NEARCON 2022 | Nightshade Stage - Day 3

Captions as YouTube publishes them, usually machine-generated, so product and people names can be misheard.

1. 0:00

   good morning everyone it is day three the final day of near Khan I hope you had a great time the first two days I hope you had a great breakfast you had a chance to look at all our booths at The Gamers lounge and that you participated in yesterday's sweat coin token generation event ladies and gentlemen this morning we're talking about oracles oracle's on near and the need for on-chain data and speaking to us today is Lindsay Crawford from proximity labs and she

2. 0:35

   will be moderating a panel with Jasper de guzier from flux protocol Mike Kyle from fifth data Association and Mitch gildenberg from switchboard welcome good morning good morning and thanks for coming to learn a little bit about oracles on near so um with me I have Jasper from Flex Mike Cahill from piss data Association Mitch Goldberg from Swiss Ford so Mike let's start off with a little

3. 1:19

   intro and background on you yeah sure um so I had a traditional Finance career for about 15 years I worked at Morgan Stanley and a couple of other trading firms in FX and then I moved over to jump crypto where I started working on Partnerships and that got me into joining the um the board of the Pitt data Association where I helped the The Entity Drive the development and the advancement of the pith Network awesome and Jasper

4. 1:52

   um so I have more of a traditional startup founder background uh dropped out of college to start my first business um that was involving a lot of data analytics building on the Facebook API but I always call Facebook the original ruggers they kept changing the API on you we were unable to like build sustainable products kept having to like plug holes over being able to innovate

5. 2:16

   and that's what attracted me to crypto in the first place like taking a technical Deep dive into the immutability of smart contracts and the fact that once an interface is there you'll be able to interact with it forever started building products in crypto worked on ethereum scalability for a while and yeah build a bunch of products on both Ethan there awesome and Jasper the Jasper's house if he wants to go again though that's fine start it over yeah start over yeah um yeah I'm actually a computer security

6. 2:48

   engineer by trade um I was at Google for about five years I was a tech leader on app engine for a majority of that time uh but I you know had a friend that was uh very deep to the Solana space originally uh we built an oracle protocol there and we actually just passed 1 billion transactions on Solana and we're doing uh a big multi-jane push to really serve more the D5 markets uh cross chain awesome yeah so question number one for you Mike um what are your views on what Oracle

7. 3:21

   should do when there's a wide dispersion of prices on various exchanges cool good question so bit network is has been around for about a year and a half and it has a novel way to bring prices on chain they're streamed directly from the data providers the data providers consist of exchanges and trading firms mostly they're all considered first parties so they've got the legal rights

8. 3:45

   to redistribute them or to distribute them um and they push the data it creates a benchmark and those benchmarks are distributed um along with the benchmarks price itself there's something on the confidence interval and this is designed to include the dispersion when you've got disagreements on where the price is so at any given point in exchange in say South Korea may have a different price than binance would have on bitcoin and this is like widely known as like kind of the kimchi premium but there's other

9. 4:20

   reasons why you'll have dispersion so if you've got withdrawals that are or withdrawals or deposits which are locked on a particular exchange usually will see that kind of come out of line um so this gets combined in the in a pip Network and we end up getting this kind of Benchmark price and then during volatility you say all right this confidence interval actually represents the span with which you can reasonably expect any price to print so you get this consolidation because all the trading firms will use their smart order

10. 4:52

    routers to figure out all right this is where we expect the price to be and then this confidence interval which spans everything and it works out really well and what you can use as a protocol is you can look at this confidence interval and you can say all right I'm going to limit the decision-making criteria I want to take given the high volatility on a particular price so it's worked

11. 5:14

    really well with the debugging of UST the pith price continue to to publish for Luna and um and or and the the applications were able to kind of use that and make their decisions a little bit smarter super helpful um and with Jasper how do you actually prevent against Oracle manipulation um there's multiple ways to do it I think the most interesting way to look at it is within the context of a

12. 5:45

    third-party Oracle versus the first party Oracle um where you have a network of validators that you have query the data for a certain protocol at the endpoints that are selected by set protocol there's multiple ways to do it right like you can take a page out of the proof of stake book and build a proof of stake system with staking and slashing mechanisms in order to incentivize correct behaviors there is optimistic oracles that have these dispute

13. 6:17

    resolution mechanisms built in in order to have more more game theoretic security mechanism at the cost of higher latency for data requests we have sort of like a hybrid model for the next version of flux where we have a proof of stake system and a backstop of centralized relayers so um there is this decentralized consensus Network that queries data for the protocols that want access to certain endpoints

14. 6:48

    and in parallel there will be a relayers querying the same data request providing the same computation onset data and then just like with pith there's some sort of like trust assumptions that can be held from that and then it's up to the protocol to choose how they want to deal with the potential variation in in prices or data got it and Mitch which data feeds are you most excited to publish yeah so the whole model that uh switchboard approaches data feeds in is

15. 7:23

    that we are completely permissionless you know we think that permissionless Finance needs permissionless data so we actually offer a whole no code solution for people to spend up any data feed they want less than five minutes um and we originally built this with the strong uh uh Market towards uh prediction markets we thought bringing any data on chain could open up a whole new set of use cases just for uh blockchain in general so I think prediction markets still have a lot of

16. 7:54

    growth that we haven't seen yet and I think for that long till data that maybe uh doesn't have a huge demand overall but a lot of people could make these really new data feeds that are only for their own use cases is something that's uh they've got a lot of exploration left got it and specifically what use cases are they enabling uh what use cases are enabling well I think that uh if you say you want to spread on a sports game you

17. 8:19

    know any sports book you want to put on chain it can be done very easily without having to do uh these long-lived data feeds so a lot more ephemeral data uh things that are event based uh could really be popularized with this type of model and Jasper what's your approach to the number of Oracle validators yeah so uh within our Network there's different types of validator roles we have main chain validators that's okay if it's a large group of validators that

18. 8:51

    doesn't really hold back scalability um but for the data requests themselves a random subset of these validators is selected and those perform the actual like querying of the data request otherwise you could get into a situation where every query almost launches sort of like a denial service attack which is something you obviously want to avoid as an oracle um yeah like the more validators you have the smaller the chance that somebody will be picked as a validator more

19. 9:22

    difficult it is to perform a 51 attack but yeah it's a fine line that you have to it's it's for us it's Dow parameters that can be set by um token holders so you'd say that's how you keep it balanced or are there other ways that you keep everything balanced within this sorry is that how you keep this balanced is that like yeah yeah so that's that's a way to at least be able to make it configurable and but we've played around with it and it's yeah it's dependent on um

20. 9:56

    yeah just the what type of numbers you're talking about what types of API API you're talking about it's yeah and then another one for you Jasper what's the game theory for Oracle projects in a multi-chain world um what do you mean so can a great ethereum Oracle for instance also be the dominant choice on another base layer yeah I mean so that really what you choose as a base layer doesn't really matter the only thing is that if you choose an expensive

21. 10:27

    base layer such as ethereum the user ends up paying for it and the data is going to be slower so what you choose in sort of like the Hub and spokes model of a cross chain Oracle as your Hub um it's very important could be if but for us it's going to be near so we're using a near Shard to do checkpointing staking um validator selection that type of actions and then from there we use a bridging Network to bridge it over to other chains so would advise you to

22. 10:57

    build it on if no is it possible yes and then Mike as far as the future of oracles what do you see two to five years down the road it's a good question um so far we've seen like web3 has kind of gravitated to two main use cases one has been defy and one has sort of been nfts and that's still very early and you know yet to be figured out what the actual use case is most of the consumption for oracles has been on web or has it been on defy and

23. 11:32

    largely within crypto assets what we think will happen is D5 will continue to grow it'll expand Beyond crypto and it'll include real world assets and that's you know where the real value of oracles comes in because a lot of the crypto assets you can get some data on chain although it's a lot easier to game when it's on chain using an oracle service to link together off-chain data is actually much more robust but we expect that this will

24. 11:58

    expand and other asset classes we'll have we'll start to have some utility um we're pretty optimistic that there'll be other use cases that we haven't really thought of so we're going to focus within pith on expanding to all the market data that you could potentially ever want to use on defy and create this huge supply that Builders can then take and build something um you know Mitch is saying that that has said that they're finding a lot of utility within Sports data I think that makes a lot of sense

25. 12:27

    um so I can see that being an area where we see a lot of growth um people have oftentimes come up with um prediction markets um I don't know that those are necessarily going to be super super popular but I could see something like that coming about and then there's all the kind of long tail of like weather options that you know a farmer might be able to use in a third world country that they haven't had access to in the

26. 12:51

    past I think those are possible but I think they'll still remain very Niche so um you know I think it'll be kind of a power law style distribution where you know the big use case is mostly D5 will will take up the large majority of of usage and then they'll be kind of um Niche products for uh for other things and then Jasper what are your thoughts on the future of oracles um I think that a decentralized ecosystem deserves a truly permissionless and decentralized

27. 13:22

    data source as well I think it's sort of if we look at it a lot of people think that the Oracle problem seems unsolvable and have sort of given up on it if you look at a lot of the projects using a lot of the oracles that are out there today a lot of them sort of give up on it and just like they just agree that this is just the way it is over the fact that um there might be something better a better solution and I'm pretty I find it very cool to be surrounded by people that also want to build towards that that future

28. 13:55

    um and then regarding sort of like the the types of data that I find very interesting what I think the utility of oracles is going to be so we've always explained what we're trying to build here as the HTTP for web3 a cross-chain data standard that allows you to query any data from any smart contract so it could be should be able to be anything but I'm very passionate like I entered the space actually building a prediction Market um because I was passionate about the

29. 14:20

    idea of long tail derivatives so the farmer is one but also uh we actually started off with startup derivatives so allowing people to go long or short on certain startup Milestones like funding rounds that type of stuff that's stuff that I would love to see um for me it was sort of like a pain point that it got hijacked by sports betting immediately like as soon as we build our prediction Market which is something I'm not as passionate about

30. 14:43

    but I'm very excited about the um the sort of like the possibility of like derivatives of anything basically right like you see a lot of uh projects trying to build real world as a real world assets on chain which I don't think is the way to go for crypto at all I think the way to go is actually to use off-chain data which is also almost like real world asset in order to create derivatives of those things that they

31. 15:07

    want to uh basically have exposure to and Mitch what's your take on five years from now in the Oracle space yeah so I think five years now from out there'll be I don't think the Oracle problem is going to be solved I think there is going to be an increased amount of customizability which is you know of course where the direction that we're taking I think that no Oracle provider can actually predict the downstream U

32. 15:33

    cases use cases or volume that any data feed really needs to be supported by so actually letting the user configure all of that and actually configure the risk forward for the oracles that they're using is going to be uh the ultimate goal so I think there's a world where every person making a data feed chooses the Integrity of the data they're bringing on Jane and then Mitch some oracles have utility tokens some do not what's your

33. 15:58

    perspective on this yeah I think you have to have it just about justify all the use case to make a utility token uh you know we use native tokens for all the chains that we are supporting currently and it actually makes gas cost calculation uh a pretty clear cut because the people making data feeds are actually the one funding all the updates supplied by the Oracle so if you want to actually decide when Oracle is that proper and send them to provide an

34. 16:22

    update to a data feed you need to know what reward you're giving the Oracle versus how much gas they're paying and it's much easier if there's a one-to-one conversion rather than converting the token then converting to Native token um so as long as it's a clear util clear benefit for making a utility token I am pro-it but we have a lot of positive benefits of using uh a native token currently great and Mike what's your take on that

35. 16:47

    as far as oracles having utility token and or not yeah so um you know if you just take web 2 Data or look at web 2 Data um the biggest difference between that and like what I would consider web 3 data or or Oracle data is that the Oracle data should be secured and so the proof of State network is is a really good analogy that's what pith will will be using each one of the data providers will be required to stake there's a

36. 17:17

    native token for for pith in order to do that and then there's the benefits of rewarding for good behavior and penalizing for bad behavior that makes the entire system more robust more robust over the long term I think that's the right model for oracles because if you don't have this reward mechanism you have free rider problems you also have a whole host of other areas where you could be attacked and so over time the greater that that stake becomes the more secure that that

37. 17:48

    data is and there's one kind of unique way that the model has been positioned if there's a a major Oracle malfunction or a Black Swan event as we've written about in the white paper you can actually bid out the amount that gets slashed to Consumers so basically they can pay this premium so that in the event of this Black Swan event they can receive this this uh this slash stake and so it actually gives them some some consolation on being extra secure

38. 18:20

    got it um and then Jasper for you as well what what's your perspective on on token or no token yeah I think that a lot of um a lot of crypto networks and that's what we're talking about here we're talking about Oracle networks need a sandboxed environment that's reflexive based on the performance of that Network so I think it's very important to have a sandboxed economy in this in the shape of a token that represents how well the

39. 18:45

    Network's doing and also that's being used to reward good actors and punish back deck to Bad actors I think that's that's a great Point um yeah and then yeah it's meant for security I get the insurance model as well but uh yeah that's that's how I see it in for Oracle specifically and specifically I guess going back to the start for you Mike what really made you passionate about getting into the

40. 19:09

    Oracle space What drove you here yeah yeah um we were analyzing the problem and um and looked at some of the existing Solutions and we didn't think that they could scale um and so my my kind of take on it is that the model of taking data from the internet as like a third party either from scraping or kind of signing up to apis has it works obviously well in the early days but it has some limitations and we think that those limitations will cause problems as more and more millions of people get into kind of the the

41. 19:44

    crypto world one of the problems is if you're not getting the part the data first party then you're limited to the selection of information that is available to that third party so you wouldn't be able to get confidence intervals for instance and you might actually be throttled in the terms number of updates that you get so certain intermediaries like to throttle to only have say One update per minute or or every say 10 seconds so that's one constraint and the other

42. 20:10

    constraint actually comes out to on the legal side of things um if you want to bring highly regulated Market data feeds on chain you have to be very mindful about the intellectual property ownership so pith supports U.S equities and that's a market that in the traditional space Market data for U.S equities in like the five to ten billion dollar a year Revenue business and so if you just go take that data and bring it on chain the

43. 20:41

    person who's making that money is not going to be thrilled so when we were thinking about it we thought well how do you solve for this kind of problem and if you solve for this really well then you'll cover all these other asset classes and um we we went kind of down this Airbnb approach which is create a place where anyone who's got data that's lying around can contribute to a benchmark

44. 21:07

    price and so that's why the composition of data providers for pith is not just exchanges but it's trading firms it's the largest trading firms in the world so there's jump Jane Street Susquehanna drw HRT and so on they've historically just been consumers of Market data and they've bought it but they actually have tremendous amounts of data that they can use to contribute and so the pith

45. 21:30

    network was designed to unlock these kind of spare resources that were you know just sort of sitting idle um and um and and sort of make them available for you what launched you into the Oracle space yeah a couple things so the thing that made me want to solve for it was that uh we were building like I said in a prediction Market space and initially we were just not very pleased

46. 21:54

    with the uh security of the some of the um yeah sort of the available oracles at that time uh we took a deep dive and we found that there was a lot of the security that was promised was pretty much obscured and not very public that there wasn't any security um so and then the other Alternatives were just too slow for us to use so we were looking at a better solution and that's when we started diving into the space and while doing that we realized that actually most of defy today

47. 22:27

    is not decentralized because the data source is most of the time pretty centralized at this point which in my world or like in my view means that the Oracle the centralized Oracle actually holds custody over your funds because they have the ability to rug you if they wanted to which is something that goes against my principles or the principles of defy in general like I that's the one

48. 22:50

    thing I love about is like the idea of being your own bank and being able to hold full custody over your funds and knowing that a system will act according to the rules that it was designed to do based on math and science instead of trust assumptions right so yeah that's a problem we wanted to solve for and that's a problem that we're working on right now awesome and what about you I know we only have a few minutes left

49. 23:14

    Mitch but we we could cut it still um yeah no kind of in line with what uh Jasper was saying I wanted to build this as a sort of Need for uh things that I was interested in building myself um before I actually started this uh uh switchboard here uh I actually made another program that scraped Instagram for finding most popular locations uh in certain cities and it was very cool because uh my cousin was actually running a butter business at the time I found him the most popular bakeries in

50. 23:47

    LA and uh I think having available data enables a whole new set of applications to be built on different platforms so we saw a need to build a very customizable Oracle uh origiano and near with overwhelming requests so we want to build uh support those builders in the next generation of applications because they need the data to really build uh all these new Solutions I know there's a big social push for near right now and I think that there's many many use cases that we could help with there

51. 24:19

    awesome well Mitch Jasper Mike thank you guys so much for Lending us your expertise this morning um everyone enjoy the rest of the conference thank you for having us thank you thank you for this insightful session on oracles on near next up we have Mark Collier and Paulina aladina from on Machina who will be talking about the data storage quandary welcome right good morning everybody morning everyone nice to see people actually come to this talk after all the

52. 25:25

    parties yesterday that's nice all right so my name is Paulina and this is Mark Mark has a vast experience in Cloud ecosystem of book two and mostly in openstack yeah and Paulina has a deep expertise and cryptographic math and studied in the university and so we are bringing together uh web 2 and web3 to do some interesting stuff in storage so we're going to talk about it this morning thank you all for coming

53. 25:57

    so I want to start with uh a little trivia question for all of you Pop Quiz wake everybody up so this quote was once upon a time set by the CEO of Amazon at the time and he made this bold claim that 95 percent of all technology spending was still on premises not even in the cloud yet so what year do you all think this quote was from does anyone want to guess Paulina you want to guess well we made

54. 26:29

    his presentation together so I can spoil it only okay well that you're not eligible okay so this quote was actually from this year and Andy jassy CEO of Amazon said this on CNBC the giant business Network so why would he actually say this well I think in in particular on CNBC I think the message that he was sending to investors was if you think Amazon and Amazon web services is big now it's going to get much much

55. 27:01

    bigger right we're very early in the cloud game it's been growing everybody's moving to the cloud but Amazon web services can get 20 times bigger if they just maintain their market share as everything moves to Cloud over the next several years right and so if we look at the actual market share breakdown in Cloud even at five percent of Technology spending it's still 180 billion dollars so it's it's a lot of money it's a huge market and as it grows 20 times bigger it's going to

56. 27:35

    be trillions of dollars and if you think about Cloud as this trend the last few years it's really the biggest Force for centralization ever and the history of of humanity and it's it's really an oligopoly today so you have two or three players if you just look at Amazon and Microsoft together that's more than half the market so it's almost a duopoly right so it's it's a massive Force for

