Latest / TFTC: A Bitcoin Podcast / #801: Proving What's Real In The Age Of AI with Bryan Jacoutot
Transcript
- 0:00You've had a dynamic where money has become freer than free.
- 0:10When you talk about a Fed just gone nuts, all the central banks going nuts.
- 0:16So it's all acting like safe haven.
- 0:18I believe that in a world where central bankers are tripping over themselves to devalue their
- 0:23currency, Bitcoin wins. In the world of fiat currencies, Bitcoin is the victor.
- 0:28I mean, that's part of the bull case for Bitcoin.
- 0:31If you're not paying attention, you probably should be.
- 0:37Brian Jacatel, welcome to the show, sir.
- 0:39Thank you very much for having me, Marty.
- 0:41I've been a longtime listener, first time joiner of the show, so I really appreciate you having me on.
- 0:46Well, I appreciate you coming on and appreciate the work that you're doing behind the scenes.
- 0:51As I was describing or explaining before we hit record here,
- 0:55you're working at the intersection of one of my favorite niche topics within Bitcoin, which is
- 1:01using the blockchain, the time chain, Bitcoin's timekeeping aspects to prove that certain
- 1:10digital artifacts existed at a certain point in time in a certain state. And so I think that's
- 1:20we're going to cover today so if you're interested to learn about how bitcoin can help prove that
- 1:25things existed at a certain point in time particularly as we barrel into the future of ai
- 1:31si whatever we're calling it these days i think you definitely want to stick around for this
- 1:37conversation but before we get into the comment that yourself and raphael cordon um sort of put
- 1:44into the united states court system just a little background how'd you become passionate about
- 1:50this and what was the aha moment for you well i've been in bitcoin for a while um it's probably been
- 1:56we're getting close to 10 years now i think i i jumped in right around the very top of that bull
- 2:01market in 2017 and learned some hard lessons uh along the way i also started much more kind of
- 2:08distributed in terms of what my interests were in the space it was more crypto and i got i think i
- 2:13got in on the basis of ethereum actually because as a lawyer um you know the smart contract i
- 2:18I remember the smart contracts were like a huge thing back then. And so that was just my natural kind of entry point.
- 2:26But I started trying to incorporate into my practice as well, because I do general commercial litigation, but I wanted to focus more in that blockchain space.
- 2:35And so when I started going down the rabbit hole, so to speak, and really trying to learn how the technology works from a first principles basis,
- 2:43so I could explain it to my colleagues and get them to join me in this great revolution and everything.
- 2:47I realized that, you know, Bitcoin was different, that it wasn't just kind of the MySpace to everyone else's Facebook and now Instagram and all that TikTok, that there were foundational things that set it apart, including the fair launch, trying to do that, that very careful balancing of incentives and disincentives for updating Bitcoin's blockchain.
- 3:14truthfully with a group of people who have no real connection to one another. And I realized
- 3:20that that didn't necessarily scale into everything the way a lot of the other crypto space was trying
- 3:25to kind of push it. So I then just kind of went straight into Bitcoin and essentially tried to
- 3:32fold that into my practice. And so for a few years, it was just that, right? It was just like
- 3:38looking for Bitcoin clients, you know, stacking sats, all that fun stuff. And then I came across
- 3:43the video put out by Carlos's team about the Guatemalan elections and how they used
- 3:50Bitcoin to help kind of certify and verify the authenticity of those elections.
- 3:55And being a skeptic, as someone, again, who went into the blockchain space to revolutionize
- 4:00everything and then realizing there wasn't necessarily a whole lot of air there with
- 4:03a lot of those projects, I was very skeptical of what Simple Proof was saying.
- 4:07So I looked into it, though, and Carlos was gracious enough to disabuse me of my original
- 4:11skepticism.
- 4:12And he was one of those things that's great is, you know, I think Bitcoiners get a especially Bitcoin maximalists get a reputation for being very toxic and, you know, not evil, not approachable.
- 4:24And Carlos was very much the opposite. And so I learned a little bit more about what he was doing.
- 4:28And then I asked him, you know, hey, can I can I help? How can we work together?
- 4:31And so we started working about ways to essentially introduce introduced his tech and what he's working on into the American election systems, into American companies and things like that.
- 4:40And so that's what we've been doing. And of late, we've we've focused, too, on the litigation side of things in the courtroom side of things, because we realize that there's great potential for this technology there.
- 4:52As as artificial intelligence kind of gets more ubiquitous and deep fakes get a lot better.
- 4:58We realize that there's there's some there's some use case here.
- 5:02And I don't want to go too much into it because I know we're going to talk about it as we go.
- 5:04So but yeah so that how I got connected with this project And now we just trying to incorporate into all these different areas where we realize that finding the digital truth is really really important And it getting more and more difficult to ascertain or to discern for the average Joe So yeah that how it all started
- 5:23Yeah, I think taking a step back, and Carlos has been on the show a couple of times now,
- 5:28this point has explained how Simple Proof and the Open Timestamps protocol works. But for
- 5:35those who are listening now who may not have heard those episodes, maybe that's a good place to start
- 5:40is leaning into what Simple Proof was able to do for the Guatemalan elections and then
- 5:45in Screvin County, Georgia during the 2024 election cycle. Let's just hone in on those
- 5:52use cases and explain how things are working on the back end technically with Bitcoin.
- 5:59Yeah, and I'll always definitely defer to Carlos and his team on the super technical side of
- 6:03things. I'm obviously on the more legal side and the practical application side. But in serving that
- 6:08role, I've got to understand the technology at a basic level. And so essentially, it is an offering
- 6:16that's built on top of Peter Todd's Open Timestamps Protocol, which is something that I think was
- 6:21introduced, I want to say around 2016. Might have been even a little earlier than that. But it
- 6:26basically allows you to append to any Bitcoin transaction, any sort of arbitrary digital data
- 6:33in the form of a hash. So the same way that SHA-256 underpins Bitcoin's cryptography and
- 6:40blockchain, it also underpins this service offering as well. And when you send a Bitcoin transaction,
- 6:47you're sending a cryptographic transaction and putting that into a block. And then that block
- 6:53is getting a proof of work attached to it. And then another cryptographic nonce is attached on
- 6:58the end of that. And then you're linking your blocks through that protocol. And this just does
- 7:04the same thing. But instead of sending, you know, six Bitcoin to John on December 3rd,
- 7:10it takes any sort of digital file and reduces it down to a cryptographic hexadecimal hash,
- 7:15which is something where I think we're pretty familiar with. They look a lot like a Bitcoin
- 7:18address. And that serves as basically a timestamp of that digital file that it existed in a certain
- 7:27way at that point in time. So you've got kind of two things being verified here. You've got one
- 7:31that the digital file contains the contents that make that hash. And then two, that it occurred in
- 7:37block, you know, 900,000 or whatever. So you have a time aspect and you've got a content aspect.
