hi everybody charles hoskinson here live from warm sunny colorado it's always warm always sunny sometimes colorado well we had a pretty interesting product update we laughed we cried we all learned a little bit two and a half hours lots of stuff and i hope this gives you guys a good window into all the things that are happening uh there's an enormous amount of complexity in cardano and gogan is no different in fact that one slide showing all the interlocking dependencies and the moving pieces for it and just the sheer volume of things that are going on is is an indication of not only the quality of the team but also the commercial reality of being a smart contract platform in 2020 when i co-founded ethereum our reference material was paper we looked at dry code we looked at uh things that nick zabo and people from the 1990s and 1980s wrote about and whether you were a ricardian contract fan or you had programmed in eiffel or you understood things like fpml basically it was an open field which gave us kind of a freedom to just do whatever we wanted to do but it also didn't give us a commercial reality of well who's going to buy it who's going to use it what do you need to do the expectations in 2020 are vastly different from the expectations in 2013 and the reality is that there are massive deficits with ethereum as designed today which is why tezos exists and how grant exists and why f2 is being constructed it's why uh there are so many different players from polkadot and others on down who have deep and detailed opinions about the things we need to do the ico revolution hadn't happened there was no notion of an erc20 token and we were in a just different world we didn't have d5 any of these things okay and now in 2020 if you are to be competitive and build great things and actually invite real use and utility at a scale of millions and billions of people or government or fortune 500 contracting you need to have real good answers about a lot of different threats and things so for example marlow is because what it does is it leverages 20 years of history from domain experts like wooly bromerts and over 30 years of history in domain-specific language design from professor thompson and his team and it puts them together and it says okay for the first time ever we're going to have semantical clarity between the entrepreneur the developer the writer and the financial services infrastructure whether that be the banker the insurance agent the exchange whoever that might be up until the totality of human history till today we have never had that semantical clarity all four of those actors speak different languages and what we're doing with marlow as a dsl is an example of how you can unify and create a common language and experience between all of them today right now you guys can go to the marlow playground and you can start using it and start building things and start having that semantical clarity and work with us and over a period of six months or so that will continue to evolve templates will evolve applications will be constructed and those applications will work their way into cardinal applications and eventually they'll become cross-platform and work on things like fabric and other such things as we see industry and commercial adoption but it requires a starting point and marlow has evolved over a four year period through the hard labors of so many people to actually give us a great starting point and you can visually look at contracts and talk about their design you can write them in javascript you can write them in the marlow programming language there's a haskell side to things and you can see the power of this approach because of its design you can prove things are correct you can use theory that has existed for over 40 years like sat solvers and reachability to actually show that you're not going to have a parody bug and that's just one example of one dsl of which many more will come and the point of dsls is to give clarity uh to people in the industry so for example if we get into the health business and we start talking about medical records there will become a dsl to broker their movement and that same clarity and semantical uh unification will occur between doctors and hospitals patients governments regulators and business professionals and they will now have a common language so marlo is an entry point and it's an example of how to build a dsl and evolve a dsl and bring the right people to the table when we look to things like glow from mune this is an example of a team that's highly motivated and intrinsically across blockchain so when we look to the future and we say what happens when bitcoin gets smart contracts what happens when f2 comes out what happens when people want to build cross-block chain applications wouldn't it be nice to have a unification language and that's what glow is basically all about and by strategic investments in that ecosystem what glow does for us is it ensures that we won't be left behind that cardano has that and all cardonal infrastructure can benefit from that and glow in turn will benefit from its embedding in our ecosystem more users more technology and ultimately because cardano's the best if you deploy in that direction it's the best experience when you look to plutus plutus is the unification language it's the conductor of the orchestra and it pulls all of these things together uh and there were a lot of design requirements with pollutus that were quite hard from a theory viewpoint we really cared a lot about resource determinism we wanted to make sure that it was always predictable or at least as predictable as it can be to know how much it costs to do things because at the end of the day this is not a science