A scalable value transfer protocol for the digital economy

Transcription

1 A scalable value transfer protocol for the digital economy 10k tx/sec, minimal latency, negligible fees

2 Elrond is a complete rethinking of public blockchain infrastructure Bitcoin 7 tps Ethereum 15 tps Visa 4000 tps TPS High Scalability Efficiency Robust Security Cross-chain interoperability Comparable or surpassing throughput as to centralized counterparts. Performing all network services with minimal energy and computational requirements. Enabling secure transactions and maintaining security in face of attacks. Enforced by design, permitting unlimited communication between external services.

3 Design goals Full decentralization Elrond is fully decentralized, and by this it eliminates the need for any trusted third party, hence removing any single point of failure. High efficiency Elrond is performing all network services with minimal energy and computational requirements. Linear scalability In Elrond the throughput increases linearly with the number of shards in the network. The more validators and shards, the more transactions the network can process. Minimal storage overhead Validators do not need to store the full transaction history but only a periodically computed reference point that summarizes a shard s state. Robust security Elrond is built to ensure resistance to known security problems like Sybil attack, Rogue-key attack, Nothing at Stake attack and others. Cross-chain interoperability E n f o r c e d b y d e s i g n, p e r m i t t i n g u n l i m i t e d communication between external services.

4 Brief analysis of major public blockchains Compared to Ethereum, Elrond eliminates both Differentiation energy and computational waste from PoW algorithms by implementing a SPoS consensus while using transaction processing parallelism through sharding. Project TPS Consensus Scalable Latency Interoperable Immediate Finality Compared to Algorand, Elrond doesn t have a single blockchain, instead it increases transaction s throughput using sharding. Elrond Bitcoin 7 PoW No 600s No No-60min (6 confirmations) also improves on Algorand s idea of random selection by reducing the selection time of the Ethereum 15 PoW No 98s Yes No-6mins (25 confirmations) consensus group from max 12 seconds to less than a second, but assumes that the adversaries cannot adapt within a round. Compared to Zilliqa, Elrond pushes the limits of sharding by using not only transaction sharding Algorand Dfinity PoS Threshold Relay Yes Yes 40s 1s No Yes Yes-Immediate finality No-10sec (2 confirmations) but also state sharding. Elrond completely eliminates the PoW mechanism and uses SPoS Zilliqa 2500 PoW + pbft Yes 120s No Yes-Immediate finality for consensus. Both architectures are building their own smart contract engine, but Elrond aims for EVM compliance to achieve interoperability between blockchains. Kadena Elrond Braided PoW SPoS Yes Yes <60s 4s No Yes No Yes-Immediate finality

5 Elrond Architecture Elrond Integration Diagram API Layer Novel architecture with SPoS and genuine state sharding Interoperability Component Reports & Audit Component Our solution for smart contracts will offer an EVM compliant engine to ensure seamless cross-chain integration and increased adoption. EVM Compliance Component Abstraction Layer Exchange Bridge Component Prototype specifications: Modular by design, plug-and-play architecture: Elrond-UI: Electron + Node.js Elrond-App: Rest API for UI Elrond-Core: Packages for Main Modules Shard access Layer Shard 1 Shard 2 Shard N Modules in the Elrond-Core: Single-responsibility, decoupling, flexibility Dynamic Client-to-Shard Distribution Layer Client 1 Client 2 Client 3 Client x

6 Elrond Architecture Cryptographic Layer: Signatures and Verifications Transaction signature and verification: Schnorr scheme Block signature and verification: Bellare and Neven multi-signature scheme No proof of knowledge of the secret (private) key (KOSK) needed Multi-signature scheme allows aggregation of signatures into a single valid signature Sharding SPoS Multisignature steps: Sending out the commitment hash Sending out the commitment Aggregating the commitments Calculating the signature part Aggregating signature Peer2Peer Core+Execution Cryptographic

7 Elrond Architecture Blockchain Core + Execution Layer: Distributed Ledger Core Sharding Backbone data model: Blocks, Transactions, Accounts Abstracts the blockchain structure and decouples the data model from the access medium Buffers transactions before block assembly Provides temporary or persistent storage SPoS Peer2Peer Execution Processes transactions and assembles blocks Maintains state across all nodes for consistency and security Block and transaction execution + state update Node synchronization Core+Execution Cryptographic

8 Elrond Architecture Communication Layer: Peer2Peer Network Underlying infrastructure for: Sharding Direct messaging Broadcasting Channels (intra-shard, cross-shard) SPoS On the network layer operate services that provide: Node connectivity and discovery Operations to Send and Retrieve objects over the network Operations to broadcast blocks/transactions/receipts intra-and cross-shard Request missing information Peer2Peer Core+Execution Cryptographic

9 Elrond Architecture Consensus Layer: Secure Proof of Stake (SPoS) SPoS is based on pbft Sharding Each shard contains an eligible validator list (stake and rating) A new node => locked stake, through a smart contract SPoS Each round a new validator group is selected using a fitnessproportionate selection mechanism (roulette wheel selection) The block proposer role is designated to the first selected node in the validator group Truly decentralized (no mining farms) and eco friendly Peer2Peer Core+Execution Increased security due to the randomly selected block proposer and validator group, different in each round, from among the eligible validators in a shard Cryptographic

