Episode 21

Revolutionizing Decentralized Computing: Alessandro De Carli on Acurast's Mobile Device Network (Part 1)

In this episode of Unblock'd, Dr. Jemma Green sits down with Alessandro De Carli, co-founder of Acurast, to explore how this innovative platform is revolutionizing decentralized computing by harnessing the power of everyday smartphones.

Alessandro reveals how Acurast allows people to contribute their mobile devices to a global computing network that already includes over 106,000 devices and 800,000 CPU cores across 140 countries. With his background as former lead mobile security engineer at Credit Suisse, he explains how Acurast leverages trusted execution environments to create a secure, unstoppable computing infrastructure that rivals traditional data centers.

Key topics covered include:

  • How Acurast gives mobile devices a second life in a world where 1.4 billion new phones enter the market annually
  • The surprising computing power of modern smartphones compared to traditional servers
  • Security advantages of mobile trusted execution environments for confidential computing
  • Token economics that balance inflation, rewards, and usage fees to create a sustainable ecosystem
  • Real-world applications including securing $100 million worth of Bitcoin through wrapped tokens

Whether you're interested in Web3 infrastructure, alternative computing models, or innovative token economics, this episode provides valuable insights into how decentralized networks are challenging traditional computing paradigms.

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Guest: Alessandro De Carli from Acurast

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UnBlock'd podcast with Dr. Jemma Green

For more information on Dr. Jemma Green

Visit: https://www.powerledger.io/

Or connect on LinkedIn: https://www.linkedin.com/in/jemmagreen/

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Produced by: Podcasts Done For You

View this episode on YouTube @PodcastsDoneForYou_clients

Transcript
Anthony Perl:

Revolutionizing decentralized computing Alexandro Dali

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on Acura Mobile Device Network, part one.

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In this episode, Dr.

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Gemma Green sits down with Alexandro Dali,

co-founder of Acura, a groundbreaking

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platform that's transforming the

decentralized computing space.

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Alessandro shares how accuracy allows

people to onboard their smartphones

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to a global network, creating

a powerful computing resource.

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With over 106,000 devices and

800,000 CPU core already connected,

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they explore how this technology

gives mobile devices a second life.

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The security advantages of trusted

execution environments and the

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innovative token economics that

make the system sustainable.

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With his background in mobile

security, as former lead engineer at

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Credit Suisse Alexandro explains how

accuracy is creating an unstoppable,

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decentralized computing network

spanning 140 countries that rivals

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traditional data centers in capacity.

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Jacob Stanler from Power Ledger

also joins the discussion.

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I'm your co-host, Anthony Perlin.

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Whether you're an investor or

a startup looking for insights,

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it's time to get unblocked.

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Jemma Green: Alessandro,

welcome to Unblock.

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You are a co-founder of aist, which

is really gaining attention in

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the decentralized compute space.

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For those that are new to that, could

you walk us through what AIST is

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and the problem that it's solving?

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Alessandro De Carli: Yeah, absolutely.

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Hello Gemma, and thank you so much

for, uh, having me on your podcast.

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I'm very excited to be here.

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What actors does.

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In a nutshell is it allows people to

onboard their mobile device, so their

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smartphone and dedicate the compute

power that that device has in it to

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the network so that somebody else is

capable of utilizing that resource as

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a compute unit for their project to

host something to calculate something.

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Or even to observe something.

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That is what AC is doing in a nutshell.

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Taking the billions of phones out there

that get churned through regularly,

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and every year we have about 1.4

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billion of new mobile devices

that reach your pockets, right?

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But that also means that every year, 1.4.

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Billion devices land on the secondary

market, and Accu gives them basically a

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second life and allows people to really

participate in a super decentralized

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network with their mobile device.

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Jemma Green: Great.

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And how many mobile phones are

connected to the Accu Network right now?

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Alessandro De Carli: Well as we

speak right now, and this is a

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number that you can look up live

because the network is already live.

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We have 106,000 mobile devices connected

offering their compute to the network.

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Jemma Green: Amazing.

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And what does that translate

to in terms of like the amount

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of storage that's available?

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Alessandro De Carli: I think ultimately

storage is maybe the thing where mobile

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devices don't shine the brightest.

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However, where they are amazing is in

the compute density, and with these a

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hundred thousand plus devices, you end

up having more than 800,000 CPU cores.

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And many people think that these CPU cores

are less performant than let's say, the

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ones in servers, but that's not the case.

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There is a CPU benchmark score that

does not discriminate between server

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CPUs and mobile CPUs, and you will quite

quickly see that, especially because of

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the Apple chips, but also the Qualcomm

chips that are in Android phones.

