Latest / The Paul Barron Crypto Show / More Powerful Ethereum Coming This Summer🚨Ethereum Economic Zone INTERVIEW
Transcript
- 0:00Speaker 1: Today we want to do a little bit more of
- 0:01Speaker 1: a deep dive. You guys probably caught this last week
- 0:04Speaker 1: when we did a full video on it. It was
- 0:06Speaker 1: really a full understanding of what was going on with ETHCC.
- 0:09Speaker 1: It was massive updates happening over there. Today we're going
- 0:12Speaker 1: to bring in a couple of people that will dive
- 0:14Speaker 1: in on that, and of course that is Jordy Baileina
- 0:17Speaker 1: of ZIK and also Frederic Ernst, who is the co
- 0:21Speaker 1: founder over at Nosis. How are you guys, good?
- 0:23Speaker 2: Good, Thank you for having us on.
- 0:25Speaker 1: Yeah, so great to see you. We did the recap
- 0:27Speaker 1: video a lot of big announcements. One of the ones
- 0:30Speaker 1: that we saw that was probably the most interesting was
- 0:33Speaker 1: EEZ and that, of course is what you guys have
- 0:36Speaker 1: been working on. Before we get too far into it,
- 0:40Speaker 1: I want to ask you guys, well, first let's explain
- 0:42Speaker 1: that what that is to our audience, and then I
- 0:45Speaker 1: have very specific questions. So Frederic, you want to kind
- 0:48Speaker 1: of give us a rundown.
- 0:49Speaker 2: Yeah, absolutely, So. Ethereum became the thing that it is
- 0:53Speaker 2: because different applications on top of it could compose with
- 0:59Speaker 2: one another, so kind of you could build a stable
- 1:01Speaker 2: coin or a lending protocol or on oracle, or money
- 1:06Speaker 2: market or a pdiction market, and kind of you could
- 1:10Speaker 2: these could all kind of tie into each other, so
- 1:13Speaker 2: kind of it would kind of give you an infinitely
- 1:15Speaker 2: extensible financial system. And that was where kind of the
- 1:20Speaker 2: magic of ethereum kind of emerged. That broke when we
- 1:26Speaker 2: tried to scale via L hues. I'm sure you guys remember,
- 1:30Speaker 2: transaction fees spiked at some point. You had to pay
- 1:33Speaker 2: fifty dollars for an average transaction, and in response to that,
- 1:37Speaker 2: we kind of got L hues and we offloaded most
- 1:41Speaker 2: of the transactions onto L toop and in terms of
- 1:46Speaker 2: transaction pricing, that helped tremendously, So transaction prices have come
- 1:50Speaker 2: down a lot again, but that came at the cost
- 1:54Speaker 2: of composibility. So kind of now, instead of being able
- 1:58Speaker 2: to kind of plug all of these parts together, if
- 2:01Speaker 2: you live on different parts of the network, you can
- 2:04Speaker 2: no longer natively compose. And the Easy fixes that. It
- 2:07Speaker 2: kind of ties the different L twos back together again,
- 2:11Speaker 2: so that regardless of where you live on which the
- 2:15Speaker 2: network you live within, the Easy you can compose with
- 2:19Speaker 2: everything else that happens in the theor economic.
- 2:22Speaker 1: Zone within that Because to me, it seemed like it
- 2:25Speaker 1: was just this just kills bridges in essence, which is
- 2:28Speaker 1: one of the biggest risk areas that we have within
- 2:31Speaker 1: crypto in general. Why not and why didn't he do
- 2:34Speaker 1: this earlier? I mean, this has been a problem for
- 2:36Speaker 1: a long time.
- 2:37Speaker 3: But I hear the main technology that enables this is
- 2:41Speaker 3: the real time zero knowledge proof technology that allows us
- 2:46Speaker 3: to prove any computation and verify it in or chain
- 2:51Speaker 3: in a very few milliseconds, no matter how big is
- 2:56Speaker 3: the computation that you are doing or only is possible
- 2:59Speaker 3: to proof and the thium block in.
- 3:01Speaker 4: Real time things are increasing.
