hi everybody this is charles hoskinson broadcasting on a pre-recorded whiteboard from warm sunny colorado late at night always warm always sunny always colorado so today we get to talk about something very fun and very exciting we could talk about governance how about that i know how much you guys love my whiteboard videos so i'll just keep making them okay and this is governance as of january as of july 13th 2020. it's actually my parents wedding anniversary i think they've been married for 35 years actually 36 years now if i recall correctly so happy 36 mom and dad okay so governance of a blockchain really you're asking two questions who pays who decides you see protocols live within a broader environment and that environment has all kinds of use and utility it has all kinds of businesses all kinds of standards all kinds of stuff floating around and as a consequence of that broader environment that protocols live within there's a question of who's going to pay to maintain that environment and how do you evolve that environment okay technology changes so can you imagine if somebody in 1960 said what is the world financial system going to look like let's talk about payments let's talk about identity let's talk about all kinds of different ways that we can move value between people in fact what's the 1960s notion of value you've asked somebody for a definition there of that do you think somebody would have a pretty good opinion about stuff like world of warcraft gold do you think somebody would have a very strong opinion about uh the value of network effects for youtube influencers for example if you went to a marketer in 1960 and said hey uh you know we can get pewdiepie to run some ads for you yeah they'd be like what's a pewdiepie and why would i care about this strange person in his stream casts over these game things that people have so what's the point the point is that things change they change dramatically over time and when things change then suddenly the protocols the visions the concepts the definitions have to change with them they have to evolve and there's an actual question of who gets to decide how these things are going to evolve and who's going to pay to facilitate the evolution for example all of the banking infrastructure that we have in the legacy system a lot of it runs on cobalt and old java code and old c code and bad stuff from 1980s and 1990s some of it from the 2000s and it's very brittle and difficult to use expensive to maintain if banks are hiring cobol programmers still that's a big problem so we are no different from this as an industry when we think about a protocol like the cardano protocol okay well that's not just cardano protocol because i'll put that in air quotes you have all kinds of concepts that live there for example you have things like the network protocol okay we have things like the ledger rules okay we have things like consensus rules okay and all of these things are like snapshots of our best estimate of how cardano should work to service the needs of cryptocurrencies as they are as of 2020. but what happens when we look to 2025. what happens when we start talking about wiring in cardona with the bis and suddenly having central banks play with cardano an issue central bank issued digital currencies on our system for example and what if they have their own protocols for that we have to be interoperable with those protocols what if we have to update the consensus rules get more scalability what if we come up with all kinds of newfangled network protocols like we can put rena in space and put it on satellites or something like that and suddenly cardano now needs to evolve and understand that now ordinarily when you talk about a protocol built by a single company or consortia basically you just do things by fiat you say this is the way it's going to be and here's how we're going to deprecate run that out but when you talk about protocols that live in the providence of a decentralized ecosystem suddenly you have this big question mark that exists of well who decides who gets to pick what evolution is going to look like so think about linux think about how many people use linux as an example go to old linux you have samsung and microsoft you have apple and 800 plus other major corporations down the line that use linux every single day in major products google for example uses linux in android so if you have an android phone they have a flavor of that and you'd like all these different implementations and these different pieces of software to be someone interoperable and to benefit from each other so who gets to decide what gets into the linux kernel oh well i guess you need some sort of governing foundation so they created the linux foundation how about that but then does the linux foundation get to absolutely positively control all this stuff well not really there's competing projects and all kinds of different opinions and forks and bespoke work and so forth and sometimes it's compatible sometimes it's not compatible and then also who pays the linux foundation for example where does the money come from for that well it comes from those member companies right well don't you think the larger member companies who do more work like the googles of the world perhaps that have a bit more control over the linux foundation probably everybody likes to be egalitarian until we ask everybody to pitch in equal shares of money and when they don't suddenly the people who pitch in the most money and resources seem to have the most influence and control but you see cardano isn't just something like the linux kernel it's not just a network protocol it's not just a ledger protocol it's not just a consensus protocol cardano is you okay at the end of the day it's your privacy it's your money it's your voting it's your property okay it's being designed to facilitate all kinds of cool stuff in govteck it's being designed to facilitate all types of cool stuff in uh normal industry verticals from supply chain to medical records on down yeah