Better Than Free? The End of FAANG. by Pol Bordas (Devcon5)

What does it mean? Yes. Facebook, Amazon, Apple, Netflix and Google. We are right. These are the best apps right now.

Hmm, but it was n't like this before. This was not the case in the past. The first great app I ever used was Prince of Persia. I didn't play it on the Apple 2 . I played it on Microsoft.

I can remember which model . I was very small . It made me dream about what I could do with computers . You can be a prince . You can do magical things.

So, when this came up, I was really great . I'll tell you that one of the best apps for me today is Zelda of Time. But there was a problem. There was a problem with this machine . One day I was playing outside .

I was in my village when a big storm blew. I was on my bicycle . I was about 20 minutes away from home. I was soaked was soaked , but I wanted to go home and play Ocarina of Time with my friends. Alas.

That didn't happen because I had the window open and my Nintendo 64 was near the window. So, that big storm destroyed everything, and I lost my Nintendo 64 . The enemy of those great processors is just a glass of water . A little water will ruin those great apps, this Ocarina of Time . You laugh at me, saying I'm an idiot and that I left my Nintendo 64 by the window .

But you'll still smile a little for those who kept the doors open while the cement work was going on on the London Underground . It's terrible for them. But if we had the cloud capabilities we have now, none of this would have happened . So the cloud is very convenient, is n't it? The cloud is amazing.

The cloud allows us to access everything we need from anywhere allows us to access everything we need from anywhere . This is how I use apps as an adult . I use Spotify for my music . I use GitHub to look at my colleagues' code . And I'm using Google Docs to make this presentation .

For example For example , what if I lose my laptop , nothing happens, I can use it from here. So I know the story is that the cloud is amazing. The cloud is very good. This relieves you of the burden of storing and backing up . You can access this from anywhere.

You can do the calculations of more complex processors somewhere else and use them on a low-power device . Um, it's a lot cheaper than buying hardware every time you play a game, and it's scalable scalable . Um, in short , the cloud is very convenient. I am proving a point. Um, who is running the Ethereum node here ?

Okay, that's very good. Um, who runs it on VPS ? Why? He is a caretaker and caretaker of security. Who else is running VPS ?

Of those four . Why? I do n't have a home. Wonderful. You are right.

So, this is a good thing. Um, basically you're running it because it's so convenient, right? This is very convenient. Um, we learned how much it can help you run any application you need, including Ethereum, especially for those who don't have a home . Um, we looked at the apps I use and the ones I used before .

But let 's look at the processors used by the world. When I say 'fang' in general , this is what I'm referring to referring to . These are the apps that people use the most on their phones right now . I researched where those apps are hosted , because even if you have Facebook on your phone , not all the magic happens on your phone. So, as I found out, four out of the top five are on Facebook servers .

Facebook has huge data centers. Um, we can call it Facebook Cloud . They don't sell cloud services. Um, four of them are on Google Cloud, two are on AWS, two are using a multi- two are using a multi- cloud approach , meaning Google and AWS and other companies like Digital Ocean , who knows? Um, five of them use cloud services , but they are mostly Chinese companies, and they don't disclose who those infrastructure providers are .

But checking their annual reports revealed that they were using cloud services. And three of them don't use the cloud . Why? Because they are media players, and if the distribution of these apps happens through Google Play, it also happens through the cloud, but there is no connection between the app and the cloud. Okay.

How much does it cost to run this app? Google spent $13 billion on its network infrastructure last year. This year they have one . Snap, which was on that list, pays $600 million a year to Google and AWS . Lyft 100 million.

Slack 50 million. Pinterest Pinterest 125 million. Who uses Pinterest ? Apple 360 million per year. Did you know that Apple's cloud is actually an Amazon Web Services cloud?

So these five customers alone bring in 1.25 billion US dollars a year . If you look at industry projections, it will be 83 billion in 3 years . That is a huge amount. And those apps are free.

Watch out. There are two apps that operate on a subscription basis, Netflix and Spotify. Two more, Uber and Amazon. Those are paid services for you. So downloading the app is free.

