[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.03,0:00:06.27,Default,,0000,0000,0000,,so I'm gonna go back and really try and\Nnail this thing down so that you wind up\Nwith an operational understanding of the
Dialogue: 0,0:00:08.49,0:00:12.84,Default,,0000,0000,0000,,blockchain that will allow you to\Ncorrectly interpret its significance in
Dialogue: 0,0:00:12.84,0:00:20.52,Default,,0000,0000,0000,,your life right and to do that we have\Nto go back really 50 or so years into
Dialogue: 0,0:00:20.52,0:00:25.23,Default,,0000,0000,0000,,the early days of computing because what\Nwhat is making this so confusing is that
Dialogue: 0,0:00:25.23,0:00:29.19,Default,,0000,0000,0000,,most of the practitioners in the\Nblockchain space have 50 years of
Dialogue: 0,0:00:29.19,0:00:33.99,Default,,0000,0000,0000,,history parked into their heads which\Nforms an implicit matrix in which words
Dialogue: 0,0:00:33.99,0:00:39.12,Default,,0000,0000,0000,,like distributed database hang so to\Nreally get this to hang together we've
Dialogue: 0,0:00:39.12,0:00:41.73,Default,,0000,0000,0000,,got to go all the way back and we're\Ngonna go through this kind of quickly
Dialogue: 0,0:00:41.73,0:00:45.90,Default,,0000,0000,0000,,but I want to try and lay out the\Nfoundations in the past so that we can
Dialogue: 0,0:00:45.90,0:00:51.99,Default,,0000,0000,0000,,meaningfully talk about the future\Nso we conveniently have this stage which\Nis set out in lumps and I'm gonna make
Dialogue: 0,0:00:53.94,0:00:59.79,Default,,0000,0000,0000,,each one of these basically a ten year\Nspan so right back somewhere over here
Dialogue: 0,0:00:59.79,0:01:04.92,Default,,0000,0000,0000,,in the darkness of history we've got the\NSecond World War which is where the
Dialogue: 0,0:01:04.92,0:01:08.88,Default,,0000,0000,0000,,computer was was originally created\Nright the computer as it currently
Dialogue: 0,0:01:08.88,0:01:14.28,Default,,0000,0000,0000,,exists was developed as a weapon to\Ndefeat the Nazis it was used to crack
Dialogue: 0,0:01:14.28,0:01:18.75,Default,,0000,0000,0000,,the codes that allowed the Allies to\Nparalyze the German war effort and
Dialogue: 0,0:01:18.75,0:01:23.22,Default,,0000,0000,0000,,eventually defeat them and the link\Nbetween cryptography and computation
Dialogue: 0,0:01:23.22,0:01:27.54,Default,,0000,0000,0000,,goes all the way back to the birth in\Nfact if you go even further back the
Dialogue: 0,0:01:27.54,0:01:31.47,Default,,0000,0000,0000,,analog computers these monsters brass\Ndevices which were used way back in the\Nday were actually created to calculate
Dialogue: 0,0:01:34.29,0:01:38.16,Default,,0000,0000,0000,,gunnery tables for naval ships at war\Nthey wanted to be able to calculate the
Dialogue: 0,0:01:38.16,0:01:43.68,Default,,0000,0000,0000,,trajectory of artillery so you come\Nforward into the 1950s and you get this
Dialogue: 0,0:01:43.68,0:01:48.15,Default,,0000,0000,0000,,kind of demilitarized computing all\Nthese machines and all these engineers
Dialogue: 0,0:01:48.15,0:01:53.28,Default,,0000,0000,0000,,that have left of services and are\Ncoming in to you know create a new
Dialogue: 0,0:01:53.28,0:01:56.94,Default,,0000,0000,0000,,generation and we're gonna take all this\Nformer military gear and we're gonna put\Nit in the hands of businesses and back
Dialogue: 0,0:01:59.46,0:02:04.65,Default,,0000,0000,0000,,in this prehistory the computers are the\Nsize of this room they weighed tons the
Dialogue: 0,0:02:04.65,0:02:09.00,Default,,0000,0000,0000,,guy from IBM famously says that there\Nmight be a world market for perhaps five
Dialogue: 0,0:02:09.00,0:02:13.59,Default,,0000,0000,0000,,computers a year right the data is\Nstored on
Dialogue: 0,0:02:13.59,0:02:19.65,Default,,0000,0000,0000,,cards and then eventually one inch wide\Nmagnetic tapes and the complexity of
Dialogue: 0,0:02:19.65,0:02:23.58,Default,,0000,0000,0000,,these systems is such that it takes a\Nroomful of programmers to get a simple
Dialogue: 0,0:02:23.58,0:02:28.20,Default,,0000,0000,0000,,reliable system to do something a\Nprocess an invoice right this is the\Nprehistory and this is the mid mid-1960s
Dialogue: 0,0:02:31.92,0:02:37.37,Default,,0000,0000,0000,,that were talking about so the game\Nreally begins to be recognizable in 1970
Dialogue: 0,0:02:37.37,0:02:40.83,Default,,0000,0000,0000,,when you get the creation of an\Nabstraction called
Dialogue: 0,0:02:40.83,0:02:49.88,Default,,0000,0000,0000,,SQL in IBM by a guy called coder Edward\NCod and it caught so SQL is this\Nextremely forceful application of
Dialogue: 0,0:02:52.47,0:02:58.35,Default,,0000,0000,0000,,mathematics to bring order to the chaos\Nof tape machines back here you've got a
Dialogue: 0,0:02:58.35,0:03:02.16,Default,,0000,0000,0000,,whole bunch of data basically just\Nspattered across magnetic tape and
Dialogue: 0,0:03:02.16,0:03:06.45,Default,,0000,0000,0000,,you've got huge machines that process\Nthe tape but when you want to retrieve
Dialogue: 0,0:03:06.45,0:03:10.56,Default,,0000,0000,0000,,something you have to go and fish for\Nthe day to yourself move tape number
Dialogue: 0,0:03:10.56,0:03:15.89,Default,,0000,0000,0000,,three forward 17 feet find me the record\Nand give me back the first name and\Nprogramming these things is glacially
Dialogue: 0,0:03:18.45,0:03:22.80,Default,,0000,0000,0000,,slow it's a nightmarish so here is the\Nfirst place where the heavy mouth really
