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  • Whats up party people? My name is Chris DeRose, and I am the community director of the Counterparty

  • Foundation, and in this video today, we are going to ask a great question that everyone

  • is really excited about. What is a blockchain? So, I see this a lot. It's a really big thing

  • on the news. The finance networks are talking about it. Paul Krugman is excited about it.

  • I've been a big part of this bitcoin thing for a while, and blockchains come part and

  • parcel with bitcoins. But people are starting to get really excited about this. They are

  • really starting to understand that perhaps bitcoin itself is one component in a much

  • larger revolution, and that revolution is the blockchain. So the blockchain does a lot

  • of things, but what it essentially does at the end of the day is insert truth in a decentralized

  • way when everybody has an incentive to lie. So you're thinking about the way it is in

  • society. Now, we have many truths, things like our bank our bank account balances, things

  • like what property records we have, things like, even, who won the dolphins game. These

  • are all truths that are typically centralized.

  • We know that this is a truth because someone told us, that we trust. Now, with the invention

  • of the blockchain, we no longer need this oracle of attestation to tell us what is true

  • or not. We instead we rely on consensus from all actors. Unlike, perhaps, prior proposals

  • and prior ideas, the neat thing about bitcoin is that it forces that there be only one truth.

  • It's at some level a vote. It's at some level a poll of sorts among the actors involved.

  • But mostly, it is a fairly complicated mechanism for not only asserting truth and keeping that

  • truth in persistence thereafter, but creating this truth from which these other truths can

  • then be had. There is a lot to the blockchain. You can see some of my presentations at universities

  • and such on how that is achieved. But in terms of what this means to society, really big

  • changes. You think about how, right now the government functions in various forms by maintaining

  • property ownership records, and they do a good job, but, you know, we need title insurance

  • still. They are not perfect at it. There is all kinds of litigation involved, and it's

  • expensive.

  • There are costs associated with this project. We need to pay them to do this. With blockchains,

  • that becomes free and more accurate. That is just one small example, we'll see it for

  • all kinds of things, certainly various tokens, things like currencies, things like points

  • systems. We'll see it for betting transactions used, like what happened in terms of rooting

  • a middleman and modifying bets. We'll see it probably replace the New York Stock Exchange

  • or the Chicago Mercantile Exchange. These are also sources of truth that will then be

  • moved on to a blockchain. You know, one last point on this that I cannot stress enough

  • is there is a lot of people in the community that feel like "blockchain all the things,

  • we'll need tons of blockchains." I'm not actually one of those people. I think there will be

  • very few blockchains. I think that because blockchains work, there is an incentive to

  • join the longest chain; that chain is bitcoin. And I think for all the people you see right

  • now, talking about the cool things we can do in bitcoin, they don't want to say the

  • "b-word," that is bitcoin.

  • They don't want to say that bitcoin is useful, but what they'll start to come around on,

  • what they'll start to realize is that if you think blockchains are useful, you are going

  • to have to believe in bitcoin. Bitcoin itself is what makes the blockchain works. It's how

  • this whole system comes together, and it is the smallest unit of scarcity that represents

  • the truth of the system. So that's it. That's the gist of what blockchains are. It is a

  • non-technical description, but I think you are all going to see a lot coming forward

  • on this in the future. And definitely, if you like what you are seeing, check out my

  • channel, subscribe, ask me questions. My handle is @DeRosetech, and my email is

  • Subscribe to my channel, I'd love to keep you around.

  • Later, party people.

Whats up party people? My name is Chris DeRose, and I am the community director of the Counterparty

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B1 AU blockchain truth incentive excited prior people

What is a Blockchain?

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    Chris Lyu posted on 2016/01/04
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