fiews chainlinkSergey Nazarov SmartCon Keynote on the Future of Hybrid Smart Contracts

chainlink. chainlink link 4 chan biz fiews chainlink Sergey Nazarov SmartCon Keynote on the Future of Hybrid Smart Contracts
fiews chainlink chainlink api3 Sergey Nazarov SmartCon Keynote on the Future of Hybrid Smart Contracts
hi everybody um thank you for coming to the conference i hope youre learning a lot and getting a lot a lot out of it um a lot of thought and effort went into it so i hope its its getting everybody what they what they what they want from it the the first topic i think i really want to cover is you know how grateful i am to actually be working in an industry that has such a significant problem to solve and im going to go into that in a minute but i think that the enormity of what blockchains and smart contracts can really do for society is something that i think its important for all of us in this industry and in our community to generally understand and have a very clear picture of because in many cases i think its its larger than than some people assume and im also kind of amazed that were at a time in history where we can actually work on solving that problem and so the the the problem that were solving and the importance of solving it i think is something we should keep in mind as we spend you know such significant amounts of time and late nights working um working towards making this industry how the world really works so so the nature of of what i think were all doing here is were solving um the problem of what is the truth and how does society work on the basis of trust and and while those are very vague notions i i hope to make them a little bit clearer in this presentation and then to show some of the steps that weve taken and are continuing to take to to solve um to solve for for these immensely important kind of problems and issues and improvements that can be made to society so really what you see here is a spectrum um you see a spectrum where on the one side of it you have um what i call just trust us paper promises and throughout history this has been um much of the way that society functions you basically had banks institutions insurance companies ponzi schemes and and various other kind of conglomerations of promises and ideas provide promises on paper that there was no really firm commitment no real reason other than a choice or desire to fulfill and everybody is so used to the world working this way that it isnt really something people question or and it isnt really something people believe they have an alternative to the the fascinating thing is that that they do have an alternative and that that alternative appeared in 2009 with bitcoin and has since then evolved into more and more advanced versions of what what what we call cryptographic truths so cryptographic truth is the ability to guarantee outcomes based on cryptography and physics and encryption and math basically so on one end of the spectrum you have some kind of paper document and some people somewhere that say they might do something and you hope that they do it and then on the other side of the spectrum you have cryptographic truth which is enforced by encryption and mathematics and at the most base level really physics and its that cryptographic truth that bitcoin and decentralized infrastructure and ethereum and smart contracts and d5 is just a progressively more advanced version of so so this is the spectrum that i think society and really the world kind of exists on and the right side of the spectrum just recently appeared and in this in the scope of history its its just just appeared just like a second ago basically and we have the um kind of really i think the immense privilege to be able to drive this technology forward to change the way society works so so what do i what do i really mean by that so if we look at this in a historical context we see that since the invention of these paper promises in the form of banknotes in the 11th and 12th century in china you had a number of different banknote schemes that were all you know recycled or deprecated or no longer used because they led to massive inflation they led to over printing they led to defaults and you know it went from the jousley banknote scheme to the whole zbanks banknote scheme all of which had similar inflation issues and you know bank notes were bought to the to the west by marco polo and other similar traders and then eventually they went made their way into europe with the appearance of stockholm banco um which created the first banknotes in europe in a number of years those banknotes rose also over printed causing massive inflation and a default in only a few years so not decades but only a few years you had the first banknotes in in europe from stockholm banco leading to over printing and a default and despite that lesson and really because there was no other way to generate agreements and to generate money and to generate all of these kind of relationships that people need to generate in society the bank of england um you know had their charter signed in 1694 and generated the bank of england banknotes which then kicked off a long set of events a number of failures a number of over printing inflation and various other other dynamics which eventually led to the great depression of the late 1920s early 1930s which was only stemmed by by certain very extreme policies such as the fdic which allowed the government to actually bank back deposits up to a certain number i think the number is something like 250 000 per deposit and this this has been the the longer term history of these paper promises and where they originated and its been a very long history and its its filled with basically the same story right the same story is what a great idea that we can generate paper promises isnt that wonderful lets see how far this goes lets accelerate lets really accelerate oh its kind of going well lets lets really push push the gas pedal down lets um generate a massive amount of these things oh no oh no we overdid it we overdid it um inflation defaults um paper promises no longer being honored we cant honor the paper promises because you know we pushed the gas pedal a little too hard and we did a little too much and we dont actually have the collateral to honor what we what we uh said we were going to honor and so you know um tough luck tough luck um thats the world of paper promises and everybody has been living in the world of paper promises for so long that that is um the way the world is thats just the world and what im here to tell you and what our industry is here to tell you is that that doesnt need to be the way the world works the world can now work in a much better way and and thats the fascinating you know amazing um amazing thing about this is that the world can can work differently what are we doing in modern times um in modern times i i cant say weve necessarily learned from the lessons of history in modern times we are um you know in in the timeline of history modern times from the 1930s or the 1970s its not like a second its like a second and a half right so its a blip its a very small blip but in that blip um were were pretty much at the stage of lets lets just push that gas pedal all the way down and see how far things take us you know throughout history when that gas pedal has been pushed down generally speaking um its always led to the same place just the recurring pattern of history that that invariably leads to the same place now this suggests to me that in the cycle of just trust us boom and bust um you know there is a boom theres now still a boom everybody is you know printing money everybody is generating credit and debt there was a separation from the dollar and gold right after it became the the global reserve currency thanks to bretton woods and the the reality of this is that has to that has to have a problem at some point and everybody agrees with that and already were seeing inflation increase now i think people dont fully um maybe see the magnitude of how far that pedal has been pushed its been pushed pretty far if you look at the graph here at the bottom from fred you know basically the point at which the u.s went off the gold standard and basically got the go-ahead to infinitely push that you know the gas pedal proverbial gas pedal for for money printing it has really accelerated and the the point is that this is what underpins everything right this is what im put under pins credit debt institutions solvency all of these things and what you know whether theres a problem with all this because theres inflation or whether you know theres solvency issues for certain people or whatever it is every single indicator within the lessons of history shows us that you know we really pushed this gas pedal really hard if you look at the central bank balance sheet as a share of ddp gdp if you look at the percentage of all dollars printed throughout you know throughout the last couple of decades over 20 was printed just last year and then you think about the things that have been happening over the past two decades both with the credit crisis in 2008 and the greek banks denying access to funds in europe back in 2015 i think you start to see that you know the just trust us set of guarantees in various ways is frank and once again the amazing thing is that there is finally throughout history theres never been an alternative but finally there is an alternative to the just trust us model and that is what we are doing and that is what our industry is about and thats thats quite an amazing difference so ill give you um an example a modern example right so a modern example of this is robin hood robin hood is a trade fight product that basically gives a just trust us paper promise that says do whatever you want whenever you want just trade just do whatever you want just have fun good luck have fun um okay sounds great people are doing that oh no turns out we cant do that why cant we do that oh you didnt read the fine print in fact you did read the fine print but we changed the fine print um you know thats what a paper promise looks like thats the thats probably the most modern most well-known example you know its not any better or worse than the other paper promises that are out there im just using it because its its the example that people know but its a very poignant example its a very clear example of hey i made you a just trust this promise nothing was forcing me to to guarantee that to you nothing was forcing me to do that nothing was forcing me to actually deliver on the promise i made to you other than my desire as an institution or as an entity and i didnt i just said hey you know i cant im not going to do it tough luck tough luck everybody um right the just trust us tough luck era of a thousand something years is now going to come to an end right that that model of just trust us and well do whatever we want is coming to an end and thats a very very very different way for the world to work for example how does defy work in those situations well in d5 you have certain cryptographic guarantees you have certain code that is guaranteed to execute in a certain way and what does that mean well that means its guaranteed to execute in a certain way and youre not going to get away from executing it that way thats quite amazing because that means that no matter what anybody decides no matter what the person who made the application decides or what someone else decides youre going to get the behavior you expect from the financial system for the financial product from your assets from your custody solution from whatever never before in history could you generate that type of promise that type of guarantee on the basis of math physics encryption never no one ever