Cardano Number 1
Summary
TLDRCharles Hoskinson, founder of Cardano, discusses his observations on technology, innovation, and collaboration in the blockchain space. He emphasizes the importance of staying open to learning from other projects, like Sui, and the need for collaboration across blockchain ecosystems. Hoskinson highlights Cardano’s strengths, including its decentralized governance, compositional design, and innovations like Ouroboros and Hydra. He stresses that Cardano’s evolution is cumulative, built for long-term growth. Hoskinson also addresses misconceptions about Cardano’s technology and reaffirms his commitment to the project and its future potential.
Takeaways
- 🌍 Cardano's founder comments on tribalism in the cryptocurrency ecosystem, highlighting the need for collaboration rather than division.
- 📊 He acknowledges the technological advancements of other projects like Sui, particularly in research and innovation, but emphasizes that this does not indicate disloyalty to Cardano.
- ⚡ Cardano has made significant progress with innovations such as the Narwhal and Tusk protocols, Hydra, and various partner chains.
- 🔄 The project continues to focus on decentralized governance, introducing SIP 1694 and hosting workshops globally to finalize its on-chain government.
- 🛠️ Cardano has a strong technical foundation, boasting the best network stack, consensus architecture, and programming model, with cumulative improvements over time.
- 🚀 Innovations like Plutus V2 and V3, as well as initiatives such as Babel fees, have made smart contracts faster, cheaper, and easier to build on Cardano.
- 🎓 Cardano prioritizes academic rigor with 223 research papers backing its innovations, emphasizing long-term development over short-term hype.
- 💼 There is a need to focus on marketing and branding Cardano’s unique selling points (USPs) to promote the ecosystem’s growth.
- 🔗 Cardano believes in blockchain interoperability, where blockchains can trade and collaborate instead of competing against each other.
- 🎯 The founder asserts that Cardano will become the largest cryptocurrency ecosystem through the collective efforts of its decentralized community over time.
Q & A
What is the speaker's main message regarding tribalism in the blockchain ecosystem?
-The speaker emphasizes that tribalism is self-destructive and prevents learning and growth. He advocates for objectivity and collaboration across blockchain projects to benefit the entire ecosystem.
Why does the speaker praise the Sui project despite being involved with Cardano?
-The speaker praises the Sui project because it incorporates real research and innovation, especially from a researcher named George Denis. While the speaker isn't involved with the project, he recognizes its contributions to the blockchain space, particularly in high throughput and low-latency protocols.
How does the speaker address concerns about Cardano being outdated technology?
-The speaker rejects the notion that Cardano is outdated, highlighting that Ethereum is now trying to implement features Cardano has pioneered, such as on-chain governance and non-custodial staking. Cardano's design decisions have been cumulative, leading to a stable and secure system that continues to innovate without radical changes.
What recent technological advancements within Cardano does the speaker highlight?
-The speaker mentions advancements such as Hydra for faster transactions, the development of the Laos protocol, improvements in Plutus for easier application development, and decentralized wallet recovery in collaboration with other ecosystems like Ripple and Hedera Hashgraph.
How does the speaker compare Cardano’s approach to decentralization with other blockchain platforms?
-The speaker argues that while it’s easy for other platforms to prioritize speed and centralization, Cardano has focused on decentralization and on-chain governance, which he believes is more sustainable and true to the ideals of cryptocurrency.
What is the significance of the Constitutional Convention that the speaker mentions?
-The Constitutional Convention will be held in Argentina, where 63 delegates will ratify Cardano’s constitution. This is part of Cardano's on-chain governance process, aiming to formalize a decentralized governance structure that will guide the platform’s future development.
What is the speaker’s response to criticisms about the pace of Cardano’s growth and user base?
-The speaker acknowledges that Cardano's growth in areas like DeFi and daily active users has been slower than desired. However, he takes pride in Cardano not relying on Ponzi schemes or meme coins for growth, instead focusing on building substantial and sustainable projects.
How does the speaker view Cardano’s current position in the blockchain industry?
-The speaker is confident that Cardano is in a strong position with the most decentralized government and continuous innovation. He believes Cardano will eventually become the largest cryptocurrency ecosystem, although it will take time and collective effort.
Why does the speaker emphasize the importance of collaboration between different blockchain platforms?
