Hedera Hashgraph - NYC Meetup - April 12, 2018 (Presentation by Jordan Fried)
My. Name is file armor, this, is jordyn 3 from, swirls. You may know us from Hofstra, hadera how, many people know much. About the algorithm, with. Their hands, and. We've got some new people as well so we're no button from, the beginning, you, guys but, you. Guys, want to come over and start real quick Thanks. So, again my name is Kyle Armour I'm, a general admin to kind of do all, sorts, of different things, heavily, involved in marketing and. Also fundraising. For the company this. Is Jordan free beefy. A full of business development who, will be kind of running through some slides and telling you about the half graph algorithm, and cutting what we're doing with madera so, over, to Jordan. A big mentor, inspiration, of mine. Things. Off I want. To bring up some. Folks from our community so let's get this book from Harbin, money our. Money is, a I'll let them tell you what they are but they're building on our platform, and we're super excited to highlight that. So. We're two of the MT members of the carbon team and we're working on out, stable. Point on their. Astra, we. I. Was actually from there. But. We. Development. Because, we were the two bigger problems and they critical place for now the two things are pulling for dope that I'm, expanding the channel economy are, three buckyball agility and, we believe that their cash trail is, the best solution we've. Seen so far to, the group overall we, hope to kind of be a volatility portion, of that equation. This. Sort of economy is going to be the three dividing traces of money as being a medium of exchange I'm, going to accounting store value. It's. So work of occurrences have really only done. Two, of those more people yeah, I mean, so we're hoping, we're. Hoping to kind of be. At first potentially. Hit all three all, three of those as well as kind of add more to trade programmability. The. Definition of money because we believe that especially. As bull economies get more complex, that. Programmability. Started, a much larger, role and value pairs are going forward and we're hoping to kind of be become the denominator. Or the future. Transcript. If. You want to learn more check out our white paper at carbon talk money and. Also. Just. Raise two million dollars. I'm, gonna put you on the spot but Brad you want to come say something. Sure. So open crowd is one of our system integrators, they help do solutions, and they build some stuff out I think they're working on a few Ashcraft projects now yeah so Brad can tell you more about open ground okay so open crowd is a design. Of technology, solutions, company, so a lot, of times people come to us with their, ideas their, white paper or write or an enterprise and. We help to shape and build their solutions, for them and I'm very, iterative.
So. We've, been working closely with the hashmap, team. And are. Very very excited about this. Draft. You talked to carbon to talk to us you also talked to it'll be proud their developers, have some really deep experience, with our SDK so definitely. Go for a background check them out sorry for the shameless plug. But, who here I want to measure the level of understanding we have about hash craft in the room tonight actually. I'm also going to show up to someone else in the room quick and for start demetri demetri coconuts. From how I hate horses. Bro. He's one of the people really broke the story on hash craft back when no one really showed, up to our meetups, and. Dimitri. Was a big part of that so you, know thanks for the endear Demetria, he's, if you guys have any questions he's. Had what, three four, five hours leave, in time, which. Is intense. Exactly. The so he's he's, really I've considered, Dimitri one of the experts on the on, the project as well so thanks to me tree yeah what's. The negative parka, hidden. Forces spot.com. You're. Finding you can also watch. It on any, United Airlines flight. But. Ok so back to metric, in like who knows what what's the understanding of my house back here so who who. Here, feels like they have a pretty good understanding on, how the hashmap consensus algorithm works. Okay. Good. Who. Here has known about the project for more than three months, all. Right cool okay so what we're gonna do then is we're gonna run through some slides we're going to talk about the consensus, algorithm but, that's really technical, and for, those that don't want to talk to technical will really, quickly get to I'm going to blow through these we're, gonna quickly get to what we're doing with this consensus, algorithm and why we think it's going to change the entire internet and subsequently. The entire world as we know it so. That's a big bold claim but we think that dr. Barron has really made a fundamental breakthrough in computer science here and, I'm really excited to share this all with you guys and to really dive into detail on what. It's what how it's actually being used so. First. We. Can't talk about hash crap before talk about swirls, swirls. Is the company that patented the hash craft consensus, algorithm this, worlds was created, by dr. Lehman Baird, he's the brilliant computer scientist, and inventor notable. And that he holds a peoples, I think the fastest, PhD, ever from Carnegie Mellon University I. Believe, we've even verified that two, years two, years and nine months as, he's a remarkable, individual, that holds many patents, personally, Matz, is also, very remarkable, more, than twenty years in the deep tech leadership, space but he Manson, Lehman in that and this is an incredible story for those that don't know it Manson Lehmann met back in 1993. Working. For the senior scientists, in the United States Air Force doing. Research on machine learning so. These guys