A Short Story About Private Law | Peter Van Valkenburgh
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Welcome to the final talk of the bank less summit, which was a series of talks from speakers around the etherium ecosystem, all presented at a one day event of the day after that gun called the bank. Peter van vulcan berg is perhaps one of the greatest speakers in the entire capital industry. He works at coin center defending our rights to hold script, to have privacy and retain all the cyber punk values.

That's bd with this industry. Peter talk at defcon, I also recommend watching just because Peter socks are always so special. He gave a little short story, allegory, a story about a town with houses and buildings made entire of glass, with nothing to stop anyone from seeing inside the houses.

I'll let your imagination try and guess what? That's a metaphor. This talk that he gave at the bank of summer poses a potential inversion of that same metaphor, which leads Peter to argue why we need more of this thing that he calls private law. I hope you enjoy. Let's go get right into the talk from Peter. But first a moment to talk about on the fantastic sponsors that make the show possible, if you want, eclipsed to trading experience backed by world class security and award winning support teams, then head over the cracking when the longest standing and most secure crypto platform in the world cricket is on a journey to build a more accessible, inclusive and fair financial system, making a simple and secure for everyone everywhere to trade. Crypto crackings intuitive trading tools are designed to grow with you, empowering you to make your first or your friends trade, and just a few clicks.

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Thank you. I'm a lawyer. I have notes. All this stuff here are going on you.

okay? Oh, thank you. Thank you and water this.

lovely. Thank you, David. Thank you for having me. I hope this is interesting to you all.

As I said, I am a lawyer, a very washington dc. Lawyer so of course, this talk has to open up with a disclaimer. But you're lucky, this is not my Normal disclaimer.

My Normal disclaimer lies I am a lawyer, but i'm not any of your lawyers. That's definitely true like do not rely on anything I say and if you get in trouble, your on your own has not ready with me. That's my Normal describer.

The special describe for this one is this is also not part of my daily job. My daily job is coin center show hands. If you know coin center, all that's really good, that makes me feel good.

So coin center is a nonprofit based in washington, dc. And we've been advocating folks in dc and congress and in the agencies and through the courts to understand these technologies is Better and to give them enough space. Just a little opening to actually grow and build and make the world a Better place.

That's increasingly difficult because of issues like investor protection and security laws and increasingly, increasingly difficult now because of issues like sanctions and north real usage of the chain or north korea usage of things like tornado cash. So that's my daily job. And we are suing the government, by the way, we're suing the department of treasury for its tornado cash sanctions.

Thank you. Our climb is pretty simple, is that the statues for sanctions laws are important. They are part of our national security and congress said, here you have this power, president, to identify foreign persons and property who are, you know, enemies of the state, and block americans from interacting with those things.

The congress said that really clearly, and they said, foreign persons or property, and in a mutual smart contract, the tornadoes cash on mutual pools is neither a foreign person nor any foreign person's property. So if any of you show off hence of your american, maybe don't want to bit to IT if any of you donate to coin center on an american nonprofit, vivo once four, and use the amut pools in order to make that donation private on chain. There's no foreign person involved.

There's no foreign transaction. The nexus. This is not about national security. That's just about civil liberties.

The statute should not empower treasury to block that transaction, and that's what we're fighting for. We have oral argument in that case this coming tuesday. So look forward to some new news on our appeal. This is a very longer claim er or so let me get into the meeting of my talk.

This is David, when he invited me, said you can talk about anything you want this is the bank summer we wanted to be like pod caste and interesting as I was like, oh oh okay, the guideline is interesting well my idea of interesting is hopefully somebody do you guys this idea of interesting but its a little weird I got admit and so I was like, alright, a well, interesting to me is something that someone's personally passionate about and maybe even angry about and yeah, I could be passionate, angry about twenty to cash for a whole half an hour. But I want to do something different. So this isn't a talk about privacy law.

This is Peter, just as Peter, not coin center, talking about private law like the civil court system, the angle, sex and common law and how we need to accelerate the private law. I actually want more lawsuits. I'm a lawsuit maxxi, and that's going to be crazy.

But hopefully this talk will explain what I think some out. This is a great audience. I hope you would. I hope you will enjoy this. So David told me I can talk about anything.

