[Music] the politics of algorithms what does
the politics of algorithms what does
the politics of algorithms what does they have to do with one another an
they have to do with one another an
they have to do with one another an algorithm is a mathematical description
algorithm is a mathematical description
algorithm is a mathematical description of a computational process for mapping
of a computational process for mapping
of a computational process for mapping some inputs to some outputs it is very
some inputs to some outputs it is very
some inputs to some outputs it is very platonic object what does it have to do
platonic object what does it have to do
platonic object what does it have to do with the vagaries and discretionary
with the vagaries and discretionary
with the vagaries and discretionary aspects of human politics well it turns
aspects of human politics well it turns
aspects of human politics well it turns out in the concept of cryptocurrencies
out in the concept of cryptocurrencies
out in the concept of cryptocurrencies and Bitcoin I’m mostly going to be
and Bitcoin I’m mostly going to be
and Bitcoin I’m mostly going to be talking specifically about Bitcoin a lot
talking specifically about Bitcoin a lot
talking specifically about Bitcoin a lot and in order to see why I want you to
and in order to see why I want you to
and in order to see why I want you to think about a Bitcoin and to talk about
think about a Bitcoin and to talk about
think about a Bitcoin and to talk about Bitcoin as this mass based
Bitcoin as this mass based
Bitcoin as this mass based cryptocurrency a crypto currency backed
cryptocurrency a crypto currency backed
cryptocurrency a crypto currency backed by mathematics and there’s algorithms
by mathematics and there’s algorithms
by mathematics and there’s algorithms and I would like to clear the
and I would like to clear the
and I would like to clear the misconception that this is only
misconception that this is only
misconception that this is only mathematics and it is only algorithms
mathematics and it is only algorithms
mathematics and it is only algorithms there is a human element
there is a human element
there is a human element these are human systems with human
these are human systems with human
these are human systems with human politics and they are of primary
politics and they are of primary
politics and they are of primary importance in those networks but before
importance in those networks but before
importance in those networks but before I get into that the Keynesian kiddie
I get into that the Keynesian kiddie
I get into that the Keynesian kiddie contests so a nice words is actually
contests so a nice words is actually
contests so a nice words is actually going to be relevant I’m not just trying
going to be relevant I’m not just trying
going to be relevant I’m not just trying to show you cat pictures we’re gonna
to show you cat pictures we’re gonna
to show you cat pictures we’re gonna play a little game and in that game I’m
play a little game and in that game I’m
play a little game and in that game I’m gonna show you nine fluffy pictures and
gonna show you nine fluffy pictures and
gonna show you nine fluffy pictures and and and you have to pick the cutest one
and and you have to pick the cutest one
and and you have to pick the cutest one now this is a positive sum game so we
now this is a positive sum game so we
now this is a positive sum game so we can all be winners tonight there’s one
can all be winners tonight there’s one
can all be winners tonight there’s one issue that I don’t know which one is a
issue that I don’t know which one is a
issue that I don’t know which one is a cutest one so what we’re going to do is
cutest one so what we’re going to do is
cutest one so what we’re going to do is we’re going to pick whichever one most
we’re going to pick whichever one most
we’re going to pick whichever one most people select and that’s going to be the
people select and that’s going to be the
people select and that’s going to be the cutest one and so in order for you to
cutest one and so in order for you to
cutest one and so in order for you to win tonight you have to pick the same
win tonight you have to pick the same
win tonight you have to pick the same picture that you expect most people are
picture that you expect most people are
picture that you expect most people are going to pick this is how you win a
going to pick this is how you win a
going to pick this is how you win a commission contest so without further
commission contest so without further
commission contest so without further ado here’s the kittens and we have a we
ado here’s the kittens and we have a we
ado here’s the kittens and we have a we have a special entrance tonight this is
have a special entrance tonight this is
have a special entrance tonight this is going to date me but number five is
going to date me but number five is
going to date me but number five is Alfie the character from an NBC’s 80s
Alfie the character from an NBC’s 80s
Alfie the character from an NBC’s 80s sitcom and he really likes cats so you
sitcom and he really likes cats so you
sitcom and he really likes cats so you have nine entrants and you have to pick
have nine entrants and you have to pick
have nine entrants and you have to pick a number and once again if you want to
a number and once again if you want to
a number and once again if you want to win you have to pick the number you
win you have to pick the number you
win you have to pick the number you expect most people are going to select
expect most people are going to select
expect most people are going to select so I’m just going to give you a few
so I’m just going to give you a few
so I’m just going to give you a few seconds to think about that
seconds to think about that
seconds to think about that all right so just by show of hands do we
all right so just by show of hands do we
all right so just by show of hands do we have anyone who selected kiddin number
have anyone who selected kiddin number
