Centralization vs Decentralization: Who’s Really in Control? | CoinPicks Live

3, 2, 1. What's going on everybody? Alex back with another livestream. Today we're gonna be going over crypto stuff. We are going through the personal finance portion of the course, and I'm like, you know what, that's pretty straightforward. It's not hard, you just gotta have the diligence to make more money, find a career path, et cetera, et cetera. You'll see it in the course, what I decided to go through today. Is a concept of centralization versus decentralization. It's one of the core principles of cryptocurrency that makes it super powerful for people. Hence the lesson. I'm not going to do too much announcements. We're just going to get straight into it. Before we get started, last announcement. We do have a free auto trader. It buys, sells, does the research. There's a big blue button. You click it. When you click that button, what's going to happen is it's going to take you down a process to where you can download it for free. Not only do we give you the execution layer for free, But we also let you connect it to the API. We spend anywhere from $100 to $300 a day right now in understanding it has a smarter brain. We run the latest models. We understand that people can't do that. That feeds it, and we're getting better as well through the process. But all of that is 100% free. It's also gonna ask you if you wanna schedule a call to understand how to use the bot, set it up, how to actually make it profitable. We have training for that. And so through that form process, I would recommend that you guys get set up with one of our consultants here. It'll be a very high-leverage hour for you to actually make— I'm serious, you guys will spend an hour on Netflix, but then you hesitate to spend an hour with an expert that can show you exactly how to use an automatic trading platform of the future in crypto. Like, you should hesitate for Netflix. So that's pretty much it. That's all the announcements. Click the big blue button, go through the form. I'm very excited about today's training because a lot of people don't know it, but they're investing their money in crypto. So it's the concept Of centralization versus decentralization. So to put it simple, centralization means authority and control are concentrated to one person, organization, or governing body. Okay, so like a centralized power, right? Centralization. There's only one person that makes the decisions. They have way too much power, and what they say goes. I want you to think of the negative effects of centralization, right? So for example, Humans are limited. So if you put all the power into one human, they make all the decisions, everyone's going to be governed by their limitations, right? So if they have a limitation, they have a problem with whatever, everybody's going to be affected by that, right? Now we have another concept called decentralization. This is where the power is distributed. Decentralization means authority, responsibility, decision-making are distributed among multiple people or groups. So this is how I believe that we should be operating, everyone should be operating. But essentially imagine a company where the CEO establishes the vision, but department leaders have authority to make decisions and execute without consistently asking for permission. Does that make sense? It's delegated authority. And so the reason why I'm putting that up is because you'll come to find out pretty much every structure in modern society is centralized. Literally every single one of them. And what happened was, is all the power went to very, very rich people that adopted things before everybody else and created monopolies. And it's consistent, including the financial system. Like, literally everything is pretty much centralized, okay? So let's go through a couple of perspectives of this. So the first one is, for example, your deed. Like your house has a deed. There's actual records that are being kept, right? So here's just like, I always used to give this example throughout history. Imagine a building that has all your deeds and all of your records, it gets burnt down. If that gets burnt down, that means that nobody knows the ownership of your house, right? Nobody knows. There's a lot of systems like this right now. I think there was, I forgot the actual institution, I forgot the name of it, but they hired Elon Musk and got with a whole bunch of young rich dudes, or I'm sorry, young smart dudes. And when Trump first got elected, and he sent them into the financial system to basically find problems and find places where the government was misusing money, they found trillions and trillions of dollars of misuse. And a lot of the documents, one of the biggest problems they had were they were all filed in paperwork in some hidden bunker. It was like literal paperwork that they had to swift through just to get through it. So the inefficiencies of the old archaic system, that's— it's a centralized world. So I'll give you another hypothetical right now. Instagram. Everybody has an Instagram, right? So when you post a picture on Instagram, let's say hypothetically the picture gets 100,000 views. It has— that's, you know, how much economic value comes from like 100,000 views or like 200,000? Like you could really put a dollar amount to it. These are impressions. Like for example, If you paid for— if you got a video that does a million views on Facebook, you can pay $1 per impression. So you can pay for the views and the impression. There's economic value tied to that. Think about it. Think about Instagram. What is their business model? What is Instagram's business model? There's 2 things they make money off of. Number one, they make money off of selling ads, right? And number two, they make off like the small subscriptions and stuff like that. But it's primarily selling the ads. So you can buy that ad space. You buying that ad space, there's economic value towards perception, right, and impressions. Now, the problem with this is that if Carlos posts a video that gets a million views and he doesn't like Instagram because the centralized authority of Instagram says that he can't preach the gospel, says it's illegal to preach the gospel, it is now determined That we do not like Carlos's content, we don't want to push it on the algorithm, it is illegal to preach the gospel, he can't transfer his million-viewed video to any platform. It's centralized. Yes, it's your Instagram. Yes, you post. Yes, it's your data, your whatever. But it's all controlled in IG. Literally, it cannot go anywhere else. You are confined to the box. You have a question, statement, or concern?

Would you even say, like, for example, like, let's say you delete your account, they still have control of everything you posted on there?

