How Infrastructure Flexibility and Multi-VM Blockchains Are Leading Web 3 - Denko Mancheski

Hello everyone, this is a talk by Denko Mancheski, CEO of Reef. Unfortunately, he couldn't join us live today, but he took the opportunity to pre-record the talk and we will upload a slideshow presentation shortly. We'll talk about infrastructure flexibility, the challenges involved in launching multi-chain protocols and dApps, especially regarding bridges and token liquidity. The challenges of user experience that are still present today and, of course, how Reef is working to overcome them. We appreciate your participation in the network to help us overcome these challenges and bring the next billion users into web3 technology.

Hello everyone. Thank you for attending this talk and for visiting our Reef booth and Reef metal wall . If you haven't seen the metal wall, you should. Our team at our stand will help you find the location, and then you can take a photo and win some really cool Reef merchandise. Due to unforeseen circumstances, I have unfortunately been unable to attend this year's conference.

Well, at the end of next month, on March 28, Reef will be a sponsoring partner of Binance Blockchain Week in Dubai. So I hope to meet some of you there. Now let's move on to the presentation. First, I will introduce myself and explain what the project is about explain what the project is about , the current challenges, the multi-chain and multi-machine landscape, the future, and the launch of the Reef ecosystem. I 'm Denko.

I am the CEO of Reef. I also have experience in technology. I've been a developer since I was 16 and entered the blockchain scene in 2016 with Ethereum, of course, as well as NXT and some of the early blockchains. Over the years, I've built a team of developers and, about a year and a half ago, we decided to create Reef. Reef stands for a reliable, scalable, efficient, and fast layer 1 blockchain for DeFi, NFTs, and gaming.

It is built with Substrate Framework and has EVM support. Now, let me quickly explain these attributes, such as what is reliable and extensible. Basically, Reef works with NPoS, which stands for nominated proof of stake. It's basically an evolution of the traditional proof of participation, where you have validators and nominators. Validators provide the infrastructure and maintenance of the network.

They are responsible for the new blocks. They must be responsive at all times, and operate a secure and reliable infrastructure. Basically, they are the ones that guarantee the purpose and, ultimately, protect the network. That's why the validators we run are run on a dedicated infrastructure that we own in several geographical regions, and this is what we also suggest to other validators who try to run their own servers. Then there are the nominators, who are the token holders who contribute to the security of the network by financially backing up to 16 validators.

They receive part of the reward, but if any of the validators are sanctioned for misconduct, they are also sanctioned. So that's the reliable part. This is basically one of the few blockchains, perhaps even layer one, that run NPoS. This consensus algorithm also powers Polkadot and Kusama, but those are basically blockchain networks, not layer one networks themselves. Next, the extendable part.

Basically, Reef is a very modular blockchain. It updates automatically and is compatible with multiple virtual machines. But let me start first with EVM compatibility. Because of the way our blockchain is built, the smart contract execution layer is completely separate from the rest of the blockchain infrastructure , such as the governance module, the network layer, etc. Therefore, it is a standalone module that can be further expanded.

This is where EVM extensions come into play. Therefore, we can create a given module in a completely different programming language, say Rust, make some module that performs some kind of heavy computing or perhaps some different kind of storage, and then we can expose this functionality directly in the context of EVM. We all know the limitations of EVM and believe this is the best solution to allow developers to do more in EVM. Now, since EVM is just a module in itself, we can add more modules. This is where several virtual machines come into play .

Imagine a blockchain where you can run different types of smart contracts written in different programming languages, but using the same tools to interact with it, the same tools to deploy it, basically the same wallet, the same seed, the same user experience across all virtual machines. And in addition to that, Reef has something we call an internal bridging layer , which synchronizes state and addresses between all virtual machines. For example, if you're spending on EVM, it automatically syncs in another context, etc. Well, what this does in the long run is basically abstract the complexities and allow for a better user experience. But I'll address the user experience part a little later.

So, a little later. So, how is this extensibility achieved in practice? What's happening? practice? What's happening?

How are new modules created on the blockchain? Basically, it's a Reef string that is automatically updated by default. Therefore, all new features, security updates, and performance optimizations can be installed with scheduled updates without forking. Basically, what this does is give Reef's network layer the ability to manage updates whenever we want. Let's say we want to implement a new module; we can schedule it for a certain block number, and when that block number is reached when that block number is reached , the validators, which basically run the network, are automatically updated.

