►
From YouTube: Cryptoeconomics of Data Storage
Description
In this presentation from Day 2 of the #SwarmOrangeSummit, Ralph Pichler presents how Swear and Swindle contracts work as a means of arbitrage in case of promised services and make sure that those services are either provided or the customer is compensated. As it is proper, he gave the room a quick tour of the code.
A
A
I
don't
know,
what's
happening,
so
I
thought
you
know
what
I'll
try
summarize
what
my
observations
are
and
what
I
see
are.
The
trade-offs
are
and
I'm
coming
from
a
very
crypto
end
of
things
as
in
like
Krypton,
a
crypt
analytical
cryptography.
That
kind
of
thing
that's
my
background.
So
forgive
me
if
I
say
something
with
this.
Not
in
your
contacts
stop
me
I'll,
try
to
explain
as
best
as
I
could.
A
Okay,
so
I'm,
assuming
everybody
has
a
fair
understanding
of
most
of
the
crypto
primitives,
and
that's
my
assumption
and
I
tried
yesterday
night
after
all
dinner,
putting
my
thoughts
on
the
slides,
so
the
slides
are
not
the
most
coherent,
but
here
you
go
before
I
start,
who
here
hasn't
heard
about
coop
economics,
good,
very
good,
all
right?
Okay,
so
this
is
essentially
the
definition.
This
is
I'm,
quoting
blob.
So
this
is
what
he
said
has
two
in
it.
What
the
definition
should
be,
I
think
the
thing
I
found
most
interesting
is
this?
A
No
that's
better.
Okay,
I
took
this
from
Wikipedia
right,
and
the
thing
that
it
describes
is
a
social
science
concerned,
chiefly
with
description
analysis
of
production,
distribution
and
consumption
of
goods
and
services.
Okay,
look
at
that
and
it's
quite
interesting.
It's
just
a
flipping
of
the
world's
model
of
how
we
are
observing
things
and
how
we
are
actually
going
to
you
know,
evaluate
value
of
things
and
I
go
to
manage
supply
and
demand.
My
thesis
in
this
whole
talk
is,
like
you
know,
data
as
everybody
knows,
and
everybody
and
I
think
Chris.
A
Anderson
came
up
with
this
thing
about
the
new
oil
and,
like
that
sorry,
whatever
that
is
right,
so
I'm
gonna,
you
know,
show
the
thesis
and
I'm
going
to
say
to
you
that
finding
a
value
of
data,
it's
not
really
hard
and
actually
having
models
describing
attackers
and
defending
yourselves
for
any
set
of
data.
It's
pretty
hard
and
having
actors
defined
and
having
defined
definitions.
A
half-life
of
data
is
even
more
harder,
so
I'm
just
going
to
throw
out
a
whole
bunch
of
things
and
kind
of
ask
a
lot
of
open
questions.
A
So
it's
it's
no
answers
to
any
of
these
questions.
Suggestions
and
you
know
I-
am
willing
and
open
to
be
challenged
because
I
just
want
people
to
think
about
it
slightly
differently,
because
this
is
not
a
small
problem.
The
way
we
are
currently
looking
at
data
and
what
the
way
we
are
actually
trying
to
value
it
and
the
way
we
are
trying
to
offer
services
to
store
it.
A
It's
probably
not
the
best
model
going
forward,
given
the
change
in
the
set
of
actors
and
the
way
the
world
is
working,
so
cryptography,
obviously
I
mean
I,
like
it.
I
spent
a
lot
of
my
life
doing
this.
Yet
now
it's
become
fun
fashion
and
when
I
started
out
it
wasn't
any
fashion
so
and
I
say
describe
this.
Is
economics
right
and
I
want
to
take
you
back
a
bit
and
kind
of
show
this?
Why
do
I
show
this?
A
Normally
the
utility
function
of
anything
is
never
found
in
the
early
part
of
this
thing
right
and
who,
in
this
audience
would
agree.
We
are
towards
the
left
rather
than
to
the
right
okay.
