Joe Lubin ~ ConsenSys

[Music] foreign and with that I'm gonna go ahead and introduce my friend Joe Lubin if you like to take the stage and my quick Shameless appreciation Joe is one of our biggest supporters and from the very beginning has said I'm happy to make it go big and with his support and literally dozens of other projects in concert here we are today with over 2 000 people [Music] thanks John we We Made It Go Big wow uh this is epic at Denver is is just so impressive um congrats to the Denver staff if you nailed it again and uh best of luck to uh all the Builders out there so I think we're expecting 2 000 people uh nearly two-thirds of which will be biddlers um pretty amazing at Devcon this past October vitalik unveiled the road map for the multi-stage serenity upgrade to ethereum as the community strives toward the realization of ethereum 2.0 enthusiasts and yes many detractors um so I I'm not going to do slides partially because it's not working but mostly because I don't have slides uh as the community strives towards the realization of ethereum 2.0 enthusiasts and yes many detractors continue to take a hard look at ethereum 1.0 hopefully to learn from it in order to build better future decentralized infrastructure ethereum 1.0 is a wildly successful experiment in the viability utility and potential of blockchain and distributed protocol technology in a sense it is a proof of concept just as HTTP and HTML 1.

0 were but it is an amazingly capable proof of concept that has already enabled so many other Concepts to be tried and proven the foundations of defy decentralized finance and the next Generations of games identity and reputation architecture are being pioneered on ethereum one scalability privacy and confidentiality have been known and accepted weaknesses since day one but Engineers have been solving these problems for decades and Engineers will soon enable and have been solving these problems on ethereum for a couple of years now Aztec protocol for instance will soon enable confidential transactions involving any token on the ethereum mainnet more on the amazing work to be done on scalability later so what has ethereum 1.0 taught us demand exists we are witnessing the rapid growth of defy the global borderless trust minimized Financial system this emergence is underpinned by novel solutions that have come organically from this demand including maker and die 0x air swap uni swap auger Dharma and gnosis Dutch X gnosis safe and so many more ethereum 1.0 has enabled these early Solutions providing automated trust and deep cryptographic security for both existing and new participants and ushering in a truly seamless Global Financial infrastructure where it currently exists as a set of siled national systems linked and monitored via correspondent bank gateways from here demand will grow exponentially and our Solutions will continue to evolve the composability and Synergy that ethereum finally fundamentally enables lends itself to creativity composition and a layering of technologies that will use compounding effects we're seeing so many of these synergies take shape in the ecosystem at large and many will be on display here at Denver your meals are delivered to you via one such Synergy that John power will likely describe more as we go on later during the weekend ethereum 1.0 has demonstrated innovation in foundations the innovation in the foundational elements of ethereum are profound the gnosis safe and metamask are Bridging the Gap between ethereum's usability and security two or three years ago we published an article entitled the wallet is the new browser early indications are that we were not wrong metamask's roadmap once you get to know it is astonishing and devs like Austin Griffith are returning to the basics of everyday value transfer with Innovations like the burner wallet the POA X die chain and chugging a beer nearly as quickly as he can send value at very little cost around the globe Austin uh the rhombus Oracle project enables connection of real world data to Smart contracts I hope some of you choose to hack with rhombus in the next couple of days ethereum 1.0 has highlighted the importance of UI ux ux is evolving becoming more human-centered and more important in the daily adoption of blockchain Technology the rimble design system introduces beautiful UI ux standards to bridge web 2 and web 3 with tools to assist in building user-friendly dapps and soon it will incorporate elements like badging and other reputational elements like levels of expertise meta transactions and Universal logins are easing the onboarding to blockchain technology for the average consumer who might not care about the nuanced value ads of ethereum additional wallet designs like vaults status or xerion's tokenary seek to make ethereum usable for the daily consumer abstracting away lower layer protocols for trading borrowing investing and saving the lesson is that we can create the most rigorous Solutions ever but until we make them human and intuitive in their design they won't see large-scale use ethereum 1.

