Accelerating Ethereum: Fast Finality Rollups and the Movement Ecosystem l KBW2024

[Music] hello hello hello thank you everyone for coming to Soul Korea joining us on the movement stage it means a lot um we have the movement team here we have mov e system here um so we have across the board everyone that we love and care deeply about um I think when deciding what to talk about today I was like I can talk about something super technical that no one's really going to understand and everyone's going to be a little bored I can talk about moving e system and show my bags and Sh uh moving e system the entire time um but I decided to do a little bit of both talk about what the technical architecture designs that we're making um even today if you guys are following CT a lot of discourse about what is an L2 uh what's the difference between Sal l2s eth l2s Bitcoin l2s Etc um so first and foremost I'll introduce myself I'm rushi one of the co-founders of movement Labs um background was engineering distributed systems and I was geeked out about how can we make distributed systems more secure um and faster I think what gets me up on a bed is look we're all in crypto we're all transacting on chain but the biggest issue you're running into right now is user experience every year there's $ and half billion dollars lost in smart contract acts whether use curve kyber um the Dao any Blue Chip D5 protocol there's always a risk of being attacked um and that's been promly due to the EVMS limitations we see this in the Blue Chip D5 protocols on ethereum on layer 2os even on some layer ones um so the move langu language for those that aren't familiar was built by Facebook to solve this bring formal verification bring High through block STM at runtime so you have the fastest and most secure execution environment coming to ethereum um so movement's job is bringing this no virt machine this technology to ethereum through a layer two um and we've not just done that through like actually putting the movi on it we actually architected some fast finale architectures some pre-confirmation post-confirmation architectures as well as built out a pretty kickass ecosystem half of which this room is probably um but yeah let me get into it so accelerating web 3 uh fast post confirmations and the moving e system so I'll start off by explain what we built um who here has used a test net in the past raise your hand cool so like no one's actually using chains right most of the test Nets that we have layer ones layer twos are pretty boring you have a bridge a DEX uh lending protocol few steps and farm the air drop it's actually quite boring and there's nothing actually intuitive about it when we designed our tesn we're like okay how how do we make this actually interesting that I would want to use it my mom wants to use it my friends want to use it um so we took a step back and gamified it what we have in front of you is a paron if you go testet moving Labs XYZ right now you can use the front end um it has over 44 apps we just cross 150 million transactions um so we're actually able to make it really fun and usable because in the past it's like okay you have a few decks to scatter across the board it's very difficult to actually access it um so if you go and test right now you can access all the apps earn trophies compete with friends leaderboard fully gamified experience um so that's one thing we did differently where it's like we know test are boring we know it's not onchain Capital how do you make a little bit more fun um so shout out to the community team for organizing this some Community highlights um I think one thing that ethereum itself has kind of struggled in is rallying this native Community right I think salana has done a great job with this um now we have upcoming layer ones are also focusing on this it's very evident that Community is most important thing when devising a layer one a layer two and going to Market um so so far we I touched on we just Crush Tesla numbers um we have one of the most active Galaxy and Discord communities but I think beyond that I think when people come to the moveing community they not just have um really good technology they can use but they actually have the ability to join a community where you can make memes you can post in Discord you can post on telegram we have very very in-depth Guild programs where no matter if you're Dev a writer a meme maker you're accepted and you can have a lot of ways to interact the community um we have let's go to community meetups oh go back U I think it's we have over 20 Community meetups biggest communities are actually in Korea Vietnam Indonesia um so Asia is actually a big focus of us it's why we're actually going so big at KBW um we see the future of onchain consumer social um and just the consumer apps coming from Southeast Asia Korea Taiwan um and we're putting a lot of resources and efforts there um and we're seeing that so far with the apps that come to Market most of the volume is coming in the Asia region most of our community members are active in Thailand southeast Asia um so we're doubling down and tripling down so about about a week and a half ago I got ra by metallic wasn't fun um but the thesis was okay we're talking about L twos right now in the current landscape if you use any optimistic rollup right now you have a seventh day withdrawal period um if it's if you're using like op stack or arbitrum orbit um ZK rollups are reducing the withdrawal period um