Auctions, coins and security

Transcript

yo yo yo guys how are you for those of you that do not know me my name is gonzalo i'm one of the co-founders of the consensus diligence team uh and i've been hacking away at web3 for the past 5 plus years for those of you that do know me you might be surprised to know that i will not be talking a lot about security today but i have some cool stories some cool things to tell you and some cool news from the from the diligence team so we'll target auctions first you saw the

title it's auctions coins and security and i'll talk to you a bit about the history of auctions um the one of the first documented um auctions like or the the customary auction in the world was done by the romans it's called subhaja and um with the spoils of war after a battle um soldiers would put spears around the spoils of war so that when um when the land was taken those assets would be auctioned off and they did this because this was a very efficient way

to do price discovery for the spoils of war right they knew that they were not leaving any money on the table fast forward a few years uh into panic panic is a city 50 uh kilometers north of lisbon and this is the the auction hall in benicious port what is happening right here is is an auction it's a it's an auction of fish that were caught this day um portugal and like fish auctions in portugal are are really really

uh brilliant and like in my opinion example of how efficient auctions can be uh a fun fact about this is that like in portugal all fresh catch like all like near shore fresh sketch actually needs to be auctioned off they will not repossess your boat for a lot of things in portugal for example if i was caught smuggling drugs in my boat uh my boat would not get repossessed but if i'm caught selling fish directly to a restaurant they will keep my boat so it's a it's a far worse crime

to not go through the auction docks than to smuggle drugs um also another good uh property of the things that that happened with with fake fish auctions in portugal is that these people that are right here this is a selected crowd so um the the the the the auction is kind of permission if you will uh and the reason for that is because uh they don't want brokers in those auctions they they don't want a middleman uh to artificially increase the prices of fish

and and just like profit off of the work of the people actually doing the work actually catching the fish um [Music] this is what it looks like dokapech is actually the entity that runs the fish panic auctions one of 22 ports in portugal that are allowed to to auction off a near shore fresh catch and the way it works is that the conveyor belt brings out um a box of fish and for those of you that do know what a dutch auction is that's exactly what happens for those of you that do not know what a dutch

auction is like the box will come out people will have remotes like this when they're sitting in the auction hall and one box of a specific type of fish will come out and the price will scroll down until someone clicks it until someone clicks their remote which signals to the auctioneer that they will pay the that price that is on the tv for that one box the auctioneer then sells asks the crowd if anyone else wants the rest of the is at the same price and if there are no takers the dutch auction proceeds it continues another really really really cool thing about the way this entire system works

is that the two percent of the proceeds of the fish auctions are actually used to pay for the auction itself but also for the infrastructure of the ports public goods yay [Laughter] so it's it's actually kind of a forceful way to to have fishermen contribute to the to the to the entire uh country's infrastructure that they end up utilizing right um [Music] so yeah like it really works this really works in portugal it has been working for a lot of years [Music]

um now on to chapter two coins i could talk to you about what this is a rhiestone or a face tone and um and how it was one of the first tokens um uh that that signaled uh like a store of value and how we'd created monetary efficiency and how we'd allowed people not to trade uh chickens directly for turnips for example right uh but you probably heard this a lot in 2017 and we're not icoing anymore so i won't bother you with this we just all can't believe the like tokens are a

great way for us to exchange value for value to exchange hands in a very very very efficient manner right and this brings me to the last chapter which is security how are we tying all of this together you may ask uh it's a really good question so moody i know murid is gonna talk right after me and i did not ask for permission to post this here uh this is a this is a message from a few months ago um in the east security telegram and uh we were talking about

exactly about this so auditors should consider tokenizing their weekly availability every transfer should incur a flat cost in ether or a stablecoin the token must ensure this um they should also add another book to allow buyers to meet sellers sounds fair up until now all fish auctions you know um the taker should pay the flat cost to settle the order and the order book platform can add an additional percentage based fee public goods right at the end do you see how muddy just described fish auctions in march and this is exactly what

we built so turn is our answer to modit and to a bunch of other people in the security sphere uh in web3 uh right now it is not yet ready super super ready for lunch but it will be in days this time um in what is turn you might ask turn is first and foremost a dutch auction so just think fish auctions all along but like what we will be selling is security is is audit slots so um the term platform will will will

