WEBVTT
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so<00:00:19.040><c> my</c><00:00:20.030><c> name</c><00:00:20.210><c> is</c><00:00:20.300><c> Dominic</c><00:00:20.630><c> Williams</c><00:00:20.960><c> and</c><00:00:21.320><c> I'm</c>

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so my name is Dominic Williams and I'm
 

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so my name is Dominic Williams and I'm
introducing<00:00:22.760><c> Phi</c><00:00:23.439><c> which</c><00:00:24.439><c> is</c><00:00:24.470><c> a</c><00:00:25.150><c> decentralized</c>

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introducing Phi which is a decentralized
 

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introducing Phi which is a decentralized
commercial<00:00:27.410><c> banking</c><00:00:27.920><c> system</c><00:00:28.369><c> that</c><00:00:29.300><c> creates</c><00:00:29.779><c> a</c>

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commercial banking system that creates a
 

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commercial banking system that creates a
stable<00:00:31.759><c> currency</c><00:00:32.150><c> as</c><00:00:33.110><c> a</c><00:00:33.170><c> side</c><00:00:33.470><c> effect</c><00:00:33.500><c> it</c>

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stable currency as a side effect it
 

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stable currency as a side effect it
gives<00:00:34.130><c> out</c><00:00:34.340><c> loans</c><00:00:35.060><c> algorithmically</c><00:00:35.750><c> and</c>

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gives out loans algorithmically and
 

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gives out loans algorithmically and
creates<00:00:36.740><c> a</c><00:00:36.770><c> stable</c><00:00:36.980><c> currency</c><00:00:37.430><c> now</c><00:00:37.760><c> let</c><00:00:38.000><c> me</c>

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creates a stable currency now let me
 

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creates a stable currency now let me
just<00:00:38.210><c> work</c><00:00:38.329><c> this</c><00:00:38.450><c> out</c><00:00:45.790><c> so</c><00:00:46.790><c> before</c><00:00:46.970><c> we</c><00:00:47.210><c> look</c><00:00:47.300><c> a</c>

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just work this out so before we look a
 

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just work this out so before we look a
fight<00:00:47.660><c> let's</c><00:00:47.810><c> just</c><00:00:48.050><c> recap</c><00:00:48.410><c> the</c><00:00:48.950><c> problems</c><00:00:49.640><c> with</c>

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fight let's just recap the problems with
 

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fight let's just recap the problems with
commercial<00:00:50.510><c> banks</c><00:00:50.540><c> quickly</c><00:00:51.140><c> so</c><00:00:51.860><c> commercial</c>

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commercial banks quickly so commercial
 

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commercial banks quickly so commercial
banks<00:00:52.940><c> have</c><00:00:53.000><c> massive</c><00:00:53.950><c> infrastructure</c><00:00:54.950><c> costs</c>

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banks have massive infrastructure costs
 

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banks have massive infrastructure costs
HR<00:00:56.600><c> and</c><00:00:56.990><c> buildings</c><00:00:57.500><c> compliance</c><00:00:58.370><c> that</c><00:00:58.550><c> kind</c><00:00:58.790><c> of</c>

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HR and buildings compliance that kind of
 

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HR and buildings compliance that kind of
thing<00:00:59.060><c> and</c><00:00:59.270><c> all</c><00:00:59.630><c> of</c><00:00:59.750><c> these</c><00:00:59.870><c> enormous</c><00:01:00.290><c> costs</c><00:01:00.740><c> in</c>

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thing and all of these enormous costs in
 

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thing and all of these enormous costs in
commercial<00:01:01.610><c> banking</c><00:01:02.050><c> end</c><00:01:03.050><c> up</c><00:01:03.440><c> on</c><00:01:03.710><c> your</c><00:01:04.009><c> loan</c>

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commercial banking end up on your loan
 

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commercial banking end up on your loan
interest<00:01:04.759><c> and</c><00:01:05.030><c> financial</c><00:01:05.570><c> charges</c><00:01:06.310><c> they're</c>

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interest and financial charges they're
 

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interest and financial charges they're
also<00:01:07.810><c> they</c><00:01:08.810><c> kind</c><00:01:09.049><c> of</c><00:01:09.080><c> made</c><00:01:09.259><c> chronically</c><00:01:09.830><c> bad</c>

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also they kind of made chronically bad
 

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also they kind of made chronically bad
judgments<00:01:11.390><c> when</c><00:01:11.509><c> they're</c><00:01:11.630><c> giving</c><00:01:11.840><c> out</c><00:01:11.930><c> loans</c>

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judgments when they're giving out loans
 

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judgments when they're giving out loans
and<00:01:12.850><c> this</c><00:01:13.850><c> is</c><00:01:14.000><c> one</c><00:01:14.150><c> of</c><00:01:14.240><c> the</c><00:01:14.329><c> things</c><00:01:14.540><c> that</c>

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and this is one of the things that
 

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and this is one of the things that
exacerbates<00:01:15.350><c> the</c><00:01:15.590><c> credit</c><00:01:15.920><c> cycle</c><00:01:16.310><c> which</c><00:01:16.640><c> is</c>

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exacerbates the credit cycle which is
 

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exacerbates the credit cycle which is
very<00:01:17.000><c> damaging</c><00:01:17.509><c> to</c><00:01:18.140><c> the</c><00:01:18.229><c> world</c><00:01:18.409><c> economy</c><00:01:18.650><c> and</c>

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very damaging to the world economy and
 

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very damaging to the world economy and
of<00:01:19.430><c> course</c><00:01:19.700><c> the</c><00:01:19.940><c> big</c><00:01:20.750><c> example</c><00:01:20.870><c> was</c><00:01:21.320><c> 2008</c><00:01:22.040><c> when</c>

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of course the big example was 2008 when
 

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of course the big example was 2008 when
we<00:01:22.970><c> had</c><00:01:23.120><c> this</c><00:01:23.270><c> massive</c><00:01:23.540><c> deleveraging</c><00:01:24.050><c> that</c>

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we had this massive deleveraging that
 

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we had this massive deleveraging that
cost<00:01:24.830><c> cost</c><00:01:25.340><c> the</c><00:01:25.460><c> world</c><00:01:25.580><c> trillions</c><00:01:26.000><c> of</c><00:01:26.120><c> dollars</c>

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cost cost the world trillions of dollars
 

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cost cost the world trillions of dollars
they<00:01:28.040><c> also</c><00:01:28.760><c> are</c><00:01:29.150><c> a</c><00:01:29.180><c> major</c><00:01:29.510><c> threat</c><00:01:29.960><c> to</c><00:01:30.170><c> civil</c>

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they also are a major threat to civil
 

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they also are a major threat to civil
liberties<00:01:31.090><c> because</c><00:01:32.090><c> as</c><00:01:32.960><c> money</c><00:01:33.409><c> becomes</c><00:01:33.830><c> more</c>

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liberties because as money becomes more
 

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liberties because as money becomes more
digitized<00:01:35.270><c> if</c><00:01:35.630><c> your</c><00:01:36.260><c> access</c><00:01:36.740><c> to</c><00:01:36.890><c> the</c><00:01:36.920><c> banking</c>

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digitized if your access to the banking
 

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digitized if your access to the banking
system<00:01:37.760><c> is</c><00:01:38.000><c> removed</c><00:01:38.360><c> you're</c><00:01:39.290><c> pretty</c><00:01:39.560><c> much</c>

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system is removed you're pretty much
 

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system is removed you're pretty much
just<00:01:40.280><c> frozen</c><00:01:40.610><c> out</c><00:01:40.820><c> of</c><00:01:40.850><c> everything</c><00:01:41.150><c> and</c>

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just frozen out of everything and
 

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just frozen out of everything and
actually<00:01:41.870><c> many</c><00:01:42.320><c> people</c><00:01:42.409><c> in</c><00:01:42.800><c> crypts</c><00:01:43.130><c> have</c>