met back 25. Years ago and I've been working together ever since the. Way they really got to know each other got really close was by building, what is now known as the missile defense simulation. Program, where. We, the United States and our allies simulate. Intercontinental. Ballistic missile, attacks with, the system that they were part, of creating so, there's a good movie about that called wargames you guys can check that out but that's Manson Lehman really special individuals, they did co-found two companies, one. Was required by civil, technology, is subsequently, acquired by Motorola the other was acquired by private equity firm both in the identity space inside. The company we call them the identity, just, because they you know so much and they're so passionate about identity, I think this is really important, point board with self sovereign identity and what people want to use Ledger's for so, that's a little bit about our founders, the. Technology. And going into the technology, I realize I also didn't introduce myself properly but. Yes I do run a little business development, for the company what that really means guys it's developer, advocacy, so, we, we. Build rapport and Trust with companies and help, educate them on what our SDK, can do for them and we help them integrate it into their technology, stacks so we have a team of developer, advocates, that's on the business development team and that. Team is building a suite of self-serving, tools and resources like, a curriculum platform, which I think I can announce now that we'll be releasing in the, middle of May where you can become Ashcraft certified, we made it so even my grandma could delegate Ashcraft certified so, you know really anyone, can do it even the non-technical people out there and learn how to use the platform we're, really excited about that it's completely, free for anyone to use and for anyone to become what, we D miss hash grab certified we also have this huge developer, community on discord, you can jump into that previously.
What I did is I started in for software, company in Central Europe which was a VPN service, and I got into this space when our customers, wanted. To, anonymize, their VPN. Transactions. VPNs for those that don't know help you unblock the web our, customers, wanted to be anonymous while using that sounds, pretty nefarious, it probably was and, they. Were gonna pay us a Bitcoin we were. In a great bit pay as a payment processor and. That's. The story buffer and then sold that company and then joined this team full-time, back. To the technology, the. Technology what. Hash craft is is, it's, literally not blockchain, so altogether we're all going to make a pact with each other then when we talk about blockchain, when we talk about what, is now today known as blockchain, we're gonna call it distributed, ledger technology, right, because it's really not blockchain, a lot of what you're hearing about in the space iota, is not blockchain I owe it as a deck right there's, a lot of other data structures, out there a block is, literally, a chain of blocks right, hash graph is literally not that we are a graph of cryptographic hashes. It, is a simple and elegant algorithm, it's mathematically, proven, what, that means is that we have a proof of what, it means to have fairness, and asynchronous. Byzantine fault tolerant security, the best you can do in a distributed architecture on, our network it is, patented this is the elephant in the room you, can ask me as many questions as, you want after the presentation, on this we do not hide behind this fact that we think it makes this project better and I'll. Talk about why and, nothing. We talk about today is theoretical, everything. Is implemented, in software you can go and download this right now you can use it for those that know how to if, you don't know how to use it you can still use it because, you can download the SDK we have demo apps including, a game and for those that are interested I'll show you the game later so, that's, I think that's pretty cool that's pretty exciting we're. Going to talk about the categories of consensus, real quick and I'll just blow through these this, leader, based systems, there's proof-of-work blockchain, comedy based and then this category, that we call voting, based systems, these are our terms when, we talk about leader based systems I am referring to pbft, and paxos and raft we, can jump into why their leader besar will in a second proof of work everybody should aw that's Bitcoin, and aetherium the, economy, makes this is what the market is trying to move towards to scaling proposals, like Casper, voting. Based these, are 30 year old algorithms, which are really cool this is what actually this. Was the light bulb that sparked, the innovation, of the hashmap consensus, algorithm. Well. We'll do a quick slide on each of these just, so you guys know what we're talking about and I, think all of you will be sufficient. Blockchain, experts, after this we can go school your friends on the, marketplace so this is kind of exciting, hyper. Ledger fabric, they're ibm's, product, r3s Horta this is from the r3 company EE a theorem. Enterprise Alliance quorum when we talk about the leader base when, we talk about leader base consensus, algorithms, these are what these systems are using there's, a leader in the system and now there may be variations, of this there, may be a round robin where the leader the. Community comes to consensus, on who's the leader but there's still a leader for a point in time it may only be twenty seconds and maybe two minutes there's still a leader and so long as there's a leader in the in the system all the, members the minimum required and here's all the participants, of the community all the nodes, on the network must.
