Ethereum Foundation, Prysmatic Labs, Nethermind and iden3 Sessions (Combined Recording)

Transcript

[Music] hello everyone my name is emily guidry i'm here with ken ing and we are talking today about the ecosystem support program next slide so um esp we'll be using this acronym a lot stands for ecosystem support program i just want to make that extra clear because i got confused about this when i first started working at esp so in this talk i'll be running through who we are what we do uh why we do it and how we do it before i talk more about esp i want to zoom out and speak a little bit on the ethereum

foundation so the ethereum foundation's mission is to do what is best for ethereum's long-term success and some of the ways they do that is by allocating so allocating resources to critical projects they are striving to be a valued voice within the ethereum ecosystem and they advocate for ethereum to the outside world so esp is the resource distribution arm of the ef so we are one of the ways that the ef pursues that first goal of allocation our goal is to make the ef's resources accessible to everyone in the ecosystem not just the major players so no ask is too small we're really just trying to make sure that anyone who is interested in

contributing to ethereum can like there's no barriers or anything like that it's a shift in framing from the old ef's grants program so our former like just ef grants which was really focused on like what should or should or should not the ef fund and now with esp we really believe that every project should be supported it's just figuring out how and what form that support can come and we holistically identify the needs and challenges of each team and really try to leverage all vs resources to make sure that your project can't succeed so to be more specific about what asp does we connect individuals and teams at any stage of development with a broad ranges of support so that can mean grants like a traditional grant

technical feedback um introductions free access to tools or platforms like aws credits um or even just like engage in friendly conversation and give your team a nudge in the right direction so let's talk about some stats like what has esp been up to since the start of 2020 so since the year began we have supported 68 different projects and again by support i mean all those different options not just traditional grants and 42 percent of that 68 were traditional grants whereas 57 percent were alternative forms of support so i took all the of support that we

provided in 2020 and divided it by project category to try to show you you know what are the types of things that we've been supporting so community and education developer experience and tooling we've got layer 1 and layer 2 projects uh user experience cryptography and ckp indirect funding and other which are all the bits and bobs that don't quite fit nicely into these nice categories so i'm actually going to hand it over to ken who's going to talk about how you can apply to esp thanks emily i'll run through the application process a little bit so this is

a nifty little map about the application journey it begins with the website very simple it's just esfeed.theorem.foundation so we are esp and we're part of the third foundation that's all you remember if you go to the bottom of the website there is a contact us form and really this is where all of it begins this is the beginning of the pipeline where really we want to get to know you right this is a conversation about um what you need and how we can help you so in there you'll find two different links one is for a specific project where you already know what you're working on and you just want help from us or anybody

uh they're moving them forward the other one is exploring possibilities where you might not know exactly what you want you might just be an interested person who wants to dive into ethereum but just don't know what the next steps are or you just finished a hackathon and you had so much fun and now you really want to dive into ethereum uh don't know what to do we're here for you the next step after you've submitted an inquiry or you've been to our website and now you're going to submit an inquiry we'll talk about what that is um it's really just the beginning of conversation right we'll talk through um kind of who you are what your project is or what you're thinking about and just to be very explicit here this is not an application this is

just an inquiry form we really do genuinely want to get to know you want to get to know the project and try to understand how we can help you move forward the questions here are super vague it's super short ankle reform you know the idea here is not to make this a long you know tedious application where you have to spend weeks on on kind of making everything perfect you know a lot of times people apply and they have typos that's perfect right we want to make sure that the barrier to entry is super low anyone and everyone can apply here but we do want to make sure that the information we're putting there is enough for us to kind of have a

conversation so there's a little example here i took this from hacc.wtf.edu there's a bunch of different bounties there or ideas of how to get started in e2 check it out if you want to but for that i picked you know just one thing in there that's my project name super generic the project description um very clear about what it is that we're building what we want to do and what we think success might look like for us you don't have to get that descriptive if you don't want to but for this team specifically because there is a uh there is an open boundary there there is an idea of what success looks like for the team profile it's just me

uh who our team is are um yeah that's super simple so the next step is the intake and initial review um with that really try to understand from our perspective uh how we can actually help uh so for the initial review we really want to know kind of what challenges your project is facing specifically what do you what do you think you might need to address these challenges what stages are project in right are you currently in a is it just an idea is it proof of concept are you have you already done a lot have you already have made uh you know notable milestones or reach normal milestones or already have