we built it to be a general purpose programmable ledger that has all kinds of bells and whistles so what does that mean it means that if large actors were able to just basically decide how these things are going to work don't wouldn't they just transform the cardinal protocol into something that basically preserves the monopolies they already have and therein lies the problem of governance you basically want a system that gives you a good way of deciding who pays and a good way of deciding who decides with it being fair okay and fair is one of those nebulous terms we'll put in air quotes because it's never quite fair and you wanted to be able to deal with the evolution of time you know 1960 to 2020 been a long time what happens when we go to 2030 what type of technology do you think we're going to have where should we focus our effort you need to have a governance system that has those capabilities and as for maintenance you'd also like growth as well so when we talk about protocols living in an environment we'd like to say that there's always more use and utility there's more things it can do over time there's more businesses that are using it the standards are better adopted and better accepted and it's interoperable with all kinds of great systems like maybe central banks or legacy banks or your credit card or apple pay or other things like that okay so we have termed our exploration experimentation in this topic voltaire after the famous poet cynic author who had a habit of pissing people off every day as do i and voltaire basically is a catch-all term for a collection of utilities a collection of concepts and a collection of experiments that allow us to decide and spend funds decide about change and spend funds hopefully in a fair and productive way for ada holders all right so that's what voltaire is in a nutshell it's utilities concepts experiments so utilities things like the volt protocol also known as catalyst things like that uh we have things like the catalyst cell phone app so basically uh easy place to vote these types of things concepts like the cip process and we'll cover all these things and experiments like funds like fund two funding rounds that we're planning on doing and so forth and i'll go into those as well but the point of this is that all of these things should allow us to decide and spend so decide about change and spend funds in a fair and productive way for ada holders basically the people who are vested inside the ecosystem all right so what we did is back in february we said hey itn guys we should probably start using that the incentivized test net as a code base to evolve so we had all these papers that lived in the science realm that were written by bin chang and they were voting systems voting protocols all kinds of different ideas about threshold voting and liquid democracy and so forth and we said hey let's uh let's take these papers and let's put them into the incentivized test net over time and let's keep evolving until we get to the point where we have kind of some sort of beta protocol and this protocol will run in parallel with cardone so we have cardano and then we have some sort of like permissioned or permissionless sidechain and that permissioned or permissionless sidechain basically watches cardonal and then based on things that happen with cardano it will give a subset of ada holders the eligible to vote etv okay so this was the concept that we started in february of this year we said let's take the itn let's start operating on that code base and let's implement a bunch of papers after we've implemented those bunch of papers eventually we'll get to a point where the protocol is somewhat stable and we can run it either a permission mode that would be obft or had the itn survived we can run it in a permissionless mode that was that idea of the should the itn stay alive or not doesn't particularly matter because effectively it's this little chain that's connected to cardano and it's going to watch cardano and watching cardano for certain events it's going to give a subset and that subset we call the etv the people who are eligible to vote the ability to vote on the system and then votes are tallied votes are held votes are tallied and then eventually votes are acted upon all right so what's really nice about this design is that this is kind of like an experimental sandbox so remember we said hey we need to run experiments so if we run experiments as a side chain outside of the system we can rapidly evolve it and our cadence that we're hoping to get to is six to eight weeks so our goal is every 68 weeks we're doing something new and we're adding capabilities adding concepts we're thinking about things very clearly and that will allow us to basically hold lots of votes tally lots of votes and then actually start acting on those votes now the lowest hanging fruit and the least controversial fruit is spending funds because you know what if mistakes are made well we can always correct that deciding about change is a little bit more difficult because if you put major changes into the system the system may become unstable or collapse and be very difficult to fix or controversial to fix for example the bitcoin bitcoin cash fork or the ethereum ethereum classic fork for example so that's a little bit higher burden in bar but spending of funds is a really good way to start so when we announce will terror at the cardano summit basically we're saying hey guys we're turning the system on and we're going to start with the spending side and we start with the basic unit of spending this concept of a ballot so basically a ballot is just like a funding proposal okay and you're just saying hey i need some eta and if you give me this data i do x whatever x may be x could be i'm going to go pivot my token to cardona or i'm going to go build a bunch of atms in ethiopia or i'm going to go be an infrastructure developer build infrastructure for cardinal for a year whatever the heck it is okay so you submit a ballot and in the interest