we're gonna talk about dolls today a few
years ago if we were talking about
Dallas people were talking that we're
thinking that you know you would just
put money into them and your money would
Michael a disappear because of the whole
the doll hack the back in the day you
know we were like well that's right not
inherently bad so let's just focus on
them that's actually making great the
Dow was unfortunate but I also put this
page forward by a lot in terms of
security and so that's what we're doing
at Eragon we've been doing dolls since
November 2016 focusing on making them
very high quality and very easy to use
for anywhere in the world so what I want
to talk about today is how we can use
those to make decentralized protocols
actually be centralized so I don't know
if I Cohen this term but I like to use
the term CFI so probably you all know
defy the centralized finance actually
and there's no term called C Phi which
is centralized finance and a lot of this
defect that we talked about today it's
actually c5 which I mean I would talk
about that later but I think it's it's
okay sometimes to start centralized and
then decentralized but we have to be
conscious about it and make a conscious
effort to actually get for it to be
decentralized and so I want to talk
about some things today starting with
you know smart contracts the best
invention since ramen I think we will
all agree immutable smart contracts are
the default state of smart contracts
unleashed on blockchains like aetherium
and so they are fully trackless so call
this law kind of thing what you've read
into a smart contract is basically what
happens and but the issue is they are
not upgradeable and so we learn the hard
way we are kind of you know some some
other issues that we hide the theorem
community that it is very important for
smart contracts to be upgradable
for mainly two reasons one of them is do
you want to be able to fix bugs and the
other one is you want to be able to add
features it is very hard to compete
against other systems that are gradable
enhanced over time if we don't have that
capability or if the only way to upgrade
something is via Forks we which require
a lot of human coordination so each time
you want to add something you have to
tell your whole
network yeah I deployed a new contract
is the new address and you know they
have to like review it again and it's
really they have to reach consensus say
again that that new contract is the one
that this was actually use and you lose
a lot of network effects as well if you
want to fork every time that you want to
upgrade a contract that may just break
for example like you know defy protocols
because they just kind of be like yeah
this is v2 and you have to move all your
fans from one place to the other imagine
like all of that if people were like
closing CD piece in like you know one
system a bring the other one that would
just break everything then on the other
hand we have the centrally govern the
smart contracts that's easy for
developers right you have a smart
contract and then just upgrade it and
that's it but it is not really trash
this because it's custodial so you have
fans and then you have unilateral
permission to upgrade the smart contract
what is the difference with just having
a centralized server in which you can
like push code to and so I like to use
the the ether to ramp analogy here I I
made this kind of picture with like a
Stephens logo and and tram because I
think this is the is the worst from both
worlds you have like a theorem which is
you know like kind of clunky to use and
it slow and all of those things and then
it costs money to like click buttons as
one team member from our team said but
then also you have the worst things from
like you know it means centralized so
there is one person one sort of like
dictator or entity that can just push
changes right so I think centrally
governed the smart contracts are use a
very bad idea
so that's why the data Trump I hope you
you don't have nightmares about the
ether Trump and things young for coining
the term it'll Trump I love it
and now well what I wanna propose is a
different thing which is a different
combination that I think takes the best
from both worlds and that is community
governance smart contracts and so the
idea for traditional contracts is that
they are upgradeable you can enhance
them over time you can enhance your
protocol you can enhance your apps but
at the same time there's a community
there's a governance process a little
governance process that ensures that you
cannot push an update that you know get
through people's money
get away with it right and so I think
this is very very important to to work
on and the issue here is of course you
have to figure out your governance
structure you have to think alright if I
am gonna put my smart contracts
governance behind a Dow or some sort of
like community governance what is the
governance structure that fits the best
and so we've been working with projects
for a long time to figure this out and
there are a bunch of different things
you can do the cool thing about Aragon
and the way we thought about it is that
it's very modular so instead of saying
you know we have like the key ingredient
like the Kissel's and there's gonna
solve all your governance problems and
we're gonna use focus on that instead of
saying that we were like well we don't
know how organizations of the future are
gonna look like we don't know you know
in the future which kind of Dallas
people will want to deploy we think
every protocol has or each community
even has their own needs and so let's
build this very model framework in which
you can basically do everything that is
here and much more so they're two axes
in this in this curve map here and so
one of them is speed so the speed at
which developers core developers can
implement changes to the protocol and
there's the other one which is strapless
Ness which is how trustless is actually
this protocol there is from what trusses
Ness is important it's not because I
like visualization which I also do it's
more because if he's not trustless again
like if you just have like a protocol
that is custodial you may have a lot of
issues from not having trust from your
users because you can use with rather
fans or you know maliciously in to like
intervene in their apps and the working
systems or even because you may have
legal legal issues like I love this see
five projects today I think they may
face some kind of legal issue if they
are used basically the ones controlling
the whole protocol in the background
right so because they are and they're
supposed to be licensed revised but they
are not in practice so then it is very
important the boot restlessness first
where we're building transit systems if
