hi everyone this is Charles hoskinson broadcasting live from warm sunny Colorado always warm Always Sunny sometimes Colorado today is March 7th 2022 and I have a few updates for everybody uh so this is a big week for the entire cardano project whole Cardinal Foundation executive leadership Senior Management is here in Colorado and we're having a lovely time in a series of seminars workshops and discussions about structuring a better open source project for cardano so as many of you know cardano's code is under an open source license uh but the curation of it has been rather Federated in nature and we've gotten to a point where there are so many people in the community so many projects in the community there's I think more than 400 daps that are being built right now and a lot of those bias towards the second half of the year after the fossil hard Fork but in the event there's tons of Engineers floating around in many different companies from DC spark to tweaked well typed and obviously our company uh in the foundation itself and so there's a big question about how does one structure all of that put all those pieces together and we've been working really closely with a lot of different people in the last nine months to to have those conversations and we're starting to converge on a strategy that will be kind of built in layers and these workshops are a pivotal component of that so we'll give you guys an update on the back end of them of all the things discussed and we've learned and commitments made and hopefully maybe be able to get some timelines out about how new government structures look at like but we've looked at a lot of different successful open Source projects for example the Mozilla Foundation the Apache Foundation the Linux foundation and we've tried to really look at how they handle everything from how does one become a contributor how do you measure Merit of contributions what type of Standards processes need to be followed for example ethereum has things like eips and ercs well analogously we we have cips and we're talking about what a standards process would look like we're also examining things like formal methods how far down that stack we want to go there's an i o viewpoint on how to do formal methods and all of those specifications are public and you can see that we've connected those to the code but moving forward should we move to more of a polyglot ecosystem or maintain Haskell is the reference client and then still maintain the same formal methods methodology so these are all discussions that are being held there's also a lot of discussions about documentation training and other such things if you look at the Linux foundation in particular they do a very good job evangelizing open source and training people to become open source contributors so there needs to be a whole pedagogy that's assembled there other things on the agenda are things like mastering cardano things on the agenda like special purpose courses for plutus and for core technology of cardano I'm going to be attending a learning conference in London in May that actually has has lots of vendors who specializing these things and my hope is to be able to Outsource a big chunk of curriculum development from our internal education division to repeatable courses for the uh for the community so we're having a lot of discussions along those lines and there's a Litany of other little things to deal with here and there but all things considered a lot of progress there's also been a lot of talk about well what is the cardano vision 2025 2027 as many of you know I've repeatedly said that our goal is commercial comparability sustainability and self-determination as kind of a goal post for this year things like pipelining and input endorsers mithril side chains these things in that bucket really get us where we need to be in that first category in terms of sustainability uh there things like utxo HD a lot of the improvements we've made to the system and optimizations we've made alongside mithril that sustainability category we think will be fine meaning that the network can scale to Millions to billions of users and it's not going to fall in on itself and then finally on self-determination really have to get to a point where not only is there a bureaucracy that is very inclusive for the community that bureaucracy is legitimized by the voting of the community the endowment of the community and this is somewhat implicit but it needs to be made explicit through catalyst so we're well on schedule for all of these things it's been a colossal effort and I'd like to thank all the people involved in it more than 500 people across multiple organizations I've had a say internal and external it's been just a lot just getting cardano done this concept of you know what is required to really make a great impact with Basho Voltaren cleaning up the remainder of things in Gogan and Shelley it was certainly a definitely a work and program and project management and it's really impressive to see what's been done but you know rubber has to hit the road a few other updates as well if you want to see me in person I will be at consensus uh June 6 June 9th to 12th I believe that's going to be held at Austin Texas usually they hold it New York but because of covet I guess they moved it to Texas because it's a little easier to put on big events there and we're going to try to have a a big cardano event there as well and bring a lot of the cardano community especially dap developers the foundations and others a lot more to say on our efforts with the VC side so there many of you know about the C fund and it's trying to take positions and help out people