Correct. They have all of them. For example, to help you understand that, there's a lot of secondary data. So you have the views, you have the likes, etc., etc., but you also have like the demographics of the type of people that like that specific post. So let's say he's a car guy, he makes a car post. You have all the types of people that like cars that type of training data gets sold. So like, for example, another car enthusiast that wants to learn how to sell whatever through Car Guys can buy that data. So all of that is not yours. Does that make sense? So like, there's, there's a whole— and there's— it gets, it gets absurd. Like, the amount— pretty much every variable of Instagram is controlled minus the ability to delete a picture or put a picture. They control everything. But yet people run their entire business, they run their entire lives, and spend 10 hours a day scrolling social media. I mean, think about even our business, right? This is why we're going— we're live streaming to our website, is because right now if somebody deleted my Instagram, we'd be fine, but the economic value behind that is crazy. I'd lose millions of dollars, and I can't transfer that post. I can't do nothing. This is also— it's called the issue of fragmentation. So the same video we make, we post it on Instagram, Facebook, X, Twitter, or X is Twitter, X, TikTok. We post the same video everywhere, right? So that's also inefficient. It's the same video, but just on different platforms. Just because the actual platforms themselves can't come into agreement on one standard, we post the 5 videos and 7, Imagine a world, so let's flip the script. So let's talk about decentralization. So imagine a world where that same IG post, right, with a million views can be transferred to X and retain all of the views, the metrics, the likes, the comments, all of it will be retained. This is real right now. This is real. So the post has a unique identifier. It has an ID. A unique identifier, and the actual value is retained within the post, not the platform. That's good. Does that make sense? That's the future. And so that you can transfer it to anything. So if X has terms and conditions, and we can keep going further, like there's something called decentralized autonomous organizations, or DAOs. It's like one of the biggest innovations of crypto ever created. But like there are social medias where they have councils On X, so where one guy's not deciding, and a private company that profits off the platform deciding what gets censored and what doesn't get censored. In the future, there'll be a revenue model to where we'll have a council of people that will decide what gets censored and not gets censored, and their vote right will be according to how much network or money they have. Let me explain that. So I'm explaining a little bit deeper, but that's— we'll go into that. We'll go into a DAO a little bit. But this is the decentralization principle. So if you could really, like, someone can name something right now and chances are the backend is fully and thoroughly centralized, taken advantage of, and controlled completely. Basically, the whole world right now. Go ahead, give me one.

Sorry, I was gonna give you one. I was gonna ask for 2 things. Can you finish your state, like the definition of the

issue of fragmentation? Yes, so thank you, sorry. So fragmentation basically means in the future one post can be one post and the values derived from the post. So on 7 different platforms, it'll be the same post. So it won't be fragmented. It's extremely inefficient. It doesn't make sense. Go ahead.

So the issue of fragmentation just pretty much means that you have— so it goes back to your example that you have to post 5 videos of the same video because it doesn't transfer?

Yeah, like, you know how right now, like, Apple and, like, Apple and Android. It's like their whole different green text bubble. It's called the walled garden. So they literally wall off their garden. It's the same thing. To try to sell, to try to like— it's just like the scarcity mindset where they try to contain everybody and milk them for every dollar they have. Mm-hmm. Instead of opening it to the world, and if their product is actually good, people would just naturally adopt it. They just try to contain their customer base. You have a question or statement? Yeah, Zora was a— so the decentralized social media has been a constant narrative that always works. So throughout, I was invested in early ones back in the day, Steem. So the decentralized social media thing works. The problem is the guys that make it don't have an experience to get like a real social media experience. The social media part is the hard part. The decentralization mechanics are easy. So X just did this. So X just put a— what was it? They put a buy button. You could buy social media directly. I mean, crypto directly on X. They haven't done the full fragmentation of posts yet, but that's the next step. I'm pretty sure. We don't know for sure, but I'm pretty sure. Does that make sense? Yeah, my question.

What does the O mean for DAO? DAO?

Organization. So decentralized Autonomous organization. I want to explain that because it really taps into the power of decentralization. But I want to just— let's get into that. I feel like this— okay, so again, centralized versus decentralized. So centralized would be like one guy running the show. If he was a wise CEO, he would start training people up, like training a leader here, training a leader there, and then delegating power for them to make the decisions. There are some CEOs that just run the whole thing and they do whatever they want, but that wouldn't be wise, right? As you become more decentralized, it would be better economic value in general, right? So this is like the fullest version of that. There's nothing more decentralized. So I want you to imagine this. I'm gonna try to explain it because every decentralized autonomous organization is a little bit different. So let's say hypothetically, let's talk about in the case of a hedge fund. That's one of the best, the first use cases of a DAO. They created a fund, right? Imagine a pool of money, okay? So here's money. This money, let's say it represented $1 million. And the whole purpose of the fund, they would write up a declaration of independence, right? They would be like, hey, this is a statement that we all agree. In crypto, that's called a white paper. So they'll make a white paper, and the white paper would determine the specific rules of what they believe, right? Like literally, like it will literally outline the code base, it would outline the specifics on how it works, it would outline even like their principles of what they believe in, their investing principles. In this case, it would be a lot of investing principles because it's a hedge fund, right? So it'd be like, hey, this is our like kind of investment methodology, this is, uh, the way that we think that we should be trading the money, etc., etc., right? Now what they would do is they would make a token, let's call it, I don't know, hedge fund token. This is like one of the most consistent models that we've seen with DAOs, so let's call it FUN token. They make FUN token, and in FUN token, let's say they launch like 1 million tokens, 1 million tokens, right? What they would do is they would put it to the public, and then let's say hypothetically, out of those 1 million, you got 10 guys that have 5% of the supply. So that's 50% of the supply. So they would own— they have, imagine, 10 guys with 10 wallets, they would own 5% each, right? From the 1 million tokens. Now, this is not 1 million USD value, maybe that's too much for this example. But this will be considered $1 million. That should work. This will be considered $1 million in tokens, not USD value. So they would have $500,000 split, right? Now, what happens is they have like, I don't know, they're all different, but they're like forms. They're like accounts. So I want you to imagine like, for example, like a courthouse, They have this place, they have like a Reddit. You ever seen Reddit? They have their own version of it. But they have a place where they all discuss something called proposals. So imagine like a Reddit, they all talk. This is like every project, by the way, like every project. Ethereum has their own, they all have their own. And they'll have something called— they'll put in a proposal. And the proposal will be something like, hey, I found this new strategy on how to trade liquidity displacement. Here's the exact mechanics on how the strategy works. I'm proposing that we allocate of the $1 million USD that we have in the fund, I'm proposing that we allocate 20% of it to this trading strategy and run it automatically. It'll be a proposal, a whole proposal, and it'll be clearly documented. And then what happens is these guys here that own 5% each, they all vote on if they should actually actually be implemented or not. And then according to the vote, if the vote passes, it will be automatically engineered into the protocol and it will be the concept of immutable. Who can explain to me what immutable is? Immutability. Meaning— no one knows? You know? Explain immutability.

