Blockchain 101 with INCEIF

so when I come firing on nice to meet you great to see someone from the banking industry well thanks for joining in colleague from Syria it's a one benefit of using zoom calls we can get people from around the world so okay it's 11:05 on my on my watch so I'll start the talk itself and for those people who join later you can join in and watch the recording or the earlier parts so thank you and for coming in on on this date so what we'll do here is a blockchain one-on-one session subtitled into a rabbit hole of money decentralization and smart contracts so before we start can I get a show of hands for those of you familiar with the controls raise your hand if you have heard of Bitcoin alright so I assume those who didn't raise their hands are more because you not sure how to control how to use the raise hands function on zoom' and for those who have reasons how many of you know the difference between Bitcoin and blockchain all right and since there's not that many I'm just gonna run through the rest how many of you have a crypto portfolio or even what that means how many of you have a blockchain wallet and how many have you of you have used a smart contract let me see I see a total of four people five okay so that's cool so because there's a majority of you who haven't I raise your hand so I'll make sure to go a bit slower so that you can add the bow so all right I'm gonna turn off annotations because I can see there are people who are playing around with it okay yeah and maybe we can keep that for the Q&A session for you to write down your questions so a quick introduction to myself my name is Harris I work at Peter scan which is the leading blog Explorer for the etherium blockchain I'll get like spin more what that means later before this I worked at hello world where I was the head of data analytics and was also one of the people who set up there to the sale for hello goal that raised the equivalent of five million US dollars was also called an IC o---- and for the last two years I've been an organizer of ETL which is a group that is focusing on sort of technological aspects and use cases of the blockchain primary key theorem locked in and we focus on those things and not so much on well no at all on their trading or making money side of things so if you're more interested in trading there are other groups you can join but if you're interested to understand the technology and how to use it we welcome you to join our meetup group right now we do once a month on the first Thursday of the month community meetup and you're doing your own zoom because of the current circumstances but the when things are more safe we will open it up to physical apps as well so to give a brief overview of what I'll cover first I'll give like a free introduction of what money is and what decentralization is and then talk about Bitcoin and certain features there make it up and go onto etherium to explain second iteration of Lawton and describe some of the local companies and communities and finally given a so why why it matters to you as the listener so I used the word rabbit hole because for those of you familiar with Alice in Wonderland you know she fell down this rabbit hole into this world that is completely new and very deep and fascinating that would be the experience you will find once you go into the blockchain space you'll spend countless hours in front of your phone or your computer opening new tab after new tab trying Arita or new new fields so don't be too concerned if you if that becomes your experience because that's swaggins to all of us in this space so before I start you secretly just remove this okay so so before I start on everything first up to clarify some differences between Bitcoin and blockchain so for people who don't really know what the difference is like you've heard the two words used at the same time so if you can think of it as a Venn diagram larger set is the distributed ledger technology within that one of the technologies that's used is the blockchain and bitcoin is one of the block chains that exists it's the first and why we will cover it to begin with so a good analogy to to look at it is to compare it with the technology of transportation so transportation is the entire technology the car is one technology the public transportation and a Toyota is one of the brands of a car so think of it as Bitcoin being one of the cars that exists and another thing that people talk about is cryptocurrency and what the difference is between Bitcoin and blockchain and cryptocurrency so first thing you have to do is to zoom out and understand that it's not just currencies it's essentially crypto assets and assets in general and within crypto assets you see a large different segments that make it up so you can have a crypto token which is how like let's say you go to a casino you have tokens that you can use or you go to your school sports day and you can use the voucher as a token to pay for items and it's also crypto security which are tokens they represent ownership of a stop for example or a board and lastly is cryptocurrency which are tokens that represent currency so bitcoin is a specific example of a cryptocurrency but there are many other types of assets that exist and lastly on this part is the difference between Bitcoin with a capital B and Bitcoin with a small B so Bitcoin the capital D is the technology itself so think of it as the car and Bitcoin with a small B is the currency that you use so think of it as if you have a car it's a very good technology but to be able to use it you have to enter fuel inside the tank and without the fuel you don't have the currency to move the car so without the currency bitcoin you won't be able to leverage a coin the platform so here is where I begin the actual preamble so the first thing that we want to cover is what is money and if you go to any economics class you will always hear these things it's a store of value so unit of account is a medium of exchange I won't go too deeply into this because you can go on Wikipedia and understand it if you don't what the economies classes generally don't cobble or at least on a high level is that money has to be of a limited supply has to be scarce and it gets very easy to understand this if you think about how if someone created an internet money and literally they can print new coins every minute every owl then very quickly there will be no use for that money because the value will go down as the supply goes up in an infinite way in a very important thing to understand on money is that money isn't the physical item that represents it money as we see in the physical world is just a representation of value and what do I mean by that so to paraphrase a quote from the Game of Thrones value resides where men believe it resides it's an abstract notion it's not a physical item much like the most important things in life like religion love politics there is no physical item that necessarily represents it it's a what's called a social belief shared belief or a social story that we tell each other and it's only as powerful as the sharpness of our belief and if we think of money the first thing that comes to our mind are things like the paper u.s. dollar the ringgit gold bars or for the more tech-savvy of us it's now digital numbers on the screen right on your wallet or your online bank but these are by themselves not money these are just representations of money and to give examples that are not from general for people if we are in a prison then cigarettes are used for money if you a kid on the playground maybe 10 or 20 years ago you use pokemon cards as currency and people in various cultures from a long time a long time ago I will use shells as their form of currency so just because we are conditioned to use the fiat currency or the national government currency like doing it it's not the only form physical form of money out there there are many other physical forms and we have to first be able to separate the physical form of money from what money is in actual fact and to give examples of how money isn't the physical form that it is so this is the Bolivar which is the currency of Venezuela so some of you might have heard that over the last few years there inflation has been in the millions of percentages such that people are more willing to use the paper currency as origami handbags or for drawings of cartoons and by doing that that piece of paper has more value to it than as currency because the paper itself the physical form of the currency has diminished in value because there was so much printing of the money that went on and you might think that that's a very foreign example but for the Malaysians here you might if you are of a certain age or if you have family members who are certain age you might be familiar with this thing called the do it be son so what that is is that and where the Japanese military occupied Malaya back before our independence they enforce the use of Japanese dollars which was called do it a song because ten dollars had the banana picture shown on it so what happened was people would be only be allowed to use these do a piece on to transact and imagine you were a farmer let's say you know you're planting your own bananas on your own farm and you've been getting paid in this song and you've been saving it increase your wealth and then suddenly on the last day that the Japanese military was in Malaya they left and just like that the very next day the value of the groovy song disappeared all at once so all that savings that you had a baby son let's say you had a thousand dollars Japanese dollars would have just magically disappeared into thin air and all that wealth goes away even though the physical paper still exists and that happens because the shared belief amongst people in Malaya had gone into the value of Vipassana because the Japanese military wasn't there anymore enforcer if you're interested you can check out this website called WTF happened in 1971 calm and you can