Blockchain | Toni Lane Casserly | Exponential Finance

Blockchain | Toni Lane Casserly | Exponential Finance



I am here today to teach you all about exponential finances one of the most interesting landscapes today which is Bitcoin and blockchain technology so in the beginning there was one the genesis of the next generation of our financial future now how many of you in this room know what bitcoin is that's awesome that's a huge difference from giving this speech in like 2013 or 14 how many of you own Bitcoin interesting how many of you know what the blockchain is fabulous so Bitcoin was created in 2009 by anonymous Satoshi Nakamoto now his reason for launching this project anonymously is an ideological one because Bitcoin in contrast to current systems of finance is not about one it's not about a tribe leader controlling a ledger it's not about a king doing the same it's not about a Federal Reserve Bank or a central state holding control ownership and rights Bitcoin in and of itself is all of us now after that white paper was released we had some several interesting things happen in the early days of Bitcoin some one in 2010 bought a pizza for a 10,000 Bitcoin that is now a 28 almost 29 million dollar pizza and Bitcoin had some rough times too we went through the trough of disillusionment in 2013 when an exchange called mount box which was essentially a fractional reserve exchange which antithetical to the whole Bitcoin network anyone who knew what was happening in Bitcoin knew that mount GOx was a bit of a cracked exchange they were using for their underlying protocol Magic the Gathering which is essentially a trading card game similar to World of Warcraft processing 200 to 300 million dollars a day and they were essentially two guys sitting in a basement in Japan that is really scary especially if you're putting a lot of money into an exchange like that and so the exchange crashed they were using double spend to hyper inflate the price of Bitcoin went $200 and now we are back up at $2,800 for the entire ecosystem so after we had this rough patch we were able to move forward and create something extremely meaningful and we're still in the early adopter stage of this technology now this is a spreadsheet this is not a blockchain a lot of people confuse spreadsheets and distributed databases with blockchains and there are some core fundamental differences between something like a spreadsheet and something like a blockchain I'll get into that in a second so Bitcoin people have called it a money they've called it an asset a million different things but at the core of what this technology is it's just a protocol it's an open-source protocol like tcp/ip like the standard mail protocol and it has an extremely interesting property in terms of the way that it quantifies and distributes information because really that's all money is money is just information bitcoin is both inherently scarce there are only 21 million bitcoins in existence that will ever exist and it is also easily replicable that is why bitcoins called the Internet of money because anyone can take the Bitcoin blockchain and create their own form of currency now there is kind of a caveat to that in that I will say the current state of the market while extremely exciting we are in a bubble and that's because people are creating currencies like feathercoin or Fedora coin which have absolutely no tangible underlying value but people can you know hyper inflate the market pump up the value of the currency and dump the currency to buy extremely cheap Bitcoin that is a problem that exists in our landscape today and something that we have to solve and so bitcoin is not the internet it is the Internet of money and there is a way to create an ethical and responsible cryptocurrency whether using Bitcoin or another block chains like aetherium I'll teach you how to do that a little bit later so bitcoin is the internet of money and blockchain is the internet of value we have Bitcoin Bigby which is the protocol little B which is the money and blockchain which is the underlying technology the core infrastructure so this enables some very very very interesting things with a blockchain which is a decentralized and mutable public ledger we have peer-to-peer transfer of assets ownership and rights meaning we eliminate many middlemen who come into systems to scrape an excess profit capitalizing on our deep human need for trust blockchain is an inherently trust 'less system as all identities are pseudo anonymous and the information is completely public verified by every person in the network at large we also solve the double spin dish you as once a Bitcoin is created it's like matter or energy cannot be created or destroyed it merely is and its movements through the network are tracked by every person in the network and genuinely every person in the world at large that's because of public private key cryptography and which is way more secure and way less expensive than things like the chip cards which banks just spent a significant amount of money to upgrade and the benefits of that in terms of where technology is today I have some serious reservations about so frictionless low-cost payments the only thing you need is the internet now this has the potential to evolve and destroy some extremely large financial systems in our world today and it is my hope that regardless of what happens in the future we do what is best for Humanity at large so one of the core differences between a spreadsheet and a blockchain is a spreadsheet is a centralized ledger you can have a bunch of different people editing it at once but you cannot have an editable block change that is absolutely antithetical to why a blockchain is so important a blockchain is trustless because we cannot edit the information once it exists and ownership is fundamentally distributed through every person who is running a node on the network not one central authority so these are three different types of infrastructures that people have been using are going to use in the future we have centralized infrastructures which is essentially how almost every system has worked today you have a pyramid where you have the CEO and management than all of the employees at the bottom and a decentralized infrastructure is at the core of how Bitcoin works it means that you have nodes distributed all across the network who are running their own world and allowing other people to come into that gravity contribute participate engage and earn value now a distributed infrastructure is something that a lot of corporations and private organizations are thinking about using to get into blockchain I call these like blockchain light in that if you actually look a distributed infrastructure that yeah distributed infrastructure and a centralized infrastructure are really quite similar it's just looking at it from a different angle because that distributed infrastructure does maintain one central point of failure so there are certainly use cases for private blockchains but in terms of universal humanitarian impact the technology should be public