 So good evening So I'm Nick Johnson lead developer for E&S and I'm here to tell you about what we've done in the last year and What our plans are for the next year? So E&S launched on the public main network on May the 4th as in May the 4th be with you It had an eight week soft launch period during which we gradually released names for availability in a randomized process over that eight week period and my There we go over my the eight week period 180,000 names were auctioned as you can see after an initial sort of gold rush spike that was a fairly consistent rate over the whole period And to buy those 180,000 names Roughly a hundred and seventy thousand ether was deposited into a smart contract Users who purchase names have their ether hole held for at least a year Or until they release the name As you can see from the graph here the Contributions the the amount that was being deposited on names reduced fairly sharply at the end of the Eight week launch period which is a fairly good indication that most of the contentious names were bought during that period So it's interesting to look at how much people paid on average for an E&S name or rather How much they deposited and what proportion of names were Contentious had more than one bid so if we divide names up into the names that were in a short list that we have of common Domain names and dictionary words and those that aren't about 35% of those that were in the dictionary were contended Had more than one bid compared to only about 7.2% of names that weren't in the list And as you can see again for the names that were in the list After a short sort of gold rush period there was a gradual decrease in contention rate While names that weren't in the list the line on the bottom there Were fairly consistent in terms of how often they were competed for So split again splitting up by whether the name was known or not The average price paid for an E&S name in the list was about 0.05 ether and the price for a name not on the list was only 0.02 and as you can see on the right side there when the soft launch period came to an end the both of those bottomed out to Very low contention rates and very low medium prices indicating that most people that wanted to Compete for a name got it during the launch period So one of the main concerns about the auction process was the potential for people to lose their bids by failing to reveal during the correct period And that was something we can a concern we shared in the design of the registrar as you can see here from an initial reasonably high rate of Loss for deposits that rapidly decreased and we had an average of zone the 0.3% We're satisfied that the rate is Quite low, but we're not sort of resting on our laurels We want to continue to improve The auction process make it easier for people to interact with and less likely that they will lose funds or Harder to make mistakes as we'll see soon It's also interesting to look at the ownership distribution of names because this gives us an indication of how many names were bought With active use in mind as opposed to how many were bought with the intention of hoarding them so Roughly 8,500 people bought names during the launch period Of those about 123 of them 1.4 percent of the total registrants own half the registered names And in order to buy those half the registered names They paid only about 20 percent of the total registration fees or about 34,000 ether And from the histogram here, you can see that the vast majority of accounts over 5,000 of them Owned no more than five names with a long tail distribution Continuing off all the way to the largest E&S name whale here at 17,507 names Client adoption since the launch has been excellent We have support in Metamask, MyEtherWallet EtherScan, a variety of other clients and mobile wallets and one of our main efforts for the ongoing E&S effort will be to increase client adoption Particularly with exchanges you might notice we only have one pioneering exchange in this list and we really want to improve that In August 2017 we had the first E&S workshop This was a gathering of people interested in advancing the state of the art with the E&S building out new infrastructure And deciding what the permanent registrar should look like We had 27 participants and we discussed over three days a number of issues Including dispute resolution, design of a permanent registrar, how to secure sub-domains and E&S integration and I'll go briefly over what we Determined in the workshop and how we've progressed things since then So the first topic that we discussed quite extensively was dispute resolution E&S with the interim registrar on DOT ETH has no built-in dispute resolution mechanism And this was a deliberate choice because we wanted to build the simplest possible Registrar to get things started and then learn from the experience in order to build a better permanent registrar The consensus decision at the workshop was that a dispute resolution should initially be built as a sort of a second layer So we would have opt-in blacklists They would follow their own processes, whatever they see fit for blacklisting domains And users and wallets could then voluntarily subscribe to a blacklist that met their requirements or none at all if they prefer So for instance here we have an example blacklist in the middle The user doing the resolution on the left and E&S on the right The user wants to resolve say foo.xyz In this case the domain isn't in the blacklist So the blacklist simply passes the request on to E&S which responds as normal If the user then wants to resolve a domain that is in the blacklist like bad.xyz The blacklist detects this and returns a null result ensuring that phishing and spam domains and scammers don't get resolved And sorry, I should add The goal in the long run is to build experience with operating these blacklist registrars as a second layer And then evaluate further later whether they should be integrated into the base layer or whether it should continue to be a separate opt-in solution The second major topic of discussion was design of the permanent E&S registrar and one of the unanticipated consequences of the deposit based model for E&S is that Different participants in the market have very different costs of capital on the left here We have the user who is registering a domain with the intention of using it directly and to them The cost of putting down a deposit is effectively the whole cost of the deposit because they intend to retain the name indefinitely They can't count on relinquishing the name and getting those funds back on the other hand you have the investor who is looking for some way to invest their ether and The cost to them is effectively the opportunity cost of not being able to use it for other things and Finally you have the speculator who would be holding ether regardless and they see E&S names as an almost risk-free way to Hold their ether So our conclusion from the workshop is that we should transition to a rent-based model and in a rent-based model Every name has an annual fee which is assessed sort of continuously And as a result everyone has effectively the same cost for holding a domain It's also important to note that the plan is that all domains would have the same ongoing rent This wouldn't depend on how much you paid for the domain at auction because we have no desire to penalize people merely for being popular The next logical question is how you determine the rent and Ultimately unsatisfying option is to simply have somebody set it by Fiat as it were and revise it from time to time But we think we have a more elegant approach and this was suggested by Vlad Zamfier at the workshop the insight is that The goal of having rent is to encourage Deregistration of unpopular names or unused names that aren't wanted and so we can monitor the Deregistration rate which is the