In Code We Trust | Bitcoin & Ethereum Documentary | Blockchain | Vitalik Buterin | Crypto Currencies

[Music] the Internet is an intricate mesh that lets us share and connect without an emphasis on where we exist and inherently democratizing entity except it holds a registry of every site we've ever seen and tons of companies sit back and pluck the puppet strings keeping us in ecosystems leading us to suffering attention spans hijacked held for ransom converted into data that's passed along for handsome offers and when centralized entities collect our data they create a single point of failure face the facts hackers crack a single lock to attack gaining access to data that should have stayed under wraps and this will keep on happen until we commit to manifest a vision patch the fabric of this backwards system let's seek a better dream our data is trapped so we're taking it back and blockchain will make this game a pain in the past cuz only those we choose will be able to access with passes that automatically protect our assets all right [Applause] [Music] [Music] [Music] if you walk out onto the street a city you're gonna find yourself surrounded by light thousands of strangers people you do not know who they are but you can still interact with them and the reason why that's the case is that we have huge institutional structures that underpin our interactions like legal systems state systems big corporate systems all sorts of stuff this is the reason why we are able to sort of interact easily with some shopkeeper we have no idea today so when the crypto currency or blockchain technology community are talking about centralization they're referring to those institutional structures the original blockchain technology community basically said that what we need to do is to replace that institutional infrastructure with digital protocols that nobody controls what is centralization basically one person or one institution owning everything right tulips driven by the belief that centralized entities are vulnerable to attacks corruption and inefficiencies developers and activists looked for alternatives bitcoins creation was a milestone in this quest for decentralization the cryptocurrency divorced money from banks and governments using cryptographic code empowering individuals to believe other middlemen could be replaced as well Bitcoin create the first system to transfer value without intermediaries and an open network and I think that's only the first element because now we have networks that are building on top of the concept that Bitcoin created of decentralized transfer of value to also have decentralized agreement systems that will enable deep transformations in our societies central to bitcoins innovation is its underlying technology the cryptocurrency introduced blockchain to the world there is a lot of hype about blockchain no but what is the blockchain because the blockchain is really a simple thing blockchain is basically a ledger where each one of its pages is linked to the previous page in a way that if I want to change anything in the past that creates a domino effect that will effect all the subsequent pages so it's very easy to see that some somebody modified that ledger so that's the beauty of a blockchain but that by itself is a if I only have one copy of the blockchain it's not very secure because the hacker can change the blockchain and I have no way to tell what was the original logic so bitten went one step further and what it did is it distributed copies of this ledger among thousands of computers around the world so every time a new page was created each one of these computers was validating that that information was true and was fulfilling the agreement that these computers had through Bitcoin people realized the immutable transparent distributed qualities of blockchain technology meant it could be the tool to decentralize other parts of society we start realizing that if currency can be digitized then other assets can be digitized as well and many other things will be digitized and what's beyond Bitcoin so Bitcoin is really just digital Percy can you digitize gold can you digitize crude oil silver stocks and maybe artworks intellectual properties we didn't call it brought in yet we didn't call blocking it we called Bitcoin 2.0 [Music] in 2013 a 19 year old Bitcoin enthusiast Vitalik butcherin put blockchain technology in the spotlight when he explored its applications beyond currency he laid out his ideas in a project called ethereum ladies and gentlemen to continue this afternoon session please invite up the creator of aetherium Vitalik who Turan thank you hello everyone good - Xin chào good to be in Vietnam for the far Vitalik Bertrand is I think one of the most significant and impactful people of our generation there has been this kind of history of 40 years of research in cryptography including things like I think that he is someone who is somehow seamlessly able to combine very sophisticated thinking around economics around cryptography around technology around society around government around ethics and he's able to process it and kind of put it into a package which he can express through really a protocol basically in many kinds of mechanisms there is a trust problem what our blockchain is good at solving trust problems block chains often together with other kinds of cryptographic technologies can make mechanisms work better in a practice Vitalik proposed a toolkit to create all sorts of decentralized applications beyond currency including the ability to enforce agreements through unstoppable code so after I'd started just started coding it I started to realize what the really what the practical and the social implications were of it and that's when I really got interested that's when I started to think you know this