hi everyone this is charles hoskinson broadcasting live from warm sunny colorado always warm always sunny sometimes colorado today is november 27th it's a saturday over at the office got my stuffoluficus i also have my bob ross and there's nothing better in life than when your bob ross rides your snufflufficus anyway uh today's a brief chat but it's something that i wanted to talk about so as many of you know the pab is out on the net and people are using the pab right now and the construction of their gaps and so on our side we've gotten a huge amount of technical questions and we've been going back and forth with a lot of the different dexes like sunday swap and others basically the back and forth is about features functionality etc etc so cardano dapps are under construction and i wouldn't be surprised to see them in market very soon like soon within weeks to months uh it just depends on the team their ability to execute how long they want to leave things in the test that and this brings up an interesting question about dap quality and the level of support behind adapt if it's rightly constructed or not okay so there are a few things that i want to be manage expectations on amongst the community and that's why i'm making this video we io global uh all the people work with us in the building of cardano invest an enormous amount of money time and effort into proper protocol design formal methods and software design the benefit of that is that you end up having software that's high assurance so there's a very good possibility that the bugs are minimal security issues are minimal uh and that the software works as intended okay and the downside to that is with current tooling it can be very expensive especially for complex software and time consuming which is one of the reasons why we get a common criticism from the move fast and break things paint chip brigade that we're too slow to market although we seem to be doing quite fine ecosystem continues to grow and a lot of things to do but we're moving as fast as i think any project ought to given what's at stake and how much money is at stake i will remind everybody that this year 10.5 billion dollars of money has been lost or stolen as a consequence of bad dap design and insider problems you avoid these things when you take a methodical deliberate process not necessarily slow but at least methodical and deliberate now what does this have to do with the dap ecosystem on cardano it is the responsibility of the app developer to write a dap correctly okay let me repeat that it is responsibility of the dept developer to engineer and build an application correctly now great ecosystems and platforms will give you good tools and we're going to go through some of the firms and tools but great ecosystems and great developers will give you tools to help you build correct software but no ecosystem can build full proof guaranteed to work all the time every time software none it's never happened in the history of engineering ever there will always be a bug a design flaw or some problem in software even our own okay and that's just the reality of software engineering because the things that you think are true or valuable will change and the infrastructure you run your things on can have flaws even if you have a formally verified programming language and a certified compiler the infrastructure that you're verified if a language and compiler and these other things runs on is not it's turtles all the way down so that means that as dapps in cardano on cardone turn online at least one of those dabs will have a design flaw a bug or other problem and at least one of those dapps will be fraudulent somebody sang something but it turns out the dap has a back door in it to steal your money okay we are not immune to that we did everything as engineers and scientists in our power to give the developers and the community tools in order to sort out good from bad and i would argue significantly better than what exists in the ethereum ecosystem even apples to apples but it is your job the community to demand vigilance and basic best practices and you the community have a big say in this as these dapps come online okay so let me share my screen real quickly and we'll kind of talk through it so if you attended the summit that cardano held the summit uh talked a lot about certification of software and there are several ongoing efforts about certifying uh gaps written on cardinal first off because plutus is kind of similar to haskell the tooling of the haskell ecosystem works inside the plutus ecosystem and as a consequence of that we are for better or worse able to do things the haskell way i and so that means you get big upside on testing so kuvick is one of the granddaddies of these companies started by john hughes he was one of the creators of cubic and they use something called property-based testing you see right here is a great blog post from nicholas dubian and it talks a little bit about how property-based testing works now you'll notice something it says hey a property-based testing framework for javascript so this is not exclusive to the haskell ecosystem property-based testing can be used in many mainstream programming languages for example there are frameworks in python c plus plus scala and huge the founder of cubic says don't write tests you know there's all kinds of cool things here and there's some videos and so forth so i'd highly recommend that you read this property based testing blog that's up here and some of the links and kuvik is one of the firms working with us on cardano specifically for building tooling to test dapps that are constructed another one of the core entities is runtime verification they do k and they've been in this ecosystem for a long time uh and one of the things they're doing is writing k-semantics for the latest version of pollutus and creating tooling for formal verification of plutus programs in the ethereum ecosystem probably the best suited to do verification of ethereum smart contracts is a company called cirtic they're based out of yale a very prominent university in the united states and they have tooling to look at all of the different uh common daps and applications and those tools are being gradually ported over to the cardano ecosystem and they can be used on the evm side chains like vehicle media or mamba but they're also going to be an auditor that's going to work with us in the in the plutus application space and another video i'd recommend is formal verification applied from pawel and he talks about tla and so this you can just take a look at this title right here in the video and all of these give you a sense so what we're doing right now is we're building out certification levels uh level one two and three and we're going to create a series of standards in the cardano ecosystem and the dapp store that we're building as commercial software on the i o side uh