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hi everyone im very lucky to be joined by three of the co-authors from the chainlink 2.0 whitepaper today um these are three of the the smartest people that ive ever had the the pro the pleasure and privilege of working with in our industry and you know theyre here with me to discuss some of the kind of deeper aspects of what chain link 2.0 and the white paper is about just to provide some clarity and discuss the parts of the paper you know that they find interesting in different ways you know we we have limited time so i want to make sure we finish fit in a lot of thoughtful discussion im just going gonna jump into the details uh i think that the first question that the paper covers very well is what are hybrid smart contracts how theyre going to enable you know something beyond what smart contracts do today and id be thrilled to hear you know everybodys point of view on that maybe starting with with ari well i think of hybrid smart contracts as a powerful generalization of a key observation in smart contract systems in general and that observation is simply that it makes sense in smart contract design for a blockchain to function mainly as an anchor of trust and adjudication layer there are very good reasons then for significant components of contract logic to run off chain and a few of those reasons are first performance off-chain systems can help boost transaction throughput significantly the desire to connect to off-chain systems blockchains as we all know dont have internet connections which is why we need decentralized oracle networks to begin with another reason is confidentiality blockchains are transparent by design which in many settings is a good thing but transparency of course is at odds with confidentiality if we want both we want to reconcile these two conflicting goals then we need off chain components and smart contracts there are a whole bunch of other sort of subtle motivations but those are the main ones need to source randomness securely and so on and so forth hybrid smart contracts as we define them in the paper are really a generalized design pattern in which very broad functionalities are available off-chain but are secured or synchronized using on-chain logic and we talk in the paper about various ways in which were going to support them ill let andrew and laurence talk about what you can do with hybrid smart contracts ill just comment that its equally important to recognize what you cant do without them you cant really do much more than issue tokens and even the token issuance process becomes fraught if you dont have secure random number generation in some cases especially with nfts which we may or may not get to discuss at some point in this panel andrew so yeah and i i i want to explain hybrid smart contracts this way i think of it as a really natural generalization of what uh oracles already do so oracles are mainly about reporting information and the idea to me of hybrid smart contracts is to generalize that so its not just reporting on data but also performing some computations relevant to the data and i think this is a really natural kind of design pattern that makes me think of like edge computing and hadoop where the principle is to move computation near to where the data originates and you get a lot of benefits in general from doing this performance you could imagine uh computations that compress data right at where the data feed originates so that uh whatever eventually gets placed on chain is in a smaller form so it costs less then you also get benefits of simplicity by being able to essentially program what computations are going to happen on the data in exactly the same place that uh that data feed originates so i see this as a really natural kind of generalization of the kind of computations that uh oracles already have to do so every oracle is already doing some kind of data conversion taking data from one source converting it into some format that can be represented on chain in a smart contract and so if you just think of generalizing that to doing other kinds of computations besides just a minimal data conversion i think you get uh this idea of adding some programmability to oracles im thinking of it as a as a hybrid smart contract is a really you know good way to think of that because uh you bring along all of the the desired qualities that you want with smart contracts like transparency accountability being certain that the computations run in a predictable way a way that you can check after the fact you get the output that you want um so you imagine uh using a smart contract kind of framework in order to you know express what kind of application computation you want those oracles to run so to me its this kind of very nice uh generalization that kind of matches a design pattern even that you see in in other contexts as well great thank you lorenz how do you feel about it um yeah i think ari and andrew already made some some excellent points so um i would say right on the one hand they they can enable greater scalability on the other hand they can provide capabilities that are not available natively on a blockchain today such as you know providing better ordering guarantees through fair sequencing services or providing secure randomness through brf and so on um but i think yet another benefit of hybrid smart contracts that we havent talked about yet is that as were moving into a multi-chain world where theres many different blockchains that coexist and have different technological foundations since chain link is blockchain agnostic hybrid smart contracts allow you to keep a part of your dap blockchain agnostic as well and so in this multi-chain world you can then do you know you do less work porting your contract and your dap over and over to different chains because you can keep a common core or what would be an executable on a decentralized oracle network and the terminology of the white paper of your dap that you can keep the same between different blockchains youre targeting with your dap so i think thats yet another appealing quality of hybrid smart contracts yeah yeah i completely i completely agree um i i think its important to note that oracles and decentralized oracle networks are really more a complement and an enabling technology for blockchains than um some kind of full replacement so the way that i see this is that the on-chain contract holds value releases that value creates transparency about the state of the contract maybe defines key conditions uh that the contract needs to meet possibly like you know what we put together with mexicos or