Video summary
The video introduces Shady Bucks, a gamified currency system developed by two Tor Camp utilities: Shady Tail, which provides phone services, and Bureaucracy, which operates like the DMV. The project originated from a need to provide real communication services at Tor Camp 2012 after cell service failed, leading to a collaboration between the two groups. To create a compelling reason for attendees to engage with their infrastructure, the organizers designed a physical "Kerchunk" machine that generates credit cards. This interactive device allows users to rotate dials and punch out digits, creating a satisfying mechanical experience while issuing trade show swag-style cards that function as loyalty program tokens rather than traditional legal tender.
The economy surrounding Shady Bucks is built on the concept of valuing time, with one unit representing one minute of phone usage, mirroring real-world telecom billing practices. The system mimics standard credit card protocols, including pre-authorizations for vending machines and restaurants to ensure funds are available before a transaction occurs. Behind the scenes, the team utilizes a robust backend with PostgreSQL to handle millions of transactions automatically, ensuring that every debit and credit balances perfectly. However, they encountered a technical challenge where using fractional cents in their database calculations caused discrepancies, leading them to adjust their economic model for the current year by injecting 500 free Shady Bucks into every attendee's account to stimulate activity and correct previous imbalances.
For this year's event, the currency system has evolved to include NFC-enabled wristbands that serve as both identification badges and wallets. These wristbands utilize advanced mutual authentication technology with triple DES encryption to prevent cloning, addressing security concerns similar to those seen with RFID tags at Disney World. The software for activating these bands is open-source and available on GitHub, allowing the community to contribute to the development of iOS and Android apps that interface with the system. Additionally, the organizers have integrated their network with Payones working, enabling the use of Shady Bucks in vending machines located at the Night Market, further expanding where attendees can spend their virtual currency.
The presentation concludes by addressing the legal nuances of operating a quasi-currency, clarifying that Shady Bucks function as a loyalty program similar to Canadian Tire Money rather than a regulated financial instrument. While there were initial fears about being flagged as a money transmitter service by platforms like Google Play, the team sideloads their apps to navigate these approval processes. The system allows for various ways to acquire currency, including earning it through phone usage, purchasing items at the Night Market, or receiving loans from Bureaucracy. Ultimately, the project aims to create a fun, self-contained economy that enhances the Tor Camp experience while demonstrating practical applications of secure NFC technology and distributed ledger concepts in a playful, community-driven environment.
Read the full video transcript
[Music]
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all right so who here has used Shady
bucks
awesome uh let's see who he's from
bureaucracy
yeah who hears from Shady uh Shady tail
yay they I think they're busy installing
all your phone networks right now yeah
yeah uh so what what is bureaucracy so
bureaucracy is how it's the DMV of uh
tour Camp it's you stand in line uh you
fill out forms and you get beer and it's
very gamified very fun and we're located
right behind Shady T yeah awesome some
people L being the phone company we l
being the
DM yeah so uh speaking of laring the the
phone company uh so the uh Shady tell if
you don't know provides uh the phone
service here at Camp uh kind of the
origins started uh as like a ship
posting parody Twitter account um but
and you know we had some funny posters
uh but then tour Camp 2012 happened in
Nia Bay and there was no cell phone
service there so we were asked to
provide uh some phone service there so
uh we uh actually got into providing
real service and not just sh posting on
the internet uh so we made the SIM cards
uh and you know had Shenanigans uh this
is the shitty tell
uh that someone made um yeah so that's a
brief history of shady to uh and so
after the 2016 we realized that we had a
shared kind of cabin space we were on
one side shitty was on the other side
somebody microwaved some food and it
knocked down the phone network so we had
to go over and introduce ourselves and
say hi and apologize a bunch um after
that year we decided we were going to
collaborate when or actually the year
after that we started bureaucracy doing
all the and stuff and then we realized
we were kind of two utilities and we
