OpenVino + Kleros: BioDigital Certification

Transcript

good morning everybody and thank you all for coming out this is uh my first time at scc and it's my favorite event really happy to be here this morning and my name is mike tango bravo and i'm going to talk to you about openvino and the latest evolution that we've done with openvino with cletus called biodigital certification just a little bit of background i've been working 30 years in an i.t in the web 2 space and made the really stupid idea of buying a piece of land in 2003 and planting a small vineyard in argentina and i say stupid because if you have no idea what you're doing it's a huge learning curve like so many other

things but quickly i realized that one of the interests that wine itself is a really interesting uh product from the perspective of thinking about things like tokenization you say well if i'm walking around scc and i'm seeing all these cool d5 projects and layer two projects and why do i care about wine and wine is a really interesting vector for doing a irl experience with uh with all the things that we're seeing here today so i'm gonna tell you what we're doing with openvino and how this all ties in so like i said i started producing wine and planting a vineyard in 2003 in argentina

starting producing in 2007 and very quickly realized that wine is so unique and is so apt for what we're talking about in in questions of tokenization real commodities because it's a product that has built-in scarcity so when you produce a vintage uh when you harvest grapes and make a new vintage you have a limited number of bottles that you're going to have from that year it's a highly regulated and controlled thing it's food it's alcohol and so uh it's not like i can go back and make more bottles of a 2018 without committing serious fraud so it has a built-in scarcity element to it has a very elastic price you know people pay

there's two dollar wines and there's twenty thousand dollar wines and everything in between something you don't see in in other like in beers and things like that you could have the best beer in the world and you're not going to have a hundred dollar beer right whereas people pay pretty much a high any kind of flexible amount for a bottle of wine and the third thing that makes wine really cool to do a project like this is that wine is a product that gets better over time until it doesn't right it has a really interesting curve whereas it could be some wines are good for two three years and some wines are good for a hundred years and everything in between right so you have this interesting curve where it

gets better and then it falls off you have this built-in scarcity and you have this huge elasticity and price and so that makes a really interesting element for tokenization and so in 2018 we started taking my production it's a winery called costa flores uh and we basically uh created a platform which is a front end um well now it was at that time it wasn't because it didn't exist but it's a front end for uniswell so essentially all we're doing is is doing a crowd sale issuing a number of tokens uh erc20 tokens that map to the number of bottles of wine from that harvest and putting on our platform called

openvino exchange and allowing people to buy sell and redeem tokens when the wine is ready to drink and so that's how we basically say let's use the market force it's basically a copy of the idea from unisox to to create a tokenization of wine but one is also really interesting in that it's one of the products that like so many products that we have today where there's an attestation there's some sort of thing some sort of claim that we see on the back bottle of the labels of bottles or pretty much any product you know is it organic is it for vegans is it a carbon neutral

all of these different claims that we have for products more and more today that's multiplied by 10 in the wine world because you're also describing a type of grape a wine maker a provenance a style all kinds of other things that these attestations are really what the wineries are trying to convey and there's a lot of fakery involved as well so the idea is how could we flip the existing certification system such that we give our consumers our buyers our drinkers the tools to validate actually what we're saying and also to eliminate or reduce the cost to the wineries to actually certify so how can we

enable a winery to self-certify their production that's what we're calling bio digital certification so this basically breaks down into three tiers we're doing tokenization of with a fungible token basically creating liquidity out of liquid i'll give you an example there's a winery that we're working with in the south of spain that actually has a stock of bottles that are 100 years old so that means they've been sitting on bottles for 100 years and are just now starting to sell them and reap some of the the benefits of that right the revenue so i said well let's just tokenize that they can stay in the winery until somebody's ready to burn them

and convert those tokens into bottles to drink and the idea here is not to create a collectible that nobody drinks and is sitting in a warehouse someplace a lot of other projects are doing that with nfts related to very specific bottles that's not what we're doing here i want people to drink the wine i just want to create a model for how can we generate liquidity out of this liquid the second has to do with traceability and here what we want to do is how can i capture the experience of the person that's actually sitting down and drinking right so right now the way that we describe the quality of the wine oftentimes is i send a bottle off to a critic in the wine world you have people you

know tim atkins and robert parker and the famous people that you send the bottle they have two tastes of it and say 95 points and go on with their day well that model is very flawed even though they are experts because it's anecdotal they're only trying one taste of one glass of one bottle of my wine they're not doing a whole meal with it and or over time describing it so how can we get to capture the experience of the actual person that's drinking over their their meal right um and then the last part has to do with the transparency question how can i certify or self-certify what we're doing with

production so let's look through each one of these things in the case of the tokenization essentially we harvest the grapes in the case of south america we're harvesting end of march early april um this takes a few weeks for fermentation afterwards so we've got a tank full of you know 10 000 liters of wine as soon as we know how many liters there are we can calculate the number of bottles and so we do a vintage coin offering where we basically issue an equivalent number of tokens to the number of bottles and put those onto our crowdsale uh with using um just issuing a smart contract minting erc20 tokens