project isn't just about creating another implementation of Bitcoin and with maybe a little bit more flexibility this is the next step in the road to where this cryptographic crypto anarchistic trust free cipher punkish journey is going that was really interesting that was the point where I was kind of hooked and I wanted to see this thing through we can make many things in the world kind of work in ways that are no more fair efficient and inclusive so thank you [Applause] the goal was to create a new simple blockchain that made the technology more accessible to a wider audience similar to the operating system on a Mac or PC anybody can build anything on top of aetherium if you have the code if you have the the will and if you have the the the actual you know drive to make an application out of it then you can make something interesting out of aetherium the idea that it doesn't have any proscribed utility or proscribed application on top is its charm and I think that really attracts a certain type of developer who is interested in kind of looking at the ways that technology and Internet are are failing us and trying to build better solutions one of the most powerful features of ethereum is smart contracts traditionally we use trusted third parties to guarantee a deal in the context of crowdfunding for example we would normally use Kickstarter or IndieGoGo if you reach your target you get the money if you don't it gets reimbursed smart contracts replace the third party with cryptographic code that guarantees the terms of the deal are respected they use the immutable transparent traceable and distributed aspects of blockchain technology to replace trust well a smart contract is not smart and it's not even really a contract it's just a piece of code that executes itself and that's self executing portion of it makes it really interesting for creating autonomous organizations and creating like automated transactions that can't be stopped so for instance if you say if you create a smart contract that says if this person pushes a button then you send two dollars here right you can do that online and it can't be stopped if some government or some legal entity says no stop that please don't don't send money to that address that contract doesn't listen its execute it's going to execute and no one can stop it know this idea of smart contract on it on a decentralized blockchain allows you to drain trust out of a system without removing people's ability to be sure that their interactions will go as they expect and in that sense what we've come up with isn't cryptocurrency it's not crypto finance it's crypto law and no-one's really come up with anything like that in the past right the legal system was one of the pillars of modern society it's one of the pillars of civilization this was game-changing in the sense that it was going to alter the fundamentals of society atheria needed money to come to life they looked to a nascent crowdfunding model called initial coin offerings in short ICO they created a token called ether and toured the world to convince people to buy their tokens I saw his team I was like wow do you have such a lavish team back then he's back there in the Bitcoin industry there's no like ten people team I'll say you have a project manager you have a graphic designer that's like modern luxury right I said I said over Telugu whatever you brave building I don't understand but do come to China and tell us about it and he did he says Eric I wanted to learn Chinese it's a cup to China you might find like a Chinese girlfriend you probably kind of be able to speak Chinese versa so he did he did Ken because of my art network I was actually able to access a very high level and a very qualified level of c-suite executives in the financial industry so these are managing directors and CEOs of some of the major banks in Hong Kong and I was able to have these very frank and very kind of open discussions with them about the ideas of blockchain and help to try and normalize the concept and normalize the the conversation of blockchain and Bitcoin so that it wasn't just this kind of threatening kind of idea to the bank's I was very kind of pleasantly surprised at how willing they were to engage in this idea even some of the banks which were openly anti Bitcoin some of their executives were happy to kind of come to my you know quirky little private lunches with metallic Buddha in you know this is back in 2014 and listen to these strange ideas and walk away with you know they're either their door a little bit further open about what the future of finance could potentially be they were able to raise the funds and ether became a crypto currency traded on an exchange just like Bitcoin the possibilities seemed endless and money flowed in the race to bring applications to life began [Music] more American companies are now embroiled in China's latest food scandal as contaminated meat from the same suppliers has supposedly been sent to Japan our investigation focused on a bowl of noodle soup specifically what ingredients are tainting such a simple dish blockchain is traceable and immutable both useful qualities for industries where it's rust is lacking for food the lifecycle of products can be tracked and shared on a blockchain in a reliable way so here's our product which is called gogo chicken you can find out all the data which is related to this chicken and all stored on their top chain so inside the package will be a whole chicken with bracelet on the chickens today and you never take it out when it's born until it is delivered to the store it's just like your hyper watch when people are walking diaper watch will collect the data and there were stores later and what shows it in your in your iPhone we are doing the same thing the blockchain will make sure that