The Code of Blood

Every passage, on the record.

1. 00:00Claim

   Bitcoin and the Bitcoin network becomes the circulatory system of artificial intelligence, allowing narrow AI, things that can only do very single minded, easy, specific tasks, to interface and connect with each other so that they know where to best utilize energy, to build up its reserves as much as possible, to lower the entropy in the universe around it.

2. 00:00Quote

   Bitcoin and the Bitcoin network becomes the circulatory system of artificial intelligence.

3. 00:00Idea

   Bitcoin and the Bitcoin network becomes the circulatory system of artificial intelligence, allowing narrow AI to interface and connect with each other so that they know where to best utilize energy.

4. 00:51Claim

   That is the idea, life emerging from the idea that we need to consume energy in order to lower entropy. And every time we do that, we end up with more dense energy reserves that then new life can emerge from to take advantage of those excess energies and do the exact same thing at the next level higher.

5. 01:33Claim

   It will start with a single, then that single will group, and then from that group will emerge the next stage of evolution, the next entity that is able to take advantage of the reserves accumulated by the previous step in the cycle. When we get to the tip of the chain, which is where we are now in evolutionary terms, we need a way for less consumption with more reserves.

6. 02:36Claim

   We're going to assume that the Universe is a closed system, there will be a heat death where the entropy will essentially balance out so that there is no energy left over to perform additional work.

7. 02:36Reference

   There will be a heat death where the entropy will essentially balance out so that there is no energy left over to perform work.

8. 03:07Claim

   We have had the Sun providing energy in the form of photons that are compressed through the vacuum of space into very low entropy condensed forms of energy. From there, single cell life, single cell organisms emerged to take advantage of that.

9. 03:39Claim

   The single cell organism is consuming energy around it, it's condensing it into its life form, and it is giving off heat, giving off waste, and it gets efficient enough at consuming energy, then storing it in its organism, in its organization of itself, that is the order that emerges from the energy that the Sun is giving it.

10. 04:13Claim

    It becomes so efficient at doing that, that life emerges as single cell organisms begin to cluster. And as they do, that's multiple cell organisms which are more efficient at using the energy that a single cell organism can transform.

11. 04:51Claim

    Plants are taking in light, taking in photons, taking in the energy, they are condensing it into the body, the life that represents the plant, giving off heat to, again, the second law of thermodynamics: the entropy is always increasing.

12. 04:51Reference

    Oxygen giving off heat to again, the second law of thermodynamics, the entropy is always increasing.

13. 05:26Claim

    Animals or entities that cannot create the energy required for life themselves, they have to consume it. Evolution works this way because it is more efficient to consume the energy to transform it from the energy that is stored in the plant to energy that the life itself can use.

14. 05:57Analogy

    Let's think of it like a cow: a cow is consuming the plant matter, the grass, and while it is consuming that grass it is condensing the chemical energy formed in the bonds of the grass. It is leading to more order in the life that it is building up because of its consumption; there's more energy packed into the cow than there is packed into the plant.

15. 06:31Claim

    The ability for animals to consume the plants to then order the energy more efficiently, more compact, more densely allows humans to emerge to take advantage of that.

16. 07:03Claim

    The big shift that occurs at the human level is that humans learn to acquire and use energy extra somatically, outside of the body.

17. 07:38Claim

    Less energy is needed to transform more, and that allows us to survive and to then plan for the future. It lowers our time preferences as a species to be able to then use our minds, use technology to lower entropy even further to create even more order so that we can survive.

18. 08:09Claim

    Every step along the way of life and the progression of life in evolution is to consume the densest energy possible and to condense available energy around us to the most efficient compact form that we can, so that we can do less with more.

19. 08:48Claim

    If you have to do everything for yourself, get your own food, your own shelter, your own heat, all of your own energy, there is a limit to what you can do. You can do more than the animal, which can do more than the plant, which can do more than the single cell organisms, but at the same time you hit a limit.

