Blockchain Revolution - Don Tapscott, at USI

Bonjour, so if it's okay with you, I'll stick with English, you'll thank me. I'm here today to tell you something very important, as important as anything I've talked about in my 35 years of writing books. the digital age because once again the genie of technology has been released from the bottle and this genie is being summoned by an unknown person or persons named Satoshi Nakamoto and this genie is now at our disposal to give us another kick in the can to rewrite the economy. Order and the social power grid, let me explain, by the way, on Twitter I'm in code D tops.

If you're tweeting, there are big changes happening in the world and I think if we do this right, we can do a lot of rethinking. of our institutions to create a more sustainable and fair world to begin with there is a technological

revolution

that is underway now that you are familiar with all these technologies mobility the social network the Internet of things drones in the cloud robotics machine learning the artificial intelligence big data He Be convinced that the most important technology that will take us forward over the next two or three decades is none of these and you would be surprised to hear me say that it is the underlying technology of cryptocurrencies like Bitcoin and it is called

blockchain

, it is not the loudest word in the world I remember 25 years ago I explained the world wide web to you and it just rolled off your tongue today we have the

blockchain

is what it is but this technology will allow very profound changes if you let me explain during the last 40 years and I've been talking about this stuff for most of that time, we've had the Internet of information and it's been great if I send you information.

I'm not actually sending you the information that I'm sending you. sending you a copy whether it be a PDF or Word document or a spreadsheet or an email or even with the web the web was a platform for the presentation and publication of content the first mistake of the Internet gave us all a printing press where we could copy information and that was great, but copying things is not good when it comes to assets like money, music or art or all kinds of financial assets like stocks, bonds, swaps, etc., loyalty points, things like carbon credits for energy , these are all active. that belong to someone that may have some kind of commercial value and as you saw with the Internet of information we copied some of these, we copied music and that practically destroyed the lives of many musicians, copying assets is not a good idea if I give a hundred euros right now it is very important that you have the money and I no longer have the money and I cannot give you those same hundred euros.

This is called the double spending problem and it's been a big problem with cryptographers for a long time. The basic problem here is a cartoon from 1993, these two dogs are talking about a farce on the Internet, no one knows you're a dog, Well, that problem still exists today when it comes to establishing who a person is one hundred percent. and managing all the commercial and transaction logic of doing commerce is not possible and it seems that the way we handle it is through intermediaries, we have powerful intermediaries like banks and credit card companies and we have big technology companies like Apple to manage music. and we have governments to establish our identity and give us social security money and so on, and also all these big middlemen do a pretty good job, but there are a lot of problems that are getting bigger and bigger all the time, first of all.

They are all centralized and you know that any central server can be hacked and any Home Depot person or Home Depot customer or Target or a CIA employee or anyone who lives south of 49th Street in Manhattan knows what happens when centralized things disappear from the card. The power grid went out and they were in the dark for ten days, so centralization is a problem, but also these intermediaries exclude two and a half billion people from the global economy who do not have enough money to have a bank account and slow down things. you know that it is cheaper and faster to send an anvil by FedEx to China that is for sending money and they tax things you know that people who are part of the global diaspora who send remittances to their ancestral lands can pay taxes by Western Union others companies eight percent ten percent 14 percent the biggest problem is that these powerful intermediaries have captured the most important asset of the digital era, which is data, data has become a new asset class and can surpass the classes previous in value of agricultural land under the green economy industrial plants In the industrial age it is a strange thing that all of us create this data, the greatest asset of all time, but it is owned by a small handful of companies and intermediaries, so all The benefits of the digital age have been asymmetrical and this is something very difficult for anyone.

I like to say it because I have been a great defender of the digital

revolution

for decades and I argued that the new media is different from the old media, they transmit radio, press, etc., they were centralized, it was one way, it was one to many. controlled by powerful forces, they were all passive and inert recipients. I said that new media is distributed, it is decentralized, it is one-to-one and many-to-many, it is not controlled by powerful forces, it has an incredible neutrality that it can allow. If you look at the data that did not happen, the 51st percentile of individual or family is declining for the first time in modern history, social inequality has become the biggest public policy problem. brought to us by a French radical named Tom's Paquette II and we have a big problem: we have wealth creation but we have declining prosperity.

