Unlocking Crypto's Destiny
ETHBarcelona Talks · July 2024 · 21:28
Amir Taaki reflects on what crypto is ultimately for and what it could become if its original ideals are kept. The talk takes a political and philosophical view of decentralisation, autonomy and the direction of the movement. He frames crypto as a tool for personal freedom and questions whether the industry is on that path. Presented at ETHBarcelona.
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From ETHBarcelona Talks, hosted by ETH Barcelona.
Transcript
guys uh this next speaker is going to come talk to you guys about unlocking crypto's Destiny please make him feel very very welcome put your hands together for Amir [Applause] Taki okay so this is my presentation um you know dark fires and L1 for uh making Anonymous engineering okay um it's it's wild like when you think of people in the west how uh they are constantly bombarded with uh propaganda and the way and in the way it like limits people's imagination that uh in the same way that there's this like
mental gravity that people who they uh were growing up in the Soviet Union they couldn't imagine anything outside of the Soviet system it was just it was just too hard for them to imagine and really similar now that everybody is uh goes you know nation states you know that's always existed in my lifetime it's it's you know inevitable that's how it should be and um you know cryptocurrency it literally uh renders the business model of nation states obsolete uh you know industrial era brought uh Rising Returns on the use of violence uh which nation states were uh used basically extract
resources from society and you know they constructed standardized armies with as a bargain with citizens uh rather than uh the tribes and communities that existed in the social orders uh before but we now live in the information age which changes everything and this has enabled new means for society to protect itself from extractive violence so that's that's like a picture of the Dark Forest the forest is it's it's a space it's it's different to the uh the desert landscape the nation states tried to create the Monopoly tries to create a forest it provides cover it pro uh enables uh cyber gorilla gorillas to move to protect to be
protected and so that's our our role as cyber revolutionaries to grow this Forest to Inc increase the diversity of the of the natural landscape and um and you know if you look up hard power on Wikipedia it defines it as military and economic power but uh I'd argue there's a third new category cryptography and this renders nation states increasingly ineffective and obsolete so uh in the last decade we've seen a huge uh Boon in new powerful techniques uh latest iteration MPC hzk that unlock new design spaces we haven't really explored before and the proverbial Dark Forest is a safe
haven refuge for the Cyber gorilla that provides uh cover and concealment it opens another front in the struggle for Freedom as Satoshi said uh darkfire as a project uh we coordinate through fully Anonymous uh for example like uh you know we think it's a lot of the crypto space is corrupted by Silicon Valley ideology people use Discord Reddit Twitter proprietary software VC Capital which is stolen through money Printing and actually this is blinding people to create technology for the agarist parallel polace Paradigm and that's why a lot of the tech that we see now is absolute crap and like more of this garbage apps that don't work at all
rather than being really novel and libert liberatory so yeah crypto will split in two uh it's an idea whose time has come you know nation states were born from an industrial era when people use words like command and control Central planning were popular uh but now diminishing returns to violence has render nation states business model Obsolete and the incentive with online digital markets is for efficient peer-to-peer and Democratic governance if crypto means anything about the law it means [ __ ] your laws uh there will be a RFI crypto which is regulated and above ground it will be
hugely encumbered and impossible to use all the interesting uses of crypto will be regulated into Oblivion and there will be dark fire underground and unregulated it will be free and Unum this is where crypto is free to explore its true destiny and true self and come into being so we're creating infrastructure for this movement to stand its ground to innovate and push forwards uh crypto cryptocurrency cryptography it's fundamentally antagonistic there's no resolving this dilemma everything about useful about cryptocurrency is about circumventing the state civilization Paradigm for example new Financial flows so otherwise blocked uh you know people now they're like oh we can play we can
do this dance with the state we could you know uh uh dance together and you know people are creating crypto Banks and Bitcoin ETFs and Ne they're never being accepted always blocked always being uh blocked and you know uh and and then you know people playing with offshore Havens and you know the the regulatory Arbitrage and Moun complexity as The Regulators close in and you know that type of activity cannot last long term you know uh it's it's just purely defensive you know the meme privacy is normal you know what about privacy is is about expanding the space of Freedom expanding outwards you know um so especially as crypto comes into its own being and fulfills its destiny that side
of crypto will become less and less uh sustainable so I don't believe any of the us-based heavily VC backed crypto companies are truly prepared to weather the storm or participate in this struggle their rhetoric is just lar like you know using Discord you know using GitHub Etc so um so crypto will make people more autonomous than ever before you know States will behave ruthlessly they will combine the IRS with the CIA but it will have no effect they'll be forced more and more to bargain with autonomous Society on our terms and people through Dow's an anonymous crypto finance will