could give you that guarantee until about 2009 where if you had a private key you had control over something that no one else could stop you from doing things with because you had the private key so thats a big deal and and i once again just want to underscore this so people understand what it is that were doing here why does it matter why should we care about blockchains why should we care about oracles why should we care about smart contracts its not just about finance and its not about just about gaming and its not just about insurance its about the way the world works and the way the world works influences everybody it influences developed markets and influences emerging markets it influences the average consumer it influences institutions it influences everybody and at the end of the day the way were going to make the world work and the way were already making the world work to the tune of over a trillion dollars in in our industry is cryptographic truth thats the alternative in cryptographic truth there isnt some person somewhere that decides what happens theres mass theres encryption theres physics and as long as physics and encryption and math works as expected which is about probably probably the best guarantee youre going to get in this world youre going to get what you expect from the financial system from an insurance product from a gaming system from ad network from whatever thats so different that people who arent used to considering that i think many times cant even see the cant even process the full difference but but the difference is like night and day its the difference between having assurance that something will happen and having the possibility that it wont happen and and i have to tell you in every single case where ive made this distinction clear with every enterprise every startup every individual person i have yet to meet a person that is going to tell me you know i would prefer a just trust us promise where you know things can get switched up on me at any moment just switch them up itll be fun nobody nobody has ever said that to me once they understand the distinction and that gives me an immense amount of surety that if we are able to provide cryptographic truth to the world in an easily consumable secure easy to use easy to implement manner then that is how the whole world will work because nobody so far has ever told me no i would just like the paper promise where uh you know i could uh i could be screwed you know lets just do that never never heard that once this is why um our vision at chainlink labs and what we hope chainlink will do is build a world powered by truth so weve weve done some work internally to to solidify in the simplest terms possible what it is that were doing what were hoping to achieve with the chain link open source uh project and community and network and this is what were hoping to achieve were hoping to build a world powered by truth specifically cryptographic truth but really uh to build a world powered by truth as you can tell this is rooted in our fundamental belief that truth is better than false you know paper-based trust right so if you have the truth you can build systems around it if you have to just trust some paper promise some institution some whatever that is strictly worse that is inferior so truth is greater than trust thats what we mean when we when we have this statement this is at the core of our fundamental belief system and how were seeking to achieve this is to build decentralized systems that link everything to truth creating a fair unbiased world so thats fundamentally what she sheenlink labs does thats what the chain link network will hopefully achieve is become a set of decentralized systems that link everything to truth creating a fair unbiased world and that is going to be a world thats much better to live in for everybody for developed markets because there arent just a small number of people that can just take money from society and everybody else and in emerging markets because theyll finally have access to agreements and contracts and capabilities that they never had access to before so this um i think is a very worthwhile uh goal that we have this is how were uh approaching it and i just thought in the first few minutes the presentation would be useful for everybody to get on the same page of why this is important how were seeking to achieve this and and what it is that our fundamental beliefs are in terms of you know what were working on and um ideally i think also in in in this industry how is this achieved so this is achieved through creating more and more advanced hybrid smart contracts right so something that people i think need to understand is that the more advanced smart contracts become the more industries the more use cases the deeper into existing industries technology from our industry goes the more smart contracts can do the more blockchains are involved in the financial kind of world the more blockchains and smart contracts can do the greater share of gaming is powered by them the more smart contracts and blockchains can do the more of the insurance world is powered by them this is what were doing we are seeking to extend and augment and improve and enable and help build an entirely new more advanced class of smart contracts that extend what blockchains and smart contract platforms like ethereum and others are used for across many industries and this will massively expand the pie itll grow the pie itll grow the market itll grow what our industry is about and itll make blockchains and smart contracts the source of cryptographic truth for how the world operates and thats our fundamental goal to transition the world from a paper promises just trust us hopefully its going to work out model to the cryptographic truth model that in my opinion requires smart contracts to be able to meet the operational demands of the financial industry the insurance industry the gaming industry and all subsequent industries where it will fundamentally change how they operate now this works on on three fundamental levels you have the blockchain which is kind of the route of cryptographic truth and trust that secures the state secures the truth secures the trust dynamic of the the state changes you have the off chain world of trust minimized off-chain computation in the form of decentralized oracle networks which is what chain link specializes in and then you have the world of existing systems existing services data providers existing backends existing payment systems all the worlds existing infrastructure for data payments back-end computation back-end systems control access control so on and so on now we in in our model have divided up the off chain portion of the world into three distinct categories which i will be going through today the first category is off chain data the second is off chain compute and the third is cross chain compute in terms of what this actually means you you already see all of this happening so you already see multiple off-chain services powering d5 power and gaming powering you know wrapped assets like um you know wbtc you basically already see um the ability to provide price feeds weather data proof of reserves random number generation to various protocols that all then interoperate with each other you see their existence appearing because you have these services so im very very proud to say that our our many long nights of effort and work by everybody here in the chain link ecosystem has already resulted in a significant change in our industry has already resulted in a significant improvement of what our industry does and has already grown dfi well past what it was when we started and is now growing other sectors of the blockchain economy by allowing people like weather insurance insuretechs and gaming companies and you know custody providers to join into the the benefits of using cryptographic truth in blockchains and and d5 is just the initial example of this which is really just getting going but if you look at the model the model is multiple off-chain services being used by on-chain contracts that interoperate with each other to create really advanced applications which then go into these finance industries insurance industries gaming industries global trade industries and begin to redefine those industries and begin to pull more and more value more and more contractual transactional volume into the contracts because the contracts can finally service the requirements of that industry thanks to this combination of off-chain systems together with on-chain advanced code which is enabled by the off-chain systems so we are already doing this and were very very proud of that and i think we should be very proud of that our fundamental goal is to create a global standard for enabling cryptographic truth by augmenting blockchains improving what blockchains do enabling blockchains to be more useful enabling smart contracts to do more in the history of global standards i think you see a very um useful pattern in that you know as an example what is it built on its built on being an open source standard that had the first best technology that was built on superior security and now it services most web traffic similar story with linux open source standard innovative first mover built on better security services most web servers with chain link what we are working on diligently and kind of feverishly at this point is making sure that its the global open source standard we are clearly the innovative first mover thats actually accelerated certain industries like dfine to what it is today we are definitely built on built on better security based on the preference that everybody has in using our data and our other services and as you can see we service more smart contracts and are rapidly um adding adding to that to that list so our fundamental goal is to create a create a global standard that will change the way that our industry is used improve society improve how the world works and write our name into history in the process just like http is just like linux that is our fundamental goal that is the the kind of journey that were on thats what were you know focused on doing luckily for us we have the resources to do that we have you know over 250 people working on that at shingling clubs and lots of other people and lots of other teams building that and we have a huge community of users and node operators and other really smart people collaborating to make that happen but that is the fundamental goal of chain link to become the global open source standard for how cryptographic truth is enabled on top of blockchains on top of smart contracts to make blockchains and smart contracts useful for the larger world and there is certainly a lot that they are useful for now if we look at this in a very general initial sense what we really see is um various services various decentralized services enabling distinct industries that would not exist and could not properly function without those decentralized services serving them in the secure reliable low-cost high-speed manner that they are now the first and best example that were known for about this is price and market data which as many of the people that we work with and many in the community know has accelerated and allowed the defy industry to grow into what it is today which is why we serve the largest lending protocols the largest deliveries derivatives protocols the largest insurance protocols and why when they launch new markets we make sure that they have the secure reliable data that they need this is done through a complicated system that was architected with a secure systems design set of principles that you know other solutions dont seem to have and that have been tested over time