WEBVTT 1 00:00:00.120 --> 00:00:05.799 Welcome deep divers. Imagine a moment, a real turning point, 2 00:00:06.000 --> 00:00:09.279 not a war, but an idea that just completely shook 3 00:00:09.320 --> 00:00:10.320 the financial world. 4 00:00:10.519 --> 00:00:13.000 Yeah, and I'm challenging, you know, the whole concept of 5 00:00:13.080 --> 00:00:15.359 needing a central authority for things. 6 00:00:15.080 --> 00:00:17.839 Exactly, and it's set the stage for something totally new, a. 7 00:00:17.879 --> 00:00:20.519 Real conceptual earthquake, wasn't it, Especially coming out of that 8 00:00:20.519 --> 00:00:23.519 period of well deep distrust in the old systems. 9 00:00:23.559 --> 00:00:25.600 You hit the nail on the head. It made everyone 10 00:00:25.600 --> 00:00:30.519 ask who's really in charge here? Where's the accountability? And 11 00:00:30.559 --> 00:00:34.439 that fundamental shift that questioning is exactly what we're diving 12 00:00:34.479 --> 00:00:39.280 into today, the world of blockchain and decentralized applications DAPs. 13 00:00:39.560 --> 00:00:42.799 Right. It started with digital currency bitcoin being the obvious one, 14 00:00:42.920 --> 00:00:46.200 but now it's becoming this foundational layer for like a 15 00:00:46.240 --> 00:00:49.920 whole new generation of software. It's moving way beyond just money. 16 00:00:50.119 --> 00:00:53.000 Absolutely. Yeah. So our mission today we want to cut 17 00:00:53.000 --> 00:00:56.079 through the jargon, give you the really essential nuggets, and 18 00:00:56.119 --> 00:00:59.159 maybe uncover some surprising ways these technologies are changing things. 19 00:00:59.399 --> 00:01:03.079 Yeah, everything from banking to data sharing, even social media. 20 00:01:03.359 --> 00:01:05.519 The goal is that you walk away not just knowing 21 00:01:05.560 --> 00:01:09.560 the buzzwords, but actually getting why they matter. Why they 22 00:01:09.560 --> 00:01:10.159 matter to you. 23 00:01:10.439 --> 00:01:13.239 And we've got a great guide for this exploration the 24 00:01:13.400 --> 00:01:18.319 book Building Decentralized Blockchain Applications Learn how to use Blockchain 25 00:01:18.359 --> 00:01:21.840 as the foundation for net gen Apps by Shaheed Shake. 26 00:01:23.040 --> 00:01:25.439 Let's unpack this sounds good? So we hear these terms 27 00:01:25.480 --> 00:01:29.079 all the time, immutable, decentralized. For listeners already kind of 28 00:01:29.079 --> 00:01:32.760 following the space, what's the really revolutionary part about these 29 00:01:32.920 --> 00:01:34.680 Where do they genuinely shift the power? 30 00:01:35.159 --> 00:01:38.799 That's a great question because, Okay, at its core, blockchain 31 00:01:39.040 --> 00:01:43.560 is this immutable distributed ledger right records linked cryptographically peer 32 00:01:43.599 --> 00:01:46.400 to peer. But the revolution isn't just what it is, 33 00:01:46.439 --> 00:01:50.120 it's what it allows. Immutable means once data is confirmed, 34 00:01:50.319 --> 00:01:53.280 validated by the network, it's basically set in stone, can't 35 00:01:53.280 --> 00:01:53.719 be altered. 36 00:01:53.799 --> 00:01:54.519 Okay, locked in. 37 00:01:54.560 --> 00:01:58.879 And decentralized means no single boss, no central server, no 38 00:01:59.079 --> 00:02:02.799 company calling all the shots. The network participants are in control. 39 00:02:02.920 --> 00:02:05.079 So that's the power shift exactly. 40 00:02:05.200 --> 00:02:08.039 It shifts who holds the power and where the trust lies. 41 00:02:08.520 --> 00:02:11.199 Instead of, you know, blindly trusting a bank or a 42 00:02:11.199 --> 00:02:15.000 big tech company, you're relying on math, on cryptographic proof 43 00:02:15.080 --> 00:02:16.159 and distributed agreement. 44 00:02:16.360 --> 00:02:20.080 Moving from institutional trust to mathematical certainty. I like that 45 00:02:20.719 --> 00:02:25.240 powerful concept trusting the code, the network's crypto, instead of 46 00:02:25.240 --> 00:02:28.639 a corporation. And the book highlights this interesting mix of 47 00:02:28.680 --> 00:02:30.360 anonymity and transparency. 