[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.00,0:00:05.96,Default,,0000,0000,0000,,Economist have been exploring\Npeople's behavior for hundreds of years:
Dialogue: 0,0:00:06.88,0:00:08.46,Default,,0000,0000,0000,,how we make decisions,
Dialogue: 0,0:00:08.48,0:00:11.54,Default,,0000,0000,0000,,how we act individually and in groups,
Dialogue: 0,0:00:11.56,0:00:13.28,Default,,0000,0000,0000,,how we exchange value.
Dialogue: 0,0:00:14.76,0:00:18.22,Default,,0000,0000,0000,,They've studied the institutions\Nthat facilitate our trade,
Dialogue: 0,0:00:18.24,0:00:19.66,Default,,0000,0000,0000,,like legal systems,
Dialogue: 0,0:00:19.68,0:00:20.92,Default,,0000,0000,0000,,corporations,
Dialogue: 0,0:00:21.52,0:00:22.72,Default,,0000,0000,0000,,marketplaces.
Dialogue: 0,0:00:23.60,0:00:27.06,Default,,0000,0000,0000,,But there is a new,\Ntechnological institution
Dialogue: 0,0:00:27.08,0:00:31.10,Default,,0000,0000,0000,,that will fundamentally change\Nhow we exchange value,
Dialogue: 0,0:00:31.12,0:00:32.60,Default,,0000,0000,0000,,and it's called the blockchain.
Dialogue: 0,0:00:34.04,0:00:36.70,Default,,0000,0000,0000,,Now, that's a pretty bold statement,
Dialogue: 0,0:00:36.72,0:00:39.86,Default,,0000,0000,0000,,but if you take nothing else\Naway from this talk,
Dialogue: 0,0:00:39.88,0:00:41.62,Default,,0000,0000,0000,,I actually want you to remember
Dialogue: 0,0:00:41.64,0:00:45.58,Default,,0000,0000,0000,,that while blockchain technology\Nis relatively new,
Dialogue: 0,0:00:45.60,0:00:49.98,Default,,0000,0000,0000,,it's also a continuation\Nof a very human story,
Dialogue: 0,0:00:50.00,0:00:51.52,Default,,0000,0000,0000,,and the story is this.
Dialogue: 0,0:00:52.08,0:00:54.10,Default,,0000,0000,0000,,As humans, we find ways
Dialogue: 0,0:00:54.12,0:00:56.94,Default,,0000,0000,0000,,to lower uncertainty about one another
Dialogue: 0,0:00:56.96,0:00:58.76,Default,,0000,0000,0000,,so that we can exchange value.
Dialogue: 0,0:01:01.08,0:01:04.58,Default,,0000,0000,0000,,Now, one of the first people\Nto really explore the idea
Dialogue: 0,0:01:04.60,0:01:07.78,Default,,0000,0000,0000,,of institutions as a tool in economics
Dialogue: 0,0:01:07.80,0:01:10.26,Default,,0000,0000,0000,,to lower our uncertainties\Nabout one another
Dialogue: 0,0:01:10.28,0:01:12.18,Default,,0000,0000,0000,,and be able to do trade
Dialogue: 0,0:01:12.20,0:01:14.84,Default,,0000,0000,0000,,was the Nobel economist Douglass North.
Dialogue: 0,0:01:15.68,0:01:17.82,Default,,0000,0000,0000,,He passed away at the end of 2015,
Dialogue: 0,0:01:17.84,0:01:22.56,Default,,0000,0000,0000,,but North pioneered what's called\Nnew institutional economics.
Dialogue: 0,0:01:23.12,0:01:27.30,Default,,0000,0000,0000,,And what he meant by institutions\Nwere really just formal rules
Dialogue: 0,0:01:27.32,0:01:29.30,Default,,0000,0000,0000,,like a constitution,
Dialogue: 0,0:01:29.32,0:01:32.24,Default,,0000,0000,0000,,and informal constraints, like bribery.
Dialogue: 0,0:01:33.28,0:01:36.18,Default,,0000,0000,0000,,These institutions are really the grease
Dialogue: 0,0:01:36.20,0:01:39.14,Default,,0000,0000,0000,,that allow our economic\Nwheels to function,
Dialogue: 0,0:01:39.16,0:01:42.28,Default,,0000,0000,0000,,and we can see this play out\Nover the course of human history.
Dialogue: 0,0:01:43.12,0:01:46.58,Default,,0000,0000,0000,,If we think back to when we were\Nhunter-gatherer economies,
Dialogue: 0,0:01:46.60,0:01:49.54,Default,,0000,0000,0000,,we really just traded\Nwithin our village structure.
