Welcome to this special CUBE conversation. We're here in Palo Alto, California with a special guest, dialing in remotely Paul Martino, the founder of Bullpen Capital, and also the producer of an upcoming film called The Inside Game. It's a story about a true story about an NBA betting scandal. It's really, it's got everything you want to know. It's got sports, it's got gambling, it's got fixing of games. Paul Martino known for being a serial entrepreneur and then an investor investing in some great growth companies and now running his own firm called Bullpen Capital, which bets on high growth companies and takes them to the next level. Paul, great to see you. Thanks for spending the time. Good to see you again. John, always good to see you. Thanks for having me on the show.  This story kind of crosses over kind of your interest. Obviously in Philly, you're kind of like me, kind of a blue collar kind of guy.  You also were an investor in a lot of the sports gambling, betting kind of online games that we've, we talked about in the past, but now you're crossing over into filming movies, which just seems like very cool. Honestly, we're living in a day of digital media where code is software, code is, is content. Obviously we believe that. What's this movie all about? All the buzzes out there inside game. You're done sports radio all the time. Give us a scoop. Why inside game? What's it about? Give us the, give us the 411. Yeah.  My, my producing partner and this guy named Michael Pierce, who made a bunch of great movies, including The Cooler, one of the best gambling movies with William H. Macy. And he says, sometimes the movie picks you and sometimes you pick the movie. And I wasn't sitting around one day going, wow, I want to be a movie producer. It was just much more that my cousin is the principal in the story. My cousin was the go between, between the gambler and the referee. The three of them were friends ever since they were kids. And when they all got out of jail, Tommy called me, Tommy Martino. He said, hey, Paul, you're about the only legitimate business guy I know. Could you help me with my life rights? And that's how this started almost six years ago. And how, what progressed next? You sat down, had a couple of cocktails, beers. Okay, here's what we're going to structure it. Was it more brainstorming? And then it kind of went from there. Take us through that progression. It was a pure intellectual property exercise. And this is where being a startup guy was helpful. I was like, Tommy, I'll buy your life rights. Maybe we'll get a script written. We'll put it on the shelf so that if anybody ever wants to make this story, they have to go through us, almost like a black blocking patent or a copyright. And he's like, okay, cool. And so I said, I have no delusions of ever making this movie. I actually don't know that, I don't know anybody to make a movie. This is not my skill set. But if anybody ever wants to make the movie, they're going to have to come deal with us. And then the lucky break happens, like anything in a startup. I have this random meeting with a guy named Michael Pierce who's at a firm called WPS Challenger out of London. And we're down at Hillstone in Santa Monica. And I say to him, I say, I got this script written about this NBA betting scandal. Would you do me a favor? He literally laughs in my face. He goes, a venture guy from Silicon Valley is going to hand me a script. What a bad, anyway, as it looked to, I'm a good guy, I'm a good guy to have OU a favor. So just read this dang thing. About eight hours later, my phone rings.  This is the best script I've ever read in my entire life. Let's go make a movie. Andy Callahan was a friend of a friend from high school who wrote the script. He actually once beat Kobe Bryant when he was a center at Haverford when Kobe Bryant played at Lower Marion here in the Philly suburbs. So it's kind of this local Philly story. I'm a local Philly blue collar guy. We put the pieces together and I'll be danged. And now six years later, the film is in the can and you're probably going to see it during the NBA finals this year in June. All right, so there's some news out there. It's on the cover of ESPN Magazine. The site is now launched. I've been hearing buzz all morning on this in the sports radio world. A lot of buzz, a lot of organic virality around it. Reminds me of the crazy rich Asians which kind of started organically. Similar kind of community behind it. This has really got some legs to it. Give us some taste of what's some of the latest organic growth here around the buzz. Yeah, so think about this. This happened primarily in 06 and 7. They were sentenced in 2010 and were in jail in 2011. It is 2019 and the front page story on ESPN is what Tim, Tommy and Jimmy Batista did. The three guys, the gambler, the ref and the go-between. And this is a front page story on ESPN all these years later. So we know this story has tremendous legs. We know this movie has a tremendous built-in audience. And so now it's just our job to leverage all those marketing channels at places we pioneered like Zynga and Fandle to get people who care about this story into the theaters. And we're hoping we can really show people how to do a modern way to market a film using those channels we pioneered at places like Fandle and Zynga. You and I have had many conversations privately and here on theCUBE in the past around, you know, startups disruption. And you know, it's the same pattern, right? You know, no one thinks it's a great idea. You get the rights to it. You kind of got to find that inflection point, that magical moment, which comes through networking and just hard work and hustle, right? And then you got everything comes together and then it comes together and then it grows. As the world changes, you're seeing digital completely change the game on Hollywood.  This is essentially a democratization. Well, first of all, you've made some money so you had some dough to put into it, but you know, here's a script from a friend and you guys put it together. This is now the new startup model going to Hollywood. Talk about that dynamic. What's your vision there? Because this I think is an important signal in how digital content, whether it's guys in the cube doing stuff or cube studios, which we have a vision for. This is something that's real. Talk about the dynamic. How do you see the entrepreneurial vision around how movies are made, how contents made, and then ultimately how their merchandise in the future? Right, there's a whole bunch of buckets. There's the intellectual property bucket of the story, the script, et cetera. Then there's the bucket of getting the movie made.  And what was really interesting is even though I had never made a movie, two of those three buckets I knew a tremendous amount about from my experience as a startup investor. The marketing and the IP side, I understood almost completely even though I'd never made a film. And so all of the disruptive technologies that we learned for doing disruptive things like marketing a new thing called Daily Fantasy Sports, we were able to bring to bear to this film. Now I had fun on the set and meeting all the actors, et cetera, but I had no delusion that I knew about the making of the movie part. So I plead ignorance there. But of the three buckets that you need to go make something in the media space, 66% of what I knew as a startup guy overlapped. And I think this is what the future of media is because guys like me and you, John, we actually know a lot about this because we're startup people as opposed to that we have to learn about it in terms of how to market and how to get an audience. I mean, my last company, Aggregate Knowledge, designs custom audiences for ad targeting. So we know how to find gamblers to go see this movie. I mean, that's literally the company I started. And so that's a thing that I'm very, very comfortable with. And it's exciting to then work with the producer who did the creative and the director. And I say, hey guys, I got this marketing thing out of control. I know how to do it. Oh, by the way, the old head of marketing from Fandle, he's a consultant to the project. So we got that. You got that. And the movie's being made. That's also, again, back to entrepreneurship, risk. You got to take risks, right? This is all about risk management at the end of the day and navigating as the lead entrepreneur, getting it done, this heavy lifting and cost involved in making the movie. How did you, that's like production, right? It's like, you know, build a product. That is ultimately the product when it has to get to market. How did that go? What's your thoughts on your first time running a movie like this from a production standpoint, learnings, observations? I learned a tremendous amount. I must admit, I was along for the ride on that piece of the puzzle. The product development piece of this was all new to me. But then again, I mean, think about it, John. I started four companies, a social network and ad targeting company, a game company and a security company. I didn't know anything about those four companies when I started them either in terms of what the product needed to do. So learning a new product called Make a Movie was kind of par for the course, even though I didn't really know anything about it.  That's the real attribute you need to have in these kinds of situations. So I got to witness that first hand. And you know what? Now if I ever make a movie again, I kind of know how to make that product. Yeah, well, look at Florida. You got great instincts as an entrepreneur. Love hanging out with you. I got to ask you a question kind of. I talked to a lot of young people, my son and other his friends. And I see people coming out of business school, all the stuff, you know, every college has a entrepreneurial program, music, film, whatever. They all have kind of bolted on entrepreneurship. You're essentially breaking down that kind of dogma of that you have to have a discipline. Anyone can do this, right?  