"It's typical that Bitcoin bounces at the end of the month. Like this as we have futures contracts expiring pretty soon people people are Panicking to sell off after that last bump and we've seen this for about four months in a row now so I'm onto you Wales anymore your shitty contracts and I'm making a fat profit I let's rock and roll and we are joined by an extremely special guest. His name is Eric Larsen. He is the CEO and the founder of blocks route. So hurry welcomed the nation. Welcome CRYPTO WANNA one. Thank you so much. Thanks for having having make yes and reason expert in literally everything that has to do with blockchain technology so you guys are going to have a very special treat and I'm going to start off not with asking his background. I'm going to start off. Asking what the Hell is a blockchain. Why should we care? That's an excellent question and thank you for keeping the background. Everybody have heard. Oh tell us how you got into blockchain who cares how I got into the box. What's going on here? And that's all that matters right there. Like do you really care what they need. At least two thousand fourteen two thousand fifteen hundred zero no But what in the blockchain chain and more importantly why should we care about. Blockchain is an excellent question so blockchain's forget for a second how the technology works and what he does which sometimes it's people over focus on the idea that the does it it allows for something quite unique it allows for people who don't stand next to each other who just just like you know sending messages to one another on the internet or whatnot. They allow them to collaborate without using a single server that supports them gates eight Sunday control the server the same way that we're not using Xuemei. Thanks so zoom has servers were all talking and the recording this conversation and it goes through their servers and stuff stuff gets done but if somebody hold the servers to some level he controls everything he can say. Oh I don't like rice anymore and like okay okay. Knocked allow you to participate or it's like that old saying possession is nine tenths of the law right though it's nine ten but like it's also also the tents tents if you hold the biggest gun or you have the most money so it is practically everything so this example of the conversation is not the interesting but how about if you think about Stock Exchange or the banking system. We're the banking system. It's kind of like whistle. bitcoin being the first I example possibly the most One that idea that fewer snowden or something and then if your money is being held in a system that somebody else control that somebody else can throw you off the system and not allow you to project you access to your monthly at Cetera et Cetera. So that's the usual example. People that people say oh if I controlled my money and not somebody else. Nobody can throw me out. But there's more okay that's like cool and important than if viewer I didn't know it reach Asian family. You might be very rich but that doesn't make your money safe because if the government isn't very fair or just they can just everything you have cetera et Cetera. But even for more day to day examples if you have to company is that want to joint venture okay I think of two funds okay. They invest stuff and they want to do something that they need. Go to them to do it. But the operation will only have at one of them right either Sunday the oil funds be and whoever runs it can screw over the other guy not pass the money is supposed to or whatever are the details and other guy can sue him but if you have any legal bag around the fact that you can sue somebody doesn't really mean so much that it will take many many years and you might get it and might go get it so don't get started on that really. Don't get me started. How how much we're paying for lawyers? But the idea is that it. These two funds might decide not to do a joint venture. Just because you don't have to wait to cooperate collaborate and cooperate in a way that doesn't require one. I'm to trust the other and blockchain's that allowed for people to transact or to send her to do all sorts of stuff without placing their trust in the other got to run the operation. So that kind of make sense. Oh yeah absolutely. I think that was a great definition. What do you think Pete's does that? Suffice yeah I mean just to quickly summarize it it makes makes a way of communication happened between two or more parties and a trustworthy system where no one is in charger as advantage over the other. No perfectly said cool so so. Let's talk briefly about the scale ability issue with blockchain's what is that issue. If you could distill distill it down to a couple of paragraphs. Let's let's let's talk exactly about. That's a because that's my job to talk about that and be because it's an important topic so everybody who has been into Crypto ever send slade twenty four the indefinitely in twenty-fifty and everybody are talking skill ability the problem skill ability problems skill ability of Baba and the usual example. That people say is that well if we want to remove credit card companies companies and banks and Kinda like compete with them will a credit card companies are processing six thousand transactions per second right now on average the peak at what Alibaba peaked at three hundred twenty five thousand transactions per second in singles a Two years ago that's for regular transactions if eighteen thousand transaction per second if be going or a theory or whatever blocks they want to allow to do micro transactions transaction of. Just if you sense let you can't do which credit card companies because the fees are fifteen cents per transaction so you can't transaction now three cents if you allow these you open the door for all sorts of really really really cool use cases. Think of it as you park your car and rather than open your parking gap in pay for an hour and pay thirty cents like for fi how how about the car will just automatically delete communicate tuition the meter next to it and pay every minute pay like three cents. Another reason that and when you're done you get into to the car and you go and he's no longer pays a new never have to pay yourself for parking Twenty nineteen we have better stuff to do with our time. So these micro payments Aymen's requires something like ten times more fifty to seventy thousand transaction perspective and if you want to do the really really cool stuff okay. All the stuff that people I want to do on his theory on for example decentralized exchanges right you'd think about a thousand traders trading on an exchange and they're not doing the full blown outta trading forty thousand transaction per second they do each one hundred transactions per second that's one hundred thousand transactions the second. The numbers are huge. They were pretty much. Swallow any number of transaction processing. You'll keep them so. That's the need for transaction. Thousands tens of thousand hundreds of thousands of transactions per second and beat can do three transactions per second. Now we have segue so he does four point two transaction transaction per second. Okay three four. Five orders of magnitude do small ethereal is doing not like the the capacities just too small so when we described what is the scale ability problem is why or how can we process much much. Larger volume of transactions action per second because that. Describe the problem. Well enough it. Does I think from there we talk about. What are the different approaches to solving all being this so even even prior to talking about okay Larry to solutions and lightning? It's I think the one thing that is the worst. The better explaining is what is the bottleneck. Why can't we do more? Transaction per second in blockchain's everybody creators actions and minor listen to these transaction in every so often some minor aggregate to bunch of transaction into a block. Senator everybody in these blocks crate lunching. Why can't we doesn't do anti entire larger blocks or a hundred times larger blocks which would allow for one hundred more transaction per second or reduce the time between blocks by ten x one hundred x which will also gave save one hundred x more transaction per"