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They actually are pretty much and

very high on top there, so you really

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do get a lot of compute and these

devices also have quite a lot of ramp.

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So compute and ram is where they excel at.

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Let's also not forget, especially now

in the era of AI and whatnot, the GU of

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the mobile device, there is something

really special about it and it is

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that mobile devices have a so-called

unified memory architecture, and what

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that means is that your CPU and your

GPU are capable of utilizing the ram.

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So if your CPU gets.

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24 gigs of ram, which some glasses do

have, then your GPU also gets that,

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which is, uh, interesting for running

things like LLMs and so on and so forth.

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Jemma Green: Got it.

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Alessandro De Carli: But

it's not necessarily the

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reason why we started this.

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Oh, because my background

is in mobile security.

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I used to be the lead mobile

security engineer at, uh,

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credit Suisse back in the days.

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And basically, I.

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Built a very deep relationship with the

security aspect of mobile devices because

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about 14 years ago, I then decided to

leave the bank and create an own company

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that was offering mobile security to very

large enterprises all around the globe.

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We have four out of the five

largest defense companies

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in the US as our clients.

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And that's also why I ultimately started

Accurus because if you want to create

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a decentralized compute network, there

is no other way than having it secure

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because there's two aspects that are

really, really important for a real world

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adoption of this technology, and one is

that nobody is capable of faking hardware.

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That's where distrust of execution

environment comes in Really, really

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handy for mobile devices, and you

can basically see the proof of that.

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If you go on social media channels

like Reddit or even YouTube and the

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type accuracy, you will see a ton

of people showcasing their setup.

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But the other aspect is also

the fact that you're able to

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run the compute confidentially.

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So let's say you have iPhone that

you're now onboarding onto accuracy.

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If I need to compute something like

running an LLM and want to give you that.

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It's really important that you're not

capable of inspecting the data that I

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share with at LLA because otherwise,

yeah, basically confidentiality really

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matters in this case, because otherwise

nobody's going to use a more public

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kind of version of a cloud, right?

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Mm-hmm.

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So that's ultimately the

reason why I started with aist,

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but then realized the scale.

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Jemma Green: Got it.

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I mean, I think it would be helpful

to get like contextualize the scale.

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You said you talked about

like 800,000 set use.

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What does that translate to in the

way that, like how does that compare

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to, say, a data center or some other

metric that they could ground that in?

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Alessandro De Carli: I mean,

there's many ways to compare this.

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The standard mobile device has about

eight core and eight gigabytes software.

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This is a median modern device.

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Today, if you take a look

at something like an AWS.

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They offer you also servers that have

that, those specs, but those servers will

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cost you per month around 200 to $300

with those exact same specs in terms of

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compute and run that you get out of it.

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Mm-hmm.

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So now ultimately you are

able to run a hundred thousand

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compute units on the network.

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Which will translate to a small to medium

sized data center here in Switzerland.

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So basically, if you take a look

at Green, which is a data center,

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which is posting one of the, uh,

hyperscalers is not official, but I do

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know that, and they have about 50,000

compute units in their data center.

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So Switzerland obviously is not a

huge country, and the compute units

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tend to get way more if you go in a

country such as the us but for Swiss

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scale, and this is basically where

we are located, we already would have

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the crowdsourced capacity of two data

centers ultimately in terms of compute?

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Yeah.

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Jemma Green: Mm-hmm.

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Gotcha.

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That's useful.

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How do you guys make money?

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Like is it the same model as Amazon

Web Service who you mentioned or

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other cloud service providers?

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Like how do people pay for the

service and how do the participants

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in the network benefit and how

does that curious make money?

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Alessandro De Carli: So it's

important to say that the.

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Network.

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The accuracy network and protocol is set

up in a very, very decentralized way.

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This means that there is an entity that

bootstrapped the whole thing, and this

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entity is called the Accuracy Association,

and it's a nonprofit association which is

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located in Switzerland and basically is

there to be kind of legal entity that has.

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And Kick started this network, but it

is a completely decentralized network.

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So now that it's out and it started,

it's not like the Actors Association

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would be capable of stopping it anymore.

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And that's.

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One aspect that me personally I find

very interesting because ultimately

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similar to how Bitcoin operates,

and no single entity is capable of

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shutting that down for accuracy.

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Now, instead of the service of having the

ability to transfer value, you have the

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ability to provide and get the compute

like decentralized compute, right?

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This all around the globe,

no matter where you live.