- 7:42And what Carlos and his team did in Guatemala is essentially take the election records,
- 7:47you know, the physical election records, they get reduced down into digital form,
- 7:50and then they're passed along for reporting purposes and things like that.
- 7:53and they started hashing the digital version
- 7:57as soon as it was reduced from the physical version.
- 7:59So essentially, once you got it to a certain point,
- 8:01there's obviously elements of fraud
- 8:02that could happen prior to that reduction to digital form.
- 8:06But once it's hashed,
- 8:07that is now unalterable for all intents and purposes
- 8:10once it's hashed into Bitcoin's blockchain.
- 8:12So anything that happens after that point,
- 8:14you can be sure is the truth.
- 8:16And if you have any questions
- 8:17about whether someone altered it later,
- 8:19you can just go back and compare hashes.
- 8:21And so if there's been any alteration, then that hash will not match up.
- 8:26And so he did that with the Guatemalan elections, which I thought was very interesting.
- 8:31And so then he started working with Screbin County.
- 8:34And that's where a little bit I get a little bit more involved.
- 8:36I'm here in Atlanta, Georgia.
- 8:38And Screbin County, I think in 2024, did kind of a basic certainly at the end of the 2024 elections.
- 8:45They certified the election result, which gets posted to Facebook and social media and all that.
- 8:50they sign it, the election supervisor signs it, and that's it. But what they also did was they
- 8:56certified, they hashed and digital timestamped the election result as well, so putting it into
- 9:00the Bitcoin blockchain. So in 2024, this was probably less of a problem, although still in
- 9:062024, the gen AI is pretty good, even at that point. But once it's out into the internet,
- 9:14on social media, what have you, people can tamper with it. People can mess with it. People can make
- 9:18it look like you wrote something that you didn't write in or they can delete things that were in
- 9:23there. And so the idea was essentially that Stacey Scott, who's the election supervisor down there
- 9:29in Screven County, was able to, once she certified it and posted it, she was able to freeze it,
- 9:34freeze that digital information in time by creating a hash and putting it into Bitcoin's blockchain.
- 9:39And so she got essentially an extra layer of security for her certification that other counties
- 9:46don't have. Now, 2024 obviously went kind of, I think, very well, pretty smoothly in terms of the
- 9:54election processes, but it's not always going to be that way. And we're hitting another election
- 10:00in 2026 here in, I want to say it's about a month away, or actually early voting starts,
- 10:05I believe, tomorrow here in Georgia. So it's going to be a tight one again. The whole control
- 10:10of the Senate and the House is in the balance. A lot of governorships are in the balance. So
- 10:16We are going to be in tight tight tight territory And what we did here in Georgia to kind of build on what we did in Scriven County is in Georgia we allowed to do what called Dropbox surveillance for our mail Dropbox
- 10:30ballots so when you request an absentee ballot in Georgia you can fill it out mail it in or you can
- 10:36fill it out and bring it to your polling location and there's a little Dropbox kind of just out there
- 10:43and folks are able during voting hours just go in and drop it off and that kind of alleviates any
- 10:48potential problems with the United States Postal Service. And these drop boxes are required to be
- 10:53monitored 24-7, or at least when they're operational. So if you take them out, you put them behind a
- 10:59locked room, then you don't have to monitor them. But if they're operational, then they have to be
- 11:03monitored. And so it's either got to have a physical person there watching it, or you can use
- 11:07surveillance video. And a recent state election board rule says that you can live stream that
- 11:12surveillance video. I think that's a pretty decent rule, pretty well-intentioned rule in that you
- 11:17You want to increase transparency and auditability around the elections.
- 11:21You want to show your people, nothing's going on in front of these Dropboxes.
- 11:25We're going to live stream it, right?
- 11:26We're going to record it for you, and you can take a look yourself.
- 11:28The problem is now with the sophistication, increasing sophistication of generative AI, is that those Dropbox surveillance video recordings become a potential liability.
- 11:39and they may end up actually honestly kind of doing the thing that they don't want to do,
- 11:43what they're trying to prevent, in that folks can capture the live stream,
- 11:48run it through a Gen AI program to make it look like something nefarious is going on.
- 11:53Maybe it looks like there's ballot box stuffing going on.
- 11:57Maybe it looks like there's voter intimidation.
- 11:58You can have someone standing out there and you can literally put someone in there
- 12:02just kind of looking intimidating and it'll look pretty convincing.
- 12:07I mean, it's shocking how good these programs have gotten.
- 12:09And so, you know, what this guards against by what we did in Scrabins County is we take the video in real time and hash it into Bitcoin's blockchain using the simple proof method, using the open timestamps protocol.
- 12:22And so you have a definitive proof of what the video looked like at essentially like one or two seconds delayed from when it actually was captured, which is pretty nice because once these surveillance recordings are finalized and they're eventually subject to the Open Records Act here in Georgia, which means anyone can access them.
- 12:42And once you access them, you can give them to whoever you want.
- 12:44There's lots. There's a there's an organization right now that just makes them available for folks who want them.
- 12:50And again, I don't think anyone's doing anything wrong here, but the potential for someone to do something wrong is very apparent because then they can take that, alter it, make it look like something bad happened.
- 12:59And if you have a tight election, which we're probably going to have here in Georgia, you can really sow seeds of distrust, mistrust, and just generally have the population question what is otherwise a fair election.
- 13:12And it'll look really convincing.
- 13:14But what Screven County has, and unfortunately right now the rest of Georgia does not, is they have kind of presumptively valid evidence in the form of their timestamp of what the actual video looks like.
