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so I think it was really interesting that Lisa starts out her conversation with how she's here because I'm very much the same way not necessarily because I had a perception of inventors but had you asked me it would have been very similar to a kind of mad scientist picture and indeed my co-founder bears some truth to that analogy but I didn't come into the internet of things to participate in the Internet of Things I actually started my technology career trying to break away from the legal profession for a variety of reasons not the least of which was in 2008 the real estate market that I had founded 12 companies then had absolutely collapsed leaving me with the same 80 hour work week for only 4% of the income that I had been making previously now that's a good time to shift careers in that moment I found that it is very challenging to get hired as an attorney and not do legal work so nobody wants a lawyer around that's just the truth sorry if there are any other lawyers in here I feel your pain so I went to the GE licensee for emerging technologies in consumer and home electronics and I was actually hired to do analyses around Energy Star and sarbanes-oxley so some really exciting work and the truth is is that the infrastructure didn't exist within the company to support the endeavors that they were considering in that space so I gave them a business analysis after four weeks that said if you want to do this work it will cost you this much money and promptly got shut down which was fine I didn't really want to do that work anyway so I looked around and realized I had 17 months left on my contract and there there were some lingering projects in the space one of which was a business analysis around protocols for the Internet of Things not yet called that in our company that would address there are 3,000 SKUs so GE has 3,000 consumer and home electronics use the things you see in the aisle on your way out of the store basically everything but labels belonged to this company as a licensee and they were trying to determine which of those wireless protocols would affect and impact their bottom line if included in those devices so think z-wave ZigBee bluetooth Wi-Fi your basics right and so so I I fell in love immediately upon literally cracking the book with the idea of the Internet of Things again we didn't call it that yet this was 2010 and so not that it wasn't called bad we were in Oklahoma so things go a little more slowly there so we I did this analysis only two weeks into this project I found myself here in Philadelphia knocking on the door of the CTO of Comcast's office I'm not kidding I don't even know how I got there I dunno but it was fortuitous asking why is xfinity going to be ZigBee when all of these other automation platforms are going with z-wave and I may be a little bit of hubris in my naivete and and began some really important and meaningful conversations in the next 18 months the remainder of my contract I participated in eight national rollouts Comcast Xfinity ATT AT&T a Vivint which wasn't even called living yet and for others Best Buy etc and I found my calling creating strategic partnerships within the Internet of Things space and I've nearly recovered from being a lawyer so so I am Felicity Morman please don't hesitate to connect on Twitter etc with me I am as Tracy said the CEO of to Internet of Things companies which is an interesting story that we'll skip so that we can get to the meaty stuff today the logics is a hardware focused IOT company so think electrical engineering and we most of our devices most of our devices come to us from fortune 500 companies who don't want to ramp up an embedded team so somebody brings us a smoke detector and they say something exciting like we want this on the Shelf in March and I say to them have you met your merchandising company and so this will happen the day after Thanksgiving usually and they want it to launch at CES this is my real life so we have 80% of our products complete using code libraries from z-wave ZigBee bluetooth and Wi-Fi so we can do that time to market play we are the global certification house for z-wave so if you've ever created a z-wave device probably it's been in my hands we do again the advanced engineering for for embedded design and I'm excited and I would say bullish is is an understatement on Laura and where Laura is going we work specifically with machine key oh it's it's fortunate to be in Philadelphia at this time now the second company and also related to Laura is Stratus now Stratus provides a software platform to connect those disparate devices that Boo logics is making convenient but we hadn't done software I'm a hardware junkie my co-founder is also a hardware junkie but um we started getting phone calls my favorite one was a gentleman who took a thermostat off the wall of his apartment buildings he's installed three hundred smart thermostats in his apartment and he took one off the wall in dissected it and found our name who logics on the on the board we branded it we were being a little cheeky with our with our partner in the fortune 500 place they let us get away with it and we got this phone call and he said to me your thermostats don't work and I said back could you please look at the brand on that son like thermostat and he said um I can't control it and I'm like okay sir who are you well I'm like one of New Jersey's richest billionaires like okay now you have my attention okay so he said I have 10,000 apartments and I don't have a solution I can't control these thermostats and I said well can your renters control their thermostats I didn't really understand the full problem but he had an all-inclusive model so his rents included all of the utilities all of which hit his bottom line reducing his net operating income and reducing the valuation of his portfolio 10,000 units so this guy this is what billionaires do at their time if you didn't know sat on the weekends and went through his energy bills looking for challenging places he could fix and and was really good at it so he said you know I said