48 00:02:30.479 --> 00:02:34.560 Right, you as a user are anonymous, just identified by 49 00:02:34.680 --> 00:02:40.039 these long cryptographic hashes, these addresses. But every transaction, every 50 00:02:40.159 --> 00:02:44.159 piece of data added is out there publicly viewable on 51 00:02:44.199 --> 00:02:47.879 the ledger, so you get this verifiable proof of ownership 52 00:02:48.039 --> 00:02:50.120 or proof that something happened provenance. 53 00:02:50.280 --> 00:02:54.120 The strange paradox, isn't it anonymous users transparent actions? 54 00:02:54.360 --> 00:02:56.479 It really is. And the origin story just fascinating. You 55 00:02:56.520 --> 00:02:57.680 have to think back to two thousand and. 56 00:02:57.680 --> 00:03:00.080 Eight financial crisis exactly, global. 57 00:02:59.759 --> 00:03:04.240 Rest session banks, failing trust in those big institutions just evaporating. 58 00:03:04.319 --> 00:03:07.319 That was the climate, the perfect storm for a radical. 59 00:03:07.000 --> 00:03:12.120 Idea, precisely, and into that steps this anonymous figure, Satoshi Nakamoto, 60 00:03:12.199 --> 00:03:14.199 proposing this completely different system. 61 00:03:14.280 --> 00:03:16.719 And it wasn't just about creating Bitcoin the currency. It 62 00:03:16.759 --> 00:03:19.159 was a statement, wasn't it That message in the first block? 63 00:03:19.240 --> 00:03:22.719 Oh yeah, the Genesis block message the Times three jan 64 00:03:22.840 --> 00:03:25.719 two thousand and nine, Chancellor on the brink of second 65 00:03:25.719 --> 00:03:26.719 bailout for banks. 66 00:03:27.039 --> 00:03:29.560 Wow, talk about making a point right. 67 00:03:29.879 --> 00:03:32.039 It wasn't just a time stamp. It was a direct 68 00:03:32.159 --> 00:03:36.520 challenge to the whole traditional debt based financial system. Here's 69 00:03:36.560 --> 00:03:38.439 an alternative, peer to peer. 70 00:03:38.400 --> 00:03:40.919 Trustless marking a new era definitely. 71 00:03:41.479 --> 00:03:44.319 But you know, while Bitcoin felt revolutionary, the building blocks 72 00:03:44.360 --> 00:03:49.319 weren't entirely new. Ideas around distributed computing, cryptography, consensus, those 73 00:03:49.319 --> 00:03:51.120 had been around since the nineties. 74 00:03:50.759 --> 00:03:52.919 So Stoci's genius was putting them together. 75 00:03:52.759 --> 00:03:55.520 Kind of Yeah, combining things like mercle trees, which were 76 00:03:55.599 --> 00:03:59.199 used for secure document time stamping, and hashcash, an early 77 00:03:59.240 --> 00:04:02.120 proof of work idea to stop email spam. So Toshi 78 00:04:02.120 --> 00:04:05.639 combine these existing pieces into this elegant working system that 79 00:04:05.800 --> 00:04:08.560 solve the problem of digital trust without needing a middleman. 80 00:04:08.840 --> 00:04:11.919 Okay, So with those mechanics established, the book points out 81 00:04:11.919 --> 00:04:15.159 that not all blockchains are the same, they're different types. 82 00:04:15.360 --> 00:04:19.360 Yeah, that's important. You've got your public blockchains think Bitcoin 83 00:04:19.720 --> 00:04:24.000 Ethereum open door policy, anyone can join, read the ledger, 84 00:04:24.199 --> 00:04:26.040 submit transactions. 85 00:04:25.600 --> 00:04:27.199 And they use things like proof of work. 86 00:04:27.240 --> 00:04:30.120 Typically yeah, which needs a lot of computing power. That 87 00:04:30.199 --> 00:04:33.240 makes them super decentralized and secure, but also you know 88 00:04:33.439 --> 00:04:34.360 slower sometimes. 89 00:04:34.480 --> 00:04:35.959 Okay, then what's next? 90 00:04:36.199 --> 00:04:39.800 Then you have federated or consortium blockchains. These are more 91 00:04:39.879 --> 00:04:43.360 like a private club for a group of organizations. Ah, 92 00:04:43.399 --> 00:04:46.279 so permission is needed, right, you need permission to read 93 00:04:46.360 --> 00:04:49.800 or write. Since it's a smaller known group of participants, 94 00:04:49.839 --> 00:04:52.399 they tend to be faster and more efficient. Good for 95 00:04:52.480 --> 00:04:56.120 industry collaborations where you need some control but still want shared. 96 00:04:55.839 --> 00:04:56.879 Truth makes sense. 97 00:04:57.439 --> 00:05:00.279 And the last type private blockchains. These are usually run 98 00:05:00.319 --> 00:05:02.639 by a single organization just for internal use. 99 00:05:02.680 --> 00:05:05.199 They set all the rules, so most centralized. 