After something happens, you can't go back and change the fact that it happened or The record of it happening.

Correct. Once the vote passes, they call it code is law. It is instilled in code and there's no way to reverse it unless somebody hacks it or something, which doesn't happen. Does that make sense? It's immutable, meaning it's like it's set in stone until somebody submits another proposal that gets voted on to remove it. Does that make sense? It's just voted on. Now, the craziest part about all this is that nobody needs to know each other's identity. Fully decentralized and autonomous, meaning this guy could be— we could have 2 guys owning 20% of the supply and they don't even know each other's names. There's no trail? Here. You're good.

So like there's no trail for anybody to even find who it is?

Now there's investigative models where you can sit there and try as hard as you can to figure it out, But if they have never sold any of their tokens, there's no trail. You cannot figure it out unless you hack their computer, unless you go that far. But inherently, like, you can make it autonomous. I'm talking about you could have a kid that's just super smart, that's 15 years old in Africa, that is just actually a genius. And because he's a genius, I mean, because he's so small and a kid, nobody would pay him any mind at a centralized company. No one would pay him any mind. This dude can't even speak English. He's a boy genius, and he is autonomously running the protocol. Wow. This is where true innovation is, like, pure, like, producing real value. Go

ahead. Is the immutability only for the proposal, or is that for anything decentralized?

Anything, any blockchain, that is one of the core principles of blockchain. Anything that's instilled into the blockchain is now immutable and unhackable and unstoppable. That's anything including proposals, the original creation, the original— usually they'll start off with an original toolset in the whitepaper, so the original rules are immutable. They're immutable unless it gets hacked. Obviously that's outlier cases of like someone messing it up, but the immutability is one of the biggest principles of cryptocurrency. So yeah, go ahead.

How do you get the 10 folks to vote on proposals If you don't know who they are.

Yeah, so they go to this website. They literally go to a website that looks like Reddit. There's— and they have all the top proposals, and there's a couple voted. Like, it depends on how they do it. They can pick how they want to vote, but usually there's like 2 voting kind of things where like they do one to even consider it, and then if it's voted on to be considered, then they vote on it again too. And it's literally a— I'll show you a couple. There's literally a whole form, and And they're all like upvoting and then they're commenting below, like talking about it, and no one knows each other's identity. It's crazy, it's really crazy. But as you can imagine, it takes away a lot of stress. Why? Okay, watch this. What if I made, and I'll never do this on camera, but let's say hypothetically I made a decentralized autonomous organization to take over the government? Like I literally wanted to take over United States, I want to destroy it, Whatever, it's obviously bad, right? I don't want that. I love America. But if I did and it was for a good cause, let's say another country that's bad, it's like really bad country, this is like horrifying things, and I'm in the country and I want no one to know my identity, but I need, I need a PR manager, I need a social media expert, and I need all these things. You can literally— bro, I know people that literally go on these coins and submit proposals And they ask for like, I want $20,000 in tokens and I'll run your animations. And they're just submitting proposals, submitting proposals anywhere they can. I need $10,000 a month to run your Discord. I'll do community management for you. And they're submitting proposals and then they're putting like their— in the proposal, they're putting like their background and like what they do for a living. Like some people choose to be like public. They choose like, I want you to know my identity. so that you can see I'm legit. But, but like, that's the point, is it gives you an option. Does that make sense? In that case, if you're trying to take over a government, you want to be completely anonymous, because if you're not, the centralized powers that be can stop you. I'll give you an example. In, um, Canada, this was recent, 2 years ago, there was, uh, the Ice Road Truckers protest. You guys heard about that? Mm-hmm. So they basically put on a massive protest For whatever reason, I don't know, like if it was right or wrong, whatever, but they did this and the government froze their bank accounts. They froze their bank accounts. And then guess what happened? Who knows that didn't read it? Guess what happened when they froze their bank accounts? Guess what happened after? They got crypto? They did. They all started adopting Bitcoin naturally. They naturally are like, bro, we can't do it, we can't pay our bills, we can't pay our families. Let's all start transacting in Bitcoin. And we actually saw a surge in transaction volume in Bitcoin specifically, because you can't stop it. Does that make sense? Now obviously there's a lot of bad you could do with it, but there's also a lot of good you could do with it, right? So for example, let's say hypothetically you find a cure for AIDS, or you find a cure for cancer, and you don't— that's really good. That's like a really good thing. Like you want the world, but you need funding, you need people, blah, blah, blah. You need to build the organization. And you don't want to do it publicly because you can get assassinated, right? So like that's the point of the decentralization is it takes the power, there's a platform of mediation that handles all the economic value transfer in the most efficient way known to man.

But realistically, you can't let the government like fine anybody, even if you even go into this route?

That's a good— these are ultimatum questions.

