🫖 Time with Kev Silk: AppChains on Ethereum

Recorded: June 29, 2023 Duration: 0:36:28

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Well, I thought the music will be back whenever I muted my mic, but it seems not.
Oh hi, Kav, by the way, GM, and to everyone else.
Hey Sergio, hey everyone, thanks for joining.
I'm just going to set an extra co-host just in case things go wrong.
Well, as to see we have more people joining.
Alright, so let's get started. Welcome everyone to the inaugural episode of the Antert Talks. We are thrilled to be kicking off this new series.
with the very special session focusing on the recently launched AppChains on Ethereum and today we have a distinguished guest joining us which is Kev Silk AppChains lead at Anker. It's not the first time that
that you are in a live session with us, right? But I think it's especially exciting today. And yeah, I just wanted to say as well that although we won't be interacting directly with the audience today,
dedicated session offers a fairly rare opportunity to gain valuable insights directly from the source, right? Yeah, without further ado, let's welcome Kev. Hi Kev.
Hey, Sergio. Hey, everyone. Thanks for joining. Super excited to talk to you all today about our latest announcement of AppGains on Ethereum, which we announced on Tuesday and dive a little bit deeper into what we're doing and the benefits that we're providing to the industry.
Great, yeah. I'm super excited as well. I even forgot to introduce myself. I'm Sarah Dune, your regular host at this point.
and do community at anchor and I'm super happy to have everyone here and well of course have you here right Kev. Now well I think many of
are already familiar with the app change product, right? But for those who might be unfamiliar, could you provide a brief explanation of what app chains are and how they differ from the main net as well?
Yeah, absolutely. So AppChains, which is short for application specific blockchains, I like to look at them as essentially dedicated blockchains that are built on top of an existing L1 or L2 blockchain network.
So right now, the L1s and the L2 chains that support this type of modular architecture chains like Polygon, Binance, Avalanche, Cosmos, and now since our Tuesday announcement, we can now build app chains on
top of Ethereum as well. But I think it's important to write even more context with this. So I mean, when you think about it, like instead of building applications around public blockchain infrastructure, with app chains, you build the infrastructure
around the application and you're completely customizing all aspects of the network to suit the exact needs of the specific use case. So if you think of like to use an analogy, think of New York, think of New York City and if
And then you can imagine the app chains as like the five boroughs of New York City, right? You have Manhattan, you have Brooklyn, you know, Queens, the Bronx, and Staten Island. Look at those like app chains. And each borough or app chain is
building on top of the Bedrock Foundation that is New York City or Ethereum. I like to paint that picture because it provides a good analogy as to what each app chain is and how it contributes to the overall foundation of the L1 or L2 chain.
That's a great one, especially great analogy, especially for us, Spider-Man fans. Yeah, I think there's room for a bit more specific question as well, which is what are the anchor app chains?
So, yeah, so anchor as an infrastructure provider in the blockchain space, what we do with our AppJain products is essentially the same with our other infrastructure. So we build the blockchain infrastructure of these AppJains with our official partners like Binance, Polygon,
and Avalanche and now in the near future of Ethereum. So rather than the developer or the business having to build the infrastructure of that specific application chain, Anchor does all the engineering work, all the infrastructure work, we build it
We grow it and we scale it so that the developer or the business can only focus on their application, their business goals, their business needs rather than having to worry about building the infrastructure and power on the infrastructure that is supporting their business.
I see. And so what motivated the team to introduce them, you know, have changed on the Ethereum network. And I think that you, well, you can represent the team who is behind this product, right? And what are the unique benefits or opportunities that will
you and the team believe AppChains bring to the Ethereum ecosystem? Yes, so the way that I view it and the rest of the team views it is the Ethereum is ultimately, you know, the the the holy grail of blockchains as far as large enterprises are concerned and what I mean by that is large enterprises
Looking to join the blockchain space are most infatuated with Ethereum. We've seen these corporations in the past buying ETH the asset, buying the ETH coin, but they've been hesitant to build on top of the Ethereum network because up until this point it's very difficult to scale.