have anyone who selected kiddin number six so cute kitten with the flowers okay
six so cute kitten with the flowers okay
six so cute kitten with the flowers okay I see a couple of hands here all right
I see a couple of hands here all right
I see a couple of hands here all right it’s good and I’ll cut to the chase
it’s good and I’ll cut to the chase
it’s good and I’ll cut to the chase has anyone selected alpha number five
has anyone selected alpha number five
has anyone selected alpha number five all right okay so the reason that Alf
all right okay so the reason that Alf
all right okay so the reason that Alf can be a winner even though he’s not
can be a winner even though he’s not
can be a winner even though he’s not even a kitten and even though he’s not
even a kitten and even though he’s not
even a kitten and even though he’s not particularly that cute is simply that he
particularly that cute is simply that he
particularly that cute is simply that he is a shelling point so shelling point
is a shelling point so shelling point
is a shelling point so shelling point were introduced by economist Thomas
were introduced by economist Thomas
were introduced by economist Thomas Schelling in the 1960s and the idea is
Schelling in the 1960s and the idea is
Schelling in the 1960s and the idea is that if you have a game where humans
that if you have a game where humans
that if you have a game where humans need to coordinate them something and
need to coordinate them something and
need to coordinate them something and they have a hard time communicating or
they have a hard time communicating or
they have a hard time communicating or maybe communication is expensive they
maybe communication is expensive they
maybe communication is expensive they are going to find a solution and that
are going to find a solution and that
are going to find a solution and that solution is going to be something that
solution is going to be something that
solution is going to be something that seems reasonable to them or natural and
seems reasonable to them or natural and
seems reasonable to them or natural and here the natural answer is a middle one
here the natural answer is a middle one
here the natural answer is a middle one it’s it’s obvious even though he’s not
it’s it’s obvious even though he’s not
it’s it’s obvious even though he’s not nationally cute and he’s not necessarily
nationally cute and he’s not necessarily
nationally cute and he’s not necessarily a kitten so how does that relate to
a kitten so how does that relate to
a kitten so how does that relate to Bitcoin so you know we’ve talked about
Bitcoin so you know we’ve talked about
Bitcoin so you know we’ve talked about Bitcoin it’s this crypto currency one of
Bitcoin it’s this crypto currency one of
Bitcoin it’s this crypto currency one of the most impressive aspect of Bitcoin is
the most impressive aspect of Bitcoin is
the most impressive aspect of Bitcoin is it’s gross in 2010
it’s gross in 2010
it’s gross in 2010 it took 10,000 bitcoins for purchasing
it took 10,000 bitcoins for purchasing
it took 10,000 bitcoins for purchasing two pizzas today this would be worse
two pizzas today this would be worse
two pizzas today this would be worse around 50 million dollars so crazy price
around 50 million dollars so crazy price
around 50 million dollars so crazy price appreciation but what I find fascinating
appreciation but what I find fascinating
appreciation but what I find fascinating is a talk around Bitcoin between I would
is a talk around Bitcoin between I would
is a talk around Bitcoin between I would say 2009 and 2013 14 where it was really
say 2009 and 2013 14 where it was really
say 2009 and 2013 14 where it was really in the context of the US financial
in the context of the US financial
in the context of the US financial crisis and everyone is contrasting it
crisis and everyone is contrasting it
crisis and everyone is contrasting it with human politics so you have all of
with human politics so you have all of
with human politics so you have all of these discretionary actions from the US
these discretionary actions from the US
these discretionary actions from the US Federal Reserve from the US Treasury and
Federal Reserve from the US Treasury and
Federal Reserve from the US Treasury and in contrast of that bitcoin is supposed
in contrast of that bitcoin is supposed
in contrast of that bitcoin is supposed to be this island of pure mathematics
to be this island of pure mathematics
to be this island of pure mathematics where you know nothing gets in the way
where you know nothing gets in the way
where you know nothing gets in the way of the algorithm it’s completely
of the algorithm it’s completely
of the algorithm it’s completely independent from human affairs and you
independent from human affairs and you
independent from human affairs and you see it in the memes at the time that
see it in the memes at the time that
see it in the memes at the time that kind of reflects the sight gas so here
kind of reflects the sight gas so here
kind of reflects the sight gas so here Bitcoin your money is secured by the
Bitcoin your money is secured by the
Bitcoin your money is secured by the laws of the universe so you know here it
laws of the universe so you know here it
laws of the universe so you know here it makes the case that it would take the
makes the case that it would take the
makes the case that it would take the entire energy of a star and some type of
entire energy of a star and some type of
entire energy of a star and some type of sci-fi technology if we ever wanted to
sci-fi technology if we ever wanted to
sci-fi technology if we ever wanted to to break Bitcoin and you know one that’s
to break Bitcoin and you know one that’s
to break Bitcoin and you know one that’s probably not true and two it’s you
probably not true and two it’s you
probably not true and two it’s you it’s really making the point that this
it’s really making the point that this
it’s really making the point that this is really a lot of physics which are
