Foundational Technology | Boston Meetup
Good. Evening everyone thanks for being here so let me quickly. Drive, you through the core, technology, of algorithm so. Why we are here because block, chains at the great promise, who doesn't like a tamper-proof, you know record, who doesn't like transparency. Who doesn't like a generating, trust among people who barely know each other the, application. And use cases are essentially. Unlimitedness. However. There. Is a little bit of an open secret blockchains. Has defined don't, quite exist, all. Right because, they've been a very much aspiration. And a, very. Good for Humanity to raise our aspiration, to raise up a bar but if the technology does not allow. Us to achieve our aspirations. We are a kind of in a bad place so, all this you know event, you know whatever sociology, stays everyone topology, the centralization, is here the centralization, is here doesn't. Reject so is not yet here, at all and. In fact if. You. If. You look at our own native. Co-founder. Pronouncement. The famous of blockchain trilemma. Analysis. Analyzing the evidence of 2000 and plus the privacy of blockchain, projects, what do they figure out to say hey you. Ought to be a rule that, in a blockchain you can at most satisfy, two by hauling three properties, security. The, centralization. Scalability. You choose which one to exclude is it like to say welcome. To blockchain, by design what. Poverty you don't want to have security. Excellent. Choice really if you don't have security of nothing so about, the centralization. If you don't like the centralization where you're building a blockchain and scalability. If you don't care about scalability are you building a block change between friends and family there, are no good, choices here, it's like to say do you prefer to be shot in the left knee or in my right knee okay. No. Good well ladies, and gentlemen let me tell you but blockchain, trilemma is not, accessible, and more. Importantly, is actually, false so, what is instead the truth, the, truth. Block, chains are very. Technological. Products. And we need the better technology, to realize our aspiration okay. So. What. Is the challenge there. Are two aspects on a block chain make sure but things are concatenated, well and guess what at this point click, check, mark we all know how'd you know to do it you take the. Hash table a previous block we make a part of the. Current block and nobody can tamper with, a chain anymore everybody, does that but the difficulty. Is that who chooses in the next block because when things are decentralized transactions. Are actually. Propagate. The fault of a network what do you think ought to be the next page um but I think is going to be the next page investor rager is quite, different so as our right to, choose the next block, so. There are a popular, pyro approaches, right away oldest, one is a proof, of work and, all really a great idea at the time and know how to offer to mr. or mrs. Nakamoto of a Nakamoto so many may are and what, is Vidya we create a competition, or computational, competition, try, to solve a crypto hero the first one who arrives, there as we write to Upendra block what, are the cons, extreme. Expenditures. And in fact to waste of any resources, that is inside that is, that. Is bad on. Top of it these things are slow they produce a block every, ten minutes why, because if you try to make a little softer, so that you can solve as the, riddle once a minute then the chance that two people saw that a few seconds of each other increases. So much that you are going to fork and fork and fork all the day so, personally. I understand, expensive. And fast expensive. And slow is harder, to understand and on top of it they expenditures. Needed for the capital, needed for doing. Buying. The mining equipment it's, such a better, very few people fewer, and fewer people participate, on high now. Bitcoins. Blockchain is, actually, dominated, by just a free mining pools you know what slow. Expensive. And actually. De facto centralized, perhaps. We need a better idea so then, I get the proof of stake what is this very simple idea we, just put in charge say 21, people who look honest look I wanna stroke, we will remain honest they, will choose the blog on behalf of all of us is, this. Decentralized. No. Okay. And because. Even if the people are actually very. Honest. And remain honest, a denial. Of service attack against 21 people you can deny your service even to a thousand people but this doesn't look too promising to me okay, next stop bond, Rufus, take what is this oh that, is a another.
