Many Chains, Many Tokens, One Ecosystem

Sunny Aggarwal, presents Cosmos: An Internet of Blockchains at a Blockchain at Berkeley workshop on February 19th, 2019. View event details: https://cosmos.network/events/bab-one

1. Many Chains, Many Tokens, One Ecosystem Sunny Aggarwal , Cosmos Research Scientist February 2019 | Berkeley, CA

2. Many Chains, Many Tokens, One Ecosystem Sunny Aggarwal , Cosmos Core Developer February 2019 | Berkeley, CA Evolution of Human Coordination

3. 1. Villages and Kingdoms

4. 2. Empires

5. 3. Nation/City States

6. Many Chains, Many Tokens, One Ecosystem Sunny Aggarwal , Cosmos Core Developer February 2019 | Berkeley, CA Economic Integration without Political

7. Free Trade Zones

8. Containerization

9. Institutions

10. Internet

11. Generation 1

12. Generation 2

13. Generation 3

14. Generation 1 Generation 2 ✓ Sovereignty ✓ Efficient state machines ✓ Customizability ✓ Interoperability of Dapps ✓ Easier to develop ✓ “1 click” deploy

15. Generation 1 ✓ Sovereignty ✓ Efficient state machines ✓ Customizability ✓ Interoperability of Dapps ✓ Easier to develop ✓ “1 click” deploy Generation 2 Generation 3

16. ✓ Ability to connect multiple separate networks of servers into a single network of networks. ✓ Ability to scale in terms of throughput and geography ✓ Ability to tolerate and recover from failures ARPANET ABRIL 1971 Goals for the Internet

17. ✓ Ability to connect multiple separate networks of servers blockchains into a single network of networks blockchains. ✓ Ability to scale in terms of throughput and geography ✓ Ability to tolerate and recover from failures Goals for the Internet of blockchains

18. Generation 1 ✓ Sovereignty ✓ Efficient state machines ✓ Customizability ✓ Interoperability of Dapps ✓ Easier to develop ✓ “1 click” deploy Generation 2 Generation 3 ✓ Scalability ✓ Fault Tolerance

19. Proof of Work

20. Generation 1 ✓ Sovereignty ✓ Efficient state machines ✓ Customizability ✓ Interoperability of Dapps ✓ Easier to develop ✓ “1 click” deploy Generation 2 Generation 3 ✓ Scalability ✓ Fault Tolerance ✓ Sustainable

21. Generation 1 ✓ Sovereignty ✓ Efficient state machines ✓ Customizability ✓ Interoperability of Dapps ✓ Easier to develop ✓ “1 click” deploy Generation 2 Generation 3 ✓ Scalability ✓ Fault Tolerance ✓ Sustainable ? Privacy

22. ✓ Sovereignty ✓ Efficient state machine ✓ Customizability ✓ Interoperability ✓ Easier to develop ✓ “1 click” deploy ✓ Scalability ✓ Fault Tolerance ✓ Sustainable Generation 3

23. Many Chains, Many Tokens, One Ecosystem Sunny Aggarwal , Cosmos Core Developer February 2019 | Berkeley, CA The Tools

24. Tendermint Cosmos SDK IBC Proof of Stake Ethermint Monetary Experiments Cosmos Hub Sample Zones Low Level Libs Alternative Frameworks Voyager

25. Tendermint

26. Tendermint BFT Consensus 1) Propose

27. Tendermint BFT Consensus Polka 2) Pre-vote 1) Propose

28. Tendermint BFT Consensus Commit Polka 2) Pre-vote 1) Propose 3) Pre-commit

29. 1) Propose 3) Pre-commit

30. Tendermint BFT Simplified and improved PBFT Provable liveness in partially synchronous network Safety threshold: ⅓ of validators’ power 1-block finality Consistency-prioritizing Rotating proposer Tendermint 2.0 in progress

31. Tendermint BFT

32. Sovereignty Efficient state machine Customizability Interoperability Easier to develop “1 click” deploy ✓ Scalability ✓ Fault Tolerance Sustainable Tendermint BFT

33. Formal specification with proofs of safety and liveness: https:// arxiv.org /abs/1807.04938 Tendermint Diagram: http:// bit.ly /2Nfl9Vb Casper vs Tendermint: https:// bit.ly /2Iu4Uno Tendermint BFT Learn More!

