slock.it and stakefish Keynotes (Combined Recording)

Transcript

[Music] my name is jeffrey cooks i'm the director of software development at blockchain's llc last year in sydney i already had the opportunity to speak at edcon and presented the working status of the incube protocol and intuit client today i want to focus on the importance of stateless but fully verifying clients for the ethiom ecosystem and present the productive intuit protocol and existing tools and apis which enable the logos of web mobile iot applications to interact with blockchain in a secure decentralized but resource-saving way for those of you who may know me or it

most likely you have heard that slogit was required by blockchain's lsd last year now that the integration of the two companies is complete slogged is working as the rookman black folio company now under the blockchain's name our vision admission and some of you may remember the presentation of jeffrey burns our ceo at park in 2018 is to re-imagine and to build the infrastructure and tools needed to empower individuals to manage strategic assets and identity a decentralized and secure way to interact with blockchain without intermediaries who must be trusted or who could be the single point of failure is essential

part of our solution within cube we provide a status client which can verify all information from blockchain by itself with a crypto ergonomic security but without the need to synchronize all data this client is of about 300 kilobytes and very low connectivity needs the smallest ethereum client available it can be used effectively in web or mobile applications but especially it is also meant to be used in iot devices which usually have very strict limitations in terms of storage computing capacity and transmission bandwidth when ethereum was concepted the vision

was to have a distributed peer-to-peer network of independent nodes with synchronized state of the blockchain and having access to the apps using these nodes completely without any centralized services in fact the need to access this information from any kind of application like web pages smartphone apps or iot devices in the past it seemed to be necessary to use centralized remote servers because in most cases this is hard to or even not possible to run a synchronizing node or even a light client in this application or device but it's a kind of paradox on we connect to a decentralized world using centralized service another

problem is that such a remote client needs to trust this service because it's not able to validate and verify their received information however centralized remote services are and must be a bridge technology only and now it's time to go the next steps the solution is to use stateless verifying clients such clients do not synchronize block information but use proofs and validation signatures to verify and validate all information autonomously blockchain llc introduce and release such a protocol stable on mainnet as incubed in january 2020 usage of such clients combines the security of a light client

with the advantages of a remote client at least for the most common iot solutions and mobile and web applications with incubuses possible to connect devices and applications completely decentralized without any centralized instance and with crypto economical security any active full node can potentially participate by registering in the in-cubed registry and logging a security deposit in addition to the blockchain node like gath or material lettermind or others the em3 api layer is needed which pass the in-cube request to the node and returns the results proofs and validations to the requesting inquiry client

the income clients can access this list of potential nodes to communicate with them out of this list they select the nodes they need to communicate if an information is needed the input client selects one of the nodes and sends an rpc request similar to a remote client to that node this node is selected randomly with some additional rules the same node is never used for subsequent queries the in-cubed client now receives the response from the node in addition it receives the block header and the necessary mobile proofs to be able to verify independently that a received information belongs to

this block at this point the client knows that information belongs to the block but cannot independently check whether this is actually a correct block of the blockchain or not to do this the incube client selects additional nodes from which it would like to have a validation the only information we can check on chain in the past and we need to do this on-chain to convict misbehave and righteously contract directly with the blockage therefore the client asks onenote for the information and requires the validators to sign the blockage of the corresponding block with this information the income client can now independently validate that this is a correct block

of the blockchain and the received animation is part of this block if a node signs a wrong block hash or delivers wrong information it will be convicted in the rightness way will lose its deposit and will be drawn out of the network with this we have a crypto economic security that the transfer of incorrect information for the node means the loss of its deposit on the other side the client can decide which and how many nodes it asks for a validation every signed information is checked always and if miss behavior is detected the convict process is started automatically additionally it is possible to run

watchdog nodes to actively scan the network for misbehaving nodes the second part of the crypto an incentive system for knowledge to receive a microbial or better nano payment for signed information with this the client pays per request or bundle of requests for verifiable and validated information as we are in the global conference let's have a look into some cool snippets in various languages to see the easiness of using intuit in the daily programming world our engine focus was on the use in small iot devices based on microcontrollers to be integrated into their firmware

