Danny Brown Wolf on Orbs blockchain solutions for enterprises

0:19understanding a little bit more about the orbs blockchain could you first explain just the simple solutions on what does orbs doing in the blockchain industry and how are you guys helping consumer brands of course so orbs is meant to be a public blockchain infrastructure for existing businesses so rather than going after the token economy based GAAP that's

0:43controlled by a dao we go after existing companies existing tech companies enterprises etc and show them how the public blockchain can help their businesses that's great and one of the most popular public networks that uses smart contracts and daps is the etherium network I know you guys I believe are sort of similar to aetherium in a way but a little bit different could you

1:08elaborate on that yeah sure so we're similar to aetherium because of the permissionless aspect that's what makes a public lock chain public that anyone can become a node and anyone can participate in anyone can build on it but as a different from aetherium we are a blockchain that is meant for existing businesses so the there is no tokenization on orbs first of all yeah

1:34and the scalability is completely different it was built from the ground up for a completely different scale and different use cases optimized for different use cases so on ethereal one of the biggest problems I'm hearing is actually the lack of isolation for real companies so let's say you're building an app on aetherium as soon as there's a lot of there's a lot of usage the usage

1:58is shared because there's no isolation yeah so if ripto kitty's has a 2017 moment then all of a sudden your app gets slowed down you know go explain that to a CTO of lyft it's like yeah you know if the decentralised uber actually gets a get sucked up then you get slowed down and that's not something that a real business come up with totally and that's been a major problem with

2:26aetherium you know it could only scale so much and if there was one popular application the whole network and all of the applications are slow so it's interesting that you guys have integrated that isolation and that's great and maybe you could elaborate a little bit further does that have anything to do with the consensus algorithm I believe you guys are using

2:44proof of stake which is different than then theorems proof of work correct me if I'm wrong there and is that what's allowing for more scalability or is the isolation an extra part of that so the isolation is a completely different architecture that we learned by building on a theory on how we want to optimize for a different use case so I mean etherium even when it moves to prove a

3:08mistake is still not gonna have any isolation so what we did is we took a concept that exists in many networks called virtualization that's how cloud architecture works for example so if you have AWS application it's completely isolated from the next application so Netflix working on AWS is isolated from all the other ones but it's not going to get disrupted by the peak moment of

3:36another one so you have a shared infrastructure which isn't blockchain case is the shared node and validator system but you have a virtualized environment that's your own so it allows for isolation but also isolation from security hazard whether internal or external so if you think of the DAO bug on aetherium if one application has a bug in one of its smart contracts the

4:00fact that there can be a governance decision of the network to rollback the network as an amine as an app developer I would never or a business owner I would never agree to be on such a network it would be a big problem and here you have the isolation in the virtual chain allows for your own governance so you'll be able to make a governance decision to rollback only

4:25your virtual chain mm-hm that's very interesting because part of the reason why a theory I'm is set up like that is they're trying to go for you know a lot of decentralization and sort of fairness and you know code immutability and that's part of the reason why they didn't want to roll back the that when there was a bug they didn't want to roll it back because it

4:43was immutable but they did it anyway with orbs you guys have this isolation do you guys care about decentralization or do you think that's an important part and is it sacrificed by allowing more governance to each of the enterprises it is suck it's a we don't think it's a zero to one we think that each use case should be optimized and therefore it's not the

5:08infrastructures decision to dictate the level of decentralization there are certain guarantees that the infrastructure has to give and that's the essence of public blockchain those guarantees we a guide that we define them as auditability governance and fork ability and those are the basis of guarantees that the users and the partners have but though we like to give

5:35the bridge between the zero to one and leave it up to the DAP itself to decentralize either over time or to decide that there is only certain level of decentralisation that they would allow I really like that idea where the enterprises you know it's their business they should be able to control more of their own business and grow it the way that they see and what's funny is

5:56traditionally a lot of enterprise clients have been leaning towards private blockchains like the hyper ledger blockchain or other private blockchains where they only control it but you guys are more giving them a public blockchain angle and convinced them to go to the public blockchain yeah this is you know totally unique can you talk a little bit about how has that

6:16been convincing these enterprises and do they see a lot of benefits doing that so I think the example that they understand first of all is that they're scared of the absolute decentralisation the ideology behind it scares them not the actual logistics of it as at a first point so we come to them and say listen we are not here to create a decentralize

6:41– okay we don't we personally also don't believe that there's enough infrastructure decentralized infrastructure to allow for decentralized uber such as decentralized identity verification for drivers to make sure that they're not serial killers so what we want to do is come to Ober Ltd and say you have certain trust problems or you can provide a better standard of and compete

7:09on trust that would allow your partners and your users to trust you more like I have a problem as an uber user with surcharge okay they claim they give us a promise that surcharges based on supply and demand but we don't see the algorithm we don't see how the algorithm actually works and then you get all these twitter was just like explosions saying you know oh ooh BRR is

