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let's talk about the future of etherium

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[Music]

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hi there it's Jackson thanks for

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watching and welcome back to another

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episode I've been getting a few requests

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for this so today I'm gonna talk about

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aetherium and its future what does the

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roadmap look like for the next one two

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three or five years but before we dive

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into that if you do like these videos

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make sure you hit that subscribe button

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below and if you want to support their

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creation go along to patreon.com/scishow

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I'm Jackson where you can become a

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patron and get access to all sorts of

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exclusive perks like early access to

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these videos but the topic of the day is

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aetherium so let's dive right in 2017 as

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most people know was a massive year for

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aetherium it was the year that really

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put a theorem on the map not only

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because of its exponentially increasing

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price but also just usage through smart

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contracts being leveraged for the ICO

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but it's really only early days for

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aetherium icos and kind of digital

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assets still remain it's one primary use

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case right now and we haven't seen

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mainstream adoption just yet but thanks

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to the prevalence of thousands and

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thousands of these ICO smart contracts

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and tokens that are operating on top of

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the etherium main net the etherium

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network is now processing over half a

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million transactions per day for

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comparison's sake if you look at

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something like Bitcoin it's currently

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only processing around 50,000

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transactions per day on its network so

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that's pretty crazy if you think about

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it a theorem is powering around 10 times

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the amount of transactions of the

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Bitcoin network it's pretty busy but as

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

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without its growing pains people started

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to see some slowdowns in the network

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congestion and increasing gas costs

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making it cost upwards of $2 just to

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send a token to somebody in parallel to

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this concerns are being raised about its

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use of proof-of-work as a mining

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algorithm and how wasteful that is in

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terms of electricity as we face climate

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change and lastly the security of the

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whole protocol was just thrown into

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question with a multitude of smart

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contract hacks occurring resulting in

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the loss of hundreds of millions of

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dollars so a theorem has a long way to

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go but they do have a roadmap to address

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some of these concerns and that's what

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I'm gonna cover today if there is

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interesting in comparison to something

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like Bitcoin core in that the etherium

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team aren't shy about making huge

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changes to the underlying protocol if it

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means scalability or the addition of

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much-needed features as such in the past

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new releases of a theorem have actually

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been hard folks of the entire network

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there

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two upcoming releases that will follow

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the same kind of pattern the first being

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called Constantinople and the second

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being called serenity and some of the

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features or changes I'll be talking

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today will work their way into those

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releases but we don't have a lot of

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clarity yeah that's still to be seen so

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the first thing that a lot of people are

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talking about when it comes to the

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etherium roadmap is something called

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Casper as I alluded to earlier aetherium

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relies on proof-of-work for consensus

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this is exactly the same as Bitcoin in

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that you have a bunch of people with a

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lot of computing power pointing that

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computing power at the network making it

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costly if they wanted to try and be a

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bad actor but the etherium team

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including vitalic the creator himself is

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very aware of how wasteful proof of work

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is proof of work burns a lot of

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electricity because it's this constant

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arms race to get more electricity and

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more hardware trying to mine the stuff

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and start from the very beginning

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vitalic and the team were very clear

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that at some point in the future a

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theorem would need to migrate to a proof

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of stake based system now I recommend

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you go back and watch my video about

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proof of work versus proof of stake as I

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said in that video proof of stake really

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

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introduce some severe points of

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centralization and sort of a certain

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degree that's what drove the initial use

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of proof of work in aetherium as the

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proof of stake just wasn't there yet

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Casper is simply the name of aetherium

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--za proach to solving the proof of

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stake problem so there's actually two

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types of Casper implementation that have

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been outlined the first is called FFG or

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friendly finality gadget and the second

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is called cbc or correct by construction

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the first being proposed by vitalic

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himself and the second by a researcher

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called flat Zamfir by telex proposal for

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Casper which is FFG is essentially a

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proof-of-work proof of stake hybrid

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solution so it's not a purely proof of

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stake play and this is kind of the first

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stage of Casper and that it's meant to

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wean people away from proof of work

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mining it's acronym stands for friendly

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finality gadget because while there's

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still proof of work mining going on for

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every block every 50 blocks as a proof

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of stake of voting quorum that basically

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writes in a check point to history so

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FFG still has just regular proof of work

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but every 50 blocks there's a proof of

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stake voting mechanism and when they

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write this check point they're basically

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voting on something which is finality is

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something that is a historical

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representation of history that can't be

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changed this kind of hybrid middle

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ground that we'll have for a little

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while in aetherium is already running on

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a test net and I anticipate that we

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might actually see it coming on the

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Net later in 2018 is part of the

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Constantinople for I believe