So what I decided to do was talk about sea oils, actually, because sea oils, especially the long chain fatty acid here with the double carbon bond in the middle that makes a kinky. They screw up on the tables and right, and they're everything, they're in hamburgers there, things that look like whole foods, but actually they've got like canal oil in them. And because of all the money from the corporations and this guy, after he's gonna, he just getting this talk is not about c oils.

C doors are not actually bad, by the way, but the stocks. Not about c dos. No, this talks about something else that makes me passionate. And sometimes this talk is very personally about my kids and where I live and what why you didn't. D, C, so these two little adorable things are my two kids, and this is their bike, or my bike.

And, you know, I have ganim ed about this because I was like whom I see people being afraid to talk about their kids in front of public audiences on the internet. And they I see, even on instagram, pretty Normal people like put these emotions es in front of their kids faces because I guess like paci al recognition right in personal privacy. And I get that, but and we got a lot of big problems there.

But jesus, like a couple of mo jees, is not going to fix that problem. And so actually, like, these are my kids. There's so cute and you probably noticed that the background here is the city.

It's a pretty dense area. I don't just live inside the belly. I live in the densest neighborhood in washington, dc. Population density was and it's nothing compared to like bangkok, you know or let alone manhattan or paris. But i'm determined to stay there in dc because I have to be in dc for my work for lobbying and bringing ing losses.

And I just really don't want to be that person who in order to go get a beer and a burger and hang out with the neighbors who also have kids where I have to hop in a car and drive through two neighborhoods where I just pretend not to care about those people I wanted, like meet my friends at the bar on the corner and meet more friends along the way, because i'm kind of an introvert, believe IT or not, I get these presentations, but like, I need to be next to somebody to finally, like, intimately, get to know them. I can't, if I was living in the suburbs and had to drive everywhere, I D never see anyone, you know, i'd be too afraid to call them up and me like, hey, let's get a beer. And so i'm really committed to being in this neighborhood in dc.

But it's hard. You know, the schools aren't great. They're getting Better. They're difficult. The school closest to us is probably Operates.

So that's why I have that cargo by because of taken to school. And is the crime problem real? Yeah, it's very real.

And it's it's kind of getting worse sometimes, like I said, nothing like bangkok in my neighbor od, but still dance and this is like this is the bar we go to. I'm going to keep these smiling faces on the neighbors kids because that's not my place to share them. But like and we met because you one of them works for the federal reserve.

Another is a contractor had delayed and i'm crazy cyp to obvious and but we all have kids and that makes us come together. That makes us happy. Here he is drawing under like the bar gave the choked and I go ahead, scribble on the specials.

Nobody cares. It's a fun bar. So she's most of us like me, and because I live in the city, I hate cars.

And I see cars as a symbol of something that went wrong technologically about one hundred years ago. That is a lesson for how we might go wrong for the next hundred years. This is pretty close to me.

I want to tell you exactly where I live. My object is bad, and this presentation isn't. This car flipped you to the sidewalks I walk on with a seventeen month d who's just kind of like starting to go like this.

And so David said, I could do this, talk about anything. So actually, this talk is all about how cars are evil. We're just going to watch a bunch of not just bike videos and he fans and just a great youtube channel. You should watch IT. Now i'm getting the second bad baten switch joke this talks about about cars.

But in a way that is because, as I said, I really want to live in a city that's dense and where i'm forced to be in touch with people all the time, learn about their weird things and they are cool things and even have conflict with them and bump into them so we can talk about IT and find a way forward together. I don't want to go off to be a mountain man in the wilderness to use vitality term about people who are going to fully valid, ate the chain on their own. I want to be a part of a society, and this is what I want to be a part of.

Does anyone recognize this? This was the engraving cover of hobs leviathan, the great european and political theorist. And the weapons always talked about is just like monolithic power, this evil, evil government that we have to just submit to or die or be in the wilderness, nasty, brutish, short, struggling for survival and unhappy.

There's a way to read hobs that isn't like that though, and I think it's actually what hobs meant. This guy, this powerful king, he's not a dude. He's a dude of many dudes.

And do deaths, right? Like, like this one here. This is a human.

This could be me. And over, here's in a rage at coin center. And like, over, here's a mean super money. And i'm like, i'm happy to be in the same dude as you because you're weird. And I like the ideas that I want to work together.