Dialogue: 0,0:03:22.80,0:03:28.86,Default,,0000,0000,0000,,enters the picture in this story which\Nis the SQL abstraction assumes that you
Dialogue: 0,0:03:28.86,0:03:36.27,Default,,0000,0000,0000,,create a multi-dimensional cube one tape\Nmachine per axis of the cube five tape
Dialogue: 0,0:03:36.27,0:03:40.95,Default,,0000,0000,0000,,machines five dimensional cube you can\Nimagine it kind of hanging in space you\Nthen have an abstract algebra which
Dialogue: 0,0:03:43.29,0:03:49.43,Default,,0000,0000,0000,,allows you to take a locus a set space\Ninside of the five dimensional cube
Dialogue: 0,0:03:49.43,0:03:54.57,Default,,0000,0000,0000,,specify in ways which make sense the\Nprogrammers fairly intuitively see where\Nthere might be a gap there and pull that
Dialogue: 0,0:03:57.48,0:04:03.57,Default,,0000,0000,0000,,and that set of data out into something\Nthat looks like a spreadsheet and that
Dialogue: 0,0:04:03.57,0:04:08.82,Default,,0000,0000,0000,,conceptual jump was at the time so\Nrevolutionary it took people were five
Dialogue: 0,0:04:08.82,0:04:13.44,Default,,0000,0000,0000,,years to accept that it had happened and\Nthat actually worked and what came out
Dialogue: 0,0:04:13.44,0:04:22.17,Default,,0000,0000,0000,,of that was the golden age of SQL right\N1970 to 1990 just about all that we did
Dialogue: 0,0:04:22.17,0:04:26.70,Default,,0000,0000,0000,,was take every single thing that we\Ncould fit into a database in business or
Dialogue: 0,0:04:26.70,0:04:28.97,Default,,0000,0000,0000,,in the white\Nworld and we shoved it into a database
Dialogue: 0,0:04:28.97,0:04:36.23,Default,,0000,0000,0000,,and right here in 1970 the machines were\Nincredibly expensive and incredibly
Dialogue: 0,0:04:36.23,0:04:39.91,Default,,0000,0000,0000,,fragile the people working with the\Nmachines actually wore white coats
Dialogue: 0,0:04:39.91,0:04:44.39,Default,,0000,0000,0000,,because if you weren't wearing a white\Ncoat stray fibers from your clothing\Ncould interfere with the tapes Jam the
Dialogue: 0,0:04:47.54,0:04:51.14,Default,,0000,0000,0000,,tape machines and destroy your customer\Ndata Ron\Nso amount in this very fragile very
Dialogue: 0,0:04:53.69,0:04:58.52,Default,,0000,0000,0000,,arcane very expensive system it's only\Njust become technically feasible these
Dialogue: 0,0:04:58.52,0:05:03.83,Default,,0000,0000,0000,,things are like laboratory artifacts\Nright it's like going into you know CERN
Dialogue: 0,0:05:03.83,0:05:07.85,Default,,0000,0000,0000,,or something like that when you want to\Ninspect one of them and this sets the
Dialogue: 0,0:05:07.85,0:05:14.03,Default,,0000,0000,0000,,mindset for databases right the way\Nthrough 70s up until the beginning of\Nthe 80s that's the psychological
Dialogue: 0,0:05:16.10,0:05:21.62,Default,,0000,0000,0000,,condition of the database and the\Norganization's become siloed because all
Dialogue: 0,0:05:21.62,0:05:24.89,Default,,0000,0000,0000,,the information that makes your\Norganization work is stored inside of
Dialogue: 0,0:05:24.89,0:05:31.85,Default,,0000,0000,0000,,one of these data temples right right\Naround 84 you get the microcomputer
Dialogue: 0,0:05:31.85,0:05:37.19,Default,,0000,0000,0000,,revolution the IBM PC the Apple all this\Nkind of stuff and these are appliances
Dialogue: 0,0:05:37.19,0:05:40.76,Default,,0000,0000,0000,,there are things that you can buy like a\Ntelevision and plug into your office
Dialogue: 0,0:05:40.76,0:05:45.92,Default,,0000,0000,0000,,they are robust they're reasonably cheap\Nas as well as four or five thousand
Dialogue: 0,0:05:45.92,0:05:51.95,Default,,0000,0000,0000,,dollars amazing they are fairly easy to\Nmaintain and repair they are relatively
Dialogue: 0,0:05:51.95,0:05:55.91,Default,,0000,0000,0000,,resistant to dust and humidity they're\Npretty much like a television in terms
Dialogue: 0,0:05:55.91,0:06:02.84,Default,,0000,0000,0000,,of their operating characteristics one\Nper desk seems possible and weirdly\Nenough they can absolutely run database
Dialogue: 0,0:06:04.34,0:06:08.15,Default,,0000,0000,0000,,software on them you can actually have a\Ndatabase kind of sort of like the big
Dialogue: 0,0:06:08.15,0:06:11.48,Default,,0000,0000,0000,,thing you had over here but actually\Nliving on the machine that you have in
Dialogue: 0,0:06:11.48,0:06:15.98,Default,,0000,0000,0000,,front of you and the kind of first real\Nheavy use of an application that works
Dialogue: 0,0:06:15.98,0:06:20.03,Default,,0000,0000,0000,,in that environment is a thing called\NLotus 1-2-3 which is the first\Nspreadsheet and this begins a revolution
Dialogue: 0,0:06:22.82,0:06:25.19,Default,,0000,0000,0000,,that goes all the way through accounting\Nbut we're not gonna talk about
Dialogue: 0,0:06:25.19,0:06:28.25,Default,,0000,0000,0000,,accounting too much but if you want to\Nthink about computers and Ledger's
Dialogue: 0,0:06:28.25,0:06:36.65,Default,,0000,0000,0000,,starts here back in the 80s now this is\N15 years from you know enormous with
Dialogue: 0,0:06:36.65,0:06:40.81,Default,,0000,0000,0000,,fragile machinery and enormous expanse\Nthrough to its
Dialogue: 0,0:06:40.81,0:06:44.53,Default,,0000,0000,0000,,on a desktop can you imagine how\Ndisoriented the people that live through\Nthat technological transformation were
Dialogue: 0,0:06:46.09,0:06:51.13,Default,,0000,0000,0000,,it was just as weird as what's happening\Nnow but it was happening somewhere over
