Building Trust on the Blockchain: The Importance of Mental Models

BUILDING TRUST ON THE BLOCKCHAIN:

the importance of mental models

getclef.com/mental-models

I’M THE CEO OF CLEF

MY NAME IS b@BRENNENBYRNE

@GETCLEF GETCLEF.COM


THE MENTAL MODELS OF bitcoin


A “bitcoin”


A “bitcoin”

A REAL coin

• Physical money • Discreet, each one is different • Cannot be divided • Printed by US Mint

• Abstract money • Not discreet, only aggregated • Divisible to 8 decimals • Created as reward for miners

vs.


A REAL coin & A bitcoin

• Store monetary value • Can be sent between two people • Can be traded for one another


A BITCOIN “wallet”


A BITCOIN ”wallet”

A REAL wallet

• Object to carry money • Only knows about own money • Not used in sending money • Finite limit of money stored

• Set of cryptographic keys • Uses ledger, all transactions • Signs money transfer • Can store unlimited Bitcoin

vs.


A REAL wallet & A BITCOIN wallet

• You need them to spend money • If you lose them, you lose money • They are personal to you


A BITCOIN “miner”


A BITCOIN ”miner”

A REAL miner

• Digs ore from earth • Only unearths new material • Constrained by geography • Sells material for reward

• Solves math problems • Critical for existing material • Constrained by electricity • Rewarded for work directly

vs.


A REAL miner & A BITCOIN miner

• Spends time and money • Gets chance to reap rewards • Competes for scarce resource


THESE METAPHORS CHEAT.


BITCOIN IS MOSTLY AN INNOVATION OF METAPHOR,

NOT TECHNOLOGY.


THE THREE STAGES OF innovation


STAGE 1


technical knowledge


technical knowledge

• Universities are hotbeds of activity • Ideas improve, change quickly • Solutions tested by early adopters • Concepts remain technical

The period after invention where a new idea is researched, vetted, and explored by experts.

STAGE 2


abstracting complexity

abstracting complexity


• Technical jargon is weeded out • Ideas stabilize, best win out • Applied to real-world problems • Mental models cover up technical

The maturing period for a new technology. Complex topics are simplified and packaged.

STAGE 3


consumer adoption

consumer adoption


• Media delivers clear value prop • Price and market are segmented • No technical education required • Spreads much more quickly

Audiences become familiar with the mental models and the technology can go mainstream.

BITCOIN IS JUST ENTERING STAGE 2.


HOW MENTAL MODELSMAKE magic


MENTAL MODELS all day


MENTAL MODELS all day


• Turn your steering wheel • Swipe your credit card • Warm up your shower • Withdraw money from an ATM • Microwave your food • Type at a keyboard

how to MENTAL MODEL


how to MENTAL MODEL


• Private keys are safer than passwords • Phones can do crypto key-based auth • Most of us are used to physical keys

HOW CAN WE FIT CRYPTO KEYS INTO PHYSICAL KEY

METAPHOR?





“With Clef, the often painful process of logging into a site feels, admittedly, a little bit magical.”

TWO FACTOR NORMALLY

TWO FACTOR IN BITCOIN

clef

<1%

how to MENTAL MODEL

15% 50%

MENTAL MODEL rules



MENTAL MODEL rules

• Stop teaching your customers • Meet them where they are • Improve what they care about • Remove all jargon


JARGON checklist

• Private Key (or Public Key) • Multi-signature (Signature at all) • Blockchain • Cryptography • Decentralized • Cold storage • Consensus

QUESTIONS?


@GETCLEF

BUILDING TRUST ON THE BLOCKCHAIN:

the importance of mental models


Economy & Finance

Building Trust on the Blockchain: The Importance of Mental Models