Building Encrypted DApps | Jobin Ayathil, Ten | ETHTaipei 2024

uh good good afternoon or good evening sorry good evening uh so I'm very glad to be back in taipe especially on this stage because exactly one year back I was in the same stage talking about this product with a different name and back then it was just Theory right now it's practical it's a product right now so really happy here uh that in one year we did uh make a very good progress and we came with product and last time I was just a speaker this time I'm here as a speaker as well as a sponsor and we have an opportunity to hack on this product so really happy so what is 10 so the last time I came here if anybody of you heard about it it was obscuro and we recently rebranded to 10 which stands for the encrypted layer okay before talking about all this things I need to tell you uh something I need to make you aware about few pieces of uh information in this ecosystem and then tell you what uh exactly 10 is because it's the standard thing uh to pitch first the problem then the solution okay so starting with the problem no it's not problem it's stats actually so these are the stats that you're seeing on the screen right now ethereum does 1.3 million transactions per day that's massive just imagine how many users users would be interacting on a regular basis that these many transactions happen on a chain this is one single chain I'm not talking about those hundreds of chain because you might have seen in the sponsors list there are so many chains one of them we are so just on one single chain you have got 1.3 million transactions you have got 591k users transacting on a regular basis on chain you have got 33 million plus smart contracts if you don't know what smart contracts are smart contracts are like the logic or the program behind all this Dy nft and all this applications you have got 4,000 plus contracts verified contracts and web 3 has been seeing 80% year on-year growth and out of this all thousands of gigabytes of data is moving in and out of this chain getting stored used for execution why all the stats what do I mean uh by this the reason is there is a big white space like this empty seats there's a lot of EMP uh there's one very big empty seat in the ethereum uh ecosystem or ethereum chain does anybody have idea what ethereum is missing no ethereum users here is a very big missing piece in this web3 puzzle and that actually is security no it's not security ethereum has good security is it scalability ethereum doesn't have scalability but there are a lot of other chains layer tws which have solved the scalability problem what about D centralization ethereum's decentralization is good there are a lot of chains already out there offering decentralization then what exactly is the problem that I am here to talk to you and that actually is something that you're already aware you have been using in web 2 on a regular basis if you're chatting right now if you're using a browser you have been using that you're familiar with that but you didn't realize that this big missing pie would be bothering you in web3 so what exactly is that and that is encryption nobody realized that web3 needs encryption and where actually it is or if somebody's building about building on encryption so I'm here to talk about encryption in such a big chain with so many stats so many gigabytes of data millions of transactions millions of user why because it would take me barely two to three minutes to figure out what transactions you have done what are your interests on chain what daps you do do you use on regular basis and basically profile you does anybody know how to do that if you don't know it's very simple there is a very famous application in web 3 which can be used easily to track and trace your onchain activity fraction data events everything and that is actually ether scan on ethereum super simple just need to be a very uh good geek you might feel this is a very simple tool no it's not a very simple tool it's one of the most genius tools that can be used in a very good way to collect a lot of data activity about you on chain and create a profile about you it's very simple paste your wallet address here figure out what all contracts you are interacting with go and check out the games that you are playing are you playing axi Infinity how many nfts do you hold what streaming dabs or defi dabs are you using what tokens you hold when do you interact it's very simple I can tell you in which region of this world you are living by simply looking at what time you are trading something you you can be completely Anonymous but I can figure out your time zone and your location in this globe by simply looking at e the scan and figuring out what is the time period during which you're interacting you might have not not notice that so that's scare uh scary it is but I'm not here to talk about transactional privacy that is because that is very small aspect of uh this ecosystem and there's one more tool which I have not added on screen but purely for educational purposes I'm going to mention it it is called as oxt oxt is a tool which can be used where if you put in your uh address you can actually create a complete profile of a user and know what are their interests what dabs they are interacting everything so you don't even need to use ether scan Okay cool so what do we need to Pro solve the situation where actually your transactions get revealed and it's not not just transactions I'm here to talk about more can you build a a grab or a gojic or a food delivery app on web 3 any thoughts would you be able to build a food delivery dap on web3 has anybody given thoughts e-commerce online shopping no thoughts look like look sounds like or looks like you guys are falling short of ideas you should look into why not uh Amazon on web 3 or why not some uh web2 applications on web 3 it's not because some somebody didn't think about it it's because it's not simply possible in web 3 why it's very simple if you place a order on Amazon or e-commerce application on web 3 I can see what orders you have placed because it's simply an onchain transaction right I am paying usdt or ethers to buy a smartphone or a on a web3 e-commerce and I can figure out what transactions you did uh at what time and I can sort of make a guess you paid this much amount of money so most probably you would have bought this thing and I can figure out your addresses because it's onchain I can see what data I have you have inputed your delivery address I can figure