you don't want to trust the system you
can always use MongoDB and use go
decentralized route so now I have
amazing news experience
the centralized for me has like very
very high speed but it's not trackless
at all then you have something like a
technical council so there is a a
project at V fiber or actually called
melon protocol and so the way they
structure their governance they wanted
to do something in which token holders
have the ultimate world but also there
was you know fairly fairly fast to push
updates right and so today it is very
hard to so token holders of your
community smart contract and be like
well do you want to approve this upgrade
I mean that a crystal of coordination
cost and stuff like that and there is
very specific knowledge that they need
to have on solidity and yet another
protocol design instead of doing that
they wanted a technical council so
docking holders who like both for this
council and then this council would take
care of the of the upgrades afterwards
and so for me that's that's not like
super super transness that I think is
like Travis enough and also guarantees a
very high speed because you can iterate
very fast with this council and you can
ensure that these people actually know
what they are talking about they are
experts in their field so these are very
very example of how a protocol went from
centralized to decentralized using
Aragon and our tool in and it's a very
exciting project and right now it's been
a minute for for a few months in terms
of the the governance structure that
they are using with Aragon and I'm super
super happy that it's working out for
them they you have other models for
example community veto so here you may
say as the core developer I still want
to retain the power to put upgrades but
I want to give my community like 24
hours for eight hours whatever time you
want for them to check the upgrade and
be able to veto it if you choose like
out Reyes if I'm just gonna like you
know steal their money or something like
that so with this you may have this
period where like you need to allow
talking holders to vote no to your
proposed upgrade so it is not that fast
but it's more trash this right because
you can have your whole community
basically stopped updates at any point
in time so that's cool when you have
like stuff like a liquid talking occur
see there is no I call it talking
overseas because it is not like
democracy in the sense that you have
like one person one vote
you can also do that with Aragon there
is another doubt that is theirs in that
doing some kind of like civil resistance
using an app that they have in which
have to like take a four or something
like that it's a legal system but here
I'm referring to doctor no curses so
basically the scheme the game kind of
kind of token are see where like you
have one token you have one ball
basically and so you can have something
like a liquid token aa cracy where you
can delegate to other people's you're
talking holders don't have to read every
proposal they can use delegate to other
person that they they think is it's more
expert in that in the field but then it
that person that delegate is not
performing well they can with rollerball
immediately and give it to someone else
so that's very cool we're working on
that implementation and then you have
something that is I think the probably
the most Restless but also like ever
slow which is direct democracy that's
what we do also in in Aragon for our own
governance so it's three months Torian
holders get to decide on the future of
the project and I think I think that's a
very cool model it's again like it's
super trackless like you know every
three months basically they can do
whatever they want
you don't have to do it every three
months you can do like continues as well
but of course if you need all the other
kind of holders to come together and
take a decision maybe it's better to
like concentrate that into one moment
each quarter one moment each year kind
of things so it's more you know it's a
slower but it's much restless so again
you know you can defend all of this with
Aragon and you can basically see what
are you trade-offs what matters to you
and then you know customize your doubt
to fit those needs so I think it is very
important to build a community not only
to ensure that the protocol remains
trustless and so you can eventually move
governance from centralized to
decentralized
but also because if you looked at like
where is all about is basically network
effects around communities the code can
be forked of course like brand and stuff
like that and community cannot so it is
very very important that we focus on the
right things here in communities direct
thing if you look at the theorem you can
you can forget theory on today you can
name it a theorem cache try no one would
use it because a community we have here
you guys and everyone out there that
cannot be forked
so I think also is very important as a
South South student the other day that
we see organizations and governance
structures as products and the users
maybe in this case I was talking about
like a more like a company structure
like an organization but I think it's
the same for a cryptic protocol or
network so when you create the
governance structure that is also a
product that is a product and your users
argue community member for example so
when I think of the governance process
we created for ourselves in Aragon we
have a lot of these people who out for
new governor's proposals we have these
people who edit them we have these
people who then are community members
and they get affected by them so at the
end of the day you have to look at your
community and your governance as Houston
all product if you have to care of it as
if it was just another product that
you're building and of course a very
important one I think also when talking
about
1001 vote a lot of people get outraged
about you know plutocracy and capture
and all of these things right I think if
we look at token or se or what I call
the evolution of a stakeholder
governance if you look at shareholder
governance for the last hundreds of
years it has to work beautifully to
create value now we are in this weird
position where we have common goods or
something that kind of resembles a
common good or is that you know kind of
like a gray area between a common good
and also like like a parrot property
because I mean it's not certainly like a
hundred percent common good you have to
like at quiet if or Bitcoin or whatever
to a part of these networks but the same
of at the same time like is not use a
traditional private company safe in here
with this evolution of stakeholder
governance one token one vote there are
certain things like cool improved but
