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let's talk about the future of etherium

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[Music]

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hi there it's Jackson thanks for

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watching and welcome back to another

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episode I've been getting a few requests

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for this so today I'm gonna talk about

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aetherium and its future what does the

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roadmap look like for the next one two

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three or five years but before we dive

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into that if you do like these videos

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make sure you hit that subscribe button

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below and if you want to support their

0:00:25.170,0:00:27.750
creation go along to patreon.com/scishow

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I'm Jackson where you can become a

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patron and get access to all sorts of

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exclusive perks like early access to

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these videos but the topic of the day is

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aetherium so let's dive right in 2017 as

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most people know was a massive year for

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aetherium it was the year that really

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put a theorem on the map not only

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because of its exponentially increasing

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price but also just usage through smart

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contracts being leveraged for the ICO

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but it's really only early days for

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aetherium icos and kind of digital

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assets still remain it's one primary use

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case right now and we haven't seen

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mainstream adoption just yet but thanks

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to the prevalence of thousands and

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thousands of these ICO smart contracts

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and tokens that are operating on top of

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the etherium main net the etherium

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network is now processing over half a

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million transactions per day for

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comparison's sake if you look at

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something like Bitcoin it's currently

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only processing around 50,000

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transactions per day on its network so

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that's pretty crazy if you think about

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it a theorem is powering around 10 times

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the amount of transactions of the

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Bitcoin network it's pretty busy but as

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a theory I'm started to grow it wasn't

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without its growing pains people started

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to see some slowdowns in the network

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congestion and increasing gas costs

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making it cost upwards of $2 just to

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send a token to somebody in parallel to

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this concerns are being raised about its

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use of proof-of-work as a mining

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algorithm and how wasteful that is in

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terms of electricity as we face climate

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change and lastly the security of the

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whole protocol was just thrown into

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question with a multitude of smart

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contract hacks occurring resulting in

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the loss of hundreds of millions of

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dollars so a theorem has a long way to

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go but they do have a roadmap to address

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some of these concerns and that's what

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I'm gonna cover today if there is

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interesting in comparison to something

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like Bitcoin core in that the etherium

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team aren't shy about making huge

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changes to the underlying protocol if it

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means scalability or the addition of

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much-needed features as such in the past

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new releases of a theorem have actually

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been hard folks of the entire network

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there

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two upcoming releases that will follow

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the same kind of pattern the first being

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called Constantinople and the second

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being called serenity and some of the

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features or changes I'll be talking

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today will work their way into those

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releases but we don't have a lot of

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clarity yeah that's still to be seen so

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the first thing that a lot of people are

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talking about when it comes to the

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etherium roadmap is something called

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Casper as I alluded to earlier aetherium

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relies on proof-of-work for consensus

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this is exactly the same as Bitcoin in

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that you have a bunch of people with a

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lot of computing power pointing that

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computing power at the network making it

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costly if they wanted to try and be a

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bad actor but the etherium team

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including vitalic the creator himself is

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very aware of how wasteful proof of work

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is proof of work burns a lot of

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electricity because it's this constant

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arms race to get more electricity and

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more hardware trying to mine the stuff

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and start from the very beginning

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vitalic and the team were very clear

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that at some point in the future a

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theorem would need to migrate to a proof

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of stake based system now I recommend

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you go back and watch my video about

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proof of work versus proof of stake as I

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said in that video proof of stake really

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hasn't been nailed in a way that doesn't

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introduce some severe points of

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centralization and sort of a certain

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degree that's what drove the initial use

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of proof of work in aetherium as the

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proof of stake just wasn't there yet

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Casper is simply the name of aetherium

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--za proach to solving the proof of

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stake problem so there's actually two

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types of Casper implementation that have

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been outlined the first is called FFG or

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friendly finality gadget and the second

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is called cbc or correct by construction

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the first being proposed by vitalic

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himself and the second by a researcher

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called flat Zamfir by telex proposal for

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Casper which is FFG is essentially a

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proof-of-work proof of stake hybrid

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solution so it's not a purely proof of

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stake play and this is kind of the first

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stage of Casper and that it's meant to

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wean people away from proof of work

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mining it's acronym stands for friendly