Know The IP address, of the leader this. Causes a really big problem because. A disgruntled, employee or, a hacker or someone, that has access to a node with, bad intentions, could, easily disclose, the IP address, of the leader anyone. In their mother can go to digital ocean and, get a bunch of droplets, and create a botnet, and DDoS, this network and take this network down it's fairly trivial to do a directed denial of service attack today it's, actually much less expensive, than it used to be so send a bunch of data packets here take the network down and then, the network would respond, by electing, a new leader but, of course you have to tell every node in the network the new leaders IP address and this would be an arms race right, this would be a constant, fight to keep the network up this, is very efficient, this is very vulnerable but. It does better throughput than people worth watching you're going to do Microsoft, cocoa is, based on this IBM's, fabric. Fabric we're gonna do a couple thousand transactions, per second really cool actions really cool for pocs I think this is great stuff, proof. Of work blockchain, this is what the public network space is really dominated, by in terms of market value and the way this works the minimum requirement, here is that every participant. In the network needs to receive every transaction. It's. Also really inefficient what, we're actually fighting, for is we're solving all of these complex, mathematical, equations to win the right to add a new block to the chain now, a couple things happen when you win that right one, but, when Kyle wins the right to have the block to the chain Kyle gets a set the total order of transactions, in that block and added to the chain do, we trust Kyle he's a pretty good guy I haven't trust Kyle but many other people in the world won't in knowing, that he'll put Jordans transactions. Or Madison Lehman's transactions, at the top of that block and probably not yours right and that's not good, because we won't have fair order, or total order of transactions, the, other thing is that this is really an efficient in that I may still be trying to solve the same computation that Kyle has already solved but Kyle has already won that right at his block to the chain so there's an inefficiency, here it's, massively, expensive, in terms of electricity requirements. Represented, by that beautiful graphic, up there and, and. It's. Also not peace its scalable, to an extent but I think of hearing today's capping, out when when enough people are not playing crypto kiddies you can get maybe 17 transactions, per second on the network okay, so. Limitations. Much, more resilient to DDoS attacks you need off one of these nodes you will not take the network down that's, great but it's not fair and it's not scaling, really well which creates problems, in the marketplace so, that's proof of work we. Have economy, based systems this is our term this is not the markets term we call these economy, based systems and we do it because these, systems rest, on a very important. Assumption, which, we also happen to think it's a flawed assumption, but, the I'll talk about why the. Assumption, is that all of these nodes will. Do what's in his or her best interest, to maximize, the amount of money that they can earn by, participating. In the network in Casper as a validating, node but. The reason that's a really bad assumption, is that software, or, virus can easily, force. Or compel a node to do something irrational. The. Real question, we want to answer period. In distributed, ledger assistance, or distributed, networks is can one compromised, computer, disrupt, consensus, on the network this, does not sufficiently answer, that Leoben has done a great video at. UC Berkeley where he talked about the class of attacks and he goes into a lot more detail, on why this class of attack economy, base has still, many security, vulnerabilities. There. Also it's also not a synchronous Byzantine fault tolerant, and we can talk about why they've actually made up a new word for many, of these economy, based systems which, always starts, with probabilistic, or ends with some, some.
Connotation, That means it's really not a PFD, so. That's the economy based I won't dwell too much on this because this, isn't even deployed in the marketplace yet and this isn't we. Can also talk about why we don't think this will scale after QA but. I want to talk about voting, based systems where, if, you go back 30 30 odd years dr., Baird found this whole class. Of academic, research there's actually quite a bit of thought leadership in the academic space on voting based systems which, fundamentally have the best security possible, in a distributed system the, requirement, here is that every node on the network submits. A vote it's as simple as that including. The nodes that are offline, the, problem, with it is it has unrealistic bandwidth, requirements, no-one's, ever deployed, a voting base system literally, no one's ever deployed it you've never come to consensus, but, you it has the best security properties. Theoretically, this, is the way we can have it work and everyone, had the best bandwidth in the world and everyone were always online and connected this. Is something that you would want to use so. The question became how do you get the best security, in the marketplace, without. The impossibility, in the unrealistic bandwidth, requirements, requirements, which make this impossible, to deploy and that's. Where the breakthrough came where, dr. berry back at 2015 realized, that, by adding two small hashes, to every, event or, every transaction on the network, those two transactions. Are COO you, last spoke with the last transaction, you received from. This other participant, on the network and the last transaction, in your local copy of the database ok if you have these two cryptographic hashes. We. Would know what everyone, else on the network knows and we'd have this immutable, audit, trail of everyone. Let's talk to everyone else throughout, the history of time thus. I would not need to ask Kai oh I'm just joining the network Kyle what, are you voting on the state of consensus, is this true is this not true I don't need to ask that yes or no question to Kyle I already know everything Kyle, knows because I know the, last digital, signatures, in his, local copy of the hash map by. Adding these two cryptographic hashes, some really cool things happen number. One there's no need to submit a vote across the network so we achieved the very best bandwidth, we believe is possible because, you're literally only sending two bytes of information that's. It so we are really capping, out in terms of bandwidth bandwidth, is really the bottleneck, here better bandwidth the hash crafts going