How Cryptocurrency Can Bank Everyone | Anton Mozgovoy | TEDxBanbury
URL: https://www.youtube.com/watch?v=OlbCvA7U-EM Video ID: OlbCvA7U-EM ============================================================ I wanted to talk about decentralized finance to be more specific how cryptocurrencies can Bank the world well you see the answer an immediate answer to this question isn't very straightforward and you know cryptocurrencies created this new segment called decentralized finance but whether it will scale or not whether it will help not thousands but billions is yet to be seen so if that is something to happen in the future let's start by understanding how we imagine the future in the past back in late 1950s a very talented artist Arthur Rada bond to a series of futuristic sketches called closer than we think there are many available out there but I picked a few to see whether we actually that close to the future or maybe we're already there so let's take a look together a jetpack mailmen well in late 1950s we didn't know that email was coming but jetpacks do exist not a commercial level just yet but this is very real automated warehouse robots very real have you ever seen Amazon warehouses well all the logistic robots are interconnected space tourism this is very exciting I know with all of the great development we are getting there and probably we're closer than we think yep still not there well machines that understand speech this is a fiction my car still can't understand a word of I'm trying to say but jokes aside Siri and Alexa will obviously agree that this is very real but I wanted to stop on this one for a second and OneWorld job market sounds very real but is it so now our jobs available to everyone with no regards to their physical location no value seamless value transfer what about money transfer what about dispute management now if that all would be true we would all live in the era for a better finance or we're not there yet and you know how can I prove that because we all live in different worlds because if you tree becomes a reality but only for a fraction of us Financial Inclusion may sound something very far from us but in fact it does affect us more than you think well let me ask you some questions how many of you here struggled to open a bank account because you don't have a birth certificate and you can prove you legally exist how many of you have ever had to walk ten miles and more to the nearest bank branch just to receive the money well how many of you were born or do live in the country that is in war and international money institutions do not operate and do not allow you to send receive money well none of us here belong to 1.7 billion people around the world that struggle with that every single day now this is the number provided for only adults calculated by the World Bank back in November 2018 and if you ask me well 1.7 billion is it a lot it is because it's 22 percent of the entire global population every first person on the planet is financially excluded but you know what Chuck me more is that 2/3 of those people have mobile phones so access to finance just like access to Internet nowadays is just one of the basic human needs it could actually make us all richer now according to the backhauls law the value of the global GDP are is quadratically correlated to the number of economically involved people so now that we know how big the problem is and we know the effect of it how do we solve it well there's one little thing called blockchain and cryptocurrencies now a blockchain is a decentralized technology that allows you to record cryptocurrency transactions now cryptocurrency or cryptographic currency is a virtual tool used to store the information in those blocks now cryptocurrency is well it's a simply mathematical representation of the value you encode into it what it means is that you can assign it to and buy any asset they can have monetary value or they can be used as your measure of wealth block change on the other side can be used as your method or wealth but they can use they can be served a measure of storing information so with that being said cryptocurrencies they can relate to anything so it means that there's cryptocurrency pretty much for anything there's a cryptocurrency called XRP which allows for cheaper banking transactions made by Ripple there's a cryptocurrency that fuels global computing power Eve by aetherium there's a cryptocurrency that represents co2 emissions and allows organizations and governments to exchange those quotas like climate token there's a cryptocurrency that is used to exchange other currencies there's cryptocurrency that is that represents the value of digital items in video games like wax there is even a cryptocurrency that represents the US dollar like tether there are cryptocurrencies that are designed and built specifically for cheaper and more efficient voting perhaps let's take a closer look at that case because it looks very interesting now many of you probably seen that once you make a purchase of Tesco you're giving those blue chip tokens that you can then put into the jar to decide where the donation money should go to well blockchain based voting solutions are designed to bring that offline process into the digital world and make it even more transparent and more efficient now how do those things work well at first a blockchain based voting system has to authenticate a user to validate that the user is unique and authentic and once they're done a user is sellable to cast a vote now once tenza created user receives a token that represents their right to vote a user is also given the list of digital addresses that represents their candidate or an answer to a specific ballot question now the token itself does not represent who cast them so the votes remain anonymous and then as soon as the person does cast a vote now that information of that act is stored simultaneously across many and many computers makes it much harder for hackers to alter the voting system what's unique about it is that even it happens we can clearly identify when and where it happened so it makes it completely useless now once you cast the veldt you're giving a digital code the unique code that serves as a proof that you've actually cast the vote that you can go and check and confirm that the vote has been counted as intended and your vote has actually be counted towards the candidate or an answer that you've intended to now at this point you may ask me if anybody can create this cryptocurrency and it's an amazing technology that is open and available