WEBVTT - Anonymous and the SovereignDAO

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<v Speaker 1>Welcome to Tech Stuff, a production from iHeartRadio. He there,

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<v Speaker 1>and welcome to tech Stuff. I'm your host, Jonathan Strickland.

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<v Speaker 1>I'm an executive producer with iHeartRadio. And how the tech?

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<v Speaker 1>Are you all right? This is going to be an

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<v Speaker 1>epic episode. I'm calling it now. And I got an

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<v Speaker 1>email from a listener named Nathan who was hoping I

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<v Speaker 1>could shed some light on something that he encountered online.

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<v Speaker 1>He was watching a video that was published by the

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<v Speaker 1>activist group Anonymous that directed viewers to something called Sovereign Doo.

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<v Speaker 1>That's DAO, and he said this felt a little out

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<v Speaker 1>of step with the group's philosophy. It felt like he

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<v Speaker 1>was being channeled toward some kind of multi level marketing

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<v Speaker 1>scheme or Ponzi scheme or something, and he wanted to

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<v Speaker 1>know more about it. And there's only so much I

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<v Speaker 1>can say about Sovereign now because I haven't joined it.

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<v Speaker 1>But Anonymous is or has put out a video. At

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<v Speaker 1>least someone in Anonymous has published a video that has

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<v Speaker 1>publicized a dow called Sovereign Dow. So this whole question

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<v Speaker 1>that Nathan has asked opens up multiple cans of worms.

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<v Speaker 1>So in this episode, we're going to cover a ton

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<v Speaker 1>of ground in order to get a full understanding of

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<v Speaker 1>what this all means. That's going to include a quick

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<v Speaker 1>review of what are not so quick review of what

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<v Speaker 1>Anonymous is and what they're all about. We'll also refresh

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<v Speaker 1>our minds on what a decentralized autonomous organization that is

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<v Speaker 1>a dow a d ao, what it is and what

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<v Speaker 1>they can do, which gets pretty broad. Will also quickly

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<v Speaker 1>explore the word sovereign to kind of get a grip

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<v Speaker 1>on why Anonymous would want to promote something called sovereign dow.

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<v Speaker 1>And I think this will start to peel way the

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<v Speaker 1>layers and let us get an understanding as to what's

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<v Speaker 1>actually going on here, how the concept of the tao

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<v Speaker 1>in general or not the doo. I should just say

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<v Speaker 1>doo because there was once upon a time a doo

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<v Speaker 1>called v doo. And also what sovereignty is and why

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<v Speaker 1>this all actually does align with at least the perceived

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<v Speaker 1>motivations behind Anonymous. You can't ever say super firm, definitive

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<v Speaker 1>things about Anonymous because the organization itself defies that is,

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<v Speaker 1>it is too amorphous to ascribe specific descriptors and say

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<v Speaker 1>this universally applies. So let's tackle the hackers who are

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<v Speaker 1>known for wearing Guy Fox masks both online and occasionally

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<v Speaker 1>in public, being called Anonymous. Now, before we get to that,

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<v Speaker 1>I'm going to explain who Guy Fox was first, because

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<v Speaker 1>if Anonymous has adopted this image, this mask, why did

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<v Speaker 1>they do that, Who was Guy Fox, what did Guy

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<v Speaker 1>Fox do? And moreover, what other element in pop culture

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<v Speaker 1>adopted the guys of Guy Fox? Because that's really what's important.

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<v Speaker 1>But we need to understand the whole picture. Context is

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<v Speaker 1>always critical, I say so, we have to actually look

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<v Speaker 1>at the early seventeenth century, the early sixteen hundreds in England.

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<v Speaker 1>Guy Fox was a Catholic living in England under the

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<v Speaker 1>reign of King James, who was Protestant. Now James's predecessor,

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<v Speaker 1>Elizabeth the First She was also a Protestant Church of England,

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<v Speaker 1>which her father established in England in order to be

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<v Speaker 1>able to divorce a woman to marry somebody else. That's

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<v Speaker 1>a whole story we won't go into. But Elizabeth kind

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<v Speaker 1>of walked a middle line between Protestants and catholic She

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<v Speaker 1>did not firmly proclaim Protestantism and oppress the Catholics, at

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<v Speaker 1>least not to huge extent, especially not considering some of

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<v Speaker 1>her predecessors, and she wanted to avoid the chaos and

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<v Speaker 1>violence that would break out when one side would end

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<v Speaker 1>up persecuting the other. Her sister Mary did a really

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<v Speaker 1>great job of illustrating what happens if a hardline Catholic

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<v Speaker 1>decides to persecute the Protestants. Elizabeth wanted to avoid that

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<v Speaker 1>kind of strife within her kingdom. James, he was leaning

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<v Speaker 1>much harder into Protestantism than Elizabeth did, And for the

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<v Speaker 1>Catholics who were living in England, who were really hoping

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<v Speaker 1>to get another Catholic monarch, or at least someone who

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<v Speaker 1>had Catholic sympathies, this did not sit well, particularly among

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<v Speaker 1>the nobility who had seen some of their a lot

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<v Speaker 1>of their wealth stripped away in the guise of religious strife, which, honestly,

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<v Speaker 1>when you look at the history of England, really comes

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<v Speaker 1>down to who thinks they can steal more of the

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<v Speaker 1>other person's stuff and get away with it than anything else.

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<v Speaker 1>That's not Maybe that's considered a controversial view, but honestly

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<v Speaker 1>it's the truth. Likes it largely comes down to I

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<v Speaker 1>want what that guy has. They happen to identify as Catholic.

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<v Speaker 1>I'm a Protestant. I'll use that as the excuse to

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<v Speaker 1>take all their stuff. Anyway, Guy Fox is a Catholic.

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<v Speaker 1>He opposes James the Protestant, and so he joins a

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<v Speaker 1>band of conspirators who ultimately have the goal to assassinate

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<v Speaker 1>King James, to commit regicide and replace him as regent,

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<v Speaker 1>hopefully with his daughter, who they saw as being more

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<v Speaker 1>pliable and perhaps more sympathetic to Catholics. The popular, but

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<v Speaker 1>probably apocryphal version of this story had the conspirators planning

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<v Speaker 1>to tunnel under Parliament with the intent to stack a

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<v Speaker 1>whole bunch of barrel of gunpowder underneath the House of Lords,

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<v Speaker 1>and then they would light up the barrels and blow

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<v Speaker 1>the English government into the afterlife. Do not pass go,

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<v Speaker 1>do not persecute Catholics. Now, in truth, they actually found

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<v Speaker 1>access to a chamber that was underneath the House of Lords,

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<v Speaker 1>sort of like a seller, and so they didn't actually

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<v Speaker 1>have to tunnel anywhere. They just had to get access

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<v Speaker 1>to this chamber and then make sure that nobody else

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<v Speaker 1>found what they were doing before they were able to

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<v Speaker 1>execute their plan, and they secretly began loading in a

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<v Speaker 1>bunch of barrels of gunpowder into this chamber. They hid

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<v Speaker 1>them under piles of coal and wood, and you know,

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<v Speaker 1>because it wasn't winner yet in England, they were hoping

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<v Speaker 1>that no one would go poking around in there until

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<v Speaker 1>Parliament was in session. They were essentially saying, like, this

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<v Speaker 1>is a storage of fuel that will probably be untouched

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<v Speaker 1>until we can get parliament. The problem was there was

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<v Speaker 1>also plague in England at the time, and any large

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<v Speaker 1>gathering of people was seen as a potential way of

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<v Speaker 1>spreading plague, which was you know true, and as a result,

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<v Speaker 1>Parliament wasn't entering into session as part of cautionary measures.

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<v Speaker 1>So we get up to late October. Parliament is finally

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<v Speaker 1>gearing up to go into session, having delayed several times

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<v Speaker 1>due to plague outbreaks, and the conspirators had regularly been

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<v Speaker 1>checking on these barrels that they had been storing in

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<v Speaker 1>the cellar over time to make sure they were secure

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<v Speaker 1>and that no one had found them, and no one

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<v Speaker 1>had like the plan was on and they were getting

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<v Speaker 1>closer to the time of attack when Parliament would go

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<v Speaker 1>into session in early November of sixteen oh five, but

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<v Speaker 1>some of the conspirators were a little worried because not

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<v Speaker 1>everyone in Parliament was Protestant. There were some Catholics who

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<v Speaker 1>were also as members of the House of Lords, and

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<v Speaker 1>while it seemed like it was jolly good sport to

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<v Speaker 1>blow up Protestants, it was considered bad form to do

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<v Speaker 1>the same to their fellow Catholics. So someone among the

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<v Speaker 1>conspirators sent an anonymous letter to Lord Monteagal that essentially said, hey,

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<v Speaker 1>call out sick when Parliament opens up, because things are

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<v Speaker 1>gonna get spicy. I am paraphrasing here. So then Lord

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<v Speaker 1>Monteagle goes over to King Jimmy and he says, hey,

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<v Speaker 1>I got some potentially really bad news, And King Jimmy

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<v Speaker 1>commands that a security force sweeps the sellers beneath Parliament

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<v Speaker 1>to find out what the heck is going on. And

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<v Speaker 1>a security detail happened to come across the path of

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<v Speaker 1>one guy Fawks, who had been sent to check in

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<v Speaker 1>on the barrels in the cellar to make sure that

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<v Speaker 1>everything was fine, and he was caught in the middle

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<v Speaker 1>of the night on November fifth, sixteen oh five, and

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<v Speaker 1>he was put to the question that's a very polite

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<v Speaker 1>way of saying that the King's forces tortured the ever

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<v Speaker 1>loven pants off of him, probably literally, and over the

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<v Speaker 1>course of repeated torture sessions that got increasingly brutal, Fox

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<v Speaker 1>gave up his co conspirators and continued to endure really

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<v Speaker 1>brutal torture over the course of his confinement. In late

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<v Speaker 1>January sixteen oh six, so like a couple of months

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<v Speaker 1>after the planned attack, Fox and several of his co

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<v Speaker 1>conspirators were transported to Westminster Hall, forced to mount a scaffold,

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<v Speaker 1>pronounced guilty of high treason, and they were executed. That

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<v Speaker 1>is the polite way to describe what happened to them.

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<v Speaker 1>I will say that if you get into the details,

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<v Speaker 1>it goes beyond the level of cruelty. Then they were

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<v Speaker 1>also chop dup so that their body parts could be

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<v Speaker 1>sent around England to warn other would be traders about

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<v Speaker 1>what could happen if you plot against the crown. To

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<v Speaker 1>this day, November fifth is Guy Fox Day, and tradition

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<v Speaker 1>has people in England lighting bonfires to celebrate not the

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<v Speaker 1>plan to assassinate the king, which is often how it

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<v Speaker 1>gets portrayed, but rather to celebrate how the king escaped assassination.

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<v Speaker 1>And there's a little poem that goes with it. Remember

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<v Speaker 1>remember the fifth of November, Gunpowder, treason and plot, for

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<v Speaker 1>there is a reason why gunpowder and treason should never

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<v Speaker 1>be forgot. It changes a bit depending upon the interpretation.

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<v Speaker 1>You have to keep in mind that the language of

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<v Speaker 1>sixteen o six England was modern English but antiquated, so

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<v Speaker 1>slightly different from the way we would say it today.

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<v Speaker 1>But anyway, that was the whole point of Guy Fox

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<v Speaker 1>Day was to remind yourself, hey, we almost had regicide

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<v Speaker 1>in the Kingdom. It was stopped, and we also need

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<v Speaker 1>to remember what happens if you go against the king.