to go faster okay so, I start. With that so we're talking about really, let's dive into this we're talking about half, a million TPS, transactions. Per second in a single shard, on our network. Don't. Know of any other project with a space that, can claim that without some sidechain spamming solution, or some ultra sharded proposal, that's, with 3.6, seconds of consensus, latency, and yes, we are digitally, verifying, our signatures, it wasn't, in the white paper we're updating the white paper we did not have the performance results there for those that are interested with, digital signature, verification where. You validate, every, digital signature what that literally means is every time Jordan talks of Kyle or, Kyle, talks to Brad from open grad or Brad, talks miles through, carbon we memorialize. Those, events right. We memorialize those, events and those events need, a digital signature to digitally sign, right those, need to be settled on the GPU right that's what we're doing we're doing 1.18, million, of those every. Second so, that that's, a huge really, we go back to consensus, being the bottleneck here but still half, a million TPS is going to be pretty much anything you wanted to do at this stage you. Get your firewall, resistance. What you also get is you get fairness, inside. An event we have something called a time stamp but it's not your time stamp because we don't trust you right we don't trust Jordan, to submit a fair a time stamp because I'm going to lie to you and tell you that I submitted my transaction, before everyone else right, you have an economic incentive to do that what we have is we have a median consensus, time stamp where, it's when the, median, is when most people in communities the meeting of what most people the community receive, that transaction.
And By working off that were able to -. Were able to enable a whole new genre of applications, like, stock markets, in auctions, and things where you need to know that total order what. I think is the coolest is gaming mmo's really. Rely on having, a centralized. Infrastructure, today some, some of the game companies we're talking to have 100, million dollar-plus investments. In data. Centers and that. Is a tremendous cost just I mean those things online in. The peer-to-peer web you, mean playing peer-to-peer there'd, be no need for a game company to, get all that infrastructure, that's really going to lower the barrier of entry for people that want to join this, competitive, game landscape, and make these casualties, so, I think that's pretty cool, this, is a summary, of the security, of what we talked about leader, based voting base economy, based just, what else is in the market you still want a mutability, great we haven't actually will do you one better we'll talk about control, feasibility. Then if we, have DDoS resistance, huge. The, DDoS attacks exist we cannot operate businesses. Or platforms, on the assumption that they don't DDoS, attacks to a necklace them they can take they, can take CD ends down we need to accept. That DDoS attacks exist it's really important to be resistant. To those we, have fair warning of transactions, with fair crime stance, so. Let's, talk about where we came from so we know where we're going for those of you can. Launch a met and heard this already but, we're, gonna we always a hash craft on collaboratively, about ecosystem, we think a lot of the other projects, in the space that, something, we compete with I've actually added a lot of value to the space whoever. Satoshi Nakamoto, is he. Or she or collective. Of people have, done the world of service by that scale, introducing. Us to this concept, of distributed trust, before, Bitcoin. We really didn't know that it was tributed trust was at, least not wasn't deployed at the scale my, favorite, example, of this was, I think it was back in 2012, there was some kid who. Got on College, GameDay right for those that don't watch sports like Saturday, morning ESPN. On College. GameDay huge, poster, that, reads hey, mom send Bitcoin, in a QR code right, he's waving this thing frantically, someone, on reddit saw red it's the best community on the planet right so when I read it saw it optimize, that image and this kid gets, 32,000.
Dollars Sent. To this Bitcoin wallet address let's back in 2012 I hope that. When. You when you when you look at what you look at what really happened there right that's a fun example but let's really talk about what happened in we have people, complete. Strangers, perhaps, an opposite, sides of the globe maybe in Dubai or in China or watching College GameDay and. Sending. The complete, stranger, money without going, through any intermediaries. No need to get out of your house get in the car and go to Western Union or MoneyGram, no need to talk your bank and pay your wire transfer fee no need to use PayPal, no need to do any of these things. And still some of them no need to use ven mode and was huge in New York right no need to use any of this instead money to a complete stranger on the opposite sides of the planet the ramifications. Of that are Earth's shadow right, sending money to people without having to give it to the Red Cross who yes, they do a lot of good but they also take 10 cents of every dollar donated to them or something like that sorry, 9 sorry says anyway to read the magazine ok ok yeah but, you, know instead, of going through these organizations we, can do we can donate directly to, people behind. Behind. I don't you can say enemy lines who need it if you know if North Koreans could give us their QR codes we could send them Bitcoin in India they could use it to buy food this is already happening in Venezuela, where people are making border runs to Colombia, to buy stuff really big deal so distributed, trust we cannot discount that what. Happened next is people said well with, with this what is this Bitcoin thing it's an application, on top of underlying, technology, that's really a ledger what, else can we do with Ledger's turns. Out people are doing some really cool with Ledger's Sweden. Is trying to move title needs to any property, in Sweden, onto a ledger, the. Republic, of Georgia over in Europe is doing the same thing that's, actually, kind of groundbreaking too because for those that haven't bought or sold property, it can take 40 to 60 days in some countries even longer to get Ledger's to prove you even have the right to sell that house and no one has a lien on it or anything like that so moving, this on the ledgers we'll be able to program a smart contract with a digital token that represents, a title deed you can program an atomic swap a smart contract to say I'm going to send the end of this address you're gonna send your title deed to this address and we're gonna swap that's.
