This document provides an overview of decentralized applications and related concepts such as decentralized autonomous organizations, corporations, and smart contracts. It discusses how blockchain technology can provide a trustable public cloud infrastructure. Different components of decentralized applications and consensus are outlined, including application state, economics, governance and cryptoeconomics. New compensation models for software using crypto tokens are proposed. Examples of existing decentralized applications like Augur and Deckbound are briefly described. The document concludes by recapping distributed tools that can be used to build decentralized applications.

1. Module II: Decentralized Application 101
Tom | Koinify

2. Basic Concepts
• Decentralized Application
• Decentralized Autonomous Organization
• Decentralized Autonomous Corporation
• Smart Contract
• Secure Multi Party Computation
• On-chain code

3. What’re the differences?
Classic
distributed
app
Smart
Contract
DAC/DAO/
dApp
Smart
Corporation
Autonomous
decision rules
Value
Exchange
Dynamic
membership

4. Peer-to-peer
Economy
Blockchain
Technology
Cryptoeconomics

5. Blockchain:
a trustable public cloud infrastructure
Today Future
Client
Private
Cloud
Yesterday
Private
Cloud
Private
Cloud
Client
Blockchain:
Protocol, Identity &
Data
Client
Private Cloud
P2P Nodes

6. Human
service
dApp Services
Peer-to-peer
services
Computing
Service
Storage
Computation
Bandwidth
Resource
Redistribution
IoT (sensor etc.)
Immutable storage Insurance
DEX
Lottery
Prediction Markets
Lending
Derivatives
Digital Property
(e.g. domain)
Large scale
collaborations

7. dApp stack
Blockchain
Consensus Layer
Meta Layer / API
model & controller:
consensus-critical
View
model & controller:
regular
application
logic
API

8. Consensus components
• Shared application state: Proof of X
• Economics: distribution & incentive
• Membership / Access control
• Self Governance

9. Cryptoeconomics: A design pattern
• Encourages open & common protocol
• (Native) Crypto Token serves to:
• Secure network. Storing / processing data
• Incentivize developer as seigniorage
• Reward Content/App specific contribution
• Gamification
• Bootstrapping, Continuous Price discovery

10. Software as public goods

11. New compensation models
… means more public goods
• Classic corp models
• Product sales (Apple)
• Extra service (Redhat)
• Asymmetric monetization (Google
ads)
• Crypto models
• Seigniorage -> Dev
• Capital gain -> Dev/Token Holders
• Rewards -> Token holders
Limit & Control
Open involvement
minority … majority
majority … majority

12. - Data layer for blockchain: Federated + Auditing
nodes
- 1 min confirmation time + 10 min pegging to
master blockchain
- 2-class structure:
- Factoid: Mining rewards. Exchangeable.
Constant annual token inflation
- Entry credit: For recording data.

13. Deckbound
• First blockchain based trading card game
• Colorcoin-like tracking for cards
• https://www.youtube.com/watch?v=d_-
mxgUNiOM#t=27

14. Augur: P2P prediction
market
• “Google for the future”
• Weather insurance, election prediction, enterprise forecast, price discovery, funding public goods
• Sidechain + Ethereum
• 2-class structure
• Stable Coin: Stabilization via Seigniorage shares scheme.
• Reputation: Fixed supply. Non-fungible. Use it or lose it.
• Reputation allows nodes to vote on decision outcome.

15. Koinify: Marketplace for dApps

16. Recap:
the distributed toolkit
View (Web)
Notarization
Tokenization
Programmable
logic
File Storage
Eris
IPFS
Maidsafe
TahoeLFS
Factom
Counterparty
Storj
Ethereum
Codius
Blockchain
ZeroNet

17. Final Demo Days
• Finalize project proposal: Feb 14th
• Internal Demo day: Saturday Mar 7th
• Top Projects Public demo night: Tuesday Mar 10th
• signup at meetup.com/blockchainu
• Attendees: leading crypto startups and VC
• Must use one or more of the distributed toolkit:
filesystem, smart contract, notarization, tokenization, etc.