Simple. Idea you say you put some money in the middle of a table where, you can not touch it and anybody. Can put the money in the middle of a table the people who willingly put, it there hostage. However ones who choose a block on behalf of all of us and, if, they misbehave their man is confiscated, Wow, they. Should work right does, it let, me ask a simple equation how. Much of your disposable income can you afford to put in the middle of the table hostage. And. The answer is a very small fraction so. In a system like this not only to make it possible but you make it easy for big, thieves with deep pockets to. Put a disproportionate. Amount of money in the middle of a table from a sole purpose of controlling, the blockchain. Muscle, what if they misbehave, that man is confiscated, let. Me tell you, speaking. About the borderless, economy, the borderless, economy, should secure trillions, of dollars okay a very. Secure, decentralized. Scalable, blockchain is trillions of assets under management and, so, by misbehaving. You can make a billion dollars or two very, easily so. Do you think of these guys care if they confiscate, about ten or a hundred million, dollars no it's, just the price of doing business the, cost of the reasons, right so, in other words if you look at all these superior, approaches, they, have a strange, logic, the, logic goes like, this they. All economy. Is secure, if a majority of the members of this small, corner of the economy are honest, who, are the small corner in Bitcoin, by miners right. In. Delegated. Proof of stake, the. $21, Gates so. Our garden takes a quite different logic, they. All economy, is. Secure and works if the, majority of, the members of the corner be honest and bet ism where he want to go right. Always. Dangerous to put a big thing in, very. Few hands who don't really have a lot of money in the system so. Let me tell you what we are based on is, pure. Koufos take a mini, version of process, take bits of our own brand, pure, proof of stake what does it mean that first of all we don't punish anybody why because, we believe that making, cheating impossible.
Is Way, better that, pursuing. Somebody, has been an imposing, a fine or somebody was running to my Bahamas with, the. Goods okay that's a bad idea so where, is the money in our gun is always where it should be in. Your wallet, at your fingertips, ready to be spent invested. In the various financial tools, about blockchain. Hux, offers, you and if you consider all this money wherever happens to be if the majority of the money's in understand, the, system is secure of period okay. So. I'm submitting execute. Against women against, a bad adversary, how bad, very. Bad so. This, guy is. Really, scary because the. System remains secure even at the per second immediately, corrupt any players he, wants is, instantaneously. And can perfectly, coordinate, the players and by the way it can attack not only the protocol, but, also the communication. Network on which the protocol is run what, doesn't mean people when they discuss the security most, of the time they prefer, to are. You sending me messages that. The protocol tells you to send if, I'm at the worst I know I am NOT I've better things to do but another anniversary you have all kinds of other things to do how about attacking, the routers, so. Disconnecting, the network and in. Systems, like Bitcoin, you can actually collapse the system if you attack the network so. We are going to remain secure against them not the worst we can attack the, portal, in the network. Do. We need to be sought the verse area or is me but I'm a cryptographer well as a cryptographer I'm actually a realist, because, of a member if, something, is worth a trillion dollars and up then. Is going to be attacked in fact attackers, are going to come up as mushrooms after the game right so we must be the, HEI. So. What, how, do we achieve all, this progress it's essentially this. Centralization, scalability. Security, essentially. Is the forming in a logo and blockchain the. Blockchain is grown, by a sequence, of ever-changing, committee, in, fact each committee, think of it like consist, of a thousand, randomly, independent, selected, users and what.
