hi everybody this is charles hoskinson broadcasting live from warm sunny colorado always warm always sunny sometimes colorado today is june 30th 2022 lovely day lots of stuff going on markets are of course reflecting the macro uh and uh i guess crypto's in a bear market so i hope everybody's having fun but you know bear markets are great from a perspective of building as i say you have build-a-bear you know bulls all about growth and adoption and bears are all about getting things done so it is good to return to the time of getting things done and let's talk about what's going on with cardano for probably the rest of the year and so i'll share my screen a little bit share screen there we go okay so as you guys know uh vossel is currently underway uh we forked the test net so the test net as of i believe july 3rd is going to be running version 1.3.5 and we might do a 0.1 because there's a few extra things to clean up now that's going to run all the way to end of july and then you guys finally get fossil it's been a hell of a time testing it it's actually as i've mentioned the most complicated hard fork that's ever been done for cardano but that's okay then there's this question of well what next and really there there are four development tracks that are running concurrently so one track is the shelly cleanup uh and the shelley cleanup are things like partial delegation proxy keys no we haven't forgot about them i yell a lot about these types of things as well as peer-to-peer and genesis so there's a collection of stuff that is quantified we know about it people are working on it and it's hard it's just for getting it done but it's uh a cleanup then there's the gogan stuff vossel is the first gogan uh cleanup hard fork so basically added a bunch of new features and capabilities now on the gogan stuff there's a lot more things like for example we need to kind of get something better than the pab documentation more syntactic sugar optimizations of the language and obviously a lot of cool things that the community's been requesting but actually vassal is covering a big chunk of it but there's a lot of gogan stuff that remains then there is basho stuff now basho really breaks down to side chains mithril and input endorsers okay so mithril is under construction that team is a two-week release cadence and they're making great progress they're currently in sprint seven i think six or seven uh and they're making progress with it now side chains uh we have paper coming out i believe around augustis that's going to explain how we upgrade obft to do quorum sampling and run side chains and then kind of some of the bridge discussion and so forth but that's uh that's looking pretty good and then throughout the summer we're working on the input endorsers official paper and specification and that's going to rely heavily on mithril and extended utxo but the long and short is that these three things together alongside the work stream that we're doing with hydra which is also underway is a phenomenal starting point thank you is a phenomenal starting point for true scalability because you get the interoperability and scalability the side chain's idea in mithril is really the foundation of interoperability hydra is really an adapt accelerator and also allows to backfill in the micro transactions use case and then input endorsers basically gets rid of any consensus bottleneck in the system everything is network constraint uh there on out so it's super high tps so all of this is actually very well in hand there's a large team on hydra team on mithril team on side chains and an r d applied research team that's on input endorsers with a spec coming then we have number four which is voltaire now voltaire is interesting we have a lot of programs like catalyst and catalyst has gotten to a point where there's just about to be a massive surge in voting because there's going to be the voting center okay we're going to have things like we already have it d reps and then there's obviously how do you link catalyst to mainnet because right now it's running as a kind of a permission side chain and it needs to be linked so it overlaps with some of the boss show agenda uh and then there's the question of okay protocol governance and the bureaucracy behind updates all right so protocol governance uh these are things like the initiation of the hard four combinator uh changes to parameters uh these are things like the sip process uh you know there's a lot of other things to think about too when you talk about construction of a protocol and updating of a protocol and these types of things for example treasury management okay so with voltaire the when cardano was started the original intent you had this tripartite structure a mergo cf and ioh k and one would take care of governance one would take care of ecosystem growth and one would take care of technical now there's been lots of back and forth and issues like for example the cf with the michael parsons era was quite challenging uh and you know we can litigate the past and talk about these things but the long and short is that that structure hasn't been perfect and in particular one of the things that i really wanted to see build over the last seven years was this idea of a members based organization that would effectively run the bureaucracy of protocol governance this this was kind of my hope for the cf but the sifton structure in switzerland is is kind of not so good for that so earlier this year we had a long conversation with the cf in a series of workshops and basically long short is how do we move this bureaucracy behind this from this tripartite structure which was always ephemeral to a members-based