-The speaker believes that the era of 'blockchain vs blockchain' is ending, and collaboration between blockchains will be more beneficial for the industry as a whole. He encourages working together to solve common problems and innovate across ecosystems.
What are some of the major upcoming projects or innovations within the Cardano ecosystem mentioned in the transcript?
-The speaker mentions several major upcoming innovations, including the Laos protocol for faster transactions, Mithril for light clients, sidechains for interoperability, and further development of Cardano’s on-chain governance, which is set to be formalized by the Constitutional Convention.
Outlines
🌍 Update from Europe and Reflections on Innovation
The speaker provides an update from London, reflecting on his recent travels through Italy and Switzerland. He talks about upcoming workshops and preparations for a constitutional convention in Argentina. He comments on technology, specifically the importance of looking at projects like SWE in a non-biased way. The speaker stresses the self-destructive nature of tribalism in the blockchain community and advocates for collaboration. He shares insights on research by George Denis and the advancements in protocols like Narwhal and Tusk, highlighting Cardano's ability to learn from and improve upon innovative ideas.
🚀 Cardano’s Progress and Compositional Growth
This paragraph discusses the cumulative progress and technological improvements within the Cardano ecosystem. The speaker highlights the decentralized governance model, the ongoing work with partner projects, and the advantages of Cardano's compositional growth. He emphasizes the benefits of the network’s design decisions, such as the programming model with Plutus and its evolution through different versions, the introduction of Hydra, and the implementation of new protocols like Laos. The speaker also mentions Cardano's involvement in decentralized wallet recovery efforts with other blockchain ecosystems and addresses misconceptions about Cardano's capacity and technology.
🏛️ Decentralized Governance and Global Constitutional Efforts
Cardano's decentralized governance and recent advancements in governance protocols are outlined here. The speaker highlights the introduction of the largest decentralized governance system in the industry and ongoing global efforts to ratify a Cardano constitution. He mentions Cardano’s momentum with workshops, constitutional conventions, and node updates to enhance the ecosystem further. The speaker contrasts Cardano's approach to fully decentralized governance with other projects that rely on centralized authorities, emphasizing that Cardano has established itself as a real cryptocurrency with aspirations to revolutionize economic, political, and social systems worldwide.
🔍 Growth Challenges and Future Ambitions
The speaker acknowledges the challenges Cardano faces in marketing and branding as it aims to grow. He mentions the need for the Cardano community to market itself as a cutting-edge and safe ecosystem to build on. He also compares Cardano to other cryptocurrencies and defends its principles, stating that only Cardano and Bitcoin have truly escaped their founding teams' control, while others remain reliant on them. He stresses that Cardano is built with long-term sustainability in mind, focusing on a decentralized government and the continuous evolution of the protocol in collaboration with its community and stakeholders.
🌐 Cardano's Unique Position and Industry Innovations
The speaker explains how Cardano differs from other projects by creating the largest decentralized ecosystem without falling into stagnation or anarchy. He emphasizes the community-driven development of Cardano and ongoing discussions about a new, more inclusive node architecture. The focus is on maintaining decentralization while fostering innovation. He outlines Cardano’s dedication to deliberate and considered advancements rather than flashy marketing tactics, underscoring the goal of changing the world's economic, political, and social systems for the better. The achievements so far include numerous innovations, from decentralized governance to cutting-edge smart contracts.
💡 Innovations, Challenges, and A Vision for the Future
The speaker details Cardano’s extensive list of innovations, including extended UTXO, Plutus, decentralized governance, and various side-chain implementations. He mentions specific technologies like Babble fees, zero-knowledge applications, and Hydra. He also emphasizes Cardano’s seamless upgrades with the hard fork combinator and the support for various programming languages. Despite facing challenges with growth and recognition, Cardano is steadily progressing with a long-term vision. The speaker highlights that the cumulative development of Cardano is unmatched in the industry, emphasizing the deliberate nature of the ecosystem's evolution and its vision of remaining decentralized and inclusive.
🤝 Collaboration Over Competition
The speaker advocates for collaboration between blockchain networks rather than competition, arguing that there is more to gain by working together. He emphasizes Cardano's vision of connecting blockchains for the benefit of all ecosystems rather than dividing the community. The speaker discusses how different teams within Cardano are committed to advancing the project collectively and building an ecosystem that supports millions of users and diverse innovations. He reassures the audience that he is committed to the long-term success of Cardano, with the ultimate goal of making Cardano the leading cryptocurrency ecosystem through principles and steady progress.
