Translator: Riyad Almubarak Auditor: Ayman Mahmoud It is the technology that is likely to have the greatest impact Over the next few decades Have arrived. It is not a social media platform. It's not big data. Not robots. Not even artificial intelligence. You will be surprised to find out It is the primary technology for digital currencies such as Bitcoin. Which is called a blockchain. Blockchain. Currently, it is not the most buzzword in the world, But I believe she is acting now The new generation of the Internet, And it holds very big promises for every business and every community Each of you is one at a time. You know, over the last few decades, we've had the Internet of information. And when I send you an email or a PowerPoint file or anything else, Actually, I am not sending you the original.
I am sending you a copy. And that's a great thing. This is democratized information. But when it comes to assets – Things like money, Financial assets such as stocks and bonds, Loyalty points, intellectual property, Music, Art, Voting, And carbon certification, and all the other assets – Sending a copy is a really bad idea. If I send you a $ 100 bill, Because it is really important that I no longer have the money – (Laughter) And that I can't send it to you. Secret code writers called it a "double spending" problem. Long time ago. Therefore, today we depend completely on the big brokers – Intermediaries such as banks, government, And huge social media companies, credit card companies and so on – In order to establish confidence in our economy. These middlemen perform all of the business and transactional logic For all types of trade, Starting with verification and identification of persons, Even settling accounts, reconciliation and record keeping. Overall, they are doing a very good job. But there are growing problems. To start, they are central. Which means they're vulnerable, and increasingly – JP Morgan, and the US federal government, And LinkedIn, Home Depot, and others They all knew it the hard way.
They excluded billions of people from the global economy, For example, people who do not have enough money To get a bank account. They slow things down. It may take up to one second to send an email for it to travel around the world. But it can take days or even weeks For the movement of funds through the banking system through a city. And they take a big stake to do that – 10-20% for sending money to another country only.
They take over our data, And that means we cannot monetize it Or use it to better manage our lives. Our privacy is being undermined. And generally speaking, the bigger problem is, They dedicated the bounty of the digital age asymmetrically: We have created wealth, but we have increasing social inequality. So what if there is something besides internet of information, What if there was a valuable Internet – Something like a large, global, distributed ledger It works on millions of computers Available to everyone.
Any type of asset, from money to music, can It can be stored, transported, handled, exchanged and managed All without powerful intermediaries? What if there is an original mean of the value? Well, in 2008, the financial industry crashed Perhaps that was a good thing. An unknown person named (Satoshi Nakamoto) or several people Create a paper where they developed a protocol for digital money And who used a basic cryptocurrency called Bitcoin. This cryptocurrency has enabled people to establish trust and make transactions Without the need for a third party. This seemingly simple act sparked I set the world on fire, The thing that made everyone either excited, panicked, or otherwise interested In several places. Now, don't get confused about Bitcoin – Bitcoin is an asset; It rises and falls, This should be within your interest if you are speculating. More broadly, it is a cryptocurrency. It is not a fiat currency controlled by the state.
And that's a very important thing. But the real pony here is the technology behind it. It is called the blockchain. So for the first time now in human history, People everywhere can trust each other And perform peer-to-item transactions. And trust is there, not because there are some huge institutions, But because of cooperation and encryption And some smart blades. And because trust is the home for technology, I call this, "Trust Protocol." Now you might ask: How does this thing work? very good.
Assets – technical assets like money to music and everything in between – Not stored in a central location, But distributed through a global ledger. Using the highest level of encryption. And when a transaction is made, It is published worldwide, Across millions of computers. And there, around the world, There is a group of people called "prospectors." These are not adults, they are Bitcoin miners. They have immense computing power at their fingertips – 100-10 times larger than the entirety of Google's global network. These prospectors are doing a lot of work. And every ten minutes, In what looks like the pulse of a network, A block is created All transactions made during the previous ten minutes are booked.
