This ten minute presentation offers a brief overview of the DFINITY vision of a decentralized internet. It is a great place to start understanding what DFINITY is.
So first of all thank you everyone for coming, thank you NASDAQ and Bruce for hosting us. We were so happy to be here, it's an amazing opportunity. So I'm gonna introduce DFINITY very quickly and then talk a little bit about the different kinds of tokens that are out there in the wild.
DFINITY is a blockchain supercomputer that's designed to host the world's software and data. It's a kind of open public Cloud 3.0. So apologies to DFINITY fans who have already heard all this before. So you know mid 20th century you know computers had already been described mathematically and it wasn't long before people started making physical computers. An early example would be the machine at Bletchley Park in the UK that decrypted German communications during the second World War.
In current times, of course, when we imagine a computer we think of a physical computer like a rack server like this or a laptop or a smartphone, something like that. What's important and interesting is you can also create a computer from a network of computers. That's what the Internet Computer is. A number of different computers, potentially tens of millions of them or even hundreds of millions distributed around the Internet, connect together to create a single shared computer that is a public utility that we want people to host software and data on.
And of course the power of this idea includes new computers connecting to grow the capacity of this public utility. So you can install more software, run more computations and store more data.
You might ask, "What runs on this Internet Computer?" It's actually something called WebAssembly. So WebAssembly is gonna be enormously important in tech in the next few years and it's the worlds first open standard for universal software that runs anywhere. And currently WebAssembly is already supported by all the major web browsers. So you can create WebAssembly applications using any programming language you like that run inside Internet Explorer, Chrome, Safari, Firefox and they run at native speed.
So you can think of web browsers providing front-end support for WebAssembly and DFINITY aims to provide the back-end support. So it'll be top to bottom WebAssembly environment which you can develop for in any language you like.
Now of course the purpose of this session is to discuss blockchain networks, tokens and regulation and so it's important to say that the Internet Computer is generated by a "token operated network". So I think we'll hear this expression more and more, "token operated network". And that means that tokens are used for installing software, for running software, for storing data, in the governance system that the network has and also for something called mining to remunerate people that connect their computers to help make this Internet Computer.
And it's important to say that you can't really design a decentralized network like DFINITY without tokens because otherwise how would you mediate participation in the network. If you didn't have to pay for computation, somebody could just upload some nefarious software to the network that just used up all their capacity.
But this network liberates enormous utility. So we try and do this kinda grand bargain where we swap hardware and things like cryptography for simplification. So the Internet Computer greatly simplifies software development, maintenance and administration. And the purpose is to reduce the total cost of ownership. So we're using hardware and cryptography to liberate efficiencies in human capital, so the total cost of ownership of software systems comes right down, we think by 75% or more.
The platform is also hack-proof so it provides a way to create far more secure systems and underpin better IT infrastructure. It never stops, loses data and incorporates privacy technology that will make it easier for corporations to keep their data private and to create Internet services that provide users with guarantees about how their data is used and who can access it in the future.
And finally of course, DFINITY is an open platform, so we like to think of DFINITY to the traditional IT stack which is software and cloud computing and so on as being a bit like the Internet to AOL and Compuserve and those kind of early private networks.
So there are four main areas where we think DFINITY has application. First is just private software systems, people build better business systems on DFINITY that are more reliable and more secure, cost less to develop and maintain and so on. Decentralized business infrastructures, things like supply chain platforms that are open and shared by entire industries with the aim of liberating, for example capital from invoices through invoice discounting and gaining other efficiencies.
Third application is decentralized Internet services. We think that Internet services will be reinvented as open source businesses. That means they're implemented using autonomous software which is tokenized and that can update itself. And this will provide all kinds of special benefits to users. And also for innovators and entrepreneurs that wanna integrate with other services.
And finally of course centralized finance, although I think that'll be further down the line. So just quickly if you're wondering where did DFINITY come from, it is of course a decentralized system, you can trace back the origins to Bitcoin which came out in 2009 through Ethereum which created this smaller contracts platform through to where we are today.
So just quickly I'll wrap up by trying to categorize some different token types. We have cryptocurrency tokens, Bitcoin being the first example. Typically they're created by their own network, so they're created by a network protocol and they're typically volatile stores of value with approximately fixed supplies. Then you have network tokens, DFINITY provides an example, you need Dfinities to pay for computation and install software and so on, and again it's created by a separate network and a network protocol.
And then you get into different kinds of tokens that are created by software running on top of platforms like Ethereum and DFINITY. So popular token at the moment is called a Stablecoin and an example might be Maker Dai and these guys aim to create tokens with a stable value using algorithms and collateral and things like that.
You have utility tokens, an example might be Numerai. Numerai aims to crowdsource trading algorithms for hedge funds and you need a token to participate in the Numerai system. And finally you have things that really do look much more like securities where a token is an asset token, it's a call on assets, a view by some organization and an example would be Digix, which clustered it's gold and creates tokens against it.
So that's pretty much it for me, I'm Dominic Williams, President of Chief Science at DFINITY. Finally here's video that was taken in the office a few weeks back, it shows the DFINITY test network which is built from a few hundred computers distributed around the world that are connecting together to create a single Internet Computer and that's developing all the time, that's it for me, thanks.