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finality gadget because while there's

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still proof of work mining going on for

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every block every 50 blocks as a proof

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of stake of voting quorum that basically

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writes in a check point to history so

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FFG still has just regular proof of work

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but every 50 blocks there's a proof of

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stake voting mechanism and when they

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write this check point they're basically

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voting on something which is finality is

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something that is a historical

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representation of history that can't be

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changed this kind of hybrid middle

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ground that we'll have for a little

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while in aetherium is already running on

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a test net and I anticipate that we

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might actually see it coming on the

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Net later in 2018 is part of the

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Constantinople for I believe

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Constantinople is scheduled for

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somewhere around summer in the US or

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maybe a little bit later if FFG just

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isn't ready by then and we don't see it

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in Constantinople it'll likely get

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pushed out to the Serenity fork which we

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don't currently really have a timeline

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on I'd imagine it's very late 2018 if

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not early 2019 but again FFG is just

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that initial phase to try and win people

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and move people away from proof-of-work

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mining as a reliance for consensus ii

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and full approach being researched is c

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bc or correct by construction this is

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still fairly deep in the research stage

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and it's far from really being

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implemented in a workable way it has a

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long way to go because c bc isn't just

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simply layering on proof of stake it

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really kind of rethinks the whole way

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the consensus protocol operates as such

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I don't think we'll see it in 2018

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probably 2019 if that there is a chance

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that if FFG gets rolled out successfully

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they could tweak the parameters of that

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and just keep iterating on the FFG model

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until the CBC approach is really nailed

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because CBC essentially changes the

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whole way consensus works in the

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protocol it's not a change that they

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want to implement lightly and so I don't

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think we're just gonna see it rolled out

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on a whim or quickly Casper's

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implementation of proof of stake is just

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like other proof of state consensus

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protocols in that it does require

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two-thirds of the validators to agree to

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come to consensus to avoid what's being

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dubbed a 33 percent attack though Kasper

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introduces essentially a deposit that

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people that are staking have to put down

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and if they act badly then they lose

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that deposit entirely because of this is

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a pretty strong financial disincentive

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for anybody to become a bad actor

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because of the security deposit being

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required in order to mitigate that

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attack I do anticipate that it'll cost

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quite a lot to be a proof of stake

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validator on an FFG system early on

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we're talking probably hundreds if not a

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thousand aetherium just to become a

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stake I totally understand that because

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the incentives need to be aligned it

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needs to be really expensive to try and

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attack the network but it's gonna be

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really interesting to see how many

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people actually use proof of stake and

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want to become a validator in addition

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to laying down that money proof mistake

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validators always have to be connected

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to the network as well so it'll be

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interesting just to see the adoption of

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that it's really important to note that

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Casper and proof of stake isn't being

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positioned as a scaling initiative it's

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really just a promise they've made since

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the very beginning and something they've

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been saying they wanted to do to get rid

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of wasteful proof-of-work mining there

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are some implications in the way that it

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can make scaling easier in the future

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because you're not relying on miners

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which can often become centralized but I

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feel like this is common misconception

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that Casper

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somehow gonna equal magic aetherium

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scaling and that's simply not the case

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so just wrapping up Casper and proof of

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stake keep an eye out for the hybrid

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implementation in mid to late 2018 and

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the full implementation CBC in my

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opinion will probably come in 2019 if

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not later

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and speaking of scalability let's move

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on and dive into that I've talked about

0:06:54.620,0:06:56.300
this a fair bit on this channel but

0:06:56.300,0:06:58.129
ultimately there is no real simple

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silver bullet solution to scaling

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historically when people have tried to

0:07:01.159,0:07:03.169
scale these decentralized solutions

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they've always introduced some point of

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centralization as a compromise so you

