Feb. 17, 2025

Everything SVM: Scaling Blockchain & Powering Unstoppable Apps with Celestia’s Nick White

What if building a blockchain was as easy as deploying a smart contract? On this episode of Everything SVM on The Index, co-hosts Alex Kehaya and Omar Zaki, CEO of Mantis, sit down with Nick White, Vice President of Celestia Labs, to explore how modular blockchain architectures revolutionize scalability and innovation. Nick breaks down Celestia’s groundbreaking approach, which separates execution from consensus and data availability, providing developers with unprecedented flexibility. This paradigm shift is key to overcoming the bottlenecks that have long-constrained networks like Ethereum and Solana.

The conversation ventures into the rapidly evolving landscape of DeFi protocols and application-specific chains, where innovation is reshaping how developers build decentralized applications. With Solana’s high-speed block times pushing the limits of transaction efficiency, we examine how modular solutions like roll-ups could unlock even faster confirmations and tailored scalability. The AppChain thesis takes center stage as we explore Celestia-based projects that exemplifies the potential for customizable and private transactions.

They discuss the next evolution of blockchain development, where deploying roll-ups on Celestia might soon be more accessible than launching a smart contract. As we unpack the challenges of modular ecosystems and the solutions emerging to address them, we paint a vision of the ultimate end game for blockchain scalability—a future where modular chains provide unmatched flexibility, efficiency, and innovation.

Celestia: https://celestia.org/

Mantis: https://mantis.app/

Show Links

The Index
X Channel
YouTube


Host - Alex Kehaya

Producer - Shawn Nova

 

 

Chapters

00:00 - Blockchain Modularity and Scalability Debate

14:37 - Blockchain Scaling Throughput and Data Availability

27:04 - The Power of Blockchain Modularity

31:28 - DeFi Protocols and Application-Specific Chains

38:52 - Launching Roll-Ups and App Chains

Transcript

WEBVTT

00:00:00.580 --> 00:00:01.824
Hey everyone it's Alex.

00:00:01.864 --> 00:00:09.631
Cahaya from the Index Podcast, I want to tell you about Mantis, a groundbreaking platform that's simplifying the way we interact across blockchains.

00:00:09.631 --> 00:00:13.808
If you're a developer or just into DeFi, you'll want to pay attention.

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Mantis enables trust minimized transactions across different chains, letting you trade or execute actions seamlessly while getting the best possible outcome, all without the usual complexities.

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Imagine being able to move assets and settle transactions across blockchains easily, with maximum value extraction, all while staying secure and decentralized.

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That is what Mantis is bringing to the table.

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Mantis is an official sponsor of the Index podcast, and their founder, omar, and I regularly host a new live stream series on X called Everything SVM.

00:00:48.713 --> 00:01:01.854
We have these live streams weekly, and if you want to keep up with what's happening in the Solana ecosystem, especially as it relates to the new innovative deployments of the Solana virtual machine, you should tune into this live stream.

00:01:01.854 --> 00:01:10.868
Check them out at mantisapp and follow them onX at Mantis M-A-N-T-I-S At the Index.

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We believe that people are worth knowing and we thank Mantis for enabling us to tell the stories of the people who are building the future of the internet.

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We'll see you on the other side side.

00:01:56.917 --> 00:02:11.143
Welcome to the Index Podcast co-host Alex Kahaya, along with Omar Zaki, and today I'm excited to have Nick White, vice President of Celestia Labs, which is a modular blockchain powering unstoppable apps with full stack customizability.

00:02:11.143 --> 00:02:12.486
Thanks for being here, nick.

00:02:12.486 --> 00:02:14.451
I appreciate you taking the time today.

00:02:15.259 --> 00:02:15.721
Thanks, alex.

00:02:15.721 --> 00:02:17.407
Yeah, it's a little bit of a mouthful.

00:02:17.407 --> 00:02:23.091
You know unstoppable apps with full stack customizability, but you got through it, excited to talk about all things SVM.

00:02:23.091 --> 00:02:28.265
But you got through it, excited to talk about all things SVM.

00:02:28.265 --> 00:02:46.430
Yeah, I feel like a lot of people may perceive Celestia and Solana to be kind of opposing forces in this like modular versus monolithic sort of architecture debate, but I think there's a lot of alignment between Solana and Celestia in terms of wanting to provide abundance, like abundant throughput I mean wanting to optimize the stack for performance.

00:02:46.430 --> 00:02:51.111
But then there are also some like divergences and philosophy and thinking and design.

00:02:51.111 --> 00:02:52.526
But, yeah, it's a pleasure to be here.

00:02:53.068 --> 00:02:59.491
It's really interesting to have watched this debate unfold really over like the last 12 months more intensely than it did the previous like couple of years.

00:02:59.491 --> 00:03:08.436
For Solana at least, like inside the Solana ecosystem, right, like there are other ecosystems like Cosmos and stuff like Cosmos was like out of the gate, highly modular, right.

00:03:08.436 --> 00:03:15.390
I think like the natural maturation process of anything that's monolithic is to become modular.

00:03:15.390 --> 00:03:17.903
I think we've seen that happen just over time.

00:03:17.903 --> 00:03:25.180
Like if you look at Linux one of the most widely pieces of software that's used and that's open source it kind of went the same direction.

00:03:25.180 --> 00:03:25.762
Eventually.

00:03:25.762 --> 00:03:26.944
I don't really know why that is.

00:03:26.944 --> 00:03:38.590
Perhaps we could talk about that, but before we do, maybe you can just jump in and just tell us a little bit about Celestia, for people who might not know exactly what it is and why you're working on that.

00:03:38.590 --> 00:03:41.842
Why do you get out of bed every day to work on Celestia?

00:03:42.484 --> 00:03:49.087
So Celestia is a modular blockchain network, which means that it doesn't do all the functions of a blockchain.