100 00:05:05.439 --> 00:05:08.279 Definitely the most centralized of the three. They still get 101 00:05:08.319 --> 00:05:11.879 the immutability and crypto security benefits, but it's all controlled 102 00:05:11.879 --> 00:05:15.560 by one entity. Often used for things like internal audits 103 00:05:15.680 --> 00:05:18.480 or tracking goods within a company's own supply chain. 104 00:05:18.800 --> 00:05:20.680 So the choice really depends on what you need, right, 105 00:05:20.720 --> 00:05:26.000 that trade off between decentralization speed privacy. 106 00:05:25.639 --> 00:05:28.839 Exactly, it's a strategic decision, not just a technical one. 107 00:05:28.879 --> 00:05:31.720 Okay, so different types, but how does the basic process work. 108 00:05:31.839 --> 00:05:33.680 Let's say I want to send some crypto walk us 109 00:05:33.680 --> 00:05:35.079 through that transactions journey. 110 00:05:35.120 --> 00:05:38.240 Sure it starts with you acting as a node. A 111 00:05:38.279 --> 00:05:42.079 node is really just any computer running the blockchain software. 112 00:05:42.160 --> 00:05:44.360 Could be a laptop, could be a huge data. 113 00:05:44.079 --> 00:05:46.240 Center, so a participant in the network, right. 114 00:05:46.160 --> 00:05:49.199 And the more nodes, the stronger the network. So you 115 00:05:49.279 --> 00:05:52.519 initiate your transaction and includes an ID which is a hash. 116 00:05:52.680 --> 00:05:56.680 The sender and receiver addresses also hashes, keeping it anonymous exactly, 117 00:05:56.720 --> 00:06:00.680 no personal info, just those hashes plus the amount network fees, 118 00:06:01.079 --> 00:06:04.240 and your digital signature basically assigned hash proving it's you. 119 00:06:04.240 --> 00:06:06.720 You broadcast the same podcast it where to the network 120 00:06:07.120 --> 00:06:11.279 to the other nodes. Then special nodes called miners pick 121 00:06:11.360 --> 00:06:13.800 up your transaction along with others that are waiting. 122 00:06:13.920 --> 00:06:14.800 What do they do with them? 123 00:06:15.000 --> 00:06:18.240 They gather these transactions and put them into a potential block. 124 00:06:18.759 --> 00:06:20.920 Think of it like grouping checks to be deposited. 125 00:06:21.000 --> 00:06:22.519 Okay, a batch of transaction yep. 126 00:06:22.959 --> 00:06:25.519 Now to get this block officially added to the ledger, 127 00:06:25.839 --> 00:06:28.720 the miners have to compete. If it's a proof of 128 00:06:28.759 --> 00:06:32.680 work system like Bitcoin, they're racing to solve a really 129 00:06:32.759 --> 00:06:34.879 hard cryptographic puzzle. 130 00:06:34.639 --> 00:06:35.439 The hash puzzle. 131 00:06:35.560 --> 00:06:38.399 That's the one. They're trying to find a specific hash 132 00:06:38.480 --> 00:06:42.399 value for that block. And crucially, this hash includes the 133 00:06:42.439 --> 00:06:44.439 hash of the previous block in the chain. 134 00:06:44.600 --> 00:06:47.680 Ah, that's the chain part linking them together precisely. 135 00:06:48.279 --> 00:06:52.480 That cryptographic link makes the history tamper proof, so one 136 00:06:52.519 --> 00:06:57.439 miner eventually finds the winning hash. What next they showed eureka, huh, 137 00:06:57.480 --> 00:07:01.839 maybe they broadcast their new solved block, the proposed page 138 00:07:01.839 --> 00:07:03.839 for the ledger to the whole network. 139 00:07:04.040 --> 00:07:05.720 Everyone just trusts, no way. 140 00:07:05.879 --> 00:07:09.720 That's the key. Other nodes all across the network independently 141 00:07:09.800 --> 00:07:12.399 check the work. They verify the hash, They verify all 142 00:07:12.439 --> 00:07:13.800 the transactions inside the block. 143 00:07:13.920 --> 00:07:16.120 Okay, peer review exactly. 144 00:07:16.079 --> 00:07:18.920 And if a majority usually fifty one percent of the 145 00:07:19.000 --> 00:07:22.519 network power agrees yep, this block is valid. Then and 146 00:07:22.639 --> 00:07:25.279 only then it gets added to the official chain. It 147 00:07:25.279 --> 00:07:27.240 becomes permanent, immutable. 148 00:07:27.360 --> 00:07:30.240 And that fifty one percent rule is why attacking a 149 00:07:30.279 --> 00:07:33.680 big network is so hard. You'd need massive computing. 