HK Blockchain Week 2020 - Keynote Speech by Arthur Breitman (Early Architect, Tezos)

Please give it up for our next speaker. Arthur Raisman. He's an early architect of the world, Jones Heather's protocol, and he's about to prevent his, you on the rapidly developing had those ecosystem. Hello, I'm Arthur braidman. Thank you for coming to see Hong Kong boxing week, so I'm here to talk a little bit about stasis. What is so, dangerous is a district manager for a cryptocurrency test and is also a smart contract at 4. How does it work in space on a public blockchain, which is maintained by thousands of knows all around the world. All running

Arbiter software, the development start in around 2014, and the network option, 2018, but it did. They're so that the software that underpins what is blockchain is constantly evolving. And that's thanks to hundreds of a bunch of computers, which are located on, five continents. So, it didn't really is a yam, a project. Unlike other blocks in projects which tend to have user rule setting stones or have more centralized development which has pushed in a form of heart. Forex in Texas, we having on Shane

amendment process and what that means is that the stakeholders. So anyone who hold a test can govern the direction of the protocol to have a say and decide. Do I like this change? Onesies change, or do I not want this change, and that's works with voting procedure, which takes about currently takes about three months to have an immense. And I text you wrote was an 80% supermajority, so it's a fairly conservative process, adopt, a new set of rules. And on the floor, I have an old version that you moved to the new version. It's,

it's very, it's a very, very smooth. Transition is already up in four times. They're pretty cool. I mean a Master Series and so first miracle Was Then followed by fabulous and just a few days ago to Delphi protocol launched and transition, just happened in a one-block, you use the albergo next block, use an Uber to call and then you were to go in Delphi for example, was introducing a much faster and Jupiter for smart contracts. Meaning you can now run more complex, more contracts and I would focus on incremental non-disruptive

improvements to. The protocol is one of the core strengths of tasers because what if means is that, it's a shame, you can always be at the Forefront of the technology can always Implement state-of-the-art techniques, and he can do so without Central Station and can do. So, without splitting into multiple chains and it's charging its users. And that I sent you is really cute and now and I don't want to give the impression that somehow this is only a Keeping up with technology because this is does innovate. And so, it was for example, the first major proof of stake out a small contract

platform to launch. What is proof of stake. So the traditional approach for maintaining consensus, is, currencies has been decentralized auction. In general. Has been proof of work. So same as proof of work. Blockchains are there can be no more Bitcoin group of workers with minors. What it means is you have someone with a specialized computer spending, a lot of electricity trying to convert hashes and when did use it gets to weigh in on the consensus and what the benefit of this approach is that if I want to inform the consensus, perhaps this matter, it's not cheaper for

me to do. So right? If I want Stuart to 2 to move the consensus, I will have to spend a lot of money to do it and I will be rewarded with inflation was a block reward now. So I I mean, Wasted by attacking the chain. So that's that's the idea of us was minding their student is really expensive because you have to spend all this energy into you don't actually have an alignment between the miners and their users, and of the chain, in the holder of the consensus is, anyone

will hold the token and that's that that's a, that's a very, very natural thing to do. It's a little more technical to make works and then my name because it is, it doesn't have to like, very useful properties of proof of work, but it still works. And when you end, end it end up being much cheaper. One of the benefits of proof of stake that you have, is that you have. This is. So, if you want to tag proof-of-work, the benefits, you get from falling, the contestants and proof of work. And the cost is the same. I just got you the same what you win by doing

it and would you lose by doing? It is very symmetrical in proof of stake especially in proof of stake like you doing what they couldn't tell. It was flashing. When was the first broomstick we smashing? Change you to be like what you do with that? If you detect bad behavior, you can cease a bonds with your place on the Chain by by the Valley. Theaters, in some sense you don't have to pay. The balance is very much to be honest because you're not trying to bribe the volunteers to be honest. You're just saying like, hey, here's a small reward just because you're ready,

computer is just because you have no operating cost, but then you were, what is very small, and very small amount of inflation. But if you do something wrong, then you can do. So that's two of the pillars. I would see if there's a South American governments aspect. The proof of stake aspect, one of the circular that people often mention is a full movie. Station station, it's not like a feature. That is a technique used to guarantee that some piece of code is doing what it's supposed to do. And then the origins of

full of interesting you find it was using industry-first with things like Aeronautics or rocketry or nuclear power plants. Nice. Very intuitive, why rocketry would make sense? Because, you know, there's a lot of code that goes, I'm going to look at it, but that's not that much. And you should get a single line of code wrong in a rocket. You're working can blow up and this is not Siri to going to happen, cuz it was an organ five, European Rockets, which blew up, because one counter had an overflow in it, so is single bug can blow Rockets, Rockets are very