out where you leave where do you work what's your office address if you are building a grab or a goek for a ride on web 3 I can figure out from where to where you are taking your rids from your office to your apartment from your friend's house to your family house I can figure your address out because it's it's because the lack of encryption or privacy you are already using this in web 2 do you know where have you seen a pad lock a lock symbol when you type your address in the browser a green padlock that is called as https so in web 3 in web2 you are actually using https in in the past it was HTTP then somebody thought encryption was required and they built https similarly we need stps in web3 which would encrypt your data and your transactions your activity everything that's going through the chain okay so we need privacy so that finally we can build all this deps but we don't need 100% privacy we don't need 100% privacy because there are a lot of chains out there in the market uh that offer 100 percentage privacy like you don't have the flexibility you don't have the programmability to choose what can be private and what can be transparent or public and these chains or these Solutions have been used for fraud activities so we wanted to build something which would offer you programmable privacy have you heard about programmable privacy so it's a very if it's a very new term for you then I'll make it very simple it's like uh the sound system here it has so many buttons right in the same way programmable privacy in web 3 is like this this audio system where you can choose what I should make private and what I should make public like I can make my name priv private on ens but I can make my address uh sorry I can make my name public and my address private this is programmable privacy I can choose what kind of data on chain should be private and what should be public and that is programmable privacy and that is flexibility that we want to offer you as developers and users okay and what this flexibility means this flexibility means you could build finally daps in web 3 where certain activity certain data is public and certain data is private and this public data can be used for verification and all your personal identification and information stays completely safe and private and nobody stalks on you or peeps on you okay and we don't want to be the decision makers whether something should be 100% private or 100% transparent in ethereum everything is 100% transparent so even even if you want to keep your passwords or you want to keep your address or something private that's not possible we want you as a user or you as a developer to get the opportunity to choose the slider like the volume slider what I want to keep private and what I want to keep transparent so that also is finally possible with what we are building and all this is possible because of a technology called as te e have you heard about it anybody okay so if that is a relatively new term for you then trusted execution environment is a piece of Hardware that is in everybody's phone or laptop that is setting here Apple has got as Apple has got this chipet called as t1s or T2 or known as secure onclave what they use what they are used for to store your credentials your passwords in a safe and secure manner your mobile phones have got that if you have if you're using a Android smartphone then you have arms trust Zone if you're using a AMD laptop then you have got amd's SCV if you're using a Intel Windows laptop then you have got Intel sgx all these are trusted execution environment trusted execution environment is even used by Netflix for DRM even it's in the Blu-ray DVD player it's also in your crypto Hardware wallet in the form of sc's Hardware security modules TPMS these are small piece of chipset which ensures that your crypto Hardware wallet is safe and secure the same piece of Hardware we are using in our nodes to ensure that your data your onchain activity interaction stays private so it's like a in very simple terms it's like this black box you put whatever you want to put inside it it will execute it in a very trusted Manner and that can be verified but nobody else can see that it's like I put this remote inside it only I would be able to know that what I have put inside it nobody else can see that it's like a black box nobody can see it so you could actually put your personal details ins inside it could actually put your health details Health Data your symptoms and your net worth your balance your transactions uh your social media messages your photos your private videos everything actually could be put inside this or simply even a smart contract uh that needs to be executed in a verifi trusted manner can be put in into this and this will execute it in a verifiable manner and you'll get the out output but nobody else would be able to see into this or Peak into this okay so I gave you the example of all this data for just you to understand but simply smart contracts can be put in inside this blackbox or trusted execution environment and it would execute in a safe and secure manner or a trusted Manner and does the introduce any new hurdles or frictions in terms of developer experience or user experience because usually when you see a new L1 or L2 come there is one new thing that most uh importantly pops up that is a new language for you to learn to start developing on this L1 or L2 no there is no new language you can simply use solidity and the same set of tools like web 3 ejs hard at remix whatever it is and you can actually build on a trusted execution environment based chains like 10 okay and the same developer experience same user experience you can use metamask no need for new wallets you can simply use metam mask or any wallets you like to have a encrypted private experience and what are the possibilities if you have heard about me me is a huge Menace millions are made using this me strategy where front running is done on your Dy activity and this B there are me BS a lot of people who do me activity who make a lot of money that is because there is this public mle there is this transparency which allows them to see the transactions to do front running then there is uh so this this trusted execution environment based Layer Two can offer encryption where the mempool stays private and you can finally build a DE I a decentralized financing application which has 0% negative me 100% negative meev free so you can confidently trade without uh fearing of losses then you can build fully