To Control AI We NEED Blockchain

Añadido: 2026-05-17

[00:00:00]Well, at the end of the day, a blockchain is trying to resolve a very specific set of problems that come about when you try to coordinate collaborate with people at scale when you don't know or have any reason to trust those people. That's why there's always a market for blockchain. You're like, well, I don't know crypto really valuable or not. It's like, okay, well, explain this to me. How does Toyota go and work with a Chinese car company?

[00:00:24]Um how does an American oil company go work with a Venezuelan oil company? Uh you know, how does an individual do e-commerce and sell things to people in let's say Vietnam?

[00:00:36]Okay, so in all these cases, it's a global market. There's 8 billion people.

[00:00:39]By collaborating working together, you go from your local customers living in your country in your community to a global community so you can make a lot of money.

[00:00:48]But every one of these things requires rule of law, rules, trust, and ultimately the ability to get recourse in the event that people defraud you.

[00:00:56]So, what blockchain does is it acts as a regulating layer between all people. And it says, okay, there we can set up rules, we can create special types of assets, and then ultimately everybody has to follow the same set of rules. And this is the first time ever that a multinational company or a massive country with nuclear weapons is constrained the same way as the farmer from Senegal.

[00:01:19]It's never been the case before in human history. That's what blockchain basically brings to the table. It's the ultimate equality engine, uh you know, at its core. Now, a lot of technological miracles have to happen and an enormous amount of translation has to happen to make that work, but that's the vision thing. Um and why do we want it? Because every year the government advertises what happens when they [ __ ] it up.

[00:01:43]Um you know, they say they're going to release the Epstein files, and then they don't. They say too big to fail, and then they make it bigger.

[00:01:50]Uh you know, uh they say they're going to cut the budget and balance the books, and now the national debt's 38 trillion heading to 50 trillion global debt's 233 trillion dollars. They say that, you know, there's going to be a quality amongst people and everybody has equal rights except for the people who don't.

[00:02:08]You know, it just it's one thing after another thing and they lie and they lie and they lie and they say, "Well, if you vote for me, you know, this time around it'll be different." The reason why it's not different is the incentives are wrong, the power structures are wrong, and there are and the system creates the evil, not the people. You can be an honest, great, wonderful human being.

[00:02:29]You walk into the system, 5 or 10 years into it, you're going to be Vic Mackey, you know, in The Shield, you know, going around beating people up, selling drugs.

[00:02:37]You know, it's like it's just that's what the system basically does. Same for baseball with steroids. A lot of those guys taking it they didn't want to take it, but they juiced because everybody else is juicing. And if they don't, they don't win games. You don't win games, you know what you call that? Unemployed.

[00:02:52]You see, that's the nature of the beast.

[00:02:54]So, really what blockchain's about at its core is that trust model and that ability to change the rules from don't be evil to can't be evil. That's what I signed up for and I've spent 15 years now in this industry and I built four cryptocurrencies. BitShares, which was the first algorithmic stable coin index, launched before Ethereum.

[00:03:13]Obviously, Ethereum is what I'm most known for and Cardano, that's been the bulk of my work and now midnight. And every step of the way, we were trying to resolve something in the trust model and we were trying to resolve something in the collaboration model so that the maximum amount of people can enjoy decentralization, freedom, and equality.

[00:03:31]>> 100%. And so, the systems that you're referring to and you I Keith and I actually were just having a discussion about this before we got on is that that is the the core problem is that even great people in a broken system do broken things.

[00:03:45]How how did we get to this place where where the systems are so broken? Is that is that deliberate? Is that accidental?

[00:03:53]Like how does that take place?

[00:03:56]Okay, so you go to an architect, you say build me a home. And they say, all right, I'll build you a home. You say, yeah, it's just going to be me.

[00:04:04]And it's like a bachelor pad. Then you meet a woman, then you have some kids.

[00:04:09]Then mom gets sick, she's got to move in. Uh and then the neighborhood changes. It's like, is that home still fit for purpose? Probably not. So what do you do? You retrofit it. You retrofit it. You retrofit it. Okay, so you build a government, 19th century, 18th century.

[00:04:24]How did we communicate with each other?

