 There's a lot of paths that have to be executed in parallel. So the first path that has to be executed is just continuing to make the code better. Whenever one releases a product, it's a game of good enough. So you say, okay, well this release is where we're going to stop, but there's a lot of features that one would like to add. For example, paper wallet generation, multi-sig, proper accounting, these types of things. And those will organically and iteratively work their way into the code base. Then there are things that people will never see, but we as engineers really would like to have. So making the code more modular, reducing technical debt, these types of things, improving APIs for enterprise users, and as well as performance and memory management and so forth. So over the coming months, these releases are going to happen organically. That's one development thread that's occurring. And then we are now in a position where we can begin completely new threads in the project. For example, EDSCO is working on a side calculus version of Warbore's PROWSE. And so this is the first time where we're actually stepping into formal specification with the aim to have formally verified code, which is an incredibly high bar for engineering and it's something that the Byron release didn't quite get to. And then there are other threads about adding completely new capabilities to the system. So right now Byron is all about transactions and commerce. And it's all about just getting these thousands and thousands of incredibly excited people into a cryptocurrency because they've been waiting patiently for a while. And later releases are about how do we actually now step into the computational world and do smart contracts and do the kinds of things that one would work with with Ethereum. So later releases coming next year are going to involve bringing the cave framework into Cardano, bringing semantic space compilation into Cardano. This will actually allow developers to write smart contracts in languages they've come to know and love, like Java, C, JavaScript, and so forth, not just domain specific languages like Solidity and Plutus. So these are very high priorities. Other things are adding completely new capabilities, which we've never seen in the cryptocurrency space before, or when we've seen them we've seen them in very specific boutique ways. There's a great line of research being done here at Tokyo Tech with Bernardo David Marlar and Jera as well as some people outside of those circles where we're actually developing specific multi-party computation protocols that are composable that will be used for all kinds of unique new applications that allow off-chain computation to occur. And this is very important to things like scalability and very important for privacy, which Ethereum doesn't currently have. So in the immediate future, people are going to see things just get a little bit better. So they're going to get faster, less bugs, faster syncing to the network, these types of things. And then they'll see kind of new features pop up out of nowhere and say, oh, well, that's really cool. Now I have paper wallets and so forth. And then as we move closer and closer to Shelly, that's when we're really going to start seeing dramatic changes, like for example, opening up the staking, checkpoints, computation, these types of things. And all of that's coming in early and mid-2018. So if anybody wants to get involved, please go to cardanohub.org. It's kind of the central website for governing the community and getting developers to enter in and scientists to enter in and community management to enter in and so forth. And send us an email and we'll definitely find a way to collaborate with you as it's a permissionless open ecosystem. People don't have to do that. In fact, we've already seen a lot of independent third party people just decide to become advocates for Cardano. And that's extremely exciting as well. It frankly reminds me of the early days of Bitcoin. Hi, I'm Charles Hoskinson, the chief executive officer of Input Out. Thank you all for coming here today. It's really an honor to have you here. Hello, I'm Charles Hoskinson, the CEO of Input Out. I'm really happy to be here today. You know, Irish Bay has been at the Cardano project now for about two years. And it's been a heck of a ride. When we first started, it was a very small project. In fact, the original specifications and discussions about Cardano, they happened at Royal Host. Because it's fun, we were having coffee at a table and we were having a coffee at a table and we were having a coffee at a table and we were having a coffee at a table and we were having a coffee at a table. It's fun, we were having coffee at a table and we said, boy, we really should have a cryptocurrency that has this perfect blend of commerce, computation, and compliance, and uses high assurance development methods, and goes through peer review, and so forth. And that was a dream. And now, two years later, $6 billion has been raised, 9,912 unique people, 16,000 members in our community, 10 or 15 countries, lots of peer review, white papers submitted to different great conferences. You guys made this dream happen. Thank you so much. You know, part of scoping out Cardano was to create a great research alliance. So the first thing that we did was to create a great research alliance. So the first thing that we did was to create a great research alliance. So the first thing that we did once we knew that this project was going to be real and actually it was going to be a big project is we decided to build some great partnerships. And I want to talk for a little bit about these partnerships and also to thank them. Our chief scientist is based at a university event in Burra. We have a blockchain technology lab right in the middle of