Mindmap
Keywords
💡Cardano
💡Decentralization
💡On-chain Governance
💡Ouroboros
💡Hydra
💡Extended UTXO
💡Plutus
💡Narwhal and Tusk
💡Compositionality
💡Babble Fees
Highlights
The founder addresses criticisms of being disloyal to Cardano when discussing other projects, emphasizing the importance of evaluating technology objectively.
Cardano is focusing on compositionality and momentum, building on existing design decisions for years and not deviating from the core programming model.
Cardano has pioneered several technologies like Hydra, partner chains, and one of the fastest single-shard protocols called Ouroboros Leios.
Collaboration across ecosystems is emphasized, as seen with projects like decentralized wallet recovery with Hedera Hashgraph, Ripple, and others.
Cardano’s innovations include Mithril for light clients, Hydra for state channels, and Narwhal and Tusk protocols for high-throughput performance.
The founder believes Cardano will become the largest cryptocurrency ecosystem in the world, citing its long-term strategy and focus on decentralization and good governance.
The project’s evolution has resulted in significant improvements like a 10x reduction in transaction costs, while keeping the core programming model intact.
Ouroboros Leios, the new consensus protocol, aims to be the fastest single-shard protocol, balancing speed and decentralization without sacrificing security.
Despite criticisms, Cardano remains the most decentralized ecosystem with one of the largest decentralized governance structures in the industry.
The on-chain government has been implemented, and discussions for a new node design called Cardano 2 are underway, highlighting ongoing innovation in the ecosystem.
Cardano’s approach to side chains promotes interoperability and ensures that multiple ecosystems can collaborate seamlessly.
Cardano is one of the few projects that has successfully transitioned away from reliance on its founding team, achieving true decentralization.
The ecosystem has conducted four workshops globally, and soon 63 delegates from 50 countries will participate in a Constitutional Convention in Argentina.
Cardano’s identity stack, Atala PRISM, is integrated with Hyperledger and offers one of the best-in-class identity solutions for blockchain.
The founder emphasizes that Cardano’s innovations are built on research and formal verification, with over 223 research papers backing its progress.
The project’s slow but steady progress is seen as a strength, allowing for sustainable growth and cumulative improvements over time.
There’s a push to increase marketing and promote Cardano’s unique value propositions, with discussions around effective KPIs and growth strategies.
With the launch of Midnight, Cardano will be connected to almost every major blockchain ecosystem, fostering greater collaboration and integration.
Cardano has developed unique technical features like the hard fork combinator, allowing for seamless upgrades and continuous improvement.
The project’s treasury, valued at nearly $600 million, is governed on-chain, allowing the community to fund projects that align with Cardano’s goals.
The founder advocates for more praise and recognition of other blockchain projects, believing that the future is one of collaboration rather than competition.
Cardano's long-term ambition is to change the world's economic, political, and social systems through a decentralized and sustainable ecosystem.