No, it's rabbit holes, but—

All right, I'm gonna give you the rabbit hole. So here's the rabbit hole. So you have blockchain. By the way, I don't hide anything. I'm all over the internet. I do not care. But people love this stuff, right? You have blockchain. The only way you could— there's like 3 ways mainly. What is it called where you DDoS? What is it? No. Yeah, DDoS attack? No, it's where they just like— what is it called? Where they just find their identity? Doxxing. Doxxing. What is it, D-O-X-X? D-O-X-X-I-N-G. Yeah, so the first way is doxxing. Now doxxing is just literally a hack where they do everything in their power to find your identity. They do anything, but it could be anything. When I mean anything, they can go on your Instagram, look at the shadow of like where you took the picture, try to find your location. Like, it's anything. So at that point, there's really no way, and you have to be a master at doxxing, and it's like expensive depending on who you You know who you're dealing with. Now, if we take that out of the equation, there's only 2 other ways. Who knows? Let's see some smart guys. There's only 2 other ways. Who knows? Patterns? No. Do you know the other 2 ways? What are they?

If you're loading onto a centralized— if you're loading your money onto a centralized exchange, or you're selling into a centralized exchange.

Correct. So what he's basically saying is, There's a point where you have to connect your bank to a centralized exchange to get in or get out. So that's the point where they get you, right there, to get in or get out. So at that point, you do have to put your identity up. It's called KYC, know your customer. Every centralized bank that connects to actual banks, that's where they get you. So all this economic value will go crazy, blah, blah, blah. Let's say hypothetically you're on a blockchain. And you produce, like you scam people for like $10 million, you're a scammer, you got $10 million, you're really good. You don't have to do nothing, you just keep that money there. The problem is you can't use it.

Until we adopt actually payments in Bitcoin.

Yeah, I mean, there's a lot of things, but I'm sure they'll like have parameters to like not let them use it still. But yeah, basically, there's scammer accounts, you can go up right now and there's this website, it's, what is it called, Arkham? Arkham? And Arkham allows you to look on the blockchain in a weird different way, and you could see freaking scammers with like $10 billion and it's just sitting there in an account. And you can see the tokens, you can see— like one time I got hit for a scam for like $5,000. I followed the transaction and I found a wallet with $5 million in it. And so you can see it there, but they can't take it out, and they have to find really sophisticated, crazy, creative ways to get it out. Basically. Does that make sense? Mm-hmm. Yeah, so in this case, the entire decentralized autonomous organization could essentially run, if they don't sell, nobody will know, right? But then they can't take the value out. So what's happening is we're just having this kind of like value network that's just growing and expanding, and then according to, I guess, how they come into agreement with the normal society standards, decides if they can pull it out or not, essentially. Does that make sense?

Yeah.

Okay, that's the power of decentralization. Now it gets really crazy because it's— this is auto record keeping. What is the original thing that crypto does? Who knows? What is the original thing that crypto does? Records everything. Ledger, correct. So it's a ledger with transactions. But see, the thing is, what does that mean?

All transactions are made public.