embedded c is the only real option therefore the complete client code including the evm is implemented in c the incube core libraries which are available as open source contain interfaces for connectivity and data transmission verifiers for ethereum ibfs and bitcoin which is not yet released apis to access obviously functions in different way and bindings to different common programming languages to make in-cube available for any kind of applications today i will focus on these bindings by going over some code snippets to show how to integrate it into software projects

as mentioned before the footprint of incube is very small starting with about 300 kilobytes at no additional external dependencies i said everything is based on our c port which is interfaced into languages like python rust c-sharp and java all translated into varsan to be available in javascript too by the way as said on the previous page there are zero dependencies also for the javascript watson version which makes it easy and secure to be integrated in web pages or mobile applications as javascript is commonly used in the crypto community i will start with this after installing the npm package em3

minus 1 decline can be instantiated and used currently api functions all the protocol features like which nodes to select checking the proofs and validations blacklisted nodes with bad performance convicting misbehaving nodes and so on doesn't require developer interaction also it can be tuned and configured manually if needed users of the web 3.js library can switch to in-cube by simply changing the http provider using the in-cubed client instead of the local client or connection to a remote node this is shown in the second box iot devices or c and cn plus

applications can use the c libraries directly after insulting the incube client and define a data transport protocol an example curve is configured the apis can be used the memory usage of course depends on the functions which are executed for instance a complex smart contract call may take much more resources than simply a check of a confidence nevertheless a fully verified client runs with less than 128 kilobytes ram usage for python dp package im3 is also available the python client also gives access to the full api the user is assembled as in ceo

javascript also rusty robots can integrate blockchain connectivity with incube directly by using the rust binding which interfaces the c library into rust as well as java developers and c-sharp.net robots other platforms and languages will be added soon i would like to emphasize one more thing besides the binding of the different programming languages there's also the el3 command line tool available which allows you to interact with ethereum directly from the console integrate blockchain interactions into scripts and so on

additional help functions like signing with private keys including interaction with hardware wallets are also available remember no synchronization is needed just running the command as summary let's have a look at the roadmap and how to access in-hub resources during the last two years we developed the ancient protocol declined in the node software after the securely ordered end of last year the stable version of the atom main net was launched in january this year since then we focused on making incube available for as many as possible platforms including the presented python java rust.net bindings

those were and are published in incremental releases the verification of bitcoin transactions on ethereum is almost finished and the incentive layer is in work also and is planned to be released in q4 of this year after this the integration of eth2 and other blockchains and verify the protocols are scheduled for 2021. last but not least here's a list of some important resources the full incube documentation including apis examples and so on you can find

a treaty docs source codes for the node declined and the bindings to the presented platforms you can find at github the code is available as open source or do a licensed with a commercial license if needed also we invite everyone to register his or her node to the intune network to make it easy episode at in3 minus setup.blockchain.com is available please don't hesitate to contact us via twitter email or other media if you have questions or need support thank you very much for listening and [Music] watching

[Music] hi my name is jk i am part of the team at stake fish steak fish or uh is an infrastructure provider for blockchain projects for the past two years we've been running validators on different proof of state networks and we've also been running nodes for projects like chain link we're very excited to support the upcoming launch of the dairy 2.0 and today i wanted to address east holders who might not be as knowledgeable or have not been close following closely what has happened with

it during 2.0 it's not too late right now uh now's a great time we still have a few months until the actual launch happens and now is a great time to start thinking about why you should be staking eth what the risks are involved are and then also what sort of homework you should be doing right now so ethereum 2.0 has a lot of major upgrades uh included in it that's why it's being rolled out in phases bay 0 will have the introduction of proof of stake phase 1 will have then sharding and then phase 2 will finally have smart contracts enabled on the ethereum 2.0 and that's when the journey 2.0 will finally look a lot like the proof of work at durian today now