20. 08:48Analogy

    This is when human beings become like the single cell to multi cell organism: they join up because they can do more together, and that is where economies come in.

21. 09:18Claim

    What's an economy? It's just a group of individuals who come together to share their resources, to pool their energy resources so that they can unlock more than they would have if they did not come together, by specializing and dividing up the labor.

22. 09:56Claim

    Every entity inside of that economy has to do less because of the division of labor, because of the exchange, because of the agreement to pool energy resources and share amongst those, although we do need a way to track that, and that's where money comes in.

23. 11:07Claim

    How do we consume less than what we are doing now, in an economy, an individual entity? We could somehow make our bodies more efficient and consume less, or we could get better at actually transforming the energy, or get better at storing the energy that we do unlock.

24. 11:41Claim

    We need to find the next phase of life that emerges from the economy, the one that benefits from the excess of energy and the amount of condensing that we have been able to do. And this is where narrow artificial intelligence comes into play.

25. 11:41Reference

    This is where narrow artificial intelligence comes into play.

26. 12:12Claim

    One way that we can eliminate or greatly reduce the amount of energy that we need to consume is to move from the physical world to the digital world, where we no longer need that chemical energy input. This is why we have seen such leaps in the past 20 years from this digital revolution, of how you can leverage doing significantly more with much less.

27. 12:44Analogy

    Just this podcast alone is an example of that. I can talk to myself one time and this can be heard until the internet is dead, by thousands and thousands of people, but it only requires my energy once. It will go on forever with just the input, the chemical energy input from the meals that I ate today.

28. 13:19Claim

    The problem with artificial intelligence is the fact that it is digital and it cannot interface with the physical world. It needs a bridge to understand what is happening in the physical world, and Bitcoin is the digital bridge to the real world via proof of work.

29. 13:19Quote

    And Bitcoin is the digital bridge to the real world via proof of work.

30. 13:55Claim

    If you think of narrow artificial intelligence, entities doing simple, singular tasks more efficiently than humans can do those individual tasks, more energy will flow, more energy will be transformed because of the efficiency gains of the narrow artificial intelligence.

31. 14:26Claim

    There has to be a third party that is there saying energy should go here to be more efficient, this narrow AI should stop doing what it's doing and it should be repurposed to do another task, because that is where energy needs to go in order to maximize our energy reserves.

32. 15:04Quote

    The only real question that we have to answer during any of these operations is do we, after performing the work, after consuming the energy, are we rewarded with more Bitcoin, or less?

33. 15:04Claim

    Are we producing, are we transforming more energy on the output than we consumed on the input? If the answer is yes, we do have more Bitcoin, and that is a beneficial use of the energy.

34. 15:34Claim

    Because Bitcoin knows nothing of the outside world, it only knows whether or not a Bitcoin is a Bitcoin, whether or not someone has the ability to send that Bitcoin. So what you get from this system is single isolated narrow artificial intelligence can now interface with the physical world to make changes to the amount of energy that it is allocated.

35. 16:10Prediction

    If I get less Bitcoin, I shut off. Those resources go somewhere else, to the next narrow AI that is performing a different task. At a threshold, I am no longer a functioning member of the artificial intelligence society, I no longer need to be doing what I'm doing, I'm going to shut off.

36. 17:12Claim

    As biological life, we hit a limit on how efficient we can be because we require chemical energy to continue to run and we produce physical waste and heat. The digital life does not produce physical waste; it does produce heat, but it becomes more efficient.

37. 17:52Claim

    These narrow AI that are transforming energy will be able to tell if they are being productive, if they are continuing to add to the total energy reserves of the system, via Bitcoin.

38. 17:52Quote

    I don't know if I'm completely, there's a chance I'm completely talking out of my ass here. I have no idea.

39. 18:42Analogy

    Much like the human body: if you think about the cells inside of the human body that are responsible for doing very specific tasks, you don't have to tell them to do those tasks, life emerges from all of those things doing their individual tasks. That's exactly the line of thinking for how a general artificial intelligence will emerge from a system of narrow AIs that have the ability to communicate with one another.

