today I'm gonna talk about from
scalability to inclusion and I'm gonna
touch on a few concepts the last Def Con
that I was at was two years ago in
Shanghai and the last two days I've been
attending a lot of talks and I see
there's a great difference and I'm gonna
go to the summary and just discuss what
we have I think you have talked a lot
about technical scalability over the
last two days and as well as two days on
layer one and layer two I'm not gonna
touch on that but I'm going to go back
in time to a nick szabo talk about
social scalability which I think vitalik
has talked a little bit about that over
the last two weeks about social
scalability it is the ability to
overcome the mindset and it is myself
who limits who and how many can
successfully participate and this key to
mass adoption it is about human
limitations not about technological
limitations or physical resource
constraints that we are talking about
and if you look back I have five DS for
this scalability for crypto economies
and the five DS or there I'm gonna go
through every single one of them it is a
process that you will see that possibly
our community will go through and the
first one is digitalization and
digitalization is about having new
business model using digitize a
digitization so digitalization is
different from digitization and we are
using digitization to come up with new
model and what we are seeing now are
some very interesting development a lot
of people are trying to tokenize a legal
entity which was Satoshi has given us a
gift not to deal with legality so now
we're going backwards and try to
tokenize a legal entity and by
tokenizing legal entity there's a lot
costs the cost of governance a compliant
cost and you stop yourself from going
cross-border and those are the cost that
is embedded in trying to tokenize
securities and tokens securities has
his own reason written carry six and he
now put a layer of token which is
technology on top your technology risk
management has to be good and you have
increased the risk of the product but at
the same time you may only increase
efficiency by a little and I'm not too
sure how much your mass adoption you can
find because you're serving the same
customer you're having a same business
model there's no improvement from what
Satoshi has given us from ten years ago
so instead of that we always talk about
security token the other ideas is token
security we tokenize anything that is
not securitized we tokenize anything
that is not in a legal form for example
a cow token a livestock token and in
that case you then have a new set of
token law to take care of token security
so we may want to move to a different
direction from security to token to
token security because it releases us
from all the localized legal and
legislation that we have to deal with so
this is where our mindset which is the
scalability social safety is to bringing
the extruder as ice back to the acromion
financial system through digitalization
and this is what inclusion and adopt as
the mass of the option is about and the
second and third is this intermediation
and democratization I gave the example
of the livestock token you can't
organize a cow which is not a legal
entity you can DC me me you can this in
intermediate that rent-seeking Landers
to charge a hundred percent in Miyama
we have somebody from Yama who knows
that and we can actually then put them
onto a Insurance Scheme micro insurance
scheme because now we have a token you
know the GPS position you now have it on
blockchain you have identity of the
farmers the insurance company they are
willing to insure and once the incidents
that were willing to insure you lower
the risk of that product and the risk is
lower you will be able to get
microlending to learn and single digit
or double digit and we had reduced the
landing rate from a hundred percent to
sing a digit or double digit and that is
the beauty of tokens security and my set
is to balance the profit and social
objectives so there is not a mindset
that we must have in mass adoption
because charity is not going to have us
to do mass adoption at all you have to
combine both profit motives as well as
social objectives for sustainability and
the 40 is decentralization FinTech
companies are good for inclusion we have
seen that in a leap a we have seen that
in Kenya m-pesa and so on but they are
still centralized ok there is a major
problem of doing financial inclusion to
centralize no government would like to
have a centralized FinTech company in
the country the control and higher
payment system so that is the danger or
centralized system and what is
decentralization decentralization is
actually to me a dynamic and continuous
process of distribution of trust and
that is key to a lot of design thinking
that you might must have and what I have
a blockchain that you have whatever
decentralization at Genesis is always
centralized so when you try to do the
centralization it is a continuous
process ok a decentralized system can be
centralized tomorrow if they're left two
of us doing the mining so that is a
thought that we must have in the back of
a mind and we always must remember that
all chain governance are mostly
centralized so there must be a
distinction between on chain and off
chain governance and we don't mix them
out where you may talk about
decentralization it's decentralized on
chain and most of them also type of
chain governance is centralized and we
can do better off chain and on chain to
distribute trust ok and especially on
the child chains as well where we start