other or other similar um constructions of these kinds of hybrid smart contracts but the oracle is responsible for all of these other basically decentralized services and i i think it is fascinating all the things that you can build with the additional decentralized services provided by decentralized oracle networks but i think theyre useful as far as there are smart contracts on various chains that need them and so i think theres this very important complementary relationship where the on-chain code has its very well-defined and clear and very important and irreplaceable role and i think the addition of decentralized services to that core code kind of can can help that core code actually go to the next level secure more value do more useful things for for the worlds users which is which is what i think were all excited about as as co-authors on this paper and as people working on the centralized oracles and and chain link and so on so i think the next question then is just just to understand this a little bit more is to consider how you folks see chain link already providing a certain form of hybrid smart contracts or some of the near-term hybrid smart contracts design designs where you see logic going into a decentralized oracle network that you find particularly attractive or useful and it it it would be great to hear each each of your point of points of view on you know which one or what collection of kind of decentralized oracle network computations you think are going to be particularly attractive or useful or interesting in your opinion i guess id like to talk about a functionality weve not yet realized but are working on and discussing the white paper this is something called fair sequencing services or fss for short people tend to think of and in many cases rightly so tend to think of on-chain systems as being more trustworthy than off-chain systems but fss is interesting in that its meant to be an example of how off-chain systems can actually improve the trustworthiness of on-chain systems right so blockchains are designed to be decentralized systems of course and many of them achieve strong decentralization but a limitation of standard designs is that they actually have a temporary form of centralization a minor gets complete control over which transactions go in a block and how theyre ordered now normally a miner orders transactions by descending gas price but its not actually required to do this it can insert or delete transactions at will or reorder them and order as it turns out matters tremendously just to give an example say user alice places an order for some token called xyz token with an automated market maker her transaction if shes buying the token will cause the price of the token to rise a miner then can take advantage of its observing alices transaction having the right to sequence it by inserting its own two transactions in a block with alices this is sometimes called sandwiching one of its transactions buys xyz token before alice does and the other sells after alice well why does the miner do this after the miners buy transaction alice buys the token and alices buy transaction bumps up the price so when the miner then turns around sells it makes a profit automatically and its making this profit this is the important thing from alice right by buying tokens before alice the miner also causes the price to rise and that means alice is going to pay more than she would have otherwise now this example this is an example of a phenomenon called front running this example isnt hypothetical miners have recently started facilitating this kind of thing pretty aggressively and even auctioning off the right to others to take advantage of the user like alice in this way and this practice is becoming increasingly popular this is the type or an example the type of practice that fss is designed to address the idea is that instead of centralizing transaction ordering in the hands of a minor lets decentralize it within an oracle network i can talk about what we want to achieve in an intuitive sense what we want to do is approximate first-come first-served service like the ticket system at delhi once alice submits a transaction its like shes taken a ticket and determined her place in line and nobodys going to cut in front of her we refer to this as fair ordering this is something i personally care a lot about i feel that if were going to build a better financial system one without the shenanigans of wall street we need to achieve fair ordering and this is what fss is trying to do its aiming to lower alices purchase price for her tokens because shes not handing money over to a front-runner a minor but fss is a tool and we think itll make a big difference we hope itll make a big difference were working to get into production now layer two systems take the power of ordering transactions away from miners and vested in the hands of whoevers operating the layer 2 system we see fss among other things as a helpful way to build fair layer 2 systems and i think that enthusiasm is shared by the designers of those systems and also by d5 projects concerned about their users losing money okay i can talk next uh uh answering this so um you know this question is about like the present and the near future of uh hybrid smart contracts and so um kind of building on what i said uh you know for the previous question um i i think that the the most immediate uses of hybrid smart contracts are going to grow very gradually incrementally from basic data conversions so i gave very vaguely the example of compression you can imagine getting a performance benefit by having an oracle effectively compress a data feed of some kind before putting a compressed version or an approximated version or an aggregated version on chain one example where this could occur is essentially applying something like a median filter to a price feed in order to get a time averaged version of the data feed that gets placed on chain thats really a computation you know this filtering applied to the raw original data feed if you generalize that just a little bit you have the idea of using the hybrid smart contract to define a custom index so rather than just relying on existing indexes as feeds that you would import right in the hybrid smart contract youre using to define the oracle you could define your own uh index that applies various filtering and uh say outlier removal and combining input from different sources in order to provide a consolidated data feed thats smaller and more efficient than to put on chain than just putting all of the original uh raw data feed directly on chain so thats kind