Dialogue: 0,0:01:49.56,0:01:51.98,Default,,0000,0000,0000,,We had some informal constraints in place,
Dialogue: 0,0:01:52.00,0:01:55.54,Default,,0000,0000,0000,,but we enforced\Nall of our trade with violence
Dialogue: 0,0:01:55.56,0:01:57.44,Default,,0000,0000,0000,,or social repercussions.
Dialogue: 0,0:01:57.96,0:02:00.30,Default,,0000,0000,0000,,As our societies grew more complex
Dialogue: 0,0:02:00.32,0:02:03.54,Default,,0000,0000,0000,,and our trade routes grew more distant,
Dialogue: 0,0:02:03.56,0:02:06.58,Default,,0000,0000,0000,,we built up more formal institutions,
Dialogue: 0,0:02:06.60,0:02:09.94,Default,,0000,0000,0000,,institutions like banks for currency,
Dialogue: 0,0:02:09.96,0:02:12.66,Default,,0000,0000,0000,,governments, corporations.
Dialogue: 0,0:02:12.68,0:02:15.22,Default,,0000,0000,0000,,These institutions\Nhelped us manage our trade
Dialogue: 0,0:02:15.24,0:02:18.26,Default,,0000,0000,0000,,as the uncertainty\Nand the complexity grew,
Dialogue: 0,0:02:18.28,0:02:20.88,Default,,0000,0000,0000,,and our personal control was much lower.
Dialogue: 0,0:02:21.56,0:02:25.84,Default,,0000,0000,0000,,Eventually with the Internet,\Nwe put these same institutions online.
Dialogue: 0,0:02:26.60,0:02:30.98,Default,,0000,0000,0000,,We built platform marketplaces\Nlike Amazon, eBay, Alibaba,
Dialogue: 0,0:02:31.00,0:02:34.54,Default,,0000,0000,0000,,just faster institutions\Nthat act as middlemen
Dialogue: 0,0:02:34.56,0:02:37.48,Default,,0000,0000,0000,,to facilitate human economic activity.
Dialogue: 0,0:02:39.84,0:02:41.98,Default,,0000,0000,0000,,As Douglass North saw it,
Dialogue: 0,0:02:42.00,0:02:45.66,Default,,0000,0000,0000,,institutions are a tool\Nto lower uncertainty
Dialogue: 0,0:02:45.68,0:02:50.00,Default,,0000,0000,0000,,so that we can connect and exchange\Nall kinds of value in society.
Dialogue: 0,0:02:50.84,0:02:53.18,Default,,0000,0000,0000,,And I believe we are now entering
Dialogue: 0,0:02:53.20,0:02:56.18,Default,,0000,0000,0000,,a further and radical evolution
Dialogue: 0,0:02:56.20,0:02:58.66,Default,,0000,0000,0000,,of how we interact and trade,
Dialogue: 0,0:02:58.68,0:03:02.26,Default,,0000,0000,0000,,because for the first time,\Nwe can lower uncertainty
Dialogue: 0,0:03:02.28,0:03:05.86,Default,,0000,0000,0000,,not just with political\Nand economic institutions,
Dialogue: 0,0:03:05.88,0:03:09.62,Default,,0000,0000,0000,,like our banks, our corporations,\Nour governments,
Dialogue: 0,0:03:09.64,0:03:12.00,Default,,0000,0000,0000,,but we can do it with technology alone.
Dialogue: 0,0:03:13.92,0:03:15.94,Default,,0000,0000,0000,,So what is the blockchain?
Dialogue: 0,0:03:15.96,0:03:20.02,Default,,0000,0000,0000,,Blockchain technology\Nis a decentralized database
Dialogue: 0,0:03:20.04,0:03:23.58,Default,,0000,0000,0000,,that stores a registry\Nof assets and transactions
Dialogue: 0,0:03:23.60,0:03:25.40,Default,,0000,0000,0000,,across a peer-to-peer network.
Dialogue: 0,0:03:26.16,0:03:28.30,Default,,0000,0000,0000,,It's basically a public registry
Dialogue: 0,0:03:28.32,0:03:31.16,Default,,0000,0000,0000,,of who owns what and who transacts what.
Dialogue: 0,0:03:31.92,0:03:34.90,Default,,0000,0000,0000,,The transactions are secured\Nthrough cryptography,
Dialogue: 0,0:03:34.92,0:03:40.70,Default,,0000,0000,0000,,and over time, that transaction history\Ngets locked in blocks of data
Dialogue: 0,0:03:40.72,0:03:44.20,Default,,0000,0000,0000,,that are then cryptographically\Nlinked together and secured.