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Constantinople is scheduled for

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somewhere around summer in the US or

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maybe a little bit later if FFG just

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

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in Constantinople it'll likely get

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pushed out to the Serenity fork which we

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don't currently really have a timeline

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

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not early 2019 but again FFG is just

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that initial phase to try and win people

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and move people away from proof-of-work

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mining as a reliance for consensus ii

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and full approach being researched is c

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bc or correct by construction this is

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still fairly deep in the research stage

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and it's far from really being

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implemented in a workable way it has a

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long way to go because c bc isn't just

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simply layering on proof of stake it

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really kind of rethinks the whole way

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the consensus protocol operates as such

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

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probably 2019 if that there is a chance

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that if FFG gets rolled out successfully

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they could tweak the parameters of that

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and just keep iterating on the FFG model

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until the CBC approach is really nailed

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because CBC essentially changes the

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whole way consensus works in the

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protocol it's not a change that they

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want to implement lightly and so I don't

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think we're just gonna see it rolled out

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on a whim or quickly Casper's

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implementation of proof of stake is just

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like other proof of state consensus

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protocols in that it does require

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two-thirds of the validators to agree to

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come to consensus to avoid what's being

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dubbed a 33 percent attack though Kasper

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introduces essentially a deposit that

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people that are staking have to put down

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and if they act badly then they lose

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that deposit entirely because of this is

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a pretty strong financial disincentive

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for anybody to become a bad actor

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because of the security deposit being

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required in order to mitigate that

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attack I do anticipate that it'll cost

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quite a lot to be a proof of stake

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validator on an FFG system early on

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we're talking probably hundreds if not a

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thousand aetherium just to become a

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stake I totally understand that because

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the incentives need to be aligned it

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needs to be really expensive to try and

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attack the network but it's gonna be

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really interesting to see how many

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people actually use proof of stake and

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want to become a validator in addition

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to laying down that money proof mistake

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validators always have to be connected

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to the network as well so it'll be

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interesting just to see the adoption of

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that it's really important to note that

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Casper and proof of stake isn't being

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positioned as a scaling initiative it's

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really just a promise they've made since

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the very beginning and something they've

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been saying they wanted to do to get rid

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of wasteful proof-of-work mining there

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are some implications in the way that it

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can make scaling easier in the future

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because you're not relying on miners

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which can often become centralized but I

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feel like this is common misconception

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that Casper

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somehow gonna equal magic aetherium

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scaling and that's simply not the case

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so just wrapping up Casper and proof of

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stake keep an eye out for the hybrid

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implementation in mid to late 2018 and

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the full implementation CBC in my

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opinion will probably come in 2019 if

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not later

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and speaking of scalability let's move

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on and dive into that I've talked about

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this a fair bit on this channel but

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ultimately there is no real simple

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silver bullet solution to scaling

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historically when people have tried to

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scale these decentralized solutions

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they've always introduced some point of

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centralization as a compromise so you

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can look at something like super or

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masternodes or delegated proof of stake

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it's all historically resulted in

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delegating or giving the responsibility

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and voting power back to a smaller group

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of people so it can scale more so that's

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been a big point of contention and a

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hard problem to solve for everybody in

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this space is how do you scale this

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stuff without is making it centralised

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again and some people will say there's a

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threshold where there's acceptable

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centralization like something like

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delegated proof of stake but other than

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I think this is the way that aetherium

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and vitalic think that no we don't want

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to have trusted individuals or entities

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out there we want to maintain a

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decentralized network but try and

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achieve scaling through smart

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technologies and new solutions more

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recently people have moved to a

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narrative where second layer solutions

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are gonna be the thing that helps us

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scale these second layer protocols and

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things like plasma the state channels

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which I'll have to do a video on in the

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future it's been asked for a lot or

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something like the Lightning Network for

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payment channels or Braeden which does

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that on aetherium these are great

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innovative solutions I think there's two

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problems with them first I think the use

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cases are limited because there's a

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certain type of payment relationship

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that has to exist in these second layer

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protocols but outside of this all of

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these second layer protocols still rely

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on the main chain for finality so if you

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want to close out a payment channel and

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move your Bitcoin to someone else in

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Bitcoin you still have to do that on the

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main chain you're reliant on that main

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chain and its scalability and its costs

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the good news with second layer

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solutions like plasma and Radin and all

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of these technologies is that they

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aren't really pegged to the etherium

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roadmap so they can release at their own

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leisure there's a lot of work being done

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on things like plasma I don't think

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we'll see more than an alpha

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implementation of that in 2018 because

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it's such a new cutting-edge technology

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we'll probably see something that's

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actually working on main net sometime in

