[Applause]
it's either grew up good afternoon
Paula Myers and today we're gonna walk
through validating each two and getting
up to the warrants that you will receive
is another day but we're gonna do it in
space so we're going to make it fun
we're making interactive it's going to
be quite cool so look over all those of
you please look into the space this is a
topic that doesn't have a lot of
transparency it's super crucial these
are distributed systems with incentive
bubbles and there's been a few people of
ecosystem publish research on what the
incentives for East you are but most
American consensus in the yeah we've
been working together for an effort to
put out or Colombini to calculator which
we will release and I have a model that
everyone can have a telegram group will
launch after this educate everyone the
super important topic that's not talking
about too much so let's get started
so today we have a special guest star
her name's Alice she's gonna be a ballad
82 chain space
so over the journey we're going to touch
on a few topics leading up to what we
eat to the calculator is we're gonna
start with what is the bacon Chang I'm
sure everyone gets crabby Chang
definitely needs to conference might cut
away become about the Nader
what his house responsible for I know
she stay a validator and then ultimately
what is she
in return for doing so when they gonna
walk through some economics if they CRO
is this is the big thing that we're all
hearing that for it's the event that
basically bootstraps the BB chain we're
gonna walk through the results and we'll
talk about these two calculator how
everyone can get involved in what the
ultimate intentions of it are so let's
just start a high-level I'm sure
everyone has also probably seeing this
chart a million times but we're going to
primarily be focusing today on the
beacon chain which is the coordination
they are the spine that leads to it's
the main part where all the action
happens this is where Alice and all our
friends hang out so the coordination
layer itself you can think of it it does
a few key components its stores and
managed Allison elements it provides a
random component to basically select who
gets to validate this is where the
blocker goes it takes place this is
where I get slashed or I get to return
for my actions and then committees and
cross link processing which is a bit
more in place it makes sense once
they're starting and but in the future
this is also all of that is included it
takes places it some of these gist so
let's just talk about the paces I'm not
gonna talk about thanks to today because
it's a bit out there and it's a bit
still unknown there's a lot of good work
being done
will't to make facetube a reality and
kind of get people on board and skipping
ahead now that 0 and 1 the specs are
foreverment people are spending time
well phase 2 the big thing is is that
between phase zero phase one thing
economics do not change but between
phase zero thanks to the economics will
change and we'll get into that so let's
just talk about what phase zero does not
there's no media
there's no smart contracts and not
transfer assets and there's no accounts
so it's basically it's the heavy lifting
in the system however there's really no
activity inside of it it's just
basically propagating and applying FFG
hanging out of your returns and slashing
but we hope that everyone ex all
statements time creating that it doesn't
happen I also want to address slashing
and this today that is kind of a b2 of
the model and essentially what we're
just going to do is talk about the
perspective of a novice validated base
one you can think of as bootstrapping
for cross-linking this is going to be
empty shard blocks but then we all
communicating together but there won't
be anything inside of them so in phase
one shards exist but there's really
nothing inside
making sure that the machine operates as
its supposed to
so I'm an analyst I have 32e
I want to join how do i do so so the
first thing that you're gonna need is a
p2 note you can though it can mean a few
different things it can be in a laptop
desktop computer or it can mean a PS if
you are doing this with larger
quantities or you're worried about
system uptime your own household more
right here ain't no meant to be able to
do most people in this industry are the
F largest asset even we based the model
and some analysis on the ESP feed option
on these people you need to choose your
client of choice this includes Artemis
this includes prism there's six or seven
different ones everyone I'm sure is
seeing the recent Interop news behind
all that such as really great progress
being made on that side of the equation
but that's kind of how you get started
you need to have those cheap or things
to be the part of this so once that
takes place there will be a deposit
ceremony I was supposed to have an
in-depth thought but it has been
recently delayed due to BLS so now we're
kind of targeting January 2020 or at
some
during the beginning of next year
there's a few more technical steps here
that that we'll go through about
generating a PK and then basically
having a withdrawal key which could be
both with your vitae it also happens to
be hot so you can continually have
activity to the chain it's not
transferable to ET that you get in
return so a requirement it's not
technical it's something more of like a
risk tolerance so if you participate in
this level of it you must understand
this there's going to be a a time gap
which is not work fine that's one of
those before
but you're eath one gets burned and you
get that in return for and you can't do
anything with it until a certain point
time minutes there it's more than what
wasn't asked but it's more of a human
risk grammar that you have to think
about so you know what do I have to do
I've done all the pre steps I have my
eat I've lost the process I figured out
how to use the command line I've done
all this stuff like stuff so now what do
I actually have to do so there's two
main things that take place as a
participant inside of me - you propose
new blocks this happens infrequently and
if you
in the human test which is the signing
