Pitching Public Ethereum to Enterprises

Transcript

hi everyone thank you for having consensus participate in edcon my name is clemens wan i'm a global solution architect that's been building enterprise blockchain solutions since around 2015 for companies like credit suisse r3 and now consensus today in 10 minutes i wanted to share how enterprises have shifted their view of deployments from permission to public networks there's been an overwhelming trend of more institutions building on ethereum because of its adoption and activity we've provided categories of engagement with institutions developers and regular users some statistics to pay attention to include total value locked in live contracts and the growth of stablecoin assets

developers continue to build new d5 patterns and harden the live smart contracts and established apps that are out there institutions that have tokenized in private network adoption have considered beyond what was just operational efficiencies and digitization and to focus on liquidity and market innovation for new investment classes today we are overall recommending the build of public ethereum in order to take advantage of one the faster setup and lower cost of ownership two the immutability and longevity of data stored with tens of thousands of independent nodes and finally the composability allowing for connectivity

to defy through patterns like staking fractionalization securitization and collateralization the initial concerns that institutions had that led them to pursue permission networks have also been sufficiently resolved these are protocol improvements that have helped with energy efficiency scalability and privacy due to the shorter time let's focus on the dap deployment advantages in the established public network this is a standard private blockchain journey for a consortium after you develop your dap a lot of time is focused on node deployment adhering to enterprise software standards on the business side you're also trying to build a consortium to agree on the

benefits and adoption mostly before even the tech is tested and the market is tested the consortium model usually chooses a separate tech vendor that does not have a single ownership from one consortium member to prevent any types of conflicts of interest and then the tech vendor determining their deployment and long-term support likely runs the ethereum nodes on behalf of the participants this will get the product to market faster and focus on the business benefits the last step involves time and licenses for adding more nodes and neutralizing the infrastructure costs across the participants in my time building enterprise projects we haven't really seen this happen it's mostly been the tech vendors hosting the

nodes on their behalf which doesn't make it sufficiently decentralized the public journey is much more straightforward the added complexity is really the gas costs for funding and running your transactions for deployment you'll also likely want to work with a team that can audit your contracts and monitor when they're live this is another view there's lower total cost of ownership when you compare the operational cost of running a system on mainnet then focusing on the ownership of the network itself in a permission network a consortium may have more control in the private chain and face less security and treasury reviews at first but then your infrastructure overhead and

negotiations on consortium network matters really outweigh the convenience and added features connecting to mainnet ethereum mainnet is secured by the interaction of thousands of independent nodes run by individuals and miners throughout the world private chains typically have a smaller number of nodes which are controlled by one or a few organizations those nodes can be tightly controlled but only a few must be compromised in order to rewrite the chain or commit fraudulent transactions so here you know some of the things to point out is one resilience of replicated data recovering from peers the more peers you have the easier it is

to find a seed and fully recover two you have consensus the more validators you have the more collusion it takes for 51 attack and then three you have the security so the security of a permission network is really governed by the node with the least security so only as secure as the weakest link in a permission network and every time you add a new node you're really adding a surface area of attack the last point is the ecosystem so a public network has already formed connectivities to enabling services that provide liquidity and products around the live network not only do you have players that are willing to take strategic positions on your new digital

assets but they're already using the same payment and ownership resolution rails in a permission network the biggest gap is the incentivization and building of connections in order to bootstrap a healthy market the ecosystem also provides composability and when we say composability we mean it's much more than just an open banking api it's a set of open source live protocol contracts that can be called called and extended directly without any other intermediary we've seen pure forks of code like uni swap to sushi swap we've seen copies of d5 models like compound and ave there's more and more real value happening in d5 leading us to

believe that cryptocurrencies aren't just a fad but it's here to stay so what does this mean for enterprises we've taken most of our clients and partners with clients through this type of journey to increase the comfort and connectivity to defy it starts with institutional readiness so we look at the implications and policies and creation of innovative communities then we look at permission network capabilities and responsibilities for mapping internal identities maybe connecting those to existing systems and then from there we look at the bridge to open networks and migration of digital assets that might exist in old file cabinet systems and use those as collateral to create wrap

tokens or asset-backed tokens on those open networks while we can't really replace all of the legacy systems we can really focus on interoperability and this asset portability so we're moving from fiat plus csds or kind of collateral stored in regular banks to crypto plus token-based ownership we're really excited to see where this journey is taking enterprises and how consensus can help gain more institutional adoption across the board just a small plug consensus has household ethereum product names that does help the infrastructure behind ethereum public networks our efforts in

metamask for example have extended to institutions for safer connectivity to custodians where at around 10 million monthly active users the inferior product has been built to support you know the infrastructure with billions of api calls per day it has also connected to other layer 2 chains as a gateway to d5 the truffle suite is available with over 5 million downloads it's for streamlining your source control and developer experience we also have a diligence team that has done over 100 audits of live smart contracts today and finally the codify application suite has enabled companies to leverage digital asset issuance and payments and

we have enterprise grade support for all of these anyway thank you again for inviting us and enjoy the rest of the conference