57. 27:59

    centralization and if we extrapolate that out and see where we're going in a few years if all of technology that we rely on for the global economy is in the hands of a platform owned by two or three companies personally I don't think that's a very uh optimistic future that's not the future that I think is going to be the best for all of us and it's certainly if you care about decentralization this is not a great thing and so what does that actually mean right for

58. 28:28

    for blockchain why should you care if you're into the crypto space yeah like the problem becomes that half of the Bitcoin lightning Network nodes are actually hosted on Amazon web services even more than that if you go to Amazon website trying to get a note running you will see that it actually says on their website that 25 of all the ethereum workloads are also run on Amazon web services and that's kind of becoming the

59. 28:54

    problem that big companies make it super easy to host the notes on their websites and then you can just go make it work rather than having like your own service rack and have your node and special dedicated computer to run it you can just do it in couple steps and there's great companies and yeah actually why would that be a problem such a nice user experience right so here we see a

60. 29:17

    Twitter founder of tornado cache this is very recent actually August this year so if you're not familiar with tornado cash this is one of the most used mixers in ethereum network they're evm compatible maybe there are another chains as well but if you're him is the biggest one and yeah what you can do with tornado cash you can send the money in you receive a receipt you generate absolutely new

61. 29:40

    address and you can withdraw your money in small chunks so it's actually a money laundering but it's also a privacy and unlimited tool so for example vitalik used this to donate money to Ukraine in an anonymous way so no one can actually track these wallets so yeah and they just started at 2019 there was his first run on the ethereum network on 2020 they actually launched a Dao and all the founders have no longer access to any of the treasury or

62. 30:11

    actually the protocol itself like the Dow can vote on all of the updates can vote on money withdrawals and so on in case of emergencies and on August this year let me actually quote it uh the office of foreign assets control of the U.S department of the treasury blacklist at tornado cash making it illegal for United States citizens residents and companies to receive or send money through the service so pretty much anyone who uses the addresses of tornado cash that are book listed are automatically a suspect for money

63. 30:42

    laundering red flags anywhere knocks on the door and things like that so pretty much in one day the U.S government made this project disappear and this is what how they look right now so even though this protocol is decentralized it hosts on ethereum network you cannot actually like block the ethereum network in full and access it they have a Dao that governs it so Founders do not really have access to any of those funds and the code base is

64. 31:08

    gone right now as just mentioned in Twitter like you guys cannot access this anymore and the Dow cannot actually do something with protocol because all of the people in Dao will be automatically blacklisted in all their services and people start knocking their door so yeah like you cannot access the app even if you can have a website because the website is blocked as well so and this is another thing that

65. 31:32

    happened this July June actually so there was a cloudflare outage for about half a day and yeah talking about websites it's just the same as we've seen with tornado cash if you have a decentralized app but you don't have a website like nobody can use it what kind of user experience we're even talking here and yeah very decentralized great work guys so it's kind of not the First

66. 31:57

    Leap in technology there is internet and internet was supposed to be like everybody hosting their own website on their own servers so you can visit your friend's website and it's by by default was used to be decentralized but nobody ever used it like that and right now we're like using Facebook and Instagram and things like that so it kind of repeats the story out there actually

67. 32:19

    talking about front ends like there are solutions for front-end problem that are decentralized right now but none of those are actually being actively used by developers like you can only wonder why like why do you think it is because there is a lot of problems of actually calculating the price for running your infrastructure and yeah like this is one of the things there is most Google when I like to Google how much would it cost this is what I get like about 80 percent

68. 32:48

    of Google response out there and this is the answer why because most of the blockchain runs pricing on their tokens and as you know tokens are volatile and this is the graph just for the past week right before the conferences we made it that's one week only yeah it's not even a year like it's about 10 slip right there you can go it goes 10 almost 10 percent down and then back up again so yeah and this

69. 33:14

    is what makes developers very angry you cannot even estimate pricing you can estimate it for a week you can not estimate it for a year how can you do a startup if you don't know how much your infrastructure costs and this is a major ux problem that web3 has and it's not actually that big of a problem in web 2 but yeah probably we need to ask Mark like what's the problem with web 2 where is just Amazon out there or Google or

70. 33:39

    Azure yeah it's a great question and I think that um you know Paulina talked about some of the challenges that that are holding back web 3 storage solutions from from really getting Mass adoption one of them being the volatility of pricing pricing it in in uh native tokens and at the same time so that that's made it difficult to really challenge Amazon for infrastructure right at the same time there are a number of companies that that aren't in web 3 more traditional Cloud hosting

71. 34:10

    companies that if you go back a few years we're actually larger than Amazon and so there there are a lot of companies out there trying to provide more Alternatives so that we're not stuck with an oligopoly right but the trend is not great and if you look at these companies they have been able to leverage a lot of great open source so most of them run Linux openstack kubernetes so they've they've been able to utilize open source as a way to kind

72. 34:36

    of put together a competitive offering in the market and try to give us alternatives to the the two or three companies that dominate but they're really not making the right Trend here right and I think that the reason that they're not that they're falling short is they're not able to fully coordinate their efforts and provide a unified experience to developers right they may use the same open source tools with

73. 34:59

    similar apis but there's slight differences in the way they Implement them so in at the end of the day they don't get those Network effects even if they're using the same software and this is really a failure of economic coordination these companies are trying to kind of put together a Coalition in a way to give us Alternatives but the trend is going in the wrong direction it's really a lack of economic coordination and providing a unified

74. 35:23

    experience for Developers and so this is really uh not the the best time for us to be heading towards two or three centralized providers especially when it comes to data because we're doubling the amount of data that we need to store as humans every two or three years this year it's about 95 zettabytes in three years it's going to be 180 zettabytes so we need more and more data

75. 35:49

    pretty soon we'll be at yottabytes which is the the next upgrade in in size and so this amount of data really demands more more options than just the uh the two or three that we're all heading towards if we don't build Alternatives right and so that is exactly what we're doing with on machina we are building a decentralized storage Network for Generations zettabyte and based on you know our background and our look at the market in understanding what the web 2 Technologies do well and don't

76. 36:25

    do as well and the web 3 approaches have done well and not done as well we're trying to bring those both together and I think in addition to some of the issues with pricing volatility with existing web3 storage a lot of them don't actually meet all of the requirements that people actually have for storage right and this is another reason why so many people just end up on Amazon S3 I mean if you look at many projects out there even if they utilize some web3 storage they almost always

77. 36:54

    have a backup on on Amazon S3 because that's meets the fundamental requirements that everyone has for storage right you can be in web 3 idealist really believe in decentralization want to see that world come true but at the end of the day if your application goes offline or isn't isn't reliable you don't have enough capacity you don't have the performance your users expect then you're going to have to go back to web 2 storage so that's the approach we're taking with on Machina we're building really good storage first

78. 37:28

    blockchain second if you will so we're we are utilizing near as our blockchain uh for that capability to give you true ownership true control of your data but first and foremost we're going to build really really solid storage that's reliable and so that's I think the happy Doge that we're looking for the happy dealership here is where you build storage first in blockchain second

79. 37:55

    rather than token incentivized and blockchain that works nice with token but glitchy with everything else so yeah and that's Happy those in a in a nutshell and so you know I think we are going to tackle the pricing issue by pricing it in stable coins and giving people predictable pricing if your price goes up and down every week every day it's just really difficult to make a plan around that and rely on it and incorporate it into your business so we're we're focusing on uh stable coin

80. 38:26

    pricing which we think will be the right approach and in terms of all the different use cases that we want to support in the markets for different application developers out there over time we're going to grow to support a lot of different use cases starting with backup And archiving also digital assets I think are a really natural fit for a web 3 Storage decentralized storage

81. 38:49

    Network like this and then over time you know more consumer facing apps like online storage and ultimately cdns I think will be very very disruptive use case for decentralized storage Network and that is exactly what we're ready to build and if you'd like to get involved please contact us we're 100 open source we're getting started now and if you would like to connect with us we got our contact information up here this QR code will take you to our Twitter you can

82. 39:19

    follow us on Twitter and we're really excited to build on Machina the decentralized storage network and to do it with all of you and your support thank you thank you thank you for introducing us to on makina the decentralized storage Network next up whoops sorry about that dramatic uh entrance but the next up is the economics of zero knowledge proofs with Anish Mohammed from Panther

83. 40:24

    s okay so this is work sorry oh green one oh thank you apologies good morning everyone I follow these my stupidity is clear I can't even get a clicker to work I'm going to talk to you about your own knowledge and uh secondly I was under the impression as I have 25 minutes so unfortunately I only have 15 I'll try cover the talk as best as I could so the idea I was thinking is like how do I price uh you know zero knowledge I said

84. 41:18

    like if I have to construct as it are not as proof for a protocol having the larger scheme of things can I figure out how much does it cost computationally how much does it cost economically so I was thinking backwards how do I think about it from a D5 perspective so I have a protocol which is providing previously for D5 and I'm using the Ronaldo's proofs so how in my head am I making this calculation right

85. 41:41

    can I make privy can I give privacy while providing D5 in an economically viable form so everybody knows D5 very good paper to read if you are interested but in summary what I'm interested in uh you know transactions where it's public but I want to have certain information private uh classic case Market making okay somebody wants to sell somebody something somebody wants to buy something there's a gap between the two you have somebody in between who does Market making okay so

86. 42:13

    what happens here so there are classic bunch of automated market makers that are there in the market but there are a bunch of security issues as well right if you have a strategy and if you want to deploy it then you want to keep your Alpha that's not going to happen you absolutely are going to be ripped the moment it comes out somebody will deploy uh you know a subgraph on the graph copy your trade and depth of the market

87. 42:35

    disappears okay so how can you prevent this so a bunch of guys Alex and Guillermo see these guys actually noticed this and they said you know it's pretty much impossible to actually have privacy in constant function Market making so the suggest to three things add some Randomness so essentially what you're trying to do is if you have a constant function Market making you in you know X in device are constant get X get Y and that's how it is so you randomly change

88. 43:06

    it so people can't find it then you batch a bunch of those transactions uh okay so this is batching like take a bunch of them and batching actually has a bunch of delay you get the average price not the specific price so you get an amount of privacy and uh what's this thing okay the other thing that was proposed was try differential privacy right and differentiate privacy was put forward by the same set of folks this time Talent was the primary author and uh glerma was the third author

89. 43:35

    literally what differentiate privacy is this so you make some tiny changes to the data set so the overall statistical properties of the data doesn't change but you can preserve privacy right and now I need to switch gears to kind of explain the cost of having decentralization in general everybody knows what decentralization is oh my decentralization thing okay so the way I describe is the following imagine you have a leader election protocol providing consensus so if you have a lead election protocol and you're doing

90. 44:07

    the same function as a centralized protocol you cost the Delta of the cost is a leader election protocol so if proof of work what you're trying to do essentially when you do proof of work is to do some randomized reader electron fairness I showed leader election protocol with a security margin okay so that Delta is the cost right okay so there's this Constructor previously mining that you know you have to have there's a cost for actually providing privacy like imagine I run a privacy protocol and

91. 44:37

    there's just one person in this room so providing a zero knowledge shielding doesn't give you anything so I need to have more incentives for people to come and stay in the room so this is literally what it means by a privacy mining in a journalist mining context right okay so I'm gonna flip the gear and try figure out in a reverse sense what does it really mean to understand privacy from a data perspective if any of you actually have read the paper I I am assuming okay I remove I remove the paper but

92. 45:07

    this is what it is there are three things that you need to have if you want to have a machine learning algorithm to gain some Advantage number one is the hardware number two is a model essentially humans to build a model third is the data and the data is the mod right so essentially what is happening is in a world where there is privacy and world with no privacy so you can have a machine learning algorithm that has access to all the data and that is an advantage compared to a machine

93. 45:31

    learning algorithm in the world where there is privacy you don't have access to all the data okay so the price differential between the two is the real question we are asking and is this the price that we have in the market and can we use this price as an indicator is there anything left on the table if you have to do this and apply zero knowledge so it's an economically viable protocol

94. 45:53

    this is essentially my question okay this is the paper I was thinking about the only usual effectiveness of data right this is a bunch of guys from CMU and uh Google they're kind of saying three things and I've kind of described it oh sorry again so this is what I was saying right there's this construct of a data Arbitrage right you can actually play this game against the protocol so as

95. 46:18

    long as soon as you actually find out you know this is the price you know it's very open so you can have a whole bunch of advisory again and I talk about a second order once but just ignore that just think of the first order think of the possibility that you have a machine learning algorithm and you can you have a two-legged strategy you sit across a private World in a non-private world and you play this game across okay so in general there's this question

96. 46:44

    about how do you really price data right it's a non-trivial challenge so biggest problems that we actually have is if you have a random set of data how do you know this is original how do you know there are no copies how do you know that uh you know access to data doesn't mean a copy is not being created just random things small things but random things but very very hard problems right

97. 47:08

    but typically speaking you have this curve that exists right there's like the possibility of having what I call Extreme privacy and uh there's this a scenario of I wouldn't really agree with this graph but this is the nearest to what I can think of right you shouldn't ever assume that if you have zero previously there's maximum utility there is always this Arbiter who actually sits in between that actually takes the utility out of you and this is the reason why we should consider privacy at least in my mind so the curve

98. 47:40

    that gets to this part of it literally you're never you as a user are never actually going to get the full utility out of it there is somebody who's going to pick your data run a machine learning algorithm run an Arbitrage against you and then take profit out of it so think Google think Facebook you're never going to get the maximum utility right but the trade-off is like very very

99. 48:04

    important now Switching gears now I'm going to talk about zero knowledge so simple description of zero knowledge uh this room has one one door in that sense so everybody comes in here so assuming I want to prove to you in zero knowledge that I have the ability to get outside this room without using the dough I could randomly pick somebody from the audience I have my friend imath

100. 48:26

     have the ability to get outside this room uh without using the dough so I am the prover he's a verifier he comes in imagine there's a door and uh he just lets me in close the door waits for five minutes in five minutes time if I'm seen outside this room then he knows for a fact that my claim which is actually the thing I'm proving that I have the ability to escape from this room without using the dough that's a

101. 48:49

     zero knowledge I can run this protocol as many times as I want I've been in the two of us but he would never find out how uh you know how I escape out of the row this is this classical explanation for us so yeah my summary thing would be like if you're really interested there's this piece that aliens hasn't wrote It's called Cambrian explosion crypto proofs very interesting insights in the sense like it describes how proofs have

102. 49:13

     evolved over time I kind of took a bunch of them so I can explain things uh reasonably well how many minutes do I have Okay so going back in time in history uh you know in the late 70s you know publicly crypto was born and before that there were like some other cryptographic Primitives that are around mostly were symmetric Primitives the Semitic Primitives include hash functions block ciphers stream ciphers and stream Cypress and block ciphers have been around for a

103. 49:43

     while if anybody is interested in history you can look at Enigma and crypto analysis of enigma it'll give you a very good history of classical group analysis in that sense and what has happened is in the late 70s there was a introduction of public encryptal and then a whole bunch of new things as possible so prior to having a public crypto if you ever wanted to have a secure communication with someone you actually have to meet someone or have a channel set up that you trust whereas in

104. 50:13

     the case of public key crypto what has happened is now you only need to trust the map I'm not saying trust them out but verify it right at least once you have info people verifying it you know for a fact that you can securely communicate with anybody once you know the public key right so you're a public and a private key and you can actually communicate with anybody without having met them that's the key and uh different kinds of cryptographic Primitives keep

105. 50:38

     security to public key cryptography one is elliptic curve the other one is integer factorization given a very large number uh find the largest prime factors that's the integer factorization an elliptical essentially means like if you have a random point an elliptic curve how many times at this point jumped around that's considered like a difficult problem to solve the first one is proven to be in an NP but this is

106. 51:02

     assumed to be as hard as that one okay so oh let me just go back can I go back yeah so you know if you think about the economic value that's currently being held behind this set of all problems right you could actually think about hash functions like one of the things that most people kind of forget about is like all of what we do is pretty much based on hash functions okay the security of function hash functions is a security on which everything on top sets

107. 51:34

     blockchain yes our signature schemes yes uh uh you know phones yes you know make a list of everything you have that's the total value that's out there if the if ever there were an attack on a hash function and the hash function is completely broken we would have a real real problem okay and I should also say in the world of zero knowledge we have a slightly different class of hash functions we use because the hash

108. 51:58

     functions like sha it's a kind of bit difficult to implement in over an elliptic curve it's very messy so we have like things like facility and other ones so if you're interested said you should probably have a look at Z price and me and my team are involved in that particular competition which is like implementing hash functions for zero knowledge Okay so so the way I would describe it is slightly easier okay this is how it is so 1984 85 three people Shafi gold was

109. 52:31

     a third person name I forgot the name different they actually had a paper describing azero North so everybody thought it was a silly thing to do nobody accepted paper they were rejected Thrice and suddenly you know after some time somebody realized ah this is useful you could actually prove something without actually you know having to reveal any information so there was interactive zero knowledge right so this is this remember me talking about integer factorization

110. 52:56

     there's a related problem called uh quadratic reciprocity so you could actually use that to prove certain lensing interactive such and then what has happened is like somewhere along 2011 there was a scheme that was created that has actually non-interactive okay interactive versus non-interactive is like imagine niada Coral dough and my name is kind of mapped in such a way that every room that's there basically

111. 53:19

     if it's a one I have the ability to escape from the room with the zero knowledge interactive protocol if it's zero I can't escape right so essentially by running a protocol and getting a commit against all of the rooms you would actually know whether I am the person in zero knowledge or not effectively that's like a applying a feature metric on an interactive protocol okay so that's literally what happened and then there was improvements the first to the

112. 53:43

     schemes to evolve was Pinocchio in 2013 I think then Z cash was produced and then in between there was a growth growth 16 was produced and then what has happened the stock was produced it's like October 2017 the stock paper was produced by Ellie Benson the guy who wrote this thing Okay so this is a very interesting uh article I would recommend you look at it because like this gives you like a pretty good idea of what is involved and actually doing the math behind uh zero Knowles right

113. 54:15

     so uh how do I describe this this is kind of like at a high level again there's been a lot of blurring between stocks and snacks that has happened so in the past there was a clear definition of snacks uh stocks that actually use fry and the security for that pretty much came from hash functions so they are quantum resistant in a sense like imagine tomorrow if you have a quantum computer with enough of gates to actually run shows algorithm ensures CQB ensures algorithm