against flash loan attacks congestion to the tune of 2500 gas which we have always overcome by putting in updates while other oracle systems have not put in updates and various other um other innovations that make sure that our systems operate this is why the majority of defy uses us and why even more uh d5 applications are automatically integrating us on their own to make sure that they have a reliable system of data now what this has shown us this initial interaction with d5 which is now still you know in the 70 to 100 billion dollar market size range which is very very small compared to where i think it will be is that um all of the worlds financial contracts financial products financial incentives ownership rights carbon credit systems insurance processes will eventually be in a smart contract that is what i personally believe very very strongly there is absolutely no reason why they wouldnt if we as an industry can make the transition of carbon credits derivatives capital markets real estate commodities insurance if we can make all of those industries able to transition to blockchain based smart contracts to hybrid smart contracts to oracle powered systems and smart contracts that is what we can achieve and when we achieve that the same diagram you saw for d5 where different d5 protocols are composable will take place for all of the worlds markets whether thats carbon credits or capital markets or insurance markets or commodities markets it doesnt matter they all want to function in this hyper reliable way and the the the d5 world is a microcosm of that it is a precursor it is a signal and a sign and a picture an early picture of what is to come and i personally think that this is inevitable it is completely inevitable the only question is how quickly can we do it and how quickly can we get it to benefit emerging markets and to bella benefit developed markets and my other personal belief is that the speed at which the just trust us guarantees of society fail and the just trust us you know model begins to show that it doesnt fulfill peoples expectations and needs as consumers is also going to accelerate this but this is where everything is going after enabling all of this defy stuff after seeing how it interoperates after talking to multiple banks and various other institutions all of the worlds um contracts will be a collection of services interoperating with each other across a number of different chains you know vertically focused chains geographically focused chains private chains public chains um but they will all be on a blockchain because of this superior cryptographic truth guarantee that they dont have anywhere else to get and that they will desperately want the more that the just trust us paper promises world shows its inability to guarantee solvency reliability and just you know to be unpredictable generally people dont like unpredictability they like guarantees that are actually fulfilled and thats what our industry is about our continual goal is to provide more and more and more services more and more services means more and more smart contracts more and more smart contracts means more and more usefulness for various industries more and more usefulness for various industries means more and more um adoption of smart contracts and that is the the cycle thats the virtuous cycle the more we can enable smart contracts to do the more useful things they will do because they do do extremely useful things and then the more theyll get adopted which will lead to even more services being in demand proof of reserves is just one simple example its the ability to replace a one-year audit process that has historically failed society whether its through enron or wirecard or any number of other examples that one-year auditing process where everybodys buddies with the auditors and the auditors missed something or didnt see something or you know were somehow having a conflict of interest that one year audit window i got to tell you if you give people a choice between a one-year audit and a one-second audit automatic audit with cryptographic truth proving every single thing that was audited and that the the place where it came from proved that the assets were there that they were at a certain value that they were in a certain state i dont know a single person was going to tell you know id like a one-year audit id like a year of risk give me a year id like to take risk for a year nobody will want that everyone will want automated cryptographic truth-based audits and you already see that from the organizations that understand how cryptographic truth can allow them to provide better guarantees now once again thats initially crypto firms certain fintechs right certain cfi but the fundamental kind of proof and cryptographic truths benefit compared to to other things is is just you know hundreds hundreds of times better and and and everybody can verify it in our proof of reserve schemes everybody can verify the assets that certain stable coins have in bank accounts in gold vaults on on a block by block basis so block by block you know whats backing a stable coin because it was proven to you by a data source that you know shows that and what does that do that makes it so that if anybody wants to under collateralize that stable coin what do they know they know that they will be discovered within 10 seconds thats not a year you cant you know you cant take some money and hope to put it back in 10 seconds its 10 seconds thats um another example of a difference and beyond that it just it just expands right so highly validated data is the first category where once you generate highly validated cryptographic proofs about whats going on you can then prove what is true what happened what didnt happen and then around that truth around that cryptographic truth that was proven through you know a definitive method of of generating a consensus about what happened you can then build all kinds of systems all kinds of innovations all kinds of things that werent possible previously and this is the uh amazing initial step that weve taken that has given birth to d5 given birth to proof of reserves giving birth to some decentralized insurance products better versions of fraud proof gaming here are just some examples you know one of my favorite examples quite simply weather insurance based on whats happening with the weather these days i think you can see why its one of my favorite examples um people need weather insurance theres a flood there theres a forest fire here theres rising sea level sea levels there theres lack of rain somewhere else thats not going to stop first of all second of all how do people manage that risk in places that dont have insurance companies what do they do you know they do they pray they pray to the rain god thats very nice and they should do that if they would like to but you know thats not really going to work if theres no rain thats not going to give them solvency thats not going to allow them to continue being an emerging markets farmer you know what they should do they should they should do whatever they want to do to to help make rain happen and then they should have cryptographically guaranteed insurance that doesnt depend on their local legal system the only thing it depends on is them having a 50 android phone in their hand and internet access and then all of a sudden through insure techs like hardball you can you can suddenly have people in all kinds of parts of the world where their local legal system doesnt work the insurance companies arent going there the ones that would go would be predatory um you know theres payday loan people who who are predatory theres bankruptcy banks that are highly predatory with just crazy usery rates um and they can just sidestep all that because you now have a system of contracts based on cryptographic truth we can verify whether there was rainfall they can sign up for the insurance with the cryptographic proof and they can automatically be paid what theyre owed not because an insurance company says i feel like it but because it is enforced by math and physics and now somebody with a 50 android phone and internet connection that hasnt heard of an insurance company up until now can have better insurance guarantees through cryptographic truth than people in developed markets that are still stuck with paper promises thats unbelievable and more importantly that will completely change that persons life that will allow them to continue being a farmer or itll allow them to continue you know you know selling meat or or building construction things or whatever theyre doing and this is the underpinning of society that isnt seen by people but which underpins how society works that were changing this is partly dependent on our ability to generate these cryptographic systems our communitys ability to help build chain link and the inclusion of data providers and im really really encouraged to see large and impressive weather providers like accuweather basically going on and running their own chain link nodes and providing their data to various blockchain networks eagerly in order to service all of these smart contracts because there is a huge world of data and everybody does want it to be used to achieve these critical massive changes in how society works and the place where that is going to happen is the smart contract state on blockchains and all we really have to do as an ecosystem and as and as a project and as a group of people is make that happen we we have to get the data and the things that all of the smart contract developers need in order to build the future and to build this cryptographically truth-powered world we need to get it to them we need to give it to them in a secure reliable decentralized way and if were able to do that itll change our industry itll change the way the world works and you know i personally think itll make uh chain link a global standard which is once again our goal other examples of this are very straightforward you know nfts nfts are really impressive theyre great but even more impressive are dynamic nfts that are updated by what happened right so if you own some kind of sports related nft with the help of chain link networks and the data in sports data you can keep it updated and the value of that nft can be tied to whats happened in the real world thats called the dynamic nft so thats a great gaming example other examples are things like identity where youre able to verify identity for something like a decentralized domain system like unstoppable domains through twitter and youre able to connect various points of identity to a domain system like unstoppable domains or enas or others and you know identity is something were working on is another source of data but this is just to highlight theres large varieties of other data that will continue to generate large varieties of other critical use cases which were previously unavailable and will once again reinvent what our industry is about and thats what i think we should all be focused on and thats what i think we should be doing you know the next part of this chapter in enabling developers to build more and generate even more impressive things is off-chain compute now when i say off chain compute i mean trust minimize blockchain compute i mean off-chain computation that isnt done in a centralized web server but its done in an oracle network in a way that creates some degree of trust minimization so that you still have decentralization around the computation but you can still use it to do things other than than what you would do in a smart contract this is an entirely separate category where so far we have generated randomness very successfully for many gaming applications now we are moving on to keepers