Aeternity blockchain enables high speed transactions

0:00I'm Ashton Addison from blockwest capital for investment pitch media and today on the Crypto Coin Show at vianoslav malahov founder of Eternity blockchain yanny welcome to the show and thank you for taking the time thank you Ashton it's a pleasure to be on your show and yeah excited to hear your questions yeah thank you for taking the time I'm

0:22excited to dive into eternity I know you have a lot of experience in the blockchain industry and I would love to start off our conversation just hearing a little bit about your personal background what drives you in the space and the house sort of that led to Leading eternity and solving some of these Solutions in the blockchain industry all right yeah what drives me into space

0:45Originally I mean before blockchain before crypto I started computer science I studied economics as a minor as well I went into the startup scene I thought I'm gonna launch let's say like Web 2.0 mobile application something like this I have failed discovered Bitcoin I thought after reading Bitcoin white paper I thought hey this there's something to it I went

1:13to a Bitcoin Meetup and there was a really interesting crowd so I mean how I found about Bitcoin was actually through my experience with the computer science I Googled for cryptocurrency just plain cryptocurrency because I knew that we're gonna need crypto and currency together to create new currencies on the internet for the internet and this was really logical for

1:40me and yeah I decided I mean I bought my first Bitcoin and some time later like a year later I decided to become a blockchain or Bitcoin professional in the sense that I spent all my time to first like soak up all the information which was back then available and then it started working on several different projects for example the dark wallet project or

2:06for example also the CRM project where I was very early involved I had also worked with vitalik before ethereum on another wallet which was called coin a wallet project which was implementing maybe one of the first solutions for digital artists to issue as well as timestamp digital artwork as tokens as satoshi's back then

2:36we implemented it could we would say today nfts yeah on the Bitcoin blockchain yeah the spirit with Trent McDonald who afterwards started the ocean protocol and big chained B and this was like before before Russian Navy yeah I brought about this is the Godfather of ethereum post and

3:02I don't know I was not so happy with some things within ethereum also especially the technology and I decided after seeing that also the market understands the potential of smart contract platforms I decided to create a technologically more advanced version written in ayalang yeah there we are now going to Eternity

3:29Yeah so I like to create things to start things like to innovate and in the space and yeah and I feel like there's huge gap between you know first learning about Bitcoin buying your first Bitcoin to all of a sudden starting a scalable blockchain and creating a protocol and I'm sure you learned a lot in you know the ethereum days and then

3:58you sort of that entrepreneur's Journey where you see some of the inefficiencies and the things that could be better in the process and all of a sudden you're like well I guess I need to build it myself yeah I also learned a lot from from Bitcoin and especially differences between Bitcoin and ethereum I'm somehow also like a Bitcoin maximalist I believe that Bitcoin needs

4:19to succeed so that all the other cryptocurrencies succeed and there's only one Bitcoin which is which is the one with the largest amount of proof of work through all the blocks meaning the sum of it and this is I mean all the projects which are kind of like doubling or trying to double Bitcoin they are not Bitcoin this is like the most

4:46important value proposition that is like 21 million coins and that you're following the one the chain with the most improve of work and we see this very similar with eternity in the sense that there's proof of work with the main Nets and yeah well maybe one of the very few work smart contract platforms as well although we also innovate is quite a

5:10lot on the proof work mechanism itself and yeah which hyper chains also prove stake blockchains you can launch I could go more into the details like the technological differences between General Israel ethereum and saturnity but yeah yeah I would love to sort of start high level there you know and as you said you learn a lot when you sort of learn the differences between Bitcoin

5:34and ethereum and I would love to know more about eternity and those inefficiencies that you found and sort of what exactly makes it different unique and valuable yeah so for example State Channels State channels are part of the protocol they're part of the smart contract language it's really built into launch private smart contracts with within those State channels which

6:06can like the users of the smart contracts can then exchange transactions with the speed of light without paying transaction fees it's it's quite cool technology in the sense it is still possible to enforce it by the chain so as if everything was on chain from the beginning but every by default every State's upgrade gets signed by both

6:32parties like a legal contract as well if you're a mental legal contract or have some sort of delivery of something you get like a receipt it's yeah kind of like attachment to the contract is a proof that things get done you do this in a very similar way off chain still being able to yeah gets the get the blockchain chords rolling essentially through

