DAPPCON 2019: Build and Operate Layer-2 Dapps on Ethereum Mainnet - Qingkai Liang (Celer Network)

Transcript

my name is Ching Kai and I'm the co-founder of Seven Network today I'm very happy to talk about the recent progress of cell network and our practical experience about beauty and operating a layer to the ABS on top of the sermonette so this talk were not going to any basics about layer 2 technology or any of the technical details about their network but instead we'll just talk about some of the cool product we build on top of certain networks and also some of the practical lessons we learned during the past year ok so I'll first give a very brief introduction about what is network and

also talk about our recent mainline lunch then I will talk about some of the practical lessons that we learned during their mini launch and also our roadmap held this year so cell network is layer to scaling platform that is build on top of existing block chains such as x0 so by moving most of their computations from the blockchain into the function while only resulting to the blockchain Winsor when you need to settle some state or you need to when there are some disagreements about the state we can significantly improve the scalability and also reduce the latency of the current public projects and on top of

seller network people can build a lot of layer 2 decentralized applications that has very smooth experience and also interactive experience okay so the red Network has tuesd components the first trees our technical stack cause they stack the other is our crypto enormous construction call sake Nami but for the sake of time today I were not going to talk about any details about this kind of to count two components so along the way we have launcher to test Nats the first test Nanta Centauri was the last October and the second one is February this year and along during this Tunis kazna launch we

have build up a Molotov non-custodial a layer to payment network that supports both Easter and also yearly 20 tokens and we also for the first time provide a production level support for the general state channel where you can basically run off to smart contract okay and we also allow you to our demo mobile applications that shoot case how you might interact and use the layer 2 technology okay but what I'm going to spend little time and talk about today is our recent minute so our minute is called signals which is which was launched in Las Damas and during our minute launch we basically

launch of racing's the first thing is our user facing mobile application which is called still acts the second is our cell actually sports gaming as Tiki they're specially designed for game developers and the search thing we launched is our seller web SDK that is targeted for highly skilled proximity bumpers so in terms of their selects mobile applications if you have smartphone you can scan this QR code or go to select or a PP to try out the app this is the first decentralized applications that are running on the 0 minute and also use the layer 2 technology ok so what is telex so select is basically a layer 2 disinterest

application platform specifically for eSports games so players can compete can compete with their friends or any other like strangers in this world and also computer skills and win crypto prices like Easter die or seller tokens ok and there's those kind of games running on top of seller X leverage sellers state channel technology or layer 2 technology so the interactions of this game is real-time ok you don't have to wait for the block confirmations and also you you are not pay any gasping it's basically zero gas phase and also there's a winner all players can also receive instant

prize payouts but it is also as secure as the online blockchain because when you have some dispute or you see your opponent is cheating you can always submit your state proof to the outer abruption and let's deploy another smart contract to help you penalize the the cheater okay and so far we our users have covered around like 88 countries and in in 30 days these are some of their user status aesthetics and we our monthly after user is around 12,000 and there are more than 100k like metrics have been played on

top of stacks and in total we have a word around like a 200k USD dollars to the players and their tastes every tension radius around the 55% that's even higher than many traditional internet applications but actually these numbers are outdated ok so in the past week the total prizes were awarded to the players has has been exceeded 1 million USD dollars and another interesting statistic is that if this matches or this games happens with the seller does not use any layer 2 technology it will contest the you serum in and for about five weeks and the

total cash fee will be around like 50,000 USD dollars yeah so that's basically true case there's a power or the kind of benefits of using their technology and this is also our some of their user feedback we got from the selected users users feel that as if spent day and night play games on top of selects and actually we were just launched like two very simple games one is a five in a row game the other is something like you stack a cat to avoid fish euro ball at your stags are the catch to avoid being eaten by some like

fish or stuff this kind of simple games and clear spend like five or six hours every day to play these games and I think like they feel like the experience is just like a normal internet apps okay so that's our purpose we want to bring their blockchain into mass adoption and I think that's the kind of user experience we should have for every blockchain product okay okay so that's some of the brief introduction about our ascetics app so the next question is that so you have to have been talking a lot about like there's games and also the slags app so the next question is