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<v Speaker 1>That's kind of the purpose of Guy Fox Day. Now

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<v Speaker 1>skip ahead a couple of centuries and get up to

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<v Speaker 1>nineteen eighty two. You had writer Alan Moore and artists

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<v Speaker 1>David Lloyd and Tony Weir who create a comic strip

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<v Speaker 1>titled V for Vendetta, and the comic strips were later

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<v Speaker 1>collected into a graphic novel. Now, in this story, there's

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<v Speaker 1>an anarchist who simply goes by V and he commits

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<v Speaker 1>acts of violence in an attempt to bring down a

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<v Speaker 1>fascist government in England, and he does it while wearing

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<v Speaker 1>a Guy Fox mask. So it's really more this version

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<v Speaker 1>of Guy Fox that Anonymous would draw their iconic look from,

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<v Speaker 1>as opposed to the actual historic figure they were taking

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<v Speaker 1>it from, this pop culture comic book version. And again

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<v Speaker 1>v is not Guy Fox. He's adopted that because he

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<v Speaker 1>is an anarchist. He opposes not just fascism, he's really

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<v Speaker 1>not in favor of any kind of organized government at all.

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<v Speaker 1>He sees government as ultimately an institution that is bound

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<v Speaker 1>for corruption, like there's just no way to avoid it,

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<v Speaker 1>and so he prefers anarchy to any kind of organized government. Moreover,

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<v Speaker 1>V for Vendetta is the story of someone who is

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<v Speaker 1>special in that he is willing to go to whatever

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<v Speaker 1>extreme is necessary to defeat an overreaching, unjust, unfair, corrupt

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<v Speaker 1>status quo. So he's not a superhero, right, He doesn't

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<v Speaker 1>have superpowers. He does display some pretty unbelievable skills and

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<v Speaker 1>physical abilities through the course of v FA Vendetta, but

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<v Speaker 1>he's ostensibly a regular old human being, and the message

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<v Speaker 1>seems to be anyone can change the world. And in

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<v Speaker 1>this graphic novel, the rhyme of remember remember the fifth

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<v Speaker 1>of November is not about remember how this traitor nearly

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<v Speaker 1>committed regiside. It's about remember how the normal person can

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<v Speaker 1>upend an entire government. So the message gets flipped with

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<v Speaker 1>V for vendetta than it did in actual history. Now,

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<v Speaker 1>the decentralized, loose confederation of activists, activists, anarchists, trolls and

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<v Speaker 1>others that would form Anonymous did not immediately adopt the

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<v Speaker 1>guy Fox mass that would come later in their history. Initially,

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<v Speaker 1>if you look at the very earliest kind of emergence

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<v Speaker 1>of anonymous, you have to look at the image based

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<v Speaker 1>message forum for Chan, and this used to be looked

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<v Speaker 1>at as one of the wilders on the wild West.

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<v Speaker 1>That was the web, right, Like the web was this

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<v Speaker 1>place where you had established brands, but you also had

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<v Speaker 1>these kind of pools of anarchy where all sorts of

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<v Speaker 1>shenanigans could happen. And four Chan at the time was

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<v Speaker 1>looked at as like kind of like Moss Eisley, the

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<v Speaker 1>hive of scum and villainy. These days, other forums like

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<v Speaker 1>eight chan and Kiwi Farms have said hold my beer

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<v Speaker 1>and really taken the mantle of home to the worst

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<v Speaker 1>of the worst on the web. But four chan used

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<v Speaker 1>to be the place. Now when we come back, I'll

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<v Speaker 1>talk about how anonymous first began to take shape on

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<v Speaker 1>four Chan. But first these messages okay, we're back. So

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<v Speaker 1>if you were to join four Chan, you could do

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<v Speaker 1>so without creating a handle, right, You didn't have to

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<v Speaker 1>create a handle that would identify you as someone who

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<v Speaker 1>is a participant. You could just join and you would

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<v Speaker 1>get the default user name anonymous. And so you had

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<v Speaker 1>these groups of like minded people trolls on four Chan

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<v Speaker 1>who began to coordinate their efforts to essentially cause grief

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<v Speaker 1>and frustration to other online communities, often to online communities

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<v Speaker 1>that were catering to younger users, because it just seemed

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<v Speaker 1>really funny to them to upset and upend these communities.

0:15:36.080 --> 0:15:38.880
<v Speaker 1>They say, Hey, look at these little kids who are

0:15:38.920 --> 0:15:43.520
<v Speaker 1>trying to have fun online. How about we mess with

0:15:43.600 --> 0:15:50.000
<v Speaker 1>them very much? Not a noble cause, right, is undeniable

0:15:50.640 --> 0:15:53.080
<v Speaker 1>that they were just out to cause trouble and to

0:15:53.160 --> 0:15:56.360
<v Speaker 1>make people upset for their own amusement. So they got

0:15:56.440 --> 0:15:59.800
<v Speaker 1>joy out of making life miserable for other people. A

0:16:00.240 --> 0:16:03.760
<v Speaker 1>quick note just in my own experience, I have found

0:16:03.760 --> 0:16:07.280
<v Speaker 1>that you actually can get way more joy out of

0:16:07.720 --> 0:16:11.920
<v Speaker 1>doing nice things for people than you get from causing

0:16:11.960 --> 0:16:14.200
<v Speaker 1>grief to folks. Although I get it, like there's some

0:16:14.240 --> 0:16:18.680
<v Speaker 1>people out there that just seem like they really need

0:16:18.720 --> 0:16:21.480
<v Speaker 1>to have some misery visited upon them because they are

0:16:21.520 --> 0:16:24.480
<v Speaker 1>causing misery to other people. Right, you might see someone

0:16:24.520 --> 0:16:29.280
<v Speaker 1>and say, this person is disproportionately making life terrible for

0:16:29.440 --> 0:16:32.000
<v Speaker 1>lots of people. I want to see some come upance.

0:16:32.520 --> 0:16:35.680
<v Speaker 1>I get that, but I also think that you know,

0:16:35.960 --> 0:16:40.080
<v Speaker 1>just anonymously trying to cause strife to people who you

0:16:40.120 --> 0:16:43.680
<v Speaker 1>don't know and have no connection to. I think that's

0:16:43.720 --> 0:16:46.320
<v Speaker 1>just lame. I would much prefer to see people do

0:16:46.440 --> 0:16:49.280
<v Speaker 1>nice things. It takes a little more effort, but I

0:16:49.320 --> 0:16:53.280
<v Speaker 1>think it has way more payoff. Anyway, that's getting sidetracked. Okay.

0:16:53.480 --> 0:16:55.800
<v Speaker 1>From two thousand and three to around two thousand and

0:16:55.840 --> 0:17:00.120
<v Speaker 1>six or so, these trolls, which began to collectively identify

0:17:00.160 --> 0:17:05.080
<v Speaker 1>themselves as anonymous because again that's the default anonymous user

0:17:05.160 --> 0:17:09.320
<v Speaker 1>name on four Chan, they started to harass various online

0:17:09.320 --> 0:17:14.520
<v Speaker 1>communities just for fun. Some of these communities were also trollish,

0:17:14.960 --> 0:17:18.560
<v Speaker 1>so in some cases you had trolls attacking other trolls.

0:17:19.080 --> 0:17:22.480
<v Speaker 1>This escalated by two thousand and six to targeting specific

0:17:22.840 --> 0:17:26.800
<v Speaker 1>people rather than an online community. So in other words,

0:17:26.800 --> 0:17:32.320
<v Speaker 1>you might target an actual individual who you think deserves

0:17:32.359 --> 0:17:35.520
<v Speaker 1>to be taken down a peg for whatever reason. So

0:17:35.560 --> 0:17:39.040
<v Speaker 1>typically these people were fairly high profile, They had some

0:17:39.080 --> 0:17:43.080
<v Speaker 1>sort of platform from which they espoused their views, and

0:17:43.760 --> 0:17:47.400
<v Speaker 1>they had come to offend this group of trolls on

0:17:47.480 --> 0:17:51.040
<v Speaker 1>four Chan through saying those views. In some cases, these

0:17:51.040 --> 0:17:56.159
<v Speaker 1>were like far right commentators and media, and they became

0:17:56.359 --> 0:18:00.200
<v Speaker 1>prime targets. But it wasn't just them really, anyone one

0:18:00.240 --> 0:18:05.200
<v Speaker 1>who was seen as being you know, hypocritical or insincere,

0:18:05.920 --> 0:18:09.720
<v Speaker 1>anything like that. If they seem like they were putting

0:18:09.800 --> 0:18:13.320
<v Speaker 1>up a front that hidden motives, they can become a

0:18:13.359 --> 0:18:16.439
<v Speaker 1>target too. Now Anonymous went after them in an effort

0:18:16.440 --> 0:18:19.760
<v Speaker 1>to really humble these folks, but it was mostly again

0:18:19.840 --> 0:18:24.080
<v Speaker 1>for the lulls. It wasn't like a crusade to right wrongs.

0:18:24.560 --> 0:18:29.040
<v Speaker 1>It was more about this person deserves some frustration in

0:18:29.080 --> 0:18:31.600
<v Speaker 1>their life or worse, so we're gonna do it and

0:18:31.640 --> 0:18:35.200
<v Speaker 1>we're gonna laugh about it. Now, you might wonder how

0:18:35.240 --> 0:18:40.600
<v Speaker 1>did this group transition from being this loose collective of

0:18:40.720 --> 0:18:47.000
<v Speaker 1>trolls to turn into a decentralized activist group. A big

0:18:47.040 --> 0:18:51.440
<v Speaker 1>part of that transition actually came from outside the group itself.

0:18:51.720 --> 0:18:55.439
<v Speaker 1>It came due to mainstream media, which kind of just

0:18:55.520 --> 0:18:59.879
<v Speaker 1>got the whole thing wrong. Mainstream media ended up having

0:19:00.040 --> 0:19:03.560
<v Speaker 1>the wrong interpretation of what Anonymous was, and that in

0:19:03.640 --> 0:19:07.159
<v Speaker 1>turn kind of shaped Anonymous. So there was like a

0:19:07.160 --> 0:19:10.639
<v Speaker 1>broadcast in Los Angeles that was on Fox Television. They

0:19:10.760 --> 0:19:15.359
<v Speaker 1>reported about Anonymous and suggested that Anonymous was in fact

0:19:16.240 --> 0:19:21.479
<v Speaker 1>a domestic terrorist group. Now keep in mind, Anonymous had

0:19:21.600 --> 0:19:26.320
<v Speaker 1>been targeting some far right media personalities at this point,

0:19:26.520 --> 0:19:29.840
<v Speaker 1>so perhaps that was part of it. Because Fox often

0:19:30.160 --> 0:19:33.400
<v Speaker 1>kind of, you know, at least leans to that side.

0:19:33.800 --> 0:19:38.359
<v Speaker 1>In some markets, it doesn't lean, it absolutely lays down

0:19:38.480 --> 0:19:42.240
<v Speaker 1>on the far right side. So they were saying that

0:19:42.359 --> 0:19:45.520
<v Speaker 1>Anonymous were domestic terrorists capable of great acts of violence.

0:19:45.560 --> 0:19:50.480
<v Speaker 1>They even included in their broadcast video footage of a

0:19:50.600 --> 0:19:56.159
<v Speaker 1>van exploding. Never Mind, this had no connection to Anonymous, Like,

0:19:56.200 --> 0:19:59.120
<v Speaker 1>Anonymous had not done any kind of acts of violence.

0:19:59.160 --> 0:20:04.400
<v Speaker 1>They were rassing people, but they didn't bomb cars or anything.

0:20:05.080 --> 0:20:09.439
<v Speaker 1>So this was like just it was so absurd. It

0:20:09.480 --> 0:20:12.480
<v Speaker 1>had no connection to the actual group, but the group

0:20:12.560 --> 0:20:16.000
<v Speaker 1>was being portrayed as if they were this incredibly sinister,

0:20:16.880 --> 0:20:20.760
<v Speaker 1>dangerous group of individuals, which, honestly, if you are not

0:20:21.600 --> 0:20:25.640
<v Speaker 1>identified as being part of that group. But you get

0:20:25.680 --> 0:20:29.000
<v Speaker 1>the benefit of feeling like people are looking at you

0:20:29.040 --> 0:20:31.840
<v Speaker 1>and thinking you're important and dangerous. That can really boost

0:20:31.840 --> 0:20:34.880
<v Speaker 1>your ego quite a bit, right, Like it feels good

0:20:34.920 --> 0:20:36.920
<v Speaker 1>to be looked at and thought of as a badass.