see a lot of official statistics that show of our current modern economy and how things have gone out of way so for example the CPI which is a measure of inflation has gotten significantly after 1971 which is where most governments went off the Bretton Woods Agreement which is to kick off the value of their currency from from the gold standard and it's actually very poignant very iconic because the very first block on Bitcoin that was ever mine attached to it was a message that said Chancellor on drink of second bailout for banks January 2009 The Times and a lot of people got attracted to Bitcoin in the first place because of it's sort of rebelling against the use of national currencies because national currencies had been used to having inflated cap being used to support companies that were too big to fail and not for the average man on the street so that's what money is and if you can't remember anything else just I hope you are able to remember that the main part is that money isn't the physical item that represents it money is a shared story between each of us in a society so the next item is decentralization but the Muslims here I like to give this example which to me encapsulate sit properly so for those of you who know you know that the Quran wasn't this book that fell down from the sky into the hands of people it was a bunch of verses that were memorized by many many members of the community such that there were thousands at one time even in the early stages that memorized the Quran in the exact content in the exact order so that if harish were to come in and say that hey I'm gonna add one verse that says Horus is handsome and I'll pay you a lot of money for it if there was two or three people it would be relatively doable for me to do it but the more people they are that are fact-checking each other to see that the memory of the Quran is complete the heart rate becomes and if it goes to a thousand it becomes exponentially harder and if there are millions of people who memorize the Quran then it becomes pretty much impossible for me to be able to bribe every single one of them to coordinate and add just this one line that says harif is handsome so it also applies for the hadith if you're familiar with it with the term of mater and you'll be able to grasp the idea of decentralization very quickly basically it's to be able to sort of trust in many many members of community instead of just one trusted member another example is that of the wedding so other than this fairytale celebration over happy ever after traditionally cultures have created weddings to be able to fact-check each other so that if Harris gets married today and there's 200 people that attended the wedding and then next week if Harris goes and visits next-door village and one of the 200 since the heart is out there with a different woman who was not the woman that he was married with then the community member can highlight it to the rest of society so that we can monitor Harris behavior and he can behave in the correct behavior for the benefit of the whole society in contrast if I was to get married with just one witness with just one imam or priest to witness it then the chances of me being able to get away with cheating will be higher because there's one there's a lot less force people who are able to track my behavior and a very modern example for those of you who used both Microsoft Word and Google Docs you'll understand the huge difference there Google Docs conference over the microsoft office use so if you use Microsoft Word for let's say a college project or team work for the office you'll know that you can't sync at the same time so when someone makes an edit you have to save it put it on a shared folder and wait for the other person to then edit the part of the work and if I were to edit it and someone else was to delete my work or change it to say something that's completely wrong it's difficult for me to pinpoint who did it and how it was done but if things were done on Google Docs then first of all everything's done in sync in real time so I can see whoever is editing and if they did my part I can see that they're doing it I can also check I didn't history very easily so not only does it help to fact-check each other to make sure we're doing things in the right way but also it's much faster because now we can edit everything at the same time and how it works is there's no real magic minded it what Google does it relies on the cloud on many different servers around the world will all update whatever changes there were me in real time as we make it and that's very important to understand when it comes to Bitcoin because if you combine money and decentralization then what you get is decentralized money and if you don't know anything else about Bitcoin and you know just that bitcoin is decentralized money then I can assure you that you know more about Bitcoin then probably 90% of the people out there and even many people who are owning bitcoins already so what does Bitcoin mean exactly when I say decentralized money let's go a bit more into what that means so when we use the modern financial system typically there is always a centralized third party that we trust so if I wanted to give money to his shop who is it in person in front of me right now I can't give cash because he's not in front of me and I have to say mail it to him or use the internet and it but there is no way for me to know that that money has reached him because let's say I send him tendering it he can tell me that oh I I haven't received that tendering it yet maybe it got lost in the mail so they'll have to keep doing it and keep doing it and in the meantime he just takes more much more than the tendering yet that he was supposed to get and vice-versa I can tell him nail look I've sent it it should be on the way I don't know what happened when actually I've never sent the tendering so so there's a lot of friction when there's no more trust a third party in the current financial system and for the most part it works we rely on banks so I don't have to trust him and he doesn't have to trust me but if I trust on a bank let's say maybe and he trusts me back then all we do is we give money to me man maybe n takes it and gives attention and it's not just banks it's also currency exchanges it's also companies like PayPal but what happens is that these companies take a huge percentage of these transactions for basically just being a trusted third party not for creating a product between the two of us it's just to facilitate the transaction and if we kind of consider an alternative so right now out of there about 30 people of us in this call we could come up with an alternative to that financial system so what we can do is we can all have a little notebook where we keep a ledger of each one of our balances and every time a transaction happens then we all of us updates it and we confirm it to each other let's say on the zoom chat or on a what's at me so if I were to send a negative Hisham then all of us needs to like take it off and say that ok then we get is deducted from Jerez balance and added to his shams account and only when all of us have were proof this transaction then he gets recorded in this shared ledger between all of us but you can easily see how that's not very practical even if it was only two or three people it's gonna take a lot of time and effort for us to do it and you basically would have any time to do anything else in nowadays and as we increase it to thousands or millions of people similar to the current example it becomes exponentially harder to coordinate and becomes practically impossible to do but what if you two will replace the people with computers computers can do things much faster than any human being can and it still sounds a bit crazy but if you think about how we have now online streaming Netflix online or massively multiplayer online games they are much more heavy on your device that's much more computing power than literally just updating one entry on a transaction ledger so it's not that impossible when you use computers instead so what bitcoin does is basically it allows computers to become these people who are fact-checking the each transaction are being done directly and when there is a majority of computers they agree on a certain transaction or a certain block transactions then these transactions get confirmed and very importantly this sort of computer code that runs Bitcoin is based on open source programming code which what it means for those of you who not technical is that the code for a Bitcoin is published online so anyone in the world who understands programming or the specific language used for Bitcoin would be able to validate that the code does what it says it's supposed to do and they can raise a flag if something in the code doesn't represent what it says they would do and because there are thousands of programmers out there and he can validate that the code is doing what it's meant to do and you can't update your code by yourself because let's say again I wanted to add Harris is handsome in the Bitcoin code I can do that but then I have to be able to convince all of the thousands of other Bitcoin computers to agree to use my to add my line of code in there before it can be accepted otherwise everyone else will just see that oh how it's line of code doesn't match everyone else so we're going to ignore Harris and go with what the majority says and by doing that you make the system become trust minimized because you're not trusting one party or a few parties you're trusting a lot of different people out there and the more people they are in the system the more decentralized and the more reliance on trust there is so I'm going to go into some features of Bitcoin blockchain but if you have any questions feel free to shoot it in the zoom chat if it's if I feel like it's relevant for right now I'll explain it otherwise I'll answer it later on in this session where it might be more out so a lot Explorer so what a block