hi this is charles hoskinson broadcasting live from warm sunny colorado currently snowing but it's always warm and sunny sometimes colorado uh the reason why i'm making this video is that there's been a huge amount of intellectual dishonesty i think on reddit twitter and other channels especially coming from ethereum maximalists or other actors in the space about the nature of dapps on cardano um at the moment cardano is in the middle of its upgrade phase getting to goku complete we said it's going to be three stages metadata tokens and then full smart contract support on the pluto side and over time the ecosystem will build out and will wire on side chains and other such things and we have this huge ecosystem coinbase just listed us how about that uh and there's dozens of partners around there's hundreds of entities that want to work with us and there are despite the fact that we don't have full programmability at the base layer already applications like shoe authentication on new balance or authentication of cattle with beef chain just using metadata features of cardano yet they say what are the apps running on cardano that's like saying you're opening a nightclub you haven't opened it yet and you say well how come no one's in your nightclubs like we're still building it uh and as if smart contracts come and there'll be no demand we're overwhelmingly subscribed at the moment our company has no more capacity to surface deal flow that comes in for cardone people come to me unless it's a super high value deal and some have we've jumped off the queue we actually say no and turn them down because we don't have the operating capacity to handle that much deal flow and we had a mergo or someone else if you look at catalyst there are six nft marketplaces seeking funding there are stable coins seeking funding some of which have already been deployed for example on ergo oracle seeking funding dex is seeking funding at this moment and we're not even at that stage yet uh so we're rapidly moving and there's an overwhelming demand in a million person ecosystem with a fanatical level of enthusiasm and loyalty and passion and despite all of that the intellectual dishonesty is it's a ghost chain there's nothing there so we tweeted out an ecosystem map just to give you a sense of a small subset of the totality of the people working and doing things with us it was it's very easy because we've already done it to launch smart contracts for example were ethereum core developers with the ethereum classic client it worked sorry the stream died so if i wanted to tomorrow it would be trivial to have ethereum based smart contracts and port things over to cardano and you know where that leaves us as an ecosystem sixty dollar transaction fees hundred dollar transaction fees uh yield farming useless divide uh nfts selling for hundreds of thousands of dollars that are meaningless and pointless there's nothing real substantive sustainable or long-term viable in that economic model which is why vitalik buterin is moving from fs2 to s from f1 to f2 now you tell me how many f2 applications are there how many things are running on that network in production at scale at the moment although don't worry some future piece of technology will magically materialize and save the day but yet we're not given the luxury of doing it right only they are with the network effect that they get in a very ephemeral sense as the first mover the dap ecosystem is not healthy the vast majority of dabs run mostly off chain are mostly centralized are not in any sense governed in a way that is truly decentralized in fact the vast majority of adapt logic is in the hands of a very few small group of actors there's also a pareto principle there's 3800 apps that have been deployed best of my knowledge on ethereum the vast majority of them are ghost apps there's no use or utility with them only a few hundred of those applications actually consume the majority of the transaction volume on ethereum you look at last year only 31 of new dapps were built on ethereum the other 69 were not and that trend will continue this year if anything for cost there are very real problems with this that model and if the goal is just rampant speculation ponzi schemes no real use in utility and no ability to scale to millions to billions of people i want nothing to do with that if the goal is to scale to millions and billions of people and change the world and actually build things that people use long term and have sustainable economics okay sign me up that makes sense and here's the reality no one in the industry has built that yet we're all chasing it we're all proposing models for how to do these things the very nature of gas has to be revisited it is difficult to be a store of value and have a deflationary monetary volatile policy in a staking whole culture at the same time try to have predictable pricing for applications like amazon does and other actors do so there's a lot of discussions about how to accommodate that a reasonable way and there's a lot of really good people wake up every day and think about these things and what's extraordinary to me is that there's just no understanding of this reality amongst many people who occupy the cryptocurrency space bitcoin has no dapps on it it's the most valuable piece of real estate in cryptocurrency lab there you go so you tell me there is no correlation at the moment between gap use and utility and the actual pricing of these assets we still live in speculation land i'm proud of pluto's i'm proud of extended uptxl i'm proud of the models that we're bringing out i'm proud of how we're approaching side chains i'm proud of how we think about computation i'm proud of the fact that there's this gargantuan ecosystem that's waiting for us to get to that point where smart contracts come on the chain and everything is transparent out in the open if you go to cardano update you