0:20:37.040 --> 0:20:40.320
<v Speaker 1>That just it's like an ego boost to that the

0:20:40.440 --> 0:20:44.280
<v Speaker 1>world thought that Anonymous was dangerous, at least the Fox

0:20:44.320 --> 0:20:48.879
<v Speaker 1>broadcast station in Los Angeles did, anyway, and that kind

0:20:48.880 --> 0:20:52.600
<v Speaker 1>of made them feel like they were important. There was

0:20:52.640 --> 0:20:55.840
<v Speaker 1>also the case of a Canadian Security Intelligence Service agent

0:20:55.920 --> 0:21:00.840
<v Speaker 1>who went to a guy named Aubrey call who was

0:21:01.000 --> 0:21:05.600
<v Speaker 1>involved in Anonymous and tapped him as joining a task

0:21:05.600 --> 0:21:09.359
<v Speaker 1>force designed to infiltrate and disrupt online terrorist groups. But

0:21:09.520 --> 0:21:15.040
<v Speaker 1>Caddle was like, I just mess with people to make

0:21:15.080 --> 0:21:19.679
<v Speaker 1>them angry. I don't like this is like James Bond

0:21:19.800 --> 0:21:23.320
<v Speaker 1>level stuff, and I am not James Bond. But again,

0:21:24.200 --> 0:21:27.720
<v Speaker 1>it showed that the outside world was looking at Anonymous

0:21:27.760 --> 0:21:35.200
<v Speaker 1>as being way more powerful and capable than they actually were,

0:21:35.720 --> 0:21:38.120
<v Speaker 1>and it made people who were part of Anonymous feel

0:21:38.160 --> 0:21:40.600
<v Speaker 1>important and more people wanted to join because they wanted

0:21:40.600 --> 0:21:43.639
<v Speaker 1>to feel like they were part of this power group.

0:21:44.600 --> 0:21:48.679
<v Speaker 1>And then we get to Tom Cruise. And you know,

0:21:48.840 --> 0:21:53.000
<v Speaker 1>I think without Tom Cruise, we wouldn't have the Anonymous

0:21:53.000 --> 0:21:55.840
<v Speaker 1>that we have today. In fact, the group Anonymous might

0:21:55.880 --> 0:22:00.679
<v Speaker 1>not even exist without Tom Cruise. This is not hyperbole.

0:22:01.320 --> 0:22:04.919
<v Speaker 1>So by early two thousand and eight, Anonymous was still

0:22:05.200 --> 0:22:08.320
<v Speaker 1>mostly a group of folks who like to harass people,

0:22:08.600 --> 0:22:13.200
<v Speaker 1>and again, mostly they were doing this online, and mostly

0:22:13.720 --> 0:22:16.560
<v Speaker 1>the people they were harassing were people they felt deserved

0:22:16.680 --> 0:22:20.080
<v Speaker 1>to be harassed, although the criteria for what made someone

0:22:20.760 --> 0:22:24.480
<v Speaker 1>deserving varied depending upon who in the group was doing it.

0:22:25.640 --> 0:22:30.440
<v Speaker 1>And Tom Cruise would change things. So on January fourteenth,

0:22:30.480 --> 0:22:34.560
<v Speaker 1>two thousand and eight, someone published a video of Tom

0:22:34.600 --> 0:22:38.400
<v Speaker 1>Cruise talking about Scientology and his participation in the Church

0:22:38.440 --> 0:22:42.640
<v Speaker 1>of Scientology. Now, this episode's already going to be a

0:22:42.800 --> 0:22:46.120
<v Speaker 1>long one, which means I am not going to dive

0:22:46.160 --> 0:22:50.399
<v Speaker 1>into the rat's nest that is Scientology. I will say

0:22:50.840 --> 0:22:55.480
<v Speaker 1>it is an organization that's registered to be a religious organization,

0:22:55.640 --> 0:22:58.639
<v Speaker 1>which means that they enjoy tax exempt status in the

0:22:58.720 --> 0:23:01.960
<v Speaker 1>United States. It's an organization that has a very long

0:23:02.119 --> 0:23:07.399
<v Speaker 1>history of allegations made against it and its leadership that

0:23:07.640 --> 0:23:12.000
<v Speaker 1>range from stuff like the organization encouraging members to surrender

0:23:12.080 --> 0:23:15.320
<v Speaker 1>more and more of their own personal wealth to the church,

0:23:15.880 --> 0:23:19.560
<v Speaker 1>essentially saying that the church siphons money out of its

0:23:19.600 --> 0:23:26.119
<v Speaker 1>members to super scary allegations like the church using the

0:23:26.240 --> 0:23:31.040
<v Speaker 1>US legal system to intimidate or even bankrupt people who

0:23:31.040 --> 0:23:34.600
<v Speaker 1>were identified as threats to the church itself, including people

0:23:34.600 --> 0:23:37.520
<v Speaker 1>who were just trying to leave the organization. It's got

0:23:37.560 --> 0:23:41.920
<v Speaker 1>a really bad reputation, which is putting it lightly. Anyway,

0:23:42.200 --> 0:23:45.959
<v Speaker 1>Tom Cruz's interview did not make him look very good,

0:23:46.240 --> 0:23:49.359
<v Speaker 1>and it made the church look even worse. Cruz was

0:23:49.400 --> 0:23:53.160
<v Speaker 1>not trying to bring down the Church of Scientology, far

0:23:53.280 --> 0:23:58.520
<v Speaker 1>from it. He was an eager participant. However, his descriptions

0:23:58.560 --> 0:24:01.800
<v Speaker 1>and demeanor in this video we're seen as harmful to

0:24:01.880 --> 0:24:05.160
<v Speaker 1>the image of the Church of Scientology, and so the

0:24:05.240 --> 0:24:09.960
<v Speaker 1>church sent YouTube a copyright violation claim that prompted YouTube

0:24:10.000 --> 0:24:14.880
<v Speaker 1>to remove the video, and that is where anonymous would

0:24:14.960 --> 0:24:19.800
<v Speaker 1>jump in. So people with an anonymous saw Scientology's actions

0:24:20.359 --> 0:24:25.840
<v Speaker 1>as leveraging a company's policies, in this case YouTube, in

0:24:25.960 --> 0:24:30.640
<v Speaker 1>order to commit censorship to remove information from the Internet,

0:24:30.640 --> 0:24:35.640
<v Speaker 1>which just kind of goes against the whole ethos of

0:24:35.720 --> 0:24:38.120
<v Speaker 1>the Internet and the Web in general. Like you've probably

0:24:38.160 --> 0:24:40.919
<v Speaker 1>heard like once it goes up on the Internet, that's it.

0:24:40.920 --> 0:24:43.240
<v Speaker 1>It's there, Like whether you try and take down the

0:24:43.240 --> 0:24:46.320
<v Speaker 1>original one or not, it's up there. People have shared it,

0:24:46.400 --> 0:24:51.120
<v Speaker 1>people have cloned it. Whatever. Now they were thinking that

0:24:51.640 --> 0:24:55.440
<v Speaker 1>the Church of Scientology was abusing YouTube's policies in an

0:24:55.440 --> 0:25:01.399
<v Speaker 1>attempt to hide information that was not very flattering to

0:25:01.480 --> 0:25:04.920
<v Speaker 1>the church from the general public. Then there were all

0:25:04.920 --> 0:25:07.800
<v Speaker 1>the other alleged misdeeds that the church was said to

0:25:07.840 --> 0:25:11.320
<v Speaker 1>have committed. So on top of that, there's everything else.

0:25:11.359 --> 0:25:13.359
<v Speaker 1>If you really want to go down a rabbit hole,

0:25:13.640 --> 0:25:17.840
<v Speaker 1>search the term fair Game and Scientology and you'll see

0:25:17.840 --> 0:25:21.399
<v Speaker 1>what I'm talking about, a tip of the iceberg really

0:25:21.440 --> 0:25:26.080
<v Speaker 1>of what I'm talking about. So Anonymous thought of Scientology

0:25:26.080 --> 0:25:30.800
<v Speaker 1>as being an organization that was perfect to take down

0:25:30.840 --> 0:25:33.560
<v Speaker 1>a few pegs, like this was an organization that clearly

0:25:33.960 --> 0:25:38.040
<v Speaker 1>had a lot of power and influence, and in the

0:25:38.119 --> 0:25:41.439
<v Speaker 1>opinion of those an Anonymous should not have those things.

0:25:41.920 --> 0:25:45.800
<v Speaker 1>So they wanted to hold an operation. That's what a

0:25:45.800 --> 0:25:49.000
<v Speaker 1>lot of projects within Anonymous end up being called an operation.

0:25:49.119 --> 0:25:53.639
<v Speaker 1>This one was actually called Project Channology, in which Anonymous

0:25:53.800 --> 0:25:57.760
<v Speaker 1>organized protests against the church in the real world. People

0:25:57.800 --> 0:26:02.200
<v Speaker 1>showed up at locations connected to the Church of Scientology,

0:26:02.680 --> 0:26:07.280
<v Speaker 1>many of them wearing guy Fox masks. And meanwhile, the

0:26:07.720 --> 0:26:13.000
<v Speaker 1>online part of Anonymous was using all sorts of tactics

0:26:13.000 --> 0:26:18.760
<v Speaker 1>to disrupt Scientology's Internet based operations. So they were doing

0:26:18.800 --> 0:26:21.760
<v Speaker 1>things they were actually pretty simple in the grand scheme

0:26:21.800 --> 0:26:24.800
<v Speaker 1>of things like denial of service attacks. These are not

0:26:24.920 --> 0:26:29.280
<v Speaker 1>sophisticated online attacks, but they can be effective. Essentially, what

0:26:29.320 --> 0:26:33.040
<v Speaker 1>you're doing is you're targeting a web server and you

0:26:33.119 --> 0:26:36.240
<v Speaker 1>are sending an enormous amount of traffic to that web

0:26:36.280 --> 0:26:39.440
<v Speaker 1>server in order to overwhelm it so that it cannot

0:26:39.440 --> 0:26:42.600
<v Speaker 1>respond to legitimate messages. So like you could target the

0:26:42.600 --> 0:26:45.840
<v Speaker 1>web server that hosts the Church of Scientology's web page,

0:26:46.320 --> 0:26:50.720
<v Speaker 1>and because you have overwhelmed that server, anyone trying to

0:26:50.760 --> 0:26:53.159
<v Speaker 1>go to the Church of Scientology's webpage is going to

0:26:53.240 --> 0:26:55.639
<v Speaker 1>get an error message. Again, this is not a very

0:26:55.680 --> 0:26:58.880
<v Speaker 1>sophisticated attack. There are actually a lot of companies out

0:26:58.880 --> 0:27:02.200
<v Speaker 1>there that you can and work with that specifically look

0:27:02.320 --> 0:27:05.560
<v Speaker 1>for that kind of attack so that they can prevent

0:27:05.600 --> 0:27:09.800
<v Speaker 1>it from affecting your web servers. So it's not something

0:27:09.840 --> 0:27:14.479
<v Speaker 1>that typically gets used a ton against high profile targets.

0:27:14.480 --> 0:27:17.159
<v Speaker 1>Because a lot of high profile targets have moved to

0:27:17.320 --> 0:27:21.560
<v Speaker 1>adopt these measures to protect themselves against that kind of thing.

