Successfully reported this slideshow.
Your SlideShare is downloading. ×

NEAR Protocol at the Decentralized Summit 2019

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Loading in …3
×

Check these out next

1 of 22 Ad
Advertisement

More Related Content

Slideshows for you (17)

Similar to NEAR Protocol at the Decentralized Summit 2019 (20)

Advertisement

Recently uploaded (20)

NEAR Protocol at the Decentralized Summit 2019

  1. 1. www.nearprotocol.com January 2019 Next Generation Blockchains: Usability, Scalability and Real Business Models Erik Trautman Head of Operations @ NEAR Protocol
  2. 2. www.nearprotocol.com “ “I want to develop on a platform that is great for my users, is easy to use and allows me to actually make money on my app.”
  3. 3. www.nearprotocol.com 3 Where we are today We haven’t crossed the first chasm to early adopters and we’re in the #shutupandbuidl phase of the market Today?
  4. 4. www.nearprotocol.com 4 But what should we be #buidling???
  5. 5. www.nearprotocol.com 5 About Me I’m Erik Trautman and I run operations at NEAR Protocol, a scalable developer-friendly blockchain on a mission to bring the technology to a billion people. I also care deeply about creating great products, educating people and building rich ecosystems. My background is in markets, open-source software development, startups and education. And general nerdery.
  6. 6. www.nearprotocol.com 6 About YOU ● A JavaScript developer who is curious about getting into the next wave of blockchains. ● A DApp developer building on an existing chain but deeply aware of the problems with current systems. ● An entrepreneur with a business to build trying to figure out when the tech will be good enough to build a “real” business. ● A product person who wants to understand your toolkit. ● An enthusiastic observer of the industry trying to spot upcoming trends.
  7. 7. www.nearprotocol.com 7 Blockchain primitives (aka “what it gives you for free”) 1. Identity: Everyone gets an account which gives them a bucket of stuff to hold onto, sort of like a safety deposit box that lives on the chain. 2. Transactions: The idea of transferring tangible and intangible goods is fundamental to blockchains. 3. Cryptography: Chains only exist because of cryptography and they expose it to anyone’s use.
  8. 8. www.nearprotocol.com 8 Blockchain IDENTITY primitives Everything on the chain gets assigned to an account. 1. Accounts: Accounts can represent a person, company, app or even a thing (eg refrigerator). 2. Ownership: That account has total control of its money, its digital goods and its data (which can represent real-world things like identification) 3. Login/Reputation: Every account’s transaction history gives it reputation which you can tap into. In today’s web, developers have to custom code these.
  9. 9. www.nearprotocol.com 9 Blockchain TRANSACTION primitives Everything on the chain gets assigned to an account. 1. Direct: Anything can transfer directly between accounts without a central authority (allowing peer-to-peer marketplaces or transfers) 2. Instant: Financial and digital-good transactions have near-instant finality. 3. Micro: Negligible fees make high frequency and/or small amounts okay. 4. Conditional: It’s easy to add logic like escrow.
  10. 10. www.nearprotocol.com 10 Blockchain CRYPTOGRAPHY primitives Cryptographic primitives give anyone easy ability to: 1. Verify Activity: Did you do a specific thing or have specific data on a specific date? Eg supply chains, ad activity, transfers. 2. Verify Process Integrity: Is this “random” algorithm actually fair? 3. Privacy: Hide who did the activity or what was the decision This is because it’s easy for anyone to use their account’s private key to “sign” transactions or data.
  11. 11. www.nearprotocol.com 11 Despite the upside, today’s platforms leave us basically stuck
  12. 12. www.nearprotocol.com 12 Blockchain Supply and Demand We have problems on both sides of the ecosystem: DEMAND: What problems need to be solved so people actually want to use this? SUPPLY: If those problems can be solved, what do we need from the platform to deliver on that promise?
  13. 13. www.nearprotocol.com 13 Problems of DEMAND Developer Experience: 1. Stop making us learn new languages and paradigms 2. Stop making us use 6 different tools from 6 different teams. 3. Stop making us learn using out-of-date blog posts End-User Experience: 1. Stop requiring users to touch gas! 2. Stop requiring up-front signups! Business Models: 1. It’s very painful to Implement existing models (eg SAAS) 2. Token-based business models (ICOs) are dumb/illegal
  14. 14. www.nearprotocol.com 14 Solutions for DEMAND Developer Experience: 1. Let developers use the languages they know like TypeScript 2. Strong and high quality tooling with some unity 3. A strong, diverse and engaged community End-User Experience: 1. Hide transaction fees by making them free while holding tokens. 2. Make it easy to have “delayed onboarding” via acct transfer. 3. Make it easy for devs to handle gas on behalf of users. Business Models: 1. Make permissioning for subscription payment simple 2. Let developers get rebated for the fees they generate.
  15. 15. www.nearprotocol.com Supply is all about SCALABILITY. Why? Let’s start with a question: What does it take to generate a BILLION dollars of value on the blockchain? That’s not even much! The Internet generates $4 TRILLION per year. 15 Problems of SUPPLY
  16. 16. www.nearprotocol.com Let’s say 10% of the value generated will go towards platform costs. The Apple App Store takes 30%. So our blockchain will get $100M per year in revenue. To earn $100M, we need to generate approximately 100 billion transactions per year at $0.001 per Tx cost. Ethereum is today $0.003. That’s 3,171 average tps. Ethereum can do 14. EOS can do 3000. 16 Problems of SUPPLY
  17. 17. www.nearprotocol.com We obviously need a safety margin to prevent congestion so practically (and Ethereum is a decent example of this) we want 3-5x greater-than-average capacity to handle swings. So we ACTUALLY need a capacity of 10,000tps just to generate a measly $1B of value for our users. And that’s literally just 0.025% of the actual Internet today. No platforms today with actual decentralization can come close to that. 17 Problems of SUPPLY
  18. 18. www.nearprotocol.com The only viable approach is scaling on the blockchain layer that increases linearly with network size. Most approaches today only scale in a constant or time-bounded (Moore’s Law) fashion. This is why sharding is such an important advance… it actually scales linearly and infinitely. 18 Solutions of SUPPLY
  19. 19. www.nearprotocol.com Lots of the next-generation chains are focusing heavily on tackling one side or the other. For example, many are very tech-heavy teams tackling supply-side scaling. Others are user-oriented teams tackling demand-side UX. None are focusing on business models that make developers money. 19 That’s where the ball is going.
  20. 20. www.nearprotocol.com You know the problems. You see the types of solutions we need. You know that lots of people are focusing on certain aspects. ...so you should have what you need to get in the game. 20 Stay in the loop
  21. 21. www.nearprotocol.com To stay informed along the way, check out our work at NEAR Protocol. We’re tackling the supply side with sharding and the demand side by implementing all of the solutions previously mentioned, including helping developers make money. You can learn more at https://nearprotocol.com, including being able to play with our TestNet. We have great blog posts at http://medium.com/nearprotocol and a great community on discord at http://near.ai/discord 21 Stay in the loop
  22. 22. www.nearprotocol.com Thank you! erik@nearprotocol.com

×