Dialogue: 0,0:06:51.13,0:06:55.18,Default,,0000,0000,0000,,there because we hadn't invented the\NInternet to bring you the news that
Dialogue: 0,0:06:55.18,0:07:00.91,Default,,0000,0000,0000,,something weird it happened with\Ncomputers now we get to kill in 1990 the
Dialogue: 0,0:07:00.91,0:07:06.52,Default,,0000,0000,0000,,networking push really starts a long way\Nback but it takes a long time to get the\Nnetworking stuff to work 1990 is about
Dialogue: 0,0:07:09.34,0:07:14.08,Default,,0000,0000,0000,,where you begin to get networking that's\Npractical for real stuff yeah I got my
Dialogue: 0,0:07:14.08,0:07:21.61,Default,,0000,0000,0000,,first email account about 91 and at that\Npoint there was no World Wide Web there
Dialogue: 0,0:07:21.61,0:07:26.74,Default,,0000,0000,0000,,was a computer there was email there\Nwere chat programs but if you wanted a
Dialogue: 0,0:07:26.74,0:07:30.61,Default,,0000,0000,0000,,document from another machine you got an\Ninterface that looked a bit like a file
Dialogue: 0,0:07:30.61,0:07:34.03,Default,,0000,0000,0000,,browser and you clicked on the document\Nyou want then it loaded it onto your\Nmachine and then you opened it in
Dialogue: 0,0:07:35.11,0:07:38.80,Default,,0000,0000,0000,,something to take a look at it and the\Nnotion that you could build the thing to
Dialogue: 0,0:07:38.80,0:07:43.60,Default,,0000,0000,0000,,read the document into the thing that\Ngot you the document was quite radical
Dialogue: 0,0:07:43.60,0:07:49.84,Default,,0000,0000,0000,,that was sort of a big deal and that was\Nwhy the web was a big deal no one were\Nbit weird paradigm stuff over here
Dialogue: 0,0:07:53.29,0:07:57.94,Default,,0000,0000,0000,,through this period the computing is\Nvery much centered around data it's
Dialogue: 0,0:07:57.94,0:08:04.12,Default,,0000,0000,0000,,structured it's hard it's rigid it's\Nformulated it's tabulated the stuff is
Dialogue: 0,0:08:04.12,0:08:09.40,Default,,0000,0000,0000,,very rigid the web builds on a different\Nmodel of computing which is called
Dialogue: 0,0:08:09.40,0:08:15.79,Default,,0000,0000,0000,,document-centric right document-centric\Ncomputers are paper simulators right
Dialogue: 0,0:08:15.79,0:08:19.00,Default,,0000,0000,0000,,they harm do things which look like\Ndocuments you get email it looks like a
Dialogue: 0,0:08:19.00,0:08:24.31,Default,,0000,0000,0000,,letter am you open up a graphics program\Nit looks like a canvas there are things
Dialogue: 0,0:08:24.31,0:08:27.73,Default,,0000,0000,0000,,that look like paintbrushes in term\Nmodel of computing that we're using
Dialogue: 0,0:08:27.73,0:08:33.88,Default,,0000,0000,0000,,right now is document-centric computing\Nand the connection between databases and
Dialogue: 0,0:08:33.88,0:08:38.77,Default,,0000,0000,0000,,that sort of data centric computing and\Ndocument-centric computing is extremely
Dialogue: 0,0:08:38.77,0:08:42.85,Default,,0000,0000,0000,,weak there are two completely different\Nways of getting the machine to do stuff
Dialogue: 0,0:08:42.85,0:08:48.76,Default,,0000,0000,0000,,for you and getting data into documents\Nis tricky as anybody who's ever done in
Dialogue: 0,0:08:48.76,0:08:53.20,Default,,0000,0000,0000,,Excel merge knows and seriously right\Nit's hard
Dialogue: 0,0:08:53.20,0:08:57.46,Default,,0000,0000,0000,,getting documents into data is even\Nharder which is the entire mass of
Dialogue: 0,0:08:57.46,0:09:02.38,Default,,0000,0000,0000,,content management systems right\Nscanning documents all of us these two
Dialogue: 0,0:09:02.38,0:09:08.20,Default,,0000,0000,0000,,things don't mix together at all well so\Nwe come out through the 90s and you kind
Dialogue: 0,0:09:08.20,0:09:14.47,Default,,0000,0000,0000,,of get to mid 95 maybe early 96 and\Npeople suddenly realize that one day in
Dialogue: 0,0:09:14.47,0:09:18.04,Default,,0000,0000,0000,,the future you'll be able to make money\Non the internet there's just one problem\Nthere's no security which means if you
Dialogue: 0,0:09:20.89,0:09:25.45,Default,,0000,0000,0000,,type your credit card into an internet\Nform it will be bounced all around the
Dialogue: 0,0:09:25.45,0:09:28.03,Default,,0000,0000,0000,,internet anybody can read it and they\Ncan steal money out of your account\Nit's another five years until we get a
Dialogue: 0,0:09:31.45,0:09:36.07,Default,,0000,0000,0000,,widely deployed solution that allows us\Nto have encryption which lets us move
Dialogue: 0,0:09:36.07,0:09:40.03,Default,,0000,0000,0000,,credit cards around the internet\Ne-commerce doesn't really become a thing\Ninto hot 1999 2000 so we were already
Dialogue: 0,0:09:44.22,0:09:49.36,Default,,0000,0000,0000,,here by the time you've got a computer\Nthat is capable of taking a payment from
Dialogue: 0,0:09:49.36,0:09:56.62,Default,,0000,0000,0000,,you know the the internet again how fast\Nis the rate of change does anybody even
Dialogue: 0,0:09:56.62,0:10:00.61,Default,,0000,0000,0000,,remember when you couldn't put credit\Ncards into the internet but you were all
Dialogue: 0,0:10:00.61,0:10:05.53,Default,,0000,0000,0000,,alive pretty much but we forget so\Nquickly what was possible or impossible
Dialogue: 0,0:10:05.53,0:10:09.22,Default,,0000,0000,0000,,when you technology arrived so we're\Njust gonna wash the memory out it's
Dialogue: 0,0:10:09.22,0:10:12.67,Default,,0000,0000,0000,,quite hard even to think about what it\Nwas like before we had cell phones so\Nyou come forward to 2010 by 2010 I'm