0:27:22.000 --> 0:27:26.080
<v Speaker 1>But these actions marked a real change for Anonymous. Rather

0:27:26.119 --> 0:27:29.760
<v Speaker 1>than harassing folks and communities just for the lulls, the

0:27:29.840 --> 0:27:33.240
<v Speaker 1>group began to use its base of skills and decentralized

0:27:33.280 --> 0:27:37.399
<v Speaker 1>membership and desire to push back against what they saw

0:27:37.520 --> 0:27:41.880
<v Speaker 1>as overreaching authority to create change both in the real

0:27:42.320 --> 0:27:46.159
<v Speaker 1>and in the online world. The group would target large

0:27:46.200 --> 0:27:49.919
<v Speaker 1>financial institutions, which were seen as foundations of power and

0:27:50.040 --> 0:27:53.760
<v Speaker 1>influence that have a disproportionate amount of control over our lives.

0:27:54.200 --> 0:27:58.200
<v Speaker 1>They would target government organizations that they felt were corrupt

0:27:58.880 --> 0:28:04.720
<v Speaker 1>or that were infringing upon people's freedoms, including issues like

0:28:05.200 --> 0:28:08.560
<v Speaker 1>agencies like the NSA that were found to conduct espionage

0:28:08.680 --> 0:28:13.760
<v Speaker 1>on American citizens. They supported social movements like the Arab

0:28:13.960 --> 0:28:19.080
<v Speaker 1>Spring and Black Lives Matter. They took aim at things

0:28:19.119 --> 0:28:23.280
<v Speaker 1>like child pornography rings to bring those down. They continue

0:28:23.440 --> 0:28:26.719
<v Speaker 1>to provide support to Ukraine in its war against Russia.

0:28:26.840 --> 0:28:30.520
<v Speaker 1>They've used their skills to disrupt Russia's online operations to

0:28:30.960 --> 0:28:34.480
<v Speaker 1>varying degrees of success. But at the heart of things,

0:28:35.080 --> 0:28:39.200
<v Speaker 1>Anonymous is still a decentralized organization. In fact, to call

0:28:39.280 --> 0:28:43.800
<v Speaker 1>it an organization is a bit of a stretch. Anonymous

0:28:43.840 --> 0:28:47.880
<v Speaker 1>consists of lots of people. How many is impossible to say.

0:28:48.080 --> 0:28:50.960
<v Speaker 1>There's no official membership for obvious reasons. If you want

0:28:50.960 --> 0:28:54.360
<v Speaker 1>to be Anonymous, you can't have one, And within the

0:28:54.400 --> 0:28:58.880
<v Speaker 1>group there are a variety of opinions and political philosophies

0:28:59.240 --> 0:29:03.280
<v Speaker 1>and value. So not everything attributed to Anonymous is necessarily

0:29:03.320 --> 0:29:07.000
<v Speaker 1>the result of Anonymous, or at least not of the

0:29:07.120 --> 0:29:11.400
<v Speaker 1>overall collection of people who identify as being part of Anonymous.

0:29:11.640 --> 0:29:14.040
<v Speaker 1>In some cases, it's a splinter group of folks who

0:29:14.080 --> 0:29:17.360
<v Speaker 1>have a common goal, but it's not necessarily a goal

0:29:17.400 --> 0:29:21.520
<v Speaker 1>that's supported by the overall Anonymous community, and they go

0:29:21.560 --> 0:29:25.200
<v Speaker 1>out and do their own operations. Sometimes the media connects

0:29:25.280 --> 0:29:29.280
<v Speaker 1>those operations with Anonymous overall, and on rare occasions, the

0:29:29.320 --> 0:29:34.000
<v Speaker 1>overall organization might even distance itself from some of those activities. Okay,

0:29:34.360 --> 0:29:39.720
<v Speaker 1>we're going to continue talking about Anonymous and then Dows,

0:29:40.320 --> 0:29:52.920
<v Speaker 1>but first let's take another quick break. Okay, we're back.

0:29:53.040 --> 0:29:57.600
<v Speaker 1>So I described earlier how Anonymous works generally, and it's

0:29:57.880 --> 0:30:02.480
<v Speaker 1>mostly through consensus and brainstorm. People within the community start

0:30:02.560 --> 0:30:07.440
<v Speaker 1>to toss back and forth some ideas, including who they

0:30:07.520 --> 0:30:13.560
<v Speaker 1>think is at fault for perhaps oppressing others, and then

0:30:13.600 --> 0:30:18.600
<v Speaker 1>potential ways to address that oppression. Sometimes a small group

0:30:18.600 --> 0:30:21.080
<v Speaker 1>of folks within Anonymous will adopt a cause and gain

0:30:21.200 --> 0:30:24.560
<v Speaker 1>more support from other members as things evolve and it

0:30:24.600 --> 0:30:30.000
<v Speaker 1>becomes the overall group's objective. Sometimes a person, government agency,

0:30:30.160 --> 0:30:33.520
<v Speaker 1>or a company will behave in a way that is

0:30:33.600 --> 0:30:38.520
<v Speaker 1>so counter to anonymous as core values of individual freedom

0:30:38.560 --> 0:30:42.080
<v Speaker 1>and a desire to wrest control away from institutions that

0:30:42.200 --> 0:30:44.280
<v Speaker 1>it really won't take a lot of convincing. The whole

0:30:44.280 --> 0:30:46.120
<v Speaker 1>group will more or less beyond the same page, and

0:30:46.240 --> 0:30:49.280
<v Speaker 1>what needs to happen is consensus on what to do

0:30:49.400 --> 0:30:52.520
<v Speaker 1>about it. So that is Anonymous. Now let's talk about

0:30:52.560 --> 0:30:57.720
<v Speaker 1>decentralized autonomous organizations or doos d aos. This is a

0:30:57.800 --> 0:31:01.560
<v Speaker 1>continuation on our recent episode about Web three and the

0:31:01.640 --> 0:31:05.320
<v Speaker 1>hype cycle which published last week, so it kind of

0:31:05.360 --> 0:31:08.400
<v Speaker 1>builds on that as well. Now, what the heck is

0:31:08.560 --> 0:31:14.360
<v Speaker 1>a decentralized autonomous organization the DAO or DOO. Well, at

0:31:14.400 --> 0:31:18.880
<v Speaker 1>a very high level, it is an organization made up

0:31:18.920 --> 0:31:23.560
<v Speaker 1>of people who share some common goal. Now, the specifics

0:31:23.560 --> 0:31:26.640
<v Speaker 1>of how to achieve that goal, or what conditions need

0:31:26.720 --> 0:31:29.560
<v Speaker 1>to exist in order for each member to consider the

0:31:29.640 --> 0:31:33.040
<v Speaker 1>goal to have been achieved in the first place. That

0:31:33.080 --> 0:31:36.600
<v Speaker 1>can be different from person to person, and it can

0:31:36.640 --> 0:31:41.120
<v Speaker 1>require a consensus among the group to decide on particulars,

0:31:41.120 --> 0:31:45.840
<v Speaker 1>but generally speaking, the group has the same outcome in mind.

0:31:46.280 --> 0:31:50.040
<v Speaker 1>So a DAO can kind of act like a company,

0:31:50.560 --> 0:31:53.920
<v Speaker 1>or it can act like a charitable organization or a

0:31:54.040 --> 0:31:58.640
<v Speaker 1>community action group. It can have a single purpose. For example,

0:31:58.880 --> 0:32:02.920
<v Speaker 1>one DOO actually had the express purpose of purchasing an

0:32:02.920 --> 0:32:06.560
<v Speaker 1>original copy of an historic document, which we will get

0:32:06.600 --> 0:32:09.920
<v Speaker 1>to in a bit, Or it could have a more

0:32:09.960 --> 0:32:15.040
<v Speaker 1>general purpose, like it exists for the betterment of a

0:32:15.080 --> 0:32:19.600
<v Speaker 1>specific community or maybe the global community, and in the

0:32:19.640 --> 0:32:23.800
<v Speaker 1>process of doing that it could pursue many smaller but

0:32:23.920 --> 0:32:29.640
<v Speaker 1>related goals. However, a DOW is owned and operated by

0:32:29.720 --> 0:32:33.880
<v Speaker 1>the members of that organization, So instead of having a

0:32:33.920 --> 0:32:37.520
<v Speaker 1>single hierarchical leader or even a board of directors who

0:32:37.640 --> 0:32:42.080
<v Speaker 1>ultimately are allowed to approve or deny requests for specific

0:32:42.160 --> 0:32:47.680
<v Speaker 1>business decisions, the overall group gets to vote on these things.

0:32:47.920 --> 0:32:50.560
<v Speaker 1>So instead of having one person decide, well, our goal

0:32:50.680 --> 0:32:53.240
<v Speaker 1>is X, so we're going to do why and that

0:32:53.280 --> 0:32:57.240
<v Speaker 1>will achieve our goal. The whole groups to decide if

0:32:57.280 --> 0:33:00.160
<v Speaker 1>why is the right thing to do or may mean

0:33:00.200 --> 0:33:03.160
<v Speaker 1>there should be some other method to achieve that goal.

0:33:03.440 --> 0:33:08.400
<v Speaker 1>And in fact, with enough support, the organization can actually

0:33:08.520 --> 0:33:12.040
<v Speaker 1>choose to change the goal, so it's not X at all,

0:33:12.080 --> 0:33:15.680
<v Speaker 1>it's something else. They could do that with enough support

0:33:16.000 --> 0:33:19.200
<v Speaker 1>and with a successful vote. Now, the way this thing

0:33:19.280 --> 0:33:22.960
<v Speaker 1>works is through voting, but it's not necessarily a case

0:33:22.960 --> 0:33:27.160
<v Speaker 1>where every member has a single vote. No, that's not

0:33:27.200 --> 0:33:29.480
<v Speaker 1>necessarily the case. It can work to be more like

0:33:29.720 --> 0:33:34.040
<v Speaker 1>shareholders in a publicly traded company. So the more shares

0:33:34.200 --> 0:33:37.960
<v Speaker 1>of the company you own, the more votes you have.

0:33:38.400 --> 0:33:41.000
<v Speaker 1>If you own a high enough percentage of the shares

0:33:41.040 --> 0:33:45.600
<v Speaker 1>that exist, effectively you can actually dictate the direction of

0:33:45.640 --> 0:33:48.560
<v Speaker 1>the company right if you were to own that much.

0:33:49.280 --> 0:33:52.840
<v Speaker 1>Even if all the other shareholders collectively disagreed with you,

0:33:53.960 --> 0:33:56.560
<v Speaker 1>tough for them, because if you hold enough votes to

0:33:56.600 --> 0:34:00.640
<v Speaker 1>decide what you say goes, then that's it. This is

0:34:00.680 --> 0:34:04.000
<v Speaker 1>actually one of the challenges that dows can face, but

0:34:04.200 --> 0:34:08.080
<v Speaker 1>will touch on that leader as well. So basically, a

0:34:08.200 --> 0:34:10.400
<v Speaker 1>DOW is a way for a group of people to

0:34:10.719 --> 0:34:16.960
<v Speaker 1>identify and pursue a common goal through a decentralized democratic process,

0:34:17.400 --> 0:34:19.759
<v Speaker 1>and in that way, I think you could probably see

0:34:19.760 --> 0:34:24.080
<v Speaker 1>how Anonymous would want to adopt a DOW. Anonymous is

0:34:24.200 --> 0:34:29.839
<v Speaker 1>a decentralized organization of people who share some common values

0:34:30.080 --> 0:34:35.239
<v Speaker 1>and beliefs and goals, but not everyone shares every specific

0:34:35.320 --> 0:34:38.160
<v Speaker 1>goal with everyone else. There's a lot of then diagram

0:34:38.239 --> 0:34:40.719
<v Speaker 1>stuff going on. So you've got some groups with an

0:34:40.760 --> 0:34:46.520
<v Speaker 1>anonymous who have an overlap with the overall groups values

0:34:46.600 --> 0:34:50.400
<v Speaker 1>and beliefs, but there's also some outliers. Then you have

0:34:50.480 --> 0:34:54.759
<v Speaker 1>other subgroups that maybe just barely tap into the same

0:34:54.840 --> 0:34:58.200
<v Speaker 1>value system that the overall group of anonymous has, but

0:34:58.280 --> 0:35:00.879
<v Speaker 1>they're all part of Anonymous, at least as far as