and putting this up at sale for at a very low cost this runs in our case from the 6th of may to the 25th of july every year so we're just about to finish this week on the 22 harvest and then after the 25th of july it basically the a portion of the tokens go into a liquidity pool and anyone can continue buying tokens but they can also sell tokens they can farm their tokens and after three years in the case of my wine because the wine needs time in in a tank and a barrel and a bottle before it's ready to drink people can start to redeem those tokens for actual bottles in the moment that you decide to redeem

we see where the bottles are going to be shipped to we charge them in eath for their shipment and they receive their bottles and drink them or resell them in their shops or in their restaurants or whatever it might be right so this is the life cycle for tokenization of wine in the case of you drink it you own it how do i capture the user the drinker's experience we have a qr code on the back of the bottle and say okay big deal but it's a serialized qr code so every bottle has a different qr code and basically what we're doing here is allowing anybody that has the bottle to scan the qr code go to a site ask them some questions about themselves

ask them to take a selfie with a bottle and ask them five questions about their drinking experience so very invasive but if somebody decides to go through scan the bottle answer the questions take the selfie we issue one share of the company through a fiduciary trust right now we're using a traditional fiduciary trust to be able to issue a share they become part owners of the winery literally and they can mint this in experience as an nft so think of it as a pull-up of your drinking experience right not an nft that you're going to want to put on a secondary market and sell but basically they're saying i was in this party i had this event i was sad at home

drinking this is the picture i took this is the thing and this represents the share of the company i actually own a piece of a winery in argentina in our case so let's go straight to the transparency element then so right now what we're doing is collecting different types of data iot sensors in the vineyard that are actually riding on chain directly collecting temperature wind speed measuring soil moisture in different points of the vineyard um enabling uh workers to use a very simple app to say today we are pruning we're harvesting we're irrigating where whatever it is the job there's some 25 27

tasks that get repeated over the year in the vineyard in the winery so they actually register that and sign it with a private key and then other accounting data so what are we spending on the bottle on the label on the box on the cork shipment that sort of thing what is our cost structure for the wine so add all this together and we can publish this both on our site with hashes on ipfs within aggregating data onto uh and in fact onto mainnet so this information is there and this is the reference of what is happening in the winery in the vineyard now you're probably asking who cares about this information right why would anybody

care what the temperature was or what somebody did on thursday in the vineyard and the reason it's interesting is for what we're calling biodigital certification this is what we're doing with where essentially think about it this way today how does it work for an organic producer and when i say organic i mean vegan i mean carbon neutral natural wine biodynamic fair trade whatever the the qualification we want to talk about is so today the way it works is i have a organic vineyard in argentina i call my auditor my certifier they come to my house once a year sit down in my house

and drink coffee and they say hey mike did you spray any pesticides on your grapes this year and i say no i didn't and they said great could we see some receipts of stuff that you bought that doesn't include anything you're not supposed to buy so i sold them a bunch of receipts of stuff occasionally they'll say can we see a water sample or a soil sample but they're looking for things like ph and fertility of the soil they're not looking for a specific molecule like a glyphosate or some sort of pesticide right and they basically say great pes you're certified and we'll see you next year and it can be quite expensive right so the incentives are completely

misaligned as you can see because the certifier wants to give me the certification because the year that they say no this year we're not certifying you is it the year that they lose a perennial customer right so they're already saying yes uh if they saw something i wasn't doing correctly they'd probably overlook it and say okay just don't do that next year right the other thing is that the amount of effort that they spend is always going to be the minimum possible because every minute they spend with me doing more exhaustive uh auditing is uh is money they're losing right so that's the problem with the current certification system and you can apply this to any industry in all kinds of

different areas so what we're saying here with biodigital certification is basically three pillars one is what is organic so describe it in the 27 items that organic means and we're not inventing this this is based on eu standards u.s standards japanese standards basically saying this is what organic is here's our evidence and this evidence much of it or most of it maps to information that's been published on chain from these sensors cameras 360 camera work logs that kind of thing but the third step is basically for the winery to say and i'm going to create a challenger bounty with cledos so the winery will stake

five thousand euro or die or dollars or whatever it might be some substantial amount of money for 30 days and say i'm organic if anybody thinks i'm lying you can come stake uh two thousand dollars and submit your evidence and this will go to the clitoris jury and they can vote on that and go yeah this is true or it's not true so either i uh get my five thousand dollars back after a month and uh and a digital certificate it's basically saying uh that i am organic uh or i lose that so there's a lot of reputation cost there in in doing that but i actually want people to stake against me to challenge because i get a

portion of that staking right so this is how we can change a certification model right we're talking about regenerative web3 economics this is one way we can flip so that people that are actually doing the right thing they are sustainable they are carbon neutral they are organic it shouldn't cost them any money to do that so that's that's basically how we've integrated with clearos right now we've got all this running on testnet we're basically waiting for to finish the procedure with some other wineries got five wineries that we're starting

