Episode
#244: The Quiet Master of Cryptocurrency -- Nick Szabo
2:34:36
Published: Sun Jun 04 2017
Description
Nick Szabo (@NickSzabo4) is a polymath. The breadth and depth of his interests and knowledge are truly astounding. He's a computer scientist, legal scholar, and cryptographer best known for his pioneering research in digital contracts and cryptocurrency. The phrase and concept of "smart contracts" were developed by Nick with the goal of bringing what he calls the "highly evolved" practices of contract law and practice for the design of electronic commerce protocols between strangers on the Internet. Nick also designed Bit Gold, which many consider the precursor to Bitcoin. This wide-ranging conversation is co-hosted by Naval Ravikant, a mutual friend and one of the most successful investors in Silicon Valley, who also happens to be one of Nick's biggest admirers. We cover a lot, including: What is Bitcoin, what are cryptocurrencies, and what problem do they solve? What is "social scalability?" What is Ethereum and what makes it unique? Strengths and weaknesses? How will smart contracts actually get adopted or go mainstream? What are ICOs (Initial Coin Offerings)? Blockchain governance -- is there any existential risk? "Wet" versus "dry" code Pascal's scams Quantum thought What fields will you be working on in the future? Show notes and links for this episode can be found at www.fourhourworkweek.com/podcast. This podcast is brought to you by FreshBooks. FreshBooks is the #1 cloud bookkeeping software, which is used by a ton of the start-ups I advise and many of the contractors I work with. It is the easiest way to send invoices, get paid, track your time, and track your clients. FreshBooks tells you when your clients have viewed your invoices, helps you customize your invoices, track your hours, automatically organize your receipts, have late payment reminders sent automatically and much more. Right now you can get a free month of complete and unrestricted use. You do not need a credit card for the trial. To claim your free month and see how the brand new Freshbooks can change your business, go to FreshBooks.com/Tim and enter "Tim" in the "how did you hear about us" section. This podcast is also brought to you by Audible. I have used Audible for years, and I love audiobooks. I have two to recommend: The Graveyard Book by Neil Gaiman Vagabonding by Rolf Potts All you need to do to get your free 30-day Audible trial is visit Audible.com/Tim. Choose one of the above books, or choose any of the endless options they offer. That could be a book, a newspaper, a magazine, or even a class. It's that easy. Go to†Audible.com/Tim and get started today. Enjoy. ***If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes? It takes less than 60 seconds, and it really makes a difference in helping to convince hard-to-get guests. I also love reading the reviews!For show notes and past guests, please visit tim.blog/podcast.Sign up for Tim’s email newsletter (“5-Bullet Friday”) at tim.blog/friday.For transcripts of episodes, go to tim.blog/transcripts.Interested in sponsoring the podcast? Visit tim.blog/sponsor and fill out the form.Discover Tim’s books: tim.blog/books.Follow Tim:Twitter: twitter.com/tferriss Instagram: instagram.com/timferrissFacebook: facebook.com/timferriss YouTube: youtube.com/timferrissPast guests on The Tim Ferriss Show include Jerry Seinfeld, Hugh Jackman, Dr. Jane Goodall, LeBron James, Kevin Hart, Doris Kearns Goodwin, Jamie Foxx, Matthew McConaughey, Esther Perel, Elizabeth Gilbert, Terry Crews, Sia, Yuval Noah Harari, Malcolm Gladwell, Madeleine Albright, Cheryl Strayed, Jim Collins, Mary Karr, Maria Popova, Sam Harris, Michael Phelps, Bob Iger, Edward Norton, Arnold Schwarzenegger, Neil Strauss, Ken Burns, Maria Sharapova, Marc Andreessen, Neil Gaiman, Neil de Grasse Tyson, Jocko Willink, Daniel Ek, Kelly Slater, Dr. Peter Attia, Seth Godin, Howard Marks, Dr. Brené Brown, Eric Schmidt, Michael Lewis, Joe Gebbia, Michael Pollan, Dr. Jordan Peterson, Vince Vaughn, Brian Koppelman, Ramit Sethi, Dax Shepard, Tony Robbins, Jim Dethmer, Dan Harris, Ray Dalio, Naval Ravikant, Vitalik Buterin, Elizabeth Lesser, Amanda Palmer, Katie Haun, Sir Richard Branson, Chuck Palahniuk, Arianna Huffington, Reid Hoffman, Bill Burr, Whitney Cummings, Rick Rubin, Dr. Vivek Murthy, Darren Aronofsky, and many more.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Chapters
Summary
No coherent content or topic was discussed in the transcript.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
Naval Ravikant, the CEO and founder of AngelList, shares his beliefs on startups, investing, and how he achieves happiness.
01:32 - 08:59 (07:27)
Summary
Naval Ravikant, the CEO and founder of AngelList, shares his beliefs on startups, investing, and how he achieves happiness.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
Introduction to the concepts of public and private keys, as well as one way hash functions, which are crucial in providing security to modern cryptocurrencies like Bitcoin and Ethereum.