- 13:25So when someone comes in with an altered video, doesn't matter how convincing it is, if we hash that video file that they have, and that hash does not match the one that's in Bitcoin's blockchain at a certain block, then we know that that was altered after the fact.
- 13:38And so we can use this to allay people's fears almost immediately as to the veracity of the election results, as opposed to having essentially he said, she said about what the real video is.
- 13:51Grevin County or the state of Georgia saying one thing, manipulated video purveyor saying the other.
- 13:57And then we spend weeks or days or weeks or months litigating what's the real video, whether actually in court or just in court of public opinion.
- 14:04And all that time, we've sowed seeds of distrust in our elections.
- 14:08So for us, this is like really low hanging fruit.
- 14:11It's something that everybody can implement pretty cheaply and pretty quickly.
- 14:15And it provides this great barrier against people trying to show seeds of dissent and
- 14:20associates of questioning in our election results.
- 14:24Yeah.
- 14:24I mean, to your point, it's extremely simple proof.
- 14:28I mean, it's in the name.
- 14:29It's extremely simple, stupid, relatively cheap.
- 14:34But the implications are profound.
- 14:36The ability to, again, prove that something happened at a certain point in time or prove that something was in a certain state at a certain point in time, I think is wildly underappreciated right now.
- 14:49And again, specifically due to the nature of AI, generative AI video specifically, it's going to be impossible to discern real from fake AI videos.
- 15:04It already is getting that way.
- 15:06I mean, I makes AI videos.
- 15:09We do generative AI content here at TFTC.
- 15:12We have been doing it for over a year.
- 15:14And just the progress that the video models have made within 14 months is astonishing.
- 15:20If you project that forward, we're going to get to a point where you literally cannot discern.
- 15:24And so creating an environment particularly around critical functions like elections where you can have some semblance of truth anchored in the Bitcoin blockchain is extremely valuable Yeah absolutely And it you know it this energy and this computing power that
- 15:44you know, makes up Bitcoin's proof of work that's already all out there doing the great work of
- 15:48securing Bitcoin's transactions, why people are comfortable saving their life savings in it,
- 15:54you know, why they're comfortable saving their grandkids' inheritance in it. And so it's out
- 15:58there, you know, being used already, but we can piggyback on it. And, you know, I know we just had
- 16:05our recent kind of, you know, hard fork problem with the BIP-110 and kind of the fork that came
- 16:13out of that. I understand the, you know, the criticism of, you know, we're being careful about
- 16:19not polluting Bitcoin blocks with just arbitrary data. I think that there's a real genuine argument
- 16:24for that. And I'm in support of the general concept of not doing that. And that's why this
- 16:29protocol is great because we're not, you know, you could take any amount of data, it doesn't
- 16:34matter how large it is and reduce it to a, you know, 56 bit or 56 hexadecimal hash, 56 character
- 16:40hexadecimal hash, whatever it is. That's real low weight in terms of data. So you can just do that
- 16:45over and over and over again. And, you know, I think everyone would be, you know, of the opinion
- 16:50that we're not cluttering Bitcoin's blockchain with JPEGs and things like that.
- 16:55Yeah.
- 16:56So moving on to the letter or the comments that you, I guess,
- 17:01presented to the United States court system,
- 17:06moving from elections to just trials and cases
- 17:13in using Bitcoin as courtroom evidentiary standard as a standard
- 17:20to basically prove that evidence existed in a certain state at a particular point in time.
- 17:26Again, seems like another low-hanging fruit.
- 17:28You came out with a thread.
- 17:30You have comments, which I can pull up here.
- 17:33We're probably not going to read the whole thing, but Logan, we will.
- 17:37We're definitely not going to read the whole thing, but just a flash on the screen.
- 17:41That's as brief as I can get as a lawyer.
- 17:43We're worse than ChachiPT when it becomes being butlimous.
- 17:4511 pages of comments here, but basically saying, hey, in the world of AI, there's going to be a lot of problems in terms of people trying to fake evidence.
- 17:56And we should create the standard around hashing data, digital data into Bitcoin to prove that evidence existed in a certain state at a particular point in time.
- 18:05and you highlight some precedents of a few instances where this has happened already.
- 18:16And I think there was three cases, I believe, that you cited in the thread and in the letter as well.
- 18:23Frazier versus Southeast Georgia Health.
- 18:27Was that Mendones versus Cushman and Wakefield and one other,
- 18:33but basically a combination of AI generated video presented as evidence that proved to be fake.
- 18:39Somebody, I guess, in the early 2010s, manipulating the clock on their Windows system to manipulate metadata
- 18:55to make it seem like something existed earlier or later than it actually did.
- 18:58And the third is escaping me, but I think these three precedents and instances highlight why this is a valuable function and how would hashing this data using a simple proof-like tool change the way we operate within the court system, particularly around evidence.
- 19:20Yeah, so we – the rules of evidence are drafted on purpose to be a little bit broad.
- 19:27You don't want to draft a new rule every time a new piece of technology comes out because the rules take a long time to make.
- 19:34There's a lot of hoops you've got to go through, a lot of procedures and stuff.
- 19:37So you would be constantly playing catch up and never able to do so because the pace of technology changing is just dramatic.
- 19:44However, there are certain times when technology becomes kind of so persistent that you maybe do want to address it directly.
- 19:51I think the idea of a digital hash is one of those, particularly the use of a digital hash into a distributed blockchain like Bitcoin.
- 20:02And so what we're doing is essentially saying that in general, you can prove that a digital file existed using the basic rules of evidence.
- 20:13You can have these kind of burden-shifting framework where a proponent of the evidence says, this is my piece of digital evidence.
- 20:22Then the opponent says, no, no, no, that's been faked or that's fraudulent.
- 20:26And then you go through this whole kind of back and forth of trying to determine who was right.
- 20:31you just use your basic rules of evidence and your basic evidentiary burdens,
- 20:34you know,
- 20:35in civil court,
- 20:36it's going to be preponderance of the evidence,
- 20:38you know,
- 20:38more likely than not,
- 20:39um,
- 20:39that this evidence is real or fake.