Do We select the user to do how. They do a simple thing with after, a single. Message short. And very easy to compute and then another, different, for some people come over right that's, the way it works, so. Where. Would say gee senior pays high level of description, I have a few questions a few you should have many. Questions but, we have time for one the, most popular one which, is who. Selects the committee good. Question let's. Assume that my own sir is I do when. You say well that is the most essential ice block Katrina I ever saw in you are epicenter of it that's. Not what we do how, about if I tell you well humanity. Gets together we, debate and together select, a thousand people committee, when, really. The, humanity, cannot agree on anything at all and an alone of a some people committee so, what do we do in our current we do something a little bit counterintuitive. The. Committee members, select. Themselves. Because. What that is a terrible. Idea in fact is, the. First worst, idea made the second worse than I ever saw because if I'm a bad guy of course I will select myself. For. Best committee and the, next and the one after vets and so on so forth but. Not so fast why. Because. In, order to select yourself you. Must actually win, an. Individual. Lottery. Disconnected. For the rest of the world in the province of your computer's, your hostel handle order to see I my part of the next committee in case. One if you win you, obtain a winning. Ticket a short. Proof with, me tell can't everybody can verify you are part of this committee and if, you don't win you can say anything you want nobody, pays attention okay, so, what is the, latest, video and this cryptographic law, research. They'd. Not even a national state. With. Huge computational resources. Can enhance even by bit a little. Bit they, probability. Of being selected okay. So, essentially if you want to have a million users initially, you want to select a thousand of the lottery sets the, threshold of, winning, at one in a thousand because a minute about a thousand is a thousand, but. Later on we can have a billion see if I care with, automatically. The system selects the, treasure to be one, in a million because a billion, divided, a million is a thousand, that's where we goes right all.
Right And of, course you know the probability, of winning is proportional, to the total amount of monument, that you have because. Otherwise right. I can distribute the the, sylvio key into, a million, sylvio keys in your one city or two and if anyone wins i win but in. Al gore and if you, have a million al goes whether you keep them in one key or one al go for a million kids the probability, of being selected is absolutely, identical. So. No symbol of tax now, let me tell you what we race is super decentralized, of course the super decentralized, because you may not have a fixed committee better, runs our affair for a month or for a week or a day for an hour not even a minute because in a minute denial, of service attack catches, you very fast, so. Your, turn. Upon something I never fought some people next time and I've been faster on people next time and only they stay in power they say a one message, only. Okay. Check, it is decentralized now. Let me argue that. Best system is super. Scalable. How. Long does it take to the, lottery to figure out if you remember one, microsecond, that's very fast okay. But now I'm a qubit is fastened come people. Selected, in a microsecond, what have to do we're, all of it to do is to propagate, a single, short, message, can we do it yes yes, this. Our network, is a piece of cake so that's why scales, right and so, the important thing is that even with billions, of fusions they completely never need to be more than a thousand but it changes all the time and, now, let, me argue finally, why, the system, is super, secure assume. That the big, get a guy that I just showed you right I can. Cook up anybody I want right very. Very quickly Stan Tanner cinnamon, but, I have a Pullman whom should I go help should I go up to you or you or miss, already down in the street to this guy in Paris I don't. Know why, because. Only. You, know if, you, have one your own lottery I don't you're gonna be lottery inside your own machine right that's the whole idea but. If you win you, propagate your winning, ticket, and your, message. Right say, up and down message to think of it at. This point I know who you are and what I'm going to do I'm going to zap you right away to cover up your suntan easily but, so what whatever, you had to say you already said it and he's virally, propagating, for whatever network and I, cannot put. It back into the bottle no more when, the US government can put back in the bottle and message virally, propagated, by WikiLeaks, in. Other words algorithm, is secure because before, him you have no idea whom he should corrupt an ex, post once you know is too late to corrupt them and. In some, sense I want. This is not a mathematical, proof but that is the, idea, that was, missing, to actually, solve it remember, yet, to do that sometimes, the, right straight, path is a torturous work. Okay. So let me tell you in action, what happens the difficulty, is that a blockchain is to select the next block right that's what I said but one block is not easy to hide it's not hard to so like at all which is the Genesis, block block, number one because it's part of a very definition, of a system and so, next to the block I want to observe a favor. A, universal. Symbol of lightness. And effortlessness. And. Has, this, favor. Effort, as it falls to the ground, the Algren blockchain, unfolds. Well. Isn't. This too simple how about soft forks about proof-of-work I guess what in. A girl there are lots of folks there is no proof award and these are great advantages, why because. They. Are absence, of soft for the fact that algorithm chain neighbors Forks is gives. You transaction, finality, you can consider yourself paid in the payment, to you appears, in the block as soon as the book is appear of a good, because this block is never going to leave the blockchain and. 12, is such an effortless means, no proof of work anybody, can participate in, fact that we want to do participate that, is of a be part of algorithm and so, this is a big or and then, let me tell you waitin, on one, reason to have a great team is that we have a very deep roadmap that we are going to unfold all kinds of things in addition to the core and. Here. There are some of them one, thing I'd like to highlight and, maybe -, one. Is a - auctions, what. Does this mean we are going to having. The birth of a network through. Equity, fundraising not. Crowd, funding, now, the network is ready we are going to once, we launch it we are going to make our. Tokens. Available to, you by a sequence, of that auctions. Why. Because. Assume, the typical protocol residue say they thick surprise right one. Talk and I'm making it up to doughnuts okay since. You, can ask sorry is this a fair price but this, is the wrong question so how many tokens you want over get out of here right in.
