TED-The future of money(Neha Narula)
There’s some points from this TED I would like to share:
There’s nothing inherently valuable about a dollar or a stone or a coin. The only reason these things have any value is because we’ve all decided they should.
Money isn’t anything objective. It’s about a collective story that we tell each other about value. A collective fiction is a really powerful concept.
There’s a lot of friction in the system, for instance, credit cards cant’t work transnational, transferring money across borders and across currencies is really expensive and our access to digital money and our ability to freely transact is being held captive by these gatekeepers. And there’s a lot of impediments in the system slowing things down.That’s because digital money
isn’t really us, it’s entries in databases that belong to bank, credit card company or investment firm.
Most services don’t work together, they don’t inter-operate and when institution control the money supply they block what they can do with payment and makes transaction costs go up.
Two phases of money
- Physical objects(money moved at a certain speed, the speed of human)
- Digital world(reach faster and further)But now because of the gatekeeper, money only move at the speed of bank.
The future of money is programmable, ….
it combines software and currency and remove human and institution from the loop and don’t rely on institution anymore.
Cryptography (the study of how to secure communication)
- Masking information so it can be hidden in plain sight
- Verifying a piece of information’s source
TED-How the blockchain is changing money and business(Don Tapscott)
Trust is native to the technology, so i called it “The Trust Protocol”.
I like this sentence the most cuz it’s the foundation of the technology but i didn’t find out til Don Tapscott said it.
He made the blockchain and NFT things clearly so i would like to share parts of it to you guys.
Blockchain — They’re distributed across a global ledger which are using the highest level of cryptography, when a transaction is conducted then it’s posted globally across millions and millions of computers immediately.They have massive computing power 10 to 100 times bigger than all of Google worldwide. Miners do a lot of work through their fingertips, they do lots of work every 10 minutes, it’s kinda like the heartbeat of a network. And a block gets created that has all the transactions from the previous 10 minutes.The miners get to work, trying to solve some tough problems and when they compete the first miner to find out the truth and to validate the block is rewarded in digital currency in the case of the Bitcoin blockchain, with Bitcoin.
The key part: That block is linked to the previous block and the previous block to create a chain of blocks and everyone is time-stamped, kind of like with a digital waxed seal.So if I wanted to go and hack a block and pay you and you with the same money, I’d have to hack that block plus all the preceding blocks the entire history of commerce on that blockchain, not just on one computer but across millions of computers, simultaneously which all using the highest levels of encryption and in the light of the most powerful computing resource in the world that’s watching me.Tough to do. This is infinitely more secure than the computer systems that we have today. That’s how blockchain works.
NFT
There are numerous of creators of content who don’t receive fair compensation, because the system for intellectual property is broken. It was broken by the first area of the internet. Take music for example, musicians are left with crumbs at the end of the whole food chain.You know, if you were a songwriter 25 years ago, you wrote a hit song and it got a million singles, you could get royalties of around 45,000 dollars.But today, you’re a songwriter, you write a hit song and it gets a million streams,you don’t get 45k,youwill only get 36 dollars just enough to buy a nice pizza. So Imogen Heap,the Grammy-winning singer-songwriter, is now putting music on a blockchain ecosystem. She calls it “Mycelia.” And the music has a smart contract surrounding it. The music protects her intellectual property rights. You wanna listen a song? It’s free, or maybe a few micro-cents that flow into a digital account.You want to put the song in your movie? That’s different. And the IP rights are all specified. You want to make a ringtone? That’s different. She describes that the song becomes a business.It’s out there on this platform marketing itself, protecting the rights of the author and because the song has a payment system in the sense of bank account, all the money flows back to the artist,and they control the industry, rather than these powerful intermediaries. This is not just songwriters,it’s any creator of content,like art, like inventions, scientific discoveries, journalists. There are all kinds of people who don’t get fair compensation,and with blockchains,they’re going to be able
to make it rain on the blockchain. And that’s a wonderful thing.
Five transformations for a prosperous world
These five are to solve one problem, prosperity which is one of countless problems that blockchains are applicable to. It’s giving us another opportunity to rewrite the economic power grid and the old order of things and solve some of the world’s most difficult problems if we will it.
It’s really interesting to listen to different individual using creative way to explain their ideas. These give me more chance to summarize it and understand it toward new ways.