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2019 just be clear I'm sure that people

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experiment with stuff on main net in

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2018 but I don't think it'll be

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production-ready or easily accessible to

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non developer users but again that

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doesn't get at the root of the problem

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how do we solve scaling on the mange

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and something called sharding is vital

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excurrent proposal for how we do that

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essentially what sharding does is it

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breaks the network into hundreds if not

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thousands of mini block chains and

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they're all independent but the cool

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00:09:00,580 --> 00:09:01,840
thing about these block chains is that

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they inherit the same security model and

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consensus so you're not having to worry

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about independent consensus on every

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single mini block chain these sub block

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chains can scale better because they

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exist for a specific purpose you're not

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00:09:11,950 --> 00:09:13,390
trying to do thousands and thousands of

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different things on the one main chain

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like we're currently doing with

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00:09:16,330 --> 00:09:18,280
aetherium smart contracts other people

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00:09:18,280 --> 00:09:19,570
have already thought about this kind of

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mini blockchain proposal and essentially

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00:09:21,310 --> 00:09:22,720
having a network of these block chains

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or participating in the same consensus

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i've talked about some of these before

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in my cross chain protocols video which

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00:09:27,670 --> 00:09:29,290
i recommend you go and watch but some

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examples are polka dot or the cosmos

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00:09:31,030 --> 00:09:32,710
network if italic wants to implement

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this natively in aetherium and i

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recommend you go and watch this video

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from the beyond block conference in

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taipei where he basically outlined his

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00:09:39,070 --> 00:09:40,930
proposal this is all very new and a

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00:09:40,930 --> 00:09:42,790
three to five year plan that vitalic is

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laying out here so I don't think we'll

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even see an alpha implementation of it

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00:09:45,670 --> 00:09:47,470
in 2018 we'll probably see more written

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specs and research into the idea of

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sharding but I don't think we'll see an

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implementation that anybody can touch

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00:09:52,450 --> 00:09:54,220
until sometime in 2019

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00:09:54,220 --> 00:09:55,870
as for what Fork that'll eventually end

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00:09:55,870 --> 00:09:57,850
up in who knows it'll be sometime far in

344
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the future probably post the Serenity

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00:09:59,680 --> 00:10:00,070
fork

346
00:10:00,070 --> 00:10:01,750
so that's consensus and scaling I think

347
00:10:01,750 --> 00:10:02,860
there's some cutting edge cool

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00:10:02,860 --> 00:10:04,210
technology that's gonna solve these

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00:10:04,210 --> 00:10:05,830
problems but it's still a little ways

350
00:10:05,830 --> 00:10:07,510
out I think the first we'll see is

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00:10:07,510 --> 00:10:10,570
Kasper FFG sometime in 2018 mid to late

352
00:10:10,570 --> 00:10:12,520
2018 most likely but in addition to

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00:10:12,520 --> 00:10:14,170
consensus and scalability there are some

354
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other concerns that people had and

355
00:10:15,610 --> 00:10:17,140
people are working on cool solutions to

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00:10:17,140 --> 00:10:18,370
those first I want to bring up is

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privacy and aetherium operates a lot

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like Bitcoin today and that everything

359
00:10:22,120 --> 00:10:23,620
is open and transparent and you can see

360
00:10:23,620 --> 00:10:25,390
what everybody else is doing some people

361
00:10:25,390 --> 00:10:26,560
don't like this and this is why they use

362
00:10:26,560 --> 00:10:28,780
coins such as Z cash or manera go on

363
00:10:28,780 --> 00:10:30,070
watch my privacy coin video if you

364
00:10:30,070 --> 00:10:31,390
haven't already the good news for

365
00:10:31,390 --> 00:10:33,190
privacy on a theorem is that most of the

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00:10:33,190 --> 00:10:34,690
legwork is actually being done it was a

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00:10:34,690 --> 00:10:36,760
hard fork back in 2017 which introduced

368
00:10:36,760 --> 00:10:38,860
CK snarks so you can use that in smart

369
00:10:38,860 --> 00:10:40,660
contracts CK stocks or zero knowledge

370
00:10:40,660 --> 00:10:42,460
proof or a technology that are used in Z

371
00:10:42,460 --> 00:10:44,770
cash to implement its privacy layer and

372
00:10:44,770 --> 00:10:46,180
so all the fundamentals are actually

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00:10:46,180 --> 00:10:48,010
already in aetherium somebody just has