Dialogue: 0,0:10:16.87,0:10:20.14,Default,,0000,0000,0000,,gonna suggest that more or less\Neverything you could do in a webpage had
Dialogue: 0,0:10:20.14,0:10:24.28,Default,,0000,0000,0000,,been done to at least the first\Napproximation more or less all the basic
Dialogue: 0,0:10:24.28,0:10:27.79,Default,,0000,0000,0000,,stuff was there if you could do it with\Na computer that was basically a paper
Dialogue: 0,0:10:27.79,0:10:34.15,Default,,0000,0000,0000,,simulator it had been done more or less\Nnow this is also roughly when Bitcoin
Dialogue: 0,0:10:34.15,0:10:38.35,Default,,0000,0000,0000,,gets started and Bitcoin starts in some\Nyou know festering little weird
Dialogue: 0,0:10:38.35,0:10:41.95,Default,,0000,0000,0000,,counterculture on the internet which I\Nspent my entire 1990s and called
Dialogue: 0,0:10:41.95,0:10:46.78,Default,,0000,0000,0000,,cyberpunk and the cypherpunks are\Nstraight out of science fiction they\Ncan't tell the difference between
Dialogue: 0,0:10:47.59,0:10:51.28,Default,,0000,0000,0000,,science fiction and reality they\Ngenerally speaking have an emotional\Nintelligence Koecher around 75 to 50 it
Dialogue: 0,0:10:55.30,0:10:59.56,Default,,0000,0000,0000,,took me a long time to grow over and one\Nof the things which makes that scene
Dialogue: 0,0:10:59.56,0:11:04.09,Default,,0000,0000,0000,,work the way that does is the enormous\Nprevalence of autism so whenever you
Dialogue: 0,0:11:04.09,0:11:08.34,Default,,0000,0000,0000,,hear somebody ragging on the Nerds\Nright but ever you hear somebody ragging
Dialogue: 0,0:11:08.34,0:11:11.16,Default,,0000,0000,0000,,on the nerds remember what they're doing\Ngenerally speaking is picking on\Nautistic people right it's really
Dialogue: 0,0:11:14.13,0:11:17.40,Default,,0000,0000,0000,,important to understand that the people\Nbuilding the technologies on put your
Dialogue: 0,0:11:17.40,0:11:22.50,Default,,0000,0000,0000,,society completely depends the people\Nwithout whom the lights go out and the
Dialogue: 0,0:11:22.50,0:11:27.96,Default,,0000,0000,0000,,food stays cold are heavily heavily\Nheavily tending towards being on the
Dialogue: 0,0:11:27.96,0:11:31.11,Default,,0000,0000,0000,,autistic spectrum so when you hear\Npeople laughing at the Nerds remember
Dialogue: 0,0:11:31.11,0:11:34.44,Default,,0000,0000,0000,,they're often at people that are\Ndisabled there are also the people that
Dialogue: 0,0:11:34.44,0:11:39.81,Default,,0000,0000,0000,,your civilization depends on so don't\Nscrew with them right so the cypherpunks\Ncome out and basically say in a very
Dialogue: 0,0:11:42.12,0:11:48.45,Default,,0000,0000,0000,,naive way why do we need government and\Nthey go and they build this thing which
Dialogue: 0,0:11:48.45,0:11:53.34,Default,,0000,0000,0000,,is essentially a central bank of the\Ninternet now you sort of think well that
Dialogue: 0,0:11:53.34,0:11:57.21,Default,,0000,0000,0000,,was a bit of a big jump how did we go\Nfrom we can finally take a credit card\Nto central bank of the internet that's
Dialogue: 0,0:11:59.94,0:12:03.69,Default,,0000,0000,0000,,what all of us spent about five years\Nwondering as well what the hell did they
Dialogue: 0,0:12:03.69,0:12:08.94,Default,,0000,0000,0000,,do because the technology arrived raw we\Ncould go to ask what satoshis intent was
Dialogue: 0,0:12:08.94,0:12:13.23,Default,,0000,0000,0000,,because Satoshi was a ghost right the\Nsoftware was dropped onto the internet
Dialogue: 0,0:12:13.23,0:12:18.12,Default,,0000,0000,0000,,there was some early discussion and then\Nthe guy vanished so we have no idea who
Dialogue: 0,0:12:18.12,0:12:21.33,Default,,0000,0000,0000,,Satoshi was we don't know what the\Nintent was there is nobody to go to
Dialogue: 0,0:12:21.33,0:12:24.96,Default,,0000,0000,0000,,conferences and pitch the technology we\Nwere left with an artifact that to all\Nintents and purposes might have been
Dialogue: 0,0:12:26.28,0:12:32.94,Default,,0000,0000,0000,,created by a time-travel or under\Ndropped it's about bigger jump um so
Dialogue: 0,0:12:32.94,0:12:39.69,Default,,0000,0000,0000,,what did they do what they did was this\Nright back over here the databases were
Dialogue: 0,0:12:39.69,0:12:45.80,Default,,0000,0000,0000,,singular they existed in an atomic state\None database per enterprise the network\Nexisted in some relational sense between
Dialogue: 0,0:12:48.27,0:12:52.77,Default,,0000,0000,0000,,enterprises but because the database was\Nperceived has been too fragile to let
Dialogue: 0,0:12:52.77,0:12:57.18,Default,,0000,0000,0000,,anybody touch the database never\Ndirectly communicated with the network
Dialogue: 0,0:12:57.18,0:13:01.23,Default,,0000,0000,0000,,you always had a lots and lots and lots\Nof guards and buffers and other stuff in
Dialogue: 0,0:13:01.23,0:13:04.95,Default,,0000,0000,0000,,between to prevent the two things\Nworking properly and if you did actually
Dialogue: 0,0:13:04.95,0:13:09.18,Default,,0000,0000,0000,,connect the databases kind of directly\Nto each other you got another problem\Nwhich was the database encoded the
Dialogue: 0,0:13:11.10,0:13:15.78,Default,,0000,0000,0000,,worldview of the organization to\Norganizations to different world views
Dialogue: 0,0:13:15.78,0:13:18.90,Default,,0000,0000,0000,,you always needed something in between\Nto translate
Dialogue: 0,0:13:18.90,0:13:24.57,Default,,0000,0000,0000,,so you never got large-scale\Ncomputer-to-computer connections that
