that's right. these are the hawks for me along with all of. the summit of the right. now everything is being turned into a massive cloud of dust the headlines this hour a series of thunderous explosions and a sign of good will in our team is in north korea's remote and mountainous northeast to witness the closing ceremony of the country's only known nuclear test site. says donald trump counsels what was supposed to be an historic summit with north korea's kim jong il and next month. the president keeps praise on russia as he joins the international economic forum in st petersburg. and russia rejects the latest findings of the crash investigators looking into the

an age seventeen tragedy saying their conclusions will rely on social media pictures rather than goodness. you can read all about those stories on our web site will be back in about an hour's time with your world news update with my colleague nic aaron right now but it's because it would. there's a magic trick with this pen but this just gets a magnetic attraction and you know that it's just jumps right on to the anyone can do that you just squeeze it with your fingers. station. that may have entertained some people but not me very not eyes that i have

a headline here you know we always talk about legacy banking system new banking system in the legacy legacy legacy banking system which is gold that's their original individual economic sovereignty but here we have a story kind of mixing the two this is the one going backwards a bit queen mining equipment maker kanan files for a one billion dollars i p o o not an i.c.a.o. i.p.o. so keen incorporated the world's second biggest maker of big mining hardware submitted a listing application to the hong kong stock exchange morgan stanley deutsche bank credit suisse c m b international capital our joint sponsors of the proposed offering according to preliminary prospectus bloomberg mary's reported earlier to say that canaan had filed for an i.p.o. that would raise about a billion dollars the filing didn't say how much can and will seek their quicken goes under the avalon oh avalon. right so the circle is complete they then tech revolution that is crypto is that being

a re entered into the overall financial markets and it has now transform those financial markets in ways that will now see take another revolution around between traditional finance crypto finance traditional finance and these two are catapulting themselves into a new financial reality crypto dominated remember the denominator for the new economic reality. for planet earth is bitcoin it's important to note here however that this is they're seeking money from investors who had no ordinarily go to one of those legacy stock exchanges they're not going to crypto investors and i c o i think partly also if you understand the whole chip making industry in a mining making mining equipment their number two this company they have fifteen percent of the market number one is bit main and essentially you know maybe cryptocurrency investors might know you can't compete with bit main even intel can't compete with maine as marshall long told you in their previous interview so

maybe they're like trying to exit the business because at one time but making my own one hundred percent of the market well it's different than owning crypto you know if you're buying a miner and there's a lot of different risks associated with that and i think your warning is prudent for people who think that they're getting into a crypto you know you know you're getting into the mining aspect a hardware a piece of drift and it has a completely different risk profile but as all was. tore they aim to begin trading in july they are also a chinese based mining equipment maker and chip maker a sick miner but now i want to turn back to another story that we've been following and in terms of why coin and all of these blocked chain sort of enabled new media alternatives the censorship resistant aspect of these is so important and why

we you know we discuss all the time the censorship resistance of our friend financial system so right now swift can be turned off for certain people you can censor an entire nation and the entire peoples of tens of millions of people who live in iran millions of people who live in venezuela they just get censored from transmitting data financial data across the world here twitter continues their own crackdown partly because you. various parties and groups are angry at other parties and groups twitter will hide more bad tweets in conversations and searches twitter will begin using a wider range of signals to rank tweets and conversations and searches hiding more replies that are likely to be abusive the company said today comments from users that have been blocked muted or reported for abuse will be less visible through the service c.e.o. jack dorsey said right censorship and that's what happens with free speech is that eventually it empowers and richest people who then use their power

to curtail free speech so this is the ugly side of democracy and freedom and fortunately i know of two twitter competitors that are coming online that are bitcoin crypto enabled and jack dorsey who is a keynote speaker at consensus this year if he wants to go against the crypto crowd he will be decenter mediated just like every major bank well this is part of that legacy system he has lists and you know twitter is listed on the new york stock exchange and he is trying to sell the service to legacy advertisers so he himself is very much into big point in fact and he's developing various bitcoin applications you know behind the scenes but here he is you know having to. these are the vulnerable points of essential ship. sort of system where you're censored easily on these legacy systems and

a lot of people have to say you're not going to get one hundred percent conversion to censorship resistant financial systems to censorship resistant media platforms so a lot of people do want to walled garden they do want to not hear any voices whether or not that's healthy for the entire diversity of the organism that is a body collective of society i think just tune into m s n b c and then fox and watch what has happened to america where people don't need to hear opinions that contradict anything they believe that only reinforces everything they believe and they can basically censor all the stuff they don't want to hear censorship destroys it democracy is metabolism and that it prevents the growth of all stakeholders who are incentivized to participate no matter what their opinion may be and censorship resistance is pro metabolism for any ecosystem or

