Countersign Redemption Agreement Template Made Easy

Countersign redemption agreement template

Thank You Stefan for the flattering introduction so just a bit of context am i I didn't manage really to time my medication very very good so you might see some strange movements from me so don't worry I mean that'sthat's just my condition hopefully at the end of the presentation I'll be able to walk but nothing not now and we get into this get into it so today I'm going to talk about source fairness window games what is this all about so the bit of context about about me so first first I think I owe you two to give a little bit of the context of my project and I'm the tech lead for for the swamp projected for the Union foundation and and set the context for gonna talk about which is actually a sub-project of the swamp team and I so first first let's go to the status and then I jump and just sorry and after that time I'm going to talk about you know jump into the sorcerer and swindle games so so first of all what is what is form this tyrion foundation and founders kind of leon that the the public blockchain etherion blockchain is it's basically the last the final missing piece in the puzzle for for for recent rise the disatrous internet as a whole because it can it can provide the what's what was really missing in in in in decades of peer-to-peer technology research basically the the incentivization layer so it provides the the word computers you know processing the ethereum blockchain to be able to program incentive systems which can make the the peer-to-peer systems and of self-sustaining with providing economic incentives and that's why kind of the envisage this and finally could holy trinity of the etherium ecosystem which the public chain on one hand or for for document storage and contribution only the other end third whisper for for a communication so this this is how the the narrative started with swamp original let's now consider the theorem blockchain as the as the word computers central processing unit the word computer CPU then what else is missing from that well computer had parties so one will be the word hard however this this narrative I I kind of I'm leaning towards changing this narrative a little bit because the spawn project on the way realized that a lot of the technology that we use of good design and a lot of interesting solutions fell out of a lot of it and and now now the scope of the sponsored project is slightly more ambitious and we're trying to provide all kinds of base layer services for web 3 for the decentralized web what is it that I'm talking about so first of all as a swarm as a as a decentralized ready centrist and distributed document storage and content distribution system shares a lot of good properties with with all the other efforts in the field like including BitTorrent itself so it's it's kind of it pro it brings what what you expect of it like the promise of a zero down time for for tolerant system which is has censorship resistance due to the fact that content is redundant restored distributed and network so the authorities have no way to knock on anyone's door to bring down any any site or any anything that's that's not of their liking and that's that's an important property to protecting freedom of information and more interestingly if small more also there's auto scaling which we just without any further exploration just means that popular content will replicate more and will be more spread out in the network and as a corollary to that fact you have lower latency of retrieval when you when you want to retrieve those those assets and most importantly it's it promises self sustainability which means that we're going to design some incentive well actually we designed some incentive systems which can provide economic incentives for the participants to share their resources notably share their bandwidth to to facilitate fast retrieval and relaying of messages and secondly provide insurance for preservation of files so for example the problem of like how how you make sure that if you want to store in in in swarm like fight you don't success very often say rarely access files like your birth certificate or your grandmother's family album how you make sure that these are preserved in the face of the opportunity presenting to store nodes to store more popular content like or the lower concern the word and and this kind of insurance system is one of the pillars of this of this SAP sustaining so this bit of context and let's let's see now what what I'm talking about when I say that the scope was for me slightly wider than then originally perceived off in the context of being the word hard disk well of course of course apart from document storage content distribution virtual hosting which are the primary elements that I mentioned now we extended us up to three more areas basically internal messaging which is the protocol the SSL I'm not sure if I'm going to talk about this but there's also in the pipeline quite comprehensive support for recent rise database services notably indexing and and provable provable creation of certain views of views of data and processing aggregating various data sources and thirdly support for all kinds of digital service supply chain economies in general this is actually the topic of today's talk what I'm talking about here is is basically support that if even if in the network you want to have network of service providers that's provide some sort of digital service there's some basic functions which you you know might want to do be able to use for example payments and and some sort of service guaranties service guarantees with the whole shebang off of enforceable enforcing those service guarantees issuing the servant is verifying etc and of course the payments it should be I mean these days yeah you know we have the public making blockchain for for for secure payment so what what I wouldn't even in their to mention payments if it was not in the in the spirit of you know making a scalable system of of chain payments which means that you know this is this is the usual spin out that I have to mention that you know there's there are problems with the with the blockchain everybody knows that even even even block chains with the promise of you know sharding ends and proof of state consensus it's kind of doubtful that as such they can cope with you know visa volume-time trans trans trans visa side trans transaction volumes similar to what what Visa or MasterCard processes that is the usual caveat that people mentioned and of course the the remedy to that is as there has been proposals in the in the blockchain space usually based on side chains or state channel networks our solution the swap silence window gamed framework is our flavor of the kind of station or flavored approach