ethereum

laurent hardy

@donhylo

WHO I AM

2009  Bio Engineer

2010   Water & Energy Nexus

2012   MSc Renewable Energy Systems Technology

2012   Complex Adaptive Systems

2016   Ethereum Madrid

2018   Cryptoeconomics.hub 

The Humans Who DREAM OF cOMPANIES THAT WON’T NEED US

source: FastCompany

@donhylo

can we go
one step further?

@donhylo

@donhylo

1973
first iteration of the internet
1994
you can safely send your credit card number over the internet through HTTPS
2009
bitcoin
1998​
google
2009
uber
2008
airbnb
1995
ebay
1994​
amazon
2004
facebook
2006
twitter
1980
1990
2000
2010
1989
Tim Berners-Lee inventes the World Wide Web at CERN
internet of ideas
internet of shopping
internet of agreement?

source: Vinay Gupta & Rob Knight & Wikipedia

1999
paypal

​a 45 years history of the internet

2015ethereum
2019
today
2014
consensys
2015
parity
1976
apple
1975
microsoft

@donhylo

the five pillars of open blockchains

open

borderless

neutral

censorship-resistant

public

@donhylo

ETHEREUM the world computer

[output]
[output]
[output]

ETHEREUM the world computer

@donhylo

where are we?

ETHEREUM the world computer

@donhylo

100
?

ETHEREUM the world computer

Joe Lubin

Jimmy Song

@donhylo

ETHEREUM useful properties from Bitcoin

core components

  1. cryptographic identities

  2. consensus mechanism

  3. blockchain architecture

@donhylo

ETHEREUM useful properties from Bitcoin

properties

  1. pseudoanonous

  2. democratic

  3. immutable

  4. Censorship resistant

  5. distributed

@donhylo

ETHEREUM high level description

  1. Ether + Tokens to pay for computation and align incentives

  2. Turing complete: anything can be programed

  3. Account based (vs UTXO based in bitcoin)

  4. Consensus mechanism will shift to PoS

  5. Block produced each 15 seconds

  6. Externally owned account + contract account

@donhylo

ETHEREUM high level description

monetary policy

capped vs. uncapped

ETHEREUM high level description

@donhylo

today

4.25

12.5

17M

@donhylo

ETHEREUM high level description

@donhylo

ETHEREUM high level description

2015

2018

72.049.306 ETHER
103.042.415 ETHER

ETHEREUM high level description

@donhylo

@donhylo

ETHEREUM Elements

blockchain + consensus mechanism

ethereum virtual machine (EVM)

smart contract developing platform

@donhylo

ETHEREUM Elements | Smart Contract 

Every node on the Ethereum blockchain network has a copy of the smart contract

But the rest
of the world
has no clue!

ETHEREUM Elements | Smart Contract 

@donhylo

solidity

@donhylo

ETHEREUM Elements | Smart Contract 

contract PiggyBank {

function() public payable {
  }

}

but nobody can crack it

@donhylo

ETHEREUM Elements | Smart Contract 

contract PiggyBank {

    function() public payable {
    }

    function Crack () public {
        selfdestruct(msg.sender);
    }

}

but anybody can crack it and take the money

@donhylo

ETHEREUM Elements | Smart Contract 

contract PiggyBank { 

    address owner;

    function PiggyBank () {
        owner = msg.sender;
    }

    function() public payable {
    }

    function Crack () public {
        selfdestruct(owner);
    }

}

but anybody can crack it

@donhylo

ETHEREUM Elements | Smart Contract 

contract PiggyBank { 

    address owner;

    function PiggyBank () {
        owner = msg.sender;
    }

    function() public payable {
    }

    function Crack () public {
        require(msg.sender == owner);
        selfdestruct(owner);
    }

}

only the owner can crack it

@donhylo

ETHEREUM Elements | EVM (ewasm)

