Better Than Free? The End of FAANG. by Pol Bordas (Devcon5)
Devcon 5 · 17 Nov 2019 · 19:46
Pol Bordas questions whether decentralized alternatives can out-compete Facebook, Apple, Amazon, Netflix, and Google's free-but-monetized model at Devcon5 in Osaka. The talk weighs what it would take for blockchain-based services to beat free on something other than price alone.
Speakers
Topics
From Devcon 5, hosted by Ethereum Foundation.
Transcript
[Applause] yeah Facebook Amazon Apple Netflix and Google we're good so those are the cure apps right now it wasn't like this it wasn't like this in the past the first killer app that I used was recent Percy I didn't play in Apple 2 I played in Microsoft camera which one I was too small and there has made me dream about what you could do is compute it would be to be imprinted with the magical things so immediately when when they say no i
was i was a great time and let me tell you one of the killer apps still today for me is the zelda ocarina of time but but there was a problem there was a problem with this machine so one day was playing outside I was in I was in my village and there was a big storm I was on my bike it was like 20 minutes away from home I got soaking wet but I was really hoping that I could go home and play ocarina of time with my friends oh boy that didn't happen because I had left the window open and my Nintendo 64 was next to the window so the big storm went is everything and I was my Nintendo 64 so the enemy for those killer apps was
just a simple as lithium what who destroy those humor apps is this Zelda Ocarina of Time and you're laughing at me because I'm an idiot and I left the new Pegasus before next to the window but but you're gonna have to be more to the to these guys if the Metro of London will let the door open when they have some cement going on so that was terrible for them but nothing of this what happens if they had what we have now that's why so the cloud is extremely convenient right there close amazing the cloud allows us to us to use everything to do one program we want this is me using apps as an owl's I used to play viagra my music I use you have
to check the code my peers and I use build ups to do this presentation for example is my laptop what happens absolutely nothing I can use from you so I know the stories that the car is amazing if I was really good friends from the burden of soaring backing out you can ferment from wherever you can you can do the computation of extremely complex apps somewhere else that uses with a device that is not so powerful is very very expensive as supposed to play the hardware every time that you want to play a game like with like my ocarina of time and it's tremendously scale so in summary the cloud is just very very convenient let me put a point here of
who here wants an interview notes I feel really odd that's pretty good who wants it in a VPS why and maintenance security sort of proves the point how to beat it especially if
you don't have a home any obligation if you're an employee and either note let's we've looked at the absent the nineties and after they used to use but let's look at the apps that the world is using this is when I say find more broadly what I mean is this those are those are perhaps the people that you see the most on on their phones right now and I took the liberty of investing in a little bit where those apps are posted because yeah you have facebook on before but that this is necessarily means that all the magic happens on your phone so so what I found out is that well four of the top five are in Facebook Federal service favors Facebook has massive data centers we can
call it the Facebook cloud image they got seven bits of our services a four of them are in Google clouds two of them are in WS two of them use multi cloud approach meaning Google and L years and probably some others like digitalocean who knows five of them they use cloud services but they're mostly Chinese companies and they're not that they're do not disclose who those infrastructure providers are but I've checked on their annual reports and they use cloud services and three of them do not use the cloud why because there are media players and how are you playing the distribution of these top see through Google Play happens through the climate as well but they thought the app
itself does not meet the cloud rare how much does it cost to have this happen 13 billion on network infrastructure for Google last year yesterday oh snap or Salafis base 600 million a year to Google into WS that they don't use lift a hundred million slack 50 million interest 125 million uses Pinterest an Apple 360 million per year did you know that Apple Club is actually Amazon Web Services cloud so just five clients bring the soup
one and a quarter billion US dollar a year if you look at some of the forecasts of the industry its 83 billion in three years that's a lot of money those apps three mine there's to us that's our subscription model Netflix and Spotify and two of them uber announcer it's a big reason that olivia is free but actually if you want to use the services you have to pay those us are free and they're saving billions and you're supporting infrastructure you guys are you in this room I don't appreciate for the fire here but you
know you know what happens when apps are free man but there's something is your day and that's cool nobody nobody cares it's it's even fun everybody knows everybody knows it and we laugh when we reach our contract and a family hue combination leaders they're your people have been sex that didn't fight right secondly music savvy in Saudi Arabia where you could get killed what if somebody reports you so that's a little bit less fun it was another example of data that was that was misused when he fell asleep wrong hands so we're in March 1940 Germany invades the Netherlands and that point was one
of the most progressive countries that we have in the world and they were a secular country and they had one of the most just ways of dealing with religion which means that they had a religious budget on their annual accounts and they split it accordingly to the number of the percentage of the population than was of one religion or not which means that in the census they knew what religion was that when some of the Germans coming they just obviously look and they have been name and the address of every single Jew in the lands that's where the Netherlands has the biggest in terms in
percentage and in absolute terms of Jews deceased during the to Germany in the 1940s to to see examples of how that a negative is you somebody knows about cameras and leading another their boomed we probably are brain breaks you probably if it wasn't for them you guys would have a different outcome probably that what-if scenario I've never read my favorite but it is for sure that they used things are tiny people that were on the fence and take
the vows to one science there's another person that used coverage on vinegar services another president and that you know you know how much you know how much he paid for coverage on video services mainly I guess how much this is costing win an election ten million low lower five million five million a cool by me your day you know pretty much everybody that has a Facebook account and you can go really deep now this this year this is the the former CEO of convertibility gun and they based their work on theirs so there's a researcher that's created by like long
time ago created souza algorithms within 150 clicks under 50 likes on Facebook they would know you better than your best friends they knew things about you the more things about you that your vestments if you are a closer today they found me right so these data is dangerous and can be used for the wrong things and this is happening right now does that make people not use these apps is that this is privacy really a value proposition look at how many users do we have what's up which is on fire but it's 1 billion daily users daily uses I am of them messenger almost 1 billion