should work together yes uh combine our
monopolies um so we were we were
discussing last night and and trying to
re-remember how we actually came up with
the idea of shady bucks and uh um I
think the the idea uh came from uh ASD
who really wanted one of these kerchunk
machines yeah I I like woke up to text
messages and just links to the this
machine and so we designed the game
around having a reason to buy this
machine which involved making like
physical little credit cards yeah th
this is the actual uh chinesium
instructions that came with the machine
uh you can get this off of Amazon it's
great you should exp yeah and so we we
were having uh we were talking uh with
asteroid last night and she said you
know I was surprised how easy it was to
get fake credit cards made um
and uh she was talking with a a card
manufacturer and they weren't quite sure
what uh what we were trying to do and
then they're like oh so you're like
giving out you know trade show swag and
she's like yep that's it great show
swag and so this was our first
prototype uh yeah um but then uh so then
uh I got a design template and made an
actual real card that looks pretty
legit so this is the kerchunk machine
and
action you have to uh rotate it to the
right digit or letter that you want and
then K chunk it um it's a very
satisfying
noise you want to say anything more
about that um yeah
we huh you get chunce
you can get b oh bold Tex yeah yeah okay
maybe that's how it broke yeah so that's
delicate be careful when you C chunk
this year we're not entirely sure the
machine still works but we we did bring
it y so the way it worked last year was
you would go to Shady tail and activate
your card and then come back over to
bureaucracy and do the K chunking part
so this year we'll probably do something
similar if the machine's up yeah we we
actually had you K chunk at uh at
bureaucracy first because you put that's
how we knew your name you had to put the
name on it and then we could encode it
on the max stripe we'll talk about
what's on the Mac stripe um in a bit but
let's see here um so yeah uh two weeks
after the conversation came up with the
logo uh we were doing all the night
market like deer Punk stuff um the deer
Punk theme just digging through these
messages that came from Scotland
originally but we designed Night Market
as a cyber Night Market where you can
spend your shady bucks buy s and trade
um you can use real money there too if
you want but Shady bucks is way more fun
and if you see uh if you haven't been to
Tor Camp before and you saw the all the
Easy Ups kind of in a row near Shady
tail with the big other Dome that's
where Night Market it's going to be uh
uh tonight and tomorrow night um from
like 10: to 2:00 a.m. all kinds of stuff
there's food there's somebody's making
ice cream somebody's making uh cookies
um lots of of just like electronics and
stuff yeah it's very cool uh so shortly
after we released this um there uh so
there's a con contest here uh titanium
chef and uh an entrepreneur decided
who's right here in the audience decided
to set up a beding pool um among other
things uh and then a casino popped
up and grilled cheese grilled cheese too
grilled cheese yeah uh so that was
awesome and
bought
poker I I remember yes they they did uh
buy all the poker chips available on the
island um and this you know this makes
us kind of nervous because now we're
getting into like are we like a quasi
currency and like do do we have to like
register with the state and all these
governments and all that and the answer
um that I am going with is no we are a
loyalty program
now there is a precedent for this how
many of you are familiar with Canadian
Tire
money all right there's a few of you so
as it turns out Ebay actually in their
terms of service I'll blow it up uh in a
minute this is an archive of their terms
uh one of the accepted payments on
Canadian eBay was Canadian Tire money um
and apparently it is the um what most
successful loyalty program uh retail
loyalty program in the world so um it is
a Rewards program uh the plan was we
would give you um one Shady Buck per
minute that you use the phone or we
would charge you one Shady Buck per
minute to use the
payphones uh so the economy um there are
like three thing there are we basically
didn't want to make it a pay forplay
experience um we didn't want yeah um we
recognize that uh the most precious
resource at tour Camp is your time um
and so the official unit of shady bucks
is a minute uh because we're the phone
company and that's how we bill um in
sixc increments uh which is on10th of a
minute uh so a lot of people have asked
like where do the numbers come from and
there's this International standard uh
ISO 7812 uh which is a numbering system
for the identification of the card isues
blah blah blah um so the format of the
number is broken down like this so we
have 89 which is the Telecom
prefix country code 979 which is