the problem is software that's not something I can control easily with hardware that's really something that needs to be developed for your space and I went to talk to Johnson and Siemens in Snyder and I said do you have anything for this space well not anything cost-effective so we developed the software to control those thermostats and it did snowball a little bit from there since we launched in 2015 mid-year we've installed in 225,000 apartments in 46 states so there is a demand when you meet the cost requirements in the IOT so today we're talking industrial I think we have some good idea of what the Internet of Things is but what is the industrial Internet of Things and I think it's worthwhile to just take a moment to juxtapose it against consumer consumer electronics home electronics as I just relate can be industrial so if there's a real estate mogul controlling your thermostat in any way whatsoever that's probably industrial obviously a lot of us think industrial we think agriculture warehouses Boeing airports but industrial is really spreading out um to nearly every business now which to me is very exciting because that's just opportunity for those of us who have a passion for the Internet of Things to really engage a broader spectrum of people so for our purposes any connected devices whether they're consumer or home that are also included in a business purpose just some of the places where I ot is today so probably you've seen these certainly every device and by device I means something that is powered in some way it can be battery is capable of being made a connected device we see this every day the things we are asked to connect you would maybe not believe dog feeders just that's my favorite today as safe so imagine the rebar and concrete that it takes to create a state now figure out how to connect that to the Internet because your goods are inside it's it's hard but it's exciting and the technology is decreasing in price and the software is increasing in sophistication so there's tons of opportunity there the industrial Internet of Things is becoming for all intents and purposes ubiquitous so here's something that surprised me and I'm not often surprised in this space but last year I was looking at some facts and discovered that in 2008 there were as many connected devices as people I didn't I didn't expect that that that was a little bit of shock and awe for me um so when you think about that the Internet of Things was a thing before any of us knew it was a thing and that's exciting to me but by show of hands so moving a little bit how many devices not even two years from now but 2020 how many devices do you anticipate there will be connected in that year so we're gonna go 10 25 and 50 or more billion so 10 billion 18 months from now about 25 billion 50 billion or more all right you guys have done this before so great information Cisco predicted that by 2020 there will be 50 billion connected devices now Intel calls their shot way over that fence at 200 billion connected devices now that's a lot of room and I'm not gonna get in between Intel and Cisco that's for sure but that number while global is a hundred and fifty devices for every person in this room and every person in the United States for perspective now I got kids so I'm about that right now but that is a tremendous number of devices for our persons and I don't know about you but I'm gonna need more chargers that was come on that was funny so let's jump into blockchain a little bit somebody asked me the other day can you explain blockchain to me like a child and I have a ten-year-old so I do this with some frequency she's not that excited about it yet um and she's very excited about the IOT so just give her a minute uh and she asked me can you do this as if I was a child and I thought I had a pretty good explanation I'm not going to share it with you down because I found a better one but um I was impressed with myself so I went to look to see if I had reinvented the wheel at all and indeed I found Bettina so this is one of my she rose and she explains it to a five-year-old and I'm gonna share it with you because I think this back and forth is both precious and adorable but also a real great start we're gonna talk about today let's go love her Jane that's a really good question it's actually a way that we can trade do you know what trade is what is when you take turns each time it's what you give up most of what you want right where you see that's a big brother well sometimes that definitely happens for sure what if I told you there's a kind of technology that I work on that means you could trade with any kid oh yeah I could train with any kid I would trade well I would say still doing I don't like too much that's probably a good idea maybe somebody else likes it more than you do so normally when people trade they have to go to the store or they have to know the person so that they can get what they asked for it with blockchain you can make that exact same trade but you don't need the store and you don't even necessarily need to know the other person I know are you all in love I showed that to my daughter she was a little more impressed despite the fact that that's not me if you haven't if you are interested in blockchain and you haven't discovered patina by all means she works with she founded animal ventures and she's an exceptional explainer of this tack on not just the five-year-old level at the end she gets to an expert and the conversation they have is really profound and and will influence how you think about blockchain far far more than I will so while that's adorable probably we should take a little bit deeper dive unless you guys are hungry now and then we'll just go okay well keep going so as we work through this I think of blockchain when I'm when I'm learning new concepts around it much like Wikipedia to Encyclopedia Britannica now there are a lot of young people in this room so I'm gonna tell you there's this thing it's about this big and it's a book and it's full of information it's a joke guys I know you know what an encyclopedia is but imagine that all of our