Dialogue: 0,0:13:24.57,0:13:28.14,Default,,0000,0000,0000,,allows you to create a shared model of\Nreality between lots of different\Norganizations and this shows up everyday
Dialogue: 0,0:13:30.78,0:13:35.82,Default,,0000,0000,0000,,when you try and do something like\Nprocess a claim on insurance and you
Dialogue: 0,0:13:35.82,0:13:39.93,Default,,0000,0000,0000,,have to fill in the name and address\Ndetails seventy four times for different\Norganizations often three or four times
Dialogue: 0,0:13:42.03,0:13:46.14,Default,,0000,0000,0000,,for the same organization the databases\Nare kept separate from each other
Dialogue: 0,0:13:46.14,0:13:49.68,Default,,0000,0000,0000,,there's no real connectivity between\Nthem and when you try and build
Dialogue: 0,0:13:49.68,0:13:53.46,Default,,0000,0000,0000,,connections between the systems the\Ncomplexity builds to the point where
Dialogue: 0,0:13:53.46,0:13:59.34,Default,,0000,0000,0000,,it's too expensive to do so what they\Nsay you know mean when they say the word
Dialogue: 0,0:13:59.34,0:14:05.88,Default,,0000,0000,0000,,distributed database is a database which\Nis both like a database and like a\Nnetwork and this is the genius of
Dialogue: 0,0:14:07.92,0:14:13.35,Default,,0000,0000,0000,,Bitcoin it fuses together the database\Nand the network into a seamless hole
Dialogue: 0,0:14:13.35,0:14:18.06,Default,,0000,0000,0000,,called blockchain everywhere there is\Ndata there is Network and everywhere\Nthere is Network there is data they're
Dialogue: 0,0:14:19.89,0:14:25.11,Default,,0000,0000,0000,,completely fused inside of these systems\Nso what that means is rather than having
Dialogue: 0,0:14:25.11,0:14:29.22,Default,,0000,0000,0000,,all of these individual kind of ivory\Ntower computer systems connected by a
Dialogue: 0,0:14:29.22,0:14:33.03,Default,,0000,0000,0000,,network and then all the costs of moving\Nthings in and out you have a single
Dialogue: 0,0:14:33.03,0:14:39.66,Default,,0000,0000,0000,,shared story of reality spread across\Nall the machines simultaneously and when
Dialogue: 0,0:14:39.66,0:14:44.01,Default,,0000,0000,0000,,it changes in one place it changes\Neverywhere and this is such a powerful
Dialogue: 0,0:14:44.01,0:14:48.36,Default,,0000,0000,0000,,abstraction it's such a powerful\Ntechnology that the first thing they
Dialogue: 0,0:14:48.36,0:14:53.79,Default,,0000,0000,0000,,implemented was the central bank of the\Ninternet that was the first thing they
Dialogue: 0,0:14:53.79,0:15:03.30,Default,,0000,0000,0000,,did can you imagine to write you open by\Ncreating a single global currency which
Dialogue: 0,0:15:03.30,0:15:06.54,Default,,0000,0000,0000,,is the first thing that has worked that\Nway since we went off the gold standard
Dialogue: 0,0:15:06.54,0:15:10.92,Default,,0000,0000,0000,,and the technology deployed is so\Npowerful that it was done by either one
Dialogue: 0,0:15:10.92,0:15:14.73,Default,,0000,0000,0000,,individual or a small group that\Nremained a secret they basically
Dialogue: 0,0:15:14.73,0:15:22.02,Default,,0000,0000,0000,,reinvented gold and that was the first\Nmove this is unimaginable strangeness to
Dialogue: 0,0:15:22.02,0:15:24.30,Default,,0000,0000,0000,,somebody that spent their entire\Nlifetime monkeying around with computers
Dialogue: 0,0:15:24.30,0:15:32.40,Default,,0000,0000,0000,,oh my god what have we done so you get\Nup to kind of where we are now right
Dialogue: 0,0:15:32.40,0:15:38.67,Default,,0000,0000,0000,,basically 2015-2016 we're sort of midway\Nthrough the process Bitcoin is well
Dialogue: 0,0:15:38.67,0:15:43.17,Default,,0000,0000,0000,,established as a reality everybody is\Ncomfortable with bitcoins existence to
Dialogue: 0,0:15:43.17,0:15:49.83,Default,,0000,0000,0000,,some degree what is it it's a bank\Naccount that stores magic internet money
Dialogue: 0,0:15:49.83,0:15:52.59,Default,,0000,0000,0000,,that comes from the central bank of the\Ninternet which is a decentralized
Dialogue: 0,0:15:52.59,0:15:55.11,Default,,0000,0000,0000,,database which is everywhere anoher\Nmaintained by a bunch of people you
Dialogue: 0,0:15:55.11,0:16:01.02,Default,,0000,0000,0000,,don't understand but the funny thing is\Nthat if I describe to you how your
Dialogue: 0,0:16:01.02,0:16:08.13,Default,,0000,0000,0000,,government works it's even worse right\Nso every four years we hold a popularity
Dialogue: 0,0:16:08.13,0:16:14.04,Default,,0000,0000,0000,,contest regionally we pick the person\Nthat is most likeable on television more
Dialogue: 0,0:16:14.04,0:16:17.61,Default,,0000,0000,0000,,or less regardless of their values we\Nknow nothing about them because they're
Dialogue: 0,0:16:17.61,0:16:21.45,Default,,0000,0000,0000,,protected by privacy that surrounds most\Nindividuals so they could be a person
Dialogue: 0,0:16:21.45,0:16:24.87,Default,,0000,0000,0000,,playing a role and then we assemble\Nthese people into a large group that
Dialogue: 0,0:16:24.87,0:16:33.18,Default,,0000,0000,0000,,gets to decide who lives and who dies\Nevery day right so you know don't assume
Dialogue: 0,0:16:33.18,0:16:36.93,Default,,0000,0000,0000,,that because the new stuff is weird it's\Nany weirder than the old stuff the old
Dialogue: 0,0:16:36.93,0:16:43.65,Default,,0000,0000,0000,,stuff is just weird stuff you got used\Nto now let me move a little forward to
Dialogue: 0,0:16:43.65,0:16:48.90,Default,,0000,0000,0000,,this whole smart contract thing right so\Nthe smart contract is the third big