- 3:03Speaker 3: The important part is that this technology skills ittalyzes very well.
- 3:07Speaker 3: So it just skills very well. This is the main
- 3:10Speaker 3: technology that makes this possible today.
- 3:13Speaker 1: Well, and I'm looking here just to show the ZKVM
- 3:16Speaker 1: proving time just to see how just to show an
- 3:19Speaker 1: example of where we were and where this takes it
- 3:22Speaker 1: with this technology. And remember too that with institutions coming
- 3:26Speaker 1: on board, bridging has been one of the I think
- 3:30Speaker 1: one of the challenges that institutions would maybe question, So
- 3:33Speaker 1: this obviously addresses that. Within that and you look at
- 3:37Speaker 1: the ethereum economic zone partners. These are the launch members
- 3:41Speaker 1: right now, So you've got AVE in here and a
- 3:44Speaker 1: handful of others that I think are interesting when you
- 3:47Speaker 1: look at the most exciting day one partners, Who's going
- 3:51Speaker 1: to benefit the most here the users.
- 3:53Speaker 2: So kind of the users are going to benefit the
- 3:55Speaker 2: most because will no longer fear like a collection of
- 4:00Speaker 2: mini theorems. It will feel like one big etherorem again.
- 4:04Speaker 2: But kind of there's kind of the invisible part that
- 4:07Speaker 2: makes it happen behind the scenes, and those are the
- 4:09Speaker 2: block builders, So kind of in this alliance we have Titan,
- 4:13Speaker 2: Beaver and Flashboards who together build in excess of ninety
- 4:16Speaker 2: percent of all blocks. Where users will feel it most
- 4:21Speaker 2: is with front end applications such as Save, cowswap, AVE
- 4:26Speaker 2: and so one, because they will be able to leverage
- 4:30Speaker 2: everything that is in the easy from day one. So
- 4:32Speaker 2: kind of if you want to take out an AVE
- 4:35Speaker 2: alone against your AVE collateral, for instance, you will no
- 4:39Speaker 2: longer have to do this network by network, but AVE
- 4:42Speaker 2: has an intrinsic view of all your assets across different networks,
- 4:46Speaker 2: and you can borrow against this global collateral balance always save.
- 4:52Speaker 2: If you change a configuration on one network, you can
- 4:57Speaker 2: make the others follow. So kind of if you rotate
- 4:59Speaker 2: key is, you can rotate them on our networks together
- 5:03Speaker 2: always cow kind of you will have the liquidity of
- 5:06Speaker 2: all networks natively together. So kind of if you, for instance,
- 5:11Speaker 2: have a trade that you want to execute on noses
- 5:14Speaker 2: chain but there's not enough liquidity or the kind of
- 5:19Speaker 2: you want to be able to tie into liquidity from maynet,
- 5:22Speaker 2: you can now do this atomically behind the scenes, and
- 5:25Speaker 2: the user. The only thing that the user is going
- 5:28Speaker 2: to notice is that they get a better price, right,
- 5:31Speaker 2: and that they that it happens instantly. That kind of
- 5:33Speaker 2: you you can no longer really be kind of out
- 5:37Speaker 2: of liquidity on one network.
- 5:38Speaker 1: This is a big deal because it does create i think,
- 5:42Speaker 1: a more approachable process on ethereum, especially when you're looking
- 5:45Speaker 1: at swaps, which has been a big challenge I think
- 5:48Speaker 1: for the industry in terms of bridges. What is the
- 5:51Speaker 1: user interface, Jorty, Is there anything I'm going to notice
- 5:54Speaker 1: when I'm utilizing this new technology.
- 5:56Speaker 4: The at least is more controlt Yeah.
- 5:58Speaker 3: What makes everything at the day and the usability of
- 6:03Speaker 3: that should be especially for developers, for applications, for builders,
- 6:08Speaker 3: I mean, they should be able to compose to connect
- 6:11Speaker 3: between different roll ups exactly the same way and using
- 6:14Speaker 3: exactly the same tools that are currently using what they
- 6:17Speaker 3: are connecting to Ethereum contracts in the same chain. Its
- 6:22Speaker 3: ability should be very strikeforward for the users or in
- 6:27Speaker 3: this case, for the for the developers that are building ups.