society and that's why it's going to beat the cancer that has become us media of hyper partisanship that has created these echo chambers of deceit now one thing that edward snowden said soon after his epic you know journey from hong kong to russia and into exile is that he was asked i remember something like how will you know that it was worth it like was it really worth it and because as long as things change and people do something about this i feel like i have succeeded and it was all worth it but i think. you know a lot of people don't mind being surveyed they seem to not react negatively to this sort of censorship to the sort of we're mini people in the crypto community my feel is very abusive here's a story alexa and siri can hear this hitting command you can't researchers can now send secret audio instructions undetectable to the human heir to apple's siri

amazon's alexa and google's assistant so you could be sitting there having a conversation in your living room with your partner or your friends or your some intimate person your family member and it could be sending somebody could be sending commands to your devices around you your internet of thing listening devices around you and doing things you know the article points out the researchers say well they could order something online for you for example that you won't even hear the command it's being spoken right there in the room with you but you can't hear it but of course it could do more nefarious things eventually well the human being is not evolved sufficiently to succeed in this twenty first century you know our senses did a remarkable job of keeping humans alive four million years in terms of being able to hear see taste feel but now some of the algorithms in the machines of the robots have evolved past humans capabilities to see more hear more understand more feel

more we as humans have to prepare for the fact that we are now becoming extinct yeah because who writes the algorithms is the algorithms that are controlling these things and the algorithm second here messages that you can't because our human ear is not as of all right there's only one stop us a while a human wrote the algorithm and that's false the algorithms write the algorithms the algorithms jumped the genealogy of humans and are now evolving on a parallel track they are now running the show and they are evolving and breeding and having their own version of d.n.a. and they are creating their own. subset of culture and society and organisms and they are metabolizing and growing at a rate much faster than we are and we're becoming extinct full stop that's the fact so the article points out that these deceptions that it could be tricked by an audio attack it's called illustrate how artificial intelligence even as it is making great strides can still be tricked him into lated computers can be fooled into identifying an airplane as a cat just by changing a few pixels of

a digital image while researchers can make a self driving car swerver speed up simply by pasting small stickers on roadsides and confusing the vehicle computer vision system but as you say they can they can start gaslighting us and eventually ends up absolutely let's say you're in your house and your refrigerator goes to war with your toaster and the refrigerator sets and algorithms for the toaster to eject toast at a speed that would strike you in the head and kill you ok now you're in your you recall the crossfire between your internet of things at war with each other in your kitchen by the way importantly to know in this this is a shocking thing there is no american law against broadcasting subliminal messages to humans that's false well this is what they say let alone machines the federal communications commission discourages the practice as counter to the public interest and the television code of the national association of broadcasters bands transmitting messages below the threshold of normal awareness neither say anything

about subliminal stimuli for smart devices wow i thought it was a little it's just a skirt yes discouraged. the whole emacs girl we're doomed. well courts have ruled that subliminal messages may constitute an invasion of privacy but there is an invasion of your subconscious mind right there invading your subconscious mind it's a violation it's like you're getting a knife stuck into your subconscious mind and you're being murdered subconsciously and you become a zombie like a zombie bank those up. well on that now to take a quick break don't go away much more interesting in the war between refrigerators and toasters coming your way. to.

apply for many clubs over the years so i know the game and so i got. the ball isn't only about what happens on the pitch for the final school it's about the passion from the fans it's the age of the super money killian erroneous and spending two hundred twenty million and one player. it's an experience like nothing else not to because i want to share what i think what i know about the beautiful game played great so one more chance for. this minute. you know. you never know what's around the corner you never know what's in the pub you can walk into excitement it's that not knowing that's where the adrenalin much comes from. and you can

use a nice blend definition and the extremes will support. the violence is a part and it's almost a schizophrenia. where you can do all these things and behave badly. they're going to be full of horse colorful all. more social with the last. punishment and infirm. role. in the thought. i would grow older where no i really did a poll down. meaning in these means that at least if you don't involve these constantly evolving and. so what we've got to do is identify the threats that we have it's crazy for until you shouldn't let it be an arms race off and spearing dramatic developments only

personally i'm going to resist i don't see how that strategy will be successful very critical of time time to sit down and talk. welcome back to the kaiser report imax keyser time now to turn to hertzog he's the founder of bank corps a d centralized liquidity network yeah welcome thank you all right bank or exciting project i've followed it since its inception first of all the name refers back to a famous guy in economics right so walk us back a little bit to the beginning of bank or in the reference to keynes so basically and one hundred forty four old in leaders the economic leaders the financial leaders of the world they meet at bretton woods and there are two offers on the