Scotland. It's a wonderful place. We have lots of post-docs, lots of graduate students, and they built a heart of Cardano. And we also have a lot of wonderful people at the University of Athens. They're very rigorous mathematicians and computer scientists and they worry about making sure the theory works. And we have finally some people at Tokyo Tech, Ricardo, David, Mario, and Arangera, and they work on multi-party computation. They look to the future and figure out how to make Cardano last a long, long time. In fact, both of them are here tonight and you'll be hearing a little bit later from Bernardo David. He's going to give you a wonderful presentation on some of the work that they're doing. So Cardano wouldn't exist without partners like these. So I wanted to thank them as well. Okay, so that's all about the thinking and where we were at, but let's talk about why we're doing this. What is Cardano all about? It's generations, not just the Star Trek series, but also things like Bitcoin. What is Bitcoin? Why is it the first generation of crypto crisis? The problem that Bitcoin solved was the idea of consensual money. It is a database that nobody owns or controls, but rather just lives somewhere in the area, carved on, using the magic of cryptography that allows us to build a system where we can now have money that lives on life. The magic of Bitcoin started in the 1980s and it took quite a bit of time for everything to percolate to the top and for people to get the right ideas from it together. It's truly a revolution and it will forever be known as changing the way money works. The problem is that the minute you have a revolution, you have to also have an evolution. Transactions and stories behind them. You see, I don't just send money between Alice and Bob. Alice sends money to Bob for a reason. So back in 2014, Vitalik Butter and I and many other people came together and we figured out a way to give these transactions a story. We created Ethereum. And it's actually changed the entire space. Ethereum is now the second part of this cryptocurrency. It's added to the first position. So two years ago, as that royal host, one of the topics of conversation was, are we done? We have the first generation. In truth, we can have just some full money and now we can have smart contracts. We can have that story and transactions. Is that enough? And we realized that while we have a lot of capabilities, there are some problems. So let's talk about what's needed for the next generation. What is the third generation? First, we need this notion of scalability. The problem is that as you add more people to these cryptocurrencies, you have less and less resources available. And so we can't currently grow to the ability of users with our current designs. Second, there's not going to be just one cryptocurrency. The reality is we're going to have thousands of them. And there's also legacy financial systems and unfortunately these things don't talk to each other. And finally, this infrastructure is not very sustainable at the moment. Fragments all the time, it's very expensive to maintain and it's not clear how to pay for things. So the third generation is not about changing the way a cryptocurrency works. It's about making a cryptocurrency work at scale in the entire world, not just a small group of earlier doctors. So that's what we're trying to do with the Cardano project. We're trying to be the first truly third generation cryptocurrency and have these things so we can have something that's infrastructure for the billions of people who need it. So let's talk a bit about each of these. Let's talk about scalability first. So the easiest way of understanding the current problem with cryptocurrencies is imagine that we have a tie at a table. And then let's go ahead and put some people around that pie. Now if we add people, we don't get any more pie. The slices just get smaller. So this Bitcoin and Ethereum will become victims of their own success. As they become more popular, every person using them competes for less and less and less of a slice. So the first thing that one of us do is figure out a way to let the pie grow as people come. So as you gain users, you gain more resources. The first thing we had to do was figure out how to construct a consensus algorithm where we had a path to doing that. So we thought this thing called work warrants. But our data later today is going to give a great presentation on how that works. But the basic concept is that order warrants have been designed with a long term goal that as we gain users, we gain more transactions per second. And like Bitcoin, it doesn't cost $300,000 an hour to operate. And it doesn't require all the power of Ireland to operate. It's little things. The other thing is that it doesn't matter how many transactions per second you can have, it has to move all that data around the network. So we have this problem where Bitcoin is designed as what's called a replicated system. So basically every user is the same. Every user has the same capabilities and every user is the bottleneck. So you're only as good as your average user. So I'm currently staying at the APA hotel and we have this thing there called Wi-Fi. And the Wi-Fi is not very fast. So can you imagine the world's next global payment system being run from APA hotel's Wi-Fi? Probably not going to be the best experience. So it would be really cool if we had a new network protocol, something that we wouldn't have those kinds of dependencies where we could be a little bit more heterogeneous. So the saddest engineers in the world are actually the engineers who created the Internet. Because they didn't really know that they were building something that everybody in the entire world would end up having to use. One of the early Internet pioneers is John Day invented