00:03:49.087 --> 00:03:56.567
It purposely leaves execution, which is where, like, transactions get processed and state gets updated.

00:03:56.567 --> 00:04:16.194
It leaves that to the developer to define and run as their own sort of application specific chain, and Celestia just focuses on the back end, if you will, of consensus and data availability, and the beauty of taking that approach is that Celestia can be extremely scalable and flexible as a result of that.

00:04:16.194 --> 00:04:35.629
So it's possible to scale execution in terms of, like you know, increasing the performance of a chain, of a single chain like Solana, but then it's much easier to just scale the consensus and data availability throughput of a single protocol, whereas, like for execution, I think at some point you have to basically go into a sharded model.

00:04:36.211 --> 00:04:44.684
The core innovation that Slessy uses is something called data availability sampling, and that's an innovation that came around in 2019, actually 2018, I think.

00:04:45.404 --> 00:05:06.380
It basically describes a way that you can increase the size of a block in a specific blockchain without actually making it harder to verify the chain, so you can.

00:05:06.401 --> 00:05:10.954
Finally, you know the age old debate in Bitcoin or even Ethereum of like, how can we scale the system while staying decentralized was solved in a sense by that innovation.

00:05:10.954 --> 00:05:29.430
You can think of Celestia as this very, very scalable base layer blockchain on which someone can launch their own app that can have full stack customizability, meaning that they're not just writing a smart contract, they can define the sequencing rules of their application, they can define the virtual machine or like anything like specific about the state machine.

00:05:29.430 --> 00:05:45.160
They have, like just way, way, way more control over the thing that they're building, versus, like, if you build on something like Ethereum L1 or Solana L1, a lot of those choices have been made for you, and so that's kind of what the modular stack is about.

00:05:45.160 --> 00:05:57.492
To me, it's about kind of an evolution of the AppChain thesis that originated in Cosmos but, I would say, executed in a much more scalable kind of practical way.

00:05:58.100 --> 00:06:01.786
I have so many questions but before I ask one just observation.

00:06:01.786 --> 00:06:15.514
I'm seeing in the Solana ecosystem is just this natural progression to modularity, and it's even being forced because there are just other people who want to take the open source code that is Solana and experiment with it and do different things.

00:06:15.514 --> 00:06:21.752
You have the Solana chain, which is powered by the guys that built Zen, the Zen protocol on ETH.

00:06:21.752 --> 00:06:25.348
They did simple things like they removed the voting fees.

00:06:25.348 --> 00:06:28.024
They made it proof of work instead of proof of stake.

00:06:28.024 --> 00:06:29.990
So they've modified the consensus.

00:06:29.990 --> 00:06:35.050
And then they've modified some of the core economics of the network and some of this stuff was easy.

00:06:35.050 --> 00:06:39.410
The removing of fees was like one line of code getting deleted from the validator.

00:06:39.410 --> 00:06:42.387
But you can't just YOLO that onto mainnet when you're at the $100 billion market cap asset, right.

00:06:42.387 --> 00:06:49.329
You can't just YOLO that onto mainnet when you're a $100 billion market cap asset, right, like you can't make those experiments happen.

00:06:50.100 --> 00:06:52.605
And then there's another company that we're working with at ABK.

00:06:52.605 --> 00:06:53.947
That's in this AI space.

00:06:53.947 --> 00:07:00.339
That's doing some really interesting thing that they need the validators to be GPU enabled for AI and they're also altering the consensus.

00:07:00.339 --> 00:07:22.088
So there's an actual hardware change which requires some software changes to make it work on the validator, as well as a consensus change, and so, long term, we think there needs to be a modular validator right where you strip all these components to define how it behaves, just so you can accomplish the same thing, same thing you guys are accomplishing at Celestia, which is more customizability, more flexibility for the developers who who want to do things with it.

00:07:22.608 --> 00:07:36.124
If some or all of this gets merged onto mainnet, then for mainnet agave or firedancer, it's just going to mean that you get more people contributing to it, because it breaks it down from a million lines of code in one repo that's really hard to navigate to.

00:07:36.124 --> 00:07:49.182
Oh, I just have to know this one specific thing about consensus or about what kind of hardware can be used on the network, and so I think it's a real net benefit, regardless of what your designs are.

00:07:49.182 --> 00:07:50.024
On scalability, I guess, is what I'm saying.

00:07:50.024 --> 00:07:55.684
The question that came to my mind, though, for you was and this is gonna sound dumb what is data availability Like?

00:07:55.684 --> 00:07:59.192
Explain that to me as if I'm, like you know, 12.

00:08:00.480 --> 00:08:04.952
It's a question that sounds dumb but is a very, very difficult question to answer.

00:08:04.952 --> 00:08:07.108
And it sounds dumb but is a very, very difficult question to answer.

00:08:07.108 --> 00:08:09.339
And it sounds dumb because data availability sounds like an intuitive term.

00:08:09.600 --> 00:08:12.026
It's like it's available, I can find it.

00:08:12.567 --> 00:08:13.930
Yeah, Is it stored somewhere?

00:08:13.930 --> 00:08:14.331
Kind of.

00:08:14.331 --> 00:08:18.091
So a lot of people mistake data availability for data storage.

00:08:18.091 --> 00:08:19.887
That's totally a misnomer.

00:08:19.887 --> 00:08:21.781
So data availability is completely different to data storage.

00:08:21.781 --> 00:08:23.742
So data availability is completely different to data storage.

00:08:24.343 --> 00:08:30.910
The analogy I like to use is a difference between like a library and like a newspaper or like a news network.

00:08:30.910 --> 00:08:35.374
Right, when a library is something where you want to store.

