Introducción a Starknet y Cairo

Very good, very good. So, once again, welcome. Let's begin with the introductory session to Starnet and Cairo by Javier Montes. I'm going to stop sharing my screen so you can do it. Hello.

Um, thanks. Nothing, my name is Javier Montes. today's presentation. Well, good morning from here, just like you, and I'm on the other side of the world, so for me it's already 6 in the morning, so anyway, happy to be able to share what little I have to share here today. Today's session is an introductory session and nothing about Starknet.

It's quite theoretical and quite dense. Uh, in Yang's session there were some questions, at least one that I remember, about what blockchain is and all that. I know that you have already had documentation, some of you have already seen some videos about blockchain. Anyway, this initial session for Starnet is always about laying the groundwork, so I'm going to review and then see how this leads to the solution we're going to show you, which is Startnet and Kir. Let me pause the presentation for a second.

They let me know when they see her. Give me a few minutes. They should be looking at my screen. It 's still loading. Okay, now we can watch it.

Yes, that's great. Uh, I understand this is the slide, a slide you've already seen. Uh, uh, we're part of Quantum Freelaps, uh, Jan Alarcón, Javier Naday, both super bosses and me, right? Okay, so on this occasion, what's the agenda for Startnet? As I was saying, today we're going to be looking at Bitcoin, Ethereum, SNET, and L2.

Then in the next session, these two sessions are quite dense, one and two, uh, Cairo language, Smart Contracts and well, and this F testing with found. And the next session, the third one, is with scaffold, which is like a kind of grouper that encompasses nexts Foundry and Har for, well, in the case of Solidity, sorry, and Fund for Starner, right? So, that would be the front end in the end. Uh, what else? Uh, Starnet has a bootcamp called basecamp.

In the slides, for those who are interested, the baseecamp is launched periodically. I think the last one was a couple of months ago in English. It's also being done in Spanish, so if you want to join the slides that will be shared, there's a Discord server so you can stay tuned, as well as the channel and some other courses, right? And this is like the Starnet journey route for learning and development. Uh, what else?

Okay, let's begin now with the introduction to Bitcoin and Ethereum. What is Bitcoin, or how did it begin? Some, well, many of you will remember that in 2008 we suffered an economic crisis, basically due to issues with banks, especially those in the United States. And Europe, which overspent on loans, well, they gave loans upon loans upon loans, and that generated a bubble that burst in 2008. Uh, Bitcoin is practically born from the first block of Bitcoin; the following phrase is recorded in the first block of Bitcoin , right?

The Times, uh, the Times newspaper published an article in which the chancellor, uh, basically, I understand it's in England, forgive me if I'm mistaken, I understand that what he did was say, listen, gentlemen, come on, we're about to launch the next bank bailout, aren't we? What is launching a rescue? to use a country's taxpayers' money to save a company. That's basically it. So, to impoverish the country a little so that the economy doesn't fall apart.

So, that title was the first one, it was part of the Genesis block of the Bitcoin blockchain, sorry, obviously created by Satos Nakamoto. The paper was released in 2008, if I'm not mistaken, and then Satoshi magically disappeared in April 2011. Uh, in the official documentation, uh, they mention 22,000 bitcoins as Satoshi's net worth, but it's also said—or well, I've seen other sources that mention—that it's one million bitcoins, which would be around 115,000, until a few hours ago, 115 billion dollars. Yes. Billions in English, right?

So, what is Bitcoin trying to solve ? In fact, the currency devaluation, right? Uh, money, physical money, you know, like soles, dollars, uh, it's called fiat money, trust, basically, right? Initially, for example, the dollar, the sol, even the old sol, had their value based on gold. In theory, the dollar still bases its value on gold, although they continue to print banknotes, as we will see later.

So no , the value of the reserves is not equivalent to the current value of the dollar. And if you notice, lately, thanks to some good policies and a bit of luck, the sol has been appreciating, but normally Fillet coins will devalue over time as more and more are printed. The fact that you print more money doesn't mean you have more money, but rather that money isn't worth more; it means that since you have more money, you are able to bet more money on something that was previously worth less. So that causes money, instead of increasing in value, to decrease. So the fact of printing and printing more money causes it to devalue.

That's what I was telling you. Uh, in 2010 we had 8 trillion or 8 trillion 8000 million dollars printed, sorry, trillions. Here it is. Yes, that's why there were 8 trillion prisoners and by 2024 we had close to 22 trillion. So yes, it has been evaluated, the dollar has lost value.

And many other currencies too, right? And with the dollar, all our currencies, right? Although the sol remains relatively stable against the dollar, and for the better, the purchasing power of the sol has also decreased, which implies inflation. What is Bitcoin's monetary policy ? Bitcoin has a policy that up to 21 million Bitcoins will be printed.

What advantages does this bring? That Bitcoin is not inflationary, but deflationary. And that has been seen over the years. A few days ago it reached its historical value of 125000-126000 per Bitcoin. So it is becoming quite, quite, quite valued more and more, isn't it?

Uh, currently this amount is 3.125, which is the reward given to miners for mining. Right now we're at 3,125, which is quite a lot, isn't it? There are about 350,000 of them. So, every 4 years we have reduced that amount, that rigor that is given to the prize that is given to the miners, by half.