0:07:06.919,0:07:08.449
can look at something like super or

0:07:08.449,0:07:10.610
masternodes or delegated proof of stake

0:07:10.610,0:07:12.199
it's all historically resulted in

0:07:12.199,0:07:13.400
delegating or giving the responsibility

0:07:13.400,0:07:15.529
and voting power back to a smaller group

0:07:15.529,0:07:17.870
of people so it can scale more so that's

0:07:17.870,0:07:19.069
been a big point of contention and a

0:07:19.069,0:07:20.629
hard problem to solve for everybody in

0:07:20.629,0:07:22.219
this space is how do you scale this

0:07:22.219,0:07:23.990
stuff without is making it centralised

0:07:23.990,0:07:25.310
again and some people will say there's a

0:07:25.310,0:07:26.719
threshold where there's acceptable

0:07:26.719,0:07:28.219
centralization like something like

0:07:28.219,0:07:30.020
delegated proof of stake but other than

0:07:30.020,0:07:31.159
I think this is the way that aetherium

0:07:31.159,0:07:33.139
and vitalic think that no we don't want

0:07:33.139,0:07:34.490
to have trusted individuals or entities

0:07:34.490,0:07:36.169
out there we want to maintain a

0:07:36.169,0:07:38.000
decentralized network but try and

0:07:38.000,0:07:39.169
achieve scaling through smart

0:07:39.169,0:07:40.879
technologies and new solutions more

0:07:40.879,0:07:41.900
recently people have moved to a

0:07:41.900,0:07:43.669
narrative where second layer solutions

0:07:43.669,0:07:44.930
are gonna be the thing that helps us

0:07:44.930,0:07:46.699
scale these second layer protocols and

0:07:46.699,0:07:48.440
things like plasma the state channels

0:07:48.440,0:07:49.729
which I'll have to do a video on in the

0:07:49.729,0:07:51.169
future it's been asked for a lot or

0:07:51.169,0:07:52.400
something like the Lightning Network for

0:07:52.400,0:07:53.870
payment channels or Braeden which does

0:07:53.870,0:07:55.339
that on aetherium these are great

0:07:55.339,0:07:56.990
innovative solutions I think there's two

0:07:56.990,0:07:58.879
problems with them first I think the use

0:07:58.879,0:08:00.740
cases are limited because there's a

0:08:00.740,0:08:02.270
certain type of payment relationship

0:08:02.270,0:08:04.009
that has to exist in these second layer

0:08:04.009,0:08:05.900
protocols but outside of this all of

0:08:05.900,0:08:07.669
these second layer protocols still rely

0:08:07.669,0:08:09.740
on the main chain for finality so if you

0:08:09.740,0:08:11.060
want to close out a payment channel and

0:08:11.060,0:08:12.680
move your Bitcoin to someone else in

0:08:12.680,0:08:14.689
Bitcoin you still have to do that on the

0:08:14.689,0:08:16.610
main chain you're reliant on that main

0:08:16.610,0:08:19.009
chain and its scalability and its costs

0:08:19.009,0:08:20.120
the good news with second layer

0:08:20.120,0:08:22.039
solutions like plasma and Radin and all

0:08:22.039,0:08:23.300
of these technologies is that they

0:08:23.300,0:08:24.800
aren't really pegged to the etherium

0:08:24.800,0:08:26.569
roadmap so they can release at their own

0:08:26.569,0:08:28.009
leisure there's a lot of work being done

0:08:28.009,0:08:29.960
on things like plasma I don't think

0:08:29.960,0:08:31.069
we'll see more than an alpha

0:08:31.069,0:08:32.779
implementation of that in 2018 because

0:08:32.779,0:08:34.729
it's such a new cutting-edge technology

0:08:34.729,0:08:35.990
we'll probably see something that's

0:08:35.990,0:08:38.149
actually working on main net sometime in

0:08:38.149,0:08:40.159
2019 just be clear I'm sure that people

0:08:40.159,0:08:41.779
experiment with stuff on main net in

0:08:41.779,0:08:43.399
2018 but I don't think it'll be

0:08:43.399,0:08:45.260
production-ready or easily accessible to

0:08:45.260,0:08:47.420
non developer users but again that

0:08:47.420,0:08:48.529
doesn't get at the root of the problem

