hello everybody konnichi WA watashi wa
muhammad us hello
de Guiche grim the beerus annum Dom
hello everybody
Graham de Barros my name I am the CEO of
bit cart and I'm also a member of the
expert committee on the Nomad Institute
my talk today will be on technological
sovereignty Bitcoin and human dignity
seeing as we're here situated in Osaka
in particular the Osaka Bay in the port
for what is essentially a human rights
convention I thought it was pretty apt
that people start talking about the
human rights situation here and in Osaka
if you don't recognize this statue this
was erected in San Francisco in 2017
which represents a Chinese teenage girl
a Philippines girl and a Korean girl due
to the 200,000 enslaved women that were
taken and captive by Japanese during
World War Two the Asaka mayor doesn't
seem to think that this is a reality but
I thought it was necessary to share this
with you in the context of presenting
here in Japan so what is technological
sovereignty just to break it down for
you we're talking generally about
freedom from outside interference
whether this is as a member state or as
an individual Bitcoin which we all know
and love globally accessible
indiscriminate and irrefutable and this
can also be synonymous with human
dignity or human rights which is
universal in a Lea belong conditional so
colonialism or pre colonialism kind of
looked a little bit like this on the
left where generate Great Britain
Portugal etc would take land captive to
produce products or spices and export
them back home well today we've
basically gone into a digital
colonialism which revolves around
economic and media and we know this true
you know debt that's essentially what
the West are imposing on other countries
so it's a form of us Hashana me
how do we protect ourselves from this
well we use open source technology
number one Bitcoin serves as a
potentiality for a more humane approach
digital rights duties and privileges and
there's already countries today that
have mandated this in their laws that
their public administration will only
use open source technology this includes
Venezuela Russia and Cuba due to obvious
reasons so I come from the Republic of
Ireland where we are a very neighbor or
neighboring country Great Britain August
is tiragon Tonga tiragon annum and that
roughly translates to a country without
a language as a country without an
identity and despise a hundred year
revolution where we have an independent
free state in Ireland
I notice how I am speaking in English
Nate in English language which I am
actually an Irish native my number one
language is Irish and yet
ninety percent of my population speak
English they watch English movies they
listen to English music and they support
English Tellez
soccer teams every Saturday they go to
Manchester or Liverpool or London to
support a team where they actually have
this in their own country so you can
kind of see this as an indirect
colonialism which is which is prevalent
in many many countries today so how you
know how do we serve to protect people
with Bitcoin while we're doing this with
our product bit carrot and it serves as
an alternative economy in countries like
Venezuela where people are able to
actually trade in gift cards using
Bitcoin and Bitcoin lightning and live
on these products and this currency as
an alternative to the Venezuelan Bulevar
for example so someone on my website can
earn in Venezuela in an hour five or ten
dollars which is the equivalent of 30
days salary for the average person in
Venezuela so there's many teenagers and
young adults who are actually earning
more money with bitcoin a bigger
Lightning than their their predecessors
and their and their superiors so I would
encourage you to maybe check this out
it's called Picard Vicario and
yeah I guess that's kind of it for me if
if anybody wants to obviously look at
this website please check it out but
also in general I think bitcoin is is a
very very powerful tool and that's why
we're here to use it so yeah that's all
for me I don't really have much time so
hopefully you come meet me afterwards
and you come chat to me you can notice
me in the Irish Jersey so yeah thank you
very much and enjoy the rest of your
time in the lovely beautiful city of
Osaka hello everyone my name is Duchamp
cottage and I'm from Rockaway blockchain
today I will talk about governance of
decentralized protocol I mean as there
is certain schizophrenia about the need
for the government during its a life
cycle so in the early stages the
protocol is bootstrap by the founders
and basically all the resources
including the team the roadmap are
allocated and control by the founder
however as the protocol becomes more
mature and people become dependent on it
suddenly the features of being
centralized fast flexible becomes
unwanted I mean nobody really wants to
lock in their future on a platform that
is actually controlled by a bunch of
guys in a very non transparent fashion
so before we go further let's ask
ourselves a very important question is
decentralization the number one problem
to be solved at this moment in the space
definitely not however can the protocol
succeed in the long run