00:08:35.374 --> 00:08:49.955
You have a book or an article or whatever you want it to be stored, so in the future you can go and see, like, pull that data, that article, that book off the shelf and read it again because you need it for some reason.

00:08:49.955 --> 00:08:51.881
Right, so that's a library and a news network and that's data storage.

00:08:51.881 --> 00:09:11.206
A news network or data availability is something where there's some very vital information that you need to distribute and disseminate to a network of people who care about it and they want to make sure that that information has been shared and distributed and is public, and that's what data availability is.

00:09:11.206 --> 00:09:23.440
So it's a publishing network and that's important because for the security of any kind of verifiable computer, like a blockchain, like if you think about what's happening, right, you have the.

00:09:23.399 --> 00:09:24.259
You've defined a state machine like the execution.

00:09:24.259 --> 00:09:25.000
Think about what's happening.

00:09:25.000 --> 00:09:25.240
Right, you have the.

00:09:25.240 --> 00:09:30.952
You've defined a state machine, like the execution logic or the application logic for that computer.

00:09:30.952 --> 00:09:33.408
That application, right, Everyone knows what that is.

00:09:33.408 --> 00:09:39.352
Now everyone needs to also agree on what are the inputs that go into that state machine.

00:09:39.352 --> 00:09:41.826
Right, you have to have both of those things.

00:09:41.826 --> 00:09:44.662
The inputs need to be ordered and they also need to be public.

00:09:44.662 --> 00:09:47.283
You have to have both of those things the inputs need to be ordered and they also need to be public.

00:09:47.303 --> 00:09:51.267
Otherwise, me, as an independent observer, I can't actually know what's happening on this computer.

00:09:51.267 --> 00:09:52.847
And that's what blockchains are all about.

00:09:52.847 --> 00:09:58.312
They're all about transparency and verifiability by anyone, and that's what makes them so powerful.

00:09:58.312 --> 00:10:01.234
They're about proving things to each other.

00:10:01.234 --> 00:10:05.496
I can prove that I own this money and I'm sending it to you.

00:10:05.496 --> 00:10:11.761
So, anyway, data availability is that part.

00:10:11.761 --> 00:10:12.322
What are the inputs?

00:10:12.322 --> 00:10:18.984
And then the cool thing is the execution layer is the thing where you define the application logic and, because Celestia doesn't define that, you can define whatever you want.

00:10:18.984 --> 00:10:25.703
Whereas, like Ethereum, right, it says you know, it gives you flexibility because it's, but it says this is the.

00:10:25.703 --> 00:10:35.135
This is sort of the programming environment you have to use, which is the EVM, it's kind of like having to use window like a Windows computer, but maybe you're a Mac person, right?

00:10:44.080 --> 00:10:45.567
and consensus, like you've got DA and consensus happening on Celestia.

00:10:45.567 --> 00:10:47.034
So it's getting the information, distributing it to the network.

00:10:47.034 --> 00:10:50.144
The network comes to agreement that it's true, this piece of data, this information is correct.

00:10:50.144 --> 00:10:59.576
And then whatever virtual machine it could be EVM, it could be SVM, it could be OMRM, like whatever just make an OMRVM.

00:10:59.576 --> 00:11:02.360
That is where the code gets executed.

00:11:02.360 --> 00:11:05.782
That's writing the thing to the ledger, right.

00:11:05.782 --> 00:11:07.903
But the ledger, like where does the ledger live?

00:11:07.903 --> 00:11:10.724
Does it live on the VM or does it live on the consensus?

00:11:10.724 --> 00:11:13.144
Like where's that database actually stored?

00:11:13.946 --> 00:11:18.648
That data is published right and it's stored on the full nodes of the network.

00:11:18.648 --> 00:11:27.412
However, there are archival nodes and then there are normal full nodes and the full nodes only store that all the data for 30 days.

00:11:27.412 --> 00:11:29.852
Anything after that they prune.

00:11:30.653 --> 00:11:32.214
This is on the Celestia network.

00:11:32.953 --> 00:11:51.355
Yes, and this is where another misnomer or like a lot of people who are stuck on the data availability, thinking that it's data storage thing, they're like well, that data is not very available if it's gone after 30 days, and again that's missing the point.

00:11:51.355 --> 00:12:03.190
It's like there's a newspaper, like after a day or even a week, it's not going to print the same newspaper and distribute it around, right, it already has distributed that information, it's already been disseminated and there are probably places that are storing it like a library, like there are libraries that keep archives of all the news, right.

00:12:03.190 --> 00:12:11.071
There are also storage solutions, whether those are indexers, or you could put all the data on Filecoin or Arweave or whatever.

00:12:11.071 --> 00:12:19.285
Or you know their data services, like, let's say, blockworks, analytics companies, block explorers or just people running archive nodes.

00:12:19.285 --> 00:12:19.547
I have a.

00:12:19.547 --> 00:12:23.561
My own ambition is to set up my own archive node here in my office.

00:12:23.561 --> 00:12:28.509
I haven't gotten around to it yet, but that way I'll just have an answer of like, where's the, where's the data stored?

00:12:28.509 --> 00:12:30.813
Well, it's stored literally like I have it right here.

00:12:30.813 --> 00:12:34.710
But anyway, hopefully that kind of answers the question of like where the data is.

00:12:35.221 --> 00:12:37.506
The interesting thing about Celestia, too, is that the architecture.

00:12:37.506 --> 00:12:52.234
This is why, like it's very different if you build a, you design everything completely differently, and one of them is that all the data in Celestia is committed.

00:12:52.234 --> 00:13:24.405
Each block is committed to in a special Merkle tree, this namespace, and so if I want to know everything that's ever happened on the namespace, or if anything happened in this block, like any transactions were sent in that namespace, I can easily search for it.

00:13:24.405 --> 00:13:30.259
Someone can easily prove to me here's all the data, or there was no data in that block relevant to that namespace.

