***Please note that this is an automatically generated transcript and will contain errors.***

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The website and I have a lot of I. Oh. Which is a, you know, like, you can you can see the major, trends that the model coefficient. So it sounds wrong. It's right. However, it's helpful, but also it has a, you know, major flaws. For example, according to the I o which is the website I just mentioned, it can be difficult to identify if any two notes are actually secretly, you know, being, being being run by one, one party.
And also like when we say independent actors, what exactly does it mean? It doesn't mean like, for example, our family members, independent actors are employees of the same company. In the same company, in different actors. Maybe the answer is yes, but it's it definitely. It is definitely much less independence. The two actors, or two entities who never met in real life.

Right. So, here's another extreme example of, you know, like, Nakamoto, efficient, which is maybe obvious. This is the, if we're talking about Bitcoin, Nakamoto coefficient, this is the the hashrate distribution of today. I just took it yesterday from somewhere. So we're gonna see that because the coefficient coefficient is three. Why? Because as I asked you in chapter three and four and I asked people that you are already consulting majority of, you know, computing power, right.

You can already, very easily perform 50 work tax. So I don't subscribe to this the way but this does show you that, you know, that metrics can be used in, in, in some cases. And, you know, it feels to tell if feels easy. Reliable feature of centralization. So okay, so one partial we ask is when our tech, when our testing network.

So from the naive view, that's what you people values. Your night view is that you don't have time. You have a very mature view, but a very nice view. Is that if you follow the protocol, you will get a, steady income over time by securing network and by contributing, doing your transaction violations and so on, so forth, is that if you if you choose to attack the protocol, then, you should seek you most likely will get a lot more instantly.

This is a nice view. In reality, the realistic view is that, because as a writer, you have skin in the game. So you check with protocol first. You will lose your reputation. You will lose your trust. And second, if you succeeded in attacking networks, then the value of network will drop significantly, meaning that the, you know, your price of protecting networks will be much will be less valuable.

So, so in practice, you as a value attacking network is not it's not doing if it's not profitable. So don't do that. Okay. So h ow about also what if you have nothing? I think if you're outsiders, you don't get anything by following your source code. And you do have something by attacking a like you do get something by attacking networks, right?
This sounds like a good deal. You probably should try. What can I do so the most. So far, the most come, most of discussions about decentralization have centered around, like economic models or technical, more technical attacks. There is a even simpler way to attack the network, which is directly going behind values. So okay, then it comes to the our topic today kidnaping.

So kidnaping, metaphorically it means that, you know, gain control of validator, stakes without paying economic, economic costs upfront so it can happen. Many of us, for example, legal jurisdictions, the government can legally or illegally seize the various entities that companies or whatever under its jurisdiction. Right. So we all know this this happened in the past.

You happened in China, you happened in Iran. You have the in some other countries. And the second thing for infrastructure providers, right. So infrastructure providers can choose to of rapidly terminate hosting of crypto related activities. And you know, just keeping our values out of network. This also having a pass. So we probably know that in 2022, there is a data center provider called, Hagner, which is like a very, very popular developer.
Writers in Germany, they are known as like providing cheap options and stuff like that. They suddenly changing their also is, you know. Oh, okay. Wait, friends or, you know, crypto currency activities. You're not allowed to do mining. You are not allowed to do running a validator, running a full node. You're not even allowed to store blockchain data.

And they don't explain why they just kick you off suddenly. So this graph shows that, well, when that happened, there were close to 17% of the Ethereum validators are actually running on the server. Right. So this is horrible. I remember, if I remember correctly, that also impact a few, quite a few other, you know, networks, including Solana and a few others.
So this is this is not how pathetic this is. Well, and then and this is a fun one. So think ownership. What it means is large, large players can roughly buy out critical values and then, you know, can get massive control. So one example which is, you know, profile here, for example, if you like look at lighthouse, it's a one point billion and a lighthouse control color control 77% of Ethereum thick, which means you can you can send to one building to buy a little and then you can suddenly control 31 billion.

It's a good deal actually, especially if you if you think of it in another way, if you actually want to control 70% of Israel, you if you want to buy some percent of theorem, you're going to pay much more than 31 billion because you are you know, you were doing out price. So this actually not not a bad deal if you ask it.

Well it doesn't work like that. How you can like buy one building of lighter and like control. But you do instead because you cannot buy it. Or what do you mean buy buy, buy buy buy in USA. You know, it's not only become the actual control like control entity or metal person of lights. So I have also, you know, happen, you know, what happened because lighters operated by, let's say 38 different like entities.

How how can control it exactly. So that's the piece that, you know, which we should not talk about here because similar to the Bitcoin thing here, you can also say, oh yes. Even even though you have sales here, you say, there are three, three entities controlling most of the hash hash rates. In reality the argument is that, oh, I can, you know, if I am contributing to, to this hash pool, this mining pool, I can just like, you know, slide out and switch to our pools that actually do something else because it is something.

