let's talk bitcoin, episode 54, "towards a bitcoin future"

8/13/2019 Let's Talk Bitcoin, episode 54, "Towards a Bitcoin Future"

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LETS TALK BITCOINEpisode 54 Towards a Bitcoin Future

Participants:

Adam B. Levine (ABL) - !stStep"anie #$rp"% (S#) & C!-"!st'!rdan Ke% ('K) & CEO ! *!+!C!in Ki!s,sC"ares !s,ins!n (C) & irect!r ! Bitc!in Ed$cati!n Pr!ect'aden S"et!n ('S) & /T"e Bitc!in KidAnt"!n% i I!ri! (AI) & E0ec$tive irect!r ! Bitc!in Aiance ! CanadaAan *einer (A*) & 1!$nder and CEO ! Arm!r% 2aet

ABL:i3 and 4ec!me t! Epis!de 56 ! Lets Ta, Bitc!in3 a t4ice-4ee,% s"!4 a+!$t t"eideas3 pe!pe3 and pr!ects +$idin7 t"e di7ita ec!n!m% and t"e $t$re ! m!ne%. 8isit $s at444.etsta,+itc!in.c!m!r !$r dai% 7$est +!73 a !$r past epis!des and3 ! c!$rse3 tippin7addresses. #% name is Adam B. Levine and t!da%3 4ere ta,in7 t! t"e pe!pe in t"e trenc"es.Bitc!in AT#s "ave +een vie4ed as pr!misin7 pieces ! tec"n!!7% 4it" an $ncertainre7$at!r% $t$re. As t"e irst +i-directi!na (t"ats +$%in7 !r sein7) mac"ine !pens in itsirst !cati!n3 in 8anc!$ver3 I catc" $p 4it" '!rdan Ke%3 CEO ! *!+!C!in Ki!s,s t! ta,c!mpiance and AT#s. T"en3 C"ares !s,ins!n3 irect!r ! t"e Bitc!in Ed$cati!n Pr!ect3c"ec,s in a+!$t 4"ats c!min7 s!!n3 4"% it matters and "!4 %!$ can "ep. Later3 Bitc!inappeas t! a ,inds ! pe!pe3 !r a ,inds ! reas!ns and 4ed +e remiss t! !n% spea, t!

t"!se a+!ve t"e a7e ! 9. 'aden S"et!n is an a$t"!r and !$tsp!,en Bitc!in adv!cate and3despite 4"at %!$ ma% "ave "eard3 "es !n% in t"e 6 t"7rade. Step"anie #$rp"% intervie4s/T"e Bitc!in Kid. 2e end t!da%s s"!4 4it" a ;$esti!n. 2"at ,ind ! $t$re are 4eappr!ac"in7< Ant"!n% i I!ri! is t"e E0ec$tive irect!r ! t"e Bitc!in Aiance ! Canadaand a past 7$est !n Lets Ta, Bitc!in. es +een travein73 spea,in7 4it" eaders and!rmin7 a vie4 ! 4"at t%pes ! !r7ani=ati!ns mi7"t "ep m!ve t"e ca$se ! Bitc!in !r4ard!r ever%!ne. En!% t"e s"!4> ?9:@

ABL: S !ars3 Den3 E$r!s< N! ;$esti!n. T"e t!$7"est n$t t! crac, in Bitc!in is 7ettin7%!$r "ands !n s!me3 4"en a %!$ "ave is e7ac% $nds. '!rdan Ke% is t"e CEO !*!+!C!in Ki!s,s3 !ne ! t"e m!st am+iti!$s attempts at addressin7 t"e AT# ;$esti!n.'!rdan3 4ec!me t! Lets Ta, Bitc!in. ?9:5

JK:Adam3 t"an,s s! m$c" !r "avin7 me. ?:FF

ABL: *ecent% I "ad t"e c"ance t! $se !ne ! %!$r c!mpetit!rs mac"ines3 a Lamass$. I 4asrea% peased 4it" "!4 ast and eas% it 4as t! $se t"e device t! c!nvert a G9F +i int!... att"e time it 4as F.F ! a +itc!in +$t Lamass$ 7!es !$t ! t"eir 4a% t! "i7"i7"t t"at t"eir

pr!d$ct is a Bitc!in vendin7 mac"ine3 rat"er t"an an AT#. D!$r pr!d$ct d!esnt ma,e s$c" adistincti!n. Can %!$ e0pain "!4 t"e% are dierent< ?:

JK: Im 7ad t! "ear %!$3 act$a%3 made t"at distincti!n. Ive never "eard t"at caim %et andIm rea% peased t! "ear t"at t"ats certain t! ma,e 4aves. 2e d!nt rea% !!, at t"!se
http://www.letstalkbitcoin.com/http://www.letstalkbitcoin.com/