Dialogue: 0,0:03:45.36,0:03:49.54,Default,,0000,0000,0000,,This creates and immutable,\Nunforgeable record
Dialogue: 0,0:03:49.56,0:03:53.38,Default,,0000,0000,0000,,of all of the transactions\Nacross this network.
Dialogue: 0,0:03:53.40,0:03:57.80,Default,,0000,0000,0000,,This record is replicated\Non every computer that uses the network.
Dialogue: 0,0:03:59.24,0:04:00.48,Default,,0000,0000,0000,,It's not an app.
Dialogue: 0,0:04:01.08,0:04:02.32,Default,,0000,0000,0000,,It's not a company.
Dialogue: 0,0:04:03.12,0:04:06.88,Default,,0000,0000,0000,,I think it's closest in description\Nto something like Wikipedia.
Dialogue: 0,0:04:07.80,0:04:09.86,Default,,0000,0000,0000,,We can see everything on Wikipedia.
Dialogue: 0,0:04:09.88,0:04:13.92,Default,,0000,0000,0000,,It's a composite view that's constantly\Nchanging and being updated.
Dialogue: 0,0:04:15.88,0:04:19.54,Default,,0000,0000,0000,,We can also track those changes\Nover time on Wikipedia,
Dialogue: 0,0:04:19.56,0:04:21.86,Default,,0000,0000,0000,,and we can create our own wikis,
Dialogue: 0,0:04:21.88,0:04:24.72,Default,,0000,0000,0000,,because at their core,\Nthey're just a data infrastructure.
Dialogue: 0,0:04:26.60,0:04:32.10,Default,,0000,0000,0000,,On Wikipedia, it's an open platform\Nthat stores words and images
Dialogue: 0,0:04:32.12,0:04:34.60,Default,,0000,0000,0000,,and the changes to that data over time.
Dialogue: 0,0:04:35.52,0:04:36.98,Default,,0000,0000,0000,,On the blockchain,
Dialogue: 0,0:04:37.00,0:04:39.94,Default,,0000,0000,0000,,you can think of it\Nas an open infrastructure
Dialogue: 0,0:04:39.96,0:04:42.64,Default,,0000,0000,0000,,that stores many kinds of assets.
Dialogue: 0,0:04:43.76,0:04:46.50,Default,,0000,0000,0000,,It stores the history of custodianship,
Dialogue: 0,0:04:46.52,0:04:48.74,Default,,0000,0000,0000,,ownership, and location
Dialogue: 0,0:04:48.76,0:04:52.42,Default,,0000,0000,0000,,for assets like\Nthe digital currency Bitcoin,
Dialogue: 0,0:04:52.44,0:04:54.02,Default,,0000,0000,0000,,other digital assets
Dialogue: 0,0:04:54.04,0:04:57.36,Default,,0000,0000,0000,,like a title of ownership of IP.
Dialogue: 0,0:04:58.48,0:05:01.62,Default,,0000,0000,0000,,It could be a certificate, a contract,
Dialogue: 0,0:05:01.64,0:05:02.90,Default,,0000,0000,0000,,real world objects,
Dialogue: 0,0:05:02.92,0:05:05.72,Default,,0000,0000,0000,,even personal identifiable information.
Dialogue: 0,0:05:07.08,0:05:10.94,Default,,0000,0000,0000,,There are of course other\Ntechnical details to the blockchain,
Dialogue: 0,0:05:10.96,0:05:12.98,Default,,0000,0000,0000,,but at its core, that's how it works.
Dialogue: 0,0:05:13.00,0:05:17.34,Default,,0000,0000,0000,,It's this public registry\Nthat stores transactions in a network
Dialogue: 0,0:05:17.36,0:05:21.56,Default,,0000,0000,0000,,and is replicated so that it's very secure\Nand hard to tamper with.
Dialogue: 0,0:05:23.12,0:05:25.26,Default,,0000,0000,0000,,Which brings me to my point
Dialogue: 0,0:05:25.28,0:05:28.34,Default,,0000,0000,0000,,of how blockchains lower uncertainty
Dialogue: 0,0:05:28.36,0:05:32.50,Default,,0000,0000,0000,,and how they therefore promise\Nto transform our economic systems
Dialogue: 0,0:05:32.52,0:05:33.72,Default,,0000,0000,0000,,in radical ways.