What if there was a distributed platform, a new Internet of value that allowed us to exchange, store and protect assets on a peer-to-peer basis without powerful intermediaries, that would be an incredible thing. Well, in 2008, right after the crash, it was discovered that the weed of the crash was actually the financial services industry. Somewhat auspiciously, an unknown person or persons named Satoshi Nakamoto wrote an article describing the Bitcoin protocol. and that document sparked a wildfire that spread throughout the venture capital community, now to financial services, to government corporations, to regulators, to academics and everyone is talking about this now, don't let confused by the bad press around Bitcoin, see Bitcoin as many things in the smallest. the way it is a gate asset goes up or down in value if you buy it if you sell it is of no interest unless you are a speculator more generally Bitcoin is a digital currency it is not a theater currency created by nation-states It is a cryptographic currency and that is more interesting especially if you live in Argentina, for example, where there are large monetary fluctuations or where capital flow restrictions do not allow you to take your money out of the country, for example, with the assurance that the interest of the diaspora who pay 12 percent to send their money home, but the most important thing is neither of the two things.

The most important thing is the underlying technology of cryptocurrencies, it is called blockchain and for me this is the biggest innovation in computing in a generation and has profound implications for everyone. organization that is seen because trust is not established through powerful intermediaries but through intelligent codes and through massive collaboration. For the first time we have a native digital medium for value and for the first time in history people around the world can transact and do all kinds of things without a powerful intermediary capturing the value so let me explain for a second how this works First of all, if I make a transaction, I send some money or it could be any transaction.

I vote, I get married, I sell a house, I exchange a stock. It's called the stock market or that light buys energy from an energy source and pays for the energy that any transaction passes to. a network and I will describe the Bitcoin network here, although there are others and it is broadcast to thousands of computers and then There is a group called miners, they are like gold miners, not young ones, and they get to work using powerful computing resources to authenticate all these transactions and they have a huge computing power estimated between 5 and 20 times greater than all of Google and every 10 minutes alone. like the heartbeat of a network, a block is established and the first miners who find the truth to authenticate these transactions receive part of the digital currency of that blockchain, say Bitcoin, and then that block is connected to all the blocks above, why it is It is called a blockchain and everything has a timestamp, so if I wanted to hack that block and pay that hundred euros again to someone else, I would have to hack a block using the highest level of encryption, no only on a centralized server. but on thousands and thousands of computers around the world, ultimately millions and maybe billions of computers in a very short period of time in light of the most powerful computing resource in the world and not just because of that block but because is connected to the previous one. blocks I would have to hack the entire chain now I won't say anything is unhackable, but this is infinitely more secure than the computer systems we have today.

The Bitcoin blockchain is just one of a large number of blockchains that have been heard of. from the hands of aetherium please okay this is fantastic so aetherium is a blockchain that has all kinds of additional capabilities for developing applications for the corrupt creation of smart contracts that manage digital assets and aetherium. I was talking about the etherium Developers Conference in London. In a large room like this there were about the same amount of people, but along the edge there were people sitting six developers deep and in that room there were people creating an alternative to the stock market an alternative to uber an alternative to our current transportation system democracy there were people creating a new model for banking for the payment system, it is something extraordinary now that most people think of blockchains in terms of financial services and, without a doubt, there are great opportunities, have you ever heard the expression a Rube Goldberg machine if you Google it.

Rube Goldberg, this guy who created all these complex machines that did all these things and at the end it broke an egg or closed a door or something. That's the financial services industry. I tap my card at Starbucks and a little flow. It goes through all these systems, some of them are mainframes from the 1970s, and in the end a transaction occurs three days later. Well, banks are now struggling to understand what this technology means because what the banks do well in the book that we described are these things: They authenticate a proof. to value they say this money exists here they transfer it they store it because they store it they can lend it they can exchange it they can finance and invest value it is called investment banking they can insure the value manage the risk and they can account for an audit value, well that is their role As an intermediary in the financial services industry, if you have a distributed trust protocol, in theory, banks are not obliged to do anything now, banks are not going away, not my life, but all banks.

