[Applause]
so the accuracy of your call may be off
when the network is congested and you
know the Oracle maybe not as resilient
right maybe you don't even get enough
transactions through to to reach each
one right and so this really doesn't
scale all that well right and it's
pretty expensive to run so but you're
trying to come up with something that
most like collateral die we're gonna
have many different kinds of collateral
right you can use many many many
Oracle's this kind of architecture is
just not going to work so there's also
one huge criticism that people will
usually give us and it's why if you
don't reclaim that these are
decentralized normals why can we not use
not change my sources you know why
aren't we using this law why aren't we
using way suspects why aren't we using
kyra the big reason is liquidity right
so often liquidity is in general much
much higher than I'll chain with
Brittany so it's much easier to
manipulate an order book on chain than
it is to manipulate an order book off
chain right so if you don't have a lot
of the clarity of your book it's very
thin you can spend a very small amount
of money to manipulate the price a very
kind of good story that illustrates this
is earlier this year Big Macs
effectively got played and so for those
of you who don't know about happen bit
max pulls its prices by taking the
average of point base and name so
bitstamp tends to have about six times
less volume than point base so when the
attacker did was they opened the giant
leopard for position on MX they then
sold a ton of ptc on vista which crashed
the price which caused the pit mix
oracle rights to read a super low volume
and the guy made you know i think
millions of
millions of dollars so that was not good
but there is a much much bigger problem
with watching price forces and that is
if you can you can imagine for example a
contract right a contract can do a lot
of different things so if you tell your
contract to do a series like a sequence
of different actions you can actually
you know gain these Unchained price
forces with very very very little risk
so this leads me into a very big point
that I want everyone realized decks as
an Oracle is a huge anti-pattern so
effectively an attacker can atomically
execute a series of transactions and
single block to manipulate the price of
decks and all they're going to do is pay
dusties and to take zero risk absolutely
none so there's guy called sands easy
son last week who released the paper but
I was kind of really in to five that
before this paper was published back in
February even a slob
tweeted this about themselves and yet
people still went ahead and did so you
can read you know the attack on the
tweet itself right effectively the
attacker will just make a huge trade on
you know swamp right that will you know
either drop or raise the price they will
hook whatever things are trying to
compromise right to check the price from
you know swap they will then use that
manipulated price right
some kind of profitable action and then
in the same transaction we'll go and
we'll sell all the stuff they bought in
swap our soul right back I until they
effectively just lose the sagacity for
that transactions right as risk-free so
in this paper of SNCC so I publish
effectively way showed was that you can
compromise feed X and V Z X which allows
you to do that this case you know create
a huge leverage position and easy access
pages to spat borrow against I guess
plow alright so if you can make your
collateral a super super high price
right that you can borrow a die right
and then liquidate back that I made the
profit there and so I'm just going to
read this quote from him because he can
save a lot better than I think rewording
but effectively a deed accent bzx assume
that you know Slavic Tiger would be a
source of accurate price data however
and after a reef red X just means that a
trade can be made at that rate while
after a rate for a defy project means
that's actually close to the fair market
value okay so let's talk about or plus
v2 this is what we are going to be using
for MCD and has been used by a couple of
select partners since back in February I
believe so our main goals with or plus
b2 was we want to make them saleable we
want to reduce the cost considerably we
want to make them more reliable and we
want to reduce the links
so one of the key kind of technologies
we're using a normal ski - is secure
stoplight so what secures table is is
it's a peer-to-peer gossip network you
can kind of think of it like Twitter SS
where every here is a Twitter user right
and they post a message and that message
goes on their feet and anyone following
you know that Twitter user will repost
that on their feet and so this is kind
of how all these messages can propagate
along in this gossip hell it's actually
very similar for watching and that's
everything is hash linked so in that
sense it's immutable you can't go back
and change the message you can't go back
and delete a message
okay so there's a lot of stuff on the
slide but let's let's take this whole of
a slow so the fees are no longer pushing
their prices to a price new contract
right if you look at the two kind of
sections of this I've kind of cordoned
off this off chain process and the on
chain process the off chain process has
gotten considerably larger and the on
chain process has gotten my favorite
pastas government service floor so
effectively now these will just push
their price updates your stuff up and
since the cost of that is affected with
free the feeds can now kind of post
prices at a much much lower sensitivity
right so you're going to be much much
more accurate right into the
much less than 4 and up recent data to
work with so basically then real layers
is a new concept a real layer is a boss
that anyone can go around any individual
any third party you know you could run a
relay and what these real layers do is
they pick a bunch of these crises
messages and then they swarm them and
then they put one transaction through
the media master contract so instead of
having any feeds doing n transactions
you now can have any fees and all you do
is one transaction no matter how many
feats you have so in terms of
scalability that's a huge improvement
and effectively the way that we do this
you know how do you make sure that these
prices are lifted it is that the feeds
are effectively using their etherion
private key to sign the price noodles so
they sign a message essentially saying
this is the price of this asset at this
time and in the median Iser contract you
can use a solidity function call you see
recover that will then be able to check
all that data and make sure it was
signed by a legitimate feed another
thing here is that the number of s store
operations has been reduced considerably
so for those of you who don't know an S
store is just you know writing a value
to stories and it's a very very very gas
intensive operation so the less as