Dialogue: 0,0:05:35.88,0:05:38.22,Default,,0000,0000,0000,,So uncertainty is kind of a big term
Dialogue: 0,0:05:38.24,0:05:39.62,Default,,0000,0000,0000,,in economics,
Dialogue: 0,0:05:39.64,0:05:41.70,Default,,0000,0000,0000,,but I want to go through three forms of it
Dialogue: 0,0:05:41.72,0:05:45.10,Default,,0000,0000,0000,,that we face in almost all\Nof our everyday transactions,
Dialogue: 0,0:05:45.12,0:05:47.22,Default,,0000,0000,0000,,where blockchains can play a role.
Dialogue: 0,0:05:47.24,0:05:50.62,Default,,0000,0000,0000,,We face uncertainties\Nlike not knowing who we're dealing with,
Dialogue: 0,0:05:50.64,0:05:53.46,Default,,0000,0000,0000,,not having visibility into a transaction,
Dialogue: 0,0:05:53.48,0:05:56.40,Default,,0000,0000,0000,,and not having recourse\Nif things go wrong.
Dialogue: 0,0:05:57.52,0:06:00.88,Default,,0000,0000,0000,,So let's take the first example,\Nnot knowing who we're dealing with.
Dialogue: 0,0:06:01.72,0:06:05.08,Default,,0000,0000,0000,,Say I want to buy\Na used smartphone on eBay.
Dialogue: 0,0:06:05.76,0:06:09.08,Default,,0000,0000,0000,,The first thing I'm going to do\Nis look up who I'm buying from.
Dialogue: 0,0:06:09.60,0:06:11.34,Default,,0000,0000,0000,,Are they a power user?
Dialogue: 0,0:06:11.36,0:06:15.48,Default,,0000,0000,0000,,Do they have great reviews and ratings,\Nor do they have no profile at all?
Dialogue: 0,0:06:16.96,0:06:19.74,Default,,0000,0000,0000,,Reviews, ratings, checkmarks:
Dialogue: 0,0:06:19.76,0:06:23.38,Default,,0000,0000,0000,,these are the attestations\Nabout our identities
Dialogue: 0,0:06:23.40,0:06:25.02,Default,,0000,0000,0000,,that we cobble together today
Dialogue: 0,0:06:25.04,0:06:28.48,Default,,0000,0000,0000,,and use to lower uncertainty\Nabout who we're dealing with.
Dialogue: 0,0:06:29.84,0:06:32.86,Default,,0000,0000,0000,,But the problem is\Nthey're very fragmented.
Dialogue: 0,0:06:32.88,0:06:35.20,Default,,0000,0000,0000,,Think about how many profiles you have.
Dialogue: 0,0:06:36.52,0:06:42.02,Default,,0000,0000,0000,,Blockchains allow for us\Nto create an open, global platform
Dialogue: 0,0:06:42.04,0:06:46.42,Default,,0000,0000,0000,,on which to store any attestation\Nabout any individual
Dialogue: 0,0:06:46.44,0:06:47.84,Default,,0000,0000,0000,,from any source.
Dialogue: 0,0:06:48.48,0:06:51.78,Default,,0000,0000,0000,,This allows us to create a user-controlled
Dialogue: 0,0:06:51.80,0:06:53.16,Default,,0000,0000,0000,,portable identity.
Dialogue: 0,0:06:55.80,0:06:57.70,Default,,0000,0000,0000,,More than a profile,
Dialogue: 0,0:06:57.72,0:07:01.02,Default,,0000,0000,0000,,it means you can selectively reveal
Dialogue: 0,0:07:01.04,0:07:02.98,Default,,0000,0000,0000,,the different attributes about you
Dialogue: 0,0:07:03.00,0:07:06.30,Default,,0000,0000,0000,,that help facilitate trade or interaction,
Dialogue: 0,0:07:06.32,0:07:09.18,Default,,0000,0000,0000,,for instance that a government\Nissued you an ID,
Dialogue: 0,0:07:09.20,0:07:11.46,Default,,0000,0000,0000,,or that you're over 21,
Dialogue: 0,0:07:11.48,0:07:14.10,Default,,0000,0000,0000,,by revealing the cryptographic proof
Dialogue: 0,0:07:14.12,0:07:17.00,Default,,0000,0000,0000,,that these details exist\Nand are signed off on.
Dialogue: 0,0:07:18.96,0:07:21.02,Default,,0000,0000,0000,,Having this kind of portable identity
Dialogue: 0,0:07:21.04,0:07:24.06,Default,,0000,0000,0000,,around the physical world\Nand the digital world
Dialogue: 0,0:07:24.08,0:07:27.38,Default,,0000,0000,0000,,means we can do all kinds of human trade
Dialogue: 0,0:07:27.40,0:07:28.80,Default,,0000,0000,0000,,in a totally new way.