This is direct to consumer. If you have the skills as an entrepreneur, it translates. Talk about what it takes to be an entrepreneur if you're a musician or someone who has, say, content rights or has a content story. What do they do? What's your advice? We have lived through perhaps the most awesome period of the last five to 10 years where it got cheap to do a startup. You know, when we're doing our first startups 20 years ago, it costs five million bucks to go get a license from Oracle and go hire a DBA and do all that stuff. You know what? For five grand, you can get your website up, you can build, you can use your iPhone, you can film your movie. That's all happened in the last five to 10 years. And what it's done is exactly the word you used. It's democratized who can become an entrepreneur. Now people who never thought entrepreneurship was for them are able to do it. One of our great examples of this is Ipsy, our cosmetics company. You know, Michelle Fan was a cocktail waitress working in Florida, but she had this YouTube following around watching her videos of her putting her makeup on. And you know, when we met her, we're like, you know what, you're the next generation of what entrepreneurs look like. Because no, she didn't go to Stanford, she didn't have a PhD in computer science, but she knew what this next generation of content marketing was gonna look like. She knew what it was to be a celebrity influencer. You know, that company, Ipsy, makes hundreds of millions of dollars every year now. And I don't think most people on Sand Hill would have necessarily given Michelle the chance because she didn't look like what the traditional entrepreneur looked like. So it's so cool, we live in a time where you don't need to look like what you think an entrepreneur needs to look like or went to the school you had to think you'd go to to become an entrepreneur. It's open to everybody now. And the key success just, you know, again, we've talked about this privately all the time when we meet, but I want to get your comment on the record here, but I mean, some of there's some basic blocking and tackling that's independent of where you went to school.  Do your thoughts on the keys to success for as those folks saying, hey, you know, I didn't have to go to these big fancy schools. I want to go out there. I want to test my idea. I want to go push the envelope. I want to go for it. What's the tried and true formula from your perspective? So when you're in the early stage of hustling and you want to figure out if you're good at being an entrepreneur, I tell entrepreneurs this all the time. Every meeting is a job interview. Now you might not think it's a job interview, but you want to think about every meeting. This might be the next person I start my company with. This might be the person I end up hiring to go run something at my company. This might be the person I end up getting money for from to start my company. And so show up, have some skills, have some passion, have a vision and impress the person on the other side of the table. Every once in a while I get invited to a college and they're like, well, Paul, you know, life's easy for you. You're, you know, you started a company with Mark Pincus and your friends with Reed Hoffman and it's like, well, how the hell do you think I met those people? I did the same thing I'm telling you to do. When I was nobody coming out of school, I went and did stuff for these guys. I helped them with the business plan. I wrote the code of tribe. And then now all of a sudden we got a whole network of people you can go to. Well, that didn't happen by accident. You had to show up and have some skill, talent and passion and then impress the person on the other side of the table. And guess what?  Be authentic, be genuine, hustle, do networking, do the job interview, great stuff. All right, back to the final point I want to get your thoughts on because I think this is your success and getting this movie out of the gate. Everyone, first, everyone should go see Inside Game. InsideGameMovie.com is the URL. The site just went up. This should be a great movie. I'm looking forward to it and knowing the work that went in would follow your journey on this. It should be great. I'm looking forward to seeing it. Digital media, your thoughts because we're seeing a direct-to-consumer model. You got the big companies, YouTube, Amazon, others. There's kind of a huge distribution with those guys, the classic web 2.0 search kind of paradigm and portal. But now you got a whole another set of distribution around network effects. Your thoughts, because you were involved in, again, social networking before it became the monster that it is now. How is digital media changing? What's your vision of how that's happening and how does someone jump on that wave and be successful? Yeah, we're in the midst of disruption. I mean, I'm in the discussions and final negotiations right now on how we're going to end up ultimately doing the film distribution. And I am very disappointed with the quality of the thinking of the people on the other side of the table because they come from very traditional backgrounds.  I want to do a digital download on FanDuel of a 20-minute clip of the film. And they're like, what's FanDuel? Who's Zynga? And I'm sitting there and like, guys, this is the new media. By the way, there's a sports app called Wave and Wave is where the local influencers in the markets who want to write the stories are and we want to do a deal with those guys. And oh, by the way, the CEO of that company was a buddy of mine I met years ago, right? One of those kids I gave advice to and now I'm going to ask him for a favor from, right? That's how it works. But it's amazing when you have these conversations with traditional offline media companies, they don't understand any of the words coming out of your mouth. They're like, Paul, here's how much I'll give you for your film. Thank you, we'll go market it. I'm like, really? Seriously? Yeah. I got the former CMO of FanDuel going to help me out on this. You don't want to talk to him? Yeah. And so this is where the industry is really ripe for disruption because the people from the startup world have already disrupted the Apple Card. And now we've just got to demonstrate that this model is going to continue to work for the future. And be ready when the next new kind of digital trans media thing comes along and embrace that as opposed to be scared to death of it or not even know how to talk the language of the people on it. Well, you're doing some amazing venturing in your kind of unique venture capital model. And bullpen capital certainly isn't your classic venture capital thing.  I'm sure that's an area that's out there. But you're not just a normal venture capital, you certainly invest. So venture capitals have reputation issues right now. People talk about, well, the group think, they only invest in who they see themselves. You mentioned that comment there. The world's changing in venture. Your thoughts on that, how you guys started your firm and your evolution of venture capital. And is this a sign that you'll see venture capitalists go into movies? Well, I don't know about that part. There have been a couple of venture people who have done movies. But the part I will talk about is the, you got to know somebody, it's an inside game. Ha ha, we'll play double entendre on inside game here. 20% of the deals we've done at bullpen, we've done over a hundred. 20% of them were cold emails on something like LinkedIn or a business plans at bullpen.com, 20%. Now there's this old trope and venture, if you don't get a warm intro, I won't even talk to you. Well, 20% of our deals came in and we had no idea who the person on the other side was. That's how we run the firm. And so if you're out there going, I'm one of those entrepreneurs in the Midwest and I don't know anyone, I'm not in a network. Send me a plan. I'm someone who's going to look at it.  I'm going to give you a shot. And I don't care where you're from or what school you went to or what social click you're in or what your political persuasion is. As a matter of fact, I literally don't care. I'm going to give you a shot coming to my office. And that I think is what is missing in a lot of firms where it's a, we only do security and we only look at companies that spun out of Berkeley and Stanford. And yeah, there can be an old boys network in that. But you know what? We like to talk to everybody. And the more blue collar the CEO is, the more we love them at bullpen. That's awesome. Talk about the movie real quick on terms of how you're, how Hollywood's handling it. Expectations in terms of reaction. Was it positive? Is it positive? What's the vibe going on in Hollywood? Is this going to be a grassroots kind of thing around the fan duels and your channels? What's your plan for that? And what's the reaction of Hollywood? So it's going to be a lot of all of the above, but PR is going to be a huge component. I mean, part of the reason we're on today is there's a huge front page story on ESPN about Tim Donahue and the MBA betting scandal of 2007. And so the earned media is going to be a huge component of this. And I think this is where the Hollywood people do understand the language we're speaking. We're like, look, we have a huge built-in audience that we know how to market to. We have a story. Actually, in the early days, you asked about risk. Back when I was thinking about if I would do this project, I would do the following little market research. I'd walk into a sports bar. It didn't matter what town I was in. I could be in Dallas. I could be in Houston. I could be in Boston. I would literally walk up to the bar and say, hey, six of you at the bar, ever here at Tim Donahue? It'd be amazing. About seven out of 10 people would go, yeah, he was the referee, crooked referee in the NBA. I'm like, this is amazing. Seven out of 10 people I meet in the bar know about the story I want to go tell. That sounds like a good chance to make a movie. As opposed to a movie that has no built-in audience. And so a built-in audience with PR channels that we know work, I think we can really show Hollywood how to do this in a different way if this all works. And this comes back to my point around built-in audiences. A YouTuber has got a million subscribers. That's kind of an old metric. That means they're like an RSS feed kind of model. That's a million people in that could be amplifying. They're network connections. It is a massive built-in audience. The iteration, the DevOps kind of mindset, we talk about cloud computing can be applied to movies. It's agile movie making. That's what you're talking about. Yeah, and by the way, so we have a social network of all the actors and people in the film. So when it's ready, let's go activate our network of all the actors that are in the film. Each of them have a couple million followers. So let's go be smart. Let's get two weeks before the movie. Let's send some screenshots. A week before the movie. Let's show some exclusive videos. Two days before the film. Go see it, it's now out in the theaters. You know what? That's pretty, that's 101. We've got actors. We've got producers. Let's go use the influencer network we built that actually got the movie made. Let's go on sports talk, talk about the movie. Let's go on places like this and talk about how adventure guy made a movie. This is the confluence of all of the pieces all coming together at once. And I just don't think enough people in the film business or in the media business think big enough about going after these audiences. Oh, we're gonna take ads out on TV and I'm going to see my trailer and we're going to do this and that's how we do it. There's