like as a developer cannot build my own games or publish my own games on top of the stacks app and there's some of the questions the developer man asked is that do I really need to understand what is their text layer to technology do I need to understand very deeply where the network's technology is and or do I need to manage your users private key all this kind of like stuff and the answer is basically no as a developer or what you text you is only adding two lines of code and the ten minute of the integration time okay so that comes to come down to our second like stuff in

our me my lunch which is Sara exergaming SDK so basically as long as you have a Vanina html5 game and you can integrate with our Sara axe Akemi SDK in 10 minutes and twice for code and publish your game onto our sale access and start to monetize our game immediately okay and yeah so basically you all you need to add is to add something like Sara our store start when you load in your game and also submit a score some York in result when the game finishes okay and we also have a game developer portal for that laverra's to freely submit their

games when it's ready okay and we also open source example game in our key have basically you can check how you might integrate our game with cellular ax gaming SDK and how you arrived is a smart contract for your for your games and how you publish your games into our selects a PP okay and this also some of the statistics we got for our came T burial site so in the past months we have got around 200 new developers registering our develop Oertel and desert totally 46 new games submitted and there what was interesting

is that the average refers to time integration time with Sarah extremely SDK is only around 30 minutes and if they have ever integrate won games or the following like a follow up like integration for the following games would be only around 10 minutes okay okay so that's basically all about their selects a PP and there's a sellout so gimme SDK the final scenes that we launched in our minute is as our like traditional Sarah web as okay so basically you can directly leverage these or the low-level cellular networks layer two interfaces okay to build some of the interesting stuff use cases such

as financial derivative trading market non constituting a crypto exchanges and some of their prediction market stuff okay and one of the most important is I'm pattern provided by the C SDK is called a conditional payment so basically I can it means that you can send an option payment from Alice to to Bob based on some condition is satisfied for example I was sending five dollars off chin if you win this game okay so that's kind of the design patterns that would provide it by the Sarah SDK to the blockchain developers okay and here are the list of like use cases you can build with their sale SDK

you can as I mention earlier you can build prediction market or p2p social betting or car insurance or of the paper use of paper bites or screaming micropayment use cases our not getting to this use cases one by where some of the demographers have already built some of the interesting project on top of the Sara SDK okay so in summary our mineral lounge has the same that is for users is plate for the developers period to earth so we really want to launch a product that the the Euler's really want to use because we believe that the blockchain technology is not

something up in the air that no one loves to use we so we want to bring their production technology to the master adoption leveraging czar layer to technology and also for developers we really want to launch a platform that can help the user the developers to grow and also to generate revenue other help to them to monetize their efforts ok ok so that's all about our minute launch and I will also talk about a little bit about our practical lessons during our way of building their layer two or two centrist applications on top of you

theorem so the first lesson we got is that they're decentralized application user experience is key to his method option so here's a simple example that we got doing our product inspiration so in our onboarding process so since we are a state channel payment channel the users need to first deposit on open channel we sell network and this is basically announcing transactions that cause a lot of user dropping during their onboarding experiences okay a lot of users find that when is there opens their app they need to wait for about like a 2 or 5 minutes and the pay some gas fee in order to start using this app

so initially during our first test in the launch we basically sees the user dropping of 55% during their onboarding ok and in either next test net win we do we oughta miles of demise this process and we do the number of internal transaction we needed during the opening channel and at the onboarding process and the dropping way further drops down to the 35% but this is still very worse as compared to the traditional internet app so in our minute we further do some like optimization and also carefully design some mechanisms for opening channel during for during users first onboarding experience and currently the drop rate is below 10% that's basically can be

compared with our current internet apps I think that's a kind of true case that in order to bring your decent replications to too little mass users you have to be very careful about your your user experience okay and I here's a code I love very much is that the beste technology should be as if the technology does not exist okay so also we are using we are delivering a decentralized applications on top of explosion to the end users but we shouldn't let users to feel that they are actually using the blockchain okay so that's the kind of things that I think for for any users we should keep in mind the second lesson we got is more specific to the state channel technology