And that's a massive challenge for them because they need to in order to make that vertical jump and actually start building on top of Ethereum's network that your transactions fees need to be much faster and they need to be able to power the mainstream applications and enlarged businesses for these
for these enterprises. As of up to this day, the gas fees were way too high to be viable for these types of operations. Now obviously, Anchor understood that and we aim to innovate and ultimately be the pioneer of abgenes on Ethereum, bridging that gap for large enterprises
join. So with anchor app chains on Ethereum, what we're doing is we're removing those barriers to entry and we're allowing these enterprises to build their own dedicated blockchain within the Ethereum ecosystem that has speed, reliability, security, low gas fees, customer
as bogasphies if they wish while still receiving that unmatched truss truss of Ethereum and the decentralization of Ethereum. So we're almost solving that blockchain trilema introducing that scalability incorporation into the decentralization and security of Ethereum.
We view that as ultimately what's going to ultimately contribute to the consistent wider adoption of crypto over time because as these large enterprises start to build on top of Ethereum, they'll begin bringing their consumers into the space as well and that's key in order for this industry to continue to thrive.
It makes a lot sense, especially when well with the analogy that you mentioned in our New York City. And well, I guess it's going to be a great one and definitely super excited as well to be part of anchor at this point, right? When we launch this new
Now we dive a bit deeper into how AppChange.net will address the scalability challenges faced by other traditional blockchain networks as well. Let me explain how to improve right transaction through a port and
processing speed as well, right? Yeah, for sure. So basically, instead of sharing the Ethereum network with thousands of other applications and developers and businesses all competing for traffic on Ethereum's one one mempool, now these businesses, these applications, they'll have their own
dedicated blockchain with their own dedicated mempool, which is where all the transactions get sent to be validated and stored, that in and of itself results in throughput that will be 1000 times greater. Because no longer are these businesses and developers having to compete for traffic on that one mempool. They have the right
own dedicated one. And that's key. Now, an app chain on Ethereum has its own dedicated infrastructure as well, which means DApps and Login businesses, they'll be leveraging infrastructure performance that's much greater than that of a public chain, but still benefiting from the security that comes from
a large validator set, I think Ethereum somewhere around like 560, you know, 580,000 validators could be more. And that kind of throughput and performance that decentralized apps and businesses will gain is what they need in order to truly be able to scale in this industry. And then one thing that I just thought about
to be honest is not only is it beneficial to these businesses in terms of allowing them to be able to scale, but for the Ethereum ecosystem it's also beneficial because it increases the liquidity across the entire network. So by enhancing scalability, you're allowing retail users to actually utilize these applications.
or rather than just buy digital assets, they're truly becoming users of the network and they're learning through experience and that's key. So, the solving the scalability portion of this, it's really a domino effect to consistent water adoption of crypto from retail users over time.
just can't believe how much we have advanced, especially since the moment I joined crypto which was in 2018, we had this dilemma. And again, super happy to be part of this, right? That was just from the community side.
Now I have a question from another point of view probably which is what impact will AppChains have on the development of that and smart contracts on Ethereum and well I guess this is more for developers but from another point of view from or user point of view right how does it enhance the overall
all user experience as well right for us. Yes so in order to enhance the user experience of anything you have to enhance the building experience right so what that means is you need to ultimately empower builders with high quality you know infrastructure in order to you know
reach their goals. And that's what we care about most about Anchor. So I guess to use an analogy, another one, but from the physical world, it's like, if you want to have a stellar highway system, right, what do you need to do? You need to empower civil engineers with high performing construction equipment, construction management systems,
and the best overall infrastructure in order to build high quality and safe highways, right? Well, it's the same for the digital world. It's the same for software engineers building gaps on blockchain networks. Or large businesses seeking to make a vertical jump to the blockchain space. We need to empower them with high quality blockchain
infrastructure, which will allow them to create high quality user experiences in Web 3 projects. And that's exactly what we're doing with AppChains on Ethereum. We're improving the overall building experience on top of Ethereum, which enables developers to build, grow, and scale their passion projects in a way that's going to have
a superior user experience than that of what we're used to in the blockchain space. We've been here for a long time. We know that the user experience could definitely be improved in Web 3 compared to that of Web 2. And by improving the building experience on top of Ethereum, what we're doing is bringing in the
top developer talent from Web 2, 2, 3, making it easy for them to continue to build in a high quality manner just in Web 3. So leveraging dedicated infrastructure within the Ethereum ecosystem, it attracts developers, it attracts large businesses to join.