when people talk about the launch of attorney 2.0 that's upcoming this year what they're referring to is the launch of day 0. phase 0 will see the beacon chain launch the beacon chain will use proof of stake for its security rather than proof of work now proof of work you will need a lot of gpus housed in data centers very low electricity to even participate in mining and providing security to the ethereum network with proof of stake with only 32 eth and pc at home or laptop you'll be able to participate as a validator and provide security to the ethereum network

arguably this is much more decentralized and then lowers the barrier to entry for everyone to participate in the act of providing security to the network as i mentioned phase 0 is almost here currently we have already attack nets live attack nets are where developers are incentivized to try to bring down some of the durian 2.0 software and we also have the public medacha testnet live the public madosha testnet is where anyone will be able to part participate as a validator with test net ease and uh currently we are at this stage uh and once madonna the mandatory test net

has been running without huge incidents for the next two three months we will finally start deploying the deposit contract the deposit contract is uh is what will act as a bridge to the beacon chain ethereum east holders on the current proof of work ethereum chain will be sending their eve to the deposit contract to then be issued east on the beacon chain but keep in mind that this is a one-way bridge once you start sending ease to the deposit contract you will not be able to get your eave back on the proof of requitarium chain and finally once we have enough if deployed on the beacon chain and enough validators participating on the beacon chain

bay zero will officially launch the official date has not yet been sent for phase zero but i wanted to point out that there is a prediction market live and um people are still heavily betting that phase 0 will launch in 2020. now let's briefly talk about why you should consider staking and the obvious uh first answer is that you will be able to contribute to the network security as an east holder you want your you want to network to be secure and more developers to start building on top of it and so it is uh it is in your d it is your duty to make sure that the network is secure by staking some youth

arguably you'll also be promoting decentralization because now uh people from anywhere around the world will start will be able to stake and so if you're living in an area that might not be heavily represented in the proof of work space you will be now be able to represent that region by staking and i know obviously this is what people are most looking forward to you will start to receive our staking awards and proof of work miners received a new eth for providing hash power to the network and uh proof-of-stake similarly validators will now start earning staking rewards and now as a benchmark the midasha

testnet has around 860 each state those 860 eastwood are currently earning around 16.8 percent in annual staking awards uh now however the rewards here are not risk-free there's obviously a lot of risks involved with staking the first of which is that during 2.0 will be a very early stage software while the teams have spent ages doing a lot of research and developing the attorney 2.0 software and most of these have gone through multiple code audits it's possible that there still

are still unforeseen bugs and these bugs could cause some problems also in proof of stake uh if a validator tries to do anything malicious or if a validator is offline for too long uh they'll see their balances decrease we call this slashing and penalties and so you got to consider the risk that your validator could see your balance decrease in the event that slashing or penalties happen but the biggest risk i wanted i wanted to highlight here was that in phase 0 you will not be able to withdraw your e i wanted to repeat that again so at least until

phase one which is plan for 2021 any ease that you start staking in phase zero will need to wait until phase 1 before you're able to withdraw it and so while 2021 is the expected launch year of phase one because there is no date set uh technically you'd be locking up your e for an undefined amount of time and so you you've got to take that into consideration uh when you're when you are going when you start staking so uh now now that you're aware of why you should be staking and what the risks are uh so let's go through some of the uh things that due diligence that you

should be starting today uh and i've tried to boil this down to four or four steps step one is trying to determine how much if you should be staking i've already outlined some of the risks especially around how east will be locked until at least phase one this definitely means that you should not be staking your life savings into uh on the beacon chain at all and even if you have uh if you have some emergency funds set aside and just a sizable eve holdings that you want to stake you should really consider diversifying your uh diverse hedging your risk by keeping a set ratio of your e

still on the proof of work uh ethereum chain and thankfully uh thanks to a lot of the d5 products out there uh even if you're not earning the staking awards from the beacon chain there will be plenty of opportunities on the proof of work ethereum chain for you to earn some yields on your east holdings so definitely do consider setting aside some ratio of your eav on the proof of working during chain and then some amount on the beacon chain to stake and then the next step is to try to run your own validator i want to emphasize that attorney 2.0 has been designed such that