0:08:48.529,0:08:50.470
how do we solve scaling on the mange

0:08:50.470,0:08:52.450
and something called sharding is vital

0:08:52.450,0:08:54.310
excurrent proposal for how we do that

0:08:54.310,0:08:55.750
essentially what sharding does is it

0:08:55.750,0:08:57.280
breaks the network into hundreds if not

0:08:57.280,0:08:59.110
thousands of mini block chains and

0:08:59.110,0:09:00.580
they're all independent but the cool

0:09:00.580,0:09:01.840
thing about these block chains is that

0:09:01.840,0:09:03.670
they inherit the same security model and

0:09:03.670,0:09:05.140
consensus so you're not having to worry

0:09:05.140,0:09:06.790
about independent consensus on every

0:09:06.790,0:09:08.620
single mini block chain these sub block

0:09:08.620,0:09:09.970
chains can scale better because they

0:09:09.970,0:09:11.950
exist for a specific purpose you're not

0:09:11.950,0:09:13.390
trying to do thousands and thousands of

0:09:13.390,0:09:15.280
different things on the one main chain

0:09:15.280,0:09:16.330
like we're currently doing with

0:09:16.330,0:09:18.280
aetherium smart contracts other people

0:09:18.280,0:09:19.570
have already thought about this kind of

0:09:19.570,0:09:21.310
mini blockchain proposal and essentially

0:09:21.310,0:09:22.720
having a network of these block chains

0:09:22.720,0:09:24.640
or participating in the same consensus

0:09:24.640,0:09:25.780
i've talked about some of these before

0:09:25.780,0:09:27.670
in my cross chain protocols video which

0:09:27.670,0:09:29.290
i recommend you go and watch but some

0:09:29.290,0:09:31.030
examples are polka dot or the cosmos

0:09:31.030,0:09:32.710
network if italic wants to implement

0:09:32.710,0:09:34.000
this natively in aetherium and i

0:09:34.000,0:09:35.200
recommend you go and watch this video

0:09:35.200,0:09:37.120
from the beyond block conference in

0:09:37.120,0:09:39.070
taipei where he basically outlined his

0:09:39.070,0:09:40.930
proposal this is all very new and a

0:09:40.930,0:09:42.790
three to five year plan that vitalic is

0:09:42.790,0:09:44.110
laying out here so I don't think we'll

0:09:44.110,0:09:45.670
even see an alpha implementation of it

0:09:45.670,0:09:47.470
in 2018 we'll probably see more written

0:09:47.470,0:09:49.360
specs and research into the idea of

0:09:49.360,0:09:51.040
sharding but I don't think we'll see an

0:09:51.040,0:09:52.450
implementation that anybody can touch

0:09:52.450,0:09:54.220
until sometime in 2019

0:09:54.220,0:09:55.870
as for what Fork that'll eventually end

0:09:55.870,0:09:57.850
up in who knows it'll be sometime far in

0:09:57.850,0:09:59.680
the future probably post the Serenity

0:09:59.680,0:10:00.070
fork

0:10:00.070,0:10:01.750
so that's consensus and scaling I think

0:10:01.750,0:10:02.860
there's some cutting edge cool

0:10:02.860,0:10:04.210
technology that's gonna solve these

0:10:04.210,0:10:05.830
problems but it's still a little ways

0:10:05.830,0:10:07.510
out I think the first we'll see is

0:10:07.510,0:10:10.570
Kasper FFG sometime in 2018 mid to late

0:10:10.570,0:10:12.520
2018 most likely but in addition to

0:10:12.520,0:10:14.170
consensus and scalability there are some

0:10:14.170,0:10:15.610
other concerns that people had and

0:10:15.610,0:10:17.140
people are working on cool solutions to

0:10:17.140,0:10:18.370
those first I want to bring up is

0:10:18.370,0:10:20.260
privacy and aetherium operates a lot

0:10:20.260,0:10:22.120
like Bitcoin today and that everything

0:10:22.120,0:10:23.620
is open and transparent and you can see

0:10:23.620,0:10:25.390
what everybody else is doing some people

0:10:25.390,0:10:26.560
don't like this and this is why they use

0:10:26.560,0:10:28.780
coins such as Z cash or manera go on

0:10:28.780,0:10:30.070
watch my privacy coin video if you