create those applications that match UX's of Web 2. And that's key, right? Because it will be very important as, you know, listen, the world becomes more digital by the day, right? We see numerous things coming online and it's going to be very important for programmable money and stable coins and
and government digital assets to become more adopted more and more over time in order for that to happen, the infrastructure needs to be there. And obviously as an infrastructure provider at Anchor, that's what we care most about and that's why we're truly pioneering the idea and the execution of VAP chains on Ethereum.
Thank you for such a detailed answer, KFN. I noticed that you mentioned physical world and digital world, right? And it's something that, well, gradually, I have ended up saying as well, I don't say real world anymore, you know, because
At the end of the day, I think that as you made the differentiation, both are real. It's just one is physical, one is digital. And I guess that same as in the physical world, you need proper tools. Yeah, sometimes we just don't notice that in the digital world, there are
as well. Well, that should be good enough for developers to build nice things. And I wanted to bring up something that, well, I am in close contact with the community, right?
We have been wondering as well, right? When you mentioned in our latest blog entry, use ETH, so the token as your gas token or your new native app chain token. What does this mean exactly?
Essentially, with AppChains on Ethereum, what developers and businesses are going to have the option to do is choose what gas token they want to use. They can use ETH for gas or they can create their own AppChains token, any ERC20 token that runs on top of Ethereum, which is currently
the App Chain Business Model works to utilize this gas fees. But I want to break this down a little bit further because I know that from a high level, it can seem a little bit complicated. So you can think of basically App Chain's deploy on Ethereum as roll-up solutions that are living on top of the Ethereum network, right?
So they're not going to have any issue utilizing ETH, the coin is gaspies because ETH is easy to find and most Web3 users hold in. They interact with ETH regularly through decentralized applications through Metamask and other wallets. So for some App Chain clients on Ethereum and Ethereum,
future, specifically the way that I view it as startup projects who are seeking to grow their audience and their user base, it's going to make much more sense for them to utilize ETH as their gas fees for basically enabling a seamless onboarding process for their consumers who, you know,
They will need to purchase another token that's new and not as proven as other established businesses or applications. As a startup project who is building an App Chain on Ethereum, it just makes business sense for them to utilize the ETH rather than create their own token and try to market that token to consume
as well as trying to generate revenue in the form of gas fees of it. Now, on the other hand, the other option is creating your own app chain token. So instead of using ETH, you'll create your own token and utilize this for gas fees. And the benefit is you have a new revenue stream for your business from collecting a
cut of the global gas fees and then the opportunity to build value from your token. And this is the model that I see most large enterprises using because like think about companies, they about the fidelities, the JP Morgan's, the Nike's, the FedEx's of the world.
They already have such an established brand right there known globally We all know who they are it makes business sense for them to create their own token that their loyal customers will immediately recognize Trust and then start to utilize right away right like they don't need to
create a brand. They already have a brand that people are going to recognize. So if Nike were to build an App Chain on Ethereum with their own token, Nike consumers will immediately recognize and begin to make transactions with the Nike token. And then as a result, that token will start to appreciate and value very quickly.
whereas the startup project might take a little bit more time. So the startup project will most likely start with ETH, and as they build, grow, and scale their brand will improve, they can migrate to the App Chain token, which will become trusted, reliable, and attractable to their consumers over time.
