The Loop Economy: A Universal Combinatorial Marketplace Without a Platform

Transcript

[music] >> Hi everyone. Uh my name is Peter Foldiak and I will talk about a new kind of market. Um universal combinatorial marketplace uh without a platform. I will explain what that means. Um so the problem is that Sorry? Closer? Okay. Um the problem is that uh existing internet commerce is really not very very good at all.

Um and I mean markets are important. Market lets strangers cooperate in a voluntary way. Uh it's an important part of individual freedoms. And um the existing methods basically two two kinds of things. One is having having little uh web shops or having these giant centralized uh uh trading platforms and uh and supermarkets like Amazon or eBay.

Um but both have their problems. So in one uh you have to search first, find them, then browse them. Each have slightly different methodology and then compare them. Um and just hope that the the time you invested will will pay off and you'll find a reasonable solution. You can never be sure that you found the best solution. Um the centralized ones um the problem is that uh they they take a cut. So they take their fees, they decide the ranking and they can remove you if they don't like you for some reason.

So what I'm proposing is uh describe what need and describe what you're offering, what you give, instead of searching. Uh it's universal in the sense that anything you can put anything on this market that you can describe exactly and there will be tools to help you make those descriptions. Combinatorial in in the sense that doesn't exist at the moment anywhere else.

It combines offers by other people to meet a particular need. And permissionless in the sense that every keeper, every maker puts their offers on a permissionless server called Swarm. You may have heard about it. And there's no platform, no protocol, no fee. And nobody can delist you. Okay. So what does an offer look like?

You see that that all offers are of a standard format. So the first the the maker, what it is that you're offering and that you will get some help there. I will talk about that later. Where you're offering, when you're offering, what is your price on your own scale? And possibly even some guarantees or deposits, bonds that you attach to your offer. And an arbitrator who who decides any disputes and a standard ID number which never changes. It's a canonical form.

Um so the the Am I have am I already? Okay. So the simplest loop very it's just a toy example. Alice offers apples, Bob offers a ride to the airport, and each have exchange rates. The loop is worth doing. There's a surplus if the product of these these ratios is higher than one.

Slightly more complicated loop that goes beyond barter is is when you have larger loops. So it's it's a more complex offer that consists of of of several links. And as you see in this example, it can include traditional money or crypto as well. When you have a large graph containing all these offers, then there are search algorithms that can find the cycles that are worth committing to.

So Onto Doug helps you describe what you're offering. It's a category system and it's basically where the catalog lives. You put your items in this system. It has a directed acyclic graph, DAG structure because human categories are not structured as a tree, but they're structured more generally as as a graph. It can handle space, it can handle time.

Actually, I could talk about this for hours. So and there are some standard packs, some libraries of existing concepts that you can use to describe what you want. A swarm is a distributed server. The important properties here is content addressing, so it's kind of a functional database. It has feeds with mutable um posted you you fund your storage with postage stamps and there are thousands of independent nodes and

encryption and access control is also possible even for dynamic websites so how does Loop Market use this well the offer is a hash your order book is a hash and each maker put their order book as a as a feed on the system the maker pays only for their own books so they you pay for your own the storage of your own offers and I have to move on

so this is the most important slide first there's the offer the maker signs it and writes in their writes it in their own books in the form of a swarm feed the book is announced once on the blockchain so anyone watching the blockchain knows about all the books a a solver which may be an external basically anyone it can be a like a specialist folds these books and finds the best loops and proposes

proposes loops then clearing is done by clearing is is done by a smart contract and there's a sealed bid so there's a challenge period where if if the the the offer is not okay then it's it's like an optimistic roll up and then finally settlement happens in the real world. And if something goes wrong, then there's a dispute mechanism. Uh, okay. So where it stands, it's not quite ready yet. But you you see and okay, I think my time is up and

at 11:30 in about 20 minutes, I'll be at the agentic hub talking more detail about this. Thank you. >> [music]