From Web1 to Web3: The Evolution of Trust, Security, and Digital Finance l KBW2024

hello thank you so much for being here I really appreciate the interest uh just uh PSA this is going to be in Korean and English so um if you need both or either please uh put your headsets on um I I think this panel really requires no introduction um I'm happy to be here first of all my name is j Roi um I am leading up a bigo Korea alongside efforts I joined bitco earlier this year uh really focus on rwa as a separate category of product for bitco you extension and kind of the theme of this panel as well how do how do we as an industry and obviously us as a company but really as an industry how do we go from where we have been in terms of focusing on the digital assets you know crypto as a category to something more than that and that's really the theme of this panel um we're really excited to be here with our partners from SK Telecom and also Hana Bank uh you guys know the background so let me just get started with the initial question um if we think about the the word trust it's actually a very complicated word and yet it's a very simple concept but if you ask I I I'm sure every single person in this room everyone will have a different understanding of the word trust and what it means um so this first question which I hope uh each of you guys can explain from your personal background uh how did the world word trust evolve from web one web two and web three uh Mike uh hi everybody um good to be here uh it looks like like we got a a big crowd thank you youngro um let's see so I have a little background in in I guess HTTP uh prior to getting into digital asset space uh in in 2013 um I was at Netscape way back in I guess 1995 is uh and uh spent a fair amount of time there so web one and we two a little bit contrived words I think to to write history uh after the fact but uh definitely some interesting remnants about how we built trust in those early days till today um specifically when we were building uh the web browser back in in the mid 90s we wanted to enable e-commerce and there was no way to do it SSL uh is the secure sockets layer that had to be invented to make that happen um and everybody believed that e-commerce couldn't happen unless we had some secure way to move effectively credit card numbers but even predating SSL is this little obscure error code you're probably not that familiar with you've probably seen a 404 page not found right you You' seen that well the 400 series of varas there's also one called 402 you've probably never seen it it is payment required and it was actually created all the way back in the early specs of the web and it was anticipating the idea that someday you'd be able to do digital assets straight through your computer anyway we didn't have it so web One Trust ended up being around how do we create something for e-commerce and there all these e-commerce evangelists SSL gets created verisign gets created and Trust emerges as this Central um you know certificate Authority mechanism where veras sign and others you know attest that you are who you are when you're connected to a domain and e-commerce was born and of course the web grew and everything worked great uh web 2 uh really kind of just a consolidation of that where now as we start to get applications from Facebook and social networking to search and Google and everything else uh just a few small number of players of course start aggregating this information and they find it very very lucrative if they know what you're interest are what you're buying and shopping Etc they become your central trust Point um so that everything is within within with their their servers of course that's got some things to backfire we had you know what was it uh something analytica from uh from Facebook uh what Cambridge Cambridge anal there it was yeah I knew it was MIT guys or something um but uh you know all of a sudden they start using it in ways that people didn't quite anticipate and then here we are today talking about web 3 web 3 is building Trust by not having to trust anyone um so all of a sudden you move to holding your own data by way of managing public private Keys um it's interesting that all the way back in web 1 is where we created those certificate authorities it was really the first pki pki application public key infrastructure application um since that time there really hasn't been a lot where pki has been very effectively used in Mass until crypto and suddenly everything opened up in 2009 and as you know Bitcoin launched um cryptocurrencies launched and then we come into web 3 so anyway this panel here today we have a lot on the uh you know kind of the traditional side of Finance but we're now blending that into uh you know the digital asset Technologies and all of a sudden we got to rethink trust so there's there's definitely still need for trust in all Finance uh in my opinion I think when it it comes to institutional trust you need to know that like there's not some guy that holds the keys uh at a treasury of a public company and he should mismanage it that you would lose all your assets this has always been true this is why we have Auditors this is why we have all of the information disclosures with public companies is you need to have business continuity so we will still have that form of trust for institutions but we've now got something new with web 3 uh with crypto which is the ability that you can hold your own data you can hold your own money you can interact your way on the web and S um if you can answer that question but maybe with a focus also on identity user verification in kycs because I know that's a key factor for SK Telecom as well service Prov decentralized contr [Music] Prov it's very interesting especially from Telecom perspective because obviously you guys see all this happening from day one Alex if you don't mind answering the same question but from a financial institutions perspective because I'm sure that's a big issue for you especially in the past and now obviously we're trying to do something in web 3 as well uh please um welcome your opinion Val web one web [Music] SK thank you so much so I think hopefully everyone got the gist of it but essentially uh from a Silicon Valley um you guys know Mike's background from other startups to to bitco today and really from the data of a security uh of a telecom company