The Rise of L2 Native dApps Louis Guthmann

hi everyone thank you for coming let's introduce myself i'm louis i'm the ecosystem lead at starkware and today i'm gonna explain you know what can be built now that we are getting scale on ethereum okay so the rise of l2 native dap i'm going to start very briefly with sort of an overview of um of scaling and what you know blockchain are and why do we need screening the way we do it just bear with me if you already know that stuff so there is kind of a paradox when it comes to blockchain which is blockchain are relatively recent system but they are slower than 40 years old system like credit cards and so the reason the question here is why why are we willing to spend our energy on systems that are so slow and the reason is because when you look at traditional finance you are not working the same sort of framework of trust that you are when you're working on blockchain so when you work with traditional finance you're to work in a delegated accounting accountability model meaning you're going to trust a centralized entity or a set of centralized entity to do things properly on the other hand blockchain is inclusive accountability meaning don't trust verify where every member of the network anyone can join and any member of the network can you know verify that everything happened is correct the problem when you do this naively which what have been done so far when it comes to crypto is that you sacrifice both scale and privacy why because even though the miner the sequencer the guy who's going to update the database we're going to mine the block can have is super rich and can have his data center is limited in the ability to process data by the smallest node in the network the target machine that the network have so for instance on bitcoin it's a raspberry pi on ethereum it's a 2 500 machine a big laptop and on solana is roughly anywhere between 500 to 2000 dollar machine on aws per month and so this is where we can we start from and the question we're bringing in now is how can we scale inclusive accountability and so the currency affair as i said you have centralized entities you have blockchain where slow and the centralized entity can go big because they have big computers basically fast exclusive versus slow inclusive and one way that have been you know done in the past is increasing the block size or increasing the gas limit so the problem when you do that is you are kicking people out of the network you are kicking the guy the 14 years old in the middle of india or whatever and so that's not the way as a film and the community you want we want the scale so we've come on schedule and so this is where the star query comes in this is where valetti proof comes in and where the snarks and the snark and starks comes in so what are those systems what's what starcraft brings to the table is a solution called zkp also known as stark proofs and so let me just explain what how does it work and what it brings in terms of scaling so the way what we define as a proof is the following a proof is a system where i can approve her with basically for one of my operation and me as a verifier we have received a proof that i'm going to verify the cool thing about those proof is that the verifier the approver is going to spend a bit more time to generate that proof like a bit more time that we do naively running a note on the network but the verifier and the median of verifier after him have an external speed up so what would take you a week to verify to prove would take you a millisecond to verify this is like the magic that offers ekps and so when it comes to blockchain we have this system what we can do is that instead of propagating all the transaction we can verify that the transactions are valid and just send the end result and the proof to the verifiers this is what the key roll-ups are and so now let's have a look of what it calls in terms of decent space of application on ethereum and so the main issue you have as a dab developer today is not making your app too expensive otherwise no one is going to use it and so this has two implications it it it has indication in the way your app will operate and also it one you can actually build and so just to explore a tiny bit of example of what happened on l1 is for anyone who's been around for a long time probably used back in the days uh delta for delta which was basically a full order book exchange on the blockchain but it came out of usage because it became so expensive to use and so it was replaced by technically less capital efficient solutions like imm like um v2 with which were optimized for the constraint of the blockchain and so the main issue when you have a v2 when you are as you know so on on most liquid pools meaning if die for instance is that you require a lot more liquidity to be has capital efficient to provide sort of the same market making that you would do on the centralized exchange a market maker let's go to trade on binance is going to need probably 100 times less funds than uni swap to do the same operation in the same sort of slippage and so now the question is can you do better can we do better another thing that cannot be done today is managing liquidation managing uh stop stop loss limit like limit order all the sort of things that you would like for a proper efficient financial market and so as i said so far we have seen applications being restricted by what they can do and now the question we have with the r2 that what would happen if we are unlocking this computation power and this is what we are showing we're starting to see when it comes to start net so start net is a zq roll up so zika roll up is what i explained before is an l2 is like a solution that's run on top of ethereum to scale ethereum using validity proof and what's what did provide from the developer perspective is two main different in programming pattern the first one is computation is extremely cheap why extremely cheap is because today you are paying not only for the competition you run once but for the million of people coming after you going to re-verify it over time re-syncing the network over time and on the other hand you also have free free witness data meaning if you're familiar with the way blockchain the transaction work on ethereum we have this notion of core data code data is also called history in the container ethereum in the context of a rollup history is actually no longer necessary for the security of the system why because everything is valid i could not have lie i don't need to be convinced that this code data this transaction was processed properly because i know it was based on the cryptography and the math okay so now if you want to take advantage of this today what you need to do is use skyrow which is our programming language vm and user infrastructure more will come it's not limited to us but what i want to show now is what we have seen so far emerging in terms of use case and what we have seen you know existing sort of showing up and so um let's look at that okay so the first 30k the one we have the most experience with is dydx so dydx for who we don't know is a dex a decentralized uh perpetual contract a perpetual project meaning that you can run and buy and sell perps like you would do on binance and ftx and but you do that in the decentral fashion and certainly with self-custody and so dydx was running on l1 before and when they were running another one a settlement meaning a match between two orders would cost between anywhere between two hundred thousand to three hundred thousand gas and and another thing that happened is that because of the way oracle price were working back then they