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Mongolia - great for Atala and Cardano pilots

Ministers and businesses are enthusiastic about blockchain

16 May 2019 Charles Hoskinson 5 mins read

Mongolia - great for Atala and Cardano pilots

Think about Mongolia and the image that’s likely to spring to mind is of sweeping grasslands, mountains, freezing winters and nomads. An unlikely place you might think for ground-breaking technology, but in fact it’s a great country to do blockchain pilots. The capital, Ulaanbaatar, has almost tripled in size since 1990 and now accounts for half of the country’s three million population. That growth has created problems, including what the World Health Organization has identified as some of the worst air pollution in the world.

In the winter, temperatures can drop to −40C and most people live in gers – round wood and canvas structures heated by fires. So, they turn to burning raw coal – and in some cases anything they can get their hands on, from dung to car tires – to stay warm.

I’ve just got back from Ulaanbaatar, where we’ve been working out the potential for an internet-of-things project to assess air quality. The idea is to put sensors in place and gather the measurements using IOHK’s Atala enterprise blockchain. Once in place, such a network could generate fraud-free, time-stamped data so the authorities know where the pollution is being generated and can focus on cleaning up the worst areas. Putting thousands of sensors in place is expensive but people could be encouraged to do so, and keep them working, by being paid using Cardano as the aggregated data comes through.

IOHK Mongolia
The away team assembled by Charles Hoskinson for Mongolia included Manmeet Singh,
information chief of Emurgo, and Lars Brünjes, IOHK’s director of education

The focus in our discussions with ministers in Ulaanbaatar was on solving these sorts of problems, which occur in all fast-growing countries. Another example is that 40% of medicines in rural areas are counterfeited or adulterated or expired; the figure is 18% even in urban areas. So, we want to put a traceability project together for that using Atala. Bringing accountability and transparency to medical supply chains can help protect people from dangerous or counterfeit drugs – and save lives.

Then, there is the fact that almost everyone has access to a mobile phone network – and 30% of the population receive government disbursements of some kind at an enormous cost. Linking those two together using our blockchain technology could save the government a lot of money and make things easier for the recipients, even villagers living on the peaks of Mongolia.

Other potential areas for Atala and Cardano include two very different sectors: the cashmere industry and university accreditation. They actually make about half of the world’s cashmere in Mongolia. The wool is very expensive in the boutiques of Tokyo and Paris, but goat herders here sell to China at a very bad price, there’s a potential to improve things there with better logistics and proof of sourcing. As for the universities, there are 65 of them in Mongolia, most of which are in Ulaanbaatar. We're really interested to see if we can put graduates’ diplomas up on a blockchain so people can prove they are qualified.

When it comes to attracting investment, the Asian Development Bank has put hundreds of millions of dollars in for various projects, but the audit trail is not so good here. We can tackle that.

Frontier Fintech summit in Ulaanbaatar
Tsogtbaatar Damdin, Mongolia's foreign affairs minister,
addresses the Frontier Fintech summit in Ulaanbaatar

These are real, complicated situations, and the blockchain comes in as part of these solutions. Atala can be used for processing and aggregating the data, which can then be fed through to Cardano to handle ada payments – so keeping huge volumes of data off the Cardano blockchain.

While we were in Mongolia, we attended the Frontier Fintech summit. It was there that we announced we had taken the first step of signing a memorandum of understanding with the Mongolian Blockchain Technology and Cryptocurrency Association, and the Mongolian Fintech Association to advise on potential blockchain projects and develop blockchain education, but it’s early days. Building relationships, identifying the right partners and developing the technology and infrastructure takes time, so we need to be patient – projects like these are likely to take between three and seven years. That’s why education is such a central part of our mission, training people on the ground to build solid foundations, as we’ve already done with our recent Haskell course in Ethiopia.

But providing solutions to these pressing problems is just the beginning. If we can get just one solution in place, we provide a gateway into the cryptocurrency ecosystem for hundreds of thousands of users. That expands the Cardano world, because these people will want insurance, bank transfers, and the other financial tools that we tend to take for granted in the developed world. And that creates business for the whole blockchain world.