I mean success in a way that it will be
used in a business critical systems and
I also think it's not possible
so I mean looking at the current length
landscape of of project and I'm an
investor so I see a lot of platforms
being created we expect I mean the
project expected the transformation from
centralization to decentralization will
somehow happen however usually it's not
really the case so I mean again looking
at the history figuring out on the way
doesn't really work I mean whatever
foundation you can you can put into the
slide and it would actually apply so how
can it be actually done what can we do
to the proper transformation from the
central stage to the decentralized one
and I think it's really important before
we come into the details to understand
various actors in the ecosystem and
basically start the process as as as it
as first of the users get onboard into
the platform because before that it's
perfectly fine if the protocol is in the
central stage being controlled by the
founders investor support them core
developers have the same incentive to
basically make it success however when
the users start being on boarded and
built prototypes on top of the platform
unless it is becoming decentralized it
is governance they will not be
incentivized to switch to the production
state so what are the key takeaways from
here I would say take decentralization
as a process it's not a state is a
process and in implemented into your
projects as a severe extreme that can be
regularly checked on for a business to
switch to a protocol it has to have
certain confidence that it will be here
tomorrow it will not change so the he
can rely on and be confident locking the
future with this platform
check out aragon check out our stack I
really think these tools can be
implemented to govern the protocol in
the later stage thanks very much and
have a good day hi everyone my name is
Bobby I'm the co-founder coin gecko
topic on presentation today is its
market cap an objective measure of
crypto assets value so yeah coin gecko
for those of you who do not know what we
do we are crypto data aggregator we
track price market cap trading volume
for over five thousand three hundred or
generate the exchanges we are on top to
top 10 largest crypto websites in the
world we have an API that's used by
mighty wallet eaters Kamath amassed reso
every quarter we publish a crypto report
today we just publish a cute report you
can check it out on our Twitter at Wayne
gecko
so based on my topic its market cap an
objective measure crypto assessed value
what are things that we have learned
from running coin gecko in the past five
years is that anything that gets
measured gets manipulated and everyone's
out there trying to manipulate things so
don't believe everything that you see or
read on the internet and and especially
on crypto sighs I guess question are
these how do you end up in this
situation
why is everything that gets measured
gets manipulated so I guess the answer
is pretty simple I call it a fake it
till you make it
theory everyone's got an object if you
run a coin you have a market cap you
wanna be that won't be known as the
token that has the largest group the
best took the bet to be the best crypto
token in order ways that people measure
crypto assets at this point in time is
using market cap so everybody wants to
be known as the token which has the
largest market cap and do what I do is
they try to do all it can do to
manipulate the data and when they have a
large market cap token we get some
positive media attention and then some
people start researching about this
crypto assets and then some people start
believing that this token is actually
reliable and big and all and then some
people start putting in orders and then
sooner or later perception becomes
reality and this becomes a
self-fulfilling virtuous cycle so I
guess the question that you should take
a look is how is market cap calculated
so if you take a traditional Mac if you
look at traditional market market cap is
pretty standardized it's basically price
multiplied by shares outstanding and in
traditional market shares are only
traded on usually one exchange and and
the shares outstanding I define it
basically all the shares that have been
distributed that is attributed to
shareholders including shares helped by
in restricted shares helped by company
insiders now if we use the same concept
in cryptocurrencies
then token market cap equals token price
multiplied by talk and supply which is
actually a very questionable metric to
be gave me but let's just kind of
stretch it and let's see so how do we
calculate token market cap so price is
basically relatively simple tokens are
traded across many exchanges you take
the volume multiplied by the average
price across our exchanges and the
supply now this is becomes hot how do we
actually measure the supply everyone
uses circulating supply but how do you
actually
supply so let's see if your crippled
asset token team and you want to
manipulate your market cap now let's try
to keep our X at a very high market cap
so based on this formula token price
times token supply so there's support