automation and you know more more more advanced off-chain compute and beyond that theres expanded computation like fss so far and less than a year from going going live the verifiable random generation um systems that weve put out have generated are now generating over 200 000 vrf requests per month for many of the top games in the blockchain industry and what that shows me is that not only is data and the access to various data identity data weather data price data market data location data whatever data not only is data a critical component of building more advanced smart contracts but computation and certain specific types of computation that need to be trust minimized are also a key aspect of building smart contracts in an advanced more useful way thats going to reinvent our industry and reinvent how the world uses what we what what what were building in this in this entire industry this is why we are today announcing that chain-link keepers is going live on mainnet chain-link keepers has been has been in the works for a while and it has been open beta for some time just kind of soak testing it and making sure that its that its secure and ready and were thrilled to say that today its going live on mainnet and basically launching for use by by all of the d5 apps out there and well be coming to all the blockchains where we integrate um pretty pretty rapidly now chain link keepers is fundamentally the ability to give an off chain to give a computation to something called the keeper network to give a computation that isnt something you you can do in a contract or you want to do in a contract for either capability reasons the contract cant do it cost reasons the contract would be too costly to do it into would be too costly to do in a blockchain or sometimes privacy reasons the other reason that we found is realistically just like you had a centralization problem with data where people would run their own oracles and those oracles could fail and that failure could lead to a d5 protocol being you know underwater or dislocated from markets or dislocated from reality its very much the same situation with keepers you have developer teams and developer communities that are building a great defy application a great gaming application but they dont want to build infrastructure and they dont need to build infrastructure and thats the problem we we we need to solve for them at chain link and and and the chain link network needs to be built um to solve by the larger community by them together with us and so on its a matter of providing a decentralized system that you can offload the responsibility of off-chain computation to while still having those off-chain computations have a measure of decentralization and trust minimized guarantees right so the way it really looks is hey im a smart contract development team i know im going to do a thousand contract calls about a certain topic whether thats telling the contract what time it is you know for example smart contracts cant know what time it is they need a server they need a central server to tell it its its midday utc time time to settle time to execute even that level of information isnt available to the contract just time and so these developer teams know hey i am going to have a thousand plus um interactions with a smart contract man i hope i can keep my server running man i hope i dont miss one of those because if i miss one of those itll be really you know to be a real problem so instead of having to do a thousand of those and not being able to tell their user base that theyre giving them reliable guarantees now they can quite simply say here is one upkeep request into the chain link keeper system into into a single chain-link keeper network and then that chain-link keeper network will do thousands of ongoing devops off-chain compute and other transactions now now why does this matter once again right just to explain this kind of slightly esoteric problem why does trust minimize off-chain compute matter well well once again when youre building decentralized secure systems you need to be secure and decentralized and hyper-reliable end so you need to be hyper reliable when the gas price is at 2500 you need to be hyper reliable if a server somewhere goes down you need to make sure that your systems run in all market conditions in all network conditions because thats the nature of blockchain-based applications you need to provide that cryptographic truth guarantee that under all circumstances you will you will be able to to generate the outcome that the the application says it will generate so how does this look when everythings okay well when everythings okay the smart contract development team you know is triggering things based on time maybe doing limit order execution through their interface maybe doing automated liquidations maybe doing some smart contract devops requests someone on their team is maintaining a central server that central server essentially decides how the application will and wont function because it controls certain key outcomes of what the app of the smart contract application is able to do and you know that is is a very very striking parallel to oracles right data oracles same exact story guess what thats a bad idea same reason you dont want a centralized system controlling your contracts whether its for data or telling it what time it is or triggering it for various key um key events that you would ideally offload and the place where that starts to get shown is when gas does go to 2500 and broadcast transactions arent being broadcast or your centralized server fails or an adversary finds out how to ddos your one centralized server and all of a sudden youre not broadcasting um devops transactions to your smart contract those are all very exploitable very risky things that chain-link networks expressly eliminate right they expressly eliminate the congestion issues the network issues the the market-based issues the exploit issues all of those and thats been proven which is why once again the chain link networks that provide data hundreds of those now exist going to thousands soon and and those networks provide that data under the same set of guarantees that chain and keepers will provide to the applications that now need a reliable method to compute key computations that the contract cannot do but that have to be done in a decentralized trust minimized hyper-reliable manner and so thats the fundamental role of keepers and this once again serves the purpose of firstly unburdening the smart contract development teams from having to do this so that they can focus on making a great defined gaming or insurance application and secondly providing an end-to-end decentralized guarantee for how the application functions and this guarantee is what all of this is about all of this is about a decentralized smart contract with end-to-end security end-to-end decentralization this is what end-to-end decentralization looks like not this now here are some examples to to provide clarity so in the case of ave were working with them on reliably managing the liquidations in their protocol to make sure their protocol remains solvent that means that the various liquidations that need to happen for their protocol to remain you know above water and solvent and usable will now in many parts of their kind of smart contracts be done by chain-link keepers that will provide guarantees about liquidating those things about getting transactions in about that about properly monitoring that and thats a critical aspect of keeping the ave protocol working properly in the synthetics case its about um staking and feed distribution and so there needs to be a mechanism to properly stake uh give out staking rewards feed distribution and so on and and this is you know a very very clear need in many different applications where a keeper network is now going to take on the role of making sure that that part of the application works properly as an off-chain trust minimized computing resource thats configurable by the synthetics community and the synthetics team and through whatever set of set of processes that community has and then another final example is pull together for something as basic as starting its games and ending its games on the basis of time right so instead of the pull together team having to to initiate these critical aspects of their game they can now offload this responsibility to a hyper reliable decentralized computing system in the form of a chain link network thats committed to doing this just like its committed to providing data and and under the same set of hyper reliable systems guarantees um you know in reliable systems so this is a big big improvement for what smart contract developers can build today they can offload a massive amount of devops a massive amount of automation a massive amount of computation that their team has to do internally and they get their developer resources back their protocol becomes more decentralized and their protocol can prove more cryptographic truth to their users so its its just its just a benefit all around accelerating what can be built the more expansive vision of keepers that that im truly excited about and im already starting to see certain protocols taking advantage of is the ability to actually offload certain amounts of computation into a keeper network so the way that this looks um and in practice it can actually be done today at this very moment is the broadcasting of a smart contract on chain into a network like ethereum that contract that was broadcast and deployed on chain then can be split into two equal parts it can have a portion that is supposed to be executed on the blockchain network and then it can have a subsequent portion maybe even a very large portion that would be extremely costly to run on on on the blockchain network in the keeper network so the keeper network basically at no cost or just like web systems cost just base minimal hardware and and web traffic costs which is like the lowest cost youre going to get for any computation can now execute a portion of the code that was broadcast and deployed on chain now the benefits of this are twofold firstly youve deployed the code on chain so everybody can verify what the keeper network is going to compute for you that keeper network is only for that contract and it is not going to compute anything else for anybody else its not going to do anything else its a distinct service that only computes that piece of code for that one contract on on a committed sla type of basis and so everybody knows this keeper network has committed to run that code which has been deployed on chain so now you know that this trust minimized oracle network is committing to run that code so you have certain assurances and certain cryptographic truth and certain transparency there and then the um you know keeper network runs that code so if you had a contract that you wanted to make more robust you didnt want to pay a lot of ethereum fees or you wanted certain privacy about that code guess what you can broadcast it and then you can have it run in the chain-link keeper system and the chain-link keeper system can look at a multitude of on-chain and off-chain activity and this is a very very extensible capability that we already see some of the protocols were working with that are using chain-link keepers doing were seeing them basically say hey i want a more robust more advanced hybrid smart contract heres what i want happening on chain for cost or speed or you know whatever other reasons here is the code that i want to run off chain in a trust minimized way um and heres what i needed to do i needed to tell me the time i needed to go get some data i needed to compute some things i needed to compute something