A Brief Update on Cardano Development

Processes are evolving under the project management team

9 April 2018 Charles Hoskinson 10 mins read

A Brief Update on Cardano Development

After returning from my yearly global sojourn, I wanted to update the Cardano community on the status of the project. Since the beginning of the year a lot has happened. Cardano continues to grow at a rapid pace and the project is evolving into a new stage. The Byron release back in September of 2017 was an experiment for IOHK. It's the first cryptocurrency we have launched as a company. It's the first time we've had to manage public release cycles, segregated stakeholders (the general public, exchanges, developers, etc). Furthermore, the Cardano project has half a dozen software companies collaborating on it, thus we have to invest a huge amount of time in coordinating, communication and timezone overheads.

Since the September release, we've learned a huge amount about all of these processes and also in dealing with the needs of our broader community. We certainly haven't achieved a Nirvana-like state of perfection, but processes have definitely improved.

I'd like to share some of these improvements as they are mostly hidden from the general public, yet have a huge impact on our ability to deliver a long-term roadmap. First, since September, IOHK has built a tremendous amount of project management capacity, led by Elieen Fitzgerald.

Under her department, Eileen has managed to capture business requirements, draft project charters, improve our resource allocation and budgeting processes, improve development estimates, get better weekly reporting and manage the inter-dependencies between projects. We have also had an increasingly easier time managing third-party relationships, like our partnership with Runtime Verification for the K framework, IELE, and smart contract research.

Some of the outputs of these processes are that we are moving to regular release cycles for Cardano, with the first cycle starting next week on Friday. Our hope is to cut a develop branch for release and then run the release through a rigorous QA cycle currently planned for one month. Over time, this cycle can be shortened through automation and parallel processes speeding up delivery. Updates will become more frequent, higher quality and encumber less user disruptions.

The goal of the project management department is to ensure when we give a date for delivering a feature, a release or a major update that the date and quality are delivered. This goal is one of the hardest to achieve for a software company and much more so given the nature of the software we build, but it's also incredibly important for those who rely upon us for their own commercial interests.

Over time our project management methodology will become increasingly public and eventually will be ported into a public GitHub repository. We'd like IOHK to follow a creative commons process that other software companies and projects in our space can benefit from, and add to, as they pursue their own projects. We'd like to explore lighter weight versions of the processes for DApp development so that our developer community can follow best practices.

Second, working with exchanges and others, such as Ledger, we've been systematically redesigning Cardano's architecture, APIs and other components to be more friendly for those who wish to use our software. For example, you can see our new APIs here.

Another output has been moving our development towards a specification-driven process. The first component of the Cardano Settlement Layer to be ported into this process is our wallet backend, with the following formal specification:

Figure 1: Cardano SL's Formal Wallet Specification Figure 1: Cardano SL

The goal is that each part of Cardano will be specified in a format similar to the one above. These specifications are implementation independent, will eventually be analyzed using formal methods and can be used as a basis for test suites and improvement proposals. 

We are aware that many want to build their own mobile clients or modified software. To this end, we've been exploring the best way of discussing a unified backend architecture. I would personally like to see dozens of wallets and great user experiences materialize for Cardano, but I'd also like to make sure that these experiences are useful, secure and easy to deploy.  

Over the coming months, large chunks of Cardano's code will be ported over to, or replaced with, these specification-driven designs. This likely won't be directly noticed by our users. Rather, users will experience indirect symptoms, for example things getting faster, like wallet recovery from seed, fewer issues connecting to the network, a smaller memory and disk footprint as well as other improvements.

As we now have the talent, processes and clear roadmap, Byron will continue to rapidly improve and become more feature-rich. The release we are cutting next week to QA will include paper wallets, much faster wallet restoration and numerous fixes. We expect it to clear QA in mid-May and for updates to be released to our users monthly thereafter. 

Third, the most anticipated upcoming release is Shelley. Shelley is a massive project with many workstreams and scientific dependencies. It also contains many social processes involving community coordination and management. Effectively, Shelley is about turning over the network fully to the users thereby decentralizing as much as possible. 