is really a lot of physics which are
is really a lot of physics which are backing this but you know what’s
backing this but you know what’s
backing this but you know what’s stronger than the laws of physics the
stronger than the laws of physics the
stronger than the laws of physics the laws of mathematics so you know bitcoin
laws of mathematics so you know bitcoin
laws of mathematics so you know bitcoin is mass versus governments the currency
is mass versus governments the currency
is mass versus governments the currency built with mathematics if you go and be
built with mathematics if you go and be
built with mathematics if you go and be going on org it will tell you that
going on org it will tell you that
going on org it will tell you that bitcoin is backed by mathematics which
bitcoin is backed by mathematics which
bitcoin is backed by mathematics which normally would mean that you should be
normally would mean that you should be
normally would mean that you should be able to exchange one Bitcoin from one
able to exchange one Bitcoin from one
able to exchange one Bitcoin from one mathematics which doesn’t make a whole
mathematics which doesn’t make a whole
mathematics which doesn’t make a whole lot of sense now one particular view of
lot of sense now one particular view of
lot of sense now one particular view of Bitcoin which is rather well-known now
Bitcoin which is rather well-known now
Bitcoin which is rather well-known now is that Bitcoin and I can have at most
is that Bitcoin and I can have at most
is that Bitcoin and I can have at most 21 million coin it’s not 22 it’s not 20
21 million coin it’s not 22 it’s not 20
21 million coin it’s not 22 it’s not 20 it’s it’s this number and if you look at
it’s it’s this number and if you look at
it’s it’s this number and if you look at this number it’s clearly a human chosen
this number it’s clearly a human chosen
this number it’s clearly a human chosen number right they are special number in
number right they are special number in
number right they are special number in mathematics and like a hundred xx
mathematics and like a hundred xx
mathematics and like a hundred xx decision they’re special numbers in
decision they’re special numbers in
decision they’re special numbers in physics 21 million is human chosen and
physics 21 million is human chosen and
physics 21 million is human chosen and it could have been 42 it could have been
it could have been 42 it could have been
it could have been 42 it could have been 210 and that wouldn’t make a big
210 and that wouldn’t make a big
210 and that wouldn’t make a big difference the only difference it make
difference the only difference it make
difference the only difference it make would be the same thing as if you’re
would be the same thing as if you’re
would be the same thing as if you’re counting in dollars or cents so that
counting in dollars or cents so that
counting in dollars or cents so that doesn’t make a big difference but
doesn’t make a big difference but
doesn’t make a big difference but somehow the network enforces that now
somehow the network enforces that now
somehow the network enforces that now it’s not the laws of mathematics which
it’s not the laws of mathematics which
it’s not the laws of mathematics which are gonna be enforcing this human chosen
are gonna be enforcing this human chosen
are gonna be enforcing this human chosen number it’s not the laws of physics the
number it’s not the laws of physics the
number it’s not the laws of physics the reason that between can have 21 million
reason that between can have 21 million
reason that between can have 21 million coin in not 22 is that if I create my
coin in not 22 is that if I create my
coin in not 22 is that if I create my own version of Bitcoin and I come to you
own version of Bitcoin and I come to you
own version of Bitcoin and I come to you and I say hey I have this new version of
and I say hey I have this new version of
and I say hey I have this new version of Bitcoin it just so happens that it has
Bitcoin it just so happens that it has
Bitcoin it just so happens that it has different rules well you’re not gonna
different rules well you’re not gonna
different rules well you’re not gonna accept it you’re gonna say that’s a
accept it you’re gonna say that’s a
accept it you’re gonna say that’s a Bitcoin that’s not that’s not in a Roth
Bitcoin that’s not that’s not in a Roth
Bitcoin that’s not that’s not in a Roth set that we all agreed upon and so the
set that we all agreed upon and so the
set that we all agreed upon and so the value of a Bitcoin to you is predicated
value of a Bitcoin to you is predicated
value of a Bitcoin to you is predicated on the propensity of other people to
on the propensity of other people to
on the propensity of other people to actually accept it and so the mechanism
actually accept it and so the mechanism
actually accept it and so the mechanism that enforces this type of properties on
that enforces this type of properties on
that enforces this type of properties on the network is the same mechanism that
the network is the same mechanism that
the network is the same mechanism that means that everyone is going to pay a
means that everyone is going to pay a
means that everyone is going to pay a certain picture in a contest it’s based
certain picture in a contest it’s based
certain picture in a contest it’s based on a shilling point and it’s based on a
on a shilling point and it’s based on a
on a shilling point and it’s based on a human and very political decision now it
human and very political decision now it
human and very political decision now it can be stable it can work like Bitcoin
can be stable it can work like Bitcoin
can be stable it can work like Bitcoin is working Beast Khan has been doing
is working Beast Khan has been doing
is working Beast Khan has been doing fantastically but it’s a misconception
fantastically but it’s a misconception
fantastically but it’s a misconception to assume that this is enforced by