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actually many people in crypts have
 

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actually many people in crypts have
already<00:01:43.640><c> experienced</c><00:01:44.090><c> what</c><00:01:44.240><c> it's</c><00:01:44.390><c> like</c><00:01:44.510><c> to</c>

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already experienced what it's like to
 

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already experienced what it's like to
have<00:01:44.810><c> bank</c><00:01:45.080><c> accounts</c><00:01:45.370><c> shut</c><00:01:46.370><c> down</c><00:01:46.659><c> because</c>

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have bank accounts shut down because
 

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have bank accounts shut down because
you've<00:01:49.060><c> been</c><00:01:50.060><c> taking</c><00:01:50.960><c> a</c><00:01:50.990><c> transfer</c><00:01:51.380><c> for</c><00:01:51.500><c> an</c>

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you've been taking a transfer for an
 

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you've been taking a transfer for an
exchange<00:01:51.740><c> or</c><00:01:52.100><c> something</c><00:01:52.370><c> like</c><00:01:52.460><c> that</c><00:01:52.870><c> so</c>

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exchange or something like that so
 

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exchange or something like that so
stable<00:01:54.740><c> coins</c><00:01:55.070><c> let's</c><00:01:55.280><c> just</c><00:01:55.400><c> recap</c><00:01:55.670><c> that</c>

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stable coins let's just recap that
 

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stable coins let's just recap that
quickly<00:01:56.090><c> there</c><00:01:56.930><c> are</c><00:01:57.020><c> two</c><00:01:57.229><c> main</c><00:01:57.710><c> approaches</c><00:01:58.220><c> to</c>

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quickly there are two main approaches to
 

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quickly there are two main approaches to
stable<00:01:58.700><c> coins</c><00:01:59.380><c> currently</c><00:02:00.380><c> around</c><00:02:01.340><c> at</c><00:02:01.670><c> the</c>

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stable coins currently around at the
 

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stable coins currently around at the
moment<00:02:02.090><c> the</c><00:02:02.600><c> first</c><00:02:02.840><c> is</c><00:02:03.460><c> something</c><00:02:04.460><c> a</c><00:02:04.580><c> bit</c><00:02:04.700><c> like</c>

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moment the first is something a bit like
 

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moment the first is something a bit like
make<00:02:05.030><c> a</c><00:02:05.060><c> diet</c><00:02:05.390><c> where</c><00:02:05.780><c> you</c><00:02:06.020><c> have</c><00:02:06.790><c> collateral</c><00:02:07.790><c> on</c>

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make a diet where you have collateral on
 

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make a diet where you have collateral on
chain<00:02:08.500><c> market-makers</c><00:02:09.500><c> margin</c><00:02:09.860><c> calls</c><00:02:10.069><c> that</c>

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chain market-makers margin calls that
 

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chain market-makers margin calls that
kind<00:02:10.459><c> of</c><00:02:10.519><c> thing</c>

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kind of thing
 

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kind of thing
problem<00:02:11.510><c> with</c><00:02:11.569><c> these</c><00:02:11.689><c> kind</c><00:02:11.900><c> of</c><00:02:11.959><c> approaches</c><00:02:12.439><c> is</c>

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problem with these kind of approaches is
 

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problem with these kind of approaches is
that<00:02:12.709><c> they're</c><00:02:13.840><c> inherently</c><00:02:14.840><c> unstable</c><00:02:15.170><c> you</c>

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that they're inherently unstable you
 

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that they're inherently unstable you
create<00:02:15.950><c> a</c><00:02:15.980><c> kind</c><00:02:16.220><c> of</c><00:02:16.370><c> Rube</c><00:02:17.150><c> Goldberg</c><00:02:17.540><c> device</c>

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create a kind of Rube Goldberg device
 

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create a kind of Rube Goldberg device
okay<00:02:19.099><c> and</c><00:02:19.610><c> when</c><00:02:19.939><c> you</c><00:02:19.970><c> put</c><00:02:20.239><c> it</c><00:02:20.299><c> under</c><00:02:20.510><c> stress</c>

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okay and when you put it under stress
 

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okay and when you put it under stress
it'll<00:02:21.409><c> turn</c><00:02:21.560><c> it'll</c><00:02:21.980><c> tend</c><00:02:22.280><c> to</c><00:02:22.400><c> fail</c><00:02:22.640><c> the</c><00:02:23.569><c> other</c>

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it'll turn it'll tend to fail the other
 

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it'll turn it'll tend to fail the other
approach<00:02:24.140><c> is</c><00:02:24.470><c> to</c><00:02:25.420><c> use</c><00:02:26.500><c> tokens</c><00:02:27.500><c> as</c>

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approach is to use tokens as
 

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approach is to use tokens as
bearish<00:02:28.270><c> as</c><00:02:28.510><c> colored</c><00:02:29.080><c> coin</c><00:02:29.350><c> bearish</c><00:02:29.800><c> as</c><00:02:30.060><c> with</c>

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bearish as colored coin bearish as with
 

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bearish as colored coin bearish as with
collateral<00:02:32.020><c> actually</c><00:02:32.560><c> held</c><00:02:32.800><c> in</c><00:02:33.160><c> a</c><00:02:33.700><c> bank</c><00:02:33.970><c> or</c>

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collateral actually held in a bank or
 

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collateral actually held in a bank or
other<00:02:34.270><c> financial</c><00:02:34.630><c> institution</c><00:02:35.410><c> now</c><00:02:36.220><c> that</c>

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other financial institution now that
 

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other financial institution now that
does<00:02:36.820><c> succeed</c><00:02:37.300><c> in</c><00:02:37.480><c> producing</c><00:02:37.630><c> a</c><00:02:38.020><c> kind</c><00:02:38.140><c> of</c>

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does succeed in producing a kind of
 

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does succeed in producing a kind of
stable<00:02:38.680><c> robust</c><00:02:39.070><c> system</c><00:02:39.550><c> but</c><00:02:40.330><c> of</c><00:02:40.450><c> course</c><00:02:40.630><c> the</c>

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stable robust system but of course the
 

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stable robust system but of course the
problem<00:02:40.960><c> is</c><00:02:41.200><c> the</c><00:02:41.440><c> banks</c><00:02:41.770><c> will</c><00:02:41.950><c> want</c><00:02:42.160><c> to</c>

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problem is the banks will want to
 

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problem is the banks will want to
dictate<00:02:42.990><c> policy</c><00:02:43.990><c> in</c><00:02:44.290><c> relation</c><00:02:44.680><c> to</c><00:02:44.980><c> how</c><00:02:45.670><c> these</c>

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dictate policy in relation to how these
 

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dictate policy in relation to how these
coins<00:02:46.930><c> are</c><00:02:47.080><c> used</c><00:02:47.940><c> people</c><00:02:48.940><c> in</c><00:02:49.030><c> contracts</c><00:02:49.510><c> will</c>

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coins are used people in contracts will
 

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coins are used people in contracts will
have<00:02:49.810><c> to</c><00:02:49.930><c> be</c><00:02:50.020><c> authorized</c><00:02:50.530><c> and</c><00:02:50.860><c> of</c><00:02:51.340><c> course</c><00:02:51.580><c> you</c>

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have to be authorized and of course you
 

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have to be authorized and of course you
add<00:02:52.090><c> in</c><00:02:52.360><c> the</c><00:02:52.600><c> geography</c><00:02:53.230><c> of</c><00:02:53.260><c> the</c><00:02:53.350><c> bank</c><00:02:53.650><c> and</c><00:02:54.070><c> the</c>

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add in the geography of the bank and the
 

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add in the geography of the bank and the
jurisdiction<00:02:54.850><c> of</c><00:02:54.910><c> the</c><00:02:54.970><c> bank</c><00:02:55.210><c> into</c><00:02:55.540><c> what</c><00:02:55.690><c> would</c>