150 00:07:33.279 --> 00:07:37.439 Power, immense power for something like bitcoin. It's practically impossible 151 00:07:37.480 --> 00:07:40.000 for any single entity to pull off a fifty one 152 00:07:40.000 --> 00:07:43.600 percent attack to rewrite history. It's the power of that 153 00:07:43.680 --> 00:07:45.680 distributed consensus and the miners. 154 00:07:45.680 --> 00:07:48.160 They get paid for this work, right. The book mentioned 155 00:07:48.160 --> 00:07:49.519 bitcoin rewards big time. 156 00:07:49.680 --> 00:07:52.040 Originally it was more. Now it's like twelve point five 157 00:07:52.120 --> 00:07:54.800 bitcoin per block they successfully mine, Plus they collect all 158 00:07:54.839 --> 00:07:57.639 the transaction fees from the transactions included in that block. 159 00:07:57.680 --> 00:08:00.199 That's the incentive which brings us to consensus. How the 160 00:08:00.199 --> 00:08:03.360 network agrees. We mentioned proof of workw Right. 161 00:08:03.519 --> 00:08:07.360 Bitcoin's method computationally hard to find the hash requires tons 162 00:08:07.399 --> 00:08:10.360 of processing power and energy, but super easy for anyone 163 00:08:10.360 --> 00:08:11.800 else to verify it once found. 164 00:08:12.040 --> 00:08:14.720 Makes it secure again spam and attacks because it's expensive 165 00:08:14.720 --> 00:08:15.839 to cheat exactly. 166 00:08:16.240 --> 00:08:19.079 But the downside everyone talks about is the energy consumption. 167 00:08:19.480 --> 00:08:21.000 It's huge, which. 168 00:08:20.920 --> 00:08:24.399 Leads to the alternatives like proof of steak POS correct. 169 00:08:24.839 --> 00:08:28.399 POS tries to solve the energy and scaling issues of POWW. 170 00:08:28.720 --> 00:08:33.639 Instead of miners competing with hardware, you have validators. Validators, Yeah, 171 00:08:33.679 --> 00:08:36.200 they're chosen to create new blocks based on how much 172 00:08:36.279 --> 00:08:39.919 cryptocurrency they've staked or locked up as collateral. 173 00:08:39.519 --> 00:08:41.600 So they have skin in the game exactly. 174 00:08:41.919 --> 00:08:43.960 If they try to cheat the system, they get slashed, 175 00:08:44.000 --> 00:08:48.240 they lose some or all of their staked coins. Big disincentive. 176 00:08:48.639 --> 00:08:51.320 Ethereum's big move to proof of steak is a major 177 00:08:51.360 --> 00:08:52.320 shift in this direction. 178 00:08:52.879 --> 00:08:55.840 Interesting, and there are others BFT. 179 00:08:55.879 --> 00:09:00.000 Byzantine fault tolerance BFT. It's more a category of algorithms. 180 00:09:00.440 --> 00:09:02.480 The core idea is to make sure the system keeps 181 00:09:02.480 --> 00:09:06.159 working correctly even if some nodes crash or worse, try 182 00:09:06.200 --> 00:09:09.600 to send out bad information. Really important for those private 183 00:09:09.720 --> 00:09:12.360 or consortum chains where reliability is paramount. 184 00:09:12.559 --> 00:09:15.759 Got it? Now, Bitcoin wasn't just a new currency. The 185 00:09:15.799 --> 00:09:19.120 book emphasizes how it solved a really fundamental problem for 186 00:09:19.200 --> 00:09:21.320 digital money, double spending. 187 00:09:21.600 --> 00:09:24.399 Oh yeah, that was the holy grail. How do you 188 00:09:24.480 --> 00:09:27.919 stop someone from spending the same digital coin twice like 189 00:09:28.000 --> 00:09:32.080 copying an MP three file without a central bank watching 190 00:09:32.279 --> 00:09:32.960 every move? 191 00:09:33.240 --> 00:09:34.679 How did bitcoin crack it? 192 00:09:34.679 --> 00:09:37.759 It uses the blockchain itself as the referee. When you 193 00:09:37.840 --> 00:09:41.240 send bitcoin, the transaction goes into this waiting area the 194 00:09:41.279 --> 00:09:43.840 memory pool. Okay, miners pick it up, put it in 195 00:09:43.840 --> 00:09:46.639 a block. Once that block is confirmed by the network 196 00:09:46.759 --> 00:09:50.480 added to the chain, that transaction is final. The specific 197 00:09:50.679 --> 00:09:53.519 bitcoin outputs used in your transaction are marked. 198 00:09:53.279 --> 00:09:55.759 As spent, so if you try to spend them again. 199 00:09:55.519 --> 00:09:57.639 The network just rejects it. Everyone can see on the 200 00:09:57.679 --> 00:10:00.960 public ledger that those coins have already been It creates 201 00:10:01.000 --> 00:10:03.840 digital scarcity verifiably without needing a bank. 202 00:10:03.960 --> 00:10:08.279 It was ingenious, it really is. Okay, so blockchain secure, immutable, 203 00:10:08.360 --> 00:10:12.720 decentralized records, fantastic for money. But then comes this huge leap. 204 00:10:12.879 --> 00:10:15.799 The idea that the book sums up so well. Cryptocurrency 205 00:10:15.840 --> 00:10:18.200 is a small subset of the blockchain, like the email 206 00:10:18.200 --> 00:10:18.759 of the Internet. 