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HubCityDAO: Web3 Fundamentals
- 2. David Barreto Web3 Consultant Venezuelan - Canadian Lives in Toronto Bsc. Electronic Engineering Msc. Systems Engineering david-barreto.com @barretodavid LinkedIn Youtube
- 3. Blockchain
- 4. A Distributed System The Cloud Benefits: - High availability - High performance - Cheap Downside: - Central authority - You can be banned - They can delete or modify your data AWS AWS AWS AWS AWS AWS
- 5. A Distributed System The Blockchain Benefits: - High availability - Censorship resistant - Secure - Immutable Downside: - Slow - Expensive - Complex Bob Alice Mike David Olga Jake Learn more: https://david-barreto.com/bitcoin-explained-without-complicated-terms/
- 6. Types of Blockchain Single Purpose Multi-Purpose (smart contracts) Bitcoin ($600 billions)* Dogecoin ($11 billions)* Zcash ($1.3 billions)* Ethereum ($230 billions)* Polygon ($5 billions)* Solana ($15 billions)* * Market cap as of May 30th, 2022
- 7. NFTs
- 8. NFT = Non-Fungible Token Fungible Non-Fungible
- 9. An NFT is the Proof of Ownership of a Digital Asset
- 10. Asset Owner cat.jpg Bob dog.jpg Bob Bob’s Database Asset Owner cat.jpg Alice dog.jpg Bob Bob creates “NFTs” Bob sells “NFT” to Alice Asset Owner ant.jpg Alice dog.jpg Bob Bob scams Alice Asset Owner cat.jpg Alice dog.jpg Bob Bob stops paying to his database provider Asset Owner cat.jpg Hacker dog.jpg Hacker Hacker attacks Bob’s database The Risks of Regular Databases …and many more Learn more: https://david-barreto.com/the-hidden-risks-of-owning-an-nft/
- 11. if requestor is owner change ownership of NFT else reject transaction Smart contract Blockchain Transfer ownership of NFT to Alice Sure, you are the owner Bob Transfer ownership of NFT to Mike No, you are not the owner Bob Transfer ownership of NFT to Mike Sure, you are the owner Alice
- 12. Why is Proof of Ownership so Important? Learn more: https://david-barreto.com/whats-an-nft/
- 13. Examples of NFTs Images 3D Models Video Music Virtual Land ... BAYC $140,000 Axie Infinity $10,000 Decentraland $1,000,000 The Sandbox $20,000 Prices as of Feb 1st 2022
- 14. What defines the value of an NFT Collection? Symbol of Identity Originality Scarcity Community involvement Utility Reach
- 15. NFTs as Symbol of Identity NFT
- 16. DAOs
- 17. What is a DAO? Decentralized Autonomous Organization Organization native to the blockchain (web3) Implemented as a set of smart contracts Radically transparent & “democratic” Community coordination through tokens Different voting mechanisms and workflows Not legally recognized Ex: Balancer, Uniswap, Compound, HubCityDAO
- 18. Community Group of people that work together towards a particular goal Chat Room Place where ideas are discussed Voting Community reaches agreements Treasury Funds to make the communal goal a reality Building Blocks of a DAO [blockchain] [blockchain]
- 19. Virtual Land $50,000 Bob $5,000 Alice $35,000 Jim $10,000 DAO Treasury $1,000 : 1 token $5,000 5 tokens $35,000 35 tokens $10,000 10 tokens Should we buy Virtual Land A for $50,000? NO vote x5 YES vote x35 NO vote x10 Result: YES DAO Assets $50,000 5 tokens 10% treasury 35 tokens 70% treasury 10 tokens 20% treasury
- 20. Future Value $100,000 5 tokens 10% treasury 35 tokens 70% treasury 10 tokens 20% treasury Should we sell the Virtual Land for $100,000? YES vote x5 YES vote x35 YES vote x10 Result: YES DAO Treasury $2,000 : 1 token 5 tokens $10,000 35 tokens $70,000 10 tokens $20,000 $100,000
- 21. 1 Coin = 1 Vote = Positive: - Easy to implement - Another mechanism to raise funds Negative: - Plutocracy - Votes can be purchased = 1 Wallet = 1 Vote = Positive: - Easy to implement - Works well for closed community Negative: - Can be exploited in open community = 1 Human = 1 Vote = Positive: - Democracy - Suitable for open communities Negative: - Difficult to implement - Expensive to use
- 22. DAO Members trust me! treasury (normal wallet) DAO Members treasury (multi-sig wallet) 5/8 approvals required approved approved approved approved approved
- 23. Should we mint an NFT to raise funds? An NFT of what? What sell price? Which format? Should we put for sale an NFT of a gold mask for 2 ETH? Example Workflow
- 24. Sotheby’s to auction original copy of US constitution Idea of DAO to bid for the constitution as a joke 1 ETH = 1,000,000 $PEOPLE Raised $47 millions in 7 days Lost auction Refund & secondary market ConstitutionDAO
- 25. AssangeDAO Telegram group discusses DAO to buy NFT created by Pak UK to allow extradition of Julian Assange to the US 1 ETH = 1,000,000 $JUSTICE Won auction Money used to pay for Assange’s legal defense and PR campaings Raised $40 millions in 5 days
- 26. Governance Token $HUB Global Community Multi-sig Wallet (hubcitydao.eth) voting mechanism crowdfunding HubCityDAO
