The video touches on contemporary issues regarding the evolution of institutions, highlighting the need for self-correcting mechanisms in the digital era. It emphasizes that existing institutions may not suffice within the computer age, suggesting that innovative solutions such as freedom of speech and free markets should be considered to facilitate societal development. The dialogue also mentions how encryption could serve as a safeguard against digital surveillance.

Further, the potential of cryptocurrency is explored, particularly as a decentralized mechanism for expressing financial independence. The discussion reflects on the dual nature of cryptocurrency and blockchain technology as potentially both beneficial and detrimental. The need for human oversight is stressed, to prevent totalitarian use by centralized entities and to ensure human agency remains central as technology progresses.

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Key Vocabularies and Common Phrases:

1. encryption [ɪnˈkrɪpʃən] - (noun) - The process of converting information or data into a code to prevent unauthorized access. - Synonyms: (cyphering, coding, enciphering)

We also think that encryption can be part of the bulwark against digital surveillance.

2. bulwark [ˈbʊlwərk] - (noun) - A defensive wall or protection against external danger or injury. - Synonyms: (fortification, rampart, safeguard)

...encryption can be part of the bulwark against digital surveillance.

3. decentralized [diːˈsɛntrəlaɪzd] - (adjective) - Not controlled by a single central authority, but spread out in a dispersed manner. - Synonyms: (distributed, dispersed, spread out)

... creating decentralized currencies, decentralized property rights systems...

4. utopianism [juˈtoʊpiəˌnɪzəm] - (noun) - The aim of achieving or creating a perfect society in which everyone is happy. - Synonyms: (idealism, perfectionism, visionary)

... this kind of technological utopianism, we just need to find the right gadget and it will solve the problem...

5. totalitarian [toʊˌtæləˈtɛriən] - (adjective) - Relating to a form of government where the political authority exercises absolute and centralized control over all aspects of life. - Synonyms: (authoritarian, tyrannical, dictatorial)

...a tool of totalitarian surveillance and control like never before in history...

6. polarized [ˈpoʊləˌraɪzd] - (adjective) - Divided into sharply opposing factions or issues. - Synonyms: (divided, separated, opposed)

...every important subject very quickly become politicized and polarized...

7. intervention [ˌɪntərˈvɛnʃən] - (noun) - The action or process of intervening or interfering in affairs. - Synonyms: (mediation, interference, involvement)

So we need intervention from outside humanity

8. fallible [ˈfælɪbəl] - (adjective) - Capable of making mistakes or being wrong. - Synonyms: (imperfect, flawed, errant)

...because the technology, every technology is fallible...

9. extrenched [ɪnˈtrɛntʃt] - (adjective) - Firmly established, difficult to change. - Synonyms: (ingrained, entrenched, fixed)

...like a fortify your position and extrench warfare.

10. surveillance [sərˈveɪləns] - (noun) - Close observation, especially of a suspected spy or criminal. - Synonyms: (monitoring, observation, spying)

...encryption can be part of the bulwark against digital surveillance.

Exploring the Role of Technology in Modern Institutions

I know, Yuval, we don't have much time left in this conversation. We've gotten kind of to the end point of where we are in modern history, and the recognition that we need self correcting mechanisms and sort of new institutions, probably that the old institutions in the computer age won't help us out very much. Governments are slow, they're difficult, they might do the wrong thing. So the question that humanity is faced with is, what are these new institutions?

There is a class of bottom up mechanisms and institutions that I feel like classically liberal democracies have depended on previously. These are things like the us constitution, of which you speak very highly of in your book, right? Enshrinements of freedom of speech. What is freedom of speech? Well, that is a self correcting mechanism for societies or things like markets, free markets, and the ability to sort of, if this market is not serving you, then you exit.

We also think that encryption can be part of the bulwark against digital surveillance. If every citizen had the ability to encrypt all of their data, well, then third party totalitarian dictatorships couldn't actually extract it from them and spy on them. This is kind of the project, really, of cryptocurrency. And what we think we're doing with Ethereum, bitcoin, these other things, is creating decentralized currencies, decentralized property rights systems, ledgers. That can be another avenue to express this self correction mechanism into the future and into the digital age.

I know you're not an expert on that entire project, but what do you see in the potential of cryptocurrency, at least at this point in time? It certainly is. I think you would acknowledge an interesting inter subjective reality, the way that bitcoin has grown from nothing to $1.3 trillion today. But what else do you see as the potential here? I think the key two points is to keep the humans in the loop and to avoid this kind of trench wolfer mentality that you see.

And this is because of the type of information network that we now live in, that almost every important subject very quickly become politicized and polarized, and you have to immediately decide, I'm for or against it and have very strong views and like a fortify your position and extrench warfare. And my basic view is, I don't know yet, it's too early. It's definitely a very powerful tools, new tools that we have with cryptocurrencies and blockchain and so forth. Based on historical experience, my guess is it can be used for good or for bad.

If you think about blockchain, for instance, so it sounds democratic, like 51% of users basically decide what reality is, but users are not humans. What if you have a blockchain system in which the government has 51% of users, as is the case in some countries today in the world. So then it becomes a tool of totalitarian surveillance and control like never before in history, at the press of a button. The government can change the past if it is 51% of users. Don't rush to conclusions.

And because the technology, every technology is fallible, this kind of technological utopianism, we just need to find the right gadget and it will solve the problem of all these fucked up humans. That's again, going back to these ancient mythological stories, that something is wrong with human nature. So we need intervention from outside humanity. We need some God, we need some magician, some spirit that will save us from ourselves. And that's a very dangerous and irresponsible idea.

I wouldn't trust any of these kinds of magic technologies to by itself solve all the problems, because technology itself is fallible. So we need to construct a system in which humans are still in the loop and they are able, if we create, I don't know, some cryptocurrency, and we put a lot of trust in it, a lot of weight on it, and something goes wrong, there is still a human institution that can identify, look, this is going in a very dangerous direction, and we need the ability to change it or to stop it. And if you only trust the technology, that's very dangerous, because we don't have a lot of experience with these new technologies.

So to anticipate in advance where it will be in five years. With humans, yes, with all their problems and faults and weaknesses, at least we have thousands of years of experience with them, so we know what to beware of and how to handle it. I wouldn't throw away all this experience and then just put all my bets on a new and really untested technology. Yuval, this has been fantastic, and I know you take the longest view of history here, so you're going to let this crypto blockchain experiment play out a bit more.

Before you weigh in, I'll share a personal hope, which is that your next book, eight years from now, six to eight years from now. I don't know what your writing schedule is on, but hopefully by that time we have some more proof cases for the self correcting ability, the way to check basically AI centralization forces with blockchain tech. So we'll see about that. I think there'll be a world of centralized blockchain technology and decentralized technology, and the decentralized one is the thing to pay attention to.

Philosophy, Technology, Innovation, Cryptocurrency, Blockchain, Yuval Harari