Going To change a lot of real, estate transactions. That's going to be a multi trillion, industry long-term as well lots, of other cool stuff is happening here intellectual, property rights stock, certificates, diamonds. Provenance. Of stuff that we want to track over time we have regulation, coming sometime in 2020, here in the United States where pharmaceutical companies, are going to need to attest to every, drug or every ingredient that are that's in their products and prove, the origin, of it now. Actually. Also works in their favor so they can prevent counterfeiting. Or black-market pharmaceuticals which. Represent, in some countries, more than 40 percent of pharmaceutical, sales so, really. Big deal other people using these letters for other stuff I just, talked about smart contracts, but I would say that's generation. 3 of distributed, ledger technology, we, don't trust each other you have Bitcoin I have I have a title into a property we can now transact, with each other before, you probably needed a real estate agent or a broker, or another meant a middleman of some sort escrow, you. Don't need that with a smart contract today, most, people use these things for icos, right, can't. Hate on that it's really disrupting finance the way people are raising money not equity fundraising is a pretty cool thing but. There's, a lot of other really cool applications, for smart contracts and. I, think, we're just beginning to see those and then. The fourth generation we say we're ushering in the fourth generation and, then immediately after we said that telegram said they're not fifth generation. I. Say. Okay but let's see the open net worth deployed but, that's that's neither here or there the fourth generation we. Believe will be characterized, by the fair ordering and fair matching, of, transactions. How do we how, do we transact. With each other with trillions, of dollars eventually, coming on to these networks how do we transact fairly with each other we need commodities, markets, ship it we need stock, markets, and all we need auctions, that are going to help you sell title deeds all of this is going to happen in a fourth generation which, is exciting, so.
Just Some use cases that we're already starting to see form because, this is possible, we have people in our ecosystem, building markets one day those markets could resemble stock, markets, like, a Nasdaq, you can do micro payments micro payments, is a killer, application and, I, can jump into a whole bunch of reasons why but micro, payments, enable you to do all, sorts of stuff so that Jimmy Wales doesn't, have to Jimmy Wales scenario started with leukemia every, six months he probably asking, for two or three dollars right, if. We had micro payments enabled natively in the browser he. Could simply deduct a fraction, of a penny and you. Could pay to read a page on Wikipedia, not even know not, even feel that if it's a hundredth of a cent what do you care, but aggregate, over the hundreds of millions of page you said Wikipedia has that, actually keeps them in business so micro payments could disrupt what we think is a publishing, model that's just one example maybe, you don't like that example but, Jimmy, Wales at least wouldn't have to ask us for funds, what. Else would I want to say on this point, micro. Payments. I'll, be good at that because I don't want to reveal too. Much here but. I'll help with public ledger improvements, with timestamps we've, got that here time. Limited business transactions. You can do that which. Is great identity, and session management and we'll talk about why we enable that on platform, games, as we talked about eBay, so a lot of the stuff is actually already built or in development now you're. Only now hearing, about some really exciting companies, like carbon that are coming out of the ecosystem and building some really cool stuff but. You. Know again. Some of this was actually built at in 24 hours at a hackathon. Actually. Solomon I don't know if you know the Solomon the guy that won our crunch disrupt hackathon. Showed up you remember Solomon he she actually showed up to the San Francisco meetup we did last Friday and, Solomon. Build in 24, hours I thought. I thought he was out of his mind and was never gonna finish but, he integrated, - it which is an SMS, API and, created. A distributed, Christie's, or Sotheby's so, all of us could be at home and you could be watching this auction on TV and you could send an SMS and distribute, and send a bid to this auction and the. Network, comes to consensus. On, when. The bids will receive and closes, the option it was remarkable, they built that in 24 hours and we're like holy, that's so cool we had to leave. Leaving freaked out about it was great so you know and i think i think that's like whoa we got to introduce you to the christie's guys i don't knows anyone from Christie's or Sotheby's should. Tell them about that but, there's, there's also, collaborative absolutely, you could also use hash back to frankly build a better Google Docs or a slash or, something like that now, that's, that's, the technology, the, sexy thing to talk about now and of course I'd be remiss not to talk about it is the public ledger space, those.