Dialogue: 0,0:07:30.60,0:07:33.50,Default,,0000,0000,0000,,So I've talked about how blockchains\Ncould lower uncertainty
Dialogue: 0,0:07:33.52,0:07:35.06,Default,,0000,0000,0000,,in who we're dealing with.
Dialogue: 0,0:07:35.08,0:07:37.66,Default,,0000,0000,0000,,The second uncertainty that we often face
Dialogue: 0,0:07:37.68,0:07:40.88,Default,,0000,0000,0000,,is just not having transparency\Ninto our interactions.
Dialogue: 0,0:07:41.60,0:07:44.34,Default,,0000,0000,0000,,Say you're going to send me\Nthat smartphone by mail.
Dialogue: 0,0:07:44.36,0:07:46.06,Default,,0000,0000,0000,,I want some degree of transparency.
Dialogue: 0,0:07:46.08,0:07:50.38,Default,,0000,0000,0000,,I want to know that the product I bought\Nis the same one that arrives in the mail
Dialogue: 0,0:07:50.40,0:07:52.78,Default,,0000,0000,0000,,and that there's some record\Nfor how it got to me.
Dialogue: 0,0:07:52.80,0:07:55.42,Default,,0000,0000,0000,,This is true not just\Nfor electronics like smartphones,
Dialogue: 0,0:07:55.44,0:07:58.62,Default,,0000,0000,0000,,but for many kinds of goods and data,
Dialogue: 0,0:07:58.64,0:08:01.28,Default,,0000,0000,0000,,things like medicine, luxury goods,
Dialogue: 0,0:08:02.00,0:08:05.52,Default,,0000,0000,0000,,any kind of data or product\Nthat we don't want tampered with.
Dialogue: 0,0:08:06.88,0:08:09.10,Default,,0000,0000,0000,,The problem in many companies,
Dialogue: 0,0:08:09.12,0:08:12.46,Default,,0000,0000,0000,,especially those that produce\Nsomething complicated like a smartphone,
Dialogue: 0,0:08:12.48,0:08:14.98,Default,,0000,0000,0000,,is they're managing\Nall of these different vendors
Dialogue: 0,0:08:15.00,0:08:16.88,Default,,0000,0000,0000,,across a horizontal supply chain.
Dialogue: 0,0:08:18.24,0:08:20.82,Default,,0000,0000,0000,,All of these people\Nthat go into making a product,
Dialogue: 0,0:08:20.84,0:08:22.50,Default,,0000,0000,0000,,they don't have the same database.
Dialogue: 0,0:08:22.52,0:08:24.54,Default,,0000,0000,0000,,They don't use the same infrastructure,
Dialogue: 0,0:08:24.56,0:08:29.68,Default,,0000,0000,0000,,and so it becomes really hard to see\Ntransparently a product evolve over time.
Dialogue: 0,0:08:31.84,0:08:33.78,Default,,0000,0000,0000,,Using the blockchain, we can create
Dialogue: 0,0:08:33.80,0:08:37.56,Default,,0000,0000,0000,,a shared reality\Nacross nontrusting entities.
Dialogue: 0,0:08:38.64,0:08:39.86,Default,,0000,0000,0000,,By this I mean
Dialogue: 0,0:08:39.88,0:08:43.26,Default,,0000,0000,0000,,all of these nodes in the network\Ndo not need to know each other
Dialogue: 0,0:08:43.28,0:08:44.70,Default,,0000,0000,0000,,or trust each other,
Dialogue: 0,0:08:44.72,0:08:46.86,Default,,0000,0000,0000,,because they each have the ability
Dialogue: 0,0:08:46.88,0:08:49.96,Default,,0000,0000,0000,,to monitor and validate\Nthe chain for themselves.
Dialogue: 0,0:08:51.04,0:08:52.78,Default,,0000,0000,0000,,Think back to Wikipedia.
Dialogue: 0,0:08:52.80,0:08:54.98,Default,,0000,0000,0000,,It's a shared database,
Dialogue: 0,0:08:55.00,0:08:57.82,Default,,0000,0000,0000,,and even though it has multiple readers
Dialogue: 0,0:08:57.84,0:08:59.94,Default,,0000,0000,0000,,and multiple writers at the same time,
Dialogue: 0,0:08:59.96,0:09:01.68,Default,,0000,0000,0000,,it has one single truth.
