quick question in your view there's a
there's a lot of talk out there
regarding Bitcoin and blockchain what
what is the difference in your view
between blip coin and blockchain how are
they central how are they similar how
are they different blockchain is one of
the foundational technologies that was
invented at the same time by the same
person or persons for Bitcoin and in a
desperate attempt to co-opt embrace and
extend this technology many of the
companies and governments out there who
are really looking at opportunities to
create centralized versions of this and
are missing the fundamental point which
is decentralization are grasping on this
blockchain technology and trying to
circle the square trying to change this
so there's a bit of bargaining going on
when I say bargaining I'm referring to
the five stages of grief the response to
Bitcoin has been denial anger and now
we're in bargaining and the bargaining
stage is yes Bitcoin but not Bitcoin how
about blockchain without the currency
that represents a fundamental failure to
understand what is the real value
proposition here the real value
proposition is a decentralized system
the decentralized system itself only
works if control over it is
decentralized then that only works if
there is a mechanism by which the the
network can be secured that mechanism is
a competition based on game theory that
involves miners as they're known don't
worry about what that means but what
they're doing is competing by staking a
currency Bitcoin in this case or any of
the other digital currencies and using
that to guarantee that they're going to
follow the security rules if they follow
the security rules they get rewarded
again in the intrinsic currency of the
network and if they don't follow the
security rules they lose and they lose
the investment they've made in
electricity or in currency that they've
staked that mechanism is at the heart of
making the system secure without the
currency you can't do the security
without a currency you have to have a
central authority that decides if a
transaction should be included or not at
that moment it is no longer borderless
it is no longer censorship resistant it
is no longer neutral it is no longer
open every participant must be vetted if
someone has control in our legal systems
they immediately have a duty right a
responsibility which means that you
can't give anyone control because if
they have control all of the other
features go away with centralization a
better way to explain the difference
between Bitcoin and blockchain is this
the new automobile has come on the scene
horse breeders stable managers and horse
carriage builders are freaking out so
what do they do they say the technology
behind the automobile is the pneumatic
tyre we would love to adopt this
technology we will introduce pneumatic
tires to all our horse carriages and
this will preserve our investment in
horses guess what
pneumatic tires are great but what's
really interesting about the automobile
is the no horses part it's the actual
internal combustion engine and if you
say yes we like that but could we put a
horse in front you've missed the points
blockchain is that blockchain is saying
pneumatic tires are the future but this
whole internal combustion engine is a
fad that will either die away on its own
or we will lobby government to ban it
that's where we are with blockchain
you