of new bucks this happens much more
often and it's much more important to
the overall system without corners so
those are two main things are some other
small he wants things that exist but
it's a lot to get through twenty minutes
so we're just going to keep behind that
list of two main things that you do
those are your two actions so now let's
talk about you know where do these come
from what are they
we've been talking to return your
certain actions I have to have certain
things to give them so now let's talk
about what they are and where they come
from
so the FFG award is what you receive a
zero that has actually grown up into
five components of it too technical for
what we're going to talk about today but
essentially that is chopped up into five
different things and that's the basic
reward is what you will receive a zero
things one for bootstrapping the system
there will be no network fees until it
base two and then later on phase two as
well you can essentially you know call
people out there you can receive
something they return it as well in the
model that we built it includes all of
it and it can be toggled that the
primary announces today we pay zero so
let's talk about the system right how's
this thing designed where the main
rewards coming from ulta to link what
are the key drivers all academic modest
existing key drivers that can be sent
playing with E - has in my opinion
severely different and actually mature
group mistake
design methodologies behind it even
though POS introduced so let's talk
about two of those so number one totally
fits take number two
thanks for work number three what is the
average network percent online of all
the participants inside of the system
Chloe that state you can think of this
as you can see on the chart here the
more that at stake in the network with
less than I get these two red dots are
two key points of bootstrapping this
system two million eight states is the
first red dot and four point two is the
second red thought we've given a bit
more into what those mean and why
they're important but ultimately I guess
a comment that I'd like to make about
how the system is designed is that you
know people have different ways of
saying what the return is or what the
resort level is a heuristic protocol
most people are watching POS with dead
star of like zero Tony distribution this
model that leads to is based on is
actually more of a shared POS where
unless we have a proper token
distribution and everything is already
in the ecosystem you aren't able to do
this also a big proponent of not having
a cap so people who run POS network
sometimes with essentially mining
schedules would like a fixed
period it's a big debate should there be
a cap supply enough
I personally that you can't run this
economic model if there is a cap but
we're going to have a debate about
people of intercuts
the second part of it base reward factor
right now the spec is at 64 and this is
basically showing you from to attend
maybe what you would receive with a
bunch of the fix variables which will
all be inside of the model but the
primary point of this is to show that as
a base reward increases what I get in
return also increases and as the amount
of value in network states it decreases
over time so it's staying true to its
design principles and it matches what we
just looked at the third factor is your
average number percent online this one I
think is quite cool and not really spoke
about too much so it's basically like a
collective reward mindsets where if
everyone
work is providing uptime and being
consistent their behavior than everyone
else is something in return for it so
what it does is it sets of us is
collectively better behavior for
everyone to stay online than to stay
alive it's a primary driver of what's
the of what you get out in return and I
haven't seen it collectively implemented
about the Oseberg also I find this
person to be one of the more genius
things that these two interested see how
it plays out but again two million a
mistake 4.2 million just remember those
- those are very crucial levels and for
a relative comparison right now that
side of all the minor protocols there's
2.8 an ether lot but again as you can
see from 70% to 100% year when you
receive them the protocol increases over
time as we provide more uptime our
fourth component which is not included
in the last year that is sent that's
something I think we should talk about
is a lot of POS protocols not gonna name
names but they what you get in return is
based on how many times you have which
is twice they centralized element of all
of this so like this is like a whale
scale we have different amounts of
clients that you could run in the bottom
of it stretches from 1 to 50 which
basically means at a protocol level X
cost if I'm validating with 32 E or I'm
validating was 1600 I receive the same
thing
so achieving economies of scale at the
protocol level inside of youth - it's
not something that is possible it's more
about how many plans is happening on
each node so ultimately end of the day
the premise of this being designed to be
the most a centralized actually in
Austria so I think it's a really cool
thing to have to write the numbers and
seeing this come out is something
important to remember this yes to the
mission so positively unless it's going
to happen this is kind of how everything
starts January 2020 are kind of some of
the data people have been throwing
around I was supposed to be very calm
that kind of gives us a bit more time to
educate on economics advice that they
need to kind of gather more of a
collective the exclusion of people to be
a part of this the two million needs to
let's talk about that but that's
important
so to get the change started that's
equivalent to 65,536 validators so
looking at what combined Awards would be
the economics at two million East Inc is
something quite interesting to look at
the next number that's the island on the
charts is for one single inning so you
can think of this as once we enter phase
2 it starts with lie what is the minimum
amount of eat it needs to be state for a
fully started system to be secure so I
personally think is being particularly