available distributed to everyone on the planet so what is a blockchain it is borderless it is public like the Internet available to all it is voluntary which means you get to choose where your data goes who has access to that information where you collaborate where you participate and where you share it is decentralized which means there's no central point of failure there's no central point of authority and it is immutable which means fundamentally once that information is entered into a blockchain it can never be erased so the Bitcoin blockchain is by far the most powerful blockchain that exists to date but it's not the only one so Bitcoin mining is essentially a process where we have supercomputers all over the planet in areas where energy is extremely low cost and to speak to Rama's is amazed speech it's an energy problem to use Bitcoin mining because you essentially have warehouses full of supercomputers with a six explicitly designed to do one function which is to mine and create Bitcoin now all of these computers are trying to solve these insanely complex math problems at once and every time they try to solve a math problem they have a 50/50 percent chance of solving that correctly which means it's provably fair it's like taking a bet you have a 50/50 chance of getting it right every single time you participate in the system once one of the computers gets a math problem right which by the way the complexity of getting one of these questions right to earn Bitcoin as a computer there were literally more grains of sand that existed on earth in 2014 there was a higher likelihood you as a human would find one grain of sand on earth because these problems have an exponentially increasing difficulty rate in terms of solving them but once one of these computers gets it right every other computer in the world goes they applauded they validate the computer for solving the problem correctly and that computer receives Bitcoin which is entered into a block of information that has changed to every other block in the network hence a blockchain and every time that information moves from the moment it is created it is recorded and validated in the same way that these super computers create Bitcoin so this is how to use bitcoins download a wallet on your computer send it to any person the world peer-to-peer your public key is like your email address your private key is like your password you can just get someone's public key and instantly send them money frictionlessly and peer-to-peer in the same way that you could send someone an email with information and that is how a blockchain works as I just explained anytime you send Bitcoin to someone you enter in a block of information that block of information is chained to all of the other blocks of information in the network and you send value to someone anywhere in the world so some really interesting things become possible with this a secure transaction ledger database you have smart contracts you have elimination of trusted third parties cost reduction the elimination of error handling and fundamentally automation of financial systems now this also enables an extraordinary landscape for entrepreneurs centered around primarily digital identity smart contracts digital assets and distributed applications these are just a few of the hundreds of thousands of use cases in terms of the way this technology can and will redefine the world because Bitcoin at its core really is just information so if you think about it this way Bitcoin takes the business model of the technology industry of any industry really and flips it on its head we are in a transition right now from capitalism to protocol ISM which essentially means in the old system I am a user of Facebook and here's Facebook to use Facebook which is a public service I use Facebook for free they gives me access to the network for free and I give them my data which they then sell sell to other enterprise organizations to make advertising dollars now fundamentally it's a step in the right direction but you cut the little guy out of the equation you can't really invest in Facebook unless you wait until the IPO but you're cut out of the fundraising process if you're not an institutional investor so that means you get the value of using the network but you don't actually have equitable this equitable distribution of financial opportunity now with Bitcoin things change a little bit well things change a lot you have something called an ICO which essentially both inverts business models and models of financing now what that explicitly means is that instead of doing an IPO where I as a user might buy stock for five dollars and then in ten years it could be worth 50 I as a user of a platform can sign up and get tokens for just merely giving someone my information for signing up for a system or by purchasing crypto equity that means any person in the world can get involved in a fundraising process any time through the lifecycle of the project and fundamentally how those tokens have value is by again flipping that business model on its head because I as a user in the system because we're using public private key cryptography I own my data and not only that but as a blockchain business I couldn't sell that information you and if I wanted to because the data set is public and in a blockchain business that's actually what you are taking ownership in you are taking ownership in a monetizable public data set that is quantifying the intangible earth things like climate health ocean health all of that is information that we have been unable to revalue from in the past and that is actually how blockchain technology enables a new generation of financial abundance blockchain at the core is quantified information and an initial coin offering is your ability to get into these projects at a very early stage so the computing power of Google is one peda hash to give you perspective on the size and scope of the Bitcoin network the computing power of the Bitcoin network is five hundred and twenty-five peda hash that means one Google one Bitcoin network equals five hundred and twenty five Google's now keep in mind Google is a large and complex organization with many different people and many different moving pieces but Bitcoin actually represents a broader shift in that it is something that is hyper local central solving one function reducing complexity and using ASIC chips that serve one specific purpose and that is to create the Bitcoin networks and those are the protocols in the future where you should look to invest because that is the area that is going to produce and generate the most value so Bitcoin is – blockchain as email is – the internet it is fundamentally the first use case of a technology whose implications will extend beyond what 98 99 percent of the planet can even imagine in this stage this is crazy the market cap of Bitcoin is almost 50 billion dollars when I am given I've every time I do this presentation I have to keep updating the slide less than a month ago it was just twenty billion dollars once we pass I told you about mount GOx