in the D5 ecosystem of cardano we'd also like to replicate that for geography specific funds starting with Africa so not much to say today but we will certainly have more to say in the coming months on that in terms of other updates I science is progressing pretty quickly uh there's going to be a blog post imminently on pipelining and then there's going to be a follow-up blog post in a few weeks probably on input endorsers I was kind of hoping to get the input endorsers blog put out in February but it looks like that's more of a marchy thing but generally speaking it'll kind of outline design principles challenges and why these things are interesting uh and what value they have for scalability and then some papers will come to follow pipelining doesn't have a paper because it's not novel from a scientific viewpoint but input endorsers actually are and I think they bring a lot to the story so I believe it's real good real good to have the community have access to that and this is one of those areas where it's a major Leap Forward in terms of skill and performance we kind of worked our way up to it we the company wrote The Parallel chains paper and then also in introduced the concept of input endorsers in in the original oroborus paper and then if you guys are really astute about our Publications you would have noticed The Ledger Redux paper as well so the Corpus has kind of been moving and stacking and moving and stacking towards a Direction but you have to put a design on the table and this is the first time where we've kind of pulled the threads together for a particular design that doesn't suffer from problems with DDOS attacks and so forth it turns out it's a tricky problem but the good news is we have a pretty good idea of of that and now it's just translating it to engineering speak for the Post fossil hard Forks to roll out um so uh that's going to be a lot of fun to talk about another big event that is imminent so it's coming this month and next month is the launch of Mambo uh now Mamba has been in the works for years uh it's the ethereum classic code base that we took imported modified put obft on top of and now are bringing to cardano and what Mamba is is it's an introduction to the entire sidechain strategy for cardano so many of you know the paper I wrote back in 2016 the why cardano talked about this idea of the cardano settlement layer and then the Cardinal control or computation layer we kind of use both terms in the documentation but basically the idea is that the settlement layer would establish a route of trust be very safe and very effective and built in a way that it can easily spin up these computation layers that would have different computational and accounting models so the biggest difference between us and ethereum is we use extended utxo and plutus ethereum uses solidity and evm it's a counts based model okay so you can try to emulate that on the base Ledger but it adds a lot of unnecessary bloat and complexity and attack vectors so it makes a lot more sense to run a side chain so for years we've been chasing different ideas of how to operationalize that What technological Foundation should it be under we looked a lot at the K framework for example and other ideas but Mamba is really the first time I'd say in the Project's history where we've converged to a point where we have a very crystallized Viewpoint of not only how to connect the chains together how to operate the side chain but then also a generic footprint that if you the user want to create your own side chain how that process works now why this is so exciting for uh stateful operators and people who run the side chains is that it actually creates separate revenue streams if you have side chains they can have their own tokens and tokenomics and if you're a stake pool operator and you're operating not just cardano but also the side chains means that you'll actually get multiple tokens in your Revenue stream for running your consensus node which is real exciting if you think about it so uh there's certainly a lot to come in the next 60 days about that story and uh throughout the year you kind of kind of see the stuff roll out milkometer kind of demonstrated already how a third party would do that and then obviously the Mamba approach is a different way and hopefully the canonical way because it's made in abstraction so many people can follow that future chains will be things like for example uh the Catalyst uh voting Network let's run the German Gander code it'll converge the same type of technology that Mamba has and then it'll be a side chain of cardano and run by cardano and hopefully you the community will launch lots of these things so look for that as well we should have a lot more to say a consensus about it we'll do some presentations and we'll have some of the people who are core parts of that Team come out and kind of play around with it also it means you'll be able to do hackathons in both plutus as well as solidity and evm so it's really up to you and decide what programming model makes the most sense it's uh a Bittersweet thing when you look at all the progress that's made and where we're at it's bittersweet from the perspective that we're almost done with the original vision of all the things one would need for a third generation cryptocurrency and it's a beautiful vision it's been a long road it's been a lot of work you know never in my wildest dreams did I imagine that we would have made so much progress and solve so many amazing problems I and now the next phase when you say things like self-determination self-governance means that it's going to be as much you if not more so than it is anything I could