Oasis Sapphire: Privacy in Use, Matej Janez | Oasis

testing okay all right now now that we're all here welcome to East Belgrade day one uh I'll be your MC for today alosa but you can call me Aki some say it's Slovenian Heritage but we won't get into that super glad to see you all here uh and this is called the Bel actually the belr track last year was the builder track and it is my great honor to welcome mate from Oasis to open up this track and he'll be talking about Oasis Sapphire and privacy in use take it away but there's not a lot of serbians here so I'm just gonna stick to English um yeah uh I'm M from ois I'm the B manager here I've been with him for quite a bit and our focus is yeah on bringing privacy to web 3 so we're going to dive a little bit more into that um oh okay the slides are here so um what is oasis you know the short tagline is smart privacy for web3 and AI uh but we're going to dissect it a little bit uh through this short talk about what we offer in terms of uh onchain privacy uh for Native DBS how we can offer this cross chain uh for other evm applications other EV blockchains and deps on those blockchains as well and we're going to go through the use cases the talk is privacy in use and I don't want to just go through the high level stuff but talk about concrete examples how this can be utilized and what benefits this can bring uh to the blockchain world so H try it again it's not working did I break it that's right one more time perfect okay so first we're going to talk a little bit a little bit about the architectural ois um so uh what's special about um the ois network is that we have a layered architecture where we basically have native rollups right so we have the consensus layer which is just consensus and then all the comput happens on this let's say native layer twos if you can imagine it like that and you can have different uh computation environments there but we're going to focus today on uh what we call the sapphire paradig or parallel runtime which is the confidential EVN compatible one that enables all these onchain um onchain U private applications right and at the same time you can see here that we also have the ois Privacy layer and this is um the layer which enables Sapphire to also act as Layer Two to the ethereum ecosystem other evm chains and how those dabs can utilize the Privacy features of sapphire without the need of moving U their whole dab their users their funds over to the Oasis network but just keep them there and utilize the sapphire privacy features uh cross chain right so spoke a little about the the sapphire Paradigm uh theis privacy layer a little bit more in depth is basically um a message passing bridge where you're sending you're sending encrypted messages back and forth from the home chain to Sapphire the computation happens there you send the encrypted results back uh to simplify the user experience here you can also have a guest Rel relayer so users don't need to have actual native gas token called Rose to execute those transactions you can also sponsor them uh on your own and this enables that simin you ask that um users are maybe used to from uh you know utilizing metamask to interact with the evm space uh but at the same time have that privacy um features have those privacy features that are not enabled in the normal transparency blockchain transparent blockchains right so how this privacy is achieved on wasis is through trusted execution environments uh or tees uh there are many different Technologies um that enable onchain privacy we have NPC FH uh you have ZK but we believe that tees are a good let's say compromise between the trust assumptions that are needed here and the flexibility that you get you know General compute basically uh within the tees what you're able to execute with fairly low resources and how smart how trust execution envir work is you have Smart contracts and then you have encrypted data all this goes into the secure Enclave on the CPU and then you get gets computed over and then you get the encrypted results out uh and then you continue with your with your uh with your computations right um You can also add here other Technologies like ZK MPC to have that defense in depth but that depends on basically the use case or how much privacy is actually needed for let's say a private order book you don't need indefinite privacy you just need privacy in that specific time for let's say personal data that privacy needs to be for a prolonged time right so what what is p smart privacy or how we coin it right it's pricey when needed right so you have selective disclosure or elective transparency right you have public proofs of private data compliance and regulation sometimes need transparency but at the same time we want that public privacy right then transparency with changing groups right so basically depends what permissions some some individual has and how how these permissions are then set and shared right so um having that flexibility to to change the the privacy or transparency and conditional access controls right so this all is enabled basically just managed by smart contracts right there's no Central party doing this it's all done autonomously so now we're going into the heart of it so um let's say some of the use cases that we we kind of see potential in is confidential AI private data management did secret ballots fully confidential andt unlockables seal bit auctions games with zero trust assumptions and private payments right um I'm going to dive deeper into a few use cases and then um we can have a little bit of a discussion on this as well so first ois and AI why we see a lot of potential here is because currently you have the big corporations that are kind of taking over the space you have Google you have open AI you have the the the others as well and they're kind of controlling now that space in terms of data uh data compute power and everything and in order to be able to decentralize that and you know enable federator learning enable sell Sovereign data of users and how they share their data to be uh used for training models and stuff like that uh we need to have priv onchain privacy we need to have that you know bring that e EOS oft don't trust verify to AI as well and we've seen already some good use cases with ocean