That ensures that over time we will be able to print, mine, or rather, print the 21 million bitcoins that we had planned for, right? And well, the next Halvin is going to be in 3 years, right? Around April 2028. Anyway, this is what I was saying, the amount of bitcoins in circulation will increase over time, and in a few years we'll have 21 million, a little less than 22 million, right? e of supply.

Nothing, um, how is this managed? What I was telling you, right? Uh, a miner says, how do we ensure that the transactions recorded on the Bitcoin blockchain are correct, or how do we ensure that we are not being lied to? Well, someone says, someone solves, it's normal for it to take a while. It is a challenge, let's say, calculating a number, obviously it is something more complex.

And someone says, "I've solved it, show the value. This value is validated. It's easy to validate, it's difficult to calculate, but easy to validate." And someone solves it, they get their 3,125 bitcoins, and 10 more minutes pass, the next block is generated with a new solution, and someone magically says in a minute, "I've solved the problem." When it's validated, we say , "Hey, you know what?"

The hashes don't add up, they do n't match up for me. Hey, are you lying? We're not going to give you anything. What is not generated with the solution given by this person is generated with the one that was the next one that was validated correctly, right? It's more of the same.

So, that's basically it, right? What is proof of work? what we were talking about a little while ago . Uh, hm, here, uh, to mint, to generate the next block, a challenge is proposed, a calculation, uh, let's say something like I'm playing around thinking of a number, hey, it's this much, it's not that much, it's not that much, yes, take your bicons, right? What was it like before and what is it like now?

Previously, people were basically talking about Rax on Raspberry P. Raspberry P is a very basic computer. So, they would build their Blackberry P towers and start mining, running their algorithms, and it's a specific program, uh, deleted, right? Of course, Bitcoin wasn't worth that much. As the value increased, there were even countries, if I'm not mistaken, El Salvador has its mining data centers.

Then it is much more complicated. It consumes a lot of energy. Uh, I think it's here. It consumes around 0.55% of global energy, like Argentina or if I'm not mistaken, this is Switzerland.

Yes, Switzerland. So, how does Bitcoin store the information or how does it know how much we have? No, basically Bitcoin was created to keep track of the money we have, electronic money. Uh, it uses something called UTXO, which is basically what you haven't used up, right? So, I don't know, because Daniel has 10 bitcoins and Jerónimo has 7.

5. They can be distributed among themselves. I think there's one more slide. Uh, I want to send Maria a Bitcoin. I don't know.

So, apart from the fact that I no longer have 10, but nine, I have to pay this 8.5 8.9, right? Less, let's say it's not 8, it's not 0.1, it wouldn't be too much, but that's the idea, right?

Then the UTXO database saves the information about how much bitcoin we have left. Sorry, but this isn't going to be possible. Uh, what else? What other technology do we need? Blockchain is a combination of technologies; it's not a single technology, right?

Uh, we have the topic of cryptographic curves based on public and private keys. Basically, our public key is based on our private key. It's easy to get our private key based on our public key , but it's almost impossible for modern computers to find our private key based on our public key. Almost impossible for current computers, virtually impossible, but not impossible for quantum computers, which already implies a problem within a few years. Uh, I think we can do this.

Ah, okay. So, combining these slides where you hear, I 'm sending money to someone, I'm sending a Bitcoin, which is quite a lot of money to another person, how do I make sure it's actually me with the key? I sign my transaction with my private key. This generates a small section in the transaction in which it is shown that I have signed, that I am the one who signed. How is the protocol verified?

Verify with the public key, with my public key. He says, "Ah, yes, okay. Yes, this person signed it, yes, Demil signed it in this case." Then I will proceed with the transaction. I launch the challenge, it is generated and mined, the miners obtain the hash which is the solution to the challenge and the transaction is recorded on the blockchain.

So you see how the whole story is linked together, right? What I was saying, right? So now a part, I don't know if it's here, but a part of my block, of my next block is the hash of the previous block. So, what does that allow? It allows the story to settle down and settle down better, doesn't it?

So it 's much more expensive to change the history of what happened, I do n't know, a month ago than what happened a day ago or an hour ago, because we would have to change the entire history and all the hashes, and we would need to have 50% plus 1 of all the mining computers that are part of the Bitcoin network, one of the Bitcoin nodes, to be able to trick the system. So, we would have to be one with a pretty large energy capacity, which I don't think any other country, except maybe the United States or China, has, and even then, we would have to have a computing capacity that perhaps only I have. And these are the Merkel trees that I mentioned a moment ago, in which a small piece of the information hash travels upwards and allows us to identify which transactions are part of our blockchain instead of having the entire block, right? or all blocks. Uh, I think we've seen this before.

They told us about nothing, let's go to Ethereum now. Uh, excuse me now. Hey, who is Vitalic Buteren? Well, the people at TH Lima know this name better than we do. He is the founder of Etrium, the creator of Etherium.

Uh, what was he doing? I understand that, well, he co-founded Bitcoin Magazine and realized that Bitcoin, while very good at storing information about how much money we had, lacked, and by design lacked, the computational capacity to execute operations, right? It wasn't basically a programmed one, was it? And to turn Bitcoin into a global computer if it had needed a hardfk, we just have it here. Then Ethereum was founded, as I mentioned, a programmable computer with high-level languages ​​to be able to execute any operation that users needed, and with that it gave rise to a whole computational revolution.