00:13:30.259 --> 00:13:31.114
Here's all the data, or there was no data in that block relevant to that namespace.

00:13:31.114 --> 00:13:40.158
So, anyway, that's one of the ways that you can kind of like query the blockchain and like get all the data that's relevant to you without being overwhelmed by everything else.

00:13:40.970 --> 00:13:47.629
Omar, I'm curious, like as somebody who's built network extensions using Solana, like how can you apply this to what you guys are building?

00:13:47.629 --> 00:13:52.054
Or, just generally speaking, how do you think about some of these problems that Celestia is solving?

00:13:52.436 --> 00:14:00.255
One of the important things about DA is like it makes the process of running a roll up cheaper.

00:14:00.255 --> 00:14:05.991
Ethereum roll ups, use like Eclipse, use Celestia, for instance, like.

00:14:05.991 --> 00:14:09.000
I find that to be very interesting and particularly useful.

00:14:09.000 --> 00:14:11.629
Actually, I was going to turn this into a question.

00:14:11.629 --> 00:14:19.833
Can you actually go and like explain a little bit about how that process works and like why you know celestia versus?

00:14:19.833 --> 00:14:24.201
Technically, ethereum is also like has blobs as well.

00:14:24.201 --> 00:14:36.076
How does it make it cheaper to operate a roll-up and post data to wherever you want to post it, like l1 on ethereum and two like why celestia versus blobs?

00:14:37.118 --> 00:14:37.658
great question.

00:14:37.658 --> 00:14:43.530
So data availability is like one of the bottlenecks for scaling.

00:14:43.530 --> 00:14:48.792
I would say, like, broadly, there are two bottlenecks for scaling applications, like decentralized applications.

00:14:48.792 --> 00:14:51.177
I mean, they're basically the two things that I described.

00:14:51.177 --> 00:14:55.024
One is execution and the other is like data availability and consensus.

00:14:55.024 --> 00:15:04.317
So the execution part scaling is hard, because it's like my little computer that I've implemented can only process so many transactions per unit time, right.

00:15:04.317 --> 00:15:11.562
And then if there's, you know, 10 million people trying to use this thing, I can't process all of them fast enough.

00:15:11.562 --> 00:15:13.274
And all of a sudden there's a congestion fee, right.

00:15:13.274 --> 00:15:20.299
You have to price that resource so that you can actually, you know, allocate it efficiently and fairly, right.

00:15:20.299 --> 00:15:35.461
So sometimes, you know, on roll-ups on Ethereum, there are spikes in fees because, not because the data availability is expensive, but because there are too many people trying to buy this meme coin, let's say, and the rollup just can't process it fast enough.

00:15:36.524 --> 00:15:47.919
The other bottleneck is data availability, which is how much block space is there, like how many transactions can we publish and verify were published per unit time, essentially?

00:15:47.919 --> 00:15:53.113
So the way that we measure data availability, throughput is just bytes per second.

00:15:53.113 --> 00:16:03.018
So, like Celestia's throughput as of tomorrow will be 1.33 megabytes per second, which honestly is it sounds really small.

00:16:03.018 --> 00:16:04.863
It's actually quite a bit of throughput, like if you.

00:16:04.863 --> 00:16:13.870
I'm trying to think of what the equivalent TPS is I don't actually know off the top of my head, but probably like 10,000 or something like that.

00:16:13.870 --> 00:16:18.423
So like you can actually do a lot of throughput on that scale of DA.

00:16:18.423 --> 00:16:24.581
It's kind of obvious why it's hard to scale execution right Because you have to, you know, make your computer go faster and faster.

00:16:24.581 --> 00:16:28.017
That's why you know, one of Solana's things is like they don't have to mergulize the state.

00:16:33.110 --> 00:16:36.342
Well, I just want to put like a fine point on this for people who might not be like engineers listening, but it really does boil down to physics.

00:16:36.342 --> 00:16:46.102
Like you have a piece of hardware, a physical computer, that is metal, right and to steal Meltem Demir's tagline that I love is where bits meet atoms, right.

00:16:46.102 --> 00:16:52.062
It's like there's only so much space in that piece of hardware for the bits to flow through.

00:16:52.062 --> 00:17:03.966
And you might not realize it or not when you're like using a computer, but when you start creating, like a high throughput system that is getting, you know, tens of thousands, hundreds of thousands of transactions in it, it just runs out of physical space, like it can't.

00:17:03.966 --> 00:17:10.521
It's not even about storage, it's literally like the pipes that things go through are not big enough, and that's the problem that Nick is talking about.

00:17:10.521 --> 00:17:15.705
It's like it's just, and that's the thing when you have the you brought the Bitcoin debate right Like they just want to increase block sizes.

00:17:15.806 --> 00:17:30.800
Well, you know, if you increase block sizes, then then those pipes need to be bigger and then that means that the machines need to be bigger, and the thesis is that because the machines need to be bigger, they're more expensive and there's less of them, and then therefore, you become less decentralized, because the more machines you have, the more decentralized you are.

00:17:30.800 --> 00:17:34.766
So, like the whole ecosystem is trying to get to, in theory, some people there's different.

00:17:34.766 --> 00:17:43.613
Obviously, solana takes a very different approach because their machines are huge, right, relatively than to, like you know, you can run ETH on like a Raspberry Pi if you wanted to or something.

00:17:43.613 --> 00:17:46.076
Supposedly I'm very visual, right.

00:17:46.076 --> 00:17:50.057
So if you like, look at a piece of hardware and just imagine like the things flowing through it.

00:17:50.057 --> 00:17:51.077
It just runs out of space.

00:17:51.499 --> 00:17:55.305
It's easy for people to forget, and when you're using a blockchain, what is a blockchain?