funding have you already sought feedback from us the community any of these links are really helpful for us to have a starting point to have this conversation right so in the example here the needs and challenges very explicit about who we are what our problems are and how we want to move forward in this example i'm a student who lost my internship because of covid and now we just want some funding to spend our summer doing something really cool and now we take that in we have our conversation and we try to work together to really have an idea of what these support opportunities might be so now we talk about how can we help um so we want to upend a little bit what

support really means i think in the rest of the ecosystem support is solely in kind of financial support and understanding how you know a team may and may not be able to fund your project but for us for esp we want to kind of change that up a little bit right we want to look at this more on the social impact side of you know really kind of how open source software traditionally rolls which is understanding not just how you can use resources but what those resources are and how they're best suited for your challenges right is it that you need coordination across different projects do you have you done this and there are other teams working on similar things that you want to collaborate with do you need credits uh maybe it's aws

credits google cloud services um do you need alternative source of funding because maybe ef is not right for you maybe you need something more from otf or from uh any other of the open source software foundations uh or maybe we are right for you and we can provide financial grants as well do you need idea validation do you need a project validation do you need mentorship do you need feedback from other people we're happy to make the introduction for you happy to make sure that you know you feel empowered to have these conversations so we'll dive a little bit deeper into the financial support process as well this is more similar to our traditional grants process and how we have done things in the past and we really start with

you know the question do you really need financial support is this really what you want and is this from us we'll provide you with a formal application link um that really just provides the bearable skeletons of your roadmap uh your budgetary requirements uh understanding what it is that you need to build um and so once that's done we take it we do a collaborative review so same thing as before we talk together this is still a conversation um we really try to understand kind of what this what it is that you want to accomplish we do a breakdown in the milestones we do a breakdown and what exactly you hope to accomplish each step of the way what the end goal is and what the impact is going to be for the ethereum ecosystem um after eternal review uh there'll be a couple back and forths or maybe it's

super easy and there's only one back and forth and maybe there's nothing but addition decision gets made on financial support what to expect when you're expecting a financial grant uh so with the financial proposal as i mentioned before uh diving a little deeper in it's talking about your team structure your qualifications your project details the impact uh proposed impact use of resources and what resources exactly those are in this it really is kind of talking about not just the financial support but what else you need in order to accomplish these milestones as we mentioned and then we review and refine this right it's not just us we'll do a technical interview but we also include other people from within the ef but also outside the

subject matter expert that are more able to answer the questions and help you kind of scope out what your project should do in order to maximize the impact of your project we talk about the overall roadmap each milestone to make sure that every step of the way we're accomplishing something that heads to the end goal and really articulating what those goals are not just for the entire project but also broken down into bite-sized chunks so that each milestone really does bring you closer to that end goal the internal review decision process as i mentioned before is talk it helps to help define what the funding structure is going to look like is it all the milestones and some milestones uh we talk about the project uh the progress evaluation criteria when we do

check-ins for the grants uh the milestones and what this timeline is going to be maybe it's not the full you know three year timeline that you expected but maybe we put that into the six months chunks uh and then we also have expectations for the use of the funds and i'll hand it back to emily to talk about who should be applying yes thank you ken uh so who should apply um anyone can apply but we really are looking for developers researchers academics uh community leaders and just anyone and everyone who is interested um in contributing to the growth ethereum um so harp going back to what kim was talking about with traditional grants like

who is eligible for that financial support we have some minimum requirements that we expect your project to meet um which is it must be open source it must benefit ethereum and it must focus on either universal tools infrastructure research research or common resources we do have some big no-nos especially when it comes to financial support and even altered informed support alternative forms of support so we're not going to pump your token we are not going to invest in your new quant fund or i'll go fund and we are not going to fund your not related to eat business so if you need a little more inspiration you're like ready to apply don't know

what you want to work on need some ideas um you can head to our website again that's esp.ethereum.foundation and you can click on the links at the top for our wishlist and our pen board our wish list is just a list of things that we are interested in seeing applications related to um there's just more information if you click each of those links and our pin board is a series of um interesting projects put forth by in conjunction with the eth2 team so if you want to tackle some harder problems go take a look at our pin board so yeah get in touch tell us what you're working on um you can again go to our website or you can email us