to assume that this is enforced by
to assume that this is enforced by mathematics mathematics is a backbone
mathematics mathematics is a backbone
mathematics mathematics is a backbone but in the end it’s a human system so
but in the end it’s a human system so
but in the end it’s a human system so the French this is Michel Foucault he’s
the French this is Michel Foucault he’s
the French this is Michel Foucault he’s a French post structuralist and
a French post structuralist and
a French post structuralist and post-structuralist would tell you that
post-structuralist would tell you that
post-structuralist would tell you that everything is a social construct
everything is a social construct
everything is a social construct mathematics is a social construct physic
mathematics is a social construct physic
mathematics is a social construct physic is a social construct and I don’t think
is a social construct and I don’t think
is a social construct and I don’t think they’re right or if the
they’re right or if the
they’re right or if the are there writing some trivial sense but
are there writing some trivial sense but
are there writing some trivial sense but for Bitcoin and for money and
for Bitcoin and for money and
for Bitcoin and for money and cryptocurrencies in general I think they
cryptocurrencies in general I think they
cryptocurrencies in general I think they would be right in an interesting sense
would be right in an interesting sense
would be right in an interesting sense yes
yes
yes Bitcoin has algorithms and yes it has
Bitcoin has algorithms and yes it has
Bitcoin has algorithms and yes it has mathematics but Nene and what you really
mathematics but Nene and what you really
mathematics but Nene and what you really makes the network is a social construct
makes the network is a social construct
makes the network is a social construct around it it’s the shared vision that a
around it it’s the shared vision that a
around it it’s the shared vision that a lot of people have using this network of
lot of people have using this network of
lot of people have using this network of saying yes we are going to ascribe value
saying yes we are going to ascribe value
saying yes we are going to ascribe value to this and yes we’re going to go buy
to this and yes we’re going to go buy
to this and yes we’re going to go buy this set of rules and not by any other
this set of rules and not by any other
this set of rules and not by any other set of rules this is what actually makes
set of rules this is what actually makes
set of rules this is what actually makes Bitcoin so why does any of this matter
Bitcoin so why does any of this matter
Bitcoin so why does any of this matter why do you know why do we care if it’s
why do you know why do we care if it’s
why do you know why do we care if it’s working you know why why make this
working you know why why make this
working you know why why make this distinction it is just pedantry on my
distinction it is just pedantry on my
distinction it is just pedantry on my part well not quite
part well not quite
part well not quite so it gets interesting when you look at
so it gets interesting when you look at
so it gets interesting when you look at innovation so Bitcoin the beacon paper
innovation so Bitcoin the beacon paper
innovation so Bitcoin the beacon paper came out of 2008 Network launched in
came out of 2008 Network launched in
came out of 2008 Network launched in 2009 there’s been a lot of innovation
2009 there’s been a lot of innovation
2009 there’s been a lot of innovation since then because obviously academics
since then because obviously academics
since then because obviously academics saw this great innovation and started
saw this great innovation and started
saw this great innovation and started working at it and there were a lot of
working at it and there were a lot of
working at it and there were a lot of proposals so here’s just three I like
proposals so here’s just three I like
proposals so here’s just three I like one is called Bitcoin and gee it’s an
one is called Bitcoin and gee it’s an
one is called Bitcoin and gee it’s an academic proposal for increasing the
academic proposal for increasing the
academic proposal for increasing the throughput that’s the amount of
throughput that’s the amount of
throughput that’s the amount of transactions per second for Bitcoin
transactions per second for Bitcoin
transactions per second for Bitcoin about 10 X to 100x Oh near no one’s
about 10 X to 100x Oh near no one’s
about 10 X to 100x Oh near no one’s talking about it zero cash was an
talking about it zero cash was an
talking about it zero cash was an academic paper it gave rise to a
academic paper it gave rise to a
academic paper it gave rise to a cryptocurrency called e cash now which
cryptocurrency called e cash now which
cryptocurrency called e cash now which preserves privacy it turns out that if
preserves privacy it turns out that if
preserves privacy it turns out that if you make a transaction in Bitcoin the
you make a transaction in Bitcoin the
you make a transaction in Bitcoin the entire world can see it so that’s you
entire world can see it so that’s you
entire world can see it so that’s you know that’s an interesting development
know that’s an interesting development
know that’s an interesting development or a cerium which implemented smart
or a cerium which implemented smart
or a cerium which implemented smart contracts which are these electronic
contracts which are these electronic
contracts which are these electronic agreements that can be enforced in the
agreements that can be enforced in the
agreements that can be enforced in the same way that the network enforces
same way that the network enforces
same way that the network enforces transactions if you go to a Archive
transactions if you go to a Archive
transactions if you go to a Archive which is the largest repository of
which is the largest repository of
which is the largest repository of scientific paper now you’ll see this you
scientific paper now you’ll see this you