else once you once you see the results i needed to monitor a contract somewhere and then do something based on that monitoring because smart contracts you know cant even really monitor each other unless theyre kicked by keeper system and so this is extending to a very large degree what smart contract developers can build with a trust minimized system that generates cryptographic truth on that topic and so thats quite um quite an amazing innovation in my opinion and i think its going to generate a lot of very advanced use cases now if if this is something that you would find useful if youre a developer if youre building various um blockchain based applications i think you should you should really check this out this is a decentralized easy-to-use form of off-chain computation that in a matter of minutes can allow you to offload some of your centralized responsibilities to a decentralized system that you can configure you can add more nodes you can add less nodes you can expand what the nodes are computing for you and you can prove all of that to your users so they know that this portion of your smart contract is is not run by you is not in a black box but it is in this cryptographic truth decentralized completely end-to-end provable model which is the model that i think everyone here is is going towards the next aspect of of what were working on and what i think is important to um to say is the the cross chain compute aspect right so theres the off chain data that the and the off chain services and the off chain payment systems that oracles and oracle networks allow contracts to use theres the off chain compute that you cant do in centralized systems because they dont have a trust minimized aspect you need to do them in some kind of trust minimized oracle network like system but then theres also the cross chain aspect and the cross chain aspect is actually the way to make some of the most advanced smart contracts and really the smart contracts of the future what we call cross chained apps or cross chain smart contracts its the ability to string together multiple smart contracts from multiple chains using one smart contract you know for data maybe theres a supply chain blockchain somewhere with with data about you know whats going on with a good maybe theres another blockchain somewhere that you want to do a payment in maybe theres another blockchain where the contract itself operates then maybe theres five other blockchains that you want to use to generate various defy um you know defy interactions this is why you know were quite proud and very excited to be announcing ccip so ccip is something weve been working on for many years in our initial white paper we made it very clear that we want to support all leading smart contract networks for both off chain and cross chain interactions and ccip is similar to tcp and other protocols that seek to str to to provide connectivity and seek to make disparate different systems work under one messaging and under one communications standard so ccip is really about creating a global open source standard such as tcip or others that will allow blockchains to interoperate with each other will allow smart contracts from different blockchains to send each other commands and obviously enable the movement of tokens between chains and this is the final piece of the puzzle that we are now very very focused on and ive already been working on for years about how we want to enable a truly cross-chain set of smart contracts where all the different features of all the different blockchains and all of their different capabilities really need to be something that we give people access to because giving um people and developers the ability to generate a smart contract on ethereum use d5 protocols on other chains send the payment on a hyperledger payment system maybe get collateral in bitcoin or or do whatever complicated combination they want to do is is something that will unblock an entire world of innovation in our industry it will unlock an entire new set of applications that were previously not available and previously not possible and thats why were doing this right were doing this because we want to enable hybrid smart contracts to reinvent how the world works through this collaboration between different smart contracts different chains different capabilities and we are are positive and we already see a huge demand for the ability to use multiple applications um on multiple chains multiple services and multiple chains multiple smart contracts on multiple chains so so this is now the expanded definition of a smart contract right the initial definition of a smart contract might have been a tokenization contract and thats it and then it expanded to a tokenization contract with a voting contract and then it expanded to a tokenization a contract with a vocal voting contract that uses a data feed thats defy and then it expanded to you know tokenization voting off chain data feed through an oracle network like chain link and maybe some off-chain computation thats more advanced d5 and now with with the help of of the work that were doing on ccip with the large and growing community of contributors and thought leaders working with us um i think what youll see is that a smart contract will actually be defined by a tokenization contract a voting contract a multi-stick contract a few off-chain data feeds a few off-chain keeper systems that do computation and a few other contracts in a few other places that provide distinct services and tokens and defy and other capabilities and that will be the definition of a smart contract that will be what a smart contract is and that will be better for everybody because the amount of capabilities that are going to appear from that is once again going to grow the industry its going to grow the industry based on the usefulness that thats going to provide to the entire blockchain ecosystem to the entire world and once again thats our goal our goal is to grow the usefulness of the industry just like defy has grown the usefulness of the industry with the help of off-chain data and thats going to be a recurring pattern more off-chain services more often capabilities more advanced smart contracts more useful things for society more users coming in and building things using things that have blockchains and eventually itll lead to a larger um kind of societal and collective consciousness understanding of cryptographic truth because if youre getting cryptographic truth in one part of your life and youre not getting yet another part of your life youre confused right you youre thinking hey i have all these great cryptographic truth guarantees in my financial part of my life but my insurance company isnt giving it to me i dont think i i dont think i like that thats what all of this is going to result in as we gradually um provide capabilities to developers and they gradually build more advanced smart contracts thats how we get our industry from you know 1.5 trillion to hundreds of trillions to powering how the world works now one concrete example of this that i that id like to walk through is our work with celsius so were very proud to be working with celsius who has over 16 billion in total value locked in their systems and you know close to a million users using them to to generate yields on on on their cryptocurrency now celsius is is an interesting organization an interesting company because with our help and with our collaboration theyre actually combining certain centralized systems with certain decentralized systems on a progressive and and more rapid basis and one of the things that ccip and the ability to bridge value into other blockchains will allow them to do is itll actually allow them to use various d5 protocols such as ave and it allow them to use those protocols on different environments like ethereum or arbitrarium or others and so celsius plan and i think this is going to be the plan of many different user focused applications and eventually the plan of many banks and eventually the plan of many fintechs is how do i interoperate with all of the useful smart contracts in all of the environments that can provide value to my user base and more importantly how can i do that with the most security and with the minimal technical investment both of which the ccip standard and our portion and our approach to programmable bridges provides which ill go into more detail here so generally speaking what you would what youre going to be seeing with the ccip implementations is people like celsius um sending both commands and tokens to a ccip enabled programmable bridge and what programmable bridge means is that they will send both the tokens and the instructions of what to do with the tokens to the bridge the bridge will then move the tokens into relevant protocols according to the instructions that were given to it by somebody like celsius so the bridge is not just moving tokens and saying good luck i hope you know where to send them or i hope you know what to do on whatever blockchain the bridge is accelerating the speed at which celsius and other um cross chain dapps right because in this case celsius is very much becoming a very very cross chain enabled dap and and kind of collection of centralized and decentralized systems it enables them to rapidly both send tokens and send the commands and instructions of what to do with the tokens which means they dont necessarily need to deeply integrate with anything they just need to send the tokens and the instructions and now they can easily utilize not only multiple chains but multiple smart contracts on those chains such as ave and this is a huge benefit for everybody so the first thing that it does is it allows celsius and their users to gain access to all these different chains and all their different smart contracts and the second thing that it does is it provides massive amounts of value to those protocols on those blockchains that want to interface with that user base right so celsius has a user base of close to a million users with 16 billion total value lock thats growing pretty rapidly ave has has an amazing lending protocol that can that can reliably and with the help of various cryptographic truth guarantees provide a lending dynamic that other systems that celsius has access to cant and and uh celsius users may want to use of it and they may they may want to get their their yield from there and they should absolutely be able to do that and more importantly they should be able to do that on all the blockchains where ave has lending markets because one of the lending markets might be better one of the lending markets might be about something that isnt somewhere else and so this is an example of a cross-chain application that is leveraging ccip leveraging programmable bridges to get to the next stage of building advanced um smart contract applications and this is the picture of what whats to come because theyre leveraging external data theyre leveraging cross-chain interoperability the cross-gen interoperability protocol ccip theyre leveraging programmable bridges and what its getting them is a more transparent system that proves to their users with various sources of cryptographic truth whats going on its allowing their users to use more applications and get more useful outcomes from various smart contracts and its its fundamentally um kind of changing their relationship with with with the entire blockchain industry and so this is what we want to achieve with ccip generally speaking ccip is a part of a larger stack with a number of different stakeholders and a number of different community members and a number of different kind of parties that need to fit into a larger holistic model and that holistic model you know is