did talk 200 million where you put your be using with everything you're almost half naked there they know everything about us facebook 1.6 billion that's a lot of people daily users and just for comparison let's look at this this weekend I look at the great I mean we like we're fine I think we need to group and I suggest that's we take another problem we take another approach we take another approach that takes an hour out of all these cloud services how do we get out of that our
simplest apps to get close even close to to the traditional access of the option well first of all I need to be free free okay yeah well what's the magic word convenience they need to be seduced they need to be convenient they need to be convenient as this this unspoken rule the Britons that assistance more or less a technology just because it's better this is a pelagic over the previous technology needs to be ten times and so we need to be we need to make things that are ten times better the things that are just the killer apps right now which are not Bolivian at this point and once they are free
a paper it's paper 8 and we're paying a lot of money to the swap provider so I suggest a personally on the stupid clouds and sheets the transfer of value from the cloud to the user but this is a current one right now where the data is paid well as the money comes from selling the data and goes to the cloud provider there's also other flows but I want to focus specifically on that flow of money because we have one thing that they don't have it's a native way to transfer value so I suggest that if I want to do a decentralized Spotify we do it like this we take the users to host this task for us for us how uses qualify
the patient I'm sorry for you you couldn't you couldn't because you don't have a house we can take some time we are the house of maybe you could put in the 80s clock should be fine so I suggest that here what we have supplied by some of the case young people's app that's ok we're gonna touch it well they be you and we transfer the value to the user we will far away from that we're far away from that and I'm gonna try to make a list of what pieces need to come together to create a model where these would work number one it needs to be as convenient as accessible from anywhere and all the time like the cloudy's this is not a 10x this is a this is a this is an error
medium we leave please and we don't have it right now it's a shame yes but we're working on this when working on the infrastructure side to make this infrastructure pair more accessible from everywhere so how we're working with our chivalry I'm going to use some tutor office concepts here hi the cluster is everybody knows what it is it's basically so it's a series of those that are connected and when the first one knows now the second one takes over our Chappell is developing a system specifically targets to eat the window so anybody can can start taking from their own homes giving a federation with your friends and you know goes down the second kernel takes over and then you
avoid being slashed because of downtime on your own so good we're getting closer to high availability here there's another thing called load balancing interrupts which is basically distributing the load through the doors for the servers that are there and there's networking over there who are doing excellent job on creating this this Marcus traitor right here that's the redirects the traffic or the transactions to the rows that are that are mined so high mobility with workload balancing we're getting somewhere but this is just the Navy this is not attacks another the results an axis through Putin scalability
there seems that I'm gonna help us get away scalability I'm not an expert on that I'm not gonna touch it but roll up with zero screws a human 2.0 play into true your guys are absolute experts on that this is weak we need it's up there meaning but we're starting to get somewhere with privacy this is the privacy wasn't a killer proposition wasn't a value proposition but it is just not only so it's not ten times there is four times right why do I say the biggest even the chance of using name try on top and the South Sudan and they weren't exactly the same they're exactly the same level availability and the same level of
transactions at cetera you will use them under strand but we're at the very mean right here on the infrastructure side what we can do to ensure privacy we can include in that hardware we can include a mime in social environments like mega wanna honest GX we can create and then with zero screws we can create that breathing those anklet and that's available for that users to do whatever they want in a secure environment also we've seen that the model means they worked for apps that has this way might work for somebody that was paying for subscription that you paid users Google hosted practice there's other months
there stayed upon for example which is a way more ethical way off of using the data so we don't have to just throw away all the data and we should be able to let people walk in on what data they want to give and remove another thing that needs to happen is in some direction stabilization pocket network is the window storage way and we know there are many projects out there and one of them will not give you enough money to run the project but if you stack them on top of the other on the same machine you start having a money box in your house that gives you that gives you enough money to sustain the
save the ball itself so that's that's not 10x yet there's one more component there need to be apps that people use and the people can use and they can be easy to use keith values it's not only UX and UI I'm sorry I should have changed that it's basically value proposition give value to the users most of the apps right now you so don't know who is familiar with the model here but basically when they do you say they trick you to use it all the fact they make you addicted they make you homes because the most killer happy this universe is it isn't half that's buses every time somebody from the other side
of the wolf leaves your life on your picture and that buzzes on your phone and you look it and then you like another thing whether you put it back into the pocket and then he buzzes again bigger song or person has click under something something as stupid as slinky is designed to make you addicted so when you develop apps please make sure you turn on the deal make sure that you actually want to use it and make sure that maturity improves feels like this is a way we're gonna add a step in competes at least with with the Kermode so what we're doing right now is taking care of the infrastructure side we are working on the first part of a person having these infrastructure being
available from everywhere through cinema TV through information everybody is very very much focused on that privacy were including s GX were including systems inside our offices that you can leverage for your naps and make it make them private and secure installation we with each people know this that will help us a lot but you need to do the last part you need to create apps that give value and I suggest that the next time you were doing a human centered design system to to create an app think about this well think about instead of give money to the cloud providers who I'm gonna take this data and they're gonna use it for condoms words think about
this think about making people post incentivize people to who's your guys if you want to know how to do it please get in touch we can help you design something there are top notes that will be hopefully almost as good as using PBS or an even more convenient and you rush [Applause]