- 20:42Um,
- 20:42there's a lot of,
- 20:43there's so much energy and resources that goes into that.
- 20:47And,
- 20:47you know,
- 20:48today I,
- 20:49I,
- 20:50litigate all the time. I very rarely use physical evidence in court, if ever. It's always some form
- 20:56of digital evidence. And so going forward, it's only going to be more and more voluminous in the
- 21:02amount of digital evidence you're having to deal with. And it's not just when you're physically in
- 21:06court. When you are doing the discovery process, if you've ever had the misfortune of being part
- 21:11of a lengthy litigation, you would know that the kind of most expensive and resource draining
- 21:19is typically the discovery process where everyone's exchanging information with each side to try to
- 21:25prove their claims. And so it's essentially all electronic now. There's very little physical
- 21:34evidence changing hands. People are just handing over zip drives and things like that or links to
- 21:40portals and then boom, you're off to go look at a million documents. So it's hard, number one,
- 21:47it's hard to discern which of those are real and which of those aren't.
- 21:50So it would be great to have a, you know,
- 21:51just being able to sort of presumptively say our business practice,
- 21:54let's say, as us timestamp,
- 21:57every contract that we enter into with a supplier,
- 21:59every time we sign into it, right?
- 22:01We do the docusign and then boom,
- 22:03we digitally timestamp our signed document into Bitcoin.
- 22:08That would be great to have to point to if you're in a business dispute
- 22:11and someone puts forward a contract that doesn't have a digital timestamp,
- 22:15right? You can immediately say, whoa, this is suspect.
- 22:18We're going to have to, number one, take a look at it.
- 22:19And if it looks like someone on the other side of this was messing with figures, messing with numbers, we have a great piece of evidence to now give to the court to allow the court to make a pretty quick decision as to whether this is authentic or not.
- 22:34But assuming we don't have that, the process is crazy expensive.
- 22:39For example, you go to Discovery.
- 22:43You change documents over.
- 22:46someone challenges one of the documents on the basis that it's been altered or is fraudulent.
- 22:50Then what will typically happen is you have to have a hearing before a judge.
- 22:54The judge will assess the challenge and say, all right, I'm going to need some briefs on the
- 23:00relevant state of the law surrounding this issue. So everyone goes back, writes their briefs,
- 23:03gives it to the judge. Judge considers them. Then judge says, okay, let's have some targeted
- 23:08discovery to see whether this other piece of discovery is authentic. So you got to go through
- 23:13a whole new set of targeted discovery. Then maybe you have to bring a couple of experts in to assess
- 23:18the viability of the evidence. Then maybe you have a hearing and you finally decide and you
- 23:24get to resolution at that point. What I just described is months and months of time. It is
- 23:29hundreds of thousands of dollars at times. Getting experts in, lawyers in, all that.
- 23:34They're charging hourly. They're charging hundreds of dollars an hour. It gets crazy
- 23:39expensive. And then, you know, after you have your resolution from the court,
- 23:42there's a possibility of appeal, right? Like someone could always appeal the judge's order.
- 23:45So then you go all the way up and you do that. As I said, it gets incredibly expensive. So
- 23:50if we have, on the other hand, if we have something like a digital timestamp
- 23:54associated with the contract or the piece of evidence, it's just part of the normal course
- 23:57of business of these operations, let's say, because everything has to kind of, this is all,
- 24:02none of this is post hoc, right? This is all pre-challenge or pre-issue. But if you have
- 24:09implemented this process in your business or whatever it is that you're doing, under our
- 24:15proposed rule, the courts will then be able to say, if someone presents a digital timestamp on
- 24:21Bitcoin saying, hey, look, here's our contract. Here's the hash of our contract. And then you look
- 24:28into block 900,000, you say, here's the hash of our contract when we signed it. And those hashes
- 24:33match up, then the court's able, under our proposed standard, to consider it a rebuttable
- 24:42presumption of authenticity, meaning basically the timestamp matching the document that we have here
- 24:49suggests that the document is what it was when they say it was. Now, it's a rebuttable presumption,
- 24:55right? So that means that the other side is still free to try to challenge it, but you may have just
- 25:00cut off an entire, you know, that whole thing I just explained, you may have just cut off 90%
- 25:04of that or 80% of that just because you implemented in your business this common practice of
- 25:10timestamping. Now, technically, there's ways to do this now with the existing rules of evidence,
- 25:18but you still have to bring in like a qualified person or potentially an expert to verify the
- 25:23timestamp and you sort of explain to the court how Bitcoin works, all that. What we're hoping for is
- 25:28to kind of really reduce expenses by just getting a rebuttable presumption embedded in the rule.
- 25:33And again, of course, it's not bulletproof. So that's why the other side can always challenge
- 25:38it. And they're more than welcome to. But we think this will very significantly cut down on costs
- 25:45and streamline litigation. Whereas AI in general is really making litigation a lot more complex.
- 25:53It creating obviously you have these evidentiary problems but you also getting pro se litigants going to ChatGPT and filing lawsuits you to what ChatGPT says it should do and in ways that they never would before
- 26:07They're writing these massive briefs. They're having ChatGPT write the massive briefs and
- 26:11going to Core's pro se litigant, which is really cluttering resources. So this is actually
- 26:15one way to pull that back a little bit, and it just uses Bitcoin to do it.
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- 28:16Check it out.
- 28:17Let's double click on that.
- 28:18How fast is the emergence of AI beginning to clog up the courts?
- 28:25And at what point do you think the pressure builds to such a degree that it forces the hand of the court system to figure out a solution to make sure they can cut out the noise and discern the actual signal of who has a legitimate case to bring to the courts in the first place?
- 28:47Yeah, I mean, it's a very good question. I don't really know what the point is, except to the point where it's paralyzed, right? If the system becomes truly paralyzed because we're getting too many pro se litigants filing too many briefs and motions and all that in cases, then I think what will likely happen is judges will be forced to be much more stringent with sanctioning sort of frivolous lawsuits.
- 29:15And unfortunately, I think there's going to have a lot of people who get sanctioned for, you know, maybe they weren't wanting to do the wrong thing, but it was just it was just voluminous.