114. 54:48

     and a finding Cycles in an abelian field is linear what that means is even if you increase the size of your keys you still will be able to decrypt it in linear time essentially what that means is you could decrypt all of ethereum all of Nia all of Bitcoin if you have access to a large enough corner computer right so stocks are resistant to that you know you have to in the best attack is Growers attack so Growers attack is

115. 55:13

     searching in an unsorted database that's a square root and speed up so it's almost equivalent to about the attack right so this is kind of what it is so bulletproof use in the factorizations stocks use a hash function if they use fry and snacks actually use the ellipticals right I was describing the two classes of problems that are supposed to be hard one is in digital factorization another one is like elliptical one point jumping on a curve

116. 55:39

     right so the the knocks and stocks have kind of merged so if you look at the later versions of schemes that are come out so for example Halo 2 flunky they've all actually started using the two things together I'll oh God this is kind of okay summary uh I think when I converted to PDF this is all lost if anybody's interested I'll send you the high resolution one so uh summary is like if you are looking at a normal protocol a layer one protocol I've taken the case

117. 56:08

     of ethereum because I've I've been I've already deployed one uh one of my schemes on part of the protocol on ethereum I've deployed part of the protocol linear as well I haven't optimized it so you know comparison won't be fair this is kind of optimized so I know what it is so in general the highest upside you can see for zero knowledge is like for Roll-Ups but if you actually do recursive Roll-Ups with ZK right and like a typical transaction is like a 400k kind of gas kind of situation

118. 56:41

     right okay so there are two classes of math that you really require to do ZK one is ffts this is a fast Fourier transforms anybody who has done Digital Signal processing you should know what that is it's just multiplying large numbers using some random switch okay and other one is called uh multiscala multiplication right so if you're really interested in multiscaler multiplication I would recommend you

119. 57:06

     actually look at this they are looking at an fpga implementation and trying to make zika's really fast now you might ask me why are you talking about this this two sides to this argument one is the real compute cost and the other is the time question so if you could do more you could actually have more transactions and in any layer one you can then you know overall over a period

120. 57:28

     in time have a much lesser cost because you have economies of scale if you do 10 transactions in a block and your block is going to cause X the cost of one transaction is X by 10 right so if you could do 100 you get one order of magnitude less if you do two you know thousand you have you know three orders of magnitude less so this is the thing that I'm saying so it's like the faster you are you actually get advantage of scales

121. 57:52

     Okay so and this is typically how this normally translates to you so the thing that we're saying is category wise as I said there are a bunch that are stocks and there are bonds that are snacks and there are things that sit in the middle right polygon Hermes is a good example right fry is a polynomial commitment scheme and kind of what it's trying to do is get the best of both worlds okay I should probably explain one thing before

122. 58:19

     I go for any further first knocks we actually require a setup and uh what that implies is like if you if any of you have come across zcash and the problem they have had in the past is like they had some problems with their setup process okay so there's a bug in the whole map they had done and so it was arbitrarily possible for somebody to Mint as many as they want so that problem as in like the setup problem is

123. 58:42

     kind of avoiding a stock okay and uh also there's the size of the proof like the size of the proof is slightly larger and not all computations are as fast as knocks so if you combine both you can actually almost get the best of both worlds that's what they have tried to do so in general so if you look at stocks there are more like a fft kind of computation and if you look at more like a plonky and all the rest of them the plan schemes which is like this called all those teams over here the Aztec guys

124. 59:13

     uh you know those two guys are the guys who actually created the scheme other people improved it and that there are a bunch of other ones that are around so they have a more multi-scalar multiplication right what is this thing okay so if you think about this in a very large sense uh you could actually have gpus fpgas and R6 same thing that applies to mining more or less applies but uh there's a higher IO requirement input output requirement so it's kind of

125. 59:43

     very hard to actually optimize for Asic in a fuller sense and yeah these are the kind of all applications that are there I am more interested in providing privacy entifi and looking at the D5 part of things so the previously apps are the things that I'm really interested in right so I'm kind of in a place where fpgas and gpus really make sense to me so this is my conclusion so first and the foremost thing I always say to anybody is there is no such thing as free lunch

126. 1:00:15

     if there is computation you're going to pay a cost for it and privacy is something that's going to be understood uh in an economic sense it's like if you are going to provide privacy and it's going to be so expensive nobody's actually going to have it right and the other thing is I competing with uh centralized systems again is non-trivial so most of us actually think about privacy we think about zero knowledge in a decentralized manner if you ever think about competing with once a system it's generally

127. 1:00:48

     speaking challenging and current Tech current crop of text that actually provides privacy uh I don't think they are in a stage where they could really compete with everybody else and cost that's my two cents so apparently you could ask questions I know I've been really fast and I'm so sorry about it go for it I think it was like really a deep dive but what's actually your product what are you like essentially selling Okay so

128. 1:01:34

     I'm saying a couple of things firstly if you look at the cost of finding uh cost of running GK the cost of running ZK has to be always if you are doing that for privacy it has to be always below uh in the Arbitrage so I am trying to price the price of privacy so I have two worlds where one world they actually have no privacy another world there's privacy and there's two machine learning algorithms that are running there's an Arbitrage between the two of them that's the total space I have so whenever I

129. 1:02:08

     build an algorithm that has ZK that's that's kind of my assumption there should be something left between the two so you can actually really economically viable sense run it otherwise you can't and all the tools that you have available are the tools I mentioned and I kind of gave you an indication of what the cost is for doing most of the things that make sense okay yeah you mentioned um different Hardware requirements um for doing ZK computations

130. 1:02:48

     um do you mean that we need to add more Hardware on the validators or do we need to run off chain uh additional Hardware thank you so I I had a slide on this but I removed it so this is what you can do that's a couple of solutions you have number one is like you can add Hardware custom hardware and you can accelerate the compute as one number two is you can actually do delegated proof computation so Patrice mistro actually from Elio actually gave a talk

131. 1:03:18

     uh and that kind of describes how you could actually delegate the compute and you can from a browser for example you could then use an NPC mechanism to delegate your computer someplace where there's hardware and you can do the compute so there are trade-offs again goes back to the thing I was saying it has to be economically viable it has to be within the bounds of network latency and computational latency if you're going to do something and you have to

132. 1:03:42

     wait for two minutes course so you mentioned cost of doing ZK should be less than the Arbitrage profits for I guess the default use case but how might one think about the cost of doing ZK for other use cases that's outside of D5 so like what's the the incremental cost that people might want to pay for privacy in other use cases okay so I'll be very honest that's a question I don't

133. 1:04:22

     have an answer to I've actually done a lot of analysis for D5 because I've been working on D5 but my general sense is a following nobody actually goes to a McDonald's to buy a smoothie but they go to McDonald's to buy a burger when the Smoothie is a Delta and they they really don't see the the massive cost so that would be my basic assumption if the cost of the Smoothie is greater than of the burger which is essentially the utility function we fail so for me in B5 I have

134. 1:04:53

     a reasonable amount of what I can go for but in general sense imagine an identity scheme it's pretty much impossible for me to find the pricing right so I'll be honest and I'll tell you a friend I don't know somebody should do a PhD thesis on this thing and figure out what you know it's very useful for society if you think about it privacy is a basis of democracy and if you don't have privacy

135. 1:05:16

     your vote is known to everybody else and having seen Cambridge analytics and seeing the effect of it globally I would say we as Humanity we as a civilization especially the western civilization should really understand the cost I don't know I put my hand up and say I don't know all right thank you um so you mentioned uh some ZK Roll-Ups and the scalability benefits that they provide now I know that this happens on

136. 1:05:48

     ethereum but how does this port to things like near and possibly other blockchains as well has that been implemented yet so I'll be very honest I knew uh the Neo team is actually working on things because the last time I talked to Elia he was saying they are interested in zamzique but I don't know exact state of FS so what I have done for my project which is Panda protocol you got a grant we deployed our protocol onto near so Aurora actually has solidity

137. 1:06:20

     compatibility so all the libraries are there so I honestly don't know in general if you are an L2 if you want to have a sorry L1 you want to have L2 as in like if you're a layer one as a blockchain and you are a layer 2 optimization mechanism then if you want to have the benefits of zero knowledge Zeke rollers will be the path to go again I am not suggesting anybody should do anything

138. 1:06:47

     thank you very much oh I should leave this thank you Anish and the great presentation on zero knowledge and the economics of zero knowledge proof we were going to have a short break of five minutes and please come back in five minutes where we have uh someone coming from El Salvador to talk to you about a little bit more than just Bitcoin in El Salvador there are 400 million small and medium-sized businesses in the world this represents 95 of the world's

139. 1:07:38

     companies and 60 percent of all workers while larger businesses have access to Capital at very low interest rates a staggering 50 percent of smes borrow from informal sources often at rates in excess of one thousand percent apy Acumen and near have partnered to change this near singular focus is to enable the most user-friendly and real-world impactful blockchain-based applications Acumen is solving a real problem faced by smes access to Capital using the near

140. 1:08:12

     blockchain Acumen is able to connect Global Capital providers and smes in Emerging Markets with minimal friction by working together Acumen and near are able to effectively Bridge activities in the off-chain world and the on-chain world while keeping users on each side focused on the problems they are trying to solve which includes funding their business for off-chain users and access

141. 1:08:37

     to uncorrelated yield for on-chain users Acumen leverages defy to power microfinance globally and is a Pioneer in the use of D5 to address Financial inclusion Acumen believes in defy and do good and empowers smes in Emerging Markets by providing access to Capital at reasonable rates while providing stable uncorrelated returns to the D5 Community through its protocol Acumen has successfully implemented its seed Capital pool in El Salvador and is now

142. 1:09:11

     working to expand and scale the Acumen model first in El Salvador and then globally this is how Acumen using D5 for good has had a positive impact on the daily lives of these people my name is Maria foreign

143. 1:10:33

     until 2022 your investment has changed the lives of thousands of people and we are just starting will you join us to make the impact even greater we are partnering with industry and governments globally in introducing the Acumen model to achieve a positive impact on citizens lives across the world well Acumen being one of the Pioneers in El Salvador in bringing Financial inclusion to the smaller micro company they are competing on the level with the

144. 1:11:04

     ushers who are charging 30 and 40 percent monthly interest with Acumen strategy they have the ability to offer much more cost-effective loans much more flexible loans without the traditional intermediary paperwork and without the long-term bureaucracy that is involved with traditional banking Acumen has transformed the lives of Maria ziomara and Gabriella they wanted to take the opportunity to thank the crypto

145. 1:11:36

     Community who made their loans possible is Christian is Acumen is using defy to fundamentally change Capital markets by making access to Capital more Equitable by bridging defy with the traditional Financial system we are providing new opportunities to thousands of small businesses and stable D5 yield to the crypto Community you can help to create equal opportunity in our financial system and a better world for all join

146. 1:12:42

     us today thank you everyone for coming can I just say this is one of my favorite topics nice uh Financial inclusion you know helping to bring what is it now I know it's over a billion people that are outside the formal economy I'm sure that number is much bigger and I think it's just fortuitous that we are having this conversation because my background is in fintech and for anyone who has also been or dabbled in the fintech space that was the first thing that fintech wanted to

147. 1:13:21

     address Financial exclusion and you had all these incredible companies trying to pierce through all of the challenges in Emerging Markets some of them succeeded but a lot of them failed this one okay a lot of them failed so it's interesting that we are sitting here talking about a project that has been incredibly incredibly successful a project that I thought that fintech would have been able to deliver but hasn't so there's a

148. 1:13:56

     couple of questions I want to ask you the first is tell us a bit more about Acumen it's one of the most successful Investments That proximity Labs has you know invested in and basically how did you manage to bring it to the masses the way that you have um because again trying to introduce new technology and Innovation is a very tricky thing to do especially for those who are normally not well educated you know a lot of the smes that we spoke

149. 1:14:32

     about are set up by women mostly women who are not you know again not financially literate but you've been able to do that so can you just tell us a bit about that the company and how you've been able to deliver that Tech sure absolutely um I my work focuses on uh attracting foreign investment into El Salvador as it relates to technology and Innovation so when the Bitcoin law passed and and as you may know it passed by a super

150. 1:15:05

     majority in Congress a lot of companies came migrated to El Salvador in fact we we were hit by an avalanche of companies from Singapore from the US Europe the rest of Latin America and we couldn't keep up you know we were not expecting the Global Response that we have in terms of branding in term in terms of opening the doors to all of these companies that were selling shop in El Salvador and Acumen came

151. 1:15:38

     and it Incorporated it became a Salvadorian company right because it Incorporated uh there and they talked to us about their project which we found absolutely compelling 70 of the population in El Salvador happens to be unbanked that should give you an idea of the need that people have that small businesses have like the ones we saw over here the taking not to the banking request a loan because they would not be able to get it and they have to rely

152. 1:16:11

     they have to depend on loan sharks and these Loan Sharks not only abuse small businesses and you know regular people like like you and I but they charge fifteen hundred percent four thousand percent you know interest rate I mean it's incredible and that is a cultural problem because it happens not only in El Salvador but also in the rest of Latin America hence why micro loans are a good business in Latin America at the

153. 1:16:42

     same time when we spoke to to Acumen we saw right away the opportunity to deploy something that we knew was going to be beneficial for our country hence why you saw the head of the SBA which is you know basically the small business administration uh uh signed an agreement the government signed an agreement with Acumen and we are giving them giving them our whole support we are hand-picking literally hand-picking the

154. 1:17:13

     projects that we want to work with a lot like I said a lot of companies have migrated to into El Salvador but we're not necessarily promoting or applauding all of the projects because you know some of them are are fantastic like Acumen others are okay and others are so so but uh based on the fact that there is a huge need for these types of loans we decided to go ahead and and uh work

155. 1:17:40

     hand in hand with with argument so what sets Acumen apart from the other companies that have tried to come in because I think a lot of the companies who are also probably trying to take advantage of El Salvador because he took such a big gamble becoming the first country in the world to introduce Bitcoin as legal tender we wrote a lot about that last year um it's uh success has been variable but

156. 1:18:05

     we can talk about that a bit later but what set Acumen apart and how did you get people on board because even trying to explain defy crypto to people that are outside of our bubble is really hard but here you are working with Acumen and they've onboarded thousands of people so tell us how that was achieved as well well actually the the program is barely rolling out and it's uh we're going through a pilot process right now which means that Acumen is

157. 1:18:36

     giving these loans offering these loans to a certain number of people I believe it's 250k right now for the pilot and the goal is to deploy about 10 million dollars for small businesses so we're at the beginning of the process we haven't really reached out to the entire population and the goal right now is to reach out only to small businesses when this program rolls out for the entire population that actually has a need for

158. 1:19:06

     a loan that they can not get otherwise then I think that's when we're going to see a real change in El Salvador and if it can be done in El Salvador it will be done in the rest of Latin America and perhaps other markets around the country and I also want to point out about the fact that you know you asked me um what sets Acumen apart from everybody else we um every project I get through every

159. 1:19:30

     company that meets with me because they want to come into El Salvador and they want to open an office and generate jobs Etc and obviously sell their products and services there I I can quickly identify after a year I think I can quickly identify whether or not an idea is going to be successful or not and as soon as I received acumen's proposal I said no this is this is something that we need to put in front of the president and and that's the way it happened so we sent the information

160. 1:20:03

     to the president Acumen an Acumen representative ended up meeting with president bukele president bouquet loves the project and it gives you an idea of number one the fact that this is all being a need and number two if it's working hand in hand with the government then obviously the project has a higher success rate absolutely and just getting back to that question about how you onboard people so that that you know that video did

161. 1:20:34

     capture in essence what the average SME looks like you know older woman or younger woman with children a lot of dependents not very well educated um how do you on board them so do you go to communities and ask around and see who needs a loan and you know they apply given that there's a high levels of illiteracy rates as well or do you connect with them by the room of our phone how does it work that's a very key question um the reason why we decided to do an

162. 1:21:07

     agreement with document why the government basically signed an agreement is because we wanted our SBA the small business administration which is really called konamipe the National Council of small businesses we wanted our entity that is that has thousands and thousands of small businesses Affiliated you know to to them we wanted our entity to help Acumen identify those small businesses so it's not that the Acumen goes on the street thing you know and basically offers the loans to uh the

163. 1:21:40

     entrepreneurs they find uh everywhere it's really a well-organized well-orchestrated effort where the small business administration is basically uh pouring putting this um uh offer on the table for the entrepreneurs that might have a need to to get a loan and that's the way we're doing it and um let's talk a bit about authentic as well so I spoke with someone from the company and I made the mistake of saying is this a fintech company I said no this

164. 1:22:12

     is a D5 company so I want to ask you well why isn't it a fintech and why does defy work better in this circumstance as opposed to fintech definitely I think fintech is just a a broad a more General concept you know name for a lot of the startups that are in this ecosystem if if not all of the startups right Financial you know finance and Technology yes Acumen fits that category absolutely but why is it a D5 company

165. 1:22:47

     simply because the loans are being generated from crypto so a lot of people who are a lot of investors who believe in the project are putting money into it but this money is coming in the form of crypto so it is D5 automatically because of that and at the same time if we talk about decentralized Finance uh oh and I want to point out really quick that it's uh it's crypto the investment is in crypto the loans are in crypto but they're backed by stable coins so

166. 1:23:22

     if we look at that other premise then absolutely it is D5 we're talking about decentralized finances and I I guess it's uh actually having this D5 built on the near blockchain as well takes a lot of boxes as well when it comes to sustainability I would imagine as well the transparency of being able to record everything is also a big advantage in a place like El Salvador which doesn't have like sort of the best reputation when it comes to you know transparency so I think that's

167. 1:23:54

     really good in helping to advance the economy too and probably will encourage more investment as well in the country going back as well to the Bitcoin situation so again it was super exciting to see El Salvador introduced as legal tender last year what was the reception among the people in in El Salvador were they excited about it and one year on what is the situation like sure when the Bitcoin law was announced when

168. 1:24:29

     the president actually announced the proposal of the law and he sent it to Congress I think for many of us who have been in this space for a long time I invested in Bitcoin in 2014 but but then again I begin technology for over 20 years so I happen to be a special case but I want to say that perhaps the majority of people in El Salvador some of them might have never heard a bit you know about Bitcoin others might have might have heard about

169. 1:24:59

     Bitcoin in the past but perhaps had an investor or didn't think of it as as a way of uh transacting right so when it happened part of the population was in favor of it because simply we understand that this world is going towards D5 that is if not the present it's the near future and I I can say that a lot of people were excited yes there is a part of the population that perhaps were not that

