Decentralized Intelligence: AI, Blockchain and the New Economy

Transcript

We're moving on with a keynote um around decentralized intelligence, AI, blockchain, and the new economy. And uh we'll have someone speaking to you, namely Frederick, the CEO of Cardano Foundation. Cardano has been a supporter, a member, and always with us at the Crypto Valley Conference as me and member of the Crypto Valley Association. So great partners of us. And uh yeah, without further ado, I'm calling on stage Frederick, the CEO of Cardano Foundation. Please put your hands together.

[Applause] I would like to say hi everybody, but it's kind of an empty room today, right? So I think that's probably good because you somebody's doing wheeling and dealing outside. I heard a lot of deals is happening. So that's that's extremely positive. Now, walking down memory lane, there was a dream, a dream called blockchain, a dream called Bitcoin. And when we think about it, we actually came a very long way. But how far did we actually go? So when we think about markets today, a big chunk of markets or this real superpower of Wall Street is not what the previous panel was speaking about. It's not about

an asset class. It's not about trading some tokens. It's really about directing asset and directing asset flow. The power of Wall Street is about saying you get the investment, you don't or you might not even enter my marketplace. So the real superpower after Bitcoin disseminated the whole world by being able to cut away the banks and the payment rails was really this idea that you know you can also direct capital. Now we see a couple of mega trends which is happening right now and they're happening a lot faster than we would like to do. Uh probably some of you saw there was a little bit of a debate uh between two gentlemen yesterday evening about you know rockets and other things but what's really is happening is that

the world will be dominated by AI. I think all of us is right now using AI to some kind of expense. Now exponential technology companies will drive all growth. Okay. So we're talking about unicorns. We're talking about you know hundreds of billion dollar companies you know run by 10 people. 10 people. Huh? This is a concentration of power we've not seen before. Right? Before we were talking about a company deciding the faith of the world. Now we're talking about, you know, 10 people or maybe even less, you know, controlling the masses, globalization, and then this complete lack of distrust in institutional data.

So what's that going to look like? So this slide is a, you know, a couple of weeks old, right? But when you kind of kind of have a look at it, right? Gold seems to be the largest asset class and is still growing, right? But we have then a couple of the traditional companies who's right now investing, you know, a mega amount of money into it. And we see Bitcoin just, you know, trailing up. But we also see other asset, you know, other direct assets or other cryptos are coming very, very fast in that direction. And we see new logos coming in. That means that we see target operating models are shifting in a faster way than us in blockchain could ever have dreamed of. AI is actually changing the target operating model. No, but what is the superpower of blockchain? What the actual technology,

you know, what people don't really want to speak about because it's actually too hard to understand and it's really really difficult, right? The superpower of blockchain is a trustless computing platform and blockchain as an immutable data storage. I was together with the CEO of Franklin Timberlon, Jenny, the other day and she said, you know, the one reason we as a $1.7 trillion asset manager are running on a public permission blockchain, and by the way, they're also running nodes on Kadano is because one source of truth, one source of truth in an old target operating model is incredible, right? And when we think about how you tr how you train large language models and how you rely

on AI and how many of you have not you know all of you probably went on chat GBT today to check something or verify something but the truth is you actually don't know what it what it presented to you if it was the truth but you took a micro decision or maybe even a large decision based on that. So when we look at the Kadano ecosystem what we actually see is that we see a very large diversity into infrastructure. So we see, you know, everything from AI to telco companies to music companies like N up there with the hat, right? We see a very big diversity in infrastructure. We don't see, you know, just meme coins. We don't see just NFTTS and those kind of things. We don't see bots trading

against each other. We see people coming to us because they're in need of a public infrastructure who can support business models like AI with a one source of truth but also in a model where there's no asymmetric governance. Asymmetric governance means that one person can decide the rules as we play the game. Now, the SEC went to Franklin Templeton and said, "When you choose a public missions blockchain, first of all, why are you even doing it?" And it took them years to get on one, right? But if you choose one, the only requirement we have is that you need to be able to rewrite the block and think about that for a second,

right? Think about that for a second. I mean first and foremost I would like to say it's amazing that they are on a public permission blockchain and we should applaud them for it right but that the regulator comes and says you need to be able to rewrite the block you need to be able to rewrite the truth that's not why we are in blockchain is it right and I think very few countries understand that like Switzerland understand that we understand that there's a trade-off and here we have to applaud FINMA actually and the Swiss National Bank and others because they understand that tradeoff And they are actually on our side to a large extent in terms of saying there is two camps.

There is the real public infrastructure, the real type of blockchain and then we see a trend going towards more like a I would say like a normal FMI or data structure. One of the largest blockchains in the world much larger than Kadano in terms of transactions, right? The latest suggestion, right, is oh, you know, we need fast finality. We need to be able to rewrite a block. We need to have, you know, 65,000 transactions per second. What do we do to improve it? how we we take the consensus off chain, right?