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jurisdiction of the bank into what would
 

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jurisdiction of the bank into what would
otherwise<00:02:56.020><c> be</c><00:02:56.320><c> a</c><00:02:56.350><c> very</c><00:02:56.440><c> much</c><00:02:57.160><c> extra</c><00:02:57.610><c> national</c>

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otherwise be a very much extra national
 

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otherwise be a very much extra national
system<00:02:58.560><c> so</c><00:02:59.560><c> quickly</c><00:02:59.980><c> and</c><00:03:00.340><c> fiat</c><00:03:00.640><c> money</c><00:03:00.700><c> fiat</c>

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system so quickly and fiat money fiat
 

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system so quickly and fiat money fiat
money<00:03:01.720><c> is</c><00:03:01.960><c> what</c><00:03:02.290><c> we</c><00:03:02.410><c> use</c><00:03:02.560><c> every</c><00:03:02.800><c> day</c><00:03:02.920><c> it's</c>

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money is what we use every day it's
 

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money is what we use every day it's
dollars<00:03:03.460><c> euros</c><00:03:03.760><c> RMB</c><00:03:04.740><c> and</c><00:03:07.080><c> not</c><00:03:08.080><c> many</c><00:03:08.200><c> people</c>

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dollars euros RMB and not many people
 

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dollars euros RMB and not many people
are<00:03:08.470><c> aware</c><00:03:08.530><c> of</c><00:03:08.800><c> where</c><00:03:09.160><c> it</c><00:03:09.250><c> comes</c><00:03:09.430><c> from</c><00:03:09.610><c> but</c>

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are aware of where it comes from but
 

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are aware of where it comes from but
it's<00:03:10.060><c> actually</c><00:03:10.390><c> created</c><00:03:10.900><c> by</c><00:03:10.930><c> commercial</c>

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it's actually created by commercial
 

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it's actually created by commercial
banks<00:03:12.160><c> when</c><00:03:12.340><c> they</c><00:03:12.370><c> give</c><00:03:12.580><c> out</c><00:03:12.700><c> loans</c><00:03:12.910><c> so</c><00:03:13.750><c> the</c>

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banks when they give out loans so the
 

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banks when they give out loans so the
way<00:03:13.960><c> this</c><00:03:14.110><c> works</c><00:03:14.320><c> is</c><00:03:14.650><c> that</c><00:03:14.680><c> you</c><00:03:15.010><c> go</c><00:03:15.220><c> into</c><00:03:15.580><c> a</c>

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way this works is that you go into a
 

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way this works is that you go into a
bank<00:03:16.780><c> and</c><00:03:17.020><c> said</c><00:03:17.170><c> I</c><00:03:17.200><c> want</c><00:03:17.410><c> to</c><00:03:17.440><c> borrow</c><00:03:17.620><c> $10,000</c>

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bank and said I want to borrow $10,000
 

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bank and said I want to borrow $10,000
and<00:03:18.670><c> if</c><00:03:19.000><c> they</c><00:03:19.150><c> approve</c><00:03:19.450><c> the</c><00:03:19.630><c> loan</c><00:03:19.810><c> all</c><00:03:20.170><c> they</c><00:03:20.350><c> do</c>

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and if they approve the loan all they do
 

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and if they approve the loan all they do
is<00:03:20.770><c> flip</c><00:03:21.100><c> some</c><00:03:21.340><c> bits</c><00:03:21.610><c> in</c><00:03:21.880><c> a</c><00:03:22.840><c> database</c><00:03:23.320><c> to</c>

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is flip some bits in a database to
 

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is flip some bits in a database to
create<00:03:24.220><c> the</c><00:03:24.430><c> $10,000</c><00:03:25.270><c> from</c><00:03:25.600><c> Finnair</c><00:03:25.990><c> you</c><00:03:26.560><c> get</c>

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create the $10,000 from Finnair you get
 

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create the $10,000 from Finnair you get
it<00:03:27.060><c> on</c><00:03:28.060><c> the</c><00:03:28.360><c> bank's</c><00:03:28.660><c> balance</c><00:03:28.870><c> sheet</c><00:03:29.290><c> the</c><00:03:29.740><c> loan</c>

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it on the bank's balance sheet the loan
 

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it on the bank's balance sheet the loan
is<00:03:30.820><c> an</c><00:03:30.910><c> asset</c><00:03:31.270><c> and</c><00:03:31.390><c> the</c><00:03:31.660><c> money</c><00:03:31.840><c> they</c><00:03:32.020><c> created</c>

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is an asset and the money they created
 

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is an asset and the money they created
is<00:03:32.590><c> a</c><00:03:32.620><c> liability</c><00:03:35.280><c> so</c><00:03:36.280><c> what</c><00:03:36.430><c> does</c><00:03:36.550><c> fiat</c><00:03:36.820><c> money</c>

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is a liability so what does fiat money
 

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is a liability so what does fiat money
fiat<00:03:37.390><c> money</c><00:03:37.480><c> everyday</c><00:03:38.170><c> money</c><00:03:38.530><c> is</c><00:03:38.800><c> really</c><00:03:39.130><c> an</c>

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fiat money everyday money is really an
 

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fiat money everyday money is really an
IOU<00:03:39.840><c> it's</c><00:03:40.840><c> backed</c><00:03:41.260><c> by</c><00:03:41.500><c> the</c><00:03:41.710><c> collateral</c><00:03:42.370><c> of</c>

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IOU it's backed by the collateral of
 

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IOU it's backed by the collateral of
loans<00:03:42.670><c> that</c><00:03:42.940><c> means</c><00:03:43.390><c> that</c><00:03:43.690><c> every</c><00:03:44.020><c> day</c><00:03:44.170><c> money</c><00:03:44.410><c> is</c>

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loans that means that every day money is
 

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loans that means that every day money is
backed<00:03:44.920><c> by</c><00:03:45.070><c> you</c><00:03:45.940><c> know</c><00:03:46.090><c> cars</c><00:03:46.450><c> houses</c><00:03:46.990><c> business</c>

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backed by you know cars houses business
 

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backed by you know cars houses business
cash<00:03:48.010><c> flows</c><00:03:48.310><c> personal</c><00:03:48.910><c> guarantees</c><00:03:49.300><c> that</c><00:03:49.600><c> kind</c>

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cash flows personal guarantees that kind
 

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cash flows personal guarantees that kind
of<00:03:49.870><c> thing</c><00:03:50.080><c> so</c><00:03:51.690><c> the</c><00:03:52.690><c> a</c><00:03:52.720><c> ha</c><00:03:52.990><c> moment</c><00:03:53.020><c> is</c><00:03:53.620><c> okay</c><00:03:54.010><c> well</c>

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of thing so the a ha moment is okay well
 

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of thing so the a ha moment is okay well
why<00:03:54.850><c> don't</c><00:03:54.910><c> we</c><00:03:55.150><c> make</c><00:03:55.450><c> the</c><00:03:55.660><c> world</c><00:03:55.900><c> computer</c>

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why don't we make the world computer
 

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why don't we make the world computer
give<00:03:57.460><c> out</c><00:03:57.580><c> loans</c><00:03:57.850><c> algorithmically</c><00:03:58.810><c> and</c>

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give out loans algorithmically and
 

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give out loans algorithmically and
create<00:04:00.280><c> a</c><00:04:00.310><c> stable</c><00:04:00.670><c> currency</c><00:04:01.800><c> backed</c><00:04:02.800><c> by</c><00:04:02.920><c> loan</c>

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create a stable currency backed by loan
 

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create a stable currency backed by loan
collateral<00:04:03.430><c> right</c><00:04:04.300><c> we'll</c><00:04:04.960><c> kill</c><00:04:05.230><c> two</c><00:04:05.800><c> birds</c>

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collateral right we'll kill two birds
 

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collateral right we'll kill two birds
with<00:04:06.190><c> one</c><00:04:06.670><c> stone</c>

