 Hi everyone. Who here has not heard of Bitcoin Ordinals? Oh, she asked the other way around then. Who here has heard of Bitcoin Ordinals? There's a lot of hints. Who here actually own a Bitcoin Ornals? Okay, not yet, I guess. Who here has heard of Seido Protocol? Okay, I don't expect any one because I'm going to talk about it for the first time here because we have been working on that. I'm Yuzin Chua. I'm a CTO Co-founder of KDPI. I've been in a Bitcoin space since 2010. Yeah, I've given a Bitcoin theorem, a Dash ecosystem, doing a lot of developments, building tools for all that from the early days. I was lucky to be the chief architect of Sand Dollar for the CBDC in Bahamas. Still operating today. I'm no longer active in that project, but I'm still operating today as built on Bitcoin protocol. And I was also lucky to be presenting in First Asia in 2016. It's an interesting story on that one because my topic of their talk on that one was something about uncovering government API or something. I got a police knock on my door the next day because I was demonstrating how to reverse engineer an API from a government API and I got a police letter on my door the next day thinking I hacked through a government server, which I did not. I was just hacking a software that was released by the government on my phone and showing the audience how to do that. There's no case in the end, but took like, I think about like three months for it to be like cancelled. No, I didn't hack anything. That's interesting because of this talk. Yeah, so birthday research is an R&D arm of Cake DeFi. So if you're anyone here is familiar with Cake DeFi. Great. I have a few hints. Thanks. Yeah, so Cake DeFi is a blockchain platform. It's not an exchange. It allows you to grow your crypto in a very transparent, open manner. All the yields are actually coming from blockchain, from protocols. You can actually track whether all the yields are coming from. So it's not like a black box model like you would see on FTX or three arrows. You go in there, they're going to give you some return, but you don't know where the returns are coming from. So at Cake DeFi, everything's very open, very transparent, and you can see where the yields are coming from. And birthday research is actually an arm at Cake DeFi that what we do here is we contribute to open source projects primarily around the blockchain space, Bitcoin, DeFi chain, Ethereum, and now we're going to talk about the one specific project that we have been working on that's on the Bitcoin space, on Bitcoin Ordinals specifically. Yeah, with that moving ahead, let's talk about Bitcoin Ordinals. Yeah, so if you're not familiar with Bitcoin Ordinals, this is what it looks like on the website, I'm going to get into the details on what it is. It looks a bit like NFT, and I'm going to talk a bit on what it is. So it also made the news that it's kind of catching up right now that a lot of Ordinals are taking up the block space of Bitcoin, and we have over a million Bitcoin Ordinals right now that's floating around in the space. And if you're a Bitcoiner, you also have seen that the Bitcoin block size has gone up by many fold since about six months back. I mean, Ordinals have been around for a year now, but only about six months that way kind of take off because it supports inscriptions. I'm going to talk about that later as well. Now, average Bitcoin blocks about two megabytes, and before that six months ago, it was like, that's like never over one megabyte, but now it's like two megabytes, and sometimes even at a capacity of four megabytes. So, yeah, what are Bitcoin Ordinals? Basically, what Bitcoin Ordinals are, if you know what Ordinals is in number theory, it's basically just ordering of things, like the first and second and third and so on. So for those who are new to the Bitcoin space or crypto space, one Bitcoin can be broken down into 100 million, which is 1E8. Satoshi, so the smallest unit on Bitcoin that cannot be divided further, it's known as Satoshi with a small letter S, because the big S would refer to the name. And every single Bitcoin can be divided into eight decimal places, and there will only be 21, multiply by 10 to the power of six, there will be only 21 million Bitcoin, ever mined, ever in the lifetime of Bitcoin. Right now, I think we've mined probably 19 million right now, so only about three million to go. The mining strategy goes down. So what Ordinals are, are basically ordering of Satoshi. So you would order from the first Satoshi ever minted or ever mined all the way to the last one that's ever been mined. So naturally the first one is actually mined by Satoshi himself and so on and so forth. So basically it's ordering of Satoshi's. And so it's basically kind of a game, you know, started by the creator about how you can make Bitcoin kind of non-fungible, right? Because Bitcoin is meant to be fungible. Like the one Bitcoin that you get from John, the same as one Bitcoin you get from Alice, the same one is indistinguishable, but NFTs or you want to make something that's interesting, you want to differentiate the Bitcoin that you get from someone from the other Bitcoin. So you have to create a rule on how, especially when you send someone else the same Bitcoin, how do you track that all the way to whoever that's holding that? So you have to have a rule. So the person that created this basically just came up with a rule