of the notion of using hybrid smart contracts for aggregation and combining almost the uh you know dual way of doing of that is to take a single data feed but replicate it to multiple different blockchain uh places where that data feed would go so um you know this is already something that that uh you can do by having an oracle instance uh uh for each different blockchain if you really care about having um exactly the same data show up in mirrored form in each of uh the different blockchains where that data feed is going to go thats a really natural thing to define using hybrid smart contracts to describe all the necessary data conversions to get it placed on all of the different blockchains where it needs to go um its the last example that i would give of this is um if you think about the application of uh insurance on chain making use of an oracle report about real world events like weather in order to determine the the outcome of an insurance application thats something where you can imagine there are plenty of existing data sources that are relevant to the weather but theyre maybe not in exactly the right you know format that you want to make the insurance pay out so its not just a matter of reporting the original data its really about uh distilling the relevant like binary outcome like yes its good enough weather no its not good enough weather and you would want to use hybrid smart contracts as a way of defining how to take all of the raw inputs from several data feeds and combine it together just to get that kind of application level output so i think altogether those kind of examples are what you could expect to see are the most near-term immediately useful applications of this hybrid smart contracts idea great thank you lorenz what what are you your views on you know the nearer term and and how youre already seeing hybrid smart contracts enable things and maybe the nearer term versions of that uh thank you sergey yeah so i think ari and andrew gave some give some really cool near-term use cases already uh but but one thing id also like to point out is that in some sense we already have chain link supporting hybrid smart contracts today and and thats effectively a lot of default right a lot of defy couldnt run and couldnt work without having reliable secure price feeds that chain link serves um and and so you could argue that even today the big use case for hybrid smart contracts is defy um and beyond that uh you know various uh contracts that require secure randomness through vrf um and another new term application that we havent talked about yet are keepers um which which are a new product that chain link is launching that allow a contract to effectively be called whenever it wishes to be called which solves a problem you otherwise always have which is that contracts cannot initiate transactions on their own right contracts need to be called by an external account and so you need to have some sort of supporting infrastructure of chain that takes care of initiating these transactions and so what keepers enables any contract author to do is to launch a contract specifying effectively an arbitrary predicate for when the contract wishes to wishes to be called and wishes to run logic and then not have to worry about having any sort of off-chain infrastructure initiating the contract when it wishes to be initiated but instead relying on keepers to handle that so i think thats a thats an exciting very general new term application for for hybrid smart contracts and i think well see a lot of interesting use cases come out of that some of which we probably havent even thought of yet but it will be it will be cool to see what people do with that and what they what they can think of yeah yeah i completely agree i i think im fascinated to see some of the things that people have even built at our recent hackathon and the kind of configurations of on-chain code with the various decentralized services made possible by decentralized oracle networks so the the the way i see it is really if were at hundreds of oracle networks now if were at hundreds of dons now that predominantly focus on price data i think were going to be eventually at thousands of different decentralized oracle networks that each make their own unique decentralized service whether thats a piece of data or a randomness input or a keeper function or any number of other more advanced computations that you want to do in an oracle network rather than on chain in a contract and then what what were actually seeing is fascinatingly enough what were already seeing is that there are smart contracts now that use multiple dons providing different decentralized services just like there are web applications that use multiple apis to do different things and the combination of what all those apis do together with the core code of the web application allows it to provide this massive kind of advanced functionality and and so i think that as more types of decentralized services and as the amount of decentralized services in terms of the types of data or the types of keeper jobs or the types of different methods of fare ordering it depending on the users demands for this type of fare ordering or that type of fare ordering i think all of this will just provide a massive amount of options to users and then how they combine those options as you put it lorenz is is really i think the fascinating thing that we all plan and hope to see redefine our industry the same way the early stages of defy have already come to mean what blockchains are about for many people and so i think thats what the outcome and the result of a lot of this will will be which is which is very exciting theres theres a lot of other innovative ideas in in the chain link 2.0 white paper around trust minimization and you know any kinds of any number of ways that trust is injected into into a decentralized oracle network everything from reputation to various guard rails to any number of other other methods what one of the methods that was initially put forward in this paper and i think is is pretty novel and has a serious impact on what most people know as crypto economic security is the super super linear staking model and you know the role that thatll have in securing hybrid smart contracts by making these decentralized services highly reliable and you know quantifiably secure i think will be quite um quite interesting to see how that evolves that thats obviously its own complicated topic and so i think itd be great to get your your feedback on on how you feel super linear staking will will play a role in in the security and evolution of hybrid