So like this is what we need to enable to be able to prosper in a system of ordered liberty and move forward with our lives. And i'm worried that we're not preserving this. We're not living up to what hobs would have actually expected us as political theorists.

We're going in two opposite directions away from this towards an actual tyres that isn't made up of the people or towards the world. We're all alone in the wilderness, nasty british and short. So let me let me talk about cars just a little bit more because I do think they're a good symbol.

This is how most people take their kids to school, right? And you stick your kid in this car seat and like, look at him. This is poor guy.

He's got like this great view of the sky and he's going to sit there maybe in traffic for like twenty, thirty, forty minutes. And those minutes are so precious. When you have a little kid, their brains are just developed.

They're learning how to interact with the world. And what are you showing them? You're showing them the sky.

And they just kind of get teleported to their safe destination. They don't walk through the nights hood. They just suddenly end up in the monteori school.

And the montesson school might be really good, but no wonder they grow up anxious. So like I don't know how to get from a to b, it's just magical IT happens. I'm in a glassing close box and then i'm in where i'm supposed to go like they've got a bump into each other.

The problem with bumping into each other, though, as is scary as a parent, like I really worry about my kid safety when I take them out on the bike. They much prefer IT. They love the fresh air, they love seeing neighborhood.

They love the wind on their face. They love me behind them, with them in the bucket, talking to them because you can have a conversation. But I worry about cars.

There's good bike paths, so it's reasonably safe. I worried so much that I bought this three sixty camera name you have, like inter, three sixty or something, the new or go pro lens is on both side. They are great for like skiing and snow boarding and stuff.

I want to mount T T, on my hand bars because then I can just have a document. It's like a dashboard camp, but it's all around me. Have a record of people who mess with me as I drive and that kind of maybe a silly solution.

But IT made me feel a little Better as like, okay, well, at least you know, if somebody messes with me, I could, I don't know, start a website of like shaming people in dc for driving into the bike lane and messing with this bike for of adorable kids. What are you doing? Well, that was gonna.

The next slide was a video of me driving by kids to school. Three sixty would have been really cool. Didn't happen because, as I was writing this talk, this happened.

This is like a weird like cement wall in the back of my towse. It's like ten feet tall where I keep my bike in there and the doors locked, and that's my bike. And this guy is lifting IT up out how we got in there.

I'm not sure I don't have footage of that. And it's like a hundred and fifty pound bike, by the way. That's why I wasn't chained up in there because I was like, who's going to lift this bike up over a ten foot wall? Stupid of me, in retrospect, I blame myself a lot for this.

But the bikes gone, he disconnected the camera at this point because he probably side, and then I suspect he just threw over the side of the wall. And that was the end of IT. And you know, this is okay.

The bike insured. I'm Lucy that I live in a civil society. That's pretty good about this stuff.

And the only hard part was explaining to add my daughter, like h, we can go to school on the bike today. We have to drive because the right needs to get fixed. I didn't want to have the conversation with her about scary people outside taking our things.

So I guess i'm going to have to have that conversation someday. I just done know when. And you know, the police didn't really help in my favorite scene in biga, balky, where he wants to get a rugged back, you know, because I tied the room together and the cops like, oh, we got a lot of leads.

We're going to have a team of the track team of people working on IT, you know, and I don't blame the cops in neighbor. I like the cops in my ibd. They have bigger priorities and cargo bike like they're styling crime.

So what was my response as a parent, as a him being, I was like more cameras because I didn't have IT of angles to like ID the guy and I this is just like an impulsive response. And you might have noticed the little nest water mark in the earlier surveilLance footage. I like, well, that's wrong.

I know that's wrong because i'm just actually making myself more vulnerable with those cameras on a certain sense. Like what if next gets hack people going to arn everything thing about so I built a whole system that I installed hardly before coming to bangkok because I wanted to like get IT working so I could spy on my house while i'm in and it's gotten power over ether net cameras. So they're all wired.

They i'll go to a switch in my house that runs pf sense routing and they go to an nvr in network video record. And it's all local. I got like sixteen terabytes of storage and IT just rotates, is about a month of capacity for two four k video cameras, which is great.