10 Elrond Architecture Adaptive State Sharding State sharding = network sharding + transactions sharding + storage sharding Sharding Adaptive: network configuration (number of shards) changes as nodes are being added or removed from the network. Scalable: throughput increases with the number of shards and nodes in the network Balanced: node to shard distribution Entire address space (wallet) is divided between all the shards in a hierarchical binary tree model, according to the formulas presented in the whitepaper Adding a new shard: address space is half of that of its parent shard Removing a shard: address space is merged with the address space of its sibling shard => the original parent shard SPoS Peer2Peer Core+Execution Cryptographic

11 Elrond Architecture Adaptive State Sharding Cross-shard transactions: cross shard transaction mechanism: made simple - no locking of balances transactions are dispatched to the sender s shard (validation, substraction) processed transactions from the sender s shard are dispatched to the receiver s shard with a receipt cross shard transaction priority in the receiver s shard increases with time (incentive to process old transactions) Sharding SPoS Peer2Peer Optimized: reorganize addresses based on transaction history => more transactions intra-shard; no cross-shard overhead (A.I.) Core+Execution Secured: nodes are randomly reassigned to other shards Availability: only 1/3 nodes are reassigned Cryptographic Redundancy: higher resistance to sudden changes in node population and malicious shard takeover.

12 Business development and adoption Emphasis on Elrond testnet development and mainnet launch, concurrent with extending the core and research team Coordinate and publish blockchain research papers at key security conferences, formalizing adaptive state sharding, secure proof of stake, privacy preserving computation, Elrond VM and crypto economic models Develop and support necessary open-source tools to encourage developer involvement Launch Elrond ambassador program: incentivize key community members to organize events, experiment with the technology and evangelize tech companies around the world Establish an ecosystem financial grant programme with the purpose of accelerating the development of tools and applications built on Elrond Secure key partnerships with startups and enterprises in need of open and transparent scalability solution DApp incentive program: define key specifications for 3 important dapps to be built on Elrond, and publish global challenge Secure exchange listings and integration with main liquidity providers, integration with payment processors and wallets Organize and support hackathons to create fruitful engagements with the larger developer community Increase Elrond awareness by attending top conferences, organize meetups and engage in relevant dialogues and debates Support educational programs in cooperation with universities and research and development centres Unveil key components in the new digital economy landscape map Launch Elrond ecosystem fund: to provide seed capital, support and a streamlined process with info needed to build a dapp on Elrond

13 Elrond Ecosystem TECH LAYER Adaptive State Sharding Secure Proof of Stake EVM EWASM IELE COMPONENT LAYER Economic Governance Computation PRACTICAL LAYER Native Currency Consensus Smart Contracts APPLICATION LAYER Crypto Assets Privacy Coins Stable Coins Store of Value Dex Games Fundraising Social Media Marketplace Voting Oracles Location Services TOOLS LAYER Wallets Explorers Dev Tools Friendly Languages Frameworks ADOPTION LAYER Ambassador Program Grant Program Ecosystem Fund Open Source Tools Private Blockchain Enterprise Solutions

14 A strong team of professionals determined on making things happen Beniamin Mincu CEO Lucian Todea COO Lucian Mincu CIO Felix Crisan Head of Research Radu Chis Head of Technology Adrian Dobrita Head of Engineering Ex NEM Core Entrepreneur, investor Infrastructure engineer CTO in two startups PhD in Computer Science MSc Advanced Computing Systems Blockchain startups 5 startups Network solutions Payments, Big data, Blockchain technologist Computer Architecture 1st Place national Ai Multi-Agent Systems Competition 4 years experience 15 years experience 8 years experience 20 years experience 10 years experience 10 years experience Sebastian Marian Core Developer Iulian Pascalau Core Developer Mihai Stancu Software Engineer Corcoveanu Cristian Software Engineer Dan Voicu Head of Communication Larisa Oltean UI/UX Bachelor s degree in Computer Science Bachelor s degree in Computer Science Machine Learning PhD student Bachelor s degree in Computer Science Bachelor s degree Politics Master Degree in Design 3rd place RoboCup Industrial-grade software Optimization and AI Software engineering Business Administration Logical visual solutions 18 years experience 10 years experience 10 years experience 7 years experience Communication skills 8 years experience

15 Advisors with relevant experience supporting the team Raul Jordan Technical Advisor Fabio C. Canesin Technical Advisor Ethan Fast Technical Advisor Core developer Ethereum Foundation Thiel fellowship'16 Co-leading Prysmatic Labs Co-Founder City of Zion Co-Founder NEX Co-founder & CTO Lemonaid Learning Analytics Co-Founder City of Zion Co-Founder NEX CS PhD from Stanford University Andrei Pitis Business Advisor VP of Engineering at Fitbit Founder & CEO at Vector Watch Angel Investor with tech leadership positions Alex Iskold Business Advisor Alex Tabarrok Economics Advisor Patrick Storchenegger Legal Advisor Managing Director at Techstars NYC Founder GetGlue & Information Laboratory Award winner & seasoned investor in over 90 startups Professor of economics at G. Mason University Co-founder of Marginal Revolution University Bartley J. Madden Chair in Economics Part of Ethereum Foundation International tax, corporate, commercial, and capital market law

16 Roadmap Q Q3 Q4 Q Q Q2 Q Technical work begins Preliminary technical Proof of Concept finalized Elrond Prototype Fully Featured Testnet Elrond Mainnent Elrond Hub Valar society

17 September 2018 Join us in building the internet of value! Visit our website at Read our technical whitepaper Contact us at