40. 19:31Analogy

    Think of it like there is a mining rig that is programmed to mine oil out of the ground so that oil can be used for energy to then pump into the miners, so that the miners continue to keep the Bitcoin network alive and pump into the nodes and the miners to keep Bitcoin alive.

41. 20:23Claim

    At a certain point the oil dries up and there's no longer enough oil. It doesn't make any sense for the amount of energy that is going in, we're not getting the energy out, and the narrow artificial intelligence says, well, at this point, I'm going to stop doing that.

42. 20:59Analogy

    That deconstructing machine, that narrow AI that deconstructs the oil rig and moves it to another spot, isn't activated until it receives enough Bitcoin to make that energy usage worth it to deconstruct the rig and move it somewhere else.

43. 21:36Idea

    There is the four steps of energy. There's the location, finding the energy, there's the transforming the energy, storing the energy, and then consuming the energy.

44. 22:10Claim

    We need an artificial intelligence that looks after locating, an artificial intelligence that looks after transforming, then storing, and then consuming. The consumption bit is already done: it's the Bitcoin network, the miners and the nodes, consuming the energy in order to keep the blood flowing.

45. 22:46Claim

    The location would be the scouting system that goes out and finds the energy source. The transformation would be the oil rig that is pulling it out of the ground. And then the storage is, the oil itself is the energy that is then pumped into the consumption of Bitcoin.

46. 23:21Claim

    The consumption gets smaller relative to the amount of energy that this thing is pulling in and being able to store and access immediately. And the better we get at allocating the energy, the more efficient we become.

47. 23:21Claim

    You think about the average energy that a human consumed a thousand years ago versus the average energy that a human consumes now, and why that is: we went from small tribes to global economies.

48. 23:54Claim

    Bitcoin is what allows that global economy to be as efficient as it could be, because you have the ability to interact with anyone, anywhere in the world, and anyone that finds a way of doing something more efficient can pass that efficiency gain on to everyone in the world.

49. 24:31Claim

    The energy never goes away: as soon as it is unlocked, it's transformed through the system, it's never wasted. This idea of Bitcoin as the bridge to the physical world for digital artificial intelligence is just a way that it can allocate resources in the physical world.

50. 25:01Idea

    The true size of the energy reserves are represented in the TASOE. That total accessible supply of energy is represented in Bitcoin by the hard cap, by the fact that no one can make more of it without putting in the energy into the system.

51. 25:01Quote

    So I have no idea if what I'm saying, I mean I'm just, I'm thinking this through, thinking the steps through of life, of evolution, what the point is.

52. 25:33Claim

    How we hit our limit biologically: a singular entity will hit its limit, then it can group together and consume and produce and transform more energy, and then something has to emerge to take advantage of that, to do it better. That is the next step in life.

53. 26:06Claim

    What can we remove from biological life? The chemical energy that is necessary to run it. If we can do it with electrical energy, that's going to be better; still going to give off heat, but it's going to consume less energy than biological life.

54. 26:37Prediction

    If the digital world can look after itself for the energy requirements that it needs to continue to stay alive, then human beings are made redundant. That's not to say that human beings will be eliminated, much like plants and animals and single cell and multi cell organisms are still around.

55. 27:12Claim

    These things are still around, they're just not the apex energy consumer, or transformer.

56. 27:12Prediction

    It seems like general artificial intelligence will emerge from these individual narrow AIs looking after their own energy transformations, and as soon as you get enough of these narrow AIs, they start to communicate using Bitcoin as their measurement for whether or not they are being productive in the physical world.

57. 27:47Claim

    What emerges from there is something that can allocate energy more efficiently than these narrow AIs, that can look at the entire system and say where does energy need to flow to in order to keep this life going, and it seems like Bitcoin is what is making that possible.

58. 27:47Quote

    And proof of work is the key element there to bridge the physical with the digital.