hello i’m george dawn of a senior here at HPA and today i’m going to tell you a
at HPA and today i’m going to tell you a
at HPA and today i’m going to tell you a story about Alice Bob and bananas Alice
story about Alice Bob and bananas Alice
story about Alice Bob and bananas Alice and Bob are sitting at a lunch table
and Bob are sitting at a lunch table
and Bob are sitting at a lunch table Alice has one banana and she wants to
Alice has one banana and she wants to
Alice has one banana and she wants to give it to Bob so Alice gives Bob the
give it to Bob so Alice gives Bob the
give it to Bob so Alice gives Bob the banana she placed it in his hand and
banana she placed it in his hand and
banana she placed it in his hand and gives it to him
gives it to him
gives it to him Alice now has zero bananas and Bob has
Alice now has zero bananas and Bob has
Alice now has zero bananas and Bob has one we saw what happened it was a
one we saw what happened it was a
one we saw what happened it was a physical transaction Alison Bob really
physical transaction Alison Bob really
physical transaction Alison Bob really didn’t need a friend or a witness to
didn’t need a friend or a witness to
didn’t need a friend or a witness to prove that the transaction happened they
prove that the transaction happened they
prove that the transaction happened they both knew the transaction occurred so
both knew the transaction occurred so
both knew the transaction occurred so their friend could be chatting away
their friend could be chatting away
their friend could be chatting away happily with someone else the
happily with someone else the
happily with someone else the transaction just occurred is what we
transaction just occurred is what we
transaction just occurred is what we know to be very standard transaction for
know to be very standard transaction for
know to be very standard transaction for centuries a personal barter so on give
centuries a personal barter so on give
centuries a personal barter so on give something to another person and they are
something to another person and they are
something to another person and they are both happy Alice can’t give more bananas
both happy Alice can’t give more bananas
both happy Alice can’t give more bananas then she has because there are no more
then she has because there are no more
then she has because there are no more in her possession Bob can’t receive more
in her possession Bob can’t receive more
in her possession Bob can’t receive more than one banana because Alice has no
than one banana because Alice has no
than one banana because Alice has no more to give Bob can even give his
more to give Bob can even give his
more to give Bob can even give his banana to someone else if he chooses to
banana to someone else if he chooses to
banana to someone else if he chooses to do so but in this case no matter what
do so but in this case no matter what
do so but in this case no matter what happens there’s only one banana and in
happens there’s only one banana and in
happens there’s only one banana and in our world Alice and Bob would use the
our world Alice and Bob would use the
our world Alice and Bob would use the dollar to make the physical transaction
dollar to make the physical transaction
dollar to make the physical transaction so if I was wanted to give Bob a dollar
so if I was wanted to give Bob a dollar
so if I was wanted to give Bob a dollar she would use something that has a
she would use something that has a
she would use something that has a trustable ledger a ledger is a large
trustable ledger a ledger is a large
trustable ledger a ledger is a large collection of data in which transactions
collection of data in which transactions
collection of data in which transactions and bounces of dollars or perhaps
and bounces of dollars or perhaps
and bounces of dollars or perhaps bananas are recorded for both Alice and
bananas are recorded for both Alice and
bananas are recorded for both Alice and Bob this transaction would become record
Bob this transaction would become record
Bob this transaction would become record in a ledger that some institution
in a ledger that some institution
in a ledger that some institution controls in this way if Alice and Bob
controls in this way if Alice and Bob
controls in this way if Alice and Bob trust whomever controls the institution
trust whomever controls the institution
trust whomever controls the institution they know their transactions will be
they know their transactions will be
they know their transactions will be verifiable even if Alice isn’t at the
verifiable even if Alice isn’t at the
verifiable even if Alice isn’t at the lunch table and doesn’t know Bob she
lunch table and doesn’t know Bob she
lunch table and doesn’t know Bob she will be certain that the transaction
will be certain that the transaction
will be certain that the transaction will be recorded in the ledger
will be recorded in the ledger
will be recorded in the ledger and so Alice will no longer have the
and so Alice will no longer have the
and so Alice will no longer have the dollar and now Bob will what if the
dollar and now Bob will what if the
dollar and now Bob will what if the dollar
dollar
dollar or should I say banana
or should I say banana
or should I say banana was virtual so Alice wants to give Bob a
was virtual so Alice wants to give Bob a
was virtual so Alice wants to give Bob a virtual banana so Alice sends Bob her
virtual banana so Alice sends Bob her
virtual banana so Alice sends Bob her virtual banana
well okay Alice how did you send it if