experiment these are not toys back in 2013 we had the luxury with ethereum of just seeing what happened and the market makes strategic investments and they have to know how much their operating cost is going to be for their business model we designed plutus so that it would be one of the best programming languages on a long arc agenda of being a very practical on and off chain language to unify all the cardinal ecosystem there are many objects in the ecosystem to operate manipulate instruments of value like native assets identity smart contracts onto themselves dows off chain infrastructure and you need a conductor that's capable of living in between all of these things and you need certainty that the code you're writing is going to work this is why we based it on an ecosystem that has 35 years of history and we as a company have invested millions of dollars in that ecosystem to modernize it and bring it into the 21st century especially for things like windows support and working with partners like twig web assembly support uh working on projects like compilation to javascript so that we can share that's there and our commitment is going to continue beyond that we are a founding member of the haskell foundation working with simon payton jones and we're going to ensure that haskell has compilation to arm and that all of the technology that's required to keep that language competitive and actually make the language even more competitive will happen and so it's very nice that plutus is deeply ingrained in that ecosystem and that makes it a perfect conductor language now in the coming months we're going to talk a lot more about our relationship decay and yellow if you live in the imperative object-oriented world and you want to do things a bit differently than the way things are done in the haskell functional world then it makes sense to have an option that has the same principles as us which is why we reached out to gregory years ago and established a commercial relationship with him and it's been the privilege of my career finding a way to resurrect that relationship so in the coming months we're going to talk a lot about how yellow fits into the cardano ecosystem and the value it's going to bring in addition to the value of marlow glow and plutus now one of the single most important things about all of this is the native asset standard one of the things we did not anticipate when we created ethereum is just how pervasive the user's ability to issue an asset would be we figured this would be an important thing it's why we put it on a t-shirt back in the miami conference in january of 2014 uh and we realized that from the color coins project in the master coin project and one of the most important things is that we have the ability to issue not just a utility token but non-functional assets security tokens and a litany of other instruments that hold value some ephemeral some permanent some with flexible monetary policies some with fixed monetary policies some from a central issuer some from a decentralized issuer some managed by a foundation some managed by the community some manage by fixed code that's immutable and the point of the native asset standard in the erc20 converter is to establish a co-evolution of the technology and the commercialization of the technology as opposed to just field of dreaming it and building it and then they will come so what we've been doing with erc20 converter is using that as a way to create a conversation with those who want to migrate or build on cardano and thinking through how are we going to create practical standards with our native assets we already have enormous advantages with this standard over ethereum in particular the fact that your assets you issue on cardano are treated the way that ada is treated whereas in ethereum you're a second-class citizen or ether is treated differently from smart contracts this first class citizen approach means that your assets will have the same governance access layer to portfolio access and infrastructure that ada itself has easier listing experiences easier time with hardware wallets easier time with wallet software in general better user experience faster transactions lower transaction costs and then eventually for higher value tokens even the possibility of paying transaction fees over the long term in the native asset itself as if you were your own cryptocurrency you just simply cannot do this with the design of ethereum and ethereum too it's a huge advantage we have in our ecosystem and it's one that will become more pervasive over time now gogen has already started as a launch agenda the very first update to enable some gogan era functionality was the metadata standard which meant that you could go from just moving ada around to actually a whole litany of applications in the identity space and in the metadata space some of which were aggressively negotiating on in commercial deals which we'll announce at a later date the rollout of gogen in terms of the system as we mentioned in the presentation will be principally done for the first iteration over a series of three hard four combinator events the first of which is beginning this year in november december time frame and that's going to lay a lot of the foundations that will enable us to get to the second hard four combinator event which will occur in q1 of next year and we'll announce that specific date likely at the next product update and then the third one will happen shortly thereafter they have to be spaced this way because it's just simply too cumbersome on our developers and also our partners such as wallet infrastructure and exchanges to try to do too much too quickly and furthermore there's an enormous amount of work as you've