00:17:55.305 --> 00:18:06.913
It's just a bunch of different computers around the world talking to each other, but, like the computers, it's still a physical thing, you know, like it's actually happening somewhere, it's not just like this esoteric thing in the sky.

00:18:06.913 --> 00:18:12.904
And those computers are the things that constrain how much the overall network can process.

00:18:12.904 --> 00:18:20.612
So, anyway, execution is constrained by, like, how much compute do you have available to process those transactions?

00:18:20.612 --> 00:18:25.202
And data availability is kind of constrained by a few different things.

00:18:25.202 --> 00:18:32.295
One is just like the bandwidth, like how much do the nodes in the network, how much data can they, you know, send and receive to each other per unit time?

00:18:32.295 --> 00:18:48.760
But there's also this other element, right, which is like, so like, when you're scaling a system, like a distributed system, I guess you can be stuck in this paradigm of like, okay, every node has to redo all of the work of every other node.

00:18:48.760 --> 00:19:04.874
So, like you know, and that's kind of what, like, traditional monolithic blockchains do Like, every time there's an Ethereum block, every single Ethereum node downloads the entire block and re-executes it itself, right?

00:19:04.874 --> 00:19:13.915
And when you have a system like that, you can only process however much the slowest computer, whatever it is, however much that can process, so they can actually stay up with the network.

00:19:13.915 --> 00:19:17.593
So that's why every blockchain has like, some minimum stats.

00:19:17.593 --> 00:19:22.652
You need like you need this much you know disk, you need this much ram, you need this much bandwidth.

00:19:22.652 --> 00:19:45.891
Whatever the the beauty of roll-ups and data availability sampling is it breaks free from those constraints, so like, rather than every node, what a roll-up does is it breaks free from those constraints, so like, rather than every node, what a rollup does is it parallelizes the verification of the execution part, so like I don't have to recompute every transaction that this rollup sequencer did, because he can just hand me a proof that he did it correctly.

00:19:45.891 --> 00:19:47.472
So then I just verify the proof.

00:19:47.472 --> 00:19:50.977
I don't have to verify that entire block or series of blocks.

00:19:51.718 --> 00:19:59.853
And the same thing is true of data availability, where what data availability sampling does is it makes it such that.

00:19:59.853 --> 00:20:08.622
So, typically, if I had to verify that the data behind a set of blocks is available, I would have to download each one of those blocks.

00:20:08.622 --> 00:20:10.694
There's no other way for me to do it.

00:20:10.694 --> 00:20:21.138
If it's a Solana, let's say Solana right, then I have to have a gigabit, you know connection I have to be using a shitload of bandwidth to be verifying the DA of that chain.

00:20:21.138 --> 00:20:35.719
And obviously if you want to get to, like you know, billions of users in the future on chain, then to verify that it's going to be like I don't know you're gonna have to have a Google level, like you know, pipes of bandwidth.

00:20:35.719 --> 00:20:37.522
So obviously that doesn't really scale.

00:20:38.830 --> 00:20:50.050
And the beauty of data value sampling is that it provides a mechanism whereby you can verify that the data is available probabilistically and kind of in a in parallel with everyone else in the network.

00:20:50.732 --> 00:21:15.258
So rather than me downloading the whole block, I download a very small portion of it, like a few kilobytes or maybe a megabyte or whatever of data, and everyone else downloads their own little sample, random sample of a few kilobytes or what have you, and collectively we can each have a statistical guarantee that that block was fully published and is fully available.

00:21:15.258 --> 00:21:24.987
So now, even if we had you know gigabits of data throughput or like, that's the amount of like, yeah, amount of data flowing through this network.

00:21:24.987 --> 00:21:37.542
Even if I just have my little phone and I'm somewhere really remote with like a you know few megabits connection, I can easily verify every single block.

00:21:37.542 --> 00:21:38.064
So that's kind of like.

00:21:38.064 --> 00:21:45.510
The beauty of data availability sampling is that it unlocks the ability to scale block sizes independently of the nodes that need to verify the chain.

00:21:45.510 --> 00:21:51.864
That's the only way I think we can ever have blockchains that truly scale without becoming centralized.

00:21:53.990 --> 00:22:00.355
So can I just summarize and Omar and Nick correct me if I'm wrong here but essentially it does still boil down to like the hardware.

00:22:00.355 --> 00:22:07.826
You need less nodes on the network to get the same benefit of the security benefits because of the sampling piece, right.

00:22:07.826 --> 00:22:13.477
Or you can still have more nodes but they can be smaller, don't have to be like like as high power yeah.

00:22:13.497 --> 00:22:16.321
So it still boils down to the hardware, except that.

00:22:16.321 --> 00:22:20.980
So even in celestia, you, these light nodes, I'm talking about that just sample the blocks.

00:22:20.980 --> 00:22:35.481
There is some minimum hardware requirements that we and bandwidth requirements we have, but they're really really really really small, like I could pull them up in a second, but there's like orders of magnitude lower than than a full node.

00:22:35.481 --> 00:22:37.289
So there still are some hardware constraints.

00:22:37.289 --> 00:22:51.201
But the point is that by this magical process of the sampling you can make those requirements much smaller, first of all, and then, second of all, they don't scale proportionally to the block size.

00:22:51.201 --> 00:22:53.788
First of all, and then, second of all, they don't scale proportionally to the block size.

00:22:53.788 --> 00:23:06.095
So let's say we 100x the block size, the amount of work and node requirements that you need as a participant does not grow by 100x, whereas if it's Ethereum or Solana, it basically does.

00:23:06.095 --> 00:23:11.491
The node requirements scale linearly with the amount of transactions you want to process, right?

00:23:11.673 --> 00:23:21.385
Yeah, I can definitely verify that that has happened, obviously, you can, and the thing is that that's not absolutely true, because obviously, in a monolithic system, you can still optimize things you know like.