so many better ways to get your audience now. And this is going to change. Just while I got you here cause it's just awesome, awesome conversation. You know, bringing it back to kind of the CMO and big companies, whether it's Consumer or B2B or whatever movies, the old model of we get, here's our channels. There's certainly this earned media kind of formula and it's not your classic. We got a website and we're going to do all this instrumentation. It's a whole nother mechanism. So talk about in your opinion, the importance of earned media vis-a-vis the old other buckets, owned media, paid media, you know, well-defined web 1.0, web 2.0 tactics. Earned media is not just how good is our PR. It's actually infrastructure channels, it's networks, a new kind of way to do things. How relevant and how important will this be going forward? Because there's no more website. It's a media, you're basically building a media company for this movie. That is exactly right. We're building an ad hoc media business. I think this is what the next generation of digital agencies are going to look like. And there are some agencies that we've talked to who really understand all of what you just said. They're few and far between, unfortunately. Yeah, well, Paul, that's what's theCUBE. This is what we do. We love talking to people, making it happen. Again, our model is the same as yours. We open to anyone who's got signal and you certainly doing a great job and great to know you and follow your entrepreneurial journey, your investment journey, and now your filmmaking journey. Paul Martino, general panel and bullpen capital with the hot film, inside game. I'm definitely going to see it. It should be really strong. And it's going to be one of those movies like Crazy Rich Asians where not looking, not really well produced. I mean, not predicted to be great. And then goes gangbusters. So I think this is going to be one of those examples. Paul, thanks for coming on. Love it, thank you. This is CUBE Conversation. I'm John Furrier here in Palo Alto, California, bringing you all the action. Venture capitalist turned filmmaker Paul Martino with the movie Inside Game. I'm John Furrier. Thank you for watching.


Good morning, everyone. Welcome to today's session on New Testament survey, BC103. Today we would be studying on the letter to James, sorry, the episode of James. Before we could begin with our session, can I request one of us to lead us in prayer? Anyone? Father, we want to thank you for this time Lord. We submit ourselves into your mighty presence, Lord, as we learn today. We pray to God that you would open the eyes of our understanding and help us to know more about your word, about you. We also submit ourselves into your hands of God. We pray that you would anoint her to deliver your word towards Lord Jesus. We thank you. We submit us once again. Amen. Thank you so much. Thank you, John. Okay, so today we're going to study on the book of James, which is the book of practical Christianity. It is also known as the book of practical Christianity. And the summary of this book goes like this, where unbelievers now a pillar of the church who are very pious, devote, he was actually an unbeliever. He never believed Jesus because maybe many reasons related to that. But then now he's become the pillar in the Jerusalem church and he's become very pious.  And truly he lived the doctrine that he preached. So he writes to the Jewish Christians who are scattered among the nations because of persecution. He's trying to encourage them during this time of suffering. And he also addresses various issues related to faith. We also see that this letter is written between the time period of 41 to 50 AD probably from the Jerusalem church. So this letter is like a sermon note on various tropics and this practical rather than doctrinal. Yes, it also surprised me knowing that just five chapters, but so much to learn from this book. So the main theme that we see in this letter is the practical religion. Manifesting itself in good works contrasted with profession of profession of faith. So before we could move ahead, let us know the person, the author of this book. Who is he? Who is James? So the name James is the English form of the word Jacob. So in Greek it means Jacobos. So this name is to be, this name is to be from, you know, distinguished from the other men by the name of James in the New Testament. So there are different James. So one of the James was the James the son of Zebedee or James the great where we read in Matthew chapter 421. In today's session, I would request all of us to take turn and read. Okay, so I would request please keep please turn to the episode of James in your Bible so that we all can take turns to read the scripture so that we can understand better and we can actively participate in the class. Okay, so we are talking about the different James from the Bible. We have one James the son of Zebedee or James the great. And then the second person was James the son of Alpheus or James the less where we read about him and Mark chapter 15. And the third is James the son of Mary and Joseph, the half brother of Jesus. He is sometime referred to as James the just in historical literature and we are going to study about this James. And he is the author of this letter. And he was most likely the eldest son of Mary and Joseph and the brother of Jesus. So how do we know that? Can I request one of us to please turn to Matthew chapter 13 verse 55 to 56. Matthew chapter 13. Matthew chapter 13 verses 55. Isn't this the carpenter's son? Isn't this the mother's name Mary and aunt his brother brother James, Joseph, Simon and Judas aren't all. Okay, that's it. Thanks. Thanks. Just to relate the scripture and can one of us also turn to Mark chapter 6 verse 3. Mark 6. Chapter 6 verse 3. Mark chapter 6 verses 3. Isn't this the carpenter? Isn't his mother's son and brothers of James, Joseph, Judas and Simon. Yes, thank you. There's also another verse in Galatians chapter 1 verse 19. It reads like this, but I saw none of the other apostles except James the Lord's brother. Okay, so there are different scriptures confirming that James was the half brother of Jesus. We also see the other siblings name listed here. Who are those? Some of the version says his name was Joseph, possibly named as Joseph as what even Sid read from his translation. The other brothers named as Simon, Judas. We also see that the writer of Book of Jude and then unnamed sisters are a bit listed and he was not numbered among the 12 apostles of the Lamb. And he did travel with Jesus on various occasions with his other brothers. We see that in many of the Gospels or in the Gospel of John where it clearly says that, you know, he traveled. So he and his brothers were not totally convinced about Jesus calling and mission in the early days of Jesus' ministry. Like if I could request one of us to turn to John chapter 7 verse 3 to 5. John chapter 7 verses 3 to 5. Yeah.  Okay. No one who wants to become a public figure acts in secret. Since you are doing these things, show yourself to the world for these things for even his own brothers did not believe in him. Therefore. That's it. Thank you so much. So what we see here is even his brothers were not convinced totally with the calling of Jesus. They didn't believe the ministry of Jesus initial of the days. And later we see that he was James. He was attentive to the teaching of Jesus, which is reflected in his knowledge of the sermon on the Mount. And we also see in John chapter 19 verse 25 to 27. John chapter gospel of John chapter 19 verse 25 to 27. Anyone have turned to it can read. Ma'am, it's chapter 9 or 19. Sorry, chapter 19 verse 25 to 27. Thanks for correcting. John chapter 19 verses 25 near the cross of Jesus stood his mother, his mother's sister, Mary, the wife of clopas and Mary Magdalene.  Here is your mother from that time on the disciples took her into his home. Thank you. So what we see here is though he received Jesus teaching later part, but he was absent at the cross at the time of Jesus Crucification. So James was not present near the cross and he was one of the first to receive the message of Christ resurrection. Can I request one of us to please turn to John chapter 20 gospel of John chapter 20 verse 17. Jafina, can you also turn? I request you to turn to 1 Corinthians chapter 15 verse 5 to 7. If anyone have turned to John chapter 20 verse 17, you can start. John 20 17. Yes. Jesus said to her, Do not cling to me for I have not yet ascended to my father, but go to my brethren and say today. I am ascending to my father and your and your father and to my God and your God. Amen. Thank you. So what we see here is he was one of the first to receive the message of Christ resurrection. And can I also request one of you all to turn to 1 Corinthians 15 5 to 7. Jafina, if you have turned to, can I request you to read? Okay. If anyone else have turned. 1 Corinthians chapter 15 verses 5 to 7. And that he appeared to Peter and then to the 12. After that, he appeared to more than 500 of the brothers at the same time. Most of whom are still living though some have fallen asleep. Then he appeared to James, then to all the apostles at last he appeared to me and asked to abnormally born. Yeah, thanks. Thanks. So what we see here is yet personal encounter. We see that James had a personal encounter with the risen Christ sometime later. We also see that in Acts chapter 1 verse 14 that he was in the upper room in, you know, waiting for the outpouring of the Holy Spirit. We also see in the book of Galatians chapter 1 verse 18 to 19. We see that he was referred to by Paul as an apostle. And later in the book of Acts, we see that he eventually ascended to the senior leadership position in the Jerusalem church and he was a senior pastor, senior leader in the Jerusalem church. And he was instrumental in writing the degree sent out and let us form to the Gentile churches from Jerusalem Council. We also see that in book of James chapter 1 verse 1, it reads like this. James born servant of God and of Lord Jesus Christ to the 12 tribes which are scattered abroad greetings. So what we see here is that he achieved the high status of that of a born servant of Jesus Christ. Look at the understanding, the revelation that he started to have in Jesus. The one who did not believe in him in initial of his days or when Jesus was alive. But later part, you know, he started believing, he started having a personal encounter with Jesus. No more he related Jesus as his brother, but then he started relating as the son of God. And we also see that the tradition suggests that he died as a martyr at the hand of the Jews. So what is the background of this book? Where the audience of this book to whom was this letter addressed to anyone from the class would you like to share? Where the audience, I'm sorry, there's some sound coming