hi everybody charles hoskinson here live from warm sunny colorado i have a requested video i have big backlog of whiteboard videos sometimes they come from within sometimes they come from outside i have noticed that there's a great degree of confusion about atala and cardano and enterprise versus non-enterprise permission versus non-permission and it's gotten to the point where the prime minister or former prime minister of georgia writes an article about how he's super excited to be working with us and using cardano and i see on the reddit uh that uh people are saying oh that's just a a tala or something and it's not actually they're using cardano but uh that that doesn't count so i want to make a video and kind of talk about what is the difference between these two things and explain the strategy and how they are complementary to each other okay so years ago uh we were building cardano and at the same time we had all of these enterprise clients who came in and they said hey we can't really at this moment go on to permissionless infrastructure for a variety of regulatory reasons legal reasons business logic reasons blah blah blah we want to have control over the infrastructure but we still want to work in federation with partners and be on a blockchain like system and the usual solution for these types of things is fabric or something like it fabric is basically a permission ledger infrastructure and you have control over the consensus by basically saying it's permissioned and they have this thing called chain code and chain code is like their notion of smart contract it's the logic behind how transactions get segregated and so forth so a lot of companies are using fabric today and they tend to use fabric with partners like walmart for example uses fabric and they say okay for our food supply chains you must dial in you must connect into this infrastructure for that but ultimately walmart wants to be in control now a permissionless infrastructure these are things like ethereum or cardano and there the consensus is under the control of and the infrastructure is under the control of the community okay so you have permissionless consensus anyone can jump in and if they own enough of the resource that enables consensus they can participate and that resource can be hash power that resource can be the token but there's some notion of a resource and whoever owns that resource is able to participate in running the system and then obviously they have a different notion for logic we have this concept of smart contracts and there's different ways of doing that okay now both cases chain code and smart contracts they usually talk to third party infrastructure okay and that's why ethereum has infira and web3 and all these other concepts and we have on chain off chain code with the plutus concept and so forth so this model right here is a little agnostic to whether the consensus happens to be permissioned or permissionless permissionless permissioned or permissionless excuse me it just does its thing so back in the day we created atala as a way of onboarding enterprise government other clients and getting them into some sort of enterprise infrastructure so we can have clients and we can have users okay and these deals we talk around like for example the georgia deal that gives us 50 000 new users per year minimum and it has potential to scale to hundreds of thousands potentially getting into the tourism is industry where there's 10 million tourists per year now it's a lot easier to talk about permission to infrastructure in a government conversation and in a corporate setting but the point is that these two are not actually that far apart and they're interoperable with each other okay the users should be able to flow between these two systems and in fact a lot of cases when we say who's going to run the infrastructure they say oh we really don't want to do that and once you're further along in the business relationship you can say well no no let's go ahead and run that on permissionless infrastructure they say okay fine so more often not actually the conversation can move in a permissionless direction but because the users in the system they have identity and our preferred identity is to use a did through our prism platform and they have access to public private keys so they have addresses and wallets and these things it's very easy to migrate those users from one system to another system now duncan coots is one of the smartest people i've ever met and what duncan did which was really brilliant is if you look at cardano cardano under the hood can run in a permissioned and it can run in a permission list mode so we already demonstrated this why because the obft nodes were selected by others that's a closed consensus set and that's what's byron and now we're moving into shelley and as shelly keeps waking up more and more are made by prayos which is a permissionless system but there's still a permission component for now so that means that cardano actually can be deployed almost like it's fabric it just has to be packaged correctly so one of the things that we did is we joined the hyper ledger foundation and we're in discussions about just this topic how to run cardano as a turnkey permission system and all that knowledge we gained from servicing the itala workflow in the old days when bruno was in charge and alan mcsherry was doing work and danelle was there all of that knowledge that we gained can be ported into that permission philosophy of cardinal and what's really beautiful is that as cardano evolves as a product all of those evolutions go to the permissioned version of it as well the performance improvements the smart contract capabilities the multi-asset capabilities and so forth now the existing atala group really what they're focused on right now is layer two so the first layer two is prism but then also hydra will fall under that as well and there's a litany of other things that can be considered now these pieces of infrastructure are blockchain agnostic so that means that they can sit in the permission side or they can sit in the permissionless side it doesn't matter and the beautiful thing is because this dna is the same that means that transactions and users inevitably will be able to flow between these two systems identity can flow between these two systems value can flow between these two systems so in essence what we can look at is saying that this is a user acquisition machine when we go do a government deal they're trying to solve a problem and we're over solving the problem for the benefit of cardano how so because when we bring them into a supply chain system an identity system any of these things inevitably all those people get economic identity that is portable okay that's the key word here economic identity that is portable fluid it can flow between a permission system and a permissionless system and they can move value around and cardano becomes the connecting tissue between all of these different systems and that's beautiful because then you can have highly customized logic for the customer custom access control and permission uh policies privacy policies just like what ibm is trying to accommodate with fabric but then suddenly anybody who's using that system has a degree of interoperability and they can move value into the main system so this is something that we're going to unify in 2021 we say we're writing a big proposal next year for continuing global's participation in the cardano ecosystem some of this has