[00:04:26]We sent letters to each other, okay? It took months for [ __ ] to be figured out.

[00:04:31]And our technology was aggregarian.

[00:04:34]Then suddenly we built the telegraph and the industrial revolution, we're moving a lot faster, we're communicating a lot faster. Did we update modernize our constitution and our government structure? Not really, not enough.

[00:04:46]And then all of a sudden electricity comes around.

[00:04:49]And people are working in the night time, and then all of a sudden we invent planes and mass transportation. And suddenly we go from a regional to a global world. And then all of a sudden the internet gets invented.

[00:05:01]All this technology comes, all this globalization comes. Did we update modernize our government systems and our political systems and our organizational systems with people? No. So how do we compensate that? We invented two new branches of government, the bureaucracy and the corporation. If you're enjoying this, this was actually taken out of a piece of our live stream where we go live every Tuesday and Thursday at 12:00 p.m. Eastern. If you want to see the full version of this episode, you can click the link in the description down below. But for now, back to the clip.

[00:05:33]So the bureaucracy is like a silent fourth branch of government and all the [ __ ] we didn't upgrade in our legislative, executive, and judicial branch, we just stuck over there, which is why we now have 10 million plus federal employees and all these agencies and these other things cuz they're just compensating for the design defects.

[00:05:50]It's like that you know, that that room you've bolted on to your your house for mom to live in. And then on the corporation, everything that the bureaucracy can't do, these giant multinational corporations have stepped in and they took over the payment systems and the communication systems and the telecommunication systems and the transportation systems and these other things. So you've outsourced modernity to unelected oligarchs who basically operate like regional kings and they run and they run with different systems.

[00:06:20]All those systems are about profit maximization.

[00:06:23]So they're intrinsically sociopathic at their core cuz they don't give a [ __ ] about their employees, their leadership, the environment, or anything. It's about quarterly profits.

[00:06:33]So basically, you know, you get what you pay for and you get what your incentive structures are. So then regulators come in and all of a sudden you have this weird relationship where on one hand the government needs these companies to do the things they can't do. On the other hand, they have to punish and regulate and audit and oversee these companies, but the companies get more powerful than the governments. So what they do is they take over the government. You see that with Citizens United and you know, these other things where they get unlimited political representation and they create a revolving door. So now the pharmaceutical industry owns the FDA.

[00:07:03]The military industrial complex owns the military.

[00:07:06]You know, the education industrial complex owns the Department of Education. Student loans go up every year. Tuition goes up 10% every year.

[00:07:13]You get a worse and worse product. So that you can't find a single industry in the United States that isn't owned by the corporate arm now.

[00:07:21]And you see this by the leaders of those industries hiring the people who regulate them after they get out of office and basically creating this virtuous cycle of uh of nepotism and corruption. So that's how you get there. It's gradualism and it's nobody's fault. It's an organic growth of divergent systems that were unable to keep up with technological progress. So, the reset is blockchain because what you're doing is you're saying, "Hang on a second. There There's a collection of things like payments, the production of money, democratic consent, your identity, your data, that maybe should not be owned by Google or Microsoft or a bank. They should be owned in the commons. And they're global, so no one government should control them, but rather there's a set of universal rules. And ultimately, you own your own identity. You are your own bank. You're in control of your own money.

[00:08:15]Once you have that, then you can use those as an interface and you get rid of these giant multinational trillion-dollar companies. You replace them with protocols at their core. And you create a system that is much more decentralized. Furthermore, the governance innovation changes your decision-making things. Like basic stuff. So, election, you probably hear this thing like throw your vote away.

[00:08:35]Like the last election, 2024, we had to choose between dementia and demented.

[00:08:39]These were our two two choices. Like nobody wanted these choices. These were bad bad choices, man, all around. So, why is it we don't have the ability just to rank choice or preference order of people? Like I like Alice and then Bob, then Jim, then Jane. Here's my first candidate, second candidate, third candidate. Basic stuff like that. Then there's no notion of throwing your vote away cuz you can vote for every time the person you really want, but then you have a fallback choice in case that person don't win. Little stuff like that. You do that, suddenly you have third-party representation at all levels. And you don't have this winner-takes-all phenomena of coalitions of people. You instead have uh, you know, uh, tribes and they have to come together and get anything done. They have to work together. And if they don't, you can fire them very quickly.