374
00:10:48,010 --> 00:10:49,570
to start writing smart contracts which

375
00:10:49,570 --> 00:10:51,370
leverage this in a smart way and I

376
00:10:51,370 --> 00:10:52,630
haven't really seen an implementation of

377
00:10:52,630 --> 00:10:54,220
a token or anything that's utilizing

378
00:10:54,220 --> 00:10:56,050
this technology to its fullest just yet

379
00:10:56,050 --> 00:10:57,730
I would anticipate in 2018 we're gonna

380
00:10:57,730 --> 00:10:59,290
see some people start leveraging the

381
00:10:59,290 --> 00:11:01,660
fact that ZK stocks can be used in smart

382
00:11:01,660 --> 00:11:02,950
contracts and we'll see some more

383
00:11:02,950 --> 00:11:03,600
privacy

384
00:11:03,600 --> 00:11:04,829
focused initiatives on top of the

385
00:11:04,829 --> 00:11:06,509
theorem but this will be second layer it

386
00:11:06,509 --> 00:11:08,399
won't be built into aetherium natively

387
00:11:08,399 --> 00:11:09,839
the second concern that a lot of people

388
00:11:09,839 --> 00:11:11,430
have had is just security concerns

389
00:11:11,430 --> 00:11:13,560
around aetherium smart contracts due to

390
00:11:13,560 --> 00:11:15,630
bugs and smart contract code in 2017 we

391
00:11:15,630 --> 00:11:17,490
saw hundreds of millions of dollars be

392
00:11:17,490 --> 00:11:19,319
stolen by exploit is one of the most

393
00:11:19,319 --> 00:11:21,000
notable examples of this was the parody

394
00:11:21,000 --> 00:11:22,290
wallet hack that happened where

395
00:11:22,290 --> 00:11:23,069
everybody that was using the

396
00:11:23,069 --> 00:11:24,690
out-of-the-box multi-sig wallet the

397
00:11:24,690 --> 00:11:26,670
parody basically lost their money this

398
00:11:26,670 --> 00:11:28,380
included a lot of those icos who raised

399
00:11:28,380 --> 00:11:29,880
millions and millions of dollars so

400
00:11:29,880 --> 00:11:31,290
there's a lot of angry people the good

401
00:11:31,290 --> 00:11:32,430
news is there are several initiatives

402
00:11:32,430 --> 00:11:34,380
focusing on how we solve that first

403
00:11:34,380 --> 00:11:35,519
there is actually an attempt to bring a

404
00:11:35,519 --> 00:11:37,230
better programming language to smart

405
00:11:37,230 --> 00:11:38,639
contracts right now that a factor

406
00:11:38,639 --> 00:11:39,990
language for writing etherium smart

407
00:11:39,990 --> 00:11:41,730
contracts is something called solidity

408
00:11:41,730 --> 00:11:43,259
and while it's relatively easy for new

409
00:11:43,259 --> 00:11:44,970
developers to pick up it leaves a lot of

410
00:11:44,970 --> 00:11:45,990
room for these developers to make

411
00:11:45,990 --> 00:11:47,610
mistakes which makes this mock contract

412
00:11:47,610 --> 00:11:49,170
vulnerable is a new smart contract

413
00:11:49,170 --> 00:11:50,579
language being developed called VIPRE

414
00:11:50,579 --> 00:11:52,920
which is an alternative to solidity and

415
00:11:52,920 --> 00:11:54,420
it has a lot more security features

416
00:11:54,420 --> 00:11:55,709
limiting down the methods you can

417
00:11:55,709 --> 00:11:57,360
actually access basically making it

418
00:11:57,360 --> 00:11:58,860
harder for developers to unknowingly

419
00:11:58,860 --> 00:12:00,839
include exploits in their code it's

420
00:12:00,839 --> 00:12:02,190
actually an alpha right now and you can

421
00:12:02,190 --> 00:12:03,420
go and use it that just doesn't seem to

422
00:12:03,420 --> 00:12:04,709
be a lot of people using it right now

423
00:12:04,709 --> 00:12:06,569
but it is being actively developed and

424
00:12:06,569 --> 00:12:07,949
the second approach to smart contract

425
00:12:07,949 --> 00:12:09,149
security and this is kind of the Holy

426
00:12:09,149 --> 00:12:10,800
Grail is something called formal

427
00:12:10,800 --> 00:12:12,660
verification I spoke about formal

428
00:12:12,660 --> 00:12:14,370
verification in the past in my what is a

429
00:12:14,370 --> 00:12:16,139
smart contract video when I was talking

430
00:12:16,139 --> 00:12:17,550
about tezo's they're doing something

431
00:12:17,550 --> 00:12:19,319
similar with formally verifiable smart

432
00:12:19,319 --> 00:12:21,029
contracts and code be formally

433
00:12:21,029 --> 00:12:22,410
verifiable means that code can

434
00:12:22,410 --> 00:12:24,449
essentially be proven mathematically to

435
00:12:24,449 --> 00:12:26,250
do what it says on the box so without

436
00:12:26,250 --> 00:12:27,660