and that's like 50 minutes up north of that but still pretty expensive if you try to use those zekk avms um an optimistic rollup today it's pretty difficult so we set out to roll out fast finality rollups but some people push back in the roll AR architecture and wanted to call it pre-c confirmations um so that's what we did we spent the last two weeks actually all the research team grinding together and we put together post confirmations um before I get into let's talk a little bit about offchain execution like this I'll walk through the current layer to landscape um when you have a transaction go to the mempool I won't get too deep in it because I know this might be boring um but this is kind of how current architecture looks like you have a transaction go to the mempool you order the transactions executor executes the transactions and you settle and publish transaction data as well as back roots to eal one that's how traditional ler twos go optimistic ZK um so you have offsh execution and an onchain da that's if you're using ethereum da if you're using alternative da like celest da Etc you have op chain data too but you're still posting State rout to eel one this is how we prevent malicious transactions for any later 2 right now you have a later 2 rollup that publishes transaction data and bat roots to verifiers live on L1 um and the main goal of these verifiers are to verify state transac ition s transitions you can do that through fraud proofs which takes seven days and kind of difficult to use or you can do that through vity proofs which are very very expensive so you had this scenario for E l2s where you simply can't compete with l1s um slas s Aptos Etc all have very fast confirmation times very fast finality um ethereum layer 2os suffer in time to finality which is really important for onent train order books uh for like if you're actually building the NASDAQ onchain you can't have seven days with withraw periods you can't have proving times they're five bucks per transaction it's kind of difficult so um here's some comparison between fraud and Vil proofs um with on the left you have fraud proofs where you publish batch Roots seven days finale seven days of finale is kind of difficult if you're working anything on chain that requires realtime feedback um so that has verifiers resolvers then you have ability proofs that publish proofs ZK proofs to eel one um isue have touched on is like proving times are pretty expensive um I think the latest ZK new benchmarks we try to run was like $4 per transactions the evm is still pretty lower but I would say optimistic rups like Bas still cut out most ckm so it's pretty much useless um so how do you look into post confirmations here's kind of the architecture of where um post confirmations fit with prop proofs um and vality proofs um so if you do kind of the math ZK proofs are much F faster they take like 30 minutes um Pro proofs around one week we have opportunity with post confirmation to provide finality within seconds um and yes there's some guarantees with security guarantees you actually Market it that like if you want the most amount of security you have ZK proofs you have fraud proofs and you can actually use proofs with uh post confirmations but the issue is that most of the apps most of people here if you're building onch order books if you're building games you don't really care about the security that you're on in theory if a L2 or layer one has enough Economic Security for his native token it's okay that you don't need to necessarily use all eth L1 security so we're optimizing for this world where if you're building an onchain game onchain order book a fully onchain Dex and you're okay with saying I want more time for finality I want the best ux I'm okay sacrificing some user experience which I would say is a good amount of Builders I would say maybe half the builders in your system don't really care about how much security Economic Security they're getting they're care about okay how quick are the transactions how much througho can I Notch how secure as an app and optimizing us experience time to finality is the most important thing having withdrawal times that don't take seven days is very very important so here's kind of the architecture we just released a blog post today if you go to Twitter you can check out the blog but we call it post confirmations where instead of using fraud proofs necessarily or validity proofs you have the ability to use State commitments from a set of valers and you're going to come back and say oh this in the side chain yeah we roll this out and people like okay you're relying on exal consensus uh it's not necessarily a rollup or L2 my counter thesis I don't care I care about what's the best user experience how can you sell State roots to ethereum and provide High throughput apps for ethereum and to that degree we offer this for our Builder so right now if you're a builder and you're plagued by 7-Day withdraw times ZK proofs are too expensive for you how do you post confirmations that enable you to have high througho apps fully on chain um so that's kind of what we rolled out with the research team as of today um it's architecture where you can use a set of ATT testers that use a stake which is a native token um to provide confirmations for transactions um what this enables and why it's important why you should care is right now layer twos are losing the battle if you look at any layer one right now they're fundamentally