scientific paper now you’ll see this you know great increase of papers mentioning
know great increase of papers mentioning
know great increase of papers mentioning Bitcoin so there’s a lot of active
Bitcoin so there’s a lot of active
Bitcoin so there’s a lot of active research why does it matter well unless
research why does it matter well unless
research why does it matter well unless Bitcoin was perfect from inception you
Bitcoin was perfect from inception you
Bitcoin was perfect from inception you might want to change the rule sets you
might want to change the rule sets you
might want to change the rule sets you might want to make the rule sets better
might want to make the rule sets better
might want to make the rule sets better because you have new ideas but how do
because you have new ideas but how do
because you have new ideas but how do you do this let’s say that we were all
you do this let’s say that we were all
you do this let’s say that we were all on focused on number 5 and all of the
on focused on number 5 and all of the
on focused on number 5 and all of the sudden we actually you know what we
sudden we actually you know what we
sudden we actually you know what we would be better off having chosen number
would be better off having chosen number
would be better off having chosen number 6 right how do you actually move that
6 right how do you actually move that
6 right how do you actually move that shilling point well there’s two way we
shilling point well there’s two way we
shilling point well there’s two way we can do it one way is I’m on stage I
can do it one way is I’m on stage I
can do it one way is I’m on stage I could tell everyone hey everyone you
could tell everyone hey everyone you
could tell everyone hey everyone you know everyone pick number six
know everyone pick number six
know everyone pick number six we’re gonna win by picking number six
we’re gonna win by picking number six
we’re gonna win by picking number six and because I have a microphone I have a
and because I have a microphone I have a
and because I have a microphone I have a loud voice made me I’m able to do that
loud voice made me I’m able to do that
loud voice made me I’m able to do that or we can try to have these informal
or we can try to have these informal
or we can try to have these informal discussions but it’s it’s a messy
discussions but it’s it’s a messy
discussions but it’s it’s a messy process and what typically happens when
process and what typically happens when
process and what typically happens when you try to have innovation in the system
you try to have innovation in the system
you try to have innovation in the system it’s something called a fork so the idea
it’s something called a fork so the idea
it’s something called a fork so the idea of a fork is that you start with one
of a fork is that you start with one
of a fork is that you start with one system and then someone say hey you know
system and then someone say hey you know
system and then someone say hey you know what we should move from Alpha and we
what we should move from Alpha and we
what we should move from Alpha and we should you know we should move to kiddin
should you know we should move to kiddin
should you know we should move to kiddin number six because that’s you know
number six because that’s you know
number six because that’s you know that’s clearly a better ID and we better
that’s clearly a better ID and we better
that’s clearly a better ID and we better served and some people are gonna say yes
served and some people are gonna say yes
served and some people are gonna say yes you know what six is a good idea six is
you know what six is a good idea six is
you know what six is a good idea six is legitimate this is what we should all be
legitimate this is what we should all be
legitimate this is what we should all be focusing on but other people will say no
focusing on but other people will say no
focusing on but other people will say no actually I prefer the other version and
actually I prefer the other version and
actually I prefer the other version and so the value that was in your network is
so the value that was in your network is
so the value that was in your network is now going to be split into two one part
now going to be split into two one part
now going to be split into two one part of that value is going to go to the
of that value is going to go to the
of that value is going to go to the people who are looking at one network as
people who are looking at one network as
people who are looking at one network as as legitimate and the other to the other
as legitimate and the other to the other
as legitimate and the other to the other network and it’s not going to be exactly
network and it’s not going to be exactly
network and it’s not going to be exactly zero one because there’s always
zero one because there’s always
zero one because there’s always uncertainty things can happen so
uncertainty things can happen so
uncertainty things can happen so typically when you see Forks it’s tended
typically when you see Forks it’s tended
typically when you see Forks it’s tended to be something like 10% 90%
to be something like 10% 90%
to be something like 10% 90% historically but it’s still what is
historically but it’s still what is
historically but it’s still what is going to capture most of the value now
going to capture most of the value now
going to capture most of the value now what do they capture the value best
what do they capture the value best
what do they capture the value best based on is it’s the best Fork who is
based on is it’s the best Fork who is
based on is it’s the best Fork who is going to win is it the fork that’s the
going to win is it the fork that’s the
going to win is it the fork that’s the most obvious I would argue that at least
most obvious I would argue that at least
most obvious I would argue that at least right now the main criterion for picking
right now the main criterion for picking