0:10:30.070,0:10:31.390
haven't already the good news for

0:10:31.390,0:10:33.190
privacy on a theorem is that most of the

0:10:33.190,0:10:34.690
legwork is actually being done it was a

0:10:34.690,0:10:36.760
hard fork back in 2017 which introduced

0:10:36.760,0:10:38.860
CK snarks so you can use that in smart

0:10:38.860,0:10:40.660
contracts CK stocks or zero knowledge

0:10:40.660,0:10:42.460
proof or a technology that are used in Z

0:10:42.460,0:10:44.770
cash to implement its privacy layer and

0:10:44.770,0:10:46.180
so all the fundamentals are actually

0:10:46.180,0:10:48.010
already in aetherium somebody just has

0:10:48.010,0:10:49.570
to start writing smart contracts which

0:10:49.570,0:10:51.370
leverage this in a smart way and I

0:10:51.370,0:10:52.630
haven't really seen an implementation of

0:10:52.630,0:10:54.220
a token or anything that's utilizing

0:10:54.220,0:10:56.050
this technology to its fullest just yet

0:10:56.050,0:10:57.730
I would anticipate in 2018 we're gonna

0:10:57.730,0:10:59.290
see some people start leveraging the

0:10:59.290,0:11:01.660
fact that ZK stocks can be used in smart

0:11:01.660,0:11:02.950
contracts and we'll see some more

0:11:02.950,0:11:03.600
privacy

0:11:03.600,0:11:04.829
focused initiatives on top of the

0:11:04.829,0:11:06.509
theorem but this will be second layer it

0:11:06.509,0:11:08.399
won't be built into aetherium natively

0:11:08.399,0:11:09.839
the second concern that a lot of people

0:11:09.839,0:11:11.430
have had is just security concerns

0:11:11.430,0:11:13.560
around aetherium smart contracts due to

0:11:13.560,0:11:15.630
bugs and smart contract code in 2017 we

0:11:15.630,0:11:17.490
saw hundreds of millions of dollars be

0:11:17.490,0:11:19.319
stolen by exploit is one of the most

0:11:19.319,0:11:21.000
notable examples of this was the parody

0:11:21.000,0:11:22.290
wallet hack that happened where

0:11:22.290,0:11:23.069
everybody that was using the

0:11:23.069,0:11:24.690
out-of-the-box multi-sig wallet the

0:11:24.690,0:11:26.670
parody basically lost their money this

0:11:26.670,0:11:28.380
included a lot of those icos who raised

0:11:28.380,0:11:29.880
millions and millions of dollars so

0:11:29.880,0:11:31.290
there's a lot of angry people the good

0:11:31.290,0:11:32.430
news is there are several initiatives

0:11:32.430,0:11:34.380
focusing on how we solve that first

0:11:34.380,0:11:35.519
there is actually an attempt to bring a

0:11:35.519,0:11:37.230
better programming language to smart

0:11:37.230,0:11:38.639
contracts right now that a factor

0:11:38.639,0:11:39.990
language for writing etherium smart

0:11:39.990,0:11:41.730
contracts is something called solidity

0:11:41.730,0:11:43.259
and while it's relatively easy for new

0:11:43.259,0:11:44.970
developers to pick up it leaves a lot of

0:11:44.970,0:11:45.990
room for these developers to make

0:11:45.990,0:11:47.610
mistakes which makes this mock contract

0:11:47.610,0:11:49.170
vulnerable is a new smart contract

0:11:49.170,0:11:50.579
language being developed called VIPRE

0:11:50.579,0:11:52.920
which is an alternative to solidity and

0:11:52.920,0:11:54.420
it has a lot more security features

0:11:54.420,0:11:55.709
limiting down the methods you can

0:11:55.709,0:11:57.360
actually access basically making it

0:11:57.360,0:11:58.860
harder for developers to unknowingly

0:11:58.860,0:12:00.839
include exploits in their code it's

0:12:00.839,0:12:02.190
actually an alpha right now and you can

0:12:02.190,0:12:03.420
go and use it that just doesn't seem to

0:12:03.420,0:12:04.709
be a lot of people using it right now

0:12:04.709,0:12:06.569
but it is being actively developed and

0:12:06.569,0:12:07.949
the second approach to smart contract

0:12:07.949,0:12:09.149
security and this is kind of the Holy

