(upbeat music) >> Announcer: Live from San Juan, Puerto Rico. It's The Cube. Covering BlockChain Unbound. Brought to you by BlockChain Industries. (upbeat music) >> Hello everyone. Welcome back to our exclusive coverage here in Puerto Rico. This is The Cube covering BlockChain Unbound, two days of wall to wall coverage. Got videos flying all over the internet. We're here with Patrick Moynihan, who is with BlockChain Unbound, but conference producer, BlockChain Industry CEO. Thanks for coming on The Cube. >> Thanks for having me John. >> And thank you for producing this conference. It is actually a big event, headlining all the top news stories on Wall Street Journal, CNBC's here, The Cube is here, but more impressive is this rebound in Puerto Rico. This event kind of turned into a flash mob of global players, investors, Bitcoin billionaires, Wales they call 'em, entrepreneurs, a real movement. You even had some folks here from the government in Puerto Rico. A real, not just insider event, this is like a bridging the insider world, and the global community. Congratulations. >> Well thank you. It's been an amazing turn out. I really commend the Puerto Rican government officials for stepping up and there are, you know, the department of economic development is our partner in this and they wanted to really promote this. And as you know, there's many crypto currency holders who are migrating to the island for tax purposes, and the seas and their tax based, which is all fully compliant, and have been in the laws for awhile. But the governor, you know, has really stepped up with his team. We've got Secretary Manuel Laboy who spoke yesterday, and had marvelous words to say. Really supportive of the overall industry. He's an engineer by training. So he's not a politician. So he gets kind of business and structure, if you will, and logic. He's great and also George Joyner, the banking commissioner was here and spoke lovely. So the banking commissioner is also forming a formal working group, as is Manuel Laboy. >> So this is actually a really big movement. I'm reporting here, yesterday and today, that it's not a culture clash. The local island residents, and now governments absolutely are on board with bringing together new a new ecosystem for a lot of reasons. One, they are motivated, there's a rebound going on, the hurricane hit. But now you have a new opportunity to be a digital nation. Digital island, probably in the U.S. I mean really be a player in an economic revitalization. Not only the island, but as an epicenter for all this money movement, all this opportunity with BlockChain. So talk a little bit about that dynamic because I think a lot of mainstream people don't understand actually what's going on in Puerto Rico and how it intersects with this global phenomenon. >> Yeah, that's a great question. So, you know, I think think the people of the crypto currency world believe that the technology is so robust, they want to use Puerto Rico as a test bed for infrastructure, for, you know, internet, for all sorts of different things in terms of building the best infrastructure, the newest best in class. And there's real energy here because there's a social movement underneath the entire crypto currency movement. And that's to basically help your fellow man, or women. That's what this is all about. And leveling the playing field. Taking, you know, big brother largely out of it. And just making it fair and transparent. So, I mean, that movement is huge. If people, if people want to understand crypto currency, they kind of need to understand the social impacts and the ability to really improve people's lives. >> I mean, this is not a tech conference. We do hundreds of tech conferences a year, and in our 10th year with The Cube, and you know what a tech conference looks like. This is not a tech conference. This feels like a tech conference, a developer conference, and the world economic forum kind of rolled in to one. Talk about a little bit about the stats. I mean, you guys sold out early. You weren't expecting this kind of a response here. Give some color into, behind the scenes around the event, BlockChain Unbound. >> Yeah, thank you. So we had an idea to kind of bring the dialogue onto Puerto Rico and really build a prepotency of information. An you know, through the process, and this has been a five an a half week process, we had over 800 attendees here today. It's been sold out for several weeks. We're getting calls from everybody. So you can imagine to get a ticket. But at the end of the day, there's a great mix of finance years, technologists, government people, just regular citizens who want to understand this space and how they can get involved in it. And one thing that we're trying to do is bring an education piece here because the BlockChain is about the next generation, and developing the skills and software for them to prosper and understand, and frankly, just you know, grow the space. Because they're the ones that's going to grow it is the next generation. >> Patrick, I want to get your reaction because one of the things I've observed, I've seen many ways in my day, my age, but this one is massive. And everyone compares to the dot com bubble, which there is some comparisons, more accelerated, obviously, more community that the dot com bubble didn't have, but in those big early days of those major inflection points, the business development, the ecosystem is so early, the nurturing is really important and you see a pattern, you see some emerging entrepreneurs. Boom, lucky strike or good hustling. Do something great. Then you see the PR firms come in, promoting it. You had this kind of promotion, entrepreneur, kind of euphoria, and then you got service providers come in, and then you got investors come in. That then takes to the next step. We've seen that. So we got a lot of PR out there. You see PR firms out there, you know, just pumping a lot of ICO's. The service providers are coming in helping entrepreneurs. Now the institutional investors are coming in with hedge funds. Then it goes to the next level. Real industry leadership, which takes that to the next level That's money, that's connecting different ecosystems. What is your reaction to that? Do you see it the same way and if so, what is that next level growth look like from an architecture standpoint? There's also some government participation. But there's competitions, I mean, Estonia wants to be, I heard France wants to be the ICO city I hear Armenia, you've got Bahrain. I mean, every country wants to be that country. >> They do, and we work closely. >> So what's the leader require to go to that next level? >> That's a great question. You know, we're actually in touch and working with many sovereign governments who have a deep interest in this and want to bring