market interest there was enough proof of concept that people you know a lot more currencies thought they could come out and or I say currencies a lot more projects came out and decided that they could do it better essentially and so you saw yo Scioto T Zoe's neo Cardno Tron all sorts of people coming out and you know in the last year or two and of course how do we value those and so again it's if we don't know how to value it then it's it's your guess is as good as mine it's undefined optimism and so how do we value a global infrastructure platform that the entire new Internet could run on like what if the existing Internet could actually capture value hell if I know and so you know where do you start I don't know global GDP is about 80 trillion dollars some random study on the internet said internet drives six percent of u.s. GDP so maybe we're saying it's four trillion dollars that you could actually you could actually create and assign to to a global infrastructure platform and then you ask okay so what percentage of that could be captured and you can maybe maybe build a cash flow model based on that I don't know I don't think most people did that much homework when they were when they were just buying so of course we get we get more to the present as I think we are all well aware so the ICO bubble was started because basically anyone can launch a coin on aetherium and that was one of the interesting features that I I think it took people time to figure out that they could do it too you know there were a few things that fed into it which I'll go into as well I cos I cos obviously at the end of last year just completely exploded and you know they they there's a lot you can say about ICS but one of the key things is that it's outside it was kind of outside of traditional capital accumulative formation methods and so it kind of gave people a shortcut - - raising a whole bunch of money so what do you think they did well here we go irrational exuberance it's time to raise a bunch of money one interesting bit on the chart on the right is that it I say those aren't actually completely dead it's closed it's closed in the US and I think there might be sneaking in some data from from public private offerings but they're not completely dead yet they're just getting awfully close and so what fed the ico boom you know again how do you value an i CEO how do you capture value and I think one of the more influential theses was was put out by Union Square Ventures Joel Montenegro in 2016 and basically the idea was well maybe we just flipped the paradigm we say the applications that are built on the internet capture about 90% of the value you know the Google's the Facebook's on top of the internet captured the vast lion's share of value and the protocol is underneath that they sort of the guts and the pipes capture a very small piece of it well so what if we flip that and and say well I mean the whole point of the blockchain is that you're storing the data on the chain and you're storing the majority of everything on the chain and the apps themselves are only designed to be thin thin skins on top of it so really the protocol is the thing that's capturing all that value so you know the new web is not about apps it's about protocols and so once you say that all the value gets captured in protocols we don't really know what that looks like but that gives us an awfully good justification to buy and so again you know valuation models always tie into these narratives and it always helps drive some of the speculation and you can never pin anything down to a specific model but I think it's very instructive to say and I think that you'll probably get majority agreement that that was one of the most influential models that people were using when justifying some of the irrational exuberance they were using around what was effectively internet bubble 2.0 for basically the same reasons and so of course this year the ICO bubble is completely imploded the icos were built on top of aetherium which which actually helped the theory em a lot because of course you know that your aetherium was creating tokens on top of it that were then in theory all of the transactions from those tokens could could sort of trickle down into aetherium as well and so people were I mean there are a lot of really crazy crazy justifications for what was going on but aetherium was sort of one of the nerves was definitely that aetherium would capture most of the value of the sum of all the tokens that are that are built on top of it so of course with hiriam goes to the moon as well the problem is you know I SEOs actually weren't weren't that good I mean the tokens that were created on top of a theory and we're almost entirely worthless you know show me a token and I'll show you a coin and so I mean a lot of these tokens also had it as with any irrationally exuberant market you had too much money moving too quickly with not enough oversight so of course we had scams we had we had sort of soft scams which are you know teams that kind of know that they aren't really gonna do anything but they're gonna make it look like they're doing things you had genuinely genuinely intelligent people who thought they were doing good things who thought that their token was important but didn't really think it through and honestly most of the coins actually had no value capture and if you have no value capture then your token is actually worthless I'd be happy to talk about the details of that because I've been down that road after this if you guys want to dive into it but one of the one of the narratives of over the last call it six months was that the big path down and why we keep continuing to go down was this idea that a lot of the ICO is actually raised in aetherium in ether and so you know they were getting people who would become rich on the way up were invested we're reinvesting there they're either in icos who then had these big Treasuries filled with either and who were also riding it up but then when it started going down they said oh crap we raised twenty million dollars but now it's only fifteen million dollars and what happens if it goes to ten million dollars so they start selling and there's this narrative that you know it's this snowball effect that suddenly all the ico is that prop this whole market up start selling and dumping it back down and you know there there are a number of perspectives on either side you know you can find blog posts out there that are sort of debunking the facts of that but you know again let's less about facts and more about narratives I think that was a pretty that's been a pretty dominant narrative over the last call it six months and then here we are in the bear market it is a I mean a depression I don't know what you want to call it but but there are advantages to it and I think also one of the major triggers here has also been the sec and in the regulatory landscape which this is something that you can't ignore in this space I mean we did our best to ignore it as a space by sticking our heads in the sand and saying well if we don't call it a security it's not a security and the SEC doesn't really like that it turns out if it looks like a security and it smells like a security it might be a security and they actually have a lot of interest in that and so one of the more recent updates has been specifically from November so the SEC began prosecuting some of the scams that were out there some of the obvious scams but they've also begun prosecuting securities violations which is which is different criminal violations are obviously something that you know should should be prosecuted and everyone kind of gets that and they knew that was going to happen but once but kind of everyone was waiting to see what what they would do with regards to the unregister of selling unregistered securities which is kind of the whole problem with icos is if your token is a security and you've sold it and not registered you've like that that doesn't work with the SEC that's the whole point of the SEC is that you need to register these kinds of things so now we now we've crossed over the SEC has made it clear that they're going to start taking a look at these as unregistered securities and they're going to begin taking action against founders and companies who have done that the fines haven't been massive generally it's been sort of a return the money and and and take a fine and we'll move on especially if you've been sort of operating cooperating you know in good faith and everything like that but that has an awfully chilling effect when you know you might have already raised a whole bunch of money and then the bear market hit and now you don't have as much money and now the SEC is gonna tell you to return all the money that you originally raised to your investors and you know that you're sitting on a bankrupt company and it's just waiting for the other shoe to drop that's not great for a market so one other thing on regulatory clarity so so again we it's been one of the big one of the big chilling factors overall for the whole thing and and so a lot of what happened in the ico space I think was people taking a step forward sort of swallowing the risk that they knew they were taking on the regulatory side and now now now those I don't know what you call those those hens are coming to roost I don't know I remember what the expression is but and some of the key ones were who is actually supposed to regulate this stuff and this is going to be a us-centric view but the u.s. tends to take a very global regulatory perspective they tend not to be too shy about about stepping outside of the boundaries of the country so it has a major and so the real question was who is gonna regulate it and are they gonna regulate it and how and so there are three three main entities that tend to be a part of this the SEC they deal with new new securities issuance the CFTC deals with commodities that are already out and the CFPB tends to do the Consumer Financial Protection Bureau tends to deal with money transfers and things like that and so a lot of the question was okay so who is gonna regulate this stuff and and what what did what are their models going to be and how can we conform to those models because we still like you know there is there are still reasons why we want to have tokens and and you know we have to be able to have tokens if we're gonna drive this forward but you know that's very difficult if you don't know what the you know that if three agencies are all gonna come at you for different reasons that make it physically impossible for you to have a token so there was a little ray of light actually which was which was quite nice from the the head of the CFTC who of course it's his job to to register commodities so I mean you'll sort of you can take this with a bit of a grain of salt but he did he did essentially say that you could transform from a security so it's sort of when it's when it's offered it's a security but then your network could actually be achieve a certain level of decentralization and utility where it actually becomes a commodity not as security anymore and you know where do we take that where does that go you know there are a lot of a lot of questions that that that raises but at least we're moving towards okay so maybe so maybe a theory 'm was a security when it came out but we're not gonna worry too much about that because now it's not a security so at least we can like at least we can trade a theory ether while assuming that the SEC is not going to get interested in us at least we can trade either and say well you know it might fall under the CFTC but you know they you know at least we're sort of narrowing the scope of the people who are gonna you know hang the sort of Damocles over our head all right other raise of hopes so that was a bit of a downer on the end right cuz here we are in the middle of the bear market and by the way I don't know where that image came from but I absolutely love it it's a little Amazon box so you know we do have governments that have been trying to take steps forward you know we have governments in Switzerland and Britain you know it's Switzerland in particular I think has been doing a lot of sandbox saying although they've been a little back-and-forth you know you have experiments occurring in Singapore a lot of them in Europe especially Scandinavia you know you've also got things where banking banking takes forever you know super risk-averse but they're beginning to take steps forward you have a lot of institutional capital that's that's beginning to take slow steps forward and again these are multi-year trends and everybody's super impatient we're all moving seven times as fast as we should but the trends are actually moving to the two forward such that you know some of these factors are going to play out over the next few years I'm you know you also Enterprise custody has been a big issue that was one I think over the summer and and in the spring that was really hot for a lot of people was you know we as an enterprise it'd be great if we could trade Bitcoin but we don't even know how where to store it you know things like that you know it's like literally like the guts of the financial system aren't even built yet but we're getting there and hopefully hopefully we're in it we've you know cut out the scammers and we can actually get the building so another point of context that that's useful is the the Gartner hype cycle I don't know if you guys are familiar with this chart but basically you innovation kicks off irrational exuberance we don't know what the hell is going on it's a peak it all kind of comes crashing down and everybody thinks it's over and that's when the real work begins and you begin to sort of create productivity I mean you can look at the internet internet one followed the same the same thing and you know it depends where you want to start in crypto you have to be a little bit careful which is why again it's useful to look back at historical narratives because every time Bitcoin has crashed they've sort of gone back and pointed at the chart and said well hey we're like about to we're about to get back up on the plateau so you have to be a little bit careful about which narratives you you choose to use but on some level this is this has played out before so as far as use cases this is fun stuff why the hell are we gonna use this that's a very unhappy looking cat if you can't see that so so I think there are basically two theses about where adoptions actually going to come from so one of them is is I'll call the killer app thesis which is basically as long as there's one app that that breaks out you know that's this the Facebook of the new platform or you know if you're looking at peer-to-peer that that's the BitTorrent of your the Napster of the platform that that's going to show everyone else what you can build and then suddenly that's going to lead the charge and everyone else is going to figure out how to iterate off of that and spread laterally and then you have innovation and then you have success in a funny way we actually kind of already have a killer app which is which is Bitcoin which is I mean it's been chugging along for 10 years now you know so that's one thing there there's also again Union Square Ventures they've been pretty on point with a lot of their stuff you know the fad protocol thesis I think was definitely missing some some legs but in general they've been on this trend for a long time so a lot of their research is really worth following if you're in the space and they kind of partially rebut the killer app thesis which is actually where this chart comes from and they were talking about the myth of the infrastructure phase because one of the other narratives has of course been well all we have to do is put our heads down build build a ton of infrastructure and then it'll and then once we have the infrastructure once we have the pipes they'll all build it up on top that's not really how innovations typically worked typically there their whole argument is that is that typically an app will push things beyond where the infrastructure is capable of going they'll have to you know duct tape a bunch of stuff together but the fact that they have a good business is what drives them all the way forward and then the infrastructure sort of catches up and then the next app you know pushes forward and drives it further than it should go and then the infrastructure catches up so so it's a pretty strong rebuttal of the idea that you know if we just build out all this infrastructure they're gonna come so the second one is is what I call the hidden blockchain thesis so the idea is is will only have success when you can't actually see it so so you know when when even the developer might not even know that they're building on a blockchain or you know it's it's sort of abstracted to the degree that the developer has a business need and so they choose X as opposed to Y and X happens to be a blockchain and nobody actually cares you know so that's that's success really means when we don't know we're using blockchain then maybe that's where success is and I think these are - sometimes there's some overlap sometimes there's not killer app is a lot sexier than then hidden blockchain but they're both they're both well we're thinking about in considering so another one of our you favorite charts from from back in the day is of course like what did the internet look like in 1993 and just to give you a sense we're looking at the web servers you know we're running on sun servers and mac and windows we were using Internet traffic through FTP and telnet and Usenet you know so so even though that was early stages of the internet it basically it just it wasn't clear right I think we can all agree that you just never know from day one another really good model from from Benedict Evans if you haven't seen this talk I think it's ten year future this is the name of the talk he gives a really great description of the s-curves of innovation and basically the idea is that every every new technology roughly follows every every one of these macro technological waves roughly follows it's kind of this this let's call it a four-step path we're sort of you kind of you're in this product you start out in the prototyping phase where people don't really know what it's gonna be used for your kind of testing you're you're you're trying it sort of just technological hacking and then you move into the second phase which is the early adoption phase which is that we we have the technology but we really have no idea what to do with it or on the flip side we have a market but we have no idea what the technology's gonna do to bridge that the third phase is where you actually move into the exponential growth you have product market fit and then the fourth phase is mature adoption which actually one of his good points is that everybody everybody in the tech community jumps off after exponential growth when the real value the meet of the value is actually created in in the mature adoption phase for our purposes what's kind of interesting about this is so you know the way he talks about it again the talk is totally worth worth checking out as you know PPC's were one of these curves and then mobile kind of comes in behind it and then maybe what comes after that but but another one is that is that when you're in the early phase everybody tries to just reflect the existing world in the new world so so so they basically say like what did we think we were gonna use mobile apps for when they first came out I mean we had like stock stock checkers and and and like the weather app and things like that and and and you know there was no imagination and then today of course we're calling you burrs on it right and like you you you can't imagine what the Delta is between these two things and so the whole point is that you know step one when we're just inching there and we're just getting the ball rolling like the only the only way that we can express ourselves is is by sort of reflecting what we already know in the new technological paradigm and that's really where we are in the blockchain space we don't even know what what could be created and and again like can we can we cross that gap are we on an s-curve or are we on a just nothing the speed bump so use cases all right so so every use case basically I there kind of three major sets of use cases so currencies are one finance is another and and web three is another so you could probably arbitrarily group things slightly differently but but I think this is a useful frame for looking at this so currency is relatively straightforward you can look at the definition of a currency are things a unit of account you know basically do you do if you were submitting your books you know your accounting books would you quote it in dollars or would you quote it in bitcoins you know if you're buying something do you quote it in dollars or bitcoins medium of exchange you know are you are you actually exchanging it for goods and services and store of value is you know does it actually hold value are people putting it under their mattresses things like that a lot of the currencies are actually kind of hitting some of these currency like aspects and again one of the cool things or one of the interesting things was is it a currency or is it not it is aetherium is ether a currency or is it not if it's a currency it means something different than if it's just the utility platform if it's a currency it has a 90 trillion dollar total addressable market potentially if it's not then we don't anyways it's a worthwhile thing to take a look at I think currencies are currently the killer use case but in a way less interesting because of that so finance finances the other is financing in the development stack I think are sort of parallel but we're thinking about separately they rely on a lot of the same things so basically the idea is well guess what everybody says oh whoa wait we can