Day 2: Reto Trinkler

Transcript

[Music] the next up we can hear from reto Trinculo is chairman of crypto asset management platform Mel import reto yeah hello everyone my name is rich Winkler I'm the chairman and co-founder of mountain ports together with Mona Lisa I'm a member of the web 3 Foundation I'm chairman and CEO of Trenkler software

and been named the Forbes 30 under 30 boss in Switzerland in Europe so my talk is on domain chains in particular on mountain chain so it's really like so it's it's it's essentially like building a customized blockchain and it's really like an alternative way to smart contract security because rather than custom fitting your smart contracts such that they fulfill the requirements of of a blockchain it's like designing a blockchain such such such that it's custom fitted to a specific domain for example asset management this doesn't seem to work

sorry one second sorry yeah okay so overview I'm gonna talk a bit about the corporate structure of mountain chain I'm going to describe the essential building blocks of the main chain we're going to look at at melon China's an example for the main chain then some of our fundamental beliefs might wrinkler software that's the main change like the rise of domain chains then the requirement for a new

kind of law and finally describing division which is tools for a cut elastic society so the corporate structure a while ago 2016 we set out at melon port to build blockchain software for asset management we my co-founder and I Mona Lisa we worked about one year full time without pay was incredibly hard work was also was very exciting we we did a crowd sale in 2017 early 2017

together with our friends from Bitcoin Swiss and and we since grown the team to certain people of which which which originated from from nine different countries so so our team came from from almost all around the world to help us deliver on that vision of of a decentralized asset management system and something we're incredibly grateful for and and we've we've worked a lot with we've we essentially solved the main problems there are still some

problems left but it's it's an incredibly talented team and that team no doubt can can solve the outstanding issues and and deliver that asset management platform so it really it really frees me up to focus on on what is needed and what is needed this is research so it's like researching how we can improve it and that's that's essentially where drinkler software comes in and yet shrinker software laughs man port we're lucky enough to to

have received a research grant from airport which we now use to research the feasibility of managing forests more important drinker software love melon such a shared vision we want to see decentralized asset management as as as it should be I guess so it's essentially a division of labor Malin port will focus on delivering melon and aetherium and my company will focus on the feasibility study of monitoring so again Y domain chains so it's really a different security approach so rather

than implementing a smart contract system that fits into a specific block chain we implement a block chain that fit in the specific domain in this case it's asset management so essentially the essential building blocks of a domain chain so maybe first what is a domain chain so a domain chain is really just just a specific block chain you know a block chain for one purpose ideally a block chain that just as one thing but does it well so the building blocks or state validity and canonic ality we're gonna have a short look into the those

three so like we can we can compare block chains to some degree - like traditional computers and the State in a traditional computer would just be you know storage how stuff is stored and that's that similar in blockchain except for the fact that this time it's shared you know its share it among network participants that the goals of state are to make the state as small as possible you know if you have the Bitcoin state for example or the Bitcoin blockchain then it really becomes apparent that it's too large you know it's it's not user friendly to you know have to wait days until you

download it your chain so it's yes state really should be as compact as possible the second essential building block is validity and validity is really this concept of modifying state so we start with state and now we want to change state and the very change state is by applying a state transition function and in that state transition function are all of the essential rules of that blockchain codified so for example with Bitcoin it's just like a basic accounting system right with Mellon chain is just a basic asset management

system so the main goals of validity is to allow efficient and light state transition proofs and to minimize the amount of proof helpers meaning you know you should you should be able to discard as much as possible or your a validity function to make it possible to discard as much as possible of the unnecessary information so it's like a cleaning up process and the last part is canonical ad and that's really new like we haven't seen that before in traditional computers and canonical at E is really

you know arriving at one truth among many many possibilities so if you have state if you apply as a state in function then you get a new state but you can have like you kind of different different outcomes so meaning so so the input to state transition functions are essentially externally generated user data or transaction but transactions can be different there's different kinds of valid transactions which which can lead to different kinds of valid new states right it's it's we see that all the time in blockchain it's called micro forking

so what we need now is a way to come to consensus on which one to use so the canonical ideas main goal come to consensus on which validity proof to use achieving Byzantine fault tolerance and minimizing reg networking requirements so the axioms of proctoring designs if you want to build your own domain chain then please consider those so the first one is please consider those axioms the first one is you know build your

blockchain in a way that it does not require trust in third parties it's really an essential essential part of what block chains are and it's something that was very very important for for Satoshi Nakamoto to remove you know central parties that's really the concept of decentralization it's remove central parties the second one is it should be easy to opt-out so if we you know if if you want to build a new financial system based on open source then you know let's consider the mistakes of the past which which are really that we can't opt out you know

too big to fail like we can't opt out of the current financial system that easily and the third one is it should be legitimized by consent now that's it's no different than almost any law of any country or to some degree legitimize by consent that's how you know democratic governments work that they're legitimized by consent and that's that's the same it blockchains you know the other should be legitimized by consent you know any any creature of light should recognize this as self evidence okay so Mellon chain management is really you know an example for for for

the domain chain for a specialized blockchain and that's what I'm going to be focused on so subject to to the feasibility study are the main challenges which are price feed so we need to have an algorithm that provides canonic allottee or potentially ambiguous information that's really it's a non-trivial task the second one is you need to have a asset management the runtime so that's on a theorem that that's that's just small contracts on a blockchain on a blockchain it's it's a runtime luckily like we gained a lot of experience building melon on aetherium that they can now port a large degree of that experience into building that