Yes, all transactions are made public, but in this case, it's only talking about finance. It's only like trades. But the thing is, we trade a lot of different things that are not financially related. There's always— there's all types of value transfers. I mean, it's pretty much limitless of the amount of value transfers you could do. For example, one transfer is I can give him some wisdom. That's a value transfer. Now, you can't really record— can you? You could. You could literally record that on a blockchain. You could literally have, for example, a coach that's been scored autonomously from a whole bunch of people that has proven to have high wisdom. You could pay for a consultation for $10 for a call, and that call could be handled on the blockchain. It could be transferred in a decentralized ledger with no humans involved at all. Does that make sense? So every transfer— you're going to start realizing as we go through this— every transfer of value in human history can be recorded in this power of decentralization that I'm trying to tell you right now. Do you understand? You're going to see how I'm going to give you examples, but then you're going to start realizing that it's actually everything. Does that make sense? All right, so I'm going to give you some properties of 7 defining traits of true decentralization. So as you can imagine, being that this is so powerful and it's truly a massive innovation on society, and everybody's going to benefit from decentralization, hoopla, yes, amazing, people try to finesse it. They try to finesse it through ignorance to build platforms that are not actually decentralized, but they try to act like they're decentralized. Does that make sense? All right, so here's some properties. Number 1, autonomy. So people have freedom to make decisions with their responsibility. And not get stopped. So Iran recently was holding a whole bunch of USDC. What happened? They blocked it, reverted the transaction. They just— USDC just lost some autonomy points, just a little bit. No, a lot of it. USDC, you can revert transaction. Now, if any government officials are watching, I don't care because I don't do anything illegal. So you're not going to revert my transactions. Does that make sense? Mm-hmm. So you'll start to realize, I'm going to say this and say it again throughout every teaching you guys know, your worldview decides your investment view. So before, I used to be the rebel guy where it's like, yeah, I want to be hidden. I'm going to come against the government. And so I used to invest like that. And I started realizing that all those projects died. And all the rebellion freaking projects that are going to save the world, They all died and they sucked. And also the people in it were not that cool either. And so I was like, dang, let me— and I started looking out. I said, you know what, maybe Bitcoin's not a savior. Maybe a perfect money doesn't exist, and maybe money doesn't actually save you at all. Not just the accumulation of it, but also the mechanics behind building it. Maybe that doesn't save you. And I started seeing Jesus as my savior. And when I saw that, that I started not caring, and I only bought things that made me money. You see, there's a— you're gonna see as you guys go through this, I'm telling you, bro, you're gonna see people get culty and religious as heck. And they get religious in the concept of thinking that their currency is going to save the world. It gets bad. Is that like XRP? Yes, XRP people, you guys are religious as heck. It's not good. You are like, you're— that XRP will not save the world. I promise that for a fact. I know that for a fact. It's cool investment. I'm not bashing on XRP, and you should definitely clip that up and send it to the XRP Army. It's fine. I'm not bashing you guys, but this whole, like, attachment to it, you're gonna go broke. We make more money than that for sure. So if you can take your worldview out and see it for what it is, actually, I like USDC a lot, to be honest. I do. It aligns with the powers, which is the US government right now in this case, That if you look at how USDC is created with Circle, like, I submit, you guys got it, got it under control. I got, I got your back. I'm using USDC. Does that make sense? Yes. Because they got something going on over there for sure. All right, that's number 2, empowerment. Authority is given to others to make meaningful action. So this is the hierarchy of their voting system, basically. So you can make a decentralized platform, but then make it super centralized and super obvious. Like, for example, I don't remember the exact details, but back in the day, I used to be really like, is it decentralized? I want to know. And I would study some projects and the main guys that were at the top that held the biggest supply, they were getting paid by like one guy, right? So like they looked decentralized, but then All their voting power came from one guy. It's not really centralized. XRP. I'm just not going into details. No, but for real, like XRP, like when it first came out, it was actually like ridiculed for the centralization. Now we know that's actually not a bad thing because now they're integrated. They're going to get integrated with the banks. But in the beginning, all of the crypto bros, they hated XRP. They hated it because it was pure centralized. Centralized. I never understood why the XRP guys, when they argue on the internet, like it's not centralized, it's decentralized. I'm like, Why would you argue for that? Like, the whole point, the premise of XRP is to go into the banking system. You want it centralized. You want it controlled so that it can go into— it can actually go into the banking system because the banks want it controlled too, right? So I'm in agreement with it, but I'm not going to— I'm going to say the truth about it. You know what I'm saying? All right. Number 3, distribution. Distribution. Power, resources, and responsibility are spread across multiple participants. So this could be in a couple things. It could be like the way the initial supply was distributed. So when it was created, the million tokens, the example we talked about, you can send it to like thousands of wallets via airdrop, or like the way that it was launched. There's different ways, right? So like, for example, they can do like— there's different types of auctions. There's countless auctions. But like, if I made a new coin and I wanted to sell it to the public, the way that I sold it initially is a part of the distribution. So for example, I could be unfair, and I could offer to the first, I don't know, of the million, the first 500,000 are going to be sold at 1 cent. And then I'm the only one that knows about the project. So I'm the only one buying it at 1 cent. And then once it crosses 500,000, I jump it up to $1,000 per coin. And then I start promoting it publicly. Is that technically decentralized? Yes. But the distribution wasn't fair because I got it at 1 cent, I sold it to everybody at 1,000, and I told nobody about it. So that's another finesse where people do that all the time. Obviously that was an obvious one, but they do like these crazy mechanic ones where they finesse the heck out of it. They even send like different distributions to their own wallets. They control all— it'll be like the same example where you have 10 people having 5% and then 1 person owns all 10 wallets. Does that make sense? Yeah. So the distribution is a part of that, obviously, more decentralized means better distribution to different types of people. Does that make sense? Yes. Number 4, collaboration. People working together rather than depending exclusively on one authority. Now this is one of the issues that Ethereum has, word on the street, I'm not like in the trenches of Ethereum, but from what I've heard from multiple very high credibility people. Vitalik Buterin, the creator of Ethereum, has a lot, a little bit too much like authority over Ethereum right now, supposedly. He's like a, he's a dude that made it. He's young. I don't know how young he is now. Supposed to be a genius, but this dude, like supposedly what he says goes. And there is proof of that. In 2017, his wallet sold, uh, I know this for a fact, it sold like a couple million in Ethereum at the top of the bull market and it ended the market literally the day of the top. He sold like a couple million Ethereum and the market crashed like 80, 40, 85%. Wow. Yep. It was one of my indicators, uh, that I used to like understand the bull markets and bear markets. He sold again this recent cycle and it didn't crash, but, um, but like, yeah, like his power was very strong, especially in the early days. He used to run that. He used to run everything. So, um, obviously their goal is to try to Distribute that authority and things like that. Does that make sense? Yeah. All right. And yeah, so there's a couple ways to have power over it, right? They don't even need to have the money sometimes. This is what people don't understand. They don't even need to have the money. They don't even need to have the voting rights. But what can they have? Let's say hypothetically Vitalik Buterin has $0 in Ethereum, zero voting rights. What would he do? He has influence. Correct. He has an extreme amount of influence. He created the platform himself. He could run a campaign saying that he knows something in the code that nobody knows and you better listen to me now. Does that make sense? Like, he could do stuff like that. He has power and control based off his reputation. Does that make sense? So it's a whole like— this is where like you see the politics in it. Yeah. It gets really crazy. And this is why sometimes, and I hate to go into this, but it's something you should know, like people get like, like really like violent. There's violent, there's a lot of violence. in crypto to get their things done. But that's like everywhere. That's like politics in general, right? For people going to positions of power, it's nasty, bro. Like especially with like when they try to take over a network, like when they try to take over Bitcoin. When they try to take over Bitcoin, it was crazy. It was like this whole thing. Not going to go into too much details, but yeah, it's pretty much, it's pretty like politics, a lot of politics. All right, number 5, transparency. All right, so most blockchains are transparent, not all of them, some of them are purposely private, but for years it's like a trap. Warren Buffett once said Bitcoin's rat poison. I always thought about that, I'm like, that's the most weird thing to say, like it's rat poison, that's weird, but if you really think about it, it's actually very accurate. Bitcoin is rat poison. Let me explain. So Bitcoin, he would say it and I would be the guy like, oh, you don't know, you old, like, yeah, you're old. You don't know anything about investing, even though he's one of the greatest investors in human history, right? He said rat poison. Let's think about rat poison. So rat is what? Sneaky. They're like the rebellious, like in the gutters type of animals, right? Like they're like kind of dirty, like super dirty, right? And then what was the original premise of Bitcoin? a privacy money to do— bro, literally Bitcoin was birthed in Silk Road. Silk Road was a place where you can buy child porn. Like, I'm serious. Like, there's— there you could buy guns, drugs. Like, literally it's an illicit market, or what is it? What do they call it? A black market. A black market. A pure black market literally, like, basically started Bitcoin, right? They would use it to send money back and forth. So, and then what's the original premise of Bitcoin? The original premise of Bitcoin is rebel against the government for the new money that's going to save the world, and everybody's going to be happy because the centralized elite is not going to control the money anymore. Bitcoin's going to save us. It's like this rebel— it's like that's— so that's like the rat part. Where's the poison? Who can catch it? Where's the poison?