rebuild the whole financial system over here in and you know it's sort of off to the side and and disintermediate the entire existing financial system and so some of it is is doing exactly that with existing use cases like settlements and cross-border transactions and things like that and some of its more actually sort of self-serving in the crypto ecosystem which is you know in order to trade crypto we must have the infrastructure to trade crypto we must have the Financial Services to support that like lending and and trading on margin and derivatives and all sorts of things that sort of represent like today's financial system but just in our little crypto world so so today services are one of the biggest use cases it's the picks and shovels right you know you have coinbase the exchange the exchanges are some of the most profitable companies in the world in in crypto and you know that's that's basically what they're doing you know you have exchanges you have hardware companies and services companies they're the ones who make the money here in this gold rush and you know we still need banking services so lending is another big one so financial systems run on lending lending actually informs a lot of things credit and lending and you know because so many things are built on top of the fundamental nugget of understanding what your interest rate is what your opportunity cost is and and so once we have the ability to lend that that gives us a lot a set of tools that we can build kind of the rest of this whole finance stack on top of so you know that's that's another use case that that's in the financial side in the finance stack and people are working on it and we're kind of still playing with it and innovating so another one is tokenizing assets so you know hey let's put your house on the blockchain right and well I won't go into there I won't go too deep into it but but I will say you know it does in theory it has the advantages of providing liquidity for illiquid assets and you know you can democratize the trading of those assets by you know because so you don't have to in the very beginning I was talking about how assets have been pooled together and and aggregated and sold off you know what if you could sort of chop that up into little tiny pieces and take little pieces of those it's an interesting theory has a lot of challenges so another one another piece of the finance stack is to stable coins and so you hear a lot about stable coins they've they've gotten sexier over the last year or so and the idea is that you need you need something stable in the crypto ecosystem as to operate as well as as a store of value as a medium of exchange and as a unit of account really the unit of account may be less important because it's if it's pegged to the dollar you might as well use the dollar but the idea is is is you know there are multiple types of stable coins and they all have problems it's a very difficult problem to solve and I won't go to the details here you can look into it but it just kind of want to highlight that as again like a fundamental nugget in our in our finance stack that needs to be figured out so what actually are the sort of the fundamental primitives that we actually have now that we didn't have before in in in the blockchain world so I think two of the big ones are accounts and payments so accounts are something that they are actually native to to the blockchain world and it means that you don't have to own the account the account natively lives on the blockchain and so suddenly you don't you're separated from this idea of the account accounts can be almost an autonomous thing even programs can actually have their own accounts cars can have their own accounts refrigerators gonna have their own accounts and suddenly it sort of it frees this world where anyone has actually autonomy over their money and then on the on the payment side now we also have the ability to rapidly and immediately settle payments we have and that also with lower cost structures gives us the ability to do micro payments and when you combine those two things you have some interesting new worlds where for instance like Internet of Things devices can have their own wallets and can do their own transactions completely autonomously from you and you can even imagine a world where there are autonomous vehicles that are owned by some fleet that kind of have their own accounts that sort of take care of their things and come back and and you know it's maybe maybe that's just maybe that's just still on that early phase where we're trying to reflect today's world in the new one but but it's kind of cool to have these these new primitives and we'll talk about primitives as well in the web 3 so the future well obviously I cos have really have really been kind of a stubbed toe for everyone we definitely need a lot more institutional tools and we need more of sort of those fundamental finance nuggets which are still you know lending credits you know obviously asset tokenization has it has plenty of stuff there too but but there's a pretty cool future there so people are obviously going to keep working on this regardless of what the price is right now so the one that personally I I'm most interested in is is is the web 3 side and I think a lot of the the noise are on the smart contract platforms is also obviously around web 3 and so the idea here is that you ridi centralize the web you know that's kind of a fun narrative because obviously was meant to be decentralized from the beginning something something something you know I won't get too invested in the soapbox there but what's what's kind of cool about you know basically you're sort of crossing this hybrid of you know sort of the Amazon Web Services that runs the web with the unkillable 'ti of Bitcoin and then you have this decentralized web which can do some really cool stuff like you know your app is no longer sensible because once it's launched it's it's out there you can't even change it it's also transparent because the code the code is open source if it's not open source it's open to someone because they're running it it's at least open binary and you can reverse engineer things so it's kind of pointless not to open source and and it's also for Keable so for instance this is actually a pro and a con because one of the one of the challenges is is that how do you create a business model that allows you to actually extract real economic value from from an app that you've created if somebody can just copy it remove your ability to take money out of it and redeploy it so there are kind of three things that this gives you back which is what which is kind of what's exciting about it is it gives you back control over your money it gives you back control over your data and it gives you back control over your identity and that again thinking back to those original macro forces you know that's kind of the whole point or not the whole point necessarily of the technology but kind of the reason why so many people are excited about this one of key challenges is do users really want this and again I'll keep I'll keep banging that drum because I don't want to be I am personally a skeptic and and I want to I want to be careful about presenting a one-sided narrative when in fact it is very definitely a two-sided narrative but so talking about primitives you know we're talking about finance primitives you know you got you got accounts and you get transactions so primitives that we have now on the web side or we have portability right so you can you can if you if you have an asset that comes out of a game a video game you can now take it like you own it and you can take it and you can walk away with it you can drop it into another game I mean that's kind of a silly toy example but it gives you a sense of what portability means and you don't need permission so cryptographic primitives are actually quite significant you know you can verify almost anything because you have so much easy access to the crypto rafi that underlies the blockchain you can say did something happen does somebody have something is this mine was this my transaction did I did you know did this company post this thing at this time and that actually creates a lot of value away in the world that demands transparency again accounts accounts specifically on this web mean that you have an account that that can actually hold your identity so your identity is also identity is also kind of a native thing because it's tied to the account and then finally peer-to-peer sort of the ability to permissionless lis interact so again you don't need permission again I'll use the silly example of like I have a sword from a game I don't need the permission of the game creator to give you that sword you know you you you and I can transact over here the central entity has no idea what's going on and that's that's actually very powerful but currently what have we applied that for what do you expect I don't think we've gotten porn on there but not for lack of trying it's gambling exchanges in gaming and you know not that many users at that there also other other interesting use cases I'm not gonna dive too deep into them but I also don't want to make it seem like all we're trying to do is rebuild apps you know it's it's there's a lot of other stuff that takes place on the web stack right you just a few examples live pier is a company that they do sort of crowdsource a video transcoding you know you've you've got distributed commodity computing so for people who need to do machine learning across large numbers of computers and you have some spare capacity in your iPhone you know in theory you could you could you could distribute that over a wide network you know you also have file storage you know again you have spare space in your hard drive you know it's kind of it's almost like it's almost like the the digital extension of the sharing economy right where you're kind of sharing your digital assets as well and so there's there's a lot of cool stuff that you can do with those ideas that you know we're still surfacing so just want to quickly mention since this is an overview obviously not even all changed it the same and you know there are public blockchains there are private blockchains and you know public chains are like aetherium everybody can see everything that's going on on the chain public doesn't necessarily mean not private and what I want to say public doesn't mean that your data is exposed completely because you can still use cryptography to encrypt it but the question the sort of unanswered question is is that sufficient is that sufficient to say my data is unavailable to anyone or is it only saying my date is unavailable to anyone for the next eight and a half years until they figure out how to break that encryption so open questions their private chains private chains are kind of the enterprise solution where of course enterprises want to control their data they don't even want to take those risks so they say hey why don't you take a blockchain and you just run all the notes on this blockchain yourselves and you can do the same thing with a consortium of companies that are collaborating so I could dive a little bit more in the private chains as well it's kind of like why would you use the blockchain but all that IBM answer that for their many many clients right so whoa what are the challenges that we have specifically I want to focus on the DAP side just because again that's that's kind of my ax to grind and it's also cool so so these problems are really designed to be your opportunities right so one of the points of this is is to this the surface ways that we need help and so I think I think you probably in seen a lot of them implicitly one of the ones that we have right here is that user experience socks on all levels of this of the of the user's journey from what does it take to actually enter the crypto ecosystem what it like how many steps does it take for me to actually go and buy crypto currency and then and then come in and figure out how the hell do I use this to interact with an app that's asking me to use this and you know it mean it means that I have to do a bunch of things it also means I have to know a bunch of things it means I have to look at Windows that are telling me with like big bold font like I can't lose my private key and I'm like what the hell is a private key you know what is a wallet why do I have to learn all these things just to use something and so this is why you have a 97 percent drop off for from from you know first user trying something to actually completing it and then you know you have you know the stories like you know that there are no protections for things like I forgot my my I forgot my private key and I lost X amount of Bitcoin which is a not uncommon thing the other side is that developer experience also sucks and we're actually going to do we're talking about this next week and our meetup and doing a deep dive on developer experience but developers are building this whole ecosystem right I'm not maybe not the entire thing but they're pretty important component of all this right and their experience is also terrible we had our whole team go out to the etherium hackathon and try out the the etherium tools and you know it was very clear the tools are all made by completely different people it requires you to you know the there's not a lot of education there's not a lot of support when you have errors it's it you know it's some things are up on Stack Overflow but that's from the wrong version you know it's basically it's a Wild West out there trying to figure out how do you cobble all this crap together and actually build something with it and so if you if you were to sort of survey developers of you know like what is the time between first clicking on the website and then having a deployed project it would be atrociously long and complicated so obviously we I think we've all heard of the scaling problem and you know the the the key example is what happened when crypto kitties went went crazy last year at the end of last year I mean a bunch of people decided that that was gonna be the hot new app and it was gonna break out and it was gonna you know that was the killer app we finally found it well the problem is when a bunch of people started using it on a trend on a network they can only handle 14 transactions a second the network comes up and then congestion comes in and then you know I'll talk about cost in a second but costs cost to go through the roof so this is a chart of pending transactions so this means that that these are the number of transactions that are waiting their turn to get put in a block and they they went from you know plus or minus call it 500 or you know several hundred up to the almost 20,000 over the course of what was going on there and of course that's a terrible experience because if you think that you know imagine trying to use this for paying for something and you're standing there with your buddy and you're just tapping your foot and you're waiting for your transaction to go through for who knows how long it takes to go through 20,000 transactions not a good experience so there's a there's a new wave of platforms coming out and and that have come out that have made a lot of promises but this is still very top of mind because this was a visceral experience for the whole community because not only was crypto kitty slow but everybody else was slow because it's like a shared hosting problem so so on the solution side we this is another path where where there have been multiple narratives the first one was it doesn't matter if Bitcoin scales like we'll figure it out we're developers we've got this and it turns out that the Bitcoin core developed team doesn't really want to move too fast they don't really want to break too much and they don't really have a lot of incentive to I mean bitcoin is designed to do one thing very very well and it does that thing very very well they don't need to necessarily go out of their way to break what works well in order to figure out how to scale it so what they what they said was all right we'll just push this we'll use Bitcoin on the bottom and we'll push this up to layer two it's what they call it right and so what that means is we're gonna we're gonna do as much energy and computation and transactions off the main chain and we're gonna come up with whether its side chains or we're gonna connect to people directly with state channels and we're gonna have them do all that stuff off chain and then when we're done with that we'll benchmark it back on the main chain stuff like that which actually sounds like a great idea except in practice that's been very complicated it's been hard to implement technologically and the user experience of trying to create that for your app hasn't been very good so there's there's been some disillusionment with layer 2 as well where we're starting to return back to this narrative of well actually maybe we should be scaling from layer 1 at the very bottom I mean so that's where there are kind of two two types of approaches one is can we make layer 1 much faster by just having better hardware and and and essentially like that that becomes a centralizing force and so you know someone like iOS they've gone out and said well actually so maybe we don't need 15,000 or 150 thousand nodes why don't we just take 21 nodes and and make them really good and and so that's that's kind of been their approach on one side is sort of quasi recent realizing things and then on the other side you have charting approaches which is something that we do it near and it's something that aetherium is trying to come out with and there are a few other players who are doing it as well which is much more of let's keep this as decentralized as possible and let's break it up into tiny pieces and use them all in parallel so that's another that that's kind of where where the arc is pushing right now obviously from our drivers seat we're somewhat biased as to where that should go but that should at least give you some context of like how we've tried to solve this problem and that it is definitely an unsolved problem as of today so the cost is the other problem which is of course you know if you're trying to build a business on top of things and your costs are completely unknown and they've gone from they've gone from you know $0.10 all the way up to what do we how high they went well so on the Bitcoin side you you go from something like was it 50 cents all the way up to 260 dollars per transaction I mean like you can you can't have that kind of variability in your app right like how do you build a business on something that has that level of variability like in order to do that you have you're basically you're like a commodities business that you know like a copper miner that has to hedge the price of copper meaning you would have to sort of figure out like a futures market to offset your risk it just doesn't make any sense right so we're just not there on the cost side if you want to if you want to create viable businesses you have to understand what your reliability is gonna look like and what your costs are gonna look like and speaking of businesses I mean business models are another thing that that are a serious problem meaning that that you know we thought I cos were the business model that was gonna work right because we finally said hey there's a way for developers to actually make money at this stuff and it turns out well that didn't work out too well most of the coins were were just roadblocks in front of users that were attempting to extract rent or they just didn't they there wasn't really a lot of reason to have those tokens and so that whole system kind of went by the wayside and so what do we have now I mean most of most - I mean to be frankly honest most of the apps that are out there are being supported by venture capital that's been sort of invested in the system that hasn't yet found a viable business model other than on the financial side that picks and shovels businesses you know so so it's like there's kind of this this this this breathe in of capital that's coming in it's kind of supporting things you have ecosystem funds from a lot of these networks that are that are funding businesses and apps that are being created on their networks but until those have independent business models that allow those entrepreneurs to go out there and make their own money like this is not sustainable and and so and not only that but it's more difficult in this space to actually use some of our existing business models for instance how do you build a SAS app when you like I was saying before when when somebody could literally just just take your contract and fork out the way that you were Hart you're bringing money from that contract and your contract is your app right so if I mean it and how do you do a monthly subscription if your costs look like this you know and and is that seven dollars a month how do you allocate that seven dollars a month you know it's stuff like that we it's more difficult to do on this space so so these are some of the works that are there we're really trying to figure out right now because unless fundamentally like you can't build a business unless you give people a way to make money it just doesn't work so this is one of I think one of the under address problems that absolutely has to be addressed otherwise this whole thing is just gonna be it's just gonna be airs gonna go right out of it when the capital dries up all right another one education so this this happens in all new markets but right now the incentives are out there if you're if you're a great developer and you know you're good at the stuff you build because there's still capital flowing into the system and and you're it's on the cutting edge and you're doing cool stuff you know and so that's that's just what happens in new markets is is people go out there and they build stuff and and you know then then we sort of