nobody can change the data because if I'm the producer I can fake the data but nobody will trust me actually most of the stuffs in the market are putting some data attached to the product but most of them are faith this technology will prove to my customer the data is true and second the data cannot be changed so here we go this is our product and when the customer get the product they can open it and to have the chicken and here is a bracelet and if you open your phone and can scan a QR code you can get all the data from the whole life of this chicken is warned in Hunan Province it has lived 466 days it is 1.5 kilogram and it has been walked over 2 million steps for for his whole life this is a chicken on the blockchain and this will be the future for the food blockchain became a buzzword for businesses trying to raise money for their projects we are here in Shanghai medicine group we are having a conference of Scylla your conference so Skye later in the sir generational blockchain that will become an infrastructure for a lot of business to build their application on I was on Wall Street you know doing hedge funds right so you realize that all these financial tools is not helping people so I decided I want to come back to China to be an angry West as a early investor for businesses then I think people are very cautious of investing early stage because it takes too long and the most of the failure rate is 95 percent so that makes a lot of young people actually cannot find financing then we have blockchain come out and then suddenly there is a new thing called the ICO the first ICO we did I was done we raised the 20 million u.s. dollar for our companies in six minutes so I was stunned and I just sit there for a long time I think I know the world has changed i ciose kicked off in a massive way in 2017 businesses present their project in a white paper they then issue tokens in limited quantities people buy these tokens during the initial coin offering and the proceeds finance all sorts of projects this is the product for a magical plant eating Chinese medicine so when you eat this it will get very healthy so they have this called a super coin so people will buy coins to be part of this planting season and then they were going to take use this coin to take these products so it's an interesting agricultural product that is the issuing a coin some very good currently there are over one point eight million households on local authority waiting lists for affordable homes in the United Kingdom brick coin will did provide and deliver the solution to a government stumbling for answers a country desperate for a solution so a lot of time in the older world we try to sell products right we try to sell other people something so we even go to advertising company to actually or media to try to help us communicate to get as many consumers as possible right but the in blockchain we have things we say we have an idea and then you try to sell coins if nobody buy your coin you can forget about it because nobody wants it it's not a real to me so that she'd often sit on my lawn the peaked about yo-yo ma rental who may further aho can compete Santos immigrants she talked France dosa woman came complete offense shall pick her defenses tomato so I think us from me and China adored him [Applause] coins can be traded as cryptocurrencies on exchanges and their price is often independent from the project's themselves a speculation market emerged in China this is about money and then I then sometimes you look at it so why you like money so much right they say actually it's their freedom - Chinese population are sold diligent workers they work so hard I think I in that bottom their mind or even they don't realize that they are actually craving use the money for their freedom then I can do what I want or I can give my kids a better future for choosing right choice is important if you don't have money most likely you don't have choice money flooded into icos from people interested in projects or simply looking for the next bit cryptocurrency businesses raised millions even billions of dollars with no watchdog to monitor what they did with the money everyone wanted to get in on the game you look at the white papers and I saw one company that was gonna build this this this this this this this this this this this and we're gonna do it in 2018 and 2019 and I made a post thing that's comparable to this project which is called the Internet and that took decades and thousands of engineers and hundreds of organizations to build that and you're gonna do the same thing in 18 months like a dozen people not going to happen I'm famous for one question it's why does this need a blockchain and it's a very simple question because most of the ideas are there you don't need blockchains I call them fed f ad S stands for fools hey dig and swindlers and most people 95% fall into that category and this 5% that actually know what they're doing a nice people are honest and want to create something productive take off without i SEOs Deng said you know when you open the window after you fire you you hear about an ICO your mind immediately kind of says nope probably want to write about that because invariably it might be linked some kind of scam I mean there's just been so much nefarious weird stuff going on with these kinds of schemes with these token sales I mean I've seen companies that are absolutely struggling and have nowhere to go and their last-ditch attempt to raise money is with an ICO the Central Bank of China bans ICO as Kannada reports banking regulation is official for those of you that work up to the panic China has been icos we saw this last week coming there was speculation the ICO boom hit its peak at the end of 2017 and caught the attention of Chinese authorities this is knowing that