From Speculation to Utility - A Blueprint for Mass Market

Decentralized apps (dApps) are supposed to bring about a revolution in how people transact and connect via blockchains. Yet, after waves of marketing hype followed by phases of software development, even the most popular dApps only have hundreds of daily active users.

Cardstack’s founding director Chris Tse will analyze the current barriers of user adoptions inherent in the current generation of blockchain protocols and introduce the missing components that will fill in the usability gaps in the Web3 software stack, making way for real-world usage that will fulfill the speculated growth of decentralized networks.

A version of this talk was given at the Blockchain Futurist Conference in Toronto, Canada on August 15 2018.

Transcript

1. CARDSTACK
   From Speculation
   to Utility
   A Blueprint for Mass Market Adoption
   V14
   CHRIS TSE
   Founding Director
   Cardstack Project
   @christse
   

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2. SPECULATIVE VALUE
   TIME
   Speculation vs Utility
   The 2 curves that define the crypto market today
   UTILITY VALUE
   TIME
   ETH-USD Rate (1y) from Coinmarketcap.com
   

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3. ECOSYSTEM VALUE
   WE ARE HERE?
   TIME
   From Speculation to Utility
   Scenario 1: “User adoption is around the corner”
   

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4. ECOSYSTEM VALUE
   TIME
   From Speculation to Utility
   Scenario 2: “This is going to take a long time.”
   THE
   ADOPTION
   GAP
   

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5. The Adoption Gap
   INTERESTED IN DAPP
   USE THE DAPP
   Ideal new user flow
   

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6. The Adoption Gap
   Reality of what new users must go through
   INTERESTED IN DAPP
   BUY ETHER
   WRITE DOWN RECOVERY PHRASE
   INSTALL DESKTOP APP
   TRADE FOR NEEDED TOKEN
   SEND FIRST TRANSACTION
   USE THE DAPP
   FUND WALLET FOR GAS
   GET METAMASK EXTENSION
   SIGN UP FOR BINANCE
   GO TO COINBASE
   WITHDRAW TOKEN TO WALLET
   

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7. The Conversion Funnel
   Each step causes drop offs that kills user adoption
   100+ MM USD WORTH OF INTEREST
   BUY ETHER
   WRITE DOWN RECOVERY PHRASE
   INSTALL DESKTOP APP
   TRADE FOR NEEDED TOKEN
   SEND FIRST TRANSACTION
   FUND WALLET FOR GAS
   SIGN UP FOR BINANCE
   GO TO COINBASE
   WITHDRAW TOKEN TO WALLET
   GET METAMASK EXTENSION
   67 

   USERS
   

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8. The Conversion Funnel
   This is the scariest number in crypto
   100+ MM USD WORTH OF INTEREST
   67 

   USERS
   -99.999%
   

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9. Beautify the Cryptography
   DApp 1.0
   Blockchain
   

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10. Orchestrate the Complete User Flow
    DApp 2.0
    Blockchains + Protocols Application Hosting
    Token Availability
    

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11. 1: Token Availability
    Starting using DApps with zero friction. Exchange tokens and settle later.
    DAPP 1.0
    Pay with Coins Pay with Card
    DAPP 2.0
    vs.
    

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12. s1 s1 s1 s1 s1 s1 s1
    Built as Silos Integrate as Layers
    2: Blockchains & Protocols
    Assemble the best parts into a cohesive experience
    s1 s1 s1
    s1
    s1
    s1 s1 s1 s1 s1 s1 s1
    vs.
    DAPP 2.0
    DAPP 1.0
    

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13. Do It Yourself Do it for Me
    3: Application Hosting
    Meet users where they are. Let them gradually take charge.
    DAPP 2.0
    DAPP 1.0
    PEER-TO-PEER OPEN WEB
    Cohesive User Experience (CUE)
    https://www.
    vs.
    Let user choose
    

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14. s1 s1 s1
    s1
    s1
    s1 s1 s1 s1 s1 s1 s1
    Frictionless Payment Cohesive Experience Convenient Access
    Cohesive User Experience
    (CUE)
    https://
    DApp 2.0
    + +
    

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15. Frictionless Payment Cohesive Experience Convenient Access
    CARDSTACK
    Open Source Framework for DApp 2.0
    + +
    For Developers
    GAS-LESS
    TRANSACTIONS
    JUST-IN-TIME
    TOKEN PROXIES
    DIRECT USAGE
    PURCHASE WITH
    FIAT
    PAYMENT/
    REWARD POOL
    LIQUIDITY VIA
    CEX & DEX
    CLOUD SERVICE
    REDEMPTION VIA
    SIDECHAIN
    CARDSTACK HUB
    FOR DATA FUSION
    INDEXING &
    QUERYING WITH
    AUTHORIZATION
    EVM SMART
    CONTRACT ABI
    MAPPING
    COMPOSABLE
    CARD UI TOOLKIT
    30+ PLUG-INS
    OPEN-SOURCED
    ON GITHUB
    MULTI-CHAIN
    SUPPORT VIA
    DOCKER
    RUN YOUR OWN
    PERSONAL CLOUD
    P2P FULL NODE
    VIA ELECTRON &
    DOCKER
    WEBUSB SUPPORT
    FOR HARDWARE
    WALLETS
    PAY FOR SAAS VIA
    MULTI-TENANCY
    SAME CODE
    DEPLOYED TO
    CLOUD
    EMBEDDABLE
    MOBILE-
    OPTIMIZED CARD
    