Thanks to, obviously, the fundamentals of blockchain and the security it provides, right? Uh, yeah, well, you ride to pay. Uh, obviously this meant that it was necessary to pay for that calculation. That payment is called gas. Uh, and it depends on the traffic, the number of transactions, and the complexity of the transactions being executed, right?

We'll look at it a little later. Okay, let's go into a little more detail. What is halting? Uh, a complete programming language is one that allows you to execute relatively complex operations, including loops, right? Loops, complexes, loops.

And that's precisely the problem with holdting: programmers know that we risk running an infinite loop, right? That can be easy for a computer . Hey, you know what? I'll restart it as a last resort, right? If it's a task like the old ones, or if it's, let's say, a Windows, you right-click, finish, and the problem is solved, but it's not as easy as a global computer where all the nodes get locked up, right?

Nothing, another issue is the gas issue, as I mentioned, it's the cost of operations. Um, we also have the idea that the user or whoever programs their smart contracts will be able to say, "Hey, how much gas am I allowed to use?" And if the gas I've consumed is going to be greater, my operation simply won't be carried out, that will be aborted. No, this helps prevent infinite loops, for example, or malicious loops that generate denial of service attacks, which leave these infinite loops. Because?

Because it would be very, very expensive in terms of gas, right? Uh, unlike blockchain, Bitcoin since last year, sorry, Ethereum since last year, which was the name of the update. Hey, since last year he's been working with proof of stake. What is the consensus mechanism by which the Ethereum blockchain validates transactions? which is basically not so much brute force anymore, but hey, I risk my capital by saying, foundation, uh, foundation, I can risk part or all of the capital that I have put up as a guarantee that what I am saying is true, right?

It's more difficult, and this is the annual return of no. What else? So, in summary, the Bitcoin blockchain works with the proof-of-work consensus mechanism, Ethereum with proof-of-stake, Bitcoin is not programmable, obviously with other layers, yes. Ethereum is indeed native to it and is in fact much more efficient in terms of time thanks to its consensus mechanism among other things, right? We're going to be on L2 now, we 're in good weather, climbing Eterum.

At first everything was rosy, as is the case with everything in this life. Transactions came and went, but in 2017 Cryptoquitis appeared and ended up consuming 15% of Tegil's nodes, right? From the power of Tegil. Uh, this leads to a bidding war for the blockspace, taking the price to gas, well, to having up to 3 per transaction, and then with the NFT boom, it reached up to $100 per transaction. Um, I remember a person, a founder, who was talking about how at that time we created an initial solution for remittances related to Venezuela, I think that was one of their markets.

So the gas was more expensive than the shipment itself, wasn't it? So, nothing, but the idea was there and in fact Western Union has now implemented or is implementing this for its remittances. So, there were two possibilities for scaling, or rather, scaling a blockchain, right? With much more powerful nodes, which means concentrating the power a bit . So, like Solaro, Solana is a very interesting blockchain with its good points and its bad points too, huh?

But that's not basically working with more powerful nodes, but that does mean there are fewer nodes, right? At a higher cost per node, obviously not everyone will be able to invest. So yes, the power to be able to concentrate and work at a layered level, right? The other way to improve efficiency is to work at the layer level. I saw some questions on the forum, why are there so many layers?

partly because there are so many layers, right? Well, like everything else in the world, if something is good or promising, like blockchain, it's already generating quite a few profits worldwide. It's especially advanced in Asia, Europe, and the United States. Latin America is a little slower, but there are some very interesting cases in Argentina, or in Uruguay. I think there's an interesting one in agriculture that you should review , because there's a lot of it.

Basically because there are people, there are teams who come up with ideas on how to solve these problems, right? Árbitrom is one, optimism is another, and starnet is another, right? Arbitrum and Optimism are fully EVM and BM compatible. Tarnet is compatible, but it also works with Cairo, with the Cairo Virtual Machine through the Cairo Vol machine. So, what are the advantages?

As I was saying, high performance, high performance, the security of Ethereum, and yes, well, it does centralize the power a bit more, right? What else? Blockspace versus Blogspace. Blockspace is the classic, old-fashioned one from Ethereum, where historical information is kept ; it's permanent. The Space blog is used to validate information and has a lifespan of 30 days.

That does n't mean our transactions aren't permanent; they are permanent on the blockchain. But for validation purposes, we have the block space with all the necessary information, with a proper time of 30 bits, right? We have a maximum number of nu per block and a bandwidth of 100 kbit per second, which is quite low. What types of roll-ups do we have? Rollup, what is a rollup?

It's basically about grouping a block of transactions so you don't have to validate them one by one or small blocks by small blocks, but rather large blocks, and thereby achieve greater speed, right? That large block of transactions then travels to layer one, which in our case is Ethereum, and is validated. And then for the Optimist Rollaps case, it takes a week. Because? Because the validators have been given a chance— excuse me, the validators are given a chance— to say, "Hey, you know what?

This test isn't correct, it 's wrong. It's malicious, right?" So, basically, that's why, in the case of CAS Rollaps, we have a validity proof, which is simpler, smaller; it 's a tiny test. Obviously, obtaining that proof requires heavy computing power , which is what we mentioned here in the cons, but validating it again is quite simple. When we were doing some tests, the computational power to generate the proof was quite demanding on our processors, but validating it was quite lightweight.