- 29:24And they kept filing motion after motion. I mean, it can be considered essentially harassment at a certain point.
- 29:29And judges are going to have to police that they have the inherent authority to police their own dockets.
- 29:34And so they can I think they'll be lenient for pro se litigants because you do want to balance.
- 29:39Obviously, there are worthy pro se litigants who don't want to hire an attorney who want to go in and prosecute their claims.
- 29:46They have a right to do. But I also see judges after a while saying, OK, if you're going to bring a claim, you've got to you've got to back up what you're saying.
- 29:55And if it is you can give me one bad brief, but if you give me another one with these hallucinations or just improper statements of law, all that, you know, you can get sanctions and having the take the claim thrown out with prejudice.
- 30:07So you can't bring it elsewhere again. And maybe even monetary sanctions to start to deter people from filing some of these claims.
- 30:15I don't think we're there yet, but I could I could see that happening.
- 30:18And I've already read cases where these some of these litigants were not only using AI to file the claims, but they were using AI to kind of alter evidence a little bit more in their favor.
- 30:30And so that's a that's a quick sanction. Right. That one got kicked in and dismissed with prejudice.
- 30:34but nevertheless cluttered the court's docket for quite a while and it kept them from doing
- 30:40other you know meritorious cases and eventually that balancing is going to have to we're gonna
- 30:45have to find the right balance there because you don't want to deny someone their day in court
- 30:49but if you're allowing everyone to kind of abuse the system with ai then you are effectively denying
- 30:55someone their day in court just someone on the other side who's not using the ai for the case
- 31:00that was dismissed with prejudice,
- 31:01how did they use AI to manipulate evidence?
- 31:04As mentioned, I believe in the comment,
- 31:06it might've been the one that escaped you,
- 31:09but I think they tried to alter the eight second video clip and it was found out and eventually it got dismissed and dismissed with prejudice
- 31:21So that means whatever the underlying claims were there, even if you had a good case, you can't bring it later.
- 31:26So it's it is. I believe it's in the comment, though.
- 31:30So I don't know the exact citation.
- 31:31And getting back to implementation details of what would be necessary to have this actually make sense and be viable at scale.
- 31:44I mean, you said it can't be post hoc, it's got to be pre hoc.
- 31:48And so with that in mind, there's got to be practices and business flows at particular businesses and then personal flows when you're signing particular contracts to make sure that you're hashing this on the go.
- 32:03And so the idea isn't that you want to present a case or you have a case brought against you and then you start using this to prove that something existed.
- 32:12at that point, it's almost too late. So there needs to be widespread adoption and normalization
- 32:20of doing this hashing into the protocol now so that in the future, if something happens,
- 32:27you can say, well, actually, I had this data hash in the chain. Here's what it looked like
- 32:30when I hashed it. Yeah. And I think it's a great way for Bitcoin companies to kind of lead the way,
- 32:36kind of like selling what we buy or buying what we sell, excuse me.
- 32:41It's a pretty low-hanging fruit option.
- 32:44It's not intensive for the operators to do, and it doesn't cost a heck of a lot either.
- 32:49So you could implement it at scale across your organization.
- 32:54And the potential headaches that it saves you down the road are very real.
- 32:59And we've obviously discussed a few possibilities.
- 33:02But even avoiding...
- 33:04Those are litigation possibilities.
- 33:05but even avoiding it altogether, even if there's a reasonable disagreement among parties
- 33:10and someone thinks they have the most recent contract and they just don't.
- 33:15And if the business ends of that dispute can work that out on the front end,
- 33:20being like, look, let's go compare it, right?
- 33:21Let's go see.
- 33:22I know you got an email that was this version, but let's go see what we hashed.
- 33:26And, you know, you just avoid an entire litigation that nobody really wants to be in.
- 33:30So there's a lot of there's a lot of economic incentive to do so, I think.
- 33:35Yeah, completely agree.
- 33:38And so what are the next steps?
- 33:41Obviously, you presented the comments.
- 33:43What's the process from here on out to make sure that you can use this as a rebuttal?
- 33:50And then where else could something like the comments that you and Rafael put together be
- 33:56presented?
- 33:57Is it state by state, county by county?
- 33:58Does it have to happen at the federal level?
- 34:00How does this all work?
- 34:02Yeah. So at the federal level, it will the next step is the committee is considering it, I think, at the moment.
- 34:08They have a meeting in a few days where they will kind of publicly discuss what the what their agenda is for amending the rules, if anything.
- 34:18That committee is just like a subcommittee of a larger committee of the judicial conference.
- 34:23and if it gets enough weight behind it, enough support,
- 34:28eventually it can be implemented by the Supreme Court,
- 34:31the United States Supreme Court,
- 34:32putting them into the federal rules of evidence.
- 34:35And that's how you amend the rules.
- 34:37You can also put it into a comment to kind of explain things.
- 34:40So it doesn't necessarily have to amend the rule itself
- 34:43if it's a comment kind of adding to an existing rule,
- 34:46maybe helping explain that this is one way
- 34:48you could satisfy this rule.
- 34:50That would be helpful too.
- 34:51It's a little bit less, I think, burdensome to try to get that off the ground.
- 34:57On the state level, though, you can also go state by state because every state has their own rules of evidence as well.
- 35:04And I think it's probably a little bit more accessible for folks to try to do at the state level.
- 35:10Your representatives in the individual committees are a little bit more responsive, I think.
- 35:15Although I will say the federal committee has been extremely responsive to us.
- 35:19They've been they're reading it. You know, we were able to go back and forth with them about, hey, we're thinking about doing this.
- 35:25And they kind of told us how they'd like to see it presented to them. So kudos to the federal committee for that.
- 35:32But, yeah, state level, same thing. It doesn't go down to the county level. Rules of evidence are state by state or federal.
- 35:39And I think if we can if we can even get one state to change theirs along these lines,
- 35:45then all of a sudden you've got a nice kind of laboratory for the federal government to observe, see how it works in practice.
- 35:52And that might be that might be maybe if this if this doesn't pan out this time,
- 35:56that might be the next logical step is to really focus in on a single state to get them to to adopt this standard and just show everybody how it works and that it works.
- 36:05And in a lot of ways, that's what we're doing with Screbin County on the election side.