noticed on that slide to roll out gogan now you have to do two things at once you have to deploy the infrastructure but then you also have to populate the infrastructure and what's nice about the way that we've done things as you now see with the marlow playground the population of that infrastructure is occurring now today and with the erc20 converter and the mint test net that's coming that's going to occur in november which means that that gives people time to start building and playing on our ecosystem in a safe sandbox so that when they deploy it to the main net they do it right the first time and they don't make an existential failure as we have seen with the d5 space because at the end of the day once you go live you have a huge adversarial surface and everybody in the world is going to try to break the things you've done so it's very important that you do it right which means that you need time as a commercial partner and an application deployer to do it correctly so parts of gogan are indeed shipping this year some have already shipped and we'll have another hfc event at the end of next month or early in december and uh throughout the first quarter of next year and likely the second quarter will complete the other two hfc events which will roll out full support for native assets extended utxo the plutus infrastructure and the marlow infrastructure in the meantime we're also working on strategies about how we can ensure best integration of glow and yellow into the cardano ecosystem and as you've noticed there are three parallel teams that are working very hard the shelley team continues to upgrade the shelley experience just today we've received a lot of concerns over for example the state pool ranking in daedalus let me be very clear about something there's no problem with the ranking software the problem is the k parameter it needs to be increased and the fact that things are getting grayed out is an indication that the ranking parameter is actually working right for the first time so k needs to go up but there are consequences of that and we need to improve the software to reflect those consequences but it is my goal to get k to a thousand before ideally d hits zero because we really do want to have over a thousand well-functioning stake pools but by no means is that the end of the story we need partial delegation and delegation portfolios we need means for stake pool operators through pub sub to communicate effectively and efficiently with those who delegate to them we need improvements in smash we need an identity center we need a litany of improvements to daedalus itself right now today there are more than four companies working full-time at doing just these things in addition to the gogan updates that are occurring right now today and that research thread and that development thread will continue we've already seen seven cips including cips related the reward function we take them very seriously we review them and there's enormous amount of discussion about how to create a fair and balanced system and we appreciate this feedback it's a process and we ask for patience and we also remind people that we launch shelley just at the end of july and despite that the ecosystem has more than doubled in size and it's been growing at um an incredible pace and it's only going to continue and we're only going to see our best days ahead of us so good things are coming down the pipe and it's becoming a much more holistic ecosystem from in performance improvements to usability improvements to better overall software for everyone there's no greater example of that than what we've been able to accomplish in the last three months for the exchanges in general we're really proud of what we've done with the address dear stack and we're really proud of working with great partners like binance and bittrex throughout the last few months and we've had some certain challenges there but as a result of overcoming those challenges we have left behind an incredible enterprise grade listening experience that continues to get faster continues to get higher quality and is secure and reliable 24 hours a day seven days a week and we'll continue investing heavily to ensure that that only gets better for all of those partners whether they be an external wallet or their infrastructure like an exchange operator and we've had a lot of wins also on the governance side with the voltaire catalyst project we have seen huge wins in participation going from small focus groups to now over 3 500 people every single day coming into idea scale competing for 2 250 000 worth of ada with fund two that's just the beginning and every six to eight weeks that's going to increase in scale in terms of the money and people the quality when we ask what is our developer acquisition strategy that's a major part of it because people know that there's money to be made in building on cardona and that you have the right incentives to go realize your dreams and add value so just as these frameworks like the marlow playground and the polluted playground and other such things like glow come online and yellow come online the ability to build will be matched by the ability to discuss what to build and fund what to build through a community driven process that includes greater and greater inclusivity for example the next fund will include a voting center built right into daedalus in addition to the cell phone application that we've already launched to vote and we will continue refining that experience relentlessly that's one of our fastest moving teams and i will remind you we are doing this in parallel to the shelley workstream and the gogan work stream that we showed you guys today finally there's basho come the not