ever come up with so I'm excited to work with you guys in the community I'm excited to see where these open source project structures grow as many you know I'm a huge supporter of floss we have a policy here at i o not to pursue intellectual property we've never despite the fact publishing 130 papers filed for a patent and all our software that I'm aware of is under some form of Open Source license uh if we ever release it in a public repo I mean there was obviously code that we write internally but we always end up open sourcing it at some point so we believe in that but it's one thing to say others can take it and do what they will it's another thing to say let's work with others towards a common goal and build and that requires a different mindset management structure mentality it also requires an acknowledgment that things may be a little tougher when it's just a small group of people or you can get everybody in a room and eat a pizza with them and talk it out you can get things done fast but when you talk about millions of people and trying to give everybody a voice that's a difficult one uh and that's that's something that requires a lot of more advanced governance tools and strategies and my view that is the ultimate USP of cardano uh no matter how smart your founder is or capable they all have their flaws and they all have their benefits but no one is smarter than everyone and no one is more capable than everyone so the better job we do at bringing the community together and giving astrolid governance and operational structure and a good bureaucracy for the open source project that is effective uh the faster we can converge to brilliance now uh there is a cost to that the longer you invest in giving everybody in voice means the slower things come out so there's always a balancing act between agility and speed and inclusivity uh and uh and due diligence of ideas uh so the good news is that we're not doing this alone there's more than 40 Years of history about distributed open source projects in the last 20 years in particular I'd like to believe enormous progress has been made as demonstrated by the fact that the majority of infrastructure that we use in the world is based on open source software uh and despite the fact that people are in great Conflict at times with each other uh there's nothing in the world that I know of that could bring the whole world together quite like open source software so hopefully this week we'll give a lot of clarity we've retained a small Legion of experts we've gotten a lot of consultants in who've done this a lot to kind of help us along and it is really exciting to see the transformation of cardano towards that end and it's also exciting to see merging that with catalyst because you have built in all these amazing voting tools and a treasury system which means that you have the Holy Grail of Open Source you have a place where people feel like they have a voice you have a place where people can actually get things done and you have a place where funding can materialize that is truly objective and pure a lot of Institutions have to be formed moving forward some Community oriented and other ones just to counterbalance actors research institutions execution institutions standards bodies uh some will be embedded with an existing some will be blue ocean and created and there's already a lot of work in the community and creating things like the cardano defy Alliance For example and other alliances are coming that cover core pieces of technology in the cardano ecosystem that in my view are essential for cardano to carry out its mission of becoming the financial operating system for those who don't have one uh those alliances will be community-led and supported of course by us I'm going to be cutting a lot personally grants to these different alliances and I know the foundation has the intention to do the same it's just a question of when and how and the exact strategy behind that which is one of the topics that will come up inevitably um but it's exciting nonetheless to see that the community is rising up and they're getting things done you see it's impossible to keep everybody happy things like protocol parameters uh you know things like k a naught these things there's great debates about what they should be at how things should work for example uh the curve uh pledge uh was it uh sip 007 this is example of great well thought out work however when you measure it it looks like it does reduce the Nakamoto coefficient of cardano but the burden is upon the process to explain why and how and the burden is upon the process to use these great ideas and improve them to a point where they accomplish the same thing one of the things that we've been pushing for for example are objective metrics because we like objectivity here we like inclusive accountability here it's very important to me it's very important to the project in particular you will hear again and again and again that people say we need to be more decentralized but nobody knows what decentralized means what is it what's the measurement is it like a graphics card with 3D Mark can you just like run a benchmark and say okay you're 27 and that's better than 14 or something like that we don't have such a metric and then there also isn't a good metric of throughput I remember Alex chirpinoy with Dan Friedman months ago demonstrating a transaction on Ergo that had 5 000 outputs simulating that transaction in an account style model like ethereum would take many many transactions likely hundreds to thousands and that's one transaction in that system so we look at TPS and we say oh that's a metric but if one can do thousands