table one is that offer by the famous a could. which is called bank or to create a supernatural currency that would be kind of the reserve currency for the nation in balance the trade between that the other offer was to use a gould back currency that was later changed to be the dollar. and that was the offer that was accepted you know you can imagine if the war were to you know united states is very strong and they actually start to use the dollar as the world reserve and it was backed by gold until seventy one as we'll do it right so backed by gold and that was seven seventy one and now we enter a period of fee at currencies referring to other fianna currencies what i call infinite regress or one turtle standing on another turtle turtles all the way down people sometimes make that that joke about what holds up the world infinite regress

now had we gone to the bank or with keynes after world war two what would the world be like today in your view because is it was it just going to go to a purely fiat's system right after world war two or was we mr in the interim. actually quoted as saying that that we will live to regret the. choice and his main argument is that you should not use a specific nation currency as the world international reserve currency because that would give an unfair advantage to the issuer of that currency and i think he was right and if we wouldn't think that route then we would have a much more balanced international reserve currency or supernational reserve currency in the form of bank or that would have to serve all nations and not all the decisions that are made made regarding you know how much to print out of it is made by a single kind of player in the game so that i think would be

a better situation had there been blocked and crept up back during that period it would have been an easier sell because the facilitation of such a vision would have been more obvious how to create it enter a bank course a bank or you get this vision i guess you had you know this can be possible now to watch and so how did that happen what was the moment when you decided you know what this is possible and walk us through that a little bit so you know i was before and the whole crypto reveal ations i would call it i was the founder of a company called medica fit which was a video sharing site was second to you tube but it's a winner takes it all game and i learned a lot about user generated video and how it changed the world where we became from just consumers of video to that anyone can broadcast a video of said and it's really changed our entire culture and when i saw it going i saw oh my god this is the first user generated currency so now people or anyone

can generate a you don't even know who the guy is and that was kind of the inspiration to start working on local choruses to see how people interact with curtis is the be create and we create a lot of for local courses and system for that and it was very successful for a while but then we saw that it's not sustainable we try to research that. you know i'm cutting a very long story short and we figure out that the problem is with was the lack of liquidity those small currency those local currency were not liquid you could not buy them because that's still them and because there was no price discovery i mean if you peg them it's really not a different currency it's just the same currency and we started to think how can we solve the problem of price discovery and liquidity for small currency because it obviously cannot work with a current exchange model in market makers in order books that wouldn't work because no one would like to trade that ok so for folks watching who this is some new information describe price discovery in a quick description of price discovery is basically the process in which you have

two different currencies used by two different groups and obviously you know in most cases people from that group would want to buy stuff on this group and vice versa what should be the conversion rate between that so today we use. an exchange based system where you have an order book and people can both order it's like you know let me say this and tell me if you agree you've got some buyers and sellers and you've got to create a price to satisfy satisfies both the buyers and sellers that's the discovery price you've discovered that price to clear that market essentially that's what happened then today it's like a last trade you have like a you know a lot of orders sell as willing to sell for the first price and buy willing to buy and those are like the market makers they put those orders and then you have those market takers that actually leverage those orders so it's like a kind of a bidding system if you will but it's a big arena where everyone can play and we see the last trade that happened as like the current price ok on the floor the new york stock exchange you've got people

showing up and they have shares of i.b.m. that they want to sell and they have shares of i.b.m. they want to buy and then there's a specialist who's responsible for price discovery or clearing markets matching those orders on the book you guys a bank or have a let's say a virtual market making techno. ology correct you don't actually publish prices based on buys and sells it's a different system and this is really i guess the secret sauce to feel well the value added that bank or bank so can you describe that yes so if on the exchanges the market makers are essentially the liquidity providers when you want to you know actually could birth you will buy from some market maker that put an order in place bank or the market makers a smart contract immutable decentralize smart contract that actually holds two currencies in the allow liquidity between that and he's a very straight forward smart car truck and as you buy one currency becomes more

expensive as you buy the. you convert to the other side who became less expensive so so it is doing the same thing i would like to i like to describe it is like a silver driving car technology but for market makers rather than drivers and it works we have like eighty like ninety different tokens that are being traded on bank today to the large largest decentralize exchange and i think it's the largest exactly because it doesn't have market makers because the market makers are here to make a profit if you think about it the largest corporation on earth or market makers there is make a lot of money from that and if you automate that so the end user gets all those saving because he doesn't need to pay them right the market maker will create a spread exactly to a in the buyers in the arsenal and they will capitalize on that spread because in order to have the ability to match orders if there is. no liquidity to match those orders they have to go into what they call their inventory and that inventory is