Explorer is is okay so before I go unblock explorers first thing all of us needs to understand is that block chains are not anonymous so if you heard in the news about how you know criminals use Bitcoin to buy drugs to do all kinds of bad things and if you're a criminal yourself you might be attracted to using Bitcoin but I should warn you that Bitcoin and most block chains are not anonymous so that if you do transactions on there in some ways is actually much easier to track you then it is if we were to just use cash and what do I mean by that so this is an example of a blog Explorer so this is an eater scan where I work at and it's next 404 the ETM object but same logic applies if I were to enter this address which is anyone's address I can enter it into the search bar and on the top right and no one will be able to stop me from seeing all of the details related with the address so imagine if I can open up your mail bank account enter your sort of wallet details and I can see your whole balance how much it's worth in u.s. dollars and your entire transaction history from the time the transaction was made who sent it to you or who you sent it to and a month they were sent it's actually really really scary if you think about it the only saving grace for you is that this address on the blockchain is not tied to any human identity so this long string here on the top left is created randomly you cannot customize it for yourself so that if you were to create one I wouldn't know what your address is so even though I could try and enter a random numbers I wouldn't know even if their address showed up that that address belongs to you but if you've ever done any transaction to me or to anyone that I know then I know that okay this address sent say ten ether at me so I know that and you and you told me you sent it to me so I know that this address in some way or shape or form is belonging to you or related to you and I can then go into the transaction history and click through the transactions across the different addresses and I can see the addresses that are there and if I know who owns those other addresses then I can create a map and be able to track did one at what time and this is actually what regulators and governments around the world are doing currently to be able to track our criminals who use Bitcoin and other launches so yeah so if you can know make sure think twice before you use watching as a way to frenzy a good way to think what is is if you imagine a library and you walk up to the receptionist for a librarian that it's a entrance of the library and you tell her that you want to see the contents of this book on shelf 17 a and you the library will show you the contents of the book regardless of which shelf it is one like you can take any book that's from any part of the library and the library will show you and they will never stop you from seeing any of the contents of that book important thing to understand is that different blockchain protocols or platforms are their own libraries so you cannot go to a Bitcoin library to see an hiriam book or you can't go to any theorem library to see a Bitcoin so next is the blockchain wallet and the wallet is a bit of a misnomer it's a bit of an unfortunate wording that people early on in the industry use because the blockchain wallet isn't really like a wallet that you have physically it's not something that you carry around with you a better way to think about it is like a safety deposit box that's held in the cloud so you know it's a box that you can store your family diamonds or some gold bars that you got from your grandfather and it's held that in the wall and you need to go to the vault use your key to open it and then you can take things out only difference is that this box is held in the cloud it's on the internet and what you a lot of people will refer to as their wallet is actually just the key to open up this box and take things inside so if you go back to the library example earlier then having a wallet or this key allows you to go to the library the same library this now and instead of asking to see the contents of that book on 17a you can tell this library if you have the key for the 17a shelf that you want to move the book from there to 37b and only if you can show that you own the key the owns the 17 a shelf will the librarian take that book and move it if you cannot prove that you own 78 then it will not allow you to move your book to any other shelf of them so there's a difference between seeing the content and being able to move the content from one place to another so what wallets use is this technology called public key cryptography it's very heavy subject I'll suffice to cover just the high-level part of it here so public key cryptography uses to cheese your public key and your private so a good way to understand a public key is you think of the mailbox in front of your house so if you want anyone to send you a parcel or a letter save a parcel from lazada what you do is you tell them hey this is my address please send it please send a parcel to me so a public key is something you'd love to share to other people so that they can then send you the parcel but again if you don't want say any suspicious people to know where you live then you also want to keep safe your public key so that they don't know the address to your house the private keno is both the mailbox and the key to open your houses doors it's very important to understand that it's not just the key it's also the mailbox for your house so what would happen if I give you my private key then essentially what I'm doing is I'm giving you a map with an x marks the dot to my house and I'm giving you the key to open my door so I'm essentially welcoming you to go to my house open the door hey everything that's inside and move it to your own house and no one can stop me once I've given you my key and you hear lots of stories in the crypto space of people who either lost their keys or had it stolen or even were married to someone and then had a divorce a few years later and because while they were married they were happy and they were fully trusting they shared their private key with their spouse but then after the divorce the spouse can literally take that private key and take everything that you own inside your house so the NT makes things much more scary and in highlights that when it comes to the crypto space you are your own security there is no Bank Negara there is no PID m that will help you if your funds get stolen there's no insurance there's no Google support that you can email if you've forgotten your password so you have to rely on yourself when you don't want to trust other people and quick note on a psychological level this affects a lot of people in the crypto space so you can see a lot of people in the space become more paranoid and yeah so that's a topic for another discussion under psychological impact but very boring - an important thing to understand is that you are your own security and if you ever want to enter the Bitcoin or watch a space with your own money make sure you fully understand what wallets are and how it works so - briefly he go over some major types of wallets the first kind is what's called the people with it so literally what you do is you go to a website and that creates wallets and never stores these keys on their own servers you create a people what and it will create a simple image what you then do is you print it to a piece of people and that becomes your wallet so the address here is your public key is what your address is when you share with other people and the private key is the key that you never want to share with anyone unless you are okay with them taking all your money and you never want to store it in a digital format because if you've ever heard stories of how celebrities had naughty videos shared to the public a lot of times it's because they thought they deleted it from your computer and then they sold it all for a sent it for repair but what they don't realize is that even though you've deleted stuff from your computer it still exists somewhere on your harddrive so so if you've deleted this digital copy of your private key from your computer someone who has who later gets access to your CPU and still find the private key and now have access to your entire wallet so you never want to keep in digital format you want to print it on people the best practice is you laminate it still two or three different versions and store it in different places such that you know if you put it in your house and your house gets burned down there's at least one other place there also has a private key you don't want to memorize the private key because it's a very very long string of characters and even though you think you have very good memory if you confuse just one item let's say instead of a zero you remember as an O then all of your entire balance will be gone so then it's not very practical right because if you want to be able to transact you don't want to really carry these people wallet with you everywhere because you might get robbed or you might use it so a better solution and what most people will agree is the best solution for keeping most of your funds is what's called a hardware audit or a Coldwater in this case it's held in a physical device a lot of them look like USB pendrive and you have a pin to this and the device is is what stores your private key so even if someone were to steal it from you they would have to enter your PIN code which you can now customize before they can use the hardware wallet to take your money and if you use the hardware wallet it's not the end of the world because you can write down the private key or in most cases what's called a mnemonic face stream of random 12 or 24 words in English and that is what you store in your house so that you can have your people wallet at your house but you can still carry the hardware wallet around with you if you need to make any transactions for new block chains like blockchain 2.

