so when I speak today about what I think
will be the broad architecture of the
decentralized World Wide Web and how we
will get there and to give away the
punch punch line the critical element is
you you the developers today's web -
world consists of siloed walled gardens
it really isn't much of an open web
anymore
Google's front-end serves and monetizes
everyone else's content Facebook Twitter
and a bunch of other Gardens have us
trapped behind their walls it didn't
start that way the internet started with
the promise of a certain style of
decentralization it was about building
robust network architectures such that
damage to one part of the network would
not render other parts unusable the
socially aware technologists soon framed
this characteristic of decentralization
in the context of political control John
Gilmore an early famous cyberpunk stated
that the net interpret censorship is
damaged and routes around it these early
cypherpunks were the godparents of all
of us here today in today's web 2.0 we
give away our personal information and
our power in order to exist on the
Internet
for most cyber citizens it would be
debilitating to be deprived of Gmail
Google search Twitter Amazon's
and Apple's ecosystems and the various
Facebook properties the web is broken or
incomplete because it has no native
constructs for identity or money without
a native construct for money the web
turned to advertising as its core
business model without a native
construct for secure and private
identity the web grew exploitative
before we could recognize that an
advertising technology cancer was
growing and killing the patient with
deep learning techniques applied to
monetizing our personal information and
our attention and addicting us to
clicking and scrolling incessantly
on social media the technology that
should be purely empowering us has also
become harmful to many individuals and a
weapon of mass manipulation targeted at
our societies and they
States having identified some nasty
problems in the commanding control
architecture of the web many of us at
this conference and elsewhere have come
up with some promising solutions these
solutions are not yet mature but they
point the way to a web and societal
future that I think we can all be
optimistic about this is why 4,000 of us
flew to the kitchen of Japan to
celebrate and extend the current
capabilities of aetherium the promising
solutions involve decentralized protocol
technology these solutions will soon
employ zero knowledge techniques
pervasively and systematically so only
what must be disclosed in a given
situation will be shared whether you are
demonstrating that you are of legal age
to walk into a bar without also having
to reveal your home address or
demonstrating that you are capable of
shipping a certain quantity of grain
without revealing your company's name
these solutions involve tokenized
incentivize collaboration mechanisms
instead of a world of companies that
serve customers in a somewhat
adversarial relationship we will soon
conduct our lives on networks for
Commerce and leisure these networks will
bring together many actors in diverse
roles and motivate activity with
tokenized mechanism design such that the
collective collaborative behavior that
emerges on each platform serves all the
people who operate on and jointly owned
and govern the platform as the platform
appreciates in value all the owners
playing different roles on the platform
benefit as well these solutions will see
us establish our own self sovereign
identities where we control the roots of
our IDs through D IDs decentralized
identities as specified by the
decentralized identity foundation and
realized in the form of you port civil
ID and other products verifiable claims
as specified by the w3c will enable us
to lodge cryptographic attestations from
our D IDs on to D IDs representing other
people regarding characteristic like
characteristics like their age actions
like the fact that they paid their
utility bill achievements as in
education
attainment and performance as with
credit scores or developer proficiency
di DS can also represent organizations
or things like content for instance
perhaps most importantly web 3 will be
more user centric than any previous
internet platform putting the user
finally at the center of user experience
people must be in control of the root of
their identities so that their identity
can't be stolen and in control of their
own personal information so it can't be
exploited even in the extreme
circumstance where a refugee is deep
platformed from their country and not
able to take any physical possessions
with them to their new home they should
be able to easily access their
decentralized identity and reclaim their
personal portable history and reputation
in in the form of verifiable claims
linked to that di D under the web 3
paradigm all users will have real agency
social political and economic on the
many collaboration networks on which we
will all soon work and live this will be
the new fabric of society and this
fabric will support far broader
participation in governance and broader
wealth distribution we're moving rapidly
though it seems agonizingly slowly at
times towards realizing the web 3 world
it seems slowly to those looking in
because they hear about the potential
and they expect it to materialize
instantly as though the web and Internet
mobile phones and cars were all birthed
as mature products with fully formed
infrastructure by their original
inventors as though the global
electrical grid was spun by Edison and
787's and f-35s were waiting in the
wings for testing on the runways at the
International Airport at Kitty Hawk
realizing a well-formed web 3 world will
involve us achieving improvements in
