Hey everybody, welcome to Seeker Spaces. This is a weekly Twitter space featuring contributors to Seeker Network and news from around the ecosystem. Doing this in a little bit different time than usual this week. So hopefully everybody realizes that we're having one today. We announced it a little bit late unfortunately, but
Hopefully we'll have some more people battling in throughout the next hour. We have a very interesting guest today. We have the Bidshop team. Bidshop is a polygon app actually and they're making use of secret through privacy at the service.
And if you've been paying attention to Secret Network at all over the past month or two, you've definitely heard us talking about privacy as a service. It's a big focus for us right now. So this is going to be a really interesting discussion, especially because of the way they're doing it. So we'll get started.
Let's go ahead and start with introductions. So, BitShop, see, I'll throw it over to you. If you just want to give a quick, like, 60-second introduction to yourself or just the BitShop project in general.
I realize I've got to bring you on stage for a story about that.
Okay, thank you. Thank you for that. Okay, cool. So yeah, thank you for having me. Yeah, let's hope that more people come and join us and hear about it because we're super excited to share more details about
about how everything is working. I'm a V from the BIT job team and together with a group of crazy people, we decided a year ago to tackle this challenge and make it a reality. And we've been working very hard on
delivering this product that I will soon tell you more about, but basically delivering something very new which is our encryption layer that can run on any EVM. That's the privacy of the service that you
talked about. We're just a team of super passionate people that believe in decentralization and creating value and innovation into the DeFi and NFT space. And yeah, this is what brought us to here.
Awesome. Yeah, we're going to go ahead and put this announcement out on all of our channels. Looks like there's a few other competing spaces going on within the Cosmos ecosystem right now that unfortunately might take away from this, but we are going to be uploading this to you.
YouTube afterwards and we'll probably re-promote sound clips from it and stuff. So definitely going to be a useful content and let's go ahead and get started with the conversation.
Give us a brief history of itchup, how do the idea come about and what led you to finding secret network? Cool, so I think it all started a few years ago when there was a very successful kind of auction mechanism running in there.
were the portion of the team is based including myself and this reverse auction offered kind of a really cool gain-file experience where players could compete against each other and play spades and win real prizes if
was iPhones or whatnot in the fraction of the price. And that was due to this kind of gamified auction that provided very incentivizing rewards. And the main issue with it was that it was very challenging to prove the integrity
of the host of the auction and to prove that it's running fairly. So eventually things just broke down and we thought to ourselves a year ago more or less this mechanism, this game auction worked so well. We have to find a way
to make it in a decentralized way so people can enjoy it and there won't be any doubt on the integrity or validity of the auction results and the fairness of it. So this is kind of what brought us to trying to figure out how we can do it and how we can develop
Now the main issue is that we had to create a decentralized game that was the main goal and then we had to find a way to leave some of the information completely open and available.
to all the players, while leaving some of the key parts or the sensitive parts that differentiate between different players, take that part and have it encrypted. And so we had to create kind of this separation between
on chain data and and and crypt only part of it and we realized that we can integrate to secret and and create that communication layer that separates the and chain data and crypt only part of it and still keep
keep completely decentralized games. We were lucky enough to have secret not only close neighbors to where our office is, but also to have super awesome integration and workflow through the development process, which
allowed us to prove that we can create this game and we can create what was a very, there was a lot of integrity issues on the web to space to create a decentralized version of it that is working and, and provably fair.
Very cool. So you guys actually met secret labs. You guys work together over there in Israel. Yeah, definitely. We've been to the office a few times. Our development teams worked together through the integration and figuring out how to best.
we can utilize the secret capabilities to our game mechanics and everything. So yeah, there was a really close communication and back and forth and that's I think the foundation to what allowed us to develop it together.
That's awesome. So I know there's something called liquid factory as well and Bidshop is kind of like a product underneath it. Is that right? Yeah, so I would say that everything would develop if we can find the technology part, which is the engine that allows us to develop
games and all kinds of implementation. That part is part of a liquid factory which is kind of the hub, the facilitating organization or company or entity that we define for this technology part and business
Each of is one of the first implementations of that technology. And it is implemented through an auction game where players compete between each other in a completely decentralized way. And it's kind of a bidding game where some of the information, which is, for example,
the value of the bits that I'm placing is encrypted, but the position, the relative position of them is open and shared between people. So I can know if my bid is above or below yours, but I won't know what is your bid's value.
got it. And so the overall idea behind this gamified platform is it allows users to make small bids on either fungible or non-fungible assets with the chance at possibly winning the auction.
