Tokenization on the Bitcoin Cash Chain - Craig Wright @ TOKEN2049

[Music] welcome I'm going to tell you a whole lot of things that you probably don't want to hear today basically that's what I generally do these days the first of which I'm going to start with is Bitcoin and any system that actually works on a Bitcoin or other related blockchain is a proof of work system now this is where people go wrong nothing long-term survives in any blockchain unless it means work none of the ideas of icos or whatever else work unless they're about work not raising funds for the sake of raising funds not anything else not who'd lean who dling is probably the most despicable evil thing to do with Bitcoin it is not saving it is hoarding Bitcoin is a payment system it is cash it is to be used to help people spend money those in places like South America South Africa places without banking people can actually spend and use not hoard so that in ten years they can go look I've got more of something that I can hold spend use top-up review save you know the thing that money is supposed to be used for exchange trade so we're going to also talk about tokens now everyone knows about financial instruments here I'm sure everyone's heard about the ICO bits well at the end of the day if you're raising money I don't give a rat's rectum what the hell you think you're doing you are a security I have master's degrees in law I'm doing a PhD in law at the moment banking finance MBA blah blah blah I can tell you categorically because I've also done all the securities trading laws every single ICO out there is a security just because you have con some lawyer into misunderstanding it doesn't make it any difference but what they really should be used for is a new business model not how can we raise funds and deliver nothing not one year later forty seven percent as it is now of these token sales will be nothing and that's what it right now is forty seven percent have nothing to show after a year but wasted money it is worse than dot-com back in the 90s I lived through that and this is worse what we have is a way of actually opening up new technology new ways of doing things not sitting on our asses and thinking people hand us stuff we have a new service economy a global service economy instead of owning everything we can actually start fractionally owning things using on-demand imagine instead of owning a car when Google cars come why would you want to own one when instead of having to pay for parking the thing can pull up drop you off drive off and service other people that makes it more efficient if that car is working basically twenty twenty seven hours a day around the clock picking people up dropping them off putting pizzas in the back when it needs to do not sitting in a garage not parked in town earning some garage operator eighty dollars or eighty pounds a day that's what a token starts to do when you can actually sell something and when you can actually use it and have an economy that is based on this that's the idea what we want to create is an on-demand economy a better than free model not like we see with Facebook or Twitter where we pay for it by selling everything you own about yourself where you have to pull down your pants and expose your ass to the world so that 20 years time everything you did it is basically as a teenager will be remembered I did a whole lot of as a teenager I used to work in the gambling industry luckily we didn't have Facebook trust me there's lots of things from parties like some of the people here Kelvin is around here somewhere lots of parties I'm really glad that one remembers I mean I actually went to a party back in the 90s where I ended up wearing fish on my ears and kissed Jim Morrison for some reason I think it was about six bottles of champagne but these things happen now rather than having goods we start to sell the experience that's what this is about not how do we raise money be by having a promise in the future a token of something that you're going to do is a tradable token for the soul for the sake of trading what is that basically if we're going to be saying we're doing a new thing because it's a new thing what are we delivering honestly what is the experience we're giving to people why do we want this thing not because I want to line my pocket at the end of the day capital-raising is to deliver something not because you can get nicer clothes or watches or anything like that because you have to earn this goes back to what I've been saying proof of work if you want to play in this space long term it's about work my current law degree in thesis is about writing legislation for regulation and government I'm basically working on that at the moment and we'll be issuing stuff and I will help explain the government's how all of this is covered so if you're just raising money because you think a security doesn't need to be regulated and Coda's is law which is absolute Laura's law I don't care what your contract is it can be disputed you try standing in front of a judge and telling him otherwise and you're going to be sorry because they can reach back in time the SEC doesn't think about what you're doing now they have a 20 year time frame you raise money and you don't pay it back they can reach back not you got away with it did you get away with it for 20 years that's what this is about not Bernie Madoff type schemes what are you delivering and eventually they're going to start tidying this up and there are big penalties for these things so why do you do this what are you