stores you can do to achieve where your
transactions are going to be so we got
it from scaling from two times the
number of fees to just two another thing
I learned well is that this architecture
is fairly blocks and agnostic so if you
look most of the pieces are off chain so
if you want to work
attention to a different watching the
only thing you have to do really is
recreate the median Heiser contracts on
that other blockchain and then you just
point your real Ayres to that other
watching another thing is since no block
messages are just JSON you can handle
all kinds of data it's not just pricing
table right you can handle many many
many more types of data so it's very
very dynamic okay so let's talk about
feats
so in orbitals b1 we only had one kind
of feed and we're going to label those
types of feeds dark feeds so with our
fees are is they're kind of these two
dominant like Sooners individuals and
organizations right that's submit this
pricing data and you know one of the big
criticisms we get you know let's not
know why are these people you know
anonymous I don't know if I trust them
is it just a bunch of maker insiders or
wheels or whatever right but the thing
is they need to be honest by necessity
right so if you if you are a public
identity right it's very easy to target
you so blackmail when you export you
coerce you it's also very easy for a
state after they kind of hunt you down
by being you know by having this
community you kind of protect yourself
from that right but the downside here is
as we said you know there's no civil
resistance and you don't know if all of
these fees are actually just one person
and people seem to really distrust that
kind of idea so what we're introducing
in our world owes me two is this concept
of a lengthy so length feed is going to
be if a feed that has a public identity
so the best types of like feeds are
actually going to be once run by
organizations because organizations you
know are
of people they're much harder to kind of
coercive blackmail they have more
resources and I'll talk about that they
have their reputation at stake right so
in that sense if you have a system that
has much length these right users are
going to inherently maybe trust that
system more right because so-and-so is
running like the Metro stuff right this
Bank is running a life you can I trust
I'm you know quite basis running a live
feed nitro supply base and so
essentially when it comes down to is you
don't want to have just our piece and
you don't want to have just like each
wait they both have kind of
disadvantages fly there's this kind of
sweet middle where this hybrid model is
kind of optimal where you kind of
preserve the hardness properties of dark
feats but you benefit from the
reputation of the lengthens okay so
let's talk about governance
so in Oracle's be to effectively
governance takes over end-to-end
ownership and management of every
aspects of the Oracles and so actually
as of this morning and I was on a flight
to Osaka here we passed four different
Oracle proposals so as at the spring
these are all official I can out talk to
you about them without any risk of
saying something that's not true so what
we passed was and I'll get into these a
little more a little bit the d5 public
feedback Volvo the Oracle incentives for
structuring proposal the responsible
Oracle migration proposal and the Oracle
Team mandate proposal so first along
define light feet proposal okay so we
are going to be adding dyd X 0 X maker
set protocol and gnosis as the
first license so that's the super
exciting this is just a first way
there's going to be a bunch more but
it's really cool to have these guys have
these guys on board okay number two the
Oracle incentives for structuring
proposal so we don't have to talk about
decentralized systems in terms of for
example like the data being you know
self dollar right I think a key point a
lot of people miss is that these systems
if they're going to succeed they need to
be self sustainable so in this diagram
on the right you kind of see this
incentive and alignment that I've come
up with and essentially what's going to
happen is that fees are going to be paid
in die every month by maker token
holders right and this is a payment or
the valuable service they provide right
and kind of an incentive you know to not
be able to speak in sermon the Oracles
are going to have a waitlist added to
them so you need to be on the white list
in order to access prices so the data
consumers are going to have to pay it
monthly and I to MK our token holders in
order to access the Oracle prices and so
the I'm not going to die right that's
going to be paid to the fees right the
amount of dye that's going to be charged
bank our token holders this is all
defined by governance so this is not you
know set by like the maker foundation
and the last proposal that I cover today
is the responsible Oracle migration
proposal so Orville's be one that's kind
of proliferated all around define and I
think that's super super cool right we
built something and everyone can use it
and everyone's building really cool
stuff on top of it but we don't actually
know how many people are actually using
this thing and it's actually kind of
scary when you think about it so you
know some people are open about it it's
breeding their complementation that they
use it right some people have talked to
me at conferences and say oh you know
we're using the Oracles but I'm sure
there's dozens and dozens more that we
don't know about and so it's kind of our
responsibility to be kind of a good
citizen of the ecosystem and make sure
that this transition goes extremely
smoothly so what we committed to of this
proposal is that orbitals be one is
going to Brian parallel with Oracle's T
2 until at least single collateral die
is shut down and so that is at least six
months out so it gives these
organizations six months to kind of
transition over to work will speak to on
top of that we're going to be getting a
whitelist access to the Oracles any more
moles any number of Oracle's for free
for one year so this makes sure that you
know Bill line is kind of has the rug
pulled out from under them right and
everyone has time to transition to the
architecture see if it's what they like
and hopefully a year from now you know
Volvo slowing us down
and so this kind of allows us to support
innovation right it lets a civil support
you know new projects right I don't have
any funding right that's just a demo you
know that home building something cool
all right if you can still use Oracle's
no problem and if it ever turns into
something
right then there's a long-term
management for the system okay and
that's all I have for you today if you
want to find out more we have a bunch of
different socials you can find us on
Twitter
our active chat really active forum and
active subreddit or you can come find me
always happy to talk about morals yeah
thank you very much
[Applause]