Transcripts
hello from cold gloomy
London here after being in Italy and
Switzerland almost over with my little
tour of Europe uh here for some
workshops for the midnight people uh so
I'll be home soon and then after that
down to Argentina to set everything up
with Malay and the rest of the gang for
December for the Constitutional
Convention I did want to make a quick
video because you know from time to time
I comment on technology and projects in
the ecosystem as a whole and people are
so radicalized and polar that they
anticipate the founder of cardano to
always just say negative things about
the things that people do and if I say
anything positive there's this immediate
impression that I'm abandoning cardono
or somehow uh being disloyal to the
project first that tribalism is
intrinsically self-destructive and
second it prevents us from learning and
growing together as an ecosystem so
recently I made some comments about swe
you know I've been looking at the
project um with an objective eye and the
reason why is that some of the
technology comes from George
Denis I've known George for almost a
decade and we were one of the first
teams to implement RS coin a protocol
that he wrote with Sarah Mikel John uh
years ago that we used as a precursor to
some things with cardano uh before the
main net launched uh so we've always
tried to find a way to collaborate with
George but he's always been busy in U
UCL and we have our team up at uh
University of Edinburgh we're all in the
same academic circles there and
everybody reads and cites each other's
papers so he wrote a paper called
narwhal and Tusk um which is one of the
fastest bft protocols ever conceived
incredibly High throughput sixf figure
TPS low latency it has tradeoffs as does
red belly and others uh but George a
real researcher and if you look at the
design ofu there is real research and
there's a real team uh that's behind it
not commenting on the distribution the
tokenomics how they've launched all
those things I haven't looked at those
things and nor do I care about them I
don't hold any s and I'm not involved
with the project in any way so I
dispassionately look at these things to
say is there any interesting Innovation
uh that has occurred because it's
important for us as an ecosystem to see
what we can collaborate on work with as
you know we joined d uh and we're
working on decentralized wallet recovery
um with hadera hashgraph
uh with ripple and um also ALR uh as
ecosystems because it's a universal
problem that all of us are involved with
there's the stuff that's floating around
that cardano's old technology we only do
one transaction per second and you know
best days are behind it there's no
innovative ideas there what's ironic
about it is that ethereum is desperate
to try to be cardono they're trying to
figure out how to do onchain government
they're trying to have liquid
non-custodial staking they're trying to
figure out how to bolt on utxo um
there's a lot of things we did right in
2018 2019 2020 and Beyond uh that did
take some time to get out the gate but
now we're enjoying the benefits of them
you see the thing is cardano is about
compositionality and momentum when we
make design decisions as an ecosystem we
build on top of those decisions for
years to decades to come and we don't
regress or have to radically change the
core design of the system plutus came
out and is a very tight system from
expressiveness then V2 got better V3 got
better and then a family of languages
came we didn't radically change the
programming model or the security model
but now it's exponentially easier to
write applications on cardano and
they're much faster and cheaper in fact
10 times cheaper in many cases than they
were just a few years ago without any
deviation from the core programming
model which also was hand and glove buil
for Technologies like Hydra which is
starting to become into enough maturity
to actually start doing useful things as
well as where we want to go as an
ecosystem with partner chains and Laos
Laos will be the fastest Single Shard
protocol around what's called a one
minus Delta protocol you can't really
get much faster than that without
sharding the system and then trading off
decentralization in
security so in terms of prototyping or
Force Paris the Sip is written we nearly
done with the prototyping of it and um
all of that's being turned over to an
RFP which I believe modus create is
currently bidding on the ones who
implemented um Genesis also known as
tweak because modus create acquired
tweak well the exact same thing is
underway with oror Laos now and we have
6.8 full-time
Engineers uh working on the Innovation
team right now for Laos that will
continue to scale because it's such a
high priority inside the ecosystem
and all of that is sitting over at
intersect we're leading the primary push
but there are other companies namely
Sunday Swap and well type that are also
involved in the prototyping and more to
come as this becomes more critical so
the point is that that plus the fact
that we are still the most decentralized
and we've just turned on the largest
decentralized government in the entire
industry is a demonstration of how
cardano is starting to speed up and how
card O's design decisions are cumulative
they're building on themselves layer
after layer we have the best network
stack we have the best consensus
architecture the best programming model
and with the launch of midnight we'll be
connected to pretty much everything in
the industry as an ecosystem other
Frontier Technologies like Babble fees
allow people to pay in the assets that
they care to pay in and for markets to
form with that and we will Embrace zero
knowledge in ways that is very difficult
for account based models to do so
rolling up outputs of utxo is much
simpler uh than rolling up account
systems and less security trade-offs as
well and we're Best in Class there so
cardano is one of those things where you