0:35:01.200 --> 0:35:04.880
<v Speaker 1>being part of Anonymous goes. Okay, So now let's talk

0:35:04.880 --> 0:35:07.479
<v Speaker 1>about how a DOW actually works, because so far we've

0:35:07.480 --> 0:35:10.640
<v Speaker 1>just been looking at really a high level approach. A

0:35:10.760 --> 0:35:14.160
<v Speaker 1>DOW is built on top of the blockchain, and we're

0:35:14.440 --> 0:35:18.560
<v Speaker 1>usually talking about the Ethereum blockchain here, and so this

0:35:18.680 --> 0:35:21.719
<v Speaker 1>is the blockchain is the thing that cryptocurrencies like Bitcoin

0:35:21.800 --> 0:35:25.920
<v Speaker 1>and ether depend upon. In fact, Bitcoin introduced the concept

0:35:26.080 --> 0:35:29.160
<v Speaker 1>of the blockchain a couple of decades ago at this point,

0:35:29.280 --> 0:35:31.759
<v Speaker 1>or almost a couple of decades ago. A blockchain is

0:35:31.880 --> 0:35:35.560
<v Speaker 1>essentially a record of transactions, and they're grouped into blocks

0:35:35.640 --> 0:35:39.399
<v Speaker 1>that have been verified by the overall community that makes

0:35:39.480 --> 0:35:43.480
<v Speaker 1>up the system, and then each block is added sequentially

0:35:43.560 --> 0:35:46.640
<v Speaker 1>to a chain of earlier blocks of transactions. In the

0:35:46.680 --> 0:35:51.360
<v Speaker 1>case of bitcoin, those transactions are stuff like actual financial transactions,

0:35:51.880 --> 0:35:54.720
<v Speaker 1>but they can pretty much be anything that involves data

0:35:54.760 --> 0:35:59.760
<v Speaker 1>points that track chronologically and that can transition in state

0:35:59.840 --> 0:36:03.280
<v Speaker 1>in some way. One other important factor about the blockchain

0:36:03.920 --> 0:36:06.840
<v Speaker 1>is that its structure makes it very difficult to change

0:36:07.000 --> 0:36:11.280
<v Speaker 1>earlier points of data within the chain, So each block's

0:36:11.360 --> 0:36:15.160
<v Speaker 1>identity depends in part on all the blocks that came

0:36:15.400 --> 0:36:19.320
<v Speaker 1>before it, and everyone in the system who is part

0:36:19.360 --> 0:36:24.640
<v Speaker 1>of this blockchain system. Everyone can view the blockchain. It

0:36:24.640 --> 0:36:29.280
<v Speaker 1>becomes a common ledger, a publicly shared ledger that everyone

0:36:29.360 --> 0:36:33.200
<v Speaker 1>is able to see. And since everyone's able to see it,

0:36:33.239 --> 0:36:37.040
<v Speaker 1>they can see if someone tries to mess with it.

0:36:37.360 --> 0:36:39.879
<v Speaker 1>So if someone were to try and go back and

0:36:40.040 --> 0:36:43.759
<v Speaker 1>change a data point that happened earlier on in this

0:36:44.320 --> 0:36:48.360
<v Speaker 1>chain of blocks of data, that change would be reflected

0:36:48.719 --> 0:36:52.800
<v Speaker 1>in that block's identity, but that would also affect every

0:36:52.880 --> 0:36:56.200
<v Speaker 1>single block that came after it, so let's say that

0:36:56.239 --> 0:36:59.279
<v Speaker 1>your blockchain is twenty blocks long and someone try to

0:36:59.360 --> 0:37:03.000
<v Speaker 1>change the data that was in block fifteen. Well, from

0:37:03.000 --> 0:37:08.000
<v Speaker 1>block fifteen to block twenty, that change perpetuates down the chain.

0:37:08.200 --> 0:37:10.880
<v Speaker 1>Everyone connected to the system would see that something hinky

0:37:10.960 --> 0:37:14.080
<v Speaker 1>was going on. They could clamp down and stop it

0:37:14.200 --> 0:37:18.040
<v Speaker 1>reverse it. By the way, there are some issues with

0:37:18.080 --> 0:37:22.239
<v Speaker 1>this system. For example, if the overall organization, whether it's

0:37:22.239 --> 0:37:28.160
<v Speaker 1>a cryptocurrency community like bitcoin miners or a dow if

0:37:28.200 --> 0:37:32.640
<v Speaker 1>they cannot come to consensus on the direction of the blockchain,

0:37:33.000 --> 0:37:36.879
<v Speaker 1>you can have a fork. So, for simplicity's sake, let's

0:37:36.880 --> 0:37:42.480
<v Speaker 1>say that half of this blockchain community thinks that they

0:37:42.520 --> 0:37:45.359
<v Speaker 1>need to go in one direction, like this happened with

0:37:45.680 --> 0:37:49.960
<v Speaker 1>In fact, it's happened with like all the major cryptocurrencies,

0:37:50.120 --> 0:37:54.200
<v Speaker 1>but this did happen with Bitcoin. Let's say that like

0:37:54.320 --> 0:37:57.879
<v Speaker 1>half of the community thinks, we want to implement some

0:37:58.080 --> 0:38:02.279
<v Speaker 1>improvements to blockchain and bitcoin, but it's going to necessitate

0:38:02.760 --> 0:38:06.520
<v Speaker 1>that you download new software to be able to interact

0:38:06.520 --> 0:38:10.920
<v Speaker 1>with the blockchain system in order to adopt this motion.

0:38:11.280 --> 0:38:14.640
<v Speaker 1>But let's say the other half of the community is like, no,

0:38:15.000 --> 0:38:17.680
<v Speaker 1>I kind of like the way it's working now. I

0:38:17.760 --> 0:38:22.759
<v Speaker 1>don't want to adopt these new approaches and I want

0:38:22.760 --> 0:38:24.880
<v Speaker 1>it to stay the same. And you get to a

0:38:24.880 --> 0:38:28.040
<v Speaker 1>point where half the group chooses to update their software

0:38:28.080 --> 0:38:32.000
<v Speaker 1>to adopt this new direction, the other half doesn't. You

0:38:32.080 --> 0:38:34.719
<v Speaker 1>have two different versions of bitcoin at that point, right,

0:38:34.840 --> 0:38:39.000
<v Speaker 1>You've got the updated version and you have the original version. Eventually,

0:38:39.000 --> 0:38:43.000
<v Speaker 1>what you have there is a fork. Both versions continue

0:38:43.040 --> 0:38:46.919
<v Speaker 1>to build upon the original blockchain, but they branch off

0:38:47.000 --> 0:38:52.160
<v Speaker 1>into different directions because of this change in the community,

0:38:52.200 --> 0:38:56.840
<v Speaker 1>this disagreement within the community. Sometimes both of these branches

0:38:56.880 --> 0:39:01.520
<v Speaker 1>can continue and become healthy and stay solvent the entire time.

0:39:01.840 --> 0:39:05.920
<v Speaker 1>Sometimes one will collapse, maybe both collapse. It can happen.

0:39:06.719 --> 0:39:09.719
<v Speaker 1>That's a risk, and arguably you could say this is

0:39:09.760 --> 0:39:12.040
<v Speaker 1>a risk with any organization. Right, you can get to

0:39:12.120 --> 0:39:15.760
<v Speaker 1>a point where within the organization there's a disagreement about

0:39:15.800 --> 0:39:18.960
<v Speaker 1>how to do stuff, and that disagreement might lead to

0:39:19.000 --> 0:39:21.560
<v Speaker 1>the point where part of the organization splits off to

0:39:21.600 --> 0:39:24.480
<v Speaker 1>become its own thing. Happens all the time, well, the

0:39:24.520 --> 0:39:29.040
<v Speaker 1>same thing is true with blockchain. With cryptocurrencies, some exchanges

0:39:29.080 --> 0:39:32.080
<v Speaker 1>will actually suspend trading in the wake of a hard

0:39:32.120 --> 0:39:34.799
<v Speaker 1>fork or even a soft fork in an effort to

0:39:34.840 --> 0:39:40.240
<v Speaker 1>mitigate risk and volatility, because the value of these cryptocurrencies

0:39:40.239 --> 0:39:43.600
<v Speaker 1>can change even more dramatically than they already do in

0:39:43.640 --> 0:39:47.000
<v Speaker 1>the wake of a fork. Those suspensions usually last long

0:39:47.080 --> 0:39:49.840
<v Speaker 1>enough for the dust to settle before trading commences again.

0:39:49.880 --> 0:39:52.960
<v Speaker 1>But if one of the forks seems particularly unstable, the

0:39:53.000 --> 0:39:56.400
<v Speaker 1>exchanges might just ignore that one and only accept the

0:39:56.440 --> 0:39:58.759
<v Speaker 1>other fork. And it may be that no matter how

0:39:58.760 --> 0:40:01.640
<v Speaker 1>many people believe passionately that they've done the right thing,

0:40:02.520 --> 0:40:07.040
<v Speaker 1>their efforts will be in vain. Okay, back to DOW. Now,

0:40:07.080 --> 0:40:11.080
<v Speaker 1>I haven't really touched on the autonomous part of decentralized

0:40:11.120 --> 0:40:16.240
<v Speaker 1>autonomous organization. A DOW runs by using rules called smart

0:40:16.440 --> 0:40:21.800
<v Speaker 1>contracts to guide specific actions in pursuit of a larger goal.

0:40:22.320 --> 0:40:27.200
<v Speaker 1>So the smart contracts essentially take action when certain criteria

0:40:27.320 --> 0:40:29.839
<v Speaker 1>are met. You can think of it as, let's say

0:40:29.880 --> 0:40:32.120
<v Speaker 1>that you got like a long term goal, and you

0:40:32.200 --> 0:40:35.040
<v Speaker 1>break down that goal into steps, the steps you need

0:40:35.080 --> 0:40:37.640
<v Speaker 1>to take in order to achieve your goal. The smart

0:40:37.680 --> 0:40:42.600
<v Speaker 1>contracts represent the action points of those steps, and if

0:40:42.600 --> 0:40:45.680
<v Speaker 1>you can think of them in very simple programming terms,

0:40:46.280 --> 0:40:48.279
<v Speaker 1>you can think of a smart contract as being kind

0:40:48.320 --> 0:40:51.600
<v Speaker 1>of an if then statement like Let's say a very

0:40:51.680 --> 0:40:54.520
<v Speaker 1>simple one is that you join a dow that's going

0:40:54.560 --> 0:40:59.439
<v Speaker 1>to be investing in bitcoin ultimately and maybe the if

0:40:59.480 --> 0:41:02.320
<v Speaker 1>then stay and as if the value of bitcoin drops

0:41:02.480 --> 0:41:08.239
<v Speaker 1>below twenty thousand US dollars per bitcoin, buy x dollars

0:41:08.360 --> 0:41:12.280
<v Speaker 1>value in bitcoin. Then if the value bitcoin is above

0:41:12.360 --> 0:41:15.920
<v Speaker 1>twenty thousand dollars, the smart contract doesn't take any action.

0:41:16.000 --> 0:41:19.239
<v Speaker 1>But if the value drops bid leath twenty thousand, the

0:41:19.320 --> 0:41:22.239
<v Speaker 1>smart contract comes into play and the doll starts to

0:41:22.280 --> 0:41:26.760
<v Speaker 1>buy a bitcoin, with other smart contracts deciding when it stops.

0:41:26.840 --> 0:41:30.439
<v Speaker 1>Like there could be another if then, like if the

0:41:30.600 --> 0:41:35.920
<v Speaker 1>amount in the doll's treasury drops below x amount of dollars,

0:41:35.920 --> 0:41:41.680
<v Speaker 1>stop all purchasing activities. This is an extremely basic, oversimplified example,

0:41:41.960 --> 0:41:44.520
<v Speaker 1>mind you, but it's one that I thought could be helpful.