Well, as I already mentioned, the block space and the block space, right? In our case, for Optimistic Rollaps, which is the case of Optimism, the block space is more detailed, it's more extensive, and as in Seer Rollaps, in the case of... Starknit, it's small, it's the test, uh, it 's quite limited, right? It looks like someone has scratched it. And they can erase it.

Um, I don't know how to erase it. Okay, thanks. Never mind, let's move on to verifiable computing. Um, what's happening? Um, what I was saying, right?

Um, let's say we have an algorithm that we've created, a super algorithm that's going to solve a problem, but this algorithm is too powerful for the computers we have. I don't know, we're in Peru and we need in our country, let's say, uh, what competition do we have? Chile in the case of pisco, right? Well, it's not competition, but let's say , excuse me, Chilean friends, if there is anything, we create an algorithm, a super algorithm, and let's say the United States, Chile, and China have this supercomputer. Um, what happens?

What happens if I give my algorithm to China or run my algorithm on the Chinese computer just like that ? How can we know that they aren't spying on us? Well, because of that On one hand, yes, they're going to be spying, but second, how do we know they didn't alter the results of our algorithm? The short answer is that we don't know. We won't see if we just run it; we have no way of knowing.

However, if we run our algorithm on that computer, and that computer also gives us a small hash, proof that we can validate with any of our computers, that proof demonstrates that the result it gave us hasn't been altered. Then we can trust the result without them needing to reveal the information they used to obtain that proof. And we don't have to exchange any trusted information, right? That's basically why we call it trustless, right? Features of Cairo, excuse me.

As I was saying, it allows for verifiable comparison. So, how does that help? Well, it runs on Cairo Virtual Machine, CDM. Why is it so efficient? One, because it's built on Rust , a similar ownership model.

Cairo is strongly typed, which is a feature of RAS— sorry, it's inspired by RAS, not built in RAS. Cairo is a programming language created specifically for Starnet, by Starnet, and it's quite similar to RAS in terms of syntax and efficiency. It's strongly typed with trades and hands, which we'll see in the following lessons. What else? You don't need to know about CK.

CK is really quite complex and a whole world in itself. The advantage of Starnet and its rollups is that we don't need to know about it. Starnet does it for us. So , what else? What's the philosophy?

In a normal blockchain or Ethereum, validators have to keep generating new code to verify, or they would have to keep verifying the information. For Starnet, validation happens once, the test is performed, and the validators only execute something small. As I was saying, this makes our generation time a little longer. Obviously, we actually work with Starnet, and this slightly longer generation time obviously requires more computing power, but it doesn't need a trusted setup, it doesn't require us to exchange sensitive information, so nobody will be able to keep this information, and nobody will be able to falsify the generated information. Starnet, well, Starnet is from Qu Computing, secure.

So we have that advantage. We have compatibility with IBM, ZK IBM, and on the other hand, we have Kon's performance. So we don't have that double advantage in the case of Kon. Until a few months ago, it was said that Starnet would work up to 5 hours. Soon we'll reach half a second, right?

Let me check my notes. That's just a preliminary confirmation, but we're going from a week in the Optimisticaps to approximately 5 hours currently, and very soon, in a few months, to half a second, right? That's accelerating more and more. Starnet's speed versus TB's 6 minutes. Obviously, these 5 hours represent far more transactions than we have on Ethereum, which is why we need to validate it.

Well, almost 1000 transactions per second on Mainnet currently. Here are the links for those who want to see it. What else? The cost per transaction is very, very cheap. We're talking about not even cents of a dollar at peak times.

So , here's where you can verify it. There are already 1.5 trillion transactions on Mainnet, in transactions, sorry. So, in summary, why Starnet? Why Starnet?

Because it's technology optimized for CI. Much lower gas usage. This isn't just the future; it's the present, and there are already solutions. Starnet, let's say, 4 years. Well, you get more efficient user operations, more efficient DeFi.

I think it was a course we took a while ago when we were working on Ethereum with Solidity. Yes, there were a lot of validations, right? And back again, hey, do you test this transaction? Yes. Do you approve this other transaction?

Yes. Do you approve this other transaction? Yes. So, one of the comments from a colleague was, "Do you know I'm already broke before I even start using this?" No, uh, it 's that feeling, more than the fact that you'll actually go broke or not, but the user experience.

Yes, it's quite inconvenient to be approving and approving and approving, validating my wallet all the time, isn't it? With my wallet, and even more so if you have two-factor authentication with your cold wallet. Oh, for those who didn't know, we can work in parallel with a cold wallet and a software wallet, which is much more secure and useful. Uh, well, that's what this topic of user operations is all about. Uh, in general, uh, we can group operations into one with StartNet, uh, and with Account Abstraction, uh, and That block of transactions that we used to approve one by one, we now approve all at once, and it goes back and forth, making it much more transparent for the user.

I do n't know, for example, Aunt Rosita, who barely uses her cell phone except for the family WhatsApp group and sometimes accidentally sends things meant for another group or, I don't know, for Aunt Carmen, well, she won't be suffering so much anymore, right? With this. The idea is to improve the user experience interface , right? If we have time. Um, what is a smart wallet?

As I was saying, it serves as our... in our smart wallet, for example, MetaMask allows us to approve and sign the transactions we make, the transfers, I do n't know, any of the transactions I was talking about , right? From the example I mentioned a moment ago. Um, in the case of Starnet's Smart Wallets , we have Brows, for example, which allows us to execute multiple transactions in a single execution. For STNET, there aren't any...