we get the next wave behind them are the people who are we're maybe not quite on the on the bleeding edge but they're they've got one foot there and then they're blogging about it and you've got you know Doc's that are being written kind of like not really that well curated and like that's kind of the best institutional knowledge that we have right now and and then it's only when you get to step three which is when actually there there are jobs being created in the space that does that create the incentive for people to begin to educate you know for students to bother spending three months six months or whatever it takes to educate themselves up because they know that there's actually a return on that investment of their time and on the same time there's there there's an incentive to to teach there's an incentive to pay teachers because students are willing to pay them so there's a little bit of chicken-and-egg going on but the way that markets tend to develop is you have an education vacuum and this is definitely where we are now and of course this is part of the reason why we're here so one of those one of those one of those big sort of challenging problems psychologically when you have a bad day you wake up and you say well we're trying our Damus to give people control as much control as possible we're gonna give you your identity back we're gonna give you your data back we're gonna give you your money back it's gonna be the best and then you just go and drop it in the coin base and give them control and then be free centric we've read we've dear East we've Dee Reedy centralized the whip once again and that's that's a serious challenge and and I don't you know a lot of that comes down to a user experience challenge and so the you know circle back to the UX issues and the dev X issues but it's it's something that can be really disheartening and is also really challenging and we have to figure out how do we balance this how do we balance this this this natural human tendency to not want to think about stuff and to give it to other people with with you know the benefits of doing that which goes all the way back to what I was talking about which is you have to provide them with a clear incentive for them you know short term incentive for them to actually decentralize otherwise it's just not worth their time if they were thinking rationally and doing some sort of structured analysis maybe it would be but nobody does that these are humans so another one that's that that's definitely worth mentioning is is diversity and inclusion this is a space that isn't you know it's not terribly diverse and I'm not just talking about about skin right function is super important and you're always talking about this a little bit at the beginning but it's not about developers only it's about an ecosystem a three-dimensional ecosystem and we're not doing a very good job right now of welcoming other people into this ecosystem welcoming their voices and also giving them an on-ramp that isn't about throwing a bunch of technical crap at them right from day one another one is also industry experience you know as with a lot of early tech industries do you have a lot of very young and inexperienced people who are great at coming up with creative solutions but aren't necessarily drawing on best practices that have been crafted through years of industry experience so that's one thing to be careful of and of course gender is always a tech problem and I think it's exacerbated in in in box chains specifically but at least there's geographical diversity so just a quick bit on on where does that go from here so all you have to do is fix all the problems so user experience and developer experience that's you know there there are a lot of people in the product world in the design world who who are perfect fits for starting to figure these problems out you know we have to build out the ecosystem so you know if you could find the killer app that would be awesome you know we have we have scaling challenges which is a lot of what we're trying to address although we know we're sort of trying to take it on as much as we can you know and then there's a lot of things that we just don't have good models for you know I talked about valuation so much of what has driven the path of this market has actually been a lack of ability to properly understand how do we value these things what is it worth you win as the world's best distributed computing platform is that is that a million dollar business or a trillion dollar business you know we don't even know we have experiments in governance how do you how do you how do you if something's completely decentralized how do you actually operate that as like a tech company would where you can upgrade the system you can future-proof it you can you know you can if there's another platform that's getting better that's moving faster like how do you continue to innovate well you know you have to sort of does that mean you pull everybody on the system and you say hey can we get your permission to to push a software upgrade or you know how what does that look like so governance is actually a hugely important thing that that really in a lot of ways it's gonna determine the future of a lot of these these platforms and I think that's something that we've seen historically the different platforms that have different governance strategies like Bitcoin has a very very sort of let's call it change resistant type of infrastructure and you have etherium which has again something that's that it's not quite moving as fast as a lot would like there's a lot of chaos in the system you know I don't think we've yet found an example of somebody who's innovating too quickly or but you do have a lot of teams that are maybe a little too centralized and there's a lot of concern like aetherium also their their concerns around the centralization of its team so governance you know do you give all the power to the core developers if Vitalik says we should do a thing like the dow hack you know if he sort of comes out on one side and says we should resolve this hack by giving everyone their money back or not you know how much weight how much sway does that have these are actually really important questions that we we don't have a lot of test beds for things also like consensus models you know a proof-of-work is is is very well understood after ten years now but proof of stake is just coming out and everybody's using proof of stake going forward it's not the only one but we have a lot of things that need to be figured out so there's a lot of there's a lot of sort of academic work there's modelling work there's there's there's a lot around around business side there's a lot of competitive analysis like how do we how is this market going to develop strategically what does it take to win so so it's almost like it doesn't matter what your background is there is a way for you to find a problem because we have lots of them so I think I think really the pitch is is if you solve one of these problems you could be the catalyst to actually take this into the next phase and that's that's pretty cool like that's part of the fun of working on an emerging technology is it you can be a part of that process and there's so much greenfield and there's so much space and and the people who are working on these problems are nobody has it figured out so everybody needs help so we're all talking to each other and and it's a community that's really supportive of that so it's a lot of fun so if you want to start to kind of leave you leave you with something that's tangible but you know okay all you have to do is you figure out who do you follow you know you after you have to learn the tech it's a tech driven market you don't have to you don't have to read every single white paper that's out there that's that's totally overkill but you know you have to be comfortable the technical language I find a problem that actually motivates you that fits your skills you there's probably 12 blog posts about it and you'll and that's it and then you'll drop off a cliff try should try researching blockchain research blushing user experience and design and things like that you get to the edge of the world very quickly you know how do we value crypto currencies you get to the edge of the world very quickly so it might seem like we haven't figured out because some some some smart person got you know 5,000 collapse on medium but it's that there's not a lot I mean there's so much more that needs to be done and you know to help out wherever you can right you know we're all we're all here we're all builders were all makers you guys are motivated to come out outside of work hours and you know I think that's not too hard for you and if you can figure out how to how to hire yourself in because a lot of these are skill sets that need to be done you know like if you're a marketer a lot of these companies need to figure out how do they actually cross across the gap in and and and reach real users that's a hugely important skill that that isn't really well talked about there's a lot of this stuff and then finally please write write about it teach add to the collective wisdom you know I will make you a pitch about being a thought leader because that has some negative connotations out there but but I mean really anything that you add you become a leader just just by virtue of adding to our collective knowledge so thanks for thanks for taking the the time to learn and I hope you guys can go out there and do some do some good you","transcript_synced_at":"2026-11-04T04:33:43.071Z","segments":[{"start_seconds":0,"text":"Oh so this is deconstructing the blockchain ecosystem so for everyone who's gotten","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=0s"},{"start_seconds":8,"text":"into it I don't know how deep you guys are at this point but it's always a bit of a trial trying to find your way into this ecosystem I remember distinctly","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=8s"},{"start_seconds":16,"text":"what it was like for me doing my research and it was like it was like a tire fire where you're sort of descending through the oily layers of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=16s"},{"start_seconds":24,"text":"smoke and misinformation to try and find where's the signal among the noise and and how do you how do you figure out what what matters what's what's real","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=24s"},{"start_seconds":32,"text":"what's not and you know from all that like you have to sort of descend through the smoke and then you have to figure out who do you listen to and then from","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=32s"},{"start_seconds":40,"text":"that you have to start building a picture of what this ecosystem is and then you can start figuring out what are the problems that you're supposed to solve so what I'm hoping to do here is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=40s"},{"start_seconds":49,"text":"shorten that path a little bit for you so one of the analogies that a lot of people use is the sort of the five","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=49s"},{"start_seconds":56,"text":"stages of grief is a pretty good one for getting into the space you kind of see you kind of start with the abject denial","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=56s"},{"start_seconds":63,"text":"then you get really angry that everybody else is is you know doing this and and and why does this even exist I've been","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=63s"},{"start_seconds":71,"text":"through every single one of these over the last couple of years then there was definitely the bargaining phase which is like you know this is only good for a few things and obviously then you get","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=71s"},{"start_seconds":80,"text":"depressed when you start seeing that all the idiots are getting rich and and finally there's there's acceptance that actually this is a maybe a viable","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=80s"},{"start_seconds":87,"text":"technology and it's something that that's some of the smartest people in the world are working on and you know that's hopefully if you're not there I","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=87s"},{"start_seconds":94,"text":"encourage you to find your way there and hopefully this can be helpful and if you are there then hopefully this can be helpful as well so like I said once you've kind of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=94s"},{"start_seconds":103,"text":"descended and you've actually gotten to the point where you believe in this you have to get your bearings you have to figure out you know what what is here well where did we arrive and and where","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=103s"},{"start_seconds":112,"text":"can I fit in and so again I think a lot of the context that we get is is very much focused around starting from the technology and trying to educate you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=112s"},{"start_seconds":119,"text":"about why blockchain is a you know multi-layered series of cryptographic things that represent X Y Z right and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=119s"},{"start_seconds":127,"text":"and like that's maybe not as interesting for a lot of people to try and figure out it I'm a much more basic level like what's actually going on here and and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=127s"},{"start_seconds":134,"text":"and now can I be a part of it so that's basically my goal here is to try and short-circuit that so I think we all know the feeling if you've started to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=134s"},{"start_seconds":143,"text":"explore the space then the news comes in faster than you can absorb it so so information information throttling is is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=143s"},{"start_seconds":150,"text":"definitely a really strong you know personal asset to have so but it's a lot of fun and so again what I want to talk","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=150s"},{"start_seconds":158,"text":"about today is is not the technology itself so I mean I'll kind of touch on the edges of the technology but you're not gonna see any of these like this is what blockchain is diagrams you can find","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=158s"},{"start_seconds":166,"text":"those pretty much anywhere so today is much more about what goes on around the technology and they also say that you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=166s"},{"start_seconds":174,"text":"typically age in dog years in the space because of how fast the information comes but it's also a lot of fun so just quick bit about me I had operations at","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=174s"},{"start_seconds":183,"text":"near near is a mobile first scalable blockchain so it's uses sharding that's layer 1 charting solution you may have an idea of what that means you may not","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=183s"},{"start_seconds":191,"text":"but we we have a team of the essentially Russian rocket scientists out there building this they've built charted","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=191s"},{"start_seconds":198,"text":"databases before and you know it's this is a problem that I deeply care about I'm very interested my background is sort of straddles as weird weird blend","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=198s"},{"start_seconds":207,"text":"of of Wall Street and then online education in the software space and it's funny how this kind of draws from actually absolutely every single piece","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=207s"},{"start_seconds":215,"text":"of this but so what I want to cover today is basically five things just kind of take a quick walk through what the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=215s"},{"start_seconds":222,"text":"future might look like in some of the macro trends that that define it take a look back in time at some of the historical narratives more focusing on","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=222s"},{"start_seconds":230,"text":"the narrative then on the history because the narrative tends to drive us far more than the actual fact underneath it finally or then moving into the use","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=230s"},{"start_seconds":239,"text":"cases talk about where we are in adoption and then naturally from that what are the problems that we're facing and then ultimately what does that mean for how you can actually begin to step","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=239s"},{"start_seconds":246,"text":"into this so kicking things off with vision to to giant super trends that I think are well worth paying attention to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=246s"},{"start_seconds":255,"text":"are the fact that everything is becoming data I think what you guys are probably all well aware of the idea of software is eating the world but this keeps going","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=255s"},{"start_seconds":262,"text":"and it's more than just software eating the world it's everything is becoming data and we are digitizing and data data tizen just about everything","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=262s"},{"start_seconds":270,"text":"and on the flip side the people who control the data or the entities that control that data are getting more and more and more power in in the global","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=270s"},{"start_seconds":277,"text":"system so one of the things that's becoming data is money so when we when we got started we bartered then we went","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=277s"},{"start_seconds":284,"text":"and we had coinage and coinage moved into banking where we were storing it in a vault and we got an IOU for the exact amount of coordination that we put in there and then central bank's started","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=284s"},{"start_seconds":293,"text":"making up money out of thin air and and that was Fiat and then then we stopped even bothering to actually issue money at all and and we put money in the cloud","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=293s"},{"start_seconds":301,"text":"and so now we just trust that money going between accounts is out there somewhere and it really all it is is ones and zeroes and we have to trust","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=301s"},{"start_seconds":309,"text":"that that exists assets are also becoming data right so once upon a time if you could defend it you own it then","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=309s"},{"start_seconds":317,"text":"we moved into physical titling we we began Agrotech aggregating digitized goods so so you know things like Real","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=317s"},{"start_seconds":325,"text":"Estate's you you're able to pool these all together securitize them sell them off and now today we're actually instead of the aggregation of digital goods","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=325s"},{"start_seconds":333,"text":"we're actually moving back into the disaggregation specifically chopping things up into tokens but again everything is starting to become data","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=333s"},{"start_seconds":340,"text":"and of course you you are also now data sadly once upon a time we had total","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=340s"},{"start_seconds":347,"text":"anonymity for a brief period of time there was data but it was forgotten but everything you do has a vapor trail which I think we're all well aware of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=347s"},{"start_seconds":355,"text":"but also you are a data point and you're a data point that gets passed around constantly everything every single thing you do gets tied back to these identities that companies have created","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=355s"},{"start_seconds":363,"text":"for you behind the scenes whether it's Facebook or an advertising platform or a healthcare company everybody is passing you around behind the scenes so you are","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=363s"},{"start_seconds":372,"text":"also data and this is important because if who controls the data controls the system so again once upon a time data","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=372s"},{"start_seconds":380,"text":"used to disappear and that was wonderful we could get away with things right now we're in a phase where data is hoarded and and because people realize that you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=380s"},{"start_seconds":387,"text":"can extract value from that data and of course so right now corporations are basically using that you apply machine learning or use analytics I mean you can use it","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=387s"},{"start_seconds":395,"text":"across a whole number of things I think we're all well aware of where that goes but ultimately it means that they're able to build better products but those products come with motes in those modes","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=395s"},{"start_seconds":404,"text":"with rent and that means that ultimately it's it's it's a great rise up but once you're locked into a system and you don't and you can't leave it and you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=404s"},{"start_seconds":411,"text":"want to leave it that's a problem and among other problems which is of course that once you've centralized that data it becomes a tool for hackers