that if you're on a Bitcoin system, there's multiple inputs and there can be multiple outputs. So how do you track that, how do you even track that where the same Bitcoin is going? So you just send kind of like an arbitrary rule. So the person, the creator, Casey picked up a rule that says firstly and first out. So if there are multiple inputs and multiple outputs, you're going to put the first one, and you're going to match to the same output, and it's going to keep distributing all the way to the last output. So this kind of you track the provenance of Satoshi or in this case, Ordinal to kind of track it all the way from it being mine. So with the Ordinal system, you can actually see where the Bitcoin is coming from, where the Ordinal is coming from, from the moment that it's being minted at the first time. So if you get a Bitcoin, you should run through an odd server, you can actually see where it was mine, who was mine, and you can track all the provenance all the way to where you hold it. If you look at through a normal Bitcoin kind of a transaction tracking, it's not quite clear because sometimes the coin gets mingled with other inputs and sometimes it's not, you just can't make it up where it's coming from. You can then track all the way. So to make it more interesting, the Ordinal system came out with this idea. It's kind of like a fun idea initially. Like now that we can track, we can kind of make it non-fungible, like what more can we do with it? So the person come up with a game on this kind of creating some ideas on how to make some Bitcoin or some Satoshi more rare than the other. There's some mod rule. You can kind of go on and start kind of reading on how that's being derived. Basically it's just arbitrarily defined on how rare Satoshi is. So you can see here there's a mythic Satoshi. You can kind of guess which one is the mythic one, the very first one which hasn't ever been moved ever from day one. So it's signed as a mythic and then the rest you have some certain pattern that is going to fit into some of these like uncommon, rare, epic, legendary. So most of the Bitcoin that you get is going to be common and you can also see that there's a kind of supply here. So 19 million has been mined. 19 million Bitcoin has been mined, multiplied by 100 million, so that's 1.9 quidrillion kind of being split up. Even uncommon it's kind of rare actually. If you get a Bitcoin, if you run through the system it's very unlikely that you get an uncommon Satoshi. So yes, quite interesting. Bitcoin or no, it's a digital artifact. Also it's more nerdy than the NFT counterpart on Ethereum because there's a certain rule in place where it's not a reason why or no community doesn't like it to be called NFT because NFT is basically a pointer to something that's arbitrary. If you had an NFT on Ethereum space it could be pointing to a real world object, can point to your sneakers, can point to your virtual world art piece, can point to anything and it's very arbitrary. The link is not real. Bitcoin or no, there's a very specific rule that it has to be immutable. If you inscribe something on a specific Satoshi it stays there. You cannot override it. I mean just a rule is made up. I mean that the rule is there. If you override something it's not going to be valid as a Bitcoin or no. No external link content is fully on chain. It's going to speed the Bitcoin community to half as well because there are some Bitcoin maximists who say that Bitcoin should not be used to store data. It should only be used for financial transactions and do things that relate to Bitcoin itself and right now we're using a lot of Bitcoin space to store binary data and the thing about Bitcoin is that it stays there forever. So if you download Bitcoin blockchain you're going to have to download all these stuff as well. Even though like because this uses the witness layer, technically it can be purgeable but people are not purging it yet, just yet. And inscription is an added feature to ordinals just so that instead of just a game on a number on how rare a Satoshi is so it adds this feature to attach something to that Satoshi. So it's called inscription. So you can attach like image, you can attach audio, you can attach video to a certain Satoshi. So inscription is kind of like a feature to make ordinals more interesting. It was added kind of quite late actually, like more than I think like six months or nine months in after ordinals was invented. And it basically can attach any binaries. It's not limited to only things that are renderable on the web. You can attach anything at all as long as it fits at four megabyte space because that's the limit of a block. And you can only fit that. And everything's fully on chain. So all binaries are fine but usually because you want to render it on a website, you will only attach things like text, audio image and movie. It's kind of you're going to convert all the binary into into ASCII and then you're going to attach a mind tile on top and then you're going to put it onto a Bitcoin blockchain. So basically that's kind of how it is. So on this example here it's a text that says hello world. You can attach it to the Bitcoin witness space and this goes in there. And you can see even the logic here that uses a Bitcoin script. It doesn't really do anything. These are just to attach that binary data. So what's next? So we have ordinals. We have kind of like a