The Future is Multichain

Transcript

all right hello everybody um it is officially crossed 40 degrees Celsius or 104 degrees Fahrenheit outside so if you haven't been outside in a while you feel like you need to detox or sweat a little bit highly recommend it wait for 15 minutes till I'm done though um my name is Jackal Holleran I'm the CEO and co-founder of scale Labs skill Labs is the core team behind the scale Network which is an open decentralized public blockchain network scale is a modular multi-chain Network I'm going to talk a little bit today about what that means talk about kind of some of the challenges and opportunities of multi-chains or app chains or horizontally scaling blockchain infrastructure okay let's get into it all right let's first Define what is a

modular blockchain or a modular multi-chain blockchain Network in short these are blockchain networks that are not one blockchain but many many blockchains but also many blockchains that are all tied together that have a root of a baseline security and they're systemically coordinated all through essentially a modular or containerized infrastructure um why like why do we need modular blockchains why don't we just use single block chains well the reality is is when you have a fixed Supply at some point you're going to meet a point where you either have to raise prices or be have people be comfortable with uh poor performance right it's just it's just physics so modular blockchains don't

seek to scale uh vertically they speak they seek to scale horizontally okay or to grow horizontally I think traditionally there's been this uh just just dead focused effort on taking a blockchain either connecting another blockchain on top of it or connecting off screen off chain scaling infrastructure above it now in the multi-chain world or app specific blockchain World We believe there's a belief to have many many chains as long as you're not sacrificing security and user experience but those are challenges okay so I'm gonna address those um and and some of these challenges we uh we just had unknown unknown loans we started building scale in 2017 and kind

of went through this infancy stage and then kind of crawl and uh and now we're now it's this toddler stage where we've got a full Network live and it's it things are really starting to move but we learned a lot in process and there's there's unknown unknowns uh when building you know new uh new models so the primary challenge with modular blockchains is that if your security from validator sets are broken out in a one-to-one ratio of valid of blockchain to security you're really not you know gaining anything you just have many many disparate blockchains uh and I would go as far to say these are just side chains okay if you have a set of validator operators and the stake for those

operators is exclusively tied to the The Operators working just on that chain that's a problem so um so how do you get around this well one you need to be able to I'll get into this in a second but the goal is to have many many chains that all work together in a collective security Dynamic all right the other piece is if you can do this in concert with the ethereum mainnet scale for example is built into the ethereum main net there's uh 30 plus smart contracts that are actually the authority of the scale Network they determine really how the network functions operates and is and how it's administered you get even more security the other piece of this is when utilizing ethereum you're actually

creating a a network of it's almost a decentralized REV share model there's fees every day that go to the ethereum network from scale as opposed to being parasitic having a completely separate chain that's just bridging assets out of ethereum the scale Network or any modular multi-chain that's integrated in a real meaningful manner will bring fees back to ethereum for example every time a scale chain is set up it's roughly five thousand dollars in gas fees to set that up every time nodes are rotated there's gas fees every time someone Stakes or pulls staking Rewards or a slashing condition were to happen all that happens on ethereum and gas fees are paid on the mainnet okay let's get into the the meat of this all right

um so the magic here really is is in containerization and advanced cryptography so scale for example has eight sub nodes on every node okay there actually can be up to 128 uh but then there's different performance issues eight seems to be right now a very good number in terms of creating uh pooled security and having incredibly high performance having subsequent block times having uh you know a really good use of file storage and memory on each chain um and so that is the current configuration setting now every single node then can be concurrently running on eight unique blockchains or app chains or sub chains whatever you want to call these right we it's called scale chains in the scale

world and these containers then when a chain is created the ethereum mainnet actually orchestrates and connects these sub nodes together in a chain and so they're acting we have this independent operating chain with its own IP address and our PC Port but it's not independent from the perspective of slashing conditions and security and coordination and staking rewards and validator pool and the ethereum mainnet through using BLS and dkg mashup are actually able to have a secure entropy to talk to the nodes and pull them together into these groups these scale chains or app chains if you will and these also to have further pooling of security those nodes

are randomly rotated and reassigned and so what we're trying to do is create collusion resistance in a fully decentralized autonomous manner the other thing is that if a node goes down if the node quits working if the validator operator decides to just stop well guess what the ethereum mainnet can slash that validator and actually reassign a new validator and maintain liveliness in a fully autonomous manner using smart contracts on ethereum and using and speaking to the node core in each of the nodes on the scale Network okay um so what we're going for is a a design of high performance and pooled security where we don't just have a you know a side chain where nodes are working one-to-one ratio of stake to Performance

but we have a much greater ratio and a pooled security Dynamic where we can have an unlimited quantity of of chains all working in con with validators and concerts so let's say you know this someone says Hey I want to go set up my own blockchain well on scale you don't have to go recruit all your own validators you don't have to go uh start from scratch you can plug into the ethereum ecosystem go to the mainnet pay rent a smart contract pay scale tokens and actually have a blockchain created for you all right and and tap into that pulled security tap into evm across each of these chains the other thing is it opens up a dynamic of new business models okay so and who has

had a hundred dollar plus gas fee in the last year okay anyone had a thousand dollar plus gas fee yes still yep there and and but who's ever paid a hundred dollars to Google cloud or Amazon web services using a webview application nobody that it's it's subsidized you are paying for it you're just paying for in a different Dynamic and scale enables developers and uh across the across the board to leverage this technique by a Dao an entity a person a company anyone can take get buy scale tokens and pay them into a contract to pay for that chain and they pay in advance for a year it creates a zero gas fee model now the goal is to make that work Forever by the