a target","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=411s"},{"start_seconds":419,"text":"for hackers it becomes a target for governments and it becomes an asset that companies can sell off so I don't want","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=419s"},{"start_seconds":426,"text":"to I don't to stand on a soapbox but I mean it is obviously relevant to to all of our lives and the world that we live in that this is what this is what occurs","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=426s"},{"start_seconds":434,"text":"and what we're hoping to move towards is individual control of data so this is one of the things that that blockchain allows which is which is quite","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=434s"},{"start_seconds":442,"text":"interesting is is that we sort of we begin to read decentralized data and and allow you to contain control of it and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=442s"},{"start_seconds":449,"text":"so that I think is an important super trend that we're hoping to continue forward but we'll see and again just a quick illustration of if you control the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=449s"},{"start_seconds":458,"text":"data you control the world in 2001 there was one tech company in the top five and now in 2016 there are five tech companies in the top five","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=458s"},{"start_seconds":466,"text":"largest companies I think we all know that but it's telling telling to see that and to see the value that gets placed on on the way that they're","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=466s"},{"start_seconds":474,"text":"they're operating their gatekeeping so we kind of have two visions for the future I mean I'd say the default future is feature one which means which is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=474s"},{"start_seconds":483,"text":"where we are which is you know as a company what you should try to do is find as much data as possible hoard that data and monetize it and feature to is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=483s"},{"start_seconds":491,"text":"is there a future where we can Reedy centralize that data give the power back to the people and and ultimately will","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=491s"},{"start_seconds":499,"text":"that actually open up new paths that are ultimately better and and I think you everybody has an opinion about kind of where that goes and I'm more just gonna","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=499s"},{"start_seconds":507,"text":"take a step back and and just say future one might be a local maximum whereas feature two is a global Maxima and it's just it's a tough journey to get there","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=507s"},{"start_seconds":516,"text":"but we have to get there that's not a given I think we can all agree that we're early enough in this space that we don't actually know we don't we don't actually know if this is if this is you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=516s"},{"start_seconds":525,"text":"know if that is in fact a better world or if it's not but I think we're all confident enough to to you know put our time into it and actually try to get","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=525s"},{"start_seconds":531,"text":"there and obviously it's a bumpy road you know we're in a lot of ways we're","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=531s"},{"start_seconds":539,"text":"fighting people's natural tendencies to want to give their data to centralized entities right do you do you really want","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=539s"},{"start_seconds":546,"text":"to do you really want the responsibility for controlling things I mean you know the more and more things I have the more things I lose so this is a really important set of forces there are a lot of user experience related reasons why","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=546s"},{"start_seconds":555,"text":"we why it's actually a good thing to centralize a lot of a lot of data and so the only way that we can actually succeed is if we create some individual","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=555s"},{"start_seconds":563,"text":"incentives that make it more worth your while to control this than it is to give it up and that's that's what sort of a fundamental thing or or or also if we","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=563s"},{"start_seconds":572,"text":"have enough if we're fed up as a collective enough that we can vote through sort of the the aggregate systems that we have like of a control like governments and give them the tools","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=572s"},{"start_seconds":582,"text":"to implement things like say GDP are in Europe which was more or less we're fed up with you know being monetized and and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=582s"},{"start_seconds":589,"text":"and and advertised that and not have control of our data and they were able to pass that which you know again pros and cons but in aggregate what it says","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=589s"},{"start_seconds":597,"text":"is you know people are able to actually exercise their collective will through law it weed one of those two mechanisms to actually become compelling enough","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=597s"},{"start_seconds":606,"text":"that people take a step forward otherwise it's just not going to happen we can't tell people day in and day out this is good for you eat your vitamins","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=606s"},{"start_seconds":613,"text":"if they don't actually have a short-term incentive to do that so so one of the fundamental searches that we have in this space is looking for these incentives how do we how do we create","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=613s"},{"start_seconds":621,"text":"how do we create new models new interactions that that show people that this is valuable and give them new ways of making this valuable for them in the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=621s"},{"start_seconds":630,"text":"short term so I think I think this is kind of a fun part historical narratives so you know obviously the best way to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=630s"},{"start_seconds":639,"text":"get context for where you are is to know where you've been and this is a little bit different than then you're your average history just because I'm not","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=639s"},{"start_seconds":649,"text":"gonna walk through the dates of what led up to the Bitcoin white paper I think you can find that online what I want to highlight is that actually it's a convergence it's not the convergence of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=649s"},{"start_seconds":657,"text":"a single thread it's convergence of a whole ton of different threads it all all come together so you know one of them is the cypherpunks movement you know freedom cryptography from the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=657s"},{"start_seconds":666,"text":"government you know the government used to actually regulate the export of cryptography you know that's not the only thing they stand for but but it was it was it was an important step forward you know you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=666s"},{"start_seconds":674,"text":"had obviously the digital money movement was was a major factor you know people for decades and decades and decades since there were computers we're trying","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=674s"},{"start_seconds":681,"text":"to invent digital money you know you have the open and closed Internet paradigm which I'm actually gonna I'm actually talk about in a sec you have open source which has been constantly","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=681s"},{"start_seconds":689,"text":"struggling for a business model I mean open source software is phenomenal but but the mechanisms by which it's produced still are really problematic","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=689s"},{"start_seconds":697,"text":"for developers and also for the maintenance of that software so it's definitely not the optimal way to develop the systems it just happens to be the way systems have been developed","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=697s"},{"start_seconds":706,"text":"you also have social trends like I saying with GDP are you have you have the beginnings of movements that are getting bigger around turning against","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=706s"},{"start_seconds":714,"text":"data hoarding against you know the sort of the governmental use of data and everything on that side and then finally","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=714s"},{"start_seconds":722,"text":"I think another another useful one is is peer-to-peer the the file sharing movement was actually hugely influential in a lot of what's going on into this space because a lot of the protocols","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=722s"},{"start_seconds":730,"text":"that that emerge from the peer-to-peer file-sharing movement actually informed or actually are effectively being used in in in you know the the blockchain","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=730s"},{"start_seconds":738,"text":"world and I think specifically the fact that file sharing could not be killed was a very is a very interesting thing to keep in mind because you can see the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=738s"},{"start_seconds":747,"text":"same things in in Bitcoin which is you know despite every every effort whether internal or external intentional or","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=747s"},{"start_seconds":756,"text":"unintentional it just continued to persist and that's actually a really useful set of lessons so I encourage you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=756s"},{"start_seconds":764,"text":"john backus put out a really interesting set of articles on on medium about the peer-to-peer file sharing history so I'm","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=764s"},{"start_seconds":772,"text":"not gonna dive into that specifically but it's actually a really good read where he kind of he kind of walks through the history of file sharing and kind of how how the protocols developed","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=772s"},{"start_seconds":780,"text":"and it was all about it was all about staying half a step ahead of what was going to shut down those protocols and and it wasn't they didn't go out there","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=780s"},{"start_seconds":787,"text":"to be decentralized they were forced to be decentralized because everybody kept their reg you know the lawyers and governments were playing whack-a-mole","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=787s"},{"start_seconds":794,"text":"and and the only way for them not to get whacked was the decentralized and so was it's kind of an interesting progression that's that that's gone through that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=794s"},{"start_seconds":802,"text":"we're where I I think one of the key takeaways is in fact that that decentralization is not an end it's it's more of a side effect","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=802s"},{"start_seconds":809,"text":"of trying to avoid other things so this is the one I wanted to highlight which is kind of interesting this is actually","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=809s"},{"start_seconds":817,"text":"something that I heard first from Benedict Evans from a 16z who's his talks online are really great they're they're really useful for everything","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=817s"},{"start_seconds":824,"text":"from you know consumer trends to AI driven research to to blockchain stuff you basically I think he just gets paid","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=824s"},{"start_seconds":831,"text":"to be smart and and give talks luckily he's good at it so basically the the theory here is is of course that in the early 90s we had closed networks you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=831s"},{"start_seconds":840,"text":"know I did the way you got into the into the internet was at best through AOL and then in the late 90s we opened up those Internet's and that was the the heyday","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=840s"},{"start_seconds":848,"text":"of the decentralized web and where you had permissionless innovation which was of course a phrase that we've all heard and it's a super important thing for for","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=848s"},{"start_seconds":857,"text":"enabling aggregate creativity just to emerge you know sort of the emergent property of aggregated creativity is innovation as opposed to top-down","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=857s"},{"start_seconds":865,"text":"innovation but then of course in the late 2000s we had the riri centralization through gatekeepers through aggregators like googles and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=865s"},{"start_seconds":872,"text":"Facebooks and platforms and then walled gardens through smartphones kind of sealed the lid on a lot of things because of course you know the apple the Apple Store the Play Store things like","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=872s"},{"start_seconds":880,"text":"that are hugely influential gateways for for accessing the the web and pretty much all of the features of it but then","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=880s"},{"start_seconds":888,"text":"the question is are we cycling back into an open paradigm because we have the potential to be in an open paradigm because a lot of what we're looking at","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=888s"},{"start_seconds":895,"text":"in the new web is reopening redo centralizing again the key question is can we get there and is there enough incentive to get there but but that's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=895s"},{"start_seconds":903,"text":"but that's the possibility is that that pendulum comes back out again or that that aperture opens back out all right so now we're into that now now we're","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=903s"},{"start_seconds":911,"text":"into the details you guys are well familiar 2008 Bitcoin Bitcoin still is the chimp I mean by market cap I don't know what its dominance technically is I","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=911s"},{"start_seconds":919,"text":"don't know if you guys track the market directly maybe you have a quote from from today but it's you know it is still the number one and for the foreseeable","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=919s"},{"start_seconds":927,"text":"future it will be it also has been driven by a bunch of narratives though because of course when Bitcoin first started it was it was an e cash thing","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=927s"},{"start_seconds":935,"text":"right David again it was for digital money is it proof of concept and and I didn't make up this by the way Nick Carter had had a really great post where he went into","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=935s"},{"start_seconds":943,"text":"this and you know so it's Bitcoin house it has all these different narratives it's been ecash it's been a peer-to-peer payment network it's been digital gold","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=943s"},{"start_seconds":951,"text":"that censorship resistant it's been you know used in the darknet it's been used as a reserve currency for crypto it's been used as a programmable database and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=951s"},{"start_seconds":959,"text":"finally as an uncorrelated financial asset and you don't need to read the details of this but I mean this was this","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=959s"},{"start_seconds":966,"text":"was the image that he used in that post to kind of illustrate the progression of the narratives it doesn't really matter which one is which to be honest I think for me my point is more about the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=966s"},{"start_seconds":974,"text":"generalization of narratives and the fact that they change over time and and that Bitcoin you know the the blue here is is the e-cash proof of concept which","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=974s"},{"start_seconds":982,"text":"obviously started out great and as sort of petered down into nothing you know whereas on the other side you have uncorrelated financial assets are","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=982s"},{"start_seconds":990,"text":"starting to come in as institutional players are beginning to look at the space but it's been interesting to track this over time and to see you know how","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=990s"},{"start_seconds":997,"text":"how well you know bitcoin is it's gonna everybody's gonna pay for everything with Bitcoin oh wait that's too slow and too expensive okay well so you know it's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=997s"},{"start_seconds":1005,"text":"it's actually it's more like gold and and will store value off to the side and so I think that that's an interesting thing that sort of informs both context","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1005s"},{"start_seconds":1012,"text":"and hopefully a healthy skepticism for anything you read today where people haven't figured out these narratives take years to progress but you know they","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1012s"},{"start_seconds":1020,"text":"all kind of run their course and we don't know which one is gonna win and obviously not necessarily one is going to win because you have a market when multiple people have different ideas of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1020s"},{"start_seconds":1027,"text":"what's going on so in 2013 we had the rise of the currency coins and so that was those were the coins that were","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1027s"},{"start_seconds":1035,"text":"specifically modeling themselves off of some of the properties of Bitcoin that they wanted to emulate so you know you had light coin ripple and dogecoin all kind of got started in 2013 Ripple it's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1035s"},{"start_seconds":1044,"text":"a little a little bit of a special case you know yet Manero you had - easy cash this this was kind of the early innovation again you don't need to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1044s"},{"start_seconds":1052,"text":"really understand like the details of which one is which this is this is a price chart that shows Bitcoin coming out and kind of when we started tracking prices for these different these","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1052s"},{"start_seconds":1060,"text":"different currencies but yeah so so so kind of the first first thing was like","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1060s"},{"start_seconds":1067,"text":"oh well bitcoin is starting to actually work so we're gonna sort of copy it and make it a little bit better for the use case that we want whether it's privacy with","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1067s"},{"start_seconds":1074,"text":"Manero and z cash or light coin is basically just copying it dogecoin why the hell not and that was kind of the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1074s"},{"start_seconds":1084,"text":"next the next iteration going at empty to kind of move beyond Bitcoin or at least replace Bitcoin one of the key problems is of course like how do you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1084s"},{"start_seconds":1093,"text":"have to value a currency so so one of the struggles that we've had in the space has actually been around the valuation of these things because what does it mean if bitcoins worth a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1093s"},{"start_seconds":1100,"text":"thousand dollars a bitcoins worth a hundred thousand dollars I think nobody really has this figured out all they can really do is start to walk backwards do the math and say okay wait so what's the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1100s"},{"start_seconds":1109,"text":"total addressable market of money so if we create a currency what do what is that even worth you know so so so you could start with well remittances are","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1109s"},{"start_seconds":1116,"text":"about four hundred billion dollars a year you know that's that that's a pretty chunky market so if we can capture X portion of the remittances market and the value of our token and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1116s"},{"start_seconds":1124,"text":"it's a currency you know maybe that gives us some percentage of that or you could start walking up the US money supply or you could go up to the global money supply which is 90 trillion","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1124s"},{"start_seconds":1133,"text":"dollars so you know does that mean that if you create a new currency that actually becomes digital gold or digital you know the let's say the world's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1133s"},{"start_seconds":1140,"text":"reserve currency that now it's it has a 90 trillion dollar addressable market I