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7$%s as c!mpetit!rs3 necessari%. 2ere peased 4it" t"e 4!r, t"at t"e%re d!in7 and 4ererea% e0cited t! see t"at t"e%re s$pp!rtin7 t"e Bitc!in space. T"eres a e4 main dierences.1irst is t"at *!+!C!in is t"e !n% +i-directi!na AT# mac"ine. 2"at t"at means is t"at %!$can act$a% +$% and se +itc!in 4"ic" is s!met"in7 t"at 4e t"in, is rea% e0citin7 in t"at t"e*!+!C!in is !ne ! t"e main c!7s ! pr!vidin7 i;$idit% t! t"e +itc!in mar,et. T"e ne0t t"in7

t"at Im rea% e0cited a+!$t is... and rea% 4"ere I t"in, 4e dierentiate is !n t"e !verasi=e and t"e "ard4are ! t"e device. 2ere ta,in7 a+!$t - *!+!C!ins are ta3 @ 0 @3 H5F+s! stee enc!sin7 n!rt" ! G953FFF 4it" +an,-7rade "ard4are and tec"n!!7%3 startin7 r!m

+i dispensers t"at can "!d $p t! 66FF +is. I %!$re ta,in7 a+!$t S d!ars3 t"atsG66F3FFF in t"e mac"ine. As!3 cas" accepters t"at "!d !ver G9FF3FFF. 2e desi7ned anden7ineered t"is mac"ine t! +e !r rea +$sinessmen and rea entreprene$rs in ta,in7 t"eappr!ac" ! scain7 t"eir e0c"an7e +$siness t"e ri7"t 4a%. 1ina% is t"e c!mpiance 4ererea% e0cited a+!$t !$r c!mpiance tec"n!!7% t"at 4e t"in, is act$a% 4!rd-cass !$ratt!rne%s t"in, is 4!rd-cass. Basica%3 4"at 4e d! is 4e "ave a t"ree step veriicati!n

pr!cess t"at is a+s!$te% rev!$ti!nar%. It 7ives !$r !perat!rs t"e a+iit% t! $% ,n!4 t"eirc$st!mer 4"ie c!mp%in7 4it" $ anti-m!ne% a$nderin7 a4 and 7ives c$st!mers t"e m!st

seamess3 simpe3 and astest 4a% t! +$% and se Bitc!in. ?6:F6

ABL: Lets 7! t"r!$7" t"!se a itte +it. D!$ said t"at its imp!rtant !r it t! +e +i-directi!naand t"at is deinite% a dierence. T"e Lamass$ mac"ine t"at I sa43 %!$ c!$d !n% +$%Bitc!in r!m it and t"at 4as a ver% ast pr!cess +$t it 4as !ne-4a%. I I 4anted t! se Bitc!int! t"e mac"ine3 t"e% c!$dnt d! t"at. Since Ive started !!,in7 speciica% at t"e *!+!C!in3Ive +een !!,in7 at t"e (Kr!nis+$r7


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!perat!rs t"e a+iit% t! in, in t"eir e0c"an7e acc!$nts s!3 BitStamp !r #tJ!0 and 4e area+e t! e0ec$te +$%s and ses !n t"e %. ?:

ABL: Operat!rs d!nt act$a% "!d an% invent!r%< Its a $st ta,in7 pace t"ere s! 4"ens!me!ne ses3 its 7!in7 +ac, !n t"e mar,et3 as 4e< ?:@5

JK: E0act%. It rem!ves a t"e ris, r!m t"e !perat!rs 4"ic" is... ?:6F

ABL: Is t"at c!ni7$ra+e !r !perat!rs 4"! 4ant ris,< ?:6

JK: T!ta%. ?:6@

ABL: OK. C!!. T"at s!$nds i,e an interestin7 !pti!n. Ta,in7 a+!$t t"e c!mpianceeat$res3 !r a sec!nd3 %!$ said t"at %!$ "ave a t"ree part s%stem and I ,n!4 t"at t"e irsttime t"at I !!,ed at t"e c!mpiance eat$res3 I t"!$7"t t"at t"e% 4ere a +it invasive +$t asIve t"!$7"t m!re a+!$t c!mpiance and 4"at t"e re;$irements are $st t! d! +$siness e7a%

in t"e mar,et3 t"e%ve started t! ma,e m!re sense t! me. Can %!$ 7! !ver 4"at t"e *!+!C!in,i!s, !ers3 in terms ! identit% veriicati!n3 and 4"% t"ats imp!rtant< ?H:FH