either sovereign wealth coin, or some type of crypto currency play, some type of virtual currency asset into their own system. I mean, what I'm seeing is nothing short of remarkable. The speed of technology and energy into this market is frankly just breathtaking. So what we're looking for next is that netscape moment. That implementation where everyone says, oh my goodness, yes this makes perfect sense. And that largely could be around being on a BlockChain application and having no idea it's BlockChain. And part of that is a technological leap because it is complicated. It's going to take some time to build out and create the speed necessary to make the eubicous behind everything that we do online. And that moments coming, in my opinion. >> You know, one of the things that I'm observing as well, and I think that you're right, I think that there's a new level of leadership. Again, that next level requires new constituents, new stakeholders. I was not happy with the John Oliver greasing of Brock Peters. I thought that was unacceptable. But what that sentiment is about, put that little opinion in there, but I didn't like what he did. I thought that was horrible, but. >> There's no reason to be nasty. >> I mean, they just took him down >> You don't have to be nasty >> Just horrible, John Oliver. I'm coming after you. Only kidding, by the way, he's great, he's funny. But that's kind of a cultural thing. We're hearing conversations in the hallway as, hey, I don't mind the burning man culture. But you can't run an industry like burning man. Although, burning man technically looks like a BlockChain if you look at it from the aerial view. But, you got capital markets coming. You got global governments coming in. So you have that naturation dynamic. So a lot of these early guys are feeling, this is my opinion, I'm seeing this, okay, I don't want to get drowned out. At the same time, we want to go the next level. What is the dynamic, in your opinion, you know, you run a really big firm, you're a senior leader. What is that dynamic? How does everyone win? What are the stakeholders? And what's the formula in your mind? >> You know, I mean, now that's an interesting question because you know, the burning man crew has done incredible things in this space. I think that they're largely viewed as potential anarchists to some government officials and there's a fear factor there So you've got that aspect, and then you've got just straight business people that just simply want to economize and efficiencize and just, you know, be smarter, faster, stronger in their business operation, so, somewhere in the middle, there'll be a blending, and I think, we're all going to have to work together. Competitors, colleagues, everyone working together, with government officials. And again, the regulations are still under flux. The regulators been very clear just saying we think self regulation is a good idea. Step it up. And that's one thing that BlockChain Industries, we're taking extremely seriously. We have our own internal initiatives, as well as several external initiatives. So you're going to be hearing a lot more about our own self regulatory issues in the next several months. >> Well, great point. That's the number one thing we hear is the regulatory issues are what scares people. Because they're out on a limb right now, innovating. >> Yeah. >> They don't want the regulatory regimes and or pressures and signaling stunt the growth of the market. >> Yeah, you know I heard something yesterday that really rung a bell for me. It says, we can accomplish the same thing in the KYCAML does, but just in a different way. In fact, we can use technology to make it easier and more transparent and provide that back to the government officials to keep the bad actors out where needed. And so we're all about that, and we're all about working through a transparent system with full AML. >> So are you guys going to do a lot, you guys in the conference business now? >> Well, you know, I think by mistake we are. We're looking to Tokyo, early October. We'll do a BlockChain Unbound in Tokyo. Very exciting, we've got a great presence in Japan with our local partners, Global Fintech Advisors. They placed a billion six and ICO's in the asian market over the last two an a half years. And so they're very plugged, and they're excited to bring BlockChain Unbound to Tokyo. >> Final question for you. BlockChain Industries, take a minute to explain what you do. What you guys do, obviously you have another business. The conference thing just kind of fell in your lap, lightning in a bottle, congratulations. But, good compliment. What is BlockChain Industries do? >> Thank you. We are a diversified financial holding company. And we invest across the ecosystem BlockChain companies. And that includes, you know, attempted developed crypto bank forming long term mining operations. We do ICO consulting. We invest our own capital in certain deals. And we also have a median education component that really is the brand building globally for us. Because without the education piece, it's very difficult for people to kind of get caught up to speed 'cause there's some technical things you need to understand to really apply this technology into the business world. >> So are people investing in your fund, your company? Is that how it works? >> Yeah, we offer a public vehicle to allow investors access to the private virtual currency markets. In a nutshell, that's what we do. >> It's early days, final observation. What did you learn this week that is going to change your world? >> I learned that average business people and senior business people who have typically been shut off to the idea of BlockChain are now seeing this as very real and here to stay. And I mean, across the board, really technical and sophisticated people across the board, plus even normal citizens. They're hearing about, they're seeing it. It's hear to stay. And the momentum is just beginning. >> And it's a social movement, I agree. Congratulations, you guys did a great job. I know, you know, only a couple weeks to prepare. You pulled it off, congratulations. >> Thanks Boomer, appreciate that man. Good stuff. >> These guys could go all the way. Watch BlockChain Industries of course. BlockChain Unbound is the event. It's The Cube, exclusive coverage here in Puerto Rico. I'm John Furrier. Back with more after the short break. (upbeat music)