basically based uh based on our view viewing of it on these um you know four levels and then it has one fifth kind of critical uh aspect and system that we provide uh uh on the right here the anti-fraud network so the first level is the consensus and transport level this is the computing infrastructure this is the physical computing environment which is um not surprisingly the chain-link networks right the chain-link networks using ocr 2.0 will be able to generate even more efficient computations on a greater amount of topics so ocr 1.0 was the protocol we released to increase the efficiency of chain links ability to deliver data by over 90 percent so almost a 10x increase in efficiency which allowed us to scale the amount of chain link data related networks to hundreds and soon to thousands and which allowed us to really generate um a faster response time a cheaper response time and so on ocr 2.0 is going to have an even greater whats not its not going to have a 10x improvement on efficiency but its going to have a very large improvement on efficiency and more importantly its going to provide a more generalized computation capability for things such as signature aggregation about events on various blockchains so ocr 2.0 is the consensus methodology at the core of the cross chain bridge and at the core of the chain link networks that will be generating the consensus to approve various transfers between chains whether those are messages or whether those are tokens now the other thing that ocr 2.0 does is its efficiency gains allow us to add even greater amount of notes so if youve if youve seen some of the things going on today at the conference you you would have seen um large enterprises like swisscom joining the chainlink network and becoming node operators alongside other node operators like t systems from deutsche telekom and and and other enterprises in in the future so what youre really seeing is the highest quality validator set the highest quality node network in the blockchain industry is only going to become more high quality and ocr 2.0 is going to only allow a greater and greater conglomeration of larger and larger node networks and so if you look at the other cross chain bridges youll see two things youll see certain cryptographic mistakes about how the how the protocol is built that havent involved losses of funds in the tens of millions because certain cryptographic primitives were improperly connected and the fundamental principles of the design were flawed and then youll see node networks in the single digits and node networks often made up of a relatively small amount of node operators that are either anonymous so you dont know whos controlling the cryptocurrency or um you know individuals just a single person who doesnt have a security background who doesnt have a devops background obviously those people can join chain-link networks and to make chain-link networks but if youre gonna have um a physical compute infrastructure a decentralized infrastructure that eventually secures trillions of dollars in value you want to have a system that gets you the best node operators that directs fees towards the best node operators and that progressively improves the quality of the network as the value secured by it grows which is the distinct advantage that chain link networks have and that ocr 2.0 only accelerates because it allows us to add even greater amounts of nodes such as hundreds of nodes into a chain link network that is bridging you know lets say billions of dollars the next level is ccip the cross chain interoperability protocol fundamentally ccip is an open source global standard that were collaborating on uh that were collaborating around with a number of important stakeholders like celsius like various blockchains like various d5 protocols like various bridge providers various groups that need a reliable messaging protocol so the the ccip is not necessarily about building a bridge it can be used to build the bridge its about moving commands and information between chains because its those commands and information which will fundamentally make up any bridge and so at the at the lowest level you have the chain link oracle networks coming to consensus using ocr 2.0 growing in larger and larger number with higher and higher quality node operators that have greater and greater amounts at stake to guarantee that the bridge is going to operate properly and then you have a messaging system that has a very distinct purpose and a separation of concerns around messaging right around the transaction of messaging and information in commands and what this does is it enables cross-chain smart contracts because smart contracts can now send commands to each other on different chains it creates a global standard for blockchain interoperability and very importantly it enables various existing bridges various you know current interfaces to build a better bridge to build a better interface into various blockchains because that messaging layer absolutely has to be secure it cant be manipulated right you need the physical compute infrastructure doing things in a decentralized way coming to consensus about the signatures that need to be aggregated about what messages to be sent and then you need the messaging system to be secure and so thats why those are the two primary levels were focused on were focused on making a highly reliable oracle network that can aggregate signatures and can verify things on various chains reliably and a messaging protocol that can send messages to different chains in a hyper reliable manner now this is once again all about messages right so in in in subsequent presentations at the conference you will see the details about the log system and the chain link message routing contract and a number of other things so i dont really really have time to go in this presentation but what youll really see is that it is about sending commands it is about generating events that move between chains in a hyper reliable way so that one smart contract can say i want to release a token from that contract and another chain or another contract can say hey mint to token on that chain or lock a token on this chain and and its really about sending these commands through messages so its its not necessarily about token movement its about generating a a messaging protocol and thats really what ccips focus is once again as a global open source standard that were collaborating on with multiple bridges multiple external um kind of d5 applications multiple c5 applications multiple blockchains and so on and what this is meant to do is just make everybodys life easier and more secure so that the dfi applications can get more value into them the blockchains can interoperate with each other and get and get more interactions between them and various user bases that they want access to the c5 applications can usually use blockchains its its really just a massive benefit for everybody because everybody just gets more usability from our entire ecosystem the next level in the cross chain stack is the cross chain services level now the cross chain services level is really about um creating bridges and creating cross chain applications bridges are more along the lines of using ccip to generate bridge to generate token movements for whatever topic the application or the user wants right so the programmable bridge is an initial reference implementation that weve made um and were kind of making now and well be releasing at some point to show how you use ccip to make a very advanced bridge and advanced means not just the movement of tokens but send my token to chainx and then monitor and well put it into a defy application monitor the yield of the d5 application and if the yield falls below a certain point return it back to me so you could not you dont only send your tokens you send your tokens and instructions about what to do with them and the bridge abstracts away all the complexity of having to use that chain of having to use those um defy applications you just get the benefit you just get the benefit of that chain you just get the benefit of all those d5 applications the dpi the d5 applications benefit because they get far more usage this way the chains benefit because the amount of transactions that theyre executing for the d5 applications or the services or the unique abilities they have you know skyrockets and the whole ecosystem benefits because everybody can just build more and more advanced things which once again allows us to turn around to society and say hey weve built this amazing advanced hybrid smart contract heres what it does right it allows you to use all the different default applications in this programmatic way its its getting you even more value as a user you should use d5 because this this hybrid um cross chain application can generate all this important um kind of usefulness to you as a user now once again the chain link program for programmable token bridge is built on ccip its a reference implementation and we absolutely encourage other people to build bridges so we want others to build bridges on ccip the reason were focused on ccip and not building bridges is because we want to provide the fundamental messaging layer and the fundamental oracle infrastructure that is going to reliably execute the ccip messages the ability to build bridges is something we want other people to take on the programmable token bridge reference implementation i think will be very impressive and very useful and itll have amazing features that i dont see in any other bridges and will have guarant security guarantees that other bridges you know simply dont provide based on the way their architect with the use of cryptographic primitives or because theyre not using chain-link networks and they dont have a sufficiently large collection of nodes fundamentally speaking what youre really going to see is is a very large amount of messages i think youre going to see a large amount of messages for a number of different bridges in in the blockchain ecosystem which i think dont fund them until they want to build the messaging layer or the physical infrastructure layer of node operators i think they want to build a bridge that that manages the movement of tokens somehow for different interfaces or even from their own interface and thats what ive seen ive seen a lot of people build bridges and then be forced to make a validator set or be forced to come up with a messaging protocol because they needed a bridge and what they really want is a bridge so we will have a programmable token bridge that were absolutely thrilled for people to use but um we absolutely encourage other people to use ccip to build their own bridges and to build even more advanced bridges and then also to build cross-chained apps that have their own unique bridging functionality built right into the dap so its own bridging conditions and its own messaging conditions built right into the application itself right into different smart contracts once again sending those commands over ccip the next level of of the cross chain stack that we focused on and worked on is the anti-fraud network so the anti-fraud network i think is an amazing and unique innovation where we are able to generate an oracle network partly based on our work on proof of reserves that monitors various key aspects of risk so if you look at any system out there in the traditional world that moves any kind of you know any kind of value or anything they always have a risk management and a fraud management and an anti-fraud department and often a very complicated set of ai driven systems this is what the anti-fraud network does in a transparent cryptographically truth-based decentralized manner it monitors all of the