can go away for a few years you come
back and it's exponentially better and
that's what makes it so cool that
alongside the hard for combinator means
you have seamless upgrades in the system
it's very easy to build high performance
protocols if you are willing to
sacrifice decentralization
and it's very easy to move very quickly
as long as you're willing to trust a
central authority to do that on your
behalf it is much harder to do things in
a fully decentralized way with an
onchain government cardano chose that
road because it's a real
cryptocurrency and its aspiration is to
be the dominant platform for the
economic political and social systems of
the world it's been pioneering for a
long time and that's why it's been
around for seven years 24 hours and
seven days a week it also has a
deflationary monetary policy and low
inflation with the uh consensus
algorithm or Boris we learned a lot from
Bitcoin and we built on top of those
ideas there is a lot of personal
distaste in certain ecosystems and
communities for me a lot of
misinformation and a lot of just
straightup lies that people tell but it
doesn't really matter because cardano's
here is going to be here tomorrow in the
next day and the next next day and the
point is that we are number one because
we figured out the recipe a lot of what
we've been doing in 2024 is sharing that
recipe and getting that recipe
institutionalized so that custodians
across the world will ensure that it is
protected for the decades to come
already there's a vigorous debate
occurring about the budget process
already there are more than 500 people
who have signed up to be DS in addition
to the Dozen plus people service on the
Constitutional committee and all of the
details for Chang plus one are nearly
finished and we are on schedule as an
EOS system uh for node version 10 which
will enable Chang plus one and there's a
high probability the onchain government
will initiate it before the end of the
year or early quarter one of next year
subject to their will because they're in
charge in the process of doing that we
then have a full onchain government and
the Constitutional Convention is on
schedule more than four workshops have
been held across the world and soon to
be 63 in 50 countries with 63 delegates
being voted and alternates being voted
on to descend to Argentina to ratify a
constitution to then be completely
ratified on chain there's no
cryptocurrency in the world that's had
the audacity to try to do things in
parallel and at this scale that we've
been doing that's just a
fact and do doing so with no help from
the VCS and a lot of people uh playing
unfair games yes there are certainly
some problems and yeah we need to grow
in certain areas and that's one of the
discussions right now in the onchain
government especially with marketing
branding and growth and I'm one of the
loudest voices saying that the time has
come for us as an ecosystem to market
the USPS of cardano and to get cardano's
brand out there as the most cuttingedge
state-of-the-art ecosystem and the
safest ecosystem to build on and to grow
cardano at a steady and mature rate
there needs to be some discussions of
what growth means and what kpis are
meaningful that's the point of a budget
process is that it puts money down on
the table to match intent leaders have
to step up and do great things but the
point of decentralized governance is to
give space for leaders to do
so only cardano and Bitcoin have truly
escaped their founding teams the rest of
them are reliant upon them in some way
or fashion that's just a fact as well
and that's what makes cardano so special
is that we have created the largest
decentralized brain the largest
decentralized government and unlike
Bitcoin we have not succumb to
stagnation and Anarchy where there's no
way to evolve the core protocol quite
the contrary there's a desire to speed
up the rate of innovation there's Aire
to to innovate now there's a lot of
things that we have to relax as an
ecosystem there's already a lot of talk
about a new version of the node one that
is less Reliant upon hascal and more of
a polyglot nature there's also
discussions about alternative clients as
well again these are things that are
being discussed in the budget process
and I'm in favor of a cardano 2 in terms
of a node architecture that relies upon
all the lessons we've learned over the
last seven years and to build this in
the most inclusive way possible we've
already begun key conversations with
members of the cardono ecosystem who are
outside of input output who have been
building infrastructure like the TX
pipes and DC Sparks about serving in an
architectural role to discuss a new node
design this is something I'll talk about
more detail in my presentation down in
Argentina where I talk about the new
road map and where we can go and what we
can do but again this has to be endorsed
funded and approved by a nonchain
government that that's the difference
between us and those who Aspire for
decentralization we've achieved it it's
done in a considered and deliberate way
where no one is really left behind
that's the magic of who we are and where
we're going it's not sexy it's not
flashy we don't wake up with these huge
announcements that surprise everybody
the one more thing on a stage like Steve
Jobs instead it's the tireless work of
thousands of people people across the
world many of which have never met each
other who all just want a better world
and that's why they contribute cardano
is here to change the world's economic
political and social systems and it's
built purpose handing glove for that
expressed reason and we've truly
innovated in every place you can look
from how you measure decentralization
with the Edinburgh decentralization
index to how governance works with SIP
1694 to how one should approach like
clients with mithril to how people
should approach State Channels with
Hydra to how side chains needs to work
in a way that promotes interoperability
