Ethereum

A Smart Contract Platform for the World

@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

can we go
one step further?

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

the five pillars of open blockchains

open

PUBLIC

neutral

BORDERLESS

censorship-resistant

ETHEREUM the world computer

[output]
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ETHEREUM the world computer

where are we?

ETHEREUM the world computer

ETHEREUM useful properties from Bitcoin

core components

  1. cryptographic identities

  2. consensus mechanism

  3. blockchain architecture

ETHEREUM useful properties from Bitcoin

properties

  1. pseudoanonous

  2. democratic

  3. immutable

  4. Censorship resistant

  5. distributed

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 FROM POW to PoS

  5. Block produced each 15 seconds

  6. Externally owned account + contract account

ETHEREUM high level description

monetary policy

capped vs. uncapped

ETHEREUM high level description

today

4.25

12.5

17M

ETHEREUM high level description

ETHEREUM high level description

2015

2018

72.049.306 ETHER
103.042.415 ETHER

ETHEREUM high level description

ETHEREUM Elements

blockchain + consensus mechanism

ethereum virtual machine (EVM)

smart contract developing platform

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 

solidity

ETHEREUM Elements | Smart Contract 

contract PiggyBank {

function() public payable {
  }

}

but nobody can crack it

ETHEREUM Elements | Smart Contract 

contract PiggyBank {

    function() public payable {
    }

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

}

but anybody can crack it and take the money

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

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

ETHEREUM Elements | EVM (ewasm)

contract PiggyBank { 

    address owner;

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

    function() public payable {
    }

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

}
[transaction]

ETHEREUM Elements | Gas 

fee = (startGas — remainingGas) × gas price

ETHEREUM Elements | consensus

Proof-of-Work

Proof-of-Stake

ETHEREUM Web 3.0

  • Ethereum blockchain

  • dApp, DAO / DO

  • human-readable addresses

  • messaging

  • file storage

  • other services

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

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

ETHEREUM Web 3.0 | dapp

DAO

decentralised autonomous organisation

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

ETHEREUM Web 3.0 | dao

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

a.antonopoulos

ETHEREUM Web 3.0 | dao

Andreas Antonopoulos

@aantonop

THE DAO IS CODE. |

>20.000 participants

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

~14% of Ethereum market cap

Vitalik put 1500 ETH in it

ETHEREUM Web 3.0 | dao

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

ETHEREUM Web 3.0 | dao

swarm

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

ETHEREUM Web 3.0

whisper

communication protocol for DApps  

ETHEREUM Web 3.0

ethereum name service

ETHEREUM Web 3.0

stablecoin

and defi

prediction market

curated registry

ETHEREUM Web 3.0

zk–starks

governance

off–chain txs

identity

ETHEREUM Big problems

privacy

consensus safety

smart contract safety

scalability

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

ETHEREUM Big problems | Scalability

time between blocks

INCREASE

BLOCK SIZE

DECREASE

ETHEREUM Big problems | Scalability

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

DECENTRALISATION

SECURITY

SCALABILITY

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

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

ETHEREUM Big problems | Scalability

When you make no sacrifice at all

ethereum 2.0

public blockchains

permissioned blockchains

consortium blockchains

private blockchains

ETHEREUM Big problems | Scalability

By working privately, decentralisation is sacrificed to the benefit of scalability

open

neutral 

censorship-resistant

borderless

public

Permissioned and private blockchains

node not allowed to verify txs

node allowed to verify txs

Permissioned and private blockchains

why?

  • backend infrastructure changes are cumbersome

  • efficiency gain without switching business model

  • corporations usually outsource i.t. work

permissioned blockchains | Hyperledger

Linux Foundation

membership fees

users and devs

Team Management

Common rules

Came from Intel

SGX extension inside Intel's chip 

Proof of Elapsed Time consensus algorithm: it burns CPU time but without burning CPU power

permissioned blockchains | Hyperledger

Permissioned chain DLT

Smart contract engine written in Go

First developed by IBM and later open sourced

experimental blockchain designs | iota

Mobility & Automotive

Global Trade & Supply Chains

Industrial IoT

e-Health

Smart Energy

experimental blockchain designs | iota

not a blockchain, iota uses a directed acyclic graph

iota is using its own cryptography

scaling is done through centralisation,
i.e the need of a coordinator to avoid attacks

Feedback is welcome.

Thanks.

Ethereum | ISDI Toyota

By Laurent Hardy

Ethereum | ISDI Toyota

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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