But if you actually want to use the services, you have to pay . Those apps are free, but they spend billions a year maintaining the infrastructure . But you all... all... you're in this room .

I know I'm talking to people I already know , but you know what happens when apps are free, right? They are selling your data data . That's right, but no one cares about it . It's even funny . Everyone knows that.

Everyone knows this. We laugh when we read that Apple contractors often ask for confidential details. They listen to people having sex . Yes. Funny Funny , right?

If you are not a homosexual living in Saudi Arabia , you can be killed there be killed there . When someone complains about you . So it's a little less fun. There was another example of data misuse, and it happened when I went to the Bronx. So we are in March 1940 .

Germany invades the Netherlands , which at the time was one of the most progressive countries in the world; They were a secular country and had very fair ways of approaching religion , meaning they had a budget for religion in their annual accounts and divided it according to the percentage of the population belonging to that religion. This means that they knew everyone's religion in the census knew everyone's religion in the census . So the Germans came in, went to the census office, and they got the name and address of every Jew in the Netherlands got the name and address of every Jew in the Netherlands . This was the largest number of Jewish deaths in the Netherlands during World War II, both in percentage terms and in absolute numbers . Hmm, okay.

So, we don't need to go that far. You don't need to go to Germany in the 1940s for an example of how that data can be misused. Everyone knows about Cambridge Analytica. Now, they have grown tremendously . Well, we're probably here .

Maybe if they weren't weren't , you would have gotten a different result . Maybe 'what if ' scenarios are n't my favorite, but they certainly tipped the balance by targeting those who were hesitant to use data to make decisions. There is another person who used legal services, another principal. Um, and do you know, do you know how much he paid for legal services ? Take a guess .

How much does it cost to win an election? 10 million. Even less. Oh, five. 5 million.

5 million. Exactly 5 million. You have the data of everyone who has a Facebook account . And you can go much deeper. Um, this is the former CEO of Cambridge Analytica, they did their work based in Alexandria.

Well, there's a researcher out there who, a long time ago, created a set of algorithms that, if you have 150 clicks and 150 likes on Facebook , they can know you better than your best friends. They knew things about you knew things about you . They knew more about you than even your closest friends . If you were gay , they knew exactly that . Hmm, okay.

So, this data is dangerous and can be used for the wrong things , which is happening right now . Hmm, does this stop people from using these apps ? Is privacy really an important aspect? Look at how many users Facebook-owned WhatsApp has, 1 billion daily users. I am one of the daily users.

Well, almost 1 billion on Messenger. Um, 200 million users on TikTok, that's where you post your videos and everything . You are almost half naked there . They know everything about you. Yes, Facebook 1.

6 billion. That's a lot of daily users. Well, for comparison comparison , let's look at this weekend. I look at that processor section , and it's only 3,000 . But we are doing well .

I think we're doing well . I think we need to make further progress. Furthermore, I suggest that we follow another model . Let's take another approach . We need to take an approach that removes power from all these cloud services.

What should we do to bring our decentralized applications (DAPs) closer to the usability level of traditional applications ? Well, first of all, they should be free . Free. Okay. Yes.

What else? What is that magic word? Convenient. They should be easy to use . They should be comfortable .

They should be comfortable . There is an unwritten rule that just because a technology is better, it does not replace the previous technology . It should be ten times better . So, we need to create apps that are ten times better than the currently popular ones, which are not Ethereum right now. Um, what if it's free?

Get paid for it. We pay a lot of money to these cloud service providers . Therefore, I recommend a privately owned distributed cloud as a way to transfer value from cloud companies to users . In the current model, the money made from selling data goes to the cloud service provider . There are other money exchanges , but I want to focus on that money exchange in particular , because we have something that they don't have , which is a native mechanism for transferring value.

So, if I wanted to create a decentralized Spotify , I would suggest we do it like this . We will pay users who save this work for us . For us, I will use a Spotify that pays me will use a Spotify that pays me . I feel sorry for you I feel sorry for you . You ca n't, because you do n't have a home.

