 Thank you everyone for making the time today. I'm really excited to join the Hyperledger Global Summit and tell you more about what Consensus is building on the top of Hyperledger Bezu and specifically what we are building in the context of retail CBDCs. So my name is Charles DOC. I'm the Managing Director for Consensus in Epoch and Consensus is one of the largest blockchain engineering companies focusing on the FLM ecosystem. You probably know some of our products such as Consensus Corum which is built on the top of Hyperledger Bezu but also products such as Infura, Metamask or Truffle. So during this talk we will be talking about some market insights about CBDCs. I will give you also our views on digital currencies in a retail context. I will be sharing some of our thoughts and work around scalability and CBDCs which are very important in the case of retail CBDCs as well as looking at how privacy can be implemented in these retail CBDCs. And we're going to end up with a little bit of a demo and illustration of how this platform looks like. So I really encourage you to stay until the end and prepare some questions. I'm happy to take questions at the end of the talk. So let's start with a few market insights. So as you know blockchain is disrupting the payment infrastructure. It is disrupting many different kind of parts of the financial ecosystem and the way we interact in a digital way. But payment is clearly the first on the line. So you see giants such as Visa, MasterCarn and many others which are starting to face some contenders from the stablecoin industry. So stablecoins are essentially privately minted money. They come a little bit earlier than CBDCs but whatever is happening with the private stablecoin is also something to consider ahead of the CBDCs. And CBDCs are clearly adding a similar momentum. They're not at the same pace. They involve central banks, they involve a lot of policies, a lot of experimentation because for a government moving your money on blockchain is a big decision and you want to make sure everything is in order from the legal point of view of your CBDC but also in terms of implementation, rollout planning and also resiliency. So if you refer to the research from BIS today there is about 80% of central banks working on CBDCs. Among them a smaller part are working on the retail part per se at least in implementation of POCs. Definitely the big leader and the elephant in the room is Mail and China with the retail CBDC which is really super actively getting closer to a full launch. But there was also a few experiments and some other release in Vietnam or in the islands between the US and South America. So clearly a topic which is hot and a lot of people at work on this topic. So if you look at digital currencies looking at the retail kind of architecture today you see on my left of the screen the way the settlement and the authorization of payments are organized today. So you see multiple different stocks of services, infrastructure providers and when you move this architecture and kind of optimize it with a blockchain base and an hyperledger Bezu you are essentially able to compress and create a CBDC ledger where all these players will be able to interact but at the end of the day the experience for the eWallet providers or the end users should remain the same not to disrupt the experience but really improve the experience and improve firstly the back office part of this payment industry. So there is two use cases in CBDCs and in the payment systems the wholesale payments so you see some initiatives built on Ethereum GPMorgan, DBS and Temasek here in EPAC and precisely in Singapore but there is also many other initiatives which are really focusing on the retail payment part of the CBDC digital currencies conversation and depending who you are so on my right of the screen retail CBDC to trigger a migration from the legacy infrastructure CBDC based CBDCs cannot be only faster they should be bringing some additional value and unique value which can be replicated in the traditional legacy systems so programmable money, decentralized finance decentralized identity, interior probability as well as monetary controls are features which we are working very actively with our customers to implement and built on Consensus.com on the top of Hyperledge or Bezu Consensus has been involved in CBDCs for quite some time now back in 2018 we've already started to work with the EMS and the South African Reserve Bank and today in 2021 we have multiple engagements in parallel with Societe Generale we are working with Banque de France here in Hong Kong together with BIS PBOC, HKMA, CBUE and the Bank of Thailand the project and CBDC bridge is doing very well and keep expanding as well as in Australia with the Reserve Bank of Australia we are building a syndicated loan platform powered by CBDCs so multiple projects global footprint and this exposure leads us to some learnings and a stack which has been evolving and fitting all these different type of use cases we've been exploring with central banks so if we focus now on digital currencies essentially moving your CBDC to a blockchain based platform and precisely here on an Ethereum platform you are solving the risk of double spend and this risk of double spend is really one of the initial proposition of blockchain systems and it brings a digital currency type of operations much more efficient and cheaper to run as well as auditable in real time and working 24-7 so that's really the core proposition on the top of this proposition of moving your CBDCs on Ethereum you get the opportunity to easily start a new type of generation of money which are the programmable money as well as the composable finance and that really builds and these kind of features are really built out of the core specifications and capabilities of Ethereum when you deploy with high-poly job as well for example so we have at consensus some key principles we acknowledge that there is a lot of unsolved questions around CBDCs and we are early in this type of products but we believe that CBDCs should be digitally native money as the distribution comes in two tiers that's what we observe mostly and what we support with our solution we believe in CBDCs which are token based and that's very important I think this is really the type of architecture which is the closest to the existing architecture of money and the closest in terms of experience also for the users we build mostly a recommend building a platform which have public and private capacities so it's the perfect fit with high-poly job as as we all know we like also to build systems which are interchangeable as well as building on Ethereum where we have the most experience and where the stack and the ecosystem around the stack is the most inspiring and supportive so let's go into more details how do we develop this CBDC infrastructure on the top of high-poly job as at consensus it comes into four