00:23:21.385 --> 00:23:39.718
You can still optimize it to make more efficient use of the resources that you have, but there's always a limit to that and ultimately, once you've exhausted that optimization, then it's like okay, well, you want to process twice as many transactions, you need twice the bandwidth, twice the compute, otherwise, you know, it's just not physically possible.

00:23:39.718 --> 00:23:42.611
And the beauty of Celestia is that you don't Like.

00:23:42.611 --> 00:23:46.521
You can have, you know, a bigger blockchain.

00:23:46.521 --> 00:23:50.589
You can 10x the block size and you don't have to 10x the node requirements.

00:23:50.589 --> 00:23:52.991
But you do what you do and we can talk more about this.

00:23:52.991 --> 00:24:00.897
You do need more overall light nodes participating in the sampling process, because you're kind of parallelizing it.

00:24:00.897 --> 00:24:01.961
There's no free lunch.

00:24:01.961 --> 00:24:07.259
There still has to be more people doing work to verify a block.

00:24:07.259 --> 00:24:13.792
That's like 10 times the size, but at least it's not you individually having to do 10 times more work.

00:24:14.734 --> 00:24:29.881
One thing I've always thought about crypto in general is that there are going to be unintended positive consequences for lack of a better word for this but innovations that come out of it right, like around Cryptogryph, for example, like zero knowledge proofs.

00:24:29.881 --> 00:24:39.749
I don't think there would have been nearly the amount of investment into zkp tech if crypto hadn't existed, and I think it has other applications and I think these same problems that we're talking about apply to ai.

00:24:39.749 --> 00:24:46.510
The other, like most innovative, exciting thing happening in technology, you know, next to crypto is is ai.

00:24:46.510 --> 00:24:59.601
I think we can all agree on that and and they had the same problem like ever increasing demand for compute and GPUs and power and throughput, and like needing to like network these things together so that they can like.

00:24:59.601 --> 00:25:12.895
You know, that's why you have like a meta building a $65 billion data center the size of Manhattan, right, because they need all those machines in the same room to coordinate together, literally wired up together, because of the bandwidth and throughput challenges.

00:25:12.895 --> 00:25:14.840
It's kind of all the same problem.

00:25:15.301 --> 00:25:24.362
And what's interesting, like I bring this up, what makes me think about this is what you were saying about how you know Celestia solves a problem in one way, right, and Solana, you know, for better or for worse.

00:25:24.362 --> 00:25:30.141
You know totally is like we can build this monolithic, single state machine and whatever.

00:25:30.141 --> 00:25:31.703
Fuck all you guys like we're going to do it this way.

00:25:31.703 --> 00:25:33.125
And that's not his attitude really.

00:25:33.125 --> 00:25:34.184
He's like supports everybody.

00:25:34.244 --> 00:25:43.811
But what's interesting is, I think some of the optimizations they're making, the things that they're having to do, like with fire dancer, for example, that's going to bleed into all the other tech too and vice versa.

00:25:43.811 --> 00:25:56.853
Right, like I think there's like just so much cross pollination that can come from all this open source software that's getting built where I mean, I know it's kind of a meme, but it really does accelerate what we're able to do on the internet and with this technology period, which is kind of interesting.

00:25:56.853 --> 00:26:03.282
I think like obviously not the people on this call, but I do feel like our ecosystem kind of misses the boat on that a lot.

00:26:03.282 --> 00:26:12.722
You know they're like all arguing about ETH or whatever, and it's like, guys, come on, this is not, this is not pushing the envelope, the conversation we're having about that, you know, in that way.

00:26:16.190 --> 00:26:17.010
Omar, do you have any thoughts on that?

00:26:17.010 --> 00:26:19.154
Or just generally on what Nick was talking about?

00:26:19.154 --> 00:26:24.704
Yeah, I mean like in general, like there's, you know, even within DA there's somewhat of some tribalism also right.

00:26:24.704 --> 00:26:31.804
Like you have people who want to use EigenDA, you have people who use Cel celestia, you have people who just post blobs.

00:26:31.804 --> 00:26:42.699
We're all really trying to do the same thing like super scalable system in the cheapest possible way, with the most amount of customizability for for an application.

00:26:42.699 --> 00:27:03.523
I think oftentimes what we see is just, you know, obviously, like we come from themos ecosystem as well and we always believed in the ability to customize things to the fullest extent, and obviously that's not possible on Solana, so that's why we built a Solana network extension for that specific purpose.

00:27:03.523 --> 00:27:14.393
Oftentimes, as Alex was saying, there is not a ton of cross-pollination happening of technology stacks, and I do want that to change, I think.

00:27:14.413 --> 00:27:36.044
But I think it is changing as well between the solana and sort of modular ecosystem somehow, maybe eventually, I think that's one of the promises of modularity is that in theory you could, you know, mix and match a bunch of different technologies from a bunch of different ecosystems and kind of like get the best of both worlds.

00:27:36.044 --> 00:27:36.811
Or like you don't have to.

00:27:36.811 --> 00:27:51.961
There's this kind of notion that we have at Celestia of like the monolithic L1 loop, where it's basically like each time someone had a new idea, like oh, let's do move as a new execution environment, or you know, I don't know, this changed consensus and let's do move as a new execution environment.

00:27:51.961 --> 00:27:53.361
Or you know, I don't know this changed consensus and let's use hot stuff.

00:27:53.361 --> 00:28:06.134
Or like we want to do narwhal and like separate the, the sort of like mempool and transaction propagation from like the actual, like block construction and stuff like that all these really cool innovations.

00:28:06.134 --> 00:28:18.663
But every time someone had these ideas they had to go out and build an entirely new chain and it just seems like a waste and then it becomes isolated in their own little stack that no one else can use.