So
this
is
like
a
pretty
pretty
interesting
scenario
because,
like
right
now,
a
lot
of
the
things
that
we
are
thinking
is
because
of
this
right
and
I
would
pretty
much
put
my
hand
on
my
heart
and
say
you
know.
I
am
pretty
sure.
Probably
here
is
where
we
are,
and
mostly
it's
here.
A
Okay,
because,
like
we,
are
making
assumptions
about
an
average
person
on
the
street
and
we
are
making
protocols
that
we
assume
an
average
personal
Street
if
you
roam,
but
some
of
the
conversations
yesterday
we
had,
we
had
a
talk
by
somebody
describing
how
to
create
streaming
of
value.
We
are
making
strong
assumptions
about
behavior,
you
say
behavior,
let's
behave
like
na
mcc's
and
that
to
me
is
a
bit
worrying.
It's,
like
you,
know
a
geek
like
me
who
spend
a
lot
of
time
in
math
departments.
A
Turning
up
and
trying
to
me
at
least
attempting
to
mortal
you
said,
behavior
and
making
assumptions
very
strong
assumptions
about
not
just
things.
Data
is
one
of
the
real
fundamental
milestones
of
civilization
as
we
are
going
forward,
and
that
is
in
a
pretty
important
for
everybody
to
understand-
and
this
is
I
mean
this-
is
Simon
wadley's
map
mapping
to
exercise.
A
He
kind
of
describes
this
this
way
and
he
was
very
how
could
I
say
very
influential
in
the
initial
cloud
ecosystem
and
he
kind
of
described
how
you
know
this
adoption
happens
and
the
real
in
event
something
turns
up
in
the
Genesis
and
it's
custom.
Bull
me
take
the
case
of
electricity
right.
Then
he
actually
had
Edison
versus
Tesla.
They
actually
had
their
own
generator
generators
and
they
had
to
have
somos
returns.
A
You
know,
Edison
didn't
have
transformers
because,
unlike
it
was
DC
right,
Tesla
had
the
possibility
of
hair
advice
almost
right
and
they
didn't
have
standardized
plugs.
We
reach
utility.
You
just
go
plug
your
thing
onto
the
wire.
You
know
you
get
Alexa
T,
whether
it's
110,
what
the
to
tell
you
was
so
many
cycles,
and
you
know
what
the
cost
of
that
and
that's
why
we
are
mining
and
all
the
that's
happening.
We
have
all
these
devices
right,
and
this
is
essentially
what
will
happen
to
data
at
some
point
in
time.
A
We
would
actually
know
what
the
value
for
data
is,
and
what
is
that
we
are
building.
Do
you
know?
What's
the
definition
of
the
socket
okay?
How
does
that
mean?
Some
of
these
things
already
exist
and
I'm
gonna
go
to
that
and
like
in
a
slightly
different
way,
I'm
going
sideways
okay,
so
it's
like
I'm
looking
at
existing
models
and
working
backwards
on
what
is
it
that
we
can
learn
from
what
other
people
have
learned?
Okay,
what
Amazon
has
done?
A
We
need
to
understand
this
from
a
historical
context
when
they
turned
up
and
started
up
ec2,
they
had
no
isolation.
The
you
only
have
like
a
Linux
conceal
that
he
can
run
and
they
had
nothing.
Okay,
he
could
login
and
I
used
to
move
to
run
my
Windows
2003
instance
on
top
of
it.
Okay,
that's
because
I
wanted
to
do
that,
but
there
was
nothing
there
was
no
SLS.
No
I
did
the
Nexus
management,
no
logging,
no
nothing!
They
didn't
have
pricing
for
any
of
these
things.
A
Okay,
they
discovered
price,
and
this
is
a
reflection
of
them
monopoly
in
that
sense,
almost
a
monopoly
right.
If
you
look
at
the
total
distribution
of
cloud
in
the
world,
the
fraction
that
in
Amazon
represents
is
massive.
Okay.