I will I will talk to you talk you through this so basically in in summary the the the support that we want to give through digital services is a scalable and and and and robust payment system of chain and also a system of serving this is that are enforceable so I'm gonna skip this because this this this slice is just goes through the you know the properties of swarm and boast about how it will be of course it's a little bit void without having a working proof of concept at the moment the the status of the project is is very basically in alpha so the the currently working swarm has has a test cluster which is kind of the the next big release is POC proof of concept three release which I I kind of planned it to come out to be released before Def Con it's not going to happen so hopefully it's going to be released this year and the proof of concept for according to my plan beliefs for the recommend this production version of of swamp so it's kind of like let's bullets that's called beta and what you see what you see on the under and the diagram is just a various a ice that that how have you currently you storm in the middle that's not the most important one you have a HTTP proxy interface that you can interact via which swarm from decentralized applications and all kinds of script so this these these slides just detail the features that's going to be included in the in the proof-of-concept releases and now I move on to to the to the second part of the talk which is exactly about this the swaps and swindle games framework so what what is this all about this is this this display full where the improper substance window is just feeds into my obsession with acronyms I I like you I like to entertain myself with acronyms which which the acronyms that I use have to be it's themselves words which are meaningful and also functionally and semantically related to the point that they stand for so it's a very game and in this is the swaps parents window kind of map to three aspects of it of this framework and this system hopefully it's kind of mnemonic ly relevant so swap is the is the part where we're peers dinner in a network kind of swap certain instruments like the the issue checks and and service requests and and they swap transact by issuing this and receive from the other so it's kind of local interaction of various instruments so that's that's one part of it is the transaction of communication component the swear component is is the ability to to actually to promise to commit to a to a service contract some sort of agreement that that you you keep yourself to and to collateralize that promise you put up a deposit to a contract on the on the blockchain and you stay you you you stand to lose it in case of foul play in case you found cheating or or you make a mistake or or you were your equipment dies then you you can be held accountable for for not complying with your service promise this component that that manages that is the escorts web and the swindle component is the actual judge part that that the takes care of enforcing the the the service contract it it it basically implements this kind of court room type system maybe we're going to go into that a little bit more detail kind of a courtroom system inspired by the paradigm of block trained as a judge which means that in most normal operation we we assume that things are going fine only in the case of some trouble you report you basically sue the person it's like in in the real world trial you basically start a litigation where you challenge the the the service provider that didn't comply with their with their own we do it the rules that they that they swung on and and there's this component kind of workers traits that the trial ask witnesses for testimonies whether whether it's true that they didn't comply with the promises and finally they come up either with a guilty or not guilty verdict which is passed back to the to the registry component which can execute the sentence assigned to that particular verdict in this sentence is in the most usual case it's just for free forfeiture of your of your deposit and usually the exclusions from from the game it's like you you you you lose some reputation points definitely so this is this is the the overall context so the so this whole thing can be characterized as this framework characterized quite viciously maybe a bit maybe with glorified way that's but it's a kind of scalable base layer infrastructure would be centralized service economies and and and these are the three components I talked about so what is what is swap let's let's let's word first go into the first components that's what so swap is first of all offers an accounting protocol which is a tit for tat accounting between peers it's it's it's peer peer to peer accounting system which first of all allows you to exchange service for service in the case of bi-directional service provision what are good examples for that the the best examples are the the bandwidth like relaying data in swarm itself so basically sharing bandwidth when I when I request you know I watch a movie and I request you know chunks of a film like certain data blobs that are part of a film from my peer then I paste I pay for it which means that I just account like yeah I gave I I think I took one chunk from you and and when that person also you know what is their favorite show then I then they were they will request certain chunks and some of them will be relayed through me and therefore like I I get my credit for for a serving them that chunk so for service for service provision just a very simple tea tour that accounting if the if the service consumption and provision are roughly equal over time and there's no no variance then basically this system can can get away with with not even not touching the blockchain but not an end of payment obviously this is that this is very you know mess with most of the time the the the traffic will be tilted and one party will substantially consume more than the other at least throughout a certain period of time so this is when we when we introduced a kind of delayed payment instrument that that we combined with this proper accounting protocol a delayed payments instrument is a simple checkbook that's what we start with and we're gonna win a car gonna build up this whole system from like very small and very simple ingredients like as if we built up a castle from like little LEGO pieces and so the checkbook is is exactly the same as a real checkbook so you can issue it you can sign a check to a beneficiary with a particular amount and and and if you if you if and you operate a checkbook contract and in in the same way that that you go to the bank and and cash your check you you send the cheque does the signed note to the checkbook contract which which verifies it and if