"welcome to the a 16z podcast sonal and I are sitting here with Adam Ludwin Adam welcome Thank You Adam is one of the cofounders of chain and you guys are a block chain technology provider to large fin..."

"how those two things are being applied in the marketplace sure well Bitcoin was the first fully functioning digital asset the world has ever seen and a digital asset is one that is minted created nati..."

"the way Digital financial services work is that what actually we do for the most part with whether it's credit cards or sending securities on an exchange trading securities we actually send messages s..."

"ownership of who bears that token at that moment on the network on the blockchain which is the ledger for for keeping track of that and that's a big deal it's it's as big a deal as voice-over-ip I thi..."

"maybe the call clarity was a little bit better that you didn't have to pay more for long distance so that you get all these features as a result and the same is now happening in financial services so ..."

"and then that sounds that's exactly what chain does correct that is what chain does so we we've taken inspiration from Bitcoin and we've taken a lot of the fundamental technical architecture from Bitc..."

"so what might a suitable blockchain network look like for Starbucks and other issuers of of these merchant currencies or gift cards so those are the types of starting points that we we we begin with a..."

"know the argument that you cannot separate a Bitcoin and the blockchain is absolutely both true and false so the true version of that argument is that when it comes to Bitcoin itself it will it doesn'..."

"it going and and have incentive to keep it going and so the whole reason that I don't think we can completely disconnect the Bitcoin aspect of blockchain is that the entire system works because people..."

"so for those who are interested in either not participating in the sort of existing financial system or can't participate in the existing financial system Bitcoin is very well-suited so take for examp..."

"they are because they live in certain countries they're unbanked because there isn't the financial system right but shifting gears for a moment you mentioned that the core of your business at least th..."

"plays out so we is a great question we partner with financial institutions who view this as a strategic opportunity they view this as them there's a market structure change on the horizon where a lot ..."

"IP we don't actually need as many of the clearing and settlement functions that we currently use today right because they exist for the fact that we're just you know today we send digital messages but..."

"who run who run networks like Visa and Fiserv they run networks Nasdaq is a very central part of the capital markets ecosystem but the reason they've partnered with us is they've recognized that the f..."

"with cryptographic networks and so the first mover is most of whom are our partners have recognized that if we're going to go and do this it better be our network and we better set the terms and we be..."

"know at least for the users like you said nothing changed although the cost of use dropped dramatically right what what might me we see in this transition what you'll see in the case of the capital ma..."

"where I include as the output at my transaction that Apple stock it matches me with someone who wants to buy you send a hundred and whatever dollars it is when this this thing goes live a hundred and ..."

"really looks like a real-world transaction where I hold out a stock certificate and you hold out one hundred and fifteen dollars and we each grab the corresponding and then we pull in the opposite dir..."

"feature the bullet points on the marketing you know brochure are just gonna say you know instant settlement low-cost you know the seven dollars for a trade a lot of that goes to intermediaries along t..."

"most in general what we what we envision you know over time is a much smaller financial system actually because many of the players in that in the financial ecosystem are there because they are helpin..."

"better suited to customers the the very long-term and this is sort of controversial but I don't I don't I think some but I don't think is is that central governments will be minting currency this way ..."

"transitioning to and do you think that the players that you're working with buy into that vision because right now it seems like they're smartly opportunistically thinking about how to get in the game..."

"gonna have both securities but also currencies that are using to use to buy these currents these securities so the other big role on every network is where the assets being issued who's issuing them a..."

"about what it's like behind the scenes of actually doing this because on the outside it sounds interesting and exciting they're you know working together and collaborating and partnering but what does..."

"companies like change tip and paste change tip is for tipping with Bitcoin on Twitter bit pace is for sending Bitcoin to Africa other remittance services wallets exchanges they used our API because it..."

"technology got in touch with us because they said look it looks like you guys understand the technology so can you come explain it to us first of all and then second what's working and why and so we w..."

"thing we've learned and and that's how we focus our time you know the other thing we've learned that's that's kind of kind of interesting and probably is not a surprise to most of your listeners but i..."

"change and then of course finally the implementation right so the reason companies like Accenture and PwC exist and are very successful as they they're they go ahead and implement and re-engineer busi..."

"company chain two years ago because we had this thought that you know eventually people are gonna realize that it's the layer of the blockchain that is of interest but it was kind of a bet at gamble t..."

"so really is a seat it's really a c-level agenda item now and I by the way I know that because you know I used to work in management consulting many years ago at Boston Consulting Group you know and I..."

"assets are coming in other words this hybrid we have now of analog assets and then databases it doesn't doesn't make sense so we're going to go to a full digital stack where the asset itself at the ou..."

"results and they'll kind of be like and we tried that blotching thing and nothing there but then there will be a handful of networks that will be deployed by serious companies that will generate real ..."

"and permissioned blockchains which feels really weird because isn't that just like a database then so could you kind of lightning around answer sure that so a blockchain is a database so we shouldn't ..."

"discussion around permission in private I think we'll have I think the future will be many many different networks the Bitcoin network will be one I think you'll have networks around prepaid and gift ..."

"market I think that's the world we're heading toward from a regulatory perspective it just doesn't make sense you'd regulate like a giftcard network the same way to regulate a capital markets network ..."

"across those networks because ultimately we're talking about cryptographically issued and transferred assets so it's gonna be much easier than integrating two data centers with different database arch..."

"many competing efforts today and some of them will just go away right like not there will not be 50 different blockchain companies serving financial companies like there will be a few and there will b..."

"the first kind of technical attempt at digitizing other assets and there's there were many different approaches to doing that but what we're seeing is a shift away from that approach toward building t..."

"chain and the company that is involved in in that solution and that that approach includes many of the original engineers and architects of the Bitcoin network so they're really well versed and suited..."

"sure so it's I divide that into two categories one is apps on the Bitcoin network and then the other is essentially other asset classes right provenance or whatever right right so on the Bitcoin netwo..."

"activity around that so imagine for example tweeting about coca-cola and then coke pushing you you know a couple bucks worth of coke coupons yeah and then going to make doc and then going to McDonald'..."