08:59 - 15:33 (06:34)
Summary
Introduction to the concepts of public and private keys, as well as one way hash functions, which are crucial in providing security to modern cryptocurrencies like Bitcoin and Ethereum.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The origins of money can be traced back to actions like inheritance, compensation for injuries, and bride wealth.
15:34 - 21:07 (05:33)
Summary
The origins of money can be traced back to actions like inheritance, compensation for injuries, and bride wealth. However, with the invention of blockchain and cryptocurrency, computers can now secure transactions without relying on offline wet space institutions like governments and courts.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
A discussion on the advantages of using Bitcoin and how it differs from other forms of money or commodity.
21:07 - 28:47 (07:40)
Summary
A discussion on the advantages of using Bitcoin and how it differs from other forms of money or commodity. Additionally, the complexity of defining what Bitcoin and blockchain technology are is acknowledged.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The intersection of smart contracts and the law presents both opportunities and challenges.
28:47 - 33:49 (05:02)
Summary
The intersection of smart contracts and the law presents both opportunities and challenges. While some advocate for the libertarian ideology of maintaining the sanctity of the ledger, others recognize the importance of property and contract law in our commercial society.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
Smart contracts in blockchain technology can automate the process of verifying and performing contractual deals, especially for financial conditions.
33:52 - 37:51 (03:59)
Summary
Smart contracts in blockchain technology can automate the process of verifying and performing contractual deals, especially for financial conditions. It operates based on protocols that standardize how computers exchange information with each other.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The concept of FAT protocols, which exchange and keep scarce value within the protocol, is important for ensuring accurate allocation of scarce resources, especially in the case of exchanging money in a democratized data ecosystem like Bitcoin.
37:51 - 41:58 (04:07)
Summary
The concept of FAT protocols, which exchange and keep scarce value within the protocol, is important for ensuring accurate allocation of scarce resources, especially in the case of exchanging money in a democratized data ecosystem like Bitcoin.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The possibility that out of the money investors are incentivized in regaining value by creating thin applications and services preserves the long term viability of the network after the bubble bursts.
41:58 - 49:55 (07:56)
Summary
The possibility that out of the money investors are incentivized in regaining value by creating thin applications and services preserves the long term viability of the network after the bubble bursts. Additionally, the little local tribal mobs in the cryptocurrency space are driven by the block size debate and other technical parameters.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The security of Bitcoin's network relies on its computer science layer, which requires 51% computational power to attack and prevent double-spending.
49:56 - 55:55 (05:59)
Summary
The security of Bitcoin's network relies on its computer science layer, which requires 51% computational power to attack and prevent double-spending. However, improving hardware can pose a threat to the network's security, so specialized hardware is designed and used.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The use of Proof of Work protocol in blockchain technology has been criticized for its high energy consumption, while Proof of Stake is proposed as a more energy-efficient alternative.
55:55 - 1:00:25 (04:30)
Summary
The use of Proof of Work protocol in blockchain technology has been criticized for its high energy consumption, while Proof of Stake is proposed as a more energy-efficient alternative. However, the effectiveness and security of Proof of Stake are still being debated in the blockchain community.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
Bitcoin allows individuals who may never see each other again or trust each other to securely transact with each other, not just with money, but also with coded contracts resulting in social scalability.
1:00:25 - 1:06:25 (06:00)
Summary
Bitcoin allows individuals who may never see each other again or trust each other to securely transact with each other, not just with money, but also with coded contracts resulting in social scalability.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
Investment banking may not be a wise career choice as the industry is expected to be largely automated in the future.
1:06:25 - 1:10:13 (03:47)
Summary
Investment banking may not be a wise career choice as the industry is expected to be largely automated in the future. The new finance industry could be settled where innovation for smart contracts and cryptocurrency thrives.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
In this podcast, two experts discuss the relevance of blockchain technology and its potential to dominate various aspects of finance, contracts, and law in the future.
1:10:13 - 1:15:59 (05:46)
Summary
In this podcast, two experts discuss the relevance of blockchain technology and its potential to dominate various aspects of finance, contracts, and law in the future. They touch upon the possibility of Bitcoin becoming unattainable but speculate that the likelihood of that happening is close to zero.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
In this conversation, the host talks about the cultural disconnect between traditional finance and cryptocurrency and how traditional financial people often hate the people in the crypto community and don't want to learn from them.
1:15:59 - 1:21:59 (06:00)
Summary
In this conversation, the host talks about the cultural disconnect between traditional finance and cryptocurrency and how traditional financial people often hate the people in the crypto community and don't want to learn from them.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
This podcast discusses the use of prediction markets, credit instruments, and other decentralized finance tools that allow for the loaning of funds and investments without needing traditional financial institutions.
1:21:59 - 1:28:40 (06:41)
Summary
This podcast discusses the use of prediction markets, credit instruments, and other decentralized finance tools that allow for the loaning of funds and investments without needing traditional financial institutions. One example given is the use of insurance that pays out based on estimations of damage from a flood.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The blockchain has limited capacity in terms of scaling which causes friction when transitioning from Bitcoin to the second layer for small daily transactions.