token. What's next that people want to do with it? You want to trade that ordinals. I think if we speak right now, they're probably about I would say maybe 8 or 10 kind of trading sites out there. A lot of them are very centralized. A lot of them are very you have to log in there, you have to upload your Bitcoin, you have to send them your Bitcoin, they send your ordinals and then you can trade on a very specific site. So what we have here today is can we make that even more decentralized, more trustless because that's what Bitcoin is and also what free and open source software is and also reason why I got into Bitcoin in the first place because I like OSS and I've been working on open source software for a while now. So trading. Let's talk about trading first before we talk about marketplace. So trading, how to make trading works on a Bitcoin system. So firstly before we talk about that, we have to introduce the concept of ordinals and cardinals. So it's a name that ordinals user came up with to differentiate between non-fungible and fungible. So the non-fungible satoshi is known as all-know so everything can be tracked. Cardinals are, it can also be all-know but just basically just a way to say that these are just Bitcoin, these are just satoshis. So just to say, just to call it cardinals. They are technically also all-know, but you just don't have much value. So the beauty of Bitcoin model, the UTXO model, the unspent transaction model basically allows for multiple input to multiple output. So you can send, if I it just like, it works exactly like a real world dollar bill. If you go to a stall, you go to a restaurant, you want to buy let's say a drink cost $7, you have $2, $5 in your wallet. You can pay the person you're going to pay the cashier $5 and you're going to send $7 to the restaurant, you're going to send yourself $3 back. So that's basically how Bitcoin system works. And this example that I just gave a hypothetical one, I have two inputs which is two of my $5 bills and two outputs, which is the $7 to the restaurant and $3 back to myself to a new address. So that works on the Bitcoin side. So on Bitcoin we can actually make use of this very unique system to create a system where you can actually trade Cardinals in a completely trustless manner without having to have intermediary to facilitate that trade. So how it works is basically by owner of a Cardinal becoming the owner of the Cardinal taking the Bitcoin that's been paid for and then the buyer sending the Bitcoin over, which is the Cardinal and the buyer taking the owner from the original owner. So basically to switch of an input and output switch it around and the owner gets the output of the Cardinal, the owner of Cardinal gets the output of the owner. So it just works exactly on the Bitcoin system. So how it works a bit on a lower level side is either the buyer or seller. So someone has to do this first. So the step on how this works is the buyer or the seller could craft a partially signed transaction. So anyone in Bitcoin space you can craft any transaction in order for you to sign it, you need to be the actual owner. You need to have the private key to sign something, but you can craft any transactions on a Bitcoin space. So a buyer obviously is going to negotiate the price first and once you negotiate the price say, okay, I'm going to buy your NFT for owners for one Bitcoin, for instance. So I'm the buyer here, I'm going to craft the transaction with my actual Bitcoin with your or no, and I'm going to send you that transaction. I signed my part, so you haven't signed your part yet. So you're going to get a transaction which is partially signed, got to validate that. One Bitcoin is true if you accept the price you would then sign your part of the transaction to say that, okay, I accept this transaction, I'm going to sign my part therefore I'm going to send you my owner and I'm going to take your one Bitcoin. So it just works exactly like how it is, and you don't need any intermediary to kind of facilitate all that. It's completely trusted, it's also atomic. If the owner of that or no, doesn't like it, he doesn't have to sign it. Also there's also an additional feature that can be added to make sure that that transaction actually expires so that you have to sign it within a certain time so that the seller doesn't have to hold on, cannot hold on to that forever and just sign it wherever he wants so you can actually add a date as well for it to expire, so Bitcoin supports all of that. So now that that works on the actual trading part, so the next thing is, the next one that we need to solve here is that, if you own a Bitcoin Cardinal, how do you announce to the world that you actually want to sell and how do you name the price that you actually want to sell? So you can go to some of those sizes that I talked about earlier that you can just list them on sale, but the problem of doing that is that some of them may require to give up ownership of your custodial, of your owner to upload to the site, therefore you can trust the site to hold it for you and you can list it for sale there. But can we make it better? Can we make it completely trust and completely centralized? I'm sure we can. So this is what we worked on, it's called CEDO protocol, you are a CEDO space, it's still in work, I think the website is still kind of rough right now but I'm going to kind of explain how it works. So it