0 you have what's called a web tree or smart wallet where the wallet exists in your internet browser or in your phone and the website or the website doesn't store your private key or your password so that you can still use the the browser and use it as a wallet without having a risk of the website stealing your private key from the from the wallet do you think to understand is it still a lot of these are very new so it's still not as safe as simply putting it in a hardware wall lip so if you use a web tree wallet don't put as much funds into it that you know you would lose your life savings if you so next is what's called mining so this is something I find the most interesting and it's not even the programming or cryptography but to it but so mining rests on this thing called the hash function which again is a thing from cryptography it's very sort of deep but at a high level what a hash function does is that you can enter an input and the output is something completely different that that is very difficult for someone to reverse-engineer to get your input so for example if I were to enter a cat the three characters see 80 cat I will get using this catch up to five cents hash function this very long unreadable string of card first and if I were then to enter dog I would see this equally long and equally uncompromising string of characters so that it's very hard for you to be able to reverse-engineer the string of characters there into what I originally put in like Ken or Don so a good analogy for this is to think of a snowflake so a lot of people know where as snowflakes are unique each of them are unique but if it gets melted down it becomes a puddle of water and from a puddle of water who reverse-engineer it to become the original snowflake is very very difficult practically impossible so that's what a hash function tries to do make it very very difficult for you to be able to go from the puddle of water who the original snowflake and how does it apply to my knee so if you those of you who've familiar with stories like The Da Vinci Code or any movie that shows a bank robber trying to break a vault so a lot of times what you do is brute force the password right so let's say there's five characters they will just very quickly enter randomly the different characters that is possible until they get the right answer so what mining is or all these computers in the system they are randomly trying to guess answers until they become the lucky one there is the first to find the right answer that solves is very difficult snowflake puzzle so to explain a bit better as if you go back to the circle of computers just now that you guys saw that you know all of us may own one of these computers one legitimate question that some of you might have asked already is if the only people that are transacting are me and he shot what's in it for any one of you to keep validating that the transactions are correct because even if it's done by the computer so you're not wasting your energy or sweat keeping the computer running still takes electricity and still costs you money so the beauty well I find the most beautiful thing about blockchain systems is this game theory so what the founder of Bitcoin this so-called Satoshi Nakamoto did was he created a system such that all of all of us who are trying to mind trying to validate the system even if we are not using the system for transactions we will still stand to gain by mining because by mining by fact checking data the transactions are done correctly we stand a chance out of the many people to be the lucky one to win the reward given to us so even if the only people that transact are Vince and Hisham I don't see any benefit to validating their transactions because I'm not involved in those transactions but by validating I stand a chance to win the new reward that gets mind that gets created out of thin air then there is an incentive for me to still want to keep my computer connected to the mining Network so the word mining comes from the gold industry where you mining for new new goal so it's cooled I guess created and added into the system it wasn't originally there before these rewards are made up of two parts the block reward which is the new new Bitcoin that gets mine and the transaction fee which is what happens when someone wants to make a transaction if I wanted to send a transaction fee shop I need to put in a fee into the system otherwise the minus will not prioritize my transactions and that beauty that I mentioned a lot of it is because of this adjusted difficulty so on Bitcoin a new block gets created on average once every ten minutes on the theorem is once every 15 seconds but the idea is that the more - there are then if the difficulty stays the same then the chances of one of these - finding the right answer will be much it will take a lot less time because there's more of them trying at the same time but what bitcoin has done is that it creates an adjust the difficulty system so the more - there are the more difficult the puzzle becomes such that on average people would still take 10 minutes to solve the puzzle and in that way we can keep this inflation of neuquén - being created relatively consistent and stable so just a good for you so this whole mining system for Bitcoin specifically is called the proof of work it's a consensus mechanism I'm not going to go into that in the stock but you can read up into me by yourselves clear and a quick note on mining is that similar to the Quran example earlier when my when blockchain new transactions are created they are grouped into one block each and each lock that gets mine gets added into a chain of blocks such that if I wanted to hack the system and say that this law there was a hundred blocks ago I wanted to change one line that said Paris received a hundred Bitcoin from some I would need to be able to convince all of the hundred blocks that came afterwards the right answer so the more blocks there are the harder it becomes not just the more people there are so the difficulty to hack the system becomes more and more exponentially harder the longer that time goes on oh that's it on the mining part then a regular question that people will have in the minds at this point is that sounds all very interesting but how do i buy bitcoin so if you think about how you buy any product out there so you could do what's called OTC or over-the-counter that means you find your friend so let's say I find her shop and I wanted to give him a loaf of bread or his piece of chicken and we just do that transaction but it's very easy to see through our human history the OTC transaction isn't very what's called liquid because it's very difficult for me to find someone who is willing to buy my product in exchange for his or her product at the price that we are both comfortable with so humans created this thing called a marketplace so that's you know you go to a market where there are a hundred stalls it's much more likely that you'll find someone who is willing to buy your product or sell their product to you at the price that you are all happy with so similarly with the crypto industry we have creative exchanges and there are broadly two different kinds of exchanges what's called the fear to crypto and crypto to crypto exchange Sophie etiquette or exchange is where you can put in your widget and then you get Bitcoin or a hero within these there are also two subsets so it's called a broker where they will show you what the price is that they are able that you are able to buy and you just need to agree whether you want to buy or not so two examples shown here you know in synergy or licensed exchanges by the Securities Commission of Malaysia so these are legal so you can use this whereas the others are essentially not ego so opposite to the broker is the marketplace where the platform where the website just acts as a platform it's not the one that is doing the transaction with you it just sets up the marketplace and it allows anyone to be the seller or the buyer on the the two examples actually Remmy tangler and local bitcoins are not licensed in Malaysia so if you want to use them use it at your own peril so a second kind of exchange I what's called the crypto to crypto exchange so these are where you can treat your Bitcoin or aetherium for the thousands of other cryptocurrencies or tokens that exist out there and typically the Fiat the crypto exchanges will need to be unlicensed by their local regulators so they are restricted to only a few major crypto currencies that you can use and if you want to buy some token that you know your your friend or your uncle has told you about most likely you have to go to this crypto to crypto exchanges to buy them quick note this one on the bottom left here called buy Nance isn't is an exchange they were created only in 2017 and within 2018 within one year their revenue was higher than that of the it sure bank one of the largest banks in world so that just goes to show how fast the crypto space has gone in the last few years why do I mention exchanges I don't necessarily want to tell you Popeye I don't want to talk about necessarily buying or trading but the key thing when it comes to exchanges is to understand that exchanges are not wallets so if you ever see anyone who says I own Bitcoin and you ask them so where is that Bitcoin and they say that oh it's on mine you know exchange account technically speaking they don't own that Bitcoin because what you're doing is they're trusting you know to hold their Bitcoin for them and why does this matter because imagine as an exchange imagine is a money changer and you go up to this money changer and you want to trade your Malaysian Ringgit for US dollar so let's say you give in 100 and they're supposed to give you you as all this but what happens is you tell them hey I bought the US dollars but I want you to hold on it for me so you can hold the 25 US Dollars and instead of taking it and putting it in my own wallet I'm just gonna let you hold on and if on the next day and that money changer sort of office gets burnt down or gets robbed or the owner kind of runs away and disappears then all that you as dollars that I've stored in there will also disappear and because in the crypto space there is centralized