1:28:40 - 1:37:13 (08:33)
Summary
The blockchain has limited capacity in terms of scaling which causes friction when transitioning from Bitcoin to the second layer for small daily transactions. Zcash, another fork of Bitcoin allows for private transactions through different privacy routines.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The principles on which cryptocurrency operates are so different from the banking system that there is a cultural gap between the two.
1:37:13 - 1:43:07 (05:54)
Summary
The principles on which cryptocurrency operates are so different from the banking system that there is a cultural gap between the two. People in the banking system see the debates surrounding block size and the role of cryptocurrency in the future banking system as a negative development.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
This podcast discusses the reduction in computing cost and how this has led to the possibility of microtransactions.
1:43:07 - 1:47:42 (04:35)
Summary
This podcast discusses the reduction in computing cost and how this has led to the possibility of microtransactions. It explains how the use of fewer numbers and the ability to perform much smaller transactions may impact the economy in the future.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
Law school teaches students to consider both sides of an issue, which can be helpful in debates or discussions, as it allows for a thorough examination of different arguments and viewpoints.
1:47:42 - 1:53:52 (06:09)
Summary
Law school teaches students to consider both sides of an issue, which can be helpful in debates or discussions, as it allows for a thorough examination of different arguments and viewpoints. This way of thinking can help individuals in a variety of contexts, from social media discussions to formal debates.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
Although people worry about the possibility of black swans such as climate change, asteroids, or AI takeover, Nassim Taleb explains that black swan events are rare, and it is more important to invest in a few selective black swans and remain patient in order to reap long-term benefits.
1:53:52 - 2:01:35 (07:43)
Summary
Although people worry about the possibility of black swans such as climate change, asteroids, or AI takeover, Nassim Taleb explains that black swan events are rare, and it is more important to invest in a few selective black swans and remain patient in order to reap long-term benefits.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
Cameras are everywhere and face recognition technology allows for constant tracking and monitoring, eroding physical privacy.
2:01:35 - 2:06:00 (04:24)
Summary
Cameras are everywhere and face recognition technology allows for constant tracking and monitoring, eroding physical privacy. Achieving privacy in the digital realm is also becoming increasingly difficult, as exchanges can tie addresses to identities and trace transactions.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The exponential growth in computer resources lends itself to the idea of a distributed network of computers for different functions such as storage and the idea of paying people in coin on the network for doing so.
2:06:00 - 2:10:43 (04:42)
Summary
The exponential growth in computer resources lends itself to the idea of a distributed network of computers for different functions such as storage and the idea of paying people in coin on the network for doing so.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
It is contradictory to believe in both the simulation hypothesis and the singularity as the simulation hypothesis suggests that a general intelligence has already been invented at some point in time, while the singularity anticipates it in the future.
2:10:43 - 2:15:07 (04:24)
Summary
It is contradictory to believe in both the simulation hypothesis and the singularity as the simulation hypothesis suggests that a general intelligence has already been invented at some point in time, while the singularity anticipates it in the future.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The speaker discusses how investing in both long-term and short-term markets is not a get rich quick scheme and the dangers of being vocal about certain topics, referencing the Pope's lineage as an example.
2:15:07 - 2:19:50 (04:43)
Summary
The speaker discusses how investing in both long-term and short-term markets is not a get rich quick scheme and the dangers of being vocal about certain topics, referencing the Pope's lineage as an example.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The podcast episode features a discussion on the origins of money, social and genetic evolution, as well as blockchains and cryptocurrency, among others.
2:19:50 - 2:24:54 (05:04)
Summary
The podcast episode features a discussion on the origins of money, social and genetic evolution, as well as blockchains and cryptocurrency, among others.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
The hourglass was invented in Europe and provided a way for people to better coordinate their activities and adhere to schedules, leading to more efficient use of time.
2:24:54 - 2:29:55 (05:00)
Summary
The hourglass was invented in Europe and provided a way for people to better coordinate their activities and adhere to schedules, leading to more efficient use of time. This invention played a significant role in Europe's increased temporal coordination.
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
Sign up to Audible's free 30-day trial through Tim Ferriss' offer and get access to thousands of audiobooks, including his own book "Four Hour Workweek."
2:29:55 - 2:33:05 (03:10)
Summary
Sign up to Audible's free 30-day trial through Tim Ferriss' offer and get access to thousands of audiobooks, including his own book "Four Hour Workweek."
Episode#244: The Quiet Master of Cryptocurrency -- Nick Szabo
PodcastThe Tim Ferriss Show
FreshBooks is a tool that helps freelancers and entrepreneurs with time tracking, invoicing, and getting paid quickly.
2:33:05 - 2:34:29 (01:24)
Summary
FreshBooks is a tool that helps freelancers and entrepreneurs with time tracking, invoicing, and getting paid quickly. It simplifies taxes, invoices, and makes life easier for its users.