Yes, it's understood that the self-defining and self-amending are the main thing here. But I refer to eth just in purpose of better understanding from my non tech beginner point of view. I am trying to visualize the tau without getting too much into how it technically happens. Your example with facebook was very helpful for visualizing but facebook is also not self-defining and self-amending.
If you want the largest possible audience to actually read the paper it has to draw the right picture in target audence minds. I don't even understand in full how exactly etherium works but I for sure understand it better than tau for now, I understand the advantages of etherium and smart contracts and what it can bring to the world. After I got familiar with Tauchain I realized that there is a limitations in etherium, and tau is trying to brake those limitations. I am sure I am not alone at that level of understanding, the comment of ryvirath above proofs that.
eth is a system about coins and contracts. tau is something completely different. it has no coins or contracts, but is a platform that such things can be created over it (like agoras will be an economy over tau). more accurately, tau is a tool for collaborative definition of itself, no more and no less, and from there can evolve into anything.
Is it right to say that the "self-amending decentralized program (tau)" is equivalent of eth's virtual machine?
no. if there were already one truly collaboratively-self-amending piece of software, i wouldn't have to write tau
Teams over tau can create smart contracts collaboratively in a very innovative way,
tau is a tool for collaboratively forming theories and software, in the most general sense. nothing to do with coins/contracts specifically
using a new consensus mechanism (contract-draft-by-draft) that prevents paradoxes and contradictions.
the proposed mechanism is not the draft-by-draft example, but somewhere in the middle of the two examples. it's a very simple yet slightly ugly formula, i'll explain it in the presentation. what it aims to do is to calculate the precise core that all players agree on.
What happens next? How and where self-amending happens? How blockchain involved here? What is the structure?
blockchain is just for us to securely know "which rule came first". and this will be the main centralized aspect in the first alpha: a server that time-orders messages. afterwards we'll collaboratively move into a fully decentralized system.
i hope it's helpful, please let me know, indeed my current efforts is maximizing the range of the public that will be able to understand the concepts (therefore obv the current terminology is tentative)