We share the theses from speaking of Vitalik Buterin, the young legend of IT, the creator of Etherum, who has come to Moscow to meet with Russian blockchain community.
Sberbank Technology has become a partner of the Open Speech in Skolkovo where Buterin shared his views of the future of Blockchain and cript industry – the themes which are actually interesting for all World Financial Group.
About the future of Blockchain and Etherum:
- I was the first person who didn’t believe in Etherum
- The most advanced state in research and testing of Blockchain are: England, Russia and Singapore
- Bank of England has released some white paper, that means Blockchain’s possibility, and even has done an internal test of the ether’s usage as a state cryptocurrencies
- The largest clusters of Etherum nodes are in: North America, Canada, Europe, Moscow; there are also clusters in Asia;
- The community in the world and in Russia grows quickly. The quality of the projects increases too, people understand the Blockchain and its peculiarities deeper;
- Since last year real projects are created, that is new scripts which create value, new characteristics are found;
- cryptography and economic constraints are used in the cryptoanalytical consensus. It limits the degree of a person’s participation and rewards or punishes right/wrong part;
- Proof of work is the first consensus of the algorithm that runs the Blockchain. The idea is: there is a network with 1000 computers. They manage the network, blocks and transactions. To participate in the block’s development, each computer need to use 100% of its time and solve math problems. By themselves, the tasks are useless, they are designed to prove that a person has a unit of computational power. Roughly speaking, that 1 computer = 1 computer, not 1 million virtual machines of a single hacker. It takes a lot of energy and electricity;
- From Proof of work we want to come to Proof of stake. The level of a person’s participation in the system depends on its estimated power which he can provide and the number of coins which he puts into the system. If you have an ether, the system will give you some right to participate. That’s interesting, because then there is no need to have a real hardware, spend a lot of electricity. The participation fee can be decreased to 10-100 times, you can become a validator and verify transactions from a laptop or smartphone (if it has enough ether);
– Next year the miners will have nothing to do;
- The next stage (in a few months) of Ethereum — metropolis. It will be much easier for smart contracts to integrate with the cryptographic algorithms;
- After the story of The DAO, I realized that the code is not infinitely strong principle. In some extreme cases it is necessary to take extreme measures;
- Every hack can’t be solved by hardfork. To avoid hacks it’s too necessary to raise the level of security of smart contracts and the Protocol;
- An important benchmark of Etherum’s success — the scalability of the platform;
- Capitalization of Ethereum is based on the faith in the idea of the blockchain and the developing ecosystem;
- There are several approaches to provide interoperability between blockchain systems, such as BTCRelay (the connection between bitcoin and Ethereum networks), the principle of Hush Timelock contract (the transaction simultaneously takes place in both blockchain systems) and smaller approaches. Everyone wait for use case, i.e. the necessity of the usage of two different blockchains;
- Ethereum is a complete open source. Software with the open source is useful but it has always been difficult to monetize. The feature of open source is that it helps many people, but only a little bit. In this sense, ICO can change the situation, Ethereum exists because of it;
- Courses on Ethereum: online course on blockchain and cryptocurrency of Stanford, our blogs and articles, wiki. I advise you to watch the existing blockchain projects, and if they have an open source, copy it from there and try to make something of your own;
– Putin knows about the blockchain and it is the peak of the hype;
- Plasma is a new solution to the scalability of Ethereum. The basic idea is to move from a model in which all transactions are recorded to the blockchain (this is the bottleneck), to the structure of the bilateral exchange of messages confirming the transfer of value.
About myself and the team
- Now I have no time to watch the projects. I’m immersed in work over a platform that each participant has the opportunity to work with it. I think this is the best assistance to any blockchain project;
- That part of the community Ethereum, which is engaged in the development of the Protocol, grows. Initially, only 3 persons worked over Ethereum, the chief of whom was me, but soon the team will reach the stage when people will be able to work for themselves. I need less and less;
- In the beginning we thought of doing a commercial organization. If we did, the first participants of the project now would have a billion dollars. At the result we decided to go the other way: to make public and outdoor blockchain, a neutral platform which is available to the world;
- Ethereum Foundation is a non — profit organization that finances Ethereum, pays the developers. The first Fund was assembled by crowdfunding and had 30 thousand of bitcoins, which were enough for the next 2 years. Then we had 6 million units of the ether, which we used as a reward to the programmers for their help in development. Now we have 3 million units of ether, which we either directly paid to the programmers for their work or sell on the exchange.
About ICO
– If your team is scam, please don’t do ICO;
- The ICO should do if: the project will bring real benefits to the token, will play an important role (e.g., as the scalability of the business), the Economics of the project works and has the logic;
- Now many companies, going out to ICO, don’t understand the logic and Economics of the business model. The token should be filled with commercial sense, otherwise this is gonna turn into a bubble;
- Cryptobanks — a dangerous thing due to the volatility of cryptocurrency. If five years ago I promised to give 5 bitcoins to somebody, it would be difficult;
- You need to make an investments under an idea, but not under a command. To implement this idea you need to plug some commands by funding them in installments for a certain step and based on the results of the team. In fact it’s a competition
Translation made by the project https://cashpokerpro.io