- 6:31Speaker 2: So yeah, well, I think kind of there's no interface
- 6:36Speaker 2: per se, right, kind of like all of this is
- 6:38Speaker 2: fully abstracted away. So kind of when you said, how
- 6:41Speaker 2: is the user going to go to the interface, They're
- 6:43Speaker 2: not going to go to the Internet. They won't see it.
- 6:46Speaker 2: It kind of magically happens in the background.
- 6:48Speaker 1: Wow, fantastic.
- 6:49Speaker 2: I think the entire ecosystem is going to benefit massively
- 6:53Speaker 2: because a lot of silos were created when age who
- 6:59Speaker 2: is happened, right, So I don't I don't think it's
- 7:03Speaker 2: any one app or the users of any one app
- 7:07Speaker 2: that will benefit most. I think it is the usefulness
- 7:12Speaker 2: of the composite system, and it goes way beyond financial
- 7:16Speaker 2: use cases. So for instance, you don't it's not restricted
- 7:20Speaker 2: to EVM chain, so it's not it's just it's call based.
- 7:24Speaker 2: You can connect it to any other network as well,
- 7:29Speaker 2: So for instance, you can have privacy preserving chains where
- 7:33Speaker 2: you can have your identity and instead of instead of
- 7:38Speaker 2: exporting your identity your kind of recredentialing on another network,
- 7:43Speaker 2: you just export the proof that you can access something
- 7:47Speaker 2: or you can you can even use it for consortium
- 7:53Speaker 2: chains or previdiums, so kind of doesn't need to be
- 7:55Speaker 2: a public network. So kind of as a banking consortium,
- 7:58Speaker 2: you can spin up a private chain with validators that
- 8:01Speaker 2: are the consortium members, and as long as you kind
- 8:05Speaker 2: of you're willing to prove your state, you can compose
- 8:08Speaker 2: with everything else on ethereum. And I think that is
- 8:11Speaker 2: a real game changer way beyond kind of the simple
- 8:14Speaker 2: bridging use case that I think kind of like bridges
- 8:18Speaker 2: are a nuisance, kind of like no one needs bridges,
- 8:21Speaker 2: no one wants bridges. But I think the level of
- 8:25Speaker 2: autonomy that consoria chains kind of want is one hundred
- 8:31Speaker 2: percent commensurate with what the easy extends to in terms
- 8:37Speaker 2: of chains that can connect to it. I could even
- 8:40Speaker 2: see nation states kind of deploying their own nation state
- 8:44Speaker 2: chains where kind of, for instance, they could issue your
- 8:48Speaker 2: identity on chain. So kind of I'm German, as you
- 8:51Speaker 2: can clearly clearly hear so kind of Germany could issue
- 8:54Speaker 2: me a blockchain identity that I could use to kind
- 8:57Speaker 2: of as a way of KYC for certain products that
- 9:02Speaker 2: I might not otherwise be allowed to access, and kind
- 9:07Speaker 2: of that would make kind of the likes of sumsup
- 9:10Speaker 2: and onto and so superflus. Or you could issue T
- 9:14Speaker 2: bills or cbdc's that can kind of natively compose with
- 9:18Speaker 2: everything that is on etherorem without actually having to folk
- 9:21Speaker 2: forego the level of autonomy that kind of you want
- 9:25Speaker 2: to retain as a nation state.
- 9:26Speaker 1: This is going to be a very significant advancement I
- 9:29Speaker 1: think within the eth ecosystem. With that being the and
- 9:32Speaker 1: I think it's important to know this essentially is transacting
- 9:36Speaker 1: in eth gas fees, right, so you're not doing this
- 9:38Speaker 1: in any other chain. What about uniswap versus cal swap.
- 9:42Speaker 1: How does this work now? Would unitchain no longer need
- 9:45Speaker 1: to be around.
- 9:46Speaker 2: So unichain could stay stay around and uniswap could be
- 9:52Speaker 2: on it. But with the easy you can now have
- 9:57Speaker 2: transactions that come from MAInet touch you need chain and
- 10:01Speaker 2: go back to maintet or another chain within the single transaction.