- 36:08We've got a great election supervisor there who's who's a big Bitcoin or big believer in Bitcoin and also a big believer in fair elections.
- 36:15So we're using her county to show that this stuff is workable.
- 36:20It's efficient.
- 36:22It not going to drain anybody budget And you know it a relatively rural county It not like it Fulton where you have this huge IT department And the idea being essentially if like we can implement it there we can implement it in any county
- 36:34What's the response within Georgia been to the Screbin County example of using this?
- 36:41I think it is consistently, wow, that's really interesting. But I'm too busy to implement it
- 36:48right now. Every county or state level operator that I've worked with has instinctively known that
- 36:55that's extremely interesting and there's a great use case, but it's really about them. We're trying
- 36:59to make it as easy as possible for them. We don't want them to alter their lives at all.
- 37:04And it's really, I think, again, having it continue to work in Scrabble County will create the window
- 37:10of opportunity for us to finally get it on a statewide basis. And to be honest, the discussions
- 37:16that I've been having lately indicate that that moment's getting much closer. I think people are
- 37:22ready to, there's just, in Georgia, there's so much discussion, as elsewhere, there's so much
- 37:28discussion around election security. It is one of the hottest issues. I mean, we're still a swing
- 37:33state right now. And although we, you know, I don't know if we're as much of a swing state as
- 37:38we were, but, you know, the map's changing a little bit. But nevertheless, everybody's interested
- 37:44in election security. And I just hope that we're able to get it at a statewide level before there's
- 37:50an issue rather than after there's an issue. Because as we discussed, this is a preparatory
- 37:55measure. It's not really a reactive measure. So I think we're getting there. It's just about
- 38:02kind of continuing to bang the drum, TikTok next block for this as well. Georgia has also a part-time
- 38:08legislature. So they're only in session 40 days a year. And those 40 days are just hectic. Everything
- 38:15has to be done. Yeah, everything has to be done in those 40 days. And it's hard to get your foot
- 38:20in the door. But we've been hanging around, I think, just long enough that I do believe we'll
- 38:25be able to get something done at a statewide level as long as we continue doing what we're doing.
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- 41:23Yeah. So your point about being preparatory, not reactive. I think the Guatemala election
- 41:28is a great example.
- 41:29Like they were prepared and they were actually able
- 41:31to prove that the incumbent was trying to manipulate
- 41:34records after the fact.
- 41:36Yeah, I mean, it's fascinating.
- 41:38And I guarantee you, like with
- 41:39generative AI getting to where it is, there will be at the end of this election, someone will use
- 41:44gen AI in a way that is targeted to undermine confidence in the elections. And I think eventually,
- 41:51once that's happened, folks will realize that this is a clear and present problem. And hopefully,
- 41:58they'll have enough to... That'll give them enough to implement this. And we'll be ready to go,
- 42:03right? Because we've been trying to tell them for a while. And the nice thing is, at Scriven
- 42:09county we've been able to you know pilot it and show that it works and next thing is just doing
- 42:14it at scale yeah i mean yeah my mind racing too like doing at scale
- 42:22it's like you just get a docusign or sign now or one of these companies and say hey
- 42:27i'll pay five dollars extra a month for you to automatically broadcast a transaction that hashes
- 42:34the contract that i sign into bitcoin's blockchain yep
- 42:39It can be that simple, that automated.
- 42:41I mean, it's...
- 42:43What does Satoshi say in the white paper?
- 42:47The network is robust in its unstructured simplicity.
- 42:51So is this.
- 42:52Yeah, that's a beautiful thing.
- 42:56So what would you say to anybody out there
- 42:58agreeing, yes, we should do this?
- 43:01What can they do?
- 43:02What are the easy things that they can do?
- 43:05Pick up the phone, write an email,
- 43:07reaching out to representatives or should they reach out to the state court system?
- 43:14How do more people get this on more radars of courtrooms across the country?
- 43:19Yeah, I think there's a couple of things you can obviously reach out to me or anyone at,
- 43:24I think anyone at Civil Proof would want to help you wherever you are. So if you want to say,
- 43:28I want to get this implemented in my state or in my county, obviously you want to talk to your
- 43:32elections officials, but I think you should talk to us so we could all coordinate together.
- 43:36A lot of these election officials are somewhat challenging to get to get a hold of.
- 43:43So, you know, we've been working on that for a while.
- 43:45So we're getting pretty good at it. And so we would love to be able to help you with that.
- 43:48But really, it's about doing it in your local local jurisdiction.
- 43:51If you happen to be a lawyer that is interested in this, maybe talk to your talk to your bar association or folks that work on the rules of evidence in your in your state and kind of bridge it to them.
- 44:02And I guarantee it'll take more than one touch. Right.
- 44:05Because most people go, oh, that's interesting. I'll think about that. And they go about their day. But if you're persistent and you're able to do it in your own locality, again, all it takes is just a couple of one, really, one of these taken off where something that was kind of a quirky side project becomes just part and parcel to the process down the road.
- 44:22Yeah. Beyond the intersection of the law and hashing digital records into Bitcoin's blockchain via open timestamps, what's your broad view on just like the status of the law as it pertains to Bitcoin privacy, custody rights?
- 44:45I saw that you were tweeting about the CFTC basically allowing non-custodial CoinJoin implementations to operate without having to get a money service provider license.
- 45:00What's the state of Bitcoin in the eyes of the United States government right now in your mind?
- 45:06Well, it's a lot better than it was, I don't know, five years ago.
- 45:09So I think that one of the things I was tweeting about was the FinCEN rule where they had originally published part of these agencies.
- 45:16They're all creatures of the they're kind of like hybrid creatures of the legislature and creatures of the executive branch.
- 45:22So when they they have this dual power to both make rules and regulations and also enforce them.
- 45:28So that's problematic under our Constitution for separations of powers reasons.
- 45:32So when they change their regulatory scheme to include other things, they have to do what's called a notice of proposed rulemaking where they say, here's the rules.
- 45:42We're thinking about promulgating as an agency. Let the public comment on it and say, you know, basically either support it or say something that you don't like about it.
