ETHWaterloo II - Panel Discussion on Internet Money

just portrait housekeeping you anybody's interested in washroom throughout the second floor let's say I having this fantastic can we put around round of applause again [Music] I said we've been through an introduction Joey crew co-founder a walker which is actually the first one of the first to est 20 tokens on aetherium we've got the warrant from zero X which is the pretty much pioneering like moving the needle on decentralized exchanges training and then from believe you're right so probably cash out and now the founder at that sorry so the cool thing might have been a French tweak to the net guys great thanks thanks for being here I wanted to start off with you what problems are you saying that are appealing what's the centralized finance appealing to you let's make it appealing to you what do you think the biggest problem that you guys would success look like Eagles yeah so it's your works we have a mission to seeing that tokenize public genes from Asus gaming under this prediction or his and so we believe it if this value is up tokenized auctions it'll democratize financial services and injuries so orga or person organs of these so it's a long time it's been very methodically it'll keep utility already it's a bit more about cuz I feel like there's a lot of complexity to [Music] so show pants whose use any decentralized finance products with d5 and typically constructive lending now when whether it's a balloon or transferwise shadow it's too difficult for them to do it all on their own so what they do they go to event is going to white label all those services they're going to aggregate and charity professors so become sort of this you know by a thousand paper cutter service being in that I feel like one of the most important things about compliance is collaboration and trying to focus on being expert in this area I'd love to know how important is collaboration or is it orbit competition situation the same rules apply things have please so so with the marketplace right going let's say possible foods going to boutique schools and magical the planet Ori create an inventory we have a Sea Turkey violation those products onto something like zero X in the future definitely yes and one of the things I think is really interesting about is you know predictions future insurance being able to create specific outcomes or at least for possible you know guys typically speaking how important was predictability to controlling risk in in the market and if risk is going to in your option take of these products you think that that's gonna be necessary yes so it's just more contract you're using actually secure and that's actually really hard price that's like the obviously was like well let's make this a really work because you're basically just creating a person solution I mean challenging the heavyweight champion in history which is finals it's got the deepest pockets it's not gonna roll over without any kind of fire I feel like to me the weight a little bit of space it's the timing is everything I mean is that it when executing in-home executed do you guys think that the window for this opportunity to dethrone traditional finance and moving into other planets it's good question I mean I think the biggest factor in the timing 45 in adoption of define is really just what is the technology there and it is I feel like I feel like it is at least you know the theory of 1.0 realize the potential of open financing like it's amazing the potential is insane you know we still probably eat that Katy bit of orange just the scallop block James and to allow in finance to serve millions of people but it feels like now is the time because the technologies is starting to get there I would say it's going to happen somebody's going to do these standard tools and everybody a lot of working whatever is working this now makes these standards zero as some other really pole or auditors it is the future its reason why it's because somebody what was working you have to make sure that they and this one between you know standardizing things through collaboration and civil lines and then also balance it now this systemic risk and I know we're not risk and so how you could look at make it down that's up hands up the audience anyone familiar to make it out nice so make it ours for those on the street make it now as responsible for creating Dai Dai which is this stable it's a decentralized stable point that is backed by currently quite ethereal and that means if you put your two theorem down you can draw down against that with a smart contract ensuring that you will make make all utilized so make it Alice instructor with many different parts and finances or ways markets you know it's always going to be two-sided lending borrowing you know is this year from single collateral buy into multi clever why does that keep anyone up might actually be quite dangerous it's like I've seen people on Twitter or Baker talking about how me seriously about concept like well you picked use a mortgage I use your home as and selectable forgotten past decade remember 2008 there are problems with it was doing those sorts of things and it's kind of a classic tale of like a flirty attachments you know prior to 2008 2006 2007 their least partially arm and attachments and they had monthly and quarterly subscriptions introductions and after about me the prices have collapsed and these hedge funds didn't end up paying back their investors until like six seven eight nine years later and so there's this concept in signing that something that is really under talked about in the people community and should be taken on more seriously because just because they kind of tended to ten year old bull market so far doesn't what is a big one too good but in like your traditional one aspect I think it's good for you because everything all are dissatisfied with the financial system generally we haven't had that since Bitcoin was created during a natural bear market and you know some oranges watch it and that again well it's like two steps back Auto steps or what sort of thing that's just on top of that get the most value out of thee and do we target in today I mean I think the people get the value of D Phi or the end users of financial products that just you know basically getting taken advantage of by like all the colleagues that can charge massive fees but to nickel and dime them and so I mean it's like asking like who benefits from the internet democratizing access to information is like anyone that believes information and knowledge should be free benefits from it if you