template for solving the worlds problems with incentives

In this post, I will try to describe a template of how to solve the world's problems with incentives and what types of processes and problems I’m interested in solving,  bye inventing new types of assets that preserve internal value.  Each process or asset does two things - they reward people for good behavior and create an asset that generates independent value for them and gives them a way to store the value of their time. To build this template, you need to know a lot of areas very well - how to build communities, what tech to use  how to make your template accessible to people, which building incentives to in place, how to solve the right problems and more. I hope more people join me on this mission to create a brighter economic future.

The template solution I will explain here can only solve the first part of the problem and a small part of the web3 stack. To solve the rest, the world needs new tech. TCR +oracles just aren’t enough.

What to solve

I was inspired by two books - radical markets and 21 lessons on the 21st century, which propose to solve “political economy problems,” which I wrote about here. and which the UN define as a sustainable development goals

In addition, I believe that financial innovation can be achieved only if the web3 stack will exist. As such, we are eager to help and support teams that seek to build the web3 stack.

  1. Political economy problems:

Here I will tackle the big questions regarding how markets, politics, society and technology intersect.

  1. Overcoming global problems: ownership of data, global warming, global unemployment, immigration to Europe and to South America from war-torn areas, existential nuclear threats, running out of clean water, diseases without a cure and more.  These global problems can also be solved by commoditizing our public infrastructure.

  2. Change processes that we take for granted: like property rights, public and commons, political points of view (liberalism mostly) and what they mean.

  1. Nurturing communities around a common identity by promoting good behavior that supports community goals: religion-based communities (financial incentives), nationality-based communities, incentives for good behavior, etc.

B. Web3 type of problemsֿ\components:

  1. Core stack components :

  • Trusted execution environment - oasis with ekiden

  • DNS- handshake

  • Mix network pocket routing - kovri by monero

  • Block delivery network - BloxRoute

  • Full state sharding and cross chain communication - Polkadot and Ethereum

Consensus layer - Over a dozen teams, but no better solution to pow has been developed: * BTC, ETH, ,Zec and Monero - ASIC-resistant pow

* Kadena- braided pow

* Chia - post and poet

* Filecoin - useful post (proof of space time)

* Polkadot - honey badger pos

* Solana - proof of history

* Ripple, Avalanche and Sellar - ledgerless consensus

* Bytball, Hashgraph, Daglabs and Blink - block dags

  • State transition machines -

Ethereum Virtual Machine (EVM)  – Ethereum 1.0, Ethermint, Hashgraph, WANchain, others

Web Assembly Virtual Machine (WASM) – Dfinity, EOS, Polkadot, Ethereum 2.0

Direct LLVM exposure – Cardano, Solana

Custom state transition machines

  1. Extended stack components :

  • Sidechains: Liquid and BHB in Nitcoin and SKALE in Ethereum

  • Dapp browser - Metamask, Thoshi for Ethereum and Acatter for EOS

  • Payment and state channel - Lightning Labs and Blockstream in Bitcoin and Raiden and Celer in Ethereum

  • Cross chain intermobility - Interledger

  • Query Layer- The Graph

  • Immutable structured database - Bigchaindb, Orbitdb and Bluezelle

  • Decentralized cloud APIs for - maps, sending emails, and more, so dapps can be included. Some examples include: Foam, Livepeer, Ox, Kyber, Storj, Sia, Oracle, and Civic.

The examples I want to touch on use TCR and libraries to solve the first categories of problems and an API for developer components via TCR.

What is TCR:

It's much easier to understand token curated registries (TCRs) via examples, so let's briefly explain and then dive into two examples - foam (location) and  Nature 2.0.

In short, TCR is a self-centric incentives mechanism that is built to benefit the common good.

The product or output of a token-curated registry is a list. Humans have a penchant for list-making and lists abundantly appear wherever we may go: shopping lists, lists of “good” colleges, lists of America’s most wanted criminals, and more.

A token-curated registry uses an intrinsic token to assign curation rights proportional to the relative token weight of entities holding the token. So long as there are parties desiring to be curated into a given list, a market can exist in which the incentives of rational, self-interested token holders are aligned towards curating a high-quality list. Token-curated registries are decentrally-curated lists with intrinsic economic incentives for token holders to curate the list’s contents judiciously.