being a recursive Internet work architecture as kind of an apology for what they gave us before. And because you know we love academics and we love rescuing wonderful ideas from academia, bringing them into real life, are almost going to be the first cryptocurrency to support recursive Internet work architecture. So what this basically means is that as we get more people, we get more transaction processing capabilities, and we also get the ability to lose that data around and we don't lose quality of service. So that's basically how we're going to achieve scalability. We're going to let the users pay for it and they're going to do a great job and get us to a billion people. What are we done? Oh god no we're not done. There's tons of other ideas we can throw out. We're not really smart people. We should use them. The reality is that we have all these new tools and toys that people have come up with over the last few years to solve scalability problems, and they're very good ideas. They're actually not hard to pull into a lot of different places. The concept of payment and state channels is basically how to get the transactions off the chain and give them the same little security as if they're happening within the network. You had this idea of trusted hardware. By the way, you guys already have that. It's in your phones. So you're really awesome to unlock these capabilities and bring them into our phone calls so we can do more and more things off-chain. We also have offline payments. So what I'm going to do right here, this is the most elegant and the hardest to do. It's called multi-party computation. So the idea there is to do computations off-chain and get the same little security as if they're on-chain. And it's super, super hard to figure out how to write these protocols, which is why we're dealing with our guys at Tokyo Tech. And hopefully they'll talk a little bit about it. So we're not quite done yet. We still have two other things we've got to do. There's interoperability. So I'd like to describe Bitcoin as that generation one chain of blind, deaf and dumb. It's blind and deaf because it's actually unaware that there are thousands of other cryptocurrencies that has no way to talk to them or see them. And it's dumb because even if it was aware of these things, it can't learn a language. It can only speak one talk. One of the reasons we built Ethereum was that we wanted to get rid of this blind deafness and dumbness. We wanted to actually have something that could talk to other things and make it easy. The problem is the batteries are included. It's really hard because you have to do it for every little thing you want to talk to, and it's also time consuming and expensive. So I'm going to put the batteries in. And I'm going to do that using side chains and trusted relays. So what the heck is a side chain? What is this buzzword that people like to use? So a side chain is basically a representation of a block chain. A crypto currency's database is a block chain. A side chain is basically a representation of a block chain. A crypto currency's database is a block chain. Block chains get very, very, very large over time. They get many, many gigabytes. They mention it will be terabytes, and as they get very popular, they'll become terabytes in size. And so what a side chain is all about is coming up with a way to create a little, itty-bitty proof that's very small. It's in the kilobytes to megabytes that compresses the history of a block chain to a point that when you see a transaction from that, you actually know if it's there or not. So a side chain is a block chain that records the number of block chains in a large amount of data. That means that if you wanted to watch Bitcoin and Bitcoin and Bitcoin and all these other systems, you would be able to design something that allows you to do that without spending a lot of resources to watch that. So we have a great paper recently published. It's got a wonderful title, Not Interactive Proofs to Proof of Work. And it's by Andrew Miller, Agnose Gasses, and DS's Zindros. And the whole part of the paper is how one will construct these proofs in a very secure, rigorous way, but make them very tiny. And this is a very fertile act of research that we're just going to keep chipping away at and keep adding what capabilities they have. There will be cases where it's not possible to construct these types of proofs because maybe we're dealing with legacy financial systems like banks, maybe we're dealing with very exotic blockchains where it's just not possible. So we have another concept called the trusted relay. Basically, all this is a trend layer. You can watch it on a network, you can understand it. As long as you trust it, it can be used to facilitate the movement of value. As a final point, interoperability is not a destination you arrive at. It's not something that you say, ah, we're not interoperable, we worked with everything humans could ever construct. Rather, it's just a long road and you gradually overdrive at more capabilities. The point here is that we're adding the magic of photography and we're adding a lot of really good engineering practices and principles to make Ardano as interoperable as possible. So anyway, last pillar, this one is probably the seasonal most important. You know, I live in America. America is a very powerful country, very prosperous country, but sometimes, especially with the recent election, we lack wisdom. If you can do it better, you guys are talking about how do we build the Shinkansen until 2050. The broader point is just like the early pioneers of the Internet, we have to be cognizant that if these systems take off, the next generation and the generation that comes after them will be suffering or benefiting from the decisions we make as engineers and scientists. I'd