But the counter argument is that you are still you are still connected to the. So. Right. This is a very controversial one, like we're having talking about the centralization debate between like which one is more decentralized? Bitcoin, Ethereum. This is primarily the the center. I will call this people, people who think this Bitcoin is more, more decentralized. There was a oh you're like a little look at that.

It was more centralized point in my opinion. It's going to do more centralized state dependency. Yes. But people I believe many people will agree with you and the many people will agree with what about ripple?

Let's I mean, right there there are many means, when we talk about centralization, actually, okay. So, yeah, we're talking about something here. Yes. Okay. So, and that's going to list, social going. Right. So everyone here knows about Rosa Park. It means that, you know, yes. You have like, you know, before, you know, quantum computing before called, computing.
You can use a, you know, five for the rest to actually, you know, ask someone to give up their private keys so you can, you know, take other, older assets. Unfortunately, the same version, the similar version, a variant of that exists for virus as well, because, you know, sometimes viruses just gather together physically to have technical discussions.
We have all kinds of like parties, events that cross vulnerability, like physical vulnerabilities. You know. Right. You just like party and attacks. It's like convenience. So I think, the the point of this is that even though even though, you know, traditionally most of the decentralization discussions center around, like, you know, it's not like economics, attacks or techno attacks, all the methods we, we just talk about, they they also, they, they can complete bypass roll safeguards and then, you know, directly impact, the entities or the person behind behind was not speaking of those physical notes.

So, which emphasize the importance of optimization and not just geographic, but also economically, legally and operationally. So then the last, last question is how do we identify the cost of kidnaping? So, there are a bunch of like, more objective metrics we can look at here compared to like a model coefficient. So for example, you know, a sense of how many system numbers we can use that to identify the server networks.

So this one is very straightforward. And then SSL certificates, like we look at the countries and then we kill them by mutual legal, system treaties because, you know, you know, like countries who has this ML 80 things, they, they are likely they're more likely to cooperate with each other and, you know, take actions to enforce, values, or at least to put them out of business or, you know, whatever.

And the third thing is activity correlation. So what that means is, for example, are you offline? Are you always offline? What else in time are you, do you always like, upgrade your software versions at the same time, or do you like when when it comes to loading? Companies? Loading. Do you always vote the same, same options, right.

There's another way. And then, the finally, there's another thing, we can can do here to, to make sure, you know, to, to try to identify the behaviors behind, behind us, which is identification. So you are providing a can you, can you attest to your identity? Can you prove to us we are now, you probably, you know, we are operating a web for you to send to us.
You probably don't want to reveal your real identity, right? Even though you are somewhat professional, you know? Validator. So that is, you know, something real we can give you for free. So, with real, you actually give real if you anyone ability to connect to any existing APIs, either web two or Web3 any if you guys with encrypted credentials and with encrypted, encrypted results.

So with that, you can very easily, attest to your, you know, identity. If we travel, let's say this network, let's say we want to recruit a you via there who is a Ukrainian or something like that, that we you can leverage this to prove that you all you are a Ukraine citizen and but without without actually revealing to the to the world who you actually are.
So something like that. Yeah. I think this is the last page of this. So, yeah. So we, you know, we we are just, ourselves, building the first real blockchain out there. So please follow us. Plus a real issue on X. How do you do the, How do you like it? Yeah. So, yeah.
So, the way we do an earlier session is that, the more general mechanisms that we provide a way, for a developer to specify in their own general program, say that I want to connect to this URL, and this is a credential which is encrypted so nobody can see it or see it probably succeed. And you can provide the parameters.

Come provides the filtering for us to apply to the results from, from the, from the API. And then you can get it, you can get the data and you can immediately use the data in your smart contract. So you don't you like it feels like it feels very much like writing a async async calls doesn't make sense.

So yeah. So the imagine imagine you are connecting to your DMV. Let's say there's a simple API that you can connect to the DMV. And this API will tell you, oh, this person is indeed larger than, 2120 by yourself. So we can you are allowed to go to a bar, to, to have a this is this is done for a one line and then call in your small contract.
There's no infrastructure calls to for you. Oh there's no you know you don't need to pay Oracle whatever money. Well, like, how do you create the alias. We always we, we use TS. Okay. We was we use verifiability. And so confidentiality provides, how can we make sure that the API we are calling is not for you?

Yeah. The use of this. Yeah. But, like, how do you make sure that, like, the person you're calling from the other side is the correct reference? Or if you don't use it, it's actually. Yes. So as long as you have to you have to be outside, for example, you have to trust me. Would you have DNS hijacked so that's on this network.
It's also like you can tap anywhere to I the same. So there's something kind of like, you know, also on the cosmos on solving is.