170. 1:25:33

     excited about it because they didn't understand what Bitcoin was they didn't understand why El Salvador was adopting Bitcoin as legal tender if we already had the US dollar and they didn't understand many many other things and that's okay and it's valid because we live in a democracy and there has to be an opposition you know who who might not like the decisions that the government

171. 1:25:55

     takes but overall after a year I want to say a few things especially in the area that I um that I gravitate around which is Investments a lot of companies have come and invested in El Salvador they have moved they have opened offices they have generated lots of jobs for our people and you can see this ecosystem growing and growing by the minute to the point that we have been able to form to create what we call

172. 1:26:28

     a Bitcoin and blockchain cluster which means that it's a it's a group of all the companies that that are in the space but they have to be situated in El Salvador in order to be able to be a part of the of the cluster Academia and government and these three sectors are working together in order to make this ecosystem even stronger so it's it's really a country's project it's not just the governments you know project I think there will be leaving a lot of people in our ecosystem you know even

173. 1:27:02

     perhaps at this conference that may not see the need for a country or for a government to adopt Bitcoin as legal tender or any other coin for that matter but we decided to do it this way and we're seeing a lot of benefits already including uh like I said Investments however we are aware that without education there won't be Mass adoption and even though we're only 6.5 million salvadorians inside of the country and

174. 1:27:33

     3.2 outside there still needs to be a lot of Education it will be a slow and long process you know nobody can can expect to say that after a year of adopting the law everybody is making transactions you know transacting with Bitcoin is it's not going to happen in any country there has to be an educational process yeah and then the only reason why I'm bringing up the Bitcoin question is because Acumen is a D5 project and I think maybe it worked to your advantage to have had introduced

175. 1:28:06

     Bitcoin a year before so people became more familiar with the idea of actually being able to transact and and see a future for themselves using cryptocurrency so that when you decided to embrace the Acumen project the more or less kind of understood that you know there was a different way of transaction there was a different way of actually being able to interact with well not

176. 1:28:32

     traditional financial services but because they've been shut out but but certainly there is an alternative um so I also want to talk a bit about um so acumen's plans Beyond El Salvador so it's very ambitious you know idea that you can grow rapidly you know and and move you know throughout South America tell me what you plan to achieve in you know in El Salvador in the next six to 12 months

177. 1:29:02

     and what the future holds after that I think um well Acumen is one of a few projects that were definitely promoting right because we're like I said we're hand-picking those jewels that migrated to El Salvador and made our country their home and now uh they're ready to to take off an Acumen happens to be a very good example of that I think the goal is absolutely on board as many small businesses as possible

178. 1:29:33

     those that are unbanked those that there is absolutely no way they can get they can obtain a loan from the bank and give them that Capital that they need so they can improve processes grow expand Etc if that argument if that process succeeds in in El Salvador and I am absolutely certain that it will succeed then the same thing can happen in the rest of the Central American countries all of

179. 1:30:06

     Latin America and many other countries around the world especially in Africa you know where where there is a need and the microfinance business has been proven so I think it's really it will be a matter of onboarding for the next uh 12 months so again I just I just want to wrap my head around the onboarding process so I let's say I'm in South Salvador I run a bakery and I want to get a loan I'm approved for a loan this

180. 1:30:33

     is a face-to-face interaction correct correct it's not through a mobile phone no okay so I get improved for a loan and now how do I pay back do you use Leverage The Power of the mobile phone so every month I make a micro payment or do I have to go to a bank because D5 there is no sort of physical infrastructure is there so how does it work correct the advantage that we have is that like I said we're working with

181. 1:30:58

     the small business of our small business administration the government's entity and they have thousands and thousands of small businesses so from that pool you know the small business administration tells all of those businesses we have explains basically what Acumen is what they would like to do what types of loans they would like to to offer any then again I'm an entrepreneur and I have a small business and I'm in need of

182. 1:31:24

     this loan then I'm going to apply to it the idea is for Acumen to get to that point where they will have uh where actually entrepreneurs will be able to get approved on an app and uh and receive the you know the loan otherwise she wouldn't it wouldn't really be fintech you know in a way but I think the process of identifying the businesses that in theory should be the hardest part but we're making it easier simply because of the agreement that we

183. 1:31:55

     have with uh you know between the small business administration and argument and I think that's the way forward it's like human interaction and actually it's why it's been so difficult to sell crypto and defy to the mainstream media because I think we've done a terrible job explaining it and if you're going to embrace this in really exciting project there's going to be a lot of investment and time needed to onboard them through education sitting down with people

184. 1:32:25

     explaining what the process is I have one more question before we wrap it up and it's all about sort of the microfinance model so I had uh you know the Good Fortune to study a bit on the subject and microfinance it doesn't necessarily work everywhere I mean you think okay we've got all the ingredients let's set this up in sub-Saharan Africa let's set this up somewhere in India and now in South America but it doesn't

185. 1:32:50

     always work tell me what it takes to run a successful sort of microfinance project and how D5 fits into that education bottom line education why because I can tell you that in El Salvador The microfinance Lending business is successful in the same way it is successful in the rest of Central America and I want I dare say all of Latin America number one there is a need there there are a lot of people who happen to be unbent so there is a need

186. 1:33:23

     already number two a lot of these companies and that are uh that are in the business of micro lending go out of their way to educate people in regards to interest rates yes they're high but you know they they at least people will have access to um to this money to Capital they do a lot of Outreach a lot of marketing uh it's the message is constant therefore I think for Latin America and especially for El Salvador that that business is successful

187. 1:33:56

     it might not be the same casing other countries like you mentioned India although I I've read a lot of articles about uh how micro lending is in some areas in India is successful and I think it has to do with culture as well you know if people have been relying on let's say I my mother had a small business and she was never she she was she never had access to the bank to a bank account and I inherited that business and I I learned that I

188. 1:34:26

     could get a loan from a loan shark or one of these places where I can you know I uh I can knock on the door and they will give me some money and the interest rate is going to be high then I I will follow the same pattern and perhaps my daughter if she inherits the same business and she will do the same thing so I think it's in our case in El Salvador I can surely say that it's a cultural issue that we have I see the

189. 1:34:49

     same thing in the rest of Latin America and it has to do with the fact that there will always be a need because of our economies I think you got the mix right government support um education is very important and the best technology around those three things are Salient ingredients for for a really good project so thank you very much for your time thank you everyone thank you for joining us and uh congratulations and Acumen for this uh for this achievement bye thank you so

190. 1:35:20

     much thank you Monica for this inspiring talk and how we can bring blockchain for greater good for microfinance micro loans and helping the ecosystems thrive we're now going to have a short lunch break so we have about a 30 minute break please enjoy the lunch enjoy the boots go visit all the different Regional Specialties and see you back here in 30 minutes hey everyone hope you had a good break I hope you got to try some of the good food out there uh it's definitely getting better every day

191. 1:36:10

     um so I'm Marcus near Foundation I do community and ecosystem growth it's great to have you all here we have some awesome talks coming up we now have uh Danny Osorio of meadowweb Ventures she's going to be hosting a panel uh titled not your parents Facebook rebuilding social media and web 3 should be very interesting thank you everyone for joining us here today uh I know the last day is the roughest I'm Danny Osorio from Meadowood

192. 1:36:56

     Ventures I am your moderator for today um I want to remind you there's an amazing after party tonight with a killer DJ that may or may not have been revealed so keep your eyes peeled for that uh welcome to not your parents Facebook hurts a little bit since you know I may have been in one of those early Facebook testing cruise but we're going to talk today about rebuilding social media in an age of web3 and I have today an incredible

193. 1:37:26

     lineup of panelists joining us on the stage please come Cox from connect three Fernando from realize and Christos from blockchain wonderful so can we just start off by having each of you introduce each other so um Christus maybe you can begin yes uh so um I'm the lead bike and engineer at capture social which is a company that builds blockchain a decentralized bloating platform uh where basically we are trying to build a place where sensible discourse can happen on the web

194. 1:38:11

     amazing Fernando yeah I'm Fernando I've been on this I know years and years already I'm founder and CEO of relays dot IO and we are basically a comms protocol and we're trying to solve some of the problems within video conferencing chat you know file anything that is really comes and we came up with a solution a web 3 video conferencing call people calling the web series Zoom you know but it's a

195. 1:38:42

     lot more than that yeah we are cyber security guys and we do understand you know what has been happening around you know across the world with all of these apps yeah so we decided to have a take we we've been in crypto for a long time and we do understand technology well so we decided to have a go at it and we pretty much that yeah you can use it anytime you want no actually it's in beta at the moment but you can use it okay so uh I'm Cox so we build

196. 1:39:12

     connection is an open social layer inventory and uh we uh on the upper level uh we enable users can own their uh identity and create uh distribute monetize and have a social interaction uh read on their Creations on their profile and uh we also have an open social protocol which enable uh not only us but also all the third party platforms or developers to easily plug into our social protocol to read or contribute the social data into the protocol yeah wonderful thank you for that so I

197. 1:39:51

     guess let's go straight to the heart of it social media is like definitely very very broken uh and I think the incentives have been really really um inverted not really in favor of the user I remember at the very beginning of Facebook they told us they were never going to harvest our data and then at some point that sort of changed and you know we became the product and so I think what all of you are building is a

198. 1:40:17

     bit of a reaction to that Paradigm of the first set of social media platforms and so I'm wondering um maybe like Christus you can kick us off but what do you think is most broken with uh the existing forms of social media that capsule is looking to overtake like why why make a decentralized medium so let me tell you a small story back in 2020 when kovitz track uh there was this

199. 1:40:49

     thing this theory that kovit was created in lab in China I mean this is it's not the point of discussing this Theory itself but people were posting about this theory on Facebook and they were getting banned they were getting silenced or uh sometimes like the post was taken down even without the user's knowledge and up until the moment the White House said uh yeah this might be plausible and we have reached a point where

200. 1:41:20

     actually governments and big tech companies dictate what we can or with what we can say on the web and that Revelation was actually one of the reasons that we founded capsule so something that censorship resistant exactly okay but here's the counter argument because I spoke to the Facebook engineer that made the algorithm that was designed to identify fake news right and stop misinformation from spreading again because there is nothing to take

201. 1:41:50

     that down so how do you how do you then handle um that kind of you know Community Management and like public you know I don't want to call it public policy but it is it is something related to like protection of the public from there there are two kinds of content that might be let's say uh controversial or utterly not acceptable so there's the the content that we say okay it's not acceptable to be anywhere on the planet I don't need to give examples okay and

202. 1:42:26

     there is this Con the condom that it's either controversial or fake news we are not for ex we are not a free speech platform as in you can post whatever you want weary platform where we have a Content policy but this content policy is enforceable through smart smart contracts in a transparent public Ledger that anybody can scrutinize and check hey did this uh this moderation action was justified or not

203. 1:42:55

     and I believe this way people can we can provide a better way to moderate content on the web and there's the other side of uh like as I said fake news for example and we believe there that by providing a platform for sensible discourse where you can like post a blog and then a counter block can be posted that counters what it said and we give a prominent position for these counter arguments on the platform we can provide the way to uh instead of silencing different

204. 1:43:27

     opinions giving a way for people to just discuss them okay very cool and Cox can you tell us a little bit about how you're thinking about the data coming from all of this and and um maybe what is the difference between how social media platforms are collecting and using data today versus how you see that happening in the future with web3 yeah uh so I think in the traditional uh

205. 1:43:52

     social media uh users uh like the data they're uh at their profile and their generated created content uh will be all used towards uh the user embedding or we call it it's like attributes about the person so which will be used as a ads or the content recommendation so that's why the big companies like Facebook or Google uh so that's how they make money right they use the user's attributes using embedding to to do the ads to run ads but I think uh in uh in web 3 it

206. 1:44:29

     could be a totally different Paradigm so all the data or content we generally involved to are in the centralized servers of different uh platforms but in web 3 all the data or content uh in the wallets are in what is on different blockchains so I think uh in the future uh in Webster world uh the data can be better uh aggregated or analyzed all the launching and the identity user view with with uh like uh the techniques like ZK roll up uh they

207. 1:45:04

     the user will be able to uh control their uh content or their data or their identity to uh to control who can use it or even monetize their user embedding and so we take back the data sovereignty back to the user and they can better utilize their own data to everywhere as a recommendation for uh for monetization or for any uh there would be a lot more use cases of that okay great so are you saying that um it becomes an opt-in decision for the consumer whether they want to

208. 1:45:45

     participate with the ranking algorithms or selling their data to advertisers um not uh obviously advertising would be uh one case of that so before that all the uh like the incentives or the benefits would be um more uh they're the large percent of that will be taken from the by the bank B companies but in absolutely I think this could go back to the user and uh yeah I really like that idea of advertising Revenue share with the user I buy a lot of things that Instagram

209. 1:46:17

     shows me I don't know why it seems to be a trend so if I could get part of that that'd be kind of cool so yeah not only I mean not only advertising maybe the documentation the you know the monetization the com I monetize my own created content and the the let's let's take openly example they only take like three around three percent of the of the share uh of the revenue uh but in Facebook that was 45 so that's a very huge change in the in the in the revenue

210. 1:46:47

     cut yeah and do you think that in the future um I as a user could put all my data in my backpack and move it somewhere else if I didn't like the platform I was on anymore yes I think uh it could it's just a go go Visa user and you can use any platform to maybe to to take the uh you could just take a service and the service uses your data but the data always belong to yourself that's very cool um and let's talk a little bit about the different formats um I know that you know we talked a lot

211. 1:47:19

     with um the live pure team yesterday about video Trends transcoding and putting that into nfts into the internet um what do you see right now as Trends with like video related content Fernando and what that's going to look like in web 3.

212. 1:47:34

     yeah we have to look uh we have to think about what really means web 3 okay I heard this saying sensitive resistance but when you start to look a lot of people what they are doing uh by not even having or the what they are doing open source at some point yeah I mean it's the same thing as Facebook you know the guy says oh yeah we have a bot that is you know detects whatever you know it's fake news or misinformation but it's missing what they consider misinformation

213. 1:48:09

     yeah which we found recently I don't think it's what they consider misinformation I think it's pretty tangible it says this piece of news has been debunked by these very reputable news sources yeah and we go back so that's pretty objective but that's my point exactly you know I mean who are those new sources I give an example very quickly you know it was last week that Facebook and Twitter retracted back

214. 1:48:34

     something that they censored was fake news that um natural immunity was stronger than the vaccine and they now retracted but they were the first ones to censor that so yeah I mean I think algorithms aren't perfect right like we all agree that they were well that's right so in web 3 you cannot have anybody to control what decide is what it is real or not or is true because otherwise that trustfulness that exists in blockchain in crypto yeah we're not constructing anything

215. 1:49:06

     different from web 2. so in web 3 first of you have to start by saying we're going to make something open source and it doesn't matter if it's video or not yeah it is any content so you need to get back to the users the users are going to be able to decide you know why don't you let the users create the algorithms you know that's print plenty of geniuses out there PhD guys that can just come up with

216. 1:49:29

     something contribute to open source project for example in in video and what we do in terms of comms we are going to make everything open source so that people understand it's really secure we're not with censorship resistance because extremely important the way the world is going at the moment it's it's Madness at the moment you know so having control of your data it doesn't matter if it's going to be through um an avatar or you know whatever people come up there's cool stuff coming out

217. 1:50:00

     but you have to give that back to people people can create the assets for anything that you want yeah and they can contribute with those things so by doing this you can achieve a true web 3 revolution in social media otherwise we're just gonna go there it's a mix they are already on Facebook you bring up an interesting point which is the revolution in social media so crystals maybe you can talk a little bit about how you envision a revolution happening with web3 technology so I believe the the problem we have

218. 1:50:33

     right now with web3 is that it's overly complicated with our users and for somebody to get onboarded on a web free and a decentralized application he needs a wallet the user needs uh to know what smart contracts are what transactions are buy some crypto which is uh so many steps to go to a trading app and by crypto anyway it's a complicated thing and thing is with web 2 applications our parents

219. 1:51:07

     don't know what exists behind it don't know that there is a smart contract behind the web3 or on Facebook they don't know what that their existing server a database or whatever they know what they do they push a button they publish a post and I think we need to reach a point where this happens on web3 too we don't need to educate our users to web3 we need to bring web3 to the users and that's what we do actually on blockchain we've tried to create an

220. 1:51:40

     experience where uh the UI is familiar we have to do the web 2 user it's and let me be honest like and most web3 apps haven't focused on the UI and that's Justified because it's difficult to build the all the the backend structures behind it but now it's the time okay actually one of the things that first drew me to explore near was that it was the only blockchain platform that had really prioritized the user experience as something that was mission critical

221. 1:52:11

     rather than an afterthought I was like yeah that makes sense people need people to use the thing that we build and that's why we we chose near actually to build on it uh to build a platform on the air because to onboard the user it's uh very easy you don't need an extension you don't need metamask to to be onboarded and I believe this way people who are uh in our mission statement journalists

222. 1:52:36

     people who have to say something to be heard who are not web 3 Specialists will use our platform to provide their content that's really wonderful I think you make such a great point about abstracting away uh some of the challenges the user experience and I definitely think that's going to be Mission critical for web 3 platforms to move forward um Cox do you want to tell us a little bit about how you see Innovation with data moving forward and maybe how the

223. 1:53:08

     user experience can impact that as well yeah uh I think uh the uh so uh the first thing is as a we the the data is in Webster is different it's on a different model so all the data right now is fragmented in all the Wallets on different blockchains so the first thing I think we should do is to aggregate all the data and we make meaningful connections between them so by meaningful connection I mean between people and people people and the content

224. 1:53:41

     and people and services so this could be a social graph or interest graph so we generate Insurance Group uh on on chain and by their uh by their own chain both own chain and off-chain data or the generated content but all those data or interest graph goes back to to the user so they own their own things so when we uh so with the interest graph I think we can we can do a lot of interesting things like I can recommend your the content to you that you may be interested in and uh but without without

225. 1:54:13

     the you know the the you still own the data and you can use the data to um to decide what you wanted to uh which platform you you can can see your data and which platform cannot and also visitor created content I think uh it's better the the create content in a traditional platform all goes to the platform themselves but in future in web 3 the con absolutely belongs to user so that they can bring the content with them to

226. 1:54:46

     whatever platform they want to use and the the rules yeah the rules of course is set by the platform but the the user will definitely go to the platforms that they prefer uh so um yeah so that's that's uh that's also I think I agree with uh Crystal about that the best way is for us is to um enable user to take the benefits of web3 without letting them know or without letting them feel it's hard to oh there is a