smart contracts yeah our staking mechanism is something were quite excited about oracle nodes already have economic incentives to behave correctly today for example if an oracle node becomes unreliable its going to lose users and that means its going to jeopardize its future revenue what were looking to do with staking is bolster these kinds of existing implicit incentives in a staking system oracle nodes of course deposit funds to participate and they get slashed for misbehavior this can be for performing an incorrect computation or for creating incorrect reports or any of a variety of other things with staking nodes have an economic incentive to behave correctly not to accept bribes for corrupting reports for example the scheme weve devised and thus the term super linear has some strong and i would even say counterintuitive properties the most important of these is what we call super linear staking impact specifically we believe we have a practical design that gets us quadratic staking impact let me explain what i mean by this imagine youve got an oracle network with say 10 nodes and each of them stakes a million dollars you would think that an adversary could bribe all 10 nodes and get them to emit an incorrect report with a total budget of just over 10 million dollars right the idea is pay each node just over a million dollars to why in its next report thats 10 times 1 million is 10 million but in our staking mechanism design an adversary would actually instead need 100 million thats as i said we get quadratic staking impact thats 10 squared times 1 million and with a bigger network it gets even better if there are say 35 nodes an adversary would need not 35 million but 35 squared times a million which is a little over a billion as i said this is pretty counter-intuitive its a result that surprised me i think surprised all of us and it has important implications it means that an oracle network can achieve more economic security than there are deposited funds in other words you get real bang for your buck in terms of economic security it also means that the bigger an oracle network gets the more the cost of economic security drops theres a strong economy of scale with five nodes a dollar of economic security costs you four cents with ten nodes it costs you just a penny and it continues to drop as you add more nodes to the network uh theres been a lot of hard work by the research team and especially dan marotz who might like to mention here to obtain this result and super linear staking is just one feature of the system ill let andrew and lorenz talk a bit more about how the mechanism works and about some of the other nifty features we managed to get in our mechanism yeah so i i want to try to take a stab at giving um a its a bit of a tricky mechanism but i want to try to you know take a stab at giving a high level explanation of how this works like ari says this is sort of a counter-intuitive approach it was surprising to me theres nothing i like more than a counter-intuitive mechanism that that turns out to solve a big problem so i im too excited about this uh a result so i want to try to you know explain at least the simplest version of it that i think i can get across quickly here we discuss a couple of different approaches to it but ill discuss the simplest one which is the uh sequential one and again the the challenge here is that we want to take a fairly small security deposit that the contract has access to in order to pay out rewards for for different behavior we want to stretch that small amount of capital in the security deposit in order to make a much larger uh amount of uh foregone reward that defecting nodes lying nodes would need to be bribed by the briber uh in order to compensate them for the the lying behavior that they would exhibit so the the simplest approach to explain how we achieve this um this this stretching of a small security deposit is that we basically in the sequential version get each of the oracle nodes to make a decision um in in this kind of at this point in the mechanism its kind of distilled down to just a a lie or dont lie uh option and we we force each of the nodes if they lie to have to do so in a sequential manner so the decision that each node faces is either uh be honest so report that a a wrong value has taken place which triggers the the resolution handler for that anyway their decision is either lie or dont lie um if they dont lie then they would get this reward the entire security deposit thats available for it if they do lie they dont report the the wrong value then the decision goes on to the next node in sequence so at each step uh if the node chooses to go along with the bribe to lie and not report the wrong value theyre forgoing that entire amount of the security deposit but because they do so in sequence the contract only has that one security deposit that it started with at the beginning the same deposit kind of moves along the sequence as each node has to make their decision to lie or not the end result of this is that the smart contract only needs one unit of this security deposit but all n nodes if the lie gets all the way through the end and the briber was successful all n of those nodes would have had to individually make the decision to lie which is why the adversary then would have to bribe them that total amount of foregone reward in order to reach the you know end of a successful bribe so its very broad strokes and thats only one of the the you know variants of this mechanism that we discuss uh but it gets across the basic idea of um what the challenge in this mechanism design is which is coming up with a way of stretching a very small pool of reward into a very large amount that a bribery would have to offer and uh i think its a really excellent uh mechanism and so im excited about it and hopefully that explanation you know is um you know an appropriate level of detail to get kind of the idea across yeah andrew i i i think i think what you mean is that if one of them is honest theyre all screwed yes is is what it comes down to right yeah and and everyone that uh that was dishonest loses loses a very significant you know sum in the form of their deposit and then the one person that was honest gets the aggregate reward right so everybody whos dishonest is penalized and it only requires one person and an entire network to be honest and if lets say that network is not 10 nodes but 30 nodes or 100 nodes you you now have to make sure that every single participant in that network you know goes along with the fabrication and if you even have one of them they have a massive massive incentive um