international premium rate then we have
8667 which spells out tour um on the
phone pad then the year and then uh the
account number and the check digit so
this numbering scheme actually uh is
what real credit card use it's what SIM
cards use it's what airline tickets use
uh it's it's pretty Universal and um as
far as I know no one is using the
international premium rate um code so
we're just squatting on
that uh so what's on the ma stripe uh
there's typically uh so this is what uh
credit cards normally use so uh there's
usually two tracks this is track two so
you have the primary count number uh
which is that number I just mentioned uh
then there's you know the expiration
date um then there's what's known as
discretionary data and this is basically
used to prove that um you had read the
magstripe um so this is what prevents
you from just picking a random account
number and um and making your own
magstripe now there was a little bit of
confusion last time because we wanted to
have a CTF um where you had to read the
magstripe and so a lot of the mag
Stripes uh actually had duplicate
discretionary data and so part of the
reason for Activation was so that we
could rewrite that and make that unique
per card so you couldn't just like Forge
anyone's uh card um track two is more of
the same except it also has uh your name
it's alpha numeric it has uh
discretionary data
too um so uh credit card transactions in
the real world um you have uh an
authorization process um let me I didn't
realize this was animated um so
basically when you go to use a card um
your card is authorized for a certain
amount and that guarantees to the
merchant that you are good for at least
that amount um and there's there's some
reasons why it's done like this but
where will commonly pop up is like with
gas stations that will authorize your
card for like $75 or if you're at a
restaurant uh it will authorize your
card for an additional tip as well um
hotels do this as well normally you
don't notice this and you unless you use
a debit card um and then that explains
the difference between your available
balance and your actual
balance uh so we actually mirror this as
well with Shady Buck you can do a
pre-authorization uh so for example with
the vending machine it will
pre-authorize for some certain amount
you can spend up to that amount then
when you're done it will actually charge
your card uh for the actual amount that
you uh
spent so we mirrored uh how this works
um basically with the web API uh we do
have a nice um uh uh front end on top of
this
um so basically the uh the structure is
we have um postgress which we chose for
um being able to do transactions so
doing things at automically either
everything uh succeeds or fails so you
don't uh get discrepancies in the
account um uh unfortunately uh we could
not express the constraint that uh the
accounts must balance uh the debits uh
and credits Must ALL sum up that's what
we were hoping to do uh didn't work out
uh talk about that in a bit um we have a
Rus cache we have some web
apis um so it turns out it was kind of
performant um in like couple of days we
did 4.4 million transactions I don't
know uh what our Peak transactions per
second was but um it might be
competitive how many did we do oh okay
all right doesn't
seem
with huh number of arms available yeah
yeah so so something something went
something Shady happened here so
so here here's the code that actually
does uh does the capture process so we
have this um uh with a transaction here
so if any of these um uh this is python
so if any of these lines fail or throw
an exception uh everything in here will
throw back uh will uh roll back uh so we
make sure that there's an
authorization uh we say that the
authorization has posted we subtract the
amount from one account we add it to
another account and then we insert a
transaction record and if this block uh
completes it will complete automically
and everything should uh
balance except there's a
problem so if you spec so the account
the uh the data type of the amount is a
decimal number with two decimal digits
and if you have a fractional scent um
these two uh lines here will behave
differently um depending on whether you
subtract half a cent or add half a Cent
and that's when things uh suddenly no
longer uh balancing
out uh so yeah the uh God uh the one
minute per Shady Buck thing is kind of
out um we are announcing new for this
year that inflation has hit the Shady
economy but we have a stimulus plan
don't we yeah we
do 500 free shiy books for everybody at
tour
Camp so last time we gave out a a $50 uh
or 50 Shady Buck uh welcome bonus for
everyone this year we're 10 Xing it so
uh that officially uh we're kind of 10
Xing everything uh in the economy this
year um both to uh I don't know
inject more activity into it and make it
fun and also to balance out some of the
shenanigans that happened uh last time