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with one stone
 

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with one stone
we<00:04:07.150><c> won't</c><00:04:07.360><c> need</c><00:04:07.510><c> these</c><00:04:07.690><c> expensive</c><00:04:08.380><c> commercial</c>

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we won't need these expensive commercial
 

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we won't need these expensive commercial
banks<00:04:09.340><c> anymore</c><00:04:09.730><c> so</c><00:04:09.940><c> I'll</c><00:04:10.060><c> save</c><00:04:10.300><c> the</c><00:04:10.450><c> world</c><00:04:10.600><c> a</c>

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banks anymore so I'll save the world a
 

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banks anymore so I'll save the world a
lot<00:04:10.780><c> of</c><00:04:10.930><c> money</c><00:04:11.080><c> and</c><00:04:11.940><c> we'll</c><00:04:12.940><c> also</c><00:04:13.120><c> get</c><00:04:13.510><c> this</c>

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lot of money and we'll also get this
 

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lot of money and we'll also get this
wonderful<00:04:14.770><c> stable</c><00:04:15.370><c> currency</c><00:04:15.760><c> that</c><00:04:16.000><c> won't</c>

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wonderful stable currency that won't
 

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wonderful stable currency that won't
depends<00:04:17.350><c> on</c><00:04:17.440><c> intermediaries</c><00:04:17.890><c> so</c><00:04:18.760><c> fie</c><00:04:19.090><c> money</c>

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depends on intermediaries so fie money
 

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depends on intermediaries so fie money
is<00:04:19.540><c> is</c><00:04:19.750><c> exactly</c><00:04:20.200><c> the</c><00:04:20.320><c> same</c><00:04:20.500><c> as</c><00:04:20.590><c> fiat</c><00:04:20.859><c> money</c>

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is is exactly the same as fiat money
 

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is is exactly the same as fiat money
it's<00:04:21.220><c> backed</c><00:04:21.549><c> by</c><00:04:22.620><c> loan</c><00:04:23.620><c> collateral</c><00:04:24.030><c> how</c><00:04:25.030><c> might</c>

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it's backed by loan collateral how might
 

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it's backed by loan collateral how might
this<00:04:25.360><c> work</c><00:04:25.600><c> well</c><00:04:25.900><c> first</c><00:04:26.140><c> of</c><00:04:26.290><c> all</c><00:04:26.640><c> it</c><00:04:27.640><c> involves</c>

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this work well first of all it involves
 

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this work well first of all it involves
a<00:04:28.630><c> network</c><00:04:28.930><c> of</c><00:04:29.050><c> validators</c><00:04:29.680><c> this</c><00:04:30.310><c> is</c><00:04:30.430><c> a</c><00:04:30.460><c> bit</c>

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a network of validators this is a bit
 

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a network of validators this is a bit
like<00:04:30.760><c> a</c><00:04:30.790><c> proof</c><00:04:31.030><c> of</c><00:04:31.150><c> State</c><00:04:31.420><c> Network</c><00:04:31.870><c> where</c><00:04:32.460><c> the</c>

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like a proof of State Network where the
 

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like a proof of State Network where the
validators<00:04:34.000><c> are</c><00:04:34.120><c> really</c><00:04:34.300><c> kind</c><00:04:34.510><c> of</c><00:04:34.680><c> lone</c>

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validators are really kind of lone
 

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validators are really kind of lone
miners<00:04:36.310><c> if</c><00:04:36.580><c> you</c><00:04:36.700><c> will</c><00:04:36.880><c> anyone</c><00:04:37.660><c> can</c><00:04:37.810><c> become</c><00:04:37.900><c> a</c>

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miners if you will anyone can become a
 

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miners if you will anyone can become a
validator<00:04:38.470><c> and</c><00:04:38.590><c> this</c><00:04:38.860><c> and</c><00:04:39.220><c> you</c><00:04:39.280><c> do</c><00:04:39.430><c> it</c><00:04:39.550><c> by</c>

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validator and this and you do it by
 

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validator and this and you do it by
making<00:04:39.850><c> a</c><00:04:40.000><c> security</c><00:04:40.450><c> deposit</c><00:04:40.570><c> to</c><00:04:40.900><c> the</c>

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making a security deposit to the
 

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making a security deposit to the
computer

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computer
 

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computer
in<00:04:41.740><c> this</c><00:04:42.100><c> case</c><00:04:42.370><c> the</c><00:04:42.670><c> validators</c><00:04:43.180><c> deposited</c>

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in this case the validators deposited
 

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in this case the validators deposited
$50,000<00:04:45.490><c> and</c><00:04:45.760><c> he</c><00:04:46.690><c> can</c><00:04:46.980><c> validate</c><00:04:47.980><c> loans</c><00:04:48.310><c> up</c><00:04:48.670><c> to</c>

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$50,000 and he can validate loans up to
 

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$50,000 and he can validate loans up to
$5,000<00:04:49.690><c> in</c><00:04:49.780><c> size</c><00:04:50.020><c> and</c><00:04:50.380><c> the</c><00:04:51.130><c> total</c><00:04:51.910><c> aggregate</c>

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$5,000 in size and the total aggregate
 

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$5,000 in size and the total aggregate
amount<00:04:52.660><c> of</c><00:04:52.840><c> those</c><00:04:53.020><c> loans</c><00:04:53.320><c> can</c><00:04:54.250><c> be</c><00:04:54.520><c> up</c><00:04:54.700><c> to</c><00:04:54.850><c> half</c>

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amount of those loans can be up to half
 

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amount of those loans can be up to half
a<00:04:55.240><c> million</c><00:04:55.390><c> dollars</c><00:04:57.060><c> so</c><00:04:58.060><c> how</c><00:04:58.210><c> does</c><00:04:58.270><c> a</c><00:04:58.540><c> computer</c>

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a million dollars so how does a computer
 

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a million dollars so how does a computer
issue<00:04:59.140><c> loans</c><00:04:59.380><c> well</c><00:04:59.860><c> first</c><00:05:00.550><c> of</c><00:05:00.700><c> all</c><00:05:00.820><c> the</c><00:05:01.540><c> person</c>

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issue loans well first of all the person
 

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issue loans well first of all the person
who<00:05:02.590><c> wants</c><00:05:02.830><c> the</c><00:05:02.860><c> loan</c><00:05:03.040><c> approaches</c><00:05:03.580><c> a</c>

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who wants the loan approaches a
 

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who wants the loan approaches a
validator<00:05:04.090><c> and</c><00:05:04.420><c> says</c><00:05:05.260><c> hey</c><00:05:05.440><c> I</c><00:05:05.470><c> want</c><00:05:05.680><c> to</c><00:05:05.710><c> know</c><00:05:05.860><c> if</c>

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validator and says hey I want to know if
 

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validator and says hey I want to know if
that<00:05:06.610><c> validator</c><00:05:07.120><c> agrees</c><00:05:07.870><c> they</c><00:05:08.470><c> become</c><00:05:08.770><c> the</c>

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that validator agrees they become the
 

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that validator agrees they become the
proposer<00:05:09.190><c> they</c><00:05:11.640><c> create</c><00:05:12.640><c> a</c><00:05:12.670><c> loan</c><00:05:13.030><c> application</c>

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proposer they create a loan application
 

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proposer they create a loan application
package<00:05:14.050><c> using</c><00:05:14.200><c> open</c><00:05:14.500><c> source</c><00:05:14.710><c> software</c><00:05:15.060><c> and</c>

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package using open source software and
 

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package using open source software and
they<00:05:16.330><c> commit</c><00:05:16.630><c> to</c><00:05:16.780><c> it</c><00:05:17.340><c> with</c><00:05:18.340><c> a</c><00:05:18.370><c> hash</c><00:05:18.580><c> and</c><00:05:18.790><c> they</c>

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they commit to it with a hash and they
 