that is is going to be given to them because they were honest and so this creates this this really difficult prop property for an adversary to convince everybody to be dishonest because even one person being honest would make the whole scheme immediately collapse in short order with an immediate consequence for all the dishonest actors is is that is that the right that that that is really well said all the successful bribe would have to hit all of the the nodes even one of them you know reporting the honest value would lead to you know a good conclusion for for the uh for the system and each one of them is kind of exposed to the full amount of the incentive so it would be you know very larger capital cost for a successful briber uh so yeah thats well said its its great i think i think it makes a lot of sense and it and it replicates how um you know how how i think everything should should actually work the person whos honest gets the reward and the person you know who creates a fabrication suffers suffers a consequence and thats immediate and immutable and you know everybody knows that its very easily detectable so i think in that sense its its its amazing work thats been thats been done there lorenz what what are your views on on on this more advanced you know form of staking yeah i mean i think i think its a its a very exciting mechanism um i think one one thing i want to tie into that that you mentioned right as long as any one of them is honest the system works yes and whats even cooler any one of them is incentivized to be honest so were not relying on the fact that one out of all of these nodes is is just honest because theyre a good person in fact they have a strong economic incentive to be the honest one and and thats i think a particularly interesting aspect of this of this mechanism um i think another cool aspect of the mechanism is that it that its modeled in a very broad threat model that that covers a lot of um real world attacks one one could imagine in particular it deals with with prospective bribery so with an attacker that is able to condition the payout of the bribe um on whether the attack was actually successful or not and and this is um stronger than than whats been done a lot of the prior work um and and finally i think i want to point out that the mechanism allows us to you know amplify the security of a first-year mechanism to the security of a very secure second-tier mechanism but without having to pay the cost of the second tier mechanism on every you know and every report thats being made because the mere existence of this mechanism and the trustworthy second tier layer that that can adjudicate alerts raised by the first tier presents a credible threat and and the existence of that credible threat means that anybody that engages in any kind of malfeasance you know has to worry about losing their stake and so the nice thing is that that due to all of that and the happy path uh you actually never have to pay the cost of the very secure second-tier system uh its enough that it looms over you as this mechanism that will that will reward the honest parties and to punish the dishonest ones so so i think thats thats appealing from a cost perspective as well and makes it quite feasible and realistic to to run this in practice you know on every report even if you have very high volumes and rates of reports being sent to a contract yeah yeah i completely agree i think its i think its fascinating theres theres two properties of all this that i think are are really next level in in addition to this um to this kind of super linear property which which increases over time um i i think one of them is is the ability for the second tier to use technologies like deco or town crier to verify the accuracy of a report and therefore very efficiently arrive at a dispute resolution uh kind of result and outcome for the for resolving something for the first year so i actually think that once you layer on something like deco or account cry or something that retains very clear proofs about misbehavior you you can have some level of misbehavior but i think the question has uh sometimes been how does that get resolved how does that misbehavior dispute get resolved what are the proofs that people rely on to do that and i think with deco and or town crier the efficiency with which people um in the second tier or nodes in the second tier can understand what happened in the first tier and accurately resolve a dispute um becomes very efficient so not only does the second tier exist as this critical threat but it it its following through on figuring out what actually happened can be made much more efficient than than other second tier systems that ive seen which is which is something that i found very very attractive and then the second property in my opinion is this super linear staking kind of economies of scale gain that is i think going to be more and more important as more and more value flows into different d5 smart contracts for example because we already see that there are certain chain link oracle networks that are growing in the amount of nodes based on the value that they secure and so i think that eventually youre going to get to a place where youre going to have a large multitude of nodes that dont need to provide an overly large security deposit individually but they provide it in order to gain access to the fees from the from the kind of the the user base of that widely used data feed and then the size of the network and the efficiency of the super linear staking model provides a very um kind of wide-ranging and high amount of security to to more and more valuable contracts which i think we are going to see we are going to see more and more valuable um more and more values secured in contracts like defy so in in the paper theres theres also you know a fascinating longer term vision so some of some of the things weve discussed are the nearer term configurations of how decentralized oracle network computations in the form of keepers or fss or data feeds combined with todays contracts create you know more advanced hybrid smart contracts and then theres this medium term approach of super linear staking thats gonna thats gonna provide this crypto economic security but i think theres also a longer term vision for what we define um in the paper briefly as the chain link made a layer and this made a layer i think is is an even more advanced a longer term version of of whats going on here in a kind of more scalable usable accelerated development type of format and i i i think i and a lot of people would be thrilled to hear your your thoughts on it well