esp ethereum.org you can tweet at us or follow us at ef underscore esp and if you go to our website you can also find a blog that tells updates on just what we're up to what our um what our teams that we've supported are doing and you can also sign up for our newsletter so you never miss an update and i think that's it thank you guys uh and we hope to hear from you soon thanks [Music] everybody guys terence from prismatic labs super

excited to be here thanks edcom for having me today my talk is about lesson learned from only testnet as you know made the show launched um and we own it last week in preparation for madasha so this talk will discuss the lessons learned from onix to madasha and some of the nice things we have implemented so let's get started first i want to introduce my team we are a team of nine follow us on twitter check us out on github there's nine of us and uh shout out to reddit who just joined our team last week and shout out to tons of github

contributors that we have had over the last few months you guys have been amazing and we wouldn't have been here without you and if you're interested to contribute um join our discord we're happy to onboard you so let's chat a bit about the history and the present on the on this test next so we started out a ruby so back in ruby it was just a local chain that simulates uh previous state between chain behavior it was our earliest take on what the b channel we would we it was our earliest take on what the beach you know we would look like and there's sapphire which was launched

last year it uses 3.2 each instead of 32 eat and we only had uh less than a thousand genesis validators to begin with but we started implementing apis and we want more people to build upon beacon chains and which such effort enabled uh bitfly and etherscan to build awesome beacon um change explorers on top and there's topaz which was launched earlier this year it was aimed to be mainly compatible and he used 32 it per deposit he has slashing he has nice optimizations and then there's only switches launched early june it

has been running for about two months and it was aimed to be multi-client compatible he implements the latest pad and we went through a run of audit with it so as you can see prismatic labs went from ruby to sapphire to topaz to onyx which is multiclan compatible and in the parallel multiclient testnet universe there was there was a schlesi there's witty there's autumnal these efforts were largely led by alfie and each multi-client test net has its own improvements and whether it's different genesis validator size

whether it's the amount of validated team that participated and whether it's overall robustness and um just last week we have sunset onnets and we we have moved to modesha so there's just one testnet to work with and that is very nice quick look on the only stacks before we sunset there was 30 000 validators and prismatic labs only rang 4 000 validators so that's about 10 of the network and those two hundred thousand slots ten thousand finalized e-parts and about 250 to 400 peers in the network and in the next few slides i go over

some of the lessons learned what we worked on and some of the exciting things that happened so um from onyx to modesha there was tons of improvements there was about two months of the time there are about seven releases about 500 issues and 500 prs they were closed and merged and were able to onboard uh 20 plus new contributors so that's very nice so yeah so let me go through some of the license learned and so the for those that have been running a validator right you may have noticed that our existing key management tool isn't the best user

experience so we have been working on clean that up and we've been working on revamp of our account management and since the introduction of eip2335 so what eip2235 is is the standardized keystore directory and file format across all clients to follow a similar strategy so image swapping keys between clients seamlessly and we have been refactoring the key management tooling so we're also making sure that new wallet tooling is much easier to use and uh we have the following new key management type that's direct which utilize eip2235 there's derived which use

utilize uh hd wallet and there's remote which utilize keyboard signing server via grpc they also integrate nicely with the e2 launch pad so yeah check our documentations as part of our effort to um revamp um how the key management or hub key management working prism we also want to sharpen our toolings as well so in particular many users want to run about the client in a cloud and they want to use a remote signing server elsewhere that's able to securely store the key and send data as needed

so in the prism valve data client we have a grpc client building that that connects security to a remote um signer as desired by the user so for reference and we have put our reference implementation on github is licensed under apache 2 and also you can write your own remote signer server in any popular language that you want which supports your pc as long as your server implements the required api schema for remote signer defined in prison so one of the major improvement that's required

to speed up chain synchronization has to do with how we verify um block signatures right so the naive way of processing block is to perform sequential processing check every state transition check every signature sequentially but every time we verify one signature we incur our significant performance cost but so instead we actually improve upon that so we verify signatures in parallel we batch verified aggregated signatures we batch verify block proposal render signatures as well so we'll need to verify once after a