right now the main criterion for picking a fork is legitimacy and as a use case
a fork is legitimacy and as a use case
a fork is legitimacy and as a use case there’s been a debate reaching in a
there’s been a debate reaching in a
there’s been a debate reaching in a Bitcoin community for about a year and a
Bitcoin community for about a year and a
Bitcoin community for about a year and a half now on the size of blocks so as you
half now on the size of blocks so as you
half now on the size of blocks so as you may know a Bitcoin is based on a
may know a Bitcoin is based on a
may know a Bitcoin is based on a blockchain which is instead a structure
blockchain which is instead a structure
blockchain which is instead a structure that produces a block every about 10
that produces a block every about 10
that produces a block every about 10 minutes and blocks have traditionally
minutes and blocks have traditionally
minutes and blocks have traditionally been this 1 megabyte files that contain
been this 1 megabyte files that contain
been this 1 megabyte files that contain transaction now there’s been one faction
transaction now there’s been one faction
transaction now there’s been one faction in a between community who’s been saying
in a between community who’s been saying
in a between community who’s been saying hey if we owned if only we had bigger
hey if we owned if only we had bigger
hey if we owned if only we had bigger blocks then we could have more
blocks then we could have more
blocks then we could have more transactions and if this would be great
transactions and if this would be great
transactions and if this would be great because we need to have more
because we need to have more
because we need to have more transactions well the other side has
transactions well the other side has
transactions well the other side has been saying well you know that may be
been saying well you know that may be
been saying well you know that may be true but if we do that our network is
true but if we do that our network is
true but if we do that our network is going to be less decentralized some
going to be less decentralized some
going to be less decentralized some parties are gonna have more influence
parties are gonna have more influence
parties are gonna have more influence than others and when I find fascinating
than others and when I find fascinating
than others and when I find fascinating is that in a lot of these debates both
is that in a lot of these debates both
is that in a lot of these debates both sides were quoting Satoshi Nakamoto the
sides were quoting Satoshi Nakamoto the
sides were quoting Satoshi Nakamoto the pseudonymous
pseudonymous
pseudonymous founder of Bitcoin to each other
founder of Bitcoin to each other
founder of Bitcoin to each other now Satoshi has not been seen online for
now Satoshi has not been seen online for
now Satoshi has not been seen online for the past few years but they were saying
the past few years but they were saying
the past few years but they were saying hey clearly in the vision of Satoshi we
hey clearly in the vision of Satoshi we
hey clearly in the vision of Satoshi we need to have big blocks and the other
need to have big blocks and the other
need to have big blocks and the other one who say no no clearly look at this
one who say no no clearly look at this
one who say no no clearly look at this clearly we should have small blocks and
clearly we should have small blocks and
clearly we should have small blocks and so they were engaging in this whole
so they were engaging in this whole
so they were engaging in this whole hermeneutics for weird reasons so one
hermeneutics for weird reasons so one
hermeneutics for weird reasons so one possible reason might be that it’s
possible reason might be that it’s
possible reason might be that it’s simply argument from Authority they’re
simply argument from Authority they’re
simply argument from Authority they’re saying well clearly said she knew what
saying well clearly said she knew what
saying well clearly said she knew what they were doing and so they would have a
they were doing and so they would have a
they were doing and so they would have a good opinion on the matter but there’s
good opinion on the matter but there’s
good opinion on the matter but there’s also a lot of very smart people looking
also a lot of very smart people looking
also a lot of very smart people looking at because there’s a lot of very smart
at because there’s a lot of very smart
at because there’s a lot of very smart opinion so I don’t think this is what’s
opinion so I don’t think this is what’s
opinion so I don’t think this is what’s happening what’s happening is a play for
happening what’s happening is a play for
happening what’s happening is a play for legitimacy it’s two sides saying I’m the
legitimacy it’s two sides saying I’m the
legitimacy it’s two sides saying I’m the legitimate branch and so I want to take
legitimate branch and so I want to take
legitimate branch and so I want to take the economic value with me whereas the
the economic value with me whereas the
the economic value with me whereas the other side said oh no no no no we’re the
other side said oh no no no no we’re the
other side said oh no no no no we’re the legitimate branch we should have a value
legitimate branch we should have a value
legitimate branch we should have a value now we’ve moved completely away from
now we’ve moved completely away from
now we’ve moved completely away from algorithm we’ve moved away from
algorithm we’ve moved away from
algorithm we’ve moved away from mathematics but what’s going to
mathematics but what’s going to
mathematics but what’s going to determine the rules of this ledger is
determine the rules of this ledger is
determine the rules of this ledger is the interpretation of the right of the
the interpretation of the right of the
the interpretation of the right of the writing of a paper reading 9 years ago
writing of a paper reading 9 years ago
writing of a paper reading 9 years ago this this is completely the realm of