The work we have done with Byron has given us a great deal of knowledge operationally, about the best way of iterating towards Shelley; however, special care has to be placed on consensus. IOHK has developed a custom, proof of stake protocol called Ouroboros for Cardano. It has never been used in a cryptocurrency before and has a completely original design. 

Thus we have been extremely focused on a proper deployment of Ouroboros to the general public. Byron is running a version of Ouroboros with delegation locked to core nodes under the control of IOHK, the Cardano Foundation and Emurgo, and block rewards turned off, but when Shelley comes this cannot continue. Staking rights will be returned to Ada holders and delegation will be fully under their control. 

To be clear, Ouroboros isn't a forced, delegated, proof of stake protocol like EOS or Bitshares. It's a pure, proof of stake protocol where for epoch elections every active Ada account is factored in. Anyone who holds Ada in a normal address in the global UTXO has a probability of being elected as a slot leader regardless of the amount of Ada they hold.   

However, the reality is that most will not want or have the ability to host consensus nodes and consistently show up to fill the slots they have been elected to commit. Thus, we developed a delegation system and the concept of stake pools for those users. 

Briefly, anyone can run a stake pool. There isn't a minimum threshold of Ada or a special club. Rather, there will be a blockchain-based registration system and a special transaction type to register a stake pool on-chain. Registered pools will be listed in the delegation center of Daedalus and pulled directed from the Cardano blockchain thereby preventing censorship or bias. 

Over the last few months, we've had to invest a huge amount of careful design and security thought into the process of delegation. There are dozens of factors and scenarios to consider, from cold staking to automation of rewards. But we have converged on a reasonable design for the Shelley release, and a paper will be released soon on eprint.

The summary is that Ada holders can create a delegation certificate for the Ada they hold and register it on the Cardano blockchain. This process in effect separates stake rights from the spending keys for their Ada addresses. Thus the delegation certificates can live in Daedalus, but the spending keys could be kept offline on a paper wallet or ledger device for example. 

Delegation will be done through a special transaction and from a user experience viewpoint, via the delegation center in Daedalus. A user can find a stake pool they wish to delegate to, select it, and click a "delegate" button. It's just that simple. As we launch Shelley testnets, we'll experiment with different user experience flows, from length of delegation to partial delegation (splitting stake between pools).

Another advantage of this process is that unlike Bitcoin mining pools, as our protocol natively understands delegation, it can automatically pay rewards to those who delegated without having to trust the pool operator. At the end of each epoch, our goal is to close the reward pool through a special transaction, paying all those who delegated proportionally to their delegation amounts.

Some benchmarks and threshold will have to be conducted over the coming months to optimize for space and prevent penny-flooding attacks. We will also need to explore different user experiences including notifications and other user interface considerations. 

There are natural questions to ask. How will we ensure that when Shelley launches there will be enough stake pools to ensure a reasonable amount of decentralization? How will these pools establish their brand and reputation? We considered these concerns and decided to open enrollment for a collection of beta testing stake pool operators. 

The goal with this process is to identify a set of 50 to 100 independent entities that are geographically well distributed who would like to run a stake pool as a business. The process will progress as follows:

  1. Collect as many applications as possible at https://staking.cardano.org/ until the end of April
  2. Process and winnow applications until we have a good set of 50 to 100 candidates
  3. Invite the candidates into the IOHK slack and begin discussions about hardware configurations, deployment strategy, docker images, etc
  4. When the Shelley testnet is launched, invite the stake pools to register and work closely with them to beta test various scenarios and experiences 

These beta testers will not get a special advantage or consideration when Shelley launches. They are necessary to test Shelley's design and ensure our assumptions and choices are reasonable as well as improve deployment strategy and documentation. When Shelley launches, there will be a grace period where all those who desire to register a stake pool can do so and Ada holders will be free to choose to delegate to anyone they want. 

Once the grace period expires, auto-delegation will be turned off and rewards turned on: Cardano will be fully decentralized. 