hybrid contracts are a generalization of something were already doing today which is combining on-chain and off-chain logic and we try to make the process of bridging the on-chain and off-chain worlds as seamless as possible for developers but its not invisible to them the the ultimate goal and were talking about something to aspire to over the course of years is to enable developers and users not to have to think about the distinction was to make this thing invisible to them this on-chain off-chain distinction and thats what the chain-link metal layer is really all about a developer can write a adap uh what were calling a meta contract in the paper in a unified machine model and it gets compiled down automatically into its constituent parts so this developers lending app goes and say fetches credit reports or some other form of financial data in a privacy preserving way does some privacy preserving machine learning on it and then emits a score and sends some money to users on chain the developer doesnt have to think about what components of this contract are resident on chain and what components are resident off chain the mechanics of all the privacy preserving tools here should be under the covers none of the details should be exposed thats the vision at any rate again its just a vision but its a helpful one i think to keep in mind as people reflect on links long-term technical goals yeah id love to build on this a bit i mean i i think this is a you know almost past due really important and necessary idea trying to unify the way that you write the on-chain and off-chain components to the point that theyre uh the future ideal version of this invisible that gary says invisible to the programmer um you can really work out the need for this just by kind of observing the way the programming tools for uh blockchain applications are today where theres a pretty clear lack of unity between the way that you write smart contracts which is in a custom language where the you know point of the contract is to be an object of study like you tend to very closely scrutinize the interface of those apply a static program analysis to them theyre kind of immutable once theyre posted on a blockchain so everyone knows you need to do your verification and get your smart contract really carefully audited uh and study it carefully uh if you look at the offchain component of a smart contract application that has an off chain component which so many interesting ones do the off chain portion of it is just written in a general purpose language like go or nodejs or something else and you know if it the blockchain specific part it has is maybe a binding to a library to interact with the blockchain like a web3 kind of interface but the code is still just written in your general purpose language um and so your application spans these two languages anytime youre spanning an interface between two different programming languages its ripe for you know hazards and programming mistakes uh so theres a ton of potential benefit even from gradual steps towards this on the path to this unified completely transparent language where for example you may be able to use the same kind of program analysis tools that you apply to your smart contract now you can also apply them to the off chain component of your dap so um you know working towards building a unified way to write all of the components of a smart contract application both the on-chain and off-chain components in a common language is i think a really important idea yeah and to to tie into into what you said there andrew i really like this idea of having a unified program analysis right because as we as we all know uh in security uh the risks frequently emerge when you compose different systems together that on their own seem perfectly secure but when put together in aggregate suddenly things fall to the cracks and and there are vulnerabilities and so having a unified model and having unified analysis tools would be would be super exciting um i think another thing id like to point out there is that there is precedent already in some sense for for things like a middle layer that allows you know generalist programmers to target heterogeneous architectures of all sorts so if we think about things like gpus or sgx trusted hardware we have such technologies to some extent already so for gpus we have cuda where as a sort of regular cc plus plus developer you can write basically cc plus plus with a few extensions on top and that can help you to target gpus much more easily than if you had to have to use more specialized languages and tooling uh similarly for for sgx theres now actually a whole bunch of different sdks compilers whatnot that all also have this goal that you can seamlessly split your application into a high trust kernel that runs inside the trusted execution environment and some sort of externally connected component that you know runs outside the trusted execution environment just in your regular operating system so i think i think there is some precedent for for this uh being a very appealing and successful model um and i think uh what we observe is also that technologies that are able to to allow generalist programmers to easily target these heterogeneous architectures emerge as the industry standards and so i think this is this is also an exciting long-term vision for for chain link and the middle layer for hybrid smart contracts there to to really become the industry standard that people use when they when they want to build hybrid contracts yeah yeah i i completely agree with everything you guys said i mean i think its fascinating to me where where where all of this could could go as far as usability and the speed of iteration that a developer could participate in because the the consistent thought that i have in my mind is that if you look at the web 2.0 world and you look at the speed at which developers there can both build entirely new advanced web applications and the speed at which they can then change those web applications and iterate on them and the degree to which a lot of security concerns and other scalability concerns and privacy concerns are abstracted away from them right and so theyre able to basically compose a large set of services or libraries with uh with with more and more advanced configurations then and if that advanced advanced configuration doesnt work they just pop something out and pop something else in right i i think thats really the thing thats missing from the the blockchain industry and the smart contract industry and part of the reason that people have built so many tokens is because they can