will actually visualize certification differently so if you're adapt developer and you're learning how to use the tools of cardano one side is developer experience so the sdks these libraries these tools will get rapidly better very quickly because there's a lot of people whose day job is to accommodate that but then on the other side is the curation of the dabs one part of curation is certifications one part of curation is community curation okay you need both in order to have a great ecosystem so we have level one two and three and that's just the level of verification you've done the level of tooling that you've put at it and if there are external auditors or not like runtime verification like cubic like certtic so the app store we construct will physically visualize those things that are certified from those things that are uncertified again just being certified doesn't necessarily mean that there isn't a bug or a flaw but it's a game of diminishing returns just a little bit of work will give you a strong certainty that at least some obvious things are not present and a lot of work will give you a high level of certainty relative to the value at risk that the application's working properly and it doesn't have back doors in it and a lot of things have been checked and so the community curation part comes into play where the community needs to start working together as new dapps are announced and develop an immune system and have a professional degree of skepticism who are the team where did they come from were they pluto's pioneers what level of familiarity do they have with the cardano ecosystem is this a new venture or a port of an old venture uh use of funds etc etc basic due diligence so we mentioned that there's going to be a dexcon next year quarter one probably at alfred's hotel and we'll arrange that but one of the things that we'll start talking about are some universal standards for community curation of dapps in the cardano ecosystem to be honest i think we can do significantly better than the cryptocurrency space has done historically if you look at the track record of our industry it has been one of apathy if we were to give people the benefit of the doubt and malice and fraud if we were to hold people accountable for the things that have happened and i do not want to see that occur in the cardano ecosystem as an architect a protocol designer engineer firm what we can do is build great tools but like the old proverb you can lead a horse to water but you can't make a drink you know the community you have to drink you have to self-govern you have to hold people accountable so when you consume a dap you're you should ask basic questions like has it been certified or not what is the nature of the team how many people are using it did they build it on a test net do they have a bug bounty program what are the external auditors for the code base who are these auditors these are these firms that have been around for a long time with a demonstrated track record or they completely new firms and you the community should create rewards and incentives uh for the audit oversight and curation of dapps in our ecosystem our competitors like to believe cardano is a ghost chain and actually it's the exact opposite there's going to be a flurry of activity and as this activity turns online what's going to happen as we noticed with etoro and bitstamp the tale of two exchanges the media in our space and our competitors do not give us the benefit of the doubt and they sometimes just simply lie so a small exchange relative to trading volume besides the ring fence a certain group of users because they're de-risking all of their yield products has nothing personally to do with cardano and then that gets extrapolated to a global de-listing even though they're still running pools and advertising globally the listing of ada we have not been delisted from euro and ignored the entire listing at bitstamp this was done on purpose it was not an innocent mistake uh this was not something the media uh just all well we didn't know better no they did there are people within crypto media who are frankly dishonest about cardano and never will be honest about cardano they diminish our accomplishments and over emphasize the missteps and failings and issues and every ecosystem is going to have both of them so as dapps come online with cardano if the dap is not designed properly it's not set up for concurrency because they did stupid things in its design there's a security flaw or an issue there will be a very strong attempt from those very dishonest people in crypto media to then extrapolate that cardano is a failed experiment and then the entire ecosystem is pointless and meaningless and they will push that message as aggressively as possible that's just the situation we're in i don't know where the malice comes from or where the hatred comes from for doing things the right way i guess it has exposed a deep insecurity in these projects in these people and they're terrified that our success will mean that they'll be held to the same standards we've held ourselves in which case they cannot beat us so we must fail in order for them to continue as business as usual and accept 10.5 billion dollars of waste fraud and abuse in the industry on an annual basis mostly hurting the most vulnerable of us that is not acceptable so if we as a community are going to get through this what we need to do is we need to stand together and be clever and smart and recognize there are great tools and recognize there is a lot of deliberate decision decision-making that went into the construction of cardano to give people the opportunity to build things correctly thus be skeptical regardless of what the application is always ask who's behind it who audit it who holds them accountable what level of testing have they put into these things was there independent firms that came in and verified the claims that they made and do not risk the farm every single application treat it with a degree of skepticism and let time be your guide as well as independent verification validation hold people accountable what level of transparency do they have is the team public does the team talk to you on a regular basis where do they come from what's their track record these basic facts and circumstances that that we have and if you do these things we will have a significantly stronger ecosystem and also if people don't get certified their software verified and validated the ones that fail almost always will come from the set of unverified uncertified software and as a consequence of that failure what we can do as an ecosystem is tell the media every time they make a big deal out of something that fails that it came from a group of people that didn't do the thing the right way as opposed to it's a failing of cardano it's not so i just wanted to make this video as a warning and an opportunity we can be