- Mm-hmm. Why, you actually answered my next question. Well, sort of, right? I was going to ask if there was a sort of migration thing. Well, I guess, thanks for reading my mind, Kev.
And now another one which is how do app change on Ethereum interact with the main Ethereum blockchain? It would be good if you can describe a bit of communication protocols or mechanisms in place.
Basically, right, following interoperability between both chains, which is something I guess is a bit challenging to understand as well. Yeah, so I can't get into too much detail about that until we go officially live with the product, but essentially what we're doing is
creating a fully EVM compatible blockchains or blockchains on top of a theorem that leverages a therium's trust in security. So essentially AppChains on Ethereum are going to operate in a similar way as L2's, CK rollups who are aggregating
validating transactions before communicating with the Ethereum-made network to submit validity proofs that are validated by Ethereum before becoming a part of its new state. That is all I can get into from a high level, and I know that's a bit frustrating, but what I will say is over the next
couple months as we continue to fully launch this to market, we'll be giving updates about more technicalities of the processes that are in place to actually execute this. But unfortunately right now I can't give out more information than what I already
or head well such a pity. I will make sure I blog your calendar for an hour or two for another Ttalk session when you know we actually launch this to the market and then you know we will be diving into
this hopefully. Right. But yeah, thank you. Thank you so much, Kev, you know, for answering the best you can with what you can share with us. Well, next, let's talk about something else then.
anticipating implications of well introducing this new product, right? App chains on Ethereum for developer businesses and users. How do you think it will shape the future of Ethereum as a platform? Well, that's the end of the day, right?
Yeah, so I mean it goes back to empowering developers with what they want and giving them high quality building experiences Right so over the past year and a half to two years as as myself and the team have built out this product We understand that especially the large enterprises they want to build
top of the theorem. And that was our goal with this is to empower them to be able to do just that. But through an approach that is the best and the most scalable way possible. So one thing that I'm really excited about is that we, you know, at Anchor, we're pioneering the shift from a large
enterprises just buying eith and holding eith the asset to actually building applications on Ethereum. On another note, of course, our goal with AppChains specifically on top of Ethereum is to generate more revenue and value to anchor the business. My goal with this is to also improve
Ethereum the network in the environment for building there at a mutually beneficial upgrade to the entire ecosystem. I like to use the example, another analogy, how millions of people utilize the Internet today without truly understanding or caring.
about how it works because all they care about is the fact that it just works right like just like right now on this Twitter spaces we're using several layers of internet infrastructure just to have this conversation without the listeners or even you or myself required to know you know how every
layer works. My goal with AppChains on Ethereum and Acres goal is to bring that same type of user experience to Web 3, which as a result will truly bring in the Web 2 consumers and retail users into the Web 3 space and start utilizing
applications on the Ethereum network without even knowing they're utilizing Ethereum's blockchain at all. And that's key. That is what's going to truly allow for consistent water adoption of crypto over time. And that's the goal with this, and we're very excited about it.
Yeah, definitely. Well, you know, you have drew me to my next question as well, which are your personal thoughts.
on the future of AppChains, like how we believe they will shape the way we interact with apps and blockchain technologies for following possibly on what you have just told us.
Yeah, I mean, obviously I've been working on this product for a long time, so it's something I truly believe in. I truly believe in the App Chain thesis. And I mean, the way that I view it is massive adoption over time will occur when we provide the best benefits of blockchain technology without the drawbacks.
facts. And this one will most likely mean a variety of scaling solutions working together in a fully interoperable and standardized way. There's so many great scaling solutions out in the industry right now. And for me, I see application chains as one of the more prominent ones because
These large enterprises need dedicated blockchain infrastructure to match their high-quality user experiences to translate over to the decentralized world of Web 3. They understand that they cannot have their older generation
education through reading. The goal is to have Ted for us to empower these these larger businesses to join and educate their consumers through experience. Right? It's like the same way Web2 joined in the early 2000s and people put in their credit card for the first
time on the internet. Like, that was a little bit of a scary experience. It was something new, but over time we got used to it. And I believe that AppChains will empower large enterprises to make that vertical jump and have a little bit less scary of a first time experience in the blockchain space for their consumers. Right?
