Tomorrow Begins Today: Building Economies of Scale on Syscoin - TOKEN2049 Singapore 2022

so you know Jess was talking about onboarding a billion people I can tell you none of the blockchains today can actually solve that problem you're not going to build on board a billion people today so we're going to talk about economies at scale a little bit and uh and this is how we're gonna onboard the seven billion people in the world and Ai and iot at the same time um so ciscoin is one of the older projects right it's it's a it's a project back from 2014. you can say we're OG um we were Peak valuation of over a billion dollars we're id16 on coin market cap and uh many of the people probably here have heard of it but they don't know what it's all about we've been kind of you know banging head on on the keyboard trying to figure out how to scale this stuff uh ethereum Bitcoin and all these other blockchains which are monolithic uh we're trying to figure out how we can think about iot smart CDs Ai and and all the different people in the world that need to be onboarded uh to preserve Sovereign Financial value so what we are today is a dual chain architecture and uh and and basically we we're thinking about ways to create things modular right you can't put everything on one layer if you put everything on one layer you'll hit you'll hit a bottleneck at some point some of the blockchain's already hitting that um you know we're Byzantine fault tolerance actual faults where blockchains or blocks aren't forming anymore which is kind of the death the you know the death signal of any of the uh distributed systems is is when a system stops performing and it has a fault and you've got to you gotta prevent that in order to prevent that you have to build a modular design right we're talking about Roll-Ups and also in our case we're splitting up our Tech stack from utxo which is Bitcoin like and evm which is ethereum like and our security model is tied on the utx so back into Bitcoin directly so we'll talk a little bit about what that means but a modular design in our context um and also ethereum means we are a roll-up driven roadmap we are thinking well ZK Roll-Ups we're thinking about optimistic Roll-Ups we have to push users off of the base layers right the only way you're going to get economies of scale is if you reduce the fees the more users jump on the cheaper it has to get this means there's going to be multiple Roll-Ups there's not going to be just one there's going to be multiple and so Rolex we just announced is entering testnet and soon it'll be mainnet but coupled with that you know once you get into a roll-up Centric roadmap you have a specific problem right either you're doing a side chain you know in a side chain what plasma was trying to do with ethereum and and Bitcoin side chains you have a specific problem where how do you know that you'll be able to go back to the base layer if it's not inheriting the layer 1 security then what's the point right there's censorship attack issues there so what you have to do is post some minimal amount of data back to the base chain back to ethereum and call data and what's happening now with optimism and arbitrum and ZK sync and starknet is they're putting the data on the layer and all of the fees are going up because they're putting the data on that base layer so you know in in we've been researching this for a while we found why don't we break that problem down a little bit and and solve that in a more unique way without putting it on the blockchain we're using the blockchain as a repudiation mechanism to secure the data but at the same time you know provide security and decentralization and reducing the fees so every node in the future does never have to sync up with the data but the data has been secured by the blockchain itself in this way you know with data availability of anyone in the text circles will tell you is a core critical problem in a modular blockchain if you have the base layers securing that but you don't have to have the ability to resync all this data every single time we're talking terabytes and terabytes then you end up creating economies of scale our security layer is is unique right we as as eth is merging over to proof of stake and and you know there's some fallbacks there's more game theoretical uh implications there there might be new attack vectors we don't know Bitcoin however has been around a long time it has Lindy effects it has security it has decentralization that's the gold standard right and and actually if you want to prevent spam you want to prevent denial of service you can easily check that there's been work done and prevent certain actions from happening and proof of stake you don't have that so what I I like to say is uh proofus proof of stake um you know it doesn't prevent irrationality but proof of work prevents irrationality irrational Behavior where if I have enough money to throw around I can screw around with that proof of stake layer you won't be able to get anywhere on a proof of work layer and you know and what and when you talk about decentralization there's a certain metric we like to throw around it's called Nakamoto coefficient you know how many aspects of your blockchain are separate in a way where if one is confiscated it's still secure the more the more number the higher the number the coefficient the more decentralized the system our Master layer essentially just paid they're just paid to run full nodes you know ethereum probably has like a half a dozen full archive nodes right now right but if you have these uh incentivized nodes to run full long term which metallic would like to say you know a Dev uh basically part of the blog subsidies being paid to Dev for devs to run full nodes essentially what that is right it creates not the knock high amount of Nakamoto coefficient so no matter what you know if