And i'm going to get more cameras. I'm a little crazy, I admit, but like, this is cool. But as I found myself kind of impulsively doing this, how much time do I have? I tend to talk about as I found myself, like impossibly doing us.

Like, this is wrong. This is not what a privacy and civil liberty is. Advocate is supposed to be doing.

What am I doing? I'm becoming my own worst enemy. Like, i'm the ubiquitous surveilLance.

Like, i'm like walter White breaking bad. I like I am the danger now and maybe that's true. Maybe i'm screwing up.

I don't know. I'm not so egocentric to not entertain the possibility that i've become unhinge. So please, after the talk, tell me i've become unhinged if you think i've become unhinged. But the thing that's important to me about this is that it's mine.

It's cameras, eye control because we have two paths forward in a world where there's you big with a surveilLance, we can try and ban cameras and ban the state from using cameras and ban each other from using cameras to reclaim the kind of like eighteen century privacy that we may be secretly want. And I do kind of want that, but good luck with that. Or we can admit that there are going to be cameras everywhere.

And we should, as private individual citizens, race the state and having more surveilling that we control to leverage and show what we think is important about our lives, evidence of injustices, of good things, of bad things, of protest movements, of all this. Like, I should have a camera, just a three sixty camera, me all the time, as long as I am the only one with access to that data to just prove that if somebody messes me, they be that the government or be the criminal. I have that evidence.

Like, I think that's the way forward. And to sort of wrap this into a physical hand framework rather than I just being about this guy whose bike got stone and then he gave a talk at bangles and bank, just this is what this talk is. But to put IT in a philosophical framework to elevate a little bit, here's a way of thinking about IT.

I came across this article i'm not endorse ing this article pursue it's by a guy who's trying to explain why formia liberalism is so weird and why california, this is like a topic deja of podcast. Why california have a bubble, right? Why safran esco has this bad, a tendency of crime and vagrant cy, and also potential economic consequences that are very, very bad, like the rising housing Prices and how it's all linked.

But he's coming at IT from a cultural perspective, instead of coming at IT from like real political something, he wants to make philosophical points. And I found this valuable because he identifies two avatar, ars, in cultural history of california, that are useful and useful also in my talk, but useful to explain california liberalism, because he doesn't use this to phrase. But I think this is the most exciting phrase to explain his point.

What you have in california are nimbi anarchists, which is frequent weird. They're like not in my backyard. I don't want the condo built next door so nothing like bangkok where it's just like, oh, I had this nice house and now there's a monolithic weird people giving talks like this next to IT.

So it's nmb I it's like, no, never changed the neighbor d but it's also anarchists like if they're somebody doing drugs right next to the school, you're not going to call the cops on them. That's a strange combination. IT is.

And later here says that I could be described to the two founding populations of california, as in the founding of the american california, not older founding populations or immigrating populations. And so the two founding populations of american california predit the gold, russia and their their new englanders, who are puritans and, you know, purity are pretty imbibe purans are like the original namba. They like, oh, you want to dance.

We're just going to have no dance in england for a while. Like, that's what Oliver crime well did like. Not only must your house be painted the right color and have the right pickets, no dancing, and then the other founding population was the scotch irish from the appellations.

And these fine, ladies and gentlemen are like the characters in brave heart. You know that when the english army is going by, they move them. They're like the anarchist vigilant I class that just want to be left alone.

And these are in some ways, the nimbi I anarchists of california is a great thesis. Is it's a little too cute, maybe, but I think it's very real. And what i've found interesting about this economy is that it's not entirely like complete, and I don't think he would suggest IT is.

And maybe the answer from populations in history and cultures is that the thing in between the periods and the scotch irish is actually the thing they were both running away from. It's angles, saxons. It's england, england. And that thing might be actually just really good as a middle way to have an ordered society that isn't totality in top down.

Why do I think that? Because i'm a lawyer, and if you're an american lawyer, the thing that gets drilled into you is the angle sex on common law like yeah, I do a lot of administrative law now, which is like filing comments with the esc, but most of my I law school times, we spent learning about property torts contracts, the things that are actually like all of your economic activity, all of those things, all of those economic activities are mediated internationally because I got caught fied in the uniform commercial code and other international documents. They're qualified versions of holdings from the angle sex and common law that go back to the year one thousand.