want to prevent people from being knowledgeable and educated enough form then it's not good for you and I think if we use that same analogy it's like I know who you know D Phi is bad for and I don't really care that it's bad for them you know it's like these ol acaba leads that you know have like an entrenched interest in keeping things the way they are heavy weights yeah what about accessing do we get there we get there in time so the other side of the world people that you know Argentina Egypt where we are the world that's really relation rights it used to sort of zero percent interest rate on their money that's actually going to be a bonus because they're gonna lose fourteen or fifteen percent over the course of the year through through their part of the local currency how do we get to them to really have tangible value as fast as possible do we get there in time specifically like these countries I think one you know we've got the resources here to build really powerful products how do we get sort of the infrastructure in the hands of those being captured in this guy they don't have Robin Hood cavalry revoluta choose from how do we get today like we're probably going to see traction in blockchains were basically like towing use cases like Chris Dixon talks about you know like the most impactful products and technologies usually start out looking like toys and imagine that's you know kind of what is gonna happen with blockchain technology and d5 is that we're gonna serve these use cases that you know are kind of appealing to people that are educated and for understand the promise of the technology and that is going to allow us to continue scaling the technology improve it and eventually reach mass adoption it but we're not going to be able to get there immediately I think that would immediately challenge unless your leg up fibra if you're Facebook and you have a billions of users you can skip the toy face directly the mass adoption but there are like obviously some serious trade-offs around that as well yeah there is that if you look at the cash or all these other apps that are running there are many others that are starting to provide access to thoughts and investments that weren't available to the masses to everybody and there's a lot a lot of traction what commute of groups of currency all new technology is coming is that anybody in the words to have access to it I don't know what's needed and I feel like the cash app has a very hard time we've been trying to bring it to Canada seaside was like we worked on that to you it's very hard to probably that you can actually use it they like they reason for that aspect traditional banks and how hard they make it for financial solutions to do whatever they need to do because they it's all centralized is that the regulator is breathing down the banks Nick or is that the bank's breathing down the regulator's I mean if you think first of all everybody's different since there isn't like a common protocol that's used to talk to you now you go to a different country we're going to have to negotiate contracts with each institution there and then implement all over the course becomes a massive nightmare to go anywhere else but for all public square in general it's very hard to expand to account for those reasons now if if anybody could build something education like the cash on top of a decentralized network from this year it's available to everybody so it's a matter of time this things needs to become mainstream first right away as long as it's mainstream in the u.s. anywhere else yeah that's actually interesting so recently PAC shop they brought in and sort of spokes into the app and our boys or that one of the one of the really most exciting things when I look at 0x is the idea is sort of you know provide a trademark it were like a very urban market where everyone can kind of build a Robin Hood out the box almost with you know people supplying these targets and you know the conversation between traders how do you think about that both yeah I mean that would be amazing so it it might not be like you know serving like the entire global population but I still think like the fact that you know people in many parts of the world can't access like publicly traded Canadian companies are like US companies and like oftentimes these like big companies that are most investments are you know it's like people that it's immigrants that are like building these companies and running them and like their family can't even like open this year's it's ridiculous and so I think like creating tokenizing things like socks and stuff like that and opening it up to a global population it is actually like everything use case yeah I love that into a to protect young as well yes public company point of view for sure I have family back I'm from Brazil they have their friends they can it's a very very hard process now that would be really cool even for private when you look at how hard it is to like even rather promise investments how hard they can how much money we spend on lawyers how much how much work it takes to basically sell shares of their own to a few investors smart contracts and anybody can do this using word or who trade stocks in one of these sort of digital Bank booking apps right one simple trade well simple trade right okay so and the people on the stream app as well what's really interesting to think about is I don't know how many people okay so people using well simple trade how many of you folks in Apple yep okay how many went to our Channel okay so one person so if you think about that what's really interesting is there's a big conversation about regulation and regulatory guidance and you know how do you analyze the purposes it doesn't really the fact is you know people are flying to go you know hey Tim Cook I've got a problem with the q3 earnings report released about iPad sales in Southeast Asia people are going to get exposure and and I think like that conversation is really interesting to me you know what I look at zero is do you guys think about that in fact that means an execution as well so giving this sort of idea of everyone can have a scarlet like exposure to a song versus you know how do we fly towards the regulation we all sort of yeah the alternative you know I imagine you know shareholders in some ways to me like a community or they can be users of a user about products you own a stake in that company that developed it like that that could be appealing things if it's compliant token I securities or if it's prediction markets you know person that Apple stock it's up it's a really tough market to get