Live from San Juan, Puerto Rico. It's the Cube. Covering Blockchain Unbound. Brought to you by, Blockchain Industries. >> Welcome back everyone. This is the Cube's exclusive coverage in Puerto Rico. I'm John Furrier, the co-host of the Cube, co-founder of SiliconANGLE Media. In Puerto Rico for Blockchain Unbound, this is a global conference. Going to the next level in industry migration up and growth, and blockchain, decentralized internet and obviously cryptocurrency, changing the world up and down the stack. I have an industry veteran here. My next guest Salim is founding CEO, Singularity University and author of the best-selling book, Exponential Organizations. He's seen many waves, friend, known him for years. Haven't seen you in a while, you look great. You haven't changed. >> (laughs) The hair has changed a lot. >> (laughs) I've still got mine. Hey great to see you. Bumping into you in Puerto Rico is really compelling because you have a nose for the future, and I've always respected that about you. You have the ability to understand at the root level what's going on but also pull back and see the big picture. Puerto Rico is the center of all the action because the killer wrap in this is money. So money is driving a lot of change, but there's some fundamental infrastructure, stack upgrades going on. Blockchain has been highly discussed, crypto is highly hyped, ICO's are-- Scammers out there but now some legits. What's your take? What's your view right now on the current situation? >> Well I think what's happening with a place like Puerto Rico is. When you get kind of wiped out of the old, you have the chance to leap-frog. When you think about any of our traditional environments, laying down Blockchain technologies, et cetera. It's really, really hard because you have to get the Supreme Court, the Constitution to approve blockchain based land titles, and then you build a stack there from a legal perspective. Here they can basically start from scratch and do it completely from the ground up. Which is what's exciting for everybody here. >> The top story that we've been reporting here is that Puerto Rico is rebooting. The hurricane obviously, I won't say a forcing function, but in general when you get wiped out, that is certainly an opportunity to rebuild. If there's any kind of silver lining in that. >> There's a long history of that. Japan got wiped out during World War II, so did Germany and they rebounded incredibly. We've seen that recently with Rwanda. We do a lot of work in Medillin, in Colombia, and that's just been one of the worst cities in the world, is now the most innovative city in the world. So this is the transition that we've seen a pattern for. >> One of the things I'm really excited about decentralization and blockchain is all the conversations have the same pattern. Efficiency is getting wired into things. So if you see slack in the system or inefficiencies, entrepreneurs are feeling the void. The entrepreneurial eye of the tiger goes that to that opportunity to reset, reduce steps, save time and make things easier. Classic value proposition in these new markets. You run a great university but also author of Exponential Organizations. A lot of people are scared, they're like, "Whoa, hold on. Slow down, this is bullshit, "we're not going to prove it." And then the other half saying, "No this is the future." So you have two competing forces colliding. You have the new guard saying, "We got to do this, this is the future." Old guard saying, "Blocks, Road blocks, blockers" You covered this in your book in a way, so how do you win, who wins? How do you create a win win? >> You can create a win win. What you have to do is leap-frog to the newest, fast as possible. The only question is, how can you get to the new? And the problem that you have is, as you rightly pointed out is. When you try disruptive innovation in any large organization or institution, the immune system attacks. I saw this at Yahoo running Brickhouse. Yahoo is supposedly a super advanced organization, and yet the minute you try to do something really radical, you spend all your time fighting the mother ship. So I've been focusing a lot of time the last few years focused on that particular problem, and we're pretty excited, we believe we've cracked it. >> How does someone crack that code? If I'm Puerto Rico, obviously the government officials are here at Blockchain Unbound. This is not just a tech conference. It's like a tech conference, investor conference, kind of world economic form rolled into one. >> Sure >> There's some serious players here. What's your advice to them? >> So what we do, and let me describe what we do in the private sector and what we do in the public sector. A couple of years ago, the global CI of Procter & Gamble came to me and said, "Hey, we'd like to work with you." And what we typically see is, some executive from a big company will come to Singularity. They'll go back headquarters with their hair on fire going, "Oh my god!" If they're from BMW for example. They go back going, "Drones, autonomous cars, hyperloop, VR." Back in Munich, they'll be given a white coat and some medicine and be put in a corner. "You're too crazy, now stand over there." And that's the tension that you are talking about. And then somebody else will come six months later then they'll do the Silicon Valley tour, then they'll have one of our people go over there, and it takes about three years for the big company to get up to speed, just the C-Suite to get up to speed. Forget transmitting that down. So I was talking to Linda Clement-Holmes and I said, "Look we're about to start this three year dance "I've been thinking about this, "let's shrink it to 10 weeks." So we designed what we now call an ExO Sprint. Which is how you get a leadership, culture and management thinking of a legacy organization, three years ahead in a 10 week process. And the way we do it is, we're in an opening workshop, that's really shock and awe. Freaks out all the incumbent management. And then young leaders and future lieutenants of the business do the thinking of what should come next. And they report back. Some thing about that opening workshop suppresses the immune system, and when the new ideas arrive they don't attack them in the same way. >> It's like a transplant if you will. >> It's like when you do a kidney transplant. You suppress the immune system, right? It's that same idea. So we've now run that like a dozen times. We just finished TD Ameritrade, HP, Visa, Black & Decker, et cetera. We're open-sourcing it. We're writing a manual on how to do it so that anybody can self-provision that process and run it. Because, every one of the Global 5000 has to go through that process with or without us. So then we said, "Okay, could we apply it to the public sector?" Where the existing policy is the immune system. You try and update transportation and you're fighting the taxis. Or education and you're fighting the teacher's unions. We have a 16 week process that we run in cities. We do it through a non-profit called the Fastrack Institute based out of Miami. We've run it four times in Medillin, in Colombia and we just finished four months with the mayor of