the balance checks out it sends you that it's transfers you - sure in the amount however the of course the interesting thing is that we're giving the checkbook I give I also give you the opportunity to not necessarily catch it right away but give you the opportunity to hold out and therefore save on transaction cost now the interesting properties of this checkbook a very simple mu contract is actually really beautiful that such a checkbook contract is basically five lines of active code in the theorem in a solid 80 language and and I think it's kind of a really beautiful demonstration of how how powerful this come yet so so once again anyone can send in like the the cheque and and the problem with that is that of course the checkbook is not containing any kind of payment guarantees right just like in the real world if you if you zero your account then of course the cheque that you gave me earlier will bounce so so it has it has limited you know guarantees limited liability but but of course it's it's better than nothing because it's because it's explicitly at least acknowledging I owe you something so by not having your money on your on your child book account and I mean and your check bounced thing you basic admit to to you know basically cheating because you didn't have any resources and and exactly this is exactly what happens so when when when a check is cashed and and the balance is not sufficient there is no sufficient function under and the checkbook contract then the check the contract defaults and and and then your reputation at area identity attached to that checkbook is is it's basically void so so let's let me let me turn to this diagram because this explains to you the interaction between the spoke accounting and the chairman so basically in take-take-take the pier that data to interact and and exchange service for service they have so we have a certain tolerance threshold which say that okay I allow you to to to get like hand reach anks from me but if you if you if you get more than hundred chunks so if a relative balance is more than 100 chunks then then please pay to me back because that's let's indicate but you know you can consume more so in this case the orange range this is the Easter is the free range where where things can move without anyone paying anything but when you get to the end of the so in this case the vertical fat line indicates it's where we are in the in the in the relative balance so in this case P R is is actually consuming more and in this case if you reach the payment threshold that's one of the dashed lines then you you're you're you were obliged to send a check to the other person and when they when they have the check they they said said the swap balance back to zero yeah what do they do with the check I mean first of all of course they can be the cautious and that just just cash it on the blockchain but it's not a very clever thing to do because the whole point of of checks is that you can hold out with with the payment and and the the other property of this check the contract is that if you if you accumulate several checks then you can cash them in back because basically they record the overall total cumulative valid owed to the to the to the to the counterparty to the beneficiary and that's right it's always enough it's always sufficient to send that just last you should check and get that you are owed you don't have to actually carry carry all the checks that you've accumulated with you to the bank okay so what what do you do of course if the other person doesn't issue the check where you have a you have a certainly way you have you have a disconnect threshold which which is you know basically some some sort of either time or consumption limit so if if they so when they reach the 100 limit for example and that they then you expect a payment if they read you hundred and twenty and you still didn't get anything then you disconnect from them and you never never deal with them or do whatever you want to be like some recording some reputation points with okay so so far so good is it is it more or less clear so far yeah so so this is this is actually the timeline sequence and timeline diagram what's happening so there are like four entities in the in the in the four vertical columns so just just to just were you to understand clearly the the the ones on the side that are called a client and the client they are the off chain representation so is that the entities that are off chains that are in the peer-to-peer network they basically exchanging these checks and the middle two columns are actually the swap contracts or chat book contracts that are on changed so the green stuff is happening on chain and the red stuff happening off chain so here what happens is the first line says that you it to a check there's the this time passes and the client B decides to redeem the check they send the check in the transaction to the to the blockchain to ace to the issuer's swap or check book contract and what what the does is simply does an easier transfer if the if the balance allows it and that that generates kind of log events which which the clients listen to the so they get notified of the withdrawal and and the transfer so this is this illustrates a very very simple sequence diagram of what's happening now what what I think Watson another interesting feature is that you can use this system to do actually not only holdout payments with the checks but actually pay pay with with the accumulated checks from the other person so so let's assume that we consume so much that you ended up with with three checks from you and I piled it up I actually trusted or watched your balance and I heard out not not cashing them so it's a pile of uncashed checks now I I started consuming and in the balanced it's the swap balance states to two towards me being the being in that and what do I do with that situation well it would be nice to have some instrument where I can waive the the checks and then say that basically I I don't want to pay you with the check but actually let's destroy your check that you gave me I promise that I will never never cash it this is this construction is called a waiver so basically what what happens is that as the current as the consumption goes back and forth you you you exchange checks and waivers and and and and and and this is this is how you and how you settle the balance of course that these these don't have like secured versions of how you can actually settle so when when when someone sends in a check in in a checkbook contract that allows waivers you can you can send in a check and that that puts puts the the the the read road funds in in a withdraw funds you know in a kind of escrow say state and and expects the other person to send in waivers just in case so just just in case they