to everyone can Banbury create one well in fact yes let's think about for a second how you would even work well anybody who has a council tax bill from Banbury could automatically prove that or Banbury resident it's an own limited number so we can issue those tokens to the residents to allow them for a quick anonymous vote right from their mobile phones amazing sounds very futuristic well in fact the city of zhuge and Switzerland performed community based blockchain voting back in 2018 let's zoom out here for a second why does it even matter to me well we have to go back in five years and it's a three and a half hour flight from here to eastern part of Ukraine now there are two cities one is called meme pro the other one is called don't ask which are separated only by 160 miles and 160 miles just for a reference is just like from here to Dover not far right well back in 2014 those two cities were we're living and there still are living in two different worlds now the people in me Pro they kept using their banking cards they kept walking to their branches just just as they normally would used to whereas people in donas became completely excluded when I say completely I mean that they weren't able to purchase anything online they weren't able to repay the loans they weren't even able to take the money out of the ATM now they were completely cut out from the global economy how that could happen and so fast well the answer is very simple the sanctions now that the territory where the desk was was not under the control of Ukraine of the state International Money Institute oceans were not allowed to operate in that region neither they wanted to and that created the problem and the idea of my talk today is to talk about specific strategic problems and the ways to overcome them so let's take you know a closer look at some of them lack of infrastructure when I say that I mean a lack of ATMs branches you know physical machines that would allow us to transfer money easily now the very first ATM in Mogadishu which is the capital of Somali was only opened in 2014 and if you ask me there aren't many records of any further development about this so remember that quote from the World Bank that 2/3 of all unbanked people have mobile phones well why don't we utilize that why don't we use distributed applications that would allow us seamless money transfer right from our mobile phones identity crisis according to another research by the World Bank out of those 1.7 billion people there is a bit more than billion people in the world today that struggle proving who they are in other words they're lacking their government-issued documents what there will be a passport or a proof of birth anything what it means is that they legally do not exist for their governments what it turns out too is that they simply cannot open the bank accounts because the banks would not accept any other form of identification that they have so how do we tackle this well decentralized identities can serve as a replacement for a traditional verifiers or form of user identification what it also means is that you are more than your passport there are more ways to create the guaranteed proof of identity no fair access to remote work what blockchain allowed us to finally create a situation where two parties can safely execute work and provide value to each other with no third party to be handling the dispute now in that event the blockchain or well in other words smart contracts would initiate the logic that would help us solve the disputes so you don't have to trust your party or country party anymore B you don't even have to trust the system that you're using the logic is transparent and it's verifiable by everyone whenever we are dealing with British Pound euro or the US dollar on a daily basis we're far from experiencing well staggering money inflation problems well in fact if you look into Venezuela by International Money fund the hyperinflation in that country has reached a staggering 10 million percent only by the end of 2019 what it means is that throughout the year the local fiat currency Venezuelan Bulevar lost 99 percent of its value and cryptocurrencies are finally giving you know a people oven as well other democratic option to store their measure of wealth now this is a chart that shows the activity of one of the local popular decentralized cryptokeys that allows people to buy and sell cryptocurrencies and you can see the spike in that activity coming up the harder the local fiat currency boulevard drops and it's not only the developing or stagnating economies that are experiencing this rise and cryptocurrencies this is exactly the same crypto exchange which is just one of the many and look at this world stat so you can see that the interest is constantly rising so you may ask me how do we participate how can a person in a local town a community a country can create this value both locally and globally well I can tell you if you learn about crypto if you learn how to buy it how to sell it how to use it if you learn how to operate with it you can create that value so how do you access crypto well there's many ways to do that there's more than 300 crypto ATMs around the UK now and that number is growing there's of course peer to peer exchanges where you as a person can directly operate with another person that it's willing to exchange those cryptocurrencies and the terms and conditions of how you exchange it is strictly belong to both of you so there's no intermediary party there are also centralized crypto exchanges which are under control of one party or operator and there are decentralized exchanges which are not controlled by one single party that could be controlled either by a code so software or by the group of people our concern sir of companies of course there is OTC which is over the counter trading which comes from the stock market trading which serves for a larger volumes but my interesting point here is the wallets there are many and many out of them there some of them simply allow you to store so centers store cryptocurrencies some allow you to buy some allow you to create their physical their digital there are paperless or paper-based there are many many out of them and the point of the today's conversation is now that we know that this problem exists now that we know the size of this problem now that we know what consequences can be created if we try to find and execute the solution my question to you today is what would the world look like if every person on the planet was financially included thank you [Applause] you