from outside. There's some carpenter work happening around. So we see the audience here is James identifies the audience has been the 12 tribes which we just read was scattered abroad, just like the Jacob of the Old Testament add a word for his 12 natural sons. The New Testament Jacob will have a word for the spiritual Israel of God. So some have suggested that he was writing to the natural Israelites of the of the people will live there. However, when we study the content of the book, there is no question that he was not writing to the unbelievers but then to the believers. He is most likely writing to the spiritual Israel of God. He is writing to the believers in the Gentile regions. Most specifically, he could have been writing to the members of his own congregation who had moved away from Jerusalem, or had been dispersed through various persecution that had occurred in the Jerusalem. So on what occasion he is addressing little has been known about the reason why James wrote this book except that at the pastor he was concerned caring for those who were caring for those under his spiritual influence, whether they were local or abroad. So from the date of writing, as I said, it was between 41 to 50 AD. And most scholars place this writing of this book was a spread of the gospel to the Gentile world. And what was the main message or we see the central message of this book is the book of James is that Christianity cannot be just a confession of lips. It cannot be based on statement of faith alone, but then Christianity must be authenticated by the way we live our lives. So James is just not only telling to the people who lived in those, I mean, in his time, but then it also applies to us. This letter is more alive to us, asking us just not to live our life with any confession of our lips, but then make it a living, make it a lifestyle. So we also see through this letter, James is emphasizing the practical nature of Christianity and the necessary connection between faith and works. So this is also seen in James writings where when we turn to James chapter one, can I request all of us to turn to James chapter one verse 27. Can I request one of you to read James chapter one verse 20. Okay, maybe we can read from 26 to 27. If anyone among you thinks he is religious and does not bridle his tongue, but deceives his own heart, this one's religion is useless. Pure and undefiled religion before God and the Father is this, to visit orphans and widows in their trouble and to keep oneself unsported from the world. Yeah, thank you. So what we see here, we see that in this section James deals with a self deception that can occur when we think that we know the truth. And, you know, and it is the same thing that as practicing the truth, we need to apply it in our life and we have to do more than just the talk talk, but a religion must reach the practical side of our life. It must become a lifestyle. And he also says in James chapter 417 he says, therefore to him who knows to do good and does not do it to him, it is sin. Very clearly he says to him who knows to do good and does not do it to him, it is sin. You also goes further, can I request you all to turn to chapter 2 verse 20 to 21. James chapter 2 verse 20 to 21. Verse 20, but do you want to know O foolish man that faith without works is dead was not Abraham or father justified by works when he offered Isaac his son on the altar. Thank you. Thank you, John. What we see in this action James is making it clear that faith is just not enough. One must authenticate their faith with action. So it must correspond into action is confession and his work should go along. So James almost seems to be saying the opposite of Paul writing or is it so? Is he saying something opposite to what Paul said? No. No, it is the same. In Romans, we see that Romans chapter 4 verse 2 to 3, we see that for if Abraham was justified by works, he was something to boast about, but not before God. For what does the scripture say? Abraham believed God and it was accounted to him for righteousness. We also read in the Gospel of John verse 8. Sorry, chapter 8 verse 39, they answered and said to him, Abraham is a father. Jesus said to them, if you were Abraham's children, you would do the works of Abraham. So here we're seeing that all the apostles also emphasizing on faith should go along with works. It should not just be the profession of only lips, but it should correspond to our action. Can I request one of us to turn James chapter 2 verse 14? Verse 14, what does it profit my brethren if someone says he has faith but does not have works? Can faith save him? Yeah, we like to compare this scripture with 2 Timothy chapter 1 verse 9 and the other person turned to Ephesians chapter 2 verse 8 to 9. If one of us have turned to 2 Timothy chapter 1 verse 9, 2 Timothy. Brother Isaac, would you like to turn to Ephesians chapter 2 verse 8 to 9 and also your others? Yeah. 2 Timothy chapter 1 verse 9, who has saved us and called us with a holy calling, but not according to our works, but according to his own purpose and grace which was given to us in Christ's thesis before time began. Amen. Anyone else after on Ephesians chapter 2 verse 8 to 9? For it is by grace you have been saved through faith and this is not from yourselves. It is the gift of God not by works so that no one can boast. Amen. So in all these scriptures we see that they go hand in hand and it also emphasizes that don't look at only your works, but give glory to God. Yes, we need to have faith. It has to correspond with the action, but in everything glorify God in it so that we don't boast with our own work. But then it is the grace of God who enables us to do it. We cannot do anything with our own effort, but it is only through grace of God. So at all areas give glory to God and faith is something that we receive from God and we apply it in action. We also see that the same teaching, whatever Paul has taught is what even James has been teaching. They all teach the same doctrine, same words, same gospel they preach. So what is the unique feature of this letter? James as a pastoral concern. So there is no question that James is a pastor, but he sees and addresses all of the issues that pastors have to face every day when he was working with people who are not living a victorious life or not living as a matured believer. So he is addressing certain issues in this letter concerning the practical side and he is also addressing them and he's concerned about them and he would like to correct them. And you know, he wants to see them grow matured just like how Paul had this passion to the people in the places where he planted the church. So we see Paul, sorry, James addressing on certain issues in this letter like how to handle the temptation or handling the riches, hearing and doing it so important. You know, we shouldn't just be the person of just talks but then we need to apply it in action and he also talks about dealing with prejudice or faith and works. Especially he also talks about taming the tongue and how important it is to walk in wisdom. And he also talks about dealing with carnality or cultivating patients are so important in the ministry. We also see James knowledge of the sermon on the mount where he talks about, you know, the whole book of James deals with the application of the sermon on the mount to the local church setting like we see three points the addresses under most is God laid out the laws for the children of Israel and God's covenant of people of the Old Testament on Mount Sinai. He also addresses about Jesus. God laid out the law of the kingdom relating to the New Testament on the sermon on the mount. And he also says, James is saying God laid out how the laws of the kingdom apply to the church, the spiritual Israel of God. He also address about the temptation issues in this letter. So he gives us a clear presentation of the process of temptation found in the Bible. And also with the view to help the believers how we can overcome. So he's talking about man has been tempted. He shares about in the book of Genesis, how he was tempted and later how David was tempted by seeing the women. And also he addresses about Arkhan in the book of Joshua, how he was tempted looking at the spoils at a war. And he also wants about being enticed by our own lust. So he again shares the three example about Eve, David and Arkhan like combined with the desires within.  So he is warning on different areas where if when we are tempted when we allow the temptation, how it can, you know, create a desire. And this desire that when we allow it, it gets conceived in our heart. And once it is conceived, how it, you know, how it relates us with an action. It gives birth to sin or action leads to sin and and then the sin has been accomplished when we allow it. So at the first part itself, like how Paul says when, when we are tempted at the very start itself, when we rebuke it, try to overcome at the first place itself. So we will not be, we will not be led into sin. Okay, so he's just warning and he's giving us an idea how when we allow how a simple temptation can lead to sin. Okay, and he also talks about the heroes of the Old Testament. So who are there? He talks about Abraham because he was a man who verified his faith by his works. We also see James talk about Isaac, how Abraham prepared him as a sacrifice and it was an ultimate example of work verifying with faith. You also see James addresses, Rahab as seen as someone who demonstrated her faith by her action which resulted in her salvation. We also see James talk about Job is seen as a man of perseverance through suffering. We also see Elijah, he addresses Elijah as a man who knew how to pray and believe God for the impossible. And you're, James is encouraging us to be like Abraham, to be like Rahab despite our past or be like Job in midst of suffering and be like Elijah a man of prayer and then trust God, believe him for the impossibilities. Yes, it is a greater revelation or a reminder for each of us how we can stir this faith within us. As Paul writes in Romans, faith comes by hearing and hearing the word of God. The more and more we hear, that's one of the reason why continuously we see the disciples emphasize on the work of God. They remind us from the Old Testament how God was faithful, what God can do in different situations. So this is one of the things like how faith can be generated by hearing and hearing the word of God. So the more and more we hear about God, the impossibilities that God could do in each one's life. We can apply it in our own life, in our own situation, because we serve a God who is living. We serve the God who desires to minister to each one of us personally. And we also should know that he is a living God and who is living inside of each one of us. And here we go back to the book of James where he describes a description of the tongue, where every pastor should know that the greatest enemy of the local church is disunity. And you also talk about the greatest cause for disunity is the misuse of the tongue. And here we see in this letter that James describes the power that the tongue can have for both good and evil. I'm talking about chapter 3 verse 1 to 12 in the book of James where the tongue is like, he compares it, it is like the bit in the horse mouth. Yes, it is a small thing but it can control a large animal.  