WEBVTT - Khan Says Blockchain Provides Piece of Mind

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Messer and

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<v Speaker 1>Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Well, he's

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<v Speaker 1>the director of the Amazon Prime documentary Blockchain City, also

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<v Speaker 1>the upcoming film Bitcoin Dilemma. Also an author of several books.

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<v Speaker 1>It's Ian Khan, technology futurist, documentary and author joining us

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<v Speaker 1>on the phone from Toronto. Ian, thanks so much for

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<v Speaker 1>joining us on Bloomberg Business Week. How you doing, bo Well, Hey,

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<v Speaker 1>thanks for having me and today I'm actually in Princeton.

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<v Speaker 1>Oh you're close by. Great to hear. Um. Well, next

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<v Speaker 1>time we're gonna have to get you in the studio

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<v Speaker 1>here at Bloomberg Headquarters. Ian, I wanted to talk a

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<v Speaker 1>little bit about sort of start at the top here

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<v Speaker 1>because we're lucky we have quite a few minutes with

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<v Speaker 1>you today. Um, explain blockchain and the promise that you

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<v Speaker 1>think it offers. Still, blockchain, I I think is the

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<v Speaker 1>most confused technology. But really if for me, what blockchain

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<v Speaker 1>significant signifies is piece of mind. That's how I equate

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<v Speaker 1>that technology to a result, piece of mind because it

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<v Speaker 1>takes care of trust issues, it takes care of packing,

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<v Speaker 1>it takes care of data protection takes off a lot

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<v Speaker 1>of things that traditionally we have been unable to do

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<v Speaker 1>with databases and computer technologies that we've had. And that's

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<v Speaker 1>what blockchain does in a very complicated way. Yes, it's

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<v Speaker 1>being defined as a ledger in the sky, and it's

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<v Speaker 1>an imputable ledger of records. But but hey, I I

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<v Speaker 1>love the simplified definition, which is peace of mind technology,

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<v Speaker 1>something that creates trust and enables trust. Give me a

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<v Speaker 1>more tangible example than that, something that you think has

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<v Speaker 1>been improved by blockchain technology or or will will very

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<v Speaker 1>soon be improved by the blockchain. Of course, there's many,

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<v Speaker 1>many different use cases of blockchain. I love the ones

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<v Speaker 1>that uh that are happening in the food industry. Australians

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<v Speaker 1>be exports are about the fake Australian beef exports counterfeit.

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<v Speaker 1>Australian beef exports are about two billion dollar industry and uh,

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<v Speaker 1>these foods we don't know what the origin is, but

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<v Speaker 1>their scamped is Australian beef. Uh. There's a company, I believe,

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<v Speaker 1>beef Chain, that's trying to solve this problem by certifying

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<v Speaker 1>beef that originates from Australia. It's stamped at the beginning

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<v Speaker 1>of the process of export, and you can scan the

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<v Speaker 1>package at the grocery store and and and see the

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<v Speaker 1>whole journey that this packet of beef has taken. The

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<v Speaker 1>examples such as Walnut is doing something with with produced

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<v Speaker 1>tracking UH and UH lettuce tracking, and it's got uses

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<v Speaker 1>when you're tracking the spread of diseases like feminela or

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<v Speaker 1>any other contamination of foods. There's examples from the logistics

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<v Speaker 1>industry where transportation off certain types of equipment or goods

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<v Speaker 1>or vaccine as an example, have to be done under

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<v Speaker 1>controlled temperature, under controlled conditions. And in a traditional industry,

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<v Speaker 1>traditional refrigeration industry, if the power goes out on one

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<v Speaker 1>of these units, it's kind of hard to figure out

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<v Speaker 1>what has happened. But with blockchain enables container ships that

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<v Speaker 1>are temperature controlled, you can verify that information really quick

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<v Speaker 1>and figure out that there's something wrong wrong. The reason

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<v Speaker 1>why we're able to do this is the god because

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<v Speaker 1>you can't manipulate a blockchain database. You're unable to UH

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<v Speaker 1>insert records in it or or modify it in any

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<v Speaker 1>way that is not authorized. So once let's use this

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<v Speaker 1>beef example from Australia that you talked about. So once

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<v Speaker 1>it's been been and I don't want to say stamped

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<v Speaker 1>on the blockchain, but how how is how is it

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<v Speaker 1>associated with the blockchain? Like what is the physical thing

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<v Speaker 1>that becomes a part of this beef on the package

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<v Speaker 1>that that puts it on the blockchain. So blockchain is

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<v Speaker 1>essentially a database and everyday people you need, the industry,

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<v Speaker 1>the farmer are never going to touch blockchain as such,

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<v Speaker 1>but it powers the underlying system on which it needs