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they commit to it with a hash and they
tell<00:05:19.120><c> the</c><00:05:19.330><c> computer</c><00:05:20.080><c> hey</c><00:05:20.260><c> I</c><00:05:20.500><c> want</c><00:05:20.920><c> to</c><00:05:20.980><c> propose</c>

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tell the computer hey I want to propose
 

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tell the computer hey I want to propose
a<00:05:21.580><c> loan</c><00:05:22.180><c> the</c><00:05:23.140><c> computer</c><00:05:23.530><c> then</c><00:05:23.680><c> randomly</c><00:05:24.490><c> at</c>

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a loan the computer then randomly at
 

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a loan the computer then randomly at
this<00:05:25.240><c> point</c><00:05:25.540><c> randomly</c><00:05:26.170><c> selects</c><00:05:26.680><c> another</c>

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this point randomly selects another
 

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this point randomly selects another
validator<00:05:27.580><c> and</c><00:05:28.170><c> says</c><00:05:29.170><c> look</c><00:05:29.530><c> can</c><00:05:29.800><c> you</c><00:05:29.890><c> encrypt</c>

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validator and says look can you encrypt
 

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validator and says look can you encrypt
that<00:05:30.280><c> loan</c><00:05:30.520><c> package</c><00:05:30.880><c> to</c><00:05:31.000><c> the</c><00:05:31.090><c> public</c><00:05:31.390><c> key</c><00:05:31.540><c> of</c>

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that loan package to the public key of
 

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that loan package to the public key of
the<00:05:31.720><c> next</c><00:05:32.020><c> validator</c><00:05:32.710><c> right</c><00:05:33.300><c> that</c><00:05:34.300><c> next</c>

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the next validator right that next
 

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the next validator right that next
validator<00:05:35.110><c> then</c><00:05:35.650><c> becomes</c><00:05:36.040><c> a</c><00:05:36.400><c> checker</c><00:05:37.000><c> they</c>

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validator then becomes a checker they
 

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validator then becomes a checker they
look<00:05:37.810><c> at</c><00:05:37.900><c> the</c><00:05:37.960><c> loan</c><00:05:38.080><c> proposal</c><00:05:38.620><c> and</c><00:05:38.800><c> and</c><00:05:39.760><c> so</c><00:05:40.330><c> on</c>

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look at the loan proposal and and so on
 

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look at the loan proposal and and so on
in<00:05:41.169><c> a</c><00:05:41.290><c> chain</c><00:05:41.590><c> which</c><00:05:42.250><c> is</c><00:05:42.280><c> decided</c>

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in a chain which is decided
 

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in a chain which is decided
algorithmically<00:05:43.930><c> until</c><00:05:44.260><c> looking</c><00:05:44.500><c> the</c>

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algorithmically until looking the
 

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algorithmically until looking the
computer<00:05:45.160><c> decides</c><00:05:45.520><c> that</c><00:05:45.790><c> the</c><00:05:46.090><c> the</c><00:05:46.330><c> loan</c>

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computer decides that the the loan
 

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computer decides that the the loan
application<00:05:47.169><c> has</c><00:05:47.650><c> been</c><00:05:47.680><c> validated</c><00:05:48.900><c> once</c><00:05:49.900><c> the</c>

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application has been validated once the
 

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application has been validated once the
loan<00:05:50.230><c> application</c><00:05:50.380><c> has</c><00:05:50.830><c> been</c><00:05:50.860><c> validated</c><00:05:51.540><c> the</c>

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loan application has been validated the
 

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loan application has been validated the
computer<00:05:53.200><c> creates</c><00:05:53.500><c> the</c><00:05:53.890><c> Phi</c><00:05:54.130><c> from</c><00:05:55.030><c> thin</c><00:05:55.240><c> air</c>

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computer creates the Phi from thin air
 

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computer creates the Phi from thin air
and<00:05:55.600><c> gives</c><00:05:56.230><c> it</c><00:05:56.320><c> to</c><00:05:56.350><c> the</c><00:05:56.530><c> borrower</c><00:05:56.770><c> and</c><00:05:57.310><c> bear</c>

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and gives it to the borrower and bear
 

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and gives it to the borrower and bear
with<00:05:58.330><c> me</c><00:05:58.450><c> for</c><00:05:58.570><c> a</c><00:05:58.660><c> moment</c><00:05:58.870><c> and</c><00:05:58.930><c> you'll</c><00:05:59.050><c> see</c><00:05:59.229><c> why</c>

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with me for a moment and you'll see why
 

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with me for a moment and you'll see why
the<00:05:59.530><c> fibers</c><00:06:00.370><c> created</c><00:06:00.700><c> out</c><00:06:00.790><c> of</c><00:06:00.820><c> thin</c><00:06:01.060><c> air</c>

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the fibers created out of thin air
 

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the fibers created out of thin air
actually<00:06:01.540><c> has</c><00:06:01.660><c> valley</c><00:06:03.900><c> so</c><00:06:04.900><c> this</c><00:06:05.080><c> this</c><00:06:05.260><c> chain</c>

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actually has valley so this this chain
 

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actually has valley so this this chain
of<00:06:06.330><c> validators</c><00:06:07.330><c> the</c><00:06:07.450><c> thing</c><00:06:07.600><c> to</c><00:06:07.690><c> remember</c><00:06:07.750><c> is</c>

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of validators the thing to remember is
 

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of validators the thing to remember is
that<00:06:08.380><c> it's</c><00:06:08.740><c> randomly</c><00:06:09.870><c> selected</c><00:06:10.870><c> in</c><00:06:10.960><c> sequence</c>

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that it's randomly selected in sequence
 

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that it's randomly selected in sequence
and<00:06:11.680><c> and</c><00:06:11.890><c> it'll</c><00:06:12.550><c> depend</c><00:06:12.700><c> upon</c><00:06:13.150><c> the</c><00:06:13.360><c> size</c><00:06:13.570><c> of</c>

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and and it'll depend upon the size of
 

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and and it'll depend upon the size of
the<00:06:13.750><c> deposits</c><00:06:14.169><c> of</c><00:06:14.229><c> the</c><00:06:14.320><c> validators</c><00:06:14.860><c> and</c><00:06:14.979><c> their</c>

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the deposits of the validators and their
 

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the deposits of the validators and their
reputation<00:06:15.280><c> and</c><00:06:15.700><c> things</c><00:06:15.850><c> like</c><00:06:15.970><c> that</c>

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reputation and things like that
 

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reputation and things like that
why<00:06:17.979><c> do</c><00:06:18.040><c> the</c><00:06:18.220><c> validators</c><00:06:18.700><c> do</c><00:06:18.850><c> this</c><00:06:19.030><c> well</c><00:06:19.500><c> when</c>

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why do the validators do this well when
 

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why do the validators do this well when
people<00:06:20.530><c> repay</c><00:06:21.160><c> their</c><00:06:21.340><c> loans</c><00:06:21.550><c> it</c><00:06:21.760><c> generates</c>

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people repay their loans it generates
 

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people repay their loans it generates
interest<00:06:22.330><c> and</c><00:06:22.690><c> the</c><00:06:22.990><c> computer</c><00:06:23.470><c> gives</c><00:06:23.800><c> a</c><00:06:23.919><c> share</c>

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interest and the computer gives a share
 

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interest and the computer gives a share
of<00:06:24.190><c> that</c><00:06:24.310><c> interest</c><00:06:24.669><c> to</c><00:06:24.850><c> the</c><00:06:24.940><c> validators</c><00:06:25.450><c> right</c>

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of that interest to the validators right
 

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of that interest to the validators right
so<00:06:25.900><c> we</c><00:06:26.440><c> might</c><00:06:26.680><c> imagine</c><00:06:26.890><c> that</c><00:06:27.130><c> in</c><00:06:27.400><c> this</c><00:06:27.550><c> example</c>

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so we might imagine that in this example
 