Now if they don't win the auction, they've only spent a little bit of money, but they have the chance to win with just a small amount of money put in, they have the chance to win something very valuable. And this unlocks liquidity for the seller basically. That's the basic idea right?
definitely definitely so I think the easiest way to understand the concept of the liquidity generation part is imagine any type of a raffle or lottery mechanism where every person buys a lottery ticket for a small price and then you can
can win the prize which is significantly larger than the ticket itself. But what's different in our game is that while we do have this element of each of the players investing only a small portion in adding and contributing
to the general liquidity piece by piece, the chances or the ability for a player to affect their chances of winning is much greater and we proved it in the six months or so that we've been running our test net and
beta minute where we have ongoing auctions running and also right now we have auctions running on our beta minute and you could see that players that have been coming and learning and understanding the game theory aspects of the game
were able to win consecutively and have kind of an advantage based on their skill. And so that's I think the biggest difference we have between simple lottery mechanisms and our auction game.
Okay, that's really cool. That's something I didn't realize actually. So it's there is a strategy to it and maybe the more you play it, the better you can get at it. Yeah, yeah, definitely.
and we've seen it and maybe we can talk a bit about how the game works and then you can understand what's kind of a potential strategy.
Yeah, so you have a few different auction products. Let's start with whatever one you think is. Yeah, however, however you want to do it. Okay, perfect. So I'll start with what's currently live and what is our focus both now on better maintenance and also what's going to lead our main launch with
which is starting on Sunday. So that is the classic reverse auction, we call it, it's a style of a reverse auction, I'll explain exactly why. And we call it the initial bid offering mechanism, which we call it because it is
part of how we are distributing our tokens is part of the launch but we'll get to that in a second. So let's focus only on the auction gain and try to understand the mechanics of it or how it works. So I think the easiest way to understand it and it's a bit complex so bear with me but think the easiest way to understand it
is that it's very similar to the battleship game that we played with kids where you have your own ships and you're trying to sing the other first in ships and you're guessing where they placed your own ships. Okay, so let's imagine that our auction is kind of
a battleship but instead of ships you have your own bids and it's many players versus many players. So everyone against everyone trying to destroy other bids or other ships by placing their own bid on another person bid
And by that day, destroyed that person bit. And the winner of the auction is the one holding the highest rank bid that wasn't destroyed when the auction ends. So let's say, give an example. I think it's easier to understand.
Let's say we have a grid of possible slots from 0 to 99, 99 being the highest possible slot you can place your bid at. So you're coming to the auction and you're the first player, so probably you're going to place your bid on 99.
players looking at the rank table they will see that there is one player playing and they are ranked number one but they don't know the value or where they're hiding their own bid so a different player comes in and probably or most likely they will also place a bid on the
highest slot which is 99. Now by doing that it basically destroyed the other the existing bid that is on slot number 99 and now this slot is burnt it's destroyed and no one can place a bid there however no one knows
that this slot is burned, okay? Because again this is the part of the element that is encrypted. Only the two players that plays the bid on 99.99 have are now aware that this slot is empty, it is burnt,
and the highest possible slot now will be 98. Okay, and so let's give another example maybe understand a different element of it. So now I'm, I got burnt on rank 99 and I'm placing another bid now on slot
number 90 and I see that my rank is 5 so I know that somewhere between 90 my own bid and 99 which is the highest possible slot somewhere there in this and 9 slots there are
four bids that are hiding and what I'm trying to do as a player is either try to burn them or try to bid above them. So if I burn them, let's say I placed a bid on 97, so now and I saw that I managed to burn someone.
So now my bid on 90 that was rank 5 is is jumped up to rank number 4 Basically, I'm going closer to the top and so the way I play the game as a player is kind of a big reaction mechanism where I place a bid
and I see the rank of my bid. Based of the rank I can estimate how many or where do I want to place my next bid above me. However, I might place a bid and get burned, which means that probably someone already placed a bid there
And in that case, I would probably place a bid on a lower slot in the possible slots. And this is a very dynamic game where everybody is trying to find the possible ceiling, the possible highest available open
slots to position their bid on and get the first rank. So everybody is fighting everyone. Everyone can know only where their bids are positioned compared to other players but not the value or not the slots where other players are positioned.
And there is just a game of a burning and placing more bids and trying to figure out where is the ceiling until the auction time or ends at which point the user holding the big and the highest available rank is the winner.
very interesting that something pretty unique that I at least haven't heard of anybody doing before. So you said in this example that 99 was the maximum. Is there actually a maximum or can it always be higher? Can someone always bid higher?
