How Decentralization Can Solve The World's Looming Data Problem - Pavel Bains @ TOKEN2049

[Music] everybody thanks for that I'm glad everybody got to make it out today you know everybody was probably out late last night I know I was so I'm surprised that we got all these people today which is excellent so we got the intro from us and yeah so here's the first slide so let me go over here okay so anybody seen this picture before so this was the cover of The Economist from like just over a month ago and I mean it says a lot basically you know I look at it and go okay there's three companies around the world that are basically taking everything over Amazon Facebook Google they control all our data all our consumption behavior all our viewing habits all that so to sit there the thoughts I've had in my head and everybody in like you know blockchain decentralized for a while and to see it on the cover of a major magazine like The Economist in airports everywhere is a major thing that basically draws attention that the rest of the world need to start waking up that we are being controlled all our stuff is centralized and you know it's in the hands of just a few which only can go one way which is negative so with that you know we talk more about data and the stuff that's gonna be happening in the next couple of years so we have an explosive amount of data that's being consumed everywhere everybody here basically has a smartphone I'm guessing you know let's say you're right there how many apps do you think you have on your phone right now probably 40 or 50 easily right force for swipes 10 to 15 on each one people probably have a hundred what you don't realize that all those apps are constantly sending data between other apps and to the centralized places and this is happening in the background when you don't even know it and when it's on background refresh it's just constantly happening we're projecting that in two years we're gonna have four billion connected people that would be about half the world's population average of six devices per person because i OT and all these things that you hear so now you should start thinking about oh my god how much data is gonna be transplanted in turn it just isn't secure enough to handle that so when the internet first got you know develop really in the mid night early 90s it grew too fast with the software and security wasn't really built into the protocol so now yours gonna have you know more and more data breaches and leaks happening because of this exponential rate that this data is going so the question is where we gonna store all this here are so a couple does headlines and this is just from the probably the past six months that's been happening the biggest one one of the bigger ones was Equifax which is us credit scoring company they had almost two hundred million records stolen right underneath them and this is like basically credit scores this is your personal information wealth all that that goes there was just basically taken right under their noses uber had a major breach it's becoming known that there's good basically more and more breaches before this stuff gets better because the enterprises in the current existing system hasn't really over thought what's gonna work because they're making money they're doing fine and aren't really focusing on the long-term it's again such a problem that's some of the you know the US Congress are starting to think that any executives that do all these cover-ups they should start facing jail time so what this leads to and you'll see probably a bunch of companies you know for the past couple months ourselves even today just talking about decentralization what I'm referring to is not just in finance and banking but decentralization in the form of creating a new internet by D centralizing you can get something more secure much more scalable and very much more reliable so basically what we're doing is taking control out of those three companies that you saw at the beginning and giving back to basically ourselves and having everything in a safe place so a lot of US companies are doing is basically restructuring that decentralized internet and if what we do what I do here is kind of just show that if we compare it to the current internet and now applications are built you can see the in the mirror image of what's really happening so if we start at the top you have something like applications right so you know a decentralized would be status for messaging that's like whatsapp okay so that had to be built on something right you know an operating system in a regular internet would be Android or iOS or Mac OS what we're using aetherium could be thought of as the operating system now if I'm picking the images on status or let's say whatsapp I've got files pictures that's got to be stored somewhere usually there's going to a centralized place so they'll use AWS on a decentralized internet you've got companies like file coin and storage you're doing it even one of them not up here but the guy's gonna come down later is Gollum which is computer processing in a decentralized way what we're solving is that data that created that database of the user or where the picture was taken let's not store that in a central place like Oracle that's a missing piece and that's where blue cell comes in so we're a decentralized database which is basically playing the same role as Oracle right so over here is I'm gonna walk you quickly through the past present and future of database systems and why this is important to all of us so in the past what we had here was everything was on one stack and what that means is that that's on-premise held at let's say you know some company that's building a product they got the database sitting in their office there's one stack if any part of this goes down the database is done if somebody breaks into any of these points you have multiple points of entry things could be changed things could be stolen so once again it's not secure not reliable then we moved over let's say for the past you know ten plus years to a cloud centralized model much better than this one but still a lot of problems reason is is that you still have multiple points of entry one two three and there could be even more once again any of the load balancer goes down the entire network goes down and now the person doesn't have access to the data the company that's basically requiring to update the database or retrieve information somebody walked that