right there is a very robust set of functionalities there is a standard in the erc20 standard there is a lot of tools and a lot of templates and it is something um immediately doable and replicable by developers with certain features being added and removed which are already also being standardized i i think the fascinating thing about this meta layer and the compiler um that would turn whatever form this definition of a hybrid smart contract had i i think the fascinating thing is is that it would actually really orchestrate the use of of a blockchain so i think its very important to to keep in mind that the blockchains and the layer twos and all of these systems will have a very critical place as the places where the primary kind of smart contract code will continue to live and what were trying to do is were trying to accelerate the amount of contracts and the advanced um usefulness of those contracts right so i think at the end of the day this made a layer and the ability for people to have all these services and to configure them around the primary piece of core on-chain code more and more efficiently is really a win-win situation for everybody it it makes the developers much more productive and able to achieve their goals it enables more smart contracts with more useful functionality to make their way on to various blockchains and layer twos and it also creates a virtuous cycle where there is more demand for decentralized services because more people are building these smart contracts because they can build them and so i i think its its this kind of change in our industry that im im very excited about and i think were all were all looking forward to um as a result of of this body of work but i i know that we we work on this not you know not only to see that technical impact on our industry and how developers build things but i think were all also here working on this because we genuinely believe that smart contracts and in in in this conversation kind of hybrid smart contracts will have some kind of impact on society and uh and the world in general so i i i think everyone would be thrilled and fascinated to hear what what each each of your individual views are on how you think you know if this vision is achieved or even partly achieved what do you think will be the impact on the world uh for the better and how do you see that as i view it historically many of the great improvements in quality of life and prosperity of the human race have been pretty banal on the face of it stuff like hand washing and other hygienic measures or advances in material science improved steel production or double entry bookkeeping been all seeming things but theyve had a transformative effect smart contracts are really a kind of business logic automation when you get down to it a way to make that automation more efficient more trustworthy and that really doesnt sound like much but it can have sweeping ramifications i dont claim to know what those are like the nft craze shows that nobody can predict how a technology is going to shake up the world but smart contracts are making a difference clearly and will continue to and to reach their full potential i think theyll need to be hybridized personally what i would like to see as i alluded to earlier is a better more equitable and more inclusive financial system and id like to see better financial instruments in particular to incentivize good stewardship of natural resources and in particular help combat climate change this is something that im working on in my separate academic role to put it another way the best thing we can do to make the world better is to prevent extinction and ideally this is something that smart contracts hybrid smart contracts in particular i guess can help with sounds sounds pretty important to to me okay let me take a turn at this so i want to try to convey you know my my wildest fanciful vision of where all of this is headed so you know very broadly i think that we will ultimately see uh the use of blockchains and smart contracts to essentially completely uh reshape the way that societies work and to be slightly more concrete where i i think youll start to see this uh um kick in at some point in the future is the ability to make really effective ad-hoc groups that can do a better job of collective decision-making and a better job of allocating resources within a group i think youre already seeing portions of these kind of experiments with um the various dowels that weve uh seen work today uh but i think were going to see more of these that work at you know all sorts of uh different scales like essentially youll have you know dow family units with small numbers of friends that come from anywhere on the internet to essentially building uh you know larger communities and tiny civilizations that are able to function because of their effective use of smart contracts one way of conveying where i think you can see there might be some value here is that i i think that in the future through the use of dowels and smart contracts you will essentially any time you go shopping it will be like you have a really powerful corporate purchasing negotiator working with you and youll see yourself get really great deals and essentially bulk discounts because youre not just making purchasing decisions on your own youre making them as part of a dow that youre participating in and of course the details of actually making those work and uh not fall apart from having you know management and and you know person-to-person issues i think will come through the effective use of smart contracts to coordinate the effective use of um oracles to you know bring in real world information to help with that coordination so thats kind of where i see the the you know an interesting direction going that i think will have pretty transformative uh effects yeah very very much agree with with both ari and andrew there and then maybe to to um talk about it a little more generally in some sense right so on the one hand you have you have a more equitable financial system on the other hand you have this ability for people to more easily form groups centered around whatever common interest or activity they they like and i would i would maybe regard blockchain smart contracts as a sort of general trustworthy coordination mechanism or system that allows people to to coordinate around whatever activity it really is that they want to coordinate around in a in a trustless manner uh but the the thing thats in some sense holding this back today and i think why we arent seeing as much as much adoption yet as we as we could is partly uh just that um theyre