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We have now more than 140 countries

and that we're covering with people

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offering computes in those countries.

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That's something would never have

been possible with a centralized

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setup because all of a sudden

you need to create all these

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subsidiaries and maybe some countries

are more interesting than others.

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So you wouldn't think of it

that way when Yeah, calculating

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the business case around it.

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So now we have this very, very accessible,

unstoppable network all around the globe.

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The question is, how does value

get generated and the value

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that is being generated comes

from your real mobile device.

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So there is the security

aspect that I mentioned before.

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We have a couple of companies

that heavily leveraging that one.

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There is one company that is using

this to wrap and unwrap bitcoins.

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They're securing about a hundred

million dollars worth of bitcoins

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just with accuracy alone.

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That service is obviously a paid

service that people are then paying

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in accurate tokens and how the.

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Model around the network works.

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Is that similar to how Bitcoin

has a fixed inflation that gets

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distributed among whoever is

participating in lock production?

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With ura, you have a fixed inflation

that is distributed among whoever

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is participating in providing

compute and is also advertising

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their compute availability.

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Now whenever someone utilizes compute,

what you end up doing is that you

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completely just burn as kind of compute

fee Acura tokens, so that ultimately you

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do have a way to generate that flywheel

wheel right, and counter this inflation

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that I mentioned in the beginning.

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So ultimately, if you're able

to reach a usage capacity.

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Of about 20% of the network.

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The whole, yeah.

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Economics is designed so that the

supply starts to become deflationary,

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and that's also where the, the

value ultimately can be captured.

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Jemma Green: Got it.

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I mean, I think people that are deep

in the blockchain space will totally

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understand what you've just described.

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But for people that are perhaps new to

the topic and are listening to this,

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could you just explain in, in a bit more

layman terms, like the commercial model

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and the business model for people to

get paid and how accurate makes money?

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Alessandro De Carli: Yeah, absolutely.

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So if we take a look at a network

that maybe people are more

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familiar with, the Bitcoin network.

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The way the protocol works is that it

is a blockchain and the most important

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thing is to create blocks so that

it can offer its services to people.

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Now, in the context of Bitcoin,

that is the ability to transfer

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value and hold value, right?

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The this payment idea behind it

Perus, the idea is that you basically.

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Purchase compute and consume

compute similar to a Bitcoin miner.

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This is the entity that

generates those blocks.

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Also, entities on the Acura network

get rewarded with the accuracy token

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whenever they are kind of advertising and

onboarding their compute onto the network

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and whenever that compute is being used.

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So what this ultimately translates

to is that you're able to have

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or get rewarded with a token.

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This is the accurate token that

you then ultimately will be able to

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convert into whichever currency that

you want through a exchange, be it a

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decentralized or centralized exchange.

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It's very similar to how Bitcoin

mining works in those regards.

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Great.

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Jemma Green: And then for Accurus

itself, how does it make money?

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Does it take a percentage or

is there some other model?

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Alessandro De Carli: So accuracy itself

only requires money to be able to

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fund and foster and promote and make

visible the whole protocol and network.

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It has not the purpose, like the

Accuracy association just to be here.

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Here, it has not the purpose to

pursue any profit making activities.

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However, obviously there are

tokens around and how this.

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Mission can be fulfilled long-term

is through a treasury, which is

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then on chain, completely on chain

controlled by the token holders,

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and that treasury is constantly

being replenished by the inflation.

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So that ultimately you

then as a token holder.

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Will be able to decide which activity

makes the most sense at that specific

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moment to further grow the network.

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So it's very much aligned

with its community.

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Once the whole system is completely,

let's say at some point, maybe you will

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not even require an accurate association

anymore, similar to the fact that there is

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no Bitcoin kind of entity controlling it.

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This is also the power behind these

decentralized networks, right?

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It's, it's all kind of designed and

set up with some crypto incentives and

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that works around around the token.

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Now, you may ask, okay,

how are early contributors.

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Being rewarded and whatnot.

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Obviously early contributors also

do have token allocations and are

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incentivized with token locations

such as the team behind hackers.

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So there is a very much an

alignment for the token holders

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and the early contributors there.

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Jemma Green: Great.

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Thanks for unpacking that really

simply as well as in the more

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complex terms, Alessandro.

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Jakob Stammler: Absolutely, and I think.

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Just kind of going off of what you've

already said in this regard, I think

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you are obviously not just part of

this Urist association and a co-founder

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of this accuracy protocol, but you're

also one of the founding members of

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the Deep End Association and with Deep

N Networks where accuracy obviously

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is part of the deep end space.