In closing, Cardano is a huge project. There are so many brilliant minds, great engineers and parallel efforts that it's difficult to capture all of it in a single post, much less just convey our progress. What's amazing to me is that we have really great processes established and are daily moving forward (a fan made a great website showing our daily commits: https://cardanoupdates.com/). 

What's also amazing to me is how quickly our scientific research is moving from the lab to code. Ouroboros has gone through over a dozen revisions and now is converging to a state where we can bootstrap from the genesis block without a checkpoint (an industry first for proof of stake). Our sidechains research is state of the art and a paper is coming in May. 

We have also brought game theorists and programming language theory experts together. The output has been incredibly innovative with new accounting languages like Marlowe and an increasingly richer theory for incentives for stake pools, network maintenance and other topics requiring an honest majority for cryptocurrencies to run properly.

Figure 2a: The Marlowe Programming Language
Figure 2a: The Marlowe Programming Language
Figure 2b: The Marlowe Programming Language
Figure 2b: The Marlowe Programming Language

I'm astounded how we are able to think in systems now and by the quality of the people on the Cardano project. It's taken years to build this team and go from dream to regular status reports. I look forward to achieving our milestones and seeing Cardano change the world. 

Artwork, Creative Commons Mike Beeple

Research program to work on hardening Cardano against quantum computers

1 February 2018 Charles Hoskinson 5 mins read

Research program to work on hardening C

Research program to work on hardening Cardano against quantum computers

At its heart, cryptography is the science of secure communication. We have all secrets, expectations of privacy and assertions of truth about messages we receive that require some notion of verification or quantification of trust. Cryptography provides us with a toolbox to better understand how to transmit and verify these artifacts of communication in the presence of an adversary. The challenge is that transmission mediums change and the capabilities of an adversary change with them. The earliest days of secret communication ranging from Caesar to the American Confederacy involved substitution ciphers and elegant physical devices to accommodate the decryption of messages.

Caesar Cipher
A Caesar cipher substitution (See Wiki for more details)

The apex of these approaches was the Enigma machine used by the Nazis during World War Two.

Confederate Cipher
A Confederate cipher wheel

As with all cryptographic algorithms, the security of such techniques is always dependent upon assumptions about the capabilities of the adversary. For example, interception of encrypted messages was a deeply personal affair involving finding the spy or messenger moving the scroll. With the invention of wireless communication, listening posts could easily collect all messages transmitted without the sender even knowing.

Decryption without the trusted hardware device, would require the adversary to have special knowledge and the ability to perform enormous amounts of calculations. The creation of the Bombe at Bletchley Park made this task automated for the first time in human history.

Enigma Machine
An Enigma machine

The invention of computers and later the internet has fundamentally changed the entire field of cryptography. Human and transmission limitations as well as knowledge transfer are now such that cryptography had to transform from clever algorithms and security through obscurity to a science assuming an increasingly more sophisticated adversary that is usually only constrained by physics and mathematically hard problems.

For the past few decades, we’ve been converging into a reasonable model of security that is comfortable for internet connected devices. Usually security is no longer compromised by an unknown weakness in our ciphers, but rather a flaw in their use or implementation in software.

As much of a triumph this convergence is for the field of cryptography, like Bombe in the 1940s, we are now forced to contend with a new adversary capability: quantum computation.

Bombe Computer
Alan Turing’s Bombe Computer at Bletchley Park

Quantum computers seem to present the challenge that fundamentally hard problems which secure our modern cryptographic algorithms may not be hard anymore. Should this occur, most of the modern algorithms we use will have to be phased out and replaced with fundamentally different ones. Cryptocurrencies are consumers of these modern cryptographic algorithms from the simple, such as public key systems and hash functions, to the complex, such as zero knowledge proofs and multiparty computation. As there is an explicit and ever increasing bounty for breaking the security behind a cryptocurrency, the challenge for IOHK is to imagine how to provide long-term security in the face of future adversaries, including ones that possess quantum computers.

Therefore, we have launched a long-term research agenda to gradually harden all algorithms used in Cardano’s protocol stack against an adversary who possesses a quantum computer. The first part of this agenda is to harden our consensus algorithm Ouroboros.

