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The politics of algorithms. | Arthur Breitman | TEDxSanFrancisco


[Music]

[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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