Don Tapscott - Principles For Business Success in the Digital Age - Nordic Business Forum

once be careful, watch out for the robot hello, the reason I'm playing that song, I actually wrote that song. I'm in a band called men in suits, we used to do a concert every year, whether our audience demanded it or not. but then we got it right, so now we're recording music anyway Shiva hawawa da, unfortunately those are the last words you'll hear from my lips in that language, but I'm very excited to be here today. as a warm-up act for President Obama and, President Obama, if you're watching live right now, my people haven't contacted your people yet, so we need to talk tonight, I think we should hang out, now You know, the city.

Things like that, seriously, I have a very big idea that I'm going to try to convince you of in the next 20 to 45 minutes and that is that the

digital

age is entering a second era and I came up with this idea quite honestly, I think I wrote. a couple of books from the 1980s that no one read. I think my mother bought most of the copies, but in 1992 I wrote a book called Paradigm Shift in the Digital Economy and they were both big bestsellers and 20 years later my publisher asked me to write. the 20th anniversary edition of the

digital

economy, so I had to re-read my book, which is always humbling, and the book held up very well, but I reflected on where we have gone in the last 25 years and towards where are we going.

I went ahead and came to the conclusion that we are entering a second era of the digital age, the first era where we had mainframes, mini PCs, the Internet, the web, social networks, the cloud, big data, and now we are entering a second era where technology is infused everywhere. Everything at the center of this is a modern day topic, artificial intelligence and machine learning, where technology learns to do things that it was not programmed to do because it is able to reprogram itself, but we also have other interesting technologies, the virtual reality. drones robots autonomous vehicles this will not be in 50 years, in a decade in Helsinki most vehicles will be autonomous without drivers, you have the Internet of Things of billions of inert objects in the physical world that become intelligent and communicating energy is distributed and I became I am convinced that the fundamental technology for all of this, particularly for AI, is the underlying technology of cryptocurrencies called blockchain.

Now it's not the loudest word in the world, but for me this is the second era of the Internet. Let me explain to you for 40. We have had the Internet of information for years, but if I send them information in PDF, PowerPoint and email, I actually send them a copy even with a website, I keep the original, but when it comes to things that really matter to us. economic assets things of value things like money or stocks or bonds or swaps or loyalty points contracts intellectual property cultural assets like art or music votes a vote as an asset something of value that belongs to someone carbon credits are identity send a copy of those It's a terrible idea, you don't want anyone to copy your identity or your vote and if I send you a thousand euros it's really important because I still don't have the money at the moment.

Cryptographers have called this the double spending problem for decades and the way we handle this problem in our economy is through intermediaries and they do all the trading and transaction logic for each type of commerce: banks, card companies government credit, stock markets, now social media companies, identify the asset, identify who you are, clear and settle transactions. and they keep records and allow us to trust each other and overall they have done a pretty good job, but starting almost exactly 10 years ago we started to notice some problems. Where were you 10 years ago? Well, 10 years ago, on September 16th.

I was on stage in Vienna at Seibel speaking to 10,000 bankers and it was two days after Lehman Brothers crashed and I looked at the sea of ​​deer in the headlights in Scandinavia, so you understand what that means, and I made a critique of the banking system I threw away my powerpoint power corrupts PowerPoint corrupts absolutely anyway, but we didn't really have many solutions back then, but think about it, they almost brought down the capitalist system and these banks are a bunch of middlemen and they need to help their centralized, that means they can be hacked and everyone from JPMorgan to Home Depot to the CIA found out the hard way they cut a couple billion people out of the global economy, slowed things down, why should it take four to seven days for money to transfer from one country to another they charge too much, it shouldn't be ten percent, has anyone heard of cross border payments by email and the important thing is that they capture our data, we create this data, but They capture them and this is created a small handful of very powerful companies and something strange is happening throughout the developed world, we have growing economies in a process of reduction of the middle class, we have growth in wealth and wealth creation , but prosperity is declining, what if there was no solo? an Internet of information, what if there was an Internet of value?