activity at all levels of the um the messaging system the bridging system and anything else that ccip or chain-link networks would be used for in regards to cross-chain communication movements of tokens or anything else so the anti-fraud network is a separate parallel oracle network sitting next to each cross-chain um cross-chain bridge that that that comes in the form of a don and its at the most detailed level possible monitoring the activity on both chains whats you know whats happening with the minting burning locking unlocking whats happening with messages are they being delivered whats happening with the aggregated signatures from the chain link networks are there any deviations do those bridges need to be slowed down or sped up what are the risks with those bridges theyre basically scanning for an endless collection of issues reorgs not enough confirmations any number of risks and then what the anti-fraud network does similarly to what risk management and anti-fraud systems do in the real world is they mitigate risk so they manage risk in order to make it so that the chain link messaging protocol um you know the chain link uh programmable bridge ccip messages are all being accepted or not accepted according to the levels of risk that are deemed acceptable by users because once again if you look at any system that moves around value it has a dynamic like this it has a risk management system an anti-fraud system um a department that does this ai that does this and it just makes complete logical sense that if youre going to move critical messages between chains if youre going to move tokens between chains you want an anti-fraud system but in the spirit of our industry and in the spirit of cryptographic truth you want that anti-fraud system to be on a decentralized oracle network you want it to be transparent and you and you want to know what its doing and you want it also to become more and more advanced so this anti-fraud network can grow to extreme levels of advancement possibly even running certain ai algorithms or any number of traditional anti-fraud mechanisms so i think the anti-fraud network is going to be something extremely useful for bridges i think its going to be extremely useful even for users of ccip and i think its actually going to have a life of its own in other categories of fraud management even outside of the cross-chain world this is one of the key innovations that weve been working on um you know as ive said weve been working on ccip cross chain and all of these things for years you can see you know that that this was our goal on the very initial chain link white paper and this is one of those innovations that i think is going to have a very large impact on the ability to go from millions in bridges to billions of bridges to eventually trillions in in in bridges and flowing through something like ccip the next level of the stack is applications and user interfaces fundamentally applications and user interfaces are either about cross-chained apps like celsius that are now interfacing with multiple different chains and need the security guarantees of that or its about just interfaces various apps wallets lending interfaces whatever interfaces that want to efficiently use different contracts on different chains its its its really about enabling all of these places that have large user bases whether thats a wallet an exchange a crypto lending system to interface and get the benefit of various chains and once again this benefits everybody this benefits the user face the user base of those apps and wallets it benefits the the chains because theyre getting a greater user base it benefits the d5 protocols because theyre getting a bigger user base and it benefits our industry because once again the applications people are able to build are just more advanced right and once again thats our goal our fundamental goal is to provide a more advanced version of what our industry provides and to enable greater greater usability for the larger kind of global ecosystem of contracts of finance of insurance of trade and that is what will bring our industry into the future that is what will make our industry about um you know hundreds of trillions of dollars not one and a half or two trillion dollars the fascinating direction that this goes in right the fascinating direction that that that this is really evolving in already now is the direction of the entire worlds value flowing through a chain-link abstraction layer if you really think about it and you think about what do web startups um web 2.0 firms with thousands of employees fintechs and enterprises with tens of thousands of employees want to do in relation to blockchains the answer is they just want to use them they just want to use the blockchain and they only want to use the blockchain really for the reasons um that they can use a contract on the blockchain so what what does ccip do and what does the chain link abstraction layer do it enables people to send commands to various blockchains and even utilize various smart contracts from a single interface this is absolutely fantastic and amazing for the entire blockchain industry for the simple reason that the value locked in web 2.0 fintech land enterprise land can now flow into blockchain networks if before they were stuck in integrations they were stuck in choosing the right blockchain they werent able to integrate with certain blockchains because they were somewhere lower on their list or god knows what reason with a single interface web 2.0 fintechs and enterprises can integrate with all the worlds blockchains you know with chain link being you know announced and integrating with over 100 chains and not only that but they can efficiently use all the applications on those chains thats a next level um improvement of integration and i personally think from our conversations with various enterprises that this is exactly what they need they need to take all of their existing systems all of their existing workflows all exist their existing processes that theyve trained a thousand ten thousand employees on or the all their existing messaging protocols all all their existing routing systems for messages they need to put it into an abstraction layer like chain link and they need to they need it to come out on the other side in a separate standard that allows them to reliably and in a provable manner interact not only with the blockchain but also with the applications on a blockchain so not only will they be able to send the command to a blockchain but theyll be able to send the command to a specific contract personally personally my personal point of view is that this extends even beyond enterprises if we arrive at a world where cbdcs are on a blockchain i personally think that there needs to be a global standard for how those cbdcs interoperate with other blockchain networks and i think thats a far far ways away and i think cbdcs are very early and i know theres a lot of you know controversy about cbdcs but my personal point of view is that if cbdcs are in a blockchain-based format the ability for them to interoperate with blockchain networks and the ability for them to use d5 applications will open the floodgates and will simply allow trillions upon trillions hundreds of trillions of dollars to flow into blockchain networks both public and private so whether um cbtcs are issued on blockchains or not i dont know but if they are issued on blockchains then they will naturally need a solution to both interoperate with various enterprise systems and they will need a solution to interoperate with various blockchain networks and enabling that interoperation will be an extreme positive in the ability to allow trillions of dollars to flow into you know the purchases of bitcoin the use of ethereum defy the use of gaming applications the use of any number of other things fundamentally if the world moves to a blockchain based model whether thats for supply chain data or global trade data or insurance related contracts or cbdc um you know asset ownership or real estate ownership what matters what really matters is that the entire world moves to this cryptographically truth-based model and our role is accelerating the interoperation the access to data the access to off chain compute thats trust minimized for that to happen and i personally think every single time that you know an enterprise integrates into a blockchain any cbdc that starts to interoperate with a blockchain like ethereum or bitcoin or any others is gonna bring a huge flow of value into those environments and and i think that is gonna is gonna is gonna really really change our industry personally so my personal goal is to build these decentralized systems get as much people as many people as i can using ccip building cross chain applications and if cbdcs do go in a blockchain-based way then you know enabling the value from those environments to flow and to interoperate with blockchain systems and d5 applications will be a huge win for everybody this is what um you know the chain link kind of universe of decentralized services looks right now you know theres the validated data universe theres the off chain computation universe now theres the cross chain universe which hopefully ive been able to create clarity about why why thats very meaningful generally speaking i think that this universe is going to continue to grow with identity solutions with with various other capabilities that we see smart contract developers need we we will not be making a blockchain we will not be making d5 products we will not be making the smart contract applications themselves our goal is to accelerate what d5 developers gaming developers insurance developers can do with blockchains and that is fundamentally tied to enabling a greater amount of capabilities in the worlds blockchains by attaching all of these decentralized services around them right so our fundamental goal is to provide price and market data proof of reserves all the worlds data random number generation keepers and various off-chain computation expanded form of forms of computations like fss bridging and messaging capabilities through ccip and various uh programmable token bridge implementations that other people in the community build or whoever builds and to fundamentally augment what blockchain blockchains can build which we see as the critical missing piece and which weve already seen greatly accelerate what um what dfi can do our fundamental belief and what weve seen in practice is that as each cross chain service goes as each service goes live as each decentralized service gains steam and has more oracle networks you know going from tens of oracle networks to hundreds and going from you know tens of users to hundreds of users um those markets just speed up right theres just more useful stuff being built the markets speed up more people build things more people need services so our fundamental cycle is hey heres a great decentralized service build something cool okay u.s developer built something cool wow everybodys using that wow theres more developers that want to build that type of application how wonderful heres more services to do that oh wow we invented a we helped invent an entire category of useful smart contracts how exciting is that by the way we were reinventing what smart contracts do were reinventing their benefit to society were reinventing all these beneficial aspects of what our industry does so thats the ancillary ancillary impact of that i once again believe that we are at the very very very early stages just based on basic arithmetic right this percentage in some of my previous presentations was about two two and a half so the percentage in d5 has grown but as a percentage its still unbelievably low