7:37actually raising your price if your battery's low or who do we know that you know that's very yearly reports are coming in and they want to make more money for the for the report so they raise the prices so blockchain would allow them to only have a certain part of their business as public and transparent and auditable but what they would give be giving up a little bit of

8:01control and sending data but at the end of the day they'll we believe they'll gain a lot more and competitiveness in creating a new standard for their users that will make them more attractive so enterprises understand that competitive that transparency and auditability and guarantees to users is a way to compete over users in creating new standards

8:23they understand it because you know once you start with 30-day back guarantees on products that becomes a standard across the industry and the first one that does it wins yeah so what the next step is to explain to them why the value is in public blockchain and not in private blockchains which is the easiest thing for them to do yeah though and we come

8:50in and we say okay well let's identify what is the value of blocks why do we use blockchain it is more expensive so it better be worth more the value that you get out of it and the private blockchains hyper ledger quarter etc define blockchain as a platform to collaborate but we've had DLTS and platform technical platforms to collaborate for the over twenty years

9:18for most use use cases and even if you do then it doesn't scale as much because it's not open and part of the value that blockchain gives is that open source being able to take open source to the next level so once they understand that if they need a network effect plus they need to give those higher level of guarantees through their users then public blockchain is the answer for them

9:44That's great Danny and with these enterprises how easy has it been for them to jump any technical hurdles you know they think blockchain is this new technology that sounds really confusing have you guys made it an easy onboarding process to be able to develop applications on the blockchain without having to learn blockchain 101 and spend years learning how to move to this new

10:08kind of infrastructure that's a great question so I think the first thing that we did is decide that we use common common languages so we use golang as opposed to creating a new language for blockchain so it's already easier for developers to hop on board and developer tools making them as easy as possible in creating libraries is obviously an advantage but I think a go-to-market

10:34that we did was actually come to the enterprises for a two to three day session with their developers because yeah blocking it's a new technology it can be scary they don't have means a CTO doesn't have means to assess okay you're telling me that this project is gonna take six months and this and this much developer power but I Ivan I have no tools to

10:56assess that I've never used this technology so we said okay we'll bring our developers to you for three days we'll create a proof of concept together in three days and we promise you'll see how easy it is and that's work really well that's great and have you guys already have some large enterprise clients that are running applications successfully and can you give any

11:17examples of anything great that's already live on orbs so the enterprise sale cycle is longer a lot of them are still under NDA for as long as their pilots and not in production yet but I will give one fun example of something that's already running on orbs that I personally love and is actually going to be developed in the future with enterprises on a larger scale and that's

11:42open rights so open rights org is built on the idea of having open access to rights management content rights management on the blockchain and in the internet in general specifically for user-generated content so a lot of the media companies that were with that we work with believe that user-generated content is the future whether it's of

12:10marketing journalism etc yep and they have a problem with being able to manage the rights okay we like this video that someone made in Hong Kong how do we access it how do we use it how do how do we maintain the rights and payment and blockchain is a perfect platform to do this on a large permissionless scale and new regulations are actually pushing

12:39towards establishing such an infrastructure jerk I don't know if you mean the European Union is a breaking the internet with its regulations and one of the things that they're doing that's already passed and has to be in effect in two years in all the EU countries is the copyright directive which is the copyright reform that forces platforms like Facebook Twitter

13:07Google to one pay royalties to content providers like treating it more like a radio station okay you make money off commercials or ads but the content creators aren't making any money you'd have to find a way to do some sort of rupture and royalties now the big platforms are saying how do we even know who owns this yeah and creating such a registry is a great

13:38solution well that's a great example so all the best to those guys and hopefully you guys have a lot more clients coming in that will actually make blockchain applications that can make a difference in the real world what is your guys's focus for 2020 is it just onboarding more clients and is there more development going on the blockchain as well so yes and yes we're

14:04moving forward on a few funds so the development of the platform is always ongoing as well as onboarding new clients taking pilots and making moving to move them into production there are also new areas that we're going to focus on one of them is really exciting for me personally is gov tech and NGO tech because my background is actually not technical I came to this world from

14:30foreign policy working in the United Nations and in think tanks and I think government government tech on in blockchain is very exciting because there are a lot of already mandated transparency in government practices so if in tech we have to convince the enterprise that there's a certain paradigm change that they have to go from close to open when you go to

14:56government they're already mandated to be open and transparent they just don't do it very well and if you one of my favorite use cases for example is a public procurement so the OECD identified most fraud in countries happen during the public procurement process and sending the bids for example to smart contract then all being encrypted at the same time and

15:24decrypted at the same time with no one having access to them internally or external attacks all of a sudden you take an existing process and you make it a lot more transparent but as a result clean of fraud definitely that makes sense well we're running out of time Danny but I really appreciate you coming on the show today and teaching us a little bit

15:46about orbs it's been a pleasure having you on here and I'm looking forward to following up in the near future with you guys thanks for having me