Some kind of vast distributed global ledger, something like a spreadsheet or anything of value, from money to stocks to music to votes, could be managed and transacted securely, ten years ago, that's where it comes in. Bitcoin an anonymous person or persons named Satoshi Nakamoto wrote this landmark article where he invented a new type of digital cash called Bitcoin where people could make peer-to-peer transactions without an intermediary, solved the problem of double spending and took people to like it too much to find out what was really going on here because it's not about Bitcoin. Bitcoin is an asset class that goes up and down if you bought something a year ago and up if you bought something six months ago. your way down is also a cryptocurrency, not a fiat currency controlled by a nation-state if you are in a country with capital and money flow restrictions that may be of interest but the real pony in this pile here is none that the real pony is the underlying blockchain technology because for the first time in human history, people can trust each other and conduct peer-to-peer transactions and trust is not achieved through a middleman, it is achieved through cryptographic collaboration and some clever code which is why my son Alex and I call it trust protocol Trust is native to the medium now let me ask you a question raise your hand in one of these three categories blockchain number one I really don't know anything about this number two, it I know a little number three I know a lot well number one I really don't know anything about this well thank you number two I know a little number three I know a lot well so most of you are on one and two so let me explain how this works you know the novelist American Mark Twain, wrote a letter to a friend and said: I'm sorry I wrote such a long letter.

I didn't have time to write a short letter. Well, it took me five years. able to do it, they explain this to you in two minutes, okay, so set your watch here we go. I'm going to tell you how a blockchain works in two minutes and there are thousands of blockchains. The first was called Bitcoin. I will explain to you how Bitcoin works. Well, here we go, I send you a thousand euros and that transaction is transmitted to a global network of millions of computers, all using the highest level of cryptography and all over the world there is a group of people called miners, not like young people like gold miners. and they have enormous computing power estimated between 20 and 50 times greater than all the Google servers in the world and these miners do a lot of work to validate that transaction and every 10 minutes, like the heartbeat of a network, a block is created . which contains all the transactions from the last 10 minutes the fact that I sent you a thousand euros but ultimately it could be any transaction where two people bought and sold a stock or two people got married or someone bought or sold a house or bought a light bulb some energy from a distributed electrical grid and the miners compete to validate the block and the winning miner receives part of the cryptocurrency from that blockchain and then this is the important part where the block connects to the previous block to create a block chain and it is connected to a digital Waxey, it is only valid if you reference the previous blog, so if I wanted to hack that block and take that thousand euros and send it to you and you and you to commit fraud, I would have to hack that block. the previous block, the previous one, you would have to hack the entire history of Commerce on that blockchain, not just on one computer but on millions of computers simultaneously, all using the highest level of cryptography and I'm not going to say it's impossible, but it is much more secure than the computer systems you have in your company today.

I had some sort of cold analogy to describe why this was hard to hack, and I used it when I was interviewed once for a national television show in the United States. a comedy show with this comedian named John Oliver and he did an entire half hour show on blockchain, so I'll show you why I don't use this analogy anymore. This is John Oliver used to verify records. It's very safe. Now relax. I'm not going to go into what that process is or how it works, but I will share a really useful and really silly metaphor for why it's secure, the way I like to think about it is that a blockchain is a highly processed thing, kind of like a Chicken McNugget and if you wanted to hack it it would be like turning a Chicken McNugget back into a chicken.

Now someday someone will be able to do it, but for now it's going to be difficult, wait, that's an absolutely horrible thought, why? Is that reporter so happy with the idea? Because if someone ever figures out how to turn their chicken McNuggets back into chicken, that chicken is going to be done, spending the rest of their life suffering from PTSD and writing disturbing poetry about the experience. things I saw buck-buck because my body is complete but what about my soul my body is complete but what about my soul I still think it's a good analogy, so bitcoin was the first great Internet application of value, kind of like email Electronic was the first major application of the Internet of Information, but now we have these emerging general-purpose platforms that allow you to create any application that is more like the World Wide Web: the Internet of Information aetherium worth tens of billions of dollars. dollars invented by a 19 A year of abandonment of Toronto.