having to run that code yourself and

437
00:12:27,660 --> 00:12:29,610
hunt for exploits basically you can

438
00:12:29,610 --> 00:12:31,230
prove mathematically that the code just

439
00:12:31,230 --> 00:12:32,850
does what it says to use formal

440
00:12:32,850 --> 00:12:34,170
verification though you usually have to

441
00:12:34,170 --> 00:12:36,060
adhere to a very strict syntax in the

442
00:12:36,060 --> 00:12:37,620
way you write your smart contracts which

443
00:12:37,620 --> 00:12:39,120
can be good because it encourages best

444
00:12:39,120 --> 00:12:41,310
practices but you also often have to use

445
00:12:41,310 --> 00:12:42,600
a separate coding language altogether

446
00:12:42,600 --> 00:12:44,730
that is formally verifiable itself

447
00:12:44,730 --> 00:12:46,019
there's a lot of research going into

448
00:12:46,019 --> 00:12:47,790
this but it is cutting edge so I don't

449
00:12:47,790 --> 00:12:49,259
expect we're gonna see a lot of movement

450
00:12:49,259 --> 00:12:51,120
in this in 2018 but it's something to

451
00:12:51,120 --> 00:12:52,529
keep an eye on it's the way I think that

452
00:12:52,529 --> 00:12:54,720
all smart contracts and all code in the

453
00:12:54,720 --> 00:12:56,370
future is gonna be written as well so

454
00:12:56,370 --> 00:12:57,779
that you can verify that something does

455
00:12:57,779 --> 00:12:59,279
what it says it does without having to

456
00:12:59,279 --> 00:13:01,050
go hunt for bugs again the cool thing

457
00:13:01,050 --> 00:13:02,009
about the two things that I just

458
00:13:02,009 --> 00:13:02,910
mentioned is that they can be

459
00:13:02,910 --> 00:13:04,589
implemented completely independently of

460
00:13:04,589 --> 00:13:06,870
the etherium roadmap and any changes to

461
00:13:06,870 --> 00:13:08,880
your theorem protocol itself so if you

462
00:13:08,880 --> 00:13:10,230
combine all the things I've talked about

463
00:13:10,230 --> 00:13:11,699
today that's actually quite a lot of

464
00:13:11,699 --> 00:13:13,439
movement happening on the etherium front

465
00:13:13,439 --> 00:13:14,939
so that's my roundup of the etherium

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00:13:14,939 --> 00:13:16,050
roadmap what's happening with the

467
00:13:16,050 --> 00:13:17,910
protocol itself in the court

468
00:13:17,910 --> 00:13:19,560
but also with the secondary layer stuff

469
00:13:19,560 --> 00:13:21,600
and the tooling around it I think 2017

470
00:13:21,600 --> 00:13:22,620
really set aetherium

471
00:13:22,620 --> 00:13:24,060
up so that all the eyes are on its

472
00:13:24,060 --> 00:13:25,260
development and now it's really up to

473
00:13:25,260 --> 00:13:26,430
the development community behind

474
00:13:26,430 --> 00:13:28,230
aetherium basically take it forward and

475
00:13:28,230 --> 00:13:29,970
prove that it can scale in a secure way

476
00:13:29,970 --> 00:13:31,260
so what do you think does the future of

477
00:13:31,260 --> 00:13:32,790
aetherium look bright let me know in the

478
00:13:32,790 --> 00:13:34,170
comments and also let me know if there

479
00:13:34,170 --> 00:13:35,310
was anything that I've missed that's on

480
00:13:35,310 --> 00:13:36,630
the roadmap that you're really excited

481
00:13:36,630 --> 00:13:37,890
about if you found this video useful

482
00:13:37,890 --> 00:13:39,660
please slam that like button it really

483
00:13:39,660 --> 00:13:41,610
helps out and like I said earlier hit

484
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the subscribe button so you get weekly

485
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also when I do my Sunday live stream if

487
00:13:46,740 --> 00:13:48,060
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488
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support the creation of more videos just

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like this one jump over to patreon calm

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00:13:51,930 --> 00:13:53,910
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495
00:14:01,440 --> 00:14:02,430
hope you found this helpful

496
00:14:02,430 --> 00:14:04,080
until next time I'll see you later

497
00:14:04,080 --> 00:14:13,390
[Music]

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00:14:13,570 --> 00:14:15,440
you

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00:14:15,440 --> 00:00:00,000
[Music]