the your counterparty wants to run away with the with the with the check amount but they actually already already waived it because streams up with from you is this understandable yeah so so so in this case you collect waivers and and checks and they they pay pay off they paid off against each other so of course you can enrich the construction with the within with an actual on chain balance which you dedicate to a path to a particular period what does this mean so so far we talked about the checkbook contract which every contract has an overall balance but you have several creditors I can I can issue a cheque to to Julian I can issue a cheque to Fabian and and the balance the overall global balance of the child book is a collateral that's pulled over or my creditors so in case in case they they have no way of knowing each add of about each other ham how much I promised in checks to each other so they basically no way of telling whether whether the solvent if they run the bank if they run the bank to cash the checks so so what what's what's the possible solution for that well they might want to to ask me as the issuer to dedicate a particular deposited amount just to them so that they know that I can I can issue like a checks up to a thousand either and and they can still be sure that that locked up amount is will recover and collateralized that that that debt so they can hold out who that not cashing the checks but they still be hundred percent sure that they we have the money is this okay so basically they dedicate a soak with Hart general deposit to a particular pier now if you have to check contracts that refer to each other like I have a child book contract and I have an entry with her channel deposit to towards Fabian and Fabian has one for me for my checkbook contract and then basically these form two halves of a full payment channel and this this construction basically implements a proper payment channel I don't know if you guys heard this notion of payment channel the payment channel is exactly this construction usually it's it's it's implement with one particular contract that's that's that's that's taking care of the traffic between between two individuals in this case we we kind of simulate a payment channel functionality with with with with entries in in two checkbooks now the interesting interesting thing starts here actually can we have like five minute break because I'm a is that okay Justin just little bit cuz my my hands are really shaking I think I need to take some action thank you guys for bearing with me it's a bit of Intermezzo needed so so I skip the details of these deposits because me might return to that that's let's let's move on to this one so so what is this about we talked about checks so far and and and waivers but in fact the an extension of this whole checkbook contract can handle various the kind of instruments that basically Epsom under the name of promissory notes so promissory notes implement very two instruments for example basically loan requests like which I call bonds they implement authorizations like which are basically authorizations for recurring payments the implement what's going to be more interesting here is like conditional bonds and bounties so conditional bond is basically a bond like a promise for future payment that that is assigned to an escrow witness contract what does that mean it means that any future delivery of that of that service that you request is going to be judged or countersigned by this escrow witness con contract this contract is a simple solid DT contract which conforms to the to the generic witness ABI which means that if a contract is implements the witness abstract contract if it has a testimony function and the testimony function I mean it doesn't matter what kind of arguments it's called basically the witness is testifying whether you deliver the particular promised service or not yeah and and based on the based on the testimony of this witness you are entitled to a positive reward attached to that service request yeah so what what are we talking about here like what are the examples of such decentralized services well for example imagine a decentralized database service supply chain where you have like indexers and you have a you have a travel agency which issues kind of travel offers and you want a flight aggregation service which simply aggregates your your offers in an index so you you you you put up a conditional bond which is basically a service request that referred to a particular escrow that that can prove that that you did the work properly and and when when when the when the service is delivered the the person can can come for their for their money if the if the if the if the service was actually provided so so the conditional bond corresponds to a service task or service request and there's a variant of this like what I call the bounty the bounty is exactly like conditional bond the only difference is that it has no particular specified beneficiary it's just it's just kind of shout out in the air like whoever solves this problem will get we get bigger this bounty so it's not attached to a particular beneficiary the escrow contract might specify certain conditions or of who can fulfill this this this service request and who can be the deliverer but but it's not not necessarily the case it can be just the first person who ever satisfies this and also there's another type of conditional bond which is called the commitment welcoming Twenties itself like is the it's kind of related to swear so it's when it's when a service provider actually swears on the promises to comply with the with the rules of a game with the with the with a particular service contract for example in the case of like a fight fight segregation case we have an indexing service the promise of this indexing service is the following I serve your your primary data source and the data stream and I'm going to include like after you update your primary data source say say in the ether in name system ten blocks after that the index that I is going to contain all the items that you including the primary source if I make an omission or if I attribute a spurious entry to you or if I make a mistake in the in the representation then I stand to lose all my deposit so this this sound is how this kind of commitment can work and these are all can be combined from the same type of condition from the same kind of notes the note has particular field like beneficiary and amount serial number some validity date and and a remark field so it's actually quite quite you similar to check what kind of any kind of instrument which wishes does this this field and most importantly it has a reference to an escrow address in the case of conditional notes in the case of conditional note this escrow will will