regulated to help you if you put your money with an exchange and they get robbed or they run away then all of that money is gone and you lose all of it so all these stories that people have been mentioning about how there are hacks our Bitcoin has been hacked for hundreds of millions of dollars the vast majority of them are examples of where exchanges have been hacked so the Bitcoin platform itself has never been hacked but exchanges they are holding onto people's money or what's been hacked and it's very important to understand this part because a lot of people say oh bitcoin is not trustworthy and even Islamic finance scholars will say you know bitcoin is not char compliant because exchanges gets hacked but people who say this do not understand how Bitcoin or block chains work and the idea of exchanges is actually antithetical or opposite to the idea of decentralization it is now you are trusting third party to store all your money for them which is in effect it's essentially just another bank and even worse they're not regulated so please understand if you want to buy a Bitcoin or aetherium you can buy in exchange but if you keep those funds on the exchange you are trusting the exchange with your friends and you're not putting it into your own wallets where you are the one that's responsible for the safety of those funds so that's it on the features of blockchain 1.0 bitcoin if you have any questions again feel free to shoot it in the chat in the zoom chat otherwise I'll go ahead to make sure that we are on time so okay the next item is to talk about blockchain 2.0 using helium as the example and the big part of this is smart contracts so if you talk about blockchain 1.0 it's decentralized money and 2.0 it's smart contracts and smart contracts sounds like one of these jargon words that's very confusing like decentralization the you know it's very hard to understand what it is but if you peel it back to the most basic concepts you first think about a vending machine it's an example so a vending machine is really smart because there's no humans involved you can go up to it and enter and put in five ring it and and coca-cola the machine will know that if you put in five ring gate it will take it returned to you three ring day and we tend to you coca-cola instead of Pepsi or sprite or any other drinks and there's no magic behind it there's no unseen energy that's deciding how this is done all that's been done on the back end of the machine is what's called conditional statements or if-then functions so it will check that if you enter five ring it and if you press coca-cola that it will release one kind from the coca-cola shelf and it will return to you five minus two three ring it back to you so these are all coded in into the Machine and it just relies on a bunch of different if-then functions so I see a question from Arif on how to create cryptocurrency I will get back to you slightly later on that so another example that people that will help explain small convex it's another buzzword that people use on the Internet of Things so one example that people use for this cool thing called Internet of Things is what's called the smart refrigerator so what one example that they always like to use is that if you have eggs in the fridge and you are running out because you've been using it the fridge can tell that the number of eggs inside it is a running low so he will then automatically make a transaction to your new buy online grocery store and buy a new eggs for you and get it delivered to your house so that you don't have to worry about remembering to buy eggs the fridge will do it in a smart way for you this is again relying a lot on East End functions and but one issue with a smart fridge is that even though it's very smart and you know it uses this if-then function so that it saves you time it is still using the centralized financial system and that we are used to now so I still have to go through a bank and still have to go to a bunch of different third parties that might slow down the transaction and will charge fees for using their services so what key theorem does respond contracts is essentially is that it combines the decentralized money nature or picker fine with the function of the vending machine and at the core of it is that's all there is to it so you can think of it as how when all of us move from using normal mobile phones to smart phones the explosion of functions of applications that have been that's similar to the explosion of applications that are now possible with a 2.

0 so we hi phones you have the App Store where anyone can create any apps to do many many different things that's beyond the function of simply calling or texting that mobile foods most familiar with and example I like to use for Malaysians because I think we will understand this a lot better and also because it's controversial controversial and controversy sells is the idea of an election so if you can imagine an election that's done on voting that's done on a blockchain so I could go into the polling booth and instead of entering the physical piece of paper which the concern with doing that is that when I enter this ballot into the box I don't know if in behind the scenes someone who is the location is changing my vote from say blue to red or from the red team to the blue team so there's a lot of trust and putting in into this election commission and various parties involved and a lot of Malaysians you know in the years before this have raised this concern of how you know blackouts happen and how come my board is not reflective so if you were to do it online some people might say it would be a solution but online also brings its own problem because if you could be on a website and the website is private the code is an open source it's somewhere he did then you don't know if behind-the-scenes the code is also changing your vote from red to blue or blue to red so there's a lot of uncertainty there but if you were to put it on the blockchain and if you were to use if-then functions with a smart contract such that the contract will check then okay um Horus is trying to vote in this election it will check that first of all Harry is registered as a voter I am voting in the correct sort of [Music] area'd I'm supposed to vote in I'm above age I'm not a criminal and most importantly I haven't voted yet in this election and only if these conditions are fulfilled then he will take in my good and if any of these are rejected then the world will not count and I can then check that the wood was properly done at any point in time I can check on the block Explorer and I can see that that wallet that was used for me is showing the I voted on one side and not another so in this way you can tackle the problem of trust in elections so there are many many use cases for 4e theorem I'm going to briefly run through all of them and if we have time you guys can ask me to elaborate a bit more so one major example because it's been in the news a lot in recent years is what's called an ICO which is a play on IPO which is initial public offering an initial current point offering you've seen the amount of sort of scams that exists in the system I'm sure of people trying to sell you this and that token that supposing we will change the world in this way or that way but I will say from someone who is within the space is that probably 99% of them are scams and 99 of them 90% of them will also probably feel just because the things that they want to do are extremely new and extremely difficult and if you look at the the graph on the right that's a very common chart of a ICO token the current price is 90 plus percent lower than their peak price but what I see always the positive side of me is that but it allows you to do is that you it allows you as an average person a man on the street to be able to invest in the next Google or Alibaba whereas with these companies for the longest time you wouldn't be able to invest in them at an early stage unless you were one of these rich well-connected venture capital funds in Silicon Valley you're in Shanghai or Beijing and without those connections you wouldn't be able to invest until much much later when they're Google is already big on the flipside if you don't drop on your own if you're the next Google it's very difficult for you to raise friends if you're not in Silicon Valley or Shanghai if you're in some random city in Malaysia or other countries you don't have access to this pool of funds that's typical for venture capital you can use this ICO technology to allow people from anywhere in the world to invest in you using just a website so the technology itself is extremely powerful and even though the use cases right now have caused a lot of people to lose a lot of money but that technology as it grows as it gets tweaked and people understand and how to use it better will be the future of fundraising and I can say this from my own experience because I tried to use an equity crowdfunding platform which is fully licensed by Bank Negara interest Commission I tried to invest in a company I was raising equity and so I went to the the main bank account that they sent me on their website so I transferred money there one day later they told me that oh sorry by the time I transfer my money to do me back account they are fundraise had already filled up and I was too late so I didn't get any access into the equity which is not bad but I mean I still get my refund so it's not too bad although with ICS I can get it in a matter of seconds or minutes um but the worst part was there for me to get the refund and it took me I waited and waited and waited and only one month afterwards did I get my money sent back to my bank account and it wasn't because the platform was licensed by the regulators I would have been sure that it was a scam and in their defense it's because the financial system that they are using requires a lot of third-party intermediaries so it needs to go through some sort of financial party to check some sort of underwriter i goes through multiple hoops before that money can be sent back to me and which is why that multiple hoops causes the friction in time so just some example to see how the market has grown so just in the last couple years some projects have