collected knowledge our history used to be provided to us in a subscription model so this is you know precess in a prescription model by book makers Encyclopedia Britannica and think of the issues around that moment who could access these books like I said they're a subscription and they were very expensive so if you had one growing up you were very fortunate and buy one I don't mean one book I mean one set and the set was constantly being iterated on on paper my kids can't have them that today they're like wait what that's hilarious or like this little girl pepper really so you compare that now to Wikipedia so Wikipedia is a peer-to-peer network of knowledge and those knowledge keepers or iterators hold each other accountable for truth or at least the best version of truth that can garner consensus so in other words what they believe is actual and gets perpetuated nobody needs to get permission so nobody says that's okay not when it's published now the truth is is if you've ever written your own personal wiki page about how IOT awesome you are you may have found out that there are indeed gatekeepers not that I did that don't go luck so that's said the first part of blockchain that I think is very important is its peer-to-peer capacity so people work on this together and by people that could be machines it doesn't mean some dudes sitting there on a laptop you know it could be simply a machine set up to run and is very often the case full servers even so let's talk about a block in and of itself what is a block so a block has three parts has everybody heard of Bitcoin I do not asking if you understand it but has everyone heard of it great ok so you've heard a Bitcoin what is in a Bitcoin block what information is there an amount so a a currency it's a cryptocurrency so an amount is included in that block there's also a sender and a receiver so to whom it's going from whom it came and the amount so that's your data that's included in the blog now also there is a hash and people get hung up on this and I haven't quite figured out why but a hash is basically a fingerprint it's a unique identifier on that block that says we've created this piece of data but there's something important and this is where the chain comes in if you will there's the passed hash so to whatever that hash whatever that block is attaching to with the new hash it is attaching to an old hash in a chain of blocks right that actually states additional transactions now here it gets more exciting so now we have a peer-to-peer network we have data we have hashing that connects these things together in a chain so far so good and now we're actually going to take that one step further and require a proof-of-work so you can't just put those unique fingerprint identifiers x' in there and expect that there are not computers fast enough to actually compute what they could be and tamper with a blockchain so this proof of work this algorithm this problem if you will requires that computing system to work to create known identifiers to know those hashes they can't do it without the proof of work and that takes let's I haven't looked at Bitcoin in a few days but between 10 and 20 minutes now that's not an accident it takes 10 between 10 and 20 minutes because right now that's how fast computers could otherwise tamper with so it's clever they can't tamper with the blockchain because the computers aren't fast enough to do all the proof of works behind that block does that make sense so it's not just you can't just throw throw them on there's an inefficiency in this super efficient place that's on purpose to keep it tamper proof that was really frustrating for me by the way I was like wait why it takes you a little bit to get it done and you can go see you can go to Bitcoin and you can see it takes 10 to 20 minutes that you can see new blocks coming on and you can sit there and watch until they do and that's that's kind of exciting to see visually how this is actually working so when you combine this you combine that distributed nature in other words there's not
ne keeper of information you get an immutable so you can't change it no tampering transparent intermediary less so there's no third party between blocks this is block to block person-to-person peer-to-peer method of tree which is what pepper learned that's all she learned just the trading part and that's fine that's great for five-year-olds no if you don't believe in the ubiquity a blockchain if you're a skeptic go for it but guess where this is this is a Bitcoin ATM machine in my Dunkin Donuts in East Falls not right here East Falls and when I when they put it in there I was like dorks you know but in a good way and and then I'd go get a coffee with some frequency and there's somebody there all the time I don't know what that person's doing that's not my business but there's somebody there all the time different people not just the same person to be clear um okay making exchanges presumably not just playing with the screen I don't I don't ask questions but that's think about that for a second if it's useful if it was here you know maybe I would I would question the ubiquity as well but just as we compared Encyclopedia Britannica to Wikipedia so is it worthwhile to compare our current banking system a centralized system or even PayPal to Bitcoin so things centralized think intermediaries think fees think inefficiencies dude have you tried to deposit a cheque lately I mean I know there's mobile and all that but sometimes you have to go to a bank that blows my mind today I mean I have to go to the bank in my car I have to have a car still but just a little bit because I my niece Falls um so that said this decentralized my phonology is profound in comparison someday our kids will say to us the same like what like they do about the Encyclopedia Britannica so the truth is is some people panic a little bit about cryptocurrency anybody a little nervous no just we're good nope okay okay I got to go I'm just kidding I'm not leaving you yet okay so has anybody here read the creature from Jekyll Island a phenomenal book and if you're nervous about crypto