Today uh I want to use our past five years experience share with you what we have seen in the industry. What um we think will be mo will be most important for infrastructure providers moving forward and also uh tell you a little bit of the trends that we have observed over the past five years. So uh first a little bit uh industry overview. So when we started in 2018 uh we started working on proof ofstake networks that's more like delegated proof ofstake networks which means they have maybe 20 or 30 validators and uh actually making sure those 20 validators have a strong connections with one another is somewhat challenging right even though we only have 20 30 validators it's actually one weak link in those validator sets can make the network somewhat unstable But uh as uh tech evolves over the past 5 years, we started seeing you know networks wanting and needing 100 validators, 300 validators, 500 validators. Now we seeing hundreds of thousands of validators on Ethereum.
So we definitely made a large progress since 2018. And from our point of view uh a large validator set usually means it is uh more difficult for a single validator or a group of validators to basically compromise the network right so uh we would think like networks like uh Cosmos like Ethereum uh will have a higher degree of decentralization such that um you know those networks are more secure in the sense that uh they're more resistant to censorship they're more resilient against attacks because of the large valid data sets. Now, um in addition to that, we think a large valid data set means it's more inclusive. It's more uh fair for the for the for the bigger community to join the network because you don't need $200 million worth of token to be a validator on those networks. Uh so it's easier for community to join in.
So again, back to our experience as a validator for the past five years. When we first started on Yos on Tron network, uh we know there's only 21 validators. So 27 validators. Just a quick question. How many of you guys have worked on Yos or Tron or maybe research a little bit on how to become a validator on those networks?
One. Thank you. Yeah. One, two, three. Yeah.
So uh but how many of you have researched how to become a validator on Ethereum? Yeah. More hands, right? So the reason being if you did your research you know Ethereum EOS and Tron you will probably need hundreds of millions of dollars of a token before you can become a validator currently um so uh and uh interestingly enough those networks with only 21 validators 27 validators they don't have any punishment if you are you know having downtime if you're having double sign you would think those network would need a a harsher punishment because I only have 21 validators but that's not the case moving towards Cosmos we have 100 validator get started right now it's towards you know 175 now we started seeing downtime slashing if your nodes is down for 15 or 16 hours but of course you also have double sign slashing and fast forward 2022 now we are seeing over half a million uh validators on Ethereum but if you miss one attestation you started losing your uh your stake so we definitely see in this trend in the industry where networks are starting wanting more validators, needing more validators and uh the responsibility of those validators are getting more and more uh heavier, right? So uh you can't have any downtime uh if you want to keep your uh state growing.
So uh there are a couple more examples on proof of stake uh blockchains wanting more validators. For instance, Harmony uh we started on Harmony with 320 slots uh distributed over four shards of their uh uh network. Now we are seeing 900 slots on their network and for near uh they started with 100 right so they started pushing out chunk only producers so they are talking 200 or 400 uh validators uh in their network. So we're definitely seeing this trend again uh in different networks trying to get more validators in the in the networks. So we have been collaborating with those uh networks.
So we we have seen uh the the community is getting more and more engaged because of the larger uh number of validators. They can get in they don't have to have again millions of dollars of a token. They can have uh maybe 20 30,000 tokens and they can still participate in the consensus. Okay. So now that we have talked about a lot of you know networks wanting more uh validators but uh you know why uh those validator accounts matters.
So what do we think is and what we have observed also is that uh for example we have a large number of individuals looking to become validators. So uh that means there are higher participations and more people trying to you know get into the space. What we have observed is that for for example Yos and Tron most of the uh you know tutorials and how to become validators or super representatives are written by institutions they're talking about technical terms that an average staker will never understand they will never be able to become one uh also because of lack of capital but for Ethereum we are seeing a higher degree of community wanting to share their knowledge about how to become a validator and share their experience working with different staking service providers. So uh this this willingness of willing to share their experience with others um basically make sure the community keeps engaged and not dropping off because for depot for yos and trron after I deallocate my token I don't have to pay attention to what's happening because of those 21 27 valers already taking care of the governance they're taking care of the voting I don't have to be engaged and I lose interest but for Ethereum we don't see that because more and more people trying to get in and they are uh keep engaged. Now uh of course we have the Shanghai upgrade approaching.