there are also things that are really
great and they are very handy if you is
when I like have a community bought in
today
so in service get in the game of course
if you have participants in your network
that owned a big stake or they own a
mistake they're going to be incentivized
for the network in the community to grow
and work they are easy to deploy today
like you can deploy one token one vote
today very very easy allows first
autonomous participants I don't like to
watch it I think it works for some
models governance models but I think
allowing students participation is very
important
sample in the our own community there
are people who are synonymous they pass
proposals into the ballot and they
actually get up to buy a whole community
and we don't know who these people are
and that's beautiful as a beauty of it
and then also allows everyone to benefit
from value creation so a key difference
with like private companies decades ago
is that you will only benefit from this
value creation for example in Apple
Facebook stuff like that if you were the
first engine investor the seed investor
even you know later in the kind of like
states in which you could buy shares
right but not all people have access to
that especially not like everyone who
was not a bc here everyone can just
chime in and you know buy bitcoin early
in the day or buy if they're buy
whatever kind of token or community so
they can become participate in that
value creation so my message here is
only honor I don't think it will last we
need to improve traffic Ness and
transparency with dowse especially for
protocols that are supposed to be
decentralized I think it's important
also if you protocol is centralized
today I think you know there's some
trade-offs there are things that need to
improved and item the angel I technology
wasn't there a year ago for these
protocols to actually be more
decentralized but it is today and so we
need to like if the way we need to think
about the roadmap and we need to
actually get these things into a point
that they are actually trust less if you
get an early on your problem we can help
we're working on this one click set up
template for protocols so if you go to
the Oregon app you see these templates
that you can just click on and then feel
like a bunch of text fields in our
beautiful UI click create
boom done if you want something more
complex there are like CLI like command
line tools that are like an their second
SDK with a bunch of things you can
really get crazy with it but if you want
to get like the basic basic basic
templates is it really like graphic like
user interface I don't have to do
anything else and we're working on
integrating this into our unlike our own
client so in the future you will be able
to use go to app argument org select
crypto protocol and then basically you
can write your smart contracts which
Apple here this can be your protocol
like on the on the left side of the
screen you can write your smart
contracts you know as much flexibility
as you want
then instead of like putting the only
owner to your account or your company's
sir let your treasure or whatever what
you can do is put the only owner to the
alien tap in the Dow and so basically
everything to the right is the Dow so
that I can have multiple apps the voting
app the finance that allows your doubt
to have money you can get really crazy
with permissions so for example you can
you can give a boring app to get money
out of the finance app so you can even
have like a protocol reward out in which
like you know each block or the H worker
like you know its period of time there's
a new talking created that goes into
this finance I pinned it down and then
token holders can use the boring app to
decide how to spend those funds from
protocol development but then we created
this app called agent inside Oregon an
agent is basically the the dowels face
to the world to the worth 3 world and so
what I am tell us is furthered out to
interoperate with any worklet protocols
so thou may be able to open and see if
your maker that I may be able to lend
money on compound all of those things
and the cool thing here is you don't
need to get into our SDK to use this
like you just basically have to create a
protocol whatever way you want and then
put the address of this am tab as the
only owner and that will basically make
your protocol be governed by now it's
that easy
so I think as a summary like Dow's make
defy to serve the D I think I think
right now we're in the process of
actually making sure that if I actually
deserve that I think it's more like see
if I today I think everyone else are
very easy to deploy you can literally
blow them in like 30 seconds they are
working canisters from maintenance like
the one that I mentioned from from melon
protocol if you go to the Argonne
website there's a case live so with most
depot maintenance cases today and we're
working on this one click setup template
that will make things way way easier so
I said before like we have a bunch of
those now mainly
I think it year ago technology was very
early I think now we are getting there
so more than 700,000 minute today you
can create yours a tablet argument or
various for like 30 seconds we just
released a new version two weeks ago or
three weeks ago that makes the user
experience much better I think we're gay
they're like we are slowly making sure
that is comparable to web to experiences
in terms of user experience so I'm very
happy about that and I just wanna thank
everyone you can follow Aragon on
Twitter you can follow me on Twitter if
you're interested in these challenges
the company that I worked for arguing
one we're hiding much of roles
especially fronting people just really
care about designing we really care
about bringing these two people that
actually need it so you go to Aragon but
one it's less jobs and also you can
check out their own website so thanks
[Applause]
and actually have two more things for
today so one of them is I reckon is
gonna be released in a couple
interesting news later today about a
couple community developments that are
going on so instead a stay tuned for the
era news during the day and then a
second one is we are throwing a party
and so we are throwing a doll party the
equidistance basically focusing on the
dico model and the upcoming launch of
Aragon's and racing that would allow any
dau in the world to find resolution
bonding parts so it's very cool we're
gonna have we're gonna have actual like
sushi there for the first people that
arrive not like party finger food some
rehabilitate and I invite everyone to
use sign up you can RSVP just go into
Oregon's Twitter and there is a link
there so see you later
and how we can enjoy some sushi and dial
conversations thank you
[Applause]
you