Ethereum is a huge platform, the Hyper Lakers, another one comes from the Linux Foundation. We have courted 180 banks who have come together to create a new platform for the financial industry. Ripple is a blockchain that says it can. do visa level speed, so the hype machine is Oh, great timing, this started a couple of years ago, when The Economist wrote a cover story comparing blockchain to the creation of double-entry bookkeeping 400 years ago years, they were more hyperbolic than me, so I was lucky at the time of writing this book and I also had a co-author, my son, who happens to be a better writer than me and is also smarter, so it is a very good book, It is now in 17 languages ​​and a new edition has just appeared.

By the way, the way to get this book is in a huge volume. Okay, there are many copies. Christmas is coming soon. You look like people with friends. Do you worry about your friend? Not seriously. We are very proud of the book. So what does it mean? all this blockchain combined with AI, what happens? Does anyone recognize this? A machine on the screen has a name. It's called the Rube Goldberg machine. It was the American inventor II who created all these ridiculously complicated machines that did something very simple like open a door. or I break an egg I look at this and I see the banking system thinks about it, you tap your card at Starbucks and the messages go through half a dozen computers, three days later a clearing or settlement occurs, all these different companies imagine if that were based in a blockchain on a distributed ledger there would be no three day settlement period because the payment on settlement would be the same activity, it would just be a change to the database, there would be no delay, there would be no counterparty risk, That's what's almost protected.

In the 2008 caucus there would be no cost to each of these counterparties, so the banking system is reeling trying to figure out what to do with this technology. What do banks do? What does this entire industry do well? Actually, it's not that complicated. They do eight things. they authenticate and attest to the value they are who you are that's a dollar that's a stock they transfer value they move money into stocks and so they store value because they store value they get the value of the land they also exchange transactions of value stock markets and so on they finance a investment banking orequity mutual funds hedge funds private equity etc., secure value and manage risk insurance, reinsurance and represent audit value in theory, the combination of AI and blockchain can eliminate each of these now, that is not going to happen By Of course, because the banks are working hard to adopt this technology and figure out how to avoid disk mediation, but this is happening very quickly and I will give you a humiliating example in the book where we said that venture capital will be unrecognizable in five to ten. years we were wrong venture capital two years later is unrecognizable in part because of something called ICO, you heard about this ICO, its initial coin offering crowdfunding campaign on a blockchain stands out in 2016, one hundred and sixty-five were raised million dollars last year.

It was six billion this year it will be twenty billion dollars all the venture capital is eighty billion dollars a quarter of the venture capital disappeared in two years and a recent ICO was over a billion dollars that is not capital risk, that is real money, that is investment banking, now what is sold in these offers is a token and that token can represent a number of things, it can be a currency like Bitcoin, it is a cryptocurrency currency, it could be a platform like etherium, could be useful. token that only has some functionality Gollum is trying to replace Amazon Cloud by making you donate your computer, they need a token to compensate for it, it could be a security token that represents a stock, but not just the stock, any financial instrument will be tokenized. that billion dollar ICO there was no investment bank there was no stock market and there were no stocks a token was being sold it could be a natural asset token like a barrel of oil or a tree or a synthetic asset like a credit carbon. involved in something called carbon ex-cia that is tokenizing carbon credits could be a crypto collectible, this is a multi-billion dollar trading market for a small collectible called crypto kitty, but it could also be a tokenized physical piece of art and then you have crypto. fiat currencies and stablecoins, you won't spend Bitcoin in ten years, you will spend the Euro and the Euro will become a cryptocurrency, so the banking industry is being disrupted, but that's just the beginning because this is affecting corporations all over the world. industries, let me explain, eighty-five years ago a Nobel Prize-winning economist named Ronald Coase asked a deceptively simple question and said: why do we have the company fatum?