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so we might imagine that in this example
the<00:06:29.200><c> proposer</c><00:06:29.530><c> gets</c><00:06:29.800><c> sixty</c><00:06:30.130><c> percent</c><00:06:30.280><c> of</c><00:06:30.430><c> that</c>

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the proposer gets sixty percent of that
 

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the proposer gets sixty percent of that
interest<00:06:30.760><c> because</c><00:06:31.090><c> you'd</c><00:06:31.210><c> put</c><00:06:31.390><c> in</c><00:06:31.479><c> the</c><00:06:31.570><c> work</c>

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interest because you'd put in the work
 

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interest because you'd put in the work
creating<00:06:32.290><c> the</c><00:06:32.380><c> loan</c><00:06:32.500><c> application</c><00:06:32.650><c> in</c><00:06:33.100><c> the</c>

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creating the loan application in the
 

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creating the loan application in the
first<00:06:33.400><c> place</c><00:06:33.610><c> the</c><00:06:34.180><c> to</c><00:06:34.390><c> checkers</c><00:06:34.630><c> get</c><00:06:34.870><c> twenty</c>

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first place the to checkers get twenty
 

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first place the to checkers get twenty
percent<00:06:35.169><c> there's</c><00:06:35.979><c> another</c><00:06:36.160><c> side</c><00:06:36.430><c> to</c><00:06:36.460><c> this</c>

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percent there's another side to this
 

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percent there's another side to this
which<00:06:36.880><c> is</c><00:06:36.910><c> that</c><00:06:37.030><c> they're</c><00:06:37.240><c> also</c><00:06:37.360><c> underwriters</c>

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which is that they're also underwriters
 

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which is that they're also underwriters
right<00:06:38.740><c> so</c><00:06:39.310><c> if</c><00:06:39.640><c> the</c><00:06:40.060><c> borrower</c><00:06:40.270><c> fails</c><00:06:40.660><c> to</c><00:06:41.020><c> make</c>

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right so if the borrower fails to make
 

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right so if the borrower fails to make
er<00:06:41.290><c> a</c><00:06:41.410><c> payment</c><00:06:41.890><c> the</c><00:06:42.460><c> computer</c><00:06:42.940><c> is</c><00:06:43.060><c> going</c><00:06:43.240><c> to</c>

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er a payment the computer is going to
 

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er a payment the computer is going to
take<00:06:43.570><c> that</c><00:06:43.780><c> repayment</c><00:06:44.169><c> from</c><00:06:44.860><c> the</c><00:06:45.010><c> deposits</c><00:06:45.520><c> of</c>

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take that repayment from the deposits of
 

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take that repayment from the deposits of
the<00:06:46.510><c> validators</c><00:06:47.050><c> right</c><00:06:47.950><c> so</c><00:06:48.640><c> we</c><00:06:48.760><c> can</c><00:06:48.880><c> imagine</c>

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the validators right so we can imagine
 

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the validators right so we can imagine
that<00:06:49.300><c> the</c><00:06:49.479><c> under</c><00:06:49.690><c> writings</c><00:06:50.020><c> and</c><00:06:50.140><c> the</c><00:06:50.200><c> same</c>

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that the under writings and the same
 

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that the under writings and the same
proportion<00:06:50.830><c> as</c><00:06:50.890><c> the</c><00:06:51.070><c> rewards</c><00:06:51.430><c> and</c><00:06:52.090><c> their</c>

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proportion as the rewards and their
 

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proportion as the rewards and their
reputations<00:06:53.020><c> also</c><00:06:53.349><c> a</c><00:06:53.380><c> risk</c>

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reputations also a risk
 

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reputations also a risk
so<00:06:56.070><c> this</c><00:06:57.070><c> is</c><00:06:57.250><c> how</c><00:06:57.430><c> interest</c><00:06:57.820><c> is</c><00:06:57.940><c> generated</c>

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so this is how interest is generated
 

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so this is how interest is generated
let's<00:07:00.010><c> imagine</c><00:07:00.220><c> I</c><00:07:00.490><c> borrow</c><00:07:00.699><c> $10,000</c><00:07:01.570><c> and</c><00:07:01.840><c> I've</c>

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let's imagine I borrow $10,000 and I've
 

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let's imagine I borrow $10,000 and I've
got<00:07:02.020><c> to</c><00:07:02.080><c> pay</c><00:07:02.230><c> it</c><00:07:02.350><c> back</c><00:07:02.500><c> in</c><00:07:02.770><c> ten</c><00:07:03.040><c> monthly</c>

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got to pay it back in ten monthly
 

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got to pay it back in ten monthly
installments<00:07:04.000><c> of</c><00:07:04.210><c> $1,100</c><00:07:05.050><c> well</c><00:07:06.010><c> I</c><00:07:06.340><c> get</c><00:07:06.729><c> I</c><00:07:07.000><c> get</c>

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installments of $1,100 well I get I get
 

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installments of $1,100 well I get I get
eleven<00:07:07.479><c> hundred</c><00:07:07.540><c> dollars</c><00:07:07.900><c> worth</c><00:07:08.020><c> of</c><00:07:08.169><c> I</c><00:07:09.060><c> pay</c><00:07:10.060><c> it</c>

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eleven hundred dollars worth of I pay it
 

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eleven hundred dollars worth of I pay it
back<00:07:10.360><c> to</c><00:07:10.750><c> the</c><00:07:11.320><c> computer</c><00:07:11.590><c> the</c><00:07:11.949><c> computer</c><00:07:12.240><c> burns</c>

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back to the computer the computer burns
 

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back to the computer the computer burns
one<00:07:13.570><c> thousand</c><00:07:13.990><c> dollars</c><00:07:14.260><c> which</c><00:07:14.680><c> is</c><00:07:14.800><c> the</c>

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one thousand dollars which is the
 

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one thousand dollars which is the
principle<00:07:15.370><c> right</c><00:07:16.060><c> just</c><00:07:16.419><c> burns</c><00:07:16.630><c> it</c><00:07:16.870><c> and</c><00:07:17.260><c> it</c>

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principle right just burns it and it
 

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principle right just burns it and it
created<00:07:17.650><c> out</c><00:07:17.860><c> of</c><00:07:17.889><c> thin</c><00:07:18.040><c> air</c><00:07:18.100><c> in</c><00:07:18.250><c> the</c><00:07:18.340><c> first</c>

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created out of thin air in the first
 

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created out of thin air in the first
place<00:07:18.760><c> right</c><00:07:18.940><c> and</c><00:07:19.150><c> the</c><00:07:19.660><c> hundred</c><00:07:20.020><c> dollars</c>

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place right and the hundred dollars
 

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place right and the hundred dollars
interest<00:07:20.680><c> is</c><00:07:20.889><c> then</c><00:07:21.550><c> distributed</c><00:07:22.169><c> amongst</c><00:07:23.169><c> the</c>

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interest is then distributed amongst the
 

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interest is then distributed amongst the
originating<00:07:24.130><c> validators</c><00:07:24.729><c> and</c><00:07:25.030><c> and</c><00:07:25.389><c> also</c>

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originating validators and and also
 

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originating validators and and also
savers<00:07:26.050><c> and</c><00:07:26.080><c> investors</c><00:07:26.199><c> who've</c><00:07:26.680><c> placed</c><00:07:26.950><c> via</c>

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savers and investors who've placed via
 

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savers and investors who've placed via
time<00:07:29.880><c> so</c><00:07:30.880><c> this</c><00:07:31.120><c> is</c><00:07:31.180><c> I</c><00:07:31.330><c> mean</c><00:07:31.450><c> I've</c>

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time so this is I mean I've
 

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time so this is I mean I've
oversimplified<00:07:33.070><c> this</c><00:07:33.250><c> whole</c><00:07:33.400><c> system</c><00:07:33.610><c> but</c>

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oversimplified this whole system but
 