0:41:44.840 --> 0:41:48.720
<v Speaker 1>So that's the autonomous part. You have these smart contracts

0:41:48.760 --> 0:41:51.480
<v Speaker 1>that are doing the work so that humans don't have

0:41:51.560 --> 0:41:55.480
<v Speaker 1>to assuming that the conditions are met for the smart

0:41:55.520 --> 0:42:01.720
<v Speaker 1>contract to actually come to play. Otherwise remains dormant and

0:42:02.320 --> 0:42:07.480
<v Speaker 1>all the while it's trying to achieve this shared goal. Now,

0:42:07.520 --> 0:42:11.360
<v Speaker 1>the humans as the part of the DOO, they collectively

0:42:11.440 --> 0:42:15.960
<v Speaker 1>decide what the smart contracts do. So. It might be

0:42:16.080 --> 0:42:18.000
<v Speaker 1>that a DOO exists for a while and someone in

0:42:18.000 --> 0:42:21.479
<v Speaker 1>the organization says, you know, this is not the most

0:42:21.480 --> 0:42:25.840
<v Speaker 1>effective way we could do this. These smart contracts are clumsy.

0:42:26.080 --> 0:42:29.960
<v Speaker 1>They are not achieving our goal efficiently. Let's do it

0:42:30.040 --> 0:42:32.880
<v Speaker 1>this other way, where we'll rework the smart contracts so

0:42:32.920 --> 0:42:36.399
<v Speaker 1>they work under these new conditions. Well, then the group

0:42:36.480 --> 0:42:39.840
<v Speaker 1>would have to decide and come to a consensus about

0:42:39.840 --> 0:42:44.120
<v Speaker 1>whether or not to adopt or reject that proposal, and

0:42:44.160 --> 0:42:48.200
<v Speaker 1>the DOW would just keep on behaving autonomously. It would change, however,

0:42:48.440 --> 0:42:52.200
<v Speaker 1>if the consensus agreed on the change, and then people

0:42:52.520 --> 0:42:57.279
<v Speaker 1>implement a new smart contracts and overhauled the DOO, at

0:42:57.280 --> 0:43:00.600
<v Speaker 1>which point it would now behave under these new rules.

0:43:00.600 --> 0:43:03.279
<v Speaker 1>Now for all of this to work, there's got to

0:43:03.280 --> 0:43:06.920
<v Speaker 1>be money involved, right, Like this stuff like, it doesn't

0:43:06.960 --> 0:43:10.319
<v Speaker 1>matter what your doll is are, what your goals are,

0:43:10.600 --> 0:43:13.040
<v Speaker 1>or anything like that if there's no money behind it,

0:43:13.080 --> 0:43:17.800
<v Speaker 1>because nothing gets done. So your typical doll receives outside investment.

0:43:18.040 --> 0:43:22.520
<v Speaker 1>You typically are seeking capitalists to invest into the DOO,

0:43:23.480 --> 0:43:27.000
<v Speaker 1>and then the members of the doll also have to

0:43:27.040 --> 0:43:30.080
<v Speaker 1>hand over their cold hard cash in return for tokens

0:43:30.640 --> 0:43:33.760
<v Speaker 1>that cold hard cash, maybe in the form of cryptocurrencies

0:43:33.800 --> 0:43:37.799
<v Speaker 1>like ether, but you do this to purchase tokens that

0:43:37.840 --> 0:43:43.160
<v Speaker 1>represents membership and voting power within the organization. So these

0:43:43.160 --> 0:43:46.880
<v Speaker 1>are digital tokens. They're similar to cryptocurrency, except instead of

0:43:46.880 --> 0:43:49.879
<v Speaker 1>behaving like a currency, and don't get me started, because

0:43:49.960 --> 0:43:53.279
<v Speaker 1>cryptocurrency doesn't always behave like a currency. In fact, many

0:43:53.320 --> 0:43:58.280
<v Speaker 1>times it doesn't, but that's a separate topic. They behave

0:43:58.400 --> 0:44:01.560
<v Speaker 1>like a share in the overall organization, and you can

0:44:01.560 --> 0:44:03.879
<v Speaker 1>own more than one token. You can own as many

0:44:03.920 --> 0:44:07.319
<v Speaker 1>tokens as you want to buy that the organization will

0:44:07.360 --> 0:44:12.320
<v Speaker 1>meant anyway. And these collected funds that people have poured

0:44:12.400 --> 0:44:16.719
<v Speaker 1>into the TAO, they become the treasury for this organization.

0:44:17.200 --> 0:44:20.439
<v Speaker 1>The members get to vote on how the organization will

0:44:20.520 --> 0:44:23.279
<v Speaker 1>direct the money in the treasury to be spent in

0:44:23.280 --> 0:44:26.040
<v Speaker 1>its effort to achieve whatever the goals of the organization

0:44:26.120 --> 0:44:28.680
<v Speaker 1>happened to be. All right, let's talk about a couple

0:44:28.680 --> 0:44:32.080
<v Speaker 1>of specific doos for a moment to understand some more

0:44:32.560 --> 0:44:36.880
<v Speaker 1>issues with this approach. Way back in April twenty sixteen,

0:44:37.280 --> 0:44:40.200
<v Speaker 1>a group of investors got together. They pulled a huge

0:44:40.239 --> 0:44:44.520
<v Speaker 1>amount of money into an organization that they called the Tao.

0:44:45.400 --> 0:44:47.839
<v Speaker 1>It was meant to serve as a venture capital fund,

0:44:47.880 --> 0:44:49.759
<v Speaker 1>so in many ways, the idea here was to give

0:44:50.040 --> 0:44:54.440
<v Speaker 1>smaller investors the chance to take part in bigger investment opportunities,

0:44:54.600 --> 0:44:57.880
<v Speaker 1>the kind that you would normally see huge VC firms

0:44:57.920 --> 0:45:03.239
<v Speaker 1>participate in when funding a startup, for example. Unfortunately, the

0:45:03.320 --> 0:45:07.880
<v Speaker 1>group hit a major snag. So the Dow's token also

0:45:08.120 --> 0:45:13.200
<v Speaker 1>called DOO. Dao was listed on cryptocurrency exchanges and it

0:45:13.239 --> 0:45:16.560
<v Speaker 1>was built on top of the Ethereum blockchain. But the

0:45:16.640 --> 0:45:20.000
<v Speaker 1>Dow's security had a really serious vulnerability in it, and

0:45:20.239 --> 0:45:22.759
<v Speaker 1>in June of twenty sixteen, just a couple of months

0:45:22.760 --> 0:45:27.520
<v Speaker 1>after it got started, someone stole oh about a third

0:45:27.560 --> 0:45:31.840
<v Speaker 1>of the money in the organization's treasury. That was around

0:45:31.840 --> 0:45:37.400
<v Speaker 1>fifty million dollars worth of Ether currency that was stolen

0:45:38.080 --> 0:45:41.520
<v Speaker 1>from the DOO and the stolen funds were moved into

0:45:41.880 --> 0:45:46.719
<v Speaker 1>a different Ethereum account. However, thankfully, the dow had some

0:45:46.760 --> 0:45:52.080
<v Speaker 1>smart contracts that put some some limitations on this. The

0:45:52.600 --> 0:45:55.319
<v Speaker 1>money had a twenty eight day holding period on it,

0:45:55.800 --> 0:45:59.279
<v Speaker 1>so the people who who conducted this theft were not

0:45:59.360 --> 0:46:03.120
<v Speaker 1>able to access the money and then withdraw it, So

0:46:03.680 --> 0:46:06.920
<v Speaker 1>there was a ticking clock that was going where there

0:46:07.000 --> 0:46:09.520
<v Speaker 1>was this twenty eight day hold on the money in

0:46:09.560 --> 0:46:12.440
<v Speaker 1>this account, and then the ethereum community had to decide

0:46:13.080 --> 0:46:16.840
<v Speaker 1>want to do about it, and some wanted to reverse

0:46:16.880 --> 0:46:19.680
<v Speaker 1>the transaction and return the funds to the DOW and

0:46:19.719 --> 0:46:24.680
<v Speaker 1>its investors because they had been stolen from even though

0:46:25.080 --> 0:46:26.960
<v Speaker 1>some would say, well, it was due to the fact

0:46:27.000 --> 0:46:30.879
<v Speaker 1>that they had poor security measures in place, Others said, yeah,

0:46:30.920 --> 0:46:34.320
<v Speaker 1>but that you know, you can't blame them for a theft.

0:46:34.320 --> 0:46:37.560
<v Speaker 1>A theft is an action taken by someone else, right,

0:46:37.800 --> 0:46:40.360
<v Speaker 1>It's not like they misplaced the money, It's that someone

0:46:40.880 --> 0:46:45.239
<v Speaker 1>purposefully redirected money. So there was some people who said,

0:46:45.280 --> 0:46:47.440
<v Speaker 1>let's reverse that transaction, but that means we're gonna have

0:46:47.440 --> 0:46:50.200
<v Speaker 1>to go back in the chain and change that, and

0:46:50.239 --> 0:46:53.160
<v Speaker 1>as we've said, that means changes all the way forward

0:46:53.239 --> 0:46:56.240
<v Speaker 1>down the chain from that point, and that can cause

0:46:56.440 --> 0:46:59.359
<v Speaker 1>a headache for anyone else who's done transactions on this chain.

0:47:00.000 --> 0:47:01.600
<v Speaker 1>The people are saying, no, no, no, no no, no no no.

0:47:02.080 --> 0:47:04.279
<v Speaker 1>I don't want that to mess with everything else. We

0:47:04.320 --> 0:47:06.759
<v Speaker 1>don't want to upset the whole apple cart because of

0:47:06.760 --> 0:47:11.640
<v Speaker 1>this one instance. The theft was awful it technically didn't

0:47:11.719 --> 0:47:15.040
<v Speaker 1>violate the rules because the rules were constructed poorly, but

0:47:15.080 --> 0:47:18.720
<v Speaker 1>it's clearly an awful thing. But we don't want everything

0:47:18.719 --> 0:47:21.879
<v Speaker 1>else to suffer because of this one incident, so we

0:47:21.920 --> 0:47:26.080
<v Speaker 1>have to keep it going. Ultimately, Ethereum had a hard fork.

0:47:26.680 --> 0:47:30.319
<v Speaker 1>The original version of Ethereum continued as Ethereum Classic, and

0:47:30.400 --> 0:47:32.839
<v Speaker 1>the new version, which returned the funds to the TAO,

0:47:33.360 --> 0:47:38.680
<v Speaker 1>became Ethereum Blockchain. There are other examples of DOO as well,

0:47:38.760 --> 0:47:42.120
<v Speaker 1>including Constitution Dow, which formed to purchase a copy of

0:47:42.160 --> 0:47:46.200
<v Speaker 1>the US Constitution. I referenced that earlier in this episode,

0:47:46.600 --> 0:47:50.640
<v Speaker 1>and that's an interesting story too, and I have a

0:47:50.640 --> 0:47:53.960
<v Speaker 1>little more to say about that, but we're getting super long,

0:47:54.000 --> 0:47:56.200
<v Speaker 1>so we're going to take another quick break. When we

0:47:56.239 --> 0:48:08.120
<v Speaker 1>come back, I will wrap all this up. Okay, I

0:48:08.200 --> 0:48:10.440
<v Speaker 1>know it's an epic episode. I don't usually have that

0:48:10.520 --> 0:48:13.200
<v Speaker 1>many breaks in one, but this one I felt was

0:48:13.400 --> 0:48:16.000
<v Speaker 1>a great question and it was really important. So we're

0:48:16.000 --> 0:48:19.520
<v Speaker 1>getting back to Constitution Dow. We get this DOO where

0:48:19.600 --> 0:48:22.719
<v Speaker 1>you have a group of investors who collectively their goal

0:48:22.880 --> 0:48:27.200
<v Speaker 1>is to purchase an original copy of the United States

0:48:27.239 --> 0:48:31.560
<v Speaker 1>Constitution that was going on auction at Sotheby's. Members of

0:48:31.600 --> 0:48:35.960
<v Speaker 1>the TAO invested heavily into this organization. I want to

0:48:35.960 --> 0:48:40.440
<v Speaker 1>say they raised nearly fifty million dollars. However, not all

0:48:40.480 --> 0:48:45.400
<v Speaker 1>of that money would be available for bidding on the

0:48:45.480 --> 0:48:48.239
<v Speaker 1>copy of the Constitution for reasons I'll get into in

0:48:48.239 --> 0:48:53.960
<v Speaker 1>a second. Ultimately, the DOAO did not have the highest bid.