Then the prospectors get to work, trying to solve some difficult problems. They compete with each other: The first prospector to discover the truth and verify the validity of the block, It is rewarded in digital currency, In the case of a Bitcoin wallet, it is rewarded with Bitcoin. And then – and this is the main part – The block is attached to the block prior to it And previous to her To create a series of blocks. And each one of them sealed with a certain time, Its what looks like a digital wax seal. Therefore, if you ever wanted to hack one of these blocks Then, for example, the transfer, if I want to pay you and you the same currency, I have to break through that block, In addition to all the previous blocks, And all the trade register on that blockchain, Not just on one computer but across millions of computers, together, They all use the highest levels of encryption. It is based on the most powerful computing resource in the world Who is watching me.
Hard thing to do. It is very safe Compared to the computer systems that we deal with today. It is the blockchain. And that's how it works. So the Bitcoin wallet is just one of them. There are many others. A Canadian named Vital Buterin developed the Ethereum blockchain. He is 22 years old, And this blockchain has extraordinary capabilities. One of them is that you can build smart contracts. That's what it kind of looks like. It is a contract that is executed personally. This contract addresses implementation, management and performance And payment – this contract also contains a bank account in some way, meaning – For agreements between people.
Today, for the Ethereum blockchain, Projects are being worked on to do everything Starting with creating a new alternative to the stock market Until the creation of a new model of democracy, In which the politicians are accountable to the citizens. (clap) So, to understand how much drastic change this will bring, Let's look at one area, financial services. Do you know this one? It's Robbie Goldberg's machine. It's a ridiculously complex machine that does something really simple. Like breaking an egg or closing a door. Well, it kind of reminds me of the financial services sector, In all honesty. I mean, you put your card in the corner of the store, Then a stream of information travels in binary form across dozens of companies. Each has its own computer system. Some of them are computers dating back to the seventies Bigger than many people in this room, Three days later, the settlement is done.
Well, with the help of the financial sector blockchain, There will be no settlement, Because the payment and settlement are in the same movement, It is just a change in the ledger of accounts. So on Wall Street and everywhere around the world, The financial sector is in a state of great upheaval regarding this matter, I wonder, can we be replaced, Or how do we embrace this technology to achieve success? Now, why should you care? Well let me show you a few apps. Prosperity. The first era of the Internet, Internet of information, Bring us wealth but not common prosperity, Because social inequality is increasing. This is the essence of all anger and extremism Protectionism, xenophobia and even worse And this is what we are witnessing in the world today, Brexit is the latest case. So can we develop some new approaches to this problem of social inequality? Because the only approach today is to redistribute wealth, Tax people and spread them more widely. Can we distribute wealth before that? Can we change the way wealth is created in the first place? By democratizing wealth creation, And involve more people in the economy, And then making sure that they get fair compensation? Let me show you five ways this can be done.
number one: Did you know that 70% of people around the world own land? They have a whimsical address for her? So, she owns a small farm in Honduras, and a dictator takes over the government, He says, "I know you have a paper that states that the farm belongs to you. But the government computer says my friend owns your farm. " This happened on a large scale in Honduras, This problem is found everywhere. The great Latin American economist (Hernado de Soto), He says that this is the number one issue in the world In terms of economic mobility, More important than having a bank account, Because if you don't have a valid address for your land, You cannot borrow under it, And you cannot plan for the future. So companies today are working with governments To place land titles on the blockchain. If so, this is not subject to change. You cannot hack it.
This creates the conditions required for flourishing Maybe for billions of people. Second: A lot of writers talk about the Uber app And the site Airbnb, Tusk Rabbit, Lyft, and others As a kind of shared economy. This is a very effective idea. Together, users can create and share wealth. My point is … These companies don't really share. In fact, they are successful precisely because they do not share. They bundle services together, and they sell them. What if, instead of Airbnb being worth $ 25 billion, There was a distributed app on a blockchain, we'll call it b-airbnb.