of being able to be very agile move very quickly we didn't want to reinvent the wheel and build a completely new ballot submission framework so we actually partnered with an existing company called submittable and submittable basically specializes in allowing people to submit proposals ballots these types of things i'm sure that i've spelled it right it's a mint table there we go submittable basically specializes in giving people the ability to submit ballots okay so what happens is that we kind of look at a timeline and we say all right first there's the submission phase where we say hey guys if you have a really good idea here are a bunch of template examples of things that you could do and go submit the submittable and door at the end of july we'll actually discuss this in the product update how to do that and there's going to be a whole work flowing process for this so you can take a look at the templates and get a sense of different things like maybe you want to run a podcast uh let's talk trading let's talk pluto's whatever it is maybe you want to be part of a scam squad and get paid to go hunt down scams in the ecosystem maybe you have a business you want to get started maybe you actually want to be a core developer and work on the uh the code maybe you want to do marketing maybe you want to sponsor a conference that you think would be high visibility the sky is really the limit so there's basically a template that will demonstrate the community for different ideas and then anybody can submit a ballot to submittable then they'll go through a pre-filter and a pre-filter is basically saying is the ballot properly formatted and a bunch of these automated criteria to prevent junk or spam or ddos attacks because people absolutely do do that and after going through that pre-filter then there is going to be basically this concept of innovation management so we are finalizing a vendor here but then the idea is that we would like ballots to be scrutinized by the community and experts and that there be proper incentives for them to take this seriously and kind of work and ask questions like you know is this really a good idea are you spending too much money are you asking for too little money do you have the right background blah blah blah all these types of things and the idea here is kind of like a soft filter so they don't outright reject ballots rather they attach meta data with thoughts for example if you write a book and you post it on amazon the buyers of that book have an opinion and they give you ratings one to five stars and they say oh this is the best book in the world or no i think this is garbage and here's why but basically that metadata that they attach here gives us some way of filtering ballots and ranking and ordering ballots so that when they appear to the end user they appear with some form of a story furthermore what this allows us to do is develop an expert class a communi within our community of people whose day job is to basically be professionals who are like our version of a vc they look at uh things that people want funding for and they ask should we do this so this allows you to build a reputation up this allows you to build social credit up with people uh and over time it allows you to have a lot of influence and say within the community even if you don't necessarily have a lot of ada for example andreas antonopoulos is an example of a bitcoin expert andreas is well respected in the bitcoin community he wrote mastering bitcoin he personally does not have a lot of bitcoin yet despite that he has enormous amount of influence in the system as a whole and his opinions are well regarded similarly we can build up an expert class within cardano and use a lot of the delegated democracy systems that we have where eta holders can actually delegate voice and power to various people maybe it's rick and felipe maybe it's a particular ambassador you like maybe somebody outside of the ecosystem that we'd like to actually bring into the ecosystem and incentivize to give his or her opinion uh for example maybe we can convince elon musk to come in and have an opinion on something especially on the network side or you know pick your favorite person okay but the point here is basically a soft filter so you do a pre-filter a soft filter and then after that there's this concept of a voting round now we are right now working on a two-stage voting round we probably will not have that available for february our hope is sometime in july to have the submission phase ready probably late july early august and then the first fund voting and registration all these things will be in that august september time frame because we're just getting everything started getting people ready but my preference would be to have a two-stage system first with a preference vote and then second a threshold vote and there is a very good reason for this this is called choice architecture have you ever gone to a restaurant and you see a menu and it's got 950 options on it and they're all somewhat similar to each other you're not sure what to order and you just look at it and you're like what am i looking at this is crazy then you go to another restaurant and there's only three things on the menu and you say okay i've got a very strong opinion is it the duck the fish or the pasta right for example like a plain menu when you fly you order off the menus they only have two or three options okay so we have to separate funding priorities from receiving funds and i'll explain this nuance here in a second so funding priorities are things like hey guys let's say we only have five hundred thousand dollars worth of ada to spend for this round so if you only have five hundred thousand dollars to spend for this round how would you prioritize where that money should be spent should it be spent on marketing should it be spent on development should it be spent on development tooling should it be spent on infrastructure like getting a debit card or getting a credit card to accept data should be