well okay Alice how did you send it if Alice sent his virtual banana through an
Alice sent his virtual banana through an
Alice sent his virtual banana through an email to Bob then how does Bob know that
email to Bob then how does Bob know that
email to Bob then how does Bob know that he received an exact banana and not just
he received an exact banana and not just
he received an exact banana and not just a copy
bob can confirm that alice has discarded
bob can confirm that alice has discarded her virtual copy of the banana so Bob
her virtual copy of the banana so Bob
her virtual copy of the banana so Bob isn’t sure the banana his he has
isn’t sure the banana his he has
isn’t sure the banana his he has received is actually worth anything what
received is actually worth anything what
received is actually worth anything what if Bob tries to send that virtual banana
if Bob tries to send that virtual banana
if Bob tries to send that virtual banana to his friends would they trust Bob
to his friends would they trust Bob
to his friends would they trust Bob ensured that Alice discarded her copy
ensured that Alice discarded her copy
ensured that Alice discarded her copy and that Bob would also discard his or
and that Bob would also discard his or
and that Bob would also discard his or perhaps I was downloaded that virtual
perhaps I was downloaded that virtual
perhaps I was downloaded that virtual banana from the same place that a
banana from the same place that a
banana from the same place that a hundred people got that exact same copy
hundred people got that exact same copy
hundred people got that exact same copy of it then what does the verb then what
of it then what does the verb then what
of it then what does the verb then what value does the virtual banana even have
value does the virtual banana even have
value does the virtual banana even have Wow well this just got very complex
looks like a virtual transaction is
looks like a virtual transaction is nothing like a physical transaction the
nothing like a physical transaction the
nothing like a physical transaction the problem that Alice encountered is called
problem that Alice encountered is called
problem that Alice encountered is called the double spending problem a bunch of
the double spending problem a bunch of
the double spending problem a bunch of very very smart folks ranging from
very very smart folks ranging from
very very smart folks ranging from economists to computer scientists have
economists to computer scientists have
economists to computer scientists have been trying to solve the double spending
been trying to solve the double spending
been trying to solve the double spending problem for centuries
problem for centuries
problem for centuries how can Alice and Bob both ensure that
how can Alice and Bob both ensure that
how can Alice and Bob both ensure that one virtual banana is not sent twice or
one virtual banana is not sent twice or
one virtual banana is not sent twice or many times how can the data of the
many times how can the data of the
many times how can the data of the virtual banana be removed from Alice in
virtual banana be removed from Alice in
virtual banana be removed from Alice in a way that Bob knows is trustable
a way that Bob knows is trustable
a way that Bob knows is trustable well let’s see if we can figure it out
well let’s see if we can figure it out
well let’s see if we can figure it out if Alice and Bob use some sort of
if Alice and Bob use some sort of
if Alice and Bob use some sort of digital ledger much like a physical one
digital ledger much like a physical one
digital ledger much like a physical one well that haven’t we solved the problem
well that haven’t we solved the problem
well that haven’t we solved the problem now Alice and Bob can transact bananas
now Alice and Bob can transact bananas
now Alice and Bob can transact bananas virtually as much as they’d like whoever
virtually as much as they’d like whoever
virtually as much as they’d like whoever controls the ledger would be in full
controls the ledger would be in full
controls the ledger would be in full control and of also everyone using it or
control and of also everyone using it or
control and of also everyone using it or also any transactions coming in and out
also any transactions coming in and out
also any transactions coming in and out of the ledger would also have to trust
of the ledger would also have to trust
of the ledger would also have to trust the controller well that’s just great
the controller well that’s just great
the controller well that’s just great there are some problems with this
there are some problems with this
there are some problems with this solution what if the controller of that
solution what if the controller of that
solution what if the controller of that ledger just made more bananas or perhaps
ledger just made more bananas or perhaps
ledger just made more bananas or perhaps gave bananas to someone without a proof
gave bananas to someone without a proof
gave bananas to someone without a proof of transaction that doesn’t sound like
of transaction that doesn’t sound like
of transaction that doesn’t sound like someone that Alice or Bob would trust in
someone that Alice or Bob would trust in
someone that Alice or Bob would trust in the first place just knowing that the
the first place just knowing that the
the first place just knowing that the person controlling the ledger would be
person controlling the ledger would be
person controlling the ledger would be able to do that to the data what if the
able to do that to the data what if the