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There's always a question of token

ons, and you've mentioned that people.

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Pay for some of the services.

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So the demand side of accuracy services

are paid for in the A CU token.

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Of course.

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Then there's a question about when

this token rises, doesn't the service

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become more expensive and not as.

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Available anymore to your partners.

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So how do you kind of bridge between

this supply side, hope for the token

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to increase so that you as a processor

have a return on your token that

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you receive, and the demand side

that uses the token to pay for it.

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I know you have a dual token system.

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Maybe you can elaborate on

how this factors into this

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whole, um, process as well.

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Alessandro De Carli: Yeah, absolutely.

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I think it's a very clever question

because it's also a question about the

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long-term sustainability of the project.

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As we all know with crypto projects, the

value of the PO is ultimately what the

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market decides that that value should be.

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Right?

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And these can be, especially

for early projects.

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Quite a lot of swing and volatility

in the token price, which obviously

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would immediately hurt a system where

people cannot really plan ahead on

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how much their compute costs would be.

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Right?

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Ultimately.

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But this is where we apply a system.

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And it's just to maybe

close off that bracket.

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It's also a bit a vicious circle, right?

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Because the, the moment you are

really, really successful and people

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are using it would then probably

also be the moment where it becomes

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very expensive for people to use it.

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So that is a negative feedback

loop that you absolutely need

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to take care of and think about.

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And I thought about that for a really,

really long time, and with the very first

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version of how we thought about billing

and whatnot on the Testnet, we did have

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an issue with exactly this topic that

you're mentioning, and I will quickly

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explain how the first version worked and

why that version had that issue versus

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then why the new version that that we

just launched does not have that issue.

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So for the first version, it

was very, very kind of naive and

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natural to say, look, whenever you

have computer availability, the

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network will pay for your heartbeat.

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And whenever someone consumes

your resources, then you should

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basically be paid by whoever

is consuming those resources.

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Right?

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That's a very naive way, non

crypto way of thinking about this.

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But after user surveys, what we

found out is that people providing

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compute, they don't necessarily

want to be part of this lottery.

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They don't want to today earn this

much, and tomorrow earn another amount.

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It's way more interesting

if this is somewhat a stable

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amount that they're earning.

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This allows them to calculate

their ROI and whatnot.

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And this played basically in our hands.

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So now the new system has a fixed

inflation that is distributed

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among all the participants.

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If it is a single participant offering

a single CPU, then that person

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would get all of the inflation.

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If it is many, then you just receive

a fraction of that inflation.

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This means if you have a lot of compute.

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You receive relatively

little amount of tokens.

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If you have not so much compute available,

then you receive a lot of the tokens.

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So far, so good.

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Right now, how do we do the pricing then?

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Well, the pricing is basically

a multiplier on the heart

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beating reward that you receive.

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Let's say that you're part of this

pool and there is 50 million tokens

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that are being distributed annually.

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There is 50 million participants,

which is not the numbers at the

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moment, but just to have an example.

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Then everyone would receive a

single token per year, right?

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If now someone would.

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Go there and want to purchase compute

from this pool of 50 million participants,

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they would be paying five times that.

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So basically five Acura tokens.

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If you do this, you basically break

that cycle because let's assume that

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the price for a single Acura token.

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Really skyrockets becomes

very, very valuable.

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Now all of a sudden, whoever is providing

compute has a lot of incentive to provide

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more compute, and this would then dilute

everybody that is inside this pool of.

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People, and that would flash the

price of the actual compute like this.

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Although we have everything designed

around the Acura token, it does not

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really matter that much what the

ultimate price of the Acura token is

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because it's completely self-regulating.

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Right?

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So whenever there is, uh, very

little compute, then that would

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probably mean that the Acura

token is really, really cheap.

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That would mean however,

that you would need to.

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Pay more accurate tokens to

get the compute out, hence

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burning more accurate tokens.

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That is how that system works.

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But I agree with you that for a

deepen network, this is one of the

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most crucial things to think about

because you don't want to be basically.

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Deer in the headlights when all of a

sudden you're really successful and

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people really want your token and

it becomes prohibitively expensive.

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This was the big issue from

Chainlink, by the way, that they

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still haven't really solved, okay?

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They solved it with just bilateral

contracts, but it's not really

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a very decentralized way, right?

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Anthony Perl: I was gonna ask

as well, dumb it down for us.

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You've got a smartphone,

how do you get involved?

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And also I'm interested because

the smartphone technology isn't

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kind of built to last that long.

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So how do you deal with that kind of

lifespan of technology and the ability of

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it to be working well when you need it?