So you see it's the goal is to be rank number one you have to be able to go higher right? Right, but I just want to clarify that the numbers are completely abstract. So it's not that there is any value attributed to slot number 99. So in practice we
have 10,000 slots from 0, 0.00 up to 9, 9.99 and these slots are basically the C where I can plant my ships, my beads and there is a ceiling, there is a max
max value to the bid which is 9.9.9 and then this is where the game starts and as the game evolves and more people place bid in the top area of the slots then they get burned and imagine it's kind of a war
in the whole 99.xx so everything is burned there and now the highest possible place for you to put your shaper to put your bid is 98.0 something.
So once a slot has been bit on twice, it's completely retired basically from the game and you have to start going lower. Exactly, but only you know it. Only you as a person that plays the bid on that slot can know that it's out of the game.
So if someone else tries to come along and bid on that slide, they will know what happens. They're immediately destroyed.
Okay, so they get a notification. Yeah, yeah, yeah, they get a notification that this slot is already burnt, which which stands in indication for them. Okay, I should probably look somewhere lower in the slots for an available room for me to enter the game.
Yeah, it. Okay, cool. So that is what you just described was the initial bid offering model. Yeah, so that's yeah, that's the reverse auction mechanism. And what we're doing. And I guess we'll talk about it a bit more when we talk about
next week but we're taking this auction game and we are integrating it into a kind of a flywheel that we're calling the IBO flywheel, the initial big offering flywheel. We're creating incentive for people to play in
the auction to place a bid by getting them volume rewards for being active and playing. So there's kind of an incentive for people, let's say they they placed bids by buying them for a dollar or a dollar fifty or
or whatever, and every hour or two hours we are distributing 10,000 bid-stoken to all the players that contributed to the game. So it becomes kind of a farming mechanism where people not only play to win
but they also play because they say, "Hey, according to the volume so far in this distribution cycle, it's worth my time or worth my money to place beads in the value of five dollars because I'm going to get a piece of
of $1,000 distribution of tokens. So that's the farming aspect of the IBO mechanism. And we're also connecting it to the fact that after we generated this incentive for people to come in
and participate in the auctions and play speeds through the fact that we are distributing tokens every two hours. We are also taking the profit generated from these successful auctions and distributing the profit back to stakers
of the token. So it becomes kind of a flywheel where a player comes in, they place a bid, they earn volume reward in our token, in bid token, and this bid token they can stake to earn Ethereum rewards from the fact
that we are distributing all the revenue that we're generating as a platform to our stakers. And so that is what is aimed to support the price and also generate this flywheel and incentive for people to participate in the auction.
Very cool. So even if a user doesn't end up winning a particular auction, they can still end up receiving rewards just for participating. Exactly. Exactly. It's kind of a win-win situation now.
Nice so there's a few different auction products that you're able to provide with this model right? Yeah, we talked about initial bit offering you want to go into maybe some of the other models Yeah, I'll go I'll touch them briefly and I'll just say that
Once we figured out the way to generate this encryption layer on top of any EVM, now we have kind of a sandbox of what we can do and what we can develop with this technology. And this is how Bichov connects to a liquid factory. But there is also
One implementation is the reverse auction that we talked about just now. But another option is, for example, a silent NFT auction. So let's say I want to have kind of a beating war and in this case it's a classic beating war.
where people just give an offer of, let's say, this is a board day, although it's been crashing lately, but let's say this board day, I want to buy it for 30 Ethereum. And then the different guy wants to make another offer. Now what we're doing is
We are encrypting the value of the author, but we're still providing feedback on what is the position of my offer. So let's say I made an offer of 33 and I can I can see that the position of my offer is is
fourth but I don't see what value is behind the offers that are above me. So I'm trying to win the auction by beating higher but I never know how high I need to go and then kind of a discovery process and
very similar to silent auctions that is impossible to do in a decentralized way unless you have this encryption layer. So that's an example of the silent NFT auction. A different example is the
deferment auction where people can say how, let's say, it's a new collection that wants to mint, but it's very difficult for them to define what is the mint price that will generate the
most engagement and participation of the new community that they're building. So basically they're participating in this firm-in-to-oction and in this auction anyone can say I'm willing to mint five NFTs or XNFTs
for a specific price. So let's say it's a it's a new a zookey collection and I'm saying okay I'm willing to mint five NFTs each of them for half an Ethereum and then I'm positioned somewhere in the in the rank table and the rank table should
How many people or how many people want to meet above me or below me, but I don't know what is the mint price that they are aiming for. So eventually I can look at the rent table and I see let's say this collection only has a thousand
NFTs. So if people are placing mint offers for a total sum of 1000 NFTs that are higher than my offer half a billion, I'm out of the money. So I need to
increase my offer. Let's say I want to say, okay, now I'm willing to buy even only one NFT, but for five of them. Suddenly I see that I'm positioned on the second place in the ranked table. So now I'm kind of, I'm in the money. I know that most probably I will be in
the mint. And in that way, there is kind of an organic way for collections to define what is the mint price by letting the community decide what is the fair value that they're willing to pay.