able to do that to the data what if the person controlling Pledger no longer
person controlling Pledger no longer
person controlling Pledger no longer wants to control it or just simply goes
wants to control it or just simply goes
wants to control it or just simply goes out of business and poor Alice this
out of business and poor Alice this
out of business and poor Alice this entire process is so complicated
entire process is so complicated
entire process is so complicated what if Alice just wants to give Bob a
what if Alice just wants to give Bob a
what if Alice just wants to give Bob a virtual banana the normal way can Alice
virtual banana the normal way can Alice
virtual banana the normal way can Alice and Bob replicate the lunch table
and Bob replicate the lunch table
and Bob replicate the lunch table transaction in the same way virtually
transaction in the same way virtually
transaction in the same way virtually okay well here’s an idea what if we gave
okay well here’s an idea what if we gave
okay well here’s an idea what if we gave this ledger to both Alice and Bob what
this ledger to both Alice and Bob what
this ledger to both Alice and Bob what if we gave this ledger to everyone what
if we gave this ledger to everyone what
if we gave this ledger to everyone what if everyone had a virtual copy of
if everyone had a virtual copy of
if everyone had a virtual copy of decider on their computer and they all
decider on their computer and they all
decider on their computer and they all kept track of all the transactions this
kept track of all the transactions this
kept track of all the transactions this ledger would have to contain all
ledger would have to contain all
ledger would have to contain all transactions of bananas that have ever
transactions of bananas that have ever
transactions of bananas that have ever occurred Alice or Bob or any other
occurred Alice or Bob or any other
occurred Alice or Bob or any other person wouldn’t be able to cheat the
person wouldn’t be able to cheat the
person wouldn’t be able to cheat the ledger since it wouldn’t agree with
ledger since it wouldn’t agree with
ledger since it wouldn’t agree with everyone else
everyone else
everyone else in the system and this ledger wouldn’t
in the system and this ledger wouldn’t
in the system and this ledger wouldn’t would be very difficult to destroy
would be very difficult to destroy
would be very difficult to destroy especially if it became huge with many
especially if it became huge with many
especially if it became huge with many people using it this ledger system had a
people using it this ledger system had a
people using it this ledger system had a defined set of rules from the beginning
defined set of rules from the beginning
defined set of rules from the beginning everyone transacting within the ledger
everyone transacting within the ledger
everyone transacting within the ledger can know how virtual bananas are
can know how virtual bananas are
can know how virtual bananas are transacted if everyone within the ledger
transacted if everyone within the ledger
transacted if everyone within the ledger agrees the set of rules then everyone
agrees the set of rules then everyone
agrees the set of rules then everyone has trust of all transactions of all
has trust of all transactions of all
has trust of all transactions of all virtual bananas and so there is not one
virtual bananas and so there is not one
virtual bananas and so there is not one person that has full control over this
person that has full control over this
person that has full control over this virtual ledger Alice Bob and all their
virtual ledger Alice Bob and all their
virtual ledger Alice Bob and all their people use consensus through algorithms
people use consensus through algorithms
people use consensus through algorithms to confirm that transactions are
to confirm that transactions are
to confirm that transactions are legitimate this ledger is decentralized
legitimate this ledger is decentralized
legitimate this ledger is decentralized you two could transact virtual bananas
you two could transact virtual bananas
you two could transact virtual bananas with Alice and Bob in the ledger network
with Alice and Bob in the ledger network
with Alice and Bob in the ledger network and make sure the yours and everyone
and make sure the yours and everyone
and make sure the yours and everyone else’s transactions are legitimate what
else’s transactions are legitimate what
else’s transactions are legitimate what if wait a second haven’t we solved the
if wait a second haven’t we solved the
if wait a second haven’t we solved the problem and oh that solution exists
problem and oh that solution exists
problem and oh that solution exists right now it’s called the Bitcoin
right now it’s called the Bitcoin
right now it’s called the Bitcoin protocol there is no double spending in
protocol there is no double spending in
protocol there is no double spending in the Bitcoin ledger there there is no one
the Bitcoin ledger there there is no one
the Bitcoin ledger there there is no one person that has complete control
person that has complete control
person that has complete control everyone knows the rules of the Ledger’s
everyone knows the rules of the Ledger’s
everyone knows the rules of the Ledger’s and transactions are completely
and transactions are completely
and transactions are completely transparent allison and bob have
transparent allison and bob have
transparent allison and bob have addresses in this ledger much like an ID
addresses in this ledger much like an ID
addresses in this ledger much like an ID number except no one in the ledger knows