Dialogue: 0,0:09:02.72,0:09:04.82,Default,,0000,0000,0000,,So we can create that using blockchains.
Dialogue: 0,0:09:04.84,0:09:10.82,Default,,0000,0000,0000,,We can create a decentralized database\Nthat has the same efficiency of a monopoly
Dialogue: 0,0:09:10.84,0:09:13.52,Default,,0000,0000,0000,,without actually creating\Nthat central authority.
Dialogue: 0,0:09:14.20,0:09:16.62,Default,,0000,0000,0000,,So all of these vendors,\Nall sorts of companies,
Dialogue: 0,0:09:16.64,0:09:20.60,Default,,0000,0000,0000,,can interact using the same database\Nwithout trusting one another.
Dialogue: 0,0:09:22.20,0:09:25.74,Default,,0000,0000,0000,,It means for consumers,\Nwe can have a lot more transparency.
Dialogue: 0,0:09:25.76,0:09:27.90,Default,,0000,0000,0000,,As a real-world object travels along,
Dialogue: 0,0:09:27.92,0:09:33.10,Default,,0000,0000,0000,,we can see its digital certificate\Nor token move on the blockchain,
Dialogue: 0,0:09:33.12,0:09:34.84,Default,,0000,0000,0000,,adding value as it goes.
Dialogue: 0,0:09:36.36,0:09:40.20,Default,,0000,0000,0000,,This is a whole new world\Nin terms of our visibility.
Dialogue: 0,0:09:41.72,0:09:46.32,Default,,0000,0000,0000,,So I've talked about how blockchains\Ncan lower our uncertainties about identity
Dialogue: 0,0:09:47.24,0:09:50.46,Default,,0000,0000,0000,,and how they change\Nwhat we mean about transparency
Dialogue: 0,0:09:50.48,0:09:54.24,Default,,0000,0000,0000,,in long distances and complex trades\Nlike in a supply chain.
Dialogue: 0,0:09:55.52,0:09:57.62,Default,,0000,0000,0000,,The last uncertainty that we often face
Dialogue: 0,0:09:57.64,0:10:00.28,Default,,0000,0000,0000,,is one of the most open-ended,\Nand it's reneging.
Dialogue: 0,0:10:00.92,0:10:03.42,Default,,0000,0000,0000,,What if you don't send me the smartphone?
Dialogue: 0,0:10:03.44,0:10:05.00,Default,,0000,0000,0000,,Can I get my money back?
Dialogue: 0,0:10:05.80,0:10:09.50,Default,,0000,0000,0000,,Blockchains allow us to write code,
Dialogue: 0,0:10:09.52,0:10:11.22,Default,,0000,0000,0000,,binding contracts,
Dialogue: 0,0:10:11.24,0:10:12.90,Default,,0000,0000,0000,,between individuals,
Dialogue: 0,0:10:12.92,0:10:16.58,Default,,0000,0000,0000,,and then guarantee\Nthat those contracts will bear out
Dialogue: 0,0:10:16.60,0:10:18.56,Default,,0000,0000,0000,,without a third party enforcer.
Dialogue: 0,0:10:19.72,0:10:23.62,Default,,0000,0000,0000,,So if we look at the smartphone example,\Nyou could think about escrow.
Dialogue: 0,0:10:23.64,0:10:25.74,Default,,0000,0000,0000,,You are financing that phone,
Dialogue: 0,0:10:25.76,0:10:28.30,Default,,0000,0000,0000,,but you don't need to release the funds
Dialogue: 0,0:10:28.32,0:10:31.14,Default,,0000,0000,0000,,until you can verify\Nthat all the conditions have been met.
Dialogue: 0,0:10:31.16,0:10:32.36,Default,,0000,0000,0000,,You got the phone.
Dialogue: 0,0:10:34.24,0:10:36.66,Default,,0000,0000,0000,,I think this is one\Nof the most exciting ways
Dialogue: 0,0:10:36.68,0:10:39.12,Default,,0000,0000,0000,,that blockchains lower our uncertainties,
Dialogue: 0,0:10:39.84,0:10:41.42,Default,,0000,0000,0000,,because it means to some degree
Dialogue: 0,0:10:41.44,0:10:45.04,Default,,0000,0000,0000,,we can collapse institutions\Nand their enforcement.
Dialogue: 0,0:10:47.72,0:10:50.42,Default,,0000,0000,0000,,It means a lot of human economic activity
Dialogue: 0,0:10:50.44,0:10:55.46,Default,,0000,0000,0000,,can get collateralized and automated,
Dialogue: 0,0:10:55.48,0:10:58.54,Default,,0000,0000,0000,,and push a lot of human\Nintervention to the edges,
Dialogue: 0,0:10:58.56,0:11:02.52,Default,,0000,0000,0000,,the places where information moves\Nfrom the real world to the blockchain.