Miami on the future of transportation. We're talking to the officials here about running a similar process here in Puerto Rico. >> Are they serious about that? Because they throw money at projects, it kind of sits on the vine, dies on the vine. Because there is an accelerated movement right now. I mean, exponential change is here. I'll give you an example. We're seeing and reporting that this digital nation trend is on fire. Suddenly everyone wants digital cities, IoT is out there. But now what cryptocurrency, the money being the killer app. It's flowing everywhere, out of Colombia, out of everywhere. Every country is moving money around with crypto it's easier, faster. So everyone is trying to be the crypto, ICO city. Saw it on Telegram today, France wants to be, Paris wants to be the ICO city. Puerto Rico, Bahrain, Armenia, Estonia. U.K. just signed a deal with Coinbase. What the hell is going on? How do you rationalize this and what do you see as a future of state here? >> Well I think, couple of thoughts. And you're hitting into some of the things I've been thinking about a lot recently. Number one is, that when you have a regulatory blockage, it's a huge economic developing opportunity for anybody that can leap-frog it. Nevada authorized autonomous cars early and now a lot of testing is done there. So the cities that have appreciated-- >> So you're saying regulatory is an opportunity to have a competitive advantage? >> Huge, because look at Zug in Switzerland. Nobody had ever heard of the place. You pass through there on the way to Zermatt. But now it's like a destination that everybody needs to get to because they were earlier. This is the traditional advantage of places like Hong Kong or Dubai or whatever. They're open and they're hungry. So we're going to see a lot of that going on. I think there's a bigger trend though, which is that we're seeing more and more action happen at the city level and very, very little happen at the national or global level. The world is moving too fast today for a big country to keep up. It's all going to happen this next century at the city level. >> Or smaller countries. >> Or small countries. >> So what's going on here at Blockchain Unbound for you? Why are you here? What are you doing? What's your story? >> I have this kind of sprint that we run in the private sector and in the public sector and then a community of about 200 consultants. And I have to pay 200 people in 40 countries and it's and unholy mess. Withholding taxes and concerns around money transfer costs-- >> It's a hassle. >> It's a nightmare. And so I've been thinking about an internal cryptocurrency just to pay our network. All of a sudden now, three or four countries have said, "Hey we want to buy that thing, "to have access to your network." So I've got all this demand over here, and I need to figure out how to design this thing properly. So I've been working with some of the folks like Brock and DNA and others to help think through it. But what I'm really excited about here is that, there's a-- You know what I love is the spectrum of dress. You got the radical, Burning Man, hippie guy, all the way to a three-piece suit. And that diversity is very, very rich and really, real creativity comes from it. This feels like the web in '96, '95. It's just starting, people know there's something really magical. They don't quite know what to do. >> Well what I'm impressed about is that there's no real bad vibe from either sets of groups. There's definitely some posturing, I've noticed some things. Obviously I'm wearing a jacket, so those guys aren't giving me hugs like they're giving Brock a hug. I get that, but the thing is, the coexistence is impressive. I'm not seeing any real mud-slinging, again I didn't like how Brock got handled with John Oliver. I thought that was unacceptable because he's done a lot of good work. I don't know him personally, I've never met him, but I like what he's doing, I like his message. His keynote here, at d10e, was awesome. Really the right messaging, I thought. That's something that I want to get behind and I think everyone should. But he just got trashed. Outside of that, welcoming culture. And they're like, "Hey if you don't like it, "just go somewhere else." They're not giving people a lot of shit for what they do. It's really accepting on all sides. >> Here's my take on the whole decentralization thing. We run the world today on a series of very top down hierarchical structures. The corporation, the military industrial complex, Judeo-Christian religions, et cetera. That are very hierarchical-- Designed for managing scarcity, right? We're moving the world very, very quickly to abundance. We now have an abundance of information, we'll soon have an abundance of energy, we'll soon have an abundance of money, et cetera. And when you do these new structures, you need very decentralized structures. Burning Man, the maker movement, the open-source movement, et cetera. It's a very nurturing, participatory, female type of archetype and we're moving very quickly to that. What we're seeing in the world today is the tension going from A to B. >> And also when you have that next level, you usually have entrepreneurs and sponsorships. People who sponsor entrepreneurs the promotion side of it, PR and that starts the industry. Then when it hits that level it's like, "Wow it's going to the next level." Then it gets capital markets to come in. Then you have new stake holders coming in now with government officials. This thing is just rocket-shipping big time. >> Yes >> And so, that's going to change the dynamics. Your thoughts and reaction to that dynamic. >> Completely, for example... When we do these public sprints we end up usually with a decentralized architecture that needs to built. For example, we're working with the justice system in Colombia. And the Supreme Court has asked us to come in and re-do the entire justice system. Now you think about all the court filings and court dates, and briefs, and papers all should be digitized and put on a blockchain type structure because it's all public filing. We have an opportunity to completely re-do that stack and then make that available to the rest of the world. I think that trend is irreversible for anything that previously had centered-- I mean, most government services are yes, ratifying this and ratifying that. They all disappear. >> Well Salim, I want to tap your brain for a second. Since you're here, get it out there, I want to throw a problem at you, quick real time riff with you. So one of the things that I've been thinking about is obviously look at what cloud computing did, no one saw Amazon web services early, except some of the insiders like us. Who saw it's easy to host and build a data center. "I have no money, I'm a start-up or whatever." You