It's uh now in April but we will see uh actually see more capital coming in. Uh that's based on our uh experience and talking to different partners. I know a lot of people is trying to say hey maybe people are trying to withdraw. We'll see a drop in validate accounts. But I say basically uh based on our observation and talking with our partners there will be more capital coming in uh because because of the uh added liquidity they are actually feeling more confident to stake their capital.
So uh they don't have to worry about um locking in their capital for two years without able to withdraw them. And uh one additional thing is that when capital other proof of stake on uh depot's networks, Ethereum will only have roughly 15% of the circulating supply staked. But what we have seen on other networks that they have 50% 70% or even as high as over 90% on B&B uh network. So uh we were we are thinking we'll definitely see more stakes coming in. So that's when uh we have to have a infrastructure provider or STE service provider to help those folks to uh get into the market because not everyone can set up 20,000 valuers at uh at one go and not everyone have the time to research how can I stake my one ETH uh with a staking pool.
So uh that's the implication for staking service providers where we need to be able to stake 1,000 10,000 validators at a time for big institutions but also we will be responsible for helping people with only 1.2 ETH or 2 ETH to join the staking pool. Make sure it is as simple for them to stake at one um also as the uh institutional stakers. Um also we have to make sure as a service provider we must sure that infrastructure can handle that kind of traffic right if I have you know 20,000 vendors added to my uh platform I can't just go hire 10 or 20 additional engineers and say hey please help me monitor and maintain those it has to be automated otherwise uh this not a scalable solution so what do we think in the infrastructure space is that we have to have a platform where we see uh the platform can handle So one validators at a time can also but I can also handle adding 10,000 validators at a time for the network. Now this is a graph I call uh make me feel good statistics because this chain this line can only go up.
Um this is the uh number of validators over the past year as you know because you can't withdraw so you cannot stake. So this is will always go up. But one interesting thing we have seen is that at the end of the graph you can see that close to the Shanghai upgrade actually we haven't seen people uh trying to uh cool down their staking action. We're actually seeing increase in slope where uh more people are trying to get in the uh Ethern staking. So I just checked this morning actually there are close to 9,000 vers uh waiting in the queue trying to be uh get active uh in the ecosystem.
So closer to the upgrade, we're definitely seeing more and more uh people trying to get into the ecosystem and uh be involved in the uh in the overall ecosystem. So get to my point why staking providers may struggle first is that if they don't have an infrastructure ready to commit you know 20,000 validators they won't be able to do it uh as more capital to come in and also if they can't make it more inclusive to go with the Ethereum's ideology to make more people involved then uh those people with one ETH or less than 32 ETH won't be able to get into the network and then we are seeing a lot of people trying to get away and maybe lose interest in the whole network. So the the staking service provider, infrastructure providers have to be prepared for this upgrade and make sure everyone can get involved no matter how much stake or how much capital they have. Now that's why I get to how we can adapt the first we have to have the uh the platform to make sure you know that taking process easy and uh I have three five more slides to tell you how great we are doing at this but I think I want to make a a quick example to give you sort of uh a train of thought to understand what Inston is doing right now. So may I ask how many of you are using MacBook?
One, two, three. Okay. So how many of you are using PC? None. One.
Okay. Okay. One, two. Okay. So the rest of guys, you must be coming in the horse carriage or maybe you're using a Linux.
But uh to my points uh no matter what kind of uh you know operating system you're using maybe you're using a Dell laptop, maybe you're using MacBook Pro, maybe you're using uh MacBook Air or the desktop version. So no matter what uh you know laptop or computer you have, you always have that operating system on your laptop to make sure no matter what you want to do and what's your configuration, you always have the laptop by your side to help you process your task. So that's what infome is trying to do for the blockchain space is that no matter which blockchain you want to get on and what kind of uh setup or infrastructure configuration you want you have we should be able to help you to manage those nodes and make sure you have the access to those blockchain uh networks no matter it's for staking for API or if you just want a couple footnotes for your team infos should be that operating system for you so that you always have your device ready when you need to access the blockchain. So um I would not go through those slides because it's telling you how great we are but I think you have a a good idea on what we want to do for the space and what we're trying to achieve for the ecosystem is to to make sure no matter which blockchain we are on the you know 70 80 blockchains we have integrated we want to help with the decentralization and then we help uh we want to help uh more people to get involved in the blockchain space. So yeah, thank you.
That concludes my presentation, but if you have any questions, feel free to ask. Uh I think I have a couple minutes to take questions. No. Right. Thank you.
Uh appreciate it.
Automatic transcript — names and jargon may be misspelled.