0 has seen vibrant experimentation experimentation and consistent developer Innovation on ethereum 1.0 is bursting and it's incessant from the great state of Colorado gatecoin's leadership in the open source Dev and token space led to the development of the EIP leet or EIP 1337. allowing for subscription-based financial models long since proven effective in today's consumer Market to be integrated on ethereum Kevin Vivek and team are indeed 1337. the consensus diligence team is in the house in addition to doing security audits to keep ethereum projects safe they're innovating with platforms like penvala and mythex to spread blockchain safety as widely as possible in just a few days gnosis and dowstax DX Dao will go live as the governance layer of gnosis's Dutch X exchange Dutch X exchange is the first fully decentralized trading protocol that will eliminate all forms of improper manipulation of trading like front running by miners for example Martin koppelman has made the outrageous prediction that DX Dow will be the largest financial structure on the planet eventually audacious yes but I personally would never bet against Martin Stefan and Friedrich and the gnosis team Martin and Matan field of dowstak made some interesting arguments to support this claim in a recent epicenter broadcast or podcast I I suggest you check it out this early 1.0 wave of blockchain has also facilitated Enterprise and government interest s and government friendliness continues to grow globally Enterprise interest never slowed during the crypto winter and we at consensus have moved past the 2017 proof of concept phase with our Enterprise clients and are deploying real world production systems on ethereum we've seen the integration of collido blockchain as a service into AWS and soon it will be multi-cloud collido has 2 000 uh Enterprise and Consortium customers we've built a rural banking network with Union Bank linking over 100 rural banks in the Philippines and soon there will be 500 tiny rural Banks on the network settling transactions at the speed of blockchain rather than days or weeks we helped launch the Comm go Commodities trade Finance platform to enable Commodities and financial companies to organize the financing of their trades on the platform the first transaction was initiated by Citibank in December right after the network went live importantly this was built as an open network not a closed Consortium activity in the many special interest groups of the Enterprise ethereum Alliance continue to continues to grow as to the number of special interest groups a new group is forming the tokenization special interest group Enterprises and tokens a match made in heaven finally the Legacy Enterprise world is getting it even JP Morgan just announced the Jamie coin another price stable token tracking the US dollar I think they're around 120 stablecoin projects now another foundational element that will enable D5 alongside Enterprise curiosity and real world use we see warming government opinions on blockchain and ethereum around the world places like Bermuda Japan and Singapore are embracing and facilitating the development of the financial aspects of blockchain Technology by reducing regulatory uncertainty in the U.

S Arizona and Ohio have both passed laws legally recognizing data stored and transacted on blockchain platforms our Northern neighbor Wyoming has made great legislative strides and here in the great state of Colorado home to so many so much cutting-edge blockchain talent I'm told the dialogue is progressing well of late Enterprise and government interest brings even more Talent capital and credibility to the space and is a key component in the technology life cycle consensus 1.0 just as ethereum is evolving from 1.0 to ethereum 2 consensus is doing the same consensus 1.0 focused on facilitating the vision and mission of the ethereum project and fostering adult adoption for the technology that we all believe will profoundly transform the way we organize nearly all aspects of society going forward having helped open up an ecosystem consensus 2.0 has been organizing itself to continue help in the evolution of that ecosystem to maturity and to effectively compete and collaborate in that ecosystem with so many that have developed it alongside us and with the many more that are rushing in what is consensus 1.