don't know it's hard to say but this is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1140s"},{"start_seconds":1149,"text":"these are some of the problems with with you know what's created the space and made it the way it is is is there's so much failure to understand how to how to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1149s"},{"start_seconds":1158,"text":"actually create an exact model around what it actually is worth so we move into the we move into a theorem","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1158s"},{"start_seconds":1164,"text":"obviously so if your own comes around in 2014 and that basically becomes the rise of the smart contract platforms it's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1164s"},{"start_seconds":1172,"text":"super innovative interesting idea big Bitcoin allowed you to you know to point allowed you to program certain pieces of what it was doing it was kind","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1172s"},{"start_seconds":1180,"text":"of like having an addition calculator you know plus minus divide calculator and so what Vitalik and and and crew","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1180s"},{"start_seconds":1187,"text":"came out with was well so what if instead of having an addition calculator we actually just built a computer it was using the same type of technology and so","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1187s"},{"start_seconds":1195,"text":"that was where theorem came from and that kicked off this idea that well so what if we like what can we build on top of a computer that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1195s"},{"start_seconds":1202,"text":"runs in the whole world across the whole world in a decentralized way and so then you started to see the rise of the smart contract platforms but still I mean all of these things have taken years so you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1202s"},{"start_seconds":1211,"text":"know you had you had a number of platforms sort of slowly coming out 2016 I mean if you're even classic isn't even a new platform it's just a fork when","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1211s"},{"start_seconds":1219,"text":"they got pissed off that you know that the Dow hack got resolved in a certain way and then finally in 2017 I think there there was enough momentum building","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1219s"},{"start_seconds":1228,"text":"up where where there's enough market interest there was enough proof of concept that people you know a lot more currencies thought they could come out and or I say currencies a lot more","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1228s"},{"start_seconds":1237,"text":"projects came out and decided that they could do it better essentially and so you saw yo Scioto T Zoe's neo Cardno","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1237s"},{"start_seconds":1244,"text":"Tron all sorts of people coming out and you know in the last year or two and of course how do we value those and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1244s"},{"start_seconds":1251,"text":"so again it's if we don't know how to value it then it's it's your guess is as good as mine it's undefined optimism and so how do we value a global","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1251s"},{"start_seconds":1260,"text":"infrastructure platform that the entire new Internet could run on like what if the existing Internet could actually capture value hell if I know","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1260s"},{"start_seconds":1268,"text":"and so you know where do you start I don't know global GDP is about 80 trillion dollars some random study on the internet said internet drives six percent of u.s. GDP so maybe we're","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1268s"},{"start_seconds":1277,"text":"saying it's four trillion dollars that you could actually you could actually create and assign to to a global infrastructure platform and then you ask","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1277s"},{"start_seconds":1284,"text":"okay so what percentage of that could be captured and you can maybe maybe build a cash flow model based on that I don't know I don't think most people did that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1284s"},{"start_seconds":1292,"text":"much homework when they were when they were just buying so of course we get we get more to the present as I think we","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1292s"},{"start_seconds":1301,"text":"are all well aware so the ICO bubble was started because basically anyone can launch a coin on aetherium and that was one of the interesting features that I I","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1301s"},{"start_seconds":1309,"text":"think it took people time to figure out that they could do it too you know there were a few things that fed into it which I'll go into as well I","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1309s"},{"start_seconds":1316,"text":"cos I cos obviously at the end of last year just completely exploded and you know they they there's a lot you can say","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1316s"},{"start_seconds":1326,"text":"about ICS but one of the key things is that it's outside it was kind of outside of traditional capital accumulative formation methods and so it kind of gave","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1326s"},{"start_seconds":1335,"text":"people a shortcut - - raising a whole bunch of money so what do you think they did well here we go irrational exuberance it's time to raise a bunch of money one interesting","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1335s"},{"start_seconds":1343,"text":"bit on the chart on the right is that it I say those aren't actually completely dead it's closed it's closed in the US and I think there might be sneaking in","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1343s"},{"start_seconds":1352,"text":"some data from from public private offerings but they're not completely dead yet they're just getting awfully close and so what fed the ico boom you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1352s"},{"start_seconds":1362,"text":"know again how do you value an i CEO how do you capture value and I think one of the more influential theses was was put out by Union Square Ventures Joel","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1362s"},{"start_seconds":1370,"text":"Montenegro in 2016 and basically the idea was well maybe we just flipped the paradigm we say the applications that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1370s"},{"start_seconds":1378,"text":"are built on the internet capture about 90% of the value you know the Google's the Facebook's on top of the internet captured the vast lion's share of value","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1378s"},{"start_seconds":1386,"text":"and the protocol is underneath that they sort of the guts and the pipes capture a very small piece of it well so what if we flip that and and say well I mean the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1386s"},{"start_seconds":1393,"text":"whole point of the blockchain is that you're storing the data on the chain and you're storing the majority of everything on the chain and the apps themselves are only designed to be thin","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1393s"},{"start_seconds":1401,"text":"thin skins on top of it so really the protocol is the thing that's capturing all that value so you know the new web is not about apps","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1401s"},{"start_seconds":1409,"text":"it's about protocols and so once you say that all the value gets captured in protocols we don't really know what that looks like but that gives us an awfully","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1409s"},{"start_seconds":1416,"text":"good justification to buy and so again you know valuation models always tie into these narratives and it always helps drive some of the speculation and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1416s"},{"start_seconds":1423,"text":"you can never pin anything down to a specific model but I think it's very instructive to say and I think that you'll probably get majority agreement that that was one of the most","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1423s"},{"start_seconds":1432,"text":"influential models that people were using when justifying some of the irrational exuberance they were using around what was effectively internet","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1432s"},{"start_seconds":1438,"text":"bubble 2.0 for basically the same reasons and so of course this year the ICO bubble is completely imploded the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1438s"},{"start_seconds":1447,"text":"icos were built on top of aetherium which which actually helped the theory em a lot because of course you know that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1447s"},{"start_seconds":1453,"text":"your aetherium was creating tokens on top of it that were then in theory all of the transactions from those tokens","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1453s"},{"start_seconds":1460,"text":"could could sort of trickle down into aetherium as well and so people were I mean there are a lot of really crazy crazy justifications for what was going","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1460s"},{"start_seconds":1468,"text":"on but aetherium was sort of one of the nerves was definitely that aetherium would capture most of the value of the sum of all the tokens that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1468s"},{"start_seconds":1475,"text":"are that are built on top of it so of course with hiriam goes to the moon as well the problem is you know I SEOs actually weren't weren't that good I","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1475s"},{"start_seconds":1482,"text":"mean the tokens that were created on top of a theory and we're almost entirely worthless you know show me a token and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1482s"},{"start_seconds":1489,"text":"I'll show you a coin and so I mean a lot of these tokens also had it as with any irrationally exuberant market","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1489s"},{"start_seconds":1497,"text":"you had too much money moving too quickly with not enough oversight so of course we had scams we had we had sort of soft scams which are you know teams","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1497s"},{"start_seconds":1505,"text":"that kind of know that they aren't really gonna do anything but they're gonna make it look like they're doing things you had genuinely genuinely intelligent people who thought they were doing good things who thought that their","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1505s"},{"start_seconds":1514,"text":"token was important but didn't really think it through and honestly most of the coins actually had no value capture and if you have no value capture then","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1514s"},{"start_seconds":1521,"text":"your token is actually worthless I'd be happy to talk about the details of that because I've been down that road after","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1521s"},{"start_seconds":1528,"text":"this if you guys want to dive into it but one of the one of the narratives of over the last call it six months was that the big path down and why we keep","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1528s"},{"start_seconds":1537,"text":"continuing to go down was this idea that a lot of the ICO is actually raised in aetherium in ether and so you know they were getting people who would become","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1537s"},{"start_seconds":1544,"text":"rich on the way up were invested we're reinvesting there they're either in icos who then had these big Treasuries filled with either and who were also riding it","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1544s"},{"start_seconds":1552,"text":"up but then when it started going down they said oh crap we raised twenty million dollars but now it's only fifteen million dollars and what happens if it goes to ten million dollars so they start selling and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1552s"},{"start_seconds":1561,"text":"there's this narrative that you know it's this snowball effect that suddenly all the ico is that prop this whole market up start selling and dumping it back down and you know there there are a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1561s"},{"start_seconds":1569,"text":"number of perspectives on either side you know you can find blog posts out there that are sort of debunking the facts of that but you know again let's less about facts and more about","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1569s"},{"start_seconds":1577,"text":"narratives I think that was a pretty that's been a pretty dominant narrative over the last call it six months and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1577s"},{"start_seconds":1584,"text":"then here we are in the bear market it is a I mean a depression I don't know what you want to call it but but there","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1584s"},{"start_seconds":1593,"text":"are advantages to it and I think also one of the major triggers here has also been the sec and in the regulatory landscape which this is something that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1593s"},{"start_seconds":1602,"text":"you can't ignore in this space I mean we did our best to ignore it as a space by sticking our heads in the sand and saying well if we don't call it a security it's not a security and the SEC","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1602s"},{"start_seconds":1611,"text":"doesn't really like that it turns out if it looks like a security and it smells like a security it might be a security and they actually have a lot of interest","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1611s"},{"start_seconds":1618,"text":"in that and so one of the more recent updates has been specifically from November so the SEC began prosecuting some of the scams that were out there","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1618s"},{"start_seconds":1626,"text":"some of the obvious scams but they've also begun prosecuting securities violations which is which is different criminal violations are obviously something that you know should should be","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1626s"},{"start_seconds":1635,"text":"prosecuted and everyone kind of gets that and they knew that was going to happen but once but kind of everyone was waiting to see what what they would do","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1635s"},{"start_seconds":1642,"text":"with regards to the unregister of selling unregistered securities which is kind of the whole problem with icos is if your token is a security and you've","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1642s"},{"start_seconds":1650,"text":"sold it and not registered you've like that that doesn't work with the SEC that's the whole point of the SEC is that you need to register these kinds of things so now we now we've crossed over","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1650s"},{"start_seconds":1659,"text":"the SEC has made it clear that they're going to start taking a look at these as unregistered securities and they're going to begin taking action against founders and companies who have done","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1659s"},{"start_seconds":1667,"text":"that the fines haven't been massive generally it's been sort of a return the money and and and take a fine and we'll move on especially if you've been sort","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1667s"},{"start_seconds":1675,"text":"of operating cooperating you know in good faith and everything like that but that has an awfully chilling effect when you know you might have already raised a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1675s"},{"start_seconds":1682,"text":"whole bunch of money and then the bear market hit and now you don't have as much money and now the SEC is gonna tell you to return all the money that you originally raised to your investors and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1682s"},{"start_seconds":1691,"text":"you know that you're sitting on a bankrupt company and it's just waiting for the other shoe to drop that's not great for a market so one other thing on","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1691s"},{"start_seconds":1699,"text":"regulatory clarity so so again we it's been one of the big one of the big chilling factors overall for the whole thing and and so a lot of what happened","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1699s"},{"start_seconds":1708,"text":"in the ico space I think was people taking a step forward sort of swallowing the risk that they knew they were taking on the regulatory side and now now now","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1708s"},{"start_seconds":1715,"text":"those I don't know what you call those those hens are coming to roost I don't know I remember what the expression is but and some of the key ones were who is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1715s"},{"start_seconds":1724,"text":"actually supposed to regulate this stuff and this is going to be a us-centric view but the u.s. tends to take a very global regulatory perspective they tend","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1724s"},{"start_seconds":1732,"text":"not to be too shy about about stepping outside of the boundaries of the country so it has a major and so the real question was who is gonna regulate it and are they gonna","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1732s"},{"start_seconds":1740,"text":"regulate it and how and so there are three three main entities that tend to be a part of this the SEC they deal with new new securities issuance the CFTC","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1740s"},{"start_seconds":1749,"text":"deals with commodities that are already out and the CFPB tends to do the Consumer Financial Protection Bureau tends to deal with money transfers and things like that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1749s"},{"start_seconds":1757,"text":"and so a lot of the question was okay so who is gonna regulate this stuff and and what what did what are their models going to be and how can we conform to those models because we still like you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1757s"},{"start_seconds":1766,"text":"know there is there are still reasons why we want to have tokens and and you know we have to be able to have tokens if we're gonna drive this forward but you know that's very difficult if you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1766s"},{"start_seconds":1774,"text":"don't know what the you know that if three agencies are all gonna come at you for different reasons that make it physically impossible for you to have a token so there was a little ray of light","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1774s"},{"start_seconds":1781,"text":"actually which was which was quite nice from the the head of the CFTC who of course it's his job to to register","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1781s"},{"start_seconds":1788,"text":"commodities so I mean you'll sort of you can take this with a bit of a grain of salt but he did he did essentially say that you could transform from a security so it's sort of when it's when it's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1788s"},{"start_seconds":1797,"text":"offered it's a security but then your network could actually be achieve a certain level of decentralization and utility where it actually becomes a commodity not as security anymore and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1797s"},{"start_seconds":1805,"text":"you know where do we take that where does that go you know there are a lot of a lot of questions that that that raises but at least we're moving towards okay","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1805s"},{"start_seconds":1813,"text":"so maybe so maybe a theory 'm was a security when it came out but we're not gonna worry too much about that because now it's not a security so at least we","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1813s"},{"start_seconds":1821,"text":"can like at least we can trade a theory ether while assuming that the SEC is not going to get interested in us at least","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1821s"},{"start_seconds":1828,"text":"we can trade either and say well you know it might fall under the CFTC but you know they you know at least we're","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1828s"},{"start_seconds":1836,"text":"sort of narrowing the scope of the people who are gonna you know hang the sort of Damocles over our head all right","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1836s"},{"start_seconds":1843,"text":"other raise of hopes so that was a bit of a downer on the end right cuz here we are in the middle of the bear market and by the way I don't know where that image","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1843s"},{"start_seconds":1851,"text":"came from but I absolutely love it it's a little Amazon box so you know we do have governments that have been trying","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1851s"},{"start_seconds":1859,"text":"to take steps forward you know we have governments in Switzerland and Britain you know it's Switzerland in particular I think has been doing a lot of sandbox","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1859s"},{"start_seconds":1868,"text":"saying