like Cardano to be here 50 years from now. I'd like it to still be useful, but to do that, we have to figure out how we're going to make decisions and how we're going to pay for the system long term. Let's start with how we pay for things. So our spin says come up with this really interesting idea called the ICO. It's a revolutionary way of funding open source infrastructure. You basically talk about the idea, you get some money and you don't have the right to break code and you don't have to worry about patents or anything like that. So that's great that the patents eventually are right out of funds. So what if we give, because these systems are kind of like their own central banks, the system itself fits someone back and forth? She said Toshi Nakamura is a pretty bright guy. He said, I need to pay people who are miners. How am I going to pay them up or create tokens and pay them with these tokens? So instead of giving all these new tokens to miners to maintain the system, why don't we take some of them and put them into a decentralized account? This is not entirely new idea. There's a cryptocurrency called Dash that decided to do this and now they have, I believe around $50 million a year available to the developers. This is decentralized money. It doesn't belong to anybody. It lives in the internet. Kind of like how Bitcoin lives in the internet. Yeah, but there's a problem here. How do we get the money out of the bank account? Well, you guys can decide that. They're owners. In 2018, Cardano was going to add a completely new voting system based on hordes of resistant liberal democracy that we've been developing at Lancaster University. And anybody in the world will be able to submit a ballot asking for funding and anyone who has ADA will be able to vote on whether that ballot should be included or rejected. This is like Japan is your country. Cardano is your protocol. You should get to decide what its future should be. There's two parts to sustain it. First is how do we fix the taxes? And the second part is what changes should we make to the protocol? If you guys have heard of Ethereum, you may have heard of Ethereum Classic. If you've heard of Bitcoin, you may have heard of Bitcoin Cash. What the heck is all this stuff about? What happened is that one group of people said we should go to the right and another group of people said we should go to the left. So how can I go to Sony and Toshiba at NTT and go to Microsoft and Facebook and tell them to build on my infrastructure if every time we have a disagreement we split? Because one of the internet works as it runs on my protocol, TCPIP. As we evolve the voting system, as people learn how to use these things and as this matures and materializes, eventually the upgrades of Cardano, the Cardano improvement proposals, will also be included in the voting system. Just like you get to choose the leaders of the country, you can choose the direction of the protocol in a democratic way. The point is when you have a voice, you can negotiate and you can compromise and you eventually can reach a conclusion. If you don't have a voice, the only recourse is to split. So the last thing I'll talk about about Cardano is a little bit about computation. This is a thing for developers. We have a few developers in the audience, so I figured it would be nice to know. A decade ago, these guys, the Googles, the Facebooks, the Microsoft, realized that if they're going to build software, the software should do web first. It should work on the internet. Google, Facebook, and Microsoft, the companies that have been in the business for a long time, they thought that they would need to build software on the internet. The web stack model has billions of dollars worth of infrastructure invested in it. Absolutely phenomenal technology that has really stood the test of time and allowed great applications like Office to engine the browser. The web isn't optional for these two companies. They live on their entire purposes web page. So it's pretty crazy to go and say, hey, we have these things called devs, decentralized applications, these things called smart contracts, and all the stuff these guys are doing and the billions of dollars they're investing. I think we're going to do our own thing, kind of more smarter. What I'd really love to do is go to a developer and say, use the tools you're used to, use the languages you've come to know of, use the frameworks you care about. Write your stuff in that and let me worry about time making work on it for a while. When you say, oh, but Charles, that sounds like it's really super-duper hard and I say, yeah, I know it is. It's really, really hard. I had to go scour the computer science literature. I was looking for some damn technology that would let me do this. And I found this thing called the K-framework written by this amazing guy, Grigori Roshy, over at the University of Illinois, your mother, Champagne. I was Grigori Roshy. And Grigori, he's been a professor for quite some time and he's put 15 years of his life into building this technology. It's pretty crazy. So basically how it works, this K-framework notion, if you take Java or JavaScript or Solidity, and these are languages that computers can execute on, but they actually don't know how they work under them. It's kind of like knowledge beyond the knowledge. If you take the programming languages and you express them in a way where a computer can actually understand how that language works. So what we do is we write Java and students and JavaScript and some letters in C. We write what are called the operational semantics of those languages in the K-framework. We do IOHK. And eventually other people will be able to do this as well and you can write any language you want in this expression. You do one type of programming. And after you've