runtime next one is an exchange as efficient as possible so ideally cross-chain custodian free cheap and scalable and last one integration into into the real a chain of poccadot so we want to we want to have native interconnectivity okay so why bother why bother building your own chain it's really this belief of the rise of the domain chains and got something like this so to understand this we need to have a historical context and the

historical context is you know the first wave of broch chains were kind of bitcoin like block chains so you know bitcoin we had like very similar block chains like light coin we had pluck chances were just marginally different you know maybe just had like a marketing spin you know - coin but you also have seen block chains that were technically different so for ago for example name coin like name cone was really an example of a block chain is not just for payments you know approach chain that you can register domain names so to summarize with Bitcoin we've seen like the the first

glimpse of what what an open-source financial system could look like we have seen like a lot of isolation so like these these block chains weren't able to talk to each other and they were very specific like very specific to a domain and what well as kind of left over of that first wave was this clear understanding of you know big block chains are meant to play a bigger role you know they're not just for payments you you know the same cryptographic primitives the same networking protocols they still apply if you build a blockchain that does something else than just transactions that was really like the introduction of the next wave which

was this concept of curing completeness that's kind of the leading example here is aetherium so what the cerium achieved was it removed to some degree like this this local isolation so you now could build like like a name coin blockchain with with a couple of lines of solidity code you you really can build applications that can talk to each other so like an example is nearly 20 tokens we have two ears e 20 token use the system like khyber and and you can like interact so the takeaway yeah so the main problem though

is like this idea was so powerful that you know of after a while like this this this shared general-purpose computer was just overused you know it was very similar like how computers thirty years ago were kind of shared by multiple people and I never someone downloaded some some applications that compute like everyone else also kinda had that on that computers and that's the same it aetherium so it's its biggest advantage is also to some degree its downfall another way to visualize it is you know like a crypto key this user a crypto key this uses it kind of inheriting bothered

with everything that happens on the asset management side and and then asset management user is kind of bothered inevitably with everything that happens on the creeper city side so you can't separate no so take away second wave locally connected but not specialized you know curing complete so so the main problems to solve or you know global isolations so we see the same thing I can be the serial like we have you have block chains that are very similar in nature the matches have like a philosophical spin easy theorem classic but the matress have like a small technical spin like not small but they have Technol technical differences

like cordon or or similar block chains but these productions they can't talk to each other still and the second big problem is is scalability so we now know they just don't scale and the solution for this is web 3 it's no you go back to specialization you have like one blockchain for one purpose but this time you connect them so you know ecliptic it is user can now have their own blockchain just for crypto kiddies and that kind of you know in their own world but using interconnectivity they still can switch their crypto kiddies to melon and and vice versa yeah and and really

this type of specialization also will help a lot with usability like you can build block chances as such a small estate or such a small blockchain size that you can download them you know in less than a minute in the context of your browser so that's that's huge for usability that's huge for for for mainstream adoption and it also allows us to build something that I call autonomous applications which is really instead of having like a traditional server you now have a blockchain and instead instead of having like a front that is hosted on some centralized server you host them on a distributed

BitTorrent likes forum for example ipfs and and you can use you know you you can build in some some content monetization and then use networks like khyber to like convert those rewards against five coin you use the file con to pay for hosting so they really become like they live on its own you know these applications I really their almost indestructible yeah so that so the key takeaway of the third generation is globally connected and specialized so since we're in crypto valley i would

like to talk about you know some of the requirements i guess of a startup and and i think like especially in switzerland we kind of lost to some degree our innovative spirit like the latest medical asian were not really in favor of of young innovative startups and it's really like it's kind of missing the point like new technology requires a new kind of law and what we've seen like in most jurisdictions is we try to apply old law to an entirely new concept and it's really something that stifles innovation

a really good example for where for for jurisdiction that does this differently is Malta so the Malta Financial Services Authority which is something like its its regulatory authority they were humble and often professional enough to to say like this is something we don't understand this is something doesn't fit in our concept so instead of applying old not old law to a new technology you just create our new independent regulatory authority just for distributed ledger technology so this is now a bill that is about to pass in Malta and it's going to

establish a digital innovation authority and really should serve as a leading example for Switzerland because yeah as I said it it's it's it's getting difficult to set up a blockchain in Switzerland I'm finally like would like to talk shortly about drinkler software on what our mission is and our mission really is to build tools for a cataleptic society so cadillac texas is an austrian economics term and it means it means approximately to exchange her to trade or to turn a foreign to a

friend so it's it's it's the science of interpersonal exchange where if someone offers something to trade the counterparty can reject free of any negative consequences and that's really what block chains are if you think about it like you can eat you can initiate a trade and as counterparty you can reject that tray but that that trade or that offer free of any negative consequences that's truly how you turn a fall into a friend and yeah and this is something I want to dedicate my time on so call for action

single dot software we're for the first time ever I'm looking for for a small equity investment at the very reasonable price so if you're interested then you can contact us at company a trinket software if you're a developer you can check out our our github which is sceeto.com slash drinkler we have a discord chat and we also have a twitter yeah so finally we'd like to thank Krypto Valley Association for like a fantastic organized event thanks very much