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oversimplified this whole system but
intuitively<00:07:34.750><c> this</c><00:07:35.139><c> will</c><00:07:35.290><c> give</c><00:07:35.410><c> you</c><00:07:35.500><c> a</c><00:07:36.240><c> grasp</c>

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intuitively this will give you a grasp
 

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intuitively this will give you a grasp
of<00:07:37.479><c> why</c><00:07:37.979><c> fire</c><00:07:38.979><c> has</c><00:07:39.190><c> value</c><00:07:39.520><c> even</c><00:07:39.760><c> though</c><00:07:39.850><c> it's</c>

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of why fire has value even though it's
 

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of why fire has value even though it's
conjured<00:07:41.169><c> from</c><00:07:41.200><c> thinner</c><00:07:42.690><c> when</c><00:07:43.690><c> somebody</c>

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conjured from thinner when somebody
 

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conjured from thinner when somebody
receives<00:07:44.200><c> a</c><00:07:44.590><c> loan</c><00:07:45.120><c> artist</c><00:07:46.120><c> let's</c><00:07:46.300><c> say</c><00:07:46.389><c> I</c>

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receives a loan artist let's say I
 

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receives a loan artist let's say I
received<00:07:46.840><c> $10,000</c><00:07:47.560><c> in</c><00:07:47.650><c> fie</c><00:07:48.180><c> they're</c><00:07:49.180><c> gonna</c>

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received $10,000 in fie they're gonna
 

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received $10,000 in fie they're gonna
place<00:07:49.660><c> it</c><00:07:49.690><c> onto</c><00:07:50.139><c> a</c><00:07:50.710><c> crypto</c><00:07:51.280><c> currency</c><00:07:51.639><c> exchange</c>

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place it onto a crypto currency exchange
 

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place it onto a crypto currency exchange
to<00:07:52.150><c> get</c><00:07:52.360><c> Fiat</c><00:07:52.690><c> that</c><00:07:52.930><c> they</c><00:07:53.139><c> can</c><00:07:53.320><c> accept</c><00:07:53.590><c> that</c>

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to get Fiat that they can accept that
 

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to get Fiat that they can accept that
they<00:07:54.130><c> can</c><00:07:54.280><c> spend</c><00:07:54.610><c> right</c><00:07:55.419><c> so</c><00:07:56.050><c> I've</c><00:07:56.169><c> got</c><00:07:56.380><c> $10,000</c>

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they can spend right so I've got $10,000
 

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they can spend right so I've got $10,000
in<00:07:57.190><c> fire</c><00:07:57.460><c> and</c><00:07:57.669><c> I</c><00:07:57.729><c> put</c><00:07:58.539><c> a</c><00:07:58.570><c> ten</c><00:07:59.080><c> thousand</c><00:07:59.440><c> five</c>

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in fire and I put a ten thousand five
 

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in fire and I put a ten thousand five
sell<00:08:00.039><c> order</c><00:08:00.340><c> on</c><00:08:00.669><c> to</c><00:08:01.240><c> the</c><00:08:01.330><c> exchange</c><00:08:01.780><c> but</c>

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sell order on to the exchange but
 

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sell order on to the exchange but
meanwhile<00:08:03.360><c> there</c><00:08:04.360><c> are</c><00:08:04.389><c> other</c><00:08:04.600><c> people</c><00:08:04.930><c> who've</c>

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meanwhile there are other people who've
 

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meanwhile there are other people who've
already<00:08:05.110><c> borrowed</c><00:08:05.560><c> fie</c><00:08:05.830><c> and</c><00:08:06.160><c> are</c><00:08:06.669><c> paying</c><00:08:06.880><c> back</c>

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already borrowed fie and are paying back
 

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already borrowed fie and are paying back
their<00:08:07.330><c> loans</c><00:08:07.570><c> and</c><00:08:07.930><c> they</c><00:08:08.680><c> have</c><00:08:08.919><c> to</c><00:08:09.100><c> buy</c><00:08:09.430><c> Phi</c><00:08:09.870><c> in</c>

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their loans and they have to buy Phi in
 

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their loans and they have to buy Phi in
order<00:08:11.139><c> to</c><00:08:11.200><c> pay</c><00:08:11.410><c> back</c><00:08:11.440><c> the</c><00:08:12.039><c> computer</c><00:08:12.430><c> and</c><00:08:12.669><c> in</c>

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order to pay back the computer and in
 

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order to pay back the computer and in
fact<00:08:13.240><c> you</c><00:08:13.419><c> can</c><00:08:13.570><c> see</c><00:08:13.870><c> that</c><00:08:14.229><c> the</c><00:08:14.500><c> demand</c><00:08:14.889><c> for</c>

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fact you can see that the demand for
 

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fact you can see that the demand for
file<00:08:15.370><c> be</c><00:08:15.610><c> greater</c><00:08:16.180><c> than</c><00:08:16.599><c> the</c><00:08:16.930><c> supply</c><00:08:17.349><c> right</c>

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file be greater than the supply right
 

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file be greater than the supply right
because<00:08:18.280><c> people</c><00:08:18.490><c> are</c><00:08:19.180><c> paying</c><00:08:19.450><c> things</c><00:08:19.660><c> back</c>

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because people are paying things back
 

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because people are paying things back
with<00:08:20.169><c> interest</c><00:08:20.320><c> so</c><00:08:21.310><c> I</c><00:08:21.340><c> may</c><00:08:21.729><c> when</c><00:08:22.360><c> I</c><00:08:22.389><c> borrow</c><00:08:22.780><c> ten</c>

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with interest so I may when I borrow ten
 

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with interest so I may when I borrow ten
thousand<00:08:23.470><c> dollars</c><00:08:23.710><c> I</c><00:08:23.830><c> get</c><00:08:23.979><c> $10,000</c><00:08:24.789><c> worth</c><00:08:24.910><c> of</c>

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thousand dollars I get $10,000 worth of
 

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thousand dollars I get $10,000 worth of
Phi<00:08:25.320><c> but</c><00:08:26.320><c> actually</c><00:08:26.710><c> I've</c><00:08:26.800><c> got</c><00:08:26.830><c> to</c><00:08:27.070><c> pay</c><00:08:27.220><c> back</c>

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Phi but actually I've got to pay back
 

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Phi but actually I've got to pay back
$11,000<00:08:28.660><c> worth</c><00:08:28.720><c> of</c><00:08:28.990><c> Phi</c><00:08:29.110><c> right</c><00:08:34.080><c> so</c><00:08:36.360><c> we</c><00:08:37.360><c> end</c><00:08:37.690><c> up</c>

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$11,000 worth of Phi right so we end up
 

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$11,000 worth of Phi right so we end up
with<00:08:38.080><c> the</c><00:08:38.169><c> system</c><00:08:38.349><c> that</c><00:08:39.690><c> doesn't</c><00:08:40.690><c> involve</c>

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with the system that doesn't involve
 

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with the system that doesn't involve
banks<00:08:42.060><c> which</c><00:08:43.060><c> gives</c><00:08:43.330><c> out</c><00:08:43.450><c> loans</c><00:08:44.550><c> creates</c><00:08:45.550><c> a</c>

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banks which gives out loans creates a
 

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banks which gives out loans creates a
stable<00:08:46.420><c> currency</c><00:08:46.720><c> the</c><00:08:47.260><c> last</c><00:08:47.470><c> remaining</c>

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stable currency the last remaining
 

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stable currency the last remaining
question<00:08:48.430><c> might</c><00:08:49.240><c> be</c><00:08:49.270><c> well</c><00:08:49.660><c> what</c><00:08:50.350><c> stopped</c>

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question might be well what stopped
 

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question might be well what stopped
somebody<00:08:51.010><c> just</c><00:08:51.339><c> taking</c><00:08:51.670><c> a</c><00:08:51.760><c> loan</c><00:08:52.020><c> getting</c>