can see where number one for github commits you can see a huge amount of progress day by day towards that benchmark meaning we're almost there so after we get there look at three months to six months merry hard fork happens 1300 tokens have already been issued on cardano as predicted huge amount of effort will probably close out the year with ten thousand to twenty thousand many of which connected to real projects and interesting use and utility if not more when we launch the metadata standard there's websites you can go to like cardonawall.com that shows you how much use that standard standard has and this is just the beginning and that was pre-infrastructure for prism the identity solution and for pollutants the smart contract stack where's the discussion about that today right now cardano moves as much economic value as ethereum does despite its market cap being five times smaller and despite that our transaction fees are in the thousands of dollars not 25 million dollars when smart contracts launch we will see a gargantuan increase in the amount of value that is transaction moved especially when those multi assets actually are connected to projects in market that are listed and our transaction fees will still stay very low ethereum will be very high because we built the system right and we know exactly where to go to get the system to the next level we know exactly what type of innovation is required and how to scale up that innovation and we know the scientists we need to work with and we know the things that we need to do so it just perplexes me sometimes the the statements that are made and the the outlook and viewpoints that people have because at the end of the day this has nothing to do with vision progress or tangible real life things this has to do with fanboyism and this has to do with financial incentives for everyone else to fail except for the tokens that they hold if this is the totality of our industry our industry will fail i'm completely convinced of that there is no reason for rational human beings to join the cryptocurrency space if our actual goal is to build things that change people's lives that are useful and will be used for decades to come we must do things differently we have to get rid of maximalism we have to actually listen to what people are saying we told every single person up front what we're going to do how we're going to do it we showed them doing it month by month update by update video by video and it's all there and then somehow people come and they get surprised when we're doing it it's because they're not listening they choose not to listen and they just invent parallel realities and they say things uh that are convenient and fun to them so anyway tune in to the cardinal 360 episode but at the end of this month i think people will be very happy with that very happy with the progress and i will remind you that catalyst is here fund 3 is here fund 4 is coming and hundreds of dapps and ecosystems will be funded this year from that that framework and if you are a developer and you want to write polluted code sign up for the plutus pioneers program if you are a developer in the ethereum space and you want to deploy ethereum like code on cardano start using our devnets we already have an evm devnet and we have the yellow devnet if you are a developer from a mainstream programming language in the coming months we'll have much to say about how do you get on over and this year we will see dozens or hundreds of high utility high impact very useful applications deployed on cardone it's just that simple we will also see dozens if not hundreds of high utility high impact tokens issued on cardona with our native multi-asset standard that's just a fact that's what's going to happen the industry will continue moving the goal post if people come from the ethereum maximalist side or other ecosystems that are doing it then it'll be some other vanity metric it'll be some other thing that exists some other lie that gets told uh and that's what they also do yesterday people on twitter were saying that a cardano experienced a double spend it didn't happen it's just a lie but people went and said it without any accountability at all because that's what they want to do when they run out of things to say they just start making things up and start lying and so forth and it's deeply frustrating and it takes quite a bit of time effort for us to chase these things down and correct the record but it is what it is and that's the burden one bears being in a custodial role of an ecosystem and trying their hardest to manage these things but what really gets me excited is the fact that our community has grown so large that the community for the most part takes care of itself used to be when fud occurred i'd have to get involved iog would have to get involved the foundation would have to get involved but nowadays you guys do more often than not and it used to be when a question was asked we'd have to answer it now more often than not the community answers it and it answers it in a great way and in the coming months as people start writing plutus code and building cardano applications we're going to see a stack exchange we're going to see books we're going to see tutorials we're going to see infrastructure that gets deployed we're going to see people leaving the dumpster fire that is ethereum and coming over to cardano and enjoying for the first time ever a viable path to a real business model that doesn't require policy like economics to sustain itself this is the dream and we're going to get there together we're going to build that together but it does take a little bit of time and patience and it does take a perspective that not everything gets done today because the things we build are supposed to last for decades the things that we're doing are supposed to be based on granite if we do it differently and to me that's just a