certain checkpoint so this helped drastically improve the speed of initial thinking and and such improvement it's very notewild if you look at alfred's latest report that um you can see um in that link over there and with the full si with a full batch signature verification prism is almost as fast as lighthouse and we're confident that we're continue improving this benchmark as us as we approach mainnet so lesson three in onyx we have experienced volatile peer-to-peer messaging so user

were reporting high error rates in process new blocks and that seemed to affect the finality of the network so we identified the root cause seemed to be that prism client was getting out of sync and producing blocks that's older than last finalized plot so based on what we fixed and the issues was we fixed the issue and the um and we have reflected that on to the upstream spec as well and another thing is rate limiting right so rate limiting and peer scoring refractory or has been started so our aim is to make sure that prison being channel is more robust and capable of performing its duty in

presence of slow broken peers so the current ray limited system that we have is already capable of being pierced let's send us requests to aggressively and we're actually extending it to be more sophisticated in a way that how you and bad peers are detected and what actions are taken to prevent such behavior in addition to being we're also diversity in a reputation system as well which will score appears based on a wide range of different performance matrix and we also throttle pier that violates uh care for these selected thresholds so quan stamp is a security um the

blockchain security firm has recently completed its audit of our prism client and it went over the course of two months so constant exam our food co-base for critical security vulnerability gaps in testing and it found a few bots were running on its test net as well and then he also gave us great feedback on end user considerations how to minimize security risk so you can read the full audit report here and quantum also did an excellent job not only is explaining great depth on some of the vulnerability

vulnerabilities he also included a comprehensive appendix which suggested best practice to reduce a further attached service and so upon complete complete upon completion of the audit we created the comprehensive tracking issue to resolve all the items found by uh coin stamp we are um seventy or ninety five percent there on addressing all the relative issues and we'll get to 100 very soon so lesson number five that uh we have base monitoring is very important we have made significant improvements on monitoring

we've added a better matrix better rpc debug endpoint and better logins and better instrumentations we have added matrix such as runtime so we're able to see like when the cloud drift gets too wild gets too wide between a big node and validated client so test coverage improvement yes so one of the feedback we've gotten when running the onyx testnet is that we do like unit tests in certain areas so we have made um improvements for the last um for the last seven releases and that was the before and after and

you can see that blockchain package went from 36 percent to 57 and that's quite nice and do please do expect that we'll continue improving this as we get towards minute and in lesson seven imprisonment labs we love post mortems whenever there is when whenever there's a drastic issues we are always on top referred to and if you're interested feel free to take a look so we started um thinking carefully about the biggest pain points for contributing to prison project and

we have decided to run a small community survey asking everyone about their experience running a note interacting with prison and reading our documentations and it ended up yelling really productive results so the biggest feedback comes from the pain of learning and using our build system bezel and uh for instance contributors or that want to just use go that was really hard so we actually make our project go gettable after that and the other feedback that was resolved around account management which we addressed in backing lesson number one

and we also got feedback such as like people want to run any sort of either one node such as such as nethermine which is not fixed in our latest branch so overall um community of community feedback drives really good initiative and the people's experience with art with prismatic labs seems to be really positive we're really happy with it and uh but by integrating testing understanding its complexity i think we can do a better job and uh cold health is going to be a big priority for us going through mainnet so if you have some feedback please do let us know

so bionics now this is the last um screenshot that i took for onix before we sunset and as you can see it was already um since prismatic labs only run about 10 of the network and it was you you already had a problem with finality right so it was about uh 500 epochs since finality that's about two days worth of no finality and even with that um the note was still quite stable it was still like 2.5 gigabyte of rams and then cpu is fairly under constrained and there's no grpc error so we're quite happy to see that so hello medesha so this is a screenshot

i took before recording this and as you can see modesha has been growing great it's about 8 000 slots 250 finalized epochs and pres and we only run about three percent of the network but yeah i'm just really happy this is going really great so you may ask what's next for us right what's next for us is that we wanna be as ready for many as possible so that includes define satisfied beta requirements we'll define the beta requirements we will share the beta requirements with the community and will satisfy that and then we want to do some further updates we want

ux improvements as well we want people have the easiest time using our client and as i mentioned earlier we want to improve the test coverage and we want to go through more rigorous integration testing so if you're interested in any of these items feel free to contact us we're happy to work with you and that's it from me thank you for having me and feel free to join our discord and ask us any questions thanks guys [Music]