Of You that are familiar enough that hash grab know that on march 13th, here in New York City in Times, Square at the PlayStation, you know we made a really big announcement that. We, are going to address what, we see as the problems, in the marketplace, that make public Ledger's and pretty difficult to do today because there's tremendous, problems. Although. The markets rally. Around awhile it's, been a probably pretty good day for all but. Hadera is our, governance, council, and our solution. To what, we see happening, in the marketplace and why. We think that you, need to solve these problems that I'm about to talk about before you release a public network I also want to point something really, important now for, the last three years we've been privately focus on building an enterprise company, we've, focused on building technology. Getting. Enterprise traction, and then going out into the public marketplace we, think that's the right way to build a company and, just, be hypothetical. Or releasing ideas and the white paper and raising this is real tech you all can download it and, I think that's an important point so. What are the market requirements, for public network adoption like how how. Are public, networks and let's, be real right so we're going to be really it's respect I assume, all of you are part of this blockchain. VLT community, at large right but, if we really want mainstream, adoption if, you want grandma to use it mom in your anthat barely, knows how to use FaceTime how. Are we going to get mainstream, adoption of this technology we have to solve a lot of problems first, you have to solve performance, the, Bitcoin, that everyone, on the planet used Bitcoin today you'd never be able to send a transaction across the network that let's, just take Venezuela. If Venezuela. Became the shadow currency, is at CNBC, claimed earlier this year of, Venezuela, it would take you a month, to send a transaction across a network that's just been a suelo right, I mean every family could go buy groceries once, a month we, must accept that as fact we need to get better technology. In the space lots, of people are trying to address that including, Oscar so. You. Also need security, you're never going to get trillions, of dollars of value onto these networks when it seems like every week we hear about some hack or some vulnerability. Or some. Backdoor, into, some exchange, or some code but, more importantly, security, of your own assets, security. Of the fundamental. Properties, of the network we, need deterministic. Platforms, and are there's no. Five over the space today everything, is either non-deterministic. Or probabilistic, or, something that doesn't have asynchronous Byzantine, fault tolerant security, as we, learned thirty years ago is the best you will ever achieve so. Security, governance, and when I say governance, I want to be really clear here I'm talking about the legal and the technical, controls required. To, keep a stable platform that's. Governance, and then of course stability. I'm, going to talk about the past okay you. Open. Source communities, are great, we, believe, they're great we, think that the fundamental, value of an open source community is the economic, incentive, is it we're all developers, in this room everyone. In this room contributes, the best lines of code in the whole community benefits, the high tide raises all ships it's great open source technology is great when. You combine it with a cryptocurrency. Everything. Gets flipped on it set the economic, incentive, is for all of us to come together create. Bitcoin. Nomad right here in this room right now we should do this actually it's an experiment, we're gonna create Bitcoin nomad we're gonna do an all-night a katana in the morning we're, gonna fork, the Bitcoin a chain we can do that we can do that tonight right your fourth the big coordination, and in the morning we got Bitcoin nomadic, and be public, on the marketplace hijack. The brand claim that we're Satoshi's vision, and, we are this is what he always wanted or she always wanted to the collective always wanted whatever that's, what we're seeing half in the marketplace this is the problem with open source and cryptocurrency I fundamentally.