This
is
you
know
it's
not
a
fair
market,
as
you
I
would
put
it,
but
this
actually
indicates
to
you
what
people
are
willing
to
pay
as
a
price
right
now
am
I
making
sense.
A
So
you
know
if
you
were
to
build
a
protocol,
you
need
to
have
indicators,
so
you
knew
where
you
can
draw
a
line:
okay,
okay,
this
is
the
realistic
line.
That's
happening
beyond
that.
If
I
try,
my
ability
to
compete
is
kind
of
compromised
right,
I
turn
up
and
go.
You
know,
I
want
to
compete
with
something
that's
available
same
price,
yeah,
pretty
good
since
back
more
expensive
unless
some
branding
or
some
sort
it's
pretty
hard
to
you
know
the
only
thing
that
really
seems
to
work
which
really
defeats
normal
thinking
is
coca-cola
and
Pepsi.
A
I
should
go
water
I'm
still
one
day,
I
know
dopaminergic
Sanders
in
your
brain
will
be
triggered.
If
you
take
sugar
that
works,
but
in
a
normal
sense,
that's
tricky.
It's
like
water
in
a
particular
bottle
cost
differential
massive
I
mean
things
that,
like
that
had
happened
in
the
market.
That's
but
not
the
norm,
so
you
know
I'm
kind
of
giving
you
what
the
price
of
water
is.
In
that
sense,
I'm
not
saying
we
should
actually
sell
Coke
and
Pepsi
and
use
that
model.
A
But
I'm
saying
you
know
we
need
to
think
about
water
being
bottled
and
what
her
being
available
to
people,
because
this
is
water.
Okay,
so
look
at
s3
and
like
the
way
they
actually
you
know
price
it
right.
Pricing.
That's
not
generally
essentially,
for
data
is
like
a
three
wave
function.
I
was
kind
of
talking
to
I
forgot
his
name.
Now
he
was
talking
about
surveillance
in
the
Leicester
days.
So
it's
like
it's
a
three
wave
function.
You
he's
head
over
there.
So
it's
you
know
you
have
a
tear
off
between
a
network.
A
Bandwidth,
IO
I
mean
I,
said,
network
bandwidth
in
that
sense,
storage,
plus
CPU.
So
it's
like
you
have
a
three-way
I
mean
you
could
have
like
a
thing
like
that.
It's
a
volume
amount
of
a
curve
rather
than
an
area,
and
our
curve
am
I
making
sense.
So
if
you
have
an
expansion
function,
they
could
be
possible
that
your
data
could
be
compressed
right
and
entropy,
for
that
is
much
higher
and
similarly,
if
the
bandwidth
is
tied
in
it
might
make
sense
to
not
encode,
for
example,
I'm
just
giving
you
random
examples.
A
So
this
these
are
trade
offs.
These
are
creditors
that
we
currently
are
not
really
leveraging
in
our
economic
protocols
that
we
currently
have.
We
assume
one
one
or
the
other.
Okay,
that's
giving
you
intuitions.
Okay,
and
the
other
thing
I
wanted
to
describe
is
I
mean
it's
not
my
idea,
I've
observed
as
an
enterprises,
but
other
people
have
wrote
this
app
wrote
a
book
about
it,
and
you
know
Oracle
and
people
who
sell
large
data
bases
actually
have
done
a
reasonable
amount
of
research.
There
are
a
couple
of
pieces
of
research
that
you
can
find.
A
So
if
you
look
at
classification
of
data,
email,
I'm
sure
you
are
all
aware
of-
you
know
different
countries
actually
classified
data
set
as
in,
like
you
know,
say
this
is
classified
so
they
will
reveal
it
to
anybody
other
than
the
people
have
the
clearances.
Okay,
it's
a
certain
point
in
time.
They
will
reveal
it
okay.
Similarly,
people's
data
we'll
have
kind
of
a
life
span.
Okay
and
enterprises.
Data
will
have
a
half-life,
so
to
me,
I
think
most
of
what
will
you
be
aiming
at
the
largest
set
up?
A
Data
I
think
will
be
more
people
like
people
like
you
and
me:
they're
drought,
rather
than
the
enterprise
data
set.