0:48:54.400 --> 0:48:56.920
<v Speaker 1>The highest bid was for more than forty three million

0:48:56.960 --> 0:49:01.800
<v Speaker 1>dollars and the Constitution dow law this auction. Now, again,

0:49:02.239 --> 0:49:06.080
<v Speaker 1>the only purpose for the existence of this dow was

0:49:06.120 --> 0:49:10.879
<v Speaker 1>to purchase that copy. So once the auction was over,

0:49:11.239 --> 0:49:14.680
<v Speaker 1>the DOW had no purpose anymore and it was going

0:49:14.760 --> 0:49:18.520
<v Speaker 1>to just disband. So you had all these people who

0:49:18.520 --> 0:49:20.440
<v Speaker 1>had poured money into it. They wanted to get their

0:49:20.440 --> 0:49:22.920
<v Speaker 1>money back because the thing that they wanted to have

0:49:23.000 --> 0:49:26.680
<v Speaker 1>happened did not happen. Here's where they started to run

0:49:26.719 --> 0:49:29.600
<v Speaker 1>into problems, and it is an issue with dows that

0:49:29.640 --> 0:49:33.680
<v Speaker 1>are built on top of blockchain. For blockchain transactions to happen,

0:49:34.480 --> 0:49:38.320
<v Speaker 1>you have to cover the costs of the computational power

0:49:38.400 --> 0:49:44.200
<v Speaker 1>needed to process the transactions in question. As part of that,

0:49:44.239 --> 0:49:47.040
<v Speaker 1>there is a transaction fee for every transaction you make.

0:49:47.680 --> 0:49:50.640
<v Speaker 1>It's not that different from transaction fees you encounter when

0:49:50.640 --> 0:49:54.720
<v Speaker 1>you use things like credit cards. Often these transaction fees

0:49:54.800 --> 0:49:58.040
<v Speaker 1>are invisible to the consumer. The vendor is the one

0:49:58.080 --> 0:50:00.520
<v Speaker 1>who has to handle it. That's why you you go

0:50:00.560 --> 0:50:02.439
<v Speaker 1>to some stores you might see a sign that says

0:50:03.080 --> 0:50:06.280
<v Speaker 1>no credit card transactions for below a certain amount of money.

0:50:06.640 --> 0:50:10.120
<v Speaker 1>It's because there are transaction fees which cut into the

0:50:10.160 --> 0:50:14.880
<v Speaker 1>money that the vendor gets in that actual transaction right well.

0:50:14.920 --> 0:50:19.440
<v Speaker 1>With cryptocurrency, the transaction fees also known as gas fees,

0:50:19.560 --> 0:50:23.880
<v Speaker 1>to cover the cost of the computational resources needed to

0:50:23.920 --> 0:50:28.440
<v Speaker 1>handle these transactions. They can be significant, especially for proof

0:50:28.480 --> 0:50:35.240
<v Speaker 1>of work based cryptocurrencies, which Ether was at this point.

0:50:35.760 --> 0:50:38.480
<v Speaker 1>Ethereum has since moved to a proof of stake, which

0:50:38.560 --> 0:50:41.120
<v Speaker 1>is a different approach to cryptocurrency than proof of work.

0:50:41.520 --> 0:50:43.680
<v Speaker 1>The proof of work is what Ethereum worked on at

0:50:43.719 --> 0:50:47.359
<v Speaker 1>the time that this happened. It's also the way bitcoin works.

0:50:47.440 --> 0:50:51.839
<v Speaker 1>This is where you have bitcoin or cryptocurrency mining operations

0:50:52.120 --> 0:50:55.439
<v Speaker 1>that are competing against each other to verify a block

0:50:55.480 --> 0:50:58.520
<v Speaker 1>of transactions. In return, you get awarded a certain number

0:50:59.080 --> 0:51:03.879
<v Speaker 1>of crypto coins, so that is a gas fee. The

0:51:03.880 --> 0:51:07.680
<v Speaker 1>problem is the people who engaged in constitution DAO. The

0:51:07.719 --> 0:51:11.760
<v Speaker 1>people who invested into it, they were investing relatively small

0:51:11.800 --> 0:51:14.359
<v Speaker 1>amounts of money. I mean like like sometimes like one

0:51:14.440 --> 0:51:17.360
<v Speaker 1>hundred bucks, two hundred bucks, something like that, which is

0:51:17.520 --> 0:51:20.279
<v Speaker 1>you know, enough for It's considered a large amount of

0:51:20.280 --> 0:51:22.400
<v Speaker 1>money for a lot of people, but in the grand

0:51:22.440 --> 0:51:25.839
<v Speaker 1>scheme of investments, it's tiny, right. We often talk about

0:51:25.880 --> 0:51:29.280
<v Speaker 1>investors in the tech space who are working on the millions,

0:51:29.320 --> 0:51:32.720
<v Speaker 1>if not billions of dollars scale, But this was something

0:51:33.320 --> 0:51:36.520
<v Speaker 1>that was positioned as a way for the average person

0:51:36.600 --> 0:51:41.040
<v Speaker 1>to be involved in this particular d AO. So you

0:51:41.040 --> 0:51:42.560
<v Speaker 1>had people who are putting in one hundred or two

0:51:42.600 --> 0:51:45.400
<v Speaker 1>hundred bucks. The problem is the gas fees at the time,

0:51:45.800 --> 0:51:49.560
<v Speaker 1>we're ranging at around seventy dollars per transaction. That means

0:51:50.080 --> 0:51:53.040
<v Speaker 1>seventy dollars of your transaction of depositing money into the

0:51:53.080 --> 0:51:56.560
<v Speaker 1>doll is taken out as gas fees, and seventy dollars

0:51:56.640 --> 0:51:59.239
<v Speaker 1>of the transaction has taken out when you withdraw. If

0:51:59.280 --> 0:52:01.640
<v Speaker 1>you put in less than one hundred and forty bucks,

0:52:02.280 --> 0:52:04.880
<v Speaker 1>it meant that the transaction fees were the same amount

0:52:04.960 --> 0:52:08.040
<v Speaker 1>or greater than the money you put in, which means

0:52:08.080 --> 0:52:10.320
<v Speaker 1>you didn't get anything out all that money was gone.

0:52:10.920 --> 0:52:14.839
<v Speaker 1>It got burned away in gas fees. This is an

0:52:14.880 --> 0:52:21.359
<v Speaker 1>issue with the blockchain based organizations. Now the gas fees

0:52:21.360 --> 0:52:25.560
<v Speaker 1>are not always that exorbitant. It's not like we're still

0:52:25.600 --> 0:52:31.319
<v Speaker 1>seeing these crazy fees for all transactions. But it does

0:52:31.400 --> 0:52:35.640
<v Speaker 1>mean that there is risk associated with DAOs. Even if

0:52:36.520 --> 0:52:40.120
<v Speaker 1>you have a DO where you're allowed to withdraw your

0:52:40.120 --> 0:52:42.000
<v Speaker 1>money at any time, you're not going to get the

0:52:42.040 --> 0:52:44.400
<v Speaker 1>same amount of money back as you put in because

0:52:44.440 --> 0:52:46.920
<v Speaker 1>they're going to be these transaction fees that will be

0:52:46.960 --> 0:52:52.120
<v Speaker 1>deducted from those transactions. So you know, if if the

0:52:52.239 --> 0:52:56.680
<v Speaker 1>loss is small, it might be trivial, you might not care.

0:52:56.840 --> 0:52:59.920
<v Speaker 1>But in this particular case with constitution now it was

0:53:00.120 --> 0:53:02.200
<v Speaker 1>one of those things that left a bad taste in

0:53:02.200 --> 0:53:04.200
<v Speaker 1>a lot of people's mouths and made them feel like

0:53:04.400 --> 0:53:09.880
<v Speaker 1>the DOO approach has some real drawbacks. But all that

0:53:09.920 --> 0:53:13.319
<v Speaker 1>being said, we can start to understand why anonymous would

0:53:13.320 --> 0:53:17.960
<v Speaker 1>embrace a DOW because you can participate in a DOO anonymously.

0:53:18.000 --> 0:53:20.239
<v Speaker 1>It's one of the big benefits of blockchain. It's one

0:53:20.280 --> 0:53:26.880
<v Speaker 1>of the foundational concepts of decentralized finance, is this anonymity

0:53:27.280 --> 0:53:31.000
<v Speaker 1>where you are allowed to make these transactions without them

0:53:31.000 --> 0:53:34.000
<v Speaker 1>being tied to your personal identity. So instead of being

0:53:34.080 --> 0:53:38.200
<v Speaker 1>something that is forever associated with you, like every purchase

0:53:38.280 --> 0:53:42.120
<v Speaker 1>on Amazon that you make is associated with you, right,

0:53:42.960 --> 0:53:48.720
<v Speaker 1>and that history of transactions ends up being a portrait

0:53:48.800 --> 0:53:52.040
<v Speaker 1>of who you are as a person that has value. Well,

0:53:52.480 --> 0:53:58.000
<v Speaker 1>these decentralized approaches have anonymity baked into them, so that

0:53:58.920 --> 0:54:02.760
<v Speaker 1>you can purchase whatever you want, it's never tagged with you.

0:54:02.760 --> 0:54:07.400
<v Speaker 1>You can live your life without everyone knowing what it

0:54:07.520 --> 0:54:12.040
<v Speaker 1>is you like or don't like. So that whole market

0:54:12.080 --> 0:54:15.600
<v Speaker 1>of dealing with your information kind of disappears if you're

0:54:15.600 --> 0:54:19.319
<v Speaker 1>doing everything through blockchain, because you can do it through

0:54:19.360 --> 0:54:25.320
<v Speaker 1>this anonymous approach. Obviously that falls right into anonymous's ethos,

0:54:25.800 --> 0:54:32.040
<v Speaker 1>so you understand where that fits with the anonymous approach. Also,

0:54:32.160 --> 0:54:35.280
<v Speaker 1>you participate in the governance of the group, right, because

0:54:35.320 --> 0:54:38.800
<v Speaker 1>you have these tokens that represent your membership, that represents

0:54:38.800 --> 0:54:42.520
<v Speaker 1>your voting power, So you can vote for or against

0:54:43.040 --> 0:54:48.800
<v Speaker 1>measures proposals within the TAO that are designed to achieve

0:54:48.840 --> 0:54:52.720
<v Speaker 1>certain goals or complete certain tasks. You can be an

0:54:52.760 --> 0:54:56.000
<v Speaker 1>active participant in that, and that way you can have

0:54:56.040 --> 0:55:00.400
<v Speaker 1>this group of people who collectively have some simil allure

0:55:01.000 --> 0:55:05.440
<v Speaker 1>beliefs and values, but not necessarily identical ones, and you

0:55:05.480 --> 0:55:08.839
<v Speaker 1>can hash out what the group will and will not do.