tomorrow half the internet gets shut down because someone presses a button for a nuclear bomb well you got these full nodes backing you up if you have a staking Network and you're dependent on half the notes always to be online if half the internet goes down you're kind of hooped right so you know these are first principles we've been applying from Bitcoin back into an evm model to serve utility we got on the phone with the SEC right we demoed the compliance Solutions we've been doing on the utxo there and the you know they basically had nothing bad to say which is the best thing you can get from the SEC but one of the things we've been thinking about and there's two panels before they were talking about compliance as well was how can we provide this and fat fuss coming out with these guidelines now how can we prevent uh or actually do counterparty checks but prevent uh stifling Innovation with the web 3. so we actually came up with a solution and that's going to be part of the roll up roll up Suite is to provide compliant Roll-Ups as well so we'll talk we'll talk a little bit about that and so where are we where have we come from and where we're going we've been around a long time right so since 2014. we've saw in the bib block debate we saw and developed around lightning networks we've we've saw the challenges of the crypto kitties and evm and then in 2019 we saw the starkware paper say ZK is the future right and it really is this is going to unlock a lot of different use cases we're talking generalized Computing AWS gcp dids and blockchain scaling as well it's also going to unlock privacy and so it's very important that we take a hard look at ZK and how it applies to blockchain because this is gonna for investors this is the theme that you're going to see for at least the next five years is everything's gonna be ZK but how does that support our narrative economies of scale how do we make it so that the more people that join the cheaper it gets right any any web 2 stack has has the only way it provides scale or has gotten there is to for economies of scale and the only way to get adoption is to make amortize so that the more people use it the cheaper it gets to run Services right and you know there's there's a couple things here and they get kind of philosophical right but these are these are our principles as being kind of Bitcoin Maxes in a way we need to build sustainable civilization through improving quality of life if we're not having a contract back with nature so that we don't we use our resources more efficiently we're kind of going backwards right if we're if we're wasting our resources here just because you know we can and then our future Generations have to pay for it at some point rubber hits the road and we're going to run out of resources so we need to improve increase the quality of life of every single person in the world so they make better better informed decisions about how to use those resources services in the world you know they'll make better decisions if they're educated and you know blockchains are core part of that because we're onboarding solar value you can be your own bank you can do D5 you can do you know anything in the world you can get a job um in different ways through Dows and that's how we're going to solve it but it needs to be scalable so economies of scale plays a really big part of this and the last part again this is going to be very outlandish but you know and Tesla's already thinking about this but once we run out of resources here what are we going to do we're going to look elsewhere right Mars we're already thinking about colonizing Mars but how do you do Financial transactions there you're not going to be using Visa Mastercard right it's going to be a blockchain based system but how do you actually do that you have to remove the element of time because now we're dealing with distances of 10 SEC 10 minute delays between messages you're not going to have an optimistic roll up which has a seven day delay period and then you know multiple attack vectors because of a time you have to remove the time element and ZK replaces that so you can have your own systems set up in ways where we're running you know the blockchains here but there are systems there running in ZK and and removing the element of time it might sound outlantish but I'm telling you you know we've been researching this stuff for a long time and this stuff is is becoming a reality is quicker quicker than you think Jean Von Neumann has been um touted as the father of modern Computing right he created the modern architecture for for computing localized Computing but you know what I'm saying is we got to look at what he's doing and there's a nice article I wrote on ciscoin.org you can go check it out we actually just did a refresh of the website so go check it out and what he's saying is you know you need to separate into modular modular Computing you know Hardware uh in terms of your disk your memory or CPU even the CPU is broken down into separate parts there's the ALU and there's a uh you know the CU and the CU is like your blockchain right it's your control unit the ALU is like a Roll-Ups and the data availability you know storing your transactions that's your disk that's your memory but how do we go from there like where are we going to go after that if we look at what Von Neumann did with localized Computing and we apply that to blockchain maybe we can get a global coordinated supercomputer which is what the you know the roadmap of ethereum has always been how do we change how do we get the local computer and expand globally and by the way in Princeton when he met Alan Turing they started talking and they're saying you know these local computers are going to be great AI is going to come out of this right potentially hopefully AI will get great out of this oh you know how can AI be