7:00publishing the last science day 8 and the smart contract in case of this agreement or very often just the counterparty disappears so this is one thing which really differentiated eternity from most of the other blockchains but also that there's a naming system or oracles built in so generally eternity abstracts on a higher level so when you program a smart

7:23contract on eternity abstract on a higher level than writing a smart contract in solidity you also use the different programming language it's a functional programming language which is made made for writing faster safer code because you don't have side effects functional programming style essentially forces you to add to the yeah call it functional style

7:52so that you have return values which which you work instead of changing code or stage through side effects so you can apply methods of formal verification phone approves much easier and this for this for example we worked with

8:20We're still working with a team of a Specialists and exactly these systems for proving through maths that software that's what it is supposed to be doing and yeah with the impressive style facility this is I mean it's also somehow possible but way more difficult because yeah just developers can more easily write spaghetti code or just to do like a

8:48quick fix they're just circumventing something and then a box appear and if we're talking about trillions worth of assets on blockchains we want to make really sure that the software is really doing what we're doing and want to apply different methods to check it and the blockchain itself is also written in a smart contract language it's written

9:11in Airline sorry in a function language it's with an airline function language made for distributed systems writing distributed systems coming out of the telecommunication industry in Sweden and Erickson and it's used by by Cisco YY as well as Ericsson for running the internet switches and telephone switches so there is every

9:41time you're doing something on the Internet there is probably Airline running on in the background somewhere with very high probability and this makes it this makes alternative really integratable on a very lower level of the internet and imagine to have full notes running there how fast eternity would be and if like all the telcos would just be able to install our

10:09This on their let's say maybe base stations or switches this would maybe be the most decentralized Network it's not there yet but it's possible because it's written in Ellen and yeah other things do you want me to continue yeah I know I think that's a that's quite a bit of digestion and it sounds like the base layer you know there's a lot

10:35that goes into it to make a secure scalable high-performing blockchain one I'm curious about is you know laying all that Foundation to bring you know the application layer and the usability of the smart contracts and decentralized applications on the network with all of what your team has done so far is it able to compete you know eternity with these layer one protocols

11:05that have all the major kind of daps that we see right now with defy daps nfts other Financial use cases is it able to do all that stuff or what are some of the main use cases of H entity yeah I mean I see mostly like experiments happening in the space or yes there are let's say early prototypes but there's no mainstream adoption yet and I believe

11:29that's if we have like one killer app which achieves mainstream adoption on eternity blockchain of course the 20 blockchain has a has a big chance and yeah I mean I'm involved in different projects and also like kind of like an investor our contributor depends and it's interesting what's what's happening I mean there's lots of hype in

11:55this space so I'm picking more let's say the technological interesting projects which are maybe also more like under the radar but in case there's a breakthrough we I mean there's the product needs to make click at some point and then the users just need to grow naturally or organically and I don't think any project has such or has this click moment yet

12:24What would you disagree and curious about your opinion as well yeah I know it's there's there's a we're very early there's a lot of adoption to go and then there's so many moving pieces to these protocols like eternity and but from my discussions throughout the past years over you know a blockchain adoption mainstream adoption trying to get you know even just the tech savvy

12:48users trying to get adoption from these applications it seems that you know the user experience and usability first of all from the developers to make it easy to develop on the platform but then having the once the applications are made the usability of those applications for people that you know those people that were like you in the beginning were they just bought Bitcoin

13:09and they're just getting into it you know how can they easily get from step one to step three of using dapps on eternity when you just got into the space and you don't have to become a developer and learn all this code and go through all the intricate processes it's very tough for all of these protocols I'm curious what your stance is on building a platform for you know

13:33is eternity more focused on in the long run having end user facing daps that are easy to use there's also other protocols that are you know connecting and providing value for all these other blockchains and a lot of it's on the back end and you don't really unders need to understand you just know that it works yeah I mean I don't speak for 20 I speak for myself and maybe as a

13:57representative of my company but 20 is fundamentally also like a Dao in the sense that it's decentralized and people with tokens Can Vote and soon there's also like a new upgrade with Hyper chains which will enable other people to launch their own eternity style proof of stake chains which will always doubts but to go back to your question

14:23I mean answering from my personal opinion I think I think I mean the ecosystem needs to return the ecosystem needs to grow for this more capital or generally capital is a required thing yeah token sales is something which is a proven mechanism in the decentralized world to bring in more