anyone from home should be able to run a validator and i totally understand that running a validator might not be for everyone uh some people might just not have the time and some people might not just not be technically uh capable enough but you wouldn't know unless you try and that's why the mndosha testnet is a perfect place for you to try to attempt this the midasha testnet um replicates how the phase zero change uh the beacon chain should look but all the ease that you would need for running a validator on the midasha test net will be tested youth so you're not technically putting any of your own money

at risk here so uh definitely uh and the ethereum foundation team has put together a very um great website um at midasha.launchpad.etherium.org where they take you through the steps of how the steps of how the steps you need to take to run your own validator and they're very intuitive so i highly recommend going through these steps to determine whether or not you will be able to run your own validator once once phase zero comes along now if you've determined that you might be able to handle running your own validator in step two um you don't really need to go through step three but for those people that

still feel uncomfortable after going through step two and want to try to delegate this task out to someone else you'll need to go through this uh the step 3 process and which is where you start assessing um and trying to narrow down some candidates for where you could uh some third-party validator candidates uh and i started to bucket these into three large categories so that um it's to give you a starting point on how to approach and think about third-party validators the first is are the exchanges and custodians and they'll definitely be offering the easiest form of staking

they'll likely take custody of your ease and then provide and then stake for you but obviously the risk here is not your keys not your coins um if the exchange or custodian does uh makes a mistake and how they handle the the keys your funds could technically be lost the second category are staking pools this is where this is where if you don't have enough ease for example if you don't have 32 e's you'll be able to pull your eve with other community members to co-own or co-run validators the risk with stake impulse however is that pooling will likely happen through a lot of smart contracts

and these smart contracts while they might be audited sufficiently there still might be some loopholes in there and you'll need to definitely think about how to hedge your smart contract risk the final category are devalued there as a service companies uh projects like us um we will uh we will not um keep custody of your funds you will fully own custody you will fully have custody of all your eth and all we will be doing is operating the validator for you the biggest problem with using a validator as a service is that you will need to

have the full 32 east amount so for example if you have 10 eth or 5v you might not be able to use a valley beer as a service i will need to consider the staking flow route or perhaps the exchange exchange staking route if exchanges support staking for less than 32es now um now that i've outlined some of the categories of valid third party validators available out there these are some good questions that you could start asking um creating a checklist uh to see which projects companies fall in uh you know meet uh your standards or your requirements

uh uh for a good third party validator i won't go through these specifically but i've outli i've just laid these questions out um there are definitely a lot more questions to ask on top of these i highly recommend talking with the team directly um interviewed them most of the valley third party violators should be open to answering uh these questions uh for um and more and finally once you're through all those steps uh next up is to uh follow the latest updates around ethereum 2.0 the reason why i say this is because the exact date of the launch is still

unclear and could be announced uh you know anytime soon and so it's very uh important to pay close attention to the official announcements uh i want to emphasize paying close attention um because i expect a lot of scams to start appearing as we approach this milestone and uh i wanted to present some solid ways uh that you could follow that you could follow for the latest news around the durian 2.0 uh the obvious um strongest official uh website to go for the official news around 8.0 is the ethereum foundation blog but the other two good resource to also use is a weekend and durian

weekend ethereum should be familiar for a lot of the ethereum folks out there but also to add on your list is what's new in eth2 which is heavily focused around the latest updates around the journey 2.0 and also includes a lot of good notes around the developer calls or developer meetings [Music] for developer meetings around ethereum 2.0 now i definitely did not have a whole ton of time to go into detail around each of these steps or even through why you should be staking and risks around staking definitely there's a lot of good reading material out there

we ourselves also published a good basic article around um iteration 2.0 uh definitely recommend checking it out on our medium channel well we also have now a landing page live on steak fish website uh you'll be able to find a calculator there and then find faqs around it durian 2.0 uh and most importantly don't hesitate to reach out uh you can find my email down there and also my twitter handle we're here to help you out we're happy to answer any questions and yeah let's