- 10:05Speaker 2: So it does actually it actually makes the usability for
- 10:09Speaker 2: adapt chains a lot better than it currently is.
- 10:12Speaker 1: Okay, all right, very cool, Jordi. What about non EVM chains.
- 10:16Speaker 3: Well, the nice thing of the system is that the
- 10:19Speaker 3: roll ups, they don't necessarily needs to be EVM. You
- 10:23Speaker 3: define let's call a state transition function, which is you
- 10:26Speaker 3: define the rules of your chain the way you want me.
- 10:29Speaker 3: You define the rules and then you just follow the rules.
- 10:32Speaker 3: But this can be defined in any way. You can
- 10:36Speaker 3: be a VM, but it can be a wazzerm, or
- 10:38Speaker 3: it can be a private chain, or it can be
- 10:39Speaker 3: a specific chain in adapt chain that do something very specific,
- 10:46Speaker 3: that only accepts certain types of calls, for example, or
- 10:50Speaker 3: that do other calls to other chain certain ways.
- 10:52Speaker 4: So this is very flexible. This is not This.
- 10:55Speaker 3: Allows to scale ethereum, but not in the number of transactions,
- 10:59Speaker 3: but in the foodstionality. This allows you to extend the
- 11:03Speaker 3: terium in different ways and still be in the same
- 11:09Speaker 3: change so we still receive a same calls. I mean,
- 11:12Speaker 3: it's still connect to one each other. This is one
- 11:14Speaker 3: of the cool things of this proposal.
- 11:15Speaker 1: We're getting in pretty deep on how this works on
- 11:18Speaker 1: the back end. I think one of the questions that
- 11:21Speaker 1: a lot of people that follow our show would probably
- 11:23Speaker 1: ask can this work with Solana in that particular case,
- 11:27Speaker 1: the way that it's set up right now?
- 11:29Speaker 3: Of course, I mean Solana is running for now and
- 11:32Speaker 3: probably would require some some changes somehow, but definitively, definitively,
- 11:41Speaker 3: it could be maybe Solana should be a kind of
- 11:43Speaker 3: a roll up of Ethereum and then it would perfectly
- 11:48Speaker 3: perfectly work, or maybe there is some proxy or something
- 11:52Speaker 3: that can connect. But this is very much for the
- 11:55Speaker 3: Theeum ego system, and then this is more contact running
- 11:57Speaker 3: in ethereum, and Ethereum is the chain that actually gives
- 12:01Speaker 3: the security of the system.
- 12:05Speaker 2: Basically, any chain can connect to it as long as
- 12:08Speaker 2: it can prove its state in the in the given timeframe.
- 12:12Speaker 2: But it's important to make explicit that this requires kind
- 12:17Speaker 2: of treating Ethereum as your master chain. So kind of
- 12:21Speaker 2: if Ethereum for some reason reorcs and you have a
- 12:25Speaker 2: transaction with Ethereum that kind of that touches that Ethereum
- 12:29Speaker 2: state as the chain that wants to compose with Ethereum,
- 12:34Speaker 2: you need to reorc to So kind of you need
- 12:36Speaker 2: to give up a certain level of autonomy. You need
- 12:39Speaker 2: to say, okay, ify Ethereum reorcs. We will follow that
- 12:43Speaker 2: reorc and if Solana is willing to do that, yes,
- 12:47Speaker 2: Solana can one hundred percent compose with the etherorem ecronomic zone.
- 12:51Speaker 1: There you go, guys, all right, So why would a
- 12:54Speaker 1: chain not choose easy right now? I mean, what are
- 12:57Speaker 1: the drawbacks? What would be anything they would look at
- 13:00Speaker 1: as saying a disadvantage?