14:50capital and I would like to see more token sale projects on a charity blockchain and I'll be happy to support them myself and also with my team I'm not speaking here as the like a 20 crypto Foundation but like like yeah I don't know it's like several attempts to start myself some sort of

15:19Token sale Factory maybe it's going to succeed at some point I learned from my experience that you should just like the one of the most important things for success is just to continue and yeah and from what we've seen on ethereum it's become very easy to create a token or create a project or do a launch you know and with chat EBT I see

15:45people being able to create tokens in 27 seconds now or something like that obviously you want to value quality over quantity but having that ease of use and the ecosystem right if it's it's like starting a company when you live across the street from y combinator you have that support financial support others parts of the ecosystem to help support

16:09you think that would be possible in the long run on The Eternity platform to be able to easily launch a project and receive support from the communities yeah I think so like for a mainstream project I don't think that let's say it matters so much I mean it depends on the use case but for many of them it doesn't matter which blockchain but economically they would

16:35maybe pick the cheaper one here so also like lots of space alternative blockchain I mean there are lots of different reasons why you should pick another blockchain especially in hype times when the transaction fees are rising people are really looking for more scalable Alternatives and the change is really built for scalability which state channels as I explained and also hyper

16:54chains with essentially being able to launch more chains on demand or yeah I think I think people or teams especially or the tooling for creating tokens should be improved as well as the tooling for creating chains should be improved either it's just one click you don't even need to ask your GPT although Church GPT can even write Sofia smart contracts I was also

17:23surprised that the AI learned how to write Sophia smart contracts at least simpler ones but yes the tools to create smart contracts this is one of the most important things I mean many of or say I think I think we can almost like proudly say that most of the funding which we

17:50receive through the token sale which we did in 2017 went into development and here lots of the stuff was tooling as well to make blockchain and crypto more accessible and yeah yeah I'm curious on the you mentioned about the hyper chains a few times and scalability and at the beginning you also spoke on you know the

18:18the strength of proof of work consensus and there's a debate back and forth between the Bitcoin maximalists and ethereum moving over to proof of stake and you know which is better which is more scalable and secure I'm curious how The Eternity protocol balances that you know having the scalability with the hyper chains but some people think that the proof of work

18:40consensus isn't as scalable as a proof of stake so where does that balance fit and what do you think is the best balance for scalability versus security I don't know I think they're mixing something up like the proof work mechanism I think it's even more scalable than than prostate because the block headers are smaller and let's say the proofs are also much

19:03easier it's much more elegant and compact chain design and also easy to prove and even most longest running so there have been many problems with proof of stake like you have seen like Solana for example or yeah do the first pro stake blockchain still exist I don't think so that's the first work blockchain still exist yes it does so

19:31It works just speaks for itself and super useful and it's it's almost like a primitive in cryptography and should be used in a smart way where it enhances security and I believe if you add work to any proof of stake chain in a smart way you will have higher security for not so much higher price I believe and here with hypertension

19:59we have like this hybrid approach that we are piggybacking on the proof work of a parent chain I believe Bitcoin is a great pair and chain but also Dogecoin for the beginning is amazing because of the lower much lower transaction fees and we want to essentially use this parent chain for example Bitcoin or Dogecoin as an entropy layer time stamping layer or entropy source

20:24and time stamping layer for kind of like an infinite amount of child chains or hyper chains as we call them and yeah they can be even nested and again they're like reusing the proof work in a very very smart way without paying for it just paying transaction fees to the parent earning hyper chain coins so this is something which is hopefully launching later this

20:50summer this is my personal view to these things although I'm not getting a guarantee out of the developers and like once I'm in contact with yeah and with the hyper chains being able to I feel like the inefficiencies with ethereum one of them being when you create a project you don't have as much flexibility and if something were to

21:17happen to ethereum or like what's happened with Solana where it got shut down for whatever reason your Project's sort of stuck at a standstill and from what I understand from some of the para chains on polka dot I'm not sure the differences between hyper chain parachain is that it becomes a standalone blockchain that if the layer 0 original chain were to have an issue

21:38your blockchain and your projects still sort of running and able to run and still function is that the case for the hyper chains or what are the other main advantages later on when a project moves into its own hyper chain with eternity yeah I mean for the launch it will be simple so there will be one parent chain but later on it should be definitely possible that through a

22:02governance decision through the token holders they essentially decide from block 5 million and one they is gonna switch to another parent chain and they're gonna essentially then read or run the full notes of this parent chain and read this parent chain as well and write to it as well because it's like a requirement it's possible it's adding

