How Blockchain is Changing Our Perception of Human Relations | Ayoub Fakir | TEDxMarrakesh

Transcript

[Music] the technology that is more likely to change the world in the next few decades has arrived although the technology I'm talking about is somehow new it is nothing but the continuity of what we humans were trying to achieve since a long time building trust between each other in order to exchange value now the technology I'm talking about is not big

data it's not machine learning and it's not even artificial intelligence what I am talking about today is the technology and relying the most popular cryptocurrency that has seen its value grow exponentially in the last few years Bitcoin as a matter of fact I woke up this morning and I checked the price and it was actually hitting the wall of $60,000 and it is huge well what I'm trying to do today is not to define what blockchain actually is but rather to domestic I the concept and to show how wonderful this paradigm is and how it will change the core of our human

relations let's do it this way let's talk about the concept of a bank how many of you have a great relationship with your banks raise your hand please very good all those who have actually a great relationship with their banks might change their minds the day they will have a problem with their back advisor and so well when we take this institution which is the bank in its core and why it was created at first we see that it was created to make us trust each other in other words the bank is nothing but a secure centralized better

our transactions are recorded now you might ask me why is that a problem and let me tell you a story a few months ago I wanted to buy a car and so hopefully I fortunately I had enough money so I didn't need any funding from the bank and so what I did is that I took my mobile phone and they opened the bank's application and they moved some thousand euros from my savings account into my current account in order to be able to make the payment can you imagine that few days later I had no idea where the money I moved was it showed nowhere in my transactions history and so I took my phone and I tried to call my box advisor

and well no luck in France banks don't open on Mondays and so that was a great news because I continued panicking the whole day and so I called him then the day after and I asked him was what was the problem and he told me and upset in his words don't worry sir the it might be a problem from our IT team and we are going to do our best in order to find your funds that was devastating because like I am giving you my money I will a work wake up every morning to hardly earn that money I should please my manager my project manager and so on I don't want to hit as

I just talked to have my money back and so the point here well a few days later I was able to buy my car and everything went okay but the point here is that when we only have one central entity to regulate our transactions or any other value transaction we can have we call that a single point of failure in other words if someone succeeds in some ways to hack a central entity's information system all our transactions are gone and we are all dead and we want we don't want to have that now the point of blockchain is that it will make us trust each other and it will make us make

transactions just as we do today with bangs but it is achieved through the concept of what we call a consensus in other words when I initiate a transaction in a given blockchain lots of computers get aware of that transaction being initiated and have what we call a common knowledge in other words if I send if imagine Ayub sends 100 euros to Alexa we blockchain and thanks to this consensus and you will never pretend that he sends more than 100 euros to Alexa and Alexa can never deny that she actually received

the money because why because every system every computer every person on that given blockchain in that network has seen the transaction and actually accepted it now here we encounter another problem which is actually the value let me tell you a story a friend of mine broke up with her boyfriend few weeks or months ago and the boyfriend didn't like how things ended up and so to make pressure on her he sent her some picture of her through whatsapp that well shouldn't be shared and so even though the the boyfriend sent the picture to my friend the thing

is that he only sent a copy of that picture actually not the picture itself and this is what we call the Internet of information everything we exchanged through the Internet be it pictures document what or whatever content we might have we only send copies of what we exchanged now with the blockchain we are entering a new era where we can actually exchange value and that's what we call the internet of value another thing is that blockchain solved what we call the double spending problem so that in my last example if I send 100

euros to Alexa it is very important that they don't have this amount of money anymore so I can send it to someone else double spending problem and so when we talk about stocks bonds intellectual properties assets be they music money bitcoins whatever I think that sending a copy might be a very bad idea thanks to the blockchain we can trust because as a matter of fact some people call the blockchain the trust protocol which i think is a very great definition or synonym of what blockchain

actually is so with blockchain we will be able to trust each other and also to verify that the information I am getting is actually the information which is true so always trust and verify people actually associate bit going to blockchain and think that the two terms are synonyms which is not true bitcoin is the crypto currency which is underlined by the blockchain and so bitcoin is an asset like any other any creep any other cryptocurrency has its own market they can go up and down and these are great for speculators as a matter of fact I have been presented as a cryptocurrencies investor which is not