actually delivering when you fail did you try did you actually build anything did you invest or just give yourself a big salary tokens an able something miraculous if done right they enable a world where every person in this bloody globe not just someone in a little area in Silicon Valley can start trading when someone in Ghana can write code design-build when we start getting into a world of 3d printing which is coming not just rapid prototyping local areas Nike now prints shoes they have lights-out factories right now these are big expensive things they won't be in a few years time when you want to have a pair of Nike shoes printed in your local area to your design that will happen when you want something that you own it will happen when you want to start knowing that that thing that you bought is no longer a knockoff that's what tokens can start delivering not can I raise money because I want to raise money why what real world good are you opening up they make luxury services available to all everything that is a luxury now used to be something different that was not there everything that is common now used to be a luxury toilets were a luxury 100 years ago Victorian England if you had a flush toilet you were rich now no one would buy a house in the West without a toilet that's what capitalism does that's what this does that's what we're seeking tokens do better than free you pay for the services you need you trade anywhere imagine that poor guy in the middle of Venezuela who wants to earn some money and be able to live and trade and do something now they can write an article now they can design something and own the digital rights to it and have someone print it anywhere on earth that's what this is really about the ability for anyone to get out there and do something and promote something of substance and to compete on merit not with government handouts not with government subsidies not because they inherited wealth because they do it better they work harder they work smarter that's what tokens will deliver the true gains of the digital economy aren't yet they will be when we have everything able to be taken anywhere and used anywhere an example read an article in The Economist about visage if you're buying goods little luxury goods right now what will generally happen is they will make extra runs so they'll be made in the same manufacturing plant the same everything else why not tokenize luxury goods people know whether you've got a fake or a real one because it's easy they can tell the only reason people wear Gucci is to say I wear Gucci and if you're wearing Gucci that's not real Gucci and people know you're wearing a fake then you're not going to be wearing fake Gucci are you if you want to have a brand of watch and it's a fake people will know that's the whole idea next just in time we have a revolution in the last few years since the 40s between the US Japan whatever else we have this technology called just-in-time that everyone seems to not really think about anymore if you make cars you make anything else you care about when your parts get in you care about your product how about we tokenize the transfer of goods we watch things as they move back and forwards we start them moving across the network and we know when they're going to be there so that we can actually save money not only now for Toyota everyone anywhere knowing that your goods are actually on the way to you knowing that you need a replacement being able to trace track and find think of not the way evil works for delivery with little pictures of where the things are but every good that you need for your business knowing that if something gets lost delayed whatever else you can find it imagine what that does for an economy finding that you're not going to have to make excuses to customers because you know exactly where your goods are and if they are held up you can get another one from somewhere else beforehand factories of the future are not going to be what we have now we are going to see manufacturing more and more automated like it or not robotics is here to stay and in 20 years time if you're a factory worker I'm sorry you need a different job you have 20 years or you're not going to have anything re skill there is a long time to find many many different things to do it's the same if you were a Gleaner or a farrier or any number of other jobs in the last hundred years that have totally disappeared that's what's going to happen again we're going to start delivering bespoke solutions that means order things the way you want not just because you have money we've always had the ability for bespoke solutions if you had enough money in the future it'll be anyone anything they want we're getting a richer world a more connected world this is what we're aiming to deliver question what is it we're seeking to achieve if what you're doing is I want to raise money I don't care you're boring that simple why what are we computing why are we computing it are we just running numbers for the sake of running numbers are we making money because well making money is nice or are we actually trying to do something the whole purpose of what really drives a capitalist economy is delivery to consumers finding a way to actually get people who consume to have goods goods and services that's what we're trying to do not id producer want money that might be an outcome that we all want yes we want to have better lives yes we want to live better but what are you doing to achieve it how are you trying to get there what we're trying to do is