We know what these large enterprises need and for AppChains on Ethereum, that is what's going to allow them to get what they need to reach their business goals and make the ultimate vertical jump to the blockchain space. So I guess in a nutshell, I see a world where all the major outwans and outtos build this type of
of modular architecture because they know everything that I just said. They know in order to capture those large businesses and developers, they need to provide that infrastructure that allows the developers of startup projects or large enterprises to build, grow and scale their businesses in the Web 3 space. So we always
need interoperability, right? To bridge consumers utilizing app chains on different networks to communicate with each other, to do business with each other, which I think is very important, which is why interoperability is key. And businesses on say like a colleague on Supernet working with a business app
application that's operating on a B&B sidechain and those consumers to talk to each other and transact with each other, we need that type of interoperability to come in the near future. And those are also scaling solutions that are related to the App Chain thesis that I view as coming in the near future.
And it's a great prospect of the future of world, world blockchain. And your example has reminded me of when I got scolded as a kid, right? I was the very first computer I know, and I just asked my dad for his credit card that I had to
I think I was trying to register for a kids club and I had to pay like a fee to get my card sent, you know, delivery. And oh my gosh, I just got scolded so bad. But yeah, I think this would be a wrap up already.
Thank you for just saying thank you very much, Kav from the whole team, from the whole marketing team, for being part of the inaugural anchor Ttalk session and well, you're an expertized and an inside and opinion
are well. As the actions lead over here, right, have been definitely involved in providing a deeper understanding, right, of Abjinsheng Ethereum. Thank you as well for during the session, you know, through the session answering questions as well.
which we have seen in the community, right? And I think the contribution you have made to this session is impactful. Yeah, great. Yeah, greatly appreciate your time. Today with us. And well, I just wanted to say as well, you have been an exceptional guest.
Thank you for having me. Thank you, Kev. And now for everyone else, as we wrap up or first ever on the T-Talk session, I would like to express our appreciation to Kev again.
Today's session, as I mentioned at the beginning, was dedicated to well, basically providing a different understanding of this exciting technology, right? And we will, to note once again that for this particular episode, we are focusing on delivering a sort of present
presentation style format, right, Kev? And therefore, we are not having a direct interaction with the audience and community. However, we value your presence and support, right? We definitely appreciate it. And we encourage you to share your thoughts and questions through our official social media.
the channels, remember to follow us on Twitter, which we are just Twitter.com/Anker on Instagram as well if you're over there. You can follow Kav as well just by well clicking on his profile P and then click follow or tap right.
I just realized you are a fight-a-man fan as well, okay? I'm a big big Spider-Man fan. Any analogy I can use that is associated with Peter Parker I use. I love the multi-bar. I mean I'm just going this week again
into the cinema to watch it. Well yeah, thank you everyone once again for being part of this super special event. We are super excited as well for launching hot chains on the only Ethereum, right? I think a couple of months it would be to launch the market.
And I will make sure I blog Caves calendar as well so we can have him here once again. And yeah, I think that's all from my side. Thank you all once again. We're looking forward to having you join in the future, you know, other talks. Anything else you would like to say, Caves?
No, I just want to say thank you, Sergio for hosting. Thank you to everyone for joining. And as Sergio had mentioned, I'll be jumping on here a couple of different times over the next few months to provide more insights into the execution of how we're making this happen and also provide some insight into the clients that we're working with.
with AppChains on Ethereum because there's definitely some exciting news regarding the first and first clients of AppChains on Ethereum. Unfortunately, I can't say who exactly it is right now. Those, those, those them, the NDAs, right?
Oh well, they are necessary. That would be great, Kev. I will make sure I block your calendar in coming months. Thank you so much once again. I'm just trying to know as well who are the first ones to join.
Yeah, thanks everyone as well. So this is all for today and see ya next time.
(audience applauding)