…and now let’s get to it. The objective I had in mind with Mubiz was to start from what we already have, a decentralized currency in Bitcoin, and see how we could build a decentralized economy from the payment process to the actual sale of products between individuals. I happen to be the Founder of Mubiz, a business that will, one day, surely be big but we’re still at the very beginning of it all. We’ve built our platform on this cryptocurrency (PART), and you’ll see why later on during the presentation. We feel there is something special about it that others don’t have and that it may help making a decentralized economy a reality. First off, I’ll go ahead and ask a question that Lina didn’t ask earlier. Who, here, is a developer? That way I know if I can be a bit more technical about the presentation. Ok thanks, about half the room. Who here has ever made a cryptocurrency payment or holds some? Of course, not asking about specifics to keep things private. Thanks, so about 2/3rd of the people here. Alright, let’s get started. So let’s start from the beginning with the economy as we know it. We used to have three types of agreements. And I’m talking about the 90’s here. The first one was a tacit agreement between the State and its citizens where the state would offer services in exchange for taxes. This type of deal includes currencies, education, defense services, and many other things. Then, we have a second type of deal which, this time, isn’t tacit at all but very official. It’s the work contract. We work for a company, and we get paid in return. The third one is when we, as buyers, make payments for products and services to another person. That’s how the economy was in the 90’s. It started getting disrupted with the arrival of web companies in around the year 2,000. The brought with them a new type of agreement where your data is worth money. You are the product and the end user at the same time. You don’t need to pay anymore but they’ll use your data. This new type of deal made us realize that we had value through our data and that it could be monetized. It’s a quick shortcut, but it’s a new, fourth type of agreement. At the same time, a new type of deal was growing in popularity: the open agreement. Open agreements imply that if somebody creates something, everyone can benefit from it as they please. We didn’t have that before projects like Linux It was the first time we had pieces of code distributed and available to everyone and that each time someone made a contribution to it, it would grow and progress. And it grew a lot, like we all know here. It’s part of the internet which can be considered open. We saw cryptocurrencies be born, things like OpenStreetMap, Wikipedia, and so on. Nowadays, almost every industry has its own open solution that offers most of the services. This progress just keeps on going and growing. We recently had, with cryptocurrencies, an additional layer on the management and ownership side of things. Blockchain technology, as a whole, enables a lot of possibilities in all sectors and industries. And so, on top of these open pieces of code, we have AI and marketing teams. There are a lot of people working on these projects, and each person’s contribution benefits the whole network through cumulative and collaborative improvements. This isn’t unlike traditional businesses, just in a more open fashion. If you understood what I just said, my hat’s off to you! So all in all, every time there’s a contribution made to an open project, everyone will be able to benefit from it. As a user, you then ask yourself: “What type of service should I use?” If I know a company well, and an open project offers the same services as the company I know, why would I choose an open system over a centralized system? For example, the company Encyclopedia doesn’t necessarily have its best days ahead of it and had to reinvents itself completely. That’s a good example of a business that has had its business model almost completely disappear because of the arrival of an open system like Wikipedia. There’s a lot of companies like this that have seen their activity be reduced by a lot. The user is faced with three options. The first one is the traditional business model. The State allows companies to operate and ensures a stable environment to the users, as established within the law, where disputes can be easily resolved. Classic examples for this are payment processors, currencies, law firms, taxis, and etc. There are countless types of activity based on this business model and it’s been that way for centuries. It’s a classic model that everybody have known for a very long time. The second model has been nicknamed the uberization although I would probably call it the paypalization since they did it before. It’s the intermediary model where a company connects two entities so that one can provide services to the other. The company will use its ability to connect entities, like a driver and a passenger in the case of Uber. It then uses its position to dictate its own rules and forces parties to trust them in order to obtain services. This already causes friction with the first business model. As you know, there’s a lot of information on the subject here in France. And so Bitcoin comes out with a third model. Instead of a company acting as