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<v Speaker 1>add it's something that associates it with the blockchain, right, correct, correct,

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<v Speaker 1>And you can use r ify the your barcodes not

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<v Speaker 1>give you an example. So at the beginning of the farm,

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<v Speaker 1>you can have let's say cattle that are at this

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<v Speaker 1>farm and they're taken to the harvesting site. Right there

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<v Speaker 1>at that site, you have a barcode that's generated associated

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<v Speaker 1>with a certain animal that tags that carcass to its

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<v Speaker 1>journey as its as its processed and package. That barcode

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<v Speaker 1>signifies the start of that journey. As that barko progresses

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<v Speaker 1>through the processing plant to the shipping to the logistics

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<v Speaker 1>and it reaches the end of its journey, You're actually

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<v Speaker 1>information is continuously added to the sight with us because

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<v Speaker 1>we're gonna do some news and come back in just

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<v Speaker 1>a few minutes and also talk cryptocurrency because we haven't

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<v Speaker 1>talked about that as a form of use of the

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<v Speaker 1>blockchain and and con technology futurist, let's get right back

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<v Speaker 1>to it with Ian Cohn. He's the director of the

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<v Speaker 1>Amazon Prime documentary Blockchain City, also the upcoming film Bitcoin Dilemma,

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<v Speaker 1>the author of several books as well. He joins us

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<v Speaker 1>on the phone from Princeton, New Jersey. Ian, when right

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<v Speaker 1>before the break, we were talking all about applications for

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<v Speaker 1>blockchain that we're what I would consider not non financial.

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<v Speaker 1>You didn't mention cryptocurrency once, so I want to dive

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<v Speaker 1>into that right now. Why Why didn't you mention cryptocurrency

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<v Speaker 1>as one of the top applications for blockchain technology? Because

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<v Speaker 1>I think that's where a lot of people associated with Absolutely,

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<v Speaker 1>I think cryptocurrency is one important side off blockchain, but

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<v Speaker 1>not the most important side. And that's that's my opinion. Uh,

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<v Speaker 1>And it's because cryptocurrencies are in a very initial development

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<v Speaker 1>phase right now. Yes, Bitcoin has been out there for

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<v Speaker 1>the last ten twelve years, but it's waves ahead until

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<v Speaker 1>the financial systems globally accept criptal currencies if they do

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<v Speaker 1>as a stable form of payment or or asset class.

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<v Speaker 1>But that's happening very very slowly. The other applications of blockchain,

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<v Speaker 1>in fact, are proceeding really much rapidly, and the applications

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<v Speaker 1>are tremendous, from insurance industry to logistics, to food, to retail, education,

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<v Speaker 1>music rights, intellectual property. There's a limitless number of applications.

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<v Speaker 1>Crypto is just one of them. When do we get

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<v Speaker 1>to a point where people like me don't ask you

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<v Speaker 1>questions about applications for blockchain technology? That is, where it's

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<v Speaker 1>something that is so present in our lives. If ever

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<v Speaker 1>that we'll all know what it does, yep. I think

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<v Speaker 1>it will be still some time, and it might happen

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<v Speaker 1>in a way in different ways across the world. It

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<v Speaker 1>may happen in certain regions or countries that are faster

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<v Speaker 1>adopting digital any or cryptocurrencies, and it might take decades

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<v Speaker 1>in some other parts of off the world. Uh. And

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<v Speaker 1>it all depends on adoption. It all depends on how

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<v Speaker 1>progressive financial systems and governments in those countries are. We're

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<v Speaker 1>seeing some some countries adopt bitcoin as a form of

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<v Speaker 1>currency of Salador just did that some time ago, although yes,

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<v Speaker 1>a very small nation economically, but but that push has

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<v Speaker 1>started to happen. Will that happen in the United States

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<v Speaker 1>or China or once the world's largest economies. It's it's

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<v Speaker 1>a big, big change, and I don't believe it will

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<v Speaker 1>happen just in a few days. Do you think it

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<v Speaker 1>will happen with bitcoin that will be the cryptocurrency or

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<v Speaker 1>do you think you know? One thing that I hear

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<v Speaker 1>from a lot of experts in people in the spaces,

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<v Speaker 1>they've said, okay, well, you know, the blockchain technology is

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<v Speaker 1>like the underlying technology that the Internet was in the

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<v Speaker 1>A well days and and a well though is is

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<v Speaker 1>like the cryptocurrency of of of of bitcoin. So the

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<v Speaker 1>technology is there, but that's a very really technology and

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<v Speaker 1>what you're going to see built on it will significantly

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<v Speaker 1>surpass what's available right now. I think bitcoin is of

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<v Speaker 1>it has the hype associated with it because it was

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<v Speaker 1>the first cryptocurrency that was out there. It is it

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<v Speaker 1>has a very limited number of cryptocurrencies bitcoins that will

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<v Speaker 1>ever be generated twenty one million, and so it's got

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<v Speaker 1>a few of those factors associated with it. In my

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<v Speaker 1>personal opinion, it still has challenges, it's still has to

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<v Speaker 1>overcome those challenges. And some newer cryptocurrencies are really far ahead,

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<v Speaker 1>very faster, uh and and have got much more utility

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<v Speaker 1>than just bitcoin. But it's it's it's one of the

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<v Speaker 1>popular ones right because it was the first to market.