currencies it's this big it's literally this thick by the way it's huge but don't be intimidated because it's a pastor you I promise so this is a book about our fiat system of money today and how it was invented in 1910 on Jekyll Island in Georgia as the Federal Reserve System so before that our money was based on a gold standard in other words for every dollar printed there was an equivalent dollar of gold sitting in a vault now our system of money our fiat system is based on our government's promise no just me so here's a question our cryptocurrency is really less viable than the promises of our governments oh no I'm bullish so that do you centralized global economic capability is where the future is moving today I can't tell you when it will get there but that that lack of inefficiency is going away now if you were thinking about that dude at the ATM at my Dunkin Donuts and you were a little nervous and it's always a dude right now because I yeah I'm not going to the Bitcoin there are dark places that this can go I don't know where that money is going or what it's for but frankly crypto currencies are in Opera unity to democratize our economy and bring everybody into the same place and to me that is profound it's gonna take some work so youyou saw this a minute ago right the industrial Internet of Things in every place that it is the blockchain is the same any place where there's a device that has to provide data to some central repository and then that data has to get crunched by someone or something and then that data then gets passed on to somebody who has to create prescriptive actions based on that information you're getting my point right like one two three four or five that's really a very inefficient methodology of understanding what's coming from these devices now I can't give each of you an example of how blockchain is going to impact your specific industry whether you're touching the IOT or whether you're not yet but you're interested but what I'd like to do today is give you some very clear examples of how blockchain is impacting my industry and hopefully get you to ask the same questions that I'm asking myself that are far more generic then you know how will this device impact this transaction and therefore provide me with more income but something along those lines so crypto currencies that was Bitcoin and they are all the rage they certainly get the most media attention they are creating a lot of wealth for certain individuals but that's a very finite blockchain application and to me what's far more exciting really is the Internet of Things application for blocking aetherium is an enterprise blockchain so in other words this is what businesses are using today in part there are several aetherium just like there are several bitcoins to create trust within the block chains so this is not it has coins which can be confusing but this is not a currency in and of itself this is a smart contract or a mechanism for creating smart contracts within blockchain so as a lawyer a contract is an agreement between two parties that once fulfilled on one side has an obligation on the other side that's simple that can get very complex as I'm sure everybody in this room has experienced in one way or another but basically that is the the explanation of a simple contract that data encrypted Karen C was an amount right like it was the sender the receiver in the amount on the Block on aetherium that data isn't an amount but it's a small puzzle if you will an algorithm that says to Lisa's point if you haven't played with it which stands for if this then that in the IOT this is basically an IFFT so this problem inside says if this happens then that happens very straightforward contract but little inside of a block now who in this room has used Kickstarter or IndieGoGo to either fund your own project or to support somebody else's project so this is a great example of the contract if you will a smart contract in this case your third-person intermediary the person between you and your projects or you and your supporter is Kickstarter or is IndieGoGo so in this circumstance you will give money and frankly it's not even money it's the promise of money because your card isn't charged immediately your card is charged when a goal is met so that's your if this and that so for the privilege of holding your money your your project pays a fee so that's your third party intermediary that doesn't have to exist with blockchain so with blockchain here's a thing say it's a musician who's finishing an album that can't quite get the end and you want to support that musician and instead of going through Kickstarter you and several of your friends put that into a smart contract into a block and it's an it this and that block so if indeed this person meets a goal that they've set so $10,000 then all of these money's that are be just being held and not money's necessarily but the promise of money so your card hasn't been charged yet then pay this musician so your third-party intermediaries go away now there is a value to providing the ability to connect to people you don't know today but that too is being minimized in our global economy so that block could be for instance a Kickstarter coin and Kickstarter could do that they could take the etherium platform iterate on it for their own model and make that a Kickstarter coin so that's pretty exciting businesses don't have to go away because the market is evolving they can adjust that doesn't mean they will we've seen this before so let's look at a couple of other examples of a smart contract so that we're we're clear on it this is so commercial real estate is my industry and no-tell takes very lengthy complex leases and breaks them down into smaller leases so that companies of a few hundred people can lease without leasing for thirty years twenty years even fifteen years the commercial leasing space is very challenging for newer companies now property owners and management companies their goal traditionally has been to get a Toys R Us or a Sears or a blockbuster to sign a 30-year lease you all see where I went right okay good