The Value Revolution: How Blockchain Will Change Money & the World | Galia Benartzi | TEDxWhiteCity

Translator: Midori T
Reviewer: Emma Gon Six years ago,
I became obsessed with money, (Laughter) not having it but understanding it. Money is one of the most central
elements in all of our lives, and yet, most of us know little
about how it works. It seemed to me you could trace almost every problem
in society back to money or the lack of it. The aha moment happened for me on a typical sunny day
in Palo Alto where I grew up. I was an Internet entrepreneur –
which is also typical there, and like most days, our engineering team
was fiercely debating a new technology. On this day, they were
talking about money, and not regular money but Internet money. They had discovered
something called “bitcoin,” and they claimed
it would change the world. The promise of bitcoin
and the technology behind it called “blockcain” was to allow us to safely send digital money
over the public Internet directly between us
without any intermediary like a bank. You might think like I did that services like PayPal
and online banking already let us send money online, and like I was, you’d be wrong, because money doesn’t actually move
directly between us on the Internet; it actually sits in closed, private
networks owned by banks and governments, and every single time you send money, you are asking them
permission plus paying fees to move money around in their systems. There used be a good reason for this because the value stored in money
is very different than the kinds of information
we’re used to sharing online. You see, information
like text, video, images can exist in many places at once. When you send it to someone,
you and they now have it. With value, it can exist
in only one place at one time. When you give money to someone,
you no longer have it. With money, it’s essential to know
that you’re not getting a copy. And no one had yet figured out
how to secure an open network like the Internet in such a way
that would guarantee that our money could not be changed,
copied, or duplicated until now. For someone who grew up
in the Silicon Valley, watching the Internet change our world, this was a really big deal,
and here’s why: think about how information
moved before the Internet. You needed to ask permission
of a newspaper or a cable station in order to broadcast your opinion. The Internet let anyone share any idea
instantly and cheaply directly between us. And the information revolution
completely changed our society. Now anyone with a laptop could topple a government
or sway an election, and that was just through sharing
the ideas stored in information. What would it mean
for the value stored in money? This new technology, blockchain,
was creating an Internet of money that would allow us to transact
freely, directly between us without asking permission
or paying gatekeepers. The implications for society
of having an open, global network for the free exchange
of money between people are as big as the Internet. So what is blockchain? Well, it’s pretty technical
and challenging to describe, so I’ll give you an image
that worked well for me. Imagine a magical book. Anyone who wants can get
a copy of this book for free. And what’s magic about it is that anyone can add
lines of text to the book and those lines will automatically
appear in everyone’s copy. Now imagine that those lines
aren’t just text but transaction records, so the book is like a database
or an Excel spreadsheet, and it’s a long and growing record
of all the transaction info ever added. The book is so magical that any transaction
that cannot actually take place – let’s say due to insufficient funds
or an incorrect password – will be automatically
rejected by the book. But once a line is entered,
it can never be changed or deleted. Every few seconds, the pages
of all the books check in with each other to make sure they’re in sync, and once a page is verified,
it is sealed forever. The only way to destroy this book is to destroy every single copy
of it out there. So even if the original author
destroys the original copy, the book will live on. This is similar to how blockchain works, and its power is in allowing
a network to operate reliably without the need
for a central point of control. It does this by stringing
computers into a network, so that together they’re in charge
of running and securing the system. And it allows users
to place their trust not in magic but in a transparent algorithm that reliably logs and transfers value
from one place to another with no central control. It’s kind of like a Google Doc
with no Google. No one can shut it down
or change the terms of service; it’s completely decentralized. And the magic is math. Bitcoin was the first decentralized
currency built on blockchain technology. It was the revolutionary spark that inspired thousands
of entrepreneurs like me to think about a world without a monopoly
on the transfer of value between people. Today, there’re 15 billion dollars
stored in bitcoin, and some think it will grow
a hundredfold in the coming decade. That’s a lot of value stored in money
that’s not issued or controlled by anyone. This is the first ever people’s money
online, and it’s just the beginning. Today, there’re over 700 crypto currencies
already on the market and counting. And a new generation
of blockchain technology lets us customize money
in even more sophisticated ways. Imagine a currency
that pays its own taxes, so you don’t have to file
at the end of the year; imagine a currency that automatically
gives discounts to certain citizens at the moment of purchase, so veterans or seniors wouldn’t
have to chase down their benefits. What if Tel Aviv could issue
its own currency to people who are helping make
the city better in creative ways? And you could use that money anywhere. Few years ago, my team
and I tested this concept by creating our own local currencies. One of our most successful projects
was called Lev Market, and it let mothers here in Israel
use a currency called hearts to purchase goods and services
from each other in a trusted marketplace. Within a year, we saw over 10 million dollars
worth of commerce in this community. Moms were selling recycled toys
and offering lessons, baking beautiful handmade birthday cakes, all in hearts. These moms had a ton of potential
to share with each other, and yet, before they had hearts, few of them had any shekels
spare to cooperate. In Lev Market, they could earn hearts for positive actions
that made sense for their community like volunteering in schools. It was like a pinpoint expansion
of their money supply, and it created real abundance
for these families. Blockchain will let local currencies
like hearts flourish all over the world. We can create a much
smarter money supply, money that’s custom-made to meet
our changing and diverse needs; money that catches up
to the complexity of our modern economy and that reflects our modern values. And blockchain goes further than money. Remember how we said that its power is in allowing
a network to operate reliably without a central point of control? Think about the other services
in our lives beyond money, that are also controlled centrally. What would a social network look like
without a company in the center keeping all the profit that’s generated
from our content and comments? What would a news network look like
without a media company in the center beholden to shareholders and politicians? What would a digital cloud look like
without servers in the center but only all of our computers
strung together? These projects and so many more
are already underway on the blockchain, and they fundamentally change
how we pool and share our resources. Blockchain decentralizes control, which helps us shift society from a pyramid
with limited room at the top to a web with more access to opportunity and more consensus on what is valuable. Economic freedom is the next
great challenge of our time, and we’ll call it the value revolution. Thank you. (Applause)

