EthCC 2: Tomislav Mamic

really crypto educated that are using their tools which are credit cards and yeah so it's still in concept stage we are still doing a lot of research and talking with many different people from this space with with projects that are that could be interested in this so yeah okay yeah so it's called bridge down and it basically employs a way for smart contracts to control physical actors or of chain assets or anything that's not currently available for for control of smart contracts so you will remember that in 2014 when metallic was presenting it to him for the first time he explained how Bitcoin when first created was actually testing these two ideas at once first one is internet money and the second one is Bitcoin decentralized database or blockchain and there is a necessity necessity why are these two technologies actually married together so if you want to have a decentralized currency or internet money you need to have security and to have security and incentives and for it well sorry for the centralized database you need security for security needs that incentives and best way to provide incentives is to have a currency and it's also other way so if you want to have currency you need to have a database and this database has to have certain properties like you can add to it but you cannot take out of it and yeah so these two ideas really created a lot of value and but it wasn't really until it theorem in 2014 that blockchain got some bigger attention before that there was pretty much a lot of new crossing currencies created after Bitcoin so Vitalik said okay let's let's focus on this technology this this centralized database technology and instead of having only currency transaction confirmation so let's try to do something else why wouldn't we let our nodes to actually execute code and this created a whole list of opportunities which we now actually use through our smart contracts so these these two approaches actually created a lot of value like billions of dollars of value were created on top of Bitcoin then even more on top of deuterium and I believe if we use this third part of both of these technologies which is the network of participants we can unleash even more value and this third net this third part is the network of participants so what is the network or part of participants in Bitcoin those are miners they their role is just to confirm transactions and they do this job very very well and we that's why because of this we have Bitcoin as a secure network and it works so far only tier iam the these are miners or soon to be validators and they execute code and they provide a service of code execution but what if we have abstract this mechanism that makes all of these people do things according to rules what if we try to make them do something else or let them do something else and of course earn money from it from doing it the same way as a Chilean miners or money from confirming transactions and executing code so there are already some existing projects that are trying this approach that are employing a network of decentralized actors or participants so I will just explain shortly some of them and and to what extent they are actually using this approach and in the end I will explain paper clip light which is the solution that we are built trying to build for financial payments with fiat so Clara's curse is a trusted third party that employs a number of decentralized participants who serve as arbitration arbitration party for any contract and it doesn't rely on one small group of experts or anything it pulls a huge number of providers like jurors who then decide and provide this arbitration witness is automated automated software so it enables nodes to just read what's happened of some websites and to report this content to the bridges or to the clients who are actually interested in instructing in finding out this data and using it later on for whatever the purpose they have and this is also the centralized network so anybody can run this node and anybody can actually be part of the network chain link chain link is very similar to wit net it just enables a lot more so it's not only this predefined headless browser software but it actually allows these nodes to do any different many different things and it it's a they say that they have the ability operate fully this is a fully decentralized network unlike other Oracle networks and what it does so smart contracts create this service level agreements then Oracle's are competing which one will provides the inter formation and based on their performance they get reputation but it's more what it doesn't do is doesn't give you a control of this external actor so you cannot really tell them to do so and be sure that they will do it you can you can actually only probably only asked them to give you some information lately there is there was this thing called wrapped Bitcoin and it it has similar properties so so far when we when when a small contract was trying to control some Bitcoin which is off chain asset it couldn't really do it unless you rely on a centralized centralized custody custodian and with rat wrap rather Bitcoin they are trying to create a more more decentralized network where you have more custodians you have merchants which art the interface for you as a user so there is a more layers where which are supposed to create more security for you because because the custodians cannot create the tokens that for the assets that that is deposited only merchants can do it and merchants if they want to actually be malicious they have to all together do it all together so it and unfortunately it relies a lot on repeat on the reputation of these providers so it's not really trust list and now the the project that we are trying to create with this with our approach is called paperclip light and what it does it is it provides rust with a fiat interface so financial institutions are our nodes we create the centralized network of financial institutions or anybody who is actually in control of bank account these bank accounts then are we put them into control of smart contracts how we do this well we ensure that these banks or financial other financial institutions are somehow held to their promises so what we do is just we takes takes from there they put collateral in dye or in any other crypto asset into our smart contract and this is this collateral is used to ensure