how they're utilizing uh on on chain privacy or sappire onchain privacy to submit predictions on chain for currently for um price feeds uh for for the top 10 cryptocurrencies where they basically you have data scientists run uh algorithms machine learning algorithms and when when they kind of come up with the with a prediction if the price is going to go up or down this submitted onchain and Traders can verifiably purchase that that data uh not needing to trust anybody uh about the let's say validity of that right uh then we have also orich and Delta da and many others building on top of Oasis Oasis Tech and we see a lot of lot of other applications coming in the near future as well so one interesting framework that we're working on as well is called rafle yeah it's intentionally uh acronym like that but it means runtime offchain logic so basically uh onchain comput is often limited with uh with how much it's possible to do right so you need to kind of rely on offchain compute but then at the same time how do you keep that onchain trust and viability right and that's through Frameworks like this when you can break bring uh offchain components into the onchain realm through remote attestation you know through uh verifiable proves onchain use the secure trust security and Trust of the Oasis consensus layer but at the same time have object components that are computationally more capable um and and more flexible right so now we're going to move into the privacy and use part of it so we're going to look at a few use cases and then uh we can have a chat also how how this actually um benefits all the applications right so confidential voting we see as one of the um very interesting use cases for onchain privacy because we saw how web 3 became very focused on you know decentralizing also the governance of the protocol SP spinning up dollars to manage treasuries to manage projects you know doing everything through aching governance proposals and currently it's quite limited because everything's transparent you have you know problems of Voters expressing them freely they they they can be conv worced you have also uh vote bias where basically big token holders can can basically sway the vote by voting One Direction at the beginning and then basically other voters just follow them uh so that's kind of problematic in terms of having that unbiased voting experience as we are used to from let's say more uh traditional world uh like elections and the like so we see this you know and as one of the crucial things that we need to bring into web3 as well uh and what's good here is basically you have a lot of flexibility in how how this is done you know in the end you can share individual vote you can only share the aggregate you can maybe share nothing and you do a temperature check of how the community is feeling about a certain topic question right so this is the flexibility that wasis uh privacy Tech offers and gives a lot of uh yeah options to the Dows how they want to go about their governance then if we move to the next one is the account exraction um one this is one of the topics that were that's I think quite popular we have eips on account raction coming out every month probably or even even more frequently and there are different different ideas behind it I think in the past the smart accounts the EAP 437 mostly focused on how basically who's paying for gas uh but for us we took a slightly different direction right because we enable onchain uh private smart contract storage right you're able to store private keys of wallets directly on chain and then use some other authentic ation method to sign those transactions to be broadcasted um in the network right so U this actually simplifies a lot the on boarding right because when you have the question of who pays for gas you still need uh you still need metamask right you need to still set up that wallet save the seat phrase save or or save a private key right with this you actually don't have to do that right you move past that huro and you basically just uh have a very web to like experience where you use your face ID your fingerprint and you're onboard it and you can start Interac with the D right uh we have a team that's called appon working on productizing this they're going to build like a framework that you're going to be integrating uh integrate to your own da or uh also a turnkey third party TurnKey solution where you're going to be able to send your users to register and then start interacting with your with your adap through this um what's cool about this as well is that it's not limited to evm because you're storing private keys in the smart contract storage you can also store let's say a private key or Bitcoin wallet or private K po wallet right you're not limited to just the zerox addresses um and you can have basically one contract for many different um for many different accounts right it's not that you have to deploy a smart contract on every chain that you want to interact with uh this is just how we then broadcast those those transactions to to the design chains sealed auctions is also one of the interesting ones um it's not limited only to nfts we also saw a need in let's say in in bet selling selling of tokens right where right now if let's say but we can we can stay on the nfts right we had nft launches and what happen usually at the launch is you know there was gas for us about how much people you know were willing to pay to get in to get that nft right um the set the prices were usually set and then you don't have that price Discovery Based On Demand right so sealed auctions enable that you can have private bids you avoid the gas uh gas force and you also have trer price Discovery right because it's not how much you're seconding the price at but how much you people are willing to pay for it right uh and this creates a whole new Dynamic right so I think this is one of the very good use cases that needs to be introduced in crypto as well uh this mimics the traditional World quite well but uh with transparent blockchains you can't really do that right uh without having like a an offchain or a centralized component with us that's possible with fully onchain mechanics uh to achieve that right one uh use case that we frequently speak about is also private