Dialogue: 0,0:16:48.90,0:16:53.13,Default,,0000,0000,0000,,integrative step first we merge the\Nnetwork and the database to make the
Dialogue: 0,0:16:53.13,0:16:59.31,Default,,0000,0000,0000,,blockchain then we take computer\Nsoftware code and put it into the shared
Dialogue: 0,0:16:59.31,0:17:04.23,Default,,0000,0000,0000,,database into the blockchain so we take\Na little program and they can only be
Dialogue: 0,0:17:04.23,0:17:07.26,Default,,0000,0000,0000,,little because it's just the beginning\Nof the story and we take the little
Dialogue: 0,0:17:07.26,0:17:12.24,Default,,0000,0000,0000,,program and we store it in the\Nblockchain and that means everybody
Dialogue: 0,0:17:12.24,0:17:16.52,Default,,0000,0000,0000,,that's connected to the block chain has\Nthe copy of exactly the same program and
Dialogue: 0,0:17:16.52,0:17:23.48,Default,,0000,0000,0000,,programs when you run the program same\Ndata same code same result so now
Dialogue: 0,0:17:23.48,0:17:28.11,Default,,0000,0000,0000,,everybody's got a copy of the database\Neverybody's got a copy the code we all\Nrun the code at the same time we all put
Dialogue: 0,0:17:30.42,0:17:34.26,Default,,0000,0000,0000,,the output back into the blockchain if\Nthere's a disagreement we find it
Dialogue: 0,0:17:34.26,0:17:38.55,Default,,0000,0000,0000,,immediately we sort it out so in that\Nsort of environment you have these
Dialogue: 0,0:17:38.55,0:17:42.93,Default,,0000,0000,0000,,little programs which are just as\Ntransactional sending people money it's
Dialogue: 0,0:17:42.93,0:17:47.17,Default,,0000,0000,0000,,like a wire transfer you\Ngo here and my fools across the network
Dialogue: 0,0:17:47.17,0:17:50.62,Default,,0000,0000,0000,,it pops up there it's like a Bitcoin\Npayment what kind of things the world\Nprograms do if this job has been done
Dialogue: 0,0:17:54.13,0:18:00.10,Default,,0000,0000,0000,,pay bob if the job hasn't been done by\Nthe 31st of March send the money back to\Nours how you tiny little pieces of
Dialogue: 0,0:18:03.19,0:18:07.45,Default,,0000,0000,0000,,business logic pulled out of the\Napplication stack and put onto the box
Dialogue: 0,0:18:07.45,0:18:11.89,Default,,0000,0000,0000,,chain instead and this is the third big\Nunification I work for a company called
Dialogue: 0,0:18:11.89,0:18:17.32,Default,,0000,0000,0000,,consensus systems that uses aetherium\Nwhich is the first really durable smart\Ncontract platform to build lots of
Dialogue: 0,0:18:19.39,0:18:24.04,Default,,0000,0000,0000,,applications and those little programs\Ndo things like make sure the artists get
Dialogue: 0,0:18:24.04,0:18:27.37,Default,,0000,0000,0000,,paid when their music is listened to\Nthey do things like streamline
Dialogue: 0,0:18:27.37,0:18:33.13,Default,,0000,0000,0000,,transactions between banks through all\Nkinds of simple useful things and we're
Dialogue: 0,0:18:33.13,0:18:37.81,Default,,0000,0000,0000,,still only at the very beginning of the\Nstory right now the Bitcoin system\Nprocesses about seven transactions a
Dialogue: 0,0:18:39.88,0:18:46.21,Default,,0000,0000,0000,,second the etherium system does\Nsomething like 20 so these are way back
Dialogue: 0,0:18:46.21,0:18:50.80,Default,,0000,0000,0000,,in terms of speed they're way back over\Nthere her computers were in the 1960s on
Dialogue: 0,0:18:50.80,0:18:57.70,Default,,0000,0000,0000,,punched cards now brace yourselves right\Nnow the challenge is to produce a thing
Dialogue: 0,0:18:57.70,0:19:02.74,Default,,0000,0000,0000,,called a scaled blockchain and a scaled\Nblockchain is watch-chain that doesn't
Dialogue: 0,0:19:02.74,0:19:07.72,Default,,0000,0000,0000,,do 20 transactions a second it does\Nroughly the same number of transactions
Dialogue: 0,0:19:07.72,0:19:13.24,Default,,0000,0000,0000,,a second as Visa or Swift ten thousand\N50 thousand a hundred thousand
Dialogue: 0,0:19:13.24,0:19:17.50,Default,,0000,0000,0000,,transactions a second quarter of a\Nmillion transactions a second and the
Dialogue: 0,0:19:17.50,0:19:21.82,Default,,0000,0000,0000,,scaled blockchain is something that\Nbegins to provide us with something that
Dialogue: 0,0:19:21.82,0:19:26.29,Default,,0000,0000,0000,,looks like a global computing surface\Nonto which things like the internet
Dialogue: 0,0:19:26.29,0:19:30.31,Default,,0000,0000,0000,,things could be loaded you could take\Nthe entire global financial system and
Dialogue: 0,0:19:30.31,0:19:34.12,Default,,0000,0000,0000,,push it into a scale box chain you could\Ntake the entire Internet of Things and
Dialogue: 0,0:19:34.12,0:19:37.75,Default,,0000,0000,0000,,push it into a scale blockchain you\Ncould take all of those machines in the
Dialogue: 0,0:19:37.75,0:19:42.22,Default,,0000,0000,0000,,cloud you could put blockchain software\Nonto them as Microsoft recently did with
Dialogue: 0,0:19:42.22,0:19:47.47,Default,,0000,0000,0000,,a thing called a Dewar and then you\Ncould have a single global computing
Dialogue: 0,0:19:47.47,0:19:51.01,Default,,0000,0000,0000,,surface that took all of our different\Nbits and pieces of computing power and
Dialogue: 0,0:19:51.01,0:19:55.33,Default,,0000,0000,0000,,turned them into a global knowledge\Nresource that basically manages the
Dialogue: 0,0:19:55.33,0:19:58.06,Default,,0000,0000,0000,,fundamental infrastructure of our\Nsociety
Dialogue: 0,0:19:58.06,0:20:01.60,Default,,0000,0000,0000,,instead of the cobbled-together nonsense\Nthat you get every time you talk to your