easily fine and we'll get there but
ultimately I think we really
do is in this first sprint of all this
proof to 4.2 billion so that when
today's toothpicks in the call to action
won't have to be too severe and
distracting and ultimately much learning
takes place everything will be in there
again Thanks network thiis not included
and your bad side transfer will hold
until Facebook so let's talk about some
of the assumptions in the model some
from the charts that were about to go
through so on the network side of it we
take a look at between two and ten
million East States and I personally
think that that's achievable at the 10
million plus and maybe not in this first
phase zero push but ultimately I think
that's kind of where the equilibrium
will be picked between 10 and 20 ninety
percent average online kind of just the
base running the model based on that but
sensitize into different charts
thanks forward 64 and again no peace let
me take a look at our validator Alice is
acting she's a single individual
validator she only has 32 e she's
providing 98% 98 percent uptime she has
a 250 dollar computer with the
two-and-a-half-year light button so that
basically our Kostas schedule over two
and a half years we don't include Robert
and I speak as cost in this equation
it's kind of a sub cost we assume that
most of your average humans that will be
participating in this earlier stage will
have this but the model that you can
toggle it and you can decide whether or
not you think this is needed or unneeded
these prices that 182 it was a bit lower
but you know it's I changed everything
the evening yesterday women so it's
talking about phase zero
now here's what you're going to get a
pure protocol network level this
includes no cost this includes nothing
like that so you will receive in Ivanova
into an inflation 10.5% at that two
million level which it's the Beagle
chain picked off call it secure is
charting which is our 4.2 million level
you'll receive seven point two or seven
any of us now let's take a look at what
you would receive when applying that
cost so when these perfect when these
numbers first came out and you run a
bunch of models on it at the beginning
of the year they weren't net positive it
was in the red which led me to believe
that I don't believe it's a protocol or
foundation responsibility to to base the
design of a protocol on Hospital
when thinking about making this a
reality since it's such a human based
technology so at our phase zero two
million to get the beacon chain started
you'll receive a six point nine percent
which i think is quite competitive
considering the risk profile of built
out a theory of this and other fruit
mistake so at four point two million as
well go get three point six percent so
that's that's the ideal setting of when
we think that the system will be secure
and I'm pretty comfortable with that to
be honest with you I do think that at
the lower end it's a ten minute bite low
but then again it's kind of a call to
action of what we're doing there while
they're putting this together is getting
insight from people who already comments
people who've actually looked at and
understand human behavior like vultures
because right now it's a bunch of
technologists and ex bankers trying to
figure this stuff out which has got us
pretty far but ultimately this means for
their insight from other people as well
so this is kind of interesting one being
at DEFCON this is kind of the way the
scale I do believe that form a face your
perspective like we're going to need not
an element of centralization but we're
sir
we going to need some larger eat folders
to come in here and bootstrap this thing
so this model this chart within the
model is based on use of a VPS to visual
ocean at $20 a month its assumes that
you can fit 16 clients on each machine
which is quite conservative but that can
all be flex inside the model and
ultimately this is what your return
stitch what would be again just to
comment on the decentralize design the
protocol as you can see economies of
scale can only be achieved to a certain
degree as a large person on the network
which i think is quite cool but anyway
else in the room this is what you can
expect with a zero if your vendors to
help me out so you know what we this has
been four or five months to put this
together where's the point of all of it
what we want to do with it essentially
we're launching two calculator and the
purpose of this is to educate the person
thanks to inform this is for people who
want to validate this is for people who
do research this is this is for anyone
who wants to add feedback to it so it'll
be an advanced calculator that has a
series of validator assumptions and
network assumptions basic and advanced
there's going to be a feedback form as
well which we think is probably going to
be the most important thing where we
want all the feedback and comments about
this fact about the economics to take
place in one setting because ultimately
at this point if people aren't stoked on
the
be a heart force that's going to entail
affirmation and a lot at this point so
we were like where are we now with all
this we have enjoyment we have all the
business logic involved built into it
today we're going to launch this group
here where I will drop the bottle into
it and anyone that has questions as
comments I'm not going to do that during
the talk today but ultimately we'll do
all of that and cause it one of the kind
of single source of truth so that we can
continually get feedback on this cos
it's super crucial to do so so to kind
of close it out there was a lot of
people who helped with this effort both
inside a consensus at the EF outside
this is kind of the maintenance of
people here that helped out with all
this so it was a coordinated effort for
everyone so everyone involved because it
was above it to get this done and that's
it if you want to hit me up here's my
sonogram and that my Twitter I can't
believe both of which were not taken but
they weren't so please feel free to
reach out if you guys have any questions
and I'll drop the model into the
telegram group because start jamming
thanks
[Applause]
you