three major dimensions privacy and
confidentiality scalability and
usability privacy and confidentiality is
moving fast with various explorations of
zero knowledge techniques state channels
mechanisms and layer to private chain
architectures we've all seen and will
continue to see massive improvements in
scalability this is all moving very fast
with various kinds of layer 2 solutions
being built launched and anchored into a
theorem layer one for additional
security scale networks is one exciting
example again lots of use here of off
chain computation using interactive
computation games and zero-knowledge
techniques state channels and layer to
public and private chain architectures
we're seeing tens of thousands of
decentralized transactions per second DT
PS added to a theorem layer to this year
already and very soon we will see
millions and probably before the end of
2020 we will see all of this multiplied
a thousand fold as the theorem phase
zero will be delivered in q1 in phases
one and two will likely arrive together
before the end of the year usability has
also seen much improvement few people
recall how agonizing it was to access
the internet via dial-up on a 9600 or
14-4 baud modem the apps and web pages
were simple back then but it wasn't
uncommon to wait 30 seconds for a page
to load and often you weren't sure if
you were still connected or just loading
in the morning you'd get to your
workstation start your email client
downloading and go for coffee to give it
time to sync with the pop or IMAP server
before you could read and respond to
your email this was 93 94 we see similar
issues with early implementations of the
web 3 technology for web 3 many projects
are exploring the progressive onboarding
technique that enables instant
onboarding of the user to adapt followed
by a gradual handover of responsibility
from the DAP to the user as investment
of attention and
in that dap grows new wallet
architectures are taking the multi
signature tooling pioneered by gnosis
wallet and safe and adding social
recovery pioneered by you port and
social acceptance or rejection of
intended user actions to ensure that
early adopters go don't get nicked by
the still sharp edges of this new
technology in systems of the like ENS
are gaining traction so soon we won't
have to look at long strings of
hexadecimal addresses anymore
just as we rarely look at the four
octets of IP addresses in dot decimal
notation the architecture of the web
doesn't merely represent identity risk
for people and political risk for nation
states it also represents different
kinds of platform risk there's platform
risks to artists and others who find
themselves deep platformed from a system
they rely on for their livelihood
Facebook Twitter in YouTube now have
enormous ability to shape narratives
debate and broad morality and there's
platformers to startups and other
companies who find the rules of a
platform can change from underneath them
as that platform grows and evolves and
finds itself cannibalizing the companies
that it drew in as partners a few years
earlier the incessant drive to grow
revenue once at the top of its adoption
curve yields such anti-competitive
behavior Google Amazon Facebook Linkedin
Apple and Microsoft are all large
platforms that have engaged in dining on
their dependants as a cyber citizen I
love and need Google and Amazon but the
unfair advantages that accrue to Amazon
in its e-commerce activities and to the
AWS cloud are staggering as are those
that are available to Google a new and
insidious kind of platform risk has
emerged more recently just as platforms
like LinkedIn like Facebook LinkedIn and
others have eaten the lunch of some
startups over the years clouds are now
cannibalizing the profits of companies
built around open source projects AWS
and some Asian cloud providers have been
accused for a while of rewriting reusing
and rebranding products without
supplying the underline
supporting the underlying open source
and often eliminating economic benefits
to the for-profit companies that have
commercialized those open source
projects many would argue that this sort
of behavior is perfectly acceptable
under open source licensing others would
argue that there's an implicit social
contract and that companies like Amazon
are not giving back when they capture
value from the open source community
this kind of anti-competitive behavior
is enabled by vertical integration
I believe the web free world will be
largely horizontally layered with
explicit interface promises between
layers or between synergistic components
at each layer is this likely to be a
problem for our space given that our
space is composed of largely open-source
projects I would argue that we have an
opportunity unique to the technology to
construct things differently
applications running on blockchain
networks are likely to be subject to
different economics cyber economics or
crypto economics of course the best
blockchain systems are explicit about
what these costs are and these costs
should be paid by the appropriate actor
in some cases it will be the end user in
some cases it will be the app publisher
perhaps via the gas-station network or
other meta transaction mechanism
blockchain networks will better account
for possible negative externalities and
bring them inside the tent while
benefiting naturally and massively from
positive externalities like network
effects all participants on these
networks will be doing so from a
position of personal or corporate agency
many will be compensated themselves for
the roles they play on these networks as
they in turn compensate other people
orcs or dabs for the value they provide
platform risk will be reduced by