behave the exact same way as the as the as the auction hall that i was just talking to you about uh in panish there'll be a dutch auction you'll have a starting price you'll have an ending price and people will be able to beat exactly the same way not with remotes but like sitting at home at their computers sending transactions to the blockchain turn is also a semi-fungible token which means that it's not really an nft it's not real really an erc20 it's something in the middle uh it will be fungible for determined periods of time meaning that uh my

my service slot so if i'm providing a service to you and i have a certain amount of units of time let's say weeks uh if i have eight weeks to provide services to you uh during those eight weeks time is kind of fungible for me but it might not be the next quarter right hence the see my fungible token as in uh during like prolonged periods of time you'll have a fungible token that represents single time units that live inside there um and it's a complete of fonts [Music] the idea is that turn will be open uh to all kinds of services

um but we're starting with security obviously because that's what we do we're solving our own problem and if someone else has that same problem they're more than welcome to use the platform but but the idea is that again it'll behave the exact same way as the fish auctions that i was just telling you about like there will be a platform fee that should and will be used um to advance the the ecosystem at large like obviously this will this will this will have to be through verticals for us the the one that is the the most interesting use cases is security obviously um but think about it like if there are a lot of designers

selling their services on a platform such as this and i i'm not aware of like any probably good funding that needs to happen in the design space but i'm sure there's something uh their their platform fee would would actually contribute to building such tools that that benefit all designers uh and again like forceful contributions and that's it guys um that's about it you can [Music] you can reach out to me twitter email website anything no questions

i love you guys very much have a good day [Applause] is there a system of reputation for the auditors that you will be displaying on your platform great question so there there is a commentary built in we do not have a reputation system we should have that's a later problem okay we'll we'll definitely solve that but yeah it's i would say that it's very much required for something like this to be successful again in the beginning this is will not be an

open platform so like we're just testing it out reputation is not as important from the get-go because like we'll be the sole users for a little bit while we experiment afterwards absolutely for something like this to exist in your reputation systems thank you so kind of just checking if i'm understanding correctly these tokens are you selling an audit and let's say i want i'm willing to pay 50 000 a week for an audit i buy the token for 50 000 a week someone's willing to pay 70 000 a week so they have an offer for me

they pay me 70 000. the 20 extra thousand goes to me or to you um so again very good question um yeah you're what you're selling is not a audit what you're selling is a time unit hence the name turn like it's a terrible acronym that i came up with is like a diamond equivocal representation it doesn't matter terrible name but uh but it's a time unit so what we're selling each token again like semi-fungible within a period of time it represents a week of work right right a week or whatever i want it to be whatever i define it to be like that part is social consensus right because i will be providing the work after all and so if i say it's a week it's a week if i say

it's an hour it's an hour um and so you'll buy off off of me the amount of tokens that you need for us to successively uh complete the audit you are able to resell those tokens because they behave as nfts so you're able to sell them off on openc let's say they do have royalties built in which is customizable by the the the seller basically right so you can you can say that you're taking a zero percent royalty fee and just let people trade freely and like probably leave it up to scalpers to to raise your prices um

but uh but you can also have like a 50 royalty i don't know like it's up to you it's basically up to the seller that is all customizable this actually reminds me um that there's another thing came up to me about the the the transfer um all all of all of this is obviously again as i said like social consensus and so all of this needs a little bit of kyc right like the the like when at the moment of redemption so when i'm about to do the work the token has uh has code has a built-in mechanism to lock transfers one week or again customizable time

frame but like in our example use case one week leading up to the moment of redemption to the to the moment of that you that you start servicing your customer the transfers are locked so that like it actually allows you to go talk to your customer because again like social content you actually need to provide the service and so the transfers are locked so that it so that it create doesn't create organizational hell you know uh and it doesn't put too much pressure on you thanks that makes sense and the time frame would be kind of the minimum amount you're comfortable with to spend with the protocol in order to understand and do good work exactly yeah yeah yeah that's great

thank you so much so so the the the time unit is the minimum that we feel comfortable providing services at you know but like the the amount of tokens that you would buy definitely up like definitely isolated cases like on a case-by-case basis people would need to buy more or less depending on on the amount of code that they're talking about in the case they're really complex protocol only bought like one week's worth of um tokens definitely the i mean you can do that and again all of this is social consensus this is the the idea here is for us to streamline the organizational process of like booking and selling and doing all of that obviously we'll still talk to people and if you if you make

such a choice we'll probably know like we're it's not like we're selling a lot of these right like we don't have infinite time so like we'll probably know who you are we'll come up to you and say hey like this is not okay you know one week is not enough so um you should either buy more or resell it thank you guys [Applause] you