of transactions in one shot and the other one is very serial TPS doesn't seem like it's a very good metric any more so than clock speed is anymore in a processor as a child in the 90s and 2000s I remember the processor Wars between Intel and AMD and how every week they oh well we're 1.2 gigahertz one we're 1.4 gigahertz they'd always you know find a way to get the clock speed a little higher and we as consumers were trained to think more is better then suddenly you had chips that were 3.4 gigahertz that were slower than chips that were two gigahertz there was more to the story about these things in practice as we've learned now with custom silicon like apple silicon and multi-core processors and special purpose cores for image processing and Ai and so forth well analogously there's war to the story about blockchain performance and what I'm very keen to start studying and understanding are the trade-offs so as we move towards an open source project people have to ask Baseline questions this change this enhancement this strategy what does this ultimately do for the real world performance and throughput of the system as a whole and what does this do with the level of decentralization for the system as a whole every change moving forward it has to be scored against at least those two ideas and the third idea the self-verification uh the inclusive accountability concept does this change compromise your ability as a user to verify things about the system as it stands right now people often ask why is Daedalus so slow well Daedalus is a lot of software it's not a wallet Daedalus is a server it's a database Daedalus is the Cardinal protocol it's running the whole stack you're running a full node so anyone who has a copy of that has a full copy of the Cardinal blockchain and you can see in our infancy already how heavy that can be the point of Technology like mithril is to give you the ability to have the same level of security that that experience has but be able to operate with a like client however will that be ported to all side chains right now under the current side chance we're planning the answer seems to be yes it seems that that technology could work on those changes but what if we take more exotic technology perhaps not and that's something that you the community are going to become increasingly more involved in to the extent that eventually difficult decisions have to be made every single time you do something with the technology that's been built moving forward after this year is done there's ultimately a question of is this going to increase or decrease decentralization is this going to increase or decrease system performance and throughput for the classes of applications we tend to care about and ultimately does this make the system more inclusive or more exclusive more participation less participation more ability to verify transactions that are sent in operate light node infrastructure with full node security or less are we centralizing fundamentally every change has to be scored this way so this is a big item in the open source project that we've been we've been discussing and it's something that we care deeply about to the extent that when we talk about founding institutions some of those institutions embedded in Academia and embedded in standards bodies will be focused on creating objective metrics not just for cardano but for the industry as a whole so we can for the first time ever be able to know where cardano officially Stacks up against ethereum and Solana and EOS and all these other systems we have crude metrics like Nakamoto coefficients for example but they don't accurately reflect the nuances of these protocols and it's about time we add some rigor behind it the good news is this is a problem that's very collaborative in nature and it's something that everybody has an incentive to talk about and frankly we as consumers we need to level up a little bit we can't just demand raw performance at the cost of principles and philosophy we have to demand performance while maintaining our principles and philosophy and we can't just demand a system where we leave people behind I shared Moxie Marlin Spike's article for good reason because a lot of web 3 is actually just web 2 and web 3 clothing highly centralized upon with infrastructure that people like JP Morgan own and the more centralized it is the easier it's going to be for this space to become co-optive we've already seen the politics of personal destruction enter this space we've already seen all kinds of shenanigans with governments around the world doing things both implicitly and explicitly now in China I think you can have jail time for trading cryptocurrencies uh and that's just one of hundreds of examples so it's very important that we ask ourselves what are we actually trying to accomplish that brings me my final point which is the kind of a constitution or a Bill of Rights or some fundamental principles they've always been implicit in why cardano and in the cardano community and Bitcoin has them implicit in the code and if one was asked what are the principles and values of Bitcoin and a lot of people would say things like the monetary policy for example there will only ever be 21 million Bitcoin put their hand on the table no monetary policy changes ever ethereum does change its monetary policy with EIP 1559 and others and more to come and that's fine but that's a philosophical difference between these two ecosystems one of the least developed areas in addition to metrics uh is the idea of meta governance constitutions the idea that blockchains need some form of governing principles that are explicitly there and understood