trading or how we call it private accounting um if we look at some of the this exchanges right uh when people go long or short uh often times I mean most of the time that's seen on chain and then you have you know other users kind of uh kind of trying to trying to ha uh trying to uh get them liquidated uh basically H haunting hunting them on chain and uh that that becomes a problem right or some you know if there's like a Docs address that everybody knows and that address went short I don't know how much eat you know it gets on um on Twitter anywhere anywhere else uh so private accounting enables that you can have collateral on any chain but then you do trades within the private Sapphire um runtime right and then what this enables is that you you leave your user where where it's at right but all all the trades that happen you can have within that private space nobody sees them uh and then you just consolidate the outcome when they want to withraw it either it's winnings or losses right but um everything is more similar to your centralized exchange experience right if you're on binance or coinbase or whatever um but at the same time you're staying on chain everything's decentralized everything's trustless uh and you can go you can about you can go about your trading uh without the fear of somebody trying to liquidate your position right and then we have uh the confidential nties I'm going back to nfts because we see that there's a lot of potential there right uh I think there was one uh Trend in the previous cycle where you know you had all those right click save people where it was like uh why would I buy this you know if I can just right click save it um here we could have you know convention enable public and private metad data so you could have here some public data that's like let's say more low resolution for instance if we're talking about an image or a character nft right a pfp nft low res image and then only the true owner can have the high res resolution version one uh that is unlocked within the confidential metadata right or you can even set different um different um let's say loot boxes right in gaming where you can have onchain verifiable rewards but at the same time they're not revealed before you um you you you purchase that nft right so it's all what the owner sees and what the public sees right so there's a lot of different use cases here um that still have to be developed we have reide uh an ecosystem dab that's working on decentralized password managers through basically these confidential inty notes so that's going to be an interesting one coming up I think in a few months and I think the last use case that we're going to speak about is gaming gaming has a lot of way to go still on bringing more more of the gaming aspects on chain right now we see that the majority of the stuff that needs to be private in a game it just it stays in the let's say offchain side of things on a server um um yeah preview to the to the game developers right uh but I think here there's a lot of opportunity for games to bring more on chain you know to have that fog of war or very iable Randomness you know that people can be sure that it's not being gamed or rigged behind behind the scenes right even if we're talking about gambling right how can you be sure that the cards that you're dealt are not stacked or rigged right uh and if you enable that onchain verifiability of the deck you know it really uh solidifies the trust in the dep right so uh I think here we have still a long way to go U but it's going to the right direction and I think yeah this is it for the presentation so in summary um I think crypto still there's a lot of interest lately uh in privacy right in in the crypto blockchain space and that's good right we welcome that but I think we still have quite a bit way to go uh with users carrying more about what's seeing on chain what others can see about them uh in general also about their data their privacy right how how they share their data uh and yeah I think uh ois privacy is one of the technologies that will enable uh all of that thank you very much how are we for time do we have any time for any questions if there are any we have time for one question one question I think they're going to mic you up so it can be heard on the on the recording as well hi hello yeah yeah so uh I have a question about the Oasis AI so you mentioned that uh people can build some prediction um mechanisms and stuff uh can you implement your own models uh why I'm asking is because um in per deck is one of the biggest economical attacks that can that can happen is because of longtail asset so you said prediction of price but something very valuable for future markets is prediction of volatility so if you can predict volatility you can adjust risk parameters up front and uh that there were a couple of hacks economical exploits not hacks for example for dydx and um they don't have time to adjust their risk parameter so it would be good if you use onchain this prediction of volatility and adjust your risk parameters just straight off is this possible to implement your own models prediction models or um yeah yeah I would say U it's possible uh within the ocean predictor um it's not one of the uh let's say the markets yet right so a vix is is not one of the products right currently the machine learning scientists right the scientists are are um predicting price for those 10 markets that are available there but that that would definitely expand uh and I think yeah that potentially is a very good use um I mean probably at the beginning you would be predicting vix for a broader market right just going into individual assets would be a little bit problematic and I think yeah quite intensive but yeah that's a a very good um even a General market volatility would give you some some idea of uh how the longtail assets would would beave yeah so I would say uh if you want that within the predictor uh app uh you can speak to our colleagues from Ocean uh if this is one of the markets they would be uh interested in introducing but in general you could do a similar thing yeah on your own as well um and and uh and F but that's a full full development of AAP yeah but good question yeah thank you I think that's it that's it thank you very much thank you mate