an intermediary, it uses a network that lets users connect directly with each others. In previous models, we had a lot of delays, fees, intermediary steps, constraints, and regulations. But we also had a lot of guarantees. Even though we might not know about certain services like finance, companies with expertise in the domain are always there to provide these services. And here we have the opposite. Here there is a need to be independent and competent. We need to figure out how it all works. Once we figure it out, though, we can benefit from many services without requiring a company. So again, the user asks himself, “Should I use a decentralized system over one with intermediaries?” “What do I stand to gain?” “What’s the difference between using my bank card as opposed to Bitcoin?” And I’m talking about Bitcoin here, but the same is true for eCommerce, as you’ve already seen with Lina. We have an ecosystem that relies on intermediaries, and we’re used to it. That’s why we might wonder: “What do I gain from not having to deal with these intermediaries anymore?”. Doing so enables a greater speed of settlements and the elimination of fees which makes us save money. It also keeps our private data private by putting us in charge of managing it without having to share it to a company. This is also an independent system so everything comes at our own risks. To use it, you will need technical skills It can’t really be done without having some basic technical knowledge. So here we have half the room that are developers. Who among you have ever installed an email system? Who has ever done its own email system? So you see, we had half the room as developers and only two of you have ever set up an email server. This goes to show that even when you’re a developer, you’re still relying on some third-party to get services. There is, of course, always pros and cons between types of services. For example, if we compare the postal service and emails, there will be functionalities we’ll find on one side and not on the other. Now what about the world of business? What if we take all the general theories on intermediaries and apply it to eCommerce. How can we decentralize eCommerce? The first people tried this asked themselves: “Why not just take Bitcoin? No need to reinvent the wheel…” They are the guys over at OpenBazaar. They wanted to build for the decentralized payment system, Bitcoin, a decentralized eCommerce system. So they took the BitTorrent model, which enables two persons to share files without intermediaries, but instead of sharing files, it would enable products and services to be provided without intermediaries. Simply put, they took BitTorrent and adapted it for eCommerce. For payments, they simply used Bitcoin. They merged the two technologies, added a user interface, and OpenBazaar was born. Of course, it’s a simplified explanation of OpenBazaa,r but that’s what it is in essence. As you know, we’re here today for Particl, not OpenBazaar. That’s probably because OpenBazaar isn’t perfect and there are aspects of it that, in retrospective, could be improved. So OpenBazaar asked themselves three questions. First one, what will the escrow system be, or how will we force the vendor to actually ship the product? In fact, when two strangers make transactions across the world, they need to keep their end of the deal. The second question is: how will we be able to scale this platform accordingly and make it efficient? The last question is what will be the payment options, what currencies to use and what network. As for the escrow, they opted to use moderators. In practice, this results in the buyer being able to choose a transaction moderator proposed by the vendor. To be clear, the vendor chooses moderators and the buyer chooses which one it wants to use to go ahead with the transaction. Got another question for you guys! Who here has ever used OpenBazaar? Ah I see, just as much as people who’ve set up email servers. Thanks! OpenBazaar eventually decided to expand the number of crypto payment options. They realized that probably that only one cryptocurrency wasn’t enough. From a data standpoint, they went for the simplest option available at the time which is the broadcast model. That means when you put a product up for sale it’s broadcast on the whole network. That’s quite heavy, especially when doing searches as the platform has to look for it on all the network’s nodes. When looking for a product, there might be someone somewhere that sells it but it might take 20 seconds for the system to find it. We ran many tests and, at some point, there’s so much delay that it gets pretty hard to see who has what and who’s transacting. In the long run, this broadcast model isn’t viable. The last important piece was the payment options. They opted not to create a new currency and to just use, at first, Bitcoin, and then a few other currencies. The main problem with that is those currencies are actually designed to be stores of value, not to do active business with. And that’s okay, we do need both, but Bitcoin wasn’t really engineered as an everyday payment option. That’s a personal opinion of course but I feel it hasn’t been designed for this. And so, most people liked the idea of OpenBazaar but didn’t want to, first, make a payment to buy Bitcoin, and then