a 9/4 document which is September 4th and this was issued by even more departments endorsed by more departments essentially talked about I SEOs being an illegal form of fundraising so that was a huge shocker to that community and of course at the very bottom it talked about exchanges platforms that were doing ICO tradings and Kryptos and all coins and tokens so those a lot to stop so that was a loop loop all claws that caught all of us we didn't expect this we didn't expect full closure this was a real shocker and of course the prices of crypto fell a lot since our last day photo BTCC China this is the day we on September 30th so we're operating for two thousand three hundred and five days a world record at that time for the longest running Bitcoin exchange worldwide and we we essentially closed down the the trading platform I think was 12 noon so all the management team here in the photo and people taking pictures of it yeah the new law had an immediate impact on the International price of Bitcoin and sent waves of uncertainty throughout the crypto community but it didn't deter the investors and companies riding the wave of Bachchan's popularity [Music] in many parts of the world entrepreneurs were beginning to use blockchain technology to provide financial services particularly to capture groups that may be overlooked by governments and banks [Music] Shinoda - una cuenta en el banco nunca habia sannyas que esto en este pais beanie ar-rahim problemas salud entonces cuando maker a basilica dharma e trabajar akka porque a cotton EF want a trabajo que mi Pais shinola tenía la première of três anos h2s in poeple equal to e me me documento entonces m-pesa a trabajar shyam blanco e boy salad oil and mineral tenía un abrazo alto Rijo y que tenia que venir a cantina a poeta near el bebé pork a so cantare Loper dia y Coryell Rigo la vida y todos issue parabola imijo necesita mucho dinero miss her face I am Miriam puesto una cantidad de sumidero ashoka apparat regalo para poder complete our career total cast o una days of en contra una plication lova hecho MBR la solicitude y grande for me sorpresa para que me los zetas una si de la da de entonces ahora de puede ver más a table solicitor citta beretta Rondo el dinero to Sun this may seem too good to be true or even worse a scam but this is considered one of the most powerful applications of blockchain technology helping a population of 1.7 billion unbanked adults access basic financial services application esta Montes or the knob para otra CA coronado chain clientes era Heatran ostrov lotta forma crea Mo's digital men to negotiate era 'aka yock leontes sav cetera salia del dinero de que unos choc leontes cuando lleguemos a la plata que la persona reiki a del press Tom OH SLES a Pilatus le Verrier say Tran Fiera a la vie cetera deftly an internal clientes let us know most Rama soda ting Lohia blockchain see no castle tuna inter father a fika amiable a caper Mita our client a certain on board in digital on highways even know your customer scene is the CIA like on a solution or technology or a technology of lieutenancy the blockchain also records whether the loan is repaid on time and having a good track record means you're guaranteed alone in the future mium or does hermoso it doesn't masa grande que trata do I'm Anita sir Massa salute OBM y Isetta pour complete su primera Nieto now we have you know reliable systems to record our behavior to recall our interactions with society so now we can build reputational models that if they are well designed can protect also the privacy of individuals so it's less important who you are in terms of what a state says you are and how you behave becomes who you are so that is very powerful because you know that enables the creation of trust without trusting if you will blockchain technology proved a useful tool for businesses but the ambition of a radical new form of decentralized human organization remained unfulfilled until 2016 when the stream came a step closer to reality with a project called the Dow the Dow was a project that was built on top of the ethereum blockchain the Dow was the first real attempt at a decentralized autonomous organization basically it was a smart contract that was decentralizes and there was no owner that could stop anything that the Dow did it was controlled by token holders who would send ether to a smart contract and then they would receive tokens for their efforts and those tokens could then be used to vote on which projects they should support it was really the first big experiment that I feel everyone was excited about the dow go way bigger than any of us thought it ended up raising about a hundred and fifty to one hundred and sixty million dollars depending on the exchange rate that you use for ether and that and that was about 14% of all ether an existence this was ethereum most ambitious project to date the funds raised were unprecedented and the stakes were high On June 17th I woke up and there was something weird going on the amount of ether that ether skin said was in the Dow contract wasn't matching it with how much there was supposed to be we realized that oh my god that was getting hacked [Music] the ether was literally just being mechanically sent to another Dao without doubt tokens being burned we had to do whatever we could to slow down the bleed we were able to recreate the hack and we understood that they found a bug in the contracts once the initial hack was public it was an open invitation for others to join in the only option was a counter hack hacking is illegal in so many jurisdictions even white hat hacking which is a good guy hacking right we actually decided to wait until someone else started hacking the doubt and then we would just hack it better and that's exactly what we did in the end there were seven or