Like there's a thousand years of legal history here to develop the concept of what IT is to have liquid aid damages attached to your contract, you know? And like that started with, like, well, when we made this agreement for the sheep, you spit in your hand and then shock IT. And everyone knows that when we spit in our hands and then shake, that means I get extra sheep, double sheep, if you break the agreement like that, that probably was a thing.

And he gradually grew into something we now so very like call like liquidated damages, but like originally was just organic practices bottom up. And IT became the law. So you have this really rigorous system of norms and rules and laws that keep us together as a society.

But IT didn't come from some sovereign, didn't come from some king who was just like this. Sh'll be the way now it's not the puritans. Nobody can dance and it's not the anarchists because it's not what we're treat and just live alone.

No, we're going to live together and we need a lot of very rich bottom up emerging norms and law to actually mediate that. Just to hit home on this point, because I going to take this opportunity to nerd out on the loss more. This is one of the earliest cases defining what IT is to have an assault.

And this all ended up in the criminal law, but IT used to be just a civil statue where you'd sue someone for assaulting you. I don't know enough about old english to explain why the parties to this lawsuit are ids at books versus W D S. But those of the parties you see the date where at thirteen forty eight, and I can cite this case in court, IT has authority still, which is wild.

So defendant went to the home of plant, if at night, to purchase wine. So it's a tavern. Upon finding the door to the tavern close, defendant beat the door with a hatch, like this person really wants him freak on wine, right? The planets have stuck her head outside and told him to stop.

At which point defendants swang the hatchet toward plant, if, but did not. Striker, nice. Plenty of suit for assault. This is the case that is still identified for the premise that you should be able to sue someone for almost hitting you with an x but not making contact, because that's what assault is in the law, is creating the imminent fear of harm.

Because just as we do want to arrest people for harming people, we also don't want people going around being like, you know, because that's also bad for civilization. And what's interesting about this case is, is so early that there is no discussion of what's actually the most important about the criminal law assault, which is the mental state of the defendant. Like maybe this guy just was he was banging on the wall with his ex, right? And then he opened the door and her head was there and he was like, oh, oh, I was just knocking on the door.

Because if that's true, if that's what he was thinking, he didn't mean to scare her and he's innocent of assault. That rule about mental state would come about two hundred years later. So is a little before time maybe, you know, poor W. D. S.

And so what's amazing about the common law is, is this in between? And what I want to talk about, just to close out, as I like, project for future research, for brilliant people in the a thean community, which I am assuming you all are, because I think you probably are, all are, is we need to supercharge that middle way. Because we, god knows, we know that technology is super charging.

The totalitarian nani state technology is even super charging to some extent, the naro vigilante hiding in their bunker. You know, over here we've got ubiquitous surveilLance. We've got all the armor of state control over here.

We've got like personal desAlination technology and starlink and stuff like that. We really needs technology that will supercharge the middle because that's what actually brings us together. Is a bunter weirdo lawyers who are like all represent your climb.

Let's go fighter out in court. It'll be fun. And not only should we fight IT out in court, it'll be fun. It'll leave a record so that a thousand years from now, someone can be like, oh, when the dw got hacked, this happened and this happened, and they decided this for that reason. That's why we still have this tradition of building downs this way.

Like a bad example, I hope people aren't still talking about the downham in one thousand years, but maybe they will be. And so how do we supercharge that? I think it's a really hard question.

I think one is the ubique with a surveilLance point I was making earlier. We need more evidence collecting tech that is controlled and exclusively in the hands of individuals rather than the state. I wouldn't be made by meta like the ravines here.

We need trusted execution environments in zero knowledge proofs and personal data architecture that allows me to leverage things like A I, to sit through masses of camera data, find the thing that's relevant to me, where I ran into someone and got hurt or otherwise learned a lesson, and then selectively share that information with somebody else, either just to make a point about how we should be as a society, or to take him to court. And I like, look, I have this one discreet piece of evidence. You can prove that IT came from my device, and the chain of evidence is good.

But then what does that court look like? Because god knows the current legal system is incredibly slow and costly. Just to file our mekas brief in roman storms case, I had to apply prohack bitch to appear in the southern strict york is just the document that says, yes, i've barred in washington, D.