Smith is right about open markets, the best mechanism for allocating goods and resources and materials in an economy why not everyone is an independent contractor he had every step of the way in production why we have companies and said the answer is anyone, a Nobel Prize winner for saying this the answer is transaction costs now he defined this very Broadly speaking, he said that the search cost imagine trying to find all the right money and information from people and resources and a physicist more in a market to make something like a glass or a water bottle or a table that would be prohibitive to bring that inside. the limits of a company where you have filing cabinets to find information, you have organization charts to find people, etc., secondly, the cost of coordination, imagine that trying to get all these people who work together to never meet, is possible, Third, the cost of contracting, if every small activity in the economy required a contract, well, I wouldn't work, and in general, the cost of establishing trust for the Industrial Age Corporation to become vertically integrated made everything from soup to nuts.

Henry Ford had a power plant within the limits of the Ford Corporation. steel mills shipping company glass factory why because the cost of transactions in an open market was greater than the cost of doing things within the boundaries of the company, comes the blockchain combined with artificial intelligence and what happens, these transaction costs will be devastated the cost of Sur Think about finding money to finance your

business

. Before we had to go to a venture capital company and they would give them a million euros for 51% of your company. Now you can make a nice EO in a blog chain.

The cost of coordination. making people the cost of hiring blog chains has something called a smart contract, it's like it sounds like it's a contract made of software, think of a contract with a bank of software lawyers and a government within the contract itself executes it and combine it with AI and you get something we call a distributed autonomous organization, it was first created two years ago, it had no management, no CEO, no people, it was a group of autonomous agents, AI combined with smart contracts on a blockchain and in three weeks this. The thing came out and raised $164 million.

The dollars didn't have people now, it's not a happy ending because there was a coding error in one of the smart contracts, so it turns out that the creators of this autonomous distributed Dao company returned the money, but imagine a company without people, Bob Dylan, you know something is happening here and you don't know what it is, we are in the early days of a profound change in the deep structure and architecture of the corporation and how we orchestrate society's ability to innovate and create goods and services to participate. how the rest of the world companies are going to become more like networks now let me give you some examples concrete examples and I am going to talk to you about eight

business

models in which you will dedicate a minute to each of them these are eight of more than a hundred that We are researching at the blockchain research institute the first ones we call cooperatives, everyone has heard the word collaborative economy, right?

Oberer Airbnb, etc., of course, these are not sharing economy companies, they are

success

ful precisely because they do not share correctly. There are service aggregators that aggregate services together, but what if you created the Airbnb blockchain, it was Arabic and it was a set of autonomous agents, smart contracts and on blockchain love and marriage go together like a horse and carriage? It's a song, how would that work well? a distributed application you don't have a company, you show up, you're looking for a great place in Helsinki, there's one right there, a five star, it's a database, you booked it, it starts a smart contract to show the house you convert into key in the code, a partial payment is made automatically because the smart contract automatically runs some polices, you use your Nespresso machine, played a couple of movies etc., the smart contract captures those where it has been there for a week.

The door you leave through is the place where the contract issues the final payment. You have a five star rating and it's on a blockchain and no one can alter that rating unless you know how to turn a Chicken McNugget into a chicken. Sorry guys, we got sprayed. In that case, you could do that with all kinds of industries and essentially instead of Uber, it's super super super, you have a car, it's an autonomous vehicle, you can use it for an hour during the day and the rest of the time you're driving . AI and blockchain raise money on your behalf, so essentially instead of a seventy billion dollar corporation called uber, you have a true sharing economy, you have a cooperative, call it a blockchain cooperative, the next one is We call rights creators, there are all these people in our economy. that create value but do not receive fair compensation, one of the most important is the music industry, which musicians have suffered for a long time, but the Internet of information made things worse.