couldn't offer too much leverage they need to cap the amount average they could offer for you for those who are familiar with that on binance up to recently i think they removed it but you could go up to 100x exposure and on dydx back then you could do only 10x and so working with us because of the way core data is free it's core data being free now they can have basically a record price at every transaction a much more granular control over the price and the structure the infrastructure of the system and so which is why they were able to move from 10x to 25x when they moved to us another thing is they were able to not only copy what they did on l1 but they were able to expand and before that you would only have one account for one pair you would basically have a set of usdt usdc and would trade for bitcoin but now you can only not only trade with bitcoin you can trade with bitcoin if shibaf whatever is available on the on the on the platform and what we have seen so far is that it exploded the capital efficiency of the system bringing a lot more volumes and finally we are seeing right now um transactions which are if the system would have run on ethereum it would have cost something like 600 000 gas we are transactions now which are 400 yes we are talking roughly a thousand times cheaper tithing time 500 something like this this is what l2 brings this is what zika will bring to the table okay so now in terms of on-chain gaming we are seeing on startnet right now an explosion of project coming up showing use case for gaming and how why so because when you look at all launching gaming today the only thing they do because they can do more is doing storing the asset on chain and enabling trading that's what axis being doing that's what surrey have been doing but the game logic is always done on there too or on off chain in a trusted fashion with cheap computation we're starting to see the implementation of game logic in contract people actually working towards game channel all the sort of infrastructure tooling that you need to create a real unstoppable game which will achieve the original vision of you know vitalik got into crypto why because he got ripped off his super fancy card and because all of a sudden the rule of the game changed and so we can create games that are unstoppable where the committee can decide no i'm not accepting the new rules and so what i'm saying we're starting to see that we actually are projects that come not only you know just start working with projects that are migrating from l1 migrating from other let's use to work with us so we have influence here in france if from look at it dope war loot uh to name a few bricks uh someone creating a carrot chess game to enable chess.com decentralized fashion a bunch of other things that are popping up and expecting to see more and more of those coming every day and this is just an idea look at this video what you're saying you probably don't understand what you're saying right now but this is probably the first provable simulation in the world meaning those interactions this physic engine is provable in existing fashion so guilty giova who is uh you can look on twitter is a he's a cairo dev he's working on a new company called topology he has built he has tried to build multiple things my first one managing graphics on chain another thing has tried to do is creating a physic engine to run realistic simulation between improvable realistic simulation between participants and the last things that are not available here he actually implemented the machine learning model uh on the blockchain itself to do interference of you know interaction so why does that and i like to i mean i don't show speeches this way but the way i was presented is because they want to live in ready player one so the way it presents is that you don't want to in real deployment you don't want to leave in centralized servers because you know you don't want to belong to google but you want therefore you need to say decentralized servers therefore you in the blockchain but the problem blockchain are computationally inefficient environment so is leveraging the power of the kps to enable this vision to achieve and what do you need now when you say that you need a physic engine to enable realistic interaction between humans you know simulation and you need an ai it's a big word for npcs so this is what we're starting to see and we're starting to see more and more of people coming up and showing very interesting new things okay now what is this this is a fractal this is a prefers as i thought i'm aware of of a dynamic interactive provable engine derivative art so this implementation is an example where you could make unchanging native art which are no static which can evolve over time in a dynamic fashion and you can decide what step of the of the of the process you want to display so you can imagine this fractal system but you could also imagine something like game of life and so we are as i say if you are interested in this kind of things there is so many things to be of that just come to us just try it out just figure it out and now the last thing i want to just expose is a new sort of tooling that come up so we have seen first of all this combination of cheap data and cheap computation enables for the first time practical smart contract wallet so in stock net we don't have eos we don't have private keys per se everything is a contract and so you can finally have social recovery you can have capping of amount of money being transferred efficient btc and so on and so forth and this is what argent x has been bringing that's why we we partner with them to help us sort of build infrastructure of wallet in on startnet um we have seen also discussing with snapshots so snapshot is by far the largest dow tooling in the world right now and we are working with them on snapchat x which enables any project to remove the multisig how so because you find can finally vote on layer one for cheap by offloading the voting the verification of the vote to l2 so the way it works for those are familiar very fancy something called storage proof it's very cool and there is so many usage of this that has not been explored yet a bunch of others zorro is building a proof of humanity or personhood uh we see any news ruling and i'm expecting to see more and more advent cryptography tooling like um you know snarks on top of snark net um um stack p or f1 like the ethereum signature uh we are seeing like the possibility to sign with your iphone with the securing claim of your iphone things that are not feasible today on any other blockchain and so i'm going about to conclude here which is this is just a set of topics that i explore there are other people coming to us to do provable interference machine learning uh to you know to many other use cases we are seeing you know people looking into l1 l2 communication how can i for instance mean l1 trade on l2 for nfts or how can use l3s to offload some of the computation of some places and so to conclude where with this the the limit is your imagination if you want to build what you couldn't build before try it out try cairo try start net come to us give us feedback and we'll try to work with you work with the community that we have been seeing so far and we're getting like extremely interesting traction extremely strong people coming in so if you want to know more happy to come please talk to me talk to our team star wars team here and yeah coming in there so if you want last thing if you want to join the discord this is the qr code for the for the discord this is where all the committee happened and your world everyone come to to discuss it you