So, and I get it, right? Because you have now Fortune 500 companies lining up, right? And they're going on this blockchain and they're going and exploring this. But this is against what we believed in when Bitcoin was created. This is against the idea that everybody can participate in this infrastructure and it's against the idea that people can just rewrite the blocks and take away your assets or take away the data which you're relying on to be able to interact with 8 billion people at the same time. This is what Kadano stands for, right? Blockchain matters and blockchain matters more than ever because an AI we need to be 100% certain if it operates with an AI in another

corporate entity. So not in the same database. So we're talking about aentic AI for a second, right? It matters because I need to know 100% certain being an AI that I'm speaking to a AI who represent another database, not a man in the middle. And the only way you can do that today is put it in the same legal infrastructure in the same database or to use a full public blockchain as Kadano. This is called a digital identity. But most of you got it a little bit wrong because you think about one identity like a digital passport. We're thinking about how do you manage millions of digital identity from quantum computing and leis all the way to machine identities. The other preposition we need to have is how do I

know if I know that this is the AI I can delegate my task to and by the way I'm another AI so it's getting really confusing right we have two AI speaking to each other one have more CPU power than the other one right so we have an astronometric relationship and how I counter some of defense mechanisms with the regulator puts into it but how do I know that that AI is who it is digital identity but how do I know that it actually has the information about that person or individual I'm looking at without that actually exposing it. It's a good question, right? This is what called verified credentials. And this is one of the large problems we have with some types of technology like CK rollups and schnarks and stuff like that because we know there's a mathematical proof

that this should be correct. But how does the regulator or any kind of supervisory body then go in and verifies that that actually is the truth? If we speak about health data or if we speak about something is near and dear to your heart like if the airplane is supposed to take off from from Las Vegas or not. Right? The third thing is discovery. How do I find another AI who supposedly is that right one and has that kind of information? And what we do today and how the market is moving in agendic AI today is it's okay. It's all in Amazon Web Services, right? It's all in Facebook. You can trust us. It's the same database. And by the way, there's a there's a one person who can go in and and basically take the data out as they

want. It's called the US Cloud Act. I'm going to US tomorrow, so next week, so it's probably not so good that I say this, right? But when you think about the US cloud act, it basically says you don't even need a warrant anymore. If there's US people involved, you can go into the database and you can pull this out. This was not the promise of blockchain, right? This was not the promise that everybody, whoever you are, can participate in this. But the discovery of these AIs, this marketplace of AIS in an in a platform who cannot be taken over, where you cannot just change those rules. That becomes the other side of the new fighting line, right? That becomes the other side of complete concentration with one or two companies

with less than 10 people who do all of that stuff. Now, I don't have a lot of time as usual, right? So what I spoke about here is that self-s sovereign identities might not be what we were hoping for but a wallet who has the ability to control and manage hundreds of identities based on one person and how I interact or one company all being in in the first level quantum secure becomes more important than ever because we now have AIS agendic AIs we have me as a father me as a CEO me as a board member me as a part of a association like the Crypto Valley Association, all of that is different identities who have different criteria and how I act and interact, right? Brand security. You can

now kill a brand by basically hiring some bots on Twitter and there's no way you can stop it. The people who knows this the best is us because we we're living here like when Credit Swiss went down, right? You know, we know today that there was a lot of issues with Credit Swiss, but capital was not the big issue, right? it was that nobody trusted it anymore and the auditor PWC were not able to go in and settle down and say yeah there was enough capital right now the story is a little bit more complicated than that but in essence that's what we saw with gain stuff that's what we saw with creditsw that's we're seeing it again and again you cannot fight 50,000 bots out there and the cost of hiring them is close to zero so the truth no matter no matter the

truth doesn't matter anymore is how do you verify it Can I verify something in real time that somebody is lying? You know, can I or can I not? And that has to go on a public permission blockchain where we can turn everybody into actors instead of only a few being shareholders. Sustainability ledger on the blockchain. the ability for companies who's under attack to be ahead of the curve and put their financials on a blockchain who can turn everybody into auditors, everybody into to stakeholders is becoming more and more important. So we need to still do some homework. This is a picture of the financial markets, right? So we keep adding complexity to it. We keep adding

things to it. In reality, we should simplify, right? But it goes against also in pharma. It goes against also in the automobile. It goes again when we build rocket ships as I spoke about before, right? So what we need to do is we need to simplify, we need to use technology in a respectful manner like using a machine learning and large language model to simplify target operating models so people can truly understand what the risk is. And blockchain is one of those few places you can do that. And yes, we can do 90 million transactions a day or even per second. But every time something is hard on blockchain, what do we do?

we centralize, right? Therefore, some things take times, good things takes a little bit longer times, you know? So, that being said, we will bring a billion people on a blockchain. AI is going to be a exponential kicker for that because AI is booming like we would never see blockchain do. There's no crypto asset who be able to compete with what we see agentric AI is doing because Agentic AI has such a high gratification moment. What that basically means is if you do one thing right these two days you are here. Think about not compromising on due diligence because it leads back to centralization. Create abundance. You must learn from Bitcoin and embrace the vision of a decentralized world where

collaboration is intrinsically incentivized and trust is built through cryptography and collaboration. This is a very long sentence, huh? Um so but but think about it for a while, right? Every time you want short-term gain in our markets, you cheat, right? You put the consensus outside the the main net, right? You you know, you think about how, you know, how do I pump something? But in reality, you're talking about will there be a rockpool, right? What we should be speaking about is how do we simplify things? How do we connect things? How do we keep the human element, keep humans relevant in an age of technology? And with that, what you're probably going to see is you're going to see not just a few companies run on AI by, you know, 10 people up

there on the left side. What you're going to see is you're going to see platforms like Kadano and others who's suddenly going to explode massively up there because they're going to be the security layer in a credible decentralized world taking utility out of AI. Thank you very much. Have a great day. [Applause]