use AWS, EC2 and S3... They were misunderstood, now it's clear what they're doing. But that generated the DevOps movement. So question for you is, I want to riff with you on is, "Okay that created programmable infrastructure, "the notion of server-less now going mainstream." Meaning, I don't have to talk about the server, I need resource so I can just make software, make it happen. That's flipped around the old model, where it used to be the network would dictate to the applications what they could do. How is that DevOps ethos, certainly it's driven by open-source, get applied to this cryptocurrency? Because now you have blockchain, cryptocurrency, ICO is kind of an application if you will, capital market. How does that model get flipped? Is there a DevOps model, a blockchain ops model, where the decentralized apps are programming the blockchain? Because the plumbing is the moving chain right now. You got, Hashgraph's got traction, then you got Etherium, Lightning's just got 2.5 million dollars. I mean, anyone who's technical knows it's a moving train in the plumbing. But the business logic is pretty well-defined. I'm like, "I want to innovate this process. "I'm going to eliminate the efficiency." So this dynamic. Does the business model drive infrastructure? Does the plumbing drive the business model? Your thoughts on this new dynamic and how that plays out. >> I suspect you and in violent agreement here. It's always going to be lead by the business model because you need something to act as the power of pull to pull the thing along, right? The real reason for the success of Etherium right now is all the ICOs and it was a money driven thing. Today we're going to see these new stacks, now we're on version three of these new types of stacks coming along, and I think they're all looking for a business model. Once we find some new killer ops for this decentralized structure, then you'll see things happen. But the business model is where it's at. >> So basically I agree with you. I think we're on the same page here. But then advice would be to the entrepreneurs, don't fret about the infrastructure, just nail your business model because the switching cost might not be as high as you think. Where in the old days, when we grew up, you made a bad technical assess and you're out of business. So it's kind of flipped around. >> Yeah, just hearing about this term, atomic swaps. Where you can just, essentially once you have a tokenized structure, you can just move it to something else pretty quickly. Therefore, all the effort should be on that. I think finding the really compelling use cases for this world is going to be fascinating to see. >> So software-defined money, software-defined business, software defined society is coming. >> Yes >> Okay, software defined, that's the world Salim thanks for coming on, sharing your awesome expert opinon. Congratulations on your awesome book. How many countries is your book, Exponential Organizations-- >> It's now about a quarter of a million copies in 15 languages. >> Required reading in all MBA programs, and the C-Suite. Congratulations, it's like the TANEx Engineering that Mark Dandriso put out. A whole new paradigm of management is happening. Digital transformation. >> We now have the ability to scale an organization structure as fast as we can scale technology. >> Blockchain you know, the nature of the firm was all about having people in one spot. So centralized, you can manage stuff. Now with blockchain you have a decentralized organization. That's your new book, the Decentralized Organization. >> Although, I'm not sure I have another book in me. >> There's a book out there for somebody, Decentralized Organizations. Salim, thank you for joining us. The Cube here, I'm John Furrier the co-host. Day two coverage of Blockchain Unbound more coverage after this short break. (electronic music)

>> Announcer: Live from San Juan, Puerto Rico, it's The Cube covering Blockchain Unbound, brought to you by Blockchain Industries. (rhythmic salsa music) >> Hello, everyone, welcome back to our exclusive coverage here in Puerto Rico, Blockchain Unbound Global Conference where the leaders in the industry from entrepreneurs to investors and everything in between, from San Francisco to New York, Miami, South Africa, Russia, all over the world are here in Puerto Rico, The Cube's coverage. Our next guest is Naomi Brockwell who is hosting the event here on stage. She's emceeing it all. You go to her YouTube channels /naomibrockwell, check out her videos, hosts events all over the industry, Blockchain, celebrity, thought leader, futurist. What else are you? >> You're very, very kind. It's all not true, but I have been in the space for awhile and I love Blockchain text, so it's exciting to be here. >> I'm really impressed by your stamina and passion on stage. What a line up today, so give us the quick highlights What happened today, we were here filming. What happened inside the venue? We saw some great talks come through there. >> Yeah, we saw some great ones. A probably a highlight for me was seeing Alena. She was the former CEO of SatoshiLabs, which created Trezor, one of mt favorite hard wallets, by the way, and it was just great listening to her talk about security because that is something that is so important and people do not take seriously enough. I have people telling me, "Oh, Naomi, I started up this wallet, and I stood my public in the..." I was like, "So did you write down your private key and all that, it's in a safe place?" He's like "Yup, it's in my DropBox." I'm like, "No, what are you doing, this is not good!" Hearing her basically say anything that has touched the internet ever, any device that has been on the internet ever is not secure. Do not trust it, you need to use offline things. >> There's a lot of wallet grabbing going on digitally. >> Absolutely. >> That's come up. I saw some stuff on Telegram, people that we know, be like, "Hey, beware, a lot of hacking out there. "Got to watch your coins." >> And also, I mean there's just huge gains to be made, right, so it makes sense, especially we expect the price of Bitcoin to go up. You have hackers just targeting at specific wallets, and specific vulnerabilities, and they just keep going until they get through, so you've got to be vigilant and you got to take every precaution possible. Got to take it seriously. >> Is there a best practice that you observed? >> Absolutely. Don't store anything online. And another thing, people are telling me, "Yeah, you know, I have my private key written down." I'm like, "Great, you wrote it down twice?" They're like, "Yeah, I just printed that out twice." I'm like, "No, your printer stores an image "of everything you've ever printed out "and it's connected to wifi at all times. "That is going to be hacked. "Do