evaluate whether the whether the promise of the future service whether whether in the future that service was actually provided or not okay so far is the clear so far so so now now we turn to the to the service guarantees how you get it out so the first part is that you the service provider can can issue a commitment this commit can can be can be on a case-by-case basis it's like it can be just issued of chain and present it to the swear contract or it can be a long-term promise that hey I'm actually an indexer node and anytime you chug a task at me I'm going to just index your your things and you can just rely on it because I registered this this kind of service promise with a valid until date on the on the swear contract so you can think of the swear contract is basically a generic registry of of these commitments and you can think of it as as also and there's another aspect to think of it is as an app store which because the swear contract can actually be a kind of curated list of particular games that are that these games are basically the rule sets of services and and and you can issue your own swear contract which you know like contains only only references to the particular games that people checked at the end unless they're sensible so so you know it's kind of a bit of an external or in first quality quality control possibly there so so the the the sweater contract is a mapping from from from know the identities to to to games contracts so game contract is basically that a contract that describes all kinds of rules of the game and the game contract is is placed together with the with the swindle contract the swindle contract is basically the courtroom the judge that knows how to how to orchestrate a trial how to how to organize the stages of a litigation and how to ask the witnesses based on the resource data that you find in the game contract so what what are we talking about here in the case of a litigation for like if you're a terrible agents and you actually find that the flight aggregator indexer left out your offer and that's why you lost a lot of business you want to sue them then basically the the swindle contract we followed the rules of the game which we say that okay if you if you litigate in for for the case of oh me omitting a data entry then the first stage of litigation you have to present the the inclusion proof like a proof that in your original data source this this actually offer like offer of a flight from Budapest London was actually included okay so you provide that merger proof evidence to the witness contract and when the judge asks the testimony from the twitters contract then the witness contacted simply say yes this is a valid truth actually that data source really contained contain this software it and and the judge simply takes it and advances the the advanced is the the trial to the second stage which is which is requiring proof that that that same offer was not actually in the in the aggregate index so this was actually a proper omission and that's those ways to do that as well how to do have to provide certain inclusion proofs and worker proof to provide evidence that that something was omitted from an index I hope I don't have to go into the details of how to do that it's it's easy to do based on the fact that in an index things like am i rewarded if if they are correct so so you can just show the two sides and then see that that there's nothing in the middle so it was omitted so and what happens and if the judge finds that that the evidence also stands sense after scrutiny so the second stage witness is is also saying that that that evidence against the service provider this is valid then it advances the the trial stage to the verdict and says that yeah this guy is actually guilty and gives back the execution of the guilty verdict back to the swear contract which which actually goes back with it with an authorization not goes back to the swap contract which holds the opposite so the swap contract holds a deposit that you put up as a service provider against your against your promise for poor for compliance and if the swear contract is valid any executing the the the trusted verdict of the of the judge then basically it acts as an executor and confiscates your you deposit from the swap what actually the swap kind of gives it to you and and here here actually you can you can see this this generalization so the commitment as I said the commitment was it was just another promissory note a commitment is actually is actually nothing else but a type of conditional bond so it's a service request how can that be interpreted in real life it's a it's a it's basically service request because you request the the jurisdiction or like you request ecosystem to to to to to provide evidence that you didn't comply to your own rules and if they if they provide that service that they actually prove that then you give them the give them bounty of your deposit so you can interpret commitment and litigation and the verdict against you as a service request so it makes a lot of sense so so you see that like from very very very simple little ingredients like committee like these promissory notes and in a very generic judge contract and a very generic execution contract you can put together a very complex service economy where millions of nodes communicating each other in a peer-to-peer a and completely you know in a scalable fashion like the they will provide all kinds of services to each other like indexing like storing files and and I mean III deliberately mention examples which are kind of closed closed system examples but you can you can even imagine like real real life services to be part of this in those cases the escrow witness will be will be I don't know the mmm Amazon readers review you know I mean review score or whatever some something that goes out in the real world or maybe even a jewelry that actually votes using a Fabian identity thing they can be put together like as a the kind of voting body so what what you see here it looks like a bit of a decoration this is actually just just supposed to show you that that the swindle contract if you if you if you follow this idea of escrow witnesses and and stages of litigation then basically the the jury process the trial process can be represented as finance and finite state automaton where the weather where the state of the automaton are are basically the the stages of litigation and the transition labels are are based on the outcomes of the of the testimonies of the actual witnesses and so so the as the swing to the contract what a judge sitting in the swindle contract the the imaginary judge and as it as it goes through the test the testifying witnesses and and ask for their opinion about certain evidences they it it basically advances the trial in in in