although they've been a little back-and-forth you know you have experiments occurring in Singapore a lot of them in Europe especially Scandinavia","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1868s"},{"start_seconds":1876,"text":"you know you've also got things where banking banking takes forever you know super risk-averse but they're beginning to take steps forward you have a lot of institutional capital that's that's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1876s"},{"start_seconds":1884,"text":"beginning to take slow steps forward and again these are multi-year trends and everybody's super impatient we're all moving seven times as fast as we should but the trends are actually moving to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1884s"},{"start_seconds":1893,"text":"the two forward such that you know some of these factors are going to play out over the next few years I'm you know you also Enterprise custody has been a big","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1893s"},{"start_seconds":1901,"text":"issue that was one I think over the summer and and in the spring that was really hot for a lot of people was you know we as an enterprise it'd be great if we could trade Bitcoin but we don't","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1901s"},{"start_seconds":1909,"text":"even know how where to store it you know things like that you know it's like literally like the guts of the financial system aren't even built yet but we're getting there and hopefully hopefully","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1909s"},{"start_seconds":1917,"text":"we're in it we've you know cut out the scammers and we can actually get the building so another point of context","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1917s"},{"start_seconds":1924,"text":"that that's useful is the the Gartner hype cycle I don't know if you guys are familiar with this chart but basically you innovation kicks off irrational","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1924s"},{"start_seconds":1934,"text":"exuberance we don't know what the hell is going on it's a peak it all kind of comes crashing down and everybody thinks it's over and that's when the real work begins and you begin to sort of create","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1934s"},{"start_seconds":1943,"text":"productivity I mean you can look at the internet internet one followed the same the same thing and you know it depends where you want to start in crypto you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1943s"},{"start_seconds":1951,"text":"have to be a little bit careful which is why again it's useful to look back at historical narratives because every time Bitcoin has crashed they've sort of gone back and pointed at the chart and said","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1951s"},{"start_seconds":1959,"text":"well hey we're like about to we're about to get back up on the plateau so you have to be a little bit careful about which narratives you you choose to use","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1959s"},{"start_seconds":1967,"text":"but on some level this is this has played out before so as far as use cases this is fun stuff why the hell are we","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1967s"},{"start_seconds":1976,"text":"gonna use this that's a very unhappy looking cat if you can't see that so so","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1976s"},{"start_seconds":1986,"text":"I think there are basically two theses about where adoptions actually going to come from so one of them is is I'll call","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1986s"},{"start_seconds":1993,"text":"the killer app thesis which is basically as long as there's one app that that breaks out you know that's this the Facebook of the new platform or you know","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=1993s"},{"start_seconds":2001,"text":"if you're looking at peer-to-peer that that's the BitTorrent of your the Napster of the platform that that's going to show everyone else what you can","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2001s"},{"start_seconds":2009,"text":"build and then suddenly that's going to lead the charge and everyone else is going to figure out how to iterate off of that and spread laterally and then you have innovation and then you have","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2009s"},{"start_seconds":2016,"text":"success in a funny way we actually kind of already have a killer app which is which is Bitcoin which is I mean it's been chugging along for 10 years now you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2016s"},{"start_seconds":2024,"text":"know so that's one thing there there's also again Union Square Ventures they've been pretty on point with a lot of their","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2024s"},{"start_seconds":2031,"text":"stuff you know the fad protocol thesis I think was definitely missing some some legs but in general they've been on this trend for a long time so a lot of their","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2031s"},{"start_seconds":2039,"text":"research is really worth following if you're in the space and they kind of partially rebut the killer app thesis which is actually where this chart comes","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2039s"},{"start_seconds":2046,"text":"from and they were talking about the myth of the infrastructure phase because one of the other narratives has of course been well all we have to do is put our heads down build build a ton of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2046s"},{"start_seconds":2054,"text":"infrastructure and then it'll and then once we have the infrastructure once we have the pipes they'll all build it up on top that's not really how innovations","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2054s"},{"start_seconds":2063,"text":"typically worked typically there their whole argument is that is that typically an app will push things beyond where the infrastructure is capable of going","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2063s"},{"start_seconds":2071,"text":"they'll have to you know duct tape a bunch of stuff together but the fact that they have a good business is what drives them all the way forward and then the infrastructure sort of catches up","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2071s"},{"start_seconds":2079,"text":"and then the next app you know pushes forward and drives it further than it should go and then the infrastructure catches up so so it's a pretty strong","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2079s"},{"start_seconds":2086,"text":"rebuttal of the idea that you know if we just build out all this infrastructure they're gonna come so the second one is is what I call the hidden blockchain","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2086s"},{"start_seconds":2093,"text":"thesis so the idea is is will only have success when you can't actually see it so so you know when when even the developer might not even know that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2093s"},{"start_seconds":2102,"text":"they're building on a blockchain or you know it's it's sort of abstracted to the degree that the developer has a business","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2102s"},{"start_seconds":2109,"text":"need and so they choose X as opposed to Y and X happens to be a blockchain and nobody actually cares you know so that's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2109s"},{"start_seconds":2116,"text":"that's success really means when we don't know we're using blockchain then maybe that's where success is and I think these are - sometimes there's some","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2116s"},{"start_seconds":2123,"text":"overlap sometimes there's not killer app is a lot sexier than then hidden blockchain but they're both they're both","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2123s"},{"start_seconds":2131,"text":"well we're thinking about in considering so another one of our you favorite charts from from back in the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2131s"},{"start_seconds":2138,"text":"day is of course like what did the internet look like in 1993 and just to give you a sense we're looking at the web servers you know we're running on","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2138s"},{"start_seconds":2145,"text":"sun servers and mac and windows we were using Internet traffic through FTP and telnet and Usenet you know so so even","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2145s"},{"start_seconds":2154,"text":"though that was early stages of the internet it basically it just it wasn't clear right I think we can all agree that you just never know from day one","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2154s"},{"start_seconds":2162,"text":"another really good model from from Benedict Evans if you haven't seen this talk I think it's ten year future this is the name of the talk he gives a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2162s"},{"start_seconds":2171,"text":"really great description of the s-curves of innovation and basically the idea is that every every new technology roughly","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2171s"},{"start_seconds":2178,"text":"follows every every one of these macro technological waves roughly follows it's kind of this this let's call it a four-step path we're sort of you kind of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2178s"},{"start_seconds":2186,"text":"you're in this product you start out in the prototyping phase where people don't really know what it's gonna be used for your kind of testing you're you're you're trying it sort of just","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2186s"},{"start_seconds":2193,"text":"technological hacking and then you move into the second phase which is the early adoption phase which is that we we have the technology but we really have no idea what to do with it or on the flip","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2193s"},{"start_seconds":2202,"text":"side we have a market but we have no idea what the technology's gonna do to bridge that the third phase is where you actually move into the exponential growth you have product market fit and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2202s"},{"start_seconds":2210,"text":"then the fourth phase is mature adoption which actually one of his good points is that everybody everybody in the tech community jumps off after exponential","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2210s"},{"start_seconds":2218,"text":"growth when the real value the meet of the value is actually created in in the mature adoption phase for our purposes what's kind of interesting about this is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2218s"},{"start_seconds":2226,"text":"so you know the way he talks about it again the talk is totally worth worth checking out as you know PPC's were one of these","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2226s"},{"start_seconds":2233,"text":"curves and then mobile kind of comes in behind it and then maybe what comes after that but but another one is that is that when you're in the early phase","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2233s"},{"start_seconds":2241,"text":"everybody tries to just reflect the existing world in the new world so so so they basically say like what did we think we were gonna use mobile apps for","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2241s"},{"start_seconds":2249,"text":"when they first came out I mean we had like stock stock checkers and and and like the weather app and things like that and and and you know there was no","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2249s"},{"start_seconds":2258,"text":"imagination and then today of course we're calling you burrs on it right and like you you you can't imagine what the Delta is between these two things and so","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2258s"},{"start_seconds":2266,"text":"the whole point is that you know step one when we're just inching there and we're just getting the ball rolling like the only the only way that we can express ourselves is is by sort","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2266s"},{"start_seconds":2275,"text":"of reflecting what we already know in the new technological paradigm and that's really where we are in the blockchain space we don't even know what what could be created and and again like","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2275s"},{"start_seconds":2283,"text":"can we can we cross that gap are we on an s-curve or are we on a just nothing the speed bump","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2283s"},{"start_seconds":2291,"text":"so use cases all right so so every use case basically I there kind of three major sets of use cases so currencies","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2291s"},{"start_seconds":2298,"text":"are one finance is another and and web three is another so you could probably arbitrarily group things slightly","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2298s"},{"start_seconds":2306,"text":"differently but but I think this is a useful frame for looking at this so currency is relatively straightforward you can look at the definition of a currency are things a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2306s"},{"start_seconds":2315,"text":"unit of account you know basically do you do if you were submitting your books you know your accounting books would you quote it in dollars or would you quote","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2315s"},{"start_seconds":2322,"text":"it in bitcoins you know if you're buying something do you quote it in dollars or bitcoins medium of exchange you know are you are you actually exchanging it for","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2322s"},{"start_seconds":2329,"text":"goods and services and store of value is you know does it actually hold value are people putting it under their mattresses things like that a lot of the currencies","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2329s"},{"start_seconds":2336,"text":"are actually kind of hitting some of these currency like aspects and again one of the cool things or one of the interesting things was is it a currency","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2336s"},{"start_seconds":2344,"text":"or is it not it is aetherium is ether a currency or is it not if it's a currency it means something different than if it's just the utility platform if it's a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2344s"},{"start_seconds":2353,"text":"currency it has a 90 trillion dollar total addressable market potentially if it's not then we don't anyways it's a worthwhile thing to take a look at I","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2353s"},{"start_seconds":2361,"text":"think currencies are currently the killer use case but in a way less interesting because of that so finance finances the other is financing in the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2361s"},{"start_seconds":2370,"text":"development stack I think are sort of parallel but we're thinking about separately they rely on a lot of the same things so basically the idea is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2370s"},{"start_seconds":2378,"text":"well guess what everybody says oh whoa wait we can rebuild the whole financial system over here in and you know it's sort of off to the side and and disintermediate the entire existing","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2378s"},{"start_seconds":2386,"text":"financial system and so some of it is is doing exactly that with existing use cases like settlements and cross-border transactions and things like that and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2386s"},{"start_seconds":2395,"text":"some of its more actually sort of self-serving in the crypto ecosystem which is you know in order to trade crypto we must have the infrastructure","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2395s"},{"start_seconds":2402,"text":"to trade crypto we must have the Financial Services to support that like lending and and trading on margin and derivatives and all sorts of things that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2402s"},{"start_seconds":2409,"text":"sort of represent like today's financial system but just in our little crypto world so so today services are one of the biggest use cases it's the picks and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2409s"},{"start_seconds":2418,"text":"shovels right you know you have coinbase the exchange the exchanges are some of the most profitable companies in the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2418s"},{"start_seconds":2425,"text":"world in in crypto and you know that's that's basically what they're doing you know you have exchanges you have hardware companies and services companies they're the ones who make the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2425s"},{"start_seconds":2433,"text":"money here in this gold rush and you know we still need banking services so lending is another big one so financial systems run on lending","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2433s"},{"start_seconds":2442,"text":"lending actually informs a lot of things credit and lending and you know because so many things are built on top of the fundamental nugget of understanding what your interest rate is what your","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2442s"},{"start_seconds":2450,"text":"opportunity cost is and and so once we have the ability to lend that that gives us a lot a set of tools that we can build kind of the rest of this whole","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2450s"},{"start_seconds":2458,"text":"finance stack on top of so you know that's that's another use case that that's in the financial side in the finance stack and people are working on","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2458s"},{"start_seconds":2467,"text":"it and we're kind of still playing with it and innovating so another one is tokenizing assets so you know hey let's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2467s"},{"start_seconds":2474,"text":"put your house on the blockchain right and well I won't go into there I won't go too deep into it but but I will say","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2474s"},{"start_seconds":2482,"text":"you know it does in theory it has the advantages of providing liquidity for illiquid assets and you know you can democratize the trading of those assets","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2482s"},{"start_seconds":2490,"text":"by you know because so you don't have to in the very beginning I was talking about how assets have been pooled together and and aggregated and sold off","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2490s"},{"start_seconds":2498,"text":"you know what if you could sort of chop that up into little tiny pieces and take little pieces of those it's an interesting theory has a lot of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2498s"},{"start_seconds":2506,"text":"challenges so another one another piece of the finance stack is to stable coins and so you hear a lot about stable coins they've they've gotten sexier over the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2506s"},{"start_seconds":2513,"text":"last year or so and the idea is that you need you need something stable in the crypto ecosystem as to operate as well","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2513s"},{"start_seconds":2520,"text":"as as a store of value as a medium of exchange and as a unit of account really the unit of account may be less important because it's if it's pegged to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2520s"},{"start_seconds":2529,"text":"the dollar you might as well use the dollar but the idea is is is you know there are multiple types of stable coins and they all have problems it's a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2529s"},{"start_seconds":2536,"text":"very difficult problem to solve and I won't go to the details here you can look into it but it just kind of want to highlight that as again like a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2536s"},{"start_seconds":2543,"text":"fundamental nugget in our in our finance stack that needs to be figured out so what actually are the sort of the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2543s"},{"start_seconds":2550,"text":"fundamental primitives that we actually have now that we didn't have before in in in the blockchain world so I think two of the big ones are accounts and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2550s"},{"start_seconds":2558,"text":"payments so accounts are something that they are actually native to to the blockchain world and it means that you don't have to own the account the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2558s"},{"start_seconds":2566,"text":"account natively lives on the blockchain and so suddenly you don't you're separated from this idea of the account accounts can be almost an autonomous","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2566s"},{"start_seconds":2574,"text":"thing even programs can actually have their own accounts cars can have their own accounts refrigerators gonna have their own accounts and suddenly it sort","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2574s"},{"start_seconds":2583,"text":"of it frees this world where anyone has actually autonomy over their money and then on the on the payment side now we also have the ability to rapidly