Dear Satoshi

Dear Satoshi …

Society has yet to fully grasp the magic within the words you shared when you published the bitcoin whitepaper. Its dynamic use cases and innovative technology have forced us to rethink how we structure society and integrate with technology. What it did was bring the world together in hopes of creating change, as we marvel at its potential applications in our society.

Thank you for inspiring and empowering this generation of dreamers with a belief that we do not have to settle for the status quo and empowering us with the ability to take ownership of our digital footprint. You’ve created a global pipeline that allows us to claim our property rights for money systems and information systems on the internet, creating the fundamental building blocks for a greater digital economy.

The ripple effects of your work has inspired me to pivot my dreams of working in financial services to creating a more equitable and inclusive financial system while re-architecting the way we interact with the web, bringing hope and opportunity to the corners of the world that need it most. Please allow me to share with you my mission, my vision, my purpose … and my dreams of the future.

Mission Statement:

BlueSky is a DAO that focuses on the increasing access to opportunity through decentralization of technological infrastructure systems, enabling access to decentralized applications and lending platforms through self sovereignty of money and data.

Our Mission, Our Vision, Our Purpose, Our Dream

Our mission is to focus on building sustainable communities globally by providing the infrastructure needed for society to prosper. In our eyes, this means establishing a footprint in local communities as well as building nodes to stitch together our local communities with our broader global community through the web. Our primary focus will be on building energy infrastructure and infrastructure for decentralized platforms, helping connect the world. Our five primary initiatives are listed below:

Green Energy — Nuclear energy power plants

Blue Sky — Smart contract protocol and mobile devices

Play — Decentralized metaverse and social media application

X-Bank — Institutional grade decentralized exchange for traditional assets, cryptocurrencies, NFTs

Winner's Circle — Decentralized sports betting exchange

Dreamfund — Programs focused on providing equal opportunity and access to education, helping bridge the gap between the metaverse and our local communities

Our vision for community building also incorporates our vision for giving back. We believe that in order for society to truly prosper, there must exist opportunities to succeed beyond our current economic standing. One way we believe that we can foster this culture of growth is by providing educational opportunities through a global decentralized metaverse. Whether it is through development of trade schools to give adults an opportunity to transition to a new career or through children connecting with each other on Play while leveraging academic resources meant to supplement their academic journey, our goal is to bring people together with the resources they need to better themselves and become the person they envision themselves to be, agnostic of the situation they were born into or country they were born in.

The ESG movement is a growing trend pushing companies to consider the environmental, social and governance implications of their operations. The idea behind the ESG movement is that companies with strong ESG practices are more likely to be sustainable and responsible in the long-term, developing a stronger presence in our communities. Our goal is to cultivate a culture that helps make the world a better place.

In this letter we will share our mission and vision for building the foundational infrastructure we believe the world needs through Green Energy, Blue Sky, X-Change and Play. In our next letter “Dear God …” we will share with you our vision for giving back through Dreamfund, creating a leveled playing field by providing all with access to opportunity allowing all to grow into the best version of themselves and fulfilling their dreams.

What are DAOs and how do they vary from Centralized Corporations:

A Decentralized Autonomous Organization (DAO) is a digital organization that is run by a set of rules encoded into smart contracts on a blockchain network. They are decentralized, autonomous, transparent, and governed by token holders, they differ from centralized corporations in that they are not controlled by a single entity or group of individuals, their decision-making process is transparent and auditable by anyone, and they have a decentralized governance structure.

These rules dictate the organization’s decision-making processes, operations and the distribution of assets. Members of a DAO can participate in the decision-making process and management of the organization by holding and managing tokens that represent their stake in the organization.

In contrast, centralized corporations are controlled by a single entity or group of individuals, their decision-making process is not transparent and their transactions and decisions are not auditable by everyone. Centralized corporations also have a hierarchical structure and the decision-making process is centralized.

Rebuilding Energy Infrastructure With Nuclear Energy Power Plants

Nuclear energy is considered to be a low-carbon energy source that can help to reduce greenhouse gas emissions and combat climate change. Nuclear energy produces 19% of the United States energy with only 92 reactors. The United States remains a global leader in nuclear energy production, producing a third of the world’s nuclear electricity.

Nuclear energy is a source of electricity that is generated by nuclear reactions, typically through nuclear fission of Uranium235. A single uranium fuel pellet (1/2 inch height and diameter) contains the energy equivalent of one ton of coal or 149 barrels of oil. Typically a single reactor holds 18 million pellets.