00:28:19.130 --> 00:28:32.030
And so if we build things in a more modular way, the hope is that we could actually reuse those components across different things, mix and match them and experiment with them in a way that accelerates innovation in multiple ways.

00:28:32.131 --> 00:28:41.691
One is like you don't have to reinvent the wheel every time and second of all, there's just more, more different experiments you can do and you can borrow and like, use these different lego pieces.

00:28:41.691 --> 00:28:46.663
I mean, I think in practice that's turning out to be a little harder than you would like.

00:28:46.663 --> 00:29:04.457
In in the sense of like, I think there's been a lot of progress, but, like, even just defining the interfaces I mean also in Cosmos, right, they're the first people to think about okay, well, what would be an execution, sorry, an interface between, like, the state machine and like consensus, right, and so that's ABCI.

00:29:04.457 --> 00:29:16.340
It's been harder to generalize an interface for that, for, like, all these different virtual machines that exist and different like, like models of blockchains that people care about.

00:29:16.340 --> 00:29:34.106
I think we've made a lot of progress, but overall, it's like the standardization thing is definitely a sticking point, that that that has been difficult so far in in the modular stack I think part of the reason that that is the case and this has been another pretty cool trend to see on Twitter.

00:29:34.146 --> 00:29:45.921
but just like internet capital markets right, like some of these networks can build and launch and get so much I mean even just meme coins right, like we just watched Trump get a $70 billion market cap overnight.

00:29:45.921 --> 00:29:48.335
They can move so quickly and get so much traction.

00:29:48.335 --> 00:29:54.314
And then all of a sudden, nick, you guys get a call and they're like we don't, we don't use Celestia, but it needs to work this way, you know.

00:29:54.314 --> 00:29:56.597
And it's like how do you even keep up with that Like?

00:29:56.597 --> 00:30:00.689
And they've got some new virtual machine that they're using.

00:30:00.689 --> 00:30:12.571
That's totally different than the other stuff, but things move really quickly and you got to go where the customers are right and it makes it difficult, Nick, do you guys have some product like Eclipse is one that Omar brought up that has used Celestia?

00:30:12.571 --> 00:30:19.969
Any other teams you can talk about and you know what have you seen as far as interacting with like people building sort of alternative versions of Solana with like people building?

00:30:19.989 --> 00:30:21.550
sort of alternative versions of Solana.

00:30:21.550 --> 00:30:37.289
Yeah, in terms of SVM chains specifically, there have been a handful of teams that we've talked to that are still kind of in the early stages, so I wouldn't mention them publicly, but there's especially a lot of SVM-based chains coming from the Solana ecosystem that are like DeFi oriented.

00:30:37.289 --> 00:30:39.528
At least, that's kind of like one of the things I've noticed.

00:30:39.528 --> 00:30:41.788
There's a few different reasons when I talk to those teams.

00:30:41.788 --> 00:30:59.852
One is like they talk about just really their user experience and specifically the ability to have like profitable market making strategies or like something about like market makers and liquidity.

00:30:59.852 --> 00:31:01.497
We're just getting kind of screwed over by whatever the sort of like.

00:31:01.497 --> 00:31:03.925
I guess Jito or whatever the like MEV pipeline was.

00:31:03.925 --> 00:31:09.667
It was like just kind of failing them, so they felt like okay, we need to have our own roll up where we can control the sequencing.

00:31:09.667 --> 00:31:15.191
I think you know the cool thing is we've seen that actually play out very well for like hyperliquid.

00:31:15.191 --> 00:31:28.887
I guess that's more on like the Ethereum side of the street, but I think that's like one of their selling points, right Is that they've made it so that it's a lot like more profitable for like market makers basically get preference on their chain.

00:31:28.887 --> 00:31:35.286
So I think there's like there's been a trend I've seen of some of these DeFi protocols wanting to explore that they also want to have like even lower latency.

00:31:35.286 --> 00:31:43.067
I mean it's honestly Solana's block times for the size of the network they have is absolutely unbelievable to me.

00:31:43.067 --> 00:31:47.570
There's obviously like high bandwidth requirements and whatnot, but it's still like very impressive.

00:31:47.570 --> 00:31:54.729
But people want even like shorter latency, right, and when you're a roll up you can get that.

00:31:54.729 --> 00:31:54.980
Sure.

00:31:54.980 --> 00:31:57.446
There's a debate about like well, what is you know?

00:31:57.446 --> 00:31:58.829
Is it really finalized?

00:31:58.829 --> 00:32:02.529
Or you know what's the difference between block time and finality and whatever else?

00:32:02.529 --> 00:32:03.904
And there's a whole nuance there.

00:32:03.904 --> 00:32:04.728
We don't have to get into that.

00:32:04.728 --> 00:32:17.513
But the reality is that you can get a faster confirmation and some degree of finality from a single sequencer or a much smaller sequencer set than you could ever get.

00:32:17.513 --> 00:32:19.055
Obviously with Solana.

00:32:19.055 --> 00:32:26.291
Different set of tradeoffs, but for some of those DeFi-oriented DEX, whatever apps, that's what they want to do.

00:32:26.291 --> 00:32:36.630
So that's been kind of cool to see that, because it again proves out the whole thesis of modularity, of like, yeah, you want to control more of your stack, you want faster confirmations, you want to control sequencing.

00:32:36.630 --> 00:32:38.862
Maybe you want to internalize MEV, whatever it is.

00:32:38.862 --> 00:32:40.584
You can go ahead and do that.

00:32:41.305 --> 00:32:47.393
Happy to talk also about like chains outside of the SVM ecosystem that I find interesting that are built on Celestia.

00:32:47.393 --> 00:32:49.276
If that's something you guys want to go into, sure.