onchain games can you build League of Legends or Clash of Clans on web 3 you cannot build it it's not because people don't want to build it's because two things because of two things because there is no encryption for you to put all the game logic inside chain or on chain and second the user experience is super bad if you I'll give you a scenario like if you try to put Clash of Clans on web 3 I can see the contracts logic and I can figure out this is the next move I have to make to win the game or complete the level and I can see it because it's transparent I can see what are the logic that the game developer has added into the contract and I can understand and cheat so a fully onchain game cannot be built there is lack of Randomness like if you are trying to build a casino or a poker or a gambling game on chain that is not possible because there is no secure random number Solution on chain there are few other Solutions like vrfs but there is nothing onchain so finally you can build a fully onchain game like poker casino gambling games you can build fully onchain games with hidden maps you can can hide maps on chain or skins assets in-game assets on chain then institutional trading institutions don't want what sort of trading they are doing what sort of agreements they are making uh to the public like a multi-billion dollar company makes uh signs a deal with somebody else or they do some sort of trading they don't want you to know you're just in you're just public and that's their business they don't want somebody else to see so institutions are not getting into web3 because of lack of this privacy or encryption and finally that can be solved a lot of institutional based apps institutional trading Solutions can be built on chain dark pool trading and private liquidity that is a very interesting topic which is not possible with uh public chains but finally possible with a programmable private chain confidential health system so there is one of the projects that we recently started working with which is building a health Health shared network where you can add your health data you can contribute your health data and your data would stay private nobody else can see it similarly you can build a health insurance application if you're trying to build a health insurance application in a decentralized manner and if I try to add all my symptoms my diseases my ailments my conditions and if it's on ethereum somebody else can see what ailments what symptoms what conditions and diseases I have and that can be misused I don't want somebody else to know my physical uh ailments or my health conditions but that could be solved by finally building it on this solution or this chain where your health data would stay private nobody else gets to know about that so a lot of things like this could be built and this is using trusted execution environment and if you uh think that trusted execution environment uh is something that is giv you hiccups then there is one more thing that we have added into this which is optimistic proofs so trusted execution environment plus optimistic proofs ensures that it is a very safe and secure environment for you to experience encryption privacy with trust and decentralization okay so what this means this means there is encryption and when whenever there's encryption or privacy there are Bad actors who want to misuse this privacy or encryption to do fraudster activities fraud activities criminal activities okay so there is the question of compliance and regulation so we are actually compliant and regulated like we follow regulations because there is something called as data Revolution which is a very novel concept that we have introduced and which is going to be out very soon so what data Revelation means is that data Revelation allow you as a developer to tweak the time period or the Dao has the opportunity to vote and make certain data public when some fraudin activity happens or something goes wrong the Dao has the power to vote and make something or reveal something okay so data Revelation is in the hands of developer or the Dao so we want you to have the control of when the data needs to be private or public or whether you want to keep it private or public the complete flexibility and control is in your hands not just data transaction activity interaction anything on chain it's in your hands the control okay so what next we have got bounties worth $2,000 in this hackathon and if you are looking to build something interesting then you can explore what NIS I've given you a primer okay you can understand how encryption Works uh through the docs and get started with building I'm actually doing a workshop tomorrow you can uh sorry day after Tom yeah tomorrow tomorrow h.m I'm doing a workshop on how to build your first encrypted appap it's going to be a very interesting Workshop because you might have never build a encrypted dap so the for so for the first time you'll get an opportunity to build encrypted dap and that to in 30 minutes so join me tomorrow for the workshop and if that inspires you follow that there are lot of ideas in our idea Bank I'm I'm going to share the uh QR code can scan that build one of the ideas and the Bounty is all yours okay so that is my QR code you can reach out to me on Twitter okay and uh feel uh feel free to message me if you want to understand more about encryption trusted execution environment private shared States or if you want to build if you want to learn about uh private share States or blockchain even blockchain itself we just getting started if you want to learn about blockchain feel feel free to reach out to me message me and this is the bigger QR code that is my smaller QR code for me this is the bigger QR code for the bigger project that is 10 so you can scan this QR code this is the QR code to our Twitter handle 10 protocol you can scan this go to our uh website you will find all the resources like documentation projects resources to get started on using as a user or building as a developer all the resources are given in the website and uh you have everything now you are aware what is wrong what is the solution what are the opportunities and how to build and what you would get if you build so see you tomorrow on the workshop and thanks for being patient and I'm happy to be back here and talk about this the space is open for questions now so we have five minute Q&A time does anybody have question for a jobin or for 10 protocol thank you so much and congrats on the progress that's really cool