JK: Dea". 1irst3 Adam3 Id i,e t! $st ;$ic,% t!$c" !ver "!4 4e came t! !$r c!nc$si!ns int"e !$rne% t"at 4e t!!, !n t"is. It "as ta,en $s a !t ! time and a !t ! t"!$7"t t! rea%i7$re !$t "!4 4e 4ant t! s!ve t"is pr!+em. In t"e c$rrent andscape3 +$%in7 and evensein7 is e0treme% diic$t. I %!$ 4ant t! d! it !n an !nine e0c"an7e3 its n!t simpe3ri7"t< D!$ "ave t! send in a pict$re ! %!$r I %!$ "ave t! send in a pict$re ! %!$r $tiit%

+i %!$ "ave t! act$a% "ave a +an, and %!$ "ave t! in, %!$r +an, acc!$nt. D!$ "ave t! d!a ! t"ese dierent steps and t"en3 ina% t"e 4irin7 pr!cess ta,es da%s. T"at pr!cess is3indeed3 t"e ar7est +arrier3 r!m !$r perspective3 ! act$a% 7!in7 and +$%in7 Bitc!in. D!$"ave a ! t"ese dierent pieces ! 4"! %!$ are %!$r identit% t"at %!$re 7ivin7 t! t"ese!perat!rs r!m %!$r +an, acc!$nt3 t! %!$r I3 t! %!$r !cati!n. 2"at 4e reai=e is t"at 4ecan d! t"is 4a% simper and 4e can d! t"is +eca$se 4e "ave t"e act$a "ard4are mac"inesand tec"n!!7% d!in7 t"is 4!r, !r $s. 1!r $s3 a !$r c$st!mers need is t"eir "and3 t"eir7!vernment-iss$ed I and t"eir ace3 i t"e% 4ant t! access t"eir Bitc!in !r i t"e% 4ant t!

+$% Bitc!in3 t"e pr!cess 7!es i,e t"is: 4a, $p t! a mac"ine3 scan in %!$r pam vein and t"epam vein3 i %!$re n!t amiiar3 is t"e sec!nd m!st acc$rate +i!metric a$t"enticati!n !n%!$r +!d%3 sec!nd !n% t! t"e iris. T"eres n! centrai=ed data+ase3 t"eres n! t"$m+ printdata+ase3 t"eres n!... its a +rand ne4 tec"n!!7% t"at 4ere eadin7 t"e c"ar7e 4it". Once%!$ve scanned %!$r pam3 %!$ create a $ni;$e I. 1r!m t"ere3 4e "ave %!$ scan %!$r

7!vernment-iss$ed I. T"is is !r edera c!mpiance. T"is is in !rder !r $s t! act$a% pa%+a in t"e nited States3 !r in an% c!$ntries t"at are a itte +it m!re scr$tini=in7. 1r!m t"ere34e act$a% ta,e t"e p"!t! !n %!$r I3 and t"en 4e "ave %!$ stand in r!nt ! t"e camera3 and4e "ave %!$ smie !r t"e camera3 and !$r acia matc"in7 tec"n!!7% matc"es t"e ace !n%!$r I 4it" t"e ace in r!nt ! t"e ,i!s,. Once a ! t"!se "ave +een c!nirmed 4it" t"etec"n!!7%3 %!$re a+e t! $se an% mac"ine3 an% *!+!C!in acr!ss t"e 7!+e. T"at pr!cess3ri7"t t"ere3 ta,es min$tes. Its n!t ta,in7 "!$rs3 its n!t ta,in7 da%s3 %!$ d!nt "ave t! 4ait 6"!$rs t! +e a+e t! access %!$r Bitc!in3 !r t! +$% !r se. It is "appenin7 in min$tes. ?:5

ABL: T"ese are net4!r,ed mac"ines t"en< I mean3 in additi!n t! +ein7 a+e t! access %!$re0c"an7e acc!$nt3 as ar as trades are c!ncerned3 t"ese are act$a% mac"ines t"at are ta,in7

t! eac" !t"er< ?:@


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JK: E0act%. ?:@H

ABL: Are %!$ +$idin7 a data+ase ! 7!vernment Is3 tied t! t"e pam vein scans< I mean3 itseems i,e %!$ "ave a ! t"e data t! d! s!. ?:6H

JK: Dea". T"e pam veins are act$a% encr%pted r!m t"e man$act$rers. T"e pam veins aren!t 7!in7 an%4"ere. 2e $nderstand 4"at t"e% are. 2e "ave t"e a+iit% t! in, t"em $ni;$e%.?:5