34. Tendermint Core First production grade BFT consensus engine Written in Go Handles all p2p and consensus logic Can handles 100s of validators at sub-5 second block times

35. Maximum throughput ( tps ) Bitcoin 3,2 Ethereum 15 Ethermint 200 Tendermint ~14.000* Visa 56.000 * Depends on the number of validators and block size Throughput

36. Scalability Vertical scalability : How much tps can a single blockchain archive. Has a cap Horizontal scalability : Several separate and specialized chains that interact efficiently through a network Vertical Horizontal

37. Blockchain Stack Consensus Layer Application Layer Networking Layer Application Layer Networking Layer Consensus Layer ABCI Tendermint Core Application Layer

38. SECURITY & NETWORKING PLATFORMS APPLICATION PLATFORMS SOCKET PROTOCOLS CGI ABCI Tendermint Your State Machine Tendermint Core

39. Networking Layer Consensus Layer ABCI Networking Layer Consensus Layer ABCI Chainmint Ethermint EVM

40. Sovereignty Maintain sovereignty of each zone according to their values and interests Each zone has its own validator set Higher security than pure economic incentives alone There is a continuum between private and public Sovereignty

41. ✓ Sovereignty Efficient state machine ✓ Customizability Interoperability Easier to develop ✓ “1 click” deploy ✓ Scalability Fault Tolerance Sustainable Tendermint Core

42. Tendermint Core Docs: https:// tendermint.com /docs/ Performance Testing Results: https:// bit.ly /2NKCW9n Ethan Buchman’s Masters Thesis: https:// bit.ly /2S9PyoF Tendermint Core Learn More!

43. Bonded Proof of Stake

44. Why Proof of Stake?

45. Proof of Stake Basics Use bonded tokens as resource limiter for determining voting power Eliminates wasteful energy consumption of Proof of Work Public permissionless system Solve nothing at stake problem through slashing and unbonding periods

46. Delegation Allow any token holder to be a staker by delegating to a validator Skin in the game Automatic reward distribution Solve stickiness issues through features such as instant redelegation and validator commitments

47. Multi Token Model Specialized staking token for security Similar to ASIC security Allow fees to be paid in any token to massively improve user experience

48. ✓ Sovereignty Efficient state machine Customizability Interoperability Easier to develop “1 click” deploy Scalability Fault Tolerance ✓ Sustainable Proof of Stake

49. Cosmos Proof of Stake Deep Dive: https:// youtu.be /XxZ04w2x4nk Multi Token Model Paper: http:// bit.ly /2V6YZXI Efficient Token Distribution Paper: http:// bit.ly /2SReAhO Proof of Stake Learn More!

50. Cosmos SDK

51. Sovereignty Smart contracting systems should be used for contacting, not Dapps Most production Dapps don’t need a turing complete VM Application Specific Blockchains

52. Sovereignty Reduces attack surface Efficiency gains due to lower computational overhead Fine tune to optimize for your application Application Specific Blockchains

53. Sovereignty ✓ Efficient state machine ✓ Customizability Interoperability ✓ Easier to develop “1 click” deploy ✓ Scalability Fault Tolerance Sustainable Cosmos SDK

54. Cosmos SDK Tutorial: https:// cosmos.network /docs/tutorial/ Cosmos SDK Repo: https:// github.com /cosmos/cosmos- sdk The Case for Application Specific Blockchains: http:// bit.ly /2SMiCI7 Cosmos SDK Learn More!

55. Low Level Libs

56. Sovereignty Improvement to Protobuf standard Naturally support interfaces instead of OneOf Deterministic Generate proto files from Go code Amino

57. Sovereignty Self-balancing AVL tree All values are stored at leaves Immutable with snapshots and caching All operations log(N) No hashing keys required IAVL+

58. Sovereignty Cryptography library with built-in Amino support Abstracted multisignature pubkeys BGLS Aggregate Signature implementations BGLS verifier in EVM Crypto

59. Sovereignty Efficient state machine Customizability Interoperability ✓ Easier to develop “1 click” deploy ✓ Scalability Fault Tolerance Sustainable Low Level Libs

60. Go-Amino Repo: https:// github.com / tendermint /go-amino IAVL+ Repo: https:// github.com / tendermint / iavl BGLS Repo: https:// github.com /Project- Arda / bgls Low Level Libs Learn More!

61. Alternative Frameworks

62. Fork of the Cosmos SDK maintained by IOV Simpler version of the SDK with more limited features Second Go Framework IOV Weave

63. Potential Future Frameworks Chainmint Ethermint

64. Sovereignty ✓ Efficient state machine ✓ Customizability Interoperability ✓ Easier to develop “1 click” deploy Scalability Fault Tolerance Sustainable Alternative Frameworks

65. Lotion JS Repo: https:// github.com / nomic-io /lotion Weave Repo: https:// github.com / iov -one/weave Alternative Frameworks Learn More!