decentralized governance and the ability
to fork open source code bases to launch
competing platforms or even to fork
operating platforms when they cease to
serve their entire constituency we will
all come to understand that Forks are
very healthy and powerful economic tool
eventually the more advanced platforms
will make it easy to fork themselves
copying the over the entire state
or just building stateless systems that
make forking easy to ensure that those
in governance of the system are
incentivized to be and remain good
stewards of the system forks effectively
keep those exiting within the broader
tent enabling the extended community to
define itself in broader and more varied
terms John Gilmore would be a huge fan
of the forking mechanism
I am powerfully focused on maximal
decentralization permissionless the base
trust layer that is aetherium and its
potential to be a global settlement
layer largely devoid of platform risk
for natively digital assets or digitized
real-world assets but I think it is
short-sighted when some some people
believe that all blockchain systems must
be fully permissionless and maximally
decentralized when you were issuing
valuable assets or anchoring into a base
trust layer that layer must be maximally
decentralized and that requires it to be
completely permissionless but adding
some decentralization to use cases that
are enacted among a small set of
counterparties is enormous ly valuable
and this is best done on a private
permission system for now a commodity
trade finance platform for instance
linking billing banks and commodity
traders does not need radical
decentralization and permissionless in
2019 in order to be an order of
magnitude or more better platform for
conducting trade amongst those parties
come 2020 it may make sense to link that
commodity trade finance platform
laterally into a commodities trading
platform and into a payments platform
and into a corporate identity platform
and into an insurance platform etc these
networks can be linked to one or one
another laterally using bridges or using
the Lacroix leti technology which can
enable unintimidating to trustless
atomic swaps or message passing across
network boundaries the quality already
links aetherium and bitcoin trust lessly
and by 2021 it may make sense to anchor
all those platforms down into the
theorem based trust layer for increased
security without sacrificing scalability
and also so that the base layer can
serve as a trustworthy message and
transaction bus between a wide variety
of applications this suggests that the
architecture of the decentralized world
wide web will look like a patchwork of
block chains some possibly private and
permissioned linked to one another and
anchored down into the permissionless
and maximally decentralized based trust
layer using a variety of techniques that
theorem 2.0 is currently the only
candidate to be that base trust layer as
it is the only blockchain project that
is assiduously focused on maximizing
decentralization in all of its
dimensions this Internet of blockchains
architecture rhymes nicely with the
internet with the fact that the Internet
is an internet of networks and finally
our planet will have an automated
objective trust foundation to replace
the subjective trust infrastructure
we've built on for millennia to
continually address scalability concerns
we must practice minimum viable
decentralization as we stand up new
permission to tear networks going
forward we will always have scalability
concerns and there is no need to over
secure every use case we will get used
to designing systems with appropriate
levels of decentralization we should
start to think of layer 2 blockchain
networks as logical constructs because
in time we will want to lift these and
set them back down on more capable
physical architectures we need to start
designing for such upgrades eventually
most of the world's private permission
systems will run on public permission in
permissionless infrastructure just as
corporate in government IT
infrastructures today we run largely on
cloud just because it will be the best
substrate on which to run these systems
it is critical that this base layer be
permissionless and maximum lead
essential about decentralized because
that is where we derive trust and that
trust layer must be global so that it
can build so that we can build
international financial and trade
systems that all countries can
collaborate on what makes a theorem the
current best or only option to be a base
trust layer for the plan
on a recent into the ether podcast
Matteo Leibowitz who might be out there
right now indicated that he felt that
Bitcoin had a defined distribution and
that aetherium had a divine token launch
for ether he outlined what he called the
distribution Quadra lemma his argument
was that regulators have woken up and
any post-2015 protocol that wishes to
achieve widespread adoption has to
succeed with respect to the following
four pillars we're talking about layer 1
protocols here the first pillar is the
token must be issued broadly and
equitably number 2 the community must
remain engaged vibrant and grow large
over time one way to achieve this by it
is by enabling the tokens held by the
community to appreciate in value number
3 the project must bring in sufficient
capital so that it can be delivered
maintained and continuously improved and
finally and this is the new wrinkle the
project must be regulatorily compliant
among all the competitors the etherium
killers to have emerged in the past few
years after Bitcoin end of theorem were
launched none show convincing signs of
meeting all four requirements of the
Quadra lemma the best way to build and
grow a strong community is to seldom a
token and promise that it will