ABL: OK. ?:5H

JK: T"eres n! rea centrai=ed data+ase ! a ! t"ese pam veins. T"e 4a% t"at 4e 4!r,4it" !$r !perat!rs is t"at !$r !perat!rs3 t"e% s!$rce *KDC tec"n!!7%. T"e% s!$rce t"att"ree-step veriicati!n pr!cess r!m $s and 4e 4!r, 4it" !$r !perat!rs t! pr!vide t"emin!rmati!n t! ma,e in!rmed decisi!ns. 1!r e0ampe3 i a terr!rist 4a,s $p and t"atterr!rists name is !n t"e SN ist (Specia% esi7nated Names ist) & i a terr!rist 4a,s $p

t! t"e mac"ine3 scans t"eir I3 !$r s!t4are sends t"at name t"r!$7" t"e SN ist. I t"atname act$a% red a7s3 4e t"en send !$r !perat!r a red a7 and !$r !perat!r is t"en!+i7ated t! in!rm t"eir !ca a$t"!rit%3 4"ic" act$a% is rea% c!! +eca$se it 7ives $s !$r!perat!rs t"e a+iit% t! +e "er!es. ?9F:6@

ABL: T"ats rea% interestin7. 2it" a t"e mac"ines +ein7 net4!r,ed3 t"at a!4s $sers t!re7ister !n !ne and t"en 7! t! an!t"er !perat!rs $nit s!me4"ere ese in t"e 4!rd and $set"at !ne 4it"!$t "avin7 t! re7ister a7ain. Is t"ere an%t"in7 ese t"at %!$ can d! +eca$se%!$ve 7!t t"is c!ntin$!$s s%stem< ?9F:5

JK:I t"in, t"at t"ere are a !t ! t"in7s t"at 4ere 7!in7 t! +e a+e t! d! in t"e $t$re3 Adam.I t"in, ri7"t n!43 !$r !+ is t! ma,e t"e ac;$isiti!n ! Bitc!in as c!nvenient as p!ssi+e. 2eare aser-!c$sed !n 7ivin7 pe!pe t"e +est a+iit% t! access Bitc!in. ?99:95

ABL: Lets act$a% ta, a+!$t t"is !r a sec!nd. T"e reas!n 4"% t"is is a pr!cess %!$ve p$tt!7et"er as i,e a t$rn-,e% !r c!mpiance3 is +eca$se t"e 4a% t"at t"e c!mpiance re7ime is

+$it in t"e nited States3 and in man% !t"er parts ! t"e 4!rd3 is t"ere are imits !n "!4m$c" m!ne% %!$ can transer in a 7iven da%3 !r in a 7iven transacti!n3 ri7"t< 2"at %!$ needt! d! is %!$ need t! airmative% ascertain t"at t"is pers!n is 4"! t"e% are and t"en3 t"e%cant $st 7! t! an!t"er mac"ine and ma,e an!t"er ar7e transacti!n t"ats $st a itte +it

+e!4 t"ere. ?99:65

JK: T"ats e0act% ri7"t. T"ats 4"% 4e +$it t"e pam vein scan int! it. T"at 4a% 4e can$ni;$e% identi% t"ese pe!pe. ?99:59

ABL: OK. I mean3 a7ain3 t"is is i,e 4"ere I c!me +ac, t! t"e privac% t"in7 +eca$se t"is is!n t"e !ne "and t"is seems i,e its rea% invasive +$t t"en !n t"e !t"er "and... I mean3 t"ats

$st t"e c!st ! d!in7 +$siness i %!$ 4ant t! e7a% +e a+e t! se t"is s!rt ! t"in7 in t"enited States3 ri7"t n!4. ?9:F6

JK: 1r!m 4"ere 4e !!, at it3 4e see Bitc!in as s$c" a m$c" m!re p!4er$ pr!t!c! t"an$st t"e idea ! an!n%mit%. 2"ere 4e see t"e va$e is t"at its a decentrai=ed c$rrenc% t"ats

+ased in mat". T"ats t"e m!st e0citin7 act!r ! 4"at 4ere !erin7 ! 4"at Bitc!in !ers.D!$ said it ver% 4e. T"at is3 indeed3 t"e c!st ! d!in7 +$siness. I %!$ 4ant t! pa% +a in


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JK: Print it !$t3 stic, it in %!$r p!c,et3 +$t 4"at 4e as! d! !n t"e receipt3 4e sa% & e%3 +es$re t! send t"is +itc!in t! a 4aet t"at %!$ sec$re% !4n. 2"at '!"n t"!$7"t a+!$t 4it" t"at4as3 ets tr% and ma,e t"is as seamess as p!ssi+e and ets act$a% ma,e t"e pr!cess3 !rne4-c!min7 ad!pters3 ricti!ness. ?95:5

ABL: ! %!$ see an% appicati!n !r t"is as am!st a p"%sica Bitc!in t%pe !... !ne c!$d 7!t! t"is mac"ine3 7et e0act c"an7e and "and s!me+!d% t"e ied paper 4aet3 !r is t"is p$re%as a 4a% t! "ep pe!pe 4"! d!nt "ave t"e tec"n!!7% avaia+e t! t"em3 i,e a smartp"!ne

let's talk bitcoin, episode 54, "towards a bitcoin future"

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