227. 1:55:15

     barrier so so yeah so I think um the the from product wise it will be the as easy uh to use as the current any web to uh apps but uh under the hold we use a Technique we use website technique to ensure that users own their own things and we can take their they can control their privacy they can better utilize this technical to do their own things okay that's very cool so here's a

228. 1:55:46

     follow-up question uh something different in web 3 from web 2 is that all the data is public if it's on the blockchain so we have transparency so does that mean I can see my friends data and what data can I see what could I do with it could I get like some Alpha as to like what and if he's all my friends are picking up how could that work uh how could I have to work um no just the transparency of data like okay all right will users be able to see everyone's data does it mean that every action we take in Social now is public

229. 1:56:19

     to everyone or how do you see that yeah so I think there there are there are ways to uh to make make it private and we can uh we can just publish uh in uh in sacrifices as the data on on chain and only use the user with the with uh with a key to unlock it so yeah there are also uh like uh uh zero zero knowledge technicals to allow I know something but we thought I see that so that's I think there's there's always we

230. 1:56:52

     can explore to uh to enable both the openness of the data and at the same time uh it's the privacy of the data very cool very cool um so so kind of moving moving on from that uh one of the challenges we see really is how having these decentralized you know permissionless solutions that are built on centralized infrastructure so maybe Fernando if you can talk to us a little bit about the stack that you've designed at relays and you know what components of that are decentralized which components are still using Santa

231. 1:57:26

     Claus databases and what the plan for the future is yeah it's a good question and you see a lot of stuff there it's actually on centralized it's not fully decentralized a lot of it actually you know but you have to start somewhere right you start always centralized and then you just enable people to become nodes validators operators or whatever you want to call if you have any of that and you will see more and more of that because I've seen Solutions out there that they

232. 1:57:56

     are running on a server on AWS I don't want to mention names in One server in the US yeah so it's actually U.S Virginia East so what we need to do is to make sure that first of all the user understands where this data is yeah being control of that data and instead of having giving you the phone number the email you know like we have to sign on web to almost everything your entry is your wallet nobody knows well you might share with some friends

233. 1:58:29

     but then they'll know which nfts you have right so that's that's the thing here is that balance and you can actually decide what you want to share publicly or not yeah and by having that control then what attack itself right like you're sharing what you want to say but what about the stack like when you built this decentralized Zoom right yeah what is it built on so yeah what you need to do then is to make sure that you

234. 1:58:52

     have a network of node operators yeah that uh you don't need to create even your layer one yeah you just need to create your SDK wallet they stake it and they become a node operated as a minimum entry level and they do several things and we're using conjunction with a near smart contracts yeah so your public key from your browser with my browser with everybody this is just how we've done our stuff yeah plus your wallet enable

235. 1:59:20

     us to create a one session key an ephemeral session key on a near blockchain and then what you have these three layers of encryption where the not validators are just making sure the peer-to-peer in the routing but you know it's sustainable yeah and as the network grows it becomes censorship resistant so if any hacker any government tries to bring it to a node yeah they only see a stream that has

236. 1:59:46

     three layers of encryption then they have to go back and hack the entire near blockchain to be able to find you know how we've done that so it becomes very complex and very costly for them so you have to think whatever you're doing with data which is one of my favorite things by the way yeah um you have to understand and make sure the user understands how decentralized it is I

237. 2:00:09

     see your point about the blockchains themselves you know being decentralized but I think the challenge with something like social media is that it's extremely data heavy and you actually can't put that much data there's the Three Laws so the off-chain data is it living on decentralized platforms or not right data you have chain data depends there are many ways to do it yeah ipfs exists

238. 2:00:32

     and we are going to evolve I'm Gavin you know from talk it up said recently that we're gonna go through two two iterations of these it's still early for us you know yeah so so that's really great I mean Vitali calls it Progressive designation you know and it's the concept about expansion and definitely I think the uh social media of the future is going to go in that direction and maybe Christos you can tell us a little

239. 2:00:55

     about the stack that capsule social is using and how you're powering these uh decentralized uh Services through your stack to what we have created is a kind of different decentralized architecture than the one you find usually thing is when we because we want to provide what we said before like the familiarity of web 2 we want our users to be able to post articles without articles comments repos feeds without uh without paying transaction fees without

240. 2:01:30

     doing it an actual transaction on the blockchain and how we achieve that we've created a system where we have uh at this basically all the articles are stored on ipfs and we need an index for these articles a searchable index where you can like search them by tag by user by category by title and this index is stored on a decentralized database uh it's actually open source it's called rbdb and it's been used by a couple of projects and so whenever a user posts an

241. 2:02:04

     article after it is validated it is stored on our bdb and it then it is propagated to all the other capsule nodes on the network so whenever a user wants to access an article he chooses uh the node that the user wants to trust so because we are not talking about transaction data we don't need consensus that a blockchain provides for these articles so a user just chooses a note

242. 2:02:29

     she trusts of its integrity and reads the article that's stored on this note which theoretically will be all the articles on blockchain that's really cool and how do how do the capsule nodes handle the storage component so right now there's um it's each node stores uh content on ipfs so whenever you post an article it's stored on ipfs and it's stored on the Node itself but we are exploring other options such as file co-in and other Solutions what

243. 2:03:00

     we are going to do soon is we are now at the phase where we stabilize the platform and the protocol and we are looking to expand the network so soon there will be a way to incentivize users to host their own nodes and provide the content to readers that's extraordinary so you've actually managed to create a decentralized network to host all of the content that's powering this can you repeat that yeah that's really cool it's actually it's really hard to

244. 2:03:31

     see decentralized applications that are have an entirely decentralized stack that's that's I think that's definitely where the future is headed but it's very cool to see um you know how you're making your way there so since we only have a few minutes I want to end this by doing like a you know 30 second hot takes from all of you on what you think the futuristic social app of the future looks like

245. 2:03:54

     Fernando if you want to kick us off yeah all right look it's the entry is going to be a wallet you know no email no phone nothing you know you are in control of it you have an avatar the Avatar could be built by yourself it creates a lot of stuff that you can then use within the ID you know there's a lot of stuff happening around that and then you decide what data you want to make public because advertising is needed

246. 2:04:18

     Target advertising is needed but you are going to benefit from that yeah so you're gonna get the rewards if you share your data and not the Facebooks and the others so in decentralization is key to that if you really want to build a truly centralized use a combination of having a chain night near but if it makes sense yeah like we did create your own network of node operators so you you know it's very hard then to break you know what people try because people are going to be curious and they want to find more

247. 2:04:51

     things about you yeah it's very simple definitely Cox I think yeah uh I think um it it's bad that we can just use uh like web3 apps as easy as we just open the Instagram or Twitter on our mobile phone so normal user won't they don't need to know the techniques on the whole and but we use the uh like blockchain or that website Technologies to make sure user owns it owns their own things and uh

248. 2:05:22

     they can take a uh wherever they want to go and that is their their post will not be deleted for no reason so yeah that's that's I think that that would be uh for the next opinion of the mass adoption of the of the website apps that would would it look like yeah very cool Cox um closes off with your hot take so I think they will they will not be as different as we know them to be social media apps are tuned for human behavior

249. 2:05:55

     what we will see is uh ownership by the users and as all of my colleagues here said like decentralization and transparent algorithms things we want to know what's behind the scenes we want to know why did they see this post why did I see this ad and there there's uh we want to know which what data the app has for me so I think they're not going to be extraordinarily different they're

250. 2:06:23

     gonna be a fundamentally though changed amazing thank you everyone today um thank you for joining us thank you thank you yeah that was certainly a great chat thank each of you for coming up here it'll uh definitely be interesting to see how uh blockchain technology will shape how we know and use social media today uh this next speaker I'm happy to invite up here they have solidified themselves

251. 2:07:01

     in the space a strong advocate of crypto and blockchain Technology we have Lou Kerner of blockchain co-investors speaking on Lou kerner's thoughts on community okay thank you hello hello okay hey there we go um so I'm Luke Kerner uh that's my presentation um my day job is I'm a partner at a firm called blockchain co-investors we're a crypto fund to fund investing in uh more than 40 of the leading crypto VCS around the world we have a cryptos back um and you know and really enjoy that

252. 2:07:43

     but my passion is really Community whoop and the thing to change yep there it is okay let's go on to the next slide um and so how do I know anything about Community well my community uh lesson really started at bolt boat was an early social network it had been around since 96 VC poured 60 million into it and then walked away in 2003 I became the co-ceo with the original founder we had 500 000 students or 500 000 kids monthly uniques and over the next three years we grew it

253. 2:08:16

     to the largest social network in the world more than 23 million kids day-to-date Acquisitions talked to more than 100 kids about buying their company uh including being the first person called Zuckerberg and offer to buy Facebook a month after relaunched after bolt I did Angel Investing in and around the space uh ultimately became a VC raised a fund continue to invest in in the space in companies like Meetup and I

254. 2:08:40

     was actually investing in tech companies founded by Israelis when on June 29 2017 I saw the crypto light I've been crypto 24 7 ever since I first went down the rabbit hole in 2013 I joked deep enough that the Wall Street Journal wrote a story quoting me as wall Street's Bitcoin expert but I did not see it and it wasn't until June 29th that I saw it actually on a conference call that I put

255. 2:09:02

     on to learn about icos and on the call somebody said something had a Gestalt shift and I became the belief that for the first time in history we had a tool set to solve for the community instead of the man in the middle and I thought that that was going to be the biggest thing to happen in history and I was told that there's a clock I was looking around for the clock where is it is there a clock with the time on it well

256. 2:09:26

     I'm going to finish in time anyways anyways wrote I was in a manic state for three months after which uh I wrote a kind of my construct down a blog post called seven thoughts on crypto after three months down the rabbit hole was the most red thing on medium for three days tag crypto after which I didn't know at the time but medium ranks bloggers in more than 100 categories and the category of crypto

257. 2:09:51

     that was the most read thing for three days and according to medium I was the third most influential crypto blogger in the world after three months which did two things one it made me a guy in crypto and two it proved the first of my seven thoughts on crypto which I still believe today which is that nobody knows anything they were at the start of something brand new and it's all you

258. 2:10:15

     know unblazed Trail and my focus is is community so now I've been thinking deeply about Community for 20 years weirdly and I think it's now the most important thing in the world and I start well first you know what is crypto it's a series of Technologies enabling decentralization powered by community in my view there's also an ethos to web3 to me the best book that I've ever read on you know about crypto is sacred economics and and take good economics really told me for

259. 2:10:48

     me the ethos is that I really feel that I grew up in a culture of greed and I was taught that the more I take for myself the better and that made a lot of sense because I like taking stuff I was good at it but it turns out that there are other cultures of giving and cultures of generosity and for me that's the culture of that's what you know that's what I'm here for um but what is community I start with

260. 2:11:10

     what is community anybody want to take a stab what is community no okay so um it's really interesting to ask because it really does mean different things to different people um but you know regardless of how good somebody's definition is to me I I distill it down and distill it down and distill it down and to me what a community is is it's an ecosystem where when it works everyone gets more out of it than they give

261. 2:11:40

     and and that's magical when that happens and I think that's what every Community is is ultimately trying to do um I started a decentralized community called crypto Mondays um it's a meet-up we started January 8th 2018 there was a rocking crypto Monday uh here in um uh in Lisbon uh they're reading put on um awesome and so you should definitely join if you live here um I was actually crypto Monday Milan which rocked

262. 2:12:10

     um and the the massive less than five years you know that I really learned from from doing that is that the more you do for the community the more the community takes it multiplies it and gives it back um but how do you give value to your community members right it's all about giving and value to your communities giving giving them you know utility and there's most of the focus is on giving

263. 2:12:34

     them a dollar because everybody likes a dollar the problem with giving people a dollar is it costs you a dollar so what you want to do is give them things that cost you less than a dollar you can give them I learned about this you know at bolt we could give we grew to 23 million kids we could get 2 million of them to do anything for a badge that would scroll around their profile

264. 2:12:58

     we have nfts that are going to be give such immense value in the coming years is that technology but so for me it's actually the non-cast incentives that are going to be the bigger part the more interest and the more compelling part of building community and rewarding your community incentivizing your community and that's why you know I believe that communities can scale highly correlated

265. 2:13:21

     What I Call Value Delta so a community makes something for the members at a cost of X the members get it and they value it at why and the bigger the difference between X and Y becomes the bigger the community can become and that's why if you think about it the the biggest communities in the world are actually the things with the biggest value deltas and we have a collective name for those things we call those

266. 2:13:45

     things religions they produce Faith at 50 cents a book and we know how much people value their faith at and that's why religions have scaled to billions of people and lasted thousands of years there are undoubtedly the world's greatest communities and so again the size of community highly correlated to Value Delta Faith you know to some degree you know most people are here because of the near community and and you're here because you have faith that the New York Community is going to continue to have Kick-Ass technology and

267. 2:14:18

     do other things for its community members that are highly positive as it has in the past um so uh I wrote a a wall street style research report on Facebook I was a Wall Street analyst for the first third of my career um I've only written two uh Wall Street style research reports two price Targets in 20 years the first was on Facebook um in March of 2010 uh because the world had no idea and I you know I I saw it

268. 2:14:50

     and oh my God and I was a massive bull for eight years under a very simple premise that I learned when I was running bolt and that's that you grow your engagement is the key metric and you're either growing your engagement or you're dying and once you start dying it's very hard to stop and so Facebook increased their engagement uh uh for seven years you know for every quarter quarter after quarter um and they in January of 18 they

269. 2:15:22

     reported their first decrease in engagement in history and it was funny you know super interesting to hear the panel before but and they actually gave a reason for why it decreased they said it decreased because we decided to stop people from doing the number one thing that people want to do on Facebook book read fake news they really said that that is literally the most click thing is fake news um so grow your engagement figure out

270. 2:15:46

     how you can engage the size of your community is to me completely irrelevant the only thing that matters is the engagement of your community you know much better to have 10 highly engaged members you know out of a hundred than one highly engaged member out of a thousand so drive the engagement um I also really strongly believe this was a dinner I was at at consensus put on by coin Center which is kind of the main lobbying Organization for the ecosystem in uh in DC since 2000 and I think they opened up in 2011.

271. 2:16:21

     um it's amazing how long they've been around and this is really I really believe in the power not only of communities as Standalone entities but as a technology for optimizing communities get better and better that two communities will be able to work together or five or a hundred communities and that that will be extremely extremely powerful um you know I I became uh deeply worried about uh the impact of What I Call Family

272. 2:16:51

     Facebook out for Microsoft Google and Amazon in in January of 2017 I wrote my first piece on the impact of that um you know how negative that that was going to be their ever increasing share of Market of tech market cap and you know fam gut continues to five years later accelerate the pace in which it is you know has you know all of the value getting created in the ecosystem and for me um uh you know when Facebook rebranded

273. 2:17:27

     to to meta the most I thought cogent thing that somebody wrote on Twitter was Jack Dorsey he said that it's not a surprise that Facebook is the first company and only company to go all in on the metaverse because it's the only one of the big five companies that's still run by its founder and so they're all here now they're all coming after the metaverse we're all here for the metaverse the metaverses is the future that's where we're all going and I actually think they were in a War for the soul

274. 2:18:01

     of the metaverse between the community and what I you know and family Facebook Apple Microsoft Google and Amazon and if we don't figure it out and get you know this into the hands of the masses they're gonna do it and it feels epically like Star Wars and we're the alliance and they're the Death Star and you know I think most of the time the Death Star wins unfortunately um so we're in a War for the soul of the metaverse

275. 2:18:31

     um when I first got into crypto in 17 I was so turned off by the vitriol um and I was going to do something about it and very quickly I realized I couldn't do anything about it uh and then I learned about the altilina which is uh a famous event in the history of Israel uh where they actually sunk a boat that was going to bring them arms and and killed Jews because they thought that it was going to be a revolution against them and it turns out that you know this is a war and revolutions are

276. 2:19:04

     messy and we need passionate people if you've got a bunch of passionate people you're gonna get that and I really think now that the vitriol I look at it more as a feature than a bug uh one of the great things actually about this event is for me personally how little discussion there's been on prices being down a lot of other events that's like the main topic of conversation and and you know I'm all

277. 2:19:27

     for people who are in your community for the money I'm anybody who wants to come and help the community I think you should give Open Arms too but you just have to realize the people who are there for the money when the money leaves those people are going to leave because they're not getting what they told that they could you know that they were going to get but you know obviously everybody wants money but there's such a feeling that there's more going on here but anyways just to touch on the crypto crash to me having lived through the you

278. 2:19:51

     know the whole internet boom and crash um you know if you look back at Amazon right is that a bubble up 65x in a couple years well is that a bubble in a crash you know down nine up 65x down 95 and in the context of time it's it's not even a blip right in the context of what uh you know Amazon became and to me that's what that's what it certainly feels like in crypto and I mentioned that I I only have two price targets that I've put out in 20 years the second was on uh Bitcoin I put a

279. 2:20:28

     million dollar price Target out in Bitcoin in 2031 and I get there through math um and and what gives me confidence is this amari's law is the impact of all new great technology is overestimating the short run and underestimated in the long run and Bitcoins I think the greatest technology I've certainly seen in my lifetime and thank you let's go yes take a look awesome speech thank you Lou for coming up here and sharing your expertise on community

280. 2:21:18

     we have a couple more talks before break uh up next I'd like to introduce Fabian Riva of kaiva network who will be talking on filling the data Lake New Frontiers into centralized storage happens awesome okay guys so hit me perfect hey so I'm Fabian I am the co-founder and CEO of Kaif Network I am a software developer and got into the crypto space in uh yeah it was end of 2019 early 2020 actually um and I started out in the army vehicle

281. 2:22:08

     system so I was always working with data storage and everything and then I kind of got torn into the whole kind of network story we're going to talk a bit about that and basically what we're doing with clouds we are building a fully decentralized data Lake it's gonna be very quick and easy talk quick introduction to kive some Milestones why we are building a decentralized air Lake and why it's so important and then just some questions

282. 2:22:31

     and answers if you guys um have any so right now there are a lot of fundamental problems when it comes to data management and data storage in web3 and on a blockchain specifically and the main problem to it is actually the data is pretty condensed so first of all quick question Who of you guys is a blockchain developer and has to work with data storage not too many all right that's perfect so basically think about it the following way you're building a company right and this company has to keep track of every