207 00:10:18.919 --> 00:10:22.399 Yes, this is where it gets really exciting. The underlying 208 00:10:22.919 --> 00:10:28.799 tech decentralization, p top, consensus, anonymity. It's not just for money. 209 00:10:29.480 --> 00:10:34.399 It's a toolkit for building entirely new kinds of applications. 210 00:10:33.559 --> 00:10:34.799 A foundational layer for. 211 00:10:35.039 --> 00:10:38.200 Well, lots of things exactly, which brings us right to 212 00:10:38.759 --> 00:10:40.759 decentralized applications DAPs. 213 00:10:40.919 --> 00:10:42.559 So what are they? Fundamentally? 214 00:10:42.879 --> 00:10:45.399 Think of them as alternatives to the apps we use 215 00:10:45.440 --> 00:10:48.360 every day, the ones running on some companies central server 216 00:10:48.639 --> 00:10:50.519 DAPs run on peer to peer network. 217 00:10:50.559 --> 00:10:55.240 Instead, we've had PDP for things like file sharing for ages, right, yeah, torrents, 218 00:10:55.320 --> 00:10:55.919 things like that. 219 00:10:56.039 --> 00:10:59.000 True, but the key difference with many modern DAPs is 220 00:10:59.039 --> 00:11:01.480 that critical data, or at least the record of actions, 221 00:11:01.799 --> 00:11:05.559 is stored on the blockchain or a similar decentralized system. 222 00:11:05.360 --> 00:11:07.519 Giving it that immutability, that fraud proof. 223 00:11:07.399 --> 00:11:11.240 Quality, and often user anonymity. So the app might look 224 00:11:11.279 --> 00:11:14.799 familiar on the surface your interface, but underneath, the business 225 00:11:14.840 --> 00:11:18.039 logic and the data layer are built using cryptography and blockchain. 226 00:11:18.080 --> 00:11:19.440 It's a totally different architecture. 227 00:11:19.519 --> 00:11:21.200 The book uses an Instagram analogy. 228 00:11:21.399 --> 00:11:25.159 Yeah, it's a good one. Imagine a decentralized Instagram. You 229 00:11:25.240 --> 00:11:27.120 upload a photo. Instead of going to. 230 00:11:27.080 --> 00:11:29.200 Instagram's server, it goes somewhere else. 231 00:11:29.320 --> 00:11:33.080 It might go into decentralized storage like IPFS, the Interplanetary 232 00:11:33.159 --> 00:11:37.200 File System IPFS gives you back a unique hash, a 233 00:11:37.279 --> 00:11:39.679 content identifier for that photo. 234 00:11:39.840 --> 00:11:42.360 Okay, like a digital fingerprint for the photo kind of. 235 00:11:42.600 --> 00:11:46.440 Then the action you uploading that photo, represented by its hash, 236 00:11:46.600 --> 00:11:50.559 gets recorded on the blockchain permanently immutably. 237 00:11:50.759 --> 00:11:53.639 Ah, So the record of the upload is immutable, not 238 00:11:53.720 --> 00:11:56.279 necessarily the photo file itself floating around. 239 00:11:56.360 --> 00:12:00.559 That's a really crucial distinction. The blockchain guarantees the integrity 240 00:12:00.559 --> 00:12:04.159 of the action log It provides verifiable proof you did something, 241 00:12:04.360 --> 00:12:06.879 censorship resistant ownership of that interaction. 242 00:12:07.000 --> 00:12:10.200 Okay, that makes sense. So what tech actually enables these 243 00:12:10.240 --> 00:12:13.960 more complex DAPs beyond just simple transactions. 244 00:12:14.039 --> 00:12:17.399 The absolute game changer was Ethereum. Yes, it's the number 245 00:12:17.440 --> 00:12:20.799 two crypto, but its real significance was interesting The idea 246 00:12:20.879 --> 00:12:25.240 of a programmable virtual machine on the blockchain, program meaning 247 00:12:25.279 --> 00:12:29.039 you could run code on it, specifically smart contracts. These 248 00:12:29.080 --> 00:12:32.679 are like little programs self executing agreements that live and 249 00:12:32.759 --> 00:12:36.080 run directly on the Ethereum blockchain. 250 00:12:35.679 --> 00:12:37.159 Unlike Bitcoin simple. 251 00:12:36.919 --> 00:12:43.000 Scripting exactly, Bitcoin's script language is limited mainly for verifying transactions. 