Liquefying Infrastructure Demo: Justin Kilpatrick, Althea

If this topic about emerging technologies is of interest to you, please request an invitation to our private group, Infrastructure Finance, where we discuss how to tokenize the investment mechanisms used to finance the development of Broadband infrastructure.

A live demo of the first liquefication of Althea telecom assets on the Althea L1 testnet chain. Liquid Infrastructure produces an NFT representing the revenue generated by a microtransaction account associated with a telecom asset (fiber optic cable, telecom tower, etc). This NFT can then be used in DeFi to transfer the account, aggregate the revenue, and manage the device wallet itself.

Transcript

0:11
hey everybody Welcome to the Althea L1 uh
0:16
embedded application workshop and what
0:20
we’re going to do uh over the course of
0:23
this Workshop is uh we’re going to live
0:26
code a very simple liquid infrastructure
0:29
uh but first off
0:31
um what is liquid infrastructure what is
0:34
off the L1 what is Althea
0:37
um and I’m going to give that
0:39
introduction with uh
0:41
Jr who will be helping me out today
0:45
good morning folks
0:47
cool so let’s see
0:51
um
0:52
so Althea is an application for buying
0:56
and selling bandwidth between routers
0:58
programmatically so it allows you to buy
1:04
or sell individual bytes of data in sort
1:08
of a streaming manner so there’s
1:10
micropayments on on average about 30
1:12
cents that are used to settle
1:16
um the movement of data in the system
1:18
and what Althea L1 is is a platform for
1:24
um sort of sort of plot is a platform
1:27
for micro payments and revenue
1:29
generating devices
1:30
meaning applications like the Althea
1:34
bandwidth buying and selling protocol or
1:37
you know something like a vending
1:40
machine uh fast uh fast car charging
1:45
um
1:47
live streaming of media generally
1:49
anything that can be denominated as a
1:52
small transaction that requires instant
1:55
finality
2:00
and this takes us to liquid
2:03
infrastructure and liquid infrastructure
2:05
is sort of the answer to the question of
2:09
uh how do you manage a bunch of Revenue
2:12
generating on-chain devices so let’s say
2:15
I have a vending machine and it sells
2:18
candy bars for usdc and this settles
2:21
onto Althea L1
2:24
um there’s the vending machine needs an
2:26
address to pay but I certainly don’t
2:29
want to care about the private key of
2:31
the vending machine obviously somebody
2:33
could try and break into it there’s no
2:35
need for the money to actually be held
2:37
there and ideally I would like that
2:40
wallet to be a cold wallet
2:42
but I may have many hundreds of vending
2:45
machines that I’m managing at which
2:47
point doing it at all one at a time
2:49
would get rather tedious and extremely
2:52
difficult to keep track of and this is
2:55
where liquid infrastructure comes in
2:57
liquid infrastructure is a form of
3:01
account abstraction that creates a nft
3:05
representation of a given account on the
3:09
alphia L1 chain
3:11
that would hold that account’s Revenue
3:14
and give some control over it
3:20
so this defines a very simple
3:23
transaction uh from
3:26
R from the account in the cosmos so this
3:32
phrase has two possible key
3:33
interpretations we sent tokens to the
3:36
cosmos one now we need to send it to the
3:38
ethernet one
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and this will do that for us
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so let’s just go ahead and run it now
3:46
and this will hopefully do it all in one
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go where we send the tokens from one
3:51
account to another
3:52
and then liquefy the account okay so now
3:55
we have
3:58
successfully deployed this nft
4:01
in the
4:03
Althea evm
4:06
now let me go and take a look at this
4:08
via one of our so this is an nft address
4:12
and by default that nft address is going
4:15
to be stored in
4:18
uh this key phrase so if you were to
4:20
plug this into metamask you would be
4:22
able to go and manage that nft uh just
4:25
using metamask or any other ethereum set
4:27
of tools we can also manage it using
4:30
Clarity here which I might get into but
4:33
we’re running a little short on time uh
4:36
so I will leave that out since you can
4:40
just use metamask or some existing tool
4:42
for it and frankly the clarity
4:44
documentation is a little bit better
4:46
you’ll notice if you just do
4:52
when you liquefy an account
4:55
uh the private key no longer matters all
4:58
that much obviously you still needed to
5:01
send transactions but what really
5:02
manages the manages the account is the
5:05
liquid infrastructure nft
5:07
so what that liquid infrastructure nft
5:09
is going to do
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is that it will allow you to configure
5:13
the maximum balance of the liquefied
5:16
account
5:17
and to claim uh income
5:22
so what will happen is that let’s say I
5:24
were to send uh five dollars to a
5:27
liquified account and this account is
5:29
configured with a working capital
5:30
balance limit of twenty dollars so the
5:33
owner of the nft says hey no more than
5:35
twenty dollars in this account
5:37
so I send five dollars to the account
5:39
and it doesn’t have any balance that
5:41
five dollars stays in the account and is
5:43
still under the uh address here
5:47
but if I keep doing that when the
5:49
balance goes to exceed twenty dollars
5:51
that money will be locked up in the
5:53
liquid infrastructure nft and available
5:55
for the holder of the nft to claim uh
5:58
and what this means is that you can have
6:00
a small amount of working capital in a
6:02
liquid infrastructure wallet it can make
6:03
some payments uh but in general the
6:06
funds are stored in the nft and the nft
6:08
holder gets to decide all of this up to
6:10
and including setting the uh setting the
6:14
working balance of the account down to
6:16
zero
6:17
uh at which point all transactions going
6:19
into the account would immediately be
6:21
locked up into the nft
6:23
um
6:25
now this only counts for uh sorry this
6:30
this feature is focused on the micro
6:34
transaction uh type so this would be
6:37
here so the micro transaction type is a
6:41
specific type of transaction that gets
6:43
uh priority on the alphia L1 chain
6:47
inclusion because it’s very simple and
6:50
it pays a fee that is a percentage so
6:54
that’s what makes it micro you don’t
6:56
want to send a million dollars if you
6:57
have to pay a five percent fee on that
6:59
million dollars it would make sense to
7:00
use the normal message so yeah I think
7:03
that’s a rough coverage of uh the liquid
7:07
infrastructure tooling and how you would
7:10
use it uh obviously this is all still in
7:12
testnet so it’s a bit of a prototype so
7:15
sorry for any rough edges but hopefully
7:18
this makes for a good introduction to
7:20
the deep space Library we didn’t really
7:23
get the clarity today and maybe I can
7:25
follow that up next week along with
7:27
hopefully showing off the more
7:28
simplified version of this with some
7:31
cleaner utility functions for liquefying
7:34
and sending microtransactions