All good research agendas need strong leaders who have a proven record and thus we are extremely fortunate to anticipate the inclusion of Professor Alexander Russell of University of Connecticut, USA as a senior research fellow in IOHK research and an external collaboration with Assistant Professor Peter Schwabe of Radboud University. They will play key roles in our first attempt at hardening the Ouroboros protocol for the post quantum setting.

Professor Russell (Ph.D. MIT 1996) has a deep understanding of quantum computation that spans over two decades. His work on quantum computing has focused on algorithms for algebraic problems, intractability results, and quantum-secure cryptography. He was also one of the co-authors of the Ouroboros papers and thus the combination of his deep understanding of blockchain protocol security and his expertise of quantum computation and post-quantum security put him at a unique position to lead the effort of projecting Ouroboros to the post-quantum setting.

Professor Schwabe (Ph.D. Eindhoven 2011) is one of the rising stars of the field with contributions from his work on SPHINCS to lattice signatures such as Tesla and Dilithium. He is also participating in NIST’s competition to harden the cryptographic algorithms used by the United States government against quantum computers.

As this is long arc research, the output will be many papers, conference discussions and iterations; however, we are excited to start the process and conversation. It is our belief that over the next 50 years cryptocurrencies will become the standard way of representing and transacting value.

Therefore, it is essential for us to proactively prepare our protocols against the threats of the future with the hope that Cardano can enjoy the durability that TCP/IP and other long-lived protocols have demonstrated. We also believe it is essential to structure the conversation within the cryptocurrency community to involve university partners and domain experts as soon as possible in order to avoid common mistakes, incomplete solutions, and have access to the best available knowledge.

In the short term, the first output of this workstream will be to choose and properly parameterize a post-quantum signature scheme for Ouroboros Praos as well as examining our protocol against the capabilities of an adversary in possession of a quantum computer. Our hope is that this work will be finished and implemented before the end of 2018 in Shelley’s first major upgrade.

A Crypto on the Edge of Forever

28 December 2017 Charles Hoskinson 7 mins read

A Crypto on the Edge of Forever - Input Output

A Crypto on the Edge of Forever

Now that the dust has settled after travelling to more than 20 countries, dozens of conferences, major events and community meet and greets this year, I’ve finally had the time to reflect on the progress of the Cardano project as well as some of the lessons I’ve learned. It’s honestly been the most challenging year of my life, filled with drama, stress, death and some unbelievably cruel people. It’s also been one of the most rewarding and joyful years, having had the chance to meet thousands of passionate and kind fans, technologists and scientists – I can see the inspiration that Charles Dickens had when he said it was the best of times and the worst of times. The reality is that the internet and in particular the cryptocurrency space can be a really toxic place if you allow it to get to you. There were times after reading some blog post or comment on Reddit that I seriously questioned if this effort was worth it. I can understand why Mike Hearn left Bitcoin.

But I’ve never been here for the short term, it’s always been the dream of finding a way to get financial services to the three billion people who don’t have them using technology that was only a dream a generation ago. And I think we are making great progress there.

In January of 2017, Cardano was still mostly in a very early alpha stage. We had tremendous engineering difficulty getting Haskell, our DevOps and the new protocols such as Ouroboros and Scrape to play nicely together. Rather it was a constant learning curve of how to tame the three headed dragon of research, decentralized teams and exotic programming languages while managing the expectations of a huge community.

As an aside, Cardano has one of the fastest growing and most intelligent fanbases. We actively invited people who care about formal methods, peer review and functional programming to come and see what we are working on. These people aren’t swayed by jargon or flashy marketing. They were born with bullshit detectors in their cribs.

I’ve gained significant strength and a much needed boost in morale from interacting with our community. For example, one member asked about how we were verifying the proofs in the Ouroboros paper and I posted a link to Kawin’s Isabelle repo. Most would simply say ‘that’s nice’ and move on. This member took the time to read the code and mentioned we had a long way to go with specific examples.