Externally, accounts, I don't know. The wallet itself points to a smart contract, which is essentially our wallet , right? Because Ethereum has an abstraction here, it's not native. Well, it will be, or already is, but by design, we already have it here in Starnet , right? As I was saying, our wallets point to our accounts, which are contracts in fact.

These are some of the wallets I use, and Bravos Ready, which were Argen and Exever Ex, sorry. So, as I was saying, it's not a single transaction, it's several transactions in a block that we can work with, which improves the user experience, especially when we have payments, which we're quite sensitive to. It's much easier to approve a single transaction than to be approving them one by one , right? Nothing more, more of the same. The signer has their own device; we separate the device we use to sign from the account itself, which is the contract, right?

Our account is... The one that verifies the signatures, the one that executes the multi-cols, the multiple calls we mentioned, right? And our signature is in the signer, right? In the wallet. As I was saying, we have the signer, which is our wallet, our account that has to implement some methods, including execute validates, validate signature, and the contract for this, right?

Basically, that's how wallets communicate with contracts, right? Through our account contract. What else? What other things can we talk about regarding security? Ah, a transaction might require, or rather, a multi-site account or wallet.

There are specific multi-site wallets. What is a multi-site wallet? It's one where several people have to sign the transactions with their wallets, right? Which is more secure. For example, if you have a company, the closest thing would be a shared account, right?

In which, I don't know, well, the general manager has one signature, the accountant has another, I don't know, what advantages we have for Starnet in all of this. Um, recovery. Social media is no longer like Aunt Rosita needs to be retrieving or remembering 12 words. Well, I don't even know how many words it is now in Metamask. Um, I think they're doing it with social networks now too, it seems to me.

Um, we have social networks, we can sign in with our Face ID, so it's much more user-friendly. The problem with Web 3 is precisely that, right? Um, going to the business side of things, what would prevent the adoption of Web 3? Um, it's a question I asked a CEO of a British startup, who was also my professor. Um, without hesitation he told me it was the user experience, right?

If it's too difficult to adopt, very few people will do it. Um, a professor in the master's program mentioned a case here in Peru where they solved something, well, it was a basic solution where the ranchers, I think they were, had their public key, sorry, their wallet address in a QR code. They had it like When we have these tabs, I don't know what to call them, uh, from the Starne events of Etrium Lima, I do n't know, they had it hanging. So, to make transactions, they would scan that with their cell phone, which, well, if they have the public key there's no problem, but they lose it and then you can't anymore. So, well, it's a user interface issue , a user experience issue that we need to keep making easier, right?

Uh, well, what technologies are we taking advantage of now? Uh, I don't know, the giants, uh, Apple, Google, Samsung, I don't know why they hate Microsoft so much, but they're also involved in this. A RM a dual scheme, right? A shared system in which, of course, there are things that do travel across the network, let's say, and are easier to access. And there are other parts called a secure enclave , which is a much more secure part that you can only access again with the ID, I don't know, with the digital ID.

Uh, and it's specific hardware for generating random numbers, well, random. Uh, what I was telling you about doesn't work, right? The touch nothing, what does a Smart Wallet allow us to do ? Uh, improve the user experience, especially on Starnet, the multicols I mentioned, native account abstraction , it decouples the signer from the W. Uh, transactions, signatures with different uh smart contracts, uh, with a more specific interface, and we don't have external wallets, right?

That are not accounts, right? We 'll skip this, excuse me, but we have quite a few. Maybe I 'll make a video about this to show you how to create your Bravos wallet. Yes, we need a specific wallet for Starnet because it works with the Koval Machine and all that. Uh, it's quite simple, quite user -friendly, so I'll show you, I'll show you in a separate video, right?

What's so great about Starnet? That it's going to be the The first L2 that's going to become a rollup, a CK rollup, besides how secure this is, and the sheer volume of information it's going to handle, it's also going to cover not only Ethereum but Bitcoin. With this, by extracting information from the internet, we cover roughly 66%, two- thirds of the TBL of the total locked value, the total value locked in cryptocurrencies. So we have the two largest blockchains, we're going to be able to work with them, which would accelerate Bitcoin, Bitcoin transactions would accelerate as much as with the Lightning Network, but we can also connect with Ethereum, which unlocks new power for Bitcoin. As for Defi, let's say, if we want to move information or money between Bitcoin and Ethereum, we're going to be able to do it.

In fact, it's already possible, but with Ethereum it's very efficient, very user-friendly. It 's a pretty interesting future, is n't it? So, we can work with both. Blockchains, even though they work with one using proof-of-work consensus and the other proof-of- stake, right? Uh, what I was saying, right?

Bitcoin Finance, that is, finance in Bitcoin. BFIL, in fact, decentralized finance where we no longer have a bank processing the transaction, thus eliminating the intermediary and the associated fees. Instead, we only pay for the cost of the operation, right? And recording it on the blockchain. So, obviously, we pay the bank that amount plus its commission, right?

It's a bit more. Uh, what else? The most efficient DeFi, as I was saying. Uh, okay. That's it.

Uh, here's a little bit about the approaches to how Bitcoin is doing this. Bitm, which is the approach with Snark, which I mentioned before, is a fairly efficient software-free approach. Let's see how it's doing. Collider VM, which is proof-of-stake, is the one we're betting on. We, basically.