0:12:09.149,0:12:10.800
Grail is something called formal

0:12:10.800,0:12:12.660
verification I spoke about formal

0:12:12.660,0:12:14.370
verification in the past in my what is a

0:12:14.370,0:12:16.139
smart contract video when I was talking

0:12:16.139,0:12:17.550
about tezo's they're doing something

0:12:17.550,0:12:19.319
similar with formally verifiable smart

0:12:19.319,0:12:21.029
contracts and code be formally

0:12:21.029,0:12:22.410
verifiable means that code can

0:12:22.410,0:12:24.449
essentially be proven mathematically to

0:12:24.449,0:12:26.250
do what it says on the box so without

0:12:26.250,0:12:27.660
having to run that code yourself and

0:12:27.660,0:12:29.610
hunt for exploits basically you can

0:12:29.610,0:12:31.230
prove mathematically that the code just

0:12:31.230,0:12:32.850
does what it says to use formal

0:12:32.850,0:12:34.170
verification though you usually have to

0:12:34.170,0:12:36.060
adhere to a very strict syntax in the

0:12:36.060,0:12:37.620
way you write your smart contracts which

0:12:37.620,0:12:39.120
can be good because it encourages best

0:12:39.120,0:12:41.310
practices but you also often have to use

0:12:41.310,0:12:42.600
a separate coding language altogether

0:12:42.600,0:12:44.730
that is formally verifiable itself

0:12:44.730,0:12:46.019
there's a lot of research going into

0:12:46.019,0:12:47.790
this but it is cutting edge so I don't

0:12:47.790,0:12:49.259
expect we're gonna see a lot of movement

0:12:49.259,0:12:51.120
in this in 2018 but it's something to

0:12:51.120,0:12:52.529
keep an eye on it's the way I think that

0:12:52.529,0:12:54.720
all smart contracts and all code in the

0:12:54.720,0:12:56.370
future is gonna be written as well so

0:12:56.370,0:12:57.779
that you can verify that something does

0:12:57.779,0:12:59.279
what it says it does without having to

0:12:59.279,0:13:01.050
go hunt for bugs again the cool thing

0:13:01.050,0:13:02.009
about the two things that I just

0:13:02.009,0:13:02.910
mentioned is that they can be

0:13:02.910,0:13:04.589
implemented completely independently of

0:13:04.589,0:13:06.870
the etherium roadmap and any changes to

0:13:06.870,0:13:08.880
your theorem protocol itself so if you

0:13:08.880,0:13:10.230
combine all the things I've talked about

0:13:10.230,0:13:11.699
today that's actually quite a lot of

0:13:11.699,0:13:13.439
movement happening on the etherium front

0:13:13.439,0:13:14.939
so that's my roundup of the etherium

0:13:14.939,0:13:16.050
roadmap what's happening with the

0:13:16.050,0:13:17.910
protocol itself in the court

0:13:17.910,0:13:19.560
but also with the secondary layer stuff

0:13:19.560,0:13:21.600
and the tooling around it I think 2017

0:13:21.600,0:13:22.620
really set aetherium

0:13:22.620,0:13:24.060
up so that all the eyes are on its

0:13:24.060,0:13:25.260
development and now it's really up to

0:13:25.260,0:13:26.430
the development community behind

0:13:26.430,0:13:28.230
aetherium basically take it forward and

0:13:28.230,0:13:29.970
prove that it can scale in a secure way

0:13:29.970,0:13:31.260
so what do you think does the future of

0:13:31.260,0:13:32.790
aetherium look bright let me know in the

0:13:32.790,0:13:34.170
comments and also let me know if there

0:13:34.170,0:13:35.310
was anything that I've missed that's on

0:13:35.310,0:13:36.630
the roadmap that you're really excited

0:13:36.630,0:13:37.890
about if you found this video useful

0:13:37.890,0:13:39.660
please slam that like button it really

0:13:39.660,0:13:41.610
helps out and like I said earlier hit

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0:14:01.440,0:14:02.430
hope you found this helpful

0:14:02.430,0:14:04.080
until next time I'll see you later

0:14:04.080,0:14:13.390
[Music]

0:14:13.570,0:14:15.440
you

0:14:15.440,0:00:00.000
[Music]