22:27more complexity but it's quite easy to be implemented yeah because I mean the parent and the child chain layers essentially are completely separate and just just a very very few transactions need to be inserted into the parent chain and the parent chain or the parent chain miners they don't know anything about the hyper chains for

22:52them it looks just like a standard transaction with some random hash inside so they can the hyper chains can operate fully stealth and they don't need to fear that they're gonna be you know threatened by the parent chain operator because they're causing I don't know whatever amount of transactions or a miners or this is also something very nice which for example with

23:14merge mining which is also a concept which some smart control platforms are using as well as Dodge coins actually using is it's not the case so here you need to ask for the collaboration of the miners to be essentially merged mind with Hyper change piggybacking consensus this is not the case I mean anybody can just launch a hyper Genesis this is in the

23:41plan and the full release of hyper chains that's not out yet is it no there's a test net or a test version and some sort of graphical interface also for staking but later this summer expected there should be a full full version there is I think also version which is already putting commitment transactions into

24:10a Bitcoin chain a bit say Bitcoin because also Dodge Coin is it's not Bitcoin chain because it's based on bitcoin and is that one of the main focuses that the Dow and the protocol is working on over the next part of the road map or is there any other major milestones and sort of what's coming next for eternity yeah I believe for the 20 crypto

24:34Foundation hyper chains is the most important thing like on the kind of like core protocol level or like a way how everybody can launch their own zero I mean obviously let's say it's kind of zero one but it's also I mean you can say it's your own blockchain it's like since layer zero then for you because it's independent from the parent chain just piggybacking on

25:01the work of the parent chain and using it as a Time stamping layer and sorry I got I'm your question was about just hyper chains as you mentioned they're the main focus and I was curious if there was anything else on the road map yep and for this superhero wallet which I'm also involved in superhero.com is a wallet for the 20 ecosystem at

25:29the moment I think the plan is to expand it to a multi-chain wallet supporting of course hyper chains but also Bitcoin and maybe even ethereum and a few other other technically quite cool projects and here D5 is also I think one of the focuses so yeah wallets should be I mean my vision

25:59It's like a gateway to a defy world and the dabs should interact really smoothly with the wallet and so far I think it's really complicated it's a hassle so this is g-axis is a thing to crack for mainstream adoption I think wallets will be a huge step for that adoption having a end user wallet that's able to interact with the protocols very easily

26:28and without having to learn how to code I feel like that's a huge step yeah now I'm curious on how to learn more about the Dao for eternity and just the foundation and learning more about the protocol or how can people get involved yeah so the foundation endowed two separate things the 20 crypto Foundation is headquartered in Liechtenstein and

26:54it's giving out grants to open source developers who are creating yeah different software arounds or indeed ecosystem including also core development get sponsored by this that's important is like open source and The Trinity related and then with the Dao I mean like there's a decentralized autonomous organization as

27:23people in being able to vote on governance or let's say decisions and like you can have bring up issues and vote on them where every coin represents one one token one vote and they can be delegated as well similar to approval stake but you don't

27:52earn a reward for voting but it's in your interest and in everybody's interest to vote because this like decides the future of the chain and hard Forks get decided by this and also for example the block rewards gets split into two so the community decided through a governance vote where we or as a founding team or founding company also

28:18didn't participate in the vote that as the mining reward is splits also going to the 20 crypto Foundation but this could be changed anytime which essentially another vote apparently this is the case and yeah like around 10 of the mining reward goes to return to crypto Foundation this is also how now of course in case attorney is a success it's externally funded the

28:46county scripture Foundation very cool thank you so much Yanni for all this information I'll also leave the link to just the eternity website and the socials and if there's any information about the Dow I can leave that in the description box below for the viewers appreciate you coming on and giving great insight into the protocol and what's to come I'm really looking

29:06forward to it and let's definitely follow up in the near future cool and yeah it's paternity.com and superhero.com Eternity with a AE it was nice thank you for this opportunity and looking also forward to answer our questions from the audience in case you have and actually I'm speaking right now from The Eternity Galaxy week at the cryptocastle.org and in the summer we're

29:35gonna have a big Summer Conference at the crypto Castle as well the 20 Universe check it out and reserve the date and Ashton you're also welcome to join us here at the crypto Castle in Germany thank you very much thank you thank you