Federating Multichains: Scaling With Compliance and Existing Technology - IIvan Bjelajac

okay so uh what I wanted to talk about today is a little bit of a different approach to building blockchains and uh you can consider this a conversation starter about something that we can also discuss uh at the breaks or or afterwards uh so the presentation I'm going to try to make it as brief as possible although there are quite a few slides but most of them are actually not important so uh from you know this okay okay so uh from this standpoint you know I came here in front of Apex fusion and also in front of tenderly where I was an angel investor and U I'm currently VP of strategy uh I've been a part of blockchain you know uh scaling pretty much since late 2016 and uh I first started building something on etherum in late 2015 uh I was a part of quite a few different projects that were able to become very successful in this world and some of them uh afterwards failed miserably and some of them also failed miserably without even becoming successful but that is another story if you want to uh follow up with me you can always uh send me an email you know or uh visit Apex Fusion website and contact us so uh when I actually got into computers and uh started working in in computer industry I was quite young and uh when I first got interested you know the debate about open source was actually starting you know in the the late 90s and uh the big question that back then was C Cathedral versus Bazaar if some of you know about this uh basically Eric Raymond wrote an article called the cathedral versus Bazar that covered the differences between uh open source development and uh building in public versus Corporate structures and waterfall based development I would say that uh Eric article was very interesting at the time it's still very interesting to read but when we look at uh in what way you know Cathedral and the bizar or corporate development and open source development went I would have to say that U the cathedral or corporations actually embraced open source and on the other hand I would also have to say that open source uh became Less open source and actually more of a go-to market strategy for any project uh this is not a very nice thing maybe to say about open source because uh having the source code open you know still allows us uh many many benefits but uh if you we look at the actual uh building blocks of Open Source you know open source introduced Agile development open source introduced uh the way that we that we use versioning systems and GitHub today etc etc all of these are actually adopted by big corporations uh today and there is no actual difference in open- Source development or cor corporate software development at all except for for the fact that you can in most cases in open source actually get to the GitHub and uh copy paste and Fork the code the reason why I say uh in most cases is because if you actually want to try and become a friendly Fork of a project you will notice that uh there are different types of modes that you might need to cross so so the krial and the bizar you know pretty much became the same and the open source became a goto Market strategy which led also to the change of open source-based business models if you look at the way you know the people started uh monetizing open source back in the day it was pretty much Professional Services you know the code base was open you had some knowledge you were able to charge for that knowledge and uh that's where we went well you know over time you know people realized that profession Services you know actually has the lowest margin you know it's harder to defend uh it's less scalable and other uh you know ways of monetizing that actually required you in in most cases and if you wanted to grow Professional Services that goes for that too uh you actually had to incorporate and become a corporation in many ways so we have more and more corporations that are actually standing behind open source projects and that is actually the def facto standard you know uh so when we we look at those uh those ways you know I would say that uh pretty much all big corporations end up in some some type of an open core or hosted solution model and uh you know right after that that happened you know the cathedral or basically the corporations also followed suit you know and uh said well we are going to use this as GTM to with different types of Premium models even if the source C code is closed and all of that I would say changed quite a bit with the Bitcoin in ethereum the reason why is that those are actually the first projects that we can talk about that monetized open sours without a need to actually incorporate suddenly you had tokens to Bear the value and you were able to think about completely new business models but we ended up with pretty much the same business model you know at at the end of the day when we talk about different blockchains at the beginning you know we started with monolitic you know doesn't matter if it was uh public blockchains with no centralized Authority it doesn't matter if it's private or Consortium based chains or hybrid blockchains that tried to take both the the best and the worst from both sides but you know in this setup we pretty much started again copying each other and we started again talking about the differences between these models you know are public blockchains better overall uh you know than private ones that enabled you to scale faster but you you know uh have no actual economic incentives and are pretty much uh distributed systems like we had 50 years ago which became basically the new cathedral versus Bazar so because of that when we are when we are looking even at ethereum ecosystem uh ethereum started dealing with this problem through ethereum uh Enterprise Alliance and uh it didn't go very far like that you know even today when we look at the current thesis of scaling ethereum through evm layer tws or ZK ZK evm layer TOS or when we are talking about polygon and other projects that uh you know came uh based on this thesis and started then doing uh scaling in different PHS through the ideas like the aggregation layer or you know when we are talking about projects implementing account abstraction or having other ways of interoperability we are still talking about an in essence monolitic blockchain such as ethereum that is uh layering down to different use cases but the main chain or dl1 is basically still uh conducting all of the the work the other blockchains are pretty much just uh there to fragment liquidity and offer better execution environments but at the same time you know ethereum is basically competing with it its own uh Layer Two is uh on liquidity it is competing with its own Layer Two uh as an execution environment and uh in many cases those layer twos on the other hand are also trying to compete with ethereum on on token price no matter if it's a governance token or a gas token or what they are using there so what we wanted to to do is to try actually a a number of friendly Fork projects you know based on the original idea I would guess of Open Source and we said you know well if we have public blockchains and private blockchains maybe we can start thinking about Federated multi chains you know we can start thinking about spinning up uh Layer Two blockchains based other ethereum Bitcoin or other thing that actually have their own layer one and uh the they will not compete ex as liquidity or execution environments with each other so this is kind of our take on that but uh we are also you know doing a lot more there or trying to write about it a lot more than we can do in a 20 minute presentation so the project that we started to Showcase this is called Apex Fusion it's uh basically using an utxo based layer one of its own uh we actually got our uh Swiss regulator ruling two two weeks ago that uh the concept is regulatory compliant which was very important for us because we believe that this is one of those things that we cannot do with the actual blockchains of today uh it's compliant by Design because it has has its own layer tools that are more localized and uh are acting as execut environments and running all of the data that could be considered private it uh uses different technological approaches to build out blockchain networks with centralized planning of the entire ecosystem but completely decentralized execution where you can have a public permissionless uh layer one blockchain and we also try to then scale the EXE the execution environments through our Layer Two uh if you want to become a part of this ecosystem you can even today become a Stak pool operator for the layer one you know it's completely Public public and permissionless uh let us know afterwards we can talk if you actually want to build something you can also execute in on our layer twos that use the same tokens ac across the entire ecosystem we don't believe that Apex Fusion is going to be the F the last uh you know or the only blockchain to go down this Approach at the certain point but we do believe that uh it's an interesting uh way to prove this concept and uh so far uh it is bringing us more and more into a situation where I believe that uh the actual use Cas is outside of just Defi and finances which we also support through the layer one because it uh basically has a native Li of function on top of it uh I would say that uh this is a better approach for building real world assets blockchains building actual execution environments you know for more like big companies it's not going against ethereum it's I would say targeting kind of a different audience uh but at the same time we are using uh the same Technologies developed inside ethereum and a number of other ecosystems in blockchain as such so if you at any point want to discuss this with us we would love to have you either as Builders or take operators and uh the reason because we have centralized planning you know for multiple blockchains that are acting in a more fated manner you know that also enabled us to build out a ZK based reputation system so the governance on the chains is actually ran by reputation that is tied to your addresses that are ZK secured so that no one knows what your addresses are but we can prove that you contributed uh you know to certain uh projects on our blockchain or to that you you know contributed in different ways and uh you can actually have your reputation public and you know be involved in the governance segment through that or or as well you know be involved with other types of functions the reputation system itself can also be used across our blockchain or other blockchains which is also going to become probably an interoperability point at some point uh considering that the presentation was supposed to to you know land within those 20 minutes I have 30 more seconds until I'm finished so uh I would love to invite you over over breaks to actually discuss