solve real-world needs when you invent something you don't do it because well it would be nice to have money in my pocket and I just want money give me money that's probably 99% of icos right at the moment and trust me I'll be doing my best an utmost in the next year to kill them I will be helping politicians I will be helping legislators I will be helping lawyers understand what you're doing if you're just raising money to raise money and you have no end goal you're a scam if you want to raise money to do something then you raise money to do something and you would raise money whether you have an ICO or not an ICA might be a simple a better way of doing it for many people automation of share markets automation of registries might be a better way of many things decentralized registries great idea but if that's all you want to do then time to start thinking something new everything we can a meet everything I don't care what you say is out there can be a service right now there is not a thing on this earth that cannot be made into a service and a tokenized economy allows that anything whether you want to fly a plane whether you want an experience anything anything will be made into a service rather than having to own things you will do what you want at the time based on what you can afford which doesn't mean what you want . it means based on what you're willing to pay so we're going to see these things turned into services and we're going to deliver what the consumers needs are better that means more choice for the socialist out there more waste in russia one of the things they used to do is complain about how they were all these different cereals in the West you'd go into a Western sort of supermarket and people would go why would you need 20 different types of breakfast cereal actually probably closer to 20 thousand these days but the reality is because people have choice making one thing for everyone doesn't work one car for everyone doesn't work all of us are individuals whether we like to admit that or not and that means we have choice and as we can start customizing that choice then we're happier and in future when we can start delivering more choice we're going to have happier customers happier consumers come back and they spend money again and again notice this keep spending keep buying keep an economy rolling Bitcoin without value is something you who deloin you use but can you spend with Bitcoin as a cash platform like it was always designed that matters because then you have value when you trade with people that's about value both people win in any exchange no one exchanges freely unless they both see value when two parties exchange goods or money or services or whatever else they do it because one values the thing they have versus the thing the other person has more and the same both ways so there is no universal price for everything there is a price I will pay and the price you will pay and they always differ subjectively so tokens deliver that to us they allow us to get there they allow us to start thinking of a way of doing new business are having on demand sir of staying in hotels or staying in Airbnb type places of staying wherever we want I'm buying good services using things going on a holiday I mean years ago I owned a boat one thing I found from owning a boat is it's a big hole in the water that you throw money into literally so now if I want to go on about a charter one for the simple fact that well someone else now has to look after that and unlike when I owned up excuse me when I owned about it doesn't sit there idle for basically three weeks out of every month it actually does something other people then who are charterers put it out there and more people use it most charter boats especially in summer and things like that are used all the time they get filled up there's a reason for that because well you start marketing down to the price that is most effective to keep it active in winter it's cheaper because people don't want to go out around the Greek islands in winter strangely enough it's cold so it fits the price consumers pay and overall that's how we start making money we started circulating not holding if everyone just has a pile of gold that they have in their room and they sit and they go oh I'm rich then we're not rich money is not what people seem to think in this industry money is a call on future goods and services and if no one makes more future goods and services your money's worthless money is only worthwhile when future goods and services are there when we produce when we create when we build so mobility what where and when we want to be able to have what we need wherever we are this is a world that is becoming more and more global that is a good thing we can start trading anywhere with anyone as we start trading with people we start building relationships and having to understand them when we want to start actually understanding our customers in different parts of the world then we start to be exposed to different culture different ways of life different ways of doing things it opens us up and we all grow as people as humans we don't become so isolated in insular so what are we doing things that include this ensure a liability if we know where goods are people sign offs in sign in cargo delivery trucking so how do I tie this to Bitcoin cash because quite simply we're going to be starting to announce things later this year so I'm coming up in May so after that we're going to start teaching you how everything you thought about Bitcoin is probably