preposterous economic gain of people rushing to get somewhere so that they can extract as much values they can and there's a greater idiot scenario it makes no sense it's immoral it's unethical and it should be illegal but unfortunately the economics of our industry are like that at the moment that's why homer pepe sells for three hundred thousand dollars that's why certain nfts are selling for six million dollars and seven million dollars it's just a bidding game of inside baseball no better than a boiler room in many cases this is not a magical new real economy it's self dealing and whales trading amongst each other and all kinds of bizarre economics that are perverse to create inflated expectations and inflated prices and every single time that occurs it collapses down it is not sustainable to run peer-to-peer exchanges with sixty dollar fees it is not sustainable to have stable coins that cost you more than the value of the holdings you have of the coin to send them could you imagine a twenty dollar bill to spend it you have to spend thirty dollars forty dollars it's not sustainable it's not real and i'm sorry that's not a viable smart contract model it's a proof of concept that quickly ought to be replaced and that quickly ought to be replaced is more than four years late to market opening up a realm of competitors coming in the avalanches of the al grants the tasos the polka dots and others giving all of us an opportunity to take that market share now we in the cardano space have always taken an approach of broaden the market bring new people in make cardona the first ecosystem these people have been part of others choose to fight over a sub-zero game and try to move some from one part of the pie to another part and okay the combination of both will probably make you successful and different agents within the cardinal ecosystem focus on different things but the things that we have designed and developed we spent years on and thought deeply about and were very confident allow us to get to the levels that we need to get at terms of performance use utility as well as a path to correctness meaning that when applications are constructed they're built well we call that the island we recognize backward compatibility makes sense we call that the pawn and we recognize that the other 25 million developers in the world who aren't blockchain developers should have a path to come into cardano we call that the ocean we are pursuing all three strategies in parallel there is no other project in the cryptocurrency space that is currently doing this and doing it with rigor yela is built with formal methods the kevm is built with formal methods the code is literally extracted from formal semantics with history that has that level of rigor for the design of plutus we have an agnes specification for it we didn't just write a [ __ ] programming language and say okay good luck everybody like solidity did we actually did it like a real computer scientist would write a programming language not just regular computer scientists but the ones who have written programming languages in the past such as the haskell programming language despite all of that work effort and knowledge and contributions to the academic literature and the engineering literature in our space and in the whole it's totally ignored by these people who call us a ghost chain for commercial reasons so it is what it is and uh that's where we're at as an industry and a year from now we won't get apologies despite the fact that we've won a year from now when tons of people are building there's a vibrant beautiful dap and defy ecosystem on cardon with a lot of use and utility and predictable economics all of those critics will be nowhere to be found they'll be in the same place as the people who said shelley will never ship and we'll never to a viable proof of stake ethereum is still trying to get to their proof of stake we beat them and in just 10 days d equals zero which means one hundred percent of all the blocks in cardano are being made with four boris props so commission accomplished block creation is being done with a true proof mistake system and it built up exactly the way we thought it was going to build up and the upgrade path is clear and we'll cast on it with omega just like we said where are the people who last year were barking saying shelley will never ship it's a scam proof of stake will never come these guys don't know what they're doing the system can't be deployed where are they they're gone and the very same people who say the things about smart contracts will just move on to their next area to be a carnival barker and the next area and the next area in the next area there is no project in this industry that executes the way we do we're building a new network stack real time that's never been done before that's significantly better than everything else in market we built a completely new way of designing cryptocurrencies with this formal specification approach no other cryptocurrency has come even close to what we've accomplished there we had to improve haskell the programming language itself join the haskell foundation make the windows libraries better and other things improve compilation to javascript and web assembly because it it wasn't quite ready or fit for purpose but we knew if we could get it there we'd have a huge competitive advantage in quality control there's no other cryptocurrency that has the same upgrade mechanism with the hard four combinator as we do there is no other cryptocurrency that uses extended utxo except for ergo which has already had great dividends and success with it as a prototype and ours is better there's no other cryptocurrency that has a clear path of how we're going to get mainstream languages in a sensible sane way and has a clear path to backwards compatibility with ethereum in a sensible same way uh in a side-chain model but we do there's