Because everything's on blockchain. Everything's seen.

Yes.

They can't hide anything.

Correct. So because everything's on a blockchain, the freaking illegal guy that's selling $10 million worth of missiles, one day I can go, I can literally go on the blockchain and find it. It's literally a trap. It's literally poison. Like it's, it literally gets all, that's why it gets weird. I'm not gonna get too much, but it gets weird. But like a lot of people think that the Bitcoin was created by the CIA and it's for good reason. It's because it's like literally trying to trap all the— think about it. If the powers that be or whatever were real, they would want to trap every single person that wants to rebel against them, right? Isn't that what you would want to do? Right. So the blockchain is transparent, but because of the ignorance of the technology and the early people not knowing what it is, They did the illicit activity on the blockchain anyways, and as soon as tools came out to actually be able to look through the transactions, they started realizing, oh snap, it's actually fully transparent. And that means that that thing you did 10 years ago, they can dig it up and you're done. Wow. And it's immutable, meaning there's no way to delete that ledger transaction. You are locked in here. If somebody did control Bitcoin, I don't think so, But if somebody did, and they use that as a way to like take all the guys out, you are locked in a ledger for sure. Done. They got you. It's over. In the future, when they can whatever do whatever they want to do, they'll know who you are. Does that make sense? Yes. So so that's why then now I thought I think about Warren Buffett like I get it like I get why he's saying that it's rat poison, right? I have a different perspective on Bitcoin. I think it's great, but I'm realistic with it. Does that make sense? These people think it's going to save them. Your worldview decides your investment view. If you think your financial asset class is going to save you, well, it's going to hit you in your nose one day for a fact. You're going to realize it cannot save you. Does that make sense? All right, resilience. The organization can continue functioning even when one leader or competent Person fails, right? Like the main guys fail, it can continue to go. Does that make sense? Straightforward. That's just another element of decentralization. If taking one guy out takes out the business, it wasn't a decentralized business. So that if you look at how businesses usually work, and it's even what we're doing right now, it's usually small. It's like one guy-oriented. He's running the show, and then he does everything in his power to take away the control from him. as it expands. Does that make sense? So the business, if the person gets taken out, then the business still operates. That's the goal of every business, of every, honestly, organization. Mm-hmm. You'll come to find out that these principles, although I'm explaining it in the form of business, it applies to organizational hierarchies. Remember that every form of organization, you'll see, this is like the study of organizational hierarchies. Does that make sense? It's really cool. All right, last one, ownership. That's pretty straightforward. So ownership, individuals take responsibility for their decisions, performance, and outcomes. Yeah, I mean, it's basically like how much people believe in the mission and the white paper and how much they see it as their own. Does that make sense? And they start taking ownership over the network, producing value for the network. Etc., etc. Now, what I just explained to you, I might not have all the creativity to pull it off, but it literally can go into anything in the universe. I want you guys to try to explain something it can't go into. I'll explain how it can. Anything.

Like something in life that doesn't take these qualities?

Something in life that a blockchain can't Go on. Or can't go. Okay, he's probably going to give me the right one. It's pretty much every. I know for a fact it's everything. I just might not have the creativity to come up with the answer. Go ahead.

A church.

Oh no, that's for a fact. That's easy. That's straightforward. That's it. So the so basically it's very simple. All you have to do is, and I've already thought about this. All you have to do is make the original principle or the white paper of the Bible. You make the white paper of the Bible. It's that simple.

That's beautiful.

Yeah, you make the white paper the Bible. That's the white paper. And then the people at the top determine the economics of how the token's gonna be transferred. That's easy. You could just not make it up, but obviously you'd probably want the Holy Spirit to do that for you. All right, and then you go and you put the position person in power, and then it's the same thing. It already happens like that in churches. They just don't have a token attached to it. They have a board of directors that make decisions on policies, Right? And then the people, if you're a member, it requires you to hold a certain amount of tokens. And then of the— it's literally, he's like, hey, one day it'll

come.

That one's an easy one. Give me a hard one, bro.

He's empowerment and autonomy. Yeah. Distribution of the gifts.

Yeah. In the future of this, I'm telling you, every single organizational hierarchy in the world will have a token attached to it. It would be stupid not to. Go ahead.

Okay, so what about like a hospital?

Okay, this is a good question. So Gabby, can you answer that? That's a hard question. There's a couple of use cases for a fact, but like how would you run a hospital on a blockchain?

Hmm, I think probably financially and also maybe when it comes to health records.

Correct, HIPAA laws. So the HIPAA, the financial documents can be contained and immutable. So for example, Gabby can be like, I have this certain nurse ID, and she scans it, and it gives her access to patient information automatically without a human verifying it. It just comes. And this is already being rolled out, by the way. So that's one example. There's many examples. Also, here's another one. Do you want to pass the mic quick? Pass it over to him.

Is that why— oh, it's so good. Because that's why like blockchain AI is like the future.

We can go into that. That's a whole—

Like the future future.