spent on partnership development should it be spent on security auditing etc etc everybody in the their mind has a list of priorities so what's going to happen in practice when we launch this because people like money is that we'll have five hundred thousand and eight of the spend for example with the first fund but then the community is going to ask for i don't know let's say two million dollars worth of stuff now you can solve this with a threshold vote where you just say all right take a look at all two million dollars worth of ballots and vote up down and then the you know we'll cover some sort of system where you know the best 500 000 went the problem there is the choice architecture is pretty bad do you really want to look at 200 ballots or 300 ballots and decide whether this is both a priority and then actually due diligence on whether they receive funds or not you're asking two questions in a single vote too many choices it's like the menu with 900 options it's going to be very very difficult so what will end up happening is people get into voting patterns where they'll just vote yes to everything note everything they'll only vote on things they they care about ignore the vast majority of things or vote on things that are ordered so the things that they see at the top of the list they'll read but like google search results or amazon page results the things that are on page 15 never really got seen or examined so what you want to do is create a game where you have this basket of ballots okay and then every single one of these has a dollar amount attached to it or an ada amount basically a certain value to it and then what you do is you just pick your priorities in order of the most expensive to least expensive everybody gets to pick their own preference and this is called a preference vote okay and what's really beautiful about this is that you just keep going until you run out of your resource in this case you keep going to you have five hundred thousand dollars worth of ballots so let's say you really like this one marketing proposal and you think marketing is a high priority so it's three hundred fifty thousand dollars so you pick that you have a hundred and fifty thousand dollars left of budget to go pick so you just keep grabbing stuff out of the bag until eventually you spend up to that half million and then you're done now other people will have other priorities and the beautiful of a preference vote system is that what this will allow you to do is remove the ask and filter it down to a set of ballots that match the amount of money available to spend then people will have a much smaller set of things to vote on and consider that's that second vote the threshold vote the yes no now if you have five to ten things to think about as opposed to 500 things to think about the odds are that you'll spend a lot more time and effort looking at those five or ten things and also it allows the system to converge the preferences and it allows the community first time ever prioritized where should money be spent in what order should it be marketing should it be development should it be partnered uh development you know which what are the highest priorities for these things so it gives a community driven steer to the use of funds in the dc and there's plenty of good methods for this like board accounts is one border and condor say is another one and it's called preference voting so we're actually developing a preference voting protocol it probably will not be available in the august to september time frame so we'll just do it with threshold voting uh and then the next generation because we're doing these things every six to eight weeks we'll add a preference voting thing in in addition to that every ballot will have that soft filter of the metadata attached by the domain experts so basically community people and we'll have a discussion throughout this month and next month of what that looks like and how people can participate there and i think there's a lot of people that be very excited to have a voice there and the point is good idea flow and contrarian views so it's not good to just have an echo chamber you want a diversity of thought so all kinds of opinions across the board both negative and positive to help curate this all right so through partners we'll work with submittable and you guys will be able to submit ballots come july and then we'll have some form of an innovation management platform that will help with the curation process so that metadata can be attached to ballots then eventually you guys are going to be able to vote on the priorities that you feel and then you're going to be able to vote on thresholds so basically yes no and if things get to a certain level then they succeed and the goal would be to spend the fun but the community gets to decide if they only spend let's say three hundred thousand of the five hundred thousand dollars worth of ada that's okay the funds will be available there for the next round and roll over so you don't have to spend all of it it's just basically a maximum amount that can be admitted at that time period okay now there's a lot of things to think about like what is the relationship between the cardano main network and the voltaire side chain by design we did not explicitly connect them so they're totally independent systems right now voltaire and cardano don't talk to each other outside of the fact that we manually will use data from cardano and inject it into voltaire and then after the vote has concluded with the voltaire system that data the outcome will be injected into cardano and operated on in particular every time you submit a ballot a ballot also includes addresses to spend the money too so if your ballot is successful we know where to move money on the cardano side and that process can become increasingly more automated eventually fully automated over time and regulated by a smart contract but by being decoupled systems we can rapidly upgrade the voltaire side chain and keep adding more capabilities