this this is completely the realm of
this this is completely the realm of politics and the human element is
politics and the human element is
politics and the human element is nothing to do with algorithm it’s
nothing to do with algorithm it’s
nothing to do with algorithm it’s nothing to do with math the dynamic at
nothing to do with math the dynamic at
nothing to do with math the dynamic at play between those groups he sadly
play between those groups he sadly
play between those groups he sadly captured in a game known as the game of
captured in a game known as the game of
captured in a game known as the game of chicken so again this is gonna date me
chicken so again this is gonna date me
chicken so again this is gonna date me this is James Dean rebel without a cause
this is James Dean rebel without a cause
this is James Dean rebel without a cause and so in a game of chicken you have two
and so in a game of chicken you have two
and so in a game of chicken you have two cars and they’re racing toward each
cars and they’re racing toward each
cars and they’re racing toward each other and you win the game by not
other and you win the game by not
other and you win the game by not swerving because the other side who is
swerving because the other side who is
swerving because the other side who is slightly less crazy than you is gonna
slightly less crazy than you is gonna
slightly less crazy than you is gonna swerve before and the problem with a
swerve before and the problem with a
swerve before and the problem with a game like this is that if both sides are
game like this is that if both sides are
game like this is that if both sides are you know equally and willing to swerve
you know equally and willing to swerve
you know equally and willing to swerve the majors crash towards one another so
the majors crash towards one another so
the majors crash towards one another so you have the same dynamic at playing a
you have the same dynamic at playing a
you have the same dynamic at playing a fork because you may not want to fork
fork because you may not want to fork
fork because you may not want to fork you don’t want to divide the the network
you don’t want to divide the the network
you don’t want to divide the the network which you primarily want is you want to
which you primarily want is you want to
which you primarily want is you want to steer it but you’re gonna try to
steer it but you’re gonna try to
steer it but you’re gonna try to convince the other side that no matter
convince the other side that no matter
convince the other side that no matter what you’re gonna try to you know you’re
what you’re gonna try to you know you’re
what you’re gonna try to you know you’re gonna go your own way no matter what
gonna go your own way no matter what
gonna go your own way no matter what you’re gonna keep going in a straight
you’re gonna keep going in a straight
you’re gonna keep going in a straight line and both sides do that and it’s
line and both sides do that and it’s
line and both sides do that and it’s really not an effective way of doing
really not an effective way of doing
really not an effective way of doing governance so what I’ve been working on
governance so what I’ve been working on
governance so what I’ve been working on is formalized governance for blockchain
is formalized governance for blockchain
is formalized governance for blockchain and cryptocurrencies
and cryptocurrencies
and cryptocurrencies and so just a word about governance so
and so just a word about governance so
and so just a word about governance so one way to think about it is imagine in
one way to think about it is imagine in
one way to think about it is imagine in your own an apartment building not only
your own an apartment building not only
your own an apartment building not only apartment built a partner
apartment built a partner
apartment built a partner in an apartment building so you own your
in an apartment building so you own your
in an apartment building so you own your apartment everything you do in your
apartment everything you do in your
apartment everything you do in your apartment is your own business I don’t
apartment is your own business I don’t
apartment is your own business I don’t care the neighbors hopefully don’t care
care the neighbors hopefully don’t care
care the neighbors hopefully don’t care but what happens when you need to decide
but what happens when you need to decide
but what happens when you need to decide when the heat should be turned on for
when the heat should be turned on for
when the heat should be turned on for the building or should the fast choose
the building or should the fast choose
the building or should the fast choose the facade of the building be repainted
the facade of the building be repainted
the facade of the building be repainted you need a way of making these decisions
you need a way of making these decisions
you need a way of making these decisions which are going to engage the common
which are going to engage the common
which are going to engage the common parts of the building and in order to do
parts of the building and in order to do
parts of the building and in order to do that you need to have governance now we
that you need to have governance now we
that you need to have governance now we have several options you can do nothing
have several options you can do nothing
have several options you can do nothing you can say we don’t like governance we
you can say we don’t like governance we
you can say we don’t like governance we don’t want to have governance we own our
don’t want to have governance we own our
don’t want to have governance we own our apartment and that’s enough and that may
apartment and that’s enough and that may
apartment and that’s enough and that may be fine but then the paint is going to
be fine but then the paint is going to
be fine but then the paint is going to chip on your facade and you’re not gonna
chip on your facade and you’re not gonna
chip on your facade and you’re not gonna have heating your building in the winter