somebody breaks into let's say zone one over here what happens is okay we've let's say we stole 80% of ubers database okay you've probably held on AWS encryption levels were the same probably in zone 1 in zone 2 so maybe for a little bit extra effort we can break into zone 2 and now we got everything so it's not as secure and there's still multiple points of entry and somebody could come change it what we see the future and this is the same diagram that you guys see with like Bitcoin everything else but we're going to apply to databases the same principles so what you have is a decentralized model and by that what we're doing is we're taking if you've got a computer at home you know access capacity if I'm you know some companies sitting there saying hey we got extra servers that aren't being used what we're saying is download the blue cell protocol similar to let's say you download the Bitcoin or theorem protocol and what we can do is turn your that server into a network a node on our network where we can store this data so now what happens is the data is stored in multiple places broken up and I'll go more into detail there but if somebody's month there's no point of failure because if this goes down the system still stays alive and I'll show a demo each one each node is encrypted separately so even if you try to break in you have to actually basically decrypt every single node in the network to steal any of the data and put the pieces back together now what happens in the tokenize economy is so basically for a customer to use blue cell they would have to basically pay with the blue cell token if I'm running a node or any of you guys instead of earning a Bitcoin or Athenaeum remaining what we're saying is rent out your server space and you're gonna earn a blue cell coin and you can start basically accumulating that to use also in the network or turn in or trade for something else on a different network so that's how a decentralized database would work going through like the main technology is one of the pieces and I'll make it real simple a so 2d partitioning is basically we're taking a data set and almost like cross it cutting it into multiple ways so what we say is imagine you know we've got what have you got you know you've got a MailChimp database with a newsletter list imagine we've just printed all of that onto a plate all the name the entire data records took that and just basically smashed it into the ground into thousands of thousands of pieces then we take that which basically we're sharding it and we're spreading it into all the hundreds and thousands of nodes on the Blues on network so that means each node only has one piece of that puzzle or that plate it might just say Pavel force it for for example even if somebody somehow broke into that one node all that got was a name Pavel or P AV that is meaningless to anybody there's no context they don't know my last name don't know when I was born there know my address none of that so for them to actually take the entire record they'd have to basically break into every single one of the nodes then put the entire puzzle back together then read it and that's basically just like a Bitcoin ethereum blockchain works is basically virtually impossible so we're applying those same principles by swarming what we mean there is everybody's always talking about speed is an issue on Bitcoin and blockchain because consensus has to be at at a universal state like the entire all the nodes have to come to agreement by using swarming what we're saying is yes the universe of blue cell exists but there's also these galaxies in different areas and enough of those galaxies to come to consensus about this data being true and so in that sense it could be much faster and you can read and retrieve it if we can switch now to the video and I can run this demo and show how this whole thing works so what you see here is a data set on the right all the commits being written on the data base on our network and then in the middle is basically a visualization of how the entire network works so all the green little circles is nodes at a persistent that are actually running in live right now red means one of the nodes went down is off like basically died off and you'll see blue ones mean another node like one of you guys might have just popped up started using the network and now you're a storage space so the key thing is you're seeing new nodes come up come down and up but the data here keeps going and keeps writing so you can create read and get everything that you need nothing changes its persistent so there's no point of failure no one's broken nothing's broken down and it's completely reliable so yeah as you can see more blue ones come in red dies off but this never breaks this chain and that's what's the most important is with a decentralized manner that every state everything stays consistent okay we can flip over to the next slide Thanks okay so how do we put this into simple terms let's forget about blockchain applications what we believe is though blockchain applications D apps as we say they're gonna be the first users of our our product the long term is that every single product out there should use a decentralized database because it's actually better for everybody so try to drive this example home I look at Playstations anybody have a Playstation here alright and I'm assuming many people have kids we grew up on video games the current Playstation like market has a 1 terabyte of storage my kids are never gonna use that and I'm assuming none of you guys are going to so that's unused capacity space sitting out there yet all these Playstations are networked all over the world because they're all playing games online you've got something like FIFA soccer which cost 60 US dollars players are playing that it's not good enough that they play by themselves they want to play online play a league play their friends you got Electronic Arts that made FIFA they got to spend money managing these leagues and setting up that online system all that data of the one win-loss records roster updates injuries all that stuff has to be stored somewhere and basically their money most likely we doing on AWS or IBM cloud in that's enormous operational cost that they're taken on so what we're saying is in the next few years imagine blue cell the protocol being download and implemented into every PlayStation out there so now what we've done is we've created that turned all those and powered