[00:09:22]Like recall elections, for example. If you fall below a certain level of approval, maybe we should actually recall the candidates and bring somebody else in. So, you don't end up with these lame-duck leaders that stick around for two or three years and all they do is just work for corporate overlords and masters. So, uh, governance changes are another thing in the cryptocurrency space. We have to govern these resources. There were 11,000 DAOs made in Ethereum.

[00:09:46]Cardano is largest on-chain government.

[00:09:48]Okay, we have all these new voting systems like Semaphore and Maki.

[00:09:51]Uh we have uh you know, they do ZK quadratic voting. We have preference ordering. We have conviction voting. Uh Cardano has liquid democracy, so feedback uh through through that. So, there are all these amazing new tools, and we're beta testing them with billions of dollars at stake and millions of people.

[00:10:08]So, take those innovations and you put those into the DNA and you could upgrade your system, and then guess what happens? You get much more representation, and then people can start systematically correcting problems. The last thing is we don't have any definition of success.

[00:10:23]So, you get what you optimize. If I go and I say Ben and Keith, you guys got to make X amount of dollars per month.

[00:10:31]That's your optimization parameter. Not you got to take showers. Not you know, you got to get in shape. Not you got to go have meaningful life experiences and go and travel to Kenya and go to uh Sara to to Masai people and hang around and go to Cottar's Lodge and get a transformational safari or something like that. No, you're not going to do any of that. Sorry.

[00:10:53]You got to go make some money every month, you know? So, that's your optimization function. If I go and say there's a different optimization function like you got to lose 30 lb, you you know, you can go optimize around that. So, what is the optimization function for the US government?

[00:11:08]You know, you have the State of the Union speech and you hear Trump come out and babble for 2 hours.

[00:11:14]Or Biden, you know, like a mumble rapper.

[00:11:17]You know, he's just like this what what the [ __ ] is going on with this?

[00:11:21]So, it just you just you get nothing out of it, right? Because at the end of the day, we don't even agree on what the optimization function is inside the system.

[00:11:29]You got to sit down and say, "Okay, what does it mean to have good health care?

[00:11:33]What does it mean to have good education? What does it mean for economic growth?" They brag about GDP growth. We have a K-shaped recovery right now.

[00:11:41]The rich people are making lots of money, spending that money, and putting that money into the stock market. So, the stock market's going up, luxury consumption's going up, the poor people are getting systematically poorer.

[00:11:54]So, you got about 200 million people in America who every month are having a harder and harder time. You have about 150 million people in America that are doing okay or actually getting better.

[00:12:04]So, if you go and say GDP growth is your metric, you're ignoring 200-plus million people in the United States. So, obviously there needs to be a different metric, maybe HDI or something like that that's more inclusive of the entire stack. If you optimize for that, then you can talk about how to fix it. And then also just learning from your peers.

[00:12:21]So, whoever is measuring this [ __ ] who's number one in the world? Is it Singapore? Is it China? Is it Japan? Is it Germany? Who the [ __ ] cares? Go talk to them.

[00:12:32]What is your system like? Cryptocurrency space, everything's open source. So, what do I do? Whoever's number one, I get their [ __ ] for free.

[00:12:39]I can go over and see how it works. I take it, I integrate it, and then boom, I'm now number one, too. Cuz I'm using the same system. Why don't we do this with governments?

[00:12:48]No, it's always like, "Well, that's just not the American way." Or that's just not the Chinese way or this way. It's like, "Oh, so in other words, everybody has to suffer while you figure out how to solve a problem." By the time you do, another politician comes in and undoes all the [ __ ] you've done.

[00:13:03]So, then we make the bureaucracy bigger cuz it it survives administrative changes, and they have a bunch of unelected people who have different set of schemes. They work for the corporations, they don't work for the government. Their job is to get big enough to get a private industry job at the end of the day leveraging their network's connections and clearances and other things like that to do the thing.

[00:13:21]That's how we got here. Hey, you made it to the end of the clip.

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