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cool good morning um is this working
cool um day five it's been awesome so
far um I'm going to speak on uh uh
towards a dynamic economic social and
political mesh um November 2013 after uh
working on various Bitcoin Bitcoin 2.0
projects V uh wrote version one of the
ethereum white paper uh in January 2014
in Miami uh it was announced uh to some
Fanfare actually um July 30 2015
ethereum 1 was released many people
around the world constructed their own
Genesis blocks um fired up the client
they downloaded and watched in amazement
as this tool which embodied a new
organizing principle for Humanity
organized itself into
existence uh the ethereum project has
built the first general purpose World
computer its Dynamics and capabilities
arise from a Synergy of five interacting
technological elements that are common
between the Bitcoin and the ethereum
protocols uh first is a blockchain um
data structure sure that you're all uh
quite aware of uh second is the
cryptographic token the Bitcoin or ether
uh third is p toer networking systems so
that turns a traditional client server
like infrastructure into a an
infrastructure in which all nodes are
clients and servers um consensus
formation algorithm in ethereum all
transaction processors uh come to
consensus about what happened and when
with respect to transmission and storage
of The Ether value token
as well as coming to an agreement about
all the processing that occurs on all
the shared programs on the world
computer um Fifth Element is a virtual
machine uh uh Bitcoin has a a very
simple virtual machine a very simple
programming language um essentially if
you're going to build an application on
bitcoin um you need to figure out how to
stuff all the data that you care about
into a a small number of bites um and
you need to build Behavior onto that you
have to build that generally outside of
the protocol um and if you want it to be
secure you need specialist developers to
to use cryptographic Primitives to do so
um so ethereum's core value at least
with uh uh with respect to bitcoin um is
that ARB arbitrarily complex
decentralized applications can be built
by non-specialist programmers uh
entirely within the protocol
um so these five components uh combined
to represent a computational resource a
bandwidth resource and uh very expensive
storage resource
um and essentially ethereum is a global
computational resource um Beyond um it
can do all the things that Bitcoin can
do and Beyond what Bitcoin can do it
enables uncensorable uh pseudonymous
transmission of value on a global system
in which all the transaction processors
agree on what happened and
when um to this decentralized world
computation substrate uh we can add
storage uh on other types of
decentralized systems and bandwidth on
other types of decentralized systems and
you get the ethereum world computer uh
it's
transparent um deeply secure
non-repudiable um transactions um and
natively interoperable meaning it's easy
to uh have one program use another
program's data or to call functions from
another program um and essentially the
ethereum world computer serves as a
substrate for building global economic
social and political
systems um ethereum world computer also
represents a strong cryptographic or
mathematical foundation on which to
build all of our systems um as compared
to um systems that are built um uh of
humans and laws um uh so um legal
business Information Systems in those
contexts uh tend to be siloed um
improper manipulation of information uh
is common and consequently over
concentration of power
prevails um the ethereum ethereum
version one is largely feature complete
um it's released it's running
beautifully lots of people around the
world including many people here are
building decentralized applications for
it uh it was important to get it out in
the world as quickly as possible so that
we could all learn to build
decentralized applications and figure
out how to to build companies and
decentralized companies um in the space
um I think we have a few years before we
really require a scalable protocol um
and that is certainly underway so there
lots of projects that have been going on
for a year or so um towards that um and
in my opinion scalability is the Holy
Grail uh first system to achieve it um
will probably dominate for quite a
while um so consensus and uh many other
developers here and around the world um
are building uh at the foundation uh
application layer of ethereum an
economic social and political operating
system so that's a a set of core
components on which we can all build
applications that that will enable the
world to run itself according to a
horizontal consensus driven organizing
Principle as opposed to the tra
traditional top- down command and
control Paradigm um some of these core
components include wallet identity
reputation system Registries token
issuance and management token exchange
stable token systems voting systems cron
systems glue systems uh and more cron
systems apparently
um uh micro payment channels uh another
um critical element for um for massive
scalability uh dap stores dap stores
everywhere for lots of different uh uh
kinds of purposes uh uh many different
libraries we're going to have to uh
essentially um build all of the
libraries onto this decentralized
infrastructure uh eventually um and
metamask so um browsers different kinds
of browsers to uh to enable different
kinds of devices um in different context
to be nodes on the
network um on top of these components we
and others are building Standalone
decentralized applications so triple
entry accounting system smart document
creation and management system
decentralized Reddit uh governance
system crowdfunding system uh we're
experimenting with different financial
instruments including a total return
Swap and and a call spread um we're
building a couple of