That's
my
one
of
the
my
core
assumptions
because,
like
otherwise,
this
game
would
be
very
skewed
because
of
economic
incentives
for
actually
and
the
prices
to
store
data.
In
a
very
open
Network,
it's
very
different
from
actually
people
like
you
and
me
doing
that,
because
of
a
lot
of
legal
legal
obligations
and
other
obligations,
they
actually
have.
A
Okay
and
one
other
thing,
I
thought
I
should
mention
because,
like
it's
kind
of
important
to
set
context,
so
whenever
I've
been
talking
about,
you
know,
protocols
and
rip
economics.
I
am
basing
this
on
the
framework
that
any
of
the
tokens
that
we're
actually
going
to
have
to
use
to
build.
Such
a
protocol
is
a
utility
token
and
I'm
going
to
redefine
what
a
utility
token
really
means
from
a
very
cryptic
anomic
perspective.
Okay,
the
reason
I
say
that
is
like,
if
you
have
you
know
an
arbitrary
sense
goal
being
organized
right.
A
You
have
no
ability
to
control
the
value
cool
in
the
market
by
trying
to
manage
the
supply
and
demand
of
the
tokens
that
it
represents.
Yeah
absolutely
have
no
idea,
no
new
ability,
so
it
doesn't
work.
You
have
no
control
for
a
utility
to
really
work
and
you
have
to
be
able
to
have
the
right
kind
of
behaviors
in
an
ecosystem.
A
A
The
thing
I'm
kind
of
highlighting
is
like
if
there
is
a
behavior,
where
this
particular
token
is
going
to
represent
some
sort
of
store,
a
value
for
not
really
store
a
value,
an
investment
opportunity
for
any
set
of
people,
then
our
ability
to
actually
have
the
utility
behavior
will
disappear
pretty
much
right
away.
Then
it's
arbitrage
over
time.
That's
pretty
much!
What's
going
to
happen,
so
we
need
to
actually
think
about
this.
We
need
to
actually
think
about
inflationary
characteristics
of
tokens.
I'll
repeat
it
again:
inflationary
characteristics
of
tokens.
A
A
Okay,
this
is
like
you
know
somebody
else's
question
there,
I
tweaked
it
a
bit
too
healthy
people
understand
what
are
this
but
I'll
just
go
through
that
everybody
here
would
know
about
unions
comment
just
right.
Is
there
anybody
here
who
doesn't
know
about
unions,
conventions?
Okay,
good,
so
you
know
this.
Guy
said
this:
you
know.
Protocol
goes
faster
on
the
combine
by
the
application
and
thing,
and
it's
pretty
important.
It's
very
important
in
a
very
important
sense.
Look
at
the
value
of
Facebook.
Look
at
the
value
of
Google.
A
What's
the
value
of
tcp/ip
as
it
is
what
we
knew
right
interesting
right,
and
this
is
what
is
happening,
and
it
is
a
very
interesting
implication.
So
look
at
this
right,
I'm
being
a
devil.
In
that
sense,
it's
like
I'm
questioning
ourselves
right.
One
of
the
things
we
need
to
understand
is
like
when
we
actually
want
to
have
a
price
discovery.
If
you
have
smart
contracts
to
actually
do
price
discovery,
you
know
this
is
an
old
one.
I
haven't
updated
it
so
I
have
a
very
strong
disclaimer.
A
Okay,
at
valley-
it's
not
today's,
but
you
know
you
can
look
gas
required
and
you
know
you
can
look
at
it
this
way
right.
So
that
is
what
it
is,
and
it's
not
really
good
for
us
to
actually
have
large
amounts
of
good
doing
anything.
So
we
need
to
actually
think
about
a
way
by
which
we
can
actually
do
our
logic
somewhere
fast
enough
again:
okay,
fast
enough
and
cheap
enough.
Okay,
if
it's
not
fast,
and
if
it's
not
cheap
the
price
discovery
for
smile
value,
it's
not
gonna
happen
am
I
making
sense.