into one is like you're selling it's like one example assistance company in two companies in China what's called free to Tiger Woods is actually started by George Soros little partner and these companies each have more work without combined to work about to build two million dollars which is actually small or how large the potential market is for Chinese nationals to buy Apple stock so that shows they had like Chinese partners who are really well connected and part of this to sell this but I do think like it could happen actually as a where'd skills and I think I think synthetic assets are interesting code you don't have to be underlying asset to deal with like what happens if you know and most people today aren't buying stocks and also most people are putting air pollutants I said you just want to exposure this is Vedic version actually you see that going to the like private funds like you know he Jerry Saltz with the CIO and Terry CalPERS once the first big boy pants or really early mover in the space and also if you're a good private fund you don't need to raise capital investors and so this kind of like this investment or the products that do exist aren't actually the highest quality products I think the regulation is 10 times easier it was like super easy to do for logistical standpoint and it might take off and you see this was like larger investment things going more detail in the nineties you ask how much do you think Goldman's gotcha retail for this pan it was a heck no but here we are just that so what's changed the most over this year you're already surprised what does things like positive half dozen other things it's time still believe in it because I think by the end of next year it'll be possible to have transactions yeah I think that's yeah I think I agree actually the probably the most surprising thing over the last year has been the pace of development in like zero knowledge proof and entire you know area of technology because because these concepts have existed for you know for like 30 years people have been working on this stuff and like there are people that are you know and stuff on today [Music] yeah good question so really you know the question of is Defiler going around the system and routing rules moving fast or so it's the question is that happen or should happen I think it depends on your view of the system you're bypassing so you know sometimes the systems and you know kind of worming or they make sense when the system is formed but in you know today in you know as technology progresses the regulations laying that has been put in front of us doesn't really make sense anymore in so you can either work with regulators to convince them that I should change or you can just burn it down or you can just go right through it and like sometimes you just need to do that honestly in my opinion but there are also yeah there are also very good regulations Lee I think that I see you crazy really demonstrated why investor productions so it's but I think regulator is acknowledged and you know regulators to say like yeah also important regulations are important but we also don't want to get in the way of innovation at least in the u.s.

some regulators when it comes to like whose fault is it is you know if the user gets hacked or they lose their private key I mean the you know the philosophy behind cryptocurrency in general is like don't trust verify like take personal responsibility like the power behind cryptocurrency is the fact that you know you can take ownership of your own assets and you don't have so I feel like it's important that we that must be the personal responsibility and like yeah self custody other questions [Music] curious that wasn't his carry system gnosis [Music] these aren't but they're there they're charged 20% fees some cases you can get charged before because that other ladies here at the top and 1% now that sounds like well as a small population but in reality those people are driving over 60 to 70 percent of their volumes so it's actually that's kind of the building on top of things indicates this question there as far as work orders responsibility lies I need your buildings will be the top of auditor you might say able take a look this month's building something goes well will they be back for it but it's changed that we're gonna charge your feet on top of the base profile with you can pass systems like that the certain things you can do in a centralized way this still so to me those yes question you a situation which I have a situation and what is your government's type of let me see no cryptocurrency what do you think yeah that's a good question I mean it could be it could be a bad thing for the cryptocurrency space in general people that might be interested in the technology because they you know is their only alternative to government currency and then they they get you know they really realized the benefits of decentralization non-covered you know maybe we don't get as many of those people coming into the space because they're satisfied with a government-issued digital currency but yeah I mean it government-issued digital currencies could be like a pretty scary pretty scary in my opinion it allows you know governance to have like a complete kind of you into everything that everyone is doing with their money and having like financial privacy I think it's something that everyone appreciates whether you're you know they you don't have to be doing bad things to like want to keep your spending habits and net worth so I think it's like kind of a scary trend they're just good answer this one as well I think it's really scary as well but I actually think that this is the biggest lay out we could get as a system if you think about the difficulty of convincing educating and you know onboarding someone who's only got paper notes in their wallet versus someone that's a cash app and trying to get them to move from cash out in to take it out the friction point I'd say it's a globally crowd-sourced onboarding procedure so thanks for the billion users if we're gonna have like a government-issued digital currency if if the government can have transparency into it you know the citizen spending habits and finances like hopefully citizens will have much much more transparency to government spending habits so maybe that could be a good outcome on Joey next up we have bigger he held but if you didn't come on up to the stage Peter's gonna be an introduction to what his co-founder was the co-founder and CTO there it was also the co-founder and CTO Russell but today is the co-founder of CEO Verizon blockchain cables here