have heating your building in the winter
have heating your building in the winter that’s not that great you could try not
that’s not that great you could try not
that’s not that great you could try not having any process and just letting
having any process and just letting
having any process and just letting whoever yell the loudest make those
whoever yell the loudest make those
whoever yell the loudest make those decisions but again it’s still gonna
decisions but again it’s still gonna
decisions but again it’s still gonna engage your resources that’s not
engage your resources that’s not
engage your resources that’s not necessarily what you want so what can we
necessarily what you want so what can we
necessarily what you want so what can we do well instead of having all these
do well instead of having all these
do well instead of having all these informal processes we can formalize we
informal processes we can formalize we
informal processes we can formalize we can create rules for saying we have come
can create rules for saying we have come
can create rules for saying we have come in parts and there are common parts in
in parts and there are common parts in
in parts and there are common parts in block chains one you know the most
block chains one you know the most
block chains one you know the most important of which being innovation so
important of which being innovation so
important of which being innovation so we all agree that we need to innovate we
we all agree that we need to innovate we
we all agree that we need to innovate we need to introduce some time changes in a
need to introduce some time changes in a
need to introduce some time changes in a platform but if we’re gonna do that we
platform but if we’re gonna do that we
platform but if we’re gonna do that we need to have a process because if we
need to have a process because if we
need to have a process because if we don’t have a process it’s going to be
don’t have a process it’s going to be
don’t have a process it’s going to be determined by completely random means
determined by completely random means
determined by completely random means that have to do with shelling points
that have to do with shelling points
that have to do with shelling points instead of having to do with merits so
instead of having to do with merits so
instead of having to do with merits so one simple way of doing this is simply
one simple way of doing this is simply
one simple way of doing this is simply voting you can have you know block shins
voting you can have you know block shins
voting you can have you know block shins or great records keepers they’re a great
or great records keepers they’re a great
or great records keepers they’re a great way of coordinating action and so you
way of coordinating action and so you
way of coordinating action and so you can have a vote you can say to people
can have a vote you can say to people
can have a vote you can say to people okay we’re gonna have a new proposal for
okay we’re gonna have a new proposal for
okay we’re gonna have a new proposal for innovation do you actually want to do
innovation do you actually want to do
innovation do you actually want to do this and it’s very important for people
this and it’s very important for people
this and it’s very important for people to be able to express their intention
to be able to express their intention
to be able to express their intention without having to try to guess what
without having to try to guess what
without having to try to guess what other people are doing you want people
other people are doing you want people
other people are doing you want people to tell them this is what I prefer and
to tell them this is what I prefer and
to tell them this is what I prefer and not this is what I expect everyone else
not this is what I expect everyone else
not this is what I expect everyone else is going to prefer now it’s a very it’s
is going to prefer now it’s a very it’s
is going to prefer now it’s a very it’s a subtle distinction but it makes a
a subtle distinction but it makes a
a subtle distinction but it makes a whole world of difference so if I just
whole world of difference so if I just
whole world of difference so if I just want to leave one ID one important idea
want to leave one ID one important idea
want to leave one ID one important idea tonight is that yes there are algorithms
tonight is that yes there are algorithms
tonight is that yes there are algorithms at play there are mathematics but in the
at play there are mathematics but in the
at play there are mathematics but in the end we’re dealing with human systems
end we’re dealing with human systems
end we’re dealing with human systems right cryptocurrencies block chains they
right cryptocurrencies block chains they
right cryptocurrencies block chains they are social construct the algorithm is
are social construct the algorithm is
are social construct the algorithm is just a scaffolding upon which you flesh
just a scaffolding upon which you flesh
just a scaffolding upon which you flesh out all of these human activities so
out all of these human activities so
out all of these human activities so when designing
when designing
when designing systems think about the human element
systems think about the human element
systems think about the human element don’t think of them purely as technology
don’t think of them purely as technology
don’t think of them purely as technology think of them as enablers of social
think of them as enablers of social
think of them as enablers of social structure and only Suzette will be able
structure and only Suzette will be able
structure and only Suzette will be able to really leverage the coordinating
to really leverage the coordinating
to really leverage the coordinating abilities of blockchains and related
abilities of blockchains and related
abilities of blockchains and related technologies
technologies
technologies [Applause]
”
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