certain stages the start trial is the starting stage of the trial is D is the accusation like choosing what what kind of aspect of the of the ruleset was not complied with and the end and state of the of the final state automaton is a is a is a do not guilty verdict III depicted the not guilty verdict with green and the guilty verdict with with with red so this is basically the and and the beauty of this is that is this is composed of like very very abstract and very very simply simple and well understood schemes so you can you can think of this whole framework as like building up like complex things from from little LEGO pieces the reasoning about which are relatively easier and and therefore hopefully provides less error-prone implementations so next I'm going to talk about the most important thing the extension of this of these services to proper networks so what are we talking about it so so far we talked about peer-to-peer interaction and possibility to to use the blockchain as a tool for service guarantees but the interaction is is itself was like peer-to-peer however as in as in as in you might have heard with advanced payment channel implementations like Raiden or or even if you take the bitcoins lightining network you know that the interesting at when when you can actually compose payment channels into a internet work what's the what's the what's the benefit of doing that well in in swarm the the swarm network the peer-to-peer interaction happens with the with the limited peer set based on because it's based on a semi-permanent like constant connections with with with your peers so I typically interact with let's say a small number of peers like Fabian and and Julian these are these are my peers and the whole idea of so so the reason why this payment is the instruments like the checkbook and and the payment channel works is based on the fact that we have we have repeated deal with each other we have we have a constant traffic because we constantly deal with like new business with each other and therefore because they are recurring I can I can accumulate checks and like cash them in back however this is very limited because typically what I want to do is like I go to a sandwich shop in Southampton and I want to interact and do like business with with that person probably wants well you won't see my whole life and and this person is not my peer first of all and I certainly not expecting to do repeated dealings with you so when you when you channel when you compose payment channels into a network this is exactly this problem that it solves it extends the capabilities of the of the system to from from repeated dealings with with a small number of peers to to ad hoc one of interactions with any two nodes between any two nodes so this is actually what what what what what the network does so so what what we're talking about here is that you see on this on this diagram ABCD which are each of them are are like you're connected with with so a connected to B be connected to C Sigma C to D in in in this sense of having a picture or having a swap channel between them which which is about repeated dealings and and and and the stable connection but in this case a want to interact with D for example they want to send the payment simply simply want to send the payment because they they walked into the southampton sandwich shop and i want to buy a sandwich and that's that's that's what they want to do and in this case what happens is simply yeah it's simply this the sequence diagram so basically a a will issue a conditional bond yeah I paid you if you give me that sandwich or which is not the best example but like just imagine like you have a conditional bond that a issues to be be big that we can take it over because because they have you have guarantees that if if the if the if the if the service is not provided then of course you don't have to pay for it so they can they can just you can just have like sequence of local peer-to-peer interactions and I composed them into a in direct transaction between a TA and B and if you if you if the if the service is such that you need some sort of receipt beforehand before the actual delivery happens then then that can be done as well so it's it's basically similar to then the the there's a post an analogy to this is like certified delivery so we basically get get notification backed way that that yes your offer was was was accepted or something like this so so basically once again like if you compose this payment and then check like swap channel solutions to a network then you get an extension in terms of frequency and reach so you have like a very very robust of chain scalable solution the only assumption that you need to make easier is that is that the the the network of nodes has certain graph properties basically you have to make sure that from any node 20 node you guaranteed to have a root so you guaranteed to in the graph that that need no disconnected you know you know in a healthy fashion so there's always a way that I can reach the the Southampton sandwich shop through starting from from my from my known peers and and n connections and and I mean you know in a small constant number of steps yeah I can I can do that now I don't want to go into too much detail detail here but this is an interesting problem here which which relates to the fact that it's not only necessarily just route that that's needed the likely guaranteed route but actually just imagine if I if I if I if I want to buy a sandwich that's like five Easter but but in but the link between B and C doesn't allow them to to allocate five easier to actually buy that condition want from me is this is this kind of clear so there's kind of a throughput restriction in on these channels so so the guide that does simply doesn't have a [Music] the deposit like collateral in the channel that allows them to to kind of in advance they take that conditional bond and and we basically sell it to see and and and the one one interesting solution to this program is like to have a way to allocate certain deposits to various various channels so between peers without actually touching the blockchain so so because we mentioned that like per user guarantees can be can be done with with the setting a hard hard channel deposit so basically it's like a like a payment channel you put a deposit up on the blockchain which would give you some some leeway so your your counterparty know is that that you have the thousand liter locked up there and that quality arises for example this conditional bonds that you that you take over from a peer but what happens if suddenly the opportunity presents itself that like hey this guy wants to wants to actually send like $100,000 all right I don't know that's just a silly example like when one wants to do some like really