uh so also new this year are these
wristbands uh that we gave everyone um
and these serve a couple of purposes one
uh we uh tour Camp needed um wristbands
too yeah they identify staff for
attendee do not lose your wristband like
absolutely that's how you get identified
that you're belong here that you paid to
be here do not lose your rest band but
it's also your wallet because your shady
bucks are on your hand yeah so uh we're
we're adding Shady bucks to um to these
wristbands actually the these were like
I don't know 30 cents each or something
they were surprisingly cheap uh to get
made um they are NFC they are myair
ultral light uh C tags which can do
Mutual triple desk authentication uh so
you can't easily clone it um I Heard a
story the other day about someone being
able to clone the RFID tags on Disney
World Cups so they can get like free
refills for life or something um it's a
bit harder to to clone these um uh so
once we authenticate that we're talking
to the actual tag the the uid is used uh
to link it to your shady box account
it's also you can format it as an
in-depth record uh you could write
arbitrary things and uh Boop each
other's wristbands for for fun uh the
mutual authentication scheme goes like
this I'm not going to read from the data
sheet um you can look it up uh but
basically the way that we keep this
secure is that all the keys are kept on
uh our server uh and then to make this
happen we have this app the app asks the
tag for a challenge the tag re sends
that challenge over to the server the
server computes the response based on
the triple desk Keys it sends that back
to the app it it does a whole bunch of
relays back forth and once this succeeds
uh the server gives you an NFC token
which is valid for uh a single
transaction uh so in short uh try to
hack us don't hack them not the venue uh
please not the venue uh yeah so um the
the uh tags themselves are blank right
now um because we didn't want to go
through and and pre-write all of these
uh risk bands um so we will be doing
that and linking them with your existing
Shady bucks account or giving you a new
Shady bucks card uh an account um
starting later today I think around 4 pm
after 4 pm go to the Shady Shady t uh bo
yeah um one other thing that uh I forgot
to put in here um yeah so uh we got
integration uh with the payones working
um so big shout out to kit for that he
um actually wrote there he is uh he
actually wrote the software to to
activate the wristbands uh do he has a
vending machine that will accept uh
cards and
wristbands um and if we get the the
phone network up um you will be able to
use uh uh Shady bucks in in the payones
and it will do uh authorizations against
your actual Shady bucks account if you
have artwork you want to put in his
vending machine the vending machine
lives at night market go talk to kit uh
I think we have like one minute for
questions uh so so it was it was uh it
was an integer in in sense uh and the
SQL type was uh a decimal
type huh
want you want to use
strings
oh okay also wanted to mention come to
bureaucracy for loans but like
later Parker are there any
um are there any legal like traps that
you fall into if we do anything as a
loyalty program that pushes us into like
broker deal
territory I am not a lawyer uh yeah you
got to go to lawyer camp for that yeah
do we have any lawyers in the audience
just asking what's
illegal it's it's all fake actually this
this goes back to to one potential issue
that we had uh so um turns out Google is
is a lot more aggressive and approving
apps these days uh and so I was
concerned about whether we would
actually they would actually flag it as
a money transmitt app uh so that's the
reason that you have to sideload it also
they take forever to approve things
these days um so that's our time more
yeah sure
huh yeah so I got my first iPhone
yesterday uh to try to do this uh
everything is open source on GitHub
right now both the Shady Bank um and uh
the apps uh and uh go to github.com
Shady Tel um so if you want to write the
IOS app I can tell you what apis you
need to use I just don't have the time
nor do I have the iOS experience
too
yes uh how do you get Shady
bucks yeah so there's a a a variety of
ways that you can get Shady buck so uh
we have authorized villages to hand out
Shady bucks for doing various activities
uh RF Palace does it you can get a loan
from
bureaucracy um Al everybody gets 500
Shady books when you go turn your card
on yeah you can also sell stuff at the
night market you can trade it for other
people you can um I don't know be be
creative just ask
people
yeah okay one last question are account
numbers
sequential
yes um yeah so uh that that xxxx is is a
sequential number um and it it that is
sequential and then it's just the tech
check digit so there you go all right
thanks thank you
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he
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