0 taught us Talent is everywhere there's a huge number of talented curious passionate and fearless people committed to blockchain and specifically ethereum looking around here and on the web it is obvious that the ethereum ecosystem is bursting with talent and the ethereum developer is renowned worldwide to be as Intrepid as the legendary buffacorn we at consensus are lucky to count some of the best amongst our membership and fortunate to work closely with many others in the space tens of consensus members have shown up for this weekend perhaps 30 or more that keep coming out of the corners and um in one in 1200 of you have shown up to eat Denver one of the most fun and elegantly run ethereum community events on the planet please note that at Denver is an ethereum Community Event John paler bristled and chastised me when I called it a conference two days ago consensus one has made it obvious that blockchain is global blockchain is astonishingly Global in nature I think it is the first technology that became Global at such early stages it gained purchase in so many places around the world nearly simultaneously and is blossoming nearly everywhere unprecedentedly quickly this phenomenon is a testament to the decentralized nature of the technology itself and to the mobility and warmth of the ethereum community out of necessity consensus began life four years ago as a multinational startup today we have over a thousand people in 30 countries our community team has expanded across the globe coordinating events and consensus's Presence at International blockchain Tech culture and Arts events our Solutions team has initiated joint ventures and Partnerships in the fashion Industries in Paris and Hong Kong Commodities trade industry in Geneva Finance industry in Bermuda Spain the Philippines and the UK smart cities in Dubai and China the regulated and regulated decentralized Exchange in Singapore with several other similar projects in the works consensus one has experimented broadly with redefining the nature of work this is now a major focus at consensus we call future of work get coin syllable bounties Colony Aragon Dao stack many forms of tokenization and sunopolis are proving to us that we are on the right path by asking how we can work unconventionally in the pursuit of something better equally for the people and the and for the projects John power has described this as the era of the self-sovereign worker and believes in the Revolutionary idea that employment should be network based rather than company based the gradient between freelance and employment will be will soon be smooth as git coin and bounties enable teams to expand work to get done and employees to eventually be hired with a click will enable these creative people to have the benefits of Full Employment while maintaining the fluidity of choice in how they apply their talents in freelance work or with small startups kitcoin is working to bring larger Enterprises into the mix hey John uh any objection to me announcing the investment we talked about over lunch you're good okay uh this isn't a normal investment uh John's vision of an employment Network that is more like a global utility it John's vision is of an employment Network that is more like a global utility than a company consensus is proud to contribute 150 kilo die or kilo dollars or ether or whatever whatever you want um as a bridge investment to serve as one of the initial planks in developing this platform [Applause] optionally we could send you 150 kilo Jamie coin if you want if if we can both get on that permission JPM Network I think it's Quorum actually uh get coin kudos to those of you on and around the Obelisk project who've labored hard to bring it this far Bitcoin is also driving adoption and launching Kudos a way to acknowledge colleagues for their work or anyone for their contributions and Kudos are taking on a life of their own soon to be applied in a wide range of domains no YouTube music a platform that links artists directly to their fans is doing something similar enabling fans to support beautiful digital Badges of the artists that moved them when I was coming up about a hundred years ago the album art was nearly as important as the music ujo is hosting over a thousand artists now and growing 20 month on month and it is bringing back some of the artist-centered goodness that has been squeezed relentlessly out of the music industry bounties proved the power of the of its platform to engage communities this is the bet the bounties Network to engage communities through an ocean cleanup project in Manila Sobel are internal organization software soon to be available to other companies that value surf organization and this Q hierarchy is helping consensus develop and apply an explicit agreements fabric to coordinate everything we do and replace some of the clarity and accountability that is lost when hierarchy is no longer the organizing principle ethereum 2.0 as we transition towards ethereum 2.0 enormous activity will continue with the current architecture of solutions employing the base trust layer layer 1 and layer 2 the scalability layer however we recognize that ethereum 2 the ethereum 2 design is far more efficient scalable and more resistant to centralization to recap Danny Ryan's thoughts on ethereum 2 partly motivated by discussions at Devcon we can visualize ethereum 2 with 5 main powers uh pillars sorry decentralization resilience security Simplicity and longevity together these qualities ensure ethereum 2 will evolve into the radically decentralized trust minimized and secure platform needed to serve as an anchor for what we are seeing emerge across the blockchain ecosystem that is an interoperable set of ledgers that emerge to allow parties to transact confidentially and securely these ledgers will rely on a root coordinating Ledger a gear that keeps the entire ecosystem securely moving in sync just as ethereum one is doing that now with respect to side chains State channels troopit snarks and Starks mechanisms and more ethereum 2.0 will provide that service on a far grander scale John walpert famous for being instrumental in bringing IBM's Fabric and the hyperledger foundation to life now labors and consensus's Raleigh Durham office helping bring what he terms the stateful internet to life all of us who work at the lower layers of decentralized Protocols are doing exactly that along with him by all decentralized authoritative accounts that I'm in touch with ethereum 2.0 is going very well the phase zero spec is stable and is being built by multiple teams with status as Nimbus perhaps in the lead consensus is Pegasus r d and Artemis team are doing great work on this front optimistic viewers like like me for instance feel that we may have clients from different teams sinking on the beacon chain test net in a small number of months efforts for phase one and phase two of ethereum 2.