you'll notice that I use those companies specifically to point out that these leases are not just problematic for the companies but also for the property owners and managers those leases of 30 years often find themselves in a bankruptcy court in the midst of a chapter 11 that's not an efficient way to do business for anybody so that moment where you had 30 years on the lease and you leveraged debt against it as a property owner can come back to haunt you blockbuster turned overnight from a commercial real estate perspective so no-tell has decided to launch the no-tell coin so they're already disrupting the market by renting these spaces for that term say a 10 year term and then they sublease it they manage the property so this is a new model in commercial at least as as with the breadth and depth that they're going so they make this coin and now that transaction that if this then that eliminates what is happening today which is all of the information is held by costar that's the only company that has all of the leases on record and if you need information about a lease or a property and you want to buy it and say you're driving down Ridge Avenue you're like what's up with that warehouse why is it vacant you know let's do something with that you go to CoStar to find out what's up with that property and why it's vacant and they they're a monopoly they don't have any incentive to release that information or iterate on their own technology the no-tell coin allows your buyers and your sellers or your lessees in your lessors to go peer-to-peer and eliminate the brokers and agents in the middle now if you're a broker or agent you're probably looking at this thinking that's bad but we'll get to that in a minute there's an opportunity for those people to become disruptors as well another one Oh does anybody about a house anybody on their home remember this this is the first thing you look at when you buy your home this is page two of a settlement statement your HUD one it's also called and I did 10,000 of these in 10 years so this is a nightmare for everyone involved and just look at this section right here that says 1,100 it's right at the bottom but these are titled just title charges blockchain isn't going to just impact big commercial industries like giant buildings it's also disrupting the residential space already which is hugely exciting to me as a former title attorney this is an opportunity for the numerous if you look at line 1100 there are no less than ten opportunities to charge you as the home buyer or seller those are opportunities for me to make a percentage of money based on your transaction as your third-party intermediary at first I thought you know no big deal this will never happen the truth is is that there are very few states here in the United States there are Connecticut Hawaii and Vermont that have state title in other words you go to the state courthouse to find out who owns the property there are 3,000 title registers in the US so this one may not be hit first as far as disruption goes but it's on the list and there are people working on this now the founder of TechCrunch just bought a property in Ukraine and he said he did it with blockchain so my assumption was that he found somebody who would accept a Bitcoin and gave them Bitcoin transferred Bitcoin but indeed what he did was he put his property in a block so he put the title of his property into a block on the etherium blockchain that's pretty powerful now I did find out the truth because I'm title attorney I got to know he also registered it with the state at the title office he's not dumb but that was that's profound the government's are also doing this is is fairly impactful and then there are companies this doesn't have to be the wild wild west right we're not all you know just wild riding horses and you know making new currencies every day it doesn't have to be like that this is Harbor and harbor is creating a compliance coin so in that block is it's a permissive block and it determines whether or not you are allowed to do the transaction based on whether or not you are complying with the laws of that space that you're in and this is global so it can be iterated on and you may find that indeed you're not compliant with anti-money laundering code or a tax code so this determines that indeed you are compliant now that also creates an additional inefficiency for people who want to do things that aren't legal but maybe we're okay with that some of us so it's the regulator service so it's a service that is within that block that determines yes this is appropriate or no it's not but and this probably won't surprise you at all so I just give you three blockchain technologies inside of real estate that are already impacting my business there's also specifically a blockchain made for the Internet of Things and there are actually several but this is the one that's got the most press right now it's not ioad it's not a OTA it's not Canadian I'll work on that one it's iota and it's not actually meant mean i OT it's meant to mean small which i thought was interesting to apply to the IOT it is intended specifically for the machine to machine economy so it's specifically for devices and it provides a mere instant also secure platform for that economy reducing the inefficiencies of the the chain if you will so you imagine how long that chain gets it can be lengthy and this does what's called a tangle that's a conversation for another day just right now think of the chain but the tangle is more efficient than the chain and so they'll attach more devices faster than your traditional blockchain let's look at two applications that I think are exciting and Lisa touched on a couple of these not specifically these ones but these applications so the first is pretty straightforward it's a beacon technology that uses aiyyo aiyyo de yes specifically as its method of creating blocks begins our Bluetooth 5 so they're just low-power communication nodes that that can tell you all sorts of things about where you're at and also tell where you're at all sorts of things about you which may be something that