The entire update is sent through the network layer and re-executed. Therefore, there is no fork. Validators do not need to install new software, such as new versions, version faults, or anything like that. The good thing about this is that this functionality has its own rollback mechanisms and other redundant layers. Therefore, this mechanism is truly resilient.

Basically, nothing could go wrong because, if there were a problem, it would be very easy to reverse it. This is where extensibility comes into play. And then we have efficiency and speed. Basically, from scratch, the blockchain is designed to handle many users. We have 10- second blocks and a 40-second end time.

It offers very high performance while maintaining very low energy consumption . In the tables below, you can see some comparisons with other ecosystems across multiple attributes ecosystems across multiple attributes . Furthermore, the cost of interacting with the chain is minimal. For example, it takes about $2 to mint an NFT or about 5 cents to make a transfer. Another thing is that commissions get burned.

Therefore, this is a deflationary mechanism in itself. And the good thing about this is that the incentives among the participants, basically the users and the hosts, the validators of the network, are aligned. This is one of the big problems that other proof-of-work blockchains have because the more scalable they become, the lower the fees and the less miners earn. Therefore, there are many conflicts between the actors involved in the system. Therefore, it is reliable, extensible, efficient, and fast.

Now I want to talk about the current challenges that are occurring in this landscape. Basically, the fragmentation of liquidity across the ecosystem, the need for multiple programming languages, unreliable token bridges , scattered development tools, and a fragmented user experience . But let's back up for a second. At the beginning of this cycle, we have seen the emergence of a multi-chain world. We believe the future will be multi-chain.

And the reason we've seen this boom is because the smart contract landscape was underserved. Developers wanted more programming languages. They wanted more efficient environments. Meanwhile, users were demanding a better user experience and cheaper, more affordable interaction. But the multi-chain generated new challenges, such as fragmented liquidity between ecosystems.

So, to solve this, we started building all these bridges, right? So, one of the problems here is that there is no standardization with bridges. So, technically, anyone can run a bridge, and usually each of them has their own instance of a wrapped token. So, what this does is create even more complexity for users. So complexity for users.

So , instead of simplifying it, we went in the opposite direction. We made it more difficult for regular users to interact, because now, if you take your tokens from one bridge, you get you take your tokens from one bridge, you get , say, wrapped ether A. If you take them from the second bridge, you get wrapped ether B. So it's extremely difficult for users. And then, when they get those tokens, when they want to, say, participate in an NFT market, maybe that NFT market doesn't support wrapped token B.

So now they have to convert it, and it's just a matter of luck, right? It's not easy. And every day, with more and more bridges, it gets harder and harder. And one of the reasons is because bridges are currently external infrastructure managed by third parties. It has nothing to do with blockchain.

You really do have mostly centralized monitors and everything is done most of the time in an SQL database, time in an SQL database, right? So, what are we doing to solve this? We are implementing native bridges, so they are part of the blockchain layer. They are executed by the same validators, and these bridges are not only external, but also internal between virtual machines. And, basically, in addition to bridging the gaps basically, in addition to bridging the gaps , the sharing functionality is once again natively supported natively supported .

Therefore, reliable bridges can be expected at all times. This is what the developers want, and is what the developers want, and basically, what this would mean is that, from the user's perspective, they would stop seeing certain things they shouldn't. Basically, they would just try to go in the opposite direction. So, we're reducing complexity, we're reducing complexity, right? Unified user experience .

For example, what they would be doing, let me give you an example. For example, if a user wants to buy an NFT in ecosystem B, but has a token in ecosystem A, then they need to find a bridge. They need to find out which one is the most reliable, the best, the most efficient, the cheapest, etc. Once they find it, they have to link the wallet to this third-party website. They need to paste the address of the target ecosystem where they want to obtain their encapsulated token.

And once that's done, they have to go to their other wallet. They will probably have to add the token to the wallet because that wallet may not accept the encapsulated version of that token. And what happens is that now that they have it, they have to change that encapsulated token for the main one used by the NFT platform. Otherwise, they wouldn't be able to do it. And now they have to go to a different DEX, exchange it there, then go to the NFT market, and once they've bought it on the market, they'll surely be able to see the NFT there, but it's likely that their wallet won't support that NFT market, etc.

As you can see, it's like a chain of complexities, and each step creates more and more inconveniences for the user. And that's why I think we face some resistance from newcomers. So newcomers. So , how would this work in the case of Reef? Since everything is natively integrated, they can send their token from ecosystem A to a bridge address and that's it.