eight Bao hackers and once we hacked the Dow we also a hacked all of the other little Dow hackers so that we could take over their douse as well and take all of those funds so that we had control of all those funds the way the split function that was that had a bug and it worked was that the funds would be going to a wallet that where they would be locked there for minimum 35 days and with that information known we had 35 days to come up with a solution and so at the original crypto community you basically believed that this has no politics this is not about humans this is not about anything it's about physics and mathematics all right of course if you can't tell some people like oh by the way like your be gonna be governed by physics and mathematics not human interaction they sort of like can conceptually understand it for a bit but like when stuff goes wrong they say actually no like we're gonna go back to human discussion we've got three choices basically we do nothing and when I say we I don't mean you know we some elite people who are just like controlling everything I mean the etherium and the dow community we enact a soft pork which will basically be a very very kind of easy simple low-risk way of altering the network protocols slightly just sort of nudging it into a direction in order to freeze that 14% of fund all we hard for can that's a much more a much more significant undertaking it would actually alter the protocol in a significant way but if we did that we could definitely basically return all of the ether than in this Dow and in the stole and down all that we could return it back to the original holders and basically go poof that was that was a close one at this point at this point the jury's out and I think over the next day or two we're gonna find out what the sentiment is of these stakeholders and whether they really want to do anything against it or not but this is a this is an important case right I think it's about the most important case in crypto economics yeah since the since the birth of Bitcoin yes [Music] as the creator of ethereum Vitalik promoted the idea of fixing the hacker so people could recover the stolen funds he suggests in a hard fork the way the hard fork was designed was that a new transaction that would normally be considered illegal was put into the blockchain so if you go back on the etherion blockchain the hack happens it didn't rewrite history what it did was it allowed for a transaction that shouldn't be possible the character of blockchain is it's called immutable meaning everything on the blockchain ledger cannot be changed and it will go on indefinitely right but but the hard work is really say okay I'm gonna make one change into two and one go destruction in one go on the bad direction so basically imagine you have two Ledger's instead of one i I call out to the terrace they don't do that because for the sake of the immutability of blockchain you should never do this well he says he told me that he has to protect his investor I didn't agree with that nothing like this had ever happened before people didn't know what to think what was right or what was wrong what was possible there had in Bitcoin and really up into that point in aetherium there was this understanding of immutability as a feature of a blockchain but really immutability is not a feature of a blockchain immutability is something that's enforced by culture no code is immutable you can change the code it's on github there were options on the table and coming up against the greater good what is the greater good is it better to uphold this idea of immutability or is it better to steal the money back from the hacker that stole it from all these other people and give it back to them it was in our power to at least give people the option to support a chain where the hack was reversed we released a be kind of attached to the etherium watching as it moved the girl over from the doubt when these hacker would have been able to like check all of the money five days later into basically a refund contract so that we get the money back and this is viewed as much emotional because it it doesn't interfere with the execution of the code exactly exactly as written you know the one he suggested the hard fork but he in no way imposed it and this is the magic of blockchain technology you cannot use blockchain tech to impose your values on other people Vitalik did not mandate everyone has to download the new software and run this thing you would need to upgrade your software and they had to actually push a button while most of the etherium community decided to hard fork others stayed on the old blockchain and two realities coexisting one where the hack was reversed and its currency remained ether and the other where the hack continued and it's coin was renamed ether classic yeah aetherium at that stage was definitely not ready for the Dow or any kind of complex smart contract to be holding funds it really still isn't ready for decentralized autonomous contracts to be holding funds it's very dangerous smart contracts are an experimental technology and that was part of why we couldn't believe people would risk so much money in the Dow because it was so new I you is such a risk to just send money to a piece of software in a programming language that's only eight months old and this is still blockchain being explored by society as a whole people starting to kind of get to grips with it on you know sort of on the lowest level and and slowly climbing up the ladder of comprehension as to how it's going to affect things how they can alter existing solutions and how business and enterprise and indeed the economy of the world will change around it the Dow hack was a turning point for the crypto world people began questioning the role of community in defining the