Dialogue: 0,0:20:01.60,0:20:08.59,Default,,0000,0000,0000,,bank right and because these computer\Nsystems don't create new woe curses of
Dialogue: 0,0:20:08.59,0:20:13.00,Default,,0000,0000,0000,,political control when they're built\Nbecause they're decentralized what you
Dialogue: 0,0:20:13.00,0:20:18.22,Default,,0000,0000,0000,,don't get is a position where the basic\Ninfrastructure of your society a stock
Dialogue: 0,0:20:18.22,0:20:21.64,Default,,0000,0000,0000,,that your society runs on is\Nautomatically owned by a set of
Dialogue: 0,0:20:21.64,0:20:25.93,Default,,0000,0000,0000,,corporations or even a set of\Ngovernments what you have is something
Dialogue: 0,0:20:25.93,0:20:30.67,Default,,0000,0000,0000,,which is constituted by the will of the\Npeople and serves their purposes which
Dialogue: 0,0:20:30.67,0:20:35.14,Default,,0000,0000,0000,,is after all the original intention of\Ngovernment now this is where we have to
Dialogue: 0,0:20:35.14,0:20:39.28,Default,,0000,0000,0000,,go back and separate reality from\Nfantasy because this is the mistake\Nthat's made it almost impossible for
Dialogue: 0,0:20:40.63,0:20:45.10,Default,,0000,0000,0000,,people to understand Bitcoin remember I\Nmentioned the cypherpunks back here and\Ntheir inability to tell the difference
Dialogue: 0,0:20:46.57,0:20:50.65,Default,,0000,0000,0000,,between science fiction and political\Nreality the notion that we're simply
Dialogue: 0,0:20:50.65,0:20:55.48,Default,,0000,0000,0000,,going to automate away all of the things\Nwhich constitute government makes a ton
Dialogue: 0,0:20:55.48,0:21:01.93,Default,,0000,0000,0000,,of sense to people that spend 23 hours a\Nday online and I'm really framing this
Dialogue: 0,0:21:01.93,0:21:05.89,Default,,0000,0000,0000,,very carefully because this is causing\Nenormous trouble but if you're somebody
Dialogue: 0,0:21:05.89,0:21:09.91,Default,,0000,0000,0000,,that spends only a little bit of your\Ntime interacting with computers it's
Dialogue: 0,0:21:09.91,0:21:14.11,Default,,0000,0000,0000,,pretty obvious that the computer only\Nexists as a rectangle of glowing light\Nsomewhere in your room or in your hand
Dialogue: 0,0:21:16.06,0:21:21.64,Default,,0000,0000,0000,,and and out here from that perspective\Nit's pretty clear that if you teach
Dialogue: 0,0:21:21.64,0:21:25.57,Default,,0000,0000,0000,,computers governed resources a lot of\Ntrivial stuff in your life gets a lot\Neasier like paying your taxes or making
Dialogue: 0,0:21:28.27,0:21:32.20,Default,,0000,0000,0000,,sure that your telephone works or you\Nknow doing your banking whatever happens
Dialogue: 0,0:21:32.20,0:21:36.07,Default,,0000,0000,0000,,to be but it's not obvious that this is\Na replacement for the general edifice of
Dialogue: 0,0:21:36.07,0:21:41.41,Default,,0000,0000,0000,,government and the tension between the\Nway the world looks to the technologists
Dialogue: 0,0:21:41.41,0:21:45.25,Default,,0000,0000,0000,,and the way the world looks to everybody\Nelse is what's at the heart of the fight
Dialogue: 0,0:21:45.25,0:21:49.06,Default,,0000,0000,0000,,with entities like uber because uber\Nmakes perfect sense to a technologist
Dialogue: 0,0:21:49.06,0:21:53.70,Default,,0000,0000,0000,,and it really upsets people that have\Nrun a taxi monopoly for 150 years and
Dialogue: 0,0:21:53.70,0:21:58.30,Default,,0000,0000,0000,,those kind of discussions and tensions\Nare as much about the different
Dialogue: 0,0:21:58.30,0:22:02.80,Default,,0000,0000,0000,,neurological makeup of the people who\Ndeveloped the world view as they are
Dialogue: 0,0:22:02.80,0:22:07.09,Default,,0000,0000,0000,,about the technology what we're really\Nhaving here is a discussion about what
Dialogue: 0,0:22:07.09,0:22:12.30,Default,,0000,0000,0000,,kinds of minds run our society is our\Nsociety predominantly run by charming
Dialogue: 0,0:22:12.30,0:22:16.56,Default,,0000,0000,0000,,glib slightly sociopathic people who are\Ngood on television or is it
Dialogue: 0,0:22:16.56,0:22:20.13,Default,,0000,0000,0000,,predominantly run by people that live in\Nfront of computers and control the world
Dialogue: 0,0:22:20.13,0:22:25.17,Default,,0000,0000,0000,,with numbers and that debate has gone on\Ninside of our culture since the two
Dialogue: 0,0:22:25.17,0:22:29.19,Default,,0000,0000,0000,,cultures period of British history where\Nthere was this discussion about whether
Dialogue: 0,0:22:29.19,0:22:33.87,Default,,0000,0000,0000,,arts and sciences could ever get along\Nwell turns out the sciences guys are now\Nfiguring out how to govern instead of
Dialogue: 0,0:22:35.49,0:22:40.53,Default,,0000,0000,0000,,the lawyers and this is creating an\Nenormous amount of turbulence but the
Dialogue: 0,0:22:40.53,0:22:45.42,Default,,0000,0000,0000,,turbulence is not well described because\Nit's happening extremely quickly and the
Dialogue: 0,0:22:45.42,0:22:49.56,Default,,0000,0000,0000,,only place that there's a literary canon\Nthat really describes these processes is\Nscience fiction right if you want mental
Dialogue: 0,0:22:52.62,0:22:56.40,Default,,0000,0000,0000,,models of how to think about the reality\Nthat we're currently in you have to go
Dialogue: 0,0:22:56.40,0:22:59.70,Default,,0000,0000,0000,,back to the science fiction a thirty\Nyears ago published under a general
Dialogue: 0,0:22:59.70,0:23:05.34,Default,,0000,0000,0000,,title of cyberpunk right and cyberpunk\Nwas the fiction that describes the\Nreality that we're now in it's about