not print out your private key, "your paper wallet, anything. "You've got to write this down." Paper and pen is the best practice you can use and-- >> Going old school analog, big time. >> Absolutely. And isn't that funny? You have this amazing new tech that's fantastic, cutting edge, and what are we doing to keep it safe? Pen and paper. >> Yeah, turn off all wifi, put on some vinyl records, eight-track recorder, going old school. Okay, I got to get-- >> But holding your own coins, holding your own money, having control of your own money, no one said that's the easiest practice. They just said it was the most secure and is going to give you the most power over your funds, and so if you want to do that, there's a price to pay and that is being vigilant about your security. >> One of the things about that I'm interested in talking to you about is being someone who's present at creation of a big movement like this. You've seen the evolution. What's the growing pains in the industry 'cause we're seeing a lot of people who are the pioneers, now that people, I won't call them tourists because they're still young and emerging, but you have a lot of get-rich-quick schemes. Those are obviously being filtered out pretty quickly by the community, but you're seeing new entrants come in. You have financing, got big numbers coming in, big money. How has it evolved, I mean, what's your observation? How is it maturing? What's some of the vibe? You've got some factions over here, you've got some factions over there. People are still getting along. What's the overall sentiment? >> I've been in this space for about five years, so in this industry, it's like being an absolute veteran, and what you've seen is it started out as this very libertarian space. People were interested in taking their money out of the control of government and having more autonomy over their finds, having more control over their funds. Blockchain was invented as a tool for giving people more freedom, and what you're seeing now is a bunch of people who entered the space who don't necessarily share that ethos, but what I love about Blockchain is that they're taking this technology that is inherently taking people towards a more decentralized free society, and they're applying it to all different industries. So my point of view, it doesn't bother me at all that the new entrants don't necessarily share this passion for freedom that the people who've been here since the beginning have, but the fact that they are taking this and making the world a more free place regardless is really exciting to me. >> And that's the real opportunity 'cause inherently the ethos is Blockchain, so it's not so much a political orientation or this or that. It's how you apply it. >> Exactly, and so Blockchain, being a decentralized ledger is great because when you decentralize any power structure, no matter what industry it is, I mean, you're really making people more free, you're giving them more responsibility, and I like seeing things become decentralized. >> Certainly we're a media company, we're kind of a new car, we don't believe in a central gatekeeper, so I got to ask you the question. As a YouTuber who has a big fan base and in the community, it's really disheartening for me to see John Oliver take down Brock Pierce, although it was a hilarious video up until the point where he maliciously went after Brock in a very vicious way. How does one person have that power. I mean, it shouldn't be that way, or the New York Times or a certain publication that, they're the gatekeeper still. That was an example I looked at and said, "That's where Blockchain can disrupt the media." I mean, it's great comedy, but it kind of went over the top. >> For me, I mean-- >> He got fired by the Eagles project. They wiped his name off everything. I mean, that's just, I just see that as a problem. You, what's your thoughts? >> When you say how do these people get there, John Oliver is a funny guy. I see how he got there, he's very talented, he has a great team, great writing, but that section, I thought it was pretty spot on for most of the Bitcoin segment. It got to that section, I was like, "Oh, this is kind of sloppy research." so that was disappointing. I saw that Brendan Bloomer had a nice response that he posted. He's the head of EOS. >> What did he say? >> He was just very funny and playful with John, so that was nice to see. He set him straight in terms of saying like, "What does this technology enable?" He was basically arguing Blockchain doesn't go far enough. It doesn't fulfill the needs that I see in society so I created this other thing which does XYZ. He was authoritative in stating that, "no, you just don't understand the tech." He basically clarified the Brock situation and said, "No, actually having him involved was really great." He's not involved for various reasons. Yeah, it was an interesting segment that the-- >> It was so funny after that one point. I'm like, "Oh, boy." >> I was enjoying it up til then. I was like, "Okay, this makes sense, you know. >> It's funny. >> And then it gets up to that and I'm like, "Okay, this just became an at home and I'm going to tag. This is a cheap throw, and people do that with Bitcoin. Since it's inception, you've seen people in media and mainstream media in particular target Bitcoin and they're just adopting the government narrative saying, "Oh, everyone in this industry is corrupt," or "Everyone in this industry is an ICO scammer," or "Everyone in this industry is a drug runner "and they're all selling drugs on the dark web." It's like, you know what, you can do some research and do a bit better than that, so to see John Oliver perpetuating those at-home and I'm going to attack was disappointing, but at the same time, we are seeing that narrative shift, and you're seeing more news outlets become more positive about Bitcoin. >> Also the data is the self-government and the community has the data. The truth is going to get out there. That's the purpose of Bitcoin, Blockchain, and Crypto. You've got consensus, you've got algorithms, you've got machine learning. Okay, cool. What are you up to? You've got an exciting couple things going on. You've got a lot going on, so take a quick minute to explain your big project. You've got some exciting, cool things, share it. >> Got some fun things going on at the moment. While I'm not emceeing 20 to 40 Blockchain conferences a year, which is exciting, but takes up a lot of my time, I am a television producer. I have my own show. It's Bitcoin, Blockchain-tech based. Then on top of that, I'm a film producer, television producer. We're working on a really exciting series right now. It's called The HardFork Series. It's this dystopian future, it's a sci-fi thriller. $18 million, or it's a large budget, and we have one of