66. Ethermint

67. EVM client built using the Cosmos SDK Will be fully Web3 compatible Can deploy existing Ethereum dapps / smart contracts Can add your own precompiles Working with TurboGeth team to build and optimize Ethermint 2.0

68. Sovereignty ✓ Efficient state machine ✓ Customizability Interoperability Easier to develop ✓ “1 click” deploy Scalability Fault Tolerance Sustainable Ethermint

69. Ethermint DevCon Presentation: https:// youtu.be /VCLbS1Oks8A Ethermint Repo: https:// github.com /cosmos/ ethermint Ethermint Learn More!

70. Inter Blockchain Communication

71. Sovereignty Application-based sharding is logical as it minimizes bottleneck You only have to be a full node for applications you care about Horizontal Scalability

72. Sovereignty Equivalent to Application Layer in Internet stack Different types of packet structures/handling protocols Token Transfers Non Fungible Assets Data Agoric ERTP Packet Types

73. An Asset Transfer User Story

74. Practical use cases in (a fully formed) Cosmos Network. You can take your $BTC from the #Bitcoin blockchain and move it to a casino zone to play some poker. ✨Wow!✨ You won some money! 🤑 Since you don't want your friends to witness your gambling habits🤐 you move your BTC...

75. ...to a zero knowledge zone with similar semantics as # Zcash , sending your "hard" earned BTC back to yourself over a zero-knowledge tx . 🍬Sweet! Now you have some extra 💰 to take your friend up on a bet. You bet your friend that your # cryptokitty won't give birth to...

76. ...an orange kitten 🐈 within 6 months. Since this is a long time scale and $BTC is still volatile, you decide against using it as the payout vehicle. You instead choose to use a stablecoin like $DAI to do the job. So you send your BTC out of the ZK zone to a @0xProject zone...

77. ...where you use the DEX to trade your 💱BTC for DAI. 📨"You've got DAI." Time to place the bet 🎲 You want it to be trustlessly arbitrated 🔐 meaning no middleman allowed! 🙅 For your one-time bet, you opt for opening up a # smartcontract because it doesn't make sense...

78. ...to spin up a #blockchain (i.e. zone) for one bet. So you send your DAI over to an @ ethermint zone from the 0x zone to put the bet in the smart contract that your friend already wrote. The smart contract locks 🔒 up both your $DAI, set to expire in 6 months if!!!

79. your kitty doesn't birth an orange cryptokitten , in which case, your friend gets the $DAI. If your kitty does indeed conceive an orange 🐈 within that timeframe, you send your 🐈 from the cryptokitty zone to the smart contract and receive your payout💰 GAME ON ♠️♥️♣️♦️

80. Sovereignty Efficient state machine Customizability ✓ Interoperability Easier to develop “1 click” deploy ✓ Scalability Fault Tolerance Sustainable IBC

81. ZK Summit IBC Presentation: https:// youtu.be /cjfYThAk06w EdCon IBC Presentation: https:// youtu.be /enPetIum0d0 IBC Webinar: https:// youtu.be /m_b_Noe70Vc IBC Learn More!

82. IBC Spec: https:// github.com /cosmos/cosmos- sdk /tree/develop/docs/spec/ ibc Peg Zones: http:// bit.ly /2V41p9D IBC Learn More!

83. Cosmos Hub

84. Sovereignty Hubs can be thought of as ISPs in the Internet of Blockchains Minimizes the number of IBC connections to N rather than N 2 Act as a secure medium to prevent chains from double spending each other Hubs

85. @cosmos

86. Sovereignty Governance Name Service Peg Zones Leased Security Additional Services

87. +2/3 validators have signed secp256k1 signature Mint ERC20 Photons waits for 100 blocks Logs events

88. Sovereignty Efficient state machine Customizability ✓ Interoperability Easier to develop ✓ “1 click” deploy Scalability Fault Tolerance Sustainable Cosmos Hub

89. CESC Interchain Scaling Presentation: https:// youtu.be /D4Q-gA_kPrU PolkaDot vs Cosmos: https:// forum.cosmos.network /t/ polkadot -vs-cosmos/1397 Cosmos Intro: https:// cosmos.network /intro Cosmos Hub Learn More!

90. Voyager

91. Sovereignty Efficient state machine Customizability ✓ Interoperability Easier to develop “1 click” deploy Scalability Fault Tolerance Sustainable Voyager

92. Voyager Repo: https:// github.com /cosmos/voyager Voyager Live Unstable Demo: https://voyager- staging.interblock.io / Voyager Learn More!

93. Sample Zones

94. Monetary Experimentation

95. Hard Spoons Monetary Policy UBI Experimentation Local Currencies Crypto Fiat Stablecoins

96. ✓ Sovereignty ✓ Efficient state machine ✓ Customizability ✓ Interoperability ✓ Easier to develop ✓ “1 click” deploy ✓ Scalability ✓ Fault Tolerance ✓ Sustainable Generation 3

97. @cosmos @sunnya97