different forms so we usually start building a permission network where all the different players can be connected and run their nodes should they be central banks or banks or some other type of participants so after having these kind of foundations on the top of it we come and add an ERC-20 smart contract which essentially will be managing the issuance and the redeem of CBDCs and connected to a FIAT an AMP if it's required privacy is important every CBDCs evolve into jurisdictions where there is data privacy and privacy regulations and money should respect that so to comply with these type of requirements we deploy a zero knowledge ERC-20 smart contract which essentially enable the banks and the central banks to communicate among themselves on the base of a zero knowledge proof to make sure that the privacy the privacy is respected and communication between one bank to central banks will not be visible to other participating banks then later we've got a fourth part which is a roll-up smart contract so the roll-up smart contracts are helping essentially in matching the requirement of a retail CBDC having a high throughput we're going to come back to this a little bit later in the presentation and having a focus on the ZK capabilities of the architectures as well as the roll-up features so the way we design this retail CBDCs in a simple way you've got a private network with the central banks, you've got the commercial banks depending on the requirement of the central banks we might also include in this CBDC ledger payment service providers and then business applications are built on the top of this architecture and base and foundation so this can be existing applications which come and connect simply via API or new type of applications which are more blockchain based and natively integrate with the blockchain so if you look at a simple high level flow of CBDC transfer here between Bob and Alice there will be an application which can be an existing digital payment application but capable of managing and dealing with CBDCs this application will craft and sign a transaction the transaction will be broadcasted via the bank or the PSP node on the network get finality and then essentially broadcast back this finality and updates the records back to Alice so it's a very traditional type of transactions management you could add authorization depending on your use case context so let's focus on scalability which is clearly a topic where few people are able to deliver and focus on right now we've seen over the past two years a lot of experimentations on CBDCs in a whole cell context so whole cell means a smaller number of transactions but transactions are of larger value so you play with a network and a setup of transactions which is not always requiring a very high scalability but in the context of retail CBDCs you're talking about millions of accounts and a need for an infrastructure which is really capable of I would say managing such a demand and stress so at Consensus we built what we call the layer 2 solution so it sits on the top of the original blockchain and this solution is called Sumo so Sumo is actually following the role of framework with the Consensus framework and what it allows is to essentially create a sidechain where you can get a very large number of transactions way faster Consensus and we've been able to experiment 18,000 TPS transactions per seconds on the base of 100 millions of accounts so this Sumo chain is using a BFT type of Consensus and common plugs very elegantly on the top of Ethereum based permission networks when it comes to privacy we also work in design products for the different projects we are involved with and what we want to achieve with privacy is to keep transactions private and making sure that the participants can transact with one another but also keep the level of privacy and if you look at the context of retail CBDC you can think of central banks communication with central banks communications between commercial banks communication between banks and final users and communication between final users so it brings the number of of use case and the number of situations you need to be able to handle very large so there is one option to build privacy on Hyperledger Bezu is following the architecture of what we call privacy groups it's one option but there is also another option which is more around what we call the zero knowledge proof which allows us to essentially generate transactions and out of this split between the different transactions being able to ensure the continuity and the validity of a transaction but without revealing any value of the transaction neither with the receiver so this zero knowledge proof solution is the second solution which we implement in the context of retail CBDCs it's both solutions of private groups and ZK are treads of private groups are a good fit for CBDCs and have probably have been experimented more and probably ready a little bit more ready for production ZK is still a new a new type of privacy management but it's very promising and progressing extremely quickly so depending on the context we will deploy a different type of privacy solutions for our solutions so different type as I said they are used trade off between the privacy groups and the ZKs so let's look a little bit more on how this platform for CBDC is called codified payment which is an application layer built on the top of the CBDC foundation blockchain works so you could the platform has capabilities of managing central banks and even the end users so you can as a central bank here for example where CBDCs so you want to eventually to connect this platform with your original fiat or custody solution to make sure you mint what you own and then there is capabilities to directly for holders so it could be for example a bank a commercial bank starting to essentially trade and swap with the central banks their fiat or getting an allocation by the central banks through some other mechanisms so you see here two types of users between the direct bank the direct holder of the bank and the issuer of the central banks so all the history of the transactions is recorded as well as the finality of the transactions depending on the requirement and the use cases there is different type of approvals and approval scales and methodologies to make sure that there is all the governance in place around such a strategic piece of infrastructure for central banks and their banks if we go lower to the retail the retail users of the CBDCs you can obviously as a bank starting to send money directly so in this illustration we show some user interfaces but obviously the system is ready for API directly so you can have directly machines issuing and automating all this process but for the purpose of illustrating the transactions I'm presenting to you today the UI and of the platform so you can imagine for example having an end user receiving from his bank some of his CBDCs in