a second payment to actually pay for a product. Most people buy Bitcoin and put it aside with no intention to use it as a form of payment. That’s why using 1, 2, or even 12 different cryptocurrencies isn’t ideal for an eCommerce. And then came Particl, which has been well covered tonight so far. I got to calm down now, I’m speaking so fast! Must be hard on you guys! You know, at any point, you can tell me if there’s something wrong, else I’ll just keep going. Alright then, let’s keep going! As you know, Particl came in with a different angle. They said, we’ll build a MAD escrow system. They opted to put two persons directly in touch and keep them honest with each other through a system that requires both of them to put money on the line by way of security deposit. This ensures that the vendor will ship the promised item and that the buyer will not deceive or lie on whether he received the product or not. That means both parties need to reach a resolution when issues arise so that they can be refunded their security deposit. The downside with this is that it forces you to put more money on the line than just the value of the item. Twice the amount to be exact, not optimal for the end user. But it’s one of the caveats of doing business in a peer-to-peer fashion. So both the buyer and the vendor need additional funds to make transactions. On the data transmission side, they opted to broadcast data on a side network and then, later on, use IPFS to store content like images. I’ve got nothing to say against that, I actually think it’s the ideal strategy. I don’t think we’ll see any limitation here moving forward and one day have a pretty scalable model although today it’s hard to know how scalable it will need to be. Finally, they created their own currency to support the network. They made it so that the network uses this currency, but can still work with other currencies by using atomic swaps. That means you could use Bitcoin, Bitcoin Cash, CannabisCoin even. You pick your coin, make an atomic swap, and yes I’m kidding of course with CannabisCoin, but you swap it and then can purchase something on the network It’s a currency that’s been designed to facilitate its exchange with other currencies. It’s not just a simple store of value. And so, with Particl, we have a system that incentivizes users to be honest, we have a scalable model, and also one that preserves your privacy since it is purely peer-to-peer and doesn’t employ third-parties. It’s designed in a much better way than OpenBazaar in my humble opinion. If you want to try it out, we’ve brought a few laptops that you can use to test a live version of the marketplace. We have two laptops that have the latest testnet builds installed. We’re crossing our fingers for a mainnet version to be released ASAP, but it’s still possible to see how it all works using the testnet version. And now for the vision behind it all. I know there’s a lot of color here, it might give you some psychedelic vibes. But that’s how imagine it in a way that is easy to understand! So on the network, there is a main marketplace that is open to everyone. It allows anyone to create, browse, and purchase products. All of its data being open to everyone, Mubiz, and I hope others as well, will be able to offer gateways, explorers, and present themselves as trusted third-parties. I know third-parties aren’t ideal, but they enable additional features and better mainstream exposure. So that’s what Mubiz does. It’s an entity that acts as a bridge from the mainstream to the decentralized protocol. But back to Particl, it will also be possible to use private markets. These are markets that only authorized people can access. These are like sub-networks where a group of users can do business with each other. The rest of the network and unauthorized people can’t see what’s going on in these private markets. These private markets will even be able to enable alternative marketplaces. You take a sub-category of product and grow the private market as you add more products for sale and start reaching out to more customers. There’s no limit to the amount of private markets you can create. There’s also no limitation to the number of products you can list on them. It’s all within the same Particl network, but these are independent groups with their own marketplaces. You guys still with me? So far so good? “You should watch out with those colors”. Yeah alright, the colors are a bit spacey, I’ll revise those colors next time! Alright, so here’s a rough overview of the way forward for Particl. No hard dates of course, it always depends on the pace of development! So it’s just an overview of what’s to come in the future. This is, of course, in the hands of the Particl team, but it gives a good idea of what’s being worked on. So around the month of March, if all goes well, the marketplace will go live on mainnet. In the weeks and months following this release, RingCT, which was announced a while ago, and Bulletproofs should also follow. That’s a whole privacy package that will enhance the user privacy on the network. And then, the Lightning Network, in conjunction with atomic swaps, should make it onto the network as well. That’s thanks to Particl being built on the Bitcoin codebase which allows it to leverage Bitcoin’s latest development. No