that we are using so basically these or is this like the liquidity is actually a big problem for state channel networks because as option service provider we have to lock in a lot of liquidity into the state channel also this kind of liquidity is rarely used okay it's just luckier but in order to keep your network operating you have to lock a significant amount of liquidity into the channel so in order to solve this problem we have a crypto economic design called query banking liquidy banking auction where basically you can borrow your liquidity from the crowd and so that you don't have to have a lot of

crypto tokens in hand in order to become a service option service provider okay okay so what's next so first of all at the end of September we will launch our celery webs free SDK so so currently in order to running a server client you have to running a binary know locally but in stellar Westra library you can run the entire stack or selling network in the browser that will enable a lot of new use cases and applications and secondly we are open our standardized test a channel

protocol and also at the end of September ok this is the effort with a lot of adversity channel technology like the solutions like air for can fracture and other state channel consultants and also by the end of this year we all open the will open source their limitation for the same network node so basically at that time anyone who is interested in operating and opportunities will be able to run their own node and also join the cell network ok and we will also launch our state economy crypto economics suite by the end of this year this including

their interesting Austrian stuff which is the best it's like help you to cardial straight from Yukos offline ok so that's basically our roadmap ahead this year and that's all about my presentation today and I'm very happy to take any questions you have thank you [Applause] hi thank you for your presentation I saw that you have mobile apps do these clients need to be online all the time

to keep the stay channel open or is it okay for them to disappear or is it even relevant okay so I think that's a very good question so for the state channel so in order to be 100% sure yes you have to be always online in case that are those your opponent will dispute you against to you while you're offline okay and so so that's the reason why we have the state channel just regarding network was called sgn to help you to cardial state while you are offline basically when you goes offline you can submit your authenticated you'll stay proof to a site which is the estrogen

and this sqm will help you to star media still proof while you are offline okay thank you thank you for a presentation I was wondering what you start from scaling with with games application not with exchanges or some kind of other case use case that is popular in a theory inconsistent okay yeah so if I understand correctly so your ascii while we are starting with the use case of gaming instead of some other popular use case like kissing tries to crypto exchanges is that right yeah so I think

posts are very popular use cases and we believe that Kimmy is definitely one of the key applications or use use scenarios that can quickly go into the general audience and generate revenue and also booster the adoption for the users because the native the game itself is naturally digital and people users don't need to that match motivations in order to play a game but instead of as a compared to other like a use cases they need to for example maybe 10x better performance as compared the traditional internet apps but in terms of the easy

kind of so that's a reason why we start the gaming and also that's also relate to the business model that we are building ok but in terms of the other user cases like crypto exchanges we like to open this kind of possibility to our partners so for example we have several like collaborations with some wallet providers and they are also interesting in kind of building a decentralized exchanges using the layer two okay so so it's a kind of like a private provider or a solution provider of the layer to technology we we kind of like start from a small vertical but we would like to open them more possibilities to to the

general developers yeah so that's kind of the sinking philosophy that we are targeting but definitely there dissing tries to change are very good in use cases for their layer 2 or the option technology yeah thank you very much so thank thank you very much for talk so you had this very interesting slide where you talked about the onboarding and how you improved it with zero transaction but I could you elaborate a little bit more about how the user owns the funds is it non-custodial what if he or she loses access to the keys etc like is that covered or is that outside of the scope of seller I wasn't clear about

that yeah I think we can better like I discussed this offline because that involves a long story but to keep a shot for example I can give you an example about how we might like operate optimize this kind of onboarding experience during our first two tests nets so for example in our first test Nats there is an opening channel operation takes to entering operations so basically you need to you need to first open channel then make a deposit so that's to unction transactions and in our second iteration so we combine the two we we further like changes a way that there's OSP or the

cell network make make a deposit so by opening channel we will automatically you within the smart contract to letter our own option service provider center node to pull some deposit from options from our country and wallet so that there's a deposit and the open channel operations can be combined together without you have to invoke in two separate cost okay so that's a kind of like a small example that we made during our onboarding or the onboarding or the open channel process but there are also some other optimizations we made in order to achieve better experience that also involves some compromise between

the decentralized like centralization level you provide and also the experience you can provide okay if you're interested we can discuss offline [Applause]