hi everyone this is Charles hoskinson broadcasting live from warm sunny Colorado always warm Always Sunny sometimes Colorado back in Colorado been doing a little bit of traveling to undisclosed locations for undisclosed reasons but you know maybe one of these days I can talk about it it'll be fun we're under NDA now but uh anyway I just wanted to make a quick video about uh a paper that I've been waiting for for a very long time so for the last three years uh in this organization we've been talking a lot about stable coins so we've looked at algorithmically backstable coins uh asset backed stable coins and cbdcs and we've had a heck of a lot of fun uh talking to many different stakeholders running experiments and analyzing designs and the leader of that work group is Bruno paleo he's a computational logician with a very very strong background in programming and a strong background and also a rigorous math stuff so Bruno is a is a little bit of everything and he's he's kind of a genius so whenever we put him on anything he not only does it he does it like at the most most extreme levels possible he'll write the paper but then he'll also work with others or directly prove properties of the paper with a dependently type language in this case Isabel and then it'll actually usually do an implementation in Scala or some other programming language on some form of platform so earlier this year there was an idea of taking some of the experiments that were conducted on Ergo and actually you know shooting for the fences and going for an algorithmic stable coin that we could Deploy on cardano and I said let's try it so we had a lot of discussions went back and forth about certain things that would make sense uh things that keep me up tonight and also how we would use this in a broader agenda for stable fees and a protocol level stable coin I think Tara and a few others have done that actually that's how I started my career I I in in the industry with bit shares there was this idea of a bit share but then there was bitusd and there was a relationship between the derivative and the primary asset that if it was done correctly would allow you to have one side with volatility and one side was stability and these things could be traded so anyway that was 2013 2014 and bitshares ultimately was not a big commercial success but Dan went on to take it and do his things and I was always curious about the relationship between the two and maker Dow also uh also entered that conversation and I think the people behind that were actually from the here space before they went to ethereum if memory serves but it's been a long time it's been like eight nine years since those things came through uh so let me show you a little bit of the paper um share and the paper is nearly done there's a little bit left for it just have to bring it up here okay all right so here we go and it's called The Jet a formally verified crypto-backed algorithmic stable coin uh Bruno always publishes these things that are a pseudonym although I think I just doxed them uh Demetrios and I have Global researcher based in Ukraine uh Jean Federer is actually in our formal methods group and Javier Works in our formal methods group and is associated with atix we implemented this on uh open star and we used a lot of things we learned from Alex's work on scorex and we've had a lot of back and forth conversations with Nico over at dcspark and Robert kornacki over at Ergo and there's a working implementation of a predecessor of this an ergo script for the Ergo blockchain and of course Alan mcsherry is the creator of the open star framework Allen's in our commercial group in open Stars a little framework we use in the commercial group for various things uh yeah Mueller works in the plutus team it's a bear of a paper and that's actually the context of the tweet that I I posted said been busy because it's 60 pages long and as you go into it there's all kinds of of things that start coming up so this stability properties and there's all kinds of theorems about stability monotonically increasing Equity per Reserve coin and there's a lot of proofs here and then we extend the model and you just keep going and going and this particular version there's a few sections that need a little bit more and then actually there was proper model checking that was done and there's a lot of explanations of that and you'll see actually some of the things about the data types if it's state specification systems and improvements from falsified properties reserved draining [Music] now what makes this paper very unique a lot of our papers do have all this heavy math and it is very time consuming to actually keep all of this your head at least for me maybe you guys are smarter probably are but for me whenever I see walls and walls of math it's like okay I need to reserve some time and spend some time thinking about it you actually see some of the algorithms here but as we go down what makes this paper very unique is the Isabel code associated with the paper so the Isabel high level higher order logic formalization there's actual Pros here you can see all the Isabel code pages and pages and pages and pages and pages of it so a lot of verification was done here and uh you know that uh that key is just a truly remarkable thing uh and it's very unique uh for papers of this nature so what are we going to do with it well as many of you know we're in the Alonzo white era uh the hard Fork happened yesterday I believe I was traveling so I missed it I was in the air when it happened uh but um basically now we're running that for a period of time a few weeks probably uh and then we're you know moving towards the Hartford Commodore event to upgrade cardano itself so if you watch the 360 episode at the end of the month uh you know the dates and timelines I think will be significantly uh more accurate than the ones that have come to the past but uh it looks pretty good for August September for the hfc event there are no delays yet in the wallet back-end integration which is slated for delivery at the end of this month the plutus application back end there's two integration points one to the node one to the wallet back end the note integration is slated for delivery still towards the end of this month and the wallet backend integration is a little bit later and then there's the data list integration so as soon as the wallet backend is integrated with the Alonso node and as we go through the Alonso white agenda we'll discover bugs and defects we can begin data list integration and at that stage we can do an hfc event application back-end integration to the wallet is software it's not Ledger rules or other things that would require a hard Fork to finish and that's about development experience and that can come a little bit later and we'll have a lot to say about estimated timelines on that looks right now like September 10th for that component so we're getting really close to Alonso you can run plutus code we've already had 1500 plutus Pioneers go through the program there's the second cohort on way and applications are being built written and tested so it's here guys it's not a hypothetical and what's extraordinary to me is both the prediction markets and Twitter I seem to believe that like everything is made up but actual Blues code is running so uh it's just one of those cases where reality uh doesn't match perception of reality and that's okay it's going to be a really fun time brutally mocking them uh as as we ship now one of the things we're doing with this stable coin paper is after we clean it up a little bit more because it's so involved and there's so many moving pieces to it that