They are struggling with what this means at a minimum if they adopt this technology it could save tens of billions of dollars it could speed up the metabolism of the entire banking system imagine you tap your card at Starbucks there is no settlement in 3 days the settlement is instantaneous because it is Just a change in a database, so the keys were lost, the CEO of New York state sued the banks for $15 billion, the most powerful financial regulator in the world, began to meddle into Bitcoin and discovered the power of it. What happened was he left his job, created his own consulting company and in the book Blockchain Revolution we quoted him saying that Ben Loski, within five to ten years, the financial services industry will be unrecognizable and I want to be part of that change to Let everyone be on board.

Now the economist did a cover article called the trust machine, the great chain to be sure of things, and they compared blockchains with two other developments, one was the creation of double-entry accounting and the other was the creation of corporation now. It's a bit boring stuff, but those are the two bases of our current economic system and for the economist, that's how big this is, by the way, you have triple entry accounting, credit, debit, the automatic entry goes to a blockchain . Wow, why do you need an audit? a real-time, timestamped record of everything that happened, even Dilbert is involved now.

I think we should build the blockchain. uh-oh, does he understand that what he said is something he saw in a trade magazine ad, so Dilbert says what color do you want? your blockchain and the manager says I think Moe has the most RAM, so whenDilbert gets involved, you know something strange is going on, so the book has been out for three weeks, damn, Harry Potter, it's also in Canada, it's competing with an adult coloring book. You know, these things I need to know, they existed, adult coloring books, best selling book, beating the blockchain room anyway, it's a sign of the times when a book with the word blockchain and the title can compete with Harry Potter, so it's a technological driver for change now let me talk about some of the other big contextual drivers and we'll discuss what this could mean for your business.

Second, there is a demographic driver. We have the first generation to come of age in the digital age and these are kids I started studying. children in 1997 when I realized how my own children were able to use all this sophisticated technology and at first I thought that my children were geniuses, they are prodigies, but then I realized that all their friends were like them, so that It was a bad theory, so I started working with 300 kids and wrote this book a decade later, wrote the sequel, and came to the conclusion that there is no more powerful force to change all institutions than the first one. generation of digital natives I'm a digital immigrant I had to learn the language this is globally it's a huge generation not so big in France that has children under 33 hands please oh that's pretty good yes I did it in Italy recently and About 10 Hands went up in a room of a thousand people and eyes almost canceled my talk and I said, "You know, everyone, go home, light a candle, grab a bottle of wine, put on some music, make some babies, but this "It's a huge generation, the greatest generation." always and what makes them a true force for change is the first generation to come of age in the digital age and you see this cartoon, it didn't provoke a single laugh in the room.

This is from 1997 and grew digitally from my book. Back then, when I put this cartoon on the screen, people would fall out of their chairs and laugh so much, you know, oh honey, using a computer, that's crazy, now everyone looks at it and wonders why the child doesn't have an iPad? Something, what is that weird thing? Why doesn't the boy have an eye Ponty? So this time, the first generation of the Internet, do you remember to use someone here? Remember using tile and we all had dial-up access and it took like a minute. for a screen we now have broadband, we have mobility, we have all kinds of infrastructure that is applicable to this blockchain revolution and we have a new generation of digital natives for whom it is like hearing, so what effect does this have on the structure and nature of the corporation well, there was a famous Nobel Prize winning economist named Ronald Coase and he died just three years ago and eighty years ago he wrote an article where he asked a deceptively simple question, he said: why does the corporation exist?

Adam Smith is right: open markets are the best mechanism for allocating people, money, and resources in a society. Why aren't everyone independent contractors at every step of the production process? Why do we have signatures Isreal Miller in the audience by chance? There's something I have to thank Real for this because 25 years ago I said who is going to be the most important economist to help us understand the Internet and he said Ronald codes and I said who is Ronald Coase, so I've been talking about Ronald. Coase, for 25 years, what happened is that throughout the industrial age the cost of transactions in an open market was greater than the cost of doing things within the confines of a corporation, so we created companies vertically integrated.