earlier who inflated the Bitcoin price to 1200 before it crashed back down to its actual rate once Bitcoin crossed a 1200 dollar mark investors said oh wait it's actually real so every person who felt they missed the opportunity got back into the market in an incredible way over the last month the value of Bitcoin has risen nine hundred and seventy dollars that means Bitcoin has a larger market cap I know it says 61% up here it's actually 70 percent of countries in the world in fact it's it's right at fifty two point five on the cia's m1 data for the wealth of all dishes right above Chile right under Libya we're just about to surpass Qaddafi so this isn't absolutely I am still I mean I even I'm in this world but I'm still blown away by this information that's absolutely not it's only existed since 2009 and already we're almost have already the value of this currency is nearly more than 50% of nations on earth that's insane and we are still in the early adopter phase so we can expect to see the value of this currency really create an exponential shift in the way that we think about not only global finance but the distribution and the abundance of money wealth value at large so I told you earlier about proof-of-work which is all of the little computers solving the math problems and then getting a bunch of Bitcoin the other way that you can create essentially a blockchain value system is by using proof of stake proof of stake is what you use when you are creating an ICO and it simply means you're purchasing crypto equity and taking ownership in a network that you believe is going to contain a valuable public data set valuable information and that is the world of the initial coin offering so essentially as I said earlier this not only redistributes finance but allows us to really take ownership in the invisible unquantified information that has existed and has not been able to be valued in a distributed way since literally the dawn of man and there are multiple block trains so we have the Bitcoin blockchain we have Liske which is essentially an SDK for Bitcoin we have made safe which is a little triangle it uses it's essentially blockchain storage we have ripple which looks like the three little balls run together by a string that's blockchain for banks and we have a very interesting use case in something called steam it it's these three blue lines it's essentially a monetized blogging platform for medium and monetize blogging platforms like medium and while it could still be an economic experiment the first time I heard about Steam it I had someone messaged me to tell me about it and they said hey just wanted to send you a screenshot of this I just made twenty six thousand dollars telling people what my favorite kind of carrot was and I said what I was like that's got to be a joke and he said no you need to go check it out it rose at one point to number three in Kolding market cap which is displaying all the value of all the cryptocurrencies in the world and it may just be an economic experiment but it certainly shows a way in which we can take these things like content that are generating value from people all over the world and actively assign a tradable valuable asset to that so the total market cap of this entire industry within the last two days just surpassed a hundred billion dollars and we are still folks yes we are still in the early adopter stage so that's all Bitcoin is really the future of money is actually the future of information and what the internet did for information at large information that was at once owned by church by state by tribe leader by central reserve it took that and it gave it to all of us it put the power in our hands to own it to create it to share it blockchain gives us the opportunity not only to be that information but to receive financial value from that what the internet did for information the blockchain is going to do for the world of money and value at large and in the next century it may not even be something that we think about bitcoins information just like contracts or information just like you you are information I am information we are all just information this is a fundamental change in the ownership models of the world that we have lived in today financial markets today GE has made more money since the 80s trading financially that may have actually producing products this red line is the number of people working jobs up top below it that's the actual amount of wealth in our economy dedicated to those people who make their income working jobs most of the wealth in the United States is stored in margins and dividends and this is the reason why we have such vast and horrible inequality that changes with the blockchain we are moving from capitalism to protocol ISM where any person in the world has the opportunity at the inception of a project to become a shareholder to own create store value so at the core what is a blockchain borderless voluntary decentralized and immutable what are the paradigm shifts this technology can create the redistribution of wealth and the D monetization of defunct currencies Venezuela is about to experience a revolution a bag of flour cost three hundred and thirteen dollars people there are starving hungry and forsaken at the expense of a regime whose ownership was outside of their control we no longer need the church to give us a connection with any idea of God it still is useful though in some ways right for some people I'm a pluralists on a judgment but we no longer need the state to give us access to to define our relationship to law universal access to rights is also something that blockchain technology is going to empower in an extraordinary way in fact my company bit nation it is essentially a system for self sovereign identities the world's virtual nation a blockchain jurisdiction 88 percent of the world does not allow LGBTQ couples to get married 23 countries allow LGBTQ marriage 15 countries allow you to kill someone for being gay that is the state of the world we live in we use the blockchain to allow people to register their marriage anonymously on the bit nation platform because we don't need the state to create a system of law for people who are living in an environment that wakes them up every day to a wall of oppression and disillusionment the dematerialization of things which means the information contains in the ocean the information contained in the climate in the health of man growth all of these things that have been invisible to us are now going to be able to be quantified valued shared traded and exchanged the decentralisation or deeper distribution of powers and fundamentally the systemic restructuring of ownership models thank you so much for all of your time today I hope you have a wonderful rest of your experience and if you have any questions whatsoever please feel free to reach out to me because I am happy to help all of you thank you [Applause]

Author:

34 thoughts on “Blockchain | Toni Lane Casserly | Exponential Finance”

Leave a Reply

Your email address will not be published. Required fields are marked *