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16. CARDSTACK’S TECHNICAL ROADMAP
    CONSENSUS
    ORCHESTRATION
    USER EXPERIENCE
    SMART CONTRACTS
    INTEGRATIONS
    Since shipping the MVP in time for the Cardstack Token Generation Event (TGE), our engineering team
    and open-source contributors have continued onto the following phases of research and development for
    each of the layers of the Cardstack architecture.
    CLOUD OR DESKTOP RUNTIME FOR
    DATA FUSION AND ROUTING
    ON-RAMP FOR END USERS TO
    ACCESS CARDSTACK CATALOG
    PLUG-INS FOR CONNECTING TO
    BLOCKCHAIN AND CLOUD SERVICES
    TOKEN MECHANISMS FOR PAYMENT,
    REWARDS, AND GOVERNANCE
    CONSENSUS PROTOCOLS
    UNDERLYING THE ECOSYSTEM
    CARDSTACK
    < 2017 2018 Q1 Q2 Q3 Q4 2019 Q1 Q2
    PHASE 1 PHASE 2
    Cardstack Environment with “Four
    Edges”: Administrative Tools
    Cardstack Token Generation
    Event (TGE): Dashboard
    PHASE 3
    Card Space: Community Contribution
    Management Features
    PHASE 4
    Card Flow: Conversational
    Workflow Automation Features
    PHASE 5
    Industry-Specific DApps Built on Cardstack:
    E.g. Media Registry, Crypto Accounting, Shipping
    PHASE 1 PHASE 2
    Cardstack Hub:
    Core Components (NodeJS & Docker)
    Cardstack Hub:
    Security & Deployment (AWS)
    PHASE 3
    Cardstack Hub:
    Index & Query (Postgres)
    PHASE 4
    Cardstack Hub: Free-to-Use
    Peer-to-Peer Deployment (Electron)
    PHASE 1 PHASE 2
    Local or Cloud Plug-ins:

    Git, SQL, Elasticsearch, 3rd Party APIs
    Blockchain Plug-ins:

    Ethereum (Geth), CARD ABI
    PHASE 3
    Blockchain Plug-ins:
    More EVM Smart Contracts, Oracles
    PHASE 4
    Blockchain and Protocol Plug-ins:
    L1 or L2 Protocols (PoS, DEX, State Channels)
    PHASE 5
    Enterprise System Plug-ins:
    Line-of-Business Applications
    PHASE 2
    Cardstack Token (CARD):
    Modular Contract Architecture (ERC20 & ENS)
    PHASE 5
    Cardstack Hub: Payment through CARD Token for
    Decentralized Platform-as-a-Service (PaaS)
    PHASE 1
    Hyperledger Sawtooth:
    Transaction Family POC
    PHASE 3
    Cardstack Token (CARD) with Software & Services Coupon (SSC):
    Universal “Gas” Mechanism for Blockchain- and Cloud-Based Utilities
    Current work in progress
    PHASE 4
    Cardstack Token (CARD) with CLUTCH*:
    Compliance Mechanism for Direct Fiat Purchase
    * Conditionally Locked Until Token is Contractually Handed Over
    PHASE 1
    Ethereum Virtual Machine (EVM):
    Consensus Provided by On-Chain Smart Contract Governed by Proof-of-Work (PoW)
    PHASE 2
    EVM for CARD + Sidechain for SSC:
    More Scalable On-Chain Metering and Billing
    PHASE 3
    EVM + Sidechain + Tally Protocol:
    Decentralized Analytic Network
    Minimum Viable Product (MVP)
    TGE
    

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17. NETWORKS
    QUEUES ENVIRONMENTS
    LIBRARIES
    CONFIGURATIONS
    PURCHASE
    ORDER
    ARBITRATION
    SERVICE
    PRIVATE
    MESSAGE
    SALES REPORT
    CARDSTACK
    Mix & match
    cards from
    many dApps
    or protocols
    For End
    Users
    

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18. NETWORKS
    CARD
    QUEUES
    ENVIRONMENTS
    LIBRARIES
    CONFIGURATIONS
    PURCHASE
    ORDER
    ARBITRATION
    SERVICE
    PRIVATE
    MESSAGE
    SALES REPORT
    AGREEMENT
    VERIFIED
    IDENTITY
    OWNERSHIP
    TITLE
    PREDICTION
    FRAUD ALERT
    FILE FOLDER VIP LIST
    PAYMENT
    METHOD
    MEMBERSHIP SETTLEMENT
    RECEIPT
    REQUEST FOR
    QUOTE
    CHANGE
    REQUEST
    RECEIVE CARD MODIFY CARD
    SAVE CARD PUBLISH CARD
    Cards moves
    between people
    in decentralized
    networks
    CARDSTACK
    

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19. LIBRARIES
    ENVIRONMENTS
    QUEUES
    NETWORKS
    CONFIGURATIONS
    VERIFY IDENTITY TO AMEND
    OWNERSHIP TITLE
    Users can chain
    cards together
    to form their
    workflows
    CARDSTACK
    

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20. CARDSTACK
    So the next million makers
    the next billion users
    can build the tools for
    

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21. CARDSTACK
    t.me/cardstack
    @cardstack
    cardstack.com
    CHRIS TSE
    Founding Director
    Cardstack Project
    @christse
    

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