So yeah, so that's another example of how we're encrypting some of the information, but still keeping all the game mechanics or the auction incentives mechanics available for people to affect people and to allow them to auction out for something.
Yeah, that's really cool so that it allows price discovery to happen organically and this really wouldn't be possible unless the price was encrypted. Exactly, exactly.
And this can be used not only for NFT options, but also for like a typical token launch, right? For a fair IDO. Exactly. Take exactly the same concept I said about the NFT. And instead of the NFT, the replaces with a token launch.
and just how much people are willing to buy that token for and how many tokens they want to buy. And you got yourself a third distribution of token loans with a price that the community defined worthy for them to buy it in.
Very cool. And is there any other kinds of models that you cover? I think these are like a few examples. We have a few more in our pipeline, but as we will continue sharing them, we will share more details about them.
Sounds good. All right, well, we've covered the basics of what BitShop is. I would really like to talk about how BitShop makes use of Secret Network for privacy as a service because I don't know if we've really
I'm not sure if we've said it all yet, but Bichop is actually an application on Polygon, which is very cool. This is the first example of a Polygon application that makes use of privacy as a service. And I think we'll probably keep it at our
high level, but I'd love to talk about just the basics of the architecture of how this works. And we have we have Erdem and here he is our dev rail guy. So let me just hand it over to him and I'll let him host this part and walk us through that.
Super. Uh-oh. Uh-oh. I have to say something now. Now we have this call before the guy knows how it works. I'm just curious if you're going to explain how it works. Brian, one doesn't know, like privacy services, the ID that you can leverage secret contracts to enhance
the experience we're using to show in your application without actually having your application on secrets. And there are a few examples here and there we've already covered in the past and there are blocks about it but I think the first real main example is pitch up. So we're very excited about what they've built and
I think we all thought of it as a solution we could expand upon so it's really cool to have you guys built this out so with I further do I guess I'll hand it for you and maybe you can in them. Can share how it works and like an overview with
without too many technical details. Because I'm sure we would lose our audience if we go too much in depth. So I really keep it in high level and we also have our light paper when we go where we go a bit more in depth but let me just go through a bit of
elements and how it all works together. And I hope I think that this will give you everybody good enough understanding of how everything works. So, so in the high level of the architecture, there are three, three elements, three components. One is the polygon network. And, and
This is where we host the game and the smart contract and the rewards distribution and the beads fee management and all the other non-private aspects that are required to operate the auction itself. The second component we have is used for
as I mentioned before, only I know the value of the bids that I'm placing. Nobody else can know it. And we use the component of the secret network to encrypt the bids and ensure that there is
secure and private building process. Then the third component is the communication layer which facilitates all the secure data exchange between the polygon and the circuit contract and ensure that there is kind of a seamless interaction between
the two networks. So, practically what happens is that the users, the end user, the players are interacting directly with the secret and bidding and basically the interact with secret and encrypt their
the data is only then submitted to the Polygon Network for indexing and to sync into their secret contract. And so the communication layer makes sure that the data is
that there is a secure exchange between the encrypted bid data between polygon and secret network and maintaining the game's privacy and integrity of course. And I think that maybe to help people understand kind
of the flow of how everything happens, I can go kind of on the steps of the auction flow. So we start from the encryption key generation, where an encryption key is generated from six
network and this encryption function is available for all users, like I said before, to directly from their browsers to encrypt their bits, but it cannot be used to decrypt them. And then as users play, they play
base bids and they encrypt them directly against encryption function within the secret contract. And this process does not reveal the bid amounts to anyone and ensures privacy. And then we have the cipher and hash transaction where
encrypted bids, the ciphers and their corresponding hashes are then submitted to the EVM contract hosted on the Polygon Network. And with that information, we have the rank table that always shows the dynamic ranks of
all the active bits so players can plan where they want to place their next bits. So the custom communication layer I mentioned before feeds the ciphers to the secret network which generates a real-time rank table based on the encrypted
bits. And then only when the auction ends, the auction is concluded after a specific time ended, which is the auction duration. And no new bits can be placed or processed. And only then the key is released. Again,
our custom communication layer releases the encryption key, allowing all the parties to equip the bits. And this process is facilitated only after the auction ends to ensure again that there is a fair gameplay.