them into a database EA wins because they said hey instead of us managing all these data these data data centers won't we just have the players do it and have it on their unloads a lot of their operational costs for blue cell they go ok well by the blue cell token and we'll use that to pay the consumer on the other side who paid $60 he's like hey now I'm playing this anyways I got this extra storage space I can almost earn some revenue back on my PlayStation which I might have spent $500 on and $60 on a game so now it's a win-win for everybody it's a true like when we talk about a tokenization shouldn't be just for tokenizing assets just I mean token anything for the sake of tokenization what you want is a real crypto economy and still to this day the best killer app of anything in blockchain is a marketplace whether it's an exchange or something like this you got a marketplace at bringing buyers or sellers together and everybody wins because we've got a better more efficient product and the main thing is it's more secure it's more scalable and much more reliable this is one of the companies that were working with is a 0x which is a decentralized exchange out of San Francisco so what we're doing with them is in the in their world you know they got market makers I mean sorry you know real layers which is almost like market makers people taking bid and bid and asks and relaying prices with all these tokens what they need to do is give their customers a good way to basically manage all their data and their order books because no one's doing consistently so when we're talking to 0x we said hey if you use our database we can build that into the 0x protocol now you have a best practices consistent way that all your real layers can manage all their orders it's a big value add to zero X's customers which are these real ayres and how it works is hey you know just like public and private keys with Bitcoin we apply that to ours so the real layer would just plug into our API abstraction layer you know we see their keys that they own this data that's theirs they're requesting a certain you know data set that they need to go the Bluestone network would look up an entire node and say which one is this thing correct we know the information is right ok which is the fastest node on the network we can get to or which is the closest in proximity that's all verified the information comes back to that relayer they decrypt it and they have information and so on next time they want to do something again they can commit something else to the database so it's really straightforward once again taking the principles that you've heard of a blockchain a Bitcoin but applying it to a new technology with databases a little bit about our team you already heard about our background myself and my co-founder he used to work for Google and Lufthansa and and projects for them the two advisers I just want to bring up here is which was critical to us is that you know we're not trying to solve this in a bubble in a vacuum try to figure out her own well we realized that we had to bring some real experts in to solve certain challenges so Prashant Malik here he was a facebook engineer he created Cassandra which is a distributed database not purely decentralized but one of the more popular distributed databases in the world and what he saw when we started working with him was hey this is what we're building and he saw this is the next evolution of what he was envisioning so his background is really gonna help us solve a lot of these data based problems that we see happening so key insight from one of the world's best and then Alex levering Tinh who was a core Athenian developer from day one expert in crypto technology you don't they had a roadmap for where theorems going in the long term so we reached out to him and said hey we're gonna have some challenges come along your expertise would be really valuable because you understand the traditional world and the blockchain and the crypto technology world so you know he he said yeah I love to contribute help you guys out and just plan what the roadmap for the next couple years because as you probably learned for this from the last two days is that unlike the old technologies where everybody was just kind of in silos and competitors and didn't want to talk to each other most of the blockchain technology companies are all collaborating and finding ways to solve these challenges together because we're really in the early stages and this is the only way we're going to move faster is by just being open sourced and talking to everybody else in the community so where we are now is if you're in this audience and you basically you want your developer you're building an application or you are interested in becoming part of the network to offer it up storage space you can join our slack Channel Blues Elcom slack and where you can learn more about the technology engage with our team and talk one-on-one because they're pretty active on there they'll answer questions pretty quick if you're just a crypto enthusiast want to normal the nodes and how this whole technology works you know you can sign up on our website for a minute our newsletter which basically comes out every week try to keep it really educational on the product tech team decentralization in nature and then over the next couple months in end of June early July we plan is our next release of the product it will be ready for you know a single swarm won't be multi swarm it will allow the multiple companies that we're working with right now and who are signing up to basically start using this data in a test environment so they'll be able to create read update delete out-of-the-box it's gonna probably will be working with aetherium pradhans and neo as well and then we're also working with a number of other blockchain protocols so they can build libraries and integrate in with us so where people often ask is is blue Zell built on ethereum no it's built a standalone protocol but the goal is that it ties into every one of these blockchain platforms out there so that we can provide a consistent database that's reliable so no matter what project is building on any do any tabs building on any blockchain they could be like hey blue cells already connected I'm gonna store and manage all our data there and that's buzel thanks for coming out and if you got any questions come grab me anywhere I would love to chat with the hello you guys Thanks [Music] [Applause]