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somebody just taking a loan getting
 

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somebody just taking a loan getting
their<00:08:53.140><c> $10,000</c><00:08:54.010><c> worth</c><00:08:54.130><c> of</c><00:08:54.279><c> Phi</c><00:08:54.490><c> and</c><00:08:54.990><c> just</c>

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their $10,000 worth of Phi and just
 

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their $10,000 worth of Phi and just
walking<00:08:56.260><c> away</c><00:08:57.180><c> the</c><00:08:58.180><c> computer</c><00:08:58.330><c> can't</c><00:08:58.720><c> chase</c>

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walking away the computer can't chase
 

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walking away the computer can't chase
that<00:08:59.140><c> right</c><00:08:59.290><c> the</c><00:08:59.890><c> way</c><00:09:00.010><c> that</c><00:09:00.190><c> works</c><00:09:00.370><c> is</c><00:09:01.410><c> when</c>

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that right the way that works is when
 

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that right the way that works is when
they<00:09:03.240><c> applied</c><00:09:04.240><c> for</c><00:09:04.270><c> the</c><00:09:04.510><c> loan</c><00:09:04.690><c> and</c><00:09:04.720><c> the</c>

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they applied for the loan and the
 

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they applied for the loan and the
validator<00:09:05.530><c> would</c><00:09:05.770><c> have</c><00:09:05.860><c> made</c><00:09:06.040><c> them</c><00:09:06.190><c> sign</c><00:09:06.339><c> a</c>

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validator would have made them sign a
 

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validator would have made them sign a
contract<00:09:06.850><c> that</c><00:09:07.600><c> says</c>

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contract that says
 

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contract that says
if<00:09:08.800><c> you</c><00:09:09.040><c> don't</c><00:09:09.250><c> pay</c><00:09:09.430><c> back</c><00:09:09.460><c> the</c><00:09:09.880><c> computer</c><00:09:10.330><c> the</c>

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if you don't pay back the computer the
 

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if you don't pay back the computer the
computers<00:09:11.320><c> going</c><00:09:11.470><c> to</c><00:09:11.560><c> take</c><00:09:11.800><c> the</c><00:09:12.040><c> missing</c>

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computers going to take the missing
 

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computers going to take the missing
repayment<00:09:13.390><c> from</c><00:09:13.870><c> my</c><00:09:14.050><c> deposit</c><00:09:14.560><c> and</c>

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repayment from my deposit and
 

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repayment from my deposit and
consequently<00:09:16.600><c> all</c><00:09:16.810><c> these</c><00:09:17.020><c> money</c><00:09:17.200><c> and</c><00:09:17.470><c> so</c><00:09:17.920><c> you</c>

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consequently all these money and so you
 

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consequently all these money and so you
will<00:09:18.340><c> owe</c><00:09:18.520><c> me</c><00:09:18.760><c> that</c><00:09:18.970><c> money</c><00:09:19.180><c> so</c><00:09:19.750><c> if</c><00:09:19.810><c> somebody</c>

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will owe me that money so if somebody
 

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will owe me that money so if somebody
doesn't<00:09:20.320><c> repay</c><00:09:20.620><c> the</c><00:09:20.770><c> computer</c><00:09:21.160><c> they</c><00:09:21.460><c> can</c>

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doesn't repay the computer they can
 

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doesn't repay the computer they can
activate<00:09:23.080><c> this</c><00:09:23.350><c> contract</c><00:09:24.160><c> and</c><00:09:24.520><c> the</c><00:09:25.510><c> borrower</c>

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activate this contract and the borrower
 

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activate this contract and the borrower
then<00:09:26.200><c> has</c><00:09:26.380><c> a</c><00:09:26.410><c> debt</c><00:09:26.800><c> directly</c><00:09:27.400><c> to</c><00:09:27.610><c> the</c>

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then has a debt directly to the
 

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then has a debt directly to the
validator<00:09:28.420><c> and</c><00:09:28.690><c> the</c><00:09:29.200><c> validator</c><00:09:29.620><c> can</c><00:09:29.860><c> just</c><00:09:30.070><c> use</c>

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validator and the validator can just use
 

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validator and the validator can just use
existing<00:09:33.180><c> debt</c><00:09:34.180><c> recovery</c><00:09:34.540><c> systems</c><00:09:34.900><c> which</c>

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existing debt recovery systems which
 

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existing debt recovery systems which
which<00:09:35.620><c> are</c><00:09:35.830><c> you</c><00:09:35.950><c> know</c><00:09:36.070><c> widely</c><00:09:36.490><c> available</c>

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which are you know widely available
 

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which are you know widely available
worldwide<00:09:38.790><c> and</c><00:09:39.790><c> so</c><00:09:40.150><c> I'll</c><00:09:40.840><c> post</c><00:09:41.230><c> this</c><00:09:41.530><c> deck</c>

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worldwide and so I'll post this deck
 

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worldwide and so I'll post this deck
online<00:09:42.550><c> on</c><00:09:42.880><c> my</c><00:09:43.210><c> Twitter</c><00:09:43.450><c> if</c><00:09:43.690><c> anyone</c><00:09:43.930><c> wants</c><00:09:44.080><c> to</c>

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online on my Twitter if anyone wants to
 

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online on my Twitter if anyone wants to
look<00:09:44.260><c> at</c><00:09:44.410><c> it</c><00:09:44.530><c> at</c><00:09:44.710><c> their</c><00:09:44.860><c> leisure</c><00:09:45.210><c> I'm</c><00:09:46.210><c> from</c><00:09:46.480><c> a</c>

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look at it at their leisure I'm from a
 

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look at it at their leisure I'm from a
company<00:09:46.960><c> called</c><00:09:47.110><c> string</c><00:09:47.530><c> labs</c><00:09:47.770><c> we've</c><00:09:47.920><c> got</c><00:09:48.040><c> two</c>

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company called string labs we've got two
 

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company called string labs we've got two
projects<00:09:48.640><c> at</c><00:09:49.240><c> the</c><00:09:49.300><c> moment</c><00:09:49.600><c> one</c><00:09:49.750><c> is</c><00:09:49.870><c> fire</c>

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projects at the moment one is fire
 

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projects at the moment one is fire
another<00:09:50.500><c> one</c><00:09:50.650><c> is</c><00:09:50.800><c> called</c><00:09:50.950><c> affinity</c><00:09:51.370><c> which</c><00:09:51.610><c> is</c>

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another one is called affinity which is
 

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another one is called affinity which is
a<00:09:51.760><c> kind</c><00:09:52.000><c> of</c><00:09:52.030><c> business</c><00:09:52.390><c> oriented</c><00:09:52.780><c> blockchain</c>

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a kind of business oriented blockchain
 

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a kind of business oriented blockchain
which<00:09:53.380><c> has</c><00:09:53.680><c> some</c><00:09:53.860><c> new</c><00:09:53.950><c> cryptography</c><00:09:54.520><c> and</c>

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which has some new cryptography and
 

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which has some new cryptography and
think<00:09:55.420><c> we'll</c><00:09:55.510><c> the</c><00:09:55.570><c> blockchain</c><00:09:55.780><c> nervous</c>

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think we'll the blockchain nervous
 

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think we'll the blockchain nervous
system<00:09:56.500><c> we're</c><00:09:56.620><c> presenting</c><00:09:56.950><c> on</c><00:09:57.040><c> Saturday</c>

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system we're presenting on Saturday
 

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system we're presenting on Saturday
feel<00:09:59.200><c> free</c><00:09:59.380><c> to</c><00:09:59.640><c> catch</c><00:10:00.640><c> up</c><00:10:00.790><c> with</c><00:10:00.820><c> me</c><00:10:00.940><c> later</c>

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feel free to catch up with me later
 

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feel free to catch up with me later
there's<00:10:01.600><c> many</c><00:10:01.780><c> questions</c><00:10:02.130><c> Thanks</c>