Dialogue: 0,0:23:07.26,0:23:11.31,Default,,0000,0000,0000,,virtual reality it's about drones it's\Nabout biotechnology that regrows your
Dialogue: 0,0:23:11.31,0:23:14.85,Default,,0000,0000,0000,,nervous system\Nit's about virtual currencies and
Dialogue: 0,0:23:14.85,0:23:19.56,Default,,0000,0000,0000,,artificial intelligence and we would all\Nhave a much better grip on the reality
Dialogue: 0,0:23:19.56,0:23:23.43,Default,,0000,0000,0000,,that we found ourselves in if science\Nfiction hadn't been kicked out of the
Dialogue: 0,0:23:23.43,0:23:25.79,Default,,0000,0000,0000,,Witter recon and sometime after World\NWar two
Dialogue: 0,0:23:25.79,0:23:30.87,Default,,0000,0000,0000,,there's a definite push where science\Nfiction is pushed away from the
Dialogue: 0,0:23:30.87,0:23:35.16,Default,,0000,0000,0000,,mainstream of literature and into its\Nown kind of genre box and as a result
Dialogue: 0,0:23:35.16,0:23:38.61,Default,,0000,0000,0000,,the place where most of the thinking and\Nanalysis has been done about these\Ntechnologies and what they mean to us as
Dialogue: 0,0:23:40.08,0:23:45.06,Default,,0000,0000,0000,,a society has been banished from polite\Ncompany it all exists in a place called
Dialogue: 0,0:23:45.06,0:23:48.75,Default,,0000,0000,0000,,genre fiction and it's no longer\Nconsidered to be real literature as a
Dialogue: 0,0:23:48.75,0:23:53.22,Default,,0000,0000,0000,,result the mainstream can arts\Npopulation have been left without mythic
Dialogue: 0,0:23:53.22,0:23:57.54,Default,,0000,0000,0000,,narratives to allow them to interpret\Nthe reality that the technicians have
Dialogue: 0,0:23:57.54,0:24:02.55,Default,,0000,0000,0000,,created and what we've seen this evening\Nis a perfect demonstration of that gap
Dialogue: 0,0:24:02.55,0:24:06.87,Default,,0000,0000,0000,,because actually getting the message\Nacross requires a completely different
Dialogue: 0,0:24:06.87,0:24:09.45,Default,,0000,0000,0000,,perspective to the one which is natural\Nto the technicians
Dialogue: 0,0:24:09.45,0:24:14.10,Default,,0000,0000,0000,,you know I'm lucky in that I've managed\Nto bridge that gap because I was always\Nas much a writer as I was a programmer
Dialogue: 0,0:24:15.69,0:24:19.80,Default,,0000,0000,0000,,and I've done about you comments are\Nboth in my life so the thing that I
Dialogue: 0,0:24:19.80,0:24:23.49,Default,,0000,0000,0000,,wanted to leave you with is this the\Ndialogue about how these technologies
Dialogue: 0,0:24:23.49,0:24:28.06,Default,,0000,0000,0000,,are going to fit into our society\Nis going to be a dialogue about class
Dialogue: 0,0:24:28.06,0:24:33.29,Default,,0000,0000,0000,,it's going to be about whether the\Nsociety is run by lawyers or technicians
Dialogue: 0,0:24:33.29,0:24:38.63,Default,,0000,0000,0000,,both are the wrong answer it has to be\Nrun by the people but for the people to
Dialogue: 0,0:24:38.63,0:24:42.89,Default,,0000,0000,0000,,be able to intelligently make decisions\Nin a society where the core technologies
Dialogue: 0,0:24:42.89,0:24:46.85,Default,,0000,0000,0000,,that run our society are rapidly\Nbecoming so complicated we no longer
Dialogue: 0,0:24:46.85,0:24:51.29,Default,,0000,0000,0000,,understand them we have to do better the\Nguessing which technocrat or which
Dialogue: 0,0:24:51.29,0:24:55.60,Default,,0000,0000,0000,,lawyer to put in charge without a\Nfundamental reawaken event of
Dialogue: 0,0:24:55.60,0:24:59.63,Default,,0000,0000,0000,,reawakening of interest in science and\Ntechnology and without reclaiming
Dialogue: 0,0:24:59.63,0:25:03.50,Default,,0000,0000,0000,,science fiction as a fundamental\Nliteracy for the present that we're in
Dialogue: 0,0:25:03.50,0:25:07.37,Default,,0000,0000,0000,,we're going to be left making decisions\Nmore or less at random depending on what
Dialogue: 0,0:25:07.37,0:25:12.38,Default,,0000,0000,0000,,charming person tells us the news story\Nso my challenge to all of you is start
Dialogue: 0,0:25:12.38,0:25:19.85,Default,,0000,0000,0000,,reading cyberpunk it's painful right\Nit's painful right it's much of it is
Dialogue: 0,0:25:19.85,0:25:24.05,Default,,0000,0000,0000,,not very well written many of the ideas\Nlook almost like it's kind of weird
Dialogue: 0,0:25:24.05,0:25:28.58,Default,,0000,0000,0000,,potboiler fiction about the present but\Nif you sift through carefully and it
Dialogue: 0,0:25:28.58,0:25:31.91,Default,,0000,0000,0000,,suggests starting with an anthology\Ncalled mirror shades which is a short
Dialogue: 0,0:25:31.91,0:25:36.59,Default,,0000,0000,0000,,will book with short stories nothing to\Nchallenge you too much if you go back\Nand read that stuff what you could begin
Dialogue: 0,0:25:38.21,0:25:43.10,Default,,0000,0000,0000,,to flash out is the stories that all of\Nthe programmers hand in their heads when\Nthey built these technologies and that's
Dialogue: 0,0:25:45.89,0:25:49.61,Default,,0000,0000,0000,,how you get your head around what's\Nhappening if you share the myths at the
Dialogue: 0,0:25:49.61,0:25:53.63,Default,,0000,0000,0000,,technical class half when they create\Nthese things you can begin to understand
Dialogue: 0,0:25:53.63,0:25:57.71,Default,,0000,0000,0000,,the technology in a mythic way which is\Nhow we understand it you have to learn
Dialogue: 0,0:25:57.71,0:26:00.23,Default,,0000,0000,0000,,the ways of our people because you're\Nliving in the world that we create for
Dialogue: 0,0:26:00.23,0:26:02.29,Default,,0000,0000,0000,,you