blue line there and set a target Deregistration rate the contract can monitor how many names are being deregistered and then it can adjust the rent price to attempt to maintain a fixed rate So in this example here some external event perhaps an increase in the price of ether results in a spike in the Deregistration rate and the registrar responds by decreasing the rent until it reaches a stable level again And you can see here another event perhaps increasing popularity in E&S Results in a decrease in the Deregistration rate and the registrar responds by again increasing the price until it's stable The next issue that we addressed and this has actually come up largely Subsequent to the workshop and as a result of discussions in our internal gitter channels Was ways to simplify the auction mechanism? Although it's generally behaved quite well There is some inevitable information leakage in that you have to start an auction on a name in order to bet on it And that provides some information to people on what names you're likely to be bidding on and what names are up for auction in general And this can be disguised by opening sort of chaff auctions alongside the real ones, but this disguise isn't perfect So our proposal for the permanent registrar is to switch to a rolling auction mechanism The way this works is auction periods start every 48 hours in this example And you have a 48 hour bid period during which anybody can bid on any unknown name And that's immediately followed by a 48 hour reveal period during which anyone who birds needs to reveal the name Simultaneous with the start of the first reveal period a second bid period starts And again any unregistered name can be bid on if somebody bid on a name in phase one and then another person bids on the name in phase two Then when the name is revealed they simply get a full refund The result of this is that there is no information leaked as to what names are being auctioned Which means that people have to bid the legitimate value of the names they want rather than sort of sniping and griefing the system And this continues on an ongoing basis with bid periods automatically starting It also simplifies the system it reduces the number of interactions you need to engage with the system by one So the next feature I'd like to announce This as you can see is a perfectly ordinary my ether wallet instance. This is on the Internet public internet. You can see it's connected to Robston And I as you know my ether wallet has had support for E&S names since day one What it hasn't had is the support to resolve these names I'll blast and that's the problem with doing a presentation on screen If this was working and I'm going to blame the internet connection What you would have seen there we go. It's correctly resolving an E&S address for an XYZ domain And to figure out why this how this works we need to take a bit of a diversion and talk about DNS sec DNS sec establishes a chain of trust from the root key which is signed by ICANN and Down through each key. So we start off knowing only the hash of the root key of DNS And this is coded into a smart contract oracle Given that that given the hash of that key We can pass in the actual key we can verify that it matches the hash and we can add it to our set of trusted records and Given that key we can now verify any record that is signed with that key So in this case, it's the hash of the root key for the XYZ top level domain and Given that then we can recognize the key and so on and so forth So next we can recognize the key for ethlab.xyz Given that we can recognize Sorry, the hash for the key and then the key itself and finally we can validate a signed text record containing an ethereum address So this is how the overall system works given that chain of trust established previously users can submit proofs to a DNS sec oracle on the chain and the proof is exactly what we saw earlier for any records that it doesn't know about It contains the record and it contains a signature verifying its accuracy Once they've done that the user can call the registrar the new DNS sec registrar, which has a claim function The registrar then queries the oracle and says is there a text record for the name? They're trying to claim and it responds with any text records and the registrar Passes those text records to determine any any DNS addresses if it finds one Sorry ethereum addresses if it finds one it checks it against the caller checks that the person was calling the Registrar is in fact the address specified And if they are then it calls a NS and sets the record in the NS and this is now fully functional on the Robson test network You can register any DNS domain Thank you So initially for testing purposes We're starting only with the dot XYZ top level domain, and we're grateful to them to cooperating with us on this But in principle this can be expanded to any DNS sec domain that supports sec pair, sorry RSA and char 256 So well, we'll initially start off with this and my great domain net initially with it We want to expand it out to support all of those domains. So that means not just XYZ But also all of these domains and all of these domains and These domains and these domains and these domains and these domains and these domains and it ends at some point There we go and all of those in total about three quarters of internet TLDs currently support the algorithms We need and if we integrate share one support that rises to about 96% So the next thing I'd like to show off is Something that aims to improve the usability of NS for end users One of the major barriers to adoption has been that for somebody to simply name their wallet Requires a multi-step process involving an auction process and it's always been our vision that most users don't buy top level domains in the same way that most users sign up to Gmail rather than buying their own vanity domain and E&S now is our attempt at making this easier for users and it makes the process of registering a sub-domain extremely easy That didn't go quite how it's supposed to So in this case, I'll search for Vitalik for instance If I can spell his name, which apparently I can't And we see that we have different top level our second level domains gimme thee and want some Once sums already taken so I'll click on gimme thee Pops up a metamask confirmation window grossly enlarged here. Thanks to my full screen as you can see It's going to cost us about two dollars eighty four point zero one ether takes a bit of gas Clicks admit as soon as that's mined, which is instantaneous in this case The name is registered and it's pointed at your wallet. That's one step and about 30 seconds to register an E&S domain for any wallet So before I go one more thing and I'm going to pause to see if anybody gets the pun Maybe not I'm pleased to announce that we're going to be forming the E&S foundation an independent legal organization whose goal will be Thank you will be to forward the goals of E&S to help promote its adoption and to help standardize things It will be a not-for-profit organization in 10 in the pattern of the W3C or IANA In sorry the IETF Intended to help promote E&S adoption and know there will not be any form of ICO And Finally, I'd like to close by thanking everyone who made this possible particularly all the attendees at the E&S workshop Alex van der Sand who couldn't be here because he's having a baby Leonard Tan our E&S volunteer who recently presented some of this material to ICANN including the ICANN technical working group and the board And I honestly do not know how to pronounce his name Olly Olly Who inspired the rolling auction system by coming into the get a channel and complaining about how bad the existing system was? easy DNS for their support with DNS sec integration and Mano from E&S listing for feedback on E&S now and that's all I have for you. Thank you very much