the next hard four combinator event but hfc3 which we anticipate q1 i would like to include a sidechain protocol that allows the movement of value between independent systems through some form of blocking mechanism we are currently examining and designing a protocol that we think fits very nicely into the way that our system works with mild modifications to the ledger rules if that and should this be successful uh then that helps with one of the pillars of basho interoperability and then the other pillar is scalability rob cohen is hard at work working with technical architects and scaling up a team to start de-risking the hydro protocol and matthias fitzy and others are hard at work evolving the science behind the hydro protocol so we have seen great progress on all fronts to de-risk hydra's roll-out and what's so beautiful about hydra is it is our belief that the majority if not all of hydra can be implemented in plutus so as plutus rolls out we have a natural constituency to run this infrastructure the stake pool operators and we have a natural way without an hfc event or special accommodation of rolling out hydra it's not really needed at this level of scaling capacity we have an enormous throughput already 10 times greater than ethereum as it is today and room to make it a hundred times greater than what ethereum is today without hydra however as we de-risk this infrastructure solidify the protocols and get out all the kinks what's so beautiful about it is that we will be able to when the time comes the community can roll out multiple implementations of hydra so that there is diversity and there will be a natural group of actors to run those channels as we have seen for example with the bolt spec and the lightning ecosystem on bitcoin the contrasting difference between lightning and bitcoin and hydra and extended utxo and cardano is we designed cardano for hydra bitcoin was not designed for lightning and as a consequence it's always more difficult for them to try to make meaningful progress whereas us there's no friction in that relationship it just fits very nicely through so the roadmap is coming together and uh cardo 2020 has definitely started to evolve into quite a mature ecosystem and what's really exciting is we're going from an ecosystem of potential to one of reality and instead of asking what could we do we're showing people what has been done and people are actually doing things every day our commercial team is unindated with requests for coordination and cooperation and deployment i get numerous emails every single day well intended to very serious about people wanting to build on the platform and we're real real excited about that so we're going to keep this steady systematic relentless march as you saw with the enormity of the news today it's business as usual and it'll be exactly the same in november only there'll be more and every month the velocity increases we burn down the remaining story points to get these things done and things are happening very quickly and we just keep releasing and releasing and releasing and it's a very different time than it was even six months ago what's so reassuring is we continue to have the best community in all the cryptocurrency space it's the final point but it's one that i'm most proud of you see people get to decide where they want to live what infrastructure they want to deploy on who they want to work with and when you have a welcoming warm and friendly community that is constructive and productive and their job is to help you get to where you need to go you want to work with those people when you have a destructive or toxic community that's exclusive hierarchical and not invented here in their mentality people don't want to work with that community money can't buy that i don't care if you have a bank account with four billion dollars or you're a central bank you can't buy character and you can't buy culture you have to make it and you have to earn it and if we've accomplished anything over these last five years from the 90 papers now and the million plus lines of code and the incredible releases that have happened and continue to happen we accomplished the greatest thing of all we built a community to rival that of bitcoins and i believe with that community we can realize the dream in the coming years of cardano becoming the financial operating system for those who don't have one and giving open prayer and free economic identity to those who need it i am astounded by just how easy it is to roll these things out they're super hard and complex under the hood but they just feel right and fit right and all the pieces are starting to come together in just the right way and i'm astounded by the fact that when we roll them out community members are there to receive them and take them to the next level so thank you all for attending the product update at the end of the month this was a real good one just as good as the shelley one and we are now in the gogan era with the first hfc event coming in the end of november and we're going to keep pushing them out every single one of them will add more capabilities and i encourage everyone to check out the marlo playground start building with it today things are happening really fast when the mint comes online at the end of november start playing around with that start talking about the multi-token standard if you're interested in a project our commercial division divisions always open and you're going to see more and more progress from all entities in this ecosystem and some potentially major announcements before you can before you think it so thanks guys it was a good day and thanks to the entire team that made all this happen i'm real proud of all of you cheers