C. I'd like to practice here in new york just for this one case, four hundred dollars. It's just the document I had to set up. You set up your pacer account.

Everything you do, even just reading a page of k law, ends up costing you like three dollars because they still charged like xiao s copies at paster, the public records of our law. So that system is too slow into costly. We need to make IT cheaper.

And if there's something that hopefully technology can do and do well, is take arbitrarily complex systems that are nonetheless undamned tally important and reduce the barriers to entry for using those systems, make them more appealing, available, affordable to the average person. And so we don't have to reinvent the wheel here like private courts that happen with like arbitration, sometimes even binding arbitration. So they still happen in the shadow of the law.

I'm not talking persae about like a network state here. The sovereign not going away. The big governments are not going away. But we can build a whole layer of peer to peer dispute resolution under them, and only resort to the sovereign when that system fails. Kind of like an l two, that's fine.

And if something goes wrong, you have you're raud proof and you go back to the l one, that's what we should be building. And there's some, you know have to shout to clarus, which is one of the early projects in this space that's attempting to do this. I don't know a lot about them, and I haven't seen progress from them that makes me think that they have already cracked IT, right? So and there should be like fifty things on the slide, and they're the main one that i've found.

We need these systems of dispute resolution that are private, that are low cost, that are accessible, that are technology native. We should be building that. Now the other thing that private arbitration and private law doesn't really solve is this.

This quote is either from mark areas or aristotle, depending on who you're listening to and may from neither because who knows, poverty is the other of crime. And so you might say, Peter, this is a ridiculous talk. Your bike got stolen.

You're not going to like bring them into some distributed justice court to get your bike back. And there's a lot of truth to that, especially because the guy who's hard on his luck enough to pull a bike over a ten foot concrete wall, he probably doesn't have. We know many resources.

He's probably or and that means society is already failed him, which LED to this problem. And me try to go to the court to get like vengeance, or to get paid the cost of the bike, or to get the bike back. If he hasn't sold a yet, good luck with that, like he might not even have the money to pay me.

He's what we call on the law judgment proof. So we have the big problem here that we also need Better social safety. That's Better welfare systems.

And the short point I want to make is it's a bad idea for the tyranny ani state to be the source of the welfare system too, because the only way they are gonna means test things and get idea of who deserves a welfare payment is by learning all the intimate details of our lives. And that is just as dangerous as any other totalitarian state. Then if IT falls into the wrong hands, so we need appear appear welfare system.

I think we need a welfare system though i'm not an anarch. I'm not an anarchical vigilante who's like i'll just live in my compound because that guy definitely shouldn't be in charge of welfare payments because, well, he just wants to protect this stuff and what happily shoot someone who shows up in front of his world compound in the apocalypse of the future, right? I want the middle.

Build me the middle please. That's what this talk is about. And you know, if we take down my metaphors because they're just avatar ars, if we stopped talking about the puritans, the totality in nani state on one side and the scotch irish, the and arc baLances on the other side, they're actually the same person.

It's a flat circle, and a flat circle is embodied by the car. So if you think about the little kid in the car, they're alienated. right? Why are they alienated? Two reasons.

One, their parents made the kind of narco lonner choice to choose as their default tive transportation, this steel and glass cage that travels at sixty miles per hour through neighborhood. D, instead of being social and they're strapped to a chair that's facing the wrong direction and can even see where they are going because of the nani. Steve, it's a little bit of both.

And so I want to leave you. I think I have one minute left, man. I did not expect the time that that will got lucky.

I want to leave you with a quote that lives rent free in my head by shop and hour. It's called the porky ines delima, sometimes the hatch hogs dilma, because we can't tell these animals apart. One cold winter s day, a number of porcupines huddled together quite closely in order through their mutual warmth to prevent themselves from being frozen.

But they soon felt the effect of their quill on one another, which made them, ouch, move apart. Now, when the need for warmth once more brought them together, the drawback of the quills was repeated. ouch.

So they were toast between two evils until they discovered the proper distance from which they could best tolerate one another. Thus, the need for society, which springs from the emptiness, ss and monotony of men's lives, drives them together. But there are many unpleasant and repulsive qualities and insufferable drawbacks once more drive them apart. And the mean distance which they finally discover and which enables them to endure being together is policeman and good manners. Thank you.

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