that these providers of bank accounts never try to cheat the system what happens if they actually try to cheat the system well a dispute will be raised between smart contracts and this provider the bank account or whoever and we'll have to use a decentralized arbitration network like Klara's or some other tool to actually find out where was the where is the money so when you have banks who who provide bank accounts for you for smart contracts to use them you can have credit card payments for smart contract services you can have separate transfers so smart contra can actually initiate a transaction from a bank account to another bank account from for example to pay salaries or expenses also you can hold and spend fiat without converting to crypto so this is how it's supposed to how it currently works when you have the current flow of any transaction where user initially holds fiat so smart contract is immaterial and it cannot really receive fiat so user has to go to exchange well first it has to learn about the cryptocurrencies which one to use then is to find about exchanges register on exchange do KYC send the funds to exchange pay the fee convert to X cryptocurrency pay the fee withdraw to their wallet or first create the wallet on meta mask then withdraw so it's painful process and this is the main reason why we don't see the apps and those taking off in in terms of of usage so with paper clip light this all goes away the is only a messaging system between Paperclip and the smart contract that uses the system and on other hand Paperclip also provides communication between customers and the suppliers or the customers and Piper crude Network which are these banks and other nodes so in our initial design any user so any person any company which which owns a bank account could actually become part of the network and this could be this could make it actually really decentralized but there is also legal implications of this and if made probably in many jurisdictions only financial institutions or some other kind of licenses licensed entities will be able to do this so what we provide is a dashboard which is just user friendly interface for these bank account owners or nodes consumer is Bank API clients and scripts that trigger actions with so they they we are supposed to be able if a bank wants to provide a service it has to open access for our api's whisper book is just an order book of desired transactions which users or smart contracts create watcher watcher is a read-only access tool for client accounts so what it does when when smart contracts paid so let's say the are you familiar with kickback so when you go to kickback you need to open your meta mask and make the RSVP with we Russ you open kickback and there is your there is a just a budget where you can put your credit card details and make the payment when this payment goes to bank account The Watcher reads it and provides this information in real time to - all the notes all the interested parties and this this widget is the ramp it just interface for user - to make the payment and in the end we have ping which is daemon that sends out the notes proof of life basically this way we can now which note is actually live and which is just out of network and what is bridge now well paperclip is implementation in via transactions what we are trying to distinguish or or divide the tools that we are building that could be reused in any other case or which could be reused in in in another version of it or something similar so Bridget Dowd is is trying to is a project where we try to create this reusable approach for participant role expansion so this network of participant and whatever else they they could do except for not only the computation it's a smart contract only to network and it provides simple smart contract interface so any smart konchog that uses the network could simply use it it also will uses these guarantees by collateral so anybody can reuse this and it provides this all of this as a shared infrastructure and share standards and protocols and we are we have a repository on github where you can read the document that describes how paperclip type light is working and also we have a technical white paper so you can read more about it there how much time was that we have we have more we had time for questions sorry for my yeah I'm bit nervous so yeah I hope that's that's not too bad okay [Applause] any questions okay I have a question for people in the audience how many of you have a service or that's based on etherium which users are probably are gonna rather pay with credit card than with crypto or you would you could approach bigger market if you could enable credit card payments okay and do you have any solutions for this that are trustless no okay any other questions except for mine yeah so Bank is supposed to create mhm well so first I'm not the technical person so I can't really go into technical details but banks that want to provide this service are supposed to create first step supposed to run an old they notice the the tool that communicates with blockchain and with and on other hand payment processors are the ones who help facilitate the transactions between users who pay with credit card and and the bank that's the high level so well the bank is the one that that executed the transaction one one important thing that we are doing with paperclip light is we are trying to decrease the I would say compliance issues or legal questions so what we do is we narrow it down to strictly no crypto so you can provide service you can sell RSVPs on kickback you can for example execute transactions that initiate smart contracts you can pay for that with with so you can pay gas fee with with fiat and anything else that is a service but not cryptocurrency transactions and conversion because that creates all a bunch of different problems that and E and also it creates misalignment of interest between banks and and the smart contract users so what we do is where we found this common ground for the bank's for the current financial system and for smart contracts and in blockchain and this is where this is the ground is where smart contracts are actually better in providing value and in service than some other traditional way of providing this service some other other companies or software or something else you had question no okay thank you very much and catch me here behind if you want to [Applause]