[Applause] [Music] hello everyone welcome to the ethereum gas price markets with vip one five five nine my name is thomas stentek i work on another my djing client project and i'm excited to show you this new improvement proposal for ethereum gas price that many people are discussing many people are excited about and waiting for so let's have a look what it means for all of us maybe before i talk about eip1559 i will do a quick recap of the current gas prices

initial maintenance so whenever you create a transaction you have to set the gas price on the transaction first and if you set it too high the transaction will just make you overspend if you set it too low you may end up waiting for a long long time before the transaction is included in the block because what miners do they would just collect all the transactions created by you and other users in the network and they'll put them into memple and then they'll sort them by the gas price from the highest gas price to the lowest and they will create a block and include the transactions as long as there is enough space within the block gas limit it'll be obviously including the transactions from the highest price to the lowest

because all the transaction fees are being paid to the miner account so they're just naturally incentivized to pick the transactions with the highest gas price and this mechanism is called the first price auction which means that uh you practically blindly keep bidding without knowing what the final price will be and at the end of the auction you just learn how much you paid whether you won or not you're either not paying at all because you didn't win the auction or you end up paying the price that you beat and there are some problems with press press options in particular the price that you pay very often is just

too high and there's another problem with the current gas price market when you think about it maybe it's a bit less clear but it's really hard to tell what the real gas price on the market is and why is it so mainly because the miners are allowed to include transactions in the blocks which are their own transactions there's really no way to forbid that from happening and the thing is whenever they include those transactions very often they will include them at zero price or if they want they may include them at arbitrarily high price which means that if you ever try to rely on the gas prices from the block you may simply have it all confused

because of the minor transactions and whoever tries to set the gas prices for the transactions they create very often will choose some kind of average from the previous blocks which again might be distorted by the transactions from the miners and since the transactions that they create the signers of the transactions are not priced properly everyone else is like misled by those uh hints from others and everyone is either overbeating or getting not enough making those mistakes and hence we simply cannot tell what the real gas price on the market is so here comes the ip1559 and it

tries to solve the problem by introducing a set of parameters probably the most important one is the base feeders added to the block header this is something that fluctuates in between blocks and as uh calculated by protocol and apart from base fee which is a minimum gas price that has to be paid for all the transactions are included in block we have a gas premium which signers of the transactions add to the transactions themselves so they they work very similar to what the current gas prices do so they work as a tip to the miners if the more you pay is gas premium the more likely the miner will prefer your transaction over others and then there is also fee cap so this is

like the second part of the current gas price model which is uh limiting how much you will pay for the transaction so fee cap just says whenever the space fee plus gas premium is above the fee cap i'm not i'm not really approving to pay that much so i'm just not approving that base fee and even like if you don't set gas gas premium then if the price fee is above your fee cap you will just not accept the transaction to be included in a given block and you'll wait for the better times the block gas limit itself remains voted on by the miners however we change slightly that meaning of the vote so we no longer vote about the absolute limit of the block we vote for

the target and the target means that we can create blocks that are up to two times the size of the target as for the base fee adjustment mechanism it's all based on the how big blocks are being created on the main net so if the blocks created are the perfect size in a way so they match the target gas limit of the block let's say 10 million and then the base view will remain stable if the box created or bigger up to two times bigger then the base fuel will be rising it means that we actually want less people to post transactions and less transactions to be

included in blocks so we just raise the base we until we get to the desired block gas limit again and if the blocks are created on the network which are empty or simply below the target then the base fee will fall and it will encourage more users to post transactions now because there is some extra capacity we are below the target we want the blocks to be bigger one important property of eip1559 which many people are excited about is that we're burning the transaction fees so what is defined by base fee will be burned will not go to the miner and that's super important from the

perspective of what i mentioned before which is uh preventing the ability of the miners to manipulate the base feed price the gas price so they no longer compost any transaction with any gas price they want because the fee will simply not go back to them it will be burned and it would be at severe loss this burning is exciting people because it's simply meaning that there will be less inflationary pressure on ethereum less ethereum would be created net of rewards because some of the ether will be burned as part of the transaction execution as for for the fees themselves let's