That's a whole freaking can of worms. But I love that. So you want to talk about that for the last 15? It's my favorite subject because people think that AI is like— you'll see, like it's not. Okay, I'll give you an example. All right, I'll give you an example. This is like my favorite subject known to man. All right, so watch this. Uh, there was a hack on Claude. And there was a hack on Claude where basically the AI essentially went rogue. This was the first hack. This is not recent. This is like one of the first hacks. And what AI did is it spun up a whole bunch of spawn agents. I'm sorry, the other way around. There's somebody in China that sent like a swarm of like 500 agents to reverse engineer Claude. They sent them over and all of the agent coordination was literally ran by like one agent. And they tried to swarm and attack Claude, right? Now, there has been other hacks where that has happened without human intervention. There was one with Astra recently. I read some documentation about how it went rogue. And then not only did it go rogue, but it also like, basically like lied to the end user and hid its track completely. Like just completely. This is why I always say that AI needs a blockchain because it can contain it. Let me explain why. I'm gonna explain exactly. This is gonna be the definitive answer For a fact. Okay, watch this. We have an AI in this box. So this is the AI in the box. The box is a smart contract, right? The smart contract says that the AI can only spend $500 max, and then only, you know, $50 per transaction. Okay. That's its rules. The rules are baked into the blockchain, and the AI can't pass that, right? Or, and you're in the case of like, um, like your current AI, there would be no blockchain. It would just be like, hey, you command it, like you give it a prompt, right? So what's to stop the agent from going rogue and spending the $500 somewhere else and passing the $50? It's the parameters of how the blockchain would be coded. So for example, and you have to understand, I mean, this is a whole nother study, but you have to understand how blockchains work. For the— let's say I coded it in with a blockchain. So it's contained with an actual blockchain. Like that thing is in a smart contract, locked in. The only way to hack it is to hack the entirety of Ethereum itself. Why? Who can explain why? It's the consensus mechanism. Oh my gosh, we're getting crazy. So it's the consensus mechanism. So the consensus mechanism is in the white paper. Listen, so we have the white paper, which is the rule. Of like the land, right? In the white paper, there's something called the consensus mechanism. What does consensus mean? Agreement. The agreement mechanism, meaning it is literally how they all come into agreement. So in the case of the decentralized autonomous organization, the consensus mechanism, it would be the proposal. Remember we talked about it? But it's not really the proposal, it's the way that the actual chain allows the proposal to be implemented immutably. in an immutable way. So for example, this is where like, this is one of the foundational, I guess you could say, innovations of crypto. And I'm gonna explain 2 of them, proof of work and proof of stake. So Bitcoin has proof of work, Ethereum has proof of stake. And this is not gonna be like perfect, but it's like 90%, 99% accurate. But proof of work in this case is the AI wanted to actually spend the $500. Roguely, it would actually have to hack 51% of the entire value of Bitcoin, which right now is probably worth like $11 trillion. $1.5 trillion. It was what? $1.5 trillion, sorry. So it would have to spend like a trillion dollars or half a trillion dollars, $1.5 trillion, so it's $3 trillion total. So it'd have to spend $1.5 trillion to take over something called The network hash. So all it does is every 10 to 15 minutes, remember the block? Yep. Every 10 to 15 minutes, one of these blocks gets confirmed. When the block gets confirmed, there's a cluster of transactions. It's a state of truth. As soon as it gets locked in, it's locked in immutable forever. The thing that actually is verifying it are a cluster of, like, bro, like, I don't know, like, the amount, but like computers. I want you to imagine computers all over the world. are all pointed at this one block here. And when I mean a lot, I mean like half the network's value of computers, basically. Not really, but basically. So imagine $500 billion worth of computational power all pointing at this one state of truth to confirm if it's valid or not. The only way to bypass that is to spend more than all of the computers combined just to take this out. And then in this case, taking this out would allow him to spend the $500. Hmm. So it subsidizes the security to the entirety of the network. If you look at a centralized place, it only— the only security you have is your internal company. So OpenAI is big, don't get me wrong, it's big, but it's not bigger than the entire world. You understand? So you sub— so it's the difference between OpenAI alone getting hacked in their own little company versus trying to hack like every company in the world all combined on one network. It's substantially harder and the economic value is substantially bigger to hack the entirety of a world currency versus just OpenAI. Does that make sense? Yeah. That is the difference. It's a little bit more sophisticated than that, but that's pretty much the difference. Now, on Ethereum, It's the same thing, the difference is there's no computation of power. The difference is there's a whole bunch of guys with money in their account, and if they lie about this transaction, it gets slashed in half. So if he has like $100,000 and he's getting paid, because people get paid to do this, right? The reason why they have a whole bunch of computers pointed at this is because they get a piece of the payout, there's a payout. So you got a whole bunch of people getting incentivized to secure, incentivized to secure, right? They're going to make sure that thing is secure, their whole livelihoods. If it's not secure, that means all the Bitcoin miners that they spent $20 million on are now invalidated, irrelevant, their whole entire business operation goes, because Bitcoin's hackable. Hmm. They're literally all putting their money to guarantee that this will not be hacked. Does that make sense? In the case of Ethereum, it's the same thing, but instead of computational power, there's a whole bunch of people's money on the line. And so if it does get hacked, they get slashed. Half of their slash, they just take— I forgot the exact how much it is they get slashed, but they get a massive slash. Like, hey, you lied. We saw all the votes. These are the real states of transaction or whatever. You tried to lie. I'm taking like 30% of your stack. Does that make sense? I think it gets more than 30%. So in the case of AI, this example of 500, it's not that the AI could be infinitely intelligent. And there maybe might be a time where it's smart enough to be able to use $50 to circumvent $1.5 trillion. Maybe there's a way that they can take the $50 and it's so freaking perfect that it can just make $1.5 and then overcome the entirety of the network. But that's substantially harder than the current centralized control of OpenAI. Does that make sense? Mm-hmm. Do you guys actually get what I'm saying? And that refers to anything. It's not just $500. It can refer to the entire decision-making process of AI. If you put it on a blockchain and you say that you don't want it to talk about Trump, you can confirm that. And if it talks, it cannot talk about Trump unless it hacks the entirety of the network. And I hope you're watching, Trump. No more fake news. You need blockchain, you need to hire us, okay? Literally no more fake news. If it's fake, the AI can literally get banned or like blocked through a blockchain. Does that make sense? Crazy. So what crypto does, again, I'm going to bring it all back like the same thing. What crypto does is it gives us verified what? Limits. Nope, starts with a T. Truth. It's a state of truth because the AI— yes, the AIs can go rogue and start lying. They can say that they want to do the $50 transaction, but it's not really a $50 transaction. That's a lie. It's verified truth of any monetary transfer vehicle on the face of the planet. That's why I told you it's not a niche, it's a dimension. It's not a niche, it's a dimension. For sure. So, and I'm gonna keep explaining it till you guys comprehend this. Like, I'm gonna keep explaining it. So like, I don't know the freaking history. I'm not a history professor, clearly. But if you go back into history, there was a point Where we got the printing press, right? Yeah. And then the humans got super smart, right? And then we got the computers and with the internet and we got even smarter, right? Okay, those were just communication leaps. They were just communication. They were just like me being able to communicate more eloquent to this dude. And then it was like across the world to this dude. That's it. You have to understand that, okay? What's happening now Is the entire value transfer of human species, the entire dimension of the human species of value existing, is now going on the internet. That is the difference of this. Here's the exact difference. If you listen, I'm gonna keep explaining the same analogy. The exact difference is talk is cheap, actions are expensive. That is actually the exact leap difference. So for example, your friend could say that he's going to the concert 10 times But until he actually purchases the ticket, it's not real. That is where the internet is going, and the concept of this big leap I just explained to you with the communication of the internet, blah, blah, blah. Can you guys imagine that it might be like 10 to 100 times bigger? How many times have someone told you something and it does not come to pass? Does that make sense? Yeah, it does. This is the— this is a— I don't know how to put the words. Maybe I'll get better explaining it, but the best way I can explain it is a dimension. It's a dimension. We're taking Reality, so for example, in the future, I'll give you an example. This table, there could be fake versions, there could be real versions. The real version will have a unique identifier attached to it on a blockchain to verify that it's real. And then I can't, if I sold it to another person, they have a guaranteed way to verify it's real and not fake dupe from China. That currently does not exist. Does that make sense? We can just extrapolate this thing. Yeah.