you're excited about may not and so this is called Ruby or uu VI and it's a tag that's using iota to get that information back and forth through blotching the most obvious application for that may be that the actual monitoring of foods you saw the mangoes with Walmart that's a very common method of tracking information about things that should be kept cold or things that should be kept warm um so imagine an application where you're shipping those mangoes and they get to a temperature that will ruin them so that shortens their life maybe it doesn't ruin him maybe their shelf life goes from five days to four days and in the blockchain maybe the shipper who allowed a faulty truck out of their lot gets automatically deemed on his shipment for decreasing the shelf life of that mango that's a blockchain application that would happen automatically not because somebody crossed out one dollar amount on the invoice and put in another dollar amount so that's an example of an IOT device providing information that can then be if then then that on the blockchain there's another one called energy so I like this one just because I have a seventeen-year-old daughter this is a black box for cars and I like to think of it as Carfax on steroids so if you bought a car almost inevitably now it comes with a carfax write all of the information about that car where does that information come from does anybody know insurer's people that Carfax pays for information about that car so that's data that's provided from a central repository ensure one data point if that insurer gets it wrong and says this car has been in a car accident but really it was another car there's no method for you to fight that easily you can but it's not easy and so in that moment this black box then provides that data directly from the vehicle into a block so when you go to buy that car or is a fleet manager imagine this black box in all of your vehicles maybe a little Big Brother
but you can say hey listen you were supposed to be at these five places for your deliveries in this amount of time you're you know you've you've not made your whatever-it-is quota but what about the alternative this doesn't have to be a stick all the time what if you made all of your deliveries got a safe driver bonus and got the truck maintenance record consistently and you get an increase in pay because of that as a driver or as a fleet manager so there are a lot of opportunities here for automated if this then that piece is to go in those blocks and again transparent immutable and also consensus so you can't put something in the block unless everybody agrees it's appropriate per chain that is and here's here's one of my favorite companies right now this is local route and local route takes a shipping container so this is just off the back of a truck I'm sure it's cleaned and they can grow food twice as fast as traditional farming methodologies here's something exciting for you with only 3% of the water think about how we irrigate farms today so using only 3% of the water they can grow twice the amount of food and they do it without pesticides so this is one of my favorites it's called route like I said and that shipping container can be placed anywhere where there's a major need for food so he'll listen to an apartment anybody all horse so imagine at the top of your apartment building there are shipping containers and using the IOT beacon technology any number of technologies really this shipping container senses when you open the door and walk in and it senses what you take for your dinner that night and then it automatically puts into the block information for you so this is yours it puts in the nutritive value of that which you just took it puts in the number of steps that you took and it puts in a cost how much the food you took cost all sensed without any human beings being there but yourself maybe withdrawn technology not even you so that's another example of that information being placed without a third party there's nobody at the checkout stand this is simply information that's obtained so now for the great mashup of your your industrial IOT and your blotching we had three examples of smart contracts specifically in real estate via blockchain but what is the applicability of those with regards to the IOT so the first one was know tell and know tell is disrupting monopolistic data ownership and eliminating in efficiencies while bolstering a unique and disruptive business model in an archaic industry now add a device say smart locks one of my favorites when you open that door for the first time to your commercial property that goes into a block and triggers make a rent payment there in maybe you go see it all by yourself without anybody to give you a tour and maybe there's a charge for that or maybe you put your information that gives you the credibility to go and do that about somebody with you into that block so you're credible because it knows you it has this link to you and then and then it says okay more automated device that here's here's your rental contract and the broker is not there so in the second one we saw homeowners and sellers who skip the long-standing gatekeepers of the title industry for instance and that transfer of micro units becomes viable so say you need $10,000 so you pretty much on your home or saying you own $10,000 of your home and you put your house on a block and then your friend or your mom if you've been a bad kid can say sure I'll give you the 10 grand but you need to give me a piece of your house a micro piece of your house now for $10,000 you can almost not even get a home equity line of credit and have that be a viable transaction because of the costs involved in title but with law chain that becomes viable what if you can't purchase a home via traditional methods but if you've had credit issues what if you've had job issues and this happens to everyone and the traditional lenders won't allow that well here's an opportunity for you to actually garner small pieces of properties maybe you buy a property a little bit at a time which is what we do with mortgages but you do it directly this