hi everybody this is Charles Hoskinson broadcasting live from warm sunny Corona filled Colorado I the video I actually wanted to make the last two videos were event-driven videos one about the markets and the other one about recent losses in the family but this video is a celebratory video and it's a video to talk about some major accomplishments that the research team has finished so many of you may be aware of the research agenda that we followed from 2015 on the Cardona project sought to really deeply investigate how to make proof of State practical and work well for everybody so really this required us to take a look at the entire science of proof of stake the entire science of consensus protocols for our industry and what we needed to do was come up with a practical solution that would allow us to gradually scale as we gained users so as the system got more decentralized the system would perform at the same rate or it would get faster like BitTorrent does so this was an extraordinary ask because there are so many other considerations adaptive security semi synchrony we wanted fast finality we wanted the ability to bootstrap from Genesis without having a checkpoint we wanted to decouple the clock we wanted to be able to recover from spikes of dishonest majority and also we needed to build a delegation system we needed to build a state pool system and that we needed a productive way of orchestrating curating all of that including building a brand new way of handling networking for our entire industry so this together was a colossal task and it's something that has consumed now five years of research by team of more than two dozen scientists and engineers working basically full-time since we started it and it has resulted in over a thousand citations and basically a whole corpus of knowledge enough to run a monograph the capstone of this entire research agenda is Ouroboros Hydra and we finished the initial build of that paper in November we submitted the conference build February 15th to usenix and we have admitted it and it has now today been posted on ePrint meaning for the first time ever and it's in the link of this tweet the hydra piper is publicly accessible it's really a marvel of engineering it's an isomorphic state channel paper so it's a layer two solution that can sit gracefully on top of the cardinal protocol and accelerate it and it's something that fits very nicely with our state pool model simulations show that each hydra head can perform at the moment around a thousand transactions per second and there's a lot of room for optimization of that furthermore we have a lot of evidence to show that as we add heads to the protocol we should get reasonable scaling meaning that it's around linear scaling obviously you can't get perfect linear scaling due to a lot of overhead and things like that but it's close to linear is our belief and this model fits extremely well with the extended UT excel model because we have natural ways to sharp the state space without charting the ledger itself so what this effectively means is that if state pools were to create heads each state hook for example could have a head then as we add more state pools we get more heads and the performance will scale up so for example if you have a thousand TPS and a thousand heads you could be looking at a maximum theoretical performance of a million transactions per second and these heads could do things for example like fast finality so things can clear instantly just like they do in a traditional bft protocol and these heads allow for micro transactions micro payments so micro tipping small things like that in addition we get to benefit from years of research and state channels and payment channels for routing and interoperability so we're super excited to bring this paper to market it's actually the first interdisciplinary paper where we had network people MPC people programming language people and consensus people working together to figure out the theory and we're so excited that the smart contracts that can run on the base layer we have shown are isomorphic with what can run in the state channels meaning that if you have a Plutus smart contract in our model it's going to be able to run in that had one-for-one this is not a trivial thing to show and it's not a trivial thing to do but it's super exciting to show that that's indeed possible so there's a lot of cleanup that needs to be done and there's some prototyping and implementation that needs to be done but what is most exciting about this is that it can be implemented in parallel with all of our work on Shelly yoga and in full terror you see because this is a solution that plugs on top of our model probably adopted first by the state pools we can have an independent team similar to the team that we have with the incentivize test that and other things to work exclusively on this basha site scaling so that's super exciting second this solution is complementary to ledger they sharding solutions that we're seeing in industry so the plan for the main team will be to implement all of the Shelley and Gilligan features and continue to upgrade the network stack and we think the max theoretical performance uncharted on the base ledger will be look around a thousand transactions per second at the base ledger and then each stake pool for example can run heads and each of those heads can add an extra potentially up to thousand TPS in the current design according to simulations we you'll see in the paper and then basically as you add heads you get more performance and so when you look at the dynamics of the system like this we're a visa scale at the base ledger and comparable with our fastest competitor ripple and then at the head level we can scale to a global system that is very natural and easy to shard and those heads can also be used for interoperability with other networks like the Bitcoin network the Lightning Network and so forth and it would be very easy for us to eventually layer a payment system on top as well as a decentralized exchange mechanism on top of that so to get to this capstone where we saw our language group be able to prove nice isomorphic properties to see our extended UT Excel model demonstrate that we can successfully shard that space and it's easy for us to segregate these things to see the theory of consensus and the theory of or forfeiture to a point where we have comparable properties with Bitcoin from recovering from dishonest majority to bootstrapping from Genesis to operating the semi synchronous environment to adaptive secure this is really a major scientific milestone for the industry as a whole and so we're incredibly proud to publish this paper it it's really a bittersweet moment because the first research line that whole five years of effort is starting to kind of come to an end there's not much more to publish there there's certainly a lot more to optimize there's harder problems to work on moving forward but basically we solve the problems we set out to solve for Cardinal to make Cardno truly a scalable system and to bring Cardno into the future and now the hard task of translating that science into real code and bringing that into the system has begun the lucky part is that there's enormous amount of body of work that has been done thanks to lightning and thanks to the state channel research that allows us to bring these solutions in rapidly and we won't start from zero in that respect and also we can now engage a parallel team to start that implementation work in tandem with the Shelia ago could work one of these things pull together Cardinal truly will be the fastest system in the world and also contain all the capabilities of our competitors from fast finality to micropayment friendly to easy interoperability and other such things so thank you all for your patience and waiting for this paper to come out it was very difficult for us to translate the one we submitted to conference to the one that we spend it on ePrint because I believe the page limit was 18 pages for the conference submission and this paper came in at 55 so it was a very significant editing process to get the paper to where it needed to go to be publicly accessible but now it's finally in your hands the consumer so do read it do play around with it and do let us know what you guys think about it and the product manager who will begin regularly updating you guys in short order is Rob Cohen so after we finished some remaining work on the launch of Shelley and cleaning up the Shelley node Rob is gonna fork off and he will work full time with a full implementation team specifically on building Hydra and bringing Hydra in and you'll see monthly updates from rod Rob as you see the monthly updates from a part I and Nick and the other product managers and you so that's a first-class citizen along with Voltaire and Gogan and the rest of the gang so look for that in the coming months and thank you all so much for playing around with it and we look forward and we're super excited to adding this as another value proposition and revenue generator for stick pool operators and we look really excited adding this solution in for accelerating car danau and taking us to the next generation in the next level this is the dawn of the basho era in this respect and it's nice to see the light at the end of the tunnel for the entire roadmap so let me know what you guys think about the paper and happy reading Cheers