OPCAT is another approach, the same, right? But this one does require software that is basically low- level code. Quite efficient and that allows, in our case OPCAT, uh, allows running Stark tests, uh, as one of the cases in the US, uh, works with Bitcoin Script and well, all this information, right? Excuse me for running ahead, but I want to get to your questions because we're already on the... No, no, I think we have pretty good...

Over here they're asking us if in this case it would be a wrapped Bitcoin or a Bitcoin wrapped in the Starnet network, that is, it's an RC20. Jim Fit is asking. Uh, yes, it would be a RAM. Yes, it looks like a rock. I understand that it looks like a rock, uh, but obviously it's something that gets burned when going to the cross-chain, right?

Yes. Okay, thanks. If you want... Okay. Nothing, this is for those who want to get into it, it's quite a bit more complex than what I've tried to explain.

To summarize. Yes, there's quite a bit of math behind all this, and quite a few operations that we try to simplify for the end user, right? Um, what are the risks? I don't know, there's technological complexity. Like I was saying, it's much more involved than Starnet makes it seem.

Um, there's a slightly steep learning curve initially, but it's totally worth it. Um, I think that's it, I didn't say it quickly enough. Um, sorry I didn't prepare the demo for you, I thought I didn't have much time, and I'm seeing that we do have quite a bit left, so let's take advantage of it for questions. Yes. So, if you have any questions or concerns, you can raise your hand now, you can also ask your questions in the chat, or you can turn on your microphone without any problem.

Javier, hello, hello, hello, hello Javier, hello. We can hear you. Thank you for the presentation. I have a question. You mentioned that the Stark technology has resistance to quantum attacks.

Why is that? What's happening? Um, I mean, if I get into all the math involved... Ah, no, no. Otherwise, what is CK?

CK, the math behind CK to say, "Hey, uh, the example I usually give is you have to get your driver's license, right?" And your driver's license, your driver's license has requirements. For example, I don't know if in Peru it meant being of legal age or over 16 years old. Um, if a person for some reason does not want to reveal their age, among other requirements, uh, or for a job, I don't know, there are specific reasons when someone has an illness or has had an illness that they no longer have, but has had an illness that is embarrassing, in quotes, uh, they are not legally obliged, they are not obliged to tell the company, not the company for which they are going to work. Obviously there are ethical issues where if he had the disease, he no longer has it and is not going to infect others, perfect.

If you have it and it's contagious, obviously you 're obligated to disclose it, but for example, for a job, giving that information isn't mandatory, but it is a requirement to say, "Hey, yes, I had it, for example, right? Or it's in your medical history, check, I had it, among other things. Hey, do you have any debts with the bank to work at a bank, an institute, an insurance company? I used to work at Rimac and Interbank. I think they asked me if I had debts, I don't remember if it was with Interbank, I suppose so.

This other check, right? I mean, do I have debts or not, I mean, am I in arrears, or rather, right? The math of CK is such that I don't need to disclose all those checks to say I meet the requirements. I don't need an intermediary either. So, how do we do that?

With math. One mechanism is to distribute that information among different people, take parts of that information, and calculate a small part. Each one They calculate a small part. Then, the sum of that information gives me a result that is ultimately a zero or a one; I don't meet the requirement. But behind that is all the mathematics I was telling you about, which, since you can't guess the rest of the information—and that's one of the mechanisms—you can't guess the rest of the information that I sent to Pepito to do the calculation.

That implies that even if you have a quantum computer that has the information, one of the pieces of my information, that doesn't mean you know the final result, right? And that doesn't mean you can obtain all the initial information from the final result . I don't know if that's clear. That's it, and as I said, that's one of the mechanisms I remember, right? Well, thank you very much for your question, Eduardo.

Uh, Raquel, give me a moment, I'm going to read two questions that were in the chat earlier and then I'll get back to you, okay? Uh, this way Fiorela asks, "When implementing these UX methods, isn't security put at risk?" Fiorela Javier asks, "Let's see, in the case of multi-accounts, right? Because , I mean, it's the same thing; it ensures that it's you who made the calls, but obviously, since the contract is like the account, it's already a contract, it's programmed in such a way that, hey, you've already signed it, I execute all the operations and continue. The problem with the old operations and the old tickets was that, for example, you had, 'Hey, I first need to approve that the provider can charge me for transaction.'

That's first, and then I need to approve that they charge me, so to speak . So that's kind of nonsensical, or excuse me, not nonsensical, but it's part of the evolution. That's something we need to avoid. So, everything we can make easier, without obviously risking the security of the transaction." Welcome.

Obviously, there are times when we have to think about design before security design before user experience, and that's why it's taken so long to get to this point, right? Several years, right? It's definitely taken time, but the UX has improved quite a bit . Um, Javier, here's another question from Jim before we move on to Ril's. He says, uh, Arbitrum uses Rollaps for optimization, but it has a strong track record as a precedent, like K2 on Ethereum and in Deffy projects.

However, it's slower. Starnet, you just mentioned, has speed in its transactions because its zero-knowledge Rollaps validation method is mathematical, and other aspects you mentioned. This means it's a futuristic blockchain and could scale much more than Arbitrage. Look, I'm not going to tell you there, I mean, I like both, I ca n't say yes or no. You have to try them, you have to get involved and work on them.