The Internet of information broke our intellectual property regime because we did not have a native one. digital medium to get value, so we just publish the assets as if they were information, we send songs. I did this if you are a songwriter in America 35 years ago, you write a platinum song, it sells a million copies, today you would get $46,000 in royalties you write a song that gets a million streams, you don't get $40,000, you get $35, which will allow you to buy a final mojito that I had last night at the bar, okay, so like an oxymoron, it really isn't, this is a giant or perfumed shrimp. deodorant or something, so Imogen Heap, the Grammy-winning British singer-songwriter, is putting her music on a blockchain and the song is inside a smart contract and has an autonomous agent, so the song protects the her rights.

If you want to listen to the song, the song says, well, it's free or it's a few micro cents, you want to put the song in your movie and the song says, oh, well, that's different, what do you want to do, you want it to be a theme musical or someone is going to sing it or background music. or a ringtone, as she describes it, my song acts like a business, my song is there protecting my rights and raising money because the song has a bank account inside the song, it also has a lawyer inside the song, like this that this is an opportunity for journalists for scientists or all kinds of people number three you heard me say the word disintermediation if you are in the middle you have to create new value you have to be intermediate in the digital economy 25 years ago I said with information bookstores are among Readers and publishers will be disintermediated, but I said that something new could appear in the medium, but the leaders of the old medium are generally not the leaders of the new medium and, sure enough, Amazon was invented six months later, but think about how you can re- enter to mediate. because many of you are in the middle, so for 22 years a Filipino housekeeper in Toronto named Annalee Domingo was sending remittances to her mother in the Philippines, you know, remittances, these are people who have left their ancestral lands, they send money to house, this is a billion. dollars is the largest flow of money from the developed world to the developing world and Annalee Domingo would get on the bus and the tram, collect her check, get back on the subway and the bus and go to the Philippine mall.

Where there is a Western Union office specialized in the Filipino diaspora, they charge 10%. The money takes between four and seven days to arrive. Two years ago, Annalee Domingo sent the money directly from her cell phone to her mother's cell phone. It didn't take seven days. It took a minute and when the money came, she looks at it and it's in Philippine pesos, but she sees a bunch of cars driving around, it looks super, she's there, the ATMs, she clicks on a five star ATM, he's seven minutes away, the guy appears. The door knocks on her door and gives her Philippine pesos which she keeps in her bag.

All this caused her 2%, so in this scenario she is disintermediating herself to Western Union and now there are blockchain companies (this is called payment case) that are creating the new value. in the middle, how can new value be created in the middle? Supply chain is a $50 trillion industry and supply chains are moving to blockchain. Walmart uses blockchain for food safety. The largest supply chain in the world. A belt and road linking Hong Kong and Rotterdam. It is all the commercial financing that is done in AB noting because there are trains, buses, planes and ships, and shipping agents and escrow agents, governments, tax authorities and various types of intermediaries, etc. delivering pieces of paper and faxes and communicating via email etc, imagine if all of that was a shared network state, you could see everything in real time on a distributed ledger and then add AI and turn your supply chain into a cognitive network. it becomes a cognitive network that learns faster metabolism fewer lawyers fewer errors better quality this is revolutionary and there are some extraordinary companies in this space one is called suite bridge that issues a currency that is linked to an asset in its own supply chain and then you have an asset-based currency, you can borrow money from yourself to fund the advancement of your supply chain.

This is one of the 10 things Suite Bridge does to prepare for big changes. The physical world is becoming intelligent and connecting my hotel last night to the door. It has a chip and is interconnected. I had a camera stolen from a hotel room in Miami and the door knew about me by knowing who had entered and left the room. We found unauthorized access. I have a friend in Toronto. Everything in this house that has power has an IP address, which means that all of these devices communicate with each other on the Internet. I have no idea what his refrigerator talks to his toaster, but apparently they are friends, in fact he was bragging that his fence talks to his sprinkler. system and I said, well Ken, why would you care, he says wait, if a thief gets over the fence, the sprinklers are my first line of defense, so these devices are communicating, but in this new second mistake of the digital age is going to be making transactions so that thisInternet of Things, billions of devices buying and selling things will need an Internet of Things, these transactions will not be done through a visa, so look at something like the electrical grid.