to do with rolling up all the innovations we've come up with that we're out of scope for the 2020 agreement some of these have to do for emerging next generation technologies like zk roll ups and recursive snarks and all kinds of scalability uh solutions that will really push the system to the next level and then some of these have to do with unifying permissioned and permission lists together the intelliportfolio is going to keep building all these beautiful blockchain agnostic layer 2 systems and cardano benefits from that but any enterprise user of our system benefits from that and the permission setting if we get approval in the 2021 we're going to call this geralamo why geralamo because that was the first name of cardano geronimo cardano and so gerolamo and cardano together makes permission and permissionless it's unified together and that'll become a hyper ledger project and it's something that can compete with fabric and sawtooth and these other things and we think there's a lot of magic there because we're already building out all this beautiful infrastructure that's being battle hardened in a three billion dollar ecosystem and that battle hardening is something that will give a lot of consumer confidence furthermore we're starting to rack up a lot of wins and we can write a lot of commercial white papers describing why the system is better and anytime cardano gets faster the permission side gets faster and the maintenance of that permission side is significantly less involved there are certain things to optimize it but that we can have a much much smaller team on it and they get uh downstream contributions from they get upstream contributions flowing downstream from the permissionless side okay so that's the difference between permissioned and permissionless and atala and cardano atala has become a layer two id uh and i i layer two portfolio i should say and it's all about adding new capabilities oracle capabilities payment systems identity systems these types of things and we're going to keep building out that portfolio and these are blockchain agnostic and what used to be a tallow in the early days which we were using to basically build relationships with third-party organizations and governments has become that larity portfolio and we would like to pull cardano completely into the permission permission of this world and have two deployment scenarios for duncan architected cardano in a way that it's very easy to move between these two ideologies and we did that with byron michelle for example and now we're uh we're in a position where we can abstract this a little bit more keep adding more value to it and sometime in 2021 we'll have a beautiful fluid strategy between both of them or anybody who's in either side of the system will have economic identity and can easily get into the permission of the system if desired and we'll of course always push that in the contracts that we roll out so the adoption of a permission ledger benefits cardona terms of transaction volume and user base okay so i hope that brings some clarity to all of this these things are of course complicated there's a lot of moving pieces there's a lot to think about but all things considered the infrastructures come together quite nicely we have a beautiful network design which is much better than our competitors we have a really simple easy to use bft protocol that's extremely performant and much better than most of our competitors we have a lot of cool things coming like already peer-to-peer is being pushed out and it's layered on top of that beautiful network design and in the extended utxo model and multi-asset and plutus are imminent they're coming out and they're being layered onto that model as well and all of these things go downstream and benefit the permission side as much as they do the permissionless side and our hope is if we get our contract renewal next year from you guys to community when voltaire is ready for that we will have a very comprehensive enterprise strategy that we're going to propose alongside that and that enterprise strategy will benefit and grow cardano as a whole so everybody wins in that respect we learned a lot from hyperledger we learned a lot from fabric we learned a lot from the time we spent with this contracting and just like our work on ethereum classic people often ask well how does that benefit cardano well interchange interoperability is always good because users and transactions make sense but more importantly competitive analysis at its highest level is to build your competitor's product it's almost like capturing an enemy aircraft and disassembling it piece by piece you slowly but surely learn how your enemies stealth technology works and their engines work and their missiles work and so forth and that's exactly what we did by building the evm in-house and by building a fullest ethereum client we developed the mastery of that technology that firms only like consensus have and parody tech have therefore that knowledge can then be applied towards how can we be better what must we compete with what are the things we shouldn't do where are the flaws and so forth in this design and that was one of the biggest benefits of working on ethereum classic similarly all the permission work we did gave us a lot of ideas about how enterprise customers intend on using this product and what's beautiful about an enterprise adopter is that when they talk about cardano they have both options and they know if they don't want to run the infrastructure the movement of applications from one system to the other system is going to be rather trivial for them so low cost migration cost and the other thing is that our layer two prevail continues to evolve and the underlying ledger continues to evolve so they know that the technology that they've built on for free will get better for them they don't have to pay anything for that just going to happen this big treasury system and all this development work that's going on they get all of those upstream contributions and it's just a big benefit to them that's a beautiful thing to be in when you're companies to know that you get free upgrades and to know that you don't have to host the infrastructure if you don't want to if you want to there's an option for that and your user base has a whole dimension of new capabilities that they're going to be able to embrace so i think we have a very competitive strategy as we enter into 2021 and we're going to be really excited to share that with you guys in the meantime i hope this brings some clarity behind these different concepts of vitala versus permission ledgers versus permissionless ledgers and how it all fits together and we're making great progress in every respect and we have some phenomenal product people in every respect and the italia portfolio continues to grow hydra's team is being reconstituted uh prism is is moving along very well and we've already made some major milestones there before the end of the year we should have a lot of cool stuff we're already finding great partners that want to get in that ecosystem because of how powerful it is and these are just two of many layer two solutions that are going to be in the atala portfolio as a company and all of those will be interoperable with cardano and hopefully if you guys want it we'll be interoperable with a permission strategy as a hyperledger project for cardona all right thanks for listening everybody hope to bring some clarity and until next time have a wonderful day cheers