things that people do to manipulate the
supply and we've seen this happening
many times in our work a coin gecko so a
lot of these guys try to come up with a
token which have a large upfront supply
and what I do is they do pre mind the
insta mind em and then you include
exclude them from the circling supply
and it's a debate that a lot of people
go through what about tokens they have
been issued to company teams investors
token do you include them or you exclude
them
arguably you can say that tokens that
are held by the company are restricted
tokens and are therefore like treasury
shares she should not be included to
include it
what about tokens have been issued to
team the team if it's love or not love
you wish talking should be including the
supply and all this thing makes a big
difference to the market cap and what
about airdrop tokens with create talking
with a lot of stuff a lot of tokens and
just airdrop them like you guys all have
et remodelers and you know when you're
on either scan you get like random ERC
20 like being distributed to you like
all this does do you count them as a
circulating supply but nobody really
uses them right but from the team you
see I've airdrop these tokens to
everyone everyone with ATM address have
these tokens so it gets populated in the
security supply as well what about lost
tokens for example like by some measures
like Bitcoin has two to three million
tokens that have been lost do you
include Satoshi's coins for example in
the second supply and I guess the
biggest one of always are for tokens
Bitcoin has Bitcoin cash between sv e
theorem has atrium classic it's very
easy to form a coin these days but do
you include the tokens that have never
been claimed at the moment a lot of
measures of market cap includes all
these tokens they have never been
claimed and actually hardest thing is
how do you even know which which coins
have been claiming which have not been
claimed at all so let's remove some of
the numbers there are many ways how you
can manipulate numbers go out there try
to figure out a lot of website claims
they have the circulating supply we try
to be as transparent as we can we put
harder methods so this is an example of
0x we take a total supply - orders
tokens they unlock but go out there and
try to find and it's really hot
to try to reverse-engineer all these
numbers from order crypto aggregators
out there in the market question is are
there any other valuation metrics
besides market cap then I guess some
things that you should take a little
consider is network value to transaction
ratio the nvt ratio popularized by
Crispin insky so take a market cap and
then divide it against number of
transactions because you may have a very
high market cap but no transactions
going around you may want to take a look
at developer activity take a look at how
many commits how many pull requests how
many stars how much activity is going on
a development take a look at nap total
number of transactions are there any
transactions going around any raela's
cap and maybe for exchange based okay I
want to take a look at any DCF model to
take a look at cash flow basis so yeah
basically that's all I have today so
thank you very much anything that gets
measured gets manipulated thank you
what's up Def Con how you dude yes thank
you honestly uh start off just want to
say thank you for choosing my talk to
come to realize you guys have a lot of
options might not be the most
sophisticated talk but hopefully the
most entertaining ah quick shout out
I'll love you guys all right so I'm not
gonna be talking about my divorce
unfortunately for one of my co-workers
who gave me that little tip but will we
do we'll be talking about how in school
you know you learn about how going
through different types of elements when
you're thinking through things are
important to you so like separation of
church and state and then now with
crypto currencies how is possible to
separate state and money right so let's
go through it real quick so give you an
overview of what I'm gonna ramble about
start off with little historical context
about why was it important to separate
church and state and then provide a
little perspective and finish with the
crypto anthem all right so a quick
survey of the room don't be shy who has
paper money in their wallets show of
hands
and nobody not corners full of no
corners uh I still love you guys though
all right let's be serious now all right
so why was there a need to separate
church and state right
right why was their knees because life
is super complex right I'm trying to
figure it out all the time people need a
good framework there's a lot of purpose
in life that you need some guidance on
right so it made sense why would you
leave something so I guess crucial and
important as an individual and give that
to kind of essential Authority like to
the government to the side for you all
right so can we apply that same logic to
money right I would think so so just
think about it money affects every
aspect of your life who you date what
kind of food you eat what kind of health
care you get I mean pretty much just
about every facet of your life so why