the guys from Ozark, on Netflix originally. If you haven't seen it, you should see it. It's a great show. Christopher James Baker is our lead and the community support we have garnered for this project is great because we have not only Hollywood types, our director is a Sundance alumni. We've also got people in the Crypto Space who have a huge amount of credibility. We've got Bruce Fenton, Jason King on our Board of Advisors. People who understand the space, so the community is excited about for the first time having a mainstream production that is being created with a large budget where people in the industry have control of the narrative. We haven't had control of the narrative yet. >> That's true. >> The government's still controlling it, mainstream media's still controlling it, and so to create a series that could potentially expose people to this technology for the first time and to have control of that narrative is exciting. >> Is it going to be inspirational, it going to be a comedy? >> It's going to be gritty, it's a sci-fi thriller. We call it a crypto-thriller noir. Is that not the best genre you've ever heard? It's pretty cool. It's this idea that in the future the government has their own Blockchain and there's Crypto Coins that they have. It's all centralized and they control the populous with this augmented reality where everything is gamified. Basically the idea is the government's trying to distract people from important issues, like gamifying everything. You have this group of renegades who comes in. They're like, "No, we're going to decentralize this." They come and work their magic. >> It's Mr. Robot meets Black Mirror. >> Oh, yeah, no, it's pretty great. >> Kind of thing goin' on? It basically is a tale about the power of decentralization and how it can disrupt all authoritarian role, which I think is just a great topic for right now. >> What's your background? Where are you, out of LA, New York? >> I'm based in New York. My background actually. >> How'd you get here? >> I was an opera singer. That's how I got here. I moved to New York as an opera singer and then pivoted into movie production, and from there went on to television production. I got into the Crypto Space because I'm really interested in Australian economics and love the philosophy that Bitcoin was created on. It's been an interesting journey. >> You got addicted. >> Yeah, now I kind of-- >> You went to the light. >> Yeah, I'm bringing everything together now with my Bitcoin, economics-based, Crypto-thriller noir, so it's pretty exciting. >> I'm super impressed. Congratulations on all your continued success. Great job emceeing the Blockchain Unbound. >> Thank you. >> Great energy, great mind, great to have you on The Cube. Thanks for sharing >> It's wonderful to be here. >> your story. Thanks for everything. It's The Cube, I'm John Furrier here. Breaking down, we've got all the action in Puerto Rico. Thought leaders, entrepreneurs, investors, people in the industry sharing their story. Sharing the data with you, that's our mission. Thanks for watching. Day two tomorrow, we'll see you then. (engaging tones)

>> Announcer: Live from San Juan, Puerto Rico, it's theCUBE. Covering Blockchain Unbound, brought to you by Blockchain Industries. (upbeat samba music) >> Hey, everyone. Welcome back to our exclusive coverage in Puerto Rico for Blockchain Unbound Global Conference, where everyone from around the world is coming here. And the Blockchain cryptocurrency, a decentralized application market, changing the game, the future of work, future of government, the future of the world happening. The biggest wave in the tech generation we've seen in centuries. And I'm here in Puerto Rico at the Vanderbilt Hotel. Our next guest, Anthony Delgado, the CEO of Disrupt. We're got some real innovative projects around bringing his work and his vision to Puerto Rico. Anthony, thanks for spending the time. >> Thank you for having me. >> So, talk about your project. Tell me a bit about your project. For instance, you learn how to code. What's goin' on with that? You're doing it in New Jersey, in Newark schools there. Just take me in to explain what you're working on. >> Absolutely. So, back in January, I met a gentleman. His name was David, and he's from Puerto Rico, and he's lived in Puerto Rico for the last eight years, and he runs a tourism company. And when the hurricane happened, his for-profit company transformed into a non-profit. And the same trucks that he used to do tours, he start doing humanitarian work. And I met him at an app release party for a client of mine, and he looked me in my face and says, "Anthony, I'm doing to best work of my life." And I was like, "oh my God! "I'm not doing the best work of my life!" And so, we go to a diner, and I had the worst tuna fish sandwich that I've ever had in my life, but the best conversation. And we start brainstorming about how can we transform and help the people of Puerto Rico? So, the first problem is energy. Close to 50 percent of the island still does not have energy. In the capital, in the beautiful place we are now, power has been restored, but there are many cities that are still forgotten. So, me as the tech guy, I'm like, hey, we can do solar panels. Like, there's tons of sunshine in Puerto Rico, right? So, solar energy. And then the next thing he brought to my attention was that the entire economy is actually based on tourism. So, now, with the hurricane and all those things that are in the media, not only did people lose their jobs, ah, not only did people lose their homes, but they lost their job as well. So, we start brainstorming. We're like, okay, well, let's create a coding school to teach the digital skills that are needed, to the people in Puerto Rico. So, we're goin' back and forth, and he said, "Okay, that's a great idea, "but how are these kids going to pay for this school?" So, the concept that we've come up with is to combine education with vacation, and basically encourage people who are paying to go to school in New York City and encourage them to come to Puerto Rico, experience this beautiful island, learn how to code in the a.m. and have an amazing vacation in the p.m. And that's what we're building. So, we're building the Caribbean Institute of Technology, where we combine education with a vacation. >> So, Institute of Technology. We were talking before we came on camera that you were at the Institute of Technology, a school my two brothers went to. Great engineering school, renowned for it's program. You're doing work there there as well, so you're taking your mission of what you're doing there in New Jersey and bringing it to Puerto Rico. Sounds like you were really impacted by that conversation. As you're here in Puerto Rico, what's your assessment? Good call? Are you happy, and