Now the COEs talked about four types of transaction costs. talked about the cost of searching to find all the right information, people and assets in an open market would be prohibitive, so we bring them within the boundaries of the company where we have file cabinets to find information, organizational charts to find people, etc second, the cost of contracting, if every small activity in the economy required a contract, would be prohibitive, bringing it within the confines of a company where contracts are not needed, third, the cost of coordination, imagine dealing of getting a bunch of people together to create a car.

Coordination so be it. Great, so we bring it within the confines of a company where we have management and strength. The cost of establishing trust in an open market is prohibitive. Bring it within the boundaries of a company. Blockchains will decimate. search for each of these four classes of transaction costs imagine being able to find the truth by contracting smart contracts on a blockchain just as they sound like contracts that have managed digital assets and then have a bank account Third, the coordination cost is huge and now we have a platform to establish trust in an open market, so we are moving from a business extended to commercial networks to something very, very different.

Now I'm just going to tell you a quick story, this is a pre-blockchain story to make the point. here on the screen his name is Rob McEwen the reason I know this story is because he moved across the street my neighbor and he's hosting a meet the neighbors cocktail party and he says you're Don Tapscott . I've read some of his books I said great what are you doing he says well I used to be a banker and now I'm a gold miner he's also a funny guy introduces his wife to the group and says I'm a gold miner this is my wife she is a gold digger luckily he's not and he has a sense of humor anyway he tells this incredible story he takes over this gold mine his geologist can't tell him where the gold is so he gives him more money to get more data millions of dollars they come back they can't tell him where to go into production he gives them more money this goes on and on after a few years he's ready to give up but he has an epiphany one day he wonders if my geologists don't know where the gold is maybe someone If you know it, then you do something radical, you take your geological data, you publish it, and you run an online contest called the Goldcorp Challenge.

It's basically half a million dollars in prize money for anyone who can tell me. Do I have gold? If so, where is it? They come from all over the world. They use techniques you've never heard of. For his half a million dollars in prize money, my friend Rob McEwen finds $3.4 billion. gold, the market value of his company goes from $90 million to $10 billion overnight and I can tell you because he's my neighbor, he's a happy camper, what did he do right? We believe talent is within our limits, right, your most valuable asset leaves the elevator every night we have these expressions no, the minds uniquely qualified to solve Rob McEwan's biggest problems were beyond their limits now this was before blockchain , but Rob McEwen today is very interested in blockchain technology and says: "imagine what you could do with this platform compared to what we had before, so in the book we described something called a distributed autonomous organization and we said how far it could go This.

The distributed autonomous organization we said would not have people, it would just be autonomous agents working on a blockchain with smart contracts that could have a crowdfunding campaign to create this organization, but it would have no managers, no CEO or staff, it would. would spend his time creating value, so Alex, my son, is the author of Michael, we thought we should actually put this in the book. I mean, it's a really crazy idea. said no, we will put it in the book the day the book came out an organization called distributed autonomous organization was created with a crowdfunding campaign it has no CEO or management or people it is a blockchain set of smart agents and smart contracts and its first job was to go and raise some money in two weeks it raised 134 million dollars but it doesn't have people you know who are into Bob Dylan something is going on here and you don't know what it is get ready for profound changes in The deep structure and architecture of the business change in the way we orchestrate society's ability to innovate toward great goods and services, so here's complexity from low to high and automation from low to high at the bottom, so the top quadrant Left is your company. it's Renault on a blockchain, the bottom left quadrant is smart contracts and these exist today, etherium is a great platform, autonomous agents drive distributed autonomous companies and in the bottom right and here it is this is a screenshot real from two days ago, the distributed autonomous organization has 132 million dollars and its goal is to invest in blockchain companies now, if you are an investment banker, you might be interested in the fee structure instead of twenty-two, it was zero and zero , so it's not just investment banking, of course, that will be affected.