purpose of code the Dow also showed that there was appetite and money for blockchain related projects to thrive a growing community is exploring its practical and sometimes unusual hues cases is the one-of-a-kind exclusive crypto kiddies that will leave and can be used within the cryptic a DS game participant myself so it's a personal representation of some of my feelings around art and blockchain as an art dealer I made my bones in buying and selling rare and special and unique artworks and what's interesting as a parallel between the art world and the Bitcoin and crypto world is that there's a lot of conceptual ideas in the art world and I saw a parallel with with the crypto world ladies and gentleman clock number 2 I can start straightaway online at $11,000 crypto kitties is basically it's like a cat which is just an animated kind of cartoon which is itself a unique token that you can trade the charm extended crypto kitties is that as opposed to say aetherium or Bitcoin where every coin is just like every other coin with something like cryptic kitties or another example as a theorem on the Pokemon of aetherium you have a token which is completely rare and completely unique there is only one of this particular coin now if you think about our physical world the world that we live in every object is basically unique these non fungible tokens these you the assets are much more accurate maps of the world that we live in where people can just trade them back and forth and you can combine them with other cats and they can breed new cats and some of these cats can sell for over two hundred thousand US dollars so it's pretty interesting and impactful area we're at 140,000 going once going twice quirky as it may sound digital collectibles like crypto kitties helped expand the possibilities that blockchain offered the world as long as people saw value for it there would be a market for it it really does boil down to the ideas that are supported by the different cultures and the communities inside of it at the end of the day it's still very much about the people behind it blockchain connects people and I think that you know as a as a as a technology this is really what it does so much better than you know even the Internet itself with its centralized you know kind of points of concentration and power aggregation blockchain kind of does away with all that and creates this very open system blockchain conferences are spreading around the world and businesses are building their own bespoke versions of the technology and we are an enterprise software company that builds what I would call blockchain inspired solutions for enterprise blockchain inspired solutions for enterprise I like being inspired and that creates it creates a lot of debate right because some everybody in the world will tell you what you're doing is not a real blockchain our customers our enterprise and they have real-life problems that have to be solved and if that means diverging the design from what a proper blockchain might be then that's what you have to do in order to solve for those constraints companies and governments created their own closed block chains distributed only within their network of choice a far cry from the disruptive decentralized ambitions of Bitcoin if I was to compartmentalize the various elements of the community you have view the original libertarian blockchain community who's like basic deal is that like capitalism isn't working properly we must create true capitalism my true hyper capitalism then there's like the corporate capitalism crew which is like all the corporations that are using it so like that's the corporate blockchain community saying well we could do stuff with this then there's like an anti-capitalist blockchain community which is very small who are very like anti market and who believe that they can use blockchain technology for enabling solidarity and stuff there's the increasingly like differences emerging and what the actual end goal of this is it's quite diverse right now it's a [Music] this is a tool is not magic it can be used to do harm you can use these systems this identity or reputational systems you can use them to create totalitarian systems to have a creative Big Brother so we have to be very careful how we use these tools so they are enablers of a more free and an inclusive society and they don't become tools of oppression boxing is not about revolution blockchain is about evolution it's it's the next evolution of human organization we have this new way to organize and experiment with human organization experiment with governance of humans and of fun we have the internet and yet our governance hasn't changed in hundreds of years now anyone can create their own governance method they can just build it on a blockchain they don't have to ask permission they can innovate like that these experiments maybe they work out maybe they suck it but we're gonna start playing with it a lot in the next 10 years and we're gonna see what actually can work out and I guarantee something some form of governance using blockchain technology there's going to be 10 times better than what we do today in in our normal governance situation [Music] [Music] [Music]

Channel: Plot11

Views: 98,064

Keywords: In code we trust, bitcoin documentary, crypto documentary, bitcoin, full documentary, blockchain, crypto news, cryptocurrency news, bitcoins, bitcoins for beginners, bitcoin explained, blockchain explained, cryptocurrencies, crypto currencies, crypto, smart contracts, block chain, blockchain bitcoin, digital money, crypto currency, Cryptocurrency documentary, vitalik buterin ethereum, vitalik buterin interview, vitalik buterin, ether, ethereum documentary, ethereum explained

Id: x_qT3cos8Kc

Length: 47min 41sec (2861 seconds)

Published: Wed May 06 2020