appreciate and then work to make it so
this is the definition of a security
since you are now selling a security
your token won't be issued broadly and
widely in your community won't be robust
there may be novel mechanisms tried over
time but so far no projects have gained
great traction and it is hard to imagine
building the world's trust Foundation
and global settlement layer on a VC coin
project the sec recently gave the eos
project a slap on the wrist for their
token sale but this does not mean a
project structured like eos could have a
successful raise at this point yes EC is
tooled up now and very aware today it
would shut down a sale structured like
the EO sale before it was able to turn
on its first
billboards in Times Square since sorry
yes so instead of the vertical walled
gardens of web 2.0 we will have
horizontal decentralized collaboration
layers at the base we will have
aetherium for trusted transactions and
guaranteed execution of agreements
linked to protocols for decentralized
storage bandwidth heavy compute identity
proof of location and others on top of
that we will have the open decentralized
financial plumbing layer for the
emerging global economy this will
consist of price table tokens borrowing
and lending networks decentralized
exchanges for liquidity tokenized assets
in all forms other financial instruments
like derivatives and synthetics payment
system subscription systems and staking
and validation systems even government
systems will partially lie in this
financial plumbing layer for certain
kinds of networks and tokens much of the
blockchain systems we will build going
forward will be enabled by and enhanced
by an increasingly capable and
sophisticated financial their for
instance the IT industry is becoming
more granular and commoditized trusted
compute heavy compute storage and
bandwidth will all be distributed on
cloud and fog infrastructure we will
negotiate provision and pay for these
services through smart contracts with
tokens in real time providers and users
will need natively digital financial
instruments to hedge their pricing and
other risks the base trust layer enables
the financial layer and upon that
financial plumbing layer the rest of the
emerging global digital economy will be
built it is an amazing time to be active
in the technology space and great to be
a developer at a time when the Nerds are
about to inherit the earth to a far
greater extent than in previous
technological years there will be a bit
of a tug of war over the next few years
web to anti-patterns won't die rapidly
and easily and many web many valuable
web to
struck should be evolved to benefit web
three and of course there will be web to
wolves in webs threes sheep's clothing
to achieve rapid technological evolution
and societal advancement we simply need
more web 3 developers we need the best
and the brightest from the web to
world's to understand what is now
possible under this new paradigm there's
somewhat north of 30 million software
developers globally that number includes
as rough estimates but 600,000
open-source developers 12 million Java
developers 8 million Python developers
20 million apple iOS developers 3
million Microsoft developers 15,000
Linux developers so here's my ask or
rather a challenge to all of us for next
year let's get 1 million of those
developers building with the theorem
technology we can currently estimating
truffle downloads and other metrics that
there are as many as 500,000 developers
engaging with etherium somewhat
regularly in some capacity and probably
200,000 of those or more have full-time
at theorem developer jobs or otherwise
fully engaged at first a million that
theorem devs might sound overly
ambitious but I think that the concerted
effort we can get there in a year or so
we have an incredibly talented range of
people and teams contributing their time
and efforts to improving tools and
resources we've all dedicated decided to
redirect our careers our days nights and
weekends to building this technology
together and we've come all this way in
just a few short years from the start of
the theorem project this is all seemed
inevitable to me though it is
astonishing how fast it is moved but for
all of those looking in and waiting on
us let's get this thing in a higher gear
this is my challenge to all of us 1
million of theorem developers by DEFCON
6 perhaps maybe that's a little too
ambitious but we will give it a shot
over the next days and weeks please
reach out to your developer friends who
are not yet in the
space we are putting together several
projects to support this thrust the
website 1 million devs comm will house
multiple ways to induce introduce your
developer friends to many of the holy
moments that blew your minds when
you learned about the space Kevin a
walkie and the get coin team have put
together a game that will be available
extremely soon to highlight many of
these insights Billy lucky James Cox
karate and Joe Burnett of the rapid team
have put together a quests system to
help your dev friends set out on holy
moment learning Odysseys and there
will be badges kudos and historicist in
a scoring system if you bring in twenty
devs and they start racking up kudos and
points you'll find yourself rising on
the leaderboard as they will all
represent members of your team by the
way staking out a position in the top
ten on that leaderboard will make you
super hireable in a developer relations
dev rel role in our ecosystem consensus
and others find people with those skills
to be enormous ly valuable the 1 million
dev comm site will reveal much more fun
mechanism over the next few days and we
will grow it over time please check it
out and send your friends thank you
[Applause]
you