wrong we're going to teach you how to do atomic swaps and I'm not going to tell you how right now because patent pending blah blah blah I can buy and sell etherium for - inside bitcoin today I can make exchangers obsolete if your crypto - crypto so there's something to think about right now I can do a peer to peer exchange of aetherium and - on Bitcoin cash and we're going to actually start releasing something of this we're going to have people build this not everything ourselves so if you're just a crypto exchange and that's all you do not a fit so people can get money out in and out we're going to make you obsolete not so that we make money out of it so that we start people trading I'm going to allow people anywhere with no trust to start trading anything that is tokenized and we're going to allow you to tokenize anything not in aetherium ERC 20 contracts in something that is a real smart contract and I don't give a rat's what you call if there it is not a smart contract it is basically a tokenization how do I list a security scheme I will allow and what we're going to release a way of having untrusted Oracle's somewhere give you information and having code that evolves PS OS evolutionary code smart contracts that's what we're going to deliver on Bitcoin cash and you'll say you can't do that I'll say watch you'll say you can't trade these things securely I'm going to tell you watch you're going to sit there on your exchangers going you need a trusted third party I'm going to tell you and if you don't like it stiff bicky's we're going to release it that simple and I don't care because guess what I don't want your money there's my scam I'm not going to take a cent from anyone I don't take a cent to present I don't take it for anything I don't need it so if you want to be out there and you think that raising money to make a new crypto to crypto exchange is a great idea think again if you can get in there quick enough go for it you can make money go for it I'm not going to stop you I'm just going to basically out-compete you we're going to release freely a whole lot of things that make all that you're doing they're obsolete but we're going to make tokenization about what it's meant to be where I can put every chip on a circuit board into a Merkle tree that goes down into a laptop so I know if you changed a single resistor in your computer I will as a manufacturer know I will be able to trace every board every circuit everything ever for history and I will know as a manufacturer I can watch when it goes between any customer I can have it dial back home if you steal my laptop it's a brick that's simple we'll have a world where if you steal something from me unless it's raw elements like gold forget it we're going to have a world where if I have designer jeans with an RFID tag you'll know if I have a phone it will be recorded to me if I hand it to you it will be recorded and tokenized and you will know and everything will be synonymous I will know you will know and will be able to record it and track it and know everywhere it's ever been but only the people involved no more what are we looking at we've got all these things and travel travel is a nice easy industry Amazon releases something to a courier that courier travels delivers it to me how about if every single track every trace is always there not I've bought a laptop but I know which particular serial number I get I have everything recorded I know if someone takes my thing and tries to sell it in a pawn shop anywhere on earth that's what tokenization will deliver not I want to raise another ICO imagine a world where there's real end-to-end tracking tracing Commerce sales everything we're 20 years from now if someone stolen your phone ever turns it on again you have evidence that will stand up in court that's what tokenization should deliver medical services with certain technologies we will allow access over basically Bitcoin cash to individual records right now if you go into a u.s. Hospital approximately 1049 people on average see your medical record everything we have technology that we've been patenting that will allow access for everyone who's ever done it that is recorded to the particular file you will only be able to access that medical file not everything ever one document the one you're authorized to that's it that's what we can do advertising we're working now with a an organization that's building an advertising system and we'll tokenize that retail knowing when things go off that carton of milk being able to track and trace right down to when things expire that's what tokenization should be it's about building something that actually delivers value do we actually understand that not I want more money I want to be rich it is not about I want to be rich and yes I'm an I'm sitting up here I'm rich and I'm saying I you shouldn't be thinking I want to be rich and I'll say that I'm rich enough never to work again in my life I'm rich enough to have a thousand lives of never working again my life and yet I work 80 to 100 hour weeks every week I'm doing two more PhDs literally right at the moment simultaneously as I work it is proof of work not proof I want something proof of work and if you don't get that watch the next two years you're going to have some eyeopener's and I don't really give a rat's if people hate me for it I care if people develop deliver and create and if you don't want to develop deliver and create we're going to make a world where you're going to have to that's what we're going to bring thank you [Applause]