organization and members are defined by merit and we'll get to that in a second uh and somehow find a good custodian for it so the cf stepped up they hired a guy named dirk and dirk is um a pr kind of a legend of the open source software community he worked with linus tervalds very extensively his co-founder of the linux foundation he kind of gets open source projects much better than i do or anyone else in the ecosystem because he's been just doing it for so long and we spun out i'd say somewhere almost 50 people if you look at all the contractors individuals and other people that are working between the cf and io and they've been working since february basically at the construction of this members-based org and i believe there's going to be an announcement about the specific structure in september but basically this org will have a governance steering committee a technical steering committee and then other committees that are related to things like growth and adoption and then a sip committee etc etc etc and basically these committees will make this decisions about for example roadmap they'll make suggestions for sips and a litany of other things strategy and i say well charles that sounds great but i wasn't consented in this well that's why we want to move to a bicameral model so the bicameral model basically says that the bureaucracy proposes and the ada holder votes so the basic idea is that after the vossel hard fork it's very likely the next hard four combinator will be packaged as a special type of update proposal and we'll write a sip to basically be the standard for that and then it goes to the ada holders and they vote for it and then it gets signed by the sip committee the update keys were connected to these three entities and the intent was always to create a decentralized update system in fact we wrote a paper with the european union with a horizon 2020 grant to kind of explore how to do that and there's a lot of technical complexity in it so kind of a nice halfway house is to create a members-based organization have a sip committee and the committee controls an m of n set of keys but they actually can't sign without approval from the ada holders so they read an update proposal to take it to the aid of holders the ad up holders say we're okay with it and then they can sign the proposal and submit the proposal so then the question is well what do we mean by a merit-based members-based organization merit members base so an mmm org merit members based org well either you pay or you work so either you do something or you contribute some funding or both pretty simple pretty easy to understand so you kind of have to allow a set of people in the ecosystem to grow and evolve to a point where those people are capable of participating so that's effectively what the d reps are and what the spos are and what the dap developers are if you think about it alongside people take a community role so we have the ambassador program we have about a thousand plus projects here we have three thousand stake pool operators and then obviously a large core of drafts are forming these are not pairwise disjoint sets there's an overlap and that's a good thing but if you look at that set that's a very large group of people thousands and thousands of people floating around uh and the basic idea is to say okay well take the next step join a members-based organization there's going to be a lot of committees and some will be on the governance steering committee technical steering committees growth and adoption committees etc etc these standards committees these types of things and actually get involved in the governance process you say but charles how how will you set up committees that are effective well that's cf hired this guy the work that he did at the linux foundation runs over 140 plus projects from kubernetes to node to cryptocurrency projects like fabric so the entire hyperledger group uh even an ethereum node called bessu so there's a lot of decentralization there and there's a lot of organizational wisdom in these types of models and that's basically what we're pursuing in this end in september we can have the first setup between now and september in july and august we're going to set up a website for sign ups so whoever wants to be part of this members based organization in some capacity can sign up and then either you pay the membership fee to the organization or you contribute some sort of work to the organization or both that's one side of it another side is we need to get more people working for cardano so you may have noticed that seba from dc spark he's now a sip editor and his role is covered completely by the cardinal blockchain itself so i told harris over at the catalyst project i said you know i'd really like to see three to five more community members become sip editors who are paid for completely by the card auto blockchain i'd also like to see 10 to 15 full-time engineers work directly for cardano paid for by cardano so this will be a big pillar of fund 10 hopefully and i'd love to see you guys propose because it's time that we actually get a complete group of people that work for cardano that's the entire point of the system with this members-based organization it's actually pretty easy to do that too because the members can just directly get funded from catalyst after it's been bootstrapped but it'd be nice to have individuals in addition to companies actually do that it's a nice checks and balance so it's just something to think about if you have the technical abilities uh to write code and or if you have the ability to read sips and be part of that process uh jobs are opening up it's gonna be something that