out this year in argentina um and a couple in spain and other places and basically going to give the next uh cycle though so 2022 2023 to make sure that the the friction between the real world and and tokenomics and doing our self-certification is worked out i mean the technically this is not that complex what's difficulty is sitting down with a winery and saying let's talk to your accounting apartment and your legal department and your supply chain and and your current certifiers and how are you doing these things and how can we change it to employ this model right so this is basically what is changing it's changing the way that we're selling

one the way we're certifying one and the way that we're determining both price and quality of one uh using these three tools of transparency tokenization and traceability i'll just give you a couple of the next steps that we're doing with this one is onboarding new wineries so we signed an agreement this year with a national wine board in argentina that model within we want to replicate in different wine regions of the world and basically say here's a tool for free for your wineries it's open source any winery can use it we'll add a provisioning tool so it's a front end to collect data about the winery about the token and this will feed things like how is this going to appear on the platform um

plum ethers can create the the different smart contracts for deployment both for the liquidity pools and for the uh the crowd sale uh create the qr codes and the information necessary to print the back label do all of this and one provisioning tool um but at the end of the day we're just minting tokens so we're not locking in a winery there's no custodial element to it they can receive their tokens and use them on any platform and it's quite powerful when you talk about the idea of turning a warehouse full of bottles into a currency of value that a winery can say okay now i can actually use this to pay marketers to pay

uh commissions on sales to pay part of my supply chain because i have my own currency that is tradable on on a dex behind it um so these are some of the things that we're looking into um also because we're talking about a 400 billion dollar industry that's spread across 80 000 plus wineries in the world this opens up a lot of really interesting things that if we're talking about putting sensors into different places how do we do real decentralization by creating a node we call a natural brick which is essentially a dap node with other facilities that we can put into each one of these wineries because right now like so many other projects this runs on a

web server and digital ocean we're using infera where we're not decentralized in that component in the web 2 area so but we can do that because of all these different players we just have to give them a device and distribute the web 3 layer on top of those so just one last thing i want to talk about to kind of explain as an example of how this also can be leveraged um for you know there's all this talk about solar punk uh regenerative cryptonomics and and whatnot we've created a project called form3.bio where essentially we're taking

harvesting the all of the biomass from the vineyard that's uh usually goes to waste so every year in the winter you trim back all the vines and you end up with a giant pile of sticks so we're shredding that inoculating it with a fungi with mycelium and creating mycelium packaging for this so that we can actually grow the boxes that the bottles get shipped in uh to the end customers so imagine you're buying your cabernet sauvignon from this winery and it comes in a box that is covered in sauvignon plus mycelium and it replaces all the styrofoam looks something like this these types different types of packages

now we want to enable wineries to be able to grow their own packages we don't want to rely we don't want to license this we don't want to become a packaging company um but how do you do that well you create an open source platform with some rules of engagement in a dao and say let's how can we provide uh the content on how to grow who's our provider of a proper spawn and whatnot for that and be able to enable people to grow their own replacement for plastic using bio digital certification as the mechanism right so one last thing we're doing an event this evening if you guys want to come out with cledos please join us about six pm we'll be

doing lots of wine and other things in an abandoned train station here in paris it should be fun so it'll be great if anyone come out just contact us and here's the contact information so our exchange is openvino.exchange and there's our telegram and twitter and all the good stuff so thank you all for coming i've got some some bags here for some swag and also i brought a bottle of wine we're going to pour some glasses so if you guys want maybe even somebody can help me i'm pouring if you guys want to have a glass of wine 10 in the morning that's a good way to start your your day so thank you so much any questions [Applause]

so because we're using really low cost open source iot the sensors you know for soil sensors uh weather sensors different types of things is is an insignificant cost so i'm talking about you know thousand dollars in in cheap hardware we're using lora which is a radio uh with a solar panel and different sandals to to basically channel to a gateway which is a raspberry pi that's with some other sensors and we're working with foam space i don't know if you guys know about foam space but foam space is a cool project out of brooklyn that basically allows you to triangulate with the low raw signal and say okay i know that sensor is

sending this data but i also know physically where the sensor is because i can triangulate it so i'm not relying on a self-reporting from a gps so the idea is that you know that the the the soil moisture and temperature and everything but you could also say and i know that it's exactly in this spot right but yeah it's it's a it's an insignificant amount of money um it's much cheaper than than existing uh sensors that are used in viticulture and those are usually cloud services that you subscribe to and you have a monthly fee and all of that sort of thing so yeah that's that's really not a thing at the end of the day what it costs a winery to do this to plumb all the services are gas fees that's about it

for deploying the contracts the ideas that make it as cheap as possible for any winery to do certification tokenization and traceability um and make it attractive enough that they want to go through our front end that will generate some transaction fees and other services that generates money for the platform but they're not locked into it well thank you all and have someone [Applause]