You can't use this when you're at home, but you can probably use it ; That would be right. So, I suggest that if one pays on Spotify, most of it is free, which we will see later . They pay here , and we transfer that value to the user . We are still a long way from that . I'm trying to list what is needed to make this model work.

First, it should be accessible anywhere, anytime, like the cloud . It's not 10 times better . This is a this is a this is a minimum requirement. We need this, but we don't have it right now . This is a very difficult thing.

But we are working on this . We are working on the infrastructure side to improve this infrastructure and make it accessible from everywhere . So to explain how we work with Arial, I'll use two DevOps concepts . Everyone knows what a high availability cluster is . It is basically a collection of multiple connected nodes, where the second node takes over when the first one fails takes over when the first one fails .

Ripple is building a system aimed at ETH 2.0 , so anyone can start staking from the comfort of their own home. You form a consortium with your friends , and if your terminal goes down, the second terminal will take over will take over , thus avoiding penalties due to the operational delays of your terminal . Very good. We are getting close to high availability here .

There's another thing in dev-ops called load balancing, which is basically distributing the load between nodes or servers , and there's the pocket network. They do a great job of creating this orchestrator that redirects traffic or transactions to online terminals . So, we have high availability. We have load balancing. We are making progress , but this is just the bare minimum .

It's not 10 times better (10x). Another thing that is not 10 times better is throughput and scalability. There are things that can help improve measurement. I am not an expert in this. I'm not going to talk about it .

But I know you are all complete experts in Zero Knowledge Groups roll-up, Ethereum 2.0, Layer 2. We need this. This is a minimum requirement. But we have started to make progress on the issue of privacy .

We said privacy is not a core proposition . That's not a value proposition, but that alone is not enough. It's not 10 times better. This is four times better. Why do I say that?

Because between a private app and an app that sells your data , if they were available at exactly the same level and could perform the same level of transactions , it would be clear which you would choose . But we are at the very minimum level here . On the infrastructure side, we can add secure environments like SGX to the hardware to ensure privacy. We can create zero-knowledge groups within those safe spaces, allowing app users to do whatever they want, safely and privately . Also, we've seen apps like Spotify work like this, both as a subscriber and as a user , right?

There are some other models for this. For example, a data fund is a more ethical way to use data. So, we don't need to throw away all data, but we should let people decide for themselves what data they want to give away and to whom . Yes. Another thing that needs to happen is to provide incentives.

There are many projects like Packet Network 2.0, Storage, Rayon, Vitav, which we can use can use . One of them alone won't provide enough money to run a project, but stacking them together in one system will give you a cash box in your home and the income you need to maintain that box . So it's not 10 times yet . There is one more feature.

People need apps that are usable and easy to use. Provide value to users. It's not just about user experience and interface . Sorry, I should have changed it . It is basically based on the value proposition.

Provide value to users. Most existing processors use the 'hook' model . I don't know who knows about the hook model here , but they trick you into using it all the time . They are enslaving you . They tie you to it because the best app in the universe is the one that vibrates your phone whenever someone on the other side of the world likes your picture.

When it vibrates, you look look , you want another thing , then you put it in the bag , and again it vibrates due to someone's action. Even simple things like clicking are designed to make you addicted . So when creating apps, make sure you're not a drug dealer . Make sure you really want to use it and whether it improves the user's life . This is the way to get processors that can compete with current models.

So in that node we take care of the infrastructure stuff . We are working on the first part of this infrastructure to make it available from everywhere . With scalability, the Ethereum Foundation and everyone is very careful about it . Privacy. We include SGX and other systems into our boxes that you can use for your DAS to create a private and secure incentive.

We know that with E 2.0 it will help us a lot , but you have to do the final part: you have to build apps, that's the core value. I suggest you think about this model the next time you use a human-centered design approach to build an app suggest you think about this model the next time you use a human-centered design approach to build an app . Instead of paying cloud providers to take this data and use it for something , think about this : get people to host it , encourage people to host your apps . If you would like to know how to do this, please contact us .

We can help you design something on top of this, which we hope will be as convenient as or even more convenient than using BPS . Thank you very much.