Eventually the last part is the finalization. Where again the cost and communication layer it feeds the decrypted bid and out to the EVN contract on polygon for finalization and rewards distribution based on your ranks and if you are in the winning position.
So I hope I didn't lose most of you guys and I hope it was kind of clear enough and again there's much more details in our documentation but this is kind of the process of how we are connecting between polygon and secrets through our communication layer to make it all work.
Yeah, so it's, I guess the quickest overview is would be encrypted data yourself. Send it to, send it to, like it's automatically sent to secret in order for that to parse a transaction to polygon.
and then that is what displays on UI. And when you make a decision on Oligon, it's returned back to Secrets in order to check whether your value matches whatever is already in the database of the specific bit or of the specific items. Absolutely. Yeah.
Well, I think we've covered a highly technical subject in a very short time period, so that's cool. I've created a page in our documentation which these outprivances and servers into four different design concepts. So for anyone
is interested in learning a little bit more about Lake. What are the potentials of what are the different design concepts you can look there, which falls under design version 3, which is the idea that you have private inputs, but delayed public outputs. And certain moments in time that the output
the auction of course will be known and it actually designed mech and it allows you to design very smooth applications. I think you very well show depth and it's very smooth. Thanks for that I think was really really cool to see the test that already and I'll be forward to see the full launch coming
- Awesome, appreciate it, thank you.
So we got a couple of significant dates coming up very soon for a bid shop. What are you got coming this weekend? Yeah, so we have our first of all, we have our bid domain and can still running. We're going to shut it down tomorrow at 10 a.m. UTC and that will be
be basically the final snapshot to calculate loyalty points for the coming air drop. So anyone that wants to play around and experience the game and also at the same time earn rewards and guarantee their allocation in the coming air drop, you have
I guess less than 24 hours to do so. Next event will be IDO, which will be hosted on both engine starter and pools on June 30th.
We have the TG, which is basically us releasing the main version of the auction together with the deforming opportunities I discussed, together with our token.
everything running smoothly, hopefully, smoothly together for people to jump in, start farming the token, start winning a Ethereum prizes and having fun.
Very cool. So this I do on June 30th is that an I do of the Bid Shop token or is that going to be another project that's launching on Bid Shop? It's still we're keeping things a old school for now.
We will be sharing more details about how projects can do their own launch from within the teleclip factory or the big show ecosystem in the next couple of months.
For now, we're focusing on completing the launch of BITCHOP and our BITCH token. So that will be happening on the 30th and on the 2nd of July, the TGE and the release of the token to the wild. Yeah, I got it.
Okay, cool. Well, we are at the 45 minute mark. I'm going to go ahead and ask if anybody in the audience has any questions for bitch up. Feel free to go ahead and put your hand up and we'll bring you on stage. And the meantime, is there anything that we haven't already covered that you'd like to talk about bitch up team?
No, I think we covered everything.
Yeah, I think we're good. All right. Does that case making sure that everyone knows app got beach of the CEO is where they can go ahead and check the game and and they're on.
app, the shop.io. Okay, cool. And if people want to get involved with your community, what's the best way to do that? So we have our Discord, which is where everything is going down, our announcement.
being sure then all the sneak peeks of potential products and the feedback channel we have that we have been learning a lot from from our community and feedback of the players. So everything
is happening on our Discord. Cool and I guess I can find a link to that on the main didch app website. Yeah on our Twitter or on our website or on our devs.
All right, well, if there is anyone that has a question, go ahead and put your hand up, we'll give it a few more minutes. And if not, we'll go ahead and wrap things up. We appreciate you being here today, bitch up.
very excited about what you're building and looking forward to diving even more into the technical side of it later on whenever the white paper comes out. We're actually going to be putting out a blog post about bitch
on the Secret Network blog on Friday. So in case you were listening to the space and maybe you wanted to learn more, you can also check out that blog and that I'll have some more details in there.
But we're now thanks for calling everybody and thanks, but shop team for being here and we'll see everybody on the next secret spaces. Actually, I think next week we're not going to
do it on Tuesday because it's a holiday in the US for the July but we will be having a space next Thursday on July. Let's see. Let's see.
Yeah, July 6th at 4pm, U2C will be doing a ecosystem update space. So we'll be having a lot of different secret network applications just giving some quick updates on what they've been working on. So make sure you mark your calendar for that. And we'll see you here next week.
Have a good one everybody. Thank you guys. Bye bye.