- 45:52And it's kind of a long process. So then, you know, they promulgate the rule. They do like a 90 day public comment period. And then they take it under advisement, essentially, and either issue a rule or retract the rule.
- 46:04This time, the FinCEN was an NPRM on what they called structured transactions, which was basically just reusing or not reusing wallet addresses, you know, just doing a fresh address every time, which is pretty much Bitcoin 101 at this point.
- 46:20Like you don't want to be putting everything into the same Bitcoin address.
- 46:23It compromises privacy particularly if you interface with a KYC exchange So it not even mixing right Like this is just this good practice for Bitcoiners But FinCEN was targeting it and was looking to classify it as a form of CVC convertible
- 46:41virtual currency mixing, which would have put you on the same playing field as Samurai and things
- 46:47like that for just not reusing an address. That was extremely dangerous. That came out, I think,
- 46:53during the Biden administration, I want to say it was 21, 22.
- 46:58It got tabled for a little bit and was re-put out again,
- 47:01I want to say possibly under the Trump administration.
- 47:04They got the notice and comment period.
- 47:06Coin Center did a great job filing a comment.
- 47:09Other folks did a very good job filing comments saying,
- 47:11hey, this is way too much.
- 47:15And they just, the thing that I was tweeting about was,
- 47:17I think, FinCEN retracting that rule.
- 47:21So that regulation is not going to be in effect. And I think that's a huge win that number one, it shows that these agencies are not just, you know, they're willing to listen to folks who comment.
- 47:33That means that taking the time to comment on these things, while it is a bit arduous, can be expensive, too, if you engage a law firm, which I mean, coin centers and nonprofits, they engage a lot of lawyers and law firms and things.
- 47:44And but it's worth it. Right. You can actually change the regulation, change the future way that the United States government views your use of Bitcoin personally.
- 47:56And that's also part of like that's why we we filed this comment. Right. A lot of people might think it's shouting into the void.
- 48:02A lot of people might think it'll get overlooked or not even considered at all. But you never know.
- 48:06You might just change the rules of evidence and make things really easy on folks going forward.
- 48:11So I think it's just great that the government is interfacing with Bitcoin in this way.
- 48:16Obviously, there's there's that it's not perfect. Right.
- 48:19Like there's there's a lot of things that I don't necessarily agree with.
- 48:23I don't think, you know, you should be prosecuting mixers at all in any in any event.
- 48:27But, you know, it's it's good to see that they are willing to make adjustments and kind of backtrack on bad ideas when they're presented with new information.
- 48:35So it's great. It's great reason for us to continue to do things like submitting this comment here or submitting comments on proposed rules.
- 48:43It's not sexy. Right. It's not going to typically doesn't make headlines.
- 48:47But it does the sort of grunt work of making sure that your your politicians and your bureaucrats are are still somewhat, you know, considering the common person in what they do on a day to day basis.
- 48:59what are some of the
- 49:02low-hanging fruits or
- 49:04some of the biggest wins
- 49:09that we could get from a legal perspective
- 49:11that we still haven't won yet?
- 49:13I think
- 49:14the Blockchain Regulatory
- 49:17Certainty Act is a pretty good
- 49:19low-hanging fruit thing that
- 49:20we should
- 49:23be able to get. It keeps getting
- 49:25added into these laws.
- 49:27I think it was part of the
- 49:28structure the clarity act and so it didn't get passed but that's because it was plugged into a
- 49:33much broader kind of market structure bill that ultimately ultimately failed but it was great
- 49:39protection for for developers of blockchain software and application software and things
- 49:44like that basically saying that that you know as long as you're not you know custodying things and
- 49:50you can you can you can write code and not have to worry about getting in trouble for the most part
- 49:53which I think is a reasonable thing is writing code is,
- 49:56is really just like speaking in a lot of ways.
- 49:59And we have the first amendment here.
- 50:01It protects one's right to speak,
- 50:03to speak even,
- 50:04you know,
- 50:05unfavorably.
- 50:06And so I think that that should be embedded in our way we approach code as
- 50:11well.
- 50:11And I think the,
- 50:12the,
- 50:12the BRCA,
- 50:14yeah,
- 50:14BRCA was one way to do that.
- 50:16And,
- 50:16and I think it has in and of itself,
- 50:19it has probably broad consensus,
- 50:20but it got kind of intertwined with the clarity act.
- 50:23So I think if we could just do a freestanding bill just with that one provision, that'd be great. It'd be a great way to just get a small win for the industry and get Congress thinking about this as more than just, oh, is it a security or is it not a security developer, shadowy super coders, all that stuff, and just do some kind of basic good legislation and policymaking.
- 50:47And that's what I think we should try to target first, probably, at least from a statutory perspective.
- 50:53On the regulatory side, you know, there's probably SEC and CFTC are now kind of joining together to issue regulation.
- 51:02So I'm sure that will require a lot of analysis and people looking at that as well to make sure that that looks good, too.
- 51:11Chances of repealing the Bank Secrecy Act. What do you think?
- 51:17Not high at this moment I settle for maybe let take the USA Patriot Act out and leave the old Bank Secrecy Act pre Keep your privacy a little bit better
- 51:32But yeah, the Bank Secrecy Act has been a thorn in the side of privacy advocates, I think, for quite a while.
- 51:38And Patriot built on that.
- 51:41And we've just been getting kind of death by a thousand cuts in terms of privacy land.
- 51:47the fourth amendment i'm not sure how much it really does at this point uh because we've we've
- 51:52we've endured so much so much uh you know kind of periodic incursions into our relative levels of
- 51:59privacy that i don't even know if we understand what our you know our parents parents knew and
- 52:03took for granted as privacy i mean i would take an inflation inflation adjustment alone just on the
- 52:09uh the minimums that trigger a suspicious activity report that would be yeah i mean yeah the fact
- 52:14that we're using, I think, figures from 1971, I think 1973 is insane. I mean, it's pulling in
- 52:21everybody. Yeah. And so really tying this together and bringing it back to the comments and using
- 52:32open timestamps as a way to present evidence in the court system. I mean, you highlighted
- 52:40some of the benefits that that were provided in terms of the economic efficiency you're not going
- 52:47back and forth because you're able to quickly prove like hey this thing existed at this point
- 52:50in time obviously to election integrity being able to to give the the populace assurances that
- 52:58that elections at least to some degree are legitimate you can prove that certain things
- 53:03happened. Certain votes were cast at certain points in time, but even broader, like what
- 53:09do you think this does for society at large? If this were, if this practice were to be widely
- 53:17implemented across everything that we do in terms of economic coordination, obviously the legal side
- 53:24is very important too, but what types of benefits overall do you think this can provide?