so it is important where we have
inclusive blockchain with open
blockchain private blockchain consortium
blockchain secondly that layer child
chains that we start with centralized
governance but we need to controversy
decent rice trusts and my set is a
dynamic distribution of
trust and that is very important for
mass adoption and the 50 is diminishing
oneself and that is the best egg or
satoshi nakamoto he disappeared
besides being diminishing himself he
disappeared and there's no single point
of attack there's no single point of
failure and this is the hardest and the
most essential okay we can look at a lot
of copy corporate Fiat stable coin which
is doing the reverse instead of this
intermediating we are this
disintermediating so we are adding
another layer of intermediary in the
design thinking of the coin that we have
when we try to put something in between
okay so we shouldn't be this
disintermediating okay and you know give
you a maximum list and we are making
ourselves as a center and if you have
super nose you are drawing attention to
yourself and that is the mindset that we
need to have which is we are just
facilitators we are all just
facilitators we are all here just
facilities and our task is to minimize a
single point of attack and failure and
there's our mission that's why we are
here in Prague okay and the signs are
not good for the community for over the
year we can see there's still a lot of
concentration mining yes there's AZ
resistance we're talking about
concentration of wealth we are talking
about concentration of developers we
still need a lot more education we are
continue to expose ourselves to the body
trust in both soft and hard where they
we are talking about in the last few
days so we have security talk over a
scam I see oh we have feared stable coin
which actually distracted us from what
we try to do from 10 years ago which is
to dispute trust and lower the cost of
trust
so there are dependence on third party
trust is that the lowest so we have the
first layer versus the second layer
where it's difficult to get consensus in
the governance of chain but it's better
to have changes and innovation on the
second layer because it's a little bit
more centralized whether those are the
good development we'll leave it to
everybody to decide but we need more
than technical and social scalability
for mass adoption and the focus and
switch in this few days and what we have
seen in the dispute days is a lot of
talk about your knowledge prove a lot
about secure multi-party computing a lot
more about full homomorphic encryption
and very little about secret sharing
okay but data and smart contract privacy
pen testing code or date and we are
talking about open source software as
well as open source hardware and that is
interesting but again we need to think
about distribution or trust because
third-party trust is something that we
have set out to ensure there is minimize
so when we look at all these
well trusted as if it environment and
SGX and more that we have we have to
bear in mind the design thinking of
distribution of trust for mass adoption
okay and safe mass adoption privacy
protection method adoption and the
success though not perfect a privacy
protection is drawing attention
worldwide and this is what the community
has done well in terms of impressing a
lot of investors as well as government
the world mass adoption will be
triggered by more major hex and as soon
as there are more hacks especially when
you're Prime Minister data stolen and
health data is stolen a country like
Singapore will pay more attention to
crypto and I'm sure law you know that
the country I come from Singapore our
date our health it has been stolen and
what is never discussed a lot in this
conference is where it's a sustainable
demand coming from because throughout
the two days a lot of us were discussing
about the supply side the technology
scalability scale and also sure
scalability but where is the demand
coming from we are talking about mass
adoption so it's important to look at
decentralized financial inclusion and
that's the key to mass adoption and he
entails quite a few things this is the
statistics that we need to know 1%
control 50% 12 1% entitled to 82% of the
income last year this is the
Constitution we are in and we have big
numbers who are willing to join
community and we have to bring them back
to join us and this is what mass
adoption is about it's about the demand
side okay the beauty of it is that in
this countries these countries are not
in them there or in Asia okay they have
hundred percent handful and penetration
and we have a digital revolution and at
least four hundred and thirty eight
million in ten countries in ASEAN Asia a
Southeast Asian nation that ready to be
served
and seventy-three percent of them do not
have a bank account they have a handful
they have a cow you can tokenize the cow
on a handphone but they don't have
utilities they have no toilets but they
have a handful and it'll blockchain so
that's why we should be that okay so the
demand is a decent trans inclusion that
greatest demand comes from the excluded
excluded other customers that we have
these are the people and I said we are
we have to try to convert day and set to
live TV SS we shouldn't be working with
stocks and shares we shouldn't be
working with various state we shouldn't
be working with that instruments or we
work with them but with less energy in
those area the community should direct
the attention to trying to convert or
the dead and sex to live teacher that
says like a cow to a farmer as a sheep