In terms of environmental criteria, nuclear energy can be seen as a viable source of low-carbon energy that can help to reduce greenhouse gas emissions and combat climate change.

Nuclear energy safety concerns are mitigated through control features like control rods to reduce the speed of nuclear reactions within the containment vessel where the nuclear fission occurs. Additional controls can be integrated via smart contracts and audited on a ad-hoc basis by regulatory agents.

New light weight water reactors have also become significantly more efficient at producing energy, while reducing waste. Nuclear facilities are contained within thick concrete walls to ensure containment of radioactive materials. Nuclear waste is produced but contained and stored under water in order to ensure radioactive material is securely stored.

Evolution of Blockchain Architecture: Laying the Foundation for BlueSky

Since the creation of bitcoin, we have seen consistent development and expansion of the possible applications of blockchain technology. The present state of the ecosystem has many varying models of system architecture all aiming at solving the scalability problem holding the industry back from full scale adoption, while preserving the core principles of decentralization and security shared within the Bitcoin whitepaper. Ethereum enabled the integration of complex logic via smart contract based applications, allowing computation to be executed on chain enabling the integration of on chain applications. Ethereum 2.0, Ethereum’s model for scaling, integrates a vertical scaling solution leveraging layer 2 blockchains and a lightweight consensus algorithm (proof of stake) as an alternative to the energy intensive proof of work. Near protocol integrated an alternative scaling solution to Ethereum by integrating a horizontal scaling solution via a sharded blockchain design. Cosmos integrated a hub and zone model which leverages a blockchain of blockchain design with the highly scalable tendermint consensus algorithm where all transactions are aggregated. Solana integrated a mempool-less design, an alternative to most blockchains, through a proof of history consensus algorithm that leverages a universal time clock to sequence transactions.

Our vision of the perfect architecture consists of a multi-layer network with enhanced privacy features (zksnarks technology) integrated at the local (application) level, preserving user data security. The first layer consists of a blockchain of blockchains design, producing virtually unlimited local transactions at the application layer. All transactions from the application layer will roll up into a blockchain that leverages tendermint, similar to cosmos architecture, enabling dynamic scalability and reducing latency for transaction validation at the aggregation level.

What are NFTs?

NFT stands for Non-Fungible Token, which is a digital asset that represents ownership of a unique item, piece of digital content or a contractual agreement, such as digital art, collectible items, or real estate deeds. Unlike traditional digital files, such as music or video files, NFTs are digitally verifiable data files. They are created using smart contracts on a blockchain network, which allow for the creation of unique digital tokens that can be bought, sold and traded like physical assets.

NFTs use a digital signature, which is a unique code that represents the ownership of the NFT. This digital signature is recorded on the blockchain, making it tamper-proof and verifiable, and can be transferred from one person to another. Tokenization can add liquidity in addition to increasing transferability of all assets allowing users to secure a wider range of their assets through their secure blockchain wallets.

Play: Leveraging NFTs to Decentralize Social Media through the Metaverse

A decentralized metaverse refers to a virtual world or universe that is built on decentralized technology such as blockchain. A decentralized metaverse can provide users with more autonomy and ownership over their data and assets, while NFTs can be used to decentralize ownership and control of assets within a decentralized metaverse, thereby disrupting large social media conglomerates. The need for a decentralized metaverse stems from the desire to have a virtual world where users have control over their own data and assets, and are not at the mercy of centralized Web 2.0 entities.

One of the ways in which a decentralized metaverse could be created is through the use of non-fungible tokens (NFTs). NFTs allow for true digital ownership enabling users to own and control their own virtual assets, such as virtual real estate, artwork, and characters, within a decentralized metaverse.

When it comes to large social media conglomerates, data ownership is contained at the application layer. This centralization can lead to issues such as censorship, data breaches, and lack of ownership and control by users. By using NFTs to transfer ownership to the protocol and allow for user control of assets within a decentralized metaverse, it can provide a more equitable and autonomous virtual world for users.

Additionally, it is important to note that a decentralized metaverse could allow for new forms of digital economy, which is not limited by the centralized authorities and could provide more opportunities for creators and entrepreneurs, particularly with monetization through NFTs.

NFTs are becoming increasingly popular in the digital art world, where artists can create and sell unique digital artwork, and in the gaming industry, where digital collectibles and in-game assets can be bought, sold and traded. NFTs have also been used in other fields such as music, where digital rights can be managed and royalties can be collected.