good business and I have the opportunity to take quite quite a nice transaction fee for it but actually I don't have don't have the money in the payment sure so so the so the so the next relaying node like C won't won't won't actually take that note from me because I can't promise them that I be a be solvent when when they give back the so they actually takes care take care of the delivery of the of the of the prop of the of the service request but actually I will not be able to pay because I go insolvent by them so what was the solution for this and there's a neat interesting construct which is called soft channel deposit which allows allows you to to kind of dynamically reallocate resources between between various peers in your checkbook contract without actually touching the blockchain how this works is a bit beyond the scope of this of this talk but what they just just one hint that it's based on the idea that basically you have to do an agreement with all the peers in the chat book and and kind of so if if I if I promise to Fabian that hey I allocate actually so so please Fabian take my condition or nobody because I promise to you that I allocate $200 to our channel then then Fabian only believes me if he actually gets a note from Julian saying that okay Julian Julian doesn't want that that the two hundred pounds that the two hundred Eva that's in in the in the checkbook and it kind of counter signs so they kind of agree how are we gonna allocate these resources and the interesting problem is that is that this is this this kind of consensus only works really if you can make sure that the that the that the allocation table so the allocation table that I I in this case is unique so the problem can be reduced to two prove prove the uniqueness of the of the resource allocation table and then and then the peers can counter sign it and then they can be happy that they can be absolutely hundred percent certain that that that I be solvent by the time the the conditional note the conditional bond matures and the delivery take takes place is this a little bit more cryptic than before right I think it's a little bit more difficult but so the idea is that that there is a construction by which you can more flexibly reallocate resources from channel to channel without touching the blockchain and the and the the the the the effect of that is that you can mitigate the throughput restriction problems in instructional networks so so if they're suddenly like more resources needed between two to two peers because they because they are on the owner route for like a lucrative transaction then they basically can can quickly reallocate resources from other peers that they that are not using those resources at the moment so this kind of hopefully solves problems or make them a little bit better so once you have this swap channel networks you can define interesting other other constructs from them for example you can you can you can have like you can chain together certain conditional bonds which are which correspond to like a task which is a complex task like like a pipeline that like I I had certain things to the food to the service and and and and send the send the resulting the resulting product to someone who had some some other value-added service so you can basically chain change the condition of bonds together in a protocol which defines a supply chain of some complex product or you can you can define the the famous atomic swap which atomic swab asically means that that for example you you want to do an exchange of like $300 for an ether and you put up a bounty that like hey I put up here's here's $300 please give me the best best deal that that you can and if I accept that the deal then then the whole the whole transaction goes through the whole point is that my $300 I only want the $300 to be actually transferred if I if I accepted the offer and I get and I can be hundred percent sure that I get that one either back so it's like that's why it's called a tonic soft because it sitting in one atomic move the the whole transaction either happens in its entirety or doesn't happen in its 9:30 like that's it's it's it's that construct and interestingly we do the escrow conditions atomic swap can be defined as a the kind of I mean as a kind of logical and operator basically over the over the over the the escrow conditions so so when I send the conditional point for my for my $300 basically the the the condition will be that you send me back another conditional bond another offer and plus it has to be true that that the boss has to both has to has to happen in order for the for the final transfer to be released or the final transfer to happen and and so examples of this kind of complex constructions can be like for example the crash proof of custody for storage insurance that we that we used for to incentivize preservation of files in swarm so this is basically the storage insurance I was talking about this is gonna use a kind of proof of custody construct but what is proof of custody it's a proof of custody the cryptographic construct that somehow makes sure that you have it somehow proof that you have a piece of data at a particular time in a way improve that in a way which doesn't require you actually retrieving your whole file so it's somehow somehow you you you put up a challenge that you that that that proves in a compact way that that you saw a piece that you store a piece of data without you having to retrieve it and the crash proof of custody is an interesting it's like a structure that optimizes the to put together a proof of custody like proof for example an entire website like Wikipedia so it defines the call it defines the protocol that that comes up with with an initial input and the output is just a single hash and that single hash proves that the swarm in its in its in the whole network of swarm as such actually does contain and and preserved the entirety of Wikipedia with every page and every chunk of every page and and that it's kind of cool construct because it it it's it's it can be it can be shown that it's really optimal in terms of of network traffic or like bandwidth consumption and and that can be implemented as basically a competitive bounty over like this this is combined conditional bounties I hope that it's kind of more or less clear and and other examples that kind of database in sir where you can outsource the the insertion into a database so you don't have to to calculate the new index for example when you insert an item but you just just throw the new item at the the store annot that holds the root key the root hash of the of the old index and they somehow take take care of recursively organizing how had the nodes are added to the to the database that's distributed it's stored in a distributed way in swarm and