its still less than five percent so if you think that 70 billion in d5 is impressive just another five percent and that doubles right i personally think that thats gonna probably 10x to at least um to at least 50 is going to be in d5 and that means that d5 is is going to be approaching the value of of a trillion in d5 thats thats my expectation thats what were building towards thats why we need to build hyper secure systems hyper reliable systems for whether thats for data keepers and automation random number generation cross chain messaging whatever it is because thats the world that we expect thats the world that were driving towards if you go outside of the blockchain world and you look at the value thats outside of it i mean were not even at the early innings of this like the game hasnt even started like were at like whatever the pregame thing is where theres like some music playing or something were were at were at before the beginning right most people havent even come and taken their seats yet it is unbelievably early if you look at the amount of value that is going to be be transformed into a hybrid smart contract based form i mean were so far below one percent that you know its its not even worth mentioning and once again this is where i think the world is going this is where we want to take the world we want to go to the place where the entire world operates based on cryptographic truth and theres actually industries missing from this diagram the gaming in this industry isnt on this diagram the insurance industry isnt on this diagram the trade finance industry for global trade isnt on this diagram a bunch of other industries like the ad network industry arent on this diagram all of those are going to be powered by cryptographic truth all of them that is where this is going that is what were building for that is what our industry should seek to achieve that is what we want to achieve we want to change the world from a just trust us paper promises mess where people can change things up whenever the hell they want to a cryptographically guaranteed system of math-based truths where nobody can change anything unless its been codified in an encrypted system and that fundamental difference in my opinion will result in this transition and this will be in my opinion one of the largest transitions in history of how the world works and thats why im grateful to be working on it thats why i work on this this way thats why i am into this i am into this because there will be a point in history where people say there was before cryptographic truth and it was after and before cryptographic truth the world was a mess and nothing was predictable and everything was failing every 10 20 years and there were booms and busts and economic crises every couple of decades and after cryptographic truth we entered a new age of productivity emerging market growth reliability and simply just an ability for people to to interact with each other in a predictable way and and and thats why this will happen thats thats why i believe in this its it the value and the reason for this happening is fundamentally there and i i personally see it every single day in the users we work with and after people experience cryptographic truth and use it as a user or use it as an institution or use it as a fintech they dont want to go back it doesnt make sense it doesnt they dont understand even even the the way that the other systems work because it its its its its its like its just a joke to them once once they experience what cryptographic truth actually offers once again theres a virtuous cycle that we need to generate we need to provide all the services we need to provide all the decentralized systems we need to provide all of the messaging protocols we need to provide all the capabilities that are going to take the world into a state of cryptographic truth thats what we do here thats what we care about that will likely result in a in an increase in the amount of services that are used and the in the amount of services that we launch so i dont even think this is the amount of services that chain link networks will run i think this is a relatively small list but i think this is the general dynamic is that we have a virtual site virtuous cycle and a chicken and egg problem that we solve where you couldnt build fraud proof gaming in certain cases without broad-proof randomness and once you could you had fraud-proof gaming and then people came and played it and then other people came and said man i want to make a fraud proof game or you couldnt build d5 without certain types of data and now you have that data and now you can build d5 and guess what people really want d5 because the paper promises of robin hood or wire card or enron or whoever are no longer their only choice and so that that that is what we we need to keep doing we need to keep generating these services with our amazing community our amazing partners our amazing users all of um all of these people that we work with that were that were just you know amazingly grateful to work with in in enabling them and and helping generate a world powered by cryptographic truth so once again im im truly um you know amazed at where we are in history um i think the ability to transition the world from a just trust us paper promises model to uh cryptographic truth mathematically guaranteed world is a once in a lifetime probably once in a mini lifetime opportunity im personally deeply grateful every single day to be working on it and im and im just amazingly impressed by a lot of the other people working on it with me um im also amazed that we finally have the technology things thanks to bitcoin and other subsequent advanced iterations like ethereum and others to finally solve the problem of just trust us paper promises and replace those with cryptographic truths so not only you know is this a unique time in history but we can actually solve this problem in the next few years and um i think thatll be looked on with real real historical significance thats my personal belief i think itll be looked on as something like the internet because just like the internet itll completely reinvent how people work with each other how the world works how people interact with each other whether they have or dont have certain things like bank accounts insurance any number of other things for the reason that cryptographic truth was previously unavailable and it became available now if this is interesting to you and youre youre interested in solving these types of problems and you can see that cryptographic truth is the future of how the world will work i encourage you to contact us we work with people all over the world we work with people um in every you know country in the world we want to work with you to make sure that you know your insight your talent your belief your interest in generating cryptographic truth and making the world work in this way um is something we we can collaborate with you on we we have you know over 250 people right now at shaneland clabs some of the most amazing most impressive people ive ever met in my life and you know were growing rapidly to to help enable this together with many other teams in the chain link ecosystem and i encourage you to join those teams or to join us and and to really examine if changing the way the world works by making it run on cryptographic truth is something that you find interesting and if that is an idea that you find interesting and if you have um you know a desire to work on that whether you work in research or engineering or marketing or sales or operations there are teams in our ecosystem that want to work with you that are growing rapidly due to the demand that that you know the chain link system and networks are experiencing and we want to hear from you and we want to work with you in a very collaborative um fast fast-moving impactful environment because i have to tell you on a daily basis we are now making this happen so if youre thinking about do i want to work in the blockchain industry where do i want to work in the blockchain industry i think chain-link labs and the chain-link ecosystem is a great place to make an impact across many different use cases and many different chains and generally just generate a lot of change in how our industry works and how useful it is to society in general so if youre interested in this um you know please contact us beyond that i i really do want to say that i am deeply deeply grateful to all of the people working on the various chain link network systems and services on ccip on our efforts to make sure that users get um an ability to to in integrate with chain link properly um all the people that inform people about chain link in a correct way and and make sure that people know the benefits of it and and our amazing and and kind of very supportive community as well as the larger kryptos community um i think new appreciation for the benefits and and and the improvements we can bring to the crypto industry um you know im very grateful to be working with all of you and i cant mention everybody by name in this in this talk because theres just too many people and even all the categories are all the specific initiatives but um you know for whatever its worth i think its its important for everybody to know that i and many of the people that i work with are are deeply deeply grateful for the support of everybody that puts forward effort to make sure that our systems are secure reliable provided to important users you know and um and that people are properly informed about about you know what this what this actually does and how it can improve their systems so once again thank you very much to our amazing team at chainlink labs all the teams in the chain link ecosystem the larger chainlink community the amazing you know developers were working on with the pro with on the protocol and all of our amazing um developers and users that give us regular feedback on how to improve im im once again deeply grateful to all of you so thank you thank you for listening to my general explanation here um i hope i hope its been useful for you and im looking forward to seeing uh you know many of you in person and working with many of you on on realizing this vision of a world powered by a cryptographic truth thank you very much you In his monumental Smart Contract Summit 1 keynote, Chainlink Co-founder Sergey Nazarov discussed the inherent flaws of brand-based agreements and explained the superiority of smart contracts—next-generation digital agreements backed by cryptographic truth. Nazarov also announced the mainnet launch of Chainlink Automation formerly known as Chainlink Keepers, a secure off-chain service that enables dApp developers to automate key smart contract functions in a highly reliable, decentralized, and cost-efficient manner. Nazarov culminated his keynote by introducing the Cross-Chain Interoperability Protocol CCIP, a new open-source communication standard that enables interoperability between public/private blockchains, layer-2 networks, and existing systems.0:00 The Significance of Cryptographic Truth 17:13 How Hybrid Smart Contracts Enable Cryptographic Truth 23:47 Understanding Chainlinks Suite of Decentralized Services 38:09 An In-Depth Look at Chainlink Automation 51:49 A Detailed Overview of the Cross-Chain Interoperability Protocol CCIP 1:24:14 How Chainlink Enhances the Functionality of Blockchain Applications 1:32:42 Closing Remarks Learn more about the Cross-Chain Interoperability Protocol CCIP: Check out other presentations from our complete Smart Contract Summit 1 playlist: Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Learn more about Chainlink: Website: Docs: Twitter: Discord: Newsletter: Telegram: Talk to an expert: