Optimism 🛠 The Spirit of Optimism - Binayak Pande

foreign [Applause] [Music] everybody um we're gonna make this pretty fun I'm gonna give you a brief overview of optimism so like everything that we're about um where obviously we're scaling ethereum but we're not just scaling ethereum's Tech we're scaling its values as well so unfortunately I can't edit the notes on the side so it's going to be this view um but hope everyone's having a nice day so before beginning I just want to talk a little bit about enzyme structures like what are we doing here what is crypto right uh we live in a world of Perpetual personal incentives that are pretty individualistic it's passed down to us from society you know go to this college get this job do this thing retire 401K all that stuff and a lot of times these are harmful right like the environment's not doing great there's a lot of selfish motives in the world um but what crypto allows us to do very interestingly is reprogram some of these incentives that we've been taught our whole lives so there is a mysticism found in blockchains that we don't find in any other technology the superpower lies in the ability to reprogram incentive models that have been passed down um throughout Society right like so enter ethereum ethereum lets you program money money lets you program incentives and incentives lets you program novel social structures what this means is now anyone can program incentives right you don't have to be a king to make a new governance system you don't have to be chairman of the FED to make a new monetary policy you can be in the basement and do this um you don't have to be a Hollywood artist to get exposure for your artwork and get royalties and get paid well right so this also lines in with this idea of the unbundling of everything that I think we're seeing in societies currently so this is a great example of it in the form of the media right People magazine this was like the dominant thing back in the day of everyone would read People magazine this was the thing and then came the Kardashians the Kardashians like took over People magazine more people were now following this family and I was like whoa okay great and then came Tick Tock influencers it's like whoa anyone can now create content and be seen um and it's this idea of like the unbundling right like now any individual who has a mission who has like a unique thing they want to express in the world can't express in it can express it through crypto the similar thing can happen within Banks right you have like these large institutions that are doing certain things now some people who are friends in a basement can program structures that end up having billions of dollars in tvl um that people use for banking right it's like goes along the way of unbundling everything so I think we all know that like ethereum is the best city in the world right like everyone wants to be on ethereum everyone wants to go there spend time um but it can get crowded like when there's a lot of people in one spot you got traffic jams you know you get like a lot of fuss um how do we fix that enter optimism right so just like how big cities need skyscrapers and Subways to operate properly ethereum needs optimism right we are kind of providing the skyscrapers and the transport layer and everything for ethereum to scale in a way and make that City that I was mentioning here more livable but we don't just scale ethereum stuck we actually scale its values as well right like how do we do that through this thing called retroactive public goods funding so if you look at the fees that ethereum generates just today it generated five million dollars five million like that's a lot right um but where is this money going it's mainly it used to go to minors now it's going like validators Etc it's going to specific like people in a way but it's not necessarily going to the community as much as maybe we would like so with optimism this is optimism sequencer Revenue um you know just where I mean we're just starting out uh average of about thirty thousand dollars a day imagine what this can be as ethereum scales and as L2 scale for the future like this this will just continue growing up in that trajectory right this is just the beginning a hundred percent of these fees that are generated daily go back towards the community goes back towards public goods so we've pioneered this model called retroactive public goods funding where we essentially like if you want to create a public good you want to do something for free you want to create educational content for the world you can do so and know that you'll get attractively funded by optimism um one of the things is I think we live in a society that we're like if you want to do good you kind of have to be a financial martyr like you want to go help the world you're going to have to be like Oh I'm not going to get paid as much as a banker or as an NBA superstar we think that's wrong I think I think we stand a chance doing what we do in this space to reprogram that model to reprogram that incentive um and we aim to do that by removing the opportunity cost of doing things that benefit the greater good through rpgf so now who decides where these fees go right like there's all these fees are going to get bigger we're going to scale more who decides it well around I think may we had our airdrop and we started our governance Collective so the governance system which has two houses gets to decide where these public goods profit where that Network Revenue showed earlier goes essentially so who gets retroactively funded for it right this is a little meme so you know initially just like profit motive solves everything donation funding okay that helps quadratic funding a bit better retroactive public good funding like let's go right so this is a real world example of this um let's say right now like you know I I want to plant trees like that's I want to my contribution to humanity is I want to go and plant trees now I walk over I see a VC I'm like hey VC can you give me five thousand dollars to plant some trees like you know it's for the good of the world the VC looks at me in the face and laughs at me right he's like why would I do that like you're not I'm there's no return on investment for me like why why would I do that that's the pessimistic world of today the optimistic world of tomorrow and today because we've already done this um is same thing now I want five thousand dollars to plant my trees I go to a VC and I say if I do a good job with this the optimism Collective is going to retroactively fund me for this now a VC is looking at this and be like that's an interesting model like yes I'll bet on you right like every investment of venture capitalist makes for example is like an investment in a person like oh maybe they'll succeed here they have a clear sign of an outcome where if they succeed they might get attractively funded so that's a real world example of like what rpgf can become and of course it's not just limited to planting trees like everything from building infrastructure to educational content to pretty much everything that's an open source public good so you know we fund public goods through network activity so as people use optimism as you deploy an optimism or do anything on our Network it goes to feed these fees then goes as plot of retroactive funding then governance votes on where that funding goes so what's happening with the network like why would why do you why would you want to use our Network right like what what do you want to do um and what can optimism provide to you so for that um the state of Roll-Ups today so up and to the right obviously like everyone's heard of roll ups now it's it's growing a lot of folks are using roll ups right like I think we hit almost six wow six billion dollars in tvl across all l2s on ethereum so there's a lot of traction and obviously there's a lot of fees that are being generated as I explained before but you know it's cheap but maybe it's not cheap enough there'll still be some Ulta ones in the world that are like ah you know we're cheaper than you and all that um second is like there's a little more decentralization needed right with a sequencer with clients Etc and lastly like some people might ask like what else like what else can a roll-up do um except for just scaling this and making it cheaper and faster and all of that so to address the first one we do a little fee reduction so we actually live in a world where we're planning on roll up fees going to zero and we're going to achieve that through protodank shorting so it's called eip4844 and Liam who's over there and Proto Lambda and a bunch of Mophie and a bunch of people from the op Labs client team have been working on this and trying to do this for everybody because eip4844 actually benefits every single roll up out there um we we strongly believe that a rising tide lifts all boats so the AP 4844 and a quick explanation of that um which I'm going to try to do the best I don't have my notes on here so um is a toilet metaphor right so how can you think about what eip4844 is or EIP 4844 so let's say you're like in line for at a crowded festival at a like and you're going to the Ben's bathroom right the toilet only has stalls so regardless if you're like peeing or pooping um you have to use the stall right obviously a number one takes less time than number two so it's not hyper efficient for everyone to be doing using the same stall um you can solve this you can solve this problem by adding a urinal and essentially urinals are only used by people who need to pee at least I hope so um now the demand now the toilet has two separate lines you can go to right so what does this example actually mean well in this case the toilet is ethereum the toilet stalls are blocks poops or transactions p is data p in a stall is call data and urinals are blobs so and the lines are the fee market so the upgrade is eip4844 it's just essentially making it more efficient right like not having everyone go to the same line but have certain people go to lines that are more efficient for them so that was a Twitter thread written by Ray Sue if um it's pretty good at analogy there so okay and second thing we're doing so this is about multi-client architecture we are launching Bedrock soon which essentially is like a pragmatic way for us to start decentralizing um what Bedrock encompasses is theoretically optimal call data submission consensus and execution client separation a microscopic client difference only 500 lines of code faster faster peer-to-peer networking and all of this is basically intended with our idea to not just become evm equivalent which we already are but to become ethereum equivalent at the very core this also allows us to easily plug in eip4844 when it's ready which should be soon as well it also has smarter sync sequencing and state submission so Bedrock is coming out soon and if you ever want to like read up more on it we have multiple articles multiple Twitter threads that explain a bunch as always our code is always open source we build everything openly so um you can access that lastly I think this is something I'm very very stoked about is the idea of the op stack so the optimism code base has been forked multiple times um there's been a bunch of Roll-Ups that have actually like been using our code base and you know we're open source we're very much ready for that that's something that we will always be um but we realize when people forked our code base they started doing interesting things with it like they would mess around with da layers they'd add something else and it would be this like new custom solution using the original like stock that was forked so we took a long hard look at that and we're like okay like what if we make that easier like what if we make it even easier for someone to do that and then came the birth of the op stack so I think one way to think about it and this tweet kind of explains it is you can basically deploy a roll-up however you wish with fully customizable features right like you want to I don't know you want a ZK roll up that uses like Celestia for a data availability layer you can go and do that you want extra throughput you want to use another data layer you can go and do that um it's very we're making it as easy to deploy a rollup as plugging in apis in web2 so you wanted like bits and pieces you want to do Bitcoin roll up like whatever it is you can actually experiment and that's where the op stack enables you to do it's like we're fully making it very very easy to run multiple experiments on the future of Roll-Ups and whatever you want to create with that comes the idea of the super chain so let's say like you know op stock is there we have a bunch of different op chains people are building crazy sorts of Roll-Ups and now you want to connect them now you're like okay like I want all this to feed into one larger thing luckily because the way the op stack is structured because everyone's using the same stack is it's you can actually have Atomic composability so because this idea of shared sequencing where you have all these off chains they all use like the shared sequencing model you can basically connect all these options together into what we call the super chain um where this becomes interesting is basically the idea that the hardest thing right now to kind of deploy a roll up or anything in the space is you can do the tech you can deploy your own chain you can deploy and roll up but then you have to do business development right like you have to like try to get an Ave on board or you have to get like all these staffs on board and that takes a lot of time and that takes a lot of effort and a lot of times people just want to build cool stuff so you know how do you build cool stuff without having to worry about the whole like oh no like how do I do this negotiation how do I do this partnership the super chain kind of enables that because you can create this off chain however you want it's connected to all the other up chains it's connected to optimism mainnet um you want to do something that's on optimism maintenance you can make it really easy for like messages to pass through um and basically like interact with stuff that are on other chains so it literally makes you allows you to make really cool stuff that you've always wanted to do not have to worry too much about liquidity because everything's connected but that is a super chain and it's a work in progress I think when Bedrock is released this is going to be easier to actually use we do have one example of an opt-in of sorts that's already come out by the folks at lattice it was called op craft it's essentially a full voxel game that's its own blockchain and it was built on Bedrock so literally like an entire game that's it's on blockchain it could have you know if you were to hack on it you can make like an amm that's like in a cave somewhere or something so that's just like one example I think the op stack and the super chain kind of enables multiple Avenues and we kind of have released this thing um and we'll see what can get built on it but it's allowing for full composability it's allowing people to run extra environments and connecting all of them together into one larger super chain so I think this is a question that comes around a lot as well it's like what is our path to decentralization so our path larger sorry um you know 2023 we want to create a fault proof which proves L2 Bedrock blocks we also want to have a we want to work towards decentralized sequencer selection via op um then deploy bonded sequencer using single client fall proof with instant upgrade Keys sequencer auctions these are Works in progress like it's not I wouldn't say it's like hyper finalized but these are ways that we are currently might be thinking about it and then by 2024 deploy bonded sequencer using multi-client fall proof without instant upgrade keys and then we reach a world where we're a bit more decentralized and can look towards the future so to kind of summarize a few things here like what we're really aiming for is solving the blockchain trilomma and optimism is getting closer and closer towards being in that middle spot right there this is our ecosystem at this point um lots more lots more protocols being added every day and I think when we look at what I just mentioned with the op chains and the super chain at large will have a lot of different things as well um you know but like you want to bitcoin CK roll up different da layer like all of these things are possible and we're excited to see what you guys will build thank you I'm happy to take any questions right now yeah so um we did a rpgf round we did a first one and don't remember the exact list but you know solidity um Aragon etherscan is a bunch like a bunch of like public open source things that helped ethereum because like we're doing public goods to help both optimism and ethereum um yeah those are those in round one but cool yeah sorry um I can't quite speak on that right now but like yeah um currently it is a governance token that is use the power there is again like you know you have the network fees that I showed you back here um ethereum does like 5 million a day you know Roll-Ups are going to scale larger and larger the fees for our rollups are increasing pretty much every day um average of like 40K a day I think right now and the governance token basically helps allocate where this funding because all this all this fee Revenue goes in this pot of rpgf the token helps like decide where that funding goes retroactively underwear uh that's an interesting question I think are there get Queen folks here we should have a conversation yeah I'll I'll keep you in the loop but yeah that'll be awesome do you guys have any uh crazy like off chain ideas like what's like what's like the craziest thing you can think of foreign I'm gonna leave it here for a little bit just in case you know and let these questions marinate a bit um yeah anything yeah sorry yeah great great question so I think a few things um I believe Nitro might have changed this but for the long for a really long time we were we were the only ebm equivalent roll up so you know we had the ovm before um and we were like okay like let's move this a little bit let's be as equivalent to ethereum as possible so we move towards evm equivalents which for any adopt developer just makes it a lot easier to deploy on optimism it's just like literally chain ID switching um so that's one I think the other thing is also the public goods funding route where you know all of our Network reviews will go back towards our community um the bet there is if you have a community where you continuously invest in its public infrastructure you'll basically have a place that's easier to build in that just has more structure has more Bedrock foundations that can supercharge the power like the apps of the future um that that's one of the main differences I'd say let's see yeah also like one one other thing that is different is because of Bedrock that's going to basically like surcharge a lot of these differences a lot more um because we allow for multiple clients that unlocks a whole series of use cases like you can have a ZK client on Bedrock basically as well yeah um I think we'll have to see it's it's all really fresh right now does that come out yet okay I see yeah Liam's our CEO um yeah basically like what's the deal with uh ZK evm um I think I think the whole idea with like Dopey stack is that all these things are pretty plug and play um like if you want to have a ZK felt proof um whether that's with evm or whether that's with mips or risk or some other um Isa like it's kind of whatever you want there's multiple products building these things like there's the Hermes one there's Scrolls there's risk zero doing it for risk um ZK Sync has like their own kind of custom thing like all these from my standpoint eventually these are going to be like solved it might take a few years until they get like a really performant one that anyone can run but um if it's not open source I think the community will like reject it so it'll have to be open source and the whole idea that we have from our approach is like this bill focus on the Community First focusing the governance focus on the funding distribution and then plug in the the proof system later um so from our standpoint uh we're not we basically think like whichever one of these ZK approaches wins as the one that we'll we'll use and we're probably going to start like finding ones that we want to like even start funding or supporting uh to start you know competing to be one of the options that people can use for their proof system so yeah I think it's kind of it's kind of weird historically like how we've ended up in this world where there's like optimistic Roll-Ups and ZK Roll-Ups it's like this competitive thing in this L2 industry because fundamentally we're just building core infrastructure to scale ethereum and I think that it's like I think it's a mistake to kind of think of these things as competitive right now um over the long term it'll just detect not the whole point like this technology is going to commoditize and the interesting thing that can be the community on top um and what kind of Worlds you build with your own training infrastructure which by the way is very interesting why Cosmos uh you know the cosmos action thesis I think is very like worth revisiting um and I think there's probably a world where like on ethereum we start seeing way more app chains emerge so I would I'd also look into that as like if you're a hacker trying to figure out what to work on like you don't necessarily have to go into the app layer like there's still like a ton of stuff to work on lower lower down yeah I know it's always a long-winded answer um how will users get onto L2 so I think one big category is um the really obvious one which is like people that could not use ethereum that want to use ethereum but can't afford it that class of people I think they've either like just left or they went to like polygon or they maybe they went to binance Smart chain um and maybe they are using you know some application there but it's not like they're gonna like just like stay there that's like their favorite place in the world they're gonna like all the time shop around for where's the ecosystem going to the Future and so um I think that category people will likely you know once it's clear like hey there's an alternative from these like less potentialized from these um from these centralized chains to use ethereum again then I think they might begin to flock over to optimism because they see this is like a better way to still have the sense of security and centralization and ethereum Community alignment that they want and so they'll they'll maybe flock back in but you're thinking more with the technology um I think that's like again kind of all like at this point like the standard Playbook right every exchange should have a deposit and a withdrawal flow uh any on-ramp off ramp all over the world at some at this point there's all these companies they should just have an optimism integration um on our side you know there's like a whole Partnerships team just going all over the place like making sure we have all those Integrations but I think a lot of those are just like existing crypto users the more interesting thing is you know if we actually have the ability to say hey ethereum is cheap and uh it and it works the way you thought it did it's like less than a penny for anything then all of a sudden now ethereum the the product of ethereum which is what we're trying to effectively scale with optimism uh we'll be in the next next bull market particularly will be like super cheap and so any of those people that like went to ethereum and churned they can actually now like actually stick around and so it it could just be the net new audiences that come in the next bull market um and then what that is is a big open question but I think that's that's probably the more important one is where will the net new users come from all right here development um yeah that's a good question um I think the answer so the question is how much money should you store on L1 versus on L2 um I think I would think of these as like tiers of uh temperature of your money like if your money is really cold like you're never going to touch it you just want it and you're like you want Ave USD you still want to keep it in one place like you know it's your savings account with your money under your mattress kind of situation then like probably you want to keep it on L1 because it's like nothing's going to change it's just a net kind of ossified almost system you're just like okay that's like you know with Bitcoin right it's like knocking the chain so you keep your money there you can feel pretty safe at night um on the l2s you want to probably have more of your money that you're going to use regularly right like it's more of a checking account it's more of a you know maybe once a week once a month you kind of use this money for some reason either you're leveraging something you're saving something you're spending it you're sending it then you know LT should should kind of occupy more of the actual human usage so it might also divide up the users to be more like you have Bots and users and humans on L2 and then you have like large institutions and like uh you know Hardware Wallets on L1 that might be what happens but it's hard to tell about your other important kids yeah there's a few um one interesting one is four four four four which is kind of a history expiry basically it's more like it's more like the lack of a necessity for uh clients to store long-term history because like for example right now if you're like the guest team or if you're our team also every time you up every time like there's some Evolution to ethereum that changes the way it works like you're not like upgrading your software deleting a bunch of the old code you have to like add new code and also maintain all the old code so the guest team has to maintain all of the code from every previous hard fork and it all has to work perfectly um and that's an enormous amount of technical debt so 444 removes a huge amount of technical debt and the reason why that's important for l2s is that on l2s you are reusing the client software at least that's what we're doing that's what Arboretum now is doing too so you want that stuff to be minimal and simple and have the minimum possible technical debt um so that's a big one um another one is beamsync I don't know the number but beamsync is really interesting because it makes your uh well there's a lot of focus all of a sudden beams things really interesting because it enables you to um sync a node from a as a lazy from a lazy loading perspective so instead of like syncing block by block or syncing with like merkelproofs or syncing um uh sort of like through many many proofs you sync uh as you execute so like you wanna you wanna run a transaction and your evm Trace reads gets to a point where it's like hey I don't have this data it'll then find other nodes that have the data and then sync it and the reason why that's important is that the way a fault proof works is that it's the exact same process where like you execute the code and all of a sudden you don't have the data so you need to get a Merkle proof to show that the data exists in some State Route so it makes the fault proof execution code look identical to the execution code period so again like it lowers the diff even more for writing an L2 which is against the whole philosophy that we have with the design um I want to mention one more um well I want wonderfully shout out I think it's also a good hackathon kind of thing to think about is that eventually the evm is going to ossify and you're going to have kind of L2 evm right and so so evm can be um l2s can be an experimental ground for uh creating your own like version of the evm so you can imagine a world where there's like an optimism with account abstraction and you can experiment with a kind of abstraction on an L2 because you can actually get the whole ecosystem of the technology around the EIP like the developer tooling the Geth changes the solidity changes and so on the wallet changes all working on a mainnet production roll up before it's on L1 so you know L2 evm and like the evolution of the EIP process in general is also like a really important category for people to think about is there another Workshop sorry okay oh it's polygon all right go polygon all right thanks everyone