252 00:12:43.120 --> 00:12:47.639 Ethereum uses languages like Salinity, which are touring complete. Basically, 253 00:12:47.679 --> 00:12:50.600 they can run almost any kind of computational logic, so. 254 00:12:50.559 --> 00:12:52.799 You can build complex applications. 255 00:12:52.279 --> 00:12:57.240 Anything, games, financial instruments, governance systems, you name it. Remember 256 00:12:57.279 --> 00:13:01.639 Crypto Kitties, that early, crazy popular digital cat breeding game. 257 00:13:01.879 --> 00:13:04.320 Vaguely yeah, clogged the network, didn't it? 258 00:13:04.320 --> 00:13:07.159 It did, but it proved you could build non financial, 259 00:13:07.200 --> 00:13:11.200 complex applications directly on a blockchain. It opened the floodgates 260 00:13:11.240 --> 00:13:12.080 for deck development. 261 00:13:12.159 --> 00:13:15.799 That programmability is huge. You also mentioned IPFS for storage. 262 00:13:15.840 --> 00:13:16.879 What's so different about it? 263 00:13:17.080 --> 00:13:21.000 IPFS is really ambitious. It wants to replace HTTP, the 264 00:13:21.039 --> 00:13:23.679 protocol we use to browse the web now. Its core 265 00:13:23.720 --> 00:13:26.960 idea is revolutionary content based addressing. 266 00:13:27.000 --> 00:13:27.879 Okay, what does that mean? 267 00:13:28.039 --> 00:13:30.679 Instead of asking the network where is the file at 268 00:13:30.720 --> 00:13:33.039 this specific web address like we do now. 269 00:13:33.120 --> 00:13:35.000 Like asking for a specific shelf in a. 270 00:13:34.960 --> 00:13:38.080 Library, right, with IKFS, you ask what is the file? 271 00:13:38.559 --> 00:13:40.679 You ask for it based on its content, the file 272 00:13:40.720 --> 00:13:44.919 itself generates a unique cryptographic hash its content ID or CID. 273 00:13:45.480 --> 00:13:48.039 If the content is the same, the CID is the 274 00:13:48.039 --> 00:13:49.360 same no matter where it's stored. 275 00:13:49.519 --> 00:13:52.519 The book used that T shirt analogy, asking for a 276 00:13:52.519 --> 00:13:56.120 blue T shirt versus the T shirt on that specific rack. 277 00:13:56.120 --> 00:13:59.000 Exactly content based versus location based. 278 00:13:59.039 --> 00:14:03.039 Okay, conceptual elegant, But what's the practical advantage? Why is 279 00:14:03.080 --> 00:14:03.519 that better? 280 00:14:03.639 --> 00:14:07.440 Huge advantages. Files on ipfs are broken into smaller blocks, 281 00:14:07.480 --> 00:14:10.519 each with its own CID, forming the structure called a 282 00:14:10.679 --> 00:14:13.720 Merkle dag. It's like a graph where everything's linked by 283 00:14:13.720 --> 00:14:16.840 its content hash. This means you can pull different pieces 284 00:14:16.840 --> 00:14:19.879 of the same file from many different computers peers all 285 00:14:19.919 --> 00:14:23.840 over the world simultaneously. It makes file retrieval way more resilient, 286 00:14:24.240 --> 00:14:27.039 no single point of failure like a central server, so. 287 00:14:27.080 --> 00:14:29.360 Better for uptime and censorship resistance. 288 00:14:29.679 --> 00:14:31.840 Definitely. If one source goes down, you can still get 289 00:14:31.840 --> 00:14:35.080 the file from others, and it's much harder to censor 290 00:14:35.240 --> 00:14:39.080 because the content can exist anywhere. Data integrity is also 291 00:14:39.120 --> 00:14:42.919 built in because the hash verifies the content. Driving all 292 00:14:42.919 --> 00:14:45.399 this peer to peer magic is a library called lib 293 00:14:45.440 --> 00:14:49.679 two P which handles finding, geres, connecting, and transferring data. 294 00:14:49.759 --> 00:14:53.600 Okay, so we have programmable blockchains like Ethereum and decentralized 295 00:14:53.600 --> 00:14:58.120 storage like IPFS. But blockchains themselves aren't great databases for everything, 296 00:14:58.200 --> 00:15:00.600 right cost, speed, exactly. 297 00:15:00.759 --> 00:15:03.919 Storing large amounts of data or doing complex queries directly 298 00:15:03.919 --> 00:15:06.399 on something like Ethereum can get slow and very expensive 299 00:15:06.480 --> 00:15:10.039 due to gas fees. The blockchain excels at immutable records, 300 00:15:10.039 --> 00:15:13.279 not necessarily high performance general purpose data. 301 00:15:13.080 --> 00:15:16.200 Storage, which is where specialized decentralized databases come in. 302 00:15:16.279 --> 00:15:19.879 Precisely, the ecosystem has evolved. Take orbit dB. It's designed 303 00:15:19.879 --> 00:15:22.679 as a serverleist distributed peer to peer database that runs 304 00:15:22.679 --> 00:15:24.120 on top of IPFS. 305 00:15:23.639 --> 00:15:25.919 Built on ipfs SING. What makes it special. 