Industrial Age, there is an era of scale and standardization, something in the center expelled standardized units, passive receivers, we expelled products, newspapers and television programs, we expelled conferences and we expelled all kinds of things. One of the things we expelled was electrical energy for the dumb receivers, the passive receivers, well, that's not sustainable anymore. and we are moving towards an energy network that is more like the Internet, it is distributed and uses all types of energy sources and Scandinavia, of course, its leaders and are moving in this direction, but all these transactions will require data and a light bulb. buy some energy from a distributed energy source and you pay for the energy, which improves your reputation, so the energy source can be a solar panel on your roof, you know it is a reliable light bulb, this is the protocol trust, so all these transactions will be managed on a distributed ledger now we have something new called platform, this is a really great idea, so the Internet of information was in the public domain thanks to Vint Cerf, Tim berners-lee and others , the Internet of value will be owned by investors, what is the Internet of information worth trillions of dollars, extremes of trillions of dollars, the ascending net value is greater, how much will it be worth?

So people talk well about these cryptocurrencies being just a big bubble which is a very long view on a lot of levels. one is to remember the currencies of one of the seven types of cryptoassets and B is yes, sure there is a bubble, there is volatility, etc., but this is something that will get bigger and bigger over time. I've got a pretty good track record over four decades of Talking about the next big thing, get ready for things like Icon Cosmos coming out in a few months. Internet of blockchains. I mentioned that the Hyper Ledger Metrodome is a crypto asset that runs on any blockchain.

Big changes. Ok, Ramos, it has to be the next one. What happens with big data in this world AI combines what blockchain well think about it today you all create the new asset of the digital age it is called data new asset class probably bigger than oil or old asset classes create them, but they take them away from you then the virtual knows more about you than you because you can't remember what you bought a year ago or what you bought a year ago or what medication you took a year ago or what you got on a test a year ago or or or which It was your heart rate here or your exact location a year ago you create that data but they take away the virtual you.

I like to think of this as a kind of digital feudalism. Do you remember that under feudalism the owner owned the land that you did not? You paid a salary, you did all this work and you have to keep a little of the things you grew well. You're all doing all this work creating data and the digital owner takes it away from you and you're left with some cabbages. it's a big problem, it means you can't use this data to plan your life, you can't monetize the data and our privacy is being undermined and people are telling me come on come on dawn privacy is dead get over it I think it's a ignorant.

From the point of view, privacy is the basis of freedom and all this data represents our identities. We need to get our identities back so we can manage them responsibly and use this data for our own lives. Get ready for your self-sovereign identity in a box. the chain is in a kind of black box that moves with you and sweeps up all this transactional data, measures your heart rate, does all kinds of things, it's secure and you own it, you can decide what you're going to do with it. This is an existential question for companies like Facebook and Google, etc., and what is happening is that we are moving towards a world where there will be a lot of data brokers and you will negotiate with them to give them access to the data.

The last question is what effect does all this have on government and democracy? Well, I thought the Internet of information would help us reinvent government in this whole chapter of the digital economy. 25 years ago, is there anyone here who thinks the Internet has fundamentally improved government for the world? Better, we basically automated the counting routes, leaned towards gold governance models and gave people access to them online. Well, now countries around the world are moving towards something like changing the corporation and its architecture, changing the architecture of government, how we orchestrate the capacity in society to innovate to create goods and services but also to create public value, new models are emerging. of government involving the private sector civil society governments working together to create what we used to call government services now the second is our democratic institutions Houston, we have a problem.