some of you know I invested uh 20 million uh to Carnegie Mellon University to set up a center for formal mathematics one of the things that Center is trying to do and it's somewhat analogous to where we're at as an ecosystem is it's trying to capture mathematics as mathematicians understand it which is built to communicate to other mathematicians and make it machine understandable so take things that were in latex or handwritten things that exist in you know presentation code but not in code that a machine could have an opinion on and get it constructively to a point where a machine could understand it now this is one of the hardest things you can do and it's the first time math has gone for a major rewrite 120 years since David Hilbert and the rest of the gang were running around like girdle and Turing and so forth now analogously there's a question of how much should the ethics the Integrity the soul the intentions of the system be machine understandable because if their machine understandable you can then build protocols that can actually operate on the intent and embed them as kind of a regulator of the system for all smart contracts this comes up a lot in the Privacy space people want confidentiality and privacy but at the same time they don't really like the consequences of confidentiality privacy in certain areas so while we would love to see uh dissidents in Russia who are protesting the war in Ukraine have a system that gives them the ability to freely associate and get funding and be able to express themselves and resist the government at the same time many people wouldn't like that same set of tools being used for child sex trafficking or terrorist financing you see same technology so governance of these systems is very important and you can't just trust a government because if you trust the United States for example the same back doors the same process will inevitably be used by Russia or Iran or another government China you see so these are complicated things and the level of machine understandability of the ethics of the system the intent of the system are very important cardano is right up there with all of the Best in Class smart Contracting systems as the expressivity of the system grows and as we add side chains every person who has something becomes a subset of cardano which effectively means that cardano will eventually have more capabilities in my view than any other cryptocurrency because we can like the Borg just absorb their technology over time when we have all of that because we have all these capabilities millions of people will come in and use this technology in different ways some ways good some ways not so good many people ask me where did the name cardano come from it was geralamo cardano now I picked him for good reason because he wasn't a good person but he wasn't a bad person he was a nuanced person of the Italian Renaissance brilliant mathematician he was a doctor also a complete scoundrel and he invented pieces of probability theory for gambling uh he was the Pope's private physician but also excommunicated from the church it was a very interesting fellow and I felt that was an appropriate name for cryptocurrency sometimes cryptocurrencies are bad sometimes cryptocurrencies are good and our in our love and rush to embrace this new technology we must be intellectually honest and wise enough to acknowledge the times that they are bad the point of regulating structures are to figure out how do you blunt that and we don't need a government or a regulator to do that we can use the very same things that make a blockchain a trusted custodian things like smart contracts and so forth so the meta point of this governance experiment as we move into this complete open source project throughout this year and build all these institutions is a deep conversation about the Bill of Rights of cardano the Constitution of cardano the fundamental things that are difficult or damn near impossible to change and making sure that those are established well and they're machine understandable to the extent where cardano itself can then enforce that as people attempt to change it and update it for the future this is uh probably the most ambitious part and most dangerous part of the cardano project we go from writing papers in science uh to things like real hard engineering to unsolved problems that may never fully be solved there is no government in the world people are universally happy with there is no policy or person so beloved that it is considered Beyond reproach humans like diversity which is why we have many languages many cultures many religions and it's not going to change anytime soon so no matter what we end up converging to some people won't be happy but if we do a good job at least those people will be heard and still have a voice and still have a say and probably can still use the technology of cardano for the things that they care about that's the great challenge before us so it's been uh it's been a hell of a ride and that's why it's so bittersweet you know everything changes and you get to make sequels but it's never quite the same as the original movie and that's okay and I know that we can get this done though because I got all you and there's a lot of really brilliant people in this community we've built a relationship over the last six years I'm not never going to stop the amas I'm never going to stop broadcasting live from warm sunny Colorado sometimes other places hell I might even go to space one of these days we got too many people that are in those circles for them not to sell me a ticket on one of those Rockets uh but despite all the shenanigans and the ups and downs