done that, the programmer can write any smart contract they want in the language that they choose. They don't really have to care too much about it. And we use this process called semantic space compilation and allows us to go all the way to our virtual machine. And when I make improvements to the K-framework as this matures and evolves, this process only gets faster. The code only runs faster and you get more goodies and more tools for every single language to define. And when the developers can just do things the way they've always done and where and when they need to use a smart contract, they have a way to do it, and Cardano will worry about all the hard stuff. So that's Cardano in a nutshell. Cardano is just a third generation cryptocurrency. We're trying to make it in a rock level. We're trying to make it sustainable. We're trying to make it scale to a billion users. It's an evolution of thought over where we're at as a project. And this is great, magical. We have wonderful principles like peer review and high assurance development. You'll learn a little bit more tonight about them. But that's like error. You can feel it, you can sense it, it has some impact on you, but you can't see it. So let's talk about the thing you can't see, the thing you can't interact with and many of you have already downloaded. We did a help this to a room where I think there's six different cities and we helped hundreds of people download. And you're like, Charles, it's just a wallet. You have a pretty wallet. We built it with web standards and all this stuff, but it's just a wallet, right? Yeah, it's a wallet that we're eventually going to support to eat their classic Bitcoin and many other cryptocurrencies with, so it's a multi-wallet. And eventually it's going to work on yourself, but we'll figure that out. Before we're using all this cool react stuff, whatever the heck that is. What the heck is this thing right here? This thing is a set of plugins. What made yourself unmagical isn't that Steve Jobs could figure out all the cool, crazy things you'd ever want to do with it. What made yourself unmagical is that you actually had a choice in that matter. Because we built Daedalus on top of this wonderful platform called Electron, we're going to be able very soon to support plugins into Daedalus. And these plugins are basically decentralized applications. So let's say you come up with a really cool idea for a game or for a new token or for a prediction market. So what we're going to do is say, hey, write the whole experience, the front end, the thing that people see, touch and feel, and a web stack with web technologies. And by the time you're going to get access to all this specialized band of goodies like that multi-party computation and the trust department and other things, and they're just going to work, they're going to be in the backdrop, therefore when you need it and away when you don't need it. When you need smart contracts, they'll be there for you. We'd love for you to use Cardano, but we're going to support your very classic network and others so you can run your smart contracts there as well. You get to decide what network is the best to deploy them on and run them on. And so that's the magic in this paradigm is to give people the tools to free them, decide what's best for their customers and what's best for the problem they're actually trying to solve. So at the end of the day, that's what this movement is all about, it's about freedom. I'm just about freedom of money, it's about freedom of choice and it's about freedom to build the things you want to build. And we're going to build some of our own things, like sorry, we didn't get this out of my room, but it's coming in next week's Shelly. We'll have Wolfie say and we're going to have much better backup and more security and privacy. And we'll have other things like staking when we turn on pretty soon when the Shelly release happens and people can run their own stake pools and run it in the network. We're going to have checkpoints for fast-boots trapping so when we download the wallet, you can use it right after you downloaded it so everyone's waiting for it to synchronize. And at the same time, when the Shelly release happens and people can run their own staking pools and run it in the network, you can use it right after you install it. But the broader point is, Nettles, like Cardano, is your platform and so there are really impressive, really magical things that Nettles is going to be able to do. I'm not going to decide, it's actually going to be you guys. So that's Cardano Nettles. It's a third generation blockchain. It's very well funded. IOHK is going to be working on it at least until 2020 and hopefully the Treasury will allow us to work on it for the rest of my life. We're trying to bring the best of cryptography together. We're trying to bring the best user experience together. We're trying to bring the best people together. We're trying to give them the ability to decide where they want to take this protocol. And my hope is it's somewhere pretty interesting and I think we'll get there. Anyway, thank you all so much for coming. It's been an honor and a lifetime actually working on this project and I'm truly humbled by the amazing response you've gotten from them. As I have just a little bit more time, I also want to take a moment to thank all the employees at IOHK. We started with just the people Jeremy wouldn't be. He wasn't even married at the time. Now he's married to Japanese kids, poor guy. Now we have 100 people operating 10 countries. I personally traveled over 30 since this project began. And it's hard, but it's really fun and pretty magical because my employees, our partners, make it fun. And most importantly, you also make it fun. So thank you very much. We all have a wonderful day.