283. 2:23:04

     single record they are doing on paper printed out put it in a warehouse and after a while of your successful company we have this huge Warehouse where you have to manage well tons and tons of paper but there's actually no use for it right because the only use would have is well for some auditing cases you might pull them up but basically just cost you a lot of money to maintain all of this warehouse and make all this data accessible in case someone needs it and

284. 2:23:29

     this it's pretty obvious what happens next is basically lowers your profit on the whole thing right and the least thing we want to happen is companies kind of lowering Profit just for kind of like some auditing purposes that's like a very easy example of like the the current well blockchain space because what all those blockchain Works do and I think Solana is a pretty good example of that is they are highly decentralized actually on the Block creation process

285. 2:23:54

     but then actually storing the data just gets way too costive for them so what they do is they start pruning their data and start deleting the data and you actually run to the risk of centralizing data availability again to a point where actually for Salon I think it is quite a case where there's one public archiving node to get all the data from and that's the Solana Foundation itself so we're actually running into a centralization

286. 2:24:17

     problem if we don't start building some secure places for networks to offload their data into right and then it's also quite tricky to well retrieve all those large amounts of data because how do you actually do it there are multiple like Solutions out there there's the graph that's quite famous for graphical access dual analytics for analytics purposes but the problem is is they actually all don't work with the native data so

287. 2:24:41

     basically what they have to do is they have to build their own custom indexing services that takes the data from one place puts them into another so you also run into the risk that there could be some mail form data so how do you actually make sure that you're also working with the correct and valid data right and then it also comes into that that if you're a developer there are tons of different well data applications and data use cases you might even have

288. 2:25:04

     in one app if you're building like a profile page a normal database is fine if you may be building something with insurance you need some more high-end data stick but how do you really do it in in web 3 and query there is no solution to that right there's also no way to Cache State Transitions and what does it mean it means that if we're working with a smart contract what's going to happen is that if I transfer a token from A to B I'm actually just subtracting my balance by 10 and adding

289. 2:25:30

     it to Beast person by 10 right and if we want to replay that and actually get to the current result it's a very kind of intense computational cost you have but the problem is you cannot really cache it caching meaning you can store it in a different place because then how can I trust this cache that it's doing a correct job and actually then we are kind of like starting to build this is a bit what's happening right now like

290. 2:25:54

     a 2008 financial situation but for blockchain infrastructure right because what's happening is right now we see a lot of like hacks on Bridges hacks on ecosystems because the underlying infrastructure isn't really supportive enough for everything that's going on and so basically we could actually lead to a huge collapse in the whole Market if we start kind of stacking up more and

291. 2:26:17

     more and more insecure systems on top of each other they deal with like some centralized points in some parts because this is just a very easy a very important attack Vector um for them and also the cost of distribution is crazy expensive as well I mean the only reason why we don't store nft metadata on chain on ethereum for example is because the cost of storage is the most expensive gas call

292. 2:26:41

     right and this is because for computation it's easy it's a one-time thing and I have the new result but let's say you have your nft and it has a hang on ape image you have to carry this around Forever on tens of thousands of machines to keep it really truly decentralized so you cannot really optimize for computation in one part but then data storage on the other part because they are conflicting with each

293. 2:27:04

     other right that's kind of like what the evm model is and why well actually so many nfts are stored on Amazon S3 or something like that because you just cannot simply afford storing all this information in your smart contact just by pure design right it's pure design choice that this is impossible because you don't want to start carrying around data forever and this is until then we have our weave and ipfs and like file

294. 2:27:28

     storage optimize blockchains kind of coming up that allow us really to now build the infrastructure of a fully decentralized data Lake making it then accessible kind of for everyone else to store the data in one place and then being able to to access it and so the whole kive story is kind of like a very um organic thing actually so me and my co-founder we were working on um like a r with kyc project and then one day came across a grand from parody and our weave to store parodies data onto our Reef because they realized this

295. 2:28:01

     exact problem we're like oh we have to find a way to kind of offlay our data to a different place where it's more optimized for data storage because we know in the long run we actually can't afford it let's say what what me and John my co-founder built out and then we started realizing that actually all of the other ecosystems have the exact same problem I mean all of the evm ecosystems do have the same evm design problem

296. 2:28:25

     right and there is not a real solution to anything because even in web 2 right there are multiple reasons why you would choose this database over that database it could be because you're more familiar with that it could be because this fits kind of like your choice so it's really kind of dependent on where does the developer build in the end and then we so we started reaching out to all of those male ones kind of like secure the initial support started building out

297. 2:28:48

     Integrations for them and then it got really really interesting because then we also came across actually data providers like chain link like the graph and realized well actually they have the same problem as well how do they get the data and then monetize it like how do they actually get the initial data and how do they make sure that the data they work with is valid because just imagine the economic damage that happens if chain link would put up an incorrect

298. 2:29:12

     price I think it happened for the whole UST story when that thing went down and chain link had to stop right the Oracle service on other emms the price just crashed because suddenly you were working with incorrect data all over the place so it's really really important that we make sure that valid data and accessible data stays the base layer of all crypto transactions because otherwise in the long run it's just going to all going down and so this is

299. 2:29:37

     how the whole kive story uh came along and basically the way it works is that Kai fetches data from any data source in this example here is a blockchain stores it on permanent storage like are we if we also support other storage backends like makina filecoin um and so on and then making this accessible in a raw form really to all projects out there so like the graph can utilize the covalent can utilize it you

300. 2:30:02

     can utilize it in the application if you're building an nft uh Marketplace you can actually store the data through Kai iPhone permanent storage and then having this accessible in your application because you know that the data you'll be working with is actually correct so the way this works and how we ensure that data actually stays valid is a proof of stake system so we have two types of nodes where Cosmos SDK based

301. 2:30:28

     chain that handles all the consensus and then we have protocol nodes that are relaying the data via runtime and the runtime can really be anything it can be getting the data from well near onto our uh onto our with through car if it can be actually decentralizing data we actually have a cool use case in discussion right now where there's a platform from region Network and they have all this weather data that is a public good but centralized and they

302. 2:30:54

     want to make sure that this data stays accessible so how do they solve it and this is how they approached us and saying hey we kind of need to get this data decentralized can you guys help us with that and that's actually what we're doing there so we have a storage pool this one is executing all of the runtimes and has handling the data relaying and the storage pool requires a project to fund it and then the funding gets paid out over time mistaken rewards

303. 2:31:18

     to the validators and to their delegators and what's going to happen is if a storage pool ever runs out of funding it pauses and so it doesn't relay data anymore and of course then you're kind of in this critical phase if you're building like an Analytics tool for example on top of the data you're always of course incentivized right purchasing kind of tokens putting it up in the pool as funding to ensure that the system keeps on going right and if

304. 2:31:42

     you don't do it it's fine as well because apparently then there is no demand in this new data being produced and this leads to this really nice nice outcome that for example Bitcoin block zero looks the same all over the world it doesn't matter if you access it from China from Europe from America it's all the same and actually once we took this piece of data and store it and validate it through Kaif you could delete it in

305. 2:32:04

     theory from anywhere in the world because you know that Kaif has independently and fully decentralized validated this piece of data and made it accessible and so that's basically the the proof of stake mechanism that lies behind it of course it's very important to ensure were actually that the stake you are working with is high enough right to securely support the other Bridges let's say for example you're

306. 2:32:28

     building an amm you're using kaif's data as your financial data but and the well amm has a TV at of 1.5 billion dollars then I think it's a fair question to ask well is a stake in this pool of like ten dollars enough right well of course no it is and you have to provide then a stake that's high enough to secure the data efficiently and if not our governance can always step in and ensure

307. 2:32:52

     us that pools stay paused you can set up a minimum staking amount to make sure that you never run into any security problems because worst case it's going to happen is this data stream coming in is pausing and then not exposing anything other to risk um so as I already walked a bit through our our story on it so we started out right being the the Bounty from uh parody now we've it's actually a year

308. 2:33:18

     ago it's quite an exciting Journey so we did a very big incentivized testnet with around 40 000 um active participants uh on that it finished I think two months ago or one and a half months ago and now we're really just kind of Paving the road to mainnet we're looking for a minute launch in early Q4 this year to like ensure that we get this Economic Security into our system and then allow

309. 2:33:40

     others to um already build with it um we already have any major L1 and L2 as our partner mostly for archiving purposes so making sure that those networks can stay scalable um are able to well get some back um backups in case so like for example we had a very early day talk and really didn't age well with Terra where they were thinking about using kive as a decentralized quick sync for their nodes where they say actually right now we are providing this centralized snapshot to node operators but it's a fair question

310. 2:34:13

     to ask as a node operator why should I trust right like the Terra Foundation actually why should I trust any foundation if I'm running my node because you as a node operator at the end have to take the risk of running it if you execute some some incorrect trades or something you're getting slash in a proof of stake system with that then you are the one responsible for that so in a truly decentralized world you always have to find a place to get

311. 2:34:36

     your initial data from when getting a chain because you cannot just sync on ethereum I think it takes months actually if you would sync from other nodes to get your notes up to speed so it has to be something that is like kind of like a really service for that um to it and then yeah we also have I would say all evm support chains we have Bitcoin Fury developer you can play around with it we have one graphical indexer out there that you can do cross chain uh analytics if you want to we

312. 2:35:02

     also have some teams right now building out the SQL stack to access the data and just in general if you're a developer I can highly recommend playing around with our data seeing what you can do without tons of use cases um really around it and should make everyone's working with data much more easier much more accessible are there any uh open questions now doesn't look like it that's good all right well thank you very much um and yeah if you want to kind of know more about Kai feel free to uh go to our

313. 2:35:41

     app it's after careful Network you can play around with the current test net you can play around with the data there feel free to join us on Discord with a very active community of developers so node operators there or just yeah feel free to reach out I will be staying here in front of the stage for a bit if you have any questions so yeah thank you for having me identifying a critical infrastructure pitfalls in the space and then building uh solutions to those are crucial to the

314. 2:36:18

     adoption growth and reputation of the overall space so thank you again Fabian for coming up and presenting that um up next I would like to I'm proud to introduce you to one of the uh biggest Giga brains here at the whole conference we have Maxim's uh zavershinsky of pagoda speaking on how to be a pagoda power user foreign so this is going to be a pretty technical talk uh fair warning and I'm gonna talk about specifically

315. 2:37:00

     the Developers and the power users that use very narrow set of tools that they can that they use to create very powerful applications on near um so my name is Max some of you may already know me I'm actually VP of engineer in Pagoda which she used to be near Inc before that I was working at Google I'm also the first employee at near and I did PhD in computer science so uh write it down on why powerful tools because we want to cater to a

316. 2:37:39

     specific narrow slice of the developers and near ecosystem that build application that could then create a very large value for through linear blockchain and our company Pagoda is the one that builds actually majority of the developer tools for for near ecosystem and so naturally it is also our responsibility to build develop tools for the power users too we're trying to address every step in developer Journey from the

317. 2:38:10

     deep Tech Foundation to learning all the way up to when your application is launched and successful and today I'm going to walk through each of the steps and tell you about the powerful tools that we have there so let's start with the Deep Tech Foundation so not many of you know but actually Pagoda is the company that writes most of the code for the layer one protocol itself and if you are a power user if you run a multi-million

318. 2:38:41

     or in application or near things that you care about a lot are reliability and we're proud to say that we had zero downtime since mainnet was launched specifically because we put so much effort into maintaining reliability and performance of the near mainnet we also serve a gigantic number of the RPC requests per second from for our centralized RPC endpoint which is used by majority of the ecosystem and we also provide historical State

319. 2:39:15

     access to anyone in this exactly the same manner so this is actually a pretty difficult thing to achieve to allow you to look up as like the way you would do with a time machine any state of the near blockchain anytime in history with the same latency that you would have with a just a regular RPC endpoint and we're consulted working on Integrations with other blockchains or powerful projects so you know we have integration with ethereum we've been discussing integration with Cosmos and there are other blockchains coming up too

320. 2:39:48

     so this is also something that we provide for our powered users because sometimes developers they launch initially their project on ethereum and then they have a token deployed there and but they want to move to near so what they do is that they keep their token on ethereum blockchain but they develop the rest of the functionality are near and they have user interactions actually done for the smart contracts running on the air so this is how people

321. 2:40:11

     leverage this Integrations today uh there are some features of near blockchain that are very unique to near I mean where else you're gonna find the layer one that says which virtual machine would you like to use like at near we have three right we have web assembly virtual machine a VM virtual machine JavaScript virtual machine and we're going to add more like we're not stopping here like we're gonna get all of them the move is being discussed right now

322. 2:40:41

     uh we also have such powerful run time that we don't bother even optimizing smart contracts for it you know if you are an ethereum developer you probably know how how much effort people put into optimizing the solidity code you know they sometimes go into the assembly um with near people get sometimes so lazy that they you know they can just put all of the HTML and JavaScript there

323. 2:41:07

     they call it web4 hosting and and serve it directly from the smart contract and ethereum world like let's say a tornado cash example people would serve you know front-end from the ipfs with near you can jam the whole thing in the same smart contract the front end your business logic and later I'm going to be talking also about like data aggregation and some tests um and yeah and just serve it like that so this is specifically because our runtime is so powerful so data aggregation so what we're looking at

324. 2:41:37

     right now is that we think we can replace some of the middleware of the apps built on a blockchain with our smart contract like we can literally allow you to build a piece of your middleware inside of a smart contract this is also pretty crazy we will be able to have some data pre-aggregation right inside the smart contract this is something that we are investigating it's not done yet uh but

325. 2:42:01

     you know that will showcase the power of the near runtime even more and the light client over near is actually exceptional like it's not like any other light client of any other blockchain that you you know so with near if you want to maintain uh keep track of the blockchain and do the validation you need only two headers a day like with ethereum you need every single header to actually maintain the light client and we use this feature to build ethereum bridge but as a power user you

326. 2:42:31

     can use it for many other crazy things for instance you can use it to verify the results of the RPC responses that been given to you by any RPC standpoint you can use it inside the smart contract built on near to verify validity of whatever other data has been generated on this blockchain so even you know like a a smart contract would uh return result from another contract um so yeah it's it's something that haven't been used much but I think you can build a whole bunch of crazy powerful stuff with it and we also try to rethink how people

327. 2:43:05

     learn when they're power users well first of all like if you're a power users you know that sometimes you just don't read documentation right you just go there you Tinker with the code and this is what we're trying to heavily lean into so what we released recently is called forms that allows people to basically have a UI generated for the smart contracts automatically and with that I think you will be able to learn much quicker because you can Tinker not just with your smart contract but with anyone else's smart contract and you can immediately observe the

328. 2:43:38

     results of your interaction through explore or through the developer console we also have a library of the core contracts that are very polished they're the Pinnacle of the code or the code right on the near blockchain you can learn from it you can see some patterns in there we did a lot of audits um yeah so I that's how I think power users could learn too and finally things always awesome near something that's been built by the community it hasn't

329. 2:44:06

     been built by pagoda it's a great catalog of 800 projects where you can try to find some great ideas on what you want to build and we also have a created list of our own tutorials that will continue expanding however we're gonna rethink our way of learning even further going forward so one thing that we're considering adding is a project wizard which will allow you if you have an idea if you want to build to just click through several steps and get the app running

330. 2:44:39

     if you don't know what you want to build we're going to have a gallery of projects available for you that will allow you to explore things and maybe come up with your own ideas so these are the things that are currently in works power users also prototype and develop differently they think not in libraries they think in Stacks so we have a JavaScript stack that covers every single need of a

331. 2:45:05

     JavaScript developer building on web free so you already know about the JavaScript SDK from other talks what you might not know is that actually it can run in two different modes it can allow you to embed the JavaScript interpreter right into your smart contract or it can you can have a JavaScript interpreter for multiple smart contract our workspace suggests the test and framework that actually doesn't force a specific JavaScript framework on you it allows you to choose your favorite

332. 2:45:34

     JavaScript testing framework and the wallet selector is actually something that we're building like right now and I think it's already rich in the official parity with ethereum analogs and going forward it will be even richer and more powerful that you see in ethereum space so uh keep an eye on that in our rust stack I think the most powerful thing is our I mean obviously SDK has been notorious you know many other blockchains actually learn and copy from it but our CLI is something that hasn't been spoken enough

333. 2:46:06

     of so this CLI is quite unique it's basically a modular CLI think think of it as like cargo you will be able to add new comments to the CLI by implementing your plugins and we invite anyone in the community to come in and Implement your own plugin for this near CLI whether it can be a plugin for the validators Traders I don't know developers just you know come in and start adding the

334. 2:46:30

     plugins can be a hackathon project we have also an upcoming data stack so we intentionally try to make this data stack as simple and minimal as possible while addressing every single developer need at the same time with the data right now we have RPC that we have already talked about that serves a gigantic amount of data right now for our for our blockchain but we also have enhanced API that provides a a more specialized set of the features

335. 2:47:02

     for the developers like the balances of the fungible tokens or the listings of the nfts and uh yeah we expand the the functionality of enhanced API we have also self-hosted options so if you don't want to use some of the centralized Services built by near we we're going to be expanding together with Community self-hosted Options so right now you can run your own data Lake framework um indexer and extract any kind of data

336. 2:47:29

     from the blockchain even in a historical way and finally thing that I already mentioned we are we're going to be exploring Unchained data aggregation just because we can you know and it will be able to replace a lot of the middleware for some of the apps um right so how do power users on near do building and deployment well first of all the the thing that they care the most based on

337. 2:47:54

     the feedback is reproducibility of the builds and you probably know that even in ethereum space where the compilation of solidity is pretty straightforward it is still a pain right it's still compiler version dependent and near we compile rust towards I mean JavaScript towardsum and uh it is generally known to be a challenge to make a reproducible rust compilation but we pushed it to a predictability as

338. 2:48:19

     close as possible and in most of the cases I think like practically speaking it should be reproducible our builds and very likely we're going to make it 100 reproducible in the future too um why do you want to produceable builds this is because you want to prove to your users that whatever was on file you have deployed actually corresponds to the source code that you put on a GitHub so they can verify that they can trust

339. 2:48:44

     you as I mentioned already we have built-in and separate JavaScript runtime depending on what what do you prefer most of the developers prefer built-in JavaScript runtime but it costs them extra tokens to deploy smart contracts another powerful feature that is kind of taken for granted in in solidity space is API generation so we have edited recently and we started integrating apis like everywhere in our tools I think

