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About the talk
Is there a way to unlock the benefits that yield farming and other decentralized finance (DeFi) practices bring to unbanked populations? How do you do that, and at the same time, support those with minimal access to capital? Our next guest will answer just that and more. As a 20-plus-year serial entrepreneur who's also an award-winning longstanding academic with multiple publications in AI and blockchain, we have Dr. Adel Elmessiry introducing DLN DAO.
LA Blockchain Summit is hosted and produced by the Los Angeles-based blockchain venture studio, Draper Goren Holm.
Adel is a technologist and a serial entrepreneur with two successful technology companies taken from inception to acquisition. He has proven executive experience with a solid track record in startups and public companies including HealthStream, WebDBTech, InVivoLink, HealthTrust, and UtilizeHealth. He also actively participates in a few blockchain, AI, and healthcare startups including legal alignment, Accelerate Insite, and under the radar: GarmentChain, HealthReasoning. Academically, he holds a Ph.D. in Artificial Intelligence, Machine Learning Natural Language Processing, with a dozen published papers and an award-winning blockchain paper from The World Academy of Science Engineering and Technology. He regularly moderates panels and speaks at relevant events. Adel enjoys working on blockchain token economics, protocol design, and platform architecture with a focus on applied AI. When not playing mad scientist or mining ethereum, he is out biking with his son or deep ocean diving.View the profile
Good morning, everyone first, I'd like to thank the reaper, golden hole for having me here with all of you. My name is Doctor Adele in the city and what I would love to talk with you about is leveraging the good side of defy. So let's starts with a going through the progression of relaxing, waves. In my view, we had to waves. So for the first one is a digital asset. So that's when we were able to, for the very first time, creating additional asset and being
able of transacting on there that led Do I hold new Revolution that in the way that we see assets and how they are managed. The second wave is defy that you heard a lot about today and it's basically a being able to replicate eating all the banking and all the lending transactions on those assets that we have just created. However, there were those two ways also had side effects. So the first led to the ice cube trays where a lot of people jumped into creating assets without actually realizing the benefits and what it can do and then the consequences of doing those,
the second wave is fueling another big year, farming and circular lending similar to default swaps 215 in Seaford. So that leads me to think about How can we use that for actually The Good? The masses. And one thing that I always think about is that more than slavery. People are not in chattels, they are index. So, we talked a lot about mainstream and getting this to unbanked people and helping a lot of them to actually benefit from what we bring in blockchain and what we bring in default. But how are we doing that? The current system is not skilled enough and
it has a lot of ways. It cannot really accommodate all of those unbank and when I'm talking about unbanked and invisible, people are not really talking about just people in developing countries such right now. How do you say what? I was born but really there is a hole in visible layer that exist in developing countries such as the United States. Hope you think about Goose the Federal Reserve estimates that there are fifty-five million unbanked people in the system. That's, that's 22% of the US household debt in 2018. So, all of
those do not have access to the current banking system in the year and a lot of them. Cannot participate in the cart existing system at all as it exists right now. So think about it, like it's more than one-fifth of the u.s. population. Does not have any access to traditional, defy, traditional systems with Fiat. But why is that? Well, there is an exit lack of access to any nearby banking system or wrenches. The minimum balance is fees that is a distrust of the banking system around that. In other words
you need money to actually be able of creating a bank account. You need to have a stable system and I need to have an address. You need to have all of the information around it. It's very hard to create a bank account and the evil of conducting your life. If you don't have all the cheese dogs and all that, he's crossed India and in back in 96 the federal law designed to be easily Monday. That the government would send all the transactions electronically by 99 found that you cannot
comply with it. Because It was on head Banks. Don't have banking accounts that they can do all of that stuff with. So how are we serving all over those? You can't. So the challenge that we are facing in front of us here is that the current traditional Central a centralized Finance cannot resolve this issue? It's too small of a system for them are customer. They have a lot of fees that are associated with all the system. There is lots of friction in the, in the process they are. And they are not equipped to handle any of those small Mass transactions, the year.
And we've seen that microlending is a really good experiment, the nobel-winning prize and how much units show that you can apply. And the rate of pay back off. Microlending is actually much higher than two additional ending. So the big question is always comes back. Is how can we apply this to defy? Can we find a solution that does not focus on people that have trip to start with? How can we help those of us that do not have crib to to begin with? How can we provide a more access to people to get to the system?
So that's where the decentralized lending networking idea. Came from India where we would be able or creating a decentralised landing net. That establishes something record social sticking what social sticking is a whole novel approach for how do we look at the Capitol that exists in a community in most of those invisible? Underbanked communities, you have a ton of wealth and you have a ton of social network existing but it's not used at all. And what you want to achieve with it is creating a fee-free
loans, to the Border were the people that need to get it as opposed to like going to start cleaning and or payday or even bank system to become. I'll get access to in the first place. Provide rewards for the people that back them in a social staking system and also returns for the liquidity provider. So let's examine this. A little bit. That the three components that were looking at it. He raised me to think about lending in whole new way up there. Now we are looking at lending as you have the board which is the person that wants to get a loan
today. Normally that person needs to put a collateral collateral is somewhere between 50 and 70% of what they need to get out. And then do we need to provide? Those are the people that provide liquidity and example to get to hold photos but we are introducing here in that makes is the back of the back of her is a person that basically provides risk mitigation think of it as an RN token, where people will come in, provide a way to mitigate the risk in the room. So in order for
us to understand realized this entire novel approach, we need to think about the way that we speak differently by using social social. Speaking is a novel idea. It involves what we have been doing today of you as if it was taking your assets and getting rewards for their into a system where you have two components coming in a bottle, water staying here is a proposal that I would like to borrow money on and then back up for them that comes in until like I'm willing to back that person to get that
loan out and then the liquidity provider can provide the loan for the board in the truck. So the system depends on that board bringing their social networks to be on the situation so that they can come in and say here are my friends. Boring directly from them. We can use the system to allow me to borrow and unlock the potential for my friends as well there to start with. You can create application and then you can grow from the year and get more access to loans.
So what does the way that we want to create all of the stuff is basically by the community for the community? So we are trying to create a system that allows you to unlock your social activities in your social network. The people that can help you with all your lending needs a Indian, be able of backing you up in this situation on allowing you to get an access to the funds while they will be rewarded. From this is how do we do that? Where we have a whole big,
like people waiting for you guys to take a look at it. Where is that? We've created a website Dylan. Org and if you go there, you will see something like this. And also when you click on join us, it will ask you to connect your metamask and then we'll give you the ability to do two things. One is, give us a little bit more information about you and then if you want to all of those are not mandatory Acquired and at the same time, it will give you access to the white light paper so that you can look at all of the
technology that we have been building and architecture that we have designed their to unlock the social staking for the people and be able of leveraging, all of that stuff to Ginny Reed. A better wait out. What I want to do here is be able of expanding the system by the committee for the community so that we can get to mainstream. So that we will be able of going to everybody normal walks of life and say hey you want to pay for something and get out of there. That's why Bring your friends into the system and be able of leveraging your Social
Capital, your social network, and be able of getting all of those loans to you. So that's it. We want to get all your help here to development, build it grow and make sure that we are on the right track. We didn't need all that. We don't have all the answers but we need your help to get all of the stuff and see how we can grow the system and make it big. If you have any questions please email an invoice that I owe or email me Adele as often. Are you? And let's get this journey started, let's create
a whole new way of implementing Evite moving the friction in Define extending it to the message, to the entire Globe. I hope to see everyone. Each one of you just turning on the side and looking forward to making this a huge nice change for the future.
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