created by constantly kind of creaming off this spread for themselves and so this is an automated version where you don't have that intermediary so that really it's a market making without that intermediary and now am i correct if i say that. i can show up with almost. any size order to buy or sell and you will fill that order at a price because you're not reliant on an inventory system so is that correct so i would say yes but if you have a very large order compared to what is deposited in this market because if you have more deposit it into small contract then you have highly quiddity for example we switch is very popular we have ten million dollars on each side of the smart corporate fen billion dollars of ios and then within those warthogs b. and d. which is our own to look at and that provide very highly quid if you want to convert hundred thousand dollars it would move the price one percent but let's say

there are some real is off a small long tail currency which is just one hundred thousand dollars and in that case you know you would move the price a lot if you're trying to convert hundred thousand dollars like over fifty percent so if you want to use like a smaller reader you want to take your time and spend you know convert to three thousand dollars every ten minutes and then we'll give some to arbitragers actually to rebalance the prices with external exchanges because what arbitrage is do in any market not just in bank or the like billy quickly mover as they move liquidity between the arena when they see price differences they are outsourcing price discovery we're so arbitrageurs so and to a degree on these large orders because a book at some doesn't execute it but you stagger it and then you're getting price reference you can say that because because for currencies that let's say three did on buying this with their you know hundred million dollars in volume so obviously

the price discovery will happen primarily on buying it and that's the true for anything that is traded on multiple exchange that were you traded most that will be the prominent kind of sweet spot of the price discovery and arbitragers the translator that price to all the other exchanges by essentially closing. price differences where they see that because bank or is both a coin and an exchange it's like people don't describe bank or as an exchange they describe it as a coin now for example i know by an answer i know shapeshifting i know change lay and i know other exchanges and people are very familiar with those exchanges but they don't mention bank or when they send those exchanges what so first of all i think banker is is very new and he still is literally speaking in exchange because there was a world exchange means that you give something and i give you something in return and there's no matchmaking in bank or like you have on exchanges where you have

buyers sellers being rich is actually as synchronous because you can buy now and i can you know a sale tomorrow and that would work so that the word exchange maybe is not the word best word in this way we call it an equal network if something is marked on hard to get over a sonic best doesn't roll off the tongue like it's hard to talk about bank or because it's not it's you're doing something that's not really obvious like it's not obvious it will should be out in i agree the good thing is that we have a very easy to use user interface for all of that and we see a lot of people using it every day and when you use it i think is the easiest thing to understand it because within a single transaction on the theory you move you can convert you the orders and they say that you've been outstanding is no ok why not main they have all these other exchange people on there they have i mean you guys you said you are the biggest liquidity provider in the crypto the biggest decentralized exchange the centralized

exchange or stupid much bigger i mean if you measure a bank or against a centralized exchange we're probably fifty or sixty in size but in terms of decentralization which is like a new wave of exchange there are several we are to biggest and i i think the decentralized will take over as it usually does when you decentralize. something usually takes over the entire thing but it takes time what about on the security front sun a lot of problems these exchanges have are that they are getting hacked all the time and people are losing funds because they are centralized yeah and the kind of the buzzword of the year is decentralization and we hear about this now plying to exchanges you guys are like the first decent well one maybe not the first but the for his site certainly a very large one so is it just a curative protocol is it of a higher standard would you say or less of a security threat we don't have security challenge that's the nice thing about it was a because every exchange is essentially a transaction that the user signs on his computer we don't have access to any of

the funds and it's just the end user it's like a you know it's like. each user such a responsible for his own wallet security centralized exchange they take the responsibility from the user sometimes the use of prefers that they don't need to be responsible for their own security so they rather have some centralized exchange keep the money for that now not always working for the end user but sometimes it does come out this quick question in the space keynesianism it has a bad name because this space is filled with austrian economists and the idea of individual sovereignty and keynes is actually a vilified figure in this space is that like a branding issue you know i've heard that form hard core economic you know yeah but you know we were at the so should we were just associate with that's pretty folk proposal so even if you know i mean this travel quickly and things that are in

their heads and they you know it affects their behavior and that's you know we accept that as i think again the best the best proof and the best thing that we aspire for is for people to use it and we don't you know if you think about the most of the products on the earth that we're able to. could difference did that because a lot of people used it so we're really focused on getting more and more people to enjoy the platform to give us feedback to improve it i think that's that's how you win in this internet space and blocks your space not not in the enough to buy hype and not the buy brand you just do something people like great thanks man kaiser apart thank you for having me well that's going to do it for this edition of the kaiser report was made as are states every want to thank you he's the founder of bank or day centralized liquidity network if you want to reach us on twitter it's kaiser report the next time.

in some american cities the police have built them soon squeeze a reputation of people who walk on the street to be united states who are at risk from the very people who are supposed to protect that poor people are no more afraid of the police than of the terminals. you can.