340. 2:49:09

     it's also going to be a powerful feature and and finally check out this community build a project called near Pages which is basically a web for host and um all right so what are we going to add in the future so we're going to help you with a with uh with the publishing your source code and apis we're going to have a source code an API registry which is going to be hosted by Pagoda it's going

341. 2:49:34

     to be centralized service similarly to etherscan um and we also gonna provide you attestation to the source code so we will be able to see that Pagoda was indeed able to replicate the code compilation and API generation many users will actually deeply care about it especially the users of the D5 applications running on near because again they want to know that they can trust this code we're going to have a

342. 2:49:59

     bi-directional integration with Astro Dao so this is something again that really big projects do um by default you know like whenever as soon as the project keeps on evaluation you actually switch from having a centralized private key on and all of the deployment of your smart contract to having either multi-seek or a Dell uh controlling it so we're going to add this function into our developer console so it will be able to just check a box

343. 2:50:22

     and have a Dell governed project there and what I'm already mentioned is zero field contracts so we're going to investigate and just allowing you to have a single contract that are that that runs both front-end data aggregation business logic and tests all in one uh this is still an idea but we are investigating it so if you care about that please let us know we can we might prioritize it and finally actually something that people some people want is done local bills because they don't want to have the complex build set up

344. 2:50:53

     locally or they want to try multiple languages so that sometimes you would want us just to build it for them and at the same time maybe even upload their source code and API to register automatically so this we're going to be considering adding to so testing and simulation is something that power users care very deeply about again because power users usually mean that they work on high value high value applications and high value applications

345. 2:51:18

     need to be like waterproof and therefore the testing is super critical in there so what we try to do with Pagoda we try to make the testing as easy as possible right now we have two languages in which you can write tests um you know we're going to be adding more we don't want you to choose to learn new language to write tests on on near so you can use JavaScript or us today which covers quite a lot of developers this actually makes the tests are actually language agnostic

346. 2:51:51

     uh I'm sorry I mean uh smart contract agnostics so you can have a smart contract with an arrest but test written in JavaScript and uh this is pretty good great because you can actually reuse some other someone else's tests specifically test region for some standard we're going to be adding also individual potentially adding individual testing environments like an ability for you to

347. 2:52:13

     spin out your own hermetic test test net just to test your application because you don't want to have interference with other applications running on testnet because today many of the power users actually test directly on the test net this is might be a feature that we're going to be adding to developer console we also put a lot of quite a lot of work in making sure our tests are super precise like they execute the way your

348. 2:52:39

     application would execute in production again something you should be taking for granted in a blockchain world but the way we sold it is with we actually spin out a single node so a single tiny blockchain every time you run a test that's what we do for you which makes it a perfect simulation you can have minute spooning and time travel and gas profile and all these power features that you actually have in

349. 2:53:03

     ethereum world but you might not have another blockchain and we even looking into tracing and other kind of Diagnostic and debuggability of the of test writing and also we want you to spend less time on your testing but give get more of the results so today uh if you want to secure your smart contracts what you do is actually sometimes come to Pagoda and you ask ask us to recommend you some the security up later so this is what we do for many uh high value applications today but in the

350. 2:53:37

     future we might externalize it we might also add stress testing we might add the testing history all other kind of features that you see in very powerful ideas that do the testing for you well and finally once the application is launched what you want to do is you want to have full control over rate by observe through the observation and you also want to incrementally optimize it

351. 2:54:02

     to make it even better so obviously we have Explorer there are multiple explorers actually on your blockchain uh the Pagoda one is the frequently a default one for the power users we also have contract analytics in a developer console that allows you to you know look at the basic stats and this contract analytics will expand in the future it will become business intelligence basically thing that will

352. 2:54:26

     allow you to even optimize your business not just the smart contract today you can also use alerts and triggers to subscribe to various events like someone is trying to pull liquidity from your the app and you want to you know like be woken up by the phone call so that you can do something about it you can do that already today you can subscribe to this kind of events through the telegram and we're going to be adding even more sophisticated triggers and alerts

353. 2:54:49

     mechanisms together within the Integrations of other like various alerts and systems and as I said we're also going to be adding ability for you to have business insights into your the app and even maybe give you suggestions so what you can improve there so that you could grow your user base or have a higher impact so that was a pretty brief overview of the power features that we provide for our developers and what we're going to be

354. 2:55:20

     considering adding in the future but you don't need to wait for us you don't need to wait for Pagoda to create those tools and add those features you can actually do it as a part of the community and what you can do if you know what you want to have and Pagoda is not implementing it yet you can actually just join workgroup calls and propose it you can submit a near enhancement proposal to build this kind of tool if

355. 2:55:45

     you don't know what you want and you just have some vague idea you can actually join Community groups and brainstorm with everyone what could be done or you can create your own community group for instance today we don't have tools community group but you can actually create one so feel free to do it contact us check out this URL link or visit our booth this talk actually has already happened on Monday so check out the recording by Ori yeah

356. 2:56:11

     let's develop power tools together thank you hey so we're at the home stretch right I lost my voice a lot of my dignity thank you all for building with us and this is Dragon's Den this is where it happens uh 10 top teams will get to pitch on the main stage in front of Ilya Marie and Alex they're there they're hiding behind the Combs so you wouldn't see them not to put any more stress on you so it's gonna be like that each team

357. 2:57:04

     will have to present in three minutes or less uh we will have a big big timer here on the main stage right so if you go over three minutes I will have to put you on a heart stop I will just take the microphone from you physically I hope that's understandable please don't be offended and then our judges will get an opportunity to ask you just one or two questions and please please be brief

358. 2:57:29

     because you will get three minutes to listen to the questions and to answer them after 19 speech we will choose the winner not I I won't choose they will choose they will choose just one winner I mean the winner will get 10K as a tip in addition to their main price if they get a main price so I think the rules are clear please give it up for our judges Ilya Marie and Alex thank you please be nice I'm the evil policeman here

359. 2:58:09

     so the first team actually to pitch on the main stage is Open golf give it up for them just a little round of applause because it starts with the first introduce yourself and then go all right thank you near family my name is Dustin DC Cantor AKA mayor of the mike in 2018 ran for mayor Washington DC and talked to all sorts of people about discrimination and Corruption that exists in the hiring specifically in public service

360. 2:58:44

     this is the clicker which button restart the timer restart the timer yeah all right so Harvard Business Review 36 percent more whites than blacks are receiving a callback for the next interview 24 more whites than Latinos United States attorney's office is having to collect 390 000 because people are working on our Public Works projects like Amtrak the rail system without a current certification lots of discrimination lots of corruption

361. 2:59:30

     we know it's a problem what are we going to do about it we have a solution and we're calling it Ace Ace is an ecosystem with smart contracts built on near Vladimir our developer worked on the clear certificate smart contract this week go to our Dev post to take a look at the demonstration inside of our YouTube video as you can see colleges universities training academies education centers are our partners that are already certifying

362. 3:00:10

     folks we are going to work with them to bring their off-chain certificates on chain we have a plan to have the applicants certifiers and employers all in one ecosystem and there will be a government hiring job portal for various cities various counties States and federal governments our go to market plan is working with municipalities specifically Public Works Chief technology officer offices and so forth

363. 3:00:50

     Marika told you we'd have a proposal for one million near this is our three-phase approach we have details behind the first phase we have leads that we've talked to at blockchain events and this is our diverse team the real Champion is Vladimir he's our sole developer and had his first smart contract deployed this week let's give a hand for Vladimir we have some more information

364. 3:01:24

     this story really came about from working in communities and listening to real problems that exist there was an article published in the UK Tech news by Marika about why diversity is important web 3. that's who we are clear gov thank you so much everyone questions I don't need this thank you maybe you need there you go any questions from the judges I mean assuming that the current organizations are corrupt why do you think that we will actually accept this and start

365. 3:02:03

     using it well we already have verbal confirmation of Interest and when you have government officials that say they are anti-corruption or anti-discrimination what are their Solutions we're providing a solution and we're specifically targeting in our go-to-market plan those that have an annual blockchain event in their Municipality of 5 000 people or more and have at least 1 000 jobs open currently

366. 3:02:35

     within a 25 mile radius how do you make money how do we make money yeah well for it as you can see up on the screen Angela did a wonderful job in figma in showing what the job portal is going to look like and there is a salary that is attributed for a job now in the web 2 world head hunters and recruiting firms can have a one percent 10 upwards of a 30 percent commission for job placement of a candidate into an organization so

367. 3:03:08

     we know that money already exists within this model of Recruitment and we have to apply More Design Thinking Beyond a three-day hackathon to have the best answer possible for that thank you project Open golf now I'll have to kick you out of place good luck and I invite the Hermes protocol give it up for them just one green button and then look at the screen you'll see the timer hey everyone my name is Sergio from Hermes protocol

368. 3:03:49

     so before I get into explain what Hermes is let's talk briefly about the problem we're trying to face sorry to solve over here all right thanks uh so basically we are taking communication for granted in web3 why on web 2 people sign in with Facebook sign in with Google once you do this you're giving the the web apps your email address and that works as a way to communicate it works as a way to deliver notifications for whatever you know information might interest you a different identity on Facebook and an item you sold on eBay

369. 3:04:27

     etc etc on web3 this doesn't happen you connect your wallet you're anonymous that's great but how can you get the inside scoop how can you get the information sent to you that matters to you and not only that how can you actually control it in a way that you don't receive spam and it's only the the things that matter to you so Hermes protocol is a notification as a service 100 free for users will get

370. 3:04:57

     into the business details afterwards um and basically what we are doing is we're reading the blockchain data in real time parsing it and making it into easy notifications that people can subscribe to and then they get the notifications through the Discord telegram or Twitter these can be sent to direct messages or to public channels on servers here are some examples so on the on the right side we can see a direct message from our Discord bot uh it's already

371. 3:05:31

     around 200 servers uh in this specific case we're showing uh transfer from uh Anna one of our team members to herself uh sending some near and on the left side we're seeing the Hermes bot used as a sales tracker for an nft collection so it's sending uh the traits of the nft including Rarity percentage on a channel that everyone on that server can see so this not only works for private communication but also

372. 3:06:01

     public channels another example here we have on the left side anchor protocol which I guess some of you might know from the Terra collapse they actually used a Hermes protocol to subscribe to notification alerts of governance proposals so you can see here the bot automatically creates a thread uh so that people can comment on it but it's done on a read-only channel so the only

373. 3:06:26

     threads can be posted when people can comment on said threads and on the right side we have a demo of the telegram bot as well so future is near we're excited to be here thank you and open to questions how do you see expanding Beyond this like because I think it's true that people right now don't have good notifications but I think the interesting part is how to integrate this with wallets

374. 3:07:18

     thank you there we go so um what we have just shown uh is the consumer side of the platform uh we actually have a planned out and are already building apis so that adapts can integrate with us and the way that's going to work because we're fixing a communication problem right so the way it's going to work is that applications um front-ends like nft marketplaces or whatever the x is they will have um you know a button or a tick box or

375. 3:07:48

     whatever you want subscribe to this alert so on decks it's interesting to know when you there new pairs are sent to the you know there's a new liquidity pool basically for any theme marketplaces new NFP collections Etc when that happens the user signs a message that our API asks the the front end to show that to the user and sign then we get that signature uh so that we know that you know the user authorized

376. 3:08:12

     that subscription and then whenever they trigger an alert off chain in this case it's obtained uh then we we route the information to where the user has the default so either Discord or telegram Etc if you know zapier if this and that integral math whatever it's going to work very similar uh from the from the user's perspective you really pick and choose where you want to get it a very short question

377. 3:08:35

     um so hair message is it is it going through your centralized servers or is it decentralized protocol where anyone anyone can join to send the notifications it's a it's a mixed bag right so um we we are planning to have the entire notifications layer uh built on chain so that uh everything can be done uh through smart contracts and we actually have a really good partner called Andromeda protocol uh to to use this as a Lego building block and it's going to

378. 3:09:05

     be working fully on chain but for now uh using apis that's going to go to our servers um on one hand uh it is going to be centralized on one entity ourselves and the service provider cloudflare but we're doing almost the entire infrastructure running on cloudflare workers which is their serverless platform so in terms of an availability honestly I I mean in terms of this installation there's multiple aspects and pros and cons to it right so I think

379. 3:09:31

     that being present in 193 cities across the globe is going to be pretty resilient so the money question how do you make money right so uh to answer yeah uh I'll try to be really quick um I need some more times I mean they're better so um this uh following elia's question uh he asked like how how does it integrate with other apps right so when people subscribe uh to these alerts uh it's going to be a very similar business

380. 3:10:02

     model to MailChimp scene in blue sin grid so mass mailing except that uh inside of emails we're using wallet addresses so basically uh daps builds lists of all the addresses of people that might be interested they have to get their users permission of course but once people give that permission then they can send out notifications whenever they have new updates or whatever and that's charged at a very small fee

381. 3:10:27

     uh but there are more things in plan airdrop notifications Etc I mean I could talk but thank you thank you thank you thank you for the team Hermes protocol and we invite the stage the next team seed web3 career Hub here you go for the clicker uh just for the audience right there is one button and the screen and it's big just press it here you go timer is here you can go to the center of the stage okay

382. 3:12:12

     my name is Constance my team and I we are representing near Singapore and as we know that melee City Capital Cities especially in Asia like Singapore Shanghai Tokyo they have very extremely like extremely competitive job market we receive a lot of requests of people looking for a job looking for talent every day all the time and one question we got asked most of time is do you know this person or do you know this company

383. 3:12:43

     I mean there's LinkedIn profile there's CVS and all that but there's little Trust so we're tackling this problem from three aspects one verify experience you are able to experience and send requests to the money to verify for you the action of verification will trigger an issue a text nft don't worry if your profile will be empty if you're coming from web 2 just like most of our Guild members you're still able to key in the experiences just that it won't appear as a verified nft other than that you can also invite your

384. 3:13:15

     company to join and for this we are using text-based non-transferable erc721 building on Aurora and second Glory badges this function acts like the poap for the issuer is a proof of impact for the receiver it's a proof of the glory moment we're using ERC 1155 multi-token standard maintain is time locked and connected to covalent API to get the transaction details and last one will be on chain endorsement this is the function that allows the most our entity shouldn't only be involved

385. 3:13:57

     around our heart skills our connections and memories with our mentors our friends and teammates complete us with on-chain endorsement we can sell it and take it everywhere forever for these we're using text-based nonsense for row erc721 as well okay so these three components will make up your web 3 profile we're helping to leverage on our existing southeast Asia Community starting with 700k potential web free death and 50k CS students and

386. 3:14:30

     reaching to the total job market of 1 billion users I'm afraid the euro to term constants I'm so sorry if you have any questions how do you go to market how do you because this is about basically getting rid of LinkedIn how do you do that how do I go to market I already have the market it's built on demand so in our community we've got 700 members right now and they are constantly looking for jobs looking for

387. 3:14:54

     talent and currently we're like manually collecting information and personally endorse and connect them is I mean it gets the job done but it's quite limited it's very menu so we hope to solve the problem do a three-way have you considered uh various ways of incentivizing people to onboard uh yes maybe you can give us advice on that so obviously in case the garbage comes in the garbage is going to come out how how do you you need to verify the the

388. 3:15:28

     person when he creates his profile you have a kyc provider or how it is working right so um I mean you exist in web 2 and but we don't want to connect web to Identity with the web free identity so we can actually redefine yourself in web 3 and yeah for you at 3 profile it has to be genuine authentic with all the on-chain replication and that's all you'll need okay thank you so much see to be free thank you so much thank you thank you there you go

389. 3:16:00

     and the next team to present is marketing on near this thing on is it on we're good to go yeah remember okay I was going to say I'm glad I got my nice shot on today oh we started all right cool Martin is near the ad service for near let's get started so marketing is hard right projects need to grow but it's one of the hardest things out there a good product isn't enough you always need a good strategy

390. 3:16:25

     you need a target audience you need people to Market too but that can be hard in Bear market so when there's poor liquidity if we consider the nft trading liquidity or near and compare it to other platforms for example looking at the 30-day uh trading volume and the last 30 days um you can see that near has a you know on the leading marketplaces has a lot less liquidity than a lot of these other guys even though proportionally it should be a lot more

391. 3:16:49

     so how can we increase this well our product marketing is near we want to basically be the Google ad service on there so what that means is bringing web 2 marketing to web3 by displaying targeted ads based on on-chain user data which is publicly available and doesn't make use of cookies um which is great um we also using a machine learning based approach because there's a lot of

392. 3:17:11

     noise in cryptos we want to reduce that as much as possible and it's very efficient it's cost effective because the advertising is very targeted so who can we help any business on there any business in there we can help NSD marketplaces exchanges gaming Studios everything you see there anyone who wants better marketing we can connect all of them uh so what we offer is two main products the first one is a tailored advertisement to users of the near wallet because we're using the

393. 3:17:35

     interactions of their wallet in terms of the on-chain data to inform our advertisements um and that's optimized using our machine learning um no breach of privacy in that case was really good and the next part is kind of we're a market maker that's connecting the people who are happy to host ads on their site with those that want to push them out there and you know this is beneficial for everyone because the publisher get paid for hosting ads and they profit from

394. 3:17:58

     creators who are there to pay for the ads um and they will obviously profit from the fact that potentially a Marketplace that wants to host ads will have lots of traffic and they'll be able to push out their product further um the ad Creator can sort of tweak their campaign to either Reach people who are maybe already interested in their product maybe they own a certain nft and uh you want to you know sell them another one or you can Target to a new community that may be interested based on what's in their

395. 3:18:22

     wallet and the sort of transactions and interactions they've had um how does it work well we get a JavaScript injection into the user's near wallet and that's put into the host website who wants to host the ad and then we can analyze their blockchain interactions and recommend them similar products based on their user profile in terms of business model because we're connecting the ad hosts with the people that want to put them out there we can take a cut in the middle

396. 3:18:45

     um and ideally we would also like to have a way to sort of incentivize users for you know interacting with ads in terms of people viewing them maybe giving them a portion of our profits um and for the people pulling out the ads we'll have an auction mechanism so that you know the more ads the more they want their ads out there the more they can pay for them the future would be like I said to incorporate token but actually the really big one is we want to build on there we want to be a near native but we want to actually be able

397. 3:19:08

     to be interoperative with other blockchains as much as possible um we need we need time and funding and better API and that's our team and that's done thank you very much there you go just just about made it uh just about any questions yeah I mean really cool idea I think one question is how do you bootstrap the kind of initial inventory of ads such that the websites want to integrate it because like so it actually received

