Vitalik Buterin is co-creator of Ethereum and ether, which is a cryptocurrency that is currently the second-largest digital currency after bitcoin. Ethereum has a lot of interesting technical ideas that are defining the future of blockchain technology, and Vitalik is one of the most brilliant people innovating this space today. Support this podcast by supporting the sponsors with a special code: - Get ExpressVPN at https://www.expressvpn.com/lexpod - Sign up to MasterClass at https://masterclass.com/lex EPISODE LINKS: Vitalik blog: https://vitalik.ca Ethereum whitepaper: http://bit.ly/3cVDTpj Casper FFG (paper): http://bit.ly/2U6j7dJ Quadratic funding (paper): http://bit.ly/3aUZ8Wd Bitcoin whitepaper: https://bitcoin.org/bitcoin.pdf Mastering Ethereum (book): https://amzn.to/2xEjWmE This conversation is part of the Artificial Intelligence podcast. If you would like to get more information about this podcast go to https://lexfridman.com/ai or connect with @lexfridman on Twitter, LinkedIn, Facebook, Medium, or YouTube where you can watch the video versions of these conversations. If you enjoy the podcast, please rate it 5 stars on Apple Podcasts, follow on Spotify, or support it on Patreon. Here's the outline of the episode. On some podcast players you should be able to click the timestamp to jump to that time. OUTLINE: 00:00 - Introduction 04:43 - Satoshi Nakamoto 08:40 - Anonymity 11:31 - Open source project leadership 13:04 - What is money? 30:02 - Blockchain and cryptocurrency basics 46:51 - Ethereum 59:23 - Proof of work 1:02:12 - Ethereum 2.0 1:13:09 - Beautiful ideas in Ethereum 1:16:59 - Future of cryptocurrency 1:22:06 - Cryptocurrency resources and people to follow 1:24:28 - Role of governments 1:27:27 - Meeting Putin 1:29:41 - Large number of cryptocurrencies 1:32:49 - Mortality
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Vitalik Buterin, the founder of Ethereum, discusses the significance of decentralization within his project, and the differences between Bitcoin and Ethereum in regards to their founders. He values open collaboration and encourages multiple decision makers and software implementations within Ethereum.
This episode explores the concept of mass beliefs and the impact they have on society, despite being sticky and not fully understood through rationality.
The power of anonymous collective resources is being utilized to fund public goods through mechanisms like quadratic funding, where people pool their resources to contribute to a public good like the planting of trees.
The consensus mechanism in blockchain is designed to ensure that all copies of the database are in sync with each other. The mechanism is like a voting system in which every block created is voted on by multiple nodes to determine the true state of the database.
The crypto industry is preparing for the eventual need to use quantum-proof alternatives to current encryption methods, which will require a thousand real qubits per logical qubit. In the meantime, the industry is using ASICs to perform the computation for proof of work.
The crypto world is not immune to the challenges of managing large projects, such as infighting over a project's structure, profit status, and financial contracts, despite the well-intentioned nature of most people involved.
Proof of stake is an alternative to proof of work, where participation is limited to the user's ability to lock in a certain amount of coins in the system, rather than solving mathematical puzzles. This mechanism has been proposed as an alternative for more efficient and eco-friendly blockchain participation.
Implementing ETH 2.0 involves coordinating various groups of people to interpret and implement the specification, as Ethereum Foundation handles research in-house, while independent teams in different regions are responsible for the actual implementation. The process consists of two phases, phase zero and the merger phase, which involve the creation of a proof stake network and inclusion of the existing ETH 1.0 network into ETH 2.0, respectively.
Cryptocurrencies bring global neutrality, ensuring they are always available for use in situations like high inflation, major trade disruptions, or when countries face cuts from other financial systems. Although stablecoins exist, allowing tokens to retain value equal to $1, challenges still exist, but cryptocurrencies supply can absorb more volatility by changing supply when demand is needed.
The speaker suggests that without government regulation, centralized digital currencies would be issued left and right by companies like Google and Facebook, but wonders if the government can be a cautious friend rather than an enemy of digital currencies. Decentralized currencies may still appeal to some, but would likely appeal to fewer people without government regulation.
The transcript discusses the range of people who create cryptocurrency, from scammers to those who are successful, and whether Putin and his ministers understand or think about blockchain technology. The transcript also mentions the potential dangers of AI and the need to address control and alignment problems.
The speaker talks about the importance of having a fulfilling life with friends, meaningful challenges, and interesting work in order to make a move. The text also includes an advertisement for Masterclass and ExpressVPN.