It is very small by comparison but it can control the directions of the entire ship. He also goes further and he says that tongue is a spark of fire. It may seems insignificant but then we know it has the potential to destroy the entire forest. You also says the tongue is more difficult for man to tame than the wild animal. You know why? Because it could do something within himself. So it's not impossible but then with God all things are possible. We also see the tongue can be just like the venom of a snake. That when injected it can kill its prey. James is also talking about the tongue which is like a spring of water. When it is pure it produces life but when it is tainted it brings forth death. It is so very important. Isn't it awakening to us what he is talking about? When it is pure it produces life. We are life giving people. We are to encourage. We are to empower people. We are here to build people. Let our tongue be pure. Because when it is pure it can produce life. We also see the book of Proverbs 18 to 21. It says death and life is in the power of your... Can anyone complete that verse? So you shall have what you say. You shall bear the fruit of what you produce out of your mouth. It is very very important. So James is not saying something new. He is just emphasizing the scriptures again and again so that you know we realize we are ministered. We can correct. We can empower ourselves as a leader. He is the leader of the Jerusalem church. He is giving us the importance as a leader what we need to do. He also goes further and he says that tongue is like a fruit tree or a wine from which people can eat. It can be a tree of life or of death. Again emphasizing on Proverbs 18 to 21. The power of tongue. We should be like this. We should have a tongue that is pure that can produce life. We should have a tongue that can bear good fruit which can also be contagious and which has the power to multiply. 130, 60. Can we tame ourselves to have a tongue that is pure which can bring life? And also this book. A learning from this book should be the faith which corresponds with action. Even during the time of trials. Or even when we have been treated poor. Even when we have been looked down by others. I'm sure James been the leader in the Jerusalem church. It is very nice for us to call him that way. James being the leader of the Jerusalem church. He was the main person in the council. But then we should also know the other side of you know the persecution that you would have faced from the Jewish people or from the other leaders around him. But he is saying in midst of that hold on to your faith. Let faith produce action. So what we speak here is look up to God. Trust Him in all situations. Just like the other disciples like Paul, Peter. You know, he is asking us to hold on to Jesus. In times of trial look up to him. And he was the man who was martyred. Even if he did not give up on his faith. Even till his death. Just like Paul and other disciples. So today when we study this letter. Can we look how well do our action reflect the faith we proclaim in our life? Is our faith is corresponding to the action? Is our tongue been tamed? Are we having, are we like the spring of water? Are we like the life giving fruit? Are we bearing good fruit? We need to look. And right now I keep the session open. If there's anyone in our class would like to add, share. Please feel free to unmute and you know, share your learning. Or is there something that you would like to add to this letter? Please feel free so that we all could learn together. I think it's interesting to see how James brings all Tasman characters as we mentioned. Including Job and also Elijah. How they operated in faith. And how we can make them as an example. And to practice that faith in our lives. I think it's quite interesting as we mentioned in the class. Yes, yes. Thank you. Thank you, John. Brother Abu Bakr, you would like to add. Brother Isaac, Zelle, Brother Subashish, Anita. Anyone. What was your learning or is there anything that you would like to add to this letter so we all can learn together. There's so much more to speak. But then I just prepared the class for 15 minutes. What we could, the important points that we could discuss, learn from this letter together. Okay, I see complete silence. So I understand that it's clear and we can. Yes, yes, brother. Please go ahead. I wanted to add something, one about his death, about the death of James. And about the works being talked about here. Number one, about death. He was put on the same pinnacle where the devil put Jesus Christ. And he was pushed off that pinnacle of Jerusalem and he did not die.  And somebody out of Petimasi put a club on his, on his head and he breathed his last. But when he was looking at his dead body, they found that his knees had been marked. They were, they were more like the legs of a horse. That means that he was always on his knees. He, he lived most of his life on his knees, most of his time. So, and the reason they called him, they called him just James the Just. Because he was a very honest man, whenever your case would reach him, he would always give the best opinion as far as scripture and what he was concerned. Number two, about his works, about the works being mentioned here. We might be confused with what Paul says in Romans that it is by faith alone, but not works. We don't hear what they talk about the faith. I mean, the works that Christians need to do are the acts of compassion, being kind to each other, welcoming. Just as Jesus Christ said that if you come to me and you say, Lord, Lord, how did I mistreat you, what and what. It really means that, formally, the works were on Tuanu's body, whereby you needed to be circumcised, you needed to keep the sabbaths, you needed. But after the cross, the acts of compassion, the acts of, those acts of compassion you do to others, because it's not on to yourself only, much as you have to live a just life, but you also have to do most of what you do for others, just as Christ also died for us on the cross. That's what I have to say, Tisha. Thank you. Thank you. Thank you, Brother Lubega. You briefed about certain very important points, like about his death. And also one of the character of James, which was very well known, is about, you know, he was also nicknamed saying that the old camel knees because of the clauses that he had developed while kneeling and prayer. So he was known as a man of prayer where he used to kneel and pray and he developed that clause and he was nicknamed as old camel knees. Yeah. Anyone else would like to add? Thank you, Brother Lubega. Anyone else would like to add? So we all are very clear on this letter. Let's emphasize certain things from this letter is to be a man of just, to be a man of prayer. It is good for us to pray on knees. Somewhere I read like the knee mails are answered, you know, fervently. So the mails are good, good to kneel and pray and seek God and yes, faith with actions is very important.  Let it encourage and build others so our words should be to build others. Okay, because we are the ambassador of Christ, we reflect him in our life and what is within you is what comes out. So within us is God, so his words, his nature, his character should reflect in and through us. So with that, we will end this session. Can I request one of us to please dismiss us in a word of prayer? As we studied, can I request Zelle if you can pray? Sure, Pastor. Let's pray. Father God, I want to thank you so much for this wonderful session, learning from the book of James, Lord.  Lord, taming our tongue and also doing the works of Jesus and working by faith and also Lord, help us Lord. Oh, hallelujah, Father, you bless each one of us and also bless our pastor who taught us this morning, Lord. Bless our pastor, bless each one of us, Lord. And Holy Spirit, continue to guide us, lead us throughout the day, Lord. In Jesus' name we pray. Amen. Thank you. Thank you so much. Amen. Amen. Thank you, Zelle, for praying and thank you each one for joining into our session. God bless our great week. See you all next session, next Monday. Thank you. God bless.


Dann werde ich mich nicht umdrehen. Wenn Sie uns helfen könnten, wenn Sie eine halbe Stunde oder zwei helfen können, dann reden Sie mit mir, es gibt Kamerastoffe zu machen und das ist es. Gut, aber jetzt zurück zu Bernd. Du hast das Internet gebrochen und wir fixen es. So Bernd, fixen Sie das Internet. Und das ist fantastisch. Ein Applaus und dann die Stages für Sie. Danke. Okay, ich habe über drei Themen gesprochen.  Und jetzt sind die Net-to-House Höhe des Levels sehr gut gemacht. Also bin ich auf der Höhe des Levels konzentriert. Das ist der Teil, wo Sie es nutzen können. Und diese Präsentation ist verwendet in der User-Interface.  Denn unsere Browser sind zu groß und haben zu viele Attack-Vegatoren. Wir müssen einen neuen Weg finden, um Dinge zu verwendern.   Ich denke, wir haben es alle gebrochen, um zu viele komplexe Dinge zu geben. Und zu viele Protokolls. Und zwei große Browser. Und alles ist alt und über 30 Jahre alt. Wenn etwas über 30 Jahre alt ist, kann man es nicht mehr glauben. Vier Jahre ago Snowden pointed out how big the Internet is broken. And the politics responded to that by adding new threats to the Internet. So we now have a censorship, which approaches the way China wants to censor the Internet. Well, they do it, but it quite not works as well as they want.  So fake news means everything except Fox News, as we know.  We have crypto wars rebranded instead of increasing the numbers. It's now reasonable encryption. We have a number of dragnet surveillance laws, which legalize what they have been done before. We have the kill the link decision from the LGA Hamburg. We have people like Jim Sensenbrenner saying, you are not forced to use the Internet. And I don't know if it's good or bad, because 2017 was quite exciting for crypto. Crypto now means bitcoins. It no longer means encryption of your private messages. Forget about that. Crypto now means bitcoins and you can make a lot of money with it. This is from last year with the competition. The tour project faced some kind of Stasi like Tsar Setsung. And maybe due to their link to WikiLeaks, which faced the same sort of Tsar Setsung six years ago. And we want to have some solutions. Net2o starts to become usable. Gnounet starts to become usable with secure share. It's going to look a bit better than it looked before.  