more exotic voting systems and so forth but we have to have a mechanism on the cardano side for people to participate in this democratic process and so that's basically voter registration so why do you need to register to vote well there are two reasons one is you have to get an understanding of what is the decision threshold okay and then two you want to exclude certain actors okay and we'll get to that in a second so first the decision threshold when you look at something like a presidential election when somebody says i have a majority of the votes they don't mean that 50 plus one of all people in that population of that country who were eligible to vote actually voted for you what they mean is of the people who registered and showed up you've got a majority of those people so for example in the united states we have 300 plus million people and of them i think well over 100 million are eligible to vote in a presidential election but it is not the case that people win with a majority and get 50 percent of that pool of eligible voters there's plenty of people who didn't show up to vote they may have registered not even bothered to register to vote and this is very important because you have to set your decision thresholds for either majority or super majority depending upon of the active registered people so you need some sort of flag to the system to set that participation threshold that decision threshold of whether things are going to pass or not and so there needs to be some notion of voter registration now we get asked a lot how do we exclude the exchanges okay as much as we love them they don't own the ada and so they should not be able to just use the fact that they have lots of it to influence the democracy of our system it is not by an answer bittrex or coinbases or any of these other companies place to decide the future of cardano it's the people who own ada to decide that and they're a service provider as are all custodians so how you accommodate a registration and also excluding exchanges is through a token locking mechanism so basically what you do is you say okay take your ada and you're gonna initiate a transaction that locks it for time t and that can be epics that can be slots and this is one of the things that we're going to be experimenting it with which is the locking time and then two it's going to generate a new address in metadata and this is kind of like delegation addresses or these types of things so this locking mechanism is an explicit signal to the cardano network because you can see the event on chain you can see it happening and basically you say okay this is a registration round for this fund uh and this use of funds fund to whatever you end up calling these funds and you're going to lock for some period of time anybody who in that time period locked for the amount of time they needed to lock all those addresses that were generated are now basically the registered voting set so when we go back up here and we say okay we're going to inject something from cardano what we're going to do is we're going to watch we're going to watch cardano and we're going to look for these registration transactions and if they're legitimate then all those new addresses become the utxo snapshot for voltaire for that version of full terror voltaire fund 2 or fund 3 or something like that okay so if it's a permission system going back up here where we said hey it can either be done as a permissioned or permissionless system if it's a permission system we would just start a new version of voltaire if it was permissionless we would just actually create a voting token for that realm and we do a snapshot of all those new addresses that were generated in metadata and that's the voting set so that's all the people who have decided to register to vote and then uh basically if a majority or super majority or whatever the decision rule is for the particular ballot vote for something it'll either pass or fail depending upon the decision ruling thresholds that are set in the system and that will be experimented with and played with and so forth so why does this exclude exchanges because exchanges are on demand accounts exchanges most regulated exchanges are not allowed to lock your funds and prevent you from getting access to those funds for a protracted period of time if the only way to vote with your tokens is to lock them for a little period of time exchanges would not be allowed to do that according to regulatory policy and you'd actually be able to see that exchanges are locking because you can know which exchange accounts or exchange accounts so this should resolve a lot of those issues that that occur it would actually be a breach of regulation and it is detectable inside the system and uh because it's detectable in the system and right now we're manually doing these snapshots uh there's even option for manual intervention for these types of things and over time we can automate things a little better even put governance layers in to to do that so anyway what this basically means is that we have a really easy system that is secure because you're separating the voting set addresses from the spending addresses so when we do this snapshot here you're not actually moving over your private keys you're you're actually using a new set of addresses and if those get compromised someone can vote for you but it doesn't compromise your data you don't lose your data so it's easy to move between the two systems and it's very easy for the user to do this inside the user interface when the locking mechanism is made available probably not for fun too the one coming in august september but after the next hard fork it will be in daedalus we'll have a whole voting center in daedalus you'll just click a button it'll warn you that you're going to lose access to your tokens for whatever that time period is however many slots or epics probably a few days we'll uh we'll figure that out uh and then you get access to them again after it's done but then you're now basically eligible