- 27. 1 $ETH 1,000,000 $HUB mary.eth 2 $ETH 2,000,000 $HUB company.eth 4 $ETH 4,000,000 $HUB dao.eth should we fund project X? YES YES NO YES: 5,000,000 $HUB NO: 2,000,000 $HUB Result: YES Governance-only Token
- 28. Gnosis Safe Leading multisig wallet Available on multiple blockchains Available as a web app, desktop and mobile app Gasless approval of transactions Integration with leading dapps Can be extended to be a full DAO
- 29. Aragon Client One stop solution for DAOs Available on Ethereum and Polygon Pre defined templates for quick DAO creation Integrated with multisig wallet Interaction with dapps through “Frame” Only available as a web app (no mobile app)
- 30. Juicebox Decentralized app (dapp) for crowd-funding Implemented as a set of smart contracts on Ethereum Used by ConstitutionDAO, AssangeDAO and HubCityDAO to raise funds Great for distributing governance tokens Tokens can have intrinsic value via “overflows” Ability to define “early bird” deal for contributors Integrates with Gnosis Safe via custom app
- 31. The Metaverse
- 32. Video Games Social Networks Online Video Games (ex. Fortnite) NFTs Current NFT Games (ex. Axie Infinity) Financial Services The Metaverse
- 33. X ”my” cars my friend gift/sell X Traditional Video Games
- 34. NFT friend gift/sell/rent ? NFT Games (The Metaverse) player defi
- 35. The Sandbox
- 37. netvrk
- 38. Mirandus
- 39. The End
Editor's Notes
- A single owner for all the nodes Multiple databases on each node Each node can store unique information Information can be replicated if needed
- The information stored on each server is the same Servers are always in sync The system can resist nodes going offline or rogue For the network to be secure at least 50% of nodes need to be “honest” Bitcoin has ~15k nodes (200 EH/s = 200x10^18 h/s) Ethereum has ~5k nodes (1 PH/s = 1x10^15 h/s) Bitcoin has 200.000 times the hash power of ETH
- Single purpose blockchains only allows the sending of its native coin to another user Multi purpose blockchains are programmable through smart contracts NFTs, DAOs and Multisig wallet can only be created on smart contract blockchains Ethereum is the most secure but it’s too expensive to use Solana was a rising star but has had technical problems and not enough developers Polygon is a solid alternative as it’s EVM compatible but cheaper
- Fungible - People take $1 coin from their pocket and put it on a table - Someone shuffles all the coins - People get to pick and keep one coin - No one cares if they are picking up someone else’s coin Non Fungible - Same experiment but with people’s phone - People will pick back their own phone even if same model and color
- A naive way to create an NFT is by setting up a database of owners Bob has full control over the database (read, write, delete) Bob as the creator of the NFTs is its first owner
- The smart contract doesn’t know if the transfer was a gift or a sale The current price of an NFT is not stored in the smart contract You can track all the previous owners of an NFT on chain You have to pay for “write” transactions Reading data is free
- You can “steal” an NFT by downloading its image to your computer The NFT is worth $140,000 while the copy of the image is worth $0 Both images look the same but an “expert” can tell apart the original from the copy If an expensive painting in a museum gets replace by a fake, would you notice it? Probably not An expert can tell apart the original from the fake even if they look the same for anyone else The original might be worth millions of dollars while the fake is worthless The story of the “Odalisque in Red Pants” by Henry Matisse
- Sotheby’s $PEOPLE token did not grant governance right 1 $PEOPLE = $0.02 (2 cents) 5 billion $PEOPLE in circulation Market Cap: $120 millions
- A Juicebox project is stored as an NFT Whoever owns the NFT has the right to change the project config Ideally this should be a multisig wallet controlled by on-chain governance Gnosis safe has an app for interacting with Juicebox Only when redeeming funds to the authorized wallets is when the 5% is withdrawn to JBX and governance tokens are given in exchange The current version of Juicebox is 1.1 but they are working on version 2 Version 2 is being audited On each funding cycle the project can use the overflow as part of their new funding target “No more than the funding cycle target can be distributed by the project in a single funding cycle” As funds arrive they can be withdrawn to the project’s wallet. No need to wait until the cycle ends The distribution of the funding cycle and the distribution of the reserve tokens can be independently defined and can be completely different wallets
- An example from a game I like: GTA V If I want to get a car I need to either spend a lot of time earning in-game currency or pay real money for it I can’t gift one of my cars to a friend or sell it to another player