way there's also something called s fuel that is a gas that instead of using Financial uh rigor to do rate limiting it uses scarcity and so if users are spamming they're going to run out of the S fuel but the S fuel doesn't have monetary costs it has scarcity value okay um so the goal is to make this zero fees forever that means that even this multi-chain network needs to be able to scale so it's actually a non-linear uh pricing curve for chains and as a as a network right now there's already 25 chains and the current state of the network 160 nodes it could produce about 80 chains and as each as the network gets more and more overloaded so does the price increases in a non-linear

manner what this does it actually motivates validators to go set up more servers there's also something called the minimum stake rate the minimum stake over time continually drops validators must run more hardware and essentially support more chains now it works the other direction too if it weren't economically viable validators would run less nodes and there'd be less chains out there and the system is able to balance and have Harmony okay the goal is to let supply and demand work together as opposed to you know painting ourselves into these corners and saying oh well we didn't expect this much to happen and now fees are astronomical okay the other part about modular blockchains is that they allow other you

know newer features and models to be created so new new product features so for example there's scale file storage because of this containerization every single chain can run file storage locally on chain you can run a full website and nginx server node.js you can run these you can mint nfts and store them locally in this file storage container all on scale today there's also native Oracle functionality stand scales co-founder and CTO of scale Labs we'll be talking about this later today I'll give you the details in a minute you can turn on multi-transaction mode so you can have super high throughput processing or Speedy game mode so these these modules also enable configurability in the future we we love to see our partners that are building

roll-up techniques and ZK techniques even be able to leverage these containers and modules and rent chains and deploy decentralized roll-up products excited to see see the Innovation take that you know at the end of the day what scale has as many many evm chains with stake and pulled security it opens up a lot of doors you also be able to have a greater quantity of nodes you could pay more scale to have 50 sub nodes instead of eight things like that that may make performance less but further increase your security across the network there's also automated Bridge defense using a mainnet escrow there's different features that are coming out even though scales bridge is decentralized using a BLS threshold signature scheme there we

want to make it even more secure or if the community does and everybody contributing here to skill okay um Stan will be talking about skills Oracle in a little bit um in the I think sarban room but you could have an ape for example on the main net and without that user transferring the asset over to to scale the scale Oracle can look and say okay this Xerox address has this ape they can use the ape in the game if they trade the ape to another transfer to another address it recognizes that and that user no longer can use that nft asset from mainnet over on a scale chain and skill metaverse product there's an example there's also many other examples Stan will talk about okay these platforms these multi-chain products do not they

come with challenges they come with unique problems and one of those is bridging okay so it wasn't until just this last month that each scale chain could Bridge from one chain to another all right and with this in the and during the peak of the the bull run it was a hundred dollars to go from a scale chain a to scale chain B because you'd have to go to the ethereum main and come back and now through this BLS threshold message there's zero cost bridging takes about 10 to 15 seconds you can go from chain a to chain B Etc there's also widget and tools being created so end users should know what an IP address an RPC Port are or a different chain they just have assets they can plug connect metamask connect a web3 wallet and plug into the scale metaport this is open

source code anybody could adapt developer can use this and implement this or you know run their own own widget but this widget we're also excited to see what our wallet partners are building so my ether wallet for example can plug into this ecosystem and make this dead simple for users to play games across a skill ecosystem um the other issue here is token mapping if some if a user moves token ethereum tokens from one two chains simultaneously and try to move them over that chain will then see recognize them as two separate unique tokens even though they're the same token so the answer is to have a kind of human coordination so to speak or decentralized coordination where people recognize hey let's try to build bridges

that leverage one chain and then then the system can uh there's zero mapping issues so that's uh that coordination actually took place in scale purely from a community perspective there's now there's over a thousand developers building across I think 170 projects on scale um and there's there's hubs that are being created so instead of having right now there's 25 plus chains that are live and instead of developers needing to try to manage this whole coordination and trying to figure out where to plug into well all the liquidity is pooling up on one chain and so so Ruby exchange now is live on the scale Hub and then from an nft Marketplace perspective all of those are are pooling around the nft

marketplace Hub called calypso these are full community run projects the these are all at the end of the day just the same type of chain but these hubs are coordination vehicles to make things more simple and make partner Integrations simpler here's a quick little snapshot of of what's Happening Here across these different hubs and different products and tools I'm excited about the you know supporting ethereum and having these hubs come in and and add a lot of value um uh so I you know the big news for for scale uh is V2 is now live um just a month took a long time like I said it was it was more of a like you know multi-year project we started as I said at the end of 2017 but now uh V2 is up and running users are bridging from

chain to chain gaming is absolutely on fire uh uh blowing up um some really great Partners here uh recommend go check it out you can go uh go use a scale chain today Ruby exchange now has been like for one month um excited about that go check out ruby.exchange zero gas fee trading really phenomenal team uh building defy so hey thank you multi-chain I believe is going to be more and more of a narrative as will modular blockchains and works cited you know do this from an ethereum first perspective uh the scale team is here to you know we feel really a piece of the fabric of this community and again just excited to be here you can find me on Twitter there at Jack o'holleran and and Stan will be speaking

at 6 50 PM about scale Oracle okay thanks everybody [Applause]