88 Replies to “The Value Revolution: How Blockchain Will Change Money & the World | Galia Benartzi | TEDxWhiteCity”

  1. great video for people beginning to learn about bitcoin. I believe more of these videos should be made and more cryprocurrency channels should be funded on YouTube.

  2. What an amazing speaker. I think that for the first time I understood the excitement surrounding Blockchain and cryptocurrencies. I second the need for more video channels on YouTube, dedicated to cryptocurrencies, with emphasize on bright and clear speakers as the lady in this video – well done to the TEDxWhiteCity organizers.

  3. amazing talk! really on point and hopefully many people will think as you do in the coming years so we can advance as a society

  4. This is a great introduction for the blockchain revolution which is upon us. Just like the internet decentralized information networks, blockchain will decentralize value transfer networks (currencies), which opens the door for the decentralization of online services. Using blockchain technologies, a service can be operated by countless of independent parties which are paid using a cryptocurrency, just as Ethereum and Bitcoin operate. The potential is rally hard to comprehend.

  5. @6:58 Imagine a currency that pays it's own taxes? (fiat and you pay double through COERCION (IRS) and INFLATION (FEDS) LOL)

  6. hello my name is Lorenzo Stevens and I have been a customer of blockchain for about 2 months now I've been having problems with setting up my account when I first created my blockchain account I had over $1,000 u.s. dollars and I cannot find my wallet identifier for my address or I never received one in my email when I don't I only have a watch only account with the funds on it someone please help me because I'm very frustrated because all I can do is see my money increase in value and I can't do anything about it someone please call me 757-395-0437 thank you so much

  7. I guess the new phrase of the day is "bitcoin and the technology behind it, blockchain". "Blockchain" isn't a thing, at least not a separate thing from bitcoin (or other coins like it). Bitcoin is the innovation. Full stop. It is as if Satoshi Nakamoto invented the automobile, yet the uninformed and/or misguided go around expounding the virtues of the pneumatic tire! They are burying the lead! If bitcoin isn't your thing, then just pick one of the hundreds of other coins out there. All in all, there is no "Blockchain". There is, however "THE blockchain" as a substitute for bitcoin; people know what you mean. Transport yourself back to 1985 and give the same talk substituting the word "Blockchain" for "Internet"…. "Internet is going to change everything…Internet is revolutionary" blah blah….sounds really weird in 2017 doesn't it? That's is because "Internet" isn't a thing, it is THE Internet as a single instance of the general class of Network.