the other examples I like mailbox or chat history or like persistent facebook comments or something like this and these services can also be implemented with this idea it's a little bit hand-wavy of admittedly so obviously without without me providing you the the former code or working conditionally to be ten gravy and I I admit that so this is at this stage this this kind of research so that's about it I mean we can go into details if you want to ask questions then with pointing you to ways to interact with us we have we have just started the collaboration with various external entities and the foundation members as well in in one on five sub projects we have five working groups but one of them works on this on the swab strands in the framework so we already started implementing the there's the smart contracts for for this and also they of chain interactions and you can visit the Gator channel for for for swarm you can you get the home or at home page for the orange papers and research papers that you wrote and you can follow us on on on on Twitter thank you very much okay I have a question in Victor so basically are you working together with Braden because this is very similar right today similar the basics implementation is very similar yeah it's very similar I always invite them that if they haven't showed up yet but but yeah it's very similar so basically what I talked about this the main menu when you have the pre mention and implementation with this I mean these checkbook contracts and you if you put them in a in a network setting that's basically you get lightining network I mean that's lightning or or that it's basically the same thing the only the only difference which is like I have to admit if you if you that these advanced payment channel networks they they actually include implementations of atomic swap so without without actually implementing the atomic swap in the in the escrow condition like I can't really say that they are they have the same level of functionality so so only together with the atomic swapping and it escrow conditions can I say that they they they are known the pirate with the which play the network work or like me yeah it sounds like the accounting protocol goes way beyond just supporting file storage which is still what I thought this war was all about didi village that whole network of promissory notes being required to run the file storage network or do you think actually in practice the initial file storage network will only require yeah I think as a subset would be enough just for just for the storage just just for the storage what it would be would be enough the subset but these are but but these different instruments are actually super easy to do we've learned so these are really just a few lines of additions maybe it's a bit exaggerated but like not a big deal to implement I mean the the the real promise of this whole thing is that the same generic network of like the swap network can run all kinds of services at the same time and and that has a lot of advantages because because you can pool your your your deposit resources for example over all kinds of tasks like not only the sandwich shop purchase which was kind of a joke but also like let's assume that you pay your Spotify decentralized Spotify license were like when you visit the Wall Street Journal and read and have a pay world and then you pay from from there or you pay for storage or you pay for or the database indexing that you do from from all the same networks so it's kind of that that's where the real gain happens when this if if it ever happens that it's kind of mass adopted to these services then when you have the you know the the benefit of amortization over over this you know various services so just imagine that you you ultimately keep and a tea at each time in at each point in time you basically keep 2030 max maximum 20 30 active peers and you deal with them and you you take care of all your payments that every that you ever needed and then hopefully scaling to like Visa Visa sized transaction volumes so with your litigation system does it allow for off chain litigation so rather than a smart contract deciding on a situation a traditional court for example and if so how will it pass the verdict back into the chain and treat it as a trusted resolution I mean we practically practically like so so the thing with these litigations is that most of the time unless it's alice is like this is the jury yard or voting body case actually you most most of the time the the participants know the outcome of the thing so you actually know whether you're guilty or not so most of the time you'll be better off just giving it up and say that okay I was guilty let's let's let's not burden me with even paying the extra transaction cost for for submitting the evidence that I already know the outcome oh so these these judges will actually be quite idle and most of the time they don't do anything because because everybody will know the outcome of the result so so so basically the answer to your question is that there's not much to do off of one chain anyway because of chain people can can already check with the smart contract so they're certain evidences check out or not maybe you can give examples when it's not the case because this might be some time you wouldn't really thought about that I would really appreciate if you walked through the example in detail sometime because then we might contribute some interesting ideas how to how to do it that even more scalable but in general the litigation itself would not be would not have too much volume so I mean here usually because of the deterministic nature of these things the normal operation would be compliance I mean that's that's that's the hope obviously because if there's too much non-compliance no one will use the system anyway so it's kind of a little bit pointless so this so doesn't so what I'm saying is that there's no real scalability issues related to the to the to the swindle under litigation yeah if you have a way to like run the smart contracts and it will come out with a certain outcome there's no incentive anymore to to even like make the profit in the first place you know it will be sometimes sometimes if your index and would learn maybe your hardware equipment just you know you know that's that again it can fare well maybe your pad disk then you just lose that chunk even even though you know you knew that if if it if it if you lose it you will be punished but of course in Alien Swarm there's a lot of redundancy so that that probably not gonna be real dangers to people that the harder hardware failure immediately leads to them being you know punished with using other stake but this is kind of just a side issue yeah point is correct I guess that's that's it thank you [Music] you you