AN ARCHITECTUREFOR BLOCKCHAIN MEDIA NETWORKS
Meher RoyPrinceton Ethereum Meetup, 19 Jan 2017.
Any sufficiently advanced technology is indistinguishable from magic.
- Arthur C. Clarke -
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= Caveman : Cellphone Us : Bitcoin?
Recall the first time you encountered Bitcoin?3
Digital gold!Global distributed
database! Duh!Rudimentary
world computer!
What is Bitcoin? 4
Fourth Incomplete Analogy
A useful system with multiple self-interested agents reliant on a software protocol& data-structure to foster cooperation between agents in equilibrium.
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MAGIC!
It is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner but from their regard to their own interest.
Miners
Users
Full-Node Owners
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Perfect Bayesian Equilibrium
Given my beliefs about the types of other agents & actions available to us; I choose that action which optimizes my expected payoff. If I deviate, I lower my expected payoff.
Miners"Given..."
Users"Given..."
Full-Node Owners"Given..."
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Can I build a Bitcoin like system better?PoS? Sharding?
Build other systems with
same principle?Steem? MakerDAO?
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Content Writers / Journalists
EditorsPrinters &
DistributorsReaders /
Attention PayersAdvertisers
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News Corp.
Shareholders
Content Writers / Journalists
EditorsPrinters &
DistributorsReaders /
Attention PayersAdvertisers
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Signals Calculation ofContent Rank
Ordering byrank in Newsfeed
Recency Factor
Signal Strength factor
Relevance factor
=
×
×
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App Maker Corp.
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Content Creators
Signal Generators
Employees, App Maker Corp.
Attention Payers
Advertisers
Shareholders
Application Maker Corp.
DB
Blockchain Technology - The Conceptual Jump 14
Distributed Infrastructure
....
.... ....
Service request
Service replyClient - Server
Blockchain(s) for storage of signals
IPFS / HTTP web for content
Blockchain based Newsfeed(s) 15
....
16End-User Interfaces to serve different tastes
First-order approximation;not exactly correct
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App Maker Corp.
Content Creators
Signal Generators
Employees, App Maker Corp.
Attention Payers
Advertisers
Shareholders
Case I: Advertising won't exist at all in Blockchain based media
Case II: Advertising revenues routed to Content Creators
Case III: Advertising revenues routed to Signal Generators
Case IV: Advertising revenues routed to Attention Payers
Case V: Some combination
that is a sum of Cases II, III and IV
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Content Creators
Signal Generators
Attention Payers
Advertisers
Whoever influences the order in which content appears is strongly incentivised to incorporate advertising, even if subliminal
The trade of money for influence has survived multiple tech shifts
Advertising won't exist at all 19
Advertising revenues routed to content creators (Steem)
Content, of many kinds, is ceasing to be scarce. My hypothesis is that many Blockchain media networks can be built off the back of free web content.
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Majority of businesses we have today were
created hereattention competing
for information
We are here today
infection point
We’ll be heretomorrow
Information competing
for attention
attentionlimited by human factors
informationgrowing exponentially
competition for attentiongrowing exponentially
Challenge of Microtransactions
Tedious to keep track ofattention micropayments
Will you change your information consumption to earn $10 per year?
Challenge of Scale
21Advertising revenues routed to attention payers (Synereo?)
22Advertising revenues routed to signal generators
Gain value as they are imitated!
Scale gracefully!Determine
Newsfeed quality!
Token /Share /Asset
Attention Payers
Signal generator
"DAO"
....ContentWeb ....
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....
Signal generator netToken: footsies
Applications
....
24Attention
Payers
Sports based SG nets
Profession based SG nets
Political SG nets
Lifestyle SG nets
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Signal generation is expensive 26
Signal generator
netNn
Invest capital to buy tokens
Lock up tokens into unsaleable bonds
Assume risk ofprice fall, and pay
cost of capital
Assume riskof appmakers
disregarding signals
Expenses / Risks borne
Revenue model for signal generators 27
AdvertizerSignal Generator
Show methe moolah
Off-chain OTC trade
Trade usingprivacy preserving
smart contracts
Trade using prediction markets
ImplementationMake my content prominent
Incentive structure of the signalling game 28
Good signalling
More peoplefollow signals
Higher valueof signal to advertisers
Larger revenuesto signal
generators
Greater token market cap
Bigger value at risk & potential
for reward
Intrinsic Value of token (ABA)
=
-(minus)
Net present dollar value of
Monetizableattention stream
Cost to maintain (& grow)
attention stream
Perfect Bayesian Equilibrium
Given my beliefs about the types of other agents & actions available to us; I choose that action which optimizes my expected payoff. If I deviate, I lower my expected payoff.
Signal Generators"Given..."
Advertisers"Given..."
Attention Payers"Given..."
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Concept Description
Financial Valuation model
Equilibrium concept
Upcoming Stripepaper 30
Maciej Olpinski Michael H. Goldhaber Dr. Michael Spence
Acknowledgements - intellectual 31
Steem Synereo Meme markets
Related Projects 32
BACKUP
Meher RoyPrinceton Ethereum Meetup, 19 Jan 2017.
= Caveman : Cellphone Us : Bitcoin?
Recall the first time you encountered Bitcoin?3