no other cryptocurrency that's been able to build a decentralized governance stack as quickly as us catalyst now has over 20 000 members it started with 50 20 000 about six months of growth and we haven't turned on all the ui and ux stuff yet that's going to create a tsunami wave of participants and people and we're seeing a developing expert class and so forth all of those things and dozens more including academic peer-reviewed research is being done in parallel no one sleeps everyone works every day some cases seven days a week some cases for long stretches of time just to make sure that we get it done we write with more than 12 different companies unique companies like cubic and runtime verification and well typed in twig and atex in bloxico and vacuum labs and go down the [ __ ] list and each and every one of them have partner in their place some are formal methods engineers some are javascript engineers and that symphony has to play every day every single day relentlessly to ensure that we can maintain this insane pace which is far beyond anything if any one of our competitors because they only choose to work on a few problems oh and by the way we also do commercial development during a pandemic when we can't even travel and we have to do zoom meetings and and so forth and it's a lot of stress and work but we get it done to a point where our entire deal pipeline is saturated if i just cut it off here as we've tried to do it'll take us another year to two years just to service what's in queue not not to mention the overwhelming waves of cold calls that we get every single day from everything from an nft marketplace to a t-shirt company to a fortune 500 company interested in working with us that's where we're at and yet we're a ghost chain according to our critics it's uh it's bizarre reality uh and it's so ultimately self-defeating and self-destructive as an industry guys if cardona fails crypto currencies ought to fail because we're doing everything the right way and we're doing everything in a way that maximizes the egalitarian nature of the system the participation of the system it prevents cults of personality from forming it and make sure that there's good code across the entire stack and we're trying to really think carefully about the sustainability of the system so that there's a decentralized treasury a decentralized governance system there's a clear path to upgrading if we go out the alternative is a centralized system ruled by a small group of people or total chaos with no ability to evolve in a latent old broken protocol like bitcoin that never can get better because they can never get consensus to actually get better and we'll just all have to live with the flaws and go through hell trying to build overlay protocols to get five percent of something i played that game with master coin and color coins that's why ethereum exists because it didn't work so we have to succeed and you know what there's an army of people who wake up every day they send me these cool things like right here get hungry stay hungry came in the mail they get tattoos they send t-shirts they send an underwear for god's sakes with my face on it it's the craziest thing sometimes humbling sometimes downright scary sometimes truly amazing but always reminds me of the size the quality and the relentlessness of this entire community the one area that i wish we could move faster is not lacking the potential of that community but you know what they're not going anywhere i'm sorry you can't tell me that one tattoo's our logo on their body that they're fair weather they're here for life and there's an army of these people ready to go fired up and as soon as something turns on they immediately use it mary harford just 20 days ago turned on over 1300 tokens issued metadata came in december you should see how much data is now on our chain what people have done with it the cool thing go to cardinal wall and when pollutus turns on it will be the exact same story and look at the participation in catalyst look at the size of the reddit look at the size of the youtube subscription base look at the level of engagement and passion ten thousand people fifteen thousand people concurrently watching something for three hours straight look at the audience viewership of cardano 360 and this is literally just the beginning the last time i saw engagement at this scale was bitcoin in the 2013s and 2014s as it was surging or ethereum in the as it was surging in the early days with so many people flowing in and passion and you know what within a few years and coveted recedes we're gonna have cardano meetup groups with thousands of people just like ethereum does the difference is ours will probably be in kampala and lagos and bonazaris in tibilisi and other places of that nature we want batter as opposed to denver in seattle they'll be in denver in seattle too because there's plenty of cardinal fans in the united states and plenty of cardinal fans in canada and so forth but there's literally going to be a mixture of tens of thousands of people across the world will all get to know each other from alfred in his hotel in barcelona to fossil and his gardens in bulgaria before cardinal they didn't even know they existed and now they're best friends they've met each other and had spiritual experiences together that's how big this community is and what we've done so understand that things happen in their own time and their own pacing and that's what we've been working on and doing enormous progress has been made tune into the cardinal 360 episode on the 25th and i think everybody's going to be very happy with the things we say and do and each month we get stronger this month we are stronger than the month before and the month before we were stronger than the month before that the trajectory is very clear and we're speeding up despite the fact that we chose to do things the right way and