this context here we are using consensus metamask but this could be any other type of ERC compatible type of wallet and then the end user direct holders could also start to have peer to peer exchange of money so it could be between users or user processing the payment and it's a very very similar experience as any digital payment where you can use a QR code or use an address you will know that we are here on a private network so there is no gas fee the transactions are essentially free of charge and an instant if you look at the requirements from central banks also should they use the platform for wholesale CBDCs or retail CBDCs we also make sure that we can ensure that there is all the audit trades as well as the compliance features required for such projects should you be a bank if you need to document your activities but also central banks to kind of oversight whenever it's needed some of their licenses and making sure things remain in order so the auditor of central banks have specific features and same for the auditor of the banks themselves so they can auto-polish themselves and you can increase obviously as a central bank your CBDC supply by minting additional CBDCs but also burning some when they have left the system for some accounting reasons again direct final order do not need to have any gas it's directly it's an Ethereum type of transactions in the context of either a roll-up or a permission chain with no gas thank you very much I hope it was useful and I'm happy to take questions if you have any yes there are actually two questions in the chat and a reminder to everyone we have six minutes left so please pop the questions in the Q&A as well can you see the questions yes I'm seeing the questions so I will take the questions from the last one any institutional users of codify already so yes there is institutional users of codify today mostly in the banking sectors around stablecoin issuance it's the same stack for CBDCs and stablecoins a few variations but the same core stack as well as central banks so that was the first question there is another remark atomic dvp egolic deterges better risk mitigations I'll have a look again at your questions and I'm happy to take it offline I'm not sure I capture totally the question here if there is any more questions I'd be to take some so can you please share any contact that is hiring for blockchain practice in the US absolutely a consensus is hiring quite a bit I think 100 openings on Consensus website right now so I invite you to go to consensus.net slash careers and you will find the openings over there if you like to consider joining Consensus there was also a question about atomic dvp if it's not if it's atomic dvp not the same thing as RTGS is it better credit risk mitigation so it's not the same as RTGS atomic dvp essentially is a smart contract which will release payments and collect payments when there is a transactions being made so at least it's editable in a faster way and you can identify if there is a risk or if there is one of the peers in the transactions which is not having for example the funds they are they are providing so it's not equal to RTGS and it brings a different value proposition great thank you we have a last question regarding the demo so there is some part of the code is available on github but not everything is open source so we build a lot of API to ensure that consensus which essentially accelerates your time to market so we build on the top of open source software such as ita la jobezou but some of the applications some of them are open source others come with a commercial license great Frenchy Thomas is asking is so in production how the Ethereum unit gas consumption is managed that's a great question so far the CBDCs for retail have been deployed on rollups so rollups transaction costs are minimal if not close to zero and when we deploy the wholesale CBDCs platform they are usually deployed in a permission way where we can essentially neutralize the gas cost and there is no gas fee so the some applications of CBDCs might be in the future using the main net of Ethereum but the beauty of ita la jobezou is the possibility of deploying private and permission networks where you can neutralize the gas fees essentially makes them free but you can also get a connectivity to the Ethereum main net so there is a gas fee I would say considerations when you go to the main net and get a global reach but when you're building a private Ethereum type of architecture there is no gas fee conversation and I guess fairly soon gas fees will be significantly reduced with the upgrades to the London codebase or the London upgrade so absolutely there is a roadmap for the Ethereum global network the main net to upgrade to Ethereum too so there will be a London fork happening probably by July and the merge between the Ethereum 1 and Ethereum 2 happening early next year in the meantime you have multiple layer 2 solutions which are popping up into the ecosystem where transactions are high throughput very fast finality and very low gas fees so there is a combination of different solutions from the base layer 1 of Ethereum which will be upgraded within 6 months in the public main net context but there is also layer 2 solutions for the main net and as I was illustrating earlier you can also in a private setup essentially implement a layer 2 usually we don't have a problem of gas in this private setup but we want to increase the throughput of the network so we deploy in this case a layer 2 on the top of the base layer so that this layer 2 could bring us to as I was mentioning up to 18,000 transactions per second managing 100 millions of wallets so it give you a feel of how already is the technology for this kind of CBDC in the retail context So unfortunately we are out of time there are still actually very interesting questions there is a question about lost or stolen coins comparison with R3 CBDC solution and the question about the connectivity to main net from a private business network and so on so Charles would you be able to tell the audience where to find you maybe you want to setup like a you know birds of a feather session to enter answer all of the questions because I think this is a really topics worth discussing Absolutely, you can contact us by email maybe I can share my screen again with just one minute contact so you've got my email here Charles.docie.net and we are you can find also all my contact details on the on the website of the Hyperledger Global Forum and I'm happy to take questions offline and exchange help you to benchmark the different solutions help you to understand how Hyperledger Bezu is the difference and why we are seeing a migration literally a migration from previous DLT technologies to the Ethereum stack for multiple reasons from token and account based solutions but also the side breed combination of architectures which are really a very good fit with what the market wants today