So layer one is physical layer. That layer is not part of a real protocol. It's just the wire you have. And for the existing Internet, you use UDP as layer one. So you use the existing Internet with UDP as very lightweight as layer one of all those protocols which stack on top of it. And when we finally replace the Internet, we can remove UDP and do it directly on the wire. Next layer is then label switching, path switching. So you can join a number of short labels and switch packets through a path. The source has to route the packets, not on the fly. That is quite good for high bandwidth, for scaling. And when you have big tables on the routing tables on the Internet and when you have insecure means to announce routing tables like border BGP, then you want something more secure, faster and you want something different. The way the Internet did with routing and every hop was quite good for the time being, but you can do better. Next layer is we need to encrypt everything. There's no encryption. You need to have modern encryption standards, not the old one. You don't want to carry a big library of encryption you never use, because it's already broken. Next layer is the, let's say, TCP layer on the Internet. So you need some flow control, some congestion control, some retransmits if packets get dropped and that is here is timing driven instead of window driven. So even when you have packet losses, it's not going to slow down. And then I need a layer where I pack structured data and where I can send commands. And I do that with a stack oriented tokenized command language based on force, but not Turing complete. If you know Bitcoin smart contracts, they use about the same thing. Developed at about the same time, completely independent from me. So this, and if you look at the Java virtual machine, you have a Turing complete machine that is also using stack based language. Then you have the layer with files and messages as distributed data and distributed hash table. And on top of that you can put your application. So last year I gave a talk about onion routing as to provide anonymity, but onion routing has a big problem that is timing correlation. If you can sample enough package, you can de anonymize everybody who is using Tor. So that is for low profile targets, it's not feasible. If you're just using Tor to browse your Internet and go on Facebook without being attached to an IP address, you are still revealing a lot of your data to Facebook, but the de anonymization is not really feasible. So that kind of silly Tor usage is okay. But if you are a target, Tor does not help you. If you like Silk Road, if you are a journalist, which does things Donald Trump or the Chinese or Putin doesn't like, Tor does not help you, they can track you down. So one topology that is better is a mixnet, but a mixnet has a big disadvantage. Mixnets collect messages until the buffer is full enough and then they spread out the messages in random order. So no correlation is possible or not very easy. But that takes time and people want real time experience. So what to do? The easiest solution is just to push out garbage with a constant bandwidth and if you get something in, you push out the contents instead of the garbage.  And to get more bandwidth, I plan to have a multi-pass solution so you're not going to use just one switch circuit but a number of switch circuits which each give a guarantee of a low bandwidth. But together as aggregates you have enough bandwidth to have fun, to have real time fun. That is plan on the lower levels. All the other lower level part is finished. I just not finished with anonymity part. So now we go to the browser, the user interface part. The code name is Minos 2 because 20 years ago I wrote a user interface in the time where Delphi was very popular and I decided when they have Greek I use Greek mine is Minos and I completely rewrote that 20 years later using OpenGL as basis because you have OpenGL on any smarter device like smartphones, laptops, even on Windows there's still an OpenGL driver available. It's possible to use also Vulkan but I think it's overkill because it's not a game engine. It's just render your text. I use FreeTypeGL for the fonts. FreeTypeGL is a very small project and they are not working very hard on it so I forked it off and edit the things I needed. I use Soil 2 for images. It's also a very small project and the small project has a big advantage that the attack surface is not so big. I want videos to textures and unfortunately that is a lot more work so I need to use the big frameworks like OpenMax on Android and CheeseDreamer on Linux. When you are familiar with the coordinate system on Windows or on X you usually have this coordinate system with the origin on the top left and in OpenGL it's like Mars, it's on the bottom left. So you have to rethink a bit. Type setting is done like Latex. You see, I can even do the logo of Latex this kerning, this rising, lowering. So you are not going to have a poor type setting. Fortunately Latex is not really complicated. It's just powerful but it's a relatively simple program in today's standard. It's printed in one book so it's a few hundred pages of programming code normal things we nowadays see. You couldn't print them out like a Mozilla Browser. You would run out of paper before you print out all the source code. I want to have very few classes. I want to have a very lightweight, object-oriented system. I want to use combination, combinatoric stuff, not many different, slightly different things. So, those are the base classes. Editor, text, emojis, icons, image. You can have animations. So, essentially everything that is visible. And you have boxes, horizontal, vertical and stacked on top of each other. Latex doesn't have stacked on top of each other but the other two Latex has. So, it's based on the way you do Latex. And you can either render to texture or to display. And so you don't have too many things to consider. And by combining all these things you still have a lot of power to do your rendering, to do your markup and build frameworks to display things. Because it's not like HTML is for everybody. You know why HTML is so bloated because everybody wants to render something different. Somebody wants to render a map. The other person wants to have a small game and just pushing it through. Already structured text is not the right way. The layering is wrong. You put the structured text on top of the objects you want. So, I start with the document object model not with the structured text itself. For animation and things you want to minimize draw calls. So, I have drawing different things in layers. Each of them is one draw call. Only the image takes one draw call per images. So, I think we can go to the next point. In 2017, the big thing was crypto and crypto means some money on the internet now. It does not mean send your messages. So, I thought about why do they want this Bitcoin? Why do they want the blockchain? What's wrong with it? What can we do about it? What's needed to do? What's not working well with the system? Can we fix it? Is it broken? I think yes, it is broken because Bitcoin is just a proof of concept and it way outgrows what it could do. So, it's not broken in the sense of Bitcoin as proof of concept is wrong. It's wrong when you scale it up. That are my topics. It's not just technical. It's also ethical. It's society and it's about history because I think one of the shortcomings of Bitcoin is that the concept of money is a libertarian concept of money. It's not very scientific. It's not modern. Let's go about the history. Fortunately, when we talk about the history of money there are things first. We don't have to leave China and essentially all Songdynasties a thousand years ago. We can learn a lot from this history if you look closely because they made all the mistakes vested in the industrialization 800 years later. So, how did money start? Money started with the shells. The cori shell. Money is about 30,000 years ago as the first cori shell object found. Use a jewelry and use to exchange things because cori shells are somewhat rare. They are very difficult to imitate, to fake. Even today you would not be able to fake a cori shell. Even with a high level of sophisticated material you cannot fake a cori shell. It's nanotechnology. It's the living thing. It is really difficult to fake. So, that is an object with an inherent value just as jewelry, but it is inherent somehow. You can exchange it with other objects with inherent values. That is the oldest concept of money we have. The bad thing about cori shell is that it is gaining value the further away you get from the shore. Because it is a maritime snail and you have to collect it on the shore and when you are in the mountains a cori shell is pretty valuable. So, the people in the mountains came up with an idea they mined metal. They made imitations of cori shells with bronze. So, we had the first metal coins. Also in Greek we had an independent development metal coins. So, metal coins is where you mine where you have the inherent value because the metal is rare and there is a lot of effort to take out of the mountain. The problem with this rareness is if your economy grows fast you run out of money. You have a lot of valuable things to exchange but nobody has spare money. And the Chinese came up the banks came up with promissory notes so it was not the state the banks who issued paper saying we give you a thousand coins if you hand in that paper. And the merchants liked to use the paper and the banks liked to use the paper because they could over commit their coins. You don't need to give everybody coins only those who actually wanted coins. And next step was that the state discovered oh, we can do that ourselves instead of minting expensive coins we print cheap paper we steal on it have a controlled procedure and punish everybody who makes fake paper and yeah, what they discovered in the process is we don't actually need the coins. The paper is good enough. That was the last one in the Mongol Empire in China they dropped binding the currency on silver they just issued paper that mild inflation of about 2-5% per year because that improves the economy people spend more when there is an inflation when the inflation is not big the function of money still is good so over 200 years money became a factor of 100 inflation but it's not so bad year to year is not bad it's just people who want coins don't like it and deflation is much more problem than mild inflation big inflation of course is also problem money works by the constant what you want for money is that you have a constant factor to exchange it with other valuables mostly constant slight changes are okay but big changes like the bitcoin spikes up and down that's not okay so yeah, what's the problem with