00:32:49.276 --> 00:33:00.673
Yeah, one of the chains has not launched officially on Celestia yet, but one that I find really interesting as an example of like the AppChain thesis playing out is a chain called Pay.

00:33:00.673 --> 00:33:04.682
Appchain thesis playing out is a chain called Pay.

00:33:04.682 --> 00:33:07.188
It's an application-specific roll-up that is specifically for private stablecoin payments.

00:33:07.188 --> 00:33:15.330
That's all it does for now and it uses, like a Zcash, similar UTXO execution model.

00:33:15.892 --> 00:33:16.373
Oh, that's cool.

00:33:17.119 --> 00:33:18.142
Yeah, it's really sick.

00:33:18.142 --> 00:33:24.394
And they built their own like wallet, like embedded wallet, for their mobile app.

00:33:24.394 --> 00:33:35.549
They have like really slick onboarding where you just open your phone, you don't even have to do anything, you don't have to put in your email or anything, you don't have to save your seed phrase.

00:33:35.549 --> 00:33:42.509
You just open your phone and it's created a wallet for you in the back end and stored it in iCloud, which, again, is not very secure.

00:33:42.509 --> 00:33:45.866
But you're not storing millions of dollars, you're just storing, like you're spending money.

00:33:45.866 --> 00:33:49.509
Then you can onboard cash with Apple Pay.

00:33:49.881 --> 00:33:58.626
So it's like you just like click and you're like, oh, put in a hundred dollars and then all of a sudden, like you can send it and so cool, it creates a ZK proof client side on your phone.

00:33:58.626 --> 00:34:03.383
That is actually like physical cache that someone could scan or you can just like text it to someone.

00:34:03.383 --> 00:34:07.772
I know it's just like the ux is so slick and again it can be.

00:34:07.772 --> 00:34:29.382
To me demonstrates the superpower of of these vertically integrated, full stack customizable chains where, like they're controlling every one of those steps, from like the wallet you know to the execution model to make it private and you know the ability to generate these proofs on chain that the proof can be like actual physical, like digital cash.

00:34:29.382 --> 00:34:39.934
If we're going to actually build applications that people are going to use on a daily basis, they have to be on that level of like customized and like perfected.

00:34:40.739 --> 00:34:55.170
So they're using your DA and your consensus on celestia, right, and then they've got their zcash fork thing that helps the handles, the privacy and the execution of just like one simple application which is sending money back and forth.

00:34:55.170 --> 00:35:05.891
And I think it's really important to call out because some people, a lot of, even like really smart technologists they still want to get in there and like own the whole tech stack and build it out from scratch.

00:35:05.891 --> 00:35:19.925
And we've seen this over the last you know, 10 years in crypto a lot of people doing this, which is very common, I think, when, like a new industry and new technology is kind of you know I think you saw this at the beginning of the internet too and the thing is, is like there's so much to do, like how can you maintain all?

00:35:19.925 --> 00:35:23.409
Like doing what Solana has done is incredibly difficult?

00:35:23.409 --> 00:35:36.751
People really underestimate the challenge, not just from an engineering standpoint, but also from a go to market standpoint, when you're having to roll your own on every component of what needs to go into these things, their systems.

00:35:36.751 --> 00:35:45.233
They're not like one little piece of technology, it's not like you're like I think even app chain is kind of a misnomer because it's not like you're just building an app right, like you're building an.

00:35:45.233 --> 00:35:45.840
Even.

00:35:46.061 --> 00:35:49.490
Even in the case of the example you just said, they're still having to build a network.

00:35:49.490 --> 00:35:52.548
Right, they're using your network, but they also have their own network.

00:35:52.548 --> 00:35:53.231
That's doing this.

00:35:53.231 --> 00:35:57.085
Privacy preserving stuff right, that they're like secret sauce and that's it.

00:35:57.085 --> 00:35:59.128
But now they don't have to build a whole blockchain.

00:35:59.128 --> 00:36:05.588
They can just manage that little piece for the execution layer, and people underestimate that.

00:36:05.588 --> 00:36:07.867
They underestimate how hard it is to do.

00:36:08.139 --> 00:36:22.204
And so the other thing is that by tapping into Celestia, they get the whole ecosystem of service providers and things like that that are kind of built up around there, like different developer tooling and stuff like that, probably that they don't have to go out and get those people to now serve their chain.

00:36:22.204 --> 00:36:30.311
So, like, if you see, like a lot of people even launching forks of solana that are minimally customized, they're still having to go out and talk to all the rpc providers.

00:36:30.311 --> 00:36:34.827
Get wallets to add them right, like, get exchanges to support them.

00:36:34.827 --> 00:36:44.353
Attract app developers right, like this is crazy hard, even when the software is open source and sitting right there, you know, and you could just deploy it.

00:36:44.353 --> 00:36:47.067
It's not as easy as people think.

00:36:47.067 --> 00:36:57.094
I think, like you, accelerate the go to market of like this very cool use case, regardless of what, whether it's using EVM or SVM or anything else.

00:36:57.094 --> 00:36:58.376
Omar, do you have anything else to add?

00:36:58.820 --> 00:37:02.909
It's still like a lot to try to figure out out your specific use case.

00:37:02.909 --> 00:37:04.012
That turns into a chain.

00:37:04.012 --> 00:37:14.949
I think that's what keeps people on Solana because they're just like, yeah, I can hire two SVM devs, deploy some contracts and now you have pumped up fun.

00:37:14.949 --> 00:37:27.447
Basically interesting to see, like the evolution of high profile applications becoming chains like unichain, like uniswap, like that was pretty logical.

00:37:27.447 --> 00:37:28.090
I think.

00:37:28.090 --> 00:37:37.411
Also, jupe recently is like talking about jupiter net like a hyper specific l1 for omni, yeah, omni chain omni net.

00:37:37.871