expensive. And so if you think of it, like, I have some piece of code if I get anything wrong and confuse are expensive. It's worth spending some time. Really thinking of like, okay, how can I make sure I don't have bucks and we know these techniques in traditional software, engineering, the techniques are using say programming language is functional programming languages for example, like our been using Tesla's boost for the protocol enforcement contracts, it can be doing a lot of testing station is probably one of the highest standard of very fine that you don't have

to fix. The problem is that formal verification is typically very difficult to perform especially because you need to make a medic, medical proof about a program. So to begin with and always easy, you need to be very, very rigorous. You need to prove very simple things, you know, people when they learn from her vacation, the first thing they will try to prove it prove that 1 + 1 equal 2 and that's not trivial, right? You need to learn how to do that because you're proving its 2 degree of rigor, which is super high. We can do that. The difficulty is that

when you try to prove a a traditional program that is correct, you are trying to use the many medical Universe like words in mathematics to describe things in computers and computers can be described by text doesn't always work very well. So what you want to do if you want to have a language or programming language that's boost easy for humans to use and understand but also easy to make Bruce about. And that's part of the design of the small project language p.m. for after school because it was designed so that it would be easier to make Bruce about it. Ending fact we've been able to

make proofs about many programs. There's proof about a decentralized exchange smart. Contract contract has been hundreds of millions of dollars lost because of multi, see bugs on a Siri. I'm so it is. Very serious, very serious. Even a simple contract, like, multi thing is worse, really? Checking? That's you don't have a single Now, those formal verification mean. You come have bug know, it's always possible to write a bug. It's always possible to prove the wrong property, but it makes it a lot harder. You can think of it as generalized testing.

So it's not, it's not, it's not foolproof. Nothing is foolproof. What is the strongest guarantee that we know and Engineering from over here is as strong as guarantee that that you can get about a program and we try to make it easier in the design of those addresses consensus. It's not just his mechanism for grilling yourself. This is also a platform and over the past few years over the past year related. One of the thing that's real ecosystem has been the day lover tooling so anything that helps you build on to those that has grown dramatically. That means height of a languages

likely go or smart pie. So you can use Python for example, to write smart contracts, were keeping the safety. Properties of the underlined Language by, we developed a form of recognition Frameworks like I was mentioning to make it easier to verify the contracts to ensure why it's that they do what they're supposed to do, testing environment to test your contracts Library, so that you can have a website which integrates with stairs so, so did you can have applications of your mobile phone. So all of this ecosystem is kind of coming up together is being a little token.

Standards many people are familiar with the erc20 token standard on the on, on the cerium. Suppose there's a yacht in FA to standard pistols for financial assets. There's been a decentralized exchange Moore contract act, like it was mentioning their smart contracts for creme de menthe names on his way. To all of this ecosystem has been pulling together and is really starting to come together almost in the bathroom us now. That hasn't stopped some people from from building applications even early on and one of the area where the chain has found quite a quite like quite an

interesting V has been tokenization of real word asset. So there's been checking ization, for example, of real estate portfolios that you took an additional person back that there's been talk edition of regular Equity to a company, or you take a fund, you take a pieces of the funds is equity, and then you represent it as a token on the train, there are several benefits for doing that is interesting for the issue, where is because they don't have to maintain. These are going to have to maintain a cap to go for examples of a jerk. It's easier for

the holders of that, they can transfer it more easily, you know. It brings a little bit of liquidity to private Equity, real estate investment, only be a lot more liquid. I think the main benefit of doing this is really going to come with the interactions as more contracts because you see, when you're in this market wreck that form, smart contracts and talk to each other. And so if you haven't talked and you have an application on train, the dog, lending, for example, then all of a sudden your Equity because more useful because

there's a standardized protocol that lets you borrow against it or if you have application that that you build it ready. This for example then now you know your your your Equity is more useful soon and it's a way of creating an open Financial system. We use bricks go to Primitives smart contracts which you can verify, what she can have a high confidence in and that you can change together a bill together like like like Lego. And I think that's the time to be particularly interesting. There's been other cases of adoption of the train. It's been used for different things. I see

why I see one of them. Revalue. But with all this amuses, like the fenstra memory which is a performance of the police is using it to do some spending tracking. It's also be nice. Also being used by so she's usually home which is one of the largest bank in the world part of the project with a French central banks are building on. So there's a difference applications are coming together and what's really interesting is when they start talking to each other when they start interacting. So you know, this is only a brief presentation of potatoes. Are you probably might want

to run more than a few resources that can recommend Texas or Cam, obviously you can follow me, you can follow us on Twitter at Steve's house. You can follow me on Twitter, if you're interested in what I have to say. It's at Arthur B, is greater than I would encourage you to join the team coronavirus. There's a lot of great speakers which are lined up in your lawn, a lot of other projects of a vehicle system and if I want, everyone is bailing on it. Thank you so much. Thank you for your time and thank you for listening.