comes very soon before the end of the year but yeah i hope this helps a little bit you know i guess what i'm trying to convey is that it's a lot of cleanup there's still some innovation left to do that it's going to bleed into 2023 and that's fun and exciting but really we've gotten to the juncture where we're just about to have a major inflection point where this structure is gone and we're moving to fundamentally different structures there's been an enormous amount of learning along the way um i'd have done things very very very differently if i got a do-over as a project founder of how to put things together and how to think about things but you know to be fair we had to live seven years of history and you know we had to go through a lot of events to to get to this point and the fact that we're now imminently at the existence of a massive members based organization uh that's going to be able to provide proper representation of the community for road map and strategy and these types of things and has a consent component from voting is pretty exciting to me so a lot of good people are working on this and i can't wait to make the announcement september um i'll be at uh some event for that can't say anything about it right now i signed a mutual nda with the cf uh but a lot of good things are happening there uh some house cleaning in terms of like the update committee these types of things you know has to be done uh and that's always been the case and you know there's also house cleaning that needs to be done with other stuff like uh the proxy keys and partial delegation and so forth uh we still are number one for github commits as an ecosystem and actually the uh push out of vassal even though it's so complicated has been pretty seamless and we've received as an ecosystem phenomenal phenomenal advice and collaborations with the community as a whole the reality is cardano is not controlled by a person or even an entity or collection of entities it truly is one of the most decentralized of all cryptocurrencies in this respect because it has this gigantic super smart community that's working towards an end and some legacy has to be removed and cleaned up some training wheels have to be clipped off and sometimes it takes a little longer than you think but there's an intent to do it and the community is going to make sure that this gets done but we need a north star and i thought a lot about this because you think about legacy as you kind of figure finish out things and you just go back to your farm so what is our north star our guiding light behind these types of things well the north star is this concept of decentralization okay that's one of them there are many north stars but this is the big one that i think we can tackle this year so we're setting up something called the edinburgh decentralization index it's going to be based at university of edinburgh and obviously it's going to measure decentralization of cryptocurrencies so throughout the summer some papers are going to be written a lab is going to be set up that's actually governed by the university of edinburgh and the team at the lab is going to start with bitcoin and then move on to ethereum and then move on to cardano and keep going and actually to create an index well we don't know where we're going to fall on this index some of it might be great some of it may not be so great it'll aggregate together and we'll get a score what's cool is then the government steering committee of the open source program can make an agenda and strategy of how do we improve that how do we make that better so you really have to have a collection of north stars you have to have a collection a constellation of stars that allow you to steer the project in a particular direction some of that is decentralization some of that is resilience some of that is effectiveness and cost some of that is use and utility and we did our best with the initial road map to try to balance all of these different types of concerns it didn't make everybody happy all the time for example being slow to market with smart contracts meant that cardano missed a lot of the defy stuff that's happening today and in 2021 people thought we were horrible and idiots and we got brutally criticized and they said oh look look how stupid these guys are and how ineffective they are now that seems to actually be a benefit as the d5 markets come collapsing down and exponential losses are occurring we just simply didn't play in those waters and so we didn't get bitten by those sharks something to think about but that was out of an abundance of caution could have had smart contracts as an ecosystem probably a little earlier but there wouldn't have been as much careful thought that was put into the development model and ultimately we would also be suffering from the many many hacks protocol design flaws and other problems that the cryptocurrency ecosystem is now working its way through it may actually destroy several major cryptocurrencies has already destroyed luna and it's destroyed celsius and more to come as exponential risk continues to scale so maps are hard and you have to kind of wait for the right people to materialize and now the time is there are d reps there's a huge amount of spos in fact uh community is going to have a a big event in colorado the rare bloom event i had nothing to do with putting it on it might have more than a thousand or two thousand people that's pretty crazy if you think about it community events just materializing out of thin air happened in brazil happening all across the world it's pretty special in that respect so everybody's ready for it now it would have been nice to have a members base org