Believe In. The value of cryptocurrency and, the ethos, of the problems, with big government we get that but, we also need to grow up and accept that while anarchists, or great catalysts for change we, need proper governance in this industry if we expect grandma and mom and everyone to come on board and use this technology, and not we're trying to solve for so. With, this our solution, is the hadera Council, which, is the hadera Maastricht Council, it's a geo distributed. Body that still distributed, across the entire planet every. Continent, will be represented, on this council every. Major industry vertical. Will also be represented on this council we, have representation. From. FMCG. Companies and. Telcos. Some, of the largest financial services, organizations some. Of the largest law firms on the planet a couple, of the big four consultancies. We, are completely, distributed, across the planet and completely distributed, across, every. Industry burden, this, is a council, that instills the trust of the mainstream the, other thing I mentioned about these companies who are they their best in their respective classes best-in-class. In terms of revenue they're global Giants. Of their respective industries and, they. All have these blue chip brand names that, if we were playing one of those logo quiz games that, you often see people playing the airplane where they show you part of the logo and you're like oh who is that you gotta guess it you would all and everyone in this room is gonna know the names of the companies we. Find it highly unlikely that, a. Australian. Food manufacturer. Would collude with the European, telephone, no. Incentive, to do that this is the purpose of the platform, now, what is the platform actually doing in terms, of this they've they're enforcing. A set of legal and technical controls, what. Are those they, are they. Are votes. On when do we upgrade our wallets so who makes that decision let's talk about it is that a benevolent dictator is it dr. Lehman bear this dr. Lehman bear the, new benevolent, dictator the blockchain space dr., Baird has new breakthrough we are coding our wallets well. I think if dr. Ben were here in the first menu that you shouldn't trust him to be making a really great software updates when he's 99 years old and we should probably have a governance body in place, what about continuity, what about the real process, for all of this so, the members vote on that the members have their experts, on a technical, Council they contribute, the best developers, they look at the source code which is open for all to see and I'll talk about that in the next slide but, they vote on when do we upgrade our software updates, this is a really cool part about hash crafts we all decide that on on. This, Friday at 9 p.m. Eastern Time we all upgrade our software the. Upgrade, gets gossiped out to everybody, across the planet at the same moment on the same day at the exact same moment in time we all upgrade our wallets you prevent a fort by doing that anyone without the upgraded software is, not going to be able to rejoin the network and earn money by participating in consensus, that's a really big deal no one's doing this in the space so, that's kind of cool. That's. A technical control the other legal controls. The. Patent, is open. For you to use here's. The catch you cannot use the patent and deploy your own public network okay, we are not hiding behind the patent there is and. I think this is really important, there is no license, required to use the dara Ashcraft, Carvin did you guys need a license from us no great, happy to hear it ovary, crab have we ever had to give you a license to build something great, there, is no license you just go build okay you go build what you build you own okay. It's your source code our platform. Is completely open. Source for review, purposes you. Can see the source code you are never making an API call against, a black box you will always know what, that that algorithm is doing and where it's sending your API call you will even know who's settling the transactions. All of this is possible so, you don't even need to talk to us the software, you develop is yours and that's kind of cool and you never have to talk to us because probably.
You Don't want to talk to me as I talk a lot right so, that's, also really exciting just go build and we're building the self-service, suite that you will be able to just go ahead and do that so I mentioned. This is this is a really important point and then, the other is transparency. In the code base right, again it's, completely open review, we have we have code bounties, now people, in our developer, community actually just recently found new bugs in it fix. It the new SDK hasn't, has, this bug it has the changelog you can see has this bug that those guys are the disc or community found and that's handled we, will be taking this to hackathon, there will be many eyeballs, on code base we, will even go so far as to say that if you have a pull, request the. Developer has this really great piece of code they want to suggest we merchant the code base great, send it to us the governors will decide if that gets merged not Lehman not me not Kyle real, experts, on the subject matter that know what they're talking about so. There's, that, the. Hadera public, services, what is Hadera hadera's literally a chaotic organization. It, is a for-profit, company that, is owned by, 39. Swirls. Is just one of 39. Federa. Sells a set of services, ok that's the business the. Business is we sell services, here's, the cool part about this business though this, business allows all of you to get paid by, running this business and here's, how it works it's kind of cool you, all have an economic incentive to put a node on the network, hash. Craft is completely. Open consensus, anyone. Will be able to throw a node on the network including. A stay-at-home mom, down in sydney australia and, she'll probably be able to make her car payment, or maybe even more pay, her rent every single month I don't know what real estate prices in Sydney Australia, but I want the car payment I think that's pretty sick so, you'd be able to make some good amount of money you scale out the number of GPUs, you have and number of machines you'll be able to make money by gossiping, about gossip, on hadera now here's how you're compensated, you're compensated, by health tree for your no to be providing, this set of services okay, you, are also compensated. By lending, your CPU, cycles to, the network your bandwidth, your. Storage. And that's. When you become six point your bandwidth your storage and your CPU cycles, now you're compensated. As a function, of how many coins you have in your wallet yes, adara is a proof of state public network, now, the way we do proof of stake is obviously the more coin than having you know it the more money you're gonna make you don't have any coins that are all you're probably not going to make a lot of money and that also I'll talk about why because. That's a security property, it gives you a PA between a public network so, your cryptocurrency I don't like to think of it as no currency because that could do this a lot of people people just want to speculate and I just want to say cool let me go buy this new big one how about we talk about it like micro payments as a service that you can save someone, across the globe a fraction. Of a penny you're, never going to be able to do that nickel transaction, fees like 20 bucks so, why would I send Kyle a tenth, of a cent it's, gonna cost me 20 bucks than the 10% so. We're ruling out a whole genre of use cases there's a lot of reasons why we'd want micro payments in the future maybe, your electricity company said it's hard to you month you will charge every time you click on and off your switch although that would be really annoying you. Know there's just crazy different things that will happen when, your robot, vacuum cleaner wants to talk to the microwave, I don't know maybe there's some micro, payment in the exchange there's lots of actual, cool use cases besides, the silly ones I just mentioned that, I think would be really groundbreaking.