Dialogue: 0,0:11:04.88,0:11:07.34,Default,,0000,0000,0000,,I think what would probably\Nfloor Douglass North
Dialogue: 0,0:11:07.36,0:11:09.74,Default,,0000,0000,0000,,about this use of technology
Dialogue: 0,0:11:09.76,0:11:12.78,Default,,0000,0000,0000,,is the fact that the very thing\Nthat makes it work,
Dialogue: 0,0:11:12.80,0:11:17.34,Default,,0000,0000,0000,,the very thing that keeps the blockchain\Nsecure and verified,
Dialogue: 0,0:11:17.36,0:11:19.32,Default,,0000,0000,0000,,is our mutual distrust.
Dialogue: 0,0:11:21.60,0:11:24.70,Default,,0000,0000,0000,,So rather than all of our uncertainties
Dialogue: 0,0:11:24.72,0:11:26.34,Default,,0000,0000,0000,,slowing us down
Dialogue: 0,0:11:26.36,0:11:28.86,Default,,0000,0000,0000,,and requiring institutions
Dialogue: 0,0:11:28.88,0:11:31.96,Default,,0000,0000,0000,,like banks, our governments,\Nour corporations,
Dialogue: 0,0:11:33.36,0:11:37.74,Default,,0000,0000,0000,,we can actually harness\Nall of that collective uncertainty
Dialogue: 0,0:11:37.76,0:11:43.36,Default,,0000,0000,0000,,and use it to collaborate and exchange\Nmore and faster and more open.
Dialogue: 0,0:11:44.80,0:11:46.86,Default,,0000,0000,0000,,Now, I don't want you\Nto get the impression
Dialogue: 0,0:11:46.88,0:11:49.26,Default,,0000,0000,0000,,that the blockchain\Nis the solution to everything,
Dialogue: 0,0:11:49.28,0:11:54.20,Default,,0000,0000,0000,,even though the media has said\Nthat it's going to end world poverty,
Dialogue: 0,0:11:55.84,0:11:58.58,Default,,0000,0000,0000,,it's also going to solve\Nthe counterfeit drug problem
Dialogue: 0,0:11:58.60,0:12:00.80,Default,,0000,0000,0000,,and potentially save the rainforest.
Dialogue: 0,0:12:02.32,0:12:06.30,Default,,0000,0000,0000,,The truth is, this technology\Nis in its infancy,
Dialogue: 0,0:12:06.32,0:12:09.54,Default,,0000,0000,0000,,and we're going to need to see\Na lot of experiments take place
Dialogue: 0,0:12:09.56,0:12:10.98,Default,,0000,0000,0000,,and probably fail
Dialogue: 0,0:12:11.00,0:12:14.54,Default,,0000,0000,0000,,before we truly understand\Nall of the use cases
Dialogue: 0,0:12:14.56,0:12:15.76,Default,,0000,0000,0000,,for our economy.
Dialogue: 0,0:12:17.24,0:12:19.42,Default,,0000,0000,0000,,But there are tons of people\Nworking on this,
Dialogue: 0,0:12:19.44,0:12:21.14,Default,,0000,0000,0000,,from financial institutions
Dialogue: 0,0:12:21.16,0:12:24.32,Default,,0000,0000,0000,,to technology companies,\Nstart-ups, and universities.
Dialogue: 0,0:12:25.12,0:12:30.06,Default,,0000,0000,0000,,And one of the reasons is\Nthat it's not just an economic evolution.
Dialogue: 0,0:12:30.08,0:12:33.80,Default,,0000,0000,0000,,It's also an innovation\Nin computer science.
Dialogue: 0,0:12:37.36,0:12:40.82,Default,,0000,0000,0000,,Blockchains give us\Nthe technological capability
Dialogue: 0,0:12:40.84,0:12:44.42,Default,,0000,0000,0000,,of creating a record of human exchange,
Dialogue: 0,0:12:44.44,0:12:46.00,Default,,0000,0000,0000,,of exchange of currency,
Dialogue: 0,0:12:46.72,0:12:50.42,Default,,0000,0000,0000,,of all kinds of digital\Nand physical assets,
Dialogue: 0,0:12:50.44,0:12:53.02,Default,,0000,0000,0000,,even of our own personal attributes,
Dialogue: 0,0:12:53.04,0:12:54.36,Default,,0000,0000,0000,,in a totally new way.