would you let someone else choose the
type of money that you can use when
literally anything that happens to you
is based on how much money you have and
what you can do about that through that
money and our current financial system
what is it based on faith that's not
good
right let's go through that all right so
uh basically like a person telling you
that the faith of your value of the
dollar is based on the world the word of
Donald Trump it's not a very good word
but uh so like each unit of account in
our current system represents debt right
so that is a promise to pay back someone
else down the line in the future right
and you have like the US government
president Donald Trump saying like
listen the dollar will be worth
something one day and you'll be able to
pay back that debt I don't feel too good
about that so ensure aetherium has
created a path forward right you guys
know this it creates a distributed
system where things are immutable it's
just a perfect environment for you guys
to have self sovereign money separate
from any central authority to kind of
control that for you and that's
basically about it everyone thanks for
having me
I'm here to talk about defy risk and how
we can make participants make better
decisions
so I'm Jack I'm an engineer at consensus
I've been working on d5 before was
called defy I love d5 because I've
always been interested in computer
science and finance and is a longtime
dphi user I've got to see how much the
industry is growing in maturity over the
last two years and when I think about
the future of defy I get both excited
and worried as we know defy users are
chasing the highest rates without asking
why are the rate so high there is no
such thing as a free lunch for an
investor to be rewarded with high rates
they have to take on large amounts of
risk as dphi grows how do we ensure that
users are encouraged to make optimal
financial decisions I couldn't find an
answer to that question so I try to
answer it myself by creating the defy
score an open source simple proxy for a
platforms risk level that users can
easily understand it's based on a model
that evaluates several types of risk
that are common in d phi d phi platforms
are complex and include new types of
risk that differ from traditional
financial markets to launch we'll
consider some of the largest and most
easily quantifiable risks the intention
of this score is to better educate users
on the unique nuances of smart contract
enabled financial markets this model can
and should grow over time let's dig into
some components of the score one
component is smart contract risk the
ecosystem knows this type of risk all
too well we've learned a lot of hard
lessons because of it while no smart
contract can be guaranteed to be devoid
of bugs a thorough code audit and formal
verification process from a reputable
security firm helps uncover critical
high severity bugs that could result in
financial harm to users an important
aspect of mid mitigating smart contract
hacks is ensuring the code is audible
auditable by the public smart contract
code isn't restless unless the public
can read it and verify it it needs to be
open sourced
security through obscurity offers weak
guarantees at best and at worst results
in delays and finding critical bugs
while bytecode D compilation is possible
it's a difficult and time-consuming
process and makes it hard to follow the
mantra of don't trust verify
however code risk is only one aspect of
the risks one faces when investing in D
Phi products financial risk is another
element sorry
currently the only method to mitigate
unwanted amounts of credit risk in D Phi
is to use over collateralization while
current D Phi platforms use very
conservative collateral factors the
highly volatile nature of crypto assets
means that these high collateral factors
may still be insufficient over
collateralization is by no means
foolproof liquidity and insolvency
crises often go hand-in-hand
there are numerous historical examples
of these types of crises incentivize
liquidity does not mean guaranteed
liquidity a user takes on the risk that
they will not be able to draw their ass
withdraw their assets on demand because
all the assets are currently lent out
but wait there's more there are other
types of risk that defy platforms face
users do not have the same safeguards
they have with traditional deposit
accounts developed countries bank
deposit accounts are regulated and
insured up to large amounts however
there are exciting developments in this
area insurance products like Nexus
mutual u-men maker developing more
occlusion resistant Oracle systems but
we still have a long way to go here are
some of the possible here's some of the
possible future developments for the D
Phi score the question I'm here to ask
you today is what could an open source
financial rating agency look like the
future of D Phi is really exciting if
you're not involved yet you're missing
out the parallel financial system is
reaching escape velocity we can hedge
away a lot of this risk but we need to
be aware of these risks first let's be
responsible when creating this new
system
if you want to help shape the future of