formed if there's intermediaries in the middle there's there's people there's people in the middle saying you can do value transfer or you can do information transfer no way right you need to remove that it needs to be decentralized and you need to have a coordinated Global supercomputer that removes humans from the middle AI can transfer into that system so it we need to think about the way Monument was doing Computing to scale up blockchain and that might mean different things we don't know what that means but let's put let's get our head in that context if we want to scale up blockchain so what you know for us Bitcoin is is a great store value it's a it's a Ponzi token economic system right it's like it's designed to go up only but what it does really good is is a security decentralization because it has Ponzi tokenomics you know you have your inflationary periods every four years it's going to get more and more and more and more secure more work is going to get put in over time right and that um that unmatched security needs to be tapped we don't necessarily want to tap into the consensus which means you have to use actual Bitcoin and it takes 10 minutes to transfer it's slow and it and again the tokenomics are not made for utility we need to tie into the you know the security we could do that it's called merge Mining and Satoshi gave us that that sort of recipe back in 2013-14 on bitcoin talk and not many people caught on but we we saw that and we we built around that emerge mining is a way to tie into the Bitcoin security directly behind it in a way to provide subsidy to miners to mine other chains for free carbon neutral right there's no extra cost there's no extra carbon being spent and you've taken existing systems like Bitcoin which we know we're not going away and you've secured a system uh you know an ancillary system that Bitcoin has nothing no awareness of except the miners know about it so what happens when Bitcoin ends up um the subsidy goes to zero right they'll be depending on merge mining right that's that's the subsidy coming in ethereum now it's not a blockchain that you might think of uh like a traditional evm whatever it's it's a data availability credit system that's what ethereum is today as soon as they release dank sharding proto-dink shardy eip4844 the base layer is effectively a data availability credit system a censorship resistance layer for Roll-Ups and that's what we think of that as well and so we're a mixture of both we got the security of Bitcoin got data availability built in which not many other blockchains are doing just ciscoin and ethereum there's the only two doing that and we're building that sort of you know connection between Bitcoin and ethereum and one Tech stack so privacy is is a sticky point for regulators and all this stuff so um there's three things with privacy there's privacy about option there's tornado cash we saw how that went right like it's it's an option and you get caught if you're doing the wrong thing and it's um maybe not the best idea there's privacy by Design Monero Z cash they're Ground Up made for privacy and then the third one I came up with and actually probably no one really knows about is privacy by requirement what does that mean it means I want to create a system which requires privacy to scale up economies of scale how do we do that well if you think about the ZK roadmap you have the ability to compute localized proofs meaning if I want to do a transaction I create a ZK proof myself and no one in the world learns of what my intent is or what that transaction is I send that out to the world and it gets computed into a snark and put onto the base chain this means that the world knows nothing about what anyone else is doing it's completely paralyzed it's complete distributed that's privacy by requirement if you take the Privacy away you cannot get economies of scale so I'm saying it's a requirement to get there now there might be some fallbacks but I think the pros outweigh the cons when we actually achieve economies of scale we're unlocking all sorts of Untold value and that's what we're doing with ciscoin we're creating these ZK layers we're merge mining with Bitcoin we're decentralizing the secondary layers so you can depend on them a little bit more none of the Roll-Ups today are decentralized but we are working on that to make them better we have specific knowledge about utxo we have really we're really experts on both Tech stacks and not many not many Protocols are like that we got the utxo layer narrowed down we've got the evm layer nailed out we're kind of thinking about how to apply these systems together and cardano's utxo ethereum is evm we're talking to both we're telling cardano they need a data availability layer or else they're not going anywhere um you know an orbis orbis is a ZK roll up on on cardano and they can attest to that but we we're thinking about all these things and we're helping other projects as well we've got unique perspectives we're probably one of the oldest chains and um you know we're going to be around for a long time as well polygon has a layer three layer three sort of road map as well and that's what we're doing some of the alpha so we're launching CIS labs and I think I'm out of time here so we're launching CIS Labs we got multi-million like 20 plus million dollar ecosystem fund we're just announcing it today as well so with assist Labs is effectively a bunch of different things we've been doing on the Enterprise side on the on the tokenomics multiple tges are going to come out of that and we're gonna funnel that into the ciscoin ecosystem into the ecosystem funds and build the ecosystem out we got 18 plus projects building already we just announced it yesterday and we're going to build that up into a unicorn uh a unicorn of unicorn Tech stacks thanks for listening and enjoy your lunch