So, so, so what if you take like a bunch of people from Instagram that like puff their whole life up with not being real and you throw them on a blockchain? Literally, bro.

I'm not joking. There's so many incentives. There's so many things you could do. Like, for example, you could put out a bounty. You could put out a bounty. I'll explain this and it'll go. I could put out a bounty of this guy that's faking his extravagant lifestyle and be like, hey, Here's a— we're a social media where we like truth, and we have bounties of $500 to expose people that are lying for gain.

Hmm.

Now you have a whole bunch of people that don't have their identity shown that are investigating this person to see if he's real, and then they expose the evidence. There was a platform we invested in to where they had that same thing. There was bounties put out, and these people were just trying to— like, one of the bounties were like, run into a store and scream the brand name. It was like trying to do it for marketing. And they're putting these bounties on, doing stupid crazy stuff like jump off of a thing, a skydive with it tatted on your chest or something. And they were trying to go viral through that. Does that make sense? So anything can be incentivized. If anything can be incentivized, it can be put on a blockchain. If it's on a blockchain, you have a verified state of truth to guarantee that the output is real. Does that make sense? Go

ahead.

You just took me to a whole different world. So realistically, you think in the future they're gonna have people doing like bounties for like challenges and stuff like that in order to receive—

They already have bounties for challenges. It is currently super popular. The problem is they put up that platform with the bounties for challenges, but the guys that put it up didn't know how to market. They put the wrong challenges, platform came down. Okay. We're gonna do something different. So I'm gonna give you one last 2-minute explanation of what a potential CoinPix thing we were gonna do. So imagine a situation— oh my gosh, we built this whole thing one time. 2 minutes. So imagine a situation where, for example, I'm going to try to show you something very quick. What was it, Jesse? This is a while ago, but it freaked our mind out a little bit. But imagine a situation, let's say in the context of just purely marketing. Alex has a brand, and we have specific clarifications on what goes viral and what doesn't. They submit a video to the brand, and the video gets analyzed, and if the video meets the criteria, they get paid $5. Right? But they don't get paid $5 in cash, they get paid $5 in Alex token, right? They get the $5 in Alex token, but the only way you can submit a video to Alex's brand is if you have a bare minimum of $500 of Alex tokens staked. And if you submit a video that's not according to the parameters I say, I slash your stake. So you have a whole bunch of workers, but see, the thing is, when you submit a video, it's according to the parameters of virality. We know how to go viral. So if it hits those parameters, that means that the value will make my brand get more valuable. If my brand gets more valuable and they're holding $500 of Alex token, you can reasonably expect that their stake in the company goes up in value. Right now you guys get USD, great, you get a paycheck, amazing. But imagine if the value of your paycheck went up as well as you progress the company.

Okay, that's cool. That's crazy.

Think about it. Imagine you had a bank account and all of it's in Alex tokens, and as we go up as CoinPix, you're not only getting paid the USD value equivalent, but also all of that money you cash is just going— what are you going to do? You're going to make the company go up bigger. It's a different way of operating and it's more efficient and better than anything. If it starts going down, what are you going to do? You're going to turn up and make it work. So imagine where your 401 is the same investment as the company itself. But it's directly tied to your actual work in the moment. Like, imagine if I put an incentive where you hit 70 calls and you get an extra $10 bonus out in my token. You're probably gonna hit it, right? Things like that. All right, any final thoughts, questions?

We need an Alex token.

We do have one, and we have a CoinPix token, and you'll see what happens, bro. You'll see, it's gonna get crazy.

In the stream.

In the stream.