Fact It's, a in fact inside in a Dutch auction well, it's good to happen but you may decide the price off or bianco token not us so. And I think we want the best to be fairly, consider. Yourself a fairly treated, all. The time you are in Alcorn, starting, from your first entering. Bell girls get was easier when you buy your first talker okay. And by, the way these. Are not that auctions, have been, used now for a long time who uses government's. To, offer their, bones, right but, to whom, to. Buy usual suspects, call, the man Sachs Bank, of America, and what do they do they, buy them and then very sell at higher price to all of us right so. Here instead the basin our own. Chain, auction, ava is not in a smoke room right so you can see the beads of yours and the beads of everybody, else you, know that you obtain with the right price you, know that you are fairly. Worn this, number of tokens and. You. Directly, participate, it is a massive, online on. Unchain, public. Conducted. Auctions, and if. We offer vest. To. Sell this tool for, our tokens, you can use it to sell your building, you can use to send whatever has since you want and just think, about if you are a builder, and you have an office building and you allow somebody, from very far away, for. Destruction. To buy just, enough to put. The. Equivalent of ten thousand dollars to get them there is more piece of the building you. Don't have I don't have less opportunity, to build an, office building in Shanghai and vice versa and and, by severe survey builder never, had such an opportunity to cast such a wide net to really realize the value or whatever he or she has built and. The. Other thing I want, to tell you is self, governance, which. Is really the missing ingredient. The most cool ingredient, in most, blockchains. Why, because. We. Don't know what to really our, needs are going to be tomorrow we barely know what we need today right but tomorrow who knows and, so, if you look at our the, way algorithm, protocol works is whether you reach, agreement. Consensus. On each block by block by block but, the mechanism, were to use to reach consensus, or the block is the same mechanism which, can be used, to reach agreement. On a new monetary. Policy, or a new rule, in the protocol and so. We have the ability to evolve, in a consensual, manner and I, really believe that being. Life essentially. About intelligent, updation, that, is what it really is in. My opinion is that number, one cries. Of, always. The. King of properties, and but. All. These tokens together, a smart, smart content, wise maths Square, because it's, not conscious and not been smart ugly rather you cannot have in on ICO and I keep talk it and you know at the same time automatic. And baby, so you, need all these things to, really realize, what is our dream and I hope your dream to have a borderless, economy, so, in conclusion I, mean, we really should be thank, to all over a great, project out there and they've picked, up a very high challenge in some of the block chains it's not going to be a win for all some of them they are going to stay around and prove useful for. For. A while - but, only to technology, we really realize our aspirations. And, speaking of technology here is some technology that, old. Technology but for two thousand years the Pont du Gard right is old Roman bridge, in in, southern. France as, an evil. Occupants. Of different sides of a river to transact, and meet each other it and has, been in continual. Operation -, for 2,000, years I mean half of that is what I can always you can do us to bring us together I believe, that that the blockchain the, permissionless, blockchain, is going to be as useful to, cement and bridge each other as humanity. And as beautiful. As any other physical infrastructure. That, we ever built and, it will last for, a long long, time - so. Ladies and gentlemen, let's, bring to, get, together of a right blockchain, and, enjoy. It for a long time to come Thanks. You.