3 actors in every content curated registry :

  • Consumers - they want to consume the registry and want one that is high-quality

  • Candidates - want to be in the registry because it financially rewards them. They stake the tokens to apply to the list; if rejected, the tokens are proportionally removed to token holders. If accepted, the token is staked.

  • Token holders - want to increase the price. They must remain unbiased and so they can't be either of the other actors.

Actions taking place in the economy:

  • MIN_DEPOSIT- number of minimum tokens a candidate locks

  • APPLY_STAGE_LEN- period the application can be challenged

  • COMMIT_PERIOD_LEN- duration which token holders can vote

  • REVEAL_PERIOD_LEN-duration that token holders can reveal their votes

  • DISPENSATION_PCT-The percentage of the forfeited deposit in a challenge, awarded to the token holders as a special dispensation compensating for their capital risk.

Authentication for a reliable listing :

It is important that listees and consumers establish at least one de facto means of authentication which both can support, or the registry will ultimately be unhelpful.

One step further would be to attach label-specific rules. This allows to model interactions and links between TCRs. Many interesting use cases follow: permission groups, data governors, policy with hierarchy and escalation, funnels for reputation and standardization, curated knowledge domains, social graphs and groups.

An example for another way to accomplish this goal: Finite state machines (FSMs) in a curated context.

Recent examples and how will they work: Foam and AdChain

  1. Foam:

Foam is a successful version and example of TCR building. It is successful because of three elements: a.  reliable oracle system Crypto-Spatial Coordinate (CSC) standard which makes every address a geographical point , its reliable because of the utility its function - decentralized map api for the decentralized web3 ( 70% of the world is unaddressed, including more than half of the worldʼs sprawling urban developments. And google maps are biased towards public facilities and businesses ), b. because of the incentives on doing this work and because of the ease of use and ux demonstrated by  Spatial Index Visualizer.

  1. Crypto spatial coordinates: which includes proof of location and the API’s geospatial interactions on the Blockchain:

  • Crypto-Spatial Coordinates (CSC)- Currently, there are no standards for embedded locations, physical addresses, or coordinates in smart contracts. For smart contracts to remain interoperable, they will need a shared language to reference and index the physical world. The FOAM CSC is a starting point for this shared location standard, allowing any smart contract to make an immutable claim to an address on the Blockchain and a corresponding location on the map.

They usw the geohash standard as a basis for this construction, because of its conceptual and mathematical simplicity. Despite using the word hash, the geohash is not a hash in the cryptographic sense. Instead, it is a self-similar, space-filling coordinate system.

A key property of the CSC is that it is verifiable both on- and off-chain. This means that:

  • The relationship between a CSC and its constituent Geohash and Ethereum address is completely deterministic.

  • A smart contract can take a CSC and decode the location and the Ethereum address associated by the CSC. Currently, this is done via registry contract.

  • Two smart contracts should be able to compute their location and spatial relationship on-chain.

The approximate resolution of a CSC is 1 m2. This resolution is rather arbitrary, but allows for a maximum of approximately 500 trillion locations.

The difference between dynamic and static proof of location:

  1. Incentives system and ruleset:

People who want to add a location need to stake tokens. Once the transaction is confirmed, the point becomes a candidate to be on the registry. During this application period, the validity of the point can be challenged by cartographers curating the map.

All three stages are presented here - The Foam TCR map displays points of interest in three possible stages. Blue points are candidates waiting out the application period, which can at any time be challenged. Red points are points that have been challenged and are currently being voting on by token holders. Green points are verified, have already been through the application process and are approved as valid points on the map. These points can be challenged at any time as well. The map allows filtering by the stage of the points as well as by metadata tags.

  1. Spatial index visualizer

  1. adChain Registry- which sets out to provide advertisers with a list of websites that offer high quality inventory for serving digital ads

For an example for how TCR can be used to solve climate change, check out Nature 2.0.

For an example for what tcr can be used to solve climate change go here - nature 2.0

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