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<v Speaker 1>And right now is also a time of hype for cryptocurrencies,

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<v Speaker 1>and we've seen that, uh you know, when when certain

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<v Speaker 1>people are tweeting about bitcoin, the prices are going up

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<v Speaker 1>when they're yes elon musk for specifically specifically. So it's

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<v Speaker 1>a very hyper driven um era where consumers are taken

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<v Speaker 1>by what popular figures in the tech industry are doing

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<v Speaker 1>and which is not right, which is which is a

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<v Speaker 1>challenge with bitcoin that it's it's its own fundamentals are

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<v Speaker 1>better than that and it doesn't deserve to be taken

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<v Speaker 1>up and down like that. So that's that's my opinion

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<v Speaker 1>on that. And do you own any cryptocurrencies? I do,

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<v Speaker 1>and it's a very instantesimally small amount. I have deliberately

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<v Speaker 1>done that to stay away from any kind of uh,

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<v Speaker 1>you know question that I might it may arise I

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<v Speaker 1>I own next to zero cryptocurrencies. Are there certain cryptocurrencies

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<v Speaker 1>though that you are more bullish on than than others

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<v Speaker 1>in the short term. I think, of course bitcoin see

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<v Speaker 1>is the most popular one. UM. I like ra hashgraph

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<v Speaker 1>uh and UH. I like Ripple a little bit, but

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<v Speaker 1>I wouldn't I wouldn't push anybody. We can buy them

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<v Speaker 1>or not buy them. Do your due diligence because there

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<v Speaker 1>are so many factors that are driving these crypto currencies.

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<v Speaker 1>Some are fast, some have a limited quantity, some have

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<v Speaker 1>an underlying technology. UM and I interviewed somebody on my

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<v Speaker 1>documentary The bitcoint Dilemma. It's Dr Lehman Beard who invented

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<v Speaker 1>the thea hash grass and it's a it's a cryptocurrency

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<v Speaker 1>that's much faster than bitcoin, and it's got some really

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<v Speaker 1>good things happening with it. But please do your due

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<v Speaker 1>diligence right and don't go with hype. Do your due diligence. Hey, UM,

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<v Speaker 1>when you think about the future uses of of cryptocurrency,

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<v Speaker 1>I wonder if you do see you know, like a

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<v Speaker 1>country like China actually going through and building its own

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<v Speaker 1>digital currency and what that means. I think China is

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<v Speaker 1>doing something very interesting, and we know they've gone cracked

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<v Speaker 1>down signal sequently on cryptocurrency mining, which means they're not

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<v Speaker 1>entertaining crypto currency mining and China great, Now what do?

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<v Speaker 1>What will they do? There's a couple of things they

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<v Speaker 1>could be doing. They could either be creating their own

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<v Speaker 1>cryptocurrency and starting to plan the next few years and

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<v Speaker 1>decades and how that would work. Uh, and also they

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<v Speaker 1>could be looking at the digitization off the off their

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<v Speaker 1>own currency that you want, and so there's two different

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<v Speaker 1>things they could be doing. China is really UH an

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<v Speaker 1>unpredictable adversary. He really cannot predict what China is doing

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<v Speaker 1>because of of all the reasons underlying what China does.

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<v Speaker 1>Be surprised if they come up with their own cryptocurrency

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<v Speaker 1>that they use internally, but at a global level, it

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<v Speaker 1>might be a little bit of a different take. Do

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<v Speaker 1>you think the US will be able to regulate cryptocurrency.

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<v Speaker 1>I think it's going to be at least a decade

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<v Speaker 1>before that regulation happens. Although states like Texas have started

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<v Speaker 1>putting the framework in place, they're attracting mining companies and

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<v Speaker 1>they're kind of kind of working on that regulation. I

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<v Speaker 1>In overall, the United States as a country, it might

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<v Speaker 1>be a while before that happens. Ian Con I love

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<v Speaker 1>talking cryptocurrency. Thank you so much for taking the time

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<v Speaker 1>and joining us on Bloomberg business Week Radio. That Ian Coon,

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<v Speaker 1>technology futurist, documentary and author joining us live on the

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<v Speaker 1>phone from Princeton, New Jersey.