Decentralized technology: a (short) survey
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The document provides an extensive overview of decentralized technology, focusing on key elements such as blockchain, smart contracts, tokenization, NFTs, stablecoins, and DeFi. It discusses the implications of self-sovereign identity, public adoption of blockchain, and the potential shift from traditional banks and companies to decentralized economies and organizations. Additionally, it highlights the necessary infrastructure, layer 2 solutions, and opportunities for blockchain analytics and consensus participation.
Decentralized technology: a (short) survey
- 2. @stadolf @stadolf BLOCKCHAIN Unfailable consensus Globally distributed state machine Governed by consensus protocols PoW, PoS, BFT Uncontrolled and Unstoppable Public and Permissionless Accessible to everyone PoA chains mostly useless controls unique / rare digital “assets” Guarantees transaction ordering Mostly useful to build trustless systems SPoF controlled accounts “cloud” provider Database admin
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- 6. @stadolf @stadolf SMART CONTRACTS Uncompromisable Rulesets Unstoppable code deployed on chain Triggered by transactions executed during block validation Ethereum Virtual Machine / EVM Keep local, distributed state Solidity: Turing complete language Foundation for tokens All contracts can interact with all other contracts Source code distributed by 3rd parties
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- 10. @stadolf @stadolf DATA & COMPUTATION Content Addressed Storage systems IPFS, Arweave, Sia Skynet Globally distributed computation iExec, DFINITY, Golem Network Decentralized Oracles Chainlink, Tellor Ledger Analytics Etherscan, Alchemy, The Graph Decentralized Cloud Resources
- 11. @stadolf @stadolf Content Addressable Storage Networks QmRJYzy24v53ndShLdNy tfKr59tKnFQaLs1Sso8pAdikc W I have QmRJYzy24... Do you know QmRJYzy24...? ipfs add
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- 13. @stadolf @stadolf TOKENIZATION Programmable money ERC20 Fungible Tokens Monetary values Shares Governance / Voting power Utility tokens (pay per use) Security tokens (real world assets) ERC721 Non Fungible Tokens Unique Assets Transferable Identities Owner rights Combined representations ERC1155 semifungible Tokens Ingame items
- 14. @stadolf @stadolf NFTs Represent unique items Real estate properties Cars Domain names (Digital) Arts transparent auctions Fractional ownership Realtime Royalties Marketplaces OpenSea, Rarible, Zora Non fungible tokens
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- 16. @stadolf @stadolf STABLE COINS on the real world ERC20 tokens pegged to another (fiat) currency Custodial: capital backed (not decentralized) Non-custodial: using interest bearing vaults, automatically mint / burn tokens towards pegged value CBDCs & institutional investments Central Bank Digital Currencies Higher requirements on KYC & AML scalability privacy
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- 19. @stadolf @stadolf DeFI Financial token instruments Automated market makers Math based “order books” Pooled liquidity Decentralized Exchanges (DEX) Collateralized borrowing Interest bearing tokens (Flash) loans Compound protocols / Derivatives Yield farming Fund / pool investments Leverage / Margin trading No-loss Lotteries automated asset management
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- 22. @stadolf BANKS ? where we’re going we don’t need banks
- 23. @stadolf @stadolf TOKEN ECONOMIES Real life goods on chain: Digital Twins Supply Chain usecases M2M micro payments Staking / Governance Enable trust by incentivizing players to play right. Total market transparency Data marketplaces Once tokenized, compatible to all DeFI protocols! Everything becomes a tradable commodity
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- 25. @stadolf @stadolf DAOs Community owned enterprises, controlled by smart contracts Driven by governance tokens / member stakes Decentralized funding / grants Formerly known as “crowdfunding” Earn tokens by voting for the “right” outcome Can hold and distribute deposits Foster community participation Decentralized Autonomous Organizations
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- 27. @stadolf COMPANIES ? where we’re going we don’t need companies
- 28. @stadolf @stadolf SELF SOVEREIGN IDENTITY Users are in full control of all secrets local creation of key material & DIDs W3C Verifiable Credentials allow issuing / proving claims about a subject Blockchain based credential registries DID changesets VC revocations Selectively disclosable (JSON-LD/BBS+) Highly interoperable DIDs, Agents & Credentials
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- 30. @stadolf @stadolf PUBLIC ADOPTION DK, Estonia are running administrative tasks on blockchains E-estonia DK anti corruption chain Germany’s administration agrees on blockchain strategy Financial, innovation, Digital Identity Liechtenstein blockchain act Token Container model for rights and assets El Salvador adopts bitcoin as legal tender EU lays technical foundations and regulations EBSI eSSIF CBDCs / Digital Euro
- 31. @stadolf GOVERNMENTS ? where we’re going we don’t need governments
- 32. @stadolf @stadolf LAYER 2 Sidechain networks Polygon, Binance Smart Chain Mostly driven by BFT/PoS consensus Bridge anchor chain assets Much lower gas fees / faster execution Rollup networks Collect local transaction headers Local contract execution Proofs written as CALLDATA on chain Optimistic or zk secured Local transactions, anchored on global consensus
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- 34. @stadolf @stadolf OPPORTUNITIES Blockchain analytics L2 / Oracle node operation Fiat bridging / onboarding Marketplaces / UX Consensus participation Maximum Extractable Value FlashBots Ethereum 2 Staking (2022) Participate on the network
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