bitcoin the lower problem is the value is very instable and the bubble it looks like a very textbook bubble development so it's now in the phase just before collapsing when it follows the textbook we don't know, we never know if it follows the textbook exactly but it looks like a textbook bubble but from a technical point of view the proof of work is way more dangerous than this bubble development because proof of work is dangerous to the environment you have to I think we have now 30 terawatt hours per year for just mining bitcoins this is an incredible amount of energy we need for a relatively small amount of transactions that are signed with these expensive hashes and it's not even very secure because the attack vector bitcoin looks at is what happens if someone fakes the last block that's not the most profitable the most profitable is fakes the entire chain because then the mining here was very cheap and the mining here before the bitcoin exchanges started was even cheaper so when you fake the entire chain you have about 16 million coins now you need to invest more work than was invested in the real chain but most of the work in this current chain has been invested in the last three months it's not before mining was not so profitable so faking the entire bitcoin chain and getting all the bitcoins as reward is a way better attack than just faking the last block so it's not very secure then we have the problem with deflation deflation works like this inflation is money is cancer deflation is in fact nobody is going to spend bitcoins to buy something everybody is using their bitcoins to speculate they do day trading maybe and then they need transaction but to buy things to sell things bitcoin is useless so typical sign that even spam sending is now you get spam join the bitcoin wave or the israelium wave and you don't no longer get Viagra spam so this scheme is very profitable yesterday somebody from the bitcoin group said they want to do the exchanges on chain so this decentralization that is a good development because if you think only works for exchange for speculation all you need is the exchange and when it's decentralized cryptocurrency the exchange should be on the blockchain that is not in some bank like Mount Gox which went bankrupt if these exchanges will go the same way when bitcoin collapses again so there are things to do and that's about ethics so the bitcoin people are pretty religious often and they are like these banksters so they say have you a moment to talk about our lord and save us a free market and I think they have 3 seconds and they will go day trading again so it's maybe not so bad as moments or Jehovah Witnesses but there is a religion about free market so everything and the bitcoin universe already has a verse just after few years has a verse distribution of wealth and the liberal economy managed in the last 30 or 40 years and inequality means that society is going into self-dom if you aren't a bitcoin millionaire you have to work for the bitcoin millionaires and that happened in almost any society where money was deflationary and the economy grow fast so money is attracted by those people who already had money and they make more and more we had the robberbaran economy in the wild west and in the Song Dynasty China we had about the same problem in north China they solved it by a revolution and killing all the gentry and in south China they solved it by an organized change of how the state worked to a more socialist model but something needs to be done to be fair and equal so this deflationary system is not fair it's not equal it makes people rich and most of the altcoins follow this model because when you issue an altcoin you want to become rich quickly so you make a white paper you collect bitcoins you give out your coins your now worthless coins and hope that you find bigger idiots buy them and sell them to even bigger idiots and that's how these Ponzi schemes work it works quite well until it crashes so now about the actual technology beef what do you want to prove when you have a blockchain what is the challenge the challenge is you don't want double spending you have digital money is just a number numbers can be copied without problem we want the number to be unique uncopiable just in one blockchain and bitcoin came up with this proof of work it sort of works and it burns a lot of basic minor energy it is very costly and it is marginally secure and what is also doing is centralizing the process again the idea was decentralized but now we have five minor pools all in China and they do a centralized proof of work they distribute the actual hash computation to decentralized parts but the selection whose transaction goes in is done by five pools and if they don't want your transaction to go in it does not go in so Ethereum such as proof of stake and yeah that works because we have said that it's called banking system the banks have a stake we trust the banks because their own money is at risk if they go away with our money but that also has problems because money corrupts and since 2008 the banks don't trust each others even though they have this proof of stake so proof of stake is probably not much better than what we have now with the banking system it's not a replacement what I suggest is proof of well behaving we must see that the attack for double spending is not just trade your own blockchain it's also you must make this blockchain public so you need a man in the middle attack so people already know where to get the most recent block and they trust the person who gives the full node who has the most recent block only this full node can misbehave and also when we look at this game series when you just sign one block you can decide do I cheat or do I play honest each time you can decide a new in the bitcoin universe the signature is completely anonymous it's just a hash nobody knows who did it so it's just one decision each time you can cheat now you can play fair next and nobody is knowing you cheated this time we know from game theory if you have a repeated prisoners dilemma so you are known when you cheat now nobody wants to play with you and this repeated prisoners dilemma is what makes people trustworthy even if they are gangsters even if they don't want to be honest if you look at the mafia this ometta and that works by repeated prisoners dilemma you don't cheat on the godfather you don't cheat, it's not possible you will be dead and the punishment is much bigger because you want to repeat your actions you don't want to make it one time cheat and then be honest member again so sign the blocks know the signers use the PKI system have crypto parties know the persons who do the signing you don't need to know the persons who spend the money that can be anonymous but trust is much better if it's not anonymous so last question is how do we scale the blockchain in the bitcoin blockchain you know it has about a few transactions per second when we look at the competition micro payments on the internet like widget pay they peaked off last chinese new year with one half million transactions per second and that is for one tenth of the human population so if everybody wants to use this online micro payment system and send friends, small gifts a few cents each and you will want to have five million transactions per second and it's not going to work when it's on one computer when it's one blockchain no matter how much bandwidth you have how much signing power you have a centralized solution is not going to work well so we want it decentralized we want it not just replicated ledgers, we want partitioned ledgers and we still want to be able to check every transaction not like the lightning network where we do all the transactions in the bitcoin network offchain and maybe we have to orbit all the corrupt transactions that didn't arrive and then the blockchain would be needed and would quickly overrun the limit of transactions onchain is not enough to orbit a lot of broken offchain transactions so what I suggest is to use the standard practice of bookkeeping you have double entry bookkeeping and that allows you to cross check all your bookings even if you have many books so if you have a distributed partitioned ledger all of your transactions going from one ledger to the other must sum up to zero no matter what you do the accountant has no money in the system so all the entries come from outside everything you add has a balance, has a negative you have a debit and a credit entry in the system put money into the system you say we promise you we give it back to you that is the credit and this money now is in the system is the debit so you can quickly check that all the bookings are okay and you can partition the ledger by coinpupkey and you can use an n-dimensional ledger space to have only small parts of the ledger space talk to each other in each cycle and then you switch to the other dimension for the next cycle that's what I'm doing I'm now developing the concept that's what I want to add as application part before I thought using no tala is good because it moves all the hard part over to the banks but one problem is the banks don't trust each other so in capitalist America bank drops you you have the problem with Lehman Brothers with the complete trust of the inter-banking transactions eroded in 2008 so that's why the bank want blockchains they don't trust each other and the last thing I want to talk about is how to mine coins so normally a blockchain is just for assets you can do normal real world assets in a blockchain you can do euros, dollars you can do real estate in a blockchain you just must make sure in this blockchain because if you hard fork a real estate blockchain the real estate would be in this bitcoin and bitcoin gold and bitcoin cash 3 times which one is the right bitcoin we don't know so you must when you do real things in the blockchain it must avoid hard forks but how do you use the coins the typical altcoin is mined by creating a lot of coins and before you start with the project or while you do the mining and I don't want to have expensive mining for signing the blockchain I don't want to use expensive rewards there so you have to you need a different process of mining the idea of mining is you have to do something difficult you have to do work but it should not be automated work because it just burns energy it should not pollutes environment so if you mine gold is not ethical mining mining gold is one of the dirtiest things you can do in the real world and mining bitcoins is about the most unethical thing you can do in the virtual world because you really burn fuel for value which is compared to the rest of the acumenomies about nothing and my idea is a number of free software projects other scientific projects live from donations now we give the donation to the project we don't get anything directly back we get the