better we can do things better and i don't believe anybody in their right mind wants to put their life savings their hard-earned money at risk on a gamble and that's what's happening at d5 right now people chasing massive returns are putting money into infrastructure that's fundamentally unsound and unaccountable and when it blows up the creators of the infrastructure they get the money and the users get the bill that's not right it's going to invite extraordinarily negative regulation into our space which will damage the innovation of the space and leave a lot of people hurt on every side of the angle the only way you get out of that is showing a counter example where we can self-govern self-regulate self-certify and we can build a shining ecosystem which will drive high adoption into our place and the next wave of d5 the real fly will come to us because people know cardano is a safe ecosystem that is secure the only way we get there is by consuming the things where people who have taken the time to show that they're good actors uh and not consuming the things for the people who didn't i don't control that i can't control that it is a decentralized ecosystem i do not have the power to decide who gets to be in the pool and who doesn't i don't have the power to decide what is a legitimate application and what isn't i'm already starting to get emails from people who have participated in a crowd sale or this that and the other on cardano saying well i don't know about these guys are you sure they're going to deliver i have no business in the dab ecosystem my job is the infrastructure side all i can do is build the protocols and build the tools and we've invested well more than 100 million dollars of research and development and engineering effort into building out cardano and next year probably another 100 million dollars to close it all out and that's what we do but i cannot control who deploys on our ecosystem any more so that i can control your ability to issue an nft i'm not in power it's a decentralized ecosystem now there are no curators outside of the institutions we build which are voluntary which means you the community have to work with the things you consume to ensure that the dapps are safe and that's why we created the certification levels that's why we're creating a dapp store that enables that it's the first decentralized app store and that there is no listing process you submit a transaction to register your dap on chain and the dapp store will parse it like it does the delegation certificates the list state pools uh and then you can put metadata in including the certification levels and those things can be verified and visualized differently but we have no monopoly in that respect anyone can create a dapp store it's an open ecosystem and my hope is because there are other wallets like nami and so forth that are coming uroy that we follow some basic standards and guide rails about the visualization of quality and the curation of quality in the ecosystem decentralization is hard it's expensive it's time-consuming and frustrating at times and for every step forward there occasionally is a step back and there are issues and it's even harder when you're dealing with a fundamentally dishonest crypto media and it's harder when you're dealing with a youtube elite that seem to be heart set on our failure but that just makes us tougher makes us smarter and makes us work harder and so far we've been kicking ass day by day metric by metric we're winning and so let's make 2022 the year that we win even bigger and it's a game of quality and it's a game of users and we're going to have more than all of them i believe if we follow through so i just wanted to make a quick video as a kind of a management of expectations you know for all those of you in the paint chip grade i i'll be very clear and concise i believe cardano is one of the best if not the best platforms for building high assurance applications i think pound for pound if the tools that we've constructed an ecosystem we're developing are fully utilized there's the highest probability of security with us but on the other hand it is in the hands of the application developer and there will be applications which are not designed correctly are very expensive to use because the engineers didn't know how to use the model have security problems and in some cases outrage fraud you accept this if you accept a decentralized ecosystem and the burden is upon the community with how they consume and who they legitimize who they invest in who they work with who they use to curate we can do everything in our power to provide all kinds of tools like certification standards metadata community voting these types of things to separate the wheat from the chaff but at the end of the day it is completely up to the community whether they embrace these things or they don't and if they don't embrace these things at a scale requisite of an ecosystem there will be failures those failures will be over emphasized by the crypto media because they've shown time and again that they've been dishonest they will be overemphasized in social media by our competitors and enemies who just simply don't like for cardinal for whatever bizarre personal reasons they have and this is why i've always said that it's important to zoom out have a long time horizon and understand what victory looks like every single person who subscribes to this long arc philosophy in the end is in a safe ecosystem that's always growing that's always adding and building and so it doesn't really matter where we start as long as those growth metrics look solid and we don't regress we will get to where we want to go and we will see thousands of applications on cardano i've always been somewhat optimistic in my projections but lately i've become more realistic in my projections and i've tried very hard to over communicate issues especially ones that are unfair and what's nice is that for the most part most of this community fully appreciates and expects these things and i rely upon you we all rely upon each other to make sure that we tell the rest of the cryptocurrency space that this is the reality i and uh not many cryptocurrency project founders uh will be this honest with you that's our relationship it's one of transparency and honesty and it's a relationship that we built together over the last six years ama by ama and we've been together on the good times we've been together on the bad times and next year we will see our best times in my view but we will also see some hard days because of the nature of this business because of the nature of these protocols and the decentralized nature of the ecosystem the philosophy is what pushes us through and the commitment towards quality and being better and building better okay all right thank you everyone for listening and it's gonna be a fun next few months as we watch all this stuff turn on cheers