what's on your to-do list as you're down here? So, it's beautiful. I mean, I was here two weeks ago, and now I'm back for this global currency conference. I really feel like there's an unlimited amount of opportunity here in the island. It's the strongest internet, there's huge tax incentives if you start a new business here, and it's really a blank canvas. You know, the hurricane was a horrible atrocity that happened, but now we have this blank canvas to create a vision for Puerto Rico. So, we created a foundation. It's called Vision for PR. And the question that we're asking ourselves is: What would we do if we were creating a new city in America today? What would it look like? It would have solar energy. The power lines would be below ground instead of above ground, right? You know, the economy would be based on the digital economy and not tourism, right? So, we look at countries like Bali, we look at countries like India. We look at countries where they have this huge influx of currency that's getting generated from overseas. So, we really want to be part of the driving force that has Puerto Rico being the Hong Kong of the Caribbean. >> And it really is a clean sheet of paper, because certainly the hurricane puts a real awakening to the needs here. And now that you look at the infrastructure and how it needs to be revamped, this is an opportunity to lay down some fat pipes, high-speed internet, loop Blockchain, the Blockchain.edu chain project that they've got goin' on, http://educhain.io is interesting. The young people, they want more. I mean, that's my vibe here, I'd sense. Yet the old guard, they're scared. They want to preserve their culture, yet there's this huge incentive to move beyond tourism. This is an opportunity for Puerto Rico to be sovereign nation at a level that could go significantly higher-level than they are now. So, that's all great. What do you do? I mean, it seems like Brock Pierce is laying down his vision: come here, bring your cash, bring your community, do good. How is the playbook evolving? Because that's a question people want to know How do I come to Puerto Rico, do it right, not offend the culture, enable them, come together? What's your experience with the playbook? >> Absolutely. So, you know, technology and access to the internet, it democratizes the world. You know, now you're on a level playing field. If you have four G connectivity, and you're on an island, you can compete globally and be a part of the global economy. So, really the opportunity here - [Interviewer] Are you going to start a company here? >> Yeah, so we are starting the Caribbean Institute here in Puerto Rico. And um, yes, so we had this-- >> As a separate corporation? >> Separate corporation. So, we have a non-profit that runs in New Jersey called Newark Kids Code, where we teach kids to code, and we really want to take that model and teach people to code here in Puerto Rico as well. So we started a corporation, it's the Caribbean Institute of Technology-- [Interviewer] Is it going to be a virtual school? Is it going to put up a facility? >> No, no, it's in person. It's in person, so, we have the architect right now working on the renderings. I'd love to share those with you as well. >> Well, certainly, we'll publish them on our blog. But so you're going to put an actual location here. So this is your notion of having people take a vacation and work here. >> Yeah, so that's all well and good, but, like you mentioned, how does that help the people from Puerto Rico? So, what we've created is a scholarship program. So, for every single person from the United States or overseas that comes here to take our coding school, we sponsor someone from the island. >> It's like a fellowship. >> Yes. (Interviewer laughs) >> Alright, so what else are you working on? I see Disrupt is your company. Tell us a bit about you and what you do, and what's goin' on with Disrupt. >> Absolutely! So, Disrupt is a media agency based in New York City. And we focus on creating innovative products that change the world. So, we work with clients who have innovative products that are making a big impact. One of the products that we're working on is called True Connect. It's AI for sales people. And basically it syncs with your Google calendar and it gives you recommendations on ways to connect with your clients. So, it gives you a news feed of news stories, but it's not stories that you're personally interested in, it's stories that your clients would be interested in, so you have topics of conversation. >> It's kind of like a reversed Linked In. >> Yes. (Interviewer laughs) A reversed Linked In, absolutely. >> You also do some really important projects that matter to peoples' lives. Talk about the project that you're working on for the autism kids, that's really interesting. Take a moment to explain that. >> Absolutely. So, another one of our clients is Debbie Stone. She has a non-profit called Pop Earth. And it's basically a free school for kids with autism. So, based on that she's starting a IOT company called the Popu Lace. It's an IOT device, it's about the size of a quarter, and it has GPS, 4G connectivity, and it hooks into a student's shoelaces. There's a huge problem with kids with autism, if they wander off from school, they can get hit by a car, and they don't have the communication skills to get found again. So this device puts a geofence around their school-- >> Alzheimer's, there's a zillion use cases. So, geofencing a location, like Snapchat ads they do, but this is for a good reason, safety and impact to people's lives. >> Absolutely. >> Caregivers, too, they matter. >> Yeah, caregivers, people who go mountain climbing, hiking, all of these other use cases. Primarily focusing on children during the beginning, but yes, Alzeimer's, and hikers, and tons of uses for this. >> Great stuff. Congratulations, Anthony, great to have this conversation with you, really inspired. Good luck with the Puerto Rico opportunity, the Caribbean Institute of Technologies. Will it be on the Caribbean, Bahamas? We were just there for Poly Con. Other islands, start at Puerto Rico... >> Absolutely. So, we're actually open-sourcing the floor plan for the building that we're building. So, the building that we're building has solar energy. It's a green building. And we're open-sourcing that floor plan so that anyone in the Caribbeans, South America, anywhere in the world can adopt this model. >> It's the wee work for paying it forward. >> Absolutely. >> Well done, Anthony. Anthony Delgado, CEO of Disrupt, doing amazing work here, paying it forward, contributing here with the Caribbean Institute of Technology. I'm John Ferrier, in Puerto Rico for our on-the ground coverage of Blockchain Unbound. Be back with more. Thanks for watching. >> Thank you for having me.