Some Thoughts on DApps

hi this is charles hoskinson broadcasting live from warm sunny colorado currently snowing but it's always warm and sunny sometimes colorado the reason why i'm making this video is that there's been a huge amount of intellectual dishonesty i think on reddit twitter and other channels especially coming from ethereum maximalists or other actors in the space about the nature of dapps on cardano at the moment cardano is in the middle of its upgrade phase getting to goku complete we said it's going to be three stages metadata tokens and then full smart contract support on the pluto side and over time the ecosystem will build out and will wire on side chains and other such things and we have this huge ecosystem coinbase just listed us how about that and there's dozens of partners around there's hundreds of entities that want to work with us and there are despite the fact that we don't have full programmability at the base layer already applications like shoe authentication on new balance or authentication of cattle with beef chain just using metadata features of cardano yet they say what are the apps running on cardano that's like saying you're opening a nightclub you haven't opened it yet and you say well how come no one's in your nightclubs we're still building it and as if smart contracts come and there'll be no demand we're overwhelmingly subscribed at the moment our company has no more capacity to surface deal flow that comes in for cardone people come to me unless it's a super high value deal and some have we've jumped off the queue we actually say no and turn them down because we don't have the operating capacity to handle that much deal flow and we had a mergo or someone else if you look at catalyst there are six nft marketplaces seeking funding there are stable coins seeking funding some of which have already been deployed for example on ergo oracle seeking funding dex is seeking funding at this moment and we're not even at that stage yet so we're rapidly moving and there's an overwhelming demand in a million person ecosystem with a fanatical level of enthusiasm and loyalty and passion and despite all of that the intellectual dishonesty is it's a ghost chain there's nothing there so we tweeted out an ecosystem map just to give you a sense of a small subset of the totality of the people working and doing things with us it was it's very easy because we've already done it to launch smart contracts for example were ethereum core developers with the ethereum classic client it worked sorry the stream died so if i wanted to tomorrow it would be trivial to have ethereum based smart contracts and port things over to cardano and where that leaves us as an ecosystem sixty dollar transaction fees hundred dollar transaction fees yield farming useless divide nfts selling for hundreds of thousands of dollars that are meaningless and pointless there's nothing real substantive sustainable or long-term viable in that economic model which is why vitalik buterin is moving from fs2 to s from f1 to f2 now you tell me how many f2 applications are there how many things are running on that network in production at scale at the moment although don't worry some future piece of technology will magically materialize and save the day but yet we're not given the luxury of doing it right only they are with the network effect that they get in a very ephemeral sense as the first mover the dap ecosystem is not healthy the vast majority of dabs run mostly off chain are mostly centralized are not in any sense governed in a way that is truly decentralized in fact the vast majority of adapt logic is in the hands of a very few small group of actors there's also a pareto principle there's 3800 apps that have been deployed best of my knowledge on ethereum the vast majority of them are ghost apps there's no use or utility with them only a few hundred of those applications actually consume the majority of the transaction volume on ethereum you look at last year only 31 of new dapps were built on ethereum the other 69 were not and that trend will continue this year if anything for cost there are very real problems with this that model and if the goal is just rampant speculation ponzi schemes no real use in utility and no ability to scale to millions to billions of people i want nothing to do with that if the goal is to scale to millions and billions of people and change the world and actually build things that people use long term and have sustainable economics okay sign me up that makes sense and here's the reality no one in the industry has built that yet we're all chasing it we're all proposing models for how to do these things the very nature of gas has to be revisited it is difficult to be a store of value and have a deflationary monetary volatile policy in a staking whole culture at the same time try to have predictable pricing for applications like amazon does and other actors do so there's a lot of discussions about how to accommodate that a reasonable way and there's a lot of really good people wake up every day and think about these things and what's extraordinary to me is that there's just no understanding of this reality amongst many people who occupy the cryptocurrency space bitcoin has no dapps on it it's the most valuable piece of real estate in cryptocurrency lab there you go so you tell me there is no correlation at the moment between gap use and utility and the actual pricing of these assets we still live in speculation land i'm proud of pluto's i'm proud of extended uptxl i'm proud of the models that we're bringing out i'm proud of how we're approaching side chains i'm proud of how we think about computation i'm proud of the fact that there's this gargantuan ecosystem that's waiting for us to get to that point where smart contracts come on the chain and everything is transparent out in the open if you go to cardano update you can see where number one for github commits you can see a huge amount of progress day by day towards that benchmark meaning we're almost there so after we get there look at three months to six months merry hard fork happens 1300 tokens have already been issued on cardano as predicted huge amount of effort will probably close out the year with ten thousand to twenty thousand many of which connected to real projects and interesting use and utility if not more when we launch the metadata standard there's websites you can go to like cardonawall.