uses a combination of two technology, IPFS and Bitcoin. So IPFS, if you're not familiar, stands for Interplanetary File System, it's to put it simply it's a torrent technology behind it, so it's like a bit torrent where you run multiple seeds and there are seeds all around the world and if you send a sender file, it's going to jump across multiple nodes and arrive at your destination. So it's kind of like a Bitcoin, I mean bit torrent technology. So how it works in this case would be the maker. So I'm going to use maker as the person that's intent to sell an all node. It works in both cases, even for the buyer so I'm just going to make it symbol like the person that intends to sell would be the maker. So the seller will create a JSON order and uploads the order to an IPFS and that gives you the CID, content ID so that order itself will contain the signature to prove that you actually own the orders that you're trying to sell. So you put it on the IPFS, IPFS will give you the CID, you then send it on the blockchain itself the CID so they get broadcasted to the world. So anyone that participates in CEDAW protocol will listen to the Bitcoin blockchain to see is there any broadcasting sale on the CEDAW protocol. So you pick up one, you pick up the CID which is a really, really small one. So it's not going to cost you a lot of money to put it on the Bitcoin blockchain. To pick up the CID, you can then grab the data from IPFS, do your evaluation to make sure that the maker actually owns the all node and it's still there and the signature valid. So the maker will actually have to sign that as well to prove that he owns that. If you see that order and you're the buyer, you're going to get the IPFS and you like the price create the partially signed transaction just like I said upload the signed partially signed transaction to IPFS so you're going to sign it on your side first and you're going to upload the partially signed because you cannot broadcast the partially signed transaction over the Bitcoin. Only fully signed transaction can be broadcasted over the Bitcoin network. So in this case, you're going to upload partially signed transaction to IPFS you will then send the offer CID through the Bitcoin system this is a separate transaction independent from the partially signed one. So you will create another Bitcoin transaction to kind of tell the seller that here's my order and here's my partially signed transaction if you agree to that if you agree to that, go to IPFS and grab the partially signed transaction sign it on your side, on your all nodes and then you just relay it. So you don't have to go through another round then to dance through the IPFS anymore because now that's fully signed the seller can just broadcast over the Bitcoin network and that completes the deal so you got a full transaction on how to initially announce your intent to sell to the eventually completing the deal so in this case there could be also multiple offers so if a really good piece of art it gets a lot of offers and you can basically decide which one you want to sign it kind of looks like on the CEDA protocol website it's got a red test right now and it's working well so CEDA protocol is free and open source, it's self-authenticating so CEDA protocol stands for self-authenticating decentralized auto book so free and open source, self-authenticating all signatures are validated before it can even be treated as a valid offer or a bit and it has a default global auto book which means that any sites that utilize CEDA protocol you're going to be able to share the same auto book globally and there's no fee involved whatsoever everything is free and it's also open to allow private use that you can have your own private CEDA auto book if you want to it's all completely open so to make it more user-friendly on birthday research we're also working on another more of a front-end website to make it more user-friendly so it's called Outsar Outsar, it uses CEDA protocol and it's non-custodial you don't have to upload anything you don't have to send us a bitcoin it's just a viewer, you go to there give it a string for you to sign so it's non-custodial you own your own bitcoin, you own your own connos and the key thing about Outsar is that the UX is going to be a little bit I mean for Outsar today it's actually quite tricky compared to Ethereum because on the Ethereum ecosystem it's very developer friendly it's very decentralized app friendly you have metamask, you have a lot of tools you have a lot of JavaScript tools for you to build whereas on bitcoin you don't have that right now it's just open up right now so there's no de facto wallet there's no default wallet if you ask bitcoin, bitcoin is what they use you're going to get like 10 different answers you can even find a trend of what kind of a common bitcoin wallet that people are using so Outsar support is very limited on bitcoin wallets today so if you buy an Outsar you don't market properly because it's just like any other bitcoin you might actually send it out to someone else if you pay like a $10,000 for a very priced Outsar because you don't market to not send it out so you have to use a wallet that you can freeze to send UTX so to not resend it or use a bitcoin wallet that supports Outsar and it's how it looks like yeah, for them it's kind of a tie if you want to learn more about it go to birthday.dev and set it up space thank you