X-Change: Democratization of Financial Services Through Decentralized Exchanges and NFTs

Decentralized exchanges (DEXs) use blockchain technology to allow for peer-to-peer trading of assets without the need for a central authority or intermediary. This can potentially disrupt traditional trade finance by providing a more efficient and secure way to facilitate trade transactions.

One way DEXs can disrupt trade finance is by providing a decentralized platform which aggregates liquidity across existing brokers and banks. By using smart contracts on a blockchain, DEXs can automate the process of trade execution and settlement of transactions while reducing trade costs and settlement time.

Additionally, DEXs can provide more transparency and security to trade finance by creating an immutable record of all transactions on the blockchain. This can help to reduce fraud and increase trust among trading partners. Blockchain IDs can also help facilitate automation of tax reporting and regulatory compliance.

Another way DEXs can disrupt trade finance is by providing access to truly globalized 24/7 markets. Traditional financial services are bifurcated by regional regulations and trading hours however, DEXs can enable the trade of traditional assets such as tokenized stocks and bonds, on the same 24/7 markets where crypto assets and NFTs are traded.

Leveraging NFTs to Create a Global Decentralize Lending Platform

NFTs can bring lending finance to the unbanked world by providing a decentralized and transparent way for individuals and small businesses to access credit via globalized lending platforms. Through the use of NFTs, decentralized lending platforms can provide a tamper-proof and verifiable way to track loans and repayments, and can also facilitate the use of smart contracts to automate the loan process.

By representing loans as NFTs, it allows for easy tracking, management, and transfer of ownership of the loan on a blockchain network, as well as the use of smart contracts for loan servicing, payments and secondary trading. This can increase liquidity and make it easier for investors to buy and sell loans on a marketplace. NFTs can also be used to facilitate loan issuance viap smart contracts, which can automate the process of loan servicing and payments. Smart contracts can be programmed to automatically make payments to the lender, based on predefined terms and conditions, such as interest rate and maturity date.

NFTs can be used in real estate to represent ownership of physical assets and create digital deeds that certify ownership and information about the property, allowing for fractional ownership and creating more liquidity in the real estate market. These digital deeds can also be integrated into defi lending protocols providing a simpler process for home equity loans. Programs can be created to allow for rent-to-own programs to exist, making the American dream of owning property more realistic for the masses. These digital deeds being stored on a blockchain can simply the process for transferring home ownership and reduce the time of settlement for closing on home deals.

We believe NFTs can be leveraged to facilitate private placement loans, creating more opportunities for economic expansion for entrepreneurs around the world in particular, enabling access to a world of lenders for global candidates who do not have access to the traditional financial system. A private placement is a type of loan that is issued to a private corporation or smaller groups of individuals, rather than established publicly traded companies.

In addition to decentralized lending platforms, blockchain applications can also be used to create decentralized credit scoring systems, which can use NFTs to track and verify an individual or small business’s creditworthiness and reduce the costs and complexity of credit scoring. This can make it easier for individuals and small businesses to access credit, even if they do not have a traditional credit history. In addition to the development of globalised credit blockchain systems, the market for private placements can mature through collateralization and risk tranches, decreasing risk levels and default risk.

In order to better understand how decentralized lending platforms and credit scoring systems can lead to global economic expansion and prosperity, we will share the lessons we learned through Ray Dalio’s YouTube video “How The Economic Machine Works”. He explains that credit is a key driver of economic growth. Credit refers to the ability of individuals, businesses, and governments to borrow money to invest in new projects or to consume more than they currently earn.

Dalio explains that credit helps to create a “multiplier effect” in the economy, where each dollar of new credit creates more than a dollar of economic activity. This happens because when individuals, businesses, and governments borrow money, they can invest in new projects or consume more, which creates jobs and income for others.

Dalio also explains that credit can also influence economic growth by affecting the cost and availability of borrowing. When credit is easy to obtain and cheap, it can lead to more borrowing and investment, which can boost economic growth. Conversely, when credit is difficult to obtain or expensive, it can lead to less borrowing and investment, which can slow economic growth.

Our vision for the future is guided by our mission to empower individuals through decentralization allowing them to claim sovereignty over their digital intellectual property and wealth, creating the fundamental building blocks for a stronger digital economy. We believe we can empower developing and emerging nations through the decentralization of application hosting, lending services, social media, energy markets and opportunity through education. I look forward to continue sharing our purpose through our website launch and third letter “Dear God …”, highlighting Dreamfund’s initiatives further.

From the Bronx to the World … With Love,
Zain Lughmani

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