0 are getting started and are expected to evolve in parallel without much constraining interdependency you're all aware of the layer 2 scalability solutions that have recently come online and will soon come online based on the various side chains Tech State channels relay mechanisms true bit ZK snark and Stark approaches to scalability we even have an r d effort in Pegasus in our Pegasus group that is working on bringing blockchain safety to SQL database constructs a few of us at consensus have been working on defining a throughput measure that we're calling dtps decentralized transactions per second the measure would range from zero to one a transaction on a silo database would have a decentralization quotient DQ of zero a transaction on an ethereum-based permission Consortium Network might have a DQ that's very small say 0.001 a transaction on EOS might have a DQ of 0.1 Ripple would be low Litecoin and Monero would be higher let's Peg ethereums and bitcoin's DQ at 0.7 for the sake of argument decentralized transactions per second throughput dtps would be defined as the TPS throughput of a network multiplied by its DQ So currently ethereum can do somewhere north of 15 transactions per second with the DQ of 0.7 let's call that about 15 times 0.

7 equals 10 dtps or 10 decentralized transactions per second a plasma attached side chain would have a DQ pretty close to 0.7 as with State channels and zero knowledge scalability mechanisms our friends at fastx exchange has have a plasma linked Network that runs at 65 000 transactions per second and the plasma group Loom and others are bringing their own scalability Tech to the game Space and other niches as more networks and other mechanisms attach themselves securely and permissionly to the ethereum-based trust layer we should see perhaps by the end of 2019 the theorem ecosystems supported dtps of hundreds of thousands of decentralized transactions per second true to form the engineers are solving scalability consensus 2.0 as ethereum matures rapidly into its 2.0 phase consensus is also rapidly evolving into consensus 2.0 we've learned from our experiments during 1.

0 and are applying these learnings a few key goals currently Define consensus too in no particular order goal one is consensus impact imp gkt with a silent G so that we can make the acronym work consensus 2 will double down on protocol and application development through our impact spokes infuria metamask Pegasus git coin collido and truffle will continue to serve as fundamental to consensus's value-add to the ecosystem they will drive both developer engagement and Enterprise adoption on the protocol and application layers goal 2 is Building protocol-based open platforms protocol-based open platforms are crucial to breaking down large exploitative intermediaries returning agency to individuals and redistributing power and wealth in a more Equitable manner consensus will double down on enabling developing and promoting these kinds of systems both internally and with outside Partners we expect to be very active in the near term in issuing consumer utility tokens for such platforms as well as issuing tokenized Securities in a wide variety of contexts look for several token launches from consensus in 2019. goal 3 involves our focus on financial infrastructure the future of decentralized tokenized trust minimized Finance is core to the realization of blockchain and ethereum's potential in the defy decentralized Finance future rent extracting intermediaries will no longer or only minimally be required to facilitate transactions and data sharing the growing tokenization of assets will give rise to deep liquid Global markets for so many things these must be realized on radically decentralized platforms where they will continue to be subject to the improper manipulations of inside traders that markets have experienced since the invention of well markets by building and supporting such initiatives ethereum and consensus will help Usher in a new era of personal open platform corporate and nation-state finance with all being realized on nearly the same footing the accomplishments of the many great companies and projects in the ethereum ecosystem including consensus 1.0 have laid the foundation for the 2.0 phase of our ecosystem the ideas theories suffer components standards design patterns and UI ux insights and breakthroughs have been developed are maturing and are being augmented by so many more Innovations these are exactly what we've needed to assemble the soon-to-be consumer-friendly application layer of ethereum the decentralized ecosystem and in our Corner the more complex projects that consensus 2.0 is tackling together we will compose these parts into vehicles that will help each of us reach each of us more fully realize and experience the potential we all felt Upon Our initial Bitcoin or ethereum moment so two quick shout outs first uh to the tachyon accelerator tachyon accelerator will begin in April in Berlin and culminate a bunch of weeks later in San Francisco uh uh applications are closed for the tachyon accelerator except if there are up to 10 great projects coming out of this hackathon contact John power or send a note um on the website tachyoncv.

vc and exceptions can be made if you're interested in in being part of that program finally we're excited to announce here at Denver that we are now officially accepting applications for the consensus grants program that we unveiled back at Devcon for consensus grants will fund projects that are building the infrastructure tools and components required to improve the developer and user experience of ethereum this year we're giving away five hundred thousand dollars or die or Jamie coin if you can get on that Network in the following five categories infrastructure usability social impact education and security grants will be dispersed via get coin of course as other major Grant programs are doing in amounts of 10 kilo die or 20 kilo die or ten thousand twenty I think it's twenty five thousand yeah so it's ten thousand dollars or twenty five thousand dollars uh and grantee projects will be highlighted through consensus media and kauri a technical knowledge Community for the open source software head to grants.consensus.net grants.consensus.net to learn more and apply thank you all very much [Applause]