raised in the millions of dollars and even in the billions of dollars are purely by using the ICO technology so I'm going to quickly run through some other use cases I may need to do some of them so very sort of fantastical idea behind the smart contracts is what's called a decentralized autonomous organization again a lot of jargon but think of this example so I'm sure most of you have heard of these things called a driverless car where there's no driver it needs to drive and how companies like uber are thinking of how they can create a fleet of driverless cars so that they don't have to hire drivers to drag their passengers around not good for the drivers but good for the company because they can save cost now imagine if these companies like uber are not just having no drivers in their cars but they are also having no humans in running at a company and the company is entirely run by code by software so that the car that has been driven by the code also knows that when a passenger comes in and they pay using an online method the transaction gets true directly to the company without any human to validate the transactions are correct and when the car needs to send itself for maintenance it will drive itself to the workshop and the food will be the workshop the amount of money and humans don't need to be involved in the financial element the HR element or any other functions that humans are playing right now this idea sounds pretty crazy and it probably won't be a reality anytime in the near future but with the sort of potential of smart contracts you can see on a theoretical level at least how it could be so I'm going to use a more realistic example next so people who familiar with crypto will know that using it as a form of payment is very impractical because if I wanted to send a Bitcoin to someone overseas it might be worth ten thousand US dollars today but at the moment of me sending it could go down all the way to say five thousand and it's very unstable if it's very bad for both parties in the transaction so people in this space of greater what's called stable coins but a lot of them instead of using decentralization what they do is they rely on a third party so like the exchange and they just Park some some sort of US dollars in this company's account and they create a crypto token that represents those dollars and people who can create those but above it is everyone's essentially trusting centralized third party but with smart contracts you can create an algorithmic stable point where that stable point doesn't rely on any result that's held in a trusted third party it's reserved let's help completely on the blockchain and you can see throughout history of this die stable coin it's been very close to $1 at all times and with this people can send each other cryptocurrency across borders and without the fear of that currency that a pain will be devalued very quickly on this note I'd like to mention another stable coin which is the Facebook created one called Libre and it is an example of a permission blockchain where the blockchain isn't open to the whole world it's only open to a few players within the system and so if I as a person don't necessarily trust Facebook but I trust all these other companies that are within the system then I've reduced my trust from just Facebook oh that's a 30 of them so as long as a majority of these 30 are not conspiring against me or against the whole system then we can trust them instead of just relying on trusting only Facebook another example is what's called a community currency so there's a project called grassroots economics they have created local community currencies in Kenya that has helped people when giving charities in u.s. dollars and they've put these US dollars in a reserve and then created local currencies and by having local currencies they empower the local economy so people are trading with each other and the impact of donations get carried get multiplied over instead of getting sent once and then disappear another example which is very new actually it's ready which is a social network / online forum for those of you who are not familiar only a few days ago they released this community currency for two of their subreddits for the hour / cryptocurrency + r / 4 9 so these two communities can now use a currency that's only meant to be used within their ready moves and the currency isn't held by reddit is put on the etherion blockchain so that no one needs to trust reading itself as long as they consider the transactions are recorded underneath emoji another example is that of the personal token so a couple of months ago this NBA player called Spencer Dinwiddie early plays for the Brooklyn Nets he tokenized not exactly this way so this is not a legally correct way of describing it but essentially he tokenized his NBA contract or the salary that he gets from the NBA and put it into a bond such that you could invest in Spencer Dinwiddie and by putting money in you will get a bond so the coupon payments on a regular basis as well as the value of the ball itself at the end of the bond period so if you can imagine how this could be applied outside of just Spencer Dinwiddie as a person it could be applied to any athlete who wants to get a lot of capital upfront and reward the supporters with their salary as well as other benefits you can see being applied to say income share agreements so let's say people who don't want to study in want to further their studies but don't want to take crippling student loans and they could create this token so for people to invest in them so that they have the money to go and further their studies and they can repay their investors later on overtime and many other applications or personal cookies another example and which is very powerful to me because I came from the insurance background I suppose called a parametric insurance company called hurricane guard who give insurance to people who are inflicted by hurricanes and one of the problems with these kinds of insurance is that when a hurricane happens and you get your claim paid out for many people it's too late because the Hurricanes already hit you your house and where you are and if you didn't have enough money at that point in time you're not able to move self and your family to a safe area and whether or not you get paid the insurance you might already be you might have already died or suffered massive injuries by the time the insurance payout gets paid but what a parametric insurance does is that the payout is made before the event happens so in the case of a hurricane using satellite technology we can predict to a very very high certainty that a hurricane will hit a certain location before it does so if the insurance can get paid out to me before the hurricane hits my house I can then have money that I can use to pay for fuel to pay for necessities and I can take my family out to a safe area and secure ourselves so the insurance can not just be used to pay in case of my suffering but I can also be used to help me save myself and that can all be possible using smart contracts and just to show this is just what's called the defy the decentralized finance space there are literally hundreds if not thousands of projects within the space currently all of these projects are existing and they have a product or at least a test product out there in the market so anything from decentralized wallets to the stable coins to identity solutions derivatives decentralized exchanges which is tackling the problem of exchanges that I mentioned earlier there are all kinds of these platforms they exist out there and too many for me to go through in the stop so all of these examples highlight the endless possibilities when you combine decentralized money with the smart contracts so essentially what aetherium is is it's not just decentralized money he creates decentralized applications you can use the decentralization for anything for a lot of things beyond just money another way to look at it is it's also programmable money so instead of just money that you can transfer from one person to another you can program it to like the vending machine set such that if these conditions are met then I will transfer this much value to this party or to these different parties and even another way of describing it is it unstoppable so even if there is a government or some sort of entity they want to censor your applications so let's say you created an app on their iPhone App Store and the Apple blocks you from creating the app on a cereal no one can stop you from creating your hair so you can create applications they are unstoppable anywhere in the world so next I just want to go briefly through local companies and communities very briefly so some examples are so the pride of Malaysia are two companies interests and I explained just now if the leading block explorer the library the example that you guys saw just now it is used by vast majority of the people in the etherium space around the world and it's just a small team based out of Shah aalam coin gecko similarly is another small Malaysian company which is used by everyone in the world and it allows you to look at the details of different coins like their prices and their volumes and the developer activity similar to if you go to a Busan Malaysia website and you look at the stock market prices of different stocks that's what Kornienko does and they also use where people around the world hello goal is a local company and that focuses on a lot of people to save in gold and they've been building a feature that uses blockchain features neuro where is a launch in consulting and services provider they have worked with Bank Negara before on some solutions block line another one that has largely been doing a lot of Education so a lot of different hacker ponds or different programs that people can join and luck stag is another company that allows people to track sort of weather let's say they are from a dog bag is it futaba Prada bag and not not a fake one that's created out of China example then some examples of communities here in Malaysia which is when I go organize we run our meet up once a month at least on the first Thursday so you can join we try and make it as welcoming as possible for not just