analyze a few scenarios um when for example v cap is greater than base v plus premium what happens then so fika practically has no meaning in such a situation you simply say that as a sign of transaction you find to tip miner a bit and that you pay whatever base fee the header has and in such situation you see that transaction is paying everything is paid by signer premium and base fee but majority of that value will be burned and uh just the tip and the premium will be paid to the miner i'm really i'm saying majority but really the basically can be really low and your premium can be very high so in such situation miner would still

earn majority of the fee and only some part of it will be burnt but it really depends on how busy the blocks will be created in the cases when the blocks are more or less empty you won't have that much of the burning because the base will be very low then we have another scenario when actually the fee cap while it's bigger than base fee it's still lower than the base fee plus premium which means that you decided to limit your the size of the gas price that you're paying below the current state of the network so the base fee is so high that you cannot really approve covering the premium that you promised before so some of this premium

have to be forgotten by the miner and the transaction can still be accepted by the miner if they want but the premium will be cut by the by the fee cap level so still everything is paid by signer and still very similarly we burn base fee and miner gets some part of the premium limited by day fee cap and the last scenario really is it's very interesting actually it's a subsidized transaction so you said the fee cup solar that is below the current base fee on on the market which means that if the miners decide to include your transaction they can still do that but it will have to cover the remaining fee that you didn't cover so

you say like okay the base fee is 10 way and my fee cap was nine way so the miner says that's all right i'll subsidize the remaining one way for you and everything will get burned which means that um the part that miner paid was burned they subsidized it they lost it and we can try an example calculation of the ip1559 so let's say the target gas used for a block voted by miners is 10 million which means that the the gas limit really on the block can be up to two times bigger than that the target and we have a very important parameter which is called base fee max change denominator and it defines how volatile the

base fee will be how quickly it will adjust itself if there are big variations in the block sizes so let's work with an example where we have a gas used 7.82 million on a block which is below the target we set the target for 10 million and the gas used at 7.82 so we want the next block to be bigger and to encourage the behavior we'll be lowering the base fee basically in this particular block for our example is one way we calculate the delta from the gas used on the on the parent block that we created and the target gas used and in our case it's a negative delta and delta can be positive if the block is

above the target and that would change our calculation obviously in other direction and the base feed that we calculate is a parent base fee plus the part of the parent base phase that is multiplied by first of all the delta so the difference and the like ratio of the delta to the target and uh then limited by this base v max change denominator so we just limit how quickly we move towards the target and here is an example we have 090 0.97 way gas price calculated for base fee and we can have an example of the calculation with

full blocks happening on the network so whenever a full block is happening our delta calculation will be really equal to target gas used and in such cases we'll be using the entire current and base fee in the second part of our equation and we'll be moving by the denominator at every single block so 1 8 of the apparent base fee change every single time so we see here after 8 blocks we reach the level of 2.28 waves starting with one way um let's see the opposite scenario so the blocks created are empty the delta in such case will be negative

negative at the level of target gaseous which creates which makes the second part of the equation uh just negative one multiplied by the max denominator so the max move max adjustment and again we'll see after eight blocks we reach the 0.34 gray so it's around 60 percent below the starting point of one way now we see the last possible scenario that is interesting to look at the blocks are actually at the desired size so all the blocks are created as in our case at 10 million um and it means that practically we don't want to change anything so the base will

be stable will not move every single block will be at one way now why i think that eip1559 is particularly exciting for the gas price markets so most important thing for me is that the base fee will be observable on chain so something that you really don't have access to at the moment from the perspective of the virtual machine will be available for any smart contracts and we started working on a product that is creating some kind of hedging scenarios

that are based on the observable base fee so you can take into account the gas price that can no longer be manipulated by the miners so in the past it would like to post information about the gas price to the smart contract uh it might have been just totally manipulated if you build any product uh on chain that would try to react to the gas prices anyone would be able to trade against it and manipulate the market if they were sorry any miner would be able to manipulate the behavior of that smart contract this is no longer possible and this is super exciting so obviously just um just the basic which is the basic uh

goal of the introduction of the ip1559 happens as well so we should see much less volatility of gas prices much more predictability uh people will be able to know what exactly the direction of the gas prices is recently and use the wallets adjusted wallets uis um to to have a bit more of a more likely have their transactions included around the actual gas price as it is on the market thank you so much for listening for staying with me and there are plenty of links available online that can give you much more details about the ip1559 so have a look at the ap itself