to a farmer tokenizing the non
securities and thence securitized the
tokens is what we should do not to
tokenize the security and then subject
ourselves to another layer of legal
compliance we just need one layer which
is to tokenized non securities and then
look for a new token law and request the
government to have a new token law and
not subject ourselves to all securities
law commodity laws and so on we one new
token laws okay and fractionalize
account that you can run ten percent
five percent of cow
yama right here in Prague and
heterogenous it and now you can own the
calf different
the cow you can the milk different from
the cow these are all the things that we
can tokenize with IOT with convergence
of Technology and by serving underserved
and we can we can solve the greatest
mystery of all this economy is going to
leapfrog because they have no regulation
to deal with any of these we devise our
new token law so that they can get cheap
capital by a globalized crypto funding
that we have here for them and there's a
convergence of tag and this is Nick
stage our sea in the next three to four
years I can see most conferences talking
about convergence of tank where
blockchain is the driver where et VM is
the driver and sustainable green
business model that we don't destroy
anymore for us we use drones who are on
the blockchain we use mesh networks on
the blockchain we use satellite payments
using token we do not want to build more
rows and destroy more for us we just
want to use blockchain to do a lot more
green advancement so this is the Penn
critical enablers of mass adoption they
may be contradicting to each other but
this is what I thought you have to have
fast stable internet connection and if
there's no internet we can use mash
Network and that can be tokenized
we can use we need to have interoperable
varying transfer gateway we need her
privacy protection for user we need
strong security framework we talked
about the last two days we need open
source and trust distribution governance
and this is lacking we need to discuss
about governance amongst ourselves cell
governance digital literacy and UX which
is still very weak we need digital ID
okay we need compliance easy okay we do
not want to subject the assisting law we
don't mind to subject to assist the new
laws that's favorable to the token world
but not all regulation and comprehensive
data and Oracle's ecosystem which we
talk about decentralized oracle
yesterday and talent knowledge and
skills which is why we are all here to
exchange views and share whatever we
have now this is the market size look at
that for remittances welfare a donation
ownership of data
healthcare have you ever found yourself
donating to a chair
tea and you never found out where your
money goes so this company attack they
have remittances looking they have
welfare transfer a transfer health care
it is a profitable business it's a
combination of profit motives with
social objectives and this is the
direction we should go
using blockchain with more transparency
and this is a market size it is big you
can accommodate many of us just not
there's just not enough people working
in those areas and we have the fur
Busters baby born on blockchain and this
is also a company that we we invested in
because when you are refugee you have no
identity you have to be given an
identity
once you have identity what they give
birth you need money so what happens is
that a tear has given the money the lady
could go to the hospital and gave birth
now the danger is that when the baby is
born whatever medical expenses is taken
away by syndicate and again blockchain
will allow that
expenses be spanned specifically in the
hospital for medicine for the baby so
this is a baby on the block the block
chain and it is not a myth it is really
happening okay and know what you know
what government are now investing into
blockchain Singapore government Irish
government they are all investing token
well Jim projects and then in Miami you
have the token which I mentioned it is
not a dream it is ready life okay you
can tokenize a cow and you can you can
see the years is that's attack he wants
to break it there's no more insurance
but basically this is how you take on to
your blockchain and again the government
raw break happened 60 million counts to
be tokenized
this these are these are the project
that can be on a theorem or can be on a
lot of other blockchain that we can talk
about and have you ever heard about
cypherpunk government is there a
oxymoron right well what is happening in
Singapore Rubin one using it here
amassing dollars for international
payment okay it's really done
okay Reuben - has just been announced
okay
and we have coda we have a hyper ledger
and we also have quorum and they're
using encryption they're using zero
knowledge and is the central bank I'm
talking central bank who knows more
about different technology than
sometimes than us and then the open
trade blocked in by the government that
and the government is a gnostic and
harness the backs technology and they
expand into the open virtual space and
the best thing you look at a report you
just google rubin to the report says
that they would diminish itself by
providing infrastructure the hell I saw
to she the government would diminish
themselves okay so you here see that
last to priestess is the excluded will
change the world because mass adoption
come from exclusion okay if you are
doing exactly the same thing as the
government and cooperate then it is not
sustainable because they can do it