This is a crisis of legitimacy of democracy that is emerging around the world. Governments are in serious trouble. Trust is at an all-time low. Young people don't vote. Many young people agree with that bumper sticker. I know that not voting, that only encourages them and well, that's kind of funny, it's not really funny because democracy is the best system I know, but we're getting some pretty nasty alternatives coming up. I was talking to an executive in Brazil who said the options and the elections are so bad that maybe it is better to have a military dictatorship, maybe we need to end the separation of Church and State and have Christian governments or jihadist groups, maybe let's need libertarianism and no government, maybe anarchy would be a We have a better approach to solving this problem.

It is not seen anymore. Martin Lipset, the great American sociologist, talks about legitimacy as the idea that you may not agree with who is in power, but at least you believe that the institution is good. Well now we have a big problem we have a president of the United States says that democracy doesn't really work voting is full of fraud and the Free Press the Fourth Estate the basis of a free society is all fake news and the Internet of information has caused a fragmentation of social discourse so that the president of the United States can tweet that his predecessor, who will be on this stage today, that his predecessor heard him, this is not only impossible, it is absurd and 30% of Americans are According to this, how can we fix democracy, one of the The biggest problem is that governments are often beholden to big interests, powerful interests and we can help fix it.

We can have Evo ting, which is great, but it will never work unless there is a blockchain because you are not going to vote unless you have cryptographic proof. of the double spending problem being solved correctly, that your vote will not be counted twice or transferred to someone else, we can have transparency, sunlight is the best disinfectant for governments, the government is left naked if it leaves to be naked, there are some trackers that come out of that, you know one is: if you're going to be naked, you better be muscular, this is a powerful force, we can have accountability, why can't you have a smart vote?

You can have smart money today. blockchain, you send your kid to college, you give him some money, but the money is within our contract that says you can only spend it on books during tuition, so your kid goes to the bar and the money says: Sorry . I don't do bars, I just don't do tuition, so why can't we have smart voting? Voting is inside a smart contract where politicians' funds do not flow unless they fulfill the smart contract commitments unless they are responsible. For the electorate it is a crazy idea. Politicians are accountable to the people who voted for them.

I know crazy things and there are all kinds of new things that can be done with blockchain. The last point. I'm running out of time here is that we can reinvent our central banks imagine if fiat currencies were converted into cryptocurrencies what incredible power it would give to central bankers if the inflation rate changes you could observe what happens in the economy you want to put more money in in the money supply you could see what people are doing with the money without following them individually, but in general they are saving more than they spend more there, they are investing there, you know, starting businesses, whatever the central bankers are, they could have a lighter touch on regulation, so we spend a lot of time with the power plants. bankers discussing the complexities and challenges of moving to a blockchain for their fiat currencies.

It's a very exciting time, so government better get cheaper, strengthen democratic institutions, and reinvent central banks. What a wonderful time to be alive! This is a new paradigm and when you get a new paradigm. You have a leadership crisis because paradigms, your mental model, put a limit around what we think, limit our actions are often based on assumptions that are so strong that we don't know they are there, the Earth is at the center of the universe . As a paradigm for millennia, the big problem in the world is communism. Remember that one of the purposes of computer science is to automate existing business processes with the goal of reducing headcount, and something may happen in the art science culture that causes a change in the mental model. and when that happens, these things cause dislocation and conflict, they are almost always received with coldness or, worse still, with vested interests, fight against change and leaders of old paradigms have great difficulty accepting the new ones, how are you going to find your company leadership for change, how will your country do it? find leadership for change, remember that Peter Sengai 25 years ago wrote a book called The Fifth Discipline, in that book he said that the person at the top can no longer learn for the organization as a whole.

Things become too complicated and that was very prescient leadership. I come from the top and I work with CEOs or national leaders who are leaders and in the true sense, but usually the leadership comes from somewhere else. The CIO had an IT marketing manager and an external partner. We documented the story of an administrative secretary who was the leader in the transformation of a division of one of the largest banks in the world and she had what it took to be a leader, she wanted it, if this is true when I say that the Internet is coming into play a second era as part of a digital age where AI and blockchain combined to fundamentally reinvent our institutions show a little curiosity maybe you should check it out download a Bitcoin wallet spend 10 euros you will learn more about public key cryptography in five minutes and you will listen to me all day with the book Bach chained revolution in massive volume don't take a look, there is so much good stuff on the internet YouTube videos I did a TED talk like millions of people have seen you can you can get a Google alert called blockchain every day, you'll care I'm in awe of the things that are happening so this is a very, very exciting time to be alive and leadership is every one of our personal opportunities so what does the future hold for us?

