Ethereum

laurent hardy

@donhylo

@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
1980
1990
2000
2010
1989
Tim Berners-Lee inventes the World Wide Web at CERN
internet of ideas

source: Vinay Gupta & Rob Knight & Wikipedia

​a 45 years history of the internet

2021
today
1976
apple
1975
microsoft
1973
first iteration of the internet
1994
you can safely send your credit card number over the internet through HTTPS
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

source: Vinay Gupta & Rob Knight & Wikipedia

1999
paypal

​a 45 years history of the internet

2021
today
1976
apple
1975
microsoft
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
2021
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]
[output]
[output]

ETHEREUM the world computer

ETHEREUM useful properties from Bitcoin

core components

  1. cryptographic identities

  2. consensus mechanism

  3. blockchain architecture

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

10%

100%

1%

2010

2012

2014

2016

2018

2020

1000%

1,75%

today

1.75

6,25

18,5M

ETHEREUM high level description

ETHEREUM high level description

2015

72.049.306 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

VYPER

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 Elements | consensus

ETHEREUM Web 3.0

  • dAPP and DAO

  • DEFI

  • Insurance, File Storage, Data Markets

  • NFTs

dAPP

decentralised application

2017

2020

white paper (= idea)

funding

working product

liquidity mining / Initial DEX Offering

maturity

DAO

decentralised autonomous organisation

Decentralised finance

Collateral

ETH, BTC, etc

Loan

stablecoin

Yield Farming

Participate in Governance

Smart Contract

Debit Card

Yield

Earn tokens

Automated Market Making

Liquidity Mining

insurance

file storage

Data Markets

Insurance

Make a claim if a verifiable on-chain condition is met

File Storage

Infrastructure to store and use files on-chain

Data Markets

Provide and use verifiable data on-chain

NFTs

Non Fungible Tokens

2017

Crypto Kitties

2021

Crypto Punks

4.200 ETH ($7,5 million)

2021

Everydays – The First 5000 Days (Beeple)

42.330 ETH ETH ($69 million)

NFTs in the Arts

Examples of NFT Marketplaces for Art:

Foundation, MakersPlace, Nifty Gateway, SuperRare, Opensea, Rarible, KnownOrigin, or Zora

NFTs is coming to Finance

Real assets that are unique in nature

Identity Tokens, Certificates, & Reputation

Access Tokens

Asset Transfer Tokens

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

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 don't have to 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

optimism pbc layer 2

ethereum 2.0

Andreas Antonopoulos

@aantonop

¡también disponible en español!

Feedback is welcome.

Thanks.

Ethereum | ISDI AENA

By Laurent Hardy

Ethereum | ISDI AENA

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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