technical people but you we focus on the technical and use cases elements of law chains Bitcoin Malaysia is a Facebook group it has 56,000 members and covers essentially a lot of things to do with blockchain than Bitcoin a lot of it naturally will revolve around pressing the g1 group is a group of very well-connected traders and it's very highly curated so they filter a lot of people like the telegram group that's got a lot of the most and experienced people in watch it space in Asia access Malaysia is an body that tries to represent the crypto industry to talk with regulators and entities like banks the Asia watching embassy is a sort of a group of different companies and corporations and they have said they wanna work on blockchain solutions and Asia watching review is a magazine actually as in Southeast Asia and if we worked with a few local universities to enhance our knowledge of logic so separately from those a note on cultures within the crypto space and this is for you if you're interested to go deeper down the rabbit hole and based on my own personal difficult experience of navigating space there are I would say broadly three different groups the first group are shells so people who are silly in their own coin and it's a natural part of how the game theory of blockchains work such that if you have a lot of say Bitcoin versus etherium versus some other token then naturally you will want to pump your point you will want to say good things about your coin because when other people buy the team on goes up then the price of your coin goes up and therefore your investment value goes up so it's very important to understand when you talk to people in the space whether or not they are scamming you a lot of people will be having an incentive to pump their own bags so you say so you have to have that filter when you talk to them to understand if they say that oh this coin is bad and this coin is good it might be because they have a position in this coin and not in the other much less to say for scams it will be similar essentially because they're pumping their own Ponzi schemes or MLM schemes so take note when people tell you about this a new coin or new token out there keep that in mind because they might just be shilling your own project a second group are people who are largely sort of seen in the Bitcoin circles who are like a pure Puritans of the Bitcoin space and they are resisting any knew a lot of new changes because bitcoin is meant to just be money and if you do a lot of experiments on Bitcoin then you are creating a lot of potential for errors of all bugs of all ways for people to attack the contract so because bitcoin is meant to be just money so the culture is to make it very straight so that we don't accept a lot of these changes and we are strict and rigid about what bitcoin is and what even blockchains and cryptocurrencies are so these are the kinds of people who you would see will say things like it's Bitcoin not watching keep that in mind like it's it's a very valid mentality to have but if you start talking to them about these different decentralized applications they might look at you bad or try or essentially you might start an argument and a lot of it comes down to having these different mindsets of being very rigid this is being very experimental so the flip side to that largely seen if you want to compare between the Bitcoin ATM space so largely seen in the interior space is people who are willing to experiment what I'm going to try to do all kinds of new things with the blockchain so this the negative side to this is that by doing all kinds of experiments you might open yourself up to hacks or buttons in your product so you can see a lot of aetherium applications that have had hacks or errors in the code and people have lost millions of dollars of money themselves still it is not a hack on a theorem platform but on the users of here so keep things in mind that are essentially three large groups and depending on your position and the position of the people you're talking to it would influence your discussions with them so to end we have so what so you've heard an hour and half of me sort of lecturing you about blockchains what does any of this matter to you individually so one thing is it's and [Music] it's provable by now already more than 10 years after bitcoin started and five years since cerium started that the technology exists it's still an early stage but the technology will be there and it will influence how the world works going forward so one analogy people like to use is how Internet has enabled communications where before internet we had to use so sms's or lettuce or weed internet you unlock a lot of ways even beyond what he was originally sort of imagined so you have things like Facebook like Twitter Instagram that are powering the Internet similarly blockchains have very sort of initial use cases only and it's really only up to our own imaginations and how we execute on these ideas to see how an internet that combines transferring of money or value in a decentralized way without a trusted third party can how these use cases can exist in a lot of places in the world it's also an investment but it's an extremely high-risk investment so you can see how with security you might use all your funds and there is a nonzero chance that the blockchains that exists currently may not be the ones that survive in 20 years time like how we have companies like Netscape from early stages of internet which are not here anymore so even if you invest in a current blockchain platforms let's say Bitcoin etherium this might be sort of become outdated in twenty years time and use their value so understand that is an investment where it's extremely high risk and with that also comes a potential high reward you also wanna look at how it impacts your industry wherever you're coming from so any kind of system that you want to reduce the reliance on a trusted third party whether it's some sort of bank whether it's some sort of in a supply chain the various intermediaries involved if you can reduce their reliance on them then blockchain is something that can help and lastly on this page from the community please help us grow join us join the meetup groups learn a bit more come up with your own projects whether your program for the manager someone from industry and academic a regulator there's always a space for you in this space because you can see that it's not just about for programming or computer science it's not just about cryptography or economics or game theory or psychology it's a combination of all these different fields to create this powerful thing that we call blockchain and one node to this is I showed Facebook just now and it's an example of a permission blockchain and there are many other corporates or governments who want to do their own closed forms of blockchains and twenty thirty years ago it also existed with the internet there were companies I wanted to own the internet within their own hands and it was only from the efforts of many people of the open-source community of members of the public who built on the Internet to allow it to be why it is now that is public and open and anyone can use so it's a call to action for you guys to join us in this sort of effort to make blockchain open to the world and something that is used for good for the public and not just for selfish interests or for bad purposes so here I'm chilling my meetup group so join our ETV militia group again after the coronavirus situation and settle down we hope to reopen our physical meetups we get guests from around the world and very smart people from the local space and there's a room for you if you're a programmer if you not a programmer and you just to discuss the more economic or human side of the blockchain and this room for you if you're a complete newbie who don't understand any of what blockchain is I do this kinds of talk regularly on the meetup group as well one thing I'd like us as a community to do more and I used to pay projects and that would help benefit the world and put Malaysia on the map so if any of these project idea is on the left interests you ready to do a decentralized chit fund community currency community Dao and to do some sort of community insurance or any other project that you might think of I'd love for us as a community to work together for people from various backgrounds whether they are from computer science economics legal or what-have-you to come together and create a community product and that will benefit the entire space and while it may not benefit or line your own pockets it can help establish your reputation as well especially if you're a student and there are many to currency or blockchain companies in the world who are looking to hire people and are willing to pay a lot of money and if you can show on your github page if you're a developer or your LinkedIn page any projects that you've worked on or any hackathon that you've participated in they're much more likely to want to hire you because they know that you've been in the space and you understand it and are passionate for it potentially also if any of these projects get created and someone wants to take it up and create a business out of it then the community can be a natural incubator because we have a lot of people who are connected in a space and who may have funds to help provide capital and if you're not looking to create a company there's also job's websites that you can look for you can look for so one of our community members runs this crypto jobs this website where literally there are hundreds of companies looking for people to hire and you can submit your resume in there as well so to kind of give a go through the overview di went in earlier so we covered some free introduction or preamble to money and he said decentralization we went through some features of Bitcoin blockchain 1.0 and we went through smart contracts that primarily makes up watch in 2.0 [Music] and some local companies and communities and so what [Music] okay cool then some sort of further reading that you can do you can take a picture here and I'll try to make sure I can share the slides later you'll have to be connected in some way to incest or the meetup group so I'll go to me.