306 00:15:26.240 --> 00:15:29.840 A key thing is its use of crdt's conflict free 307 00:15:29.960 --> 00:15:35.080 replicated data types. These are clever data structures. Imagine multiple 308 00:15:35.120 --> 00:15:39.360 people editing the same document offline. Crdts allow their changes 309 00:15:39.360 --> 00:15:43.360 to be merged back together automatically and correctly later without conflicts, 310 00:15:43.639 --> 00:15:46.200 even without a central server coordinating everything. 311 00:15:46.279 --> 00:15:49.080 Wow. Okay, that sounds essential for any distributed system where 312 00:15:49.120 --> 00:15:50.320 people are updating things. 313 00:15:50.120 --> 00:15:54.799 Concurrently, absolutely critical for p top databases. Orbit dB uses this, 314 00:15:54.960 --> 00:15:59.279 along with ipfs's published subscribe system to keep data automatically 315 00:15:59.279 --> 00:16:00.399 synced between peers. 316 00:16:00.600 --> 00:16:02.240 The book mentioned a dmail example. 317 00:16:02.320 --> 00:16:05.639 Yeah, a decentralized email app. You could see orbit dB 318 00:16:05.759 --> 00:16:09.840 sinking mail across your devices using IPFS pubsub maybe using 319 00:16:09.840 --> 00:16:13.480 public private keys for secure direct messaging between contacts, all 320 00:16:13.519 --> 00:16:16.000 P to P, no central mail server holding your data. 321 00:16:16.080 --> 00:16:17.320 It's a compelling. 322 00:16:16.960 --> 00:16:19.840 Vision, definitely. What else is out there decentralized databases? 323 00:16:19.879 --> 00:16:22.000 Well, there's big chain dB. This one tries to blend 324 00:16:22.039 --> 00:16:22.840 the best of both. 325 00:16:22.639 --> 00:16:25.200 Worlds blockchain meets traditional database. 326 00:16:25.000 --> 00:16:29.759 Kind of Yeah. It aims for blockchain features desecialization, immutability, 327 00:16:29.840 --> 00:16:33.679 assets controlled by earners, but also traditional database features like 328 00:16:33.759 --> 00:16:38.279 high transaction speeds, low latency, indexing, and queering data easily. 329 00:16:38.360 --> 00:16:39.200 How does it manage that? 330 00:16:39.559 --> 00:16:43.480 It uses tenderment for consensus, that's a BFT algorithm and 331 00:16:43.600 --> 00:16:47.440 actually runs on top of local manger dB instances on 332 00:16:47.519 --> 00:16:49.840 each node for the fast querying part. 333 00:16:50.080 --> 00:16:51.440 Clever mix. What's it good for? 334 00:16:52.200 --> 00:16:55.519 Think enterprise use cases, audit trails where you need proof 335 00:16:55.600 --> 00:16:58.519 but also need to search records quickly, supply chains, intellectual 336 00:16:58.559 --> 00:17:02.799 property rights, identity manage places needing both verifiable history and 337 00:17:02.919 --> 00:17:04.079 efficient data access. 338 00:17:04.200 --> 00:17:07.480 Okay, and then there's one that's quite different. Ties dB mutable. 339 00:17:07.720 --> 00:17:11.400 Yeah, TIESDB is unusual because it's a mutable, decentralized database. 340 00:17:11.559 --> 00:17:15.079 Most blockchain things focus on immutability. Here the owner of 341 00:17:15.079 --> 00:17:16.400 the data can actually change it. 342 00:17:16.440 --> 00:17:17.720 But it's still decentralized. 343 00:17:17.799 --> 00:17:20.240 Yes, it's run by a network of nodes operated by 344 00:17:20.240 --> 00:17:23.960 community members. They provide the computing power and storage, and 345 00:17:24.000 --> 00:17:26.200 they get paid in tie tokens as an incentive. 346 00:17:26.480 --> 00:17:29.839 Interesting model, So you get verified ID. Data is publicly 347 00:17:29.880 --> 00:17:32.960 readable but owner modifiable. What are the use cases? 348 00:17:33.079 --> 00:17:36.920 Things like distributed data stores where updates are needed, secure 349 00:17:36.960 --> 00:17:39.079 file sharing where you might need to update the file. 350 00:17:39.599 --> 00:17:42.559 Maybe social networks where users truly own and can modify 351 00:17:42.599 --> 00:17:46.160 their own content feeds, even big data applications where data 352 00:17:46.240 --> 00:17:47.240 naturally evolves. 