It is basically owned by all people Who have a room for rent. And when someone wants to rent a room, Enter the blockchain data and all parameters, They scrutinize it, this helps them find the right room, Then the blockchain helps in contracts, It recognizes the limb, Handles the payment order With digital payments only – built in the system. It also handles reputations until, Because if the room is classified as a five-star room, That room is chosen, And classified as something immutable. Therefore, it is the ones who are disrupting the shared economy of Silicon Valley They may be overwhelmed, This would be a good thing to thrive. Number three: The largest inflow of funds from developed countries For developing countries Not an investment for companies, Nor is it even with foreign aid. They are cash transfers. This is the global diaspora; People who left their ancestral land, And they send money for their families back home. This equals 600 billion a year, and the number is increasing, These people are being circumvented. Analie Domingo is a housekeeper. And she lives in Toronto, And you go to the Western Union office every month. With some money To send her remittances to her mother in Manila.
This will cost her about 10%; It takes four to seven days for the money to get there; Her mom never knows when the money will arrive. She takes five hours out of her week to do just that. Six months ago, Anali Domingo used a blockchain app called Abra. Using her cell phone, she sent $ 300. Which went straight to her mother's mobile phone Without going through a middleman. Then her mother looked at her mobile phone – It's similar to Uber's interface, in that there is an Abra "teller" moving around. I pressed the cashier with a five-star rating, Which was seven minutes away.
The young man arrived at her door, giving her a Philippine peso coin, She put the money in her pocket. It all takes minutes, And that costs her 2%. This is a great opportunity to thrive. Number four: Data is the most powerful asset in the digital age. Data is, in fact, a new class of assets. Perhaps larger than previous asset classes, Like the land under the agricultural economy, Or an industrial facility, Or even money. And for all of you – we – create this idea. We create this asset, We leave this digital gestures trail behind As we move forward in life.
These crumbs are collected to form a mirror image of you, You are the default. It may help you to get to know yourselves more than you knew. Because you will not be able to remember what you bought last year, Or say last year or your exact location last year. And you hypotheticals are not yours. That is the biggest problem. So today, there are companies that are operating On creating an identity in a black box, The virtual you are your own. And this black box moves with you When you travel around the world, He is very, very stingy. It gives only a small amount of information That it takes to complete something specific. Too many transactions, The seller doesn't even need to know who you are. What they need to know is that they have been paid. Then this idea is embodied in all this data And enable you to convert it into cash. This is wonderful.
Because we can also protect our privacy, Privacy is the foundation of any free society. Let's take back this asset that we're creating Under our control, So that we have our own identity We manage it responsibly. in conclusion — (clap) In conclusion, number five: There are a large number of content producers Those who do not receive fair compensation, Because the intellectual property system is malfunctioning. The Internet's first age is the reason it was sick. Take music, for example. Musicians are left with the crumbs at the end of the entire food chain. You know, 25 years ago, if you were a songwriter and wrote a hit song, It produces a million singles, You can get equity of around $ 45,000.
Today, you are a songwriter, composing a hit song, You get 1 million views, You don't get 45 thousand for it, It's $ 36. Enough to buy a delicious pizza. So (Imogen hep) Grammy Award-winning singer-songwriter, She is currently putting songs on a blockchain ecosystem. She called him "Mycelia." The songs are protected by a smart contract. And the songs themselves protect their private property rights. Do you want to listen to a song? It's free, or maybe just a few small cents streaming into a digital account. If you want to use the song in your own movie, that's a different matter. The IP rights are fully defined. Do you want to make a ringtone? That is a different matter. She explains that the song becomes a business. She is available on this platform and markets herself, Protect the rights of its author, And because the song has a payment system Meaning a bank account, All the money flows back to the artist, By this they control the industry, An alternative to these powerful brokers.
Now, this is – (clap) These aren't just songwriters, Rather, any content product, Like art, And like inventions, Scientific discoveries, and journalists. These are examples of people who do not receive fair compensation. With the help of blockchains, They will be able to get the money flowing down the blockchain. And that's a wonderful thing. So, these are five opportunities Among the dozens To solve one problem, which is to achieve prosperity, And it is one of an endless number of problems To which blockchains can be applied. Now, technology certainly doesn't create luxury – but humans do But the case I'm showing you is, again, That the tech genie escaped from the bottle, He was summoned by an unknown person or persons In this ambiguous time in human history, Which gives us another opportunity, Another opportunity to rewrite the web of economic power And the ancient arrangement of things, And to solve some of the world's insurmountable problems, If we do that. thank you. (clap).