need to reinvent the wheel when it’s been developed in a proper way on Bitcoin. I believe using Bitcoin’s code on Particl is a great idea. And finally we have the private markets which I’ve just talked about. So what does the future of this project look like? We tell ourselves, it’s brilliant and there’s a lot of disruption on the way, but what will make it blossom into something that started as a proof-of-concept and ends up being a much bigger and user-friendly product that everybody uses? That’s where the role of an intermediary starts making sense. For the mailing system, for example, we’ve had the arrival of Gmail and Outlook acting as intermediaries that build bridges between decentralized systems and public services. These intermediaries, in my opinion, enable real growth. So that has happened for the mailing system That’s also what happened to fiat currencies with exchanges. And we know here that exchanges are, for example, what allowed cryptocurrencies to thrive. They allow you to create an account, make a transaction, a trade, without having to manually find someone to sell your coins to. Even if intermediaries charge fees, the services they provide is what allow networks to truly grow and be used by the public. As for eCommerce, we also need those intermediaries. Even though we have decentralized marketplaces where people can do business between each other, intermediaries can make them much more user-friendly and convenient for the public. At least that’s from my standpoint They can, for example, provide explorers to make it easier to find products and see what happens on the network. They can also facilitate payments, like allowing banking card payments, or even offer product delivery services. That’s what we offer at Mubiz. You don’t need to download the application anymore, hold cryptocurrencies, and etc. We give you all the tools you need to have a user experience that’s almost identical as Amazon’s. In other words, you won’t even noticed you purchased a product on a decentralized network. And of course it’s doable, it’s nothing extraordinary neither. It’s possible to connect to the nodes, gather all the information required, we can setup orders, and facilitate the payment. It’s not that difficult to accomplish and there isn’t really any big obstacle making that hard to do. And that’s what we, at Mubiz, aim to provide. We want to make this decentralized marketplace more accessible and easy to use for everyone. So here we had a demo of Mubiz. We might be short on time, though. We could go through it, but to gain a few minutes and allow CoinHouse to close this place a bit before 22:00, and they’ll probably appreciate it, what I suggest is to simply go on our website at mubiz.com. You’ll be able to see for yourself how the website works, what we offer, and how we were able to display the available products for sale on OpenBazaar. How they’re displayed, presented, and how you can create a cart. So, yes, it worked before with OpenBazaar, and we’re able to make it work on Particl as well. So from a technological architecture standpoint, nothing too out of the ordinary here. We have the front, middle, and back ends with different services offered. We also have nodes that gather information from the Particl network. Let’s not waste a ton of time here. So four points to remember. If you had questions that’s when we would have done it but since we’re short on time we’ll pass for now. So yeah, four important points to remember moving forward. First, OpenBazaar has shown us decentralized marketplaces are possible, that it wasn’t just a crazy idea Peer-to-peer eCommerce, between people who don’t know each other, is really possible. So yes, we now know it can be done. Kudos to them for demonstrating that. I don’t know where OpenBazaar will go from here, but they’ve allowed us to established a standard that we can replicate and apply to other networks. It was a huge leap forward. I’m not guaranteeing the future of OpenBazaar, I’m just saying they proved it was possible and that it was replicable. Secondly, Particl proposes a second generation of decentralized eCommerce protocol, a 2.0 version if you will. It offers a decentralized escrow system, the ability to integrate it on other networks, doing business directly with integrated wallets, and etc. It’s a step forward, using what we’ve learned with OpenBazaar, what could have been improved and it pushes the concept further. Third point to remember, intermediaries will have a role to play in growing this technology. I actually hope Mubiz will have competitors ASAP. I know it sounds weird but that’s what we need. The greater the number of users and services, the bigger businesses will grow. That’s what happened with crypto exchanges. More people started using them, and more of them appeared. That’s why exchanges don’t necessarily see each other as competitors but more like partners. They all work towards the same goal and the accomplishments of one exchange certainly benefit the others. I believe it will be more of the same in the case of Mubiz Last point, we’re waiting for the mainnet release of Particl as we’ll be able to launch Mubiz within two weeks of this release. So that’s all for me, if you have any question, I’ll be happy to answer them. Otherwise, let’s end this evening at the Soft!