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hello everyone thank you my name is
Christopher
that's my colleague band we're from
brain bud and we're here to present the
trust lines network which is an open
protocol for decentralized ru based
currency networks so we broke the
presentation up in two parts I will
start by presenting the basic idea and
the problem we're trying to solve and
then band is gonna take over and he's
going to super sense the technical
implementation give you an overview of
the system and explain how things work
and where we currently are with the
project so to start off with mmm think
about something for crypto currencies
which is truly unique concept which is
this idea of permissionless
decentralized payments everyday payments
everyday purchases for all of us this is
unique because it enables us to payments
without the use of a bank account or any
kind of financial intermediary to do a
payment this is something which at least
on a global scale we haven't actually
seen before there are some problems with
it which is it doesn't actually work and
it's kind of kind of two really good
reasons for that first of all the the
issuance of these currencies are it's
kind of flawed because ideally we're
supposed to be able to turn on a
computer and and run you know run the
network and if we do that we're rewarded
with cryptocurrency for validating a
block we get some money and then we can
go spend that at a grocery store for
tokens but of course that doesn't
actually work because well mining is
kind of a specialist industry it
requires special hardware and most
people will never validate a block with
their regular macbook or whatever so
where it's the rest of us get crypto
currencies well we buy them on exchanges
and that's kind of a problem because
these exchanges will they give
cryptocurrencies for payments of really
poor usability is that we buy them with
fee at first and then we exchange them
to use something every want to use for
payments it's kind of a clumsy user
experience it's not really good for
for payments so if it were to rethink
this and say let's try to create a
cryptocurrency that's really good for
payments ideal I would present three
arguments that it should definitely have
it should incentivize being spent so
when I have it I should want to go spend
it it should not need to be bought with
fewer exchanges and it should still be
interoperable with the theorem ecosystem
or the cryptocurrency consistent because
well that's that's what we want right we
want to be able to use it with our
favorite dabs or protocols we want to
use it to buy years to 20 tokens
whatever one of the ways we could do
this is if we took money as i/o use and
implemented it on social networks and we
issued it in these individual trust
relationships and we use these trust
relationships to make payments we'd had
this global payment network which is the
original ripple idea from 2004 by Ryan
Fuger not what ripple is doing nowadays
but the original one and and it's
basically these individual trust
relationships which are people who know
and trust each other and the issue char
the credit lines and this works pretty
much how it works in the real world for
example if you go out to a bar and you
forgot your credit card most likely one
of your friends would borrow you ten
dollars or let you pay you know pay for
you for the rest of the night so that
you could you know drink beers with him
you could settle at a later point or
maybe next next week you you pay so if
people have these relationships already
they have these credit lines what we
could do is when people issue those
bilaterally between two trusting friends
they have them what we call a trust line
and this trust line consists of credit
lines and a credit limit and a balance
which indicates money was spent so let's
suppose Alice and Bob are good friends
and they want to the Alice wants to pay
Bob she spends five of her $10 credit
line creating an imbalance between Alice
and Bob and this IOU that Alice IOU at
that Alice issues Bob is then money
which was created because we have
something of value which was exchanged
for this I are you this is good for Bob
because Bob knows and trusts Alice and
has given her this credit line allowing
her to spend up to the specified credit
limit it's totally pointless to use
money for this or cryptocurrency we
don't we don't need that at all actually
because people do this all the time and
as I explained people do this at bars
they'd only cryptocurrency or any kind
of money for this this is just basically
how friends work
what we need money for is when we have
trust problems so if Alice wants to pay
Charlie she has this issue that Charlie
does not care about her argue because
Charlie doesn't know or trust him so
she's not going to accept that I you and
then if we go back to this payment
network what we could do is we could or
Alice could discover a path of
connecting trust lines that would allow
her to back the IOU with something or
someone that Charlie would trust so we
see there is a path of connecting trust
lines between Alice and Charlie and if
Alice then wants to pay Charlie what
Alice does is she spends 5 or $10 credit
line with Bob and then Bob spends 5 of
his $10 credit line with Charlie so this
solves two problems first of all it
allows Charlie to receive a payment from
someone that he can trust because he's
dependent on the solvency of bob and not
of alice so that's good for him it also
allows Alice to pay a stranger because
she can now send a payment to anyone so
long as it is backed by someone who
trusts that person of course this only
really works if Bob is actually willing
to do this but for Bob this is not
really a problem because his net balance
remains unchanged so he still has $20 he
can spend I mean he has $15 in one trust
line five plus $10 credit line and he
has five remaining in the other trust
line there's a little bit of a thing
missing there which is of course at some
point in time Bob might his trust line
might run out it might be there might
not be a capacity left in the trust line
and that leaves him with two options