A
A
Okay,
this
is
like
ignore
it:
okay,
yeah,
okay,
security
margin
of
proof,
but
the
thing
I
really
want
to
say
is
like
this
is
a
bit
geeky,
but
this
is
from
a
paper
that's
published.
There's
no
recent
updates
to
this
paper.
Nobody
has
actually
published
a
paper
looking
at
the
security
of
margins
for
various
things:
okay,
Eric
Warhol
and
Arjen
Lenstra
published
his
paper
2001,
and
this
pretty
much
reminds
to
be
like
the
yardstick.
But
it's
you
know,
things
have
moved
on.
Lots
of
things
have
changed
again.
A
The
reason
I'm
mentioning
this
is
like
a
lot
of
the
assumptions
that
we
make
about
security
margins
pretty
interesting.
Okay.
This
is
kind
of
what
it
looks
like
so
I
think
yeah,
yeah,
I,
think
I
moved
on.
Quite
a
lot
right,
so
it's
a
symmetry
key,
the
you
know:
isometric
classic
STL,
ECC
ECC
again
in
a
sense
like
this
more
prime
P,
rather
than
anything
else
and
I
like
a
map
pious
year,
that's
like
the
cost
and
look
there.
A
A
Ok
and
then
you
can
do
a
finger
in
the
estimates
of
ok
where
things
are
going
to
be,
and
I
will
tell
you
why
I'm
saying
all
this
ok
right,
I
need
to
show
you
this
ok,
this
is
this
is
what
I
wanted
to
show
you
and
then,
while
walk
backwards.
So
how
current
assumptions
is
there
are
no
existing
QCs
that
have
the
ability
to
have
probably
more
than
am
say,
50
cubits,
okay,
I'm,
not
talking
about
the
wave
I'm
talking
about
traditional
chronic
computing,
not
adiabatic,
computer
okay.
A
So
we
can
actually
do
a
short
solve
all
right.
So
that's
an
assumption
that
hasn't
been
factored
into
the
previous
thing.
That
was
that
imagine
I
will
in
a
situation
being
you
know,
like
five
years,
okay,
say
10
years
pessimistic
view
the
10
years
time
we
will
have
a
QC,
that's
capable
of
actually
doing
anything
real
right.
Even
then,
we
haven't
really
looked
at
our
protocols
in
a
way
that
we
cooks,
fat
out
our
parameters
to
plug
in
new
ones,
and
we
haven't
packed
it
in
security
margins.
A
The
way
we
should
look
and
I'll
go
I'll.
Give
you
one
more
reason
why
we
should
think
about
it
that
way.
Ok,
this
is
like
my
thinking
about
what
we
should
do
but
ignore
it
as
people
have
been
looking
at
it.
If
you
look
at
the
proceedings
of
pour
scorn
on
crypto,
you
can
see
that.
But
again
you
should
understand
from
2008
to
2013.
There
was
no
proceedings,
it
was
a
dad
topic
for
almost
eight
years.
A
Okay,
nobody
was
interested
in
that,
so
we
need
oh
yeah
I
need
to
shut
it
down
as
soon
as
possible.
Okay,
so
this
is
it
and
I
was
kind
of
describing
one
small
bit.
So
one
of
the
things
I
want
to
say
it
was
like.
Sometimes
some
of
the
problems
could
be
actually
solved
by
actually
introducing
intermediaries
and
intermediaries.
A
If
we
could
actually
do
it
in
an
efficient
manner,
it
might
be
possible
for
us
to
gain
increase
in
elasticity
and
in
a
possibility
of
getting
price
discovery
and
I'm
kind
of
proposing
that
we
should
think
about
reinsurance,
because
that's
how
traditional
markets,
work
right
and
I
also
wanted
to
mention
attacker
morals,
like
nation-state
right,
pretty
important.
If
you
look
at
cabbage
analytic
and
the
rest
of
the
guys,
what
your
understanding
is
nation-state
have
interest
in
actually
having
their
and
changing
the
value
of
it.