and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2583s"},{"start_seconds":2591,"text":"immediately settle payments we have and that also with lower cost structures gives us the ability to do micro payments and when you combine those two things you have some interesting new","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2591s"},{"start_seconds":2599,"text":"worlds where for instance like Internet of Things devices can have their own wallets and can do their own transactions completely autonomously from you and you can even imagine a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2599s"},{"start_seconds":2608,"text":"world where there are autonomous vehicles that are owned by some fleet that kind of have their own accounts that sort of take care of their things","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2608s"},{"start_seconds":2615,"text":"and come back and and you know it's maybe maybe that's just maybe that's just still on that early phase where we're trying to reflect today's world in the new one but but it's kind of cool to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2615s"},{"start_seconds":2623,"text":"have these these new primitives and we'll talk about primitives as well in the web 3 so the future well obviously I cos have really have really been kind of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2623s"},{"start_seconds":2632,"text":"a stubbed toe for everyone we definitely need a lot more institutional tools and we need more of sort of those fundamental finance nuggets which are","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2632s"},{"start_seconds":2641,"text":"still you know lending credits you know obviously asset tokenization has it has plenty of stuff there too but but","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2641s"},{"start_seconds":2649,"text":"there's a pretty cool future there so people are obviously going to keep working on this regardless of what the price is right now so the one that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2649s"},{"start_seconds":2656,"text":"personally I I'm most interested in is is is the web 3 side and I think a lot of the the noise are on the smart contract platforms is also obviously","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2656s"},{"start_seconds":2664,"text":"around web 3 and so the idea here is that you ridi centralize the web you know that's kind of a fun narrative","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2664s"},{"start_seconds":2672,"text":"because obviously was meant to be decentralized from the beginning something something something you know I won't get too invested in the soapbox there but what's what's kind of cool","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2672s"},{"start_seconds":2679,"text":"about you know basically you're sort of crossing this hybrid of you know sort of the Amazon Web Services that runs the web with the unkillable 'ti of Bitcoin","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2679s"},{"start_seconds":2688,"text":"and then you have this decentralized web which can do some really cool stuff like you know your app is no longer sensible because once it's launched it's it's out","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2688s"},{"start_seconds":2696,"text":"there you can't even change it it's also transparent because the code the code is open source if it's not open source it's open to someone because they're running","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2696s"},{"start_seconds":2704,"text":"it it's at least open binary and you can reverse engineer things so it's kind of pointless not to open source and and it's also for Keable so for instance","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2704s"},{"start_seconds":2712,"text":"this is actually a pro and a con because one of the one of the challenges is is that how do you create a business model that allows you to actually extract real","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2712s"},{"start_seconds":2721,"text":"economic value from from an app that you've created if somebody can just copy it remove your ability to take money out of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2721s"},{"start_seconds":2727,"text":"it and redeploy it so there are kind of three things that this gives you back","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2727s"},{"start_seconds":2735,"text":"which is what which is kind of what's exciting about it is it gives you back control over your money it gives you back control over your data and it gives you back control over your identity and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2735s"},{"start_seconds":2744,"text":"that again thinking back to those original macro forces you know that's kind of the whole point or not the whole point necessarily of the technology but","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2744s"},{"start_seconds":2752,"text":"kind of the reason why so many people are excited about this one of key challenges is do users really want this and again I'll keep I'll keep banging that drum because I don't want to be I","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2752s"},{"start_seconds":2760,"text":"am personally a skeptic and and I want to I want to be careful about presenting a one-sided narrative when in fact it is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2760s"},{"start_seconds":2767,"text":"very definitely a two-sided narrative but so talking about primitives you know we're talking about finance primitives you know you got you got accounts and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2767s"},{"start_seconds":2775,"text":"you get transactions so primitives that we have now on the web side or we have portability right so you can you can if you if you have an asset that comes out","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2775s"},{"start_seconds":2784,"text":"of a game a video game you can now take it like you own it and you can take it and you can walk away with it you can drop it into another game I mean that's kind of a silly toy example but it gives","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2784s"},{"start_seconds":2792,"text":"you a sense of what portability means and you don't need permission so cryptographic primitives are actually quite significant you know you can","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2792s"},{"start_seconds":2799,"text":"verify almost anything because you have so much easy access to the crypto rafi that underlies the blockchain you can say did something happen does somebody have something is this mine was","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2799s"},{"start_seconds":2808,"text":"this my transaction did I did you know did this company post this thing at this time and that actually creates a lot of value away in the world that demands","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2808s"},{"start_seconds":2816,"text":"transparency again accounts accounts specifically on this web mean that you have an account that that can actually hold your identity so your identity is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2816s"},{"start_seconds":2824,"text":"also identity is also kind of a native thing because it's tied to the account and then finally peer-to-peer sort of the ability to permissionless lis interact so again you don't need","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2824s"},{"start_seconds":2833,"text":"permission again I'll use the silly example of like I have a sword from a game I don't need the permission of the game creator to give you that sword you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2833s"},{"start_seconds":2840,"text":"know you you you and I can transact over here the central entity has no idea what's going on and that's that's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2840s"},{"start_seconds":2846,"text":"actually very powerful but currently what have we applied that for what do","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2846s"},{"start_seconds":2853,"text":"you expect I don't think we've gotten porn on there but not for lack of trying it's gambling exchanges in gaming and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2853s"},{"start_seconds":2861,"text":"you know not that many users at that there also other other interesting use cases I'm not gonna dive too deep into","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2861s"},{"start_seconds":2868,"text":"them but I also don't want to make it seem like all we're trying to do is rebuild apps you know it's it's there's a lot of other stuff that takes place on","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2868s"},{"start_seconds":2876,"text":"the web stack right you just a few examples live pier is a company that they do sort of crowdsource a video transcoding you know you've you've got","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2876s"},{"start_seconds":2883,"text":"distributed commodity computing so for people who need to do machine learning across large numbers of computers and you have some spare capacity in your iPhone you know in theory you could you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2883s"},{"start_seconds":2891,"text":"could you could distribute that over a wide network you know you also have file storage you know again you have spare space in your hard drive you know it's kind of it's almost like it's almost","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2891s"},{"start_seconds":2899,"text":"like the the digital extension of the sharing economy right where you're kind of sharing your digital assets as well and so there's there's a lot of cool stuff that you can do with those ideas","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2899s"},{"start_seconds":2907,"text":"that you know we're still surfacing so just want to quickly mention since this is an overview obviously not even all","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2907s"},{"start_seconds":2916,"text":"changed it the same and you know there are public blockchains there are private blockchains and you know public chains are like aetherium everybody can see everything","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2916s"},{"start_seconds":2923,"text":"that's going on on the chain public doesn't necessarily mean not private and what I want to say public doesn't mean","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2923s"},{"start_seconds":2931,"text":"that your data is exposed completely because you can still use cryptography to encrypt it but the question the sort of unanswered","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2931s"},{"start_seconds":2938,"text":"question is is that sufficient is that sufficient to say my data is unavailable to anyone or is it only saying my date is unavailable to anyone for the next","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2938s"},{"start_seconds":2946,"text":"eight and a half years until they figure out how to break that encryption so open questions their private chains private chains are kind of the enterprise solution where of course enterprises","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2946s"},{"start_seconds":2955,"text":"want to control their data they don't even want to take those risks so they say hey why don't you take a blockchain and you just run all the notes on this blockchain yourselves and you can do the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2955s"},{"start_seconds":2963,"text":"same thing with a consortium of companies that are collaborating so I could dive a little bit more in the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2963s"},{"start_seconds":2971,"text":"private chains as well it's kind of like why would you use the blockchain but all that IBM answer that for their many many","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2971s"},{"start_seconds":2978,"text":"clients right so whoa what are the challenges that we have specifically I want to focus on the DAP side just because again that's that's kind of my","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2978s"},{"start_seconds":2986,"text":"ax to grind and it's also cool so so these problems are really designed to be","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2986s"},{"start_seconds":2994,"text":"your opportunities right so one of the points of this is is to this the surface ways that we need help and so I think I think you probably in seen a lot of them","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=2994s"},{"start_seconds":3001,"text":"implicitly one of the ones that we have right here is that user experience socks on all levels of this of the of the user's journey from what does it take to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3001s"},{"start_seconds":3010,"text":"actually enter the crypto ecosystem what it like how many steps does it take for me to actually go and buy crypto currency and then and then come in and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3010s"},{"start_seconds":3018,"text":"figure out how the hell do I use this to interact with an app that's asking me to use this and you know it mean it means that I have to do a bunch of things it also means I have to know a bunch of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3018s"},{"start_seconds":3026,"text":"things it means I have to look at Windows that are telling me with like big bold font like I can't lose my private key and I'm like what the hell is a private key you know what is a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3026s"},{"start_seconds":3033,"text":"wallet why do I have to learn all these things just to use something and so this is why you have a 97 percent drop off for from from you know first user trying","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3033s"},{"start_seconds":3042,"text":"something to actually completing it and then you know you have you know the stories like you know that there are no protections for things like I forgot my my","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3042s"},{"start_seconds":3050,"text":"I forgot my private key and I lost X amount of Bitcoin which is a not uncommon thing the other side is that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3050s"},{"start_seconds":3058,"text":"developer experience also sucks and we're actually going to do we're talking about this next week and our meetup and doing a deep dive on developer","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3058s"},{"start_seconds":3065,"text":"experience but developers are building this whole ecosystem right I'm not maybe not the entire thing","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3065s"},{"start_seconds":3072,"text":"but they're pretty important component of all this right and their experience is also terrible we had our whole team go out to the etherium hackathon and try","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3072s"},{"start_seconds":3079,"text":"out the the etherium tools and you know it was very clear the tools are all made by completely different people it requires you to you know the there's not","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3079s"},{"start_seconds":3088,"text":"a lot of education there's not a lot of support when you have errors it's it you know it's some things are up on Stack Overflow but that's from the wrong version you know it's basically it's a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3088s"},{"start_seconds":3096,"text":"Wild West out there trying to figure out how do you cobble all this crap together and actually build something with it and so if you if you were to sort of survey developers of you know like what is the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3096s"},{"start_seconds":3104,"text":"time between first clicking on the website and then having a deployed project it would be atrociously long and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3104s"},{"start_seconds":3109,"text":"complicated so obviously we I think we've all heard of the scaling problem","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3109s"},{"start_seconds":3116,"text":"and you know the the the key example is what happened when crypto kitties went went crazy last year at the end of last year I mean a bunch of people decided","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3116s"},{"start_seconds":3124,"text":"that that was gonna be the hot new app and it was gonna break out and it was gonna you know that was the killer app we finally found it well the problem is when a bunch of people started using it","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3124s"},{"start_seconds":3132,"text":"on a trend on a network they can only handle 14 transactions a second the network comes up and then congestion comes in and then you know I'll talk","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3132s"},{"start_seconds":3139,"text":"about cost in a second but costs cost to go through the roof so this is a chart of pending transactions so this means that that these are the number of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3139s"},{"start_seconds":3146,"text":"transactions that are waiting their turn to get put in a block and they they went from you know plus or minus call it 500 or you know several hundred up to the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3146s"},{"start_seconds":3154,"text":"almost 20,000 over the course of what was going on there and of course that's a terrible experience because if you think that you know imagine trying to use this for paying for something and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3154s"},{"start_seconds":3163,"text":"you're standing there with your buddy and you're just tapping your foot and you're waiting for your transaction to go through for who knows how long it takes to go through 20,000 transactions","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3163s"},{"start_seconds":3171,"text":"not a good experience so there's a there's a new wave of platforms coming out and and that have come out that have","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3171s"},{"start_seconds":3178,"text":"made a lot of promises but this is still very top of mind because this was a visceral experience for the whole community because not only was crypto","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3178s"},{"start_seconds":3186,"text":"kitty slow but everybody else was slow because it's like a shared hosting problem so so on the solution side we","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3186s"},{"start_seconds":3193,"text":"this is another path where where there have been multiple narratives the first one was it doesn't matter if Bitcoin scales like we'll figure it out we're developers we've got this and it turns","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3193s"},{"start_seconds":3202,"text":"out that the Bitcoin core developed team doesn't really want to move too fast they don't really want to break too much and they don't really have a lot of incentive to I mean bitcoin is designed","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3202s"},{"start_seconds":3210,"text":"to do one thing very very well and it does that thing very very well they don't need to necessarily go out of their way to break what works well in","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3210s"},{"start_seconds":3217,"text":"order to figure out how to scale it so what they what they said was all right we'll just push this we'll use Bitcoin on the bottom and we'll push this up to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3217s"},{"start_seconds":3225,"text":"layer two it's what they call it right and so what that means is we're gonna we're gonna do as much energy and computation and transactions off the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3225s"},{"start_seconds":3233,"text":"main chain and we're gonna come up with whether its side chains or we're gonna connect to people directly with state channels and we're gonna have them do all that stuff off chain and then when we're done with that we'll benchmark it","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3233s"},{"start_seconds":3242,"text":"back on the main chain stuff like that which actually sounds like a great idea except in practice that's been very complicated it's been hard to implement technologically and the user experience","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3242s"},{"start_seconds":3249,"text":"of trying to create that for your app hasn't been very good so there's there's been some disillusionment with layer 2 as well where we're starting to return","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3249s"},{"start_seconds":3257,"text":"back to this narrative of well actually maybe we should be scaling from layer 1 at the very bottom I mean so that's where there are kind of two two types of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3257s"},{"start_seconds":3264,"text":"approaches one is can we make layer 1 much faster by just having better hardware and and and essentially like that that becomes a centralizing force","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3264s"},{"start_seconds":3272,"text":"and so you know someone like iOS they've gone out and said well actually so maybe we don't need 15,000 or 150 thousand nodes why don't we just take 21 nodes","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3272s"},{"start_seconds":3281,"text":"and and make them really good and and so that's that's kind of been their approach on one side is sort of quasi recent realizing things and then on the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3281s"},{"start_seconds":3289,"text":"other side you have charting approaches which is something that we do it near and it's something that aetherium is trying to come out with and there are a few other players who are doing it