either he has to settle or he has to ask
Charlie to increase the capacity of the
trust like giving giving giving him a
larger credit line neither option is
really that nice it's kind of awkward
but this is a quite powerful feature of
the idea is that we can mostly avoid
settling so when we have many users on
the same network
we have money which flows in many
directions sometimes you're getting paid
sometimes you are paying sometimes
you're forwarding payments in different
directions and this social approach to
money helps money circulate meaning that
that cancels out over time and so for
most scenarios real-world settlements
are unnecessary and as you can see here
what I've tried to do is illustrate how
they've making a payment to Bob cancels
out the debt that Alice had the charge
or that Bob had with Charlie from
Alice's payment so that's basically the
basic idea
that's how money implemented the social
graph could work now the next question
would be how we access such a system and
the way that we would do that is by
having an accessibility system which is
a little bit superior to buying money on
an exchange so you simply just download
the app you joined by creating a trust
line with a friend and then you can
start sending and receiving payments
that's basically it so compared to first
join in exchange wiring money this is a
little bit faster the money that we
could use to page other ways is issued
on smart contracts and we call them
currency networks these courage networks
are highly customizable they can be
denominated in to virtually anything
that people find valuable beers Bitcoin
money gold enchiladas whatever is people
like they can they can trade and to
reflect the denomination they can also
use these they can customize the
currency networks such that it reflects
the denomination they can have user
groups be open or closed so for example
the euro token network might be more
open than a local economy who wishes to
control exactly who can issue different
trust lines so they may hide they might
have a permission approach to it we can
also customize rules on interest and the
specific value of credit lines now the
final piece of the puzzle is of course
how can we buy 20 tokens or F and we can
use this because every the mobile
payment app also comes with a wallet
which can hold a theorem or 20 tokens so
if Alice wants to buy some F and she has
been on boarded to the trust lines
network and Dave wants to sell some and
they don't know or trust each other what
Dave can do is he can list some F on a
decentralized exchange and if Alice
likes that offer she can take it and if
there's a path with sufficient capacity
the decentralized exchange will swap the
f-4 trust line money so Dave will now
have more credit in the currency network
that they're both participating in and
Alice will now have F in her wallet
address so what that solves is the
dependency we have on centralized
exchanges because we can provide
accessibility to cryptocurrencies
without the use of
fiat money it removes the requirement to
have a bank account which I personally
think is quite important because we can
also provide cryptocurrency and to
centralize financial services for people
who might not have a bank account to
begin with and finally it also allows us
to purchase earth with transplant money
without having to interact with any data
so the basic idea is you should be able
to get access to cryptocurrency by
joining creating a trust line with a
friend and then have access to the holy
theorem ecosystem so that's the basic
idea and yeah give this to you hi my
name is bond I'm one of the developers
behind trusted hi my name is band I'm
one of the developers behind trust lines
so the architecture of the trust x
network will be is a three tier
architecture on the core of it we have
the smartphone checked handle all the
logic especially the currency networks
and exchanges and as the user interface
we are developing a mobile app that
comes with a good user experience this
is also where the private key will be
and which will sign the transactions to
actually do transactions within the
trust lines network in between we have a
middle layer that we call the relay
service they are helper services for
example for the pathfinding I will talk
about them later today I don't want to
talk about the mobile app I want to
focus on the platform itself so we'll
talk first about the smart contract and
after that so the currency currency
network contract managers all the trust
lines within one currency networks that
means it keeps tracks of the balances
between two friends and it keeps track
of the credit limits of these two
friends that gave it that they gave each
other it has a logic to execute mediated
transfers that means it's when you do a
transfer within the system it will
update all the balance
currently and make sure that they will
stay within the given credit limits we
want to implement implement existing
token standards however this will not be
fully possible because they are
different because our currency network
is iru based so that means there will be
differences for example the balance of a
user can be negative and the transfer
within our our system needs another
parameter it means the the path over
which the transfer should happen so we
aiming to for developing a new standard
for IU based 20 networks next I want to
talk about the decentralized exchange
contract so the trust lands network
should be a will be a platform to host
multiple currency networks so one
challenge we need to solve there is how
do we want to connect how can we connect
these networks and how can we bridge
gaps because if you want to do a
transfer and there's either no
connection or a too long connection
especially the beginning we want to get
this so the decentralized exchange
contract can help us to solve that
because it allows to buy a quadrilateral
token on in exchange for example with
Justin's money and this is can then be
used to close gaps and to make cross
currency payments let's look at the
following example to see how this could
work
so if Alice wants to pay Dave in u.s.