risk management please get involved here
are some of the ways to get involved we
won't feedback if you're a data
scientist or a risk management
professional please reach out thank you
the computation it's for geeks right
like when you think about the compact
contracts we think oh like what's the
use of that for other people than
developers who want to see how contracts
work but really there is a lot of cool
uses and I want to show them to you in
five minutes
so one thing of course security and I
don't know if there are any security
people here but quickly anyone can spot
a bag here in this contract
like some people analyze so IDT
contracts try to figure out what's wrong
there anyone know okay perhaps it just
is quiet audience or perhaps no one sees
that there is this small assert at the
end it doesn't have the brackets which
means that like compiler only shows you
know it's like saying assert instead of
calling an assert so it doesn't get
executed so so this function doesn't
work really it doesn't check anything
anyone can print any amount of tokens
from from that contract and you know
it's very hard to spot in solidity but
when you work with decompile sources you
really see certain patterns very
obviously and there is this intermediate
form that also is available that that
you can work with and write very simple
and very easy analyzers for contracts
and this is also awesome because well I
built a whole database of all the
contracts on the main net decompiled I
put it in the big query and now anyone
can ride in five lines of JavaScript a
function that in 20 seconds will show
you all the contracts that are messed up
so just line by line contract by
contract all the hundred contracts that
the don't check certain values properly
and you can print tokens for yourself so
so that's like a fun case like don't
worry although those contracts were test
contracts aside from five and those five
were already exploited and there are
some
like horror stories but people didn't
notice that they could be exploited so
so there are no other open
vulnerabilities like this but having
access to the compiled versions of
contracts really allows you to do all
kinds of fun security analysis and
trying to figure out what's going on on
the network another case was oh yeah so
that this contract there was a constant
in Apple Park and the question was we're
changing the virtual machine and there
is a potential back in some of the
contracts that happens because of the
change how do we know which contracts
could be affected by the new version and
in January when there was this this
whole whole fork that was delayed
actually this kind of stuff that the
company's version was used to figure out
how many contracts and the main net
would be affected by some changes in the
virtual machine so this is so very
important for the community
but again this is geeky stuff a little
bit so there is more and it's more user
facing for example a very simple thing
that you can do and we did that during
one of the hackathons is analyzing who
are who has the access rights to a
contract so you grab a contract and you
can analyze the sources and figure out
oh this storage contains the address of
the administrator and this administrator
can be changed in these dis and
dysfunction or this contract has some
other like five administrators and they
can be accessed by this and that so
there is this simple tool that we wrote
into open source during one of the
hackathons that allows you to see the
yeah like all the all the possible
actors that are involved with a contract
you could also use this to really build
better user interfaces and this is where
we really get to the users these are
part of view because when you can
analyze contracts better you can
understand them you can build a better
user interface there are actually
explorers who don't show sources for
many contracts just yet and when we have
good the compiled version we can show
that to the users so that's also quite
cool because that kind of levels ground
between other blockchains explorers
which didn't have sources because they
didn't want to get them from either scan
and and eater scan and one more more
cool thing
transactions like many users right now
there is no good way to show to the
users how transactions work really like
this is the state of the art I guess
ether scan right now
so it shows you only like input data you
can see that on the bottom it says
transfer function some parameters and
that's it but when we have access to the
D compiled versions of the contracts for
any contract for any transaction we can
show it quite nicely how and what every
function does so actually there is this
version online right now that we built
on top of that on top of those sources
that shows you not only what was
transferred the amount of money that was
transferred but what is being used like
what are the functions that are called
what do they do and it's still not super
accessible to the common user but it is
quite easy so roughly that's it there
are many more use cases but check out
check out the compilers in general and
looking to the fields more it's quite an
awesome stuff thank you
[Applause]
you