What is RealFi?

hi this is Charles hoskinson broadcasting live from warm sunny Colorado always warm Always Sunny sometimes Colorado well wait a minute it's December gotta turn on the fireplace there we go see you gotta have your fireplace going so I am three days into my two week fast so forgive me if I forget anything or use ums or odds but this is the worst day of that long-term fasting always hard to push through just bone broth of water for me and some coffee not supposed to drink that much coffee out fast but it you have to do something all right we have 15 minutes but I want to make a quick video talk about a topic and concept that we've been working together on talking about for a while that I think is very important so I'm going to share my screen a bit let's see here is that share screen wow there we go okay so when I was at Stanford for the blockchain conference there the science of blockchain they had a lovely presentation from Sam Warner's team at ICL in Cornell and it was an sok paper on decentralized finance and it kind of covered some foundational definitions of defy and the different types of Primitives of D5 so smart contracts and Keepers and oracles and governance different D5 protocols on-chain acid exchanges lending stable coins portfolio management derivatives and so forth and it let me think a little bit about how do we come up with a better term for a useful D5 so let's do a whiteboard video and let's talk a little bit about that because I want to talk about basically a concept called [Music] hang on a second well that's not working let's unplug it and plug it back in foreign there we go just a moment there we go okay so we'll zoom in a bit my dad died on me all right [Music] well that's concerning just a moment [Music] I guess what we're gonna have to do is stop sharing the screen and go back to my whiteboard who says I don't have technical difficulties from time to time that's okay but anyway what I wanted to do was I wanted to make a video talk a little bit about D5 and its translation into a New Concept called realfly so we're going to format the background we're going to enhance the ink shapes we're going to put a graph in and [Music] just not working okay all right well I'm gonna have to reset the the setup so I'll just explain it verbally so defy and realfly what is the difference between the two real fly is D Phi is a superset so if you take a look at the sok paper that I I just presented and I'll put it in the comments basically what they do is they say hey these are some categories these are different use cases but there's something that's missing from D5 and that is really five categories so there are four categories in a meta category that fits over it so there's a dendi metadata governance standards and certification and then when you put them all together you have some notion of a regulatory structure that that sits on top of that so real fly succinctly is D5 with identity okay and we're going to talk about each of these things that's why I wanted to do the Whiteboard video but it's identity so basically the dapps themselves have some agency so the application running on the blockchain has some notion of an identifier and then the people interfacing with it have some notion of identity it's not necessarily a real life identity but it's enough identity to be able to say this is a unique individual and they're just distinct and different from someone else and identity doesn't have to be a universal Concept in that everybody in the network knows that identity it can be completely Anonymous to a random person but to a specific person that identities know metadata is saying okay we're going to tell a little bit of a story about the nature of the people the funds that are in the account the story behind them the transaction that goes into the smart contract or into the decks or whatever it is we're going to know a little bit about that governance is basically how do we upgrade update and change the defy that exists so when you have a DEX or you have a stable coin or an oracle for example jet version 1.1 version 1.2 version 1.