Actually, I'm not a futurist. I'm kind of a school that I don't know, the future is not something that can be predicted, it's something that must be achieved and we can achieve a very positive future if we find the leadership to make it happen. Let me finish, if I could, with an analogy with my son Alex and me. We study thousands of organizations and have recently been studying nature to try to learn about this trust protocol. Fish come in schools. Bees come in swarms. Starlings in some parts of the world over the Moors of England come in something called murmuration murmuration is an English word.

It's in the dictionary and it means the rustling of birds' wings and starlings are within a 20 mile radius all day looking for food doing amazing things and at night they come together and create one of the most spectacular things. throughout nature and the murmur has the function of warming the birds but also protects them look I'm on the right of the screen here that is a falcon a predator of starlings 25 times the size of a small starling being chased away by collective power from the little birds the scientists who have studied this say they have never seen an accident and there is leadership but there is no leader when the time is right this magic happens so is this some kind of fanciful analogy or could we actually learn something?

From there, gossip works according to the seven

principles

of trust protocol that we describe in the book. Remember what I said. Trust is not achieved through a middleman who is not a middleman, it is achieved through collaboration, which is great collaboration and some kind of smart cold, there is a code there. and the DNA of birdsthat gives you rules, rules like don't bump into anyone else but don't stray too far and gossip has great interdependence, you heard me say that business can't succeed in a world that is failing. I'm sure you'll hear that at the end of the day from the former great president of the United States and gossip has an interdependence, it works as if the interests of one little bird are connected to the interests of the collective as a whole. backbiting also has great integrity which is the basis of trust what is trust what is trust what took me three months to write this sentence is okay for me Trust is the expectation that the other party will act with integrity Trust It is the expectation that the other party's group will act with integrity, do the right thing, be honest, consider its interests, and honor its commitments.

That's why a little bird will chase a killer 25 times its size because it knows the other birds will. do the right thing could we connect on this planet with some kind of new global network of glass and air and software and cryptography and technology that can learn what we could do with that what potential could fulfill well maybe if we did that? smaller more The networked world our children inherit might actually be better now that technology is not going to do this for us because technology does not make changes that humans do, but once again the genius of technology has been escaped from the bottle and this time he was summoned. by an anonymous person or persons at this uncertain time in history and it is not going to fix things, but it gives us another kick in the can to rewrite the economic energy grid and the old order of things if we want it and maybe if we want it.

The digital economy in the digital age will be an era in which the promise will finally be fulfilled and the danger will not be reciprocated. Thank you very much, now that we have time. I think a quick question sounds good to a lot of people. A very similar question. I'm going to do Anita's version. What do you say to people concerned about the massive power consumption required by blockchain mining hardware? That will be a problem, is that something we can deal with with Bitcoin is a type of blockchain and its consensus mechanism for discovering the truth is called proof of work.

I describe it to you and it uses miners that consume massive energy. Bitcoin is one of thousands of blockchains and in the future most of them will not use that technique that they use. other cosmos techniques, as I mentioned, that is creating the Internet. Oh, blockchains use something called Byzantine Fault Tolerance which uses very little power, it's a cool name, yeah basically there are a lot of problems, a lot of questions, a lot of concerns, but what we always try to do is put them in box number one. or in box number two. Box number one is called reasons why this is a bad idea and is not going to happen.

Box number two is called implementation challenges and pretty much all the difficulties that people brought up to me end up in box number two. There is a lot to do, but if we do this, the future will be bright and exciting, ladies and gentlemen, Don Tapscott.