3. • Non-state issued digital assets
reached a combined market
capitalization of $3 trillion in
November 2021
• Same as ASEAN total GDP of the
year 2020
Yoshi 3
Digital Assets - Rapidly Growing in Value
4. • Mar 09 2022: U.S. : Executive Order By President
• April 04 2022 : U.K.: CryptoAsset Tech Hub by Treasury Dept.
• June 07 2022 : Japan: Basic Policy by Cabinet
https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/
https://www5.cao.go.jp/keizai-shimon/kaigi/cabinet/2022/2022_basicpolicies_ja.pdf
https://www.gov.uk/government/news/government-sets-out-plan-to-make-uk-a-global-cryptoasset-technology-hub
Yoshi 4
In response to Digital Assets
7. • Price can increase due to monopoly
• Your data belongs to Platformers
and they exploit your data
(Data Lock-in)
• Even U.S. President’s data can be
erased, without consent, by a company
• Centralisation leads to
Single Point of Failure
Yoshi 7
What is wrong with Web2?
8. • Your Avatar
• Your Identity
• Your Work space
• Your Money/Wallet
Yoshi 8
Solution : Blockchain allows you to own your data
Why web3?
Isn’t better for you to own the data in Metaverse?
10. Value is concentrated at the shared protocol layer
TCP/IP, HTTP, SMTP, etc.
https://www.usv.com/writing/2016/08/fat-protocols/ Fat Protocols by Joel Monegro
Value
Concentrated
dApp
Value
Concentrated
(Getting Thicker)
Yoshi 10
The Shared Protocol Layer starts taking over Application Layer
11. Server - Client Peer to Peer
1993
Data Store(Block)
+
Computation(Consensus)
Blockchain
File Sharing
2009
1960s
Is Turing
Complete ?
No (No Computation) No (No Loop)
Ethereum
Blockchain+VM
Data Store(Block)
+
Computation
Quasi (Cannot apply
Halting problem)
2015
Blockchain is evolving toward decentralized “Global State” Computer (Not Final Stage Yet)
Solidity
BitTorrent 2001
Yoshi 11
Evolution of Blockchain (The shared protocol layer getting thicker)
12. Example : NFT on Twitter to show your ownership
If icon is not circle but hexagon,
you can check the NFT details
https://twitter.com/renegademasterr
Yoshi 12
NFT (Non Fungible Token)
13. NFT image is stored where ?
{"name":"Gucci Grail Ape #6083",
"description":"In constant pursuit of precious wonders that go beyond the confines of time and space,
Creative Director Alessandro Michele takes a trip <<Deleted>> new era of creativity across dimensions.",
"image":"ipfs://QmNbaHcmm2M4Webh4vKScfwrDPJk6dm7SMq7eFjFFmZFjy",
"attributes":[
{"trait_type":"+ Gucci Look","value":"Love Parade"},
{"trait_type":"+ Gucci Color","value":"Yellow"},
{"trait_type":"+ Parent Collection","value":"Bored Ape Yacht Club"},
{"trait_type":"Ape - Background","value":"Purple"},
{"trait_type":"Ape - Eyes","value":"Robot"},
{"trait_type":"Ape - Fur","value":"Trippy"},
{"trait_type":"Ape - Mouth","value":"Bored Unshaven Pipe"}]}
IPFS : Inter Planetary File System
(P2P addressing by Hash Value of file )
https://opensea.mypinata.cloud/ipfs/QmdXrNRHrFJqiPFH5bNQrtJyKHst
DXw5pyaf8xXMsMbNEs/112211544200375202480128
Hash Value
of Image
Can be stored in IPFS (OffChain)
Can be “url” to a server (OffChain)
Can be XML for “Scalable Vector
Graphics(OnChain)
Yoshi 13
NFT (Non Fungible Token)
15. https://ethstats.net/
Computation is Not Scalable with current Ethereum
(Gas Limit is the max price user willing to pay for transactions/smart contracts)
Yoshi 15
What is Stopping the Move ? - Lack of Scalability
16. It can take more than 10 hours (600min) to confirm on one transaction with Bitcoin
(Comparison: Visa transaction is 1600 per sec in comparison)
https://www.blockchain.com/charts/avg-confirmation-time
Yoshi 16
What is Stopping the Move ? - Low Speed/Throughput
17. • Treasury Example
• If A and B approves, then coins can be sent to X
• A has privilege to revoke B’ s access
• If A sent 10 coins to B, only then B sent 10 to X
• These rules can be written as Smart Contract and automated fully(This can lead to DAO –
Decentralized Anonymous Organization)
• The automation by Smart Contract will remove the need of “Trust” or “Intermediaries”, called
“Trustless”
• Original meaning of “Trustless” is, “not deserving trust” negative meaning, but in crypto, can be
taken as positive meaning to improve robustness of system by removing the need of “Intermediary”
• Once Smart Contract is executed, it cannot be modified
Yoshi 17
What is Stopping the Move ? - Smart Contract is
Irrevocable, once executed
18. • Sharding is the process of splitting a database horizontally to spread the load. In an Ethereum
context, sharding will reduce network congestion and increase transactions per second by
creating new chains, known as “shards.”
• Creating layers, such as layer1 , layer 2 etc.
e.g. Bitcoin off-loaded to lightening Network as L2
• Layer 2 = can be application specific
• Layer 1 = handling block as source of truh
• Ethereum is moving from PoW to PoS
https://ethereum.org/en/developers/docs/scaling/
https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/
Layer1
Layer2
Yoshi 18
Blockchain Evolution for Scalability