true I'm just a speculator among many others I don't have a very yet I think it will be able to drive it so here is how it works well imagine that I want to send some value some assets to someone in a blockchain what happens is that this transaction is initiated and broadcasted and being known by hundreds of thousands of computers around the globe and then some of those computers with high computational capabilities start to work in order to solve some very complicated

and complex problem under light with cryptography and very complex algorithms and they work out to find the result and that result might be for example that this person is sending this asset to that person and this the asset that is being sent is real and the person who is sending it is the legitimate person to send it and it is very important that we make sure that the person who is sending it don't or doesn't have this asset anymore powerful is that once those miners finish their work and they find that result they compare the results

between each other and they found out that yeah we have the same algorithm result we are all ok the transaction is good and so what happens is that we take this transaction which also can be called a block in the context of a blockchain and it is added to the previous block or that given a blockchain and so I take a block I add it to a chain and that gives the name of block chain and what is wonderful here is that no one controls it by the way we all are central entities in the blockchain network we all are actors we all are here to make transactions and to validate to very day transactions between each other and the greater thing

here is that once a block enters a blockchain it is there forever no one can delete it and no one can change its content or the content of any other block and so imagine that someone wants to hack a block or charge the content of a transaction what he must do is that he should take control of that given block plus all the other previous blocks at the same time across millions of computers around the world and change the content of a blockchain which is not very feasible and that makes it much more secure than all the other acceptable entity systems that we have today because even with the most

sophisticated security algorithms and technologies every central entity or every ACTA T in a nutshell can be high act to help you understand what blockchain actually is I have found two use cases that might be simple to to present the first one is this orange now it is taken for granted that the most tasty oranges actually come from Morocco right and so what I want to do is that everywhere I go in the world I want to be sure that the oranges that are being sold are coming actually from Morocco and so what I a marketplace and the person who is selling the oranges claims

that a my oranges come from Morocco I want to trust him but I also want to verify that what he is saying is true and so with the blockchain we will be able to have the ability to check the origin of that order or any other fruit that we can imagine and trust the marketplaces and verify that they are actually saying the truth there is a lot of use case here which have been same delight with IBM and Walmart and what they are trying to do is that they are trying to go to the next level of the supply chain they want thanks to the

blockchain track all the steps from where the oranges go through until they find themselves in the marketplace and this will help them know for example that if a fruit is contagious we can see in which place in which step it has been a contaminant and I think that this is a great revolution another use case is the blockchain and the election systems we all have ID cards right every ID for each person is unique and so thanks to the blockchain we can

create a voting account associated to one ID so I can be sure that each person can vote in one election only once and so everyone someone wants to to vote for his or her candidate what he must do is to broadcast his or her decision into a public letter which is the blockchain and the vote will be account in real time and so even though the letter is public the identity of each person remains private and that means that we can know how many votes a candidate has

in real time without knowing who voted for him and so this opens the door to many solutions like the Evo fraud detection vote in like we know that corruption unfortunately lives well in many countries in the world and especially in developing countries and so since the blockchain is a transparent system we can also you can always verify and check what are the results and no one controls the results of any other of any given election a friend of mine was among those who were counting the votes in the first two election in France in

some districts in Paris and I met him right after because I was curious about how things were going and he told me this it's only that while voting he found a sheet of someone who wanted to vote for some candidate and it looked like this well they had some candidates and the person loves one given candidate which is who is an Oracle or it might be any other one rather than just checking the name of that candidate they he or she wrote this well that's respectable but with the blockchain we can be able to go through disasters like this I was reading a book

from Sir stephen r.covey the aged habit and at the end of his book he cited Peter Drucker who is one of the visionaries of our time who puts it this way in a few hundred years when history will be written from a long-term perspective what historians will see is not the Internet technology and not even ecommerce it is an unprecedented change in the human condition for the first time literally substantial and rapidly growing numbers of people have choices for the first time they will have to manage themselves and society is totally

unprepared for it well I happen to think that the blockchain is one of the most important paradigms that will help achieve Peter Drucker's prophecy and because thanks to it we are taking control of ourselves and thanks to it we are becoming interdependently independent and that makes it an idea worth spreading that was a joy as well as a privilege thank you [Applause]