declare their economic independence when people conduct their own economic policies over the Internet it will cease to matter that the state controls the industrial era money printing so you know their importance for controlling the world's wealth will be transcended by mathematical algorithms credit currency controlled by anonymous online markets will supersede fiat currency issued by States so so the crypto markets will make it increasingly costly for the state to operate as it loses vital Revenue um and as this as this breaks down you know crypto crypto essentially eats the
sacred character of the nation state crypto forms its own morality and dissolves the Paramount Paramount power of the state you see that like when you argue to Boomers about crypto they just don't don't get it it's just outside of their morality so it's it's something new so cryp cryptocurrency is uh is where is this anti fragile parallel infrastructure um you can see the you know when the Crackdown begins it Forks into two and there's a spiral effect the fragile systems shatter and descend and the anti fragile ones uh rise up so uh transparent crypto is fragile so in an adversarial environment it cannot
survive uh they break Under Pressure uh in an anonymous and so there's in an anonymous system this feedback is reversed so the more surveillance crackdowns the more it vindicates and drives users and value into it uh so you know cryptocurrency and and so you see it here Crackdown begins you know Rising poal Consciousness Etc so um you know Krypto right now is under attack from all sides you know we've reached a new phase in escalation in uh in the conflict against Krypto and we're splitting into regi and darkfire and regi is the anti- Krypto darkfire is the true Spirit of Krypto and and darkfire
is really the only project that's preparing for attack so this is Jay Stark he was assassinated by the German State he made an automatic uh fre printed rifle that was used by the freedom fighters in Burma is used by uh fighters in Ukraine as well it says you know you Lop off the head of of one Hydra and another pops up it's impossible to stop and you know I give another another phrase is uh via Vendetta he goes uh beneath this mask is more than flesh beneath this mask is an idea and ideas are bulletproof so uh darki is an L1 uh uh for anonymous engineering you know we just released we have our
testnet Alpha uh environment for general purpose Anonymous smart contracts um so let me so um Anonymous engineering it refers to the concepts processes techniques used to design and Implement Anonymous applications it's uh it's still a nent paradigm everybody right now is is is doing the wrong thing they're like okay you know they learned the wrong lesson from history essentially which is uh which uh um the reason C W out over lisp is because C was more closely matched underlying hardware and it's similar with the cryptography paradigms we're using now you right now everyone's like okay there will be a rust developer
and he'll write some code and he doesn't need to know how how anything about the cryptography it would just transparently uh compile into an anonymous contract and and execute uh and and they're basically overcommit in a path dependency to a path that will later probably turn out to be wrong and so that's a wrong approach um so uh our goal is to create a fusion Between Two Worlds the creative uh space of frictionless innovation on ethereum and the crypto anchus ethos of Monero we're really building for the long term um The evolutionary endpoint of darkfire
regi is a regi self-destructs darkfire is Vindicated as the true Spirit of crypto so we're really positioning ourselves to drive The Narrative of the next cycle and capture the value that migrates from uh fragile systems so so that that's essentially the why of dark fiber the how is this concept of uh Anonymous engineering so uh right now uh there is this revolution in privacy technology because of cryptocurrency in the last decade there's been this huge uh investment into uh distribute system and cryptography honing very powerful techniques and these techniques are becoming available to Developers for the
first time and we can use them to hack and to construct applications so you know and and even in the mathematics side the uh before uh we used to use a lot of very simple number Theory Concepts then we started using elliptic curves now it's increasingly going into high order math like algebraic geometry and algebraic number theory for example recently you know I was as helping the manaro devs uh make a fast Vector commitment scheme which uh uses some very deep property of of something called devises and and vile reciprocity and right now a lot of the cryptography is just using polinomial rings but there's a vast expanse out there waiting to be explored so it's um it's it's very
exciting Time new doors are being unlocked we're just beginning to walk through them and it will open up new design spaces that were never conceivable before so in in terms of darkfy um our Edge is in creating this Advanced toolings you know I I mentioned Anonymous engineering you know you want to create an anonymous application there's a process where you formalize a schema into algebra and you implement into smart contract infrastructure and as this Anonymous engineering Paradigm evolves we provide the tools and darki provides abstractions and Primitives empower the anonymous Engineers so this is what we mean when we say Advanced anonymous smart contracts a lot of the ZK ones they're just abstracting
application development and providing a ZK proving system for execution but we're thinking a lot more expansively and exploring and expanding the anonymous application design space so uh let me give you an example this is uh the anonymous style so uh when you vote in the anonymous sty uh members create encrypted votes using a special encryption primitive which um you know they create uh homomorphic encryption which you can use do using elgamal and then once the Voting is finished a dow member performs an addition on these votes and he publishes uh a proof of the vote passing a majority so the votes are encrypted