- 13:02Speaker 2: Yeah, so kind of the fact that you have to
- 13:05Speaker 2: be willing to reork. If etherorem yorks, that is definitely
- 13:09Speaker 2: a drawback, not even in terms. I mean, there's not
- 13:14Speaker 2: a lot of reorks that currently happen on Ethereum. There's
- 13:18Speaker 2: around ten per day that are one block deep. There
- 13:22Speaker 2: haven't been multi block reorks for a long time. But
- 13:26Speaker 2: it adds a significant amount of complexity. So if Etherum
- 13:29Speaker 2: were to go to single block to single slot finality,
- 13:33Speaker 2: that would help a lot with getting l chools to integrate.
- 13:39Speaker 2: And then there's also the question of effective finality. So
- 13:44Speaker 2: kind of currently l toos on Ethereum have block times
- 13:49Speaker 2: that are much faster than Etherum for the most part.
- 13:52Speaker 2: So for instance, Base has one hundred or two hundred
- 13:55Speaker 2: millisecond block times and Etherum has twelve second block times,
- 13:58Speaker 2: so you can actually have fast effective finality than Ethereum
- 14:04Speaker 2: by giving up some economic guarantees. But by and large
- 14:08Speaker 2: you are bounded by Etheroum finality, so kind of you
- 14:12Speaker 2: can sidestep it, you can build blocks in between, but
- 14:15Speaker 2: it adds complexity on the engineering front.
- 14:18Speaker 4: Yeah.
- 14:19Speaker 1: Has Polygon reached out to you guys about this?
- 14:22Speaker 4: No, No, not yet. I mean we come from Polygon.
- 14:25Speaker 3: I know, we are using a lot of the technology
- 14:27Speaker 3: that we start building in Polygon. We actually we just
- 14:31Speaker 3: spin out and we left Polygon like a year ago.
- 14:35Speaker 3: We are just taking the technology that we're starting there
- 14:37Speaker 3: and putting out the service to Ethereum to build this
- 14:42Speaker 3: this this protocol.
- 14:44Speaker 1: Okay, so Polygon I think it would be a big deal.
- 14:47Speaker 1: Why not look at maybe something like just onboarding poly market.
- 14:52Speaker 4: Yeah.
- 14:52Speaker 3: Probably, I mean this is a very new thing and
- 14:55Speaker 3: probably I'm sure that they will be they will look
- 14:58Speaker 3: very much on that, and I'm sure were that at
- 15:01Speaker 3: some point they will they will come.
- 15:04Speaker 4: I mean it's just very early.
- 15:05Speaker 1: Let's move on to another question we had, and this
- 15:07Speaker 1: was in reference to private bank Canton specifically, what about
- 15:12Speaker 1: that could could that participate in this?
- 15:15Speaker 4: You know?
- 15:15Speaker 1: Easy?
- 15:16Speaker 4: Yeah, definitively. I mean this is the interesting thing.
- 15:19Speaker 3: I mean this, this or these private chains, they can
- 15:23Speaker 3: interact directly with.
- 15:26Speaker 4: Ethereum, following their own.
- 15:28Speaker 3: Rules, of course, following the rules of the different chains,
- 15:32Speaker 3: but they can they can connect, and they can connect
- 15:34Speaker 3: in a native way, in an Ethereum native.
- 15:37Speaker 4: Way, so they can restive course, they can make all
- 15:39Speaker 4: swater Chaine.
- 15:40Speaker 3: So that's I think these are ones of the ones
- 15:44Speaker 3: that will benefit a lot from this compossibility.
- 15:46Speaker 1: Frederick, what about the timeline here? How long do you
- 15:49Speaker 1: think we'll start seeing real use cases launching on this.
- 15:53Speaker 2: There's going to be a public definite very soon, within
- 15:56Speaker 2: a matter of weeks, and Maynard is going to be
- 15:59Speaker 2: out there, so it's it's happening soon. And because it
- 16:03Speaker 2: doesn't require any protocol changes to a one, we are
- 16:07Speaker 2: also pretty free in building this.
- 16:10Speaker 5: They are no constraints as a developer Jordy Howell, Glomsterdam
- 16:14Speaker 5: or go to in terms of next upgrades for the
- 16:16Speaker 5: theoryum affect you this particular platform in the future.
