Aeternity blockchain enables high speed transactions

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

0:22excited to dive into eternity I know you have uh 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

0:45um originally I I mean before blockchain before crypto I I started computer science I studied economics as a minor as well I went into the startup scene um I thought I'm gonna launch uh let's say like uh Web 2.0 mobile application something like this um I have failed um 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 um and there was uh um 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 uh yeah I decided I mean I bought my first Bitcoin and some time later like a year later I decided to um 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 uh several different projects for example the dark wallet project or uh

2:06for example also the CRM project where I was very early involved um 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 um issue as well as timestamp digital artwork as tokens as satoshi's back then

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

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

3:29um yeah so I like to create things to start things like to innovate um and in the space and um 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 um and I'm sure you learned a lot in you know the ethereum days and and 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 um 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 um which is uh which is the one with the largest amount of proof of work through all the blocks um meaning the uh the sum of it and this is uh I mean all the projects which are kind of like doubling or trying to double Bitcoin they are not Bitcoin um this is like um the most

4:46important value um 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 uh with the main Nets and uh yeah well maybe one of the very few work smart contract platforms as well um 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 um like the technological differences between General Israel ethereum and saturnity but um 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 uh uh within those State channels which

6:06can uh like the users of the smart contracts can then um exchange transactions with the speed of light without paying transaction fees um it's uh 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 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 um or or have some sort of delivery of something you get like a receipt it's um yeah um kind of like attachment to the contract is a proof that things get done you do this in a very similar way off chain um still being able to yeah um gets the get the blockchain chords um 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 um 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 um code or stage through side effects so um you can apply methods of formal verification uh phone approves um much easier and this um for this for example we worked with

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

8:48quick fix they're just um 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 um the blockchain itself is also written in a smart contract language it's written

9:11in Airline um 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 uh in Sweden and Erickson and it's used by uh by Cisco YY as well as Ericsson for running um the the internet switches and uh 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 um 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

10:09uh this 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 um yeah other things um do you want me to continue yeah I know I think that's a that's quite a bit of digestion and and it sounds like the the base layer you know there's a lot

10:35that goes into it to make a secure scalable uh 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 uh the smart contracts and decentralized applications on the network with all of uh what your team has done so far is it able to compete uh you know eternity with these layer one protocols

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

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

11:55this space um so I'm picking more let's say the technological um um 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 um and I don't think any project has such um or has this click moment yet

12:24um what 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 um and then there's so many moving pieces to these protocols like eternity um and but from my discussions throughout uh 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 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 um yeah I mean I don't speak for 20 I speak for myself and maybe as a

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

14:23um I mean answering from my personal um opinion um I think I think I mean the ecosystem needs to return the ecosystem needs to grow for this uh more capital or generally capital is a required thing um 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 my team I'm not speaking here um as the like a 20 crypto Foundation um but like uh like uh yeah I don't know um it's like several attempts to um start myself some sort of

15:19um token sale Factory maybe it's going to succeed at some point I learned from my experience that you should just uh like the one of the most important things for success is just to continue and um yeah um 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 and with 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 um

16:09you think that 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 uh for a mainstream project I don't think that um let's say it matters so much um 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 um 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 uh on demand or um yeah I think I think people or teams especially or the tooling for creating tokens should be improved as well as the um 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 um many of um or say I think I think we can almost like proudly say that most of the the funding which we

17:50receive through the token sale which we did in 2017 went into uh development and here lots of the stuff was tooling um as well um to to make blockchain and crypto more accessible and uh yeah um yeah um 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 uh 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 the proof work um mechanism I think it's even more scalable than than um prostate because um the block headers are smaller and let's say the proofs are also much

19:03easier it's much more elegant and compact um chain design and also easy to prove and even um most longest running um um so there have been many problems with proof of stake like you have seen like Solana for example or um 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

19:31um it works just speaks for itself and super useful and it's uh 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 um not so much higher price I believe and here with hypertension

19:59we have like this this hybrid approach that we are piggybacking on the proof work of a parent chain um I believe Bitcoin is a great pair and chain but also Dogecoin for the beginning is is amazing because of the lower much lower transaction fees and we want to essentially um 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 uh yeah they can be even nested and um 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 um hyper chain coins so this is something which is uh hopefully launching later this

20:50summer this is my personal view to these things um although I'm not um getting a guarantee out of the developers and like um 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 uh 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 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 um 5 million and one they is gonna switch to another parent chain and they're gonna essentially then read uh or run the full notes of this parent chain and read this parent chain as well and write to it as well um because it's like a requirement it's possible it's adding

22:27more complexity but it's quite easy to be implemented um um yeah because I mean the the parent and the child chain layers essentially are completely separate um and just uh just a very uh very few transactions need to be inserted into the parent chain and the parent chain or the parent chain miners they 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 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 the full release of hyper chains that's not out yet is it no um there's a test net or a test version and some sort of graphical interface also for staking um but later this summer expected there should be a full full version um 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 um it's not Bitcoin chain because it's based on bitcoin and is that one of the main focuses that the 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 um like on the kind of like core protocol level or like a way how everybody can launch their own um 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 um because it's independent from the parent chain uh just uh piggybacking on

25:01the work of the parent chain and using it as a Time stamping layer and um sorry I got uh I'm uh your question was about um just uh 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 for um um this superhero wallet which I'm also involved in superhero.com um 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 um quite cool projects um and here D5 is also I think one of the focuses so uh yeah wallets should be I mean my vision

25:59um it's like a gateway to a defy world and um the the dabs should interact really smoothly with the wallet and um so far I think it's really complicated it's a hassle so this is g-axis is a thing to to crack for mainstream adoption um 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 um yeah um 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 uh 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 uh who are creating yeah um different software arounds or indeed ecosystem including also core development get sponsored by this that's important is like open source um and The Trinity related and then with the the Dao I I I mean like there's a decentralized autonomous organization as

27:23people in being able to vote on um governance or let's say decisions and like you can have bring up issues and vote on them where every coin represents one uh one token uh one vote um and um 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 um apparently this is the case and um 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 uh thank you for um this opportunity and looking also forward to answer our questions from the audience in case you have and um actually I'm speaking right now from The Eternity uh 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 um 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