using a verifiable encryption scheme a member comes he adds them up he publishes a ZK proof that they pass a threshold and then this required majority is a parameter that is set inside of the Dow so Dow is a commitment has several parameters and then this allows money to be anonymously debited from the DS treasury so there you've got Anonymous protocol and liquidity so you can already see there are many different techniques that are chained together to construct an anonymous application that is uh Anonymous engineering so and is uh Carl Sean says if you wish to make an agorist parallel economic system you must first invent dark f uh so uh you know back in uh uh back
in uh uh 2012 we were all like La Fair the free market you know this uh is inevitable it will just inevitably get made you know we just have to sit back and watch it happen it's 2023 we haven't seen the agarist parallel economic system manifest so obviously we're doing something wrong with' how we've organized and you know how we've been working so what do you need for AG parallel economic system one pillar is the coordination tours so we have the most Anonymous chat that exists in the market like it's there's no concept of identity you can change your nickname will uh you have a key pair you you and
and how do you protect against spammers you can have a key pair you stake on the key pair and if you uh send too many messages in an Epoch then your keypad will get slashed and then you have to uh stay again uh and you know we have an peer-to-peer Anonymous task management system I think I showed it here so this is the this is where's the chat is the one on the left the task management is the one that's inset there uh this is a dow you know uh okay and then what do we have now we have uh Anonymous payments multi asset so you'll be able to bridge from E transfer around uh do swaps we have the Dow nfts then uh Post Main that then the
most important part will be ecosystem whole bunch of ideas there I'm very interest in information markets where you know if you have a movie or a file or a document you want to you want to sell you can authenticate that it is what it claims to it is uh for for a protocol and then people can bid an auction to decrypt the file uh also markets you know nobody made a peer-to-peer local Bitcoins or at least not a good one yet that was a really good application we need that uh why is darkfire ahead of all the other projects uh number one the advanced Anonymous engineering Paradigm you know it's not something theoretical we have it here and now on the test net uh we're the only project that has Anonymous staking
that protects validators against censorship uh also no trust is set up and number four uh we're the only project that has Network level privacy with pluggable transports in our peer-to-peer network with Toro Nim again I didn't see any other project that has that yet and uh Unix we're in a similar situation today you know everybody's like pouring money in these big projects you know uh hiring huge amounts of team that bump their valuations up you know uh they're they're stuck in this scam game and similar thing happened in the 70s with the OS Wars there are big operating system projects and a small group of devs quit from the projects because they would because these big projects were massively over budget and
overrun and they were trying to do the perfect they were trying to implement the perfect Theory uh that was that was made in Academia and the dev said you know like let's show these guys how it's done and they just took the ideas and radically simplified them and delivered to the market dark f is the equivalent of the Unix in there and they just completely all the other projects died and Unix was useful and it came to the market and it got adopted and and ended up uh uh being the basis of all the modern operating systems we use today and um and lastly and also uh you know all of the interest in Tech comes from belief or vision and you know uh the core of our argument is uh invest
in self Sovereign infrastructure because bending on regulated crypto is investing in your own demise and we published our thesis which if you go on Rex news re KT news and you search Rex Luna pun um we published that two years ago and more and more we're we're just seeing that our thesis is Vindicated that at this point is practically inevitable that necessity will drive the dark five value proposition and dark five will be a strong market leader and we will be triumphant and I even have two minutes left
so I don't know if there's questions but I can just finish as well yeah any any questions we got a question here if that's okay shout please all to bring a developers to build on dark fire right because majority of developers not all of them right obviously here are a lot of anonymous ones but they try to build applications usable for bigger markets let's say so I think what is like your strategy out there okay what's my our our strategy to bring developers so uh
it's to train developers and to uh create soft power so we have a lot of devs the come into our chat all the time and they're like we want to build on dark fight and the only way and I see a lot of projects doing sign very inauthentic which is as I said they're trying to bump their numbers so they're like you go on their docs and it says uh build an anonymous application hello world in three easy steps it's kind of nice having it like like that's the vibe of the room you have to vote should we have a vote construct a intentional Community vo against uh like for example it's the tone of there was this big myth of Wikipedia and open
source where Wikipedia was like um all across the world everybody is contributing one sentence to this encyclopedia and open source everybody's contributing one line of code each and boom we have this big complex software but when they did the analytics they actually found there's very small group of developers very small group of contributors on Wikipedia that built the maor maity of it it's like that with with any any projects and how do you Foster that intellectual fabric that core which a lot of all of cryptocurrency now is not investing in that that's the that's the big tragedy of crypto so that that's what we have to address and that will be where we can
reclaim our source of power which we haven't been able to claim so far anyway I run out time thank [Applause] you