com or make sure your emails with itself but so here's a lot further reading you can take a picture just for your reference but my one and a half hours plus of is not nearly enough to cover the entire field there are many different topics that I have not even touched and even the ones that I have touched we can go much deeper since we have the since we have a lot of Islamic finance people here I'll also go through a share our view of blockchains and also I think one of our members asked earlier but before that I just want to end on this page before I address any questions if you have any feedback on this talk or on myself or under Meetup generally you can scan the code the QR code on the left or enter this in your internet browser bitly slash et al 101 it will redirect you to a Google phone where you can give us your feedback any feedback is more than welcome please be as brutally honest as as you'd like and if you're not already a Luna user and you feel very excited about buying currencies you can use the the referral code on the right side or again you can scan the QR code which will redirect you to do no and when you do that and you buy 250 ringgit worth of cryptocurrency both you and us will get 25 ringgit and from our side we will use it to help fund our bit of group activities all right so I'm gonna address some of the questions that was asked earlier and if you have any other questions feel free to put it in the zoom chat as well I'll cover it on here so the first question is mean advantage of blockchain for business owners and customers so I mentioned it's ready very end just now um it all depends on your industry and how things work there but for your industry if there's any key part that you are relying on a third party then the blockchain may not be a product right now this since you but the industry as a whole will have if not yet we'll have a product that will address your problem so for example if you are an SME owner and you have troubles getting financing a blockchain product could be created that allows you to create p2p financing and which is then completely open source around the wall anyone from any country can give you that financing you don't have to wait on your bank or any sort of big companies that will not be incentivized to lend to you yes that's one example then mr. Issa same person also asked about whether blockchain is that share a complaint and I'm gonna gonna quickly go back to one of the earliest one of the earliest screens that I showed earlier so if you go open up this page so the Sharia sort of position first of all it's quite broad so there are many scholars that will say this is wrong this is allowed what and this is my personal experience only what I found is that a lot of them who say that it is around don't understand BC concepts of the blockchain so like the example I shared earlier they don't understand that exchanges or not of the blockchain protocol itself so it's a player on the blockchain and you are trusting that player so if we ignore those there are people who have said that this is Sharia compliant and the logic behind it is primarily that it's not about cryptocurrency by the way it's not about any kind of technology the Sharia status is about the underlying asset so even if it's not using block chains if you're looking at stock market for example what matters is the underlying asset and not the technology of using the stock market itself so we don't work crypto SS there are different kinds of essence right so obviously if the underlying asset is representing some sort of criminal use let's say weapons of mass destruction or or pornography or drugs that are harmful to society then naturally it becomes Haram or non-compliant if the underlying SI is not wrong so if it's a registered stock of a company and it's provable that that token really does represent the storm and it's not a synthetic token like how weather if I create a token and I claim that he represents the stock but in fact I don't hold the stocks that specking it then so if I don't pull the stocks then it's not shocking lying whereas if it's provable that it's holding on to the stocks then it is sheraton time then so that applies to object to securities and crypto tokens it depends on asset and if the token is used as a cryptocurrency then the rules on currency applies so in Islamic finance there's this concept of the whole rebury and for any reba ii item you cannot sort of trade for it if it's not one spot so for example if I buy Bitcoin from you using ring it and move our considered currencies by both of us and I cannot buy from you at a later time he has to be on spot so it means at the same time I give you money you have to give me a Bitcoin some scholars and expanded it to as long as it's t plus zero so we saw access within the same be it is considered ok but I cannot do a futures contract where I pay you 100 ring gate today and you will only give me Bitcoin that is valued as at 7 days later another part of your body is that if you wanted to treat the same currency it has to be like for life so if it's Bitcoin has to be filled it for also Bitcoin cannot be some other paper currency and has to be the same amount so it has to be 100 Bitcoin for 100 Bitcoin and cannot be you can't do some sort of arbitrage within these currencies another final aspect to crypto assets and they are Sharia compliant status is that it cannot exhibit features that are not sacrifice so for those of you who are in Sonic Finance the terms that you already know like my seer Reba I all these things if it's applicable to the crypto asset then that Gupta set is not Sharia compliant so yeah I hope that helps gonna go too long into that and sometimes I'm just gonna scroll down your questions if I miss the question let me know let me see I scroll down I missed one question asked us very early okay so I read asks how he can create his own cryptocurrency so you can use the etherium blockchain so like I mentioned earlier it's created a platform that makes it easy for people to build on top of to pay your own decentralized applications so if you're a developer if you're someone computer science background you can simply code using this language called solidity it's very similar to Java Script and you can use a lot of libraries that other people have built to build on top if you're not a developer there are certain tools that have been created and you can kind of like plug and play just use the interface so for example there is a company called try rule which allows you to create your own personal token although they make no guarantees to the legal status of it and so you can use just from their interface create your own personal token and then sell it off or give it to different people for a better answer so the discussion is much better for you to just join the middle and can explore different topics or different use cases that the community wants to export with creating their own creating your own tokens getting your own cryptocurrency essentially is similar so you can use again the etherium chain to simply create your own crypto token and you can say that that token is a currency but the bigger problem for you would be to convince other people to start using your currency instead of using the thousands of other cryptocurrencies out there or or normal breakdown so mr. Aditya so you're from the real estate industry ah I will send over the link to the meetup group in here and if you're on the meetup calm here in Malaysia then you essentially do already and whenever we host next meetups we will inform you so that you can know and then you can dial any pizza online meetup or you can join us if it's a physical meal mr. Ibrahim asks how blockchain village and Medina can collaborate with each ask and you can send me a message on meetup.com later on my account I already know a couple people from watching village so for example Aron thing and yeah but but that's outside of the hopping of this so ibraheem asks again about eco system of a blockchain industry i'm not sure what that means exactly there's many different sort of so the ecosystem as a whole has many different components so they are different the different blockchain protocols and platforms there's different sort of use cases different product use cases yeah I did you know a bit more about what you mean by this question to answer it better you could use the slightly I showed earlier to give you a sense of not necessarily ecosystem by the different cultures that exist within their crypto space the three broad groups psychologically that you can see I'm gonna keep this page up so you can still scan these codes if you need to okay so last question is how to register for the Meetup okay let me open that link for you right now and you can just simply and join it so I'm gonna send in the zoom chat so so it's meetup.

com slash if Malaysia's eth malaysia so you can open up that page and just join the group and [Music] that's four on that note I'm as well share this link feedback form the full link so if you just click on on this doc stop google.com link to give your feedback and for referral you can also just I'm gonna send early correctly so it's easy for you to click on that will be this link here okay cool so um there's nothing else we're already almost two hours since the start of the talk I hope this has been beneficial and yeah you can join their Meetup and ask questions there we are also a telegram which the link is inside Mediacom peach you can join in ask questions there as well or you can ask in self and we think ordinate answers there and if there's interest we can also do other topics around the block chain would be one of these many topics that exist so feel free to let me know how you'd like to participate and I'd love to see more Malaysians join the blockchain community and not just to make money year to sew to trade but also just to understand the technology itself and create our own use cases that can benefit Malaysia can benefit Islam in finance if you from the space and even just benefit the world so on that note I will end you show me have anything to add and session otherwise I'm okay to just end the call here thanks thanks Dalit thanks for spending your time and yeah please let me know your feedback to see how we can improve it later I just realized the link that I said was only to one person so I'm gonna send all three links in the group itself or you guys for the others to see okay so let's live for everyone yeah okay so thank you everyone and I will end this call sorry about the I meant that so you can see that now I will end this call in a few seconds just for people to be able to copy and paste the links they are just shared yeah thank you everyone and hope to see you at our meet up next time bye so make them