Yes, I would say it has a big advantage. I do n't know if Arbitrum is Right now we're working on integrating Bitcoin. But yes, I mean, it's a very, very interesting step that Starknet is taking, and yes, in terms of volume, it's huge, right? So, let's experience that. What a question they sent you, Javier!

I mean, literally between a rock and a hard place. I'll make a small aside. I'm sure Javier already mentioned this . But, getting into this Arbitrum Starnet challenge, I'd like to tell you that between October 24th and 26th we have a hackathon in Lima, and right there Javier said, "No, the best thing is for you to work on them and test them." So, taking advantage of these sessions, ideally you can—to avoid redundancy—take advantage of having Javier with us.

In fact, today he's giving us the theoretical part, but the next session he'll give us all the technical, practical, and more in- depth development aspects. So, come with all your questions for the next sessions. Sometimes to be able to go to development, right? And well, the purpose of the Hackathon, obviously there are cash prizes for tracks from Starnet, from Arbitrum, and Scroll is also joining us. So, well, now that I've brought Cherry into it, let's move on to Raquel's question.

Uh, yes. Uh, how are you? Hello, Javier. Um, a question came up for me regarding the operations that involve access through social networks on Web 2.0, and I became curious, right?

, about how the issue of security begins, right? Because of the very nature of Web 2.0. You mentioned that it's through Instagram or other networks to make it much more accessible and reach people who aren't yet involved in these emerging, disruptive technologies, but that it's good that it's more widespread, right? More than anything because of the democratization of what Web 3 is.

But my question is, how is the issue of vulnerability with data security going? Right? For the same reason it's on Web 2.0. That was my question.

Thank you. Sorry, I'm alarming you. What I was saying is that I understand, I haven't seen Metamask lately for this whole identification thing. I understand that now they're using social networks, sorry if I 'm lying, but that's precisely where we have the security problem, right? For example, I don't know of any bank, either there or here, that uses Instagram or Google to authenticate and to access your accounts, right?

There's a very high risk, isn't there? I have people getting hacked on Facebook all the time, right? So, Stagnet, Bravos, for example, uses Face ID, which is much less risky, right? But even so , if you search, I 'll share a page that talks about vulnerabilities and incidents, for example, a few years ago in Solana, there was a breach at Warm Hall, I think it's a protocol for With these Deffi systems, there was a really bad security problem. One of the biggest I remember, and last year, and this year there was another one with Warfhall.

So Warfhall are super cool, super good, but even they have issues, right? Regarding security, I'd say, first of all, Warfhall. The problem a few years ago—I haven't seen this year's, to be honest—but the one a few years ago was a mistake by the programmer or programmers and the testers. Why? Because they didn't properly declare the accounts; they made public some accounts that shouldn't have been public according to the contract.

So, sorry, they were n't validating that the accounts being used to log in were the specific accounts. So, it was basically a design flaw in the program and a failure to follow best practices. Warfhall is in Solana, that is, made in Rust, right? It's secure, super typed, super robust, but the problem wasn't even the technology used, it wasn't the It wasn't the programming language, but the practice and the design—I don't know if it was the design itself, but the execution was flawed, right? So we really need to keep that in mind for DeFi protocols.

There's a guy— for me, he's a real expert—named Pachoman, I think he exists in the former forum, who talked about how you have to be in good standing, especially DeFi protocols. You have to be in good standing with the SEC, which is the US institution that verifies all this money movement stuff, right? So yes, testing is becoming increasingly important. Vulnerability verification is super important, and I think engineers who work on that are more than safe. AI isn't quite there yet; it hasn't reached that level, nor will it for some time.

I do n't know if that answered your question or just broadened your understanding, but no. Yes, it's good. I mean, it opens up many more perspectives, and it's up to each interested person to expand on what you 're giving us , right? Okay, thank you very much, and I would really appreciate it if you could share what you mentioned so we can continue our research. Thank you.

Uh, yes, you nailed it, I didn't know how to say it, you said it. So, it basically depends on us. Yes, the protocols, the languages, the blockchains will give us all the tools we need. What we shouldn't skimp on is security. Thank you, right?

Thank you all as well. Thank you, Javier. Thank you all for your questions . Question. Is there anyone else who has doubts or questions?

Ah, okay. That question, Leandro, forgive us, uh, as we said at the beginning of the bootcamp, uh, Ethere Lima has no interest in recommending options for financing or buying or selling cryptocurrencies. So, for now, we'll leave that topic there. Uh, if there are any other questions, we're happy to answer them and take advantage of having Javier here, who's a pro. Now, oh, excuse me.

Now You mentioned buying and selling, and one example I wanted to give you is how easy it is to transfer money from one country to another. I won't tell you who or how, but it's very easy. And well, you just have to be careful with your wallet when transferring money from one country to another, and it does n't cost nearly as much as a Swift transfer or Western Union; the difference is quite significant. So, what does this allow? It helps emerging countries receive much more substantial remittances, with the percentages being significantly reduced by the companies that provide this service, right?

Yes, in fact, Javier Acutando, as you mentioned, many of these smart services allow you to directly convert local currency from a credit card—whether it's Peruvian soles or pesos, or whatever your country's currency is—to USDC or USDT. You can buy directly and send it through a network, right? Some networks are cheaper than others. And I'm a first-rate user. Man, what I can tell you, going back to the topic we discussed today about Smart Wallets, is that, for example, if I get paid in crypto or if I have soles, and I don't know, last year for Depo I traveled to Thailand, then I was in Spain, then I was in Paris, and so on.

