Once upon a time, there was one world called the Real World. Everybody knew how it works. Now, we are witnessing a new world emerging, the On-chain World. It has different rules and characteristics. But what is most fascinating is its increasing influence on the Real World. This tale explains the contrasts between these worlds regarding secrecy, identity and their mutual communication. It covers tokenization, DeFi and Oracles as the core elements of the new On-chain World. Are we seeing the end of the Real World as we know it? This tale might give an answer!

1. A Tale of Two Worlds:
Real World and On-chain World
Dejan Radic

2. Agenda
● Real World and On-chain World
● Communication
● Identity
● Tokenization
● Secrecy
● DeFi
● Conclusion

3. Real World and On-chain World
Asynchronous vs. synchronous
Tangible vs. digital assets
Legal vs. smart contracts
Opaque vs. transparent
Unpredictable vs. predictable
Opinion vs. data driven

4. Communication
● Transactions run the On-chain World
● Events influence the Real World
● Blockchain Oracles
● Source veracity

5. Identity
● Pseudonymity
● Compliance requires KYC
● Identity provider or registry
● Splitting the On-chain World
○ Regulated - known identity
○ Non-regulated - unknown identity

6. Tokenization
● Model or representation
● Important characteristics
● Ownership registry
● Customization
● RWA tokenization
● Token types
○ Fungible - ERC20
○ Non-fungible - ERC721

7. Secrecy
● Pseudonymity
● Deanonymization
● Confidentiality protection
● Blockchain types
● Privacy vs. transparency trade-off
● Forward secrecy

8. DeFi
● DeFi - Decentralized finance
● No central entity
● On-chain money management
● Public infrastructure
● Financial instruments
● Composability
● Transparency

9. Conclusion
● Difference between the Worlds
● Defined communication protocols
● Identity requirements splitting the On-
chain World
● Transaction, block, token!
● No secrecy by design
● Public infrastructure without central
entities enabling Decentralized
Finance

10. Questions?
Thank you!