Because of this, okay, so the final big change is a social revolution. Think about the world today, we are too conflicted and we have many, many problems, so this is not a political story, it is a story about self-organization and how that can be a new force. Eight years ago I got an email from a friend and he said, do you know this guy? His name is Obama and he is trying to become president. He believes your book mecha anomie is the key to winning the presidency and transforming America. See my Barack Obama, calm down. I go there and see my book on the screen, it's like we believe in principles, wikinomy and the Internet.

We use the Internet in every possible way. I ask you to believe not only in my ability to bring about real change in Washington. I'm asking you to believe in yours and I took a good look at this, my first reaction was that I'm clearly the man but not so fast because it turns out I'm not the man because it was a Wiccan community ah mcc that was also. young firefighters for the Obama community there were single mothers in the daycare for the Obama community. He created a platform upon which 35,000 communities self-organized and that is what brought them to power, so we are seeing radical new platforms emerge within our society for people to self-organize. and to achieve change, then you put those four together and I think you end up with a platform on fire.

You know the idea of ​​a burning platform? You're not Kamandi Tom. Platform on fire. You are somewhere where the cost of staying where you are is. become greater than the cost of going to something new, although the new state is not fully known, we have a hot platform in society, so let me finish by saying that I am going to spend a minute or two on each of these are ten business models that are radical, each of which I think blockchains will disrupt, so let's go over them. The first is a new species of business that I call digital conglomerates.

What business is Google in? While Google is very much an advertising agency, they sell ads, but so is Google. a media company and a hardware company is the second largest makeup server in the United States has a customer has mobile devices is a bank as a payment system Google will probably emerge as one of the leaders of the automotive companies because it has a of the best technologies for autonomous vehicles well, what's wrong with Google on a blockchain? Well, let me give you an example. Do you think about the financial services part? Annalee Domingo is a housekeeper who lives in Toronto and every month she hops on the bus. she takes her check to the bank, then she gets back on the bus and goes to the Western Union office where she sends her remittances to her mother in Manila, Philippines.

Remittances are the largest flow of capital from the developed world to the developing world. The world is bigger than foreign direct investment and bigger than foreign aid six hundred billion dollars a year and Ali is charged eleven percent the money takes four to seven days to arrive his mother never knows when it will arrive right now Annalee Domingo says six months ago she went to her mobile device to Abra and typed in five hundred dollars. Whatever you send the money to your mother, the money moves at the speed of light, in ten minutes a block is created and then Anneliese's mother looks at her mobile device and there are several Abra ATMs, these are people who are part of the Abra community and they are driving around her neighborhood like it's an uber and she sees one, it's six minutes away, it's a five star ATM, she says boom, this woman shows up and gives her $500 in Philippine pesos in Cash, it all took a few minutes, not four to seven days, and Annalee Domingo pays 1.25% instead of more than ten percent, so the disruptors are about to be disrupted.

Second, we have a business model that I call data frackers. You know, fracking is a French word, fracking, not fracking, is an oil and gas term where steam is introduced into thesoil and is expelled well, and mainly gas. Today we have data frackers using technology to extract all this data. Internet, so here's one called a data miner that sees everyone on Twitter as a sensor and notices that something is happening one, two, three four, it detects a pattern, there's been an explosion somewhere and the data miner then It sends us information to its subscribers, which includes the security forces, but also CNN CNN appears, indeed, there has been an explosion there, they are fracturing the entire social world to find data now, of course, the definitive data Frakker is Facebook, How could blockchains alter this?

Well, right now, all of our data is owned by these companies and it's owned by the Bank and it's owned by governments that are creating a surveillance society and people who say privacy is dead, get over it, this is bullshit. Privacy is the foundation of a free society and your identity must be managed responsibly. The problem is all of us. We are losing our digital identity at the hands of these powerful companies. What would happen if you could create the virtual in a blockchain? I'm sorry, what's your name? Yes, the virtual Pierre and the virtual Pierre is property of Pierre.

See, right now, Pierre is leaving a trail of digital crumbs as he goes through life and virtual Pierre knows more about him than he knows because he can't remember what he bought a year ago or what he said a year ago, his location. exact a year ago, well, the virtual Pierre could be owned by Pierre and Saldría and would only give a sliver of information necessary to make a transaction. Many transactions you don't even have to know who the other party is. If you sell me something, the important thing is that you get paid, not that I know who I am so that the virtual Pierre collects all this data and captures the most valuable asset of the digital age.