theyre expensive to run right scalability is not so great yet and i think hybrid contracts by being able to to put more of the logic off chain will be able to to improve that scalability and i think that will that will remain a fundamentally appealing proposition even in a world where we you know get next generation uh layer one blockchains that have higher throughput because at the end of the day um you know theres this thing called jevons paradox where if you if you double the number of lanes on a highway there will be twice as many cars and the highway will be congested again and i think a similar similar concern uh will it will apply to um these higher throughput future layer ones and so by having a general mechanism that allows you to to improve scalability and move more logic off-chain on a you know application by application level uh will be very appealing to make these coordination systems successful and to to allow them to be used in many different domains of life yeah makes makes perfect sense i i think you know we we covered everything from uh saving the human race from extinction to to shopping to to you know all the scalability issues of covering both of those from from from my point of view i i really think itll have like like most technologies a different type of impact in different parts of the world so i think i think in the developed market what will happen is that there will be a lot of transparency created from blockchain systems and that transparency will lead to actually at the end of the day much softer boom and bust cycles because fascinatingly enough it is the it is the extreme nature of the global casino that actually creates problems because you know the booms get to be too large then the busts get to be too large and unfortunately society needs to pay for the busts but doesnt always get to participate in the booms and i i think as ive studied the booms and busts in in at least the developed markets a lot of them really just have to do with market participants not understanding when the boom has has went way way past the the real um underlying value of whats going on and so with blockchains create transparencies the booms get softer the bus gets software and and kind of the world just gets a little bit a little bit less hectic and volatile for for everybody as far as you know just just just how high everything goes and just how low everything goes when it comes comes comes down because of the disconnection from reality in in emerging markets as as the other part of the world im very eager and im and im thrilled to already be seeing people in places that dont have a functioning legal system dont have insurance contracts against weather events for their farm you know dont have a bank account because the legal framework of of the country doesnt really enable banks to do anything but charge usery amounts of of interest right or even just steal peoples money and i i think like that i think like ari put it the way that ari put it about a lot of these things being banal i i i actually dont think that theyre that inconsequential i think a lot of people in the developed world are just very used to these things or theyre used to assuming that they work the right way but i think in emerging markets what you see is that when people go from zero to one you know with not having any books no paper books to having access to wikipedia through a fifty dollar android phone their life completely changes and what i what i really think will happen is that all this technology will get polished um and and the infrastructure will get built out by projects like ours and then the eventual impact on the emerging markets will be absolutely massive right because people will be able to participate you know in the global market through a smart contract theyll be able to get insurance theyll be able to have a bank account theyll be able to have all these things that are really the foundation of why economic activity is so efficient and productive and has raised so many people into a new standard of living in the developed markets its its really the ability for people to do contracts well in in my opinion and so if we as a group of people and as an industry can achieve that um shift in how the rest of the world transacts and interacts with each other and and and allows them to kind of collaborate in maybe not as advanced ways as andrew described but it advanced enough that they went from no bank account to a bank account or no insurance to some kind of insurance i think that in and of itself is a very worthwhile body of work that im im really thrilled about and grateful to be working on with uh with amazing people like you um ari andrew and lorenz thank you so much for working on this uh with me and with us and for making such a such a great 2.0 white paper with the other amazing co-authors um i think were really going to an interesting place where you know blockchains and oracles combine to to create an entire new uh definition of what our industry is about and im im thrilled that were uh were somehow contributing to that so so thank you very much and excited excited to be building the future together thank you In this panel discussion on the Chainlink 2.0 whitepaper, Chainlink Co-founder Sergey Nazarov and Ari Juels, Lorenz Breidenbach, and Andrew Miller from the Chainlink Labs Research Team dive into the major technical advancements of their newly published research, exploring how Decentralized Oracle Networks DONs are redefining the capabilities of smart contract applications and accelerating the pace of innovation in the blockchain industry. From hybrid smart contracts and the decentralized metalayer to Chainlink 2.0’s novel super-linear staking mechanism, the co-authors walk through the expansive vision of the whitepaper and share their outlook for the broader societal impact that will follow from this leap forward in smart contract innovation.Read the Chainlink 2.0 whitepaper: 0:00 Introduction 0:46 What are hybrid smart contracts? 8:25 Which functionalities of hybrid smart contracts interest you most? 20:57 Understanding super-linear staking 35:38 Understanding the decentralized metalayer 45:35 How will hybrid smart contracts transform the world? Chainlink is the industry standard oracle network for connecting smart contracts to the real world. With Chainlink, developers can build hybrid smart contracts that combine on-chain code with an extensive collection of secure off-chain services powered by Decentralized Oracle Networks. Learn more about Chainlink: Website: Docs: Twitter: Discord: Newsletter: Telegram: Talk to an expert: Chainlink Chainlink,