have to be carefully thought about is actually implementing in plutus as a plutus native application so we have a vendor in mind that we think would be perfect for this work and we're going to work closely with them uh to uh to talk about a release commensurate or at least a prototype commiserate like we did with the Ergo script implementation of the predecessor version with the launch of um the Gogan Summit so we'll have uh we'll have a nice uh we'll have a nice uh discussion about that at a later date but uh we're starting to see a great acceleration of research and research to commercialization which we haven't seen before this particular paper is going to be a little easier because there's some reference work the authors of the paper are mostly engineers and then researchers instead of researchers pretending to be Engineers so that means that it was written in a way and the algorithms are designed in a way that are quickly portable to code and there's already a capacity for code extraction from the Isabel formalization so given these facts uh next thing for Bruno after we finish the cleanup is to explain how this works I've asked him to make an explainer video inspired by the two-minute papers YouTube channel that explains AI papers uh and hopefully we'll be able to get a concise simple way of talking about the design of the Jed uh and if that's the case I think people be pretty happy about that all things considered though it's uh really fun to see things coming along it's amazing to me that there's overwhelming amounts of criticism and hate coming out right now more so than I've seen before uh there's criticism with like certainty that every single thing we're saying is a lie I and there's just no trust or benefit of the doubt or even a modicum of respect and dignity when I for example post been busy people on Twitter were applying that I was asserting that I wrote the paper or was involved in the actual writing of the past the paper uh no I don't have time for these things and this is not my area of expertise it just simply you know how many 60 page papers with Isabel code and dense math Pros have you guys read recently this is one I read actually when I didn't have time to read it but I chose to because it's something that's been in my career for a long time and I'm very interested in the outcome and the end result uh of this it's an essential component for our mission as a company our vision as a company is to improve the systems of the world for everyone everywhere economic identity and stable Financial marketplaces are a big component of that you can't get anywhere if your instrument that you use for insurance lending pricing payments and Merchants is unstable the first thing that happens when a sovereign currency dies is the economy falls apart and so it's very important that the instrument that you use to transact is stable the fact that we have a generic design where you could take Bitcoin or Ada or some asset that's volatile put it into a system and that can produce another asset that significantly less volatile that's fungible and tradable is an amazing thing and the fact this design is now actually uh captured in a very rigorous sense and we have a high degree of assurance that it's better than its predecessors and it won't suffer from some existential uh bug is is an amazing thing as well this is a milestone for the mission of the company the vision of the company and the types of products that we need for cardano to grow and succeed as it enters the developing world and somehow that's missing and lost on some people I don't know you know I I think in many ways IO Global we're transcending the cryptocurrency space I don't really feel deeply connected or part of it anymore we regularly talk to nation states Fortune 500 companies universities and real people and we talk to Everyday People and we're thinking a lot about b2c how to build consumer products for everyday people we don't think a lot about crypto specific things and my desire to attend crypto specific conferences is greatly diminished also we look at the dialogue of people in the cryptocurrency space the things they discuss talk about and think about and there's a lot of noise to signal in those ratios El Salvador for example was a nation that declared to the world that it had the desire to accept cryptocurrency as legal tender this was an industry-wide event and instead of the industry coming together and saying how can we collectively work together as one industry blockchain at all to figure out a way to make that successful for the industry we had people go and tell the president of the nation I'm here to protect you from coins there are six million people in that country 70 of which are under banked or unbanked there are gangs and other problems in that country if a solution was to fail in its implementation those people will suffer terribly and the country will enter into a depression and likely suffer geopolitical consequences those people will become the victims of violence and those people's lives will be even greater compromised and that's just one of dozens of examples of places where our industry has lacked maturity dignity and frankly any semblance of reasonableness if your goal is to buy something and for it to increase in value and that's the only reason you're here and you view this as a some Zero game where you have to trash everyone else until you cash out and then go buy something to show how smart you are and your ability to make money I have absolutely no desire to talk to you interact with you or even acknowledge that you exist as a human being if your goal is to think about the systems that run the world and those how those systems are going to be used over the next 25 to 50 years to make the world a better place for everyone everywhere then we're kindred spirits and I don't care the technology that you use as long as that technology is open transparent fair auditable and universally accessible that's just where we're at as a company and I'd like to believe that there are some members of our industry that feel the same way unfortunately they're becoming fewer and fewer it seems in the cryptocurrency space but the good news is the cryptocurrency space at least the main actors aren't necessary as this technology gets adopted there's already many others that aren't asking for permission and following ethos and simply taking the technology modifying it and evolving it to the next level so anyway that's where I'm at as you can imagine a little tired haven't really gotten a break in a very long time that's okay smart contracts will get done the prediction Market that I referenced this morning that's at 70 odds of it not getting done by October 1st saying they'd do a fifty thousand dollar bet just as another example of the attitude and behavior of this space it is what it is so I look forward to the Cardinal 360 episode at the end of the month I look forward to continued success thank you so much all those participating in Alonzo white and building and learning and growing thank you so much those who are in the police Pioneer program for those of us who are our partners working in digital transformations of their countries and their companies thank you so much for your trust and the hard work that you do and to those of you in the industry grow up we now have a seat at the table and what we do with it is what we decide I'd like to see the industry succeed and to those who'd like to read the the Jed paper we'll have it out in a few days probably maybe next week depending upon how long it takes for the Eternal review and I'd love to see some people implement it will certainly do our own