way and so think about that moment it's not gonna happen overnight how many title registries are there in the u.s. 3,000 yeah there's huge so what if we just put an RFID tag on the documents for now while we transition from our current title situation to the blockchain that's a tag no RFID pretty straightforward just to keep track as we move into the blockchain so that's your IOT and then the third one is harbour so harbors creating compliance I haven't thought of a way that IOT can help them yet but I'm working on it anybody else compliance block so they're saying yes or no this can or cannot happen they're a regulator again an inefficiency in what is trying to be a more efficient system of transaction or trade right if you think of it let me know or call them that's an opportunity so the end vision and where IOT so we probably know this inherently but the end vision of the Internet of Things is not disparate devices it's not siloed systems that humans have to interact in control I don't think that's any of our goals when we create something in this space the end vision of the Internet of Things really is all of these discrete things and systems reacting on their own accord in a personalized way responsive and adaptive to our needs without us pushing buttons yotie isn't about buttons and blockchain will enable more of that by breaking down these silos of information and basically meshing them together if you're an IOT mesh is pretty comfortable for you so think about web 1.0 for a minute a couple of you are old enough to remember this web 1.0 was academia AOL Netscape chat rooms web 2.0 was really about enterprise coming into the web Facebook YouTube all of the businesses and applications that we use today and really tremendous new business models the web 3.0 is about machine to machine interaction we've really evolved and blockchain is the enabler of our next step in our technological evolution if you will online machines enabling a seamless process across those formerly disparate silos and engaging data analytics countless data points and machine learning so that's what blockchain is enabling with blotching and the industrial Internet of Things data ownership may disappear but most certainly unused data has the opportunity to go by the wayside we'll get rid of mass corporate redundancies that monopolistic ownership inefficiencies certainly inevitably intermediaries and corruption there are tremendous security opportunities inside a blockchain that don't exist especially in developing countries so the opportunities are even greater not here and they're going to create micro economies micro transactions certainly new business models in the same way that web 2.0 did and extreme transparencies it's something we should kind of mentally prepare for that's said in your own industry as you look around look for these issues of inefficiencies look for areas where there's redundancy and those are your opportunities in your own industry they're there and you don't have to be disrupted you can be the disrupter the person who brings this information to bear in your own industry you can be the artist the expert in the room on what's coming you can be the linchpin thank you [Applause] good questions everybody gets blockchain yeah go ahead Karen so FinTech gets hit hardest right away there are some like I said driving to the bank now there is a hesitation by most people and there's also a digital divide there are people who can engage crypto currencies and there are people who haven't really engaged the internet fully and I don't just mean outside of the United States it's very real here in the United States but FinTech is getting hit hard already they're already adjusting so we're seeing established financial institutions engaging in blockchain to avoid being disrupted to their to their end you know we wish companies like Sears and Toys R Us could adjust so quickly this 30-year lease is really are hard so I think in commercial real estate so in residential it's small houses who's going to drive that when all of us as people are gonna go to the title companies and be like we refuse probably not um but if anybody wants to know okay but commercial real estate is tens of millions of dollars in transactions each time that's getting disrupted already and will continue to be disrupted pretty dramatically IOT will leap forward technology industries who understand tech and aren't scared are already embracing it and using it in applications that seem profound but they just eliminate inefficiencies make smaller companies more competitive because they're able to do that pivot and and increase their own value so tech tech is moving fast which they do anybody else seeing an industry disrupted heartily by blockchain outside of FinTech and actual tech does anybody is anybody engaging in some blockchain capacity today maybe you have Bitcoin I know my CEO invested invested yeah so not uncommon most most my engineers are at least playing with it or working around it is everybody hungry Oh yep go yeah so HIPAA is a great example of a space in which you know you think it's great to have all of your medical information in one place where any doctors that you go to can easily access but who else is going to be able to access that so much like harbor created it's it's called the regulator service a service that determines compliance we'll also have those in the health industry and they're already working on this today who are creating a privacy bubble around certain pieces of information in that block so you're still going to get both hashes but the data itself is going to be verified by you and your group as opposed to public groups so that's gonna it's an add-on and as I said that's an inefficiency that blockchain is working to avoid but in those circumstances HIPAA compliance it's hugely important and we'll see more of those compliance e coins and chains coming into play they're already all in the works there's hundreds and hundreds and hundreds of iterations on blockchain I think I see food yeah okay thank you guys very much for your time I appreciate it thank you [Applause] you
