WEBVTT 1 00:00:01.122 --> 00:00:03.096 By now, you've probably heard about blockchains 2 00:00:03.096 --> 00:00:05.389 and how they're driving banks, venture capitalists, 3 00:00:05.389 --> 00:00:08.556 and crypto-libertarians into a frenzy. 4 00:00:10.136 --> 00:00:12.419 Maybe you've seen explainer videos with stacks of blocks 5 00:00:12.419 --> 00:00:15.789 or sci-fi spiderwebs overtaking the planet, 6 00:00:15.789 --> 00:00:18.541 but just forget about all that for a second. 7 00:00:18.541 --> 00:00:20.609 line:15% The important thing to remember about blockchains 8 00:00:20.609 --> 00:00:23.520 line:15% is that they make it harder for digital data to go rogue. 9 00:00:23.520 --> 00:00:25.667 Digital information likes to be free, 10 00:00:25.667 --> 00:00:27.736 just ask the recording industry. 11 00:00:27.736 --> 00:00:30.115 Once a file is created, it can be copied, modified, 12 00:00:30.115 --> 00:00:33.635 and quickly develop a wild social life all its own 13 00:00:33.635 --> 00:00:35.032 and before you know it, you're looking 14 00:00:35.032 --> 00:00:37.048 at a photo of kitties on the moon. 15 00:00:37.048 --> 00:00:38.584 Digital data's libertine tendencies 16 00:00:38.584 --> 00:00:40.536 encourage companies to hoard it. 17 00:00:40.536 --> 00:00:42.423 That's why the simple idea of digital currency 18 00:00:42.423 --> 00:00:43.981 took a long time to figure out. 19 00:00:43.981 --> 00:00:45.293 Blockchains are promising because 20 00:00:45.293 --> 00:00:47.384 they can make data you can trust. 21 00:00:47.384 --> 00:00:49.059 The trick is to bind that data 22 00:00:49.059 --> 00:00:52.237 into a strict framework of rules using cryptography. 23 00:00:52.237 --> 00:00:56.088 A blockchain creates a kind of shared record or database 24 00:00:56.088 --> 00:00:57.709 with each peace of data secured 25 00:00:57.709 --> 00:00:59.224 with its own cryptographic keys. 26 00:00:59.224 --> 00:01:02.658 Only people with the right digital keys can add data to 27 00:01:02.658 --> 00:01:05.507 the blockchain or modify information that's already there. 28 00:01:05.507 --> 00:01:08.076 You can get the upside of the internet, like speed and 29 00:01:08.076 --> 00:01:11.586 transparency, without the downsides, like rogue data. 30 00:01:11.586 --> 00:01:13.283 Digital currencies like Bitcoin 31 00:01:13.283 --> 00:01:15.725 use blockchains to prevent counterfeiting 32 00:01:15.725 --> 00:01:18.008 and because computers belong to many different people 33 00:01:18.008 --> 00:01:20.034 enforce the rules, no one is in charge 34 00:01:20.034 --> 00:01:22.275 and there's no need for a central bank. 35 00:01:22.275 --> 00:01:23.992 Companies can use blockchains to create 36 00:01:23.992 --> 00:01:27.437 a safe space to share data and collaborate with competitors. 37 00:01:27.437 --> 00:01:28.909 That could mean faster and more 38 00:01:28.909 --> 00:01:30.584 transparent financial transactions, 39 00:01:30.584 --> 00:01:32.888 less identity theft, and easier ways 40 00:01:32.888 --> 00:01:34.541 to share your medical records. 41 00:01:34.541 --> 00:01:36.568 Some food companies are even using blockchains 42 00:01:36.568 --> 00:01:38.979 to be more transparent about their supply chains, 43 00:01:38.979 --> 00:01:41.420 which could help avoid outbreaks of foodborne illness. 44 00:01:41.420 --> 00:01:42.765 I'll be honest with you, a lot of 45 00:01:42.765 --> 00:01:45.485 blockchains applications can sound kinda boring. 46 00:01:45.485 --> 00:01:47.320 They're about making accountants happy 47 00:01:47.320 --> 00:01:49.080 by making things a lot more efficient, 48 00:01:49.080 --> 00:01:50.710 but some use cases are more radical. 49 00:01:50.710 --> 00:01:52.312 Digital currencies are being tested 50 00:01:52.312 --> 00:01:53.635 as a way to help people not served 51 00:01:53.635 --> 00:01:55.554 by conventional banks, like refugees. 52 00:01:55.554 --> 00:01:57.400 The gemstone industry is testing a blockchain 53 00:01:57.400 --> 00:01:59.243 to prevent sales of blood diamonds. 54 00:01:59.243 --> 00:02:00.822 Blockchains might even make it possible 55 00:02:00.822 --> 00:02:02.925 to safely allow people to vote over the internet. 56 00:02:02.925 --> 00:02:04.920 So, those are blockchains, digital data 57 00:02:04.920 --> 00:02:07.052 you can actually trust, and remember, 58 00:02:07.052 --> 00:02:09.552 don't worry about the blocks.