Dialogue: 0,0:12:55.72,0:12:57.06,Default,,0000,0000,0000,,So in some ways,
Dialogue: 0,0:12:57.08,0:13:00.06,Default,,0000,0000,0000,,they become a technological institution
Dialogue: 0,0:13:00.08,0:13:01.86,Default,,0000,0000,0000,,that has a lot of the benefits
Dialogue: 0,0:13:01.88,0:13:05.08,Default,,0000,0000,0000,,of the traditional institutions\Nwe're used to using in society,
Dialogue: 0,0:13:06.20,0:13:09.12,Default,,0000,0000,0000,,but it does this in a decentralized way.
Dialogue: 0,0:13:10.36,0:13:13.90,Default,,0000,0000,0000,,It does this by converting\Na lot of our uncertainties
Dialogue: 0,0:13:13.92,0:13:15.12,Default,,0000,0000,0000,,into certainties.
Dialogue: 0,0:13:16.36,0:13:19.90,Default,,0000,0000,0000,,So I think we need to start\Npreparing ourselves,
Dialogue: 0,0:13:19.92,0:13:22.46,Default,,0000,0000,0000,,because we are about to face a world
Dialogue: 0,0:13:22.48,0:13:25.62,Default,,0000,0000,0000,,where distributed, autonomous institutions
Dialogue: 0,0:13:25.64,0:13:27.64,Default,,0000,0000,0000,,have quite a significant role.
Dialogue: 0,0:13:28.60,0:13:29.82,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:13:29.84,0:13:32.20,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:13:38.40,0:13:40.07,Default,,0000,0000,0000,,Bruno Giussani: Thank you, Bettina.
Dialogue: 0,0:13:40.88,0:13:44.58,Default,,0000,0000,0000,,I think I understood that it's coming,
Dialogue: 0,0:13:44.60,0:13:46.50,Default,,0000,0000,0000,,it offers a lot of potential,
Dialogue: 0,0:13:46.52,0:13:48.70,Default,,0000,0000,0000,,and it's complex.
Dialogue: 0,0:13:48.72,0:13:53.80,Default,,0000,0000,0000,,What is your estimate\Nfor the rate of adoption?
Dialogue: 0,0:13:55.12,0:13:57.74,Default,,0000,0000,0000,,Bettina Warburg: I think\Nthat's a really good question.
Dialogue: 0,0:13:57.76,0:13:59.18,Default,,0000,0000,0000,,My lab is pretty much focused
Dialogue: 0,0:13:59.20,0:14:02.66,Default,,0000,0000,0000,,on going the enterprise\Nand government route first,
Dialogue: 0,0:14:02.68,0:14:06.22,Default,,0000,0000,0000,,because in reality,\Nblockchain is a complex technology.
Dialogue: 0,0:14:06.24,0:14:09.02,Default,,0000,0000,0000,,How many of you actually understand\Nhow the Internet works?
Dialogue: 0,0:14:09.04,0:14:10.70,Default,,0000,0000,0000,,But you use it every day,
Dialogue: 0,0:14:10.72,0:14:14.50,Default,,0000,0000,0000,,so I think we're sort of facing\Nthe same John Sculley idea
Dialogue: 0,0:14:14.52,0:14:18.18,Default,,0000,0000,0000,,of technology should either be\Ninvisible or beautiful,
Dialogue: 0,0:14:18.20,0:14:22.06,Default,,0000,0000,0000,,and blockchain is kind of\Nneither of those things right now,
Dialogue: 0,0:14:22.08,0:14:26.06,Default,,0000,0000,0000,,so it's better suited\Nfor either really early adopters
Dialogue: 0,0:14:26.08,0:14:28.30,Default,,0000,0000,0000,,who kind of get it and can tinker around
Dialogue: 0,0:14:28.32,0:14:31.30,Default,,0000,0000,0000,,or for finding those best use cases
Dialogue: 0,0:14:31.32,0:14:34.50,Default,,0000,0000,0000,,like identity or asset tracking\Nor smart contracts
Dialogue: 0,0:14:34.52,0:14:38.54,Default,,0000,0000,0000,,that can be used at that level\Nof an enterprise or government.
Dialogue: 0,0:14:38.56,0:14:40.46,Default,,0000,0000,0000,,BG: Thank you. Thanks for coming to TED.
Dialogue: 0,0:14:40.49,0:14:41.70,Default,,0000,0000,0000,,BW: Thanks.
Dialogue: 0,0:14:41.72,0:14:44.12,Default,,0000,0000,0000,,(Applause)