0:55:09.239 --> 0:55:13.560
<v Speaker 1>So instead of having like a splinter group go off

0:55:13.600 --> 0:55:19.160
<v Speaker 1>and do something and then the whole of that operation

0:55:19.239 --> 0:55:21.960
<v Speaker 1>gets associated with Anonymous, when the whole group may not

0:55:22.040 --> 0:55:25.440
<v Speaker 1>have approved of it, you now have a system where

0:55:26.000 --> 0:55:31.680
<v Speaker 1>ideas can be approved or rejected collectively. So that obviously

0:55:32.080 --> 0:55:37.279
<v Speaker 1>folds in with Anonymous's ethos as well, and I can

0:55:37.400 --> 0:55:40.440
<v Speaker 1>understand that. Now, let's talk about the sovereign part of

0:55:40.440 --> 0:55:43.000
<v Speaker 1>the name of sovereign Dow. Remember that's the name of

0:55:43.000 --> 0:55:47.759
<v Speaker 1>the dow that Anonymous's video was pointing people to. Sovereignty

0:55:47.880 --> 0:55:53.760
<v Speaker 1>relates to authority, So it's who holds authority over an entity,

0:55:53.880 --> 0:55:58.239
<v Speaker 1>whether that's an individual, an organization, a nation. So a

0:55:58.280 --> 0:56:03.239
<v Speaker 1>sovereign nation has ultimate authority over its governance, it has

0:56:03.280 --> 0:56:08.920
<v Speaker 1>authority over its borders. A country that invades a different country,

0:56:08.920 --> 0:56:14.640
<v Speaker 1>like Russia invading Ukraine violates the other nation's sovereignty. Russia

0:56:14.800 --> 0:56:18.960
<v Speaker 1>violated Ukraine's sovereignty by invading it and claiming that it

0:56:19.360 --> 0:56:24.480
<v Speaker 1>had ownership over territories that internationally are thought to belong

0:56:24.520 --> 0:56:27.960
<v Speaker 1>to Ukraine. Sovereignty is something that has to be recognized

0:56:28.000 --> 0:56:32.680
<v Speaker 1>both within and outside of the entity. It's not enough

0:56:33.040 --> 0:56:36.719
<v Speaker 1>for you to declare yourself sovereign. Others have to recognize

0:56:36.719 --> 0:56:39.040
<v Speaker 1>you as sovereign as well, so it becomes a tricky

0:56:39.080 --> 0:56:43.600
<v Speaker 1>thing now. Within blockchain, sovereignty also means partly that the

0:56:43.719 --> 0:56:49.080
<v Speaker 1>organization is independent. It's also resistant to outside interference, so

0:56:49.600 --> 0:56:54.160
<v Speaker 1>it is able to act on its interests without the

0:56:54.160 --> 0:56:59.800
<v Speaker 1>interference of say, regulators or government authorities. Also, sovereignty partly

0:57:00.040 --> 0:57:03.719
<v Speaker 1>first to the fact that the individual members of the

0:57:03.800 --> 0:57:08.000
<v Speaker 1>DAO have the sovereignty to engage in transactions with any

0:57:08.040 --> 0:57:11.799
<v Speaker 1>other members and nothing can stop that. So let's say

0:57:11.800 --> 0:57:15.320
<v Speaker 1>that you and I are both connected to the Ethereum blockchain.

0:57:15.760 --> 0:57:19.200
<v Speaker 1>I could send you ether plus the gas fees needed

0:57:19.240 --> 0:57:22.560
<v Speaker 1>to cover the transaction, and you could accept the ether,

0:57:22.760 --> 0:57:25.160
<v Speaker 1>and no one else in the system would be able

0:57:25.160 --> 0:57:26.840
<v Speaker 1>to stop and say hang on, you can't do that.

0:57:27.800 --> 0:57:31.120
<v Speaker 1>That also plays into the anonymous ethoughts, So you start

0:57:31.160 --> 0:57:37.479
<v Speaker 1>to see where this approach to organization and governance within

0:57:37.520 --> 0:57:42.600
<v Speaker 1>an organization falls in line with the goals of anonymous.

0:57:42.960 --> 0:57:45.640
<v Speaker 1>There are still problems you have to address. You have

0:57:45.680 --> 0:57:51.160
<v Speaker 1>to address how do you handle voting. If someone accumulates

0:57:51.280 --> 0:57:56.280
<v Speaker 1>enough tokens, could they become essentially a bully or banned

0:57:56.280 --> 0:57:58.240
<v Speaker 1>with a few others who also have a lot of tokens,

0:57:58.240 --> 0:58:01.400
<v Speaker 1>and together they become bullies who dictate the moves of

0:58:01.440 --> 0:58:04.920
<v Speaker 1>the organization at the expense of what everyone else wants.

0:58:05.400 --> 0:58:07.480
<v Speaker 1>You have to address that. This can be addressed by

0:58:07.520 --> 0:58:10.240
<v Speaker 1>the way, but it has to be built into the system.

0:58:10.240 --> 0:58:15.120
<v Speaker 1>It can't just be left up chance. Another potential issue

0:58:16.120 --> 0:58:18.160
<v Speaker 1>is if you have lots and lots of members, but

0:58:18.400 --> 0:58:21.040
<v Speaker 1>a lot of them are inactive. If they're inactive, then

0:58:21.040 --> 0:58:24.480
<v Speaker 1>they're not voting. And if you require a certain percentage

0:58:24.480 --> 0:58:29.000
<v Speaker 1>of votes in order to pass particular measures, you may

0:58:29.040 --> 0:58:32.040
<v Speaker 1>never be able to achieve that percentage because of the

0:58:32.120 --> 0:58:36.080
<v Speaker 1>number of inactive accounts that are connected to the system.

0:58:36.160 --> 0:58:38.960
<v Speaker 1>That's also something you can work around, but it's another

0:58:40.440 --> 0:58:46.640
<v Speaker 1>inherent danger with dows. So again, the DOW as a

0:58:46.760 --> 0:58:51.440
<v Speaker 1>concept I think is interesting. I don't think it's a

0:58:51.720 --> 0:58:55.000
<v Speaker 1>cure all solution. It requires a lot of careful thought

0:58:55.680 --> 0:59:00.240
<v Speaker 1>and architecture to make sure that it actually does the

0:59:00.320 --> 0:59:04.040
<v Speaker 1>thing it purports to do, and it doesn't just become

0:59:04.840 --> 0:59:09.160
<v Speaker 1>a way for a single entity or a small group

0:59:09.280 --> 0:59:13.080
<v Speaker 1>to completely take over control of something that's meant to

0:59:13.120 --> 0:59:16.560
<v Speaker 1>be a democratic and decentralized approach. One of the big

0:59:16.640 --> 0:59:18.880
<v Speaker 1>dangers of doos, by the way, is if they are

0:59:18.960 --> 0:59:23.920
<v Speaker 1>not constructed properly, you could potentially enter into a situation where,

0:59:24.920 --> 0:59:29.080
<v Speaker 1>let's say you've got someone who has an enormous number

0:59:29.120 --> 0:59:32.520
<v Speaker 1>of tokens and there are huge contributors, like lots and

0:59:32.560 --> 0:59:35.960
<v Speaker 1>lots of money has been contributed into the treasury. If

0:59:36.000 --> 0:59:42.520
<v Speaker 1>one person has enough power, they could propose a resolution

0:59:43.120 --> 0:59:46.480
<v Speaker 1>to award them the entirety of the treasury, like they

0:59:46.480 --> 0:59:49.360
<v Speaker 1>could just take all the money out of the treasury

0:59:49.360 --> 0:59:52.240
<v Speaker 1>of the Tao, and if they have enough votes to

0:59:52.360 --> 0:59:57.600
<v Speaker 1>make that proposal pass, they could do it. Now. Usually

0:59:57.680 --> 1:00:00.160
<v Speaker 1>you have protections in place where you need to have

1:00:00.520 --> 1:00:04.920
<v Speaker 1>not just a simple majority, but an overwhelming majority for

1:00:05.040 --> 1:00:08.360
<v Speaker 1>something like that to happen, which mitigates that risk. But

1:00:08.440 --> 1:00:12.000
<v Speaker 1>it is a potential risk, and it does say that

1:00:12.040 --> 1:00:15.120
<v Speaker 1>you have to be careful when constructing the tao. As

1:00:15.200 --> 1:00:18.360
<v Speaker 1>for the construction of sovereign Tao, I have no common

1:00:18.440 --> 1:00:21.200
<v Speaker 1>on that. I don't know what they've done, I don't

1:00:21.240 --> 1:00:24.320
<v Speaker 1>know how it's built, I don't know the nature of

1:00:24.360 --> 1:00:29.760
<v Speaker 1>the smart contracts. So I don't know how effective or

1:00:29.880 --> 1:00:35.160
<v Speaker 1>safe or risky it is, but I can say that

1:00:36.040 --> 1:00:40.640
<v Speaker 1>it doesn't surprise me to see Anonymous trying to move

1:00:40.720 --> 1:00:45.960
<v Speaker 1>toward a DOO structure for the purposes of achieving its goals,

1:00:46.760 --> 1:00:52.240
<v Speaker 1>because all of the composite elements of a tao seem

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<v Speaker 1>to fall in line with the core values of Anonymous itself.

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<v Speaker 1>I hope that's there's your question. I know this was

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<v Speaker 1>a super long episode, but I feel like it was

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<v Speaker 1>covering some really important things and again giving us that context.

1:01:07.480 --> 1:01:11.080
<v Speaker 1>We need to understand where stuff comes from and how

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<v Speaker 1>it plays together to really be able to form opinions

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<v Speaker 1>about it. Otherwise our opinion is going to be uninformed,

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<v Speaker 1>and often it means we can make decisions that are

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<v Speaker 1>not necessarily the best for us, simply because we did

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<v Speaker 1>not have a full appreciation of the information that's out there.

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<v Speaker 1>So that was my purpose for going super long with

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<v Speaker 1>this episode, which is funny because typically on Wednesdays I

1:01:34.320 --> 1:01:37.000
<v Speaker 1>aim for tech stuff tidbits that are supposed to be short.

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<v Speaker 1>This is clearly not one of those, all right, If

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<v Speaker 1>you have suggestions for future topics of tech stuff, you

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<v Speaker 1>can reach out to me by tweeting at tech stuff.

1:01:47.080 --> 1:01:51.360
<v Speaker 1>It's tech stuff hsw on Twitter. Send me a message there.

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<v Speaker 1>Or you can download the iHeartRadio app. It's for you

1:01:54.600 --> 1:01:57.280
<v Speaker 1>to download and use. Navigate over to tech Stuff by

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<v Speaker 1>putting it into the little search bar. It'll take it

1:01:59.520 --> 1:02:01.560
<v Speaker 1>to the text page. You can click on the little

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<v Speaker 1>microphone icon and leave me a voice message up to

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<v Speaker 1>thirty seconds in length. Let me know what you would

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<v Speaker 1>like to hear. Or you could be like Nathan and

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<v Speaker 1>do some work, then find an email address for me

1:02:11.360 --> 1:02:14.680
<v Speaker 1>out there in the world and send me an email.

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<v Speaker 1>I'm not going to share my email because I already

1:02:17.360 --> 1:02:21.400
<v Speaker 1>get a ton of stuff and I can't even file

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<v Speaker 1>through all of it. But if it gets through to

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<v Speaker 1>me and it's interesting, yeah, I'll tackle it. Good job, Nathan, Yeah, jerk,

1:02:29.960 --> 1:02:33.120
<v Speaker 1>I don't mean that. I'm just joking because you found

1:02:33.160 --> 1:02:36.040
<v Speaker 1>a way to email me, all right. One way to

1:02:36.080 --> 1:02:37.959
<v Speaker 1>email me, by the way, is if you're a fan

1:02:38.120 --> 1:02:41.640
<v Speaker 1>of Ridiculous History, because occasionally Ben Bolan likes to give

1:02:41.640 --> 1:02:45.240
<v Speaker 1>out my email address as the complaints department. So there

1:02:45.280 --> 1:02:47.640
<v Speaker 1>you go. All right, that's it. I'll talk to you

1:02:47.680 --> 1:02:58.080
<v Speaker 1>again really soon. Text stuff is an iHeartRadio production. For

1:02:58.240 --> 1:03:03.080
<v Speaker 1>more podcasts from iHeartRadio, visit the iHeartRadio app, Apple Podcasts,

1:03:03.200 --> 1:03:05.200
<v Speaker 1>or wherever you listen to your favorite shows.