because we chose to do things the right way we will not be burdened with the sins of the past and the mistakes of our predecessors which gives us an enormous competitive advantage as they scurry and try to maintain what they have like sand slipping through their hands and ultimately die and fail and if you don't believe me i want you to do something for me take out your blackberry phone go to yahoo on your netscape browser and search for your myspace profile tell me how that's working for you right this is how quickly things can change in the arc of history and in crypto land it moves fast but the protocols once they get set and they truly get used by millions to billions of people like tcpip they tend to stick around we haven't reached that point yet even the incumbents like ethereum are abandoning and moving to different grounds because they know the ones they have aren't sustainable so there's plenty of time to get there and all this defy that you see it's not loyal to its underlying infrastructure these businesses these calls are not in the game to make joe lubin or vitalik buterin money they are there to provide a service if it's better faster cheaper with higher liquidity and more users on our chain than another chain they'll migrate over out of self-interest not out of a marketing endeavor or the goodness of their heart or the fact that they really like going to ethereal that's the brutal reality of business no one in the world woke up in the 2000s and said i have to write on windows because i like bill gates and microsoft they did it because that was the network effect and where everybody was at and it was an understandable model and when the models changed most of them say apple first then google and if we have the resources windows but if we have to skip one that's the platform we skipped that comes from a company that was once worth 600 billion dollars and had 98 the entire market share for operating systems things change and they change very quickly in technology so have some patience and understand where we're going and what we're doing and why we do the things we do and understand the ocean the island upon this is a zen mantra it's something that we will work on as an ecosystem for the years and decades to come and every iteration brings more more people in it brings more capabilities into the system but the base layers have been designed in a way where if you want to write something that's secure and correct there's a path to do that they're written in a way where eventually operating costs are predictable and manageable and they're written in a way where migration will get easier and easier and easier and as the years go by more and more of that market share pivots and also the pie gets bigger and bigger and the new people entering in we're the first point of entry for various push and pull reasons so it might take three to five years okay 33 years old very young guy i can go and spend the better part of my 30s and 40s and 50s systematically marching the key is not to lose the ground you've gained and the key is to make sure you utilize the people in your ecosystem to their abilities and give them the tools that they need to be successful and realize their dreams because every one of those people will bring in 10 people or 100 people it'll radically improve the virality of the entire system that's the point not home or pepe not yield farming not sixty dollar transaction fees not some magic cure-all that'll somehow do this or a thousand tps or whatever [ __ ] junk of the week happens to be that's the key keep what you've gained make sure your churn rate is low you have high morality when people are in there's something for them to do and they love the things that they do and they are emotionally connected to the ecosystem they build friends in the ecosystem and the things that they do are meaningful to them their community and to the world in that order as long as you have that you always be around now everything is just a matter of scale and we live in an age of networks if you can achieve that kernel and the virality scale is inevitable does it matter if it takes 10 to 20 years for us to get to a billion people because we'll be at a billion people a seventh of the entire human population does it really matter if the next billion people takes us another 10 years no because we'll be at 2 billion people a third of the entire world population does it really matter if it takes another 10 years to get us to 3 billion people and anyway stream is not so good because of the blizzard but yeah that's march weather in colorado we'll get there all take some time but good things are coming tune in on the 25th i think you'll be happy uh and if you are interested in plutus the pioneer programs will be announced and sign up for that learn how to write code and if you want to build some cardano it's open for business go to catalyst quarter billion dollars available and more coming for projects to be built and i have a great community there so that's the way i see it i'm sorry if you don't see it that way but it is what it is there's over 8 000 cryptocurrencies led with very different philosophies and viewpoints i plan things in the years to decades and i look to the future and i ask myself what kind of world would i like to live in and what do i view as sustainable and stable and useful that is what we wake up and our ecosystem wakes up every single day chasing don't particularly care about the market cap we don't particularly care about the ebbs and flows of daily things are chasing this fat pet rock or uh beanie baby what we care about is saying we accomplish the mission that's what we're always going to do if you don't like it there's plenty of other options go do those options as long as i'm here that's at least what my company is going to do and fight for and believe in and reasonable people can disagree thank you so much for listening