Then we have these companies that are part of the so-called collaborative economy. You know this term. UberFace. I'm sorry. Lyft TaskRabbit. Airbnb. But these are. no sharing economics companies this is nonsense they are a service grenadier uber is a 65 billion dollar serviceaggregators no sharing I get my research on sharing from four year olds if you ask a preschooler if I'll give you one of my cookies is sharing and the child will say yes, that is sharing then you say if I give you one of my cookies cookies, but you have to give me a pen, the child who presides will say no, that means they are not collaborative economy companies , well, what if uber became super uber and what if it became Suber, as we call it in the book, a distributed application on a blockchain?

It would look exactly like Uber today: autonomous agents and smart contracts would do all the work, and that $65 billion in value would go to drivers or people who own a small room, like Airbnb. , pure production, of course. It will be powered by this technology. Now Linux pier produces the Internet of information, which allowed us to create some extraordinary and pure capabilities, but many of them are limited. Wikipedia, for example, is stagnant today. A lot of people say could we build a reputation system on a Wikipedia blockchain? If we exploited this technology whereby I could be motivated to go there and create great content because my reputation would be rich, it would be a rich set of information that would be part of the virtual meeting, part of my identity and that reputation could then be portable when I request a work or when I do other things, could we even build a compensation system into this so that people who do extraordinary work on Wikipedia can get paid idea number five caps?

This is a term I came up with over 20 years ago. years ago in the digital economy, but now idea caps can also be boosted, which is why 60% of all applications are open markets for exceptionally qualified minds, which is why 60% of Procter & Gamble's revenue comes from of oats, the company, so what is the next step? o-360 that is exploring blockchain technology to be able to find exceptionally qualified minds based on all these virtual identities that are floating around again reducing transaction costs pro Zoomers turning their consumers into producers now this is another term for the digital economy, although the The concept actually came from Alvin Toffler in a book called The Third Wave in the late 1970s, incredibly, but today we believe that clients are off limits and as we move towards distributed trust, can we start to see customers within our limits in the sense that they are? within our business ecosystem, so companies are already doing it.

Threadless is a clothing company where its customers design their products. It is a hugely profitable company, even today you can get your clients to create your advertising for your prosumers. Have you seen Doritos crash in the Super Bowl in a contest? No, it's okay, Doritos told his client, you know, Doritos, the potato chips told their clients, you create our advertising and the best ads we will publish on the Super Bowl, which after the World Cup is the most watched television program in the world, so I. I'm going to show you a couple of them, this ad right now.

The 30 second ad was created by a couple of young women who were nobodies, but now there's someone because their ad ran on the Super Bowl, we need more volume of fiery habanero, yes those are hats. gravy vacation oh buffalo fire and ranch get up im gonna need a cleanup on the register six ooh ooh so some of the ads were a little edgy as you can imagine a lot of them involved people smoking a plant substance but this one ad is one of the most daring, it actually made it to the Superbowl and is one of my favorites.

I mean what ad agency is going to dress someone up in suits and have them beat up their client, but for reading, Rito's demographic is apparently a big one. So the whole world of chasing MERS again will be overloaded. because of blockchains, we have 3D printing and where everything in a supply chain essentially becomes an entry in a distributed ledger, then we have rights to monetize errors, there are so many parts of our economy today where people create value but fail to capture the value that the music industry is proof 8 do you know that if you were a songwriter 20 years ago and wrote a hit song that sold a million copies, you would make forty-five thousand US dollars?

Nowadays, if you are a songwriter and you write your hit song that has a million downloads on Spotify, you don't get $45,000, you get $36, it's not enough to get to the airport, that's why the big labels control the music industry and the Internet. of the information. Made it worse because people posted assets, then Along Came Apple and streaming companies like Spotify who took more value than musicians have crumbs, so Grammy-winning singer-songwriter Imogen Heap is one of the people building a new platform to the music industry when you are a musician, you publish your music and the music is surrounded by software that has a set of smart contracts and has a bank account and some freelance agents.