  8. Incredible talk. It's really interesting to learn more about these technologies. I'd love to see more TED talks like this.

  9. Excellent presentation. It's very hard to explain this technology and you did fantastic. Surprised you didn't mention Ethereum..

  10. "only all of our computers strung together" have you not seen Battlestar Galactica? c'mon, any network can be meddled with. I do not see how this is a realistic goal –

  11. A blockchain social media you get paid to see publicity.
    You get paid by coca cola if you profile picture have you drinking soda and get paid by how popular you are…
    Thats the future, a fight for money for consuming, i like it. Better than Facebook.


  13. Galia, you are truly a professional speaker. I guess they don't teach one how to speak professionally in Palo Alto!! Good presentation.

  14. Umm, I have a question. So Ray Kurzweil of Google and others with him are working on singularity. The desire to give life or consciousness to the smartest database on the planet. When it becomes self aware, it's already plugged in to the internet. So if we have switched the entire planets money system to the net, web, this new entity we've created now has literal control of the entire planet. Two days ago a new religion was just created and papers were filed with the IRS. They want to worship A.I. I strongly suggest everyone read revelations in the bible about how they "were given power to give life to the beast." Shortly after this "beast" commands all to worship it. While we still have time, get saved by Jesus' name. Please don't delay. "Time" is short.

  15. One of the issues I have with blockchain currencies is that people can start another and another and another.
    The others are that they are great for criminals and that it could defund governments.
    Some of you might be happy about that, but I like knowing that if I'm murdered someone will at least try to determine who did it and put them away.

  16. bitcoin is now called bitcoin cash bitcoin core has been compromized by blockstrem to make more profit and let it crash in the end. this is not the bitcoin spirit we have signed up for with satoshys white paper. cencoreship on reddid by blockstream

  17. I love the part when discussing senior citizens get their money minus the hassle of chasing it through crowded government facilities. This revolution will hurt the job market in America, unfortunately!

  18. No centralized authority? Who maintains and upgrades the blockchain algorithm / program?
     Is a blockchain only as strong as it's weakest link?
    Fascinating presentation.

    The Bitcoin network is currently experiencing record usage, resulting in longer confirmation times and higher miner’s fees for transactions. Transactions are likely to be more expensive and/or take longer to complete and additional fees go directly to miners.

  20. Hello, we are engineeirng students from Croatia and we want to start mining Ethereum, ZCash and everything available. We have a lot of knowledge about the subject, but we are short of 300$. Please help us by donating any amount of any crypto currency to one of our crypto currency wallet. Every donation counts.
    Here are wallet id's:
    BTC – 1MCrzR5QhRMggwogkkJapJfJ8rPxnpzv5D
    ETH – 0x4b138ea806bc4080adf72f6326801e8ebf03cbac
    Zcash – t1edxrSuRN6pebkcfuTTwyAcQLZEBpJKsNB
    Bitcoin Cahs – 19aQL5RMKuXsY5VzqVW8WupU83TvSekWLq
    Dash – XertqtsYQZ5PvJMHUySM2VYYtyWbPSXvcY
    Litecoin – LdS4WqdZbTVo6bkgbnBHKZFbueJ28SKKAM
    Digibyte – DR2BUGWF7QXGEKgSyA6TVtDnWzyQNbzooK

  21. Would be very good that people's money, I mean all the money one possesses is stored in people's own digital wallet. No more need to have a bank account. And in time bye bye to the banks. No more using our resources to bet on casino roulettes, no more fees. Just people using their money without no interference, no middle devils. And then, after all this, get rid of the money concept and transcend.