dollar but she's only part of the yeren
Network she can make a transaction
within the euro Network to buy eath on
an exchange this earth can then be used
to to buy US dollar on another exchange
in the u.s. dollar network for LS and
Dave this will be all transparent it
will be just one atomic transaction and
this is how Alice can do a cross
currency payment to Dave so let's now
talk about this middle layer I presented
before so why do we even need this relay
service so as we learnt for payment we
need to find a valid path and preferably
we want to find the shortest one because
that is the one that will save gas
because we don't have to update so many
trust lines but it's not feasible to do
this calculation for the path on the
phone because the
you have limited memory on your phone
and it's not feasible to do it unchanged
just because the computation is too
expensive so relay service essentially
just help a service to calculate this
path and in our current set up will be
used as a gateway to the blockchain
however this could it could be changed
later by using light clients introducing
this relates others however create a
different kind of problem because we no
longer can enforce by the smart
contracts with path which path will be
choosen right so the only thing that the
smart contacts checks is that the path
is valid so that all the balances stay
within the credit lines but we cannot
enforce which path this is important
because there's flex on one property
that we wants to have another system we
want to balance out and cancel depth so
to incentivize this behavior we aim but
this is who currently this is going to
work in progress we're not really like
done with this we aim for like
implementing a fee and reward system to
incentivize this balancing out so there
will be one fee that we call the in
balanced view reward this is to be paid
by users adding imbalances to the system
and it gets water to the one decreasing
the imbalance there's another fear award
system for capacity that we also want to
include that it's just to incentivize
providing capacity and this is basically
paid by the one using the capacity to
root of rent transfer and gets rewarded
to the one providing the capacity yeah
there are also mandatory fees that we
will have and that obviously the gas
fees for the etherium system and there
will be probably related server fees
because we had need to incentivize
running dedicated relay service by third
parties yeah so how would how does it
affect now the pathfinding algorithm and
the pathfinding will obviously look for
subsystems capacity and the shortest
paths to safe gas
but now with the new fees it will also
aim for minimizing the edit imbalance or
it will cancel out depth so let's look
at this for example if Dave wants to pay
Bob and their to say a path with the
same length one
and one over Charlie we can see here
that the upper path is worse because it
will add it will increase the already
existing imbalances where the lower path
will cancel out depth so will actually
not increase the overall imbalances
within the system so if we add those
fees the lower one will be slightly
cheaper so therefore we'll hopefully
choose this path so that was it about
what I wanted to present working on our
current project status right now is we
have a working prototype on the on the
robson test net it already we already
have implemented the currency network
with mediated transfers direct transfers
and you can give each other credit lines
we are currently working on new features
we working on implementing that just the
fees I just mentioned we are working on
implementing the decentralize exchanges
and other features I didn't talk about
yet yet we are also working on the
mobile app you can you can watch our
progress on our github repository and if
you want to know more about the general
idea we have a white paper on our
website you can also check that out I
want to emphasize that we aim to create
an open protocol so we're working on
open API s you can also check that out
on our repository for the earliest
service we aim for a restful api and we
want to implement we want to develop
Java Script library that makes it easy
to to also develop third-party mobile
apps besides the one we will actually
build and we also want to aim that it
will be easy to use our mobile app but
also a third-party mobile apps together
with each other so make payments from
one app to the other yeah so let me
summarize that we at promote technology
work on an open protocol for
decentralized I use base currency
networks this will enable global
payments based on a network of already
existing individual trust relationships
we think it's an old but powerful idea
that can increase adoption of
cryptocurrencies and made it easier to
access for everyone thanks everybody and
if you have questions or if we want to
talk about the idea please feel free to
approach us
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