ETHEREUM Elements | Gas 

@donhylo

fee = (startGas — remainingGas) × gas price

ETHEREUM Elements | consensus

@donhylo

Proof-of-Work

Proof-of-Stake

@donhylo

ETHEREUM Web 3.0

  • Ethereum blockchain

  • dApp, DAO / DO

  • human-readable addresses

  • messaging

  • file storage

  • other services

@donhylo

dApp

decentralised application

DEPLOY A SMART CONTRACT

  • Take the sourceCode of the smart contract
  • Compile the source code into a JSON file
  • Extract the contract ABI (Application Binary Interface)
  • Extract the byte code
  • Instantiate a new contract object
  • Deploy the smart contract to the Ethereum blockchain

@donhylo

ETHEREUM Web 3.0 | dAPP

INTERACT WITH A DAPP

State variables

they are defined once and cannot change, they are set in stone

Functions

they are used to check the value of a variable, they cost zero gas, they are free

Modifiers

they are used to modify the value of a variable, therefore they consume gas

@donhylo

ETHEREUM Web 3.0 | dapp

@donhylo

DAO

decentralised autonomous organisation

The Humans Who DREAM OF cOMPANIES THAT WON’T NEED US

@donhylo

ETHEREUM Web 3.0 | dao

@donhylo

"A rocket is what happens when you do governance on explosives"

a.antonopoulos

ETHEREUM Web 3.0 | dao

@donhylo

Andreas Antonopoulos

@aantonop

THE DAO IS CODE. |

>20.000 participants

~\(\Xi\)12m (~$150m)

~14% of Ethereum market cap

Vitalik put 1500 ETH in it

@donhylo

ETHEREUM Web 3.0 | dao

@donhylo

ETHEREUM Web 3.0 | dao

Fundamental flaws

No cap during the sale

No defined governance process

Very low participation rate (loose community):
10% for proposals and 4,5% for the Carbonvote

No rules inside the smart contract to anticipate an hypothetical issue with the smart contract itself

No pointer between the prose and the accounting ledger

No recourse outside of the blockchain if things turned sour

@donhylo

ETHEREUM Web 3.0 | dao

@donhylo

swarm

serverless hosting incentivised peer-to-peer storage and content distribution  

ETHEREUM Web 3.0

@donhylo

whisper

communication protocol for DApps  

ETHEREUM Web 3.0

@donhylo

ethereum name service

ETHEREUM Web 3.0

@donhylo

stablecoin

prediction market

curated registry

ETHEREUM Web 3.0

zk–starks

governance

off–chain txs

identity

@donhylo

ETHEREUM Big problems

privacy

consensus safety

smart contract safety

scalability

@donhylo

ETHEREUM Big problems | Scalability

Bitcoin 3 tx/s
Ethereum 10 tx/s
PayPal 200 tx/s
Credit Card 5,000 tx/s
IoT 50,000–70,000 tx/s
Twitter 200,000 tx/s

@donhylo

ETHEREUM Big problems | Scalability

time between blocks

INCREASE

BLOCK SIZE

DECREASE

@donhylo

ETHEREUM Big problems | Scalability

The trilemma claims that blockchain systems can only at most have two of the following three properties

DECENTRALISATION

SECURITY

SCALABILITY

@donhylo

ETHEREUM Big problems | Scalability

SACRIFICE DECENTRALISATION

sacrifice SECURITY

SACRIFICE SCALABILITY

existing blockchains

many interconnected blockchains by exchanges

super–big blocks, master nodes, consortium chains, etc

@donhylo

ETHEREUM Big problems | Scalability

By working on solutions at multiple levels, you sacrifice security to gain scalability

Layer 1 consensus protocol

Layer 2 applications

Layer 0 network distribution

@donhylo

ETHEREUM Big problems | Scalability

When you make no sacrifice at all

ethereum 2.0

Feedback is welcome.

Thanks.

Ethereum

By Laurent Hardy

Ethereum

An overview of the Ethereum blockchain. We go over the differences with Bitcoin, its vision, key features, and specific components. We take a look at what Web3 might look like and how and who is building it. Moving forward, scalability is going to be a big problem and we see how it can be solved.

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