with partner chains to one minus Delta
protocol which is oroborus Laos to the
entire formalization of the consensus
logic of our industry as a whole leading
to liquid non-custodial staking built
upon the ethos that Satoshi set out the
realization of the dream of color coins
with cardono Native assets the expansion
of the accounting model that Satoshi
invented with extended utxo allowing us
to do proper smart contracts in a utxo
system and derive all the benefits of
them including the verifiability and
determinism and local predictability of
resource
utilization the seamless upgrades with
the hard for combinator the utilization
of literate agda so it allows us to have
formal specifications that extract both
hll and soon rust code the poly nature
of cardono smart contracts with
typescript Aken which is functionally
looks a lot like rust and Haskell for
high Assurance applications mean you
pick your own adventure these are all
amazing Innovations not to mention
Catalyst in the 1900 funded projects
that it has and the soon to be $600
million onchain treasury at the consent
and deliberation of an onchain
government you pick the Dozen plus
wallets that are Community developed and
all the amazing standards there
and a t prism now hyperledger identist
which gives us the best-in-class
identity stack these are undeniable
Innovations compromising comprising
excuse me millions of lines of code with
thousands of Engineers who have touched
and conceived of these ideas over the
last seven years the project has been
live and nine years
total backed by 223 research papers
there's just simply put nothing in the
industry that even comes close to the
cumulative effort of this endeavor
because we sought out to be different to
do things differently to think
differently and think from first
principles about what is required for us
to change the world and make those
changes stick and not get co-opted by
large corporations the banking industry
or the convenience of
avarice especially if the founders are
afflicted by it and I'd like to believe
we've been successful now I fully agree
with you we don't get enough credit and
we're not growing as fast as I would
like but all things considered to go
from nothing to a multi-million person
ecosystem in nine years is pretty
impressive especially when it's more
valuable than the vast majority of
companies in the world which is a pretty
impressive thing if you think about it
no there's not 30,000 daily active users
there are 1.4 million wallets currently
delegating yes the defi site needs to
grow and it has not gotten sufficient
love from the VC side of the house nor
have we enjoyed the majority of the mem
coin surge that's occurring but I do
take a little bit of pride in the fact
that we don't have to rely upon Ponzi
schemes for growth let's be honest here
the vast majority of the meme coins in
the industry succumb to this the only
reason they're valuable is lots of
people are buying them and the goal of
the Insiders the early adopters is to
dump a new entrance hoping they can get
out before it collapses that by its very
definition is a Ponzi scheme the vast
majority of projects on cardano are
trying to build things and do things
like Singularity net and World mobile as
examples iagon is another there are
dozens of incredible entrepreneurs every
day waking up working on interesting
things for accumula total of more than
300 projects that have launched and
about a thousand that are underway
various forms and function in fact it's
hard to track all of them and it's hard
to know all of them because the
ecosystem continues to grow and evolve
again I'm not saying we're done in fact
this is just the beginning there's a lot
to do but it's being done just like how
the parent protocol is being done vast
majority care about decentralization the
vast majority care about proper
incentives the vast majority care about
good governance and the vast majority
care about working together to get
things to done which is why when we look
at the pool of DS and members of
intersect the members based organization
which hosts many of the governance
conversations that are occurring off
chain are made up by members of people
building projects actively on cardono
that's an impressive thing and I'm proud
of that so I will praise from time to
time good science and good engineering
effort and interesting protocols that
come
across but that doesn't mean in any
sense word that I'm no longer on the
cardano train let me be very clear here
cardano I do believe will become the
largest cryptocurrency ecosystem in the
world it's going to take some time and
it's going to be done by the collective
efforts of millions if not tens of
millions of people working diligently in
their own interests in their own
projects over the coming years and
decades I'm young guy and many of you
are too we have the time to get it done
because we're getting it done with
principles and that's what this has
always been about and it is very
important that we learn from others it's
very important that when we see
interesting approaches or unique
projects that we praise them and we try
to find ways to work with them and
integrate with them because after all we
can trade with each other the age of
blockchain versus blockchain is coming
to an end and the age of blockchains
trading with blockchains is starting to
begin we have so much more to gain
working together as an industry than we
do working apart as an
industry and I've always believed that I
think tokenomics and Cults of
personality and the Very nature of
social media at times can get in the way
of this but overall I think we are
working our way in this particular
direction so I just figured I'd make
this video very quickly little tired
that's okay we're pushing and uh just
tell you guys that I'm here to stay I
love every part of this and uh thank you
so much for listening cheers
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