For most people, Isabelle is a name followed by a lake in Minnesota. For our community, some can actually read the code and comment on it. That’s a rare gift and it’s the privilege of a lifetime to be in this kind of environment (we ended up hiring the person who commented on the code).

Moving through the months, Cardano moved from the lab to a series of testnets to eventually being released in September. Dealing with these transitions gave us a newfound appreciation for just how many different computer and network configurations exist. I can almost feel a Windows force ghost whispering “I told you so” in a smug voice.

We designed Byron (the September release of Cardano) to be the minimum viable product necessary to test the concepts Cardano is built upon. We wanted to run Ouroboros in a production setting to see epochs function properly. We wanted extensive logging of both the edge nodes and relays to see how our network is being used. We wanted to have third parties play with our APIs and tell us where we screwed up (boy did they ever!). We wanted to test the update system a few times.

Overall, the experiment has been a tremendous success. There are several thousand edge nodes concurrently connected to the network. There are several exchanges and other third parties using our software in the harshest possible way. There is a wealth of data flowing in that is giving us a much better sense of what we need to do to make Cardano better.

Since launch, we’ve already pushed three updates to the network without incident. We’ve started a very rapid redesign of our middleware and its associated APIs to make it easier for third parties to integrate. We’ve started a series of systematic improvements to our network stack that will be finished with the Shelley release that should dramatically improve things.

However, what excites me most about 2018 is that Cardano is starting to open up to the world. Delegation and staking will be rolled out all throughout Q1 and Q2 in coordination with the community. Soon we’ll have a testnet running IELE allowing developers to play around with our smart contract model for the first time. And we’ll be deploying our first verified protocol with Praos thereby engaging the formal methods community.

Constantly living in the moment, one tends to eschew Cardano’s vast scope in exchange for the problem of the week. But looking at our ever growing Cardano whiteboard series demonstrates how many brilliant people wake up every morning thinking about how to solve the problems of scalability, interoperability and sustainability. These aren’t just hypothetical lectures. They are backed by papers, funding and developers working full time.

Then there are the new things. The work by Professor Rosu and Runtime Verification on K and semantics based compilation isn’t just really smart competitive differentiation, it’s literally moving the chains of the entire field of programming language theory. The Cardano project is creating a financial incentive to have correct by construction infrastructure from virtual machines to compilers. Our success means you don’t have to handwrite this code ever again – not just in a cryptocurrency context but in a general context.

Our research efforts at Tokyo Tech under Professors Mario Larangeira and Bernardo David with multiparty computation is rapidly bringing these protocols into practical use. Kaleidoscope and Royale are case studies on how to achieve everything that Ethereum does off chain, in a low latency setting, privately and at a scale of millions of concurrent users each in their own domain. Further abstractions will push this work into more useful domains like decentralized exchange. And eventually DApp developers will be able to integrate these protocols into their code via libraries.

Professor Bingsheng Zhang’s research on treasuries and voting is groundbreaking. It gives our project the ability to open a discussion about how changes to cryptocurrencies should be proposed, debated, approved and funded. What’s most special here is the interdisciplinary nature of the effort that can draw from political science, game theory, sociology, open source software governance and computer science. There is something for everybody.    

Moving into 2018, we are going to open this discussion up by both engaging the community directly and by holding a conference in Switzerland. More details will be published later, but the basic idea is that this area isn’t a Cardano problem. It’s a cryptocurrency problem. And there are many great projects from Dash to Pivx who are trying to solve it in a novel way. We ought to talk to each other.

I could continue to enumerate our research efforts (there’s a lot more to write), but I think the point has been made. Cardano isn’t a cryptocurrency as much as it is a movement of minds who are frustrated with the way technology works in practice.

The functional programming community has for decades had great solutions to many of the problems plaguing modern developers, but they have been historically ignored. Our RINA guys, if given a chance, could build a much better and more fair internet. Layering protocol development with formal methods extracts a much cleaner and more meaningful design process where ambiguity and hand waving is slain.