games um and more games
soon um the other major component of
what we're doing and what other groups
are doing are open platforms or open
industry platforms uh so these platforms
are one approach to building a mesh of
businesses um so we build the platform
Define an initial set of interacting
roles on the platform uh possibly fill
some of those roles stand up some
businesses to fill those roles initially
and um and let Market forces uh take
over and let the platform evolve so we
anticipate that uh um uh people in their
Ingenuity will um create many more roles
on these open platforms um to create
these platforms uh we sell tokens that
are intrinsic to the operation of the
platform um tokens Can represent
governance and dividend rights uh tokens
uh can fund a foundation uh which
Shepherds future development um might
sound familiar um many people and
companies uh can be on these platforms
uh and make a living or make a partial
living um so some of the platforms uh
that are under development our our
prediction markets platform our music
industry platform our event and
community community management platform
ether poker will be a platform and ether
loan is also under development um other
platforms that are out there uh include
slock uh slock is both uh software and
soon to be a decentralized organization
uh maker same thing
um two of the platforms that we built
are uh an open energy markets platform
or that we are building is an open
energy markets platform and a community
supported agriculture platform these are
resource generation platforms um so they
both have the same underlying
architecture there are gener ators um
photovoltaic arrays or Farms um soil
seeds water um and these on these
platforms uh um stakeholders generate a
resource kilowatt hours apples potatoes
uh they optionally store the resource uh
they issue tokens against the resource
um and they sell tokens into the open
market which can be deemed either on a
spot Market um or they can also issue
Futures and options um so that uh the
generators can hedge their activity and
consumers can plan and provision
um uh these platforms will each
constitute meshes of businesses and
these meshes will probably interoperate
there will be uh overlapping meshes of
meshes um so you can imagine in a day or
in a a year or two um Alice can possibly
trade her kilowatt hours and potato
tokens for Bob's Apple tokens um
probably on
ether um so the invention of money um
has been spectacular for society even
top down command and control has taken
us to this which is quite spectacular um
but we can probably do better uh money
is an abstra an abstraction that
facilitates barter um but the money
abstraction has required levers of
control and power um money those lever
cause money to SLO around the world
creating um tremendous growth or
tremendous dir uh essentially um
instabilities it's a control system that
uh uh tends to overshoot quite often um
so having our tokens directly backed by
assets um or resources should reduce
much of the instability that the use of
money systems introduces um this gives
you all the goodness of barter without
having to carry a cow or be oil around
with you um so the nothing at stake
problem so perhaps the biggest problem
we face in the world today is that there
are too few people uh who feel they have
real stake uh in the human Enterprise um
there's too little ownership too little
self-sufficiency too little personal
sovereignty um too much leeching on the
week or looting from the state a
gentleman named Ronald Coos won the
nobbel prize for his theory of the the
corporation um um as a company grows the
cost of the marginal transaction uh
needs to be less than getting that same
task done in the open market um there
are efficiencies um when communication
is expensive and de decision- making is
slow and expensive there are
inefficiencies in in keeping those
mechanisms internal rather than throwing
them into the open market um so that
effectively um um when he was thinking
about that that limited the optimal size
of the corporation um but if you turn
this thinking around then we can think
about uh um the minimal optimal size of
the corporation uh so in a context in
which Communications and decision-
making are fast and cheap um makes sense
to Outsource everything uh into the open
market except your core
competency um 10 years ago cost a lot of
money to do a tech startup today costs
less money um two years from now um will
probably cost remarkably less money um
when it costs $500 or $50 to form a
startup that solves a local or Global
problem recognized by a smart
entrepreneur anywhere in the world um we
will really be on our way to becoming a
planet of
stakeholders uh so consensus is still
working out the details of its
organizational structuring plans but uh
in Broad Strokes uh consensus is a
constellation of projects or companies
projects that will become companies in a
hub and spoke architecture every member
um will have equity in the hub every
member will have direct equity in their
own projects um we aim uh it is our
major goal to um have and continue to
facilitate rapid full open
Communications sharing collaboration um
and we will do this uh with me
mechanisms that incentivize all to share
information help each other out um and
essentially root for each other to
succeed because we all own
everything
um so we're currently constructing
protocols which make use of some of the
core components we built to structure
govern and operate the consensus Hub on
the blockchain um also each of our spoke
projects will be able to independently
structure govern and perhaps fund
uh and operate themselves using those
exact same tools so each spoke project
is essentially a quasi independent
entity um and all of those quasi
independent entities are actually quite
interdependent on one another when that
ceases to be the case um then there's