faster cheaper more secure than current e L1 and l2s I think most of us use pump buff fun use salana every day e l2s can't compete in performance today so how do we make that better first through execution ler we're bringing the move VM to ethereum you have all the benefits of sauna appu be the move v machine with parel execution with block SCM so think about 30,000 plus TPS coming to ethereum for the first time then you have a decentralized sequencer where the biggest issue with L2 is I'm sure you see is loss of funds the sequencer halting and now you just lost your entire Chain by decentralizing sequencer you have multiple nodes to guarantee uptime as well as enabling inop between chains and the last thing what we're rolling out is like if you're a builder and you need instant finality and you need the ability to launch a custom chain you can use post confirmations and for the first time have seconds finality instead of days um and that's kind of the work we're doing obviously it's experimental obviously there's a lot of work left to be done but I think this is where the direction is heading where finally ethereum Builders feel confident saying look I'm okay with not being ethereum Aline per se I want to push the boundaries I want to test out different things um and post confirmations is one of examples some benefits obviously fast conf confirmation um on a tokenomics point of view you can actually have a set of testers that take the native token use a native token for security so all those L2 governance tokens that end up being meme coins that's not possible with this architecture because you actually have to use token for Economic Security of the testers they St the token you have baders think L1 tokenomics on l2s um so that's where what we're pushing forward reduced costs very scalable systems um so if you're building like order books very computation expensive deep pin projects which I'll get into you need insa finality you need high throughput and that's not possible theum today so why move in um on defi I touched on it but we've all been hacked scammed rugged before what gets I've been going is like when I talk to my mom about why don't you use def5 why don't you put money in a the biggest question that come up is how secure is it am I going to get hacked and I don't have a good answer for them it's there four and a half billion loss every year re in overflows the biggest attacks today are all math issues basically imagine like kyber attack curve attack these are all interal overflows arithmetic errors that are because of a human error you simply cannot fix that unless you actually have formal verification runtime for those that don't know formal verification is what you do when you go to auditor and say hey can you audit my code and then go through each line make sure it's fine F the issue is that you can't keep doing that it's expensive you're going have mistakes what move what move does is brings formal verification runtime so when you execute code it checks hey is there a resource issue is there a type issue is memory safety issue it's much more secure there's not been a hack yet on move yet um and you can argue that not enough volume but there's over a billion dollars now in movie system um and still hasn't been hacked knock on wood um gaming in addition to having high throughput we all know about paralyzation the hot narrative and how do you bring fully SC aable systems on like executioner but you have the ability to Dy nfts where let's say for example you're a game builder you're Ming a th000 nfts on the evm right now it's mint and burn nft each time you upgrade state which is pretty expensive pretty slow with move you can swap out traits at will so you kill thousand zombies you can swap with the mag swap the caliber within the smart contract itself so you don't actually have the ux um that other developers have with optimiz capitalization you have better developer contention um I won't get too in technical but if you're a developer and you want to optimize for paralyzation move and block the STM um is the best way to do it there actually a few other chains that using block STM I believe Mon's using a variation of that um obviously move chains and future paralized chains are going to be using block STM as the best consensus engine um yeah now I talk about ecosystem and kind of what gets me more excited um so we' been spending a lot of time on E system building my thesis is there's a lot of l1's l2s you guys are probably bored of hearing the same pitch of faster cheaper more secure but things is that we all build infrastructure and there's no apps live there's no act cool infrastructure um but one thing that us and the be team and the growth team has done is doing events like this working with Builders and cultivating all use cases um two of them I'll shout out right now um one of them is s sentiment I'm wearing a bracelet right now um they do fully onchain jewelry so imagine I'm gifting my mom or my brother or my wife um a memory now I can finally put that on chain and put on a bracelet it's on my Rand right now every single sentiment is onchain and on verified with moving blockchain um so we've spend a lot of time with a team on bringing how you bring onchain FTS High through capacities to ethereum um and this stuff consumer stuff that's not really techy um that my mom probably would use but the technal researcher probably would to use but we're spending a lot of time there another