in the bank as well Mike maybe shifting gear so everything we talked about really is the context and the history of how the industry evolved at the same time you said you know the way to be trust is basically I guess be trustless um at the same time the assets themselves security is a separate Topic in matter so if you can talk about how do you take into account all the things that the panel said how do you translate into security the actual secure of the of the dang assets uh and would love obviously you know any practical or or anecdotal evidence or or experiences you can share about that especially in recent years sure I think um a lot of discussions happened you know all the way back to the beginning of of Bitcoin the idea is you know using public key cryptography can we own assets and that comes with the challenge of how do you secure the private Keys interestingly in our technology sectors regardless of whether you're talking about Finance or anything else uh we have proven pretty ineffective actually at solving uh the problem of preventing data leakage and loss of Secrets and you see this by way of hacks that you read about every day not necessarily in our industry but other Industries like we have just struggled um people as end users have struggled with security they use the same passwords on two sites they forget their passwords they store it in places they shouldn't store it so one of the challenges that comes with having massive amounts of digital property online is how are you going to secure it so obviously all the way back to the beginnings of Bitcoin we've been thinking about this of course we started figuring out ways to address security through traditional measures and security at some level is really about eliminating any single point of failure you know and if you're on this panel you've been doing banking for decades if you're in the security technology space uh you know these things if you have a single person that is holding an asset or holding a secret you know how do you split that across two people or three people um and of course this is why you know we pioneered multisig um you know some time back today we use you know multisig we use multi-party computation use a whole bunch of things but uh at the premise of it is how do you um you know eliminate those single points of failur and then split the responsibility across multiple parties that expands from keys to people to institutions and then ultimately to jurisdictions as well and I think everybody here that has some amount of digital assets is thinking about this turns out security is very hard you want to have continuity uh of safety and you want to be able to have you know in a lot of cases self- custody how do you do that how do you maintain your backups how do you maintain your backups in a way that a family member a friend or an accident can't cause you to lose them so obviously this has been a huge f Focus for for digital assets um it continues to be one of the usability problems for everybody here whether you're in the financial space or the gaming space thanks Mike and that really is something that we at bigle really care about um we it's interesting as a startup but also a tech company people think security is a technology problem and it is as uh as as Mr O said but it's also a legal problem it's also a regulatory problem so the trick in our opinion well I shouldn't say trick the solution in our opinion is how do you combine these different things both both the technology Innovations and the legal Innovations and candidly regulatory analysis because no rule was clear and so that's something that we think about every single day at Pico and with our partners we obviously hope to do the same in Korea as well so maybe as a final question if you guys can uh kind of give your final thoughts you know about two minutes each where does this all go like let's put a let's pick a timeline let's say next five to 10 years right we can't think too far ahead hopefully we're all still working in 10 years as well um what do you think the future will be now that we just said what we said and with this amazing audience here how does these things evolve further how does trust evolve further security digital assets free flowing thoughts please maybe I'll start with Alex and then Sean and then Mike your question is there how I see the next I yes yes okay yeah um so um Comm fin self mob blockchain Main netk for m for for my final words so I want to add just one one last thing like the things that we're doing here are so important not just for the finance world not just for games but for human rights so if you're in Brazil today you can't access a whole bunch of the media because they have a dictator that's decided to block X right along among with other things and this is happening all over the planet the same technologies that we're building for crypto so that you can have money and keep it safe and make sure that nobody can take not even the allegedly trusted governments around the world is going to also apply to Human Rights and to free speech in order to make it so you can't ban something like X we're going to need to take this digital asset technology we're going to need to actually put it at a lower level in the protocol stack unfortunately you know today the the security layer rides on top of the transport it needs to ride underneath the transport so the transport cannot be tampered with additionally we're going to need to decentralize things like app stores the next thing that's going to happen is they're going to ban certain apps on your phone so that they can control and prevent you from accessing either Financial technology apps or from preventing prevent you from accessing information apps so anyway um I think it's incredibly uplifting actually that in this particular moment in time we have had the last 10 years digital assets coming around really to help protect everybody in this room everybody around the planet from the problems that came with a great financial crisis when we didn't have transparency into where money was and the ability to make it happen we haven't nearly gotten far enough with that we're making good inroads but then I think the next steps is like free speech it's about human rights it's about making sure your apps are all open and free as well there's so much more to do thank you so much have a nice day [Applause]