Music, song becomes a business. You publish your song on a blockchain and, if you want. to listen to it is a few micro cents, you want to put it in a movie that is different and the smart contract specifies all the intellectual property rights and ensures that the artist is fed first, not at the bottom of the food chain, it's called mycelium music. others called you Joe comm number 8 platforms to participate. Well it all started with Amazon and we've seen all kinds of platforms where people are self-organizing on the platform and preparing for a whole new wave of platforms that are going to be very important to the business right now Microsoft is partnering with aetherium and several others companies to build blockchain platforms for the enterprise and those of you who are IT executives, we are going to move our technology to blockchains over the next period, we have the global plant preaches blockchain, the Chinese motorcycle industry is made up of dozens of small companies that They all cooperate together to create a motorcycle, but there is no Harley-Davidson, there is no Yamaha, there is no OEM pulling all the strings, they are found on the Internet and in tea houses, this now represents 45 percent of global motorcycle production and preparing for China's thousand euro car - and there is so much interest in China that both Alex and I are going to China for a month in the fall and we are talking all over the place, everyone there is trying to understand blockchains and what they could do, the last one is what I call the wiki workplace, go beyond email to create these new collaborative platforms.

Imagine a collaborative platform within the company where your personal avatar, your identity, is the core, collecting information and making you more productive by protecting. your privacy, ensuring that the corporation has the right information rather than having that information captured by powerful outside tech companies, so disruptors are about to be disrupted. What a time to be in business and what a time to be alive. This is a new paradigm and when. You have a new paradigm These things cause dislocation Conflict Coldness They are often met with hostility Vested interests fight against change and leaders of old paradigms have great difficulty accepting the new ones How will your company find leadership for change?

Well, those who don't change will. being left behind just like with the Internet of information more than 20 years ago, on the other hand, it is a time for each of us to be curious. Download a Bitcoin wallet on your mobile device. I can talk to you about public key encryption. all day, but if you just download some Bitcoin and make a payment, you'll understand it instantly. The other thing you can do is educate yourself with my book in one massive volume. Christmas is coming soon. I know you have friends, no, seriously, start a pilot and Those of you who are IT executives start thinking about architecture because it has huge implications.

Let me close with this thought. Alex and I have spent some time studying nature trying to figure out what the trust protocol would mean for humans in society and it turns out. these things exist in other species birds fish come in schools bees come in swarms starlings on the moors of England come in something called murmuration have you heard that word murmuration? It refers to the rustling of birds' wings and the starlings are outside. Within a 20 mile radius during the day, foraging at night, they create one of the most spectacular things in all of nature. The murmur has a function.

Look here, that's a predatory hawk, a ferocious predator that is driven away by the collective power of the little bird scientists. who have studied this say they have never seen an accident there is leadership but there is no leader this is a trust protocol action now is it some kind of fanciful analogy or could we learn something this works according to blockchain principles it is a great collaboration there is an openness blockchains our open source platform all kinds of information are shared sources of food danger of trajectory there are rules the most important is not to collide with anyone else, but another is not to get too far away, but there is also a great sense of interdependence and collective self-interest.

Remember I said that trust is not achieved through overly powerful middlemen, but through a sense of collective self-interest, is built into the code, and has high integrity, which is exactly what it is in business. the expectation that the other party will be honest, consider your interests and honor your commitments and with this new platform you must honor your commitments or you can't participate, you can't be dishonest, not in terms of executing transactions, if you are a dictator. In Honduras you cannot steal land from people if that land is published on the blockchain as has been happening, so this is a platform.

I think it doesn't require us to build a great new society, but it might allow us to do so. allow us to reinvent not only corporate financial services but change government democracy imagine elected officials coming to power with a smart contract that government funds do not allocate unless they do with citizens what their powerful financiers want I look at this and I very much hope that perhaps this second generation will bring a smaller but better world and that this era of network intelligence can be an era in which the promise is finally fulfilled and in which the danger is not reciprocated.

Thank you so much. a lot