353 00:17:47.480 --> 00:17:50.279 Right. Then there's Bluesell. Is that another database. 354 00:17:50.400 --> 00:17:53.839 It's more like a decentralized network of databases. Think of 355 00:17:53.839 --> 00:17:57.839 it as a marketplace for database resources, specifically for DAPs. 356 00:17:58.039 --> 00:17:59.160 A marketplace. Yeah. 357 00:17:59.319 --> 00:18:04.440 Developers, the consumers pay in Bluesell's token BLZ to store 358 00:18:04.519 --> 00:18:08.000 and retrieve data. Producers are network providers who offer their 359 00:18:08.039 --> 00:18:11.480 storage and compute infrastructure, and they earn BLZ. 360 00:18:11.160 --> 00:18:13.559 Tokens ah an incentive model. 361 00:18:13.599 --> 00:18:17.400 Again exactly. It aims to be secure, tamper proof, scalable, 362 00:18:17.440 --> 00:18:21.240 and importantly affordable, trying to avoid those sometimes high gas 363 00:18:21.279 --> 00:18:24.480 costs you see on ethereum. For data storage, data is 364 00:18:24.519 --> 00:18:27.519 replicated across different zones in the network. For availability. 365 00:18:27.640 --> 00:18:28.400 What's under the hood. 366 00:18:28.720 --> 00:18:31.920 It uses the Cosmos SDK to provide a no SQL 367 00:18:32.000 --> 00:18:36.039 key value store and relies on tenderment for that byzantine 368 00:18:36.079 --> 00:18:40.920 fault tolerant consensus. It's focused on providing reliable, mutable global 369 00:18:41.000 --> 00:18:42.480 data storage for DAPs. 370 00:18:42.640 --> 00:18:45.960 Okay, so we have all these decentralized options, but the 371 00:18:45.960 --> 00:18:50.559 book also includes something that's not decentralized, Amazon QLDB. 372 00:18:50.880 --> 00:18:54.599 Why that's a really important distinction to make. Amazon Quantum 373 00:18:54.680 --> 00:18:58.960 Ledger Database ULDB is centralized. It's fully managed by Amazon. 374 00:18:59.119 --> 00:19:00.880 So why talk about in this context? 375 00:19:01.079 --> 00:19:05.839 Because it borrows key principles from blockchain. It provides a transparent, immutable, 376 00:19:05.920 --> 00:19:10.160 cryptographically verifiable transaction log just like a blockchain. You get 377 00:19:10.200 --> 00:19:12.960 this verifiable audit trail where you can prove the history 378 00:19:12.960 --> 00:19:14.960 of data changes hasn't been tampered. 379 00:19:14.640 --> 00:19:18.279 With, but within a single trusted environment Amazon's cloud. 380 00:19:18.440 --> 00:19:22.119 Exactly. The insight is that many businesses want that immutability 381 00:19:22.119 --> 00:19:25.720 and verifiability for things like financial ledgers or supply chain records. 382 00:19:26.000 --> 00:19:29.039 But they aren't ready for or don't need, full decentralization. 383 00:19:29.480 --> 00:19:32.880 QLDB gives them those blockchain like benefits in a familiar, 384 00:19:33.119 --> 00:19:34.519 managed service. 385 00:19:34.200 --> 00:19:35.839 And it's easier for traditional developers. 386 00:19:36.039 --> 00:19:38.680 That's a big selling point. It uses a SEQL like 387 00:19:38.759 --> 00:19:42.039 query language called Particle and a data format similar to 388 00:19:42.119 --> 00:19:46.319 Jason Plus. It's built for enterprise needs. A set compliant highly. 389 00:19:46.039 --> 00:19:50.440 Available, so good for tracking financial credits, debits, manufacturing records, 390 00:19:50.519 --> 00:19:56.240 insurance claims, payroll things needing an immutable log inside a company. 391 00:19:56.279 --> 00:20:00.000 Precisely, it shows the influence of blockchain ideas extending even 392 00:20:00.119 --> 00:20:01.480 into centralized systems. 393 00:20:01.680 --> 00:20:04.079 Okay, let's make this more concrete. Time for some DAPs 394 00:20:04.119 --> 00:20:07.839 actually out there in the wild. First up, Open Bizarre. 395 00:20:08.279 --> 00:20:09.200 What's the deal there? 396 00:20:09.400 --> 00:20:12.839 Open Bizarre aims to be a truly decentralized eBay or 397 00:20:12.880 --> 00:20:17.480 Amazon peer to peer marketplace, solving what problem? The middleman problem? 398 00:20:17.680 --> 00:20:20.720 No platform fees taken by a central company, no central 399 00:20:20.759 --> 00:20:23.319 authority deciding what you can or can't sell, or shutting 400 00:20:23.319 --> 00:20:23.960 down your store. 401 00:20:24.039 --> 00:20:26.319