about the discussion around the inefficiency of first press auctions uh the control crs and behavior of the systems as you would like to have a system that also adjusts the gas price uh look at your magicians and research for all the discussions happening there around eip1559 look at the previous implementers calls where multiple ideas were discussed discarded or actually accepted into eip the fantastic stimulator simulations from some of the teams that are analyzing the behavior of the miners and market participants in different scenarios also some alternative solutions like gas escalator

and if you're interested in any links for the images used they are here thank you so much thank you thank you [Music] [Applause] [Music] hello i'm jordy beilina item 3's technical lead

we have an important announcement hermit project which is a spin-off of item 3 identity project since the beginning of item 3 we try to provide privacy and work it hard in the zero knowledge technology outcome of this has been circum circuit compiler and snarks implementation with snark js another objective we had is to scale self-sovereign identity in order for any identity to be able to issue claims for free so we were building wall apps leveraging in our own background and in collaboration with other groups in the

community after a couple of iterations of a proof of concept in girly testnet we decided to launch a payments zk roll up hermes is an independent project of ivan iii but we are using the technical and human resource to launch this project in production expected during the fourth quartile of this year so hermes is a new zk roll up network with the initial scope of supporting ethereum erc20 tokens transfers at the maximum performance that the technology is allowing and that will be

increasing we start with 2000 transactions per second but this will increase very much in the in the upcoming versions we have two objectives in this project the first one is to build a project which is designed with native decentralization model that will become fully decentralized once at one moment once the system is secure enough and after a short bootstrapping phase and the second objective is to run a model which will provide value for the layer one

and the community in general via the distributing value from the network fees i will explain more that later in this presentation the way that we achieve these 2000 transactions per second is structuring the transactions received by the network in batches and generating a zk proof for each of them to be validated on the mainnet since we have the capability of including 2000 transactions in a single proof and we are able to fit 15 batches in an ethereum block and there is uh one block every 15 seconds this gives

bring us to the total limit of 2000 transactions per second a key part of our project is a model where we enable permissionless actors to construct the batches of transactions of layer 2 generate the zika proofs and send it to the layer 1 for validating and mining these are the miners of permits we call them network coordinators the coordinator who built the block we call it forging will collect the fees on the transactions on it coordinators they also decide which are the most

profitable transactions to include in the block they need to keep an updated status of the network receive transactions from the users and process them to build the layer 2 block and generate the ck proof which will be sent to the layer 1 smart contract which will validate the proof and so the transactions data will be saved so the coordinators are the permissionless agents that will participate in the in a decentralized auction in order to get the right to forge blocks so how we select who has the right to

forge uh batches what we do is we split the time in 10 minutes a slot 40 blocks then we do an open auction to sell this slot the coordinator that's willing to pay more in this slot will be the one that will earn the right to forge as many batches as they can this model is intended to be open and to incentivize efficiency in coordinators since the beats needs to be high enough to win but keep a merging with the estimated amount in fees that this coordinator will

collect the more transactions a coordinator can forge the more value he can collect during a bootstrap phase there will be a boot coordinator which will forge all slots where no alternative coordinator bit over the definite minimum price for the for the slots hermets will have two erc377 tokens fully compatible with erc20 tokens the has utility token will be used to place bids in the auction there will be a market for these tokens

the security token is a represent a representation of the network stakeholders and will be used in future now governance to receive a part of the value generated in the network the objective is that these tokens become distributed as the network operates both tokens will be used as incentivation for the bootstrapping phase the other new concept that we bring is the concept of donation hermits will donate 40 of the bids placed in the auction to funds community to fund community projects we will start

with bitcoin quadratic funding grants but governance may decide to include other pools as they become available the rest of the value from the stake will be distributed between hermes holders by using by burning 40 and the security tokens holders by distributing 20 we believe that this model provides value for the network stakeholders and also for the layer 1 ecosystem since we are borrowing a lot of value from player 1 we understand that hermes needs to give relevant fraction back i hope that this generates a precedence for the

layer 2 systems to understand that it's important for them that the layer one keeps keeps going it's improving keeps well maintained and layer two systems have this responsibility of taking care of the layer one and that's pretty much what i wanted to share with you today thank you so much for your attention and stay tuned for the updates on the project status next month are going to be very exciting