and the craziness and uh just the The Daily Grind what makes this job so special and what makes everything so special is the fact that I really do get to work with the best people and we're all on a mission together we ultimately at this company want to improve the systems of the world for everyone everywhere it's what we've always tried to set out to do come October I'm going back to Bermuda many of you got on this boat either with the Whiteboard video in 2017 or the Ted Talk from 2014 that I did that Ted Talk in 2014 I made a lot of commitments and Promises I wrote a check that I didn't quite have the cash the the money to cash I said this technology is going to go change the developing world and bring economic identity to everybody eight years later when we look back at all of this it is really remarkable and amazing that it looks like we can actually cash that check now the technology is evolving to the point where people in the developing world can live completely within the crypto ecosystem don't believe me look at El Salvador and experiment they're running an enormous progress has been made in Southeast Asia and in Africa the third largest adopter of Bitcoin and cryptocurrency is Nigeria in the world that's just eight years it went from nothing to that and it's going to be good to go back and show it like what Paul halmos used to say tell them what you're going to do do it and tell them what you did and so in October my hope is to be able to show you what we did and hopefully inspired the Next Generation to take it even further than we ever could and really build up a great stack and I believe if we accomplish that and I believe if we get there our best days are ahead of us you know at the end of the day this is the technology of freedom it always has been and it's the technology that puts you back in control of your life for Better or For Worse there are so many people running around the world who are cynical and pessimistic and love tearing people down or telling you what you can't do or who you are and what your place in life is I'd like to believe you get the decision about that if you want to Outsource stuff if you want to trust others go ahead it's your decision but at the very least shouldn't you have a say in it in all things the way you vote the money in your pocket your future that to me feels like freedom and for that to work you need tools and systems and institutions that agree with that something that's Disturbed me more than anything else of the last uh 13 years from the foundations of cryptocurrency and before to today is it seems like we're moving in the opposite direction as a collective Society every day that goes by we seem to lose a little bit more of our self-sovereignty a little bit more of a say in the world as a whole I and cynicism is dialed up to the maximum saying well that's the inevitable decline that's the entropy of society this is just the way that the world is going to work now deal with it I don't want to believe that I don't want to believe that the end result of humanity is going to be controlled by the few to manage the evils of the many I want to believe it's the many working together in a harmonious Society without needing the few if we're going to get there we need to demonstrate that and this is the next challenge for us as an ecosystem we've gotten as far as we can go with the tools people and vision of the few and as that that gets closed up and we have great commercial comparability and sustainability and you'll see all the magic of cardano There's real Brilliance there and it'll kick the crap out of the people who've always kicked us when we're down and said we can't and that'll be satisfying but the real challenge is how do we get to the next level which is us working together the real challenge is how do we build a global governance system how do we reinvent certain things that need to be reinvented new institutions built with new principles it's a little terrifying it's real hard in the next few years this is going to be the struggle however if we solve it for cardano we solve it for every organization and government in the world and you start realizing you don't need Kings you don't need presidents you don't need CEOs you don't need people at the top we can do it right here at the bottom that's a revolutionary idea but at least America used to be in the business of revolutionary ideas that's where we started from uh sometimes too much and so uh keeping up with my Kinsmen and the history of my country I'd like to add that idea to the pyre but what's so cool about it by definition is self-determination means that it's as much your choice as it is mine and you have to decide if that's as ambitious as we want to be or maybe less so or maybe more so who knows cardano's yours and that's a good thing so I hope uh I hope these updates uh give you guys a little bit of view of course I'll add some more after all the workshops are done and again we'll see you guys at consensus and maybe some of you guys in Bermuda uh and there's going to be a lot of real cool things this year got the fossil hard fork in June and then we have another one in October a lot of real cool Tech coming online we see amazing progress in any every single place you look from tvl to adapt development the numbers look phenomenal adoption chain congestion is a good thing right now you know people say we're a ghost chain I often say it's a pretty constipated ghost then um and then obviously we get invited all the big events and we get to meet all the people hard days hard weeks but we get through it we do all right everybody thank you so much for listening I'll see you guys soon cheers