File. Storage we have a distributed file store you're compensated. Or you pay if you're the buyer you pay per byte per second okay that's how this works it, I like to think of it not as a file store but as a file directory, where, what you're really storing, is a cryptographic hash that. References a file that, could be stored on a CDN a content, delivery network or, somewhere, that's not. It could probably get pretty expensive if you have really big files on here but if you want to use it that way you could you, can also encrypt, everything you put on here and that this gets sent out to the nodes we all gossip, it out does Kyle, have enough money as well at the paper by per second, great we all update our our, state, we all update the state of the ledger great it's in our little statement cool so that's the file store there's a lot of really cool groundbreaking. Things about this I'll tell you the biggest one now is, our revocation service has, anyone here heard of GDP, are the new identity, regime, or the me great so you've heard a DDR let's, talk about GDP RS because many you didn't, seem to know what that is but that's okay it's in Europe so you it doesn't affect you yet but, it's a regime that. Is general, data protection, regulation. This is part of the reason why Zuckerberg, is in Congress right now testifying. In front of the House and the Senate but, what, has he done with all of our personal data the, European Union got kind of smart and just started making laws about the thing right this is what you can and can't do with someone's data they're, actually, more forward-thinking than United States on this right I think we're way behind the times in Europe you have the right to be forgotten and Europe. You can go to, Facebook. Or Google and safe delete everything you've never knew about that's. Kind of cool if someone publishes something really bad about you on Google or you, wouldn't just see a search resolving this you could probably get Google to take that search result down and, just have yourself completely, forgotten. Which. Is a lot of reasons why you want to do that in identity, you need a revocation service, so, I don't, want to scare anyone here our cryptocurrency, application, people. Are storing, the local record of that you will have compute complete, immutability, probably. For cryptocurrency we want this immutable, audit trail of every, time anyone's, ever send money dating, back to the genesis, of the network yep that's good okay, an identity, in our personal, data we probably don't, want that it's a really bad idea, what if someone stores, you child pornography.
On The network you probably wanted the lead right away right right, away and you want to prove that it's the owner we. Have a system for doing that you have this revocation, service where let the files put there you'll be able to actually revoke, that bottle let's talk about identity, - let's, say a DMV wants, to have a DMV application. On top of the Deripaska not, saying they're doing this by the way but it would be a pretty good idea they, would issue your credential, the credential, comes from this kyc AML, certificate, authority in this case the DMV is the certificate authority and kyle's, belligerently. Driving, down the road neglecting, people's lives and he gets pulled over and we're. Probably gonna want to revoke his driver's license or at least freeze it you're gonna want to revoke that credential, so intrument someone tries to scan, it and reference, it in the ledger it doesn't exist you shouldn't be driving, that's revoked if it gets caught driving again they'll know if he has a suspended license there's really practical, ways to do things like that enter. A Vulcan credential and I think that's really important for identity, and who you share with so, these are the services, this. Is familiar, to all of you because this we borrowed, from the marketplace the market has adopted a set of solidity, standards, where, people are using ERC 20 tokens where people are using solidity, scripts I actually, got a demo of this warranty the other day it is mind-boggling. It actually works, through a REST API which. Is just a browser-based interface where. You can copy and paste it crypto, kitties ERC, script and, execute. It on a strap. No. Need to worry that you're going to stock 30%, of the entire network utility. That's available or, to congest the network we can use solidity, and execute, your scripts and get all the properties of hash crafts running, through the solidity virtual machine. So that's an open-source code base if there are solidity developers, in the marketplace today that know how to code you here see 20 tokens you can take those here see 20 s and execute. Them here, so, I think that's kind of cool kind of groundbreaking all, of this sits on top of the hash craft SDK, and this. Is on top of the Internet tcp/ip. And, what we're exposing, is a set of public API is where, you pay much, like an API, business you pay to use these services so you want to send money to someone you, want to send a token, to someone you, would pay the, gas price, as is called an etherium you'd pay the micro transaction, here's the cool thing about hash craft micro transaction, the, network is as close to free to use as possible where. You're we're literally talking about fractions. Of pennies that you are paying as the gas price to execute the network and even if the price of the native platform token, increases. By orders of magnitude that. Is still negligible, when you're paying a millionth, of a penny or some some. Fee that unless you are doing millions of QPS you're really not going to feel so, this, is kind all of this is really kind of cool in the future that probably will be other services, but this is what we have today, and. That. Is definitely, wraps up the Dara and hash grab the swirls so, I think we should open it up to questions or. I'm happy to shut up and you just ring. You.