one I'm excited about is up Network you guys all heard with salana Saga we're rolling out a phone with the up Network team on bringing fully onchain mobile to the theum ecosystem um imagine all the phones in your hands with move in wallet coming Day Zero um and in my hands right now where you can use any movement app any defi app on ethereum on your phone with the razor wallet with any native moving wallet um so two examples of some cool deepend projects we're working on obviously defi is a big use case and something we're spending a lot of time with um where if you're using defound ethereum right now it's slow it's expensive you're getting hacked we want to be the home for defound ethereum such that you have low transaction fees you have high throughput and you can finally trust the systems we announced over million in TV Al e system this is coming from LPS that have been bitten stabbed but getting hacked from lack of security for the first time these teams and LPS can put money on chain and get insurance to back up the yield because there no smart contract risk you don't have to worry about getting hacked because it's fully form formally verified end to end so in front of you is some of the great apps all of these are live on testnet so you go test.mov Labs XYZ apps you can check out some of the great Builders and software that we have many of them in the crowd here we're doing events so please stop by and meet them um but yeah e system highlights I think we cross over 200 team buildings um you can check all over the board what's really interesting is that it's not just move teams I'm sure you're going to say it back like oh move is Young move is underdeveloped there's no one building on it but the thing is that it's a lot like Salon in the first four years if you look at Salon in the first two years you had Sol it you had three apps not the much of EOS system until recently that's when the tide shifted move is going to be the next narrative where you have two multi-billion dollar chains right now and move incoming Market as well pushing forward this language that was built by Facebook such that we're bringing the movie system to ethereum but also the evme system with our move evm so if you're a slly developer you can deploy on top movement fully transpile your e bik code to move and exist if you're move Builder from afteru and you also want to go cross chain and bring ethereum liquidity you can do that too so we EMP The Hub and overlap between the moving system e theic system and the evm system um and we've done that so far on the system we're building and the partners we brought on I think this what gets me excited and kind of happy um when me and Cooper started movement it was just two kids in a dorm room um this like wishing for a better movie system and today it's truly movement um we seeing meetups across Indonesia Thailand Africa Korea was last week um but it it puts a smile on my face to see people not only care about the tech but the community because ultimately there's going to be another chain come out in six months there's be another chain come out in 12 months but what brings people together is a community and feeling part of something bigger um feeling part of a movement um and I think that's what gets all of us out of bed um it's kind of difficult to do obviously waking up every day and competing with everyone else is kind of difficult but you do it for the people um and the people are real right in front of us um and last but not least I'll kind of get into the work we're doing accelerator programs some of you guys may be Builders who are interested about moving interested about move or interested about crypto some of you guys are new um I think in the past it's been really kind of difficult for new developers to come EOS system and get support when we were early developers it was kind of difficult to get connect to the foundations get grants learn how to even build new system um so one thing we're launching is move Collective which is accelerat design to support the most projects uh e system most of my time these days I spent day-to-day helping projects raise get to Market build community and be bigger than us my goal as a Founder is for every project in my ecosystem to be bigger than us I don't want anyone to know about movement I want people to know about our apps um and the collective was designed to do that um I want to highlight three teams that have already raed Capital some of them may here um nexio moving on bitcoin um link they're also here they're bring a fully mobile consumer rollup um and echon um is a three is a lending protocol so safe yields for your um Capital um there's around seven more that I don't think we've announced yet but coming next week and the week after um but they may be in the crowd too so please stop by um for the program move mentorship direct support from our foundation us personally helping day to-day um we have on inperson events so you see all some of the Korea events some the Africa events we're doing events all across China and Southeast Asia so feel free to check those out um as well as just generally feeling part of a bigger Mission um it's not just like deploy a deck and call it a day you're part of a family here um we want to help you day to day and put everything online for you um so that's all we got um so yeah thank you thank you for coming Korea and thank you for moving stage it's an honor um and looking forward to the rest of KBW [Music]