Video #2: Chess blockchain example (adding tokens)

Video #2: Chess blockchain example (adding tokens)


Hi it’s Keir Finlow-Bates here. So in the
previous video I described a chess blockchain system, whereby a whole chess
ecosystem could be implemented on a blockchain in a decentralized manner,
allowing people to play games against each other and have their performance
recorded in an auditable and tamper-proof way, which means that you
can actually have a genuine reliable league for chess. So today I want to talk
a bit more about how by using digital tokens you can effectively add a kind of
gambling system on top of it. So I talked about players having a rankingm using the
Elo system. Now if your ranking points are represented by tokens or a cryptocurrency on the blockchain then
suddenly you add a whole new kind of marketplace dimension to the chess
system, in that players can actually challenge each other and stake some kind
of bet or wager against the person that they’re playing, and what’s more,
because it’s a blockchain you can ensure that if the conditions are met for a
particular player winning they actually can collect those winnings without
requiring any third party to handle the bet in escrow, so I think that’s quite a
neat illustration of how blockchain can disintermediate and allow people to
transact directly with each other in a trustworthy and reliable manner.
What’s more this chess betting system actually provides an example of how you
can generate currency on a blockchain. Now in Bitcoin there’s a very simple
mechanism which is that every block that is mined gives the miner some rewards
and the supply is capped in Bitcoin by every four years or so having the
reward until eventually there are no more block rewards, and that caps out the
number of bitcoins at 21 million or so. Ether on the other hand, generated
on the Ethereum blockchain is not capped so that just keeps going and going and
going. So in this chess system you can have the
currency generation by, when a new player signs up, them receiving the standard
Elo ranking in, say Elo tokens on the blockchain. So that would give you the
creation of currency and it would create these Elo tokens out of thin air every
time a player signs up. However there is one problem that needs to be solved with
this namely Sybil attacks, and that will be the topic of the next video. Ask any
questions in the comments below if you have some and look forward to seeing you
in the next video. Bye for now!

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