- 53:29Well, I think it would be phenomenal as we go forward into this increasingly challenging world with generative AI being so sophisticated where it's hard to tell what is real and what isn't.
- 53:43That problem is only going to get more acute.
- 53:46we already there's a concept called it's called truth decay where people not only are people
- 53:53believing that AI videos are real they're now not believing that real videos are real so it's
- 54:01causing everyone to question their reality around them which makes for obvious reasons like potential
- 54:09catastrophe for social interaction and society in general if people can't tell what's real and
- 54:15what's not real on a day-to-day basis. Now, I'm not saying that this solves for that.
- 54:21But what I am saying is that the more and more digitized our life is, when coupled with
- 54:29increasing sophistication of generative AI, we're going to need ways to prove digital truth as best
- 54:35we can. And if we can proliferate this into more aspects of our lives, then we're going to have a
- 54:42fighting chance to be able to do that. You know, it can be something as simple as, you know, I think
- 54:48the constitution.org website was hacked, the one that the government controls, and they removed
- 54:53provisions of the PDF on the Constitution, or not the PDF, but it was the website from the
- 54:57constitutional text. And people freaked out for a little bit. It's funny looking at it now,
- 55:02but people freaked out because the official website of the Library of Congress removes
- 55:06provisions of the Constitution. And everyone said, oh my gosh, we're losing, we're going to lose
- 55:10liberties and Trump's going to take over or whatever. That's kind of a silly example, but
- 55:15that's already happening now. So just imagine three, five, seven years out, the level of the
- 55:22ability for generative AI to kind of scrape the internet and pull down certain long-held maxims
- 55:28that were on there and what were once widely known. And then just, again, it's instituting
- 55:34that level of confusion and just the skepticism, allowing people or creating situations where
- 55:39people don't trust what they see. That's a nation state or an adversarial attacker's dream,
- 55:45right? How do you want to topple a civilization? Get them to question everything around them.
- 55:49Get them to not believe what they see and then believe things that are fake. It's very scary.
- 55:57And so doing things like this will help incorporate truth and give people a fighting
- 56:02chance to challenge that future order. And I don't want to be too much of a doomer, right? I'm not
- 56:09saying that going to happen But this I think is one one arrow in the quiver so to speak of attacking that future And I sure there will be others but there there a lot of potential here And I hope people take it seriously and I hope that they agree with us and look to implement it in their own day to day lives
- 56:25Yeah. So just think of the Library of Congress, take every document that exists there, which is hundreds of millions.
- 56:31Yes. Or at this point, get hashed in Bitcoin so that we know, obviously.
- 56:36we're going to get a hash of the state of the document when it was hashed into the chain,
- 56:42but that'll be a good start.
- 56:44Right. If we start that now, we're looking pretty good.
- 56:46If we start that in 10 or 12 years, you might be hashing a lot of fake stuff already.
- 56:52Yeah. And it seems like a no-brainer to me.
- 56:56I think push will come to shove.
- 56:59Hopefully it doesn't need to come to shove and people come to their senses earlier,
- 57:03but the earlier we're doing this, the better.
- 57:06And so thank you for spearheading this issue and making it a point to write briefs, write comments, to get out there and actually try to implement this.
- 57:20Because I think it's increasingly not only important, but imperative as we parallel towards this generative AI future.
- 57:29And it's thankless work, I'm sure, most times.
- 57:35But I think future historians will look back like, oh, there's Bitcoiners and this crazy idea of hashing digital data in the blockchain actually helps save our ass here in the future.
- 57:46So thank you for doing that.
- 57:48No problem. No problem. And I do just want to emphasize, while I work with Simple Proof and they do they do fantastic work implementing the Open Timestamps Protocol.
- 57:55It is an open protocol and anyone can build on top of it and kind of create their own product.
- 58:00So I guarantee you, Carlos and Rafa would say, hey, go start your own thing, too.
- 58:05And let's all attack this together.
- 58:10Final notes, parting thoughts, calls to action.
- 58:13Where should we send people?
- 58:15If you're looking to get in contact with me, I'm just Brian Jacoteau on X.
- 58:20And my law firm is Clark Hill.
- 58:22I speak obviously for myself, not for them here.
- 58:25But if you have any legal needs that I can help with, I'm happy to.
- 58:29I'm a commercial litigator, so I do a lot of that.
- 58:31But we're a full-service law firm, and we have our own Bitcoin and digital assets industry team.
- 58:35So we can kind of attack any problem for you from that.
- 58:38And then, yeah, just go check out Simple Proof, too.
- 58:40It's a public-facing website.
- 58:42Go play around with it and see if there's any areas that you think it might be a good place to implement.
- 58:50And we'll try to do just that for you.
- 58:53Yeah.
- 58:54It's a beautiful thing.
- 58:54One last parting note I forgot to mention earlier.
- 58:58like even these ai companies training the models they're taking old text uh feeding them the train
- 59:04models and then deleting or burning the books essentially it's like okay guys just get the books
- 59:10put them in pdf hash prove it was a certain point don't delete history on us i know you guys are in a
- 59:16existential race to bring about agi but we got to have these uh historical documents so that we can
- 59:23we can understand where we came from at the end of the day yeah yeah the uh what was the library
- 59:28Alexandria fire was, you know, horrible, destroyed, you know, all sorts of texts.
- 59:33But it was obviously an accident.
- 59:34Let's just not, you know, do it on purpose again here now in 2026.
- 59:39So but to the extent that folks are trying to do that, if, you know, simple proof is one great way to guard against that.
- 59:47We can't guard against burning books, but we can guard against the more kind of nefarious process of surreptitiously altering parts of them and things like that, because that's where things get real bad real quick.
- 59:58Yep.
- 59:58Ryan, keep crushing it, brother.
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