398. 3:19:39

     they received something of course I mean you know think of a typical website you may go on and it may show you recommended things like Amazon or Ebay shows you other recommended items or we can obviously have a slightly more optimized strategy for that so that's kind of like one main service and then obviously we would have to work with the uh I think people would want to work

399. 3:19:55

     with us because we can literally get them more customers we can make them more money it benefits Us in the process it benefits near in the process um and you know yeah we'd have to work with them to sort of to get what they need but we could have multiple ads and we have very good ad fatigue mechanisms so that we can you know optimize how people are seeing it and make the most of it really yeah

400. 3:20:12

     so if that's not a blocker what's the biggest blocker to being adopted you think what's the biggest block that's being adopted um that's a very good question give me give me two seconds to think about that it looks like I've got a minute 58 to think about it um so as a suggestion you can actually bootstrap by actually just advertising existing without them needing to interact with you can advertise existing Collections

401. 3:20:37

     and apps get people to just predict what's the next action that user would want to take okay then and then advertise that to bootstrap the usage no thank you that's really good I mean it's also in a lot of these examples I spoke about nfts but really because we're looking at Unchained data it can be D5 protocols you're providing liquidity too it could be games you're playing anything and so yeah we could definitely solve without even a user in terms of The Advertiser providing ads we could just look at what

402. 3:21:03

     they already provide whether it be entities they've got on a Marketplace and we can take the days from there without them providing anything to us I think there's a lot of ways we can do it and it could be really really good yeah at the moment this looks very like a web 2 business B2B kind of model and that's okay no problem I'm looking forward into introducing some paybacks to the users for interacting with the ads yeah with the token or whatever what is the plan there

403. 3:21:28

     um so that's definitely something I think we didn't really have much time to think about the last few days because obviously yes we can incorporate a token right now blah blah it works but then we have to think okay do we want our own tokens we want to use near do they have to then create a new wallet how do they get those funds what do those funds do but I think it may be something to do with I think a really cool idea would be

404. 3:21:44

     to partner with the projects that want to advertise and see if we can maybe provide some incentives for example if a customer is really interested in their product maybe they can use our token or use other projects token you know I mean to get uh you know reduce trading fees on an nft Marketplace or um giving them mints you know I mean on a D5 protocol it could be through boosts in liquidity pools things like that alternative option would be to to partner with brave because they already

405. 3:22:07

     have basic attention token and obviously they can get more information and they integrate it near an aurora Yeah we actually have my founder actually spoken the other day so yeah already in the works ah thank you thank you so much can I get a video like this on the stage let's invite the next team to the stage please get out great job um Grand give it up hello my name's Sam and uh this was my first

406. 3:22:47

     introduction to web3 so it's great to be on stage that's crazy uh so I'm gonna jump straight in I'm gonna go very fast I'm very sorry uh so the internet is responsible for 3.7 of all Global carbon emissions uh that's not great every time we send data from a server to you the client uh we're transferring data which is using energy therefore burning emissions uh especially in two out of three cases where the energy is coming

407. 3:23:12

     from an unsustainable source uh so one way we can solve this is by reducing a website's page weight right um and for this hackathon I want to focus on a very particular group of images on a page that we all hate and I'm really sorry marketing is near you're going to hate me but it's ads right uh none of us like ads and ads can make up anywhere from between 18 to 70 percent of a uh page weights uh for a regular web page which is a staggering amount um now you might already be thinking I

408. 3:23:43

     can switch on an ad blocker and already do this well you're not considering the Creator because they miss out on the money that they that they would have made from serving up the adverts so my problem statement was how can we use near to reduce our digital carbon footprint all while promoting a Creator economy uh so I built pomegranate I'm going to show you with a demo hopefully this is going to work uh we're going to rely on

409. 3:24:05

     past Sam to run it through uh cool so you can see here we're on the public web page I'm gonna hit get started uh then it's going to prompt you to sign in with your near wallet uh you can see it's requesting a full access token uh uh good stuff choosing an account hitting next good okay now it's prompting us that we haven't got the pomegranate extension installed so we've installed it and now we're hitting Link account that's sent our near information to Pomegranate which is up there now and

410. 3:24:30

     says we're logged in which is great uh I've set up a test web page uh just a blog post and you might see that there are a couple of ads on this page uh which are not good no fun um so what I'm going to do is open the pomegranate extension and we can see that pomegranate is enabled on this site and we can see the address of the owner of this website up the top and we can see that by enabling pomegrant we'll

411. 3:24:53

     reduce the page weight by 23 percent that number's right by the way it works it out in real time um and then uh we can choose the support if we want to and we can see the number of carbon that's been saved and the need that's donated you can see as I hit support what happens is the ads disappear from the page we've told the page we this person's trusted we know who they are you don't need to show them adverts anymore and we start to stream them a very small amount of near as

412. 3:25:18

     compensation for them not showing us adverts we can also see that the numbers for carbon have start to go up as whenever we'll be served ads we'd be burning carbon we're now not anymore burning carbonate releasing carbon uh good stuff cool sorry Paul Simon needs to catch up with me I'm going too fast now good stuff I got 10 seconds bloody hell okay keep going keep going okay so to add um as a Creator to add uh uh pomegranate to your website all you have to do is add two answer code uh

413. 3:25:51

     uh there was perfect tool because it's carbon neutral which means we're not using any carbon to send funds to and from people um to do it and does some challenges and thank you very much any questions to Sam so I'm assuming the idea that website Builders want to integrate this because otherwise people will just re install Adblock and like how how what's the dynamic between websites integrating this users

414. 3:26:24

     installing Chrome extension and pretty much things like Brave which are already kind of doing and removing ads I knew Brave was going to come up so I did my homework so brave only has 62 million monthly active users compared to Chrome's 2.6 billion so Chrome extension is the perfect tool to do this um as for the other comments creators will lose out if people use an ad blocker so it's kind of like an ad blocker alternative people already pay

415. 3:26:49

     for YouTube premium to not have ads on YouTube for example why shouldn't they on on smaller creators websites but it's like I guess like does your JavaScript add like a thing on top saying if you don't want to see ads install pomegranate program that absolutely could be done uh not on the scope of the hackathon but yes you could have a little uh that pops up and says hey if you don't want to see ads Do It um we pass down information to the client client's code can then decide how

416. 3:27:13

     they want to execute it it might be to remove ads it might be to increase functionality it might be to show up upper and all that absolutely up to the Creator idea looks good how you're going to deal with the generic move in the in the ads being inside of the content instead of kind of pop-ups so we let the creators of the websites deal with it basically so we we pass down true or false

417. 3:27:39

     effectively at the end of the day right are they are they enabled on this or are they not and so what content is displayed what ads are displayed what ads are not displayed is totally in the hands of the creator of their website it's better not to force something on them and let them choose how they want to integrate it because maybe they have different ads from different providers on the same page and maybe they want to enable some and not others do you use some kind of engine to remove the ads sorry do you use the some kind of engine

418. 3:28:03

     to remove the ads uh no so just inside or for the ads extensions talking to the page page is listening for current extension uh a bit of verification happening in there and then depending on that the client can decide what they want to do okay so how do we get like Forbes to set it up so you're absolutely right yeah so how the hell do you roll it out I think the tip is to is to Target a couple of big creators right get them using it get

419. 3:28:30

     it on their platform hopefully with a large volume of users and hopefully we'll start to see some adoption um I think especially this the sites out there like patreon where people pay money every month to support their creators they don't get anything back necessarily for this they have an ad free experience yeah thank you Sam okay cool yeah thank you and the next team is omomo leveraged hey guys my name is Mike and today I'm

420. 3:29:05

     representing money market protocol and his future on mobile Leverage so uh visualize to that uh we have a lack of instruments in Dubai and utilization Capital near in general and there is no leverage trading especially decentralized um what we want to build yeah we want to build truly decentralized project and with all transactions on chain we want to boost trading volume of refinance as well uh we want to use deep

421. 3:29:36

     liquidity of learning boring protocols so how it works let's imagine Alice has one thousand dollars and want to open leverage position of near Long Distance and here she goes to our platform and deposit uh he here one thousand dollars smart contracts land borrow nine thousand and goes to a refinance and put a ref on the ref a near to ten thousand dollars after that uh she's just uh hold it on a smart contract

422. 3:30:16

     let's imagine near double his price and she want to close her position in profit she get back put the button smart contact goes to a refinance cell near position uh to a pool get back uh replay borrow your borrow and the rest moved to a Smart contract to her wallet what about challenges the challenges was disconnecting connected on mobile Finance connecting a ref and connected uh our existing protocol and testing

423. 3:30:55

     especially testing because there are a lot of cross cross country contracts what's next where you want to build this product in a nearest Fusion we want to add additional risks we want to create and launch a liquidation board and to connect decentralized Oracle press Oracle here's our team I think yeah so how how can things go wrong for Alice it's one thousand dollar in but how does it go wrong

424. 3:31:35

     I think she should believe if near will move and what if it doesn't go out yeah because if if she wrongs what will happen in that today uh just imagine that she put these positions and near price just dropped to a 10 percent our liquidation boat goes to a Smart contract gives call my position is closed on the near uh here uh smart contact repay your debt okay and the difference moves from your

425. 3:32:07

     deposit to repair the debt in full so she will lose this difference between drop price and your deposit uh difference not could be more than her first deposit how do you deal with slippage on refinance like um we at the moment we going to implement just huge pools uh which has a low slippages for example near wrap DTC if and so on maybe stable coins to each area in the future uh they

426. 3:32:48

     think we will connect our dexes when ecosystem will grow and split it between different exchanges why do you want to connect to a mama or London why why cannot you connect to existing or other Landing protocols and Source liquidity from them yeah because if you connect for example to Bureau yeah they don't allow us to land uh to borrow more than our deposit if you own liquidity and we're lending pool on our borrowing pool on our platform we can afford it because our

427. 3:33:25

     smarter control it if we will go to a bureau with this protocol and make some connections and Implement uh like white reliable solution to them it could be with the borrowing rate for the position be dynamic um it depends it depends on the situation thank you thank you thank you mine is here yeah Commission thank you so much and the next team to present is actually going to present as a team

428. 3:34:08

     uh please welcome the carbon games no team where is the wrist ah but which team was going to present us oh okay so she's going to present alone can everyone hear me yeah yeah we can hear you and you can see the timer in there okay great hi can we see that and I'm the co-founder of the carbon games the issue we are trying to solve is that of rewarding users for lowering their CO2 emissions and we think this is a problem that everyone faces like we've seen in these presentations but for

429. 3:34:43

     these 11 000 companies in the EU it's more urgent because the government will charge them a fine if they don't show that they've lowered their emissions year by year next we'll see a video of our solution that we built to address this problem clicks on create wallet as voila a few seconds later choose the design and their wallet address students use an instant notification but she was just aired on to the game she checks out her wallet page

430. 3:35:48

     so it's back to the main screen to find a car she wants to go to the next area his car what's any exact request Sarah receives details to pick up Android and he can also attract Sarah to come one minute pick up and look at the gym when they arrived at the events eighty confirms the Cardinal is complete and even how much CO2 she said what what all they're going to see nfts for completing their first card and that's how easy it is to get started with the company games earn credits nfts and more awards for cutting down on your

431. 3:36:40

     CO2 emissions stay tuned for more sounds of the vehicle great so we use the newer JavaScript SDK and what we're most proud of is how easy it was for Sarah to create the new wallet she didn't even know that she was interacting with a blockchain here is our monetization strategy we'll partner with event managers charge them to list their events we'll have premium user accounts and the future will be the charge corporate for their commuters

432. 3:37:09

     we plan to grow the 12 major European cities in the next 12 months and we'll be at the web Summit this year this is our team 12 members for women we all care about the environment download our app test it out and give us your feedback thank you very much time so adoption tell me more about the event how does that work yeah so you can actually all try today and the example we showed is the after event at our Studios we've listed all the events for now where we plan to partner with near or

433. 3:37:46

     the web Summit actually in the future to add all of their details and people will just be able to click on it and join carpool offer carpool we also have an option to create a meet-up meet together and then call Uber if there's no carpool available but again we're taking one car of the road also if you download the app this link will be in every account so you can easily share it with another person they

434. 3:38:11

     can download the app next how do you see building your own app versus trying to partner with Uber with bolt kind of actually getting it integrated there could be something but we are a lot more limited right now to specific non-strangers we don't want them to carpool with just anyone they carpool with someone to go to an event they have similar interests or their carpool with someone to go to work they already kind of know that person you're not with complete stranger so it takes that danger out of the situation

435. 3:38:48

     thank you so much hi thank you thank you we have two more teams to go so cheer up it's been a lot of hard work and a lot of team members so we decided to let them all go on stage to pitch our next project only funds hi everyone GM has anyone been to eat Denver before okay would you mind thank you I'd like to welcome my amazing team up here please give them a warm Round of Applause we did not know each other before Sunday none of us knew each other

436. 3:39:26

     before Sunday incredible and then would you be willing to full screen full screen oh sure you do it sure thing a play full screen okay come up oh my timer started all right hello everyone my name is Derek Holman and I am very proud to be introducing you all to only funds the web 3 fundraising platform that helps to solve exactly one key pain point that I want to check we all know about has anyone here ever funded a project on Kickstarter okay you need to be more generous has

437. 3:40:01

     anyone ever contributed to an Ico in 2017 I'm sorry for your loss has anyone ever minted an nft over the past year and has anyone ever been disappointed that the team either completely disappeared or went in a direction that was completely different from what they promised so we all know the pain we've either experienced it or known somebody who donated money to something they believed in but then they had no power over the

438. 3:40:25

     funds once they had been given we wanted to create a web 3 smart contract that empowered the backers with a dow government style simple erc20 vote where for each near or eth or dollar they donate they receive one vote and here's where it gets fun not all of the money is initially given to the team the founders only a small chunk a parameter you can set say 25 percent and then the team commits to provide an update a milestone a checkpoint for the community

439. 3:40:54

     the backers to then do a vote which would allow them to either in the best case scenario release the next chunk of funds or in the worst case scenario recover however like what percent of the funds are still remaining up to 75 80 90 percent you can imagine would you seriously tell me raise your hand if you would be a little more willing to donate to a project if you knew that if they completely walked off

440. 3:41:19

     the face of the Earth and you could get 90 of your money back would that make it a little easier for you to donate that is our key value proposition we are relying completely on the idea that the founders want to be held accountable and the community wants this mechanism secured on chain to create an easier form of coordination that's a little more trustless on the demo behind me we've showcased our live on Aurora test net app that has a create project

441. 3:41:45

     functionality you can upload pictures set the various parameters I mentioned and you can also explore the projects that are currently live including ours if you'd like to donate so if uh you're thinking about fundraising either your next Pet Project or a non-profit or some type of public good we encourage you to consider our platform as a place that makes it that much easier for people to donate to you and we hope

442. 3:42:10

     increases the amount that you raise that much more thank you how do you make money we're thinking about implementing a protocol fee something like one to two percent from projects that successfully raise if it doesn't successfully raise to whatever its minimum was we wouldn't want to take that but for projects that raised you know Kickstarter easily goes for several million so it only takes a few Darlings on our platform to be able to sustain some development for a year do you see it's not being just for

443. 3:42:48

     donation but also for Equity fundraises this is something we have obviously had to talk about a lot behind the scenes the fine line between donation and basically a Saft right like is this erc20 Limited in scope to the initial funds or does it then become a tokenomics platform where you're saying something like this is 10 of initial Supply blah blah blah those are features that we've talked about but frankly we need to do more research with Founders because tokenomics is extremely

444. 3:43:12

     complicated and it felt silly to pretend that we'd figure it out in our GUI right but we're open to that we're thinking about it yeah the second part is much more complicated especially with the sourcing good projects for actually seeking for this stuff so in case you are you're aware of angelist model there are specific people Syndicate leads who are actually having these angels who are actually having the access to the

445. 3:43:36

     projects who are seeking for funding right so it is not that simple to to advertise your platform for them to come in so you might might can might willing to consider introducing some additional roles in the platform for the people who are actually bringing projects in such as like an accredited investor checkbox to like allow that type it's just like Angel Investors to which uh like Elia for example right yeah we all agree he hears 100 Pages during

446. 3:44:06

     this conference yeah and he can bring these projects into the into your platform because nobody knows about sorry referral fee right oh I understand absolutely not that hard to implement right I think that's a wonderful idea and I just wanted to mention if it was both sides both printing projects as well as bringing people who will donate and we haven't even talked token incentives right and that's intentional but one thing I wanted to add is that we're playing more in the git coin public goods funding space where it's

447. 3:44:35

     let's give it up for git coin we're thinking about things like you know matching pools quadratic to improve just beyond linear investing and I just wanted to mention that it's very common in the Bitcoin space that once a project has its C legs its funding has been out six months or whatever that they retroactively airdrop to the people that funded them so that sort of already exists tangent to us even if we don't handle it and that was the most entertaining pitch

448. 3:44:59

     by now thank you thank you for your time now give us back the stage thank you so much oh and the last uh projects to pitch tonight on stage in front of our jewelry is uh X to earn did I pronounce it right here we go hello hello good morning everybody who would like a thousand years as a reward right we all love rewards but who would like to write a thousand lines of code for that reward anyone just like two

449. 3:45:46

     people that's exactly what we are trying to solve with X to earn we want to make it really simple for people to add rewards to their apps the way we do it is that you create a Rewards program on our dashboard uh you we deploy the subcontract for you on on our sub account and then you can pay out the rewards using a JavaScript SDK so I'll quickly take you through it on the dashboard I've just defined a program called neocon 2022 the reward is to win the hackathon and the price as

450. 3:46:19

     you can see is 0.5 near which can be paid out 10 times once I do this it's live on my dashboard I can add more programs uh we deploy this as a smart contract on the Chain so as you can see near con 2022 has been deployed and while paying it out all I need to do is import an SDK as you can see on line one and then just use the give rewards function to pay my users the idea is to

451. 3:46:45

     make it extremely simple for developers to start using rewards in their apps without having to worry about a smart contract code without having to worry about web 3 code so that a lot more apps can be onboarded with Rewards so what we believe in I think the first and foremost is that web 3 needs to feel like magic it does not have to be so complicated it does not have to be uh so

452. 3:47:09

     many Concepts floating around and being confused all the time the second is rewards are the future of consumer Apps rewards or incentives are going to align uh people like never before and the third is always be truly decentralized if you notice I did not mention an API key anywhere in my presentation that's because we have none right everything works without an API key so you truly own your contracts you truly own your reward programs and you could delete it anytime that you want to delete it