- 16:20Speaker 3: Well, actually not very much, except that, of course, if
- 16:24Speaker 3: you have more of that availability then you will get
- 16:26Speaker 3: more you will get more block space, so the layers,
- 16:31Speaker 3: but the idea is that all these it does not
- 16:35Speaker 3: require any does not require any hardwork.
- 16:38Speaker 4: I mean, all these can be built today.
- 16:43Speaker 3: You can't recall, so there is no dependency on ethereum
- 16:46Speaker 3: to build easy. I expect that in the future maybe
- 16:50Speaker 3: Ethereum will add some some forks, some modifications that may
- 16:55Speaker 3: help here, but definitely this is not required to starting
- 17:00Speaker 3: to start connecting the chains today.
- 17:03Speaker 1: Yeah, there were some breaking news out there on cow
- 17:06Speaker 1: swap and they were experiencing an issue with the front end.
- 17:12Speaker 1: They're investigating it, but right now they're saying not to
- 17:15Speaker 1: use it. But when you look at what's happening there,
- 17:18Speaker 1: how can we end these kinds of exploits? What would
- 17:21Speaker 1: be the solution here either one.
- 17:24Speaker 2: To be that's yeah, So kind of it's all very fresh.
- 17:27Speaker 2: It seems like there was the front end was compromised,
- 17:31Speaker 2: so we're still investigating the situation. I think the attack
- 17:36Speaker 2: surface has gotten a lot larger with AI, so kind
- 17:40Speaker 2: of it just becomes much easier to kind of surf
- 17:44Speaker 2: as potential vulnerabilities. And yeah, as an ecosystem, this is
- 17:48Speaker 2: something to be reckoned with. Obviously, having this permissionless settlement
- 17:54Speaker 2: is it's a double edged suit. And I think it's
- 17:58Speaker 2: something we have to acknowledge, and I think it's something
- 18:00Speaker 2: we have to mitigate as an ecosystem well, and.
- 18:03Speaker 1: For many of these platforms, they have to be ready for,
- 18:06Speaker 1: you know, this kind of advancement, because this obviously is
- 18:08Speaker 1: going to create a new vector that I think a
- 18:10Speaker 1: lot of people need to be aware of.
- 18:11Speaker 4: For sure.
- 18:12Speaker 3: The problem in a lot of these times is the
- 18:14Speaker 3: centralization part user interface. I mean this the UI a
- 18:19Speaker 3: lot of times is running in a centralized server and
- 18:23Speaker 3: it can be attacked relatively easy. So here the importance
- 18:27Speaker 3: of making the things this centralize.
- 18:31Speaker 4: This is the idea of the smart contracts.
- 18:33Speaker 3: Of course, we have seen some attacks to a smart contract,
- 18:37Speaker 3: but they were just that there were some bags in
- 18:40Speaker 3: the smart constructs. Once you get a smart contract that's correct,
- 18:44Speaker 3: and you can maybe formally verify that's correct, or have
- 18:48Speaker 3: some warranties that's correct, then the system is very vulnderable.
- 18:52Speaker 4: It's very difficult to attack.
- 18:53Speaker 3: I mean all the attacks we see some good smart
- 18:56Speaker 3: contracts that we know that are working well. Most of
- 18:59Speaker 3: the attacks they don't come from the decentralized party. They
- 19:02Speaker 3: used to come from the center particles. So it's easier
- 19:05Speaker 3: to attack a server running in a lust exactly.
- 19:10Speaker 1: Yeah, yeah, well, and I think the fact that we
- 19:12Speaker 1: start to minimize, you know, where attacks could happen, which
- 19:16Speaker 1: has been mostly at the bridge level that we've seen
- 19:19Speaker 1: over the years in crypto, this of course starts to
- 19:22Speaker 1: solve that. Jordi and Fredrik, it has been great having
- 19:25Speaker 1: you on the show. We're going to continue to monitor
- 19:28Speaker 1: this situation obviously as you guys get more advanced and
- 19:31Speaker 1: we see more stuff coming out of ethereum as in
- 19:34Speaker 1: terms of advancement. So thanks for coming in today. I
- 19:37Speaker 1: appreciate it.
- 19:37Speaker 2: Thank you for having much.
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