It's done. The tokens are automatically received at the address. They can predefine which token they want it to be converted into. They are all standardized, so the NFT marketplace supports them, and from there, you can go directly to the NFT marketplace, click buy, and you're done. Now they can access their wallet.

The wallet also supports NFTs. We can easily connect more than one market, and it's practically finished. Therefore, all these integrations unify the user experience, allow for easier user onboarding, easier interaction with the blockchain, and easier exit. We believe this is the only way to achieve mass adoption. Basically, this is how Apple brought the personal computer into every home by making computer software actually usable for someone like my mother, a not very technical person.

Basically, it's the future. Therefore, we believe that multi-VM blockchains with native bridges and the use of a unified user experience are the future. Therefore, multiple programming languages, native UI development kits, and plugins are needed. Therefore, developers should consult our website. We've already launched our Reef UI kit.

Therefore, you can create your own dApps and they will look exactly like our dApps, basically like our wallet, like our block explorer, like our extensions. So, all the fragments for choosing directions, everything is launched. Then they have the unified tools environment. For example, in our case for EVM, we have Remix, but everything is done in Remix. Therefore, automatic contract validation, automatic verification, as if it were obviously integrated with our own extension.

Then, you just have to go there, implement your smart contracts, and everything will be ready. You have the green checkboxes in the block explorer, etc. Furthermore, blockchains need to be flexible because we have seen that this landscape is changing extremely rapidly. Therefore, you need to add another virtual machine; you need to expand certain things. Even the bridges themselves are an extension.

It's something new that we've seen. We didn't have so many bridges before because we didn't have a multi-chain world. And then a multi-chain world. And then , to prevent those bridges from causing additional complexity, they have to be integrated into the core layer of the blockchain. So we believe this is what the future holds for us, and that's why we're building Reef.

Now, a little bit about the Reef ecosystem update. We will launch it this quarter. Many of these products will be launched this month. Browser extensions are now available. They are waiting for the user interface kit to be added, which has to happen any day now .

We have versions for both Mozilla and Chrome. We have the web wallet. We have support for Ledger. And we have the block explorer. And those four products are integrated with each other.

For example, the web wallet uses the extension. And the extension uses, you know, Ledger is compatible with Ledger. So you could use the Ledger wallet right out of the box. The same applies to the block explorer. So, in the same way we did with the block explorer, you could interact with the smart contract directly.

And again, with our extension, support for Ledger, etc. And in addition to this, this is what the main team is building. We are also helping other projects, as is only natural. And one of the upcoming projects is Reef Pad and Squid. One is the IDO platform and the other is an NFT marketplace.

We are working with very popular artists to have them publish their first collections on Reef. And this is very, very exciting. So here's a little preview of the updated products. This is the block explorer. They are all very modular.

So, when I say unified user experience, you might see the same user interface in a different product. For example, in a transfer you might see the exact same user interface in the extension, in the wallet, in the mobile app in the future, etc. So this is the web wallet. This is the extension. As you've seen, they are all created with the same principles in mind, with the same design, the same user experience.

It has to look like it was created by the same team. Even though we have several parallel paths, several teams at Reef, everything has to be done the way Apple does it. And furthermore, when we release all these libraries, other developers will be able to create products like this that have the same look and feel. So, thank you all for listening. I hope to see some of you in Dubai.

The weather here is wonderful. It will be a pretty important week for blockchain . But don't forget to go to the after-party tonight in Denver too. I'm sorry I missed this in Denver too. I'm sorry I missed this .

You can find more information at reef.io/party. It's a three-story nightclub in a church, so yes. Uh, I'm jealous. Anyway, thanks again to everyone.

Consult our documentation for further questions. You can send a message directly to ethdenver.reef.io. If you have any questions about this particular presentation, or if not, you can approach our team at the booth.

They will connect you with the right team. We have launched the ecosystem program. That's more than 20 million in grant funds. We have already begun to release these grants. But we are also supporting projects at different stages.

Some projects that do not need grants projects that do not need grants may need help with fundraising, or perhaps help with presentations to other partners, etc. Well, what we 've been doing is basically creating different categories to help different projects get on board, from young, favorite projects, to someone who's an amateur and helping them get to a point where, you know, we'll help them put together a team, help them with fundraising, etc., to projects that are already established. We are already bringing on big names as validators. They don't need funding validators.

They don't need funding , they know everyone in the environment , they know everyone in the environment , but they have to own a part of the network, and that's how Reef becomes more decentralized. Again, I'm running out of time. Thanks again to everyone, and I hope to see you soon.