I mean, everywhere I went, my crypto was secure in at least one of these smart wallets I used, and I could exchange it automatically. And when I went to the ATM, which many rely on cards like Visa or similar, it makes it much safer, and you can be anywhere in the world without necessarily carrying physical cash, right? So, all this, well, thanks to crypto, and as you say, Javier, if I had had dollars as such, as we all know them here, the exchange rate within a country to get them out would probably have been very expensive. But with wallets, the exchange rate is quite cheap because you exchange dollars for USDC or USDT. So yes, it 's definitely a great option.

M J Here it tells us, "Now it's very easy, especially with exchanges that use P2P and now with the ISO 22 regulation, where Swift is changing to this standard much more. Mm. Yes, yes, exactly. Do you have any other questions ? Taking advantage of the fact that we still have Javier.

Uh, please, the resource that Javier mentioned, please. Ah, I see. Yes, the one from Yes, Javier, they are waiting for you there with the resource. Yes, I also wanted to ask you something, Javier. For the next session, everyone will need to have created a wallet.

Hey, you mentioned one this Bravo. So, I would suggest to them, Bravos, uh, I'm going to try to find out how to create other wallets and I'm going to make one for Bravos, right? A video, okay? Okay, well, then you share it there. Just so everyone knows, the official channel where we're running the bootcamp, where you can ask questions, find resources, and even access the videos of these recordings, is through Discord, right?

I'm sharing it here via chat. And well, to close this session, I'd like to thank Javier Montes for joining us today with a very interesting explanation of basic concepts of Bitcoin, Ethereum, and also the Starnc ecosystem, as well as Layers. So, that's what we had prepared for today. Thank you all for joining this third session. of the second day of the bootcamp.

Remember that we still have two more dates to go. One of them is next week, on the 18th, where we will start talking about Stylus, Smart Contrast and Testing from the referee's side . We'll then talk about UX, how to create intuitive processes in applications or platforms within the Web 3 ecosystem. And then we'll finish with Starnet talking about Cairo Smart Contracts and Testing, as well as Deep Dive in Cairo Smart Contracts, which they will also be deploying. So, the truth is that the session coming next week is more about outlining the UX side and also the other, more technical, development side.

So, let's come prepared because it's going to be a very, very interesting and quite technical day. Finally, a reminder that we have a hackathon from October 24th to 26th . I hope everyone here can participate. We have great cash prizes and, well, in case anyone is interested in going to Depnect, which is this magnificent, huge event taking place in Argentina, which showcases the entire Ethereum ecosystem, how it has progressed, and many more projects. Hey, I'll tell you, I don't know if you've already been told this, but one of the prizes we have at the Hakaton is flights for the winning team that applies to the Hakaton.

So, the truth is a great opportunity. You can ask us anything through Discord. Yes, all the challenges, everything related to the bootcam, everything is posted on the Discord. Yes, they will be sharing everything on the Discord server for this week's challenge. And well, that would be from me.

I don't know if there are any last words you'd like to say, Javier. No, nothing. Cris, thank you, or rather, thank you for the opportunity. Excuse the small size. This one, something more.

Ah, well, about supporting you with the hackathon, guys, really take advantage of it because it's a way to move forward, and if you want to get into this, which still has a long way to go to keep growing, I would tell you, get involved, as I was saying, in Asia, in Europe, in the United States, even in Africa it's much more developed than in Latin America. So, let's take advantage of that gap we still have to get into the subject. They're doing what I'm not doing, which is networking. Get involved in everything you can because it 's a really interesting world, huh? And that's it, that's the future.

I, for example, don't go to the bank here, I don't go to the ATM, I do everything with my cell phone, including cryptocurrencies, basically. Obviously I have to work with reliable money, right? But this isn't here, well, and everywhere, this blockchain is going to be in the future. Realize that AI was born long, long ago, decades before blockchain and has only recently taken off, but with the speed at which things are going now, blockchain is going to take off very soon, right? Get inside.

Yes, exactly, Javier. And in fact, being in Laaton participating is a great opportunity, it's a great showcase because we are, I mean, representing Layer Sus, the incredible Starnet, Arbitrum, and Scroll. And on this, uh, there's a question from Fernando: can those of us from other countries participate? Yes, because HACAT has two modalities, in-person and virtual. All the details of the Haaton and other things will also be shared on Discord.

So, take advantage of these sessions now that we're getting into the techniques, and now that I'm telling you this more openly, the reason we created this bootcamp is because we want to prepare you to be an MVP at the end of this bootcamp and almost ready to go to the hackathon to win. Basically, that's the reason and our mission from Lima, and we thank all those mentors who are joining this cause, as well as Javier, as well as J accompanying us during these dates. Thank you all very much for your time and space. Javier, yes, sorry, it's just that you mention him, take advantage of him, he's a master. Nothing, Javier Nada.

Take advantage, I mean, I'll take it now, but they will too . Yes, exactly, they are all experts at building large projects and working within these blockchains and in the ecosystem for quite some time now. So, without further ado, see you later, have a good weekend and don't forget, we'll be posting the challenge on Discord and if you missed any of the morning sessions, don't worry, we'll also be posting them on YouTube. That's all, see you around. Thank you all.

See you later. Thank you.