  22. Could someone help me out?
    What i do not understand from the talk is the following issue:
    She is saying that when you pay with current online banking the money doesn´t actually move. She highlights that it is really important that I don´t keep a copy so the money doesn´t duplicate. But when i transfer money to a peer I don´t keep a copy of it. So, how does it differ by using the Blockchain techonology or any kind of altcoin?
    Thanks in advance

  23. The banking families of Europe like Farnese, Bourbon, Rosenberg, Somaglia and Genoa are so mad right now.

  24. ive said for 50 years …END GOVERNMENts WORLD WIDE , finally i see through tears of joy the imagined future rightfully unfold

  25. It is funny because not even a year ago bitcoin was simply thought to be an alternative to for example PayPal. At this point it is a stock on steroids where people only care to make money.

  26. Most of the current coin offerings are frauds. More than 50% of those fail within a year. How would you start trusting a particular blockchain if there are hundreds? So far, the story on using blockchain using bitcoin and the other coins as a way to manage "money" is quite a shady one with many exchange failures, crazy levels of speculation resulting in many people losing their money and more that 50% of the miners located in China which bans the use of the currency but not its mining. The Chinese government actually gives free energy to those miners. If 51% of the miners are under the control of a coordinated entity they can start successfully adding fake block to the chain.
    How many bitcoins have been lost to people who lost their private keys? Imagine if losing you pin on your bank card made you lose access to your entire account? We would revolt. How about the cost of the bitcoin mining? It takes the power of an entire country to run it. Much more if we use it more.
    Economic freedom is currently not really limited by banks and the tech they use but more by the ability of people to get work, getting micro loans, and appropriate regulatory regimes. Blockchain does not solve any of those problems. Cell phone money in Africa more useful. It is accessible anywhere, and only need a very cheap sms capable phone. That simple technology has revolutionized markets in Africa and people's lives even if it is centralized. Blockchain is here to stay but in the end what is important to ask ourselves what problem we are solving and not how we solve them that really matters. Blockchain is the latest shiny hammer for which all problems look like a nail. Would I care if a bank used blockchain? No! I care about the fees and services I get from them and whether they are insured by governments in case they fail. With Blockchain, you are on your own. Blockchain is at the height of its hype, I cannot wait for it to stop being hyped so we can all focus on applying it as the interesting technology that it is to what it is really good at.

  27. Have you heard about LEDU COIN? I heard in their telegram groupchat that they will have burning of tokens this July..Will I buy?

  28. Block chain for Crypto currencies require the Internet. Whatever controls the internet, whether private companies or Governments, can control crypto currencies. Without a truly open internet, the block chain currency promise may turn into a nightmare.

  29. Time for jesus to come back and finish the you for ever.

    "And Jesus went into the temple of God, and cast out all them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves, And said unto them, It is written, My house shall be called the house of prayer; but ye have made it a den of thieves."

    — Matthew 21:12–13

  30. Very good!! I have one question. Is it "the blockchain" or "a blockchain"? im referring to 9:50 in the video. Everyone compares it to "the internet" of which there is only one. Is block chain the same? I feel like you these fundamental points required to explain it are never really touched upon .

  31. Her vision is going to be true very very soon. God will give us vision and strength to adapt this wonderful technology of decentralization of power. Below principals can help more
    One should always be
    ready to accept truth and to renounce untruth.

    All acts should be
    performed after deliberating what is right and wrong.

    The prime objective of
    new Society is to do well to the world, that is, to promote physical, spiritual
    and social good of everyone.

    Our/Every one conduct
    towards all should be guided by love, righteousness and justice.

    We should dispel ignorance)
    and promote (knowledge).

    No one should be
    content with promoting his/her good only; on the contrary, one should look for
    his/her good in promoting the good of all.

    One should regard
    oneself under restriction to follow the rules of society calculated to promote
    the well-being of all, while in following the rules of individual welfare all
    should be free.

  32. Nice idea. Very idealistic. But I think the antichrist and the one world government will somehow hijack this system for control.

  33. This talk was given before the massive censorship put in place on the Internet, by those who have ususrped it.

  34. Do you think the banksters are going to allow people to supply goods and services and accept goods and services and chalk up debits and credits for their value in a magic book that no one can tamper with? No! They want people to continue to only go their money, which they create out of nothing; that is, to trade goods and service for their money and then trade their money for goods and services.

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