What Cardano has given us is a chance to answer if only the world worked this way with why not? We have the freedom to dream again and the freedom to try new things without asking permission. I even have a chance to work with my heroes like Phil Wadler. 2018 is going to be one hell of a year.

Thanks for reading.

Introducing the Cardano roadmap

Next steps of development are charted ahead of further information releases

31 October 2017 Charles Hoskinson 9 mins read

Introducing the Cardano roadmap - Input Output

Introducing the Cardano roadmap

Cardano has been an incredibly challenging and fun project to work on involving many teams throughout the world with different skills and opinions on design, process and quality. Our core technology team consists of Well Typed, Serokell, Runtime Verification, Predictable Network Solutions and ATIX, with IOHK leading them. Then we have external auditors such as Grimm, RPI Sec and FP Complete ensuring quality and holding us accountable to delivering what we have promised. When dealing with a consortium, it’s important to be aligned not only on day to day affairs, but on the broader engineering philosophy of why and how things should be constructed, as well as the pace of development. I’d like to spend a few paragraphs exploring the principles that guide our roadmap.

First, we can only grow as fast as our community. At the moment, more than half of our community has never used a cryptocurrency before. This reality means that while it would be awesome to introduce complex features like stake pools, blockchain based voting and subscribable checkpoints, they would be underutilized and therefore ineffective until the community catches up. To this end, we’ve provisioned resources towards a help desk tour, a dedicated support channel and trying to interact with our community as much as possible as they grow. This is tremendously time consuming, but it really does force our software to become simpler and more useable.

Cardano Help Desk Tour Cardano help desk tour, Tokyo sessions.

This effort challenges design assumptions, such as what the capabilities of the average node in our system should be. Throughout the next few months, a large part of our focus will be on answering questions, debugging software, improving the user experience and community education. The output will be that more people use Daedalus comfortably and back up their Ada, are able to use exchanges according to best practices, and understand why Cardano is a special project. It also means our software will slowly become more bug free and compatible with different configurations.

Second, we believe firmly in the vision of Satoshi that these networks must be resilient and distributed. Resilience means we cannot optimize around a collection of trusted or usually reliable nodes to maintain the network. Distributed means that wherever possible, every node contributes to propagating the network and its DNA. This creates tremendous design challenges. One is at the mercy of the weakest links when replication is the tool used for resilience because it dramatically slows the network as more users come online. While we feel that a protocol like Ouroboros is perfectly suited to properly balance these conflicting demands, we admit that general network and database capacities aren’t quite ready for this task. The sole – and temporary – advantage that Cardano enjoys here is that we are new and won’t feel the pain of scale for the next year.

Yet we must remain vigilant in our efforts to address these concerns systematically as we have done with Ouroboros. Therefore, many of the most significant network improvements will be scheduled for deployment in late 2018 and throughout 2019. Third, there is a difficult balance between research and deployment. We have great protocols and protocol developers. We also have a unique advantage in being able to quickly submit papers for peer review in order to promptly validate them or fail fast, instead of enduring difficult lessons of hindsight that can result in the loss of funds. However, we cannot allow the urge to have something ready soon for commercial advantage to drown out proper process. With Ouroboros for example, we have a serious and ongoing formal specification effort using Psi Calculus to model and remove all ambiguity from our consensus protocol. This effort has been fruitful in dramatically increasing our understanding of all the benefits and sins of Ouroboros, but will not yield working code until the second half of 2018.

Ouroboros Authors at Crypto 2017 Ouroboros Praos researchers, left to right: Bernardo David, Alexander Russell, Aggelos Kiayias, Peter Gaži

We deployed a rigorously built protocol for Byron, but one that does not enjoy a formal specification. There is always the chance we did something wrong, as with all software projects. There is always the chance we haven’t followed the intent of the scientists, despite our best engineering efforts. The broader point is that as our protocols increase in complexity, interdependence and with the use of more exotic cryptographic primitives, finding a balance will become more challenging. The saving grace we have is that many of our security assumptions are somewhat composable, we use great methods like Red-Black teams, peer review and formal specs, and using Haskell forces deeper conversations about intent.