five years ago that was the intent and chairman parsons decided to focus more on his own needs than the community needs but a resilient ecosystem should have the ability to course correct and get rid of those bad actors which is what happened uh and uh it did unfortunately leave us with a legacy structure that was never going to be fit for purpose to be members based so i knew one had to be constructed and embedded inside a structure that made sense slows it down a little bit but the intent is still there and that means you can move all kinds of things over and that's what's happening now if you want to be part of it the website's coming sign ups are coming and we'd love to have you there if not well vote your ada gives you a voice gives you a vote and moving forward it's going to become more and more important and you have to spend more and more time we'll do our best to try to provide objective guiding stars like decentralization it's a foundational one but then there's also others that need to be thought about carefully and that's moving on its way overall it's a pretty remarkable thing if you think about it it started as nothing just an idea and we've all got on this journey together if you think about it from an idea in 2015 on a whiteboard to this technological leviathan cardano has really been the moon landing of the blockchain ecosystem if you think about it you know we wrote more than a hundred papers uh so much code brought together a global movement some of the brightest people in the world uh have worked on this project or continue to work on this project and we paid homage to great people along the way like voltaire and basho and we try to stay true to some basic concepts and principles about a desire to increasingly decentralize and build up a group of people that are going to be here for a long time i believe we have the strongest community of any cryptocurrency and we'll continue to have the strongest community because people really get the intention and where we're going and yeah it's been difficult at times it was a hell of a job getting shelley out that was very sad panda uh there was a lot of work there and gogan hasn't exactly been the the easiest of things i i really wish we could have launched with vossle instead of uh where we were at in september with alonso but you guys stuck to it and that didn't stop people from building all kinds of cool things like cornucopias and wing riders and min swap and muesli swap and sunday swap and all the other things liquid and orbits and so forth uh that's uh that's pretty impressive if you think about it uh you know and with vossel more will come and a lot of advice will come down the pipe about things that need to improve be easier libraries need to be built documentation needs to be done there are people here to do this from now more than 15 companies just on the core side and the fact that we can roll all of them over into a members-based organization is pretty impressive so the second half of the year is a year time for reflection it's a time for debate it's a time for cleanup it's a time to really dig deep and get everybody in the right place that's what we're going to be working on real hard and with vossel i think in pipelining with vasel i think there's enough headroom there for you guys to go and build lots of really interesting things on cardano and then i can get to the business of realfi which is what i've always wanted to do i built cardano so that i could go and bank the unbanked and get three billion people to have a financial operating system that they don't have right now that's my personal mission it doesn't have to be yours and cardano's an open protocol anybody can use it any way that they want to use it i built it for that purpose and i'd like to spend a big chunk of my life pursuing that but i need a good foundation for it and that's what we're doing right now we're finalizing those last elements of the foundation as an ecosystem it's a great time to do it bear markets are where everybody gets much more collaborative more more people are willing to join and work with you and people actually pick up the phone bull markets are crazy poaching is at an all-time high people are very hostile extremely negative languages is used and inhuman things happen and that's okay i mean this is just the nature of the cycles i've been through i think six of them now so depending on how you count bulls and bears in the market so i'm used to it i'll never quite get used to the arrogant maximalism and brutal comments that people make or the betrayals but i have gotten used to the fact that people behave differently when economic incentives are aligned that way it is what it is and you accept it one thing that's remained constant though bull or bear the cardano community is here to stay and each and every one of you continue whenever asked to step up to the occasion and get it done so come july and august website's coming out and just kind of we'll have a sketch out of different things that need doing and if you want to be part of the members based org uh we'll go ahead and sign up and then we can roll you over in september make an announcement of the name of that how that's going to work the legal structures behind it a lot of little things that need to be done like legal wrappers need to be put together and a bunch of little things like that so it's a lot of cleanup as i mentioned and post fossil on the code side an enormous amount of cleanup technical debt reduction re-architecture and then obviously we're pushing for a lot of backlog to kind of work its way through all right everybody until next time thank you so much and i'll talk to you all soon cheers
