The future of money

A sharing session by Andreas Antonopoulos* in Berlin on 29th March 2016, Thoughts On The Future of Money.

If you got time, the whole presentation till 20:21 minutes is worth it. The rest is Q&A session.

If you want to get the whole picture of why the Bitcoin movement, the info shared from 17:20 – 20:21 is good enough, to save you some time.

As an engaging public speaker, teacher, and writer, Andreas make complex subjects accessible and easy to understand. In this video sharing below, Andreas uses the analogy of Lego and fast food burger to illustrate the Blockchain technology as compared to our current banking system.

Andreas Antonopoulos: On the Future of Money – Berlin 29 March 2016

Some notes:

It is a platform that guarantees certain trust functions. If you happen to have a platform that guarantees certain trust functions, one very useful application for that is to build a currency, and a payment network. But you can build more things.

It’s a perspective of how you look at things because from an abstract perspective, Lego is messy.

Cooking is a perfect combination of art and science.

The point is unleashing creativity by giving me the tools and the elements I need to build something unique.

This is a set of ingredients (Blockchain technology) and you have one recipe (which is Bitcoin) but you can make a different recipe.

Hashlock time contract + multiple payment channels connected together = Lightning Network

We are trying to unleash the creativity of an entire generation.

We are building a system on top of which, a thousand applications that require trust can be built.

When you have the ingredients, when you have these basic elements, what recipe you build is entirely up to you.

We subject ourselves to this mechanism that has streamlined itself. They have built a system that can only do one thing, enslave us, impoverish us.

That system removes freedom in the most possible to deliver profit.

* As a bitcoin entrepreneur, Andreas has founded a number of bitcoin businesses and launched several community open-source projects. He is a widely published author of articles and blog posts on bitcoin and is a frequent speaker at technology and security conferences worldwide.

“Blockchain” or Bitcoin: Understanding the differences

It is a space that had existed for only 7 years.  It does represent something truly revolutionary.

  • A fundamental change in our understanding of trust.
  • A change in the way we organize authority and trust from hierarchy system to network-centric flex system.
  • A reimagining of what it means to have currency, how currency derives its value.
  • A new system for disintermediating intermediaries.
  • A rebalancing of world affairs.

All of these things are true but we don’t really know how this is going to play out.

Sitting in the front row of history. Observing history in the making.

What is bitcoin? What is the blockchain?

Bitcoin is the first blockchain.
Bitcoin is the largest open global blockchain that exists today.
Bitcoin is the first borderless, transnational, open system of access for financial payments and trust that enables innovation without permission, with high resistance to censorship, coercion and geopolitical manipulation.
Bitcoin is a mathematical prove system that is fundamentally neutral to participants. It exhibits the principle on the internet that we called net-neutrality and bring that to finance, which of course, terrifies people.

Finance without concern for a source, destination, or amount?
Neutral routing of transactions?
Equal for everyone?
That idea is terrifying. Where does authority come from? Where does trust come from?

It’s almost as if suddenly we no longer pay attention to, the New York Times, and instead, anyone can publish their opinion without an editor. What will the world come to?

What the internet did for communication, bitcoin is doing for finance.

It is introducing a fundamentally different network centric and flex system that allows us to do transactions without recourse to authorities or intermediaries and that derives trust from the collaboration and computation of thousands of nodes. It uses a blockchain. The blockchain is one of the several components that make bitcoin works. And if you focus too much on blockchain you may miss the point.

Social Enterprise

I can get rich, and then donate some of my money to good causes.

Why not run a company that concentrates on improving social and environmental conditions through its daily operations instead? That’s a lot more efficient, and ultimately more satisfying.

We often justify the unscrupulous actions of modern robber barons because they contribute money to philanthropy and the arts.

From a purely economic perspective, philanthropy is inefficient.

A person who has accumulated billions of dollars and in doing so has caused others to lose their jobs, closed the door of small businesses, or ravaged the environment, and then donates a small percentage of his fortune to correcting those problems or to the arts, would have served the world far better by making fewer profits while increasing employment, supporting small businesses, and insisting that his executives practice good environmental stewardship.

Excerpt from the book published by John Perkins back in November 1, 2011

Hoodwinked: An Economic Hit Man Reveals Why the Global Economy IMPLODED — and How to Fix It