number except no one in the ledger knows
number except no one in the ledger knows what addressed belongs to Alice or Bob
what addressed belongs to Alice or Bob
what addressed belongs to Alice or Bob unless Alice and/or Bob give that
unless Alice and/or Bob give that
unless Alice and/or Bob give that information to whoever they
information to whoever they
information to whoever they transacting with this provides a layer
transacting with this provides a layer
transacting with this provides a layer of anonymity for Alice and Bob towards
of anonymity for Alice and Bob towards
of anonymity for Alice and Bob towards everyone in the system that is not
everyone in the system that is not
everyone in the system that is not transacted with them but still holds
transacted with them but still holds
transacted with them but still holds transactions as identifiable and
transactions as identifiable and
transactions as identifiable and legitimate Wow that’s quite the concept
legitimate Wow that’s quite the concept
legitimate Wow that’s quite the concept a virtual object now does actually
a virtual object now does actually
a virtual object now does actually behave like a physical one but how is a
behave like a physical one but how is a
behave like a physical one but how is a virtual ledger even useful
virtual ledger even useful
virtual ledger even useful well because it’s virtual just like an
well because it’s virtual just like an
well because it’s virtual just like an email it can be sent almost instantly
email it can be sent almost instantly
email it can be sent almost instantly from anywhere by anyone Alice can be in
from anywhere by anyone Alice can be in
from anywhere by anyone Alice can be in China and transact with Bob in the
China and transact with Bob in the
China and transact with Bob in the United States using a common rule set
United States using a common rule set
United States using a common rule set ensures that there is one value to all
ensures that there is one value to all
ensures that there is one value to all of these virtual objects and because
of these virtual objects and because
of these virtual objects and because every everyone agrees to that value when
every everyone agrees to that value when
every everyone agrees to that value when using the system it is in their best
using the system it is in their best
using the system it is in their best interest to pitch in and set their
interest to pitch in and set their
interest to pitch in and set their computer to help them to help confirm
computer to help them to help confirm
computer to help them to help confirm transactions so the network can grow
transactions so the network can grow
transactions so the network can grow while still being as trusted as before
while still being as trusted as before
while still being as trusted as before the more confirmations per transaction
the more confirmations per transaction
the more confirmations per transaction the more trust the better because this
the more trust the better because this
the more trust the better because this network is virtual I also can put
network is virtual I also can put
network is virtual I also can put something else than a banana as a
something else than a banana as a
something else than a banana as a transaction she could transact many
transaction she could transact many
transaction she could transact many different types of objects like apples
different types of objects like apples
different types of objects like apples or oranges or perhaps Fox contracts or a
or oranges or perhaps Fox contracts or a
or oranges or perhaps Fox contracts or a confirmation certificate if everyone
confirmation certificate if everyone
confirmation certificate if everyone agrees on these relationships of how all
agrees on these relationships of how all
agrees on these relationships of how all these objects are presented within the
these objects are presented within the
these objects are presented within the network then anything can be represented
network then anything can be represented
network then anything can be represented as a transaction okay fantastic
there’s a functional and active solution
there’s a functional and active solution to the double spending problem the
to the double spending problem the
to the double spending problem the solution is indeed so fantastic that it
solution is indeed so fantastic that it
solution is indeed so fantastic that it allows people from all over to world all
allows people from all over to world all
allows people from all over to world all over the world to have any transactions
over the world to have any transactions
over the world to have any transactions with anyone using a fully common
with anyone using a fully common
with anyone using a fully common denomination of value a Bitcoin there is
denomination of value a Bitcoin there is
denomination of value a Bitcoin there is no more currency valued disparity
no more currency valued disparity
no more currency valued disparity Bitcoin is fundamentally a way of
Bitcoin is fundamentally a way of
Bitcoin is fundamentally a way of transacting data all within a virtual
transacting data all within a virtual
transacting data all within a virtual ledger working through a consensus
ledger working through a consensus
ledger working through a consensus network and now you know more about
network and now you know more about
network and now you know more about Bitcoin than most thank
Bitcoin than most thank
Bitcoin than most thank [Applause]
”
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