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Alessandro De Carli: Those are.

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Two really interesting questions.

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Let me first start with how

to onboard compute onboarding.

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Compute onto Acura is really as

simple as downloading an app from the

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stores and then launching that app.

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It's really important that Acura never

runs in the background, so if you do

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install that application, like you're

the one controlling when the computer

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is being provided and you cannot even.

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Do this by mistake, because the app

needs to be running in the foreground.

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This means that you cannot use it

for anything else on that side.

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And this was a conscious design

decision because we didn't want

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people to be impacted negatively

in the turns that they started.

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And then all of a sudden,

because a big deployment comes

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in, that uses a ton of compute.

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After three hours, the battery is dead.

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Right?

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So basically you go there,

you install the app.

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You launch the app, and that's it.

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You don't need to be a Linux leak, you

don't need to have any PhD in computer

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science to be able to onboard compute.

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So that's really easy.

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And if you go on hub.acura.com,

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you will also find out that it's

very easy to deploy stuff on Acura.

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:

So both sites are quite easy, and

you can then manage your fleet of

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:

devices directly from the Acura hub.

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:

Now the other question is how do you

deal with the hardware itself, right?

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:

Because you're saying that this

hardware is not necessarily

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:

made to last for so long.

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:

The first thing to be said

there is that this hardware is

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:

absolutely made to run 24 7.

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:

Okay?

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:

Because if someone utilizes their

smartphone as their alarm clock to

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:

wake up, they never turn off their

phone, so that's already clear.

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:

The device runs 24 7.

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:

It is designed to do so now, if you

want to let it run for a very long time.

379

:

The main issue that you're going to

have is not necessarily the aging of

380

:

the compute unit or the RAM or the GPU

or the storage, but is the battery.

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:

The battery is the, the main issue that

really where the device ages and where

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:

you can feel that the device ages, right?

383

:

I mean, think about it

also as a consumer, right?

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:

If you have a, uh, five-year-old iPhone.

385

:

You will probably not want to just

change it because it's not fast enough,

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:

because I personally cannot really

notice the performance difference from

387

:

an iPhone that is five years old towards

the one that is now the latest version.

388

:

But you will absolutely notice if

your battery is dead after half a

389

:

day, and that's typically where people

then start changing their phone.

390

:

Now for aist, we have the phones

always twenty four seven plugged in.

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:

There's no people that have

that just running on battery.

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:

This means we don't really

care that much about the actual

393

:

battery capacity on that side.

394

:

The cool thing about this spur of mobile

devices is that in computer science you

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:

have this thing called Moore's Law, right?

396

:

Which basically says that transistors

over time double and the capacity doubles,

397

:

the performance doubles and whatnot.

398

:

If you take a look at the server,

it's usually being used for 10

399

:

years plus, depending on which

kind of use case for a phone.

400

:

There's people that change

them after one year, right?

401

:

So you have something like one

and a half, two years pops.

402

:

In those eight years difference you

made quantum leaps in in technology.

403

:

This hardware is also the most

designed piece of hardware

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:

consumers can get their hands on.

405

:

Apple invests about $33 billion a

year on designing and crafting the

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:

best possible piece of hardware,

and they make more than half of

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:

their revenue with the iPhone alone.

408

:

So ultimately, you're able to just profit

from all of this technological advancement

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:

and very high density in compute.

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:

Because of that.

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:

So ultimately it's something that

plays more in our favor, but than not.

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:

Anthony Perl: And that's

all we have time for.

413

:

In part one of the discussion with

Alessandra Ali, we've explored how URA

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:

has built a decentralized computing

network using everyday smartphones.

415

:

Or part two delves deeper into

the practical user experience

416

:

and real world applications.

417

:

Join us as we hear about the

experience of running accuracy,

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:

including its onboarding process.

419

:

We'll explore how the system's popularity

created unexpected market effects with

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:

Google Pixel phones selling out across

Europe, the advantages of constantly

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:

upgrading hardware through normal

phone replacement cycles, and how this

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:

technology is making decentralized

computing accessible to everyday users.

423

:

Don't miss this thought provoking

continuation of our discussion on

424

:

how mobile devices are creating a new

paradigm in decentralized infrastructure.

425

:

Please check out the show notes

for information on Power Ledger

426

:

and other contact information.

427

:

We welcome your comments and

feedback and please hit subscribe

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:

wherever you are listening.

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:

This podcast was produced

by podcast done for You.

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:

We look forward to your

company next time on Unblocked.

About the Podcast

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Making sense of tech and money with Dr Jemma Green

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