as","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3289s"},{"start_seconds":3296,"text":"well which is much more of let's keep this as decentralized as possible and let's break it up into tiny pieces and use them all in parallel so that's another that that's kind of where where","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3296s"},{"start_seconds":3305,"text":"the arc is pushing right now obviously from our drivers seat we're somewhat biased as to where that should go but that should at least give you some context of like how we've tried to solve","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3305s"},{"start_seconds":3313,"text":"this problem and that it is definitely an unsolved problem as of today so the cost is the other problem which is of course you know if you're trying to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3313s"},{"start_seconds":3321,"text":"build a business on top of things and your costs are completely unknown and they've gone from they've gone from you know $0.10 all the way up to what do we","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3321s"},{"start_seconds":3331,"text":"how high they went well so on the Bitcoin side you you go from something like was it 50 cents all the way up to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3331s"},{"start_seconds":3338,"text":"260 dollars per transaction I mean like you can you can't have that kind of variability in your app right like how do you build a business on something that has that level of variability","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3338s"},{"start_seconds":3346,"text":"like in order to do that you have you're basically you're like a commodities business that you know like a copper miner that has to hedge the price of copper meaning you would have to sort of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3346s"},{"start_seconds":3354,"text":"figure out like a futures market to offset your risk it just doesn't make any sense right so we're just not there on the cost side if you want to if you want to create viable businesses you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3354s"},{"start_seconds":3362,"text":"have to understand what your reliability is gonna look like and what your costs are gonna look like and speaking of businesses I mean business models are another thing that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3362s"},{"start_seconds":3370,"text":"that are a serious problem meaning that that you know we thought I cos were the business model that was gonna work right because we finally said hey there's a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3370s"},{"start_seconds":3378,"text":"way for developers to actually make money at this stuff and it turns out well that didn't work out too well most of the coins were were just","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3378s"},{"start_seconds":3385,"text":"roadblocks in front of users that were attempting to extract rent or they just didn't they there wasn't really a lot of reason to have those tokens and so that","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3385s"},{"start_seconds":3394,"text":"whole system kind of went by the wayside and so what do we have now I mean most of most - I mean to be frankly honest most of the apps that are out there are","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3394s"},{"start_seconds":3402,"text":"being supported by venture capital that's been sort of invested in the system that hasn't yet found a viable business model other than on the financial side that picks and shovels","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3402s"},{"start_seconds":3410,"text":"businesses you know so so it's like there's kind of this this this this breathe in of capital that's coming in it's kind of supporting things you have","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3410s"},{"start_seconds":3418,"text":"ecosystem funds from a lot of these networks that are that are funding businesses and apps that are being created on their networks but until those have independent business models","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3418s"},{"start_seconds":3426,"text":"that allow those entrepreneurs to go out there and make their own money like this is not sustainable and and so and not only that but it's more difficult in this space to actually use some of our","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3426s"},{"start_seconds":3435,"text":"existing business models for instance how do you build a SAS app when you like I was saying before when when somebody could literally just just take your","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3435s"},{"start_seconds":3442,"text":"contract and fork out the way that you were Hart you're bringing money from that contract and your contract is your app right so if I mean it and how do you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3442s"},{"start_seconds":3451,"text":"do a monthly subscription if your costs look like this you know and and is that seven dollars a month how do you allocate that seven dollars a month you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3451s"},{"start_seconds":3458,"text":"know it's stuff like that we it's more difficult to do on this space so so these are some of the works that are there we're really trying to figure out right","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3458s"},{"start_seconds":3465,"text":"now because unless fundamentally like you can't build a business unless you give people a way to make money it just doesn't work so this is one of I think","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3465s"},{"start_seconds":3472,"text":"one of the under address problems that absolutely has to be addressed otherwise this whole thing is just gonna be it's just gonna be airs gonna go right out of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3472s"},{"start_seconds":3479,"text":"it when the capital dries up all right another one education so this this happens in all new markets but right now","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3479s"},{"start_seconds":3488,"text":"the incentives are out there if you're if you're a great developer and you know you're good at the stuff you build because there's still capital flowing into the system and and you're it's on","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3488s"},{"start_seconds":3496,"text":"the cutting edge and you're doing cool stuff you know and so that's that's just what happens in new markets is is people go out there and they build stuff and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3496s"},{"start_seconds":3503,"text":"and you know then then we sort of we get the next wave behind them are the people who are we're maybe not quite on the on the bleeding edge but they're they've","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3503s"},{"start_seconds":3511,"text":"got one foot there and then they're blogging about it and you've got you know Doc's that are being written kind of like not really that well curated and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3511s"},{"start_seconds":3518,"text":"like that's kind of the best institutional knowledge that we have right now and and then it's only when you get to step three which is when actually there there are jobs being","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3518s"},{"start_seconds":3526,"text":"created in the space that does that create the incentive for people to begin to educate you know for students to bother spending three months six months","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3526s"},{"start_seconds":3534,"text":"or whatever it takes to educate themselves up because they know that there's actually a return on that investment of their time and on the same time there's there there's an incentive","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3534s"},{"start_seconds":3541,"text":"to to teach there's an incentive to pay teachers because students are willing to pay them so there's a little bit of chicken-and-egg going on but the way that markets tend to develop is you have","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3541s"},{"start_seconds":3549,"text":"an education vacuum and this is definitely where we are now and of course this is part of the reason why we're here","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3549s"},{"start_seconds":3556,"text":"so one of those one of those one of those big sort of challenging problems","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3556s"},{"start_seconds":3564,"text":"psychologically when you have a bad day you wake up and you say well we're trying our Damus to give people control as much control as possible we're gonna","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3564s"},{"start_seconds":3572,"text":"give you your identity back we're gonna give you your data back we're gonna give you your money back it's gonna be the best and then you just go and drop it in","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3572s"},{"start_seconds":3579,"text":"the coin base and give them control and then be free centric we've read we've dear East we've Dee Reedy centralized the whip once again and","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3579s"},{"start_seconds":3588,"text":"that's that's a serious challenge and and I don't you know a lot of that comes down to a user experience challenge and so the you know circle back to the UX","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3588s"},{"start_seconds":3596,"text":"issues and the dev X issues but it's it's something that can be really disheartening and is also really challenging and we have to figure out how do we balance this how do we balance","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3596s"},{"start_seconds":3604,"text":"this this this natural human tendency to not want to think about stuff and to give it to other people with with you know the benefits of doing that which","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3604s"},{"start_seconds":3612,"text":"goes all the way back to what I was talking about which is you have to provide them with a clear incentive for them you know short term incentive for them to actually decentralize otherwise","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3612s"},{"start_seconds":3620,"text":"it's just not worth their time if they were thinking rationally and doing some sort of structured analysis maybe it would be but nobody does that these are","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3620s"},{"start_seconds":3629,"text":"humans so another one that's that that's definitely worth mentioning is is diversity and inclusion this is a space that isn't you know it's not terribly","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3629s"},{"start_seconds":3637,"text":"diverse and I'm not just talking about about skin right function is super important and you're always talking about this a little bit at the beginning but it's not about developers only it's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3637s"},{"start_seconds":3646,"text":"about an ecosystem a three-dimensional ecosystem and we're not doing a very good job right now of welcoming other people into this ecosystem welcoming their voices and also giving them an","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3646s"},{"start_seconds":3654,"text":"on-ramp that isn't about throwing a bunch of technical crap at them right from day one another one is also industry experience you know as with a lot of early tech","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3654s"},{"start_seconds":3662,"text":"industries do you have a lot of very young and inexperienced people who are great at coming up with creative solutions but aren't necessarily drawing on best practices that have been crafted","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3662s"},{"start_seconds":3670,"text":"through years of industry experience so that's one thing to be careful of and of course gender is always a tech problem and I think it's exacerbated in in in","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3670s"},{"start_seconds":3679,"text":"box chains specifically but at least there's geographical diversity so just a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3679s"},{"start_seconds":3687,"text":"quick bit on on where does that go from here so all you have to do is fix all","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3687s"},{"start_seconds":3692,"text":"the problems so user experience and developer experience that's you know there there are a lot of people in the","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3692s"},{"start_seconds":3700,"text":"product world in the design world who who are perfect fits for starting to figure these problems out you know we have to build out the ecosystem so you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3700s"},{"start_seconds":3709,"text":"know if you could find the killer app that would be awesome you know we have we have scaling challenges which is a lot of what we're trying to address although we know we're sort of trying to","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3709s"},{"start_seconds":3717,"text":"take it on as much as we can you know and then there's a lot of things that we just don't have good models for you know I talked about valuation so much of what","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3717s"},{"start_seconds":3724,"text":"has driven the path of this market has actually been a lack of ability to properly understand how do we value these things what is it worth","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3724s"},{"start_seconds":3731,"text":"you win as the world's best distributed computing platform is that is that a million dollar business or a trillion dollar business you know we don't even","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3731s"},{"start_seconds":3740,"text":"know we have experiments in governance how do you how do you how do you if something's completely decentralized how do you actually operate that as like a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3740s"},{"start_seconds":3748,"text":"tech company would where you can upgrade the system you can future-proof it you can you know you can if there's another platform that's getting better that's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3748s"},{"start_seconds":3756,"text":"moving faster like how do you continue to innovate well you know you have to sort of does that mean you pull everybody on the system and you say hey can we get your permission to to push a","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3756s"},{"start_seconds":3764,"text":"software upgrade or you know how what does that look like so governance is actually a hugely important thing that that really in a lot of ways it's gonna","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3764s"},{"start_seconds":3772,"text":"determine the future of a lot of these these platforms and I think that's something that we've seen historically the different platforms that have different governance strategies like","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3772s"},{"start_seconds":3778,"text":"Bitcoin has a very very sort of let's call it change resistant type of infrastructure and you have etherium","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3778s"},{"start_seconds":3785,"text":"which has again something that's that it's not quite moving as fast as a lot would like there's a lot of chaos in the system you know I don't think we've yet","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3785s"},{"start_seconds":3793,"text":"found an example of somebody who's innovating too quickly or but you do have a lot of teams that are maybe a little too centralized and there's a lot of concern like aetherium also their","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3793s"},{"start_seconds":3801,"text":"their concerns around the centralization of its team so governance you know do you give all the power to the core developers if Vitalik says we should do a thing like the dow hack you know if he","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3801s"},{"start_seconds":3810,"text":"sort of comes out on one side and says we should resolve this hack by giving everyone their money back or not you know how much weight how much sway does that have these are actually really","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3810s"},{"start_seconds":3818,"text":"important questions that we we don't have a lot of test beds for things also like consensus models you know a proof-of-work is is is very well","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3818s"},{"start_seconds":3825,"text":"understood after ten years now but proof of stake is just coming out and everybody's using proof of stake going forward it's not the only one but we","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3825s"},{"start_seconds":3833,"text":"have a lot of things that need to be figured out so there's a lot of there's a lot of sort of academic work there's modelling work there's there's there's a lot around around business side there's","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3833s"},{"start_seconds":3842,"text":"a lot of competitive analysis like how do we how is this market going to develop strategically what does it take to win so so it's almost like it doesn't matter what your background is there is","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3842s"},{"start_seconds":3850,"text":"a way for you to find a problem because we have lots of them so I think I think","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3850s"},{"start_seconds":3858,"text":"really the pitch is is if you solve one of these problems you could be the catalyst to actually take this into the next phase and that's that's pretty cool like that's part of the fun of working","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3858s"},{"start_seconds":3866,"text":"on an emerging technology is it you can be a part of that process and there's so much greenfield and there's so much space and and the people who are working","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3866s"},{"start_seconds":3873,"text":"on these problems are nobody has it figured out so everybody needs help so we're all talking to each other and and it's a community that's really supportive of that so it's a lot of fun","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3873s"},{"start_seconds":3881,"text":"so if you want to start to kind of leave you leave you with something that's tangible but you know okay all you have","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3881s"},{"start_seconds":3889,"text":"to do is you figure out who do you follow you know you after you have to learn the tech it's a tech driven market you don't have to you don't have to read every single white paper that's out","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3889s"},{"start_seconds":3896,"text":"there that's that's totally overkill but you know you have to be comfortable the technical language I find a problem that actually motivates you that fits your","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3896s"},{"start_seconds":3903,"text":"skills you there's probably 12 blog posts about it and you'll and that's it and then you'll drop off a cliff try should try researching blockchain","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3903s"},{"start_seconds":3912,"text":"research blushing user experience and design and things like that you get to the edge of the world very quickly you know how do we value crypto currencies you get to the edge of the world very","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3912s"},{"start_seconds":3920,"text":"quickly so it might seem like we haven't figured out because some some some smart person got you know 5,000 collapse on medium but it's that there's not a lot I","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3920s"},{"start_seconds":3929,"text":"mean there's so much more that needs to be done and you know to help out wherever you can right you know we're all we're all here we're all builders were all makers you guys are motivated","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3929s"},{"start_seconds":3936,"text":"to come out outside of work hours and you know I think that's not too hard for you and if you can figure out how to how to hire yourself in because a lot of","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3936s"},{"start_seconds":3944,"text":"these are skill sets that need to be done you know like if you're a marketer a lot of these companies need to figure out how do they actually cross across the gap in and and and reach real users","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3944s"},{"start_seconds":3953,"text":"that's a hugely important skill that that isn't really well talked about there's a lot of this stuff and then finally please write write about it","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3953s"},{"start_seconds":3960,"text":"teach add to the collective wisdom you know I will make you a pitch about being a thought leader because that has some negative connotations out there but but","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3960s"},{"start_seconds":3969,"text":"I mean really anything that you add you become a leader just just by virtue of adding to our collective knowledge so","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3969s"},{"start_seconds":3976,"text":"thanks for thanks for taking the the time to learn and I hope you guys can go out there and do some do some good","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3976s"},{"start_seconds":3985,"text":"you","url":"https://www.youtube.com/watch?v=Y21YtLzGbH0&t=3985s"}],"youtube_url":"https://youtube.com/watch?v=Y21YtLzGbH0","url":"https://near-pedia.xyz/videos/Y21YtLzGbH0"}