better than you you try to do security I
don't think you'll be better than any
exchanges that's why this yeast of
compliance is he too much of a develop
economy thinking in design for example
why think about Ricardian contract where
you can have a new token legislation
just prove a new token reg legislation
there are many many countries in the
world that will be able to have that and
that's why investment should go to
places that lay out the Reg happen and
that many more damper was to work with
the etherium community and convergence
on technology brings convergence or
profit and social objectives for the
first time in history we are not charity
we could do that that's why the leap
frogging economy may have mass
absorption before others because there's
no regulation and so on so last slide
the complete we are here to complete a
system not to compete with existing
organization that the cooperates or the
government because blockchain will token
incentivize collaboration we are not
talking about production efficiency
making cheaper faster better we are
talking about collaboration efficiency
and the token itself allows us to allow
our interest and this is important we
are here to complete the ecosystem we
are not here to come
we are here to serve not to rue we don't
make ourselves as the center and this is
important to note that perhaps the
manifesto 2.0 may have to be rewritten
this is just my view and that's all I
have for you today thank you very much I
think I have four minutes for questions
[Applause]
Oh what is the support for the idea that
part of what will help mass adoption is
supporting privacy concerns like I might
I know that that's a huge concern here
but I don't get the impression from the
way people currently use the internet
that that is the concern of many people
of course that might be my view coming
from certain Western places I think
there's a key today's all about privacy
protection and high exercises about
privacy protection and the entire
society is about having independent
decision so every notes a blockchain
every single individual for their own
human dignity we must have our own
independent decisions and we have to
ensure that by having privacy protection
so it's very important to focus on a lot
of I think the last few days we talk a
lot about combination or AI and
blockchain so that we can do a lot of
analysis without actually knowing what
is the metadata and the rotator itself
so I agree with you that this is
something we need to do and is important
to work with government that willing to
diminish themselves so that allowing
individual to have their own privacy and
this is this is key to the entire
exercise and what we are talking about
here perhaps I can bring it out rightly
is exactly what what it is about privacy
protection not only about privacy
protection but also a lot more data that
we have yeah
there's no more question there
hello so I am when it when it comes to
sort of development initiatives and and
tech stuff helping development I tend to
be on the cynical side and I think
that's kind of an important thing to do
is is think about the risks and think
about but what can go wrong and what can
go bad and and if you've seen Zuckerberg
testifying everybody sort of watch this
and and Myanmar was referenced many
times and the adoption the mass adoption
the really quick and I think what you're
talking about is true is in in these
greenfield markets people will adopt
something very very quickly when that
happens I want to know for in your
opinion and that perhaps maybe in the
context of hacia and what are the big
risks wherever where the risk points I
think financial literacy is one of the
most important thing and also privacy
protection literacy which very few
people talk about and I totally agree
with you that we have to be very careful
because technology is actually neutral
even though blockchain is a little bit
more for the weak for the small for the
neglected but it's about human the human
itself that can misuse the technology I
mean we don't have the wisdom we could
destroy the entire human race and that's
the fear that we all have with AI and
the rest and not so much with blockchain
but still we have to be very careful and
what you say is correct but I see new
business model coming out that people
who are not privacy protect back
protection literary or financially trade
there are new business model that we can
help them to ensure that again we have a
trusted third party and how do we these
and tries or these distribute the trust
of this trusted third party new model
that actually protect the private keys
or protect their own human dignity we
need to think deeper and this is what
I'm here today for to trigger the
thinking about we need to continuously
dis real trust we should never stop we
should never stop and we should continue
to not to trust the third party but we
cannot avoid it it is a process that we
have to trust the first party just like
there were only two people mining
Bitcoin ten years ago ever started just
hey oh and and Satoshi
so they started as a centralized Bitcoin
and then it start to become
decentralized but it has to be the
continuous process so we need to
continuously to remind us in our design
thinking whatever you design whether is
and clave for encrypted data that we
draw out or wherever or is that Oracle
which is decentralized we make sure that
we have this effort of continuously
distributing trust non-stop and that's
the only way we can protect ourselves I
don't know whether answer my question
yeah okay thank you very much thank you
you