The question of when to introduce smart contracts has become the most difficult issue of our roadmap. IOHK has brought some of the best minds from the programming language theory world, such as Professor Rosu and Professor Wadler, into the area of smart contracts. They have watched the world evolve from simple computers measuring performance in the megahertz and kilobytes of RAM to the internet age of big data, AI on demand and nearly unlimited processing power.

It’s an extraordinary honor and privilege to work with people with so much wisdom, hindsight and proven contributions to the fabric of computer science. Yet we also have the demands of Ethereum and the other systems that while lacking rigorous foundations have proven to attach a large following and much mindshare. We won’t accept the model of smart contracts is a closed matter and that these issues are now just a matter of optimization. We won’t accept that society is anywhere close to mass adoption of this new paradigm. It’s the beginning and it would be foolish to say Ethereum’s model is the one to back. Yet we acknowledge the need for something like that model. Therefore, we’ve decided to increase our allocation of resources towards two parallel tracks of research.

One is focused on fixing the issues that Ethereum’s hastily driven design process has yielded to the despair of those who have lost funds as a result. The other is focused on the ontology of smart contracts in general as well as different computational models that achieve similar ends without necessarily involving the new complexity or cost that Ethereum introduces. Professor Rosu’s team at the University of Illinois and the partnership with Runtime Verification is focused on the former effort. The work of Professor Wadler’s team is focused on the future and broader theory. We hope to establish more foundational research in the field of smart contracts, as Professor Aggelos Kiayias did with the GKL model and Ouroboros.

Next, there is the interplay between good partners like Bittrex, Ledger and others who are consumers of our APIs and have to deploy our software for thousands to use. The reality is that all interfaces are best guesses until they are used and then must change to conform with reality, not best intentions. We’ve already seen lots of room for improvement for our middleware layer, Daedalus’s design and also new features that would be helpful in making integration simpler and more cost effective. To this end, we’d like our first light clients to come from third parties instead of directly from IOHK, to force our documentation to improve and our software to become less arcane. Much of the effort towards Shelley (Cardano’s next major release) will be focused towards these types of improvements. They create a wonderful feedback loop that helps us make better decisions that benefit larger groups of users. Finally, the Cardano roadmap isn’t the property of IOHK, Cardano Foundation or Emurgo. It belongs to the community. When a cryptocurrency is new, it needs good shepherds to guide and steer, but we cannot allow the ecosystem to be ruled by a beneficent dictator or oligarchy.

This requirement creates some issues about scope. We have a clear idea of what needs to be done over the next 18 months to realize some of the technical requirements of Cardano from scalability to interoperability, but we cannot operate as a dictatorship pushing along and telling everyone to accept it. Cardano belongs to those who hold Ada. Thus we’ve decided to execute with three parallel paths. First, Shelley is our path to the full decentralization of Cardano. This must be done and we have decided to publish in full what Shelley entails. Next, there is the issue of Cardano Improvement Proposals (CIPs) and gathering consent for moving forward on whichever one is decided upon. We have invested a great deal of effort into building a solid voting system and will be releasing it for public review soon. This includes a standard for CIPs.

After Shelley, we will be proposing all changes to Cardano as CIPs and adding increasingly better democratic mechanisms to gather consent for these changes. The burden should be on us to inform and rally the community behind a direction. We cannot allow a technocracy to form alongside a cult of personality of the good leaders. Cardano must have the legitimacy of consent from its users. Finally, the roadmap needs to be often reviewed and updated. It cannot be a static document so we are going to run a monthly clock and update it frequently. We are also going to create a channel for people to proposal alternative roadmaps. As our users become more sophisticated and we accrue more enterprise partnerships, we fully expect divergent paths to be proposed and our hope is that they are better than our own. As a last thought, a cryptocurrency is only as good as the community behind it. We’ve been humbled by how amazing, patient and helpful our community has been. Our hope is that the roadmap is something we can build together over time and it becomes one of our strongest pillars.

To learn more about the project see the recent whiteboard video. Filmed on location at IOHK's Blockchain technology lab, Tokyo Institute of Technology - 東京工業大学