software back we get the knowledge back but we could just issue a voucher a tradable voucher return back that voucher and you could trade your donation if you decide I want to donate now because I think this project will become great next year and many people will donate next year I donate now next year to all the other people who also want to trade with these vouchers and donate to this project and that is of course self-interest of those people who want donations it's also in the self-interest of the people who give donations and it is in the interest of society because we get funding of free software we get funding of other interesting projects where we now have difficulties because people now donate the money is lost forever they cannot reclaim it by selling the voucher to somebody else they must make a tough decision this would make the decision maybe easier for people to donate and add an incentive to be speculative and donating to projects which are early and not donating only to the big projects which already work well and are well known when the project is well known the price of its donation is higher than when it is new I think that way we can use the hype about bitcoin and other coins instead of just wasting more and more energy and that's it I have two links now and you find a lot of more links on when you serve sauce so, yes, I am ready for questions thank you very much Dear Bernd, questions from the audience now I have a question about Minos if I got you right you made this presentation with Minos is that correct and how did you do it or what would I have to do if I wanted to make a website at the moment it's just the document object model so you have to fill in the document object model with entries and I can show you the source code but later you shouldn't do that in source code you should use something like markdown but I don't have a markdown pausa right now the source code of the pages itself first I define some macros like here this latex now that is a macro definition I want to render the latex logo I need some string, I create a text object, a small text object and I need to do rays and kerning but that is just filling that is all written in force and we will have a talk about what is force in the evening at 1830 all the natural is written in force and fortunately this helps me to write this macros quickly I don't need to write a new programming language that is how you how you then create a page so wrap up, you have a frame on the bottom with a color you select the color of the font, you set some baseline skip you set the font size as large, you create a text you arrange it center change the color of the font and of course when you have a markdown the markdown parser would just go over the markdown and create fill in the document object model with the text it found in the markdown but here everything is done manually everything is done with commands write in the source code fill the document object model this is manual work I am doing now because I don't have the higher levels, the markdown parsers I will add that later when everything in the document object model is ready I can add a parser on top of it I think markdown would be my favorite for this kind of application because everybody knows markdown people seem to like it unlike html was the like markdown so that would be when I have the markdown parser ready and you want to make a presentation write it in markdown what is the overrun the arbiter attack you said the lightning network is susceptible to overrun the arbiter attack not familiar with that look you have 5 transactions per second in the blockchain the lightning network works by not checking the actual transactions and if you think your transactions didn't come through you push the lightning transactions to the blockchain so let's say you have a queue of 5 hops from A to B on the lightning network and it didn't arrive at point B all the nodes in between to the blockchain you have need 5 transactions in the blockchain but let's think we do a million transactions per second in the lightning network that is entirely possible no problem and 10.000 of these 1 million block transactions don't arrive because some evil persons took the money and ran so now we have to push 10.000 lightning transactions into the blockchain to do the arbitring and the blockchain can only do 5 so the risk of getting caught when you run away with the money in the lightning network is very small and this overrun the arbiter actually is a real world phenomenon if you order something in China and you don't get what you want you could go to court in China they actually have a court system but it's completely overrun so the likelihood that this case goes to court is about 0 and that is why the Chinese merchant cheat you it's not because there is no law it's because the arbiter is overrun thank you thank you the proof of work we have now is already centralized in bitcoin we have just 5 pools the actual work is decentralized but the choice which transaction goes into one of those pools is made by a central instance and work has economy of scale and if you say who is going to do the work with the proof of work system it is going to be those people who can do it the cheapest so that is why we have miners in Iceland, in China in Mongolia because they can do the work which is actual machine work it's not human work, cheapest and that is centralizing by itself so when you have proof of trust you don't give a big incentive to the people who sign the chain because signing is not expensive the operation is not expensive but what must be expensive for them is to gain and retain the trust so that means auditing that means you have to be known in person that means we check where you live if we can get you into jail if you cheat if you say I'm from Nigeria I want to join and we figure out there's no way to get you in jail in Nigeria but when you cheat us we will not accept your signature we will rank it down at least so we can use existing systems of keeping people honest and we can also build our own we can make sure we meet the people at crypto parties we know they are honest we know what person that is and we know it's not this thousand people is just a sibling attack and there's really only one guy behind them because we want to show this guy we want to see this thousand people, we want to see them and that makes sibling attacks difficult as PKI is not an easy problem is not a problem that can be solved with technology alone we know that from our crypto parties with PGP and we know that people don't quite like to come to these crypto parties and but when you do something which is a has a high responsibility we can also ask you to do the effort to prove you are honest and real and about science and ethics ethics, we are talking about economy economy is game theory and so that is mass but the result of game theory is ethics if you do it right so ethics is a scientific topic and you can use mass to do it any more questions from the audience thank you i have one more question isn't it that there is actually some value behind bitcoin because it's used on the black market so it has basically some unethical value one could say mostly and i mean there are these speculative transactions but you also have this in other markets i don't know like silk road or things and i mean in real world markets you also have trading bots which also do only speculative transactions and they make up a large quantity of the volume yes of course market means that you have speculation and anonymity of currency means you also have people who want tax evasion and illegal business that is clear but that is something in the real world currencies also facilitate you can use cash and it's just maybe more expensive but when the transaction fees of bitcoin rise higher than the transaction fees of sending a suitcase full of money to somebody else maybe the drug dealer will go back to cash and not use bitcoin we don't know it's just take the cheapest that's available and i'm not for full anonymity for completely hiding like monero or zcash where you have an expensive operation so you can even hide the amount of money transferred and hide the networks where does the money go from go to i think had this overkill for normal for honest transactions you just want to vanish in the mass like what i said before with the tor network there is anest user which is not a target is safe so i want to have a system where the honest user is safe because there are so many of them and the target is not safe so if you do silk route your onion routing can be broken and your bitcoin can be broken they did it with silk route so even bitcoin is not secure enough for this kind of silk route which is why i heard that most of the drug dealers now use monero and no longer bitcoin i don't want to be part of the race for the most unethical ethical business that others can do and they will suck away the bad guys from the simpler and less cost efficient systems when you do bad things you want to pay the cost for doing your bad things the good people don't want to pay the cost so make it simple make it secure enough for normal transactions where you would have to sift through a big heap of data with a lot of computation power to find everybody that is okay for me i don't want to be perfect with anonymity money exchange it's not ethical because just look at what kind of bad things people can do okay audience there's a more question this in total sounds a lot like not sensor resistant very controllable you control who has trust so it's easy to sensor you don't want to be used like real money you cannot do bad things with it so you decide what is a bad thing to do and it shouldn't be used for that the arbiter doesn't know what you do with it the arbiter only knows you make a transaction and due to the trust system if you as arbiter decide you are not going to let this in and the next arbiter decides i'm going to let this in you may lose your trust that is a danger so if you try to sensor as arbiter there's not just one arbiter there are several arbiter if you try to sensor you might lose trust because the other arbiter all takes this transaction you become a minority and if you misbehave you lose your trust you get thrown out of the arbiter system so you wouldn't do that you know how much money it is but you don't know is this buying a car or is this buying drugs but you just said that you don't want to support people buying drugs on the black market and you're fine if the anonymity is not that big i'm fine if you can figure out who gets all this money and when the police already knows he's selling drugs they just want to have a proof that he's doing it then they can figure out who is this guy like cell crowd the police knew there is cell crowd it exists we just have to find the guy who aborberates him Bern, thank you very much applause for Bern