nothing stopping them from spinning out
and and doing their own thing uh so
consensus encourages the entrepreneurial
Spirit uh Founders on a project will
form the project using these same tools
Uh define equity splits and then
negotiate terms with their consensus
peers um if they wish to attach that
project to the consensus mesh um going
to these are partially written these are
protocols for using a bunch of the tools
that uh we've built um for building
blockchainbased
orgs um and also potentially building
blockchainbased orgs that have uh State
registration as well
so the visible hand Protocols are in the
early stages of development they
suggestions they're not mandatory if an
org uh wants to form itself Fork any of
the protocols modify them they're
certainly free to do so um the visible
hand protocols make use of a suite of
tools we're calling blockwork org uh for
building and running blockchain resident
organizations um The Suite of tools
includes wallet ID Persona reputation
boardroom way fund regist
token issuance and management token
exchange uh accounting smart document
formation and management um and
eventually uh we would love to see a
GitHub like system to enable us to
manage uh some of our day-to-day or all
of our day-to-day activity so what that
would look like would be uh core members
of a project essentially Define a suite
of tests and throw some bounties out
into uh the system and ideally people
from all over the world world uh show up
uh write some code pass the test doesn't
even have to be code it can be a logo or
a piece of Pros as long as the
tests um can be passed and that can
involve a suite of oracles perhaps um
then the Bounty gets
paid um so this mesh and government
structure enables startup minded
entrepreneurs to pursue one or more of
their projects while benefiting from the
diversification
of the entire consensus portfolio
ideally this mesh will be composed of
many intern interconnected Hub and spoke
structures with more being constantly
added or fading out of existence as
they're no longer necessary um we expect
that with people all all over the world
contributing to projects and collecting
bounties the boundaries of of the
consensus mesh will
fade
um and perhaps uh in time consensus will
be seen as the Genesis Hub of a large
spreading mesh of hubs so consensus as a
hub and spoke system and ideally many of
our spokes will grow into Hub and spoke
systems in their own
right uh consensus and some of these
blockchain resident spoke orgs will
often be anchored in the real corporate
world uh with properly constructed
articles of Association that reference
blockchain governance mechanisms uh
certain jurisdictions have expressed to
us interest in helping create hybrid
blockchain resident uh black
blockchainbased State resident
organizations uh and I expect that this
will supercharge
jurisdictional uh incentives Taxation
and Regulatory
competition uh other platforms that
you've heard about at this conference
and in other places are constructing
their own meshes uh Nexus uh is it
sounds like they're putting together a a
decentralized organization um for their
ethereum name system maker will be a
decentralized organization augur has
done a great job on building a
decentralized organization slock will do
a great job on building a decentralized
organization um slock is an amazing
proposition um basically giving
everybody a chance to own a large piece
of The Internet of Things um that's a
pretty tangible stake in the world
um I expect that there will be meshes of
blockchains uh so underlying meshes of
businesses will have an infrastructure
constituting uh constituted of Mees
meshes of blockchain so the public
ethereum network because of its
computational power can be side chained
to any other blockchain protocol uh
private and semi-private Consortium
chains um can be side chains of public
ethereum um
or um it's very easy to access a public
chain a Consortium chain and the public
chain um in a single business process
uh so it should be easier and less
expensive to start fund and operate a
wide variety of businesses on the
blockchain so I expect that
non-developers um will also benefit
massively from this mesh um
uh I imagine
there will be many Innovative uh
developments but you can imagine
cognitive tasks like uh
translation um so I've been hearing some
people say uh that this blockchain thing
is going to take over the world or that
ethereum will take over over the world
even a couple people jokingly said that
consensus is going to take over the
world
um so top down centralized command and
control with its concomitant siloed
information and power is unstable uh
it's inefficient it's not very well it's
reasonably effective but it could be
more effective um but big prizes uh like
The Wealth of Nations um tend to attract
capture by well-resourced patient groups
um so they're always have been uh cycles
of Revolution and consolidation um and
if inevitably since power corrupts uh
the new boss becomes just like the old
boss um but the mesh is fine grain flat
responsive and efficient so Solutions
will emerge from it to solve problems
when and when done the elements will
reconfigure themselves and solve a
different problem these are Quasi stable
Dynamic equilibria imbalances and
frictions or blockages will not be able
to persist enabling Fair more fluid
unsoed systems so if successful this
blockchain thing might just make it
impossible to take over the
world so if we combine A fine grain set
of overlapping economic meshes with a
plethora of resource or asset back
tokens uh you might just have a quasi
stable foundation for a global economy
this could enable a world of mostly
stakeholders uh and with nothing but
stakeholders there's much creation and
little destruction um which sets the
stage for extremely rapid exponential
growth to the
Moon thank you
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