to vote your uh your registered new system and then in the new system uh we'll have a voting interface for daedalus and we'll also have a cell phone app and you'll be able to see all those ballots you'll be able to see uh we'll have a nice little interface for submittable for you to be able to submit your ballots and show you how to do that you'll be able to have a link to that innovation management platform where you'll be able to see what experts are talking about and engage and and do those things and then eventually we will convert this two-stage voting system where the first round will be about preferences and then the second round will be about who actually gets funds or not okay so this is kind of an idea that we have and we're going to be playing around with uh with stakes for the next few evolutions of voltaire and really the kpis of this matter are participation and outcome okay so how many people are participating submitting ballots acting as an expert talking about ballots what level of conversation are we having and are ballots actually going to get funded or not are people getting funds when they ask for funds and then you can track that outcome to success so are they executing on that are we building community driven governance structures like auditing and oversight there's all kinds of really cool things to to look for here and then the other thing is ease of use so one thing that we're exploring for example is how do you actually activate your voting application so if your users of jorvo a lot of people didn't like that because they had to enter in their wallet recovery phrase to um to vote well what i'd like to do is a qr code so if you have your cell phone app basically you can just register it with a qr code in daedalus and you just scan it and then the phone is now active and really what's inside that code is a shielded private keys so as long as you have your spending password or whatever we use to shield that just scan something and boom your phone is turned on it's ready to go you're ready to vote you're ready to participate and be inside that system and then we can even add dids to this so prism can come into place and so forth so we want ease of use we want to be really easy to get people into the act of reading ballots looking at ballots discussing them working on them and having productive active conversations with lots of quality feedback lots of diversity and so forth now all of these voting tools are reusable so what happens is over time as the participation level goes up the outcomes are looking pretty good the voting tools are maturing what we will do is merge will tear with cardano itself so basically either voltaire will be re-expressed into cardano and a hard fork will happen all those voting mechanics will go on chain or it'll stay as a side chain but basically have a direct connection where the chains can communicate act with each other and there's some sort of smart contract bridge and right now duncan and dora and the other guys when they clear gogan and um and uh byron uh we'll figure out that architecture of what makes the most sense of how to bridge that but we have a beautiful sandbox to rapidly evolve things and get to a final design and then we'll update the specifications accordingly okay but once that bridge has occurred then uh what's going to happen is that voltaire will run completely on chain and completely decentralized meaning it does not require centralized curation or services for the system to work well now private services will evolve and materialize uh because they enhance and add to the platform it's kind of like dwarf fortress you have the standard tile set but then you have obviously user created ones or similarly minecraft you can reskin your blocks and people will certainly commercialize around the edges both in the open source and proprietary way but ultimately everything will eventually merge on chain and we will move from just spending ballots to cips plus cips so the actual evolution of the system of when and how should we hard fork what should be in the design of cardano the blueprints of cardano so remember in the beginning of the video getting back to here where we talked about hey aha yes who decides well you decide and when we talk about evolving the system to meet needs like your favorite quantum resistant algorithm or new consensus algorithm whatever have you this is where the cip process is going to exist and we can reuse all those voting mechanics for that and you'll notice that we're resistant to exchanges you'll notice that there's high participation already there's good idea flow there's a pool of experts to create checks and balances there's filtering systems to make sure that the ballots come through and there's good choice architecture that allows you to deal with both priorities and preference and also allows you to get to certain thresholds and you can augment those thresholds to have a deeper pipeline for example dramatic changes to the system for example things like changes to the monetary policy of cardano should we enhance the inflation rate print more aida changes to big things like should we go from proof of stake to something else you can actually even have multiple rounds of voting end rounds of voting over a longer time horizon to create more resistance in the system to sudden change and so forth all of those mechanics will be built hand in glove with the community the cardano foundation i o global and other partners but you have to learn how to walk before you can run and we decided that it would be nice to do what we did with the itn with voting basically you know look at what the itn did it educated over a thousand different small businesses on how orborus works and then suddenly they had an opinion about our parameters the k parameter this and that so forth if we'd start in december and say how should we set these parameters with the community most of them would not have an opinion because they didn't know enough about how orborus worked but after six months of running the protocol operating the protocol a lot of community-driven knowledge was built up about the cardinal protocol and how those parameters work and as a consequence people could have a very well informed opinion about what those parameters should be said so much so that we had podcast episodes about well similarly when we talk about the blueprints of the system the cips of the system you have to kind of build up enough connecting tissue and momentum and community knowledge to get to a point where they can really have a strong well-informed opinion about the design of the system as a whole the commercial priorities of the system so you start with spending ballots to get the user experience to a point where it's high participation and build up a great strong representative democracy for the system lots of experts floating around helping people along and then once you're really comfortable with those systems you can turn on the cip process and then we have an update system that we've been building with the european union specifically a horizons 2020 project and we're working on it with ibm research and guard time and we've actually can turn that system on fully decentralize that system and make it uh basically compelled to follow what you guys vote on for the cip side of things so this is kind of a brief overview there will be many videos of this kind hopefully made by door and his team as we kind of experiment and explore but remember the point of voltaire is really about giving us a nice sandbox where we can think carefully about utilities concepts and experiments and we can do that with the community with value at risk like we did the itn we could do that in a safe place that doesn't slow down cardonal rather it can be done completely in parallel and because there's real money at stake this will for the first time ever unlock to the community the ability for the community to get funded for things that we didn't consider or prioritize so it creates nice checks and balances there the longer that this experiment runs the more knowledge we gain the more capabilities we get the more stages of voting we can have we can have end stages and with all kinds of different voting systems for different things and then inevitably that'll allow us to get to the point of being able to get a very good opinion on who decides so not just where do we spend money but also how do we as a community come together and decide the long-term evolution of cardona no cryptocurrency has resolved this no cryptocurrency has perfected this uh some like tesos and dash have made meaningful and significant contributions to this problem and they should not be diminished uh they're great experiments and there's a lot to learn from there but overall no one has ever solved this problem in general so we think we have found a process that will allow us to gradually over time get closer and closer just like the scientific method for proof-of-stake to actually having a meaningful solution for this problem for not just our ecosystem but for all ecosystems all these voting mechanics all these ideas these things that we're building can be governance as a service and if there are wrapped assets if you watch my last video my last whiteboard video we can provide these same services for bitcoin and litecoin and other systems and hopefully cardone can become the first true governance chain in the entire cryptocurrency space and help people reach complicated decisions you also can reuse these voting mechanics potentially for dows and smart contract governments inside the system so instead of the smart contract designer having to decide all of these things they can reuse all the voting mechanics for their native asset and suddenly they now have a registration system and private ballots and preference voting and threshold voting and so forth they get all of these things for free and they can just set those parameters as they see fit for the governance of their tokens so this allows them in-house to not have to reinvent governance on the fly the system itself actually facilitates and helps them and this system is being built with oracles and other such things so you can inject outside information we already have to do that because these are decoupled systems right now voltaire and cardinal are separate so there has to be oracles that can inject information in but you can also inject information from the outside world as well so uh brief video on voting it's a very rich and deep topic it's a sexy topic and it's going to consume a huge amount of 2021 as we go and beyond just being the best smart contract platform and the most decentralized cryptocurrency uh this is going to be the really true major contribution i think to cryptocurrencies everybody can find ways to get faster everybody can find ways to have slightly more secure smart contracts no one has really cracked the governance not yet and if we can do this i think cardano will replace bitcoin in the long term i really firmly believe that uh because frankly it solved all the problems this is evolution in a box we can use this system to be around for 50 years 100 years 200 years we look back to the beginning when we said hey imagine what the world would look like in 1960 well we don't know what the world is going to look like in 2030. what matters to us as an ecosystem and as a protocol is we have certainty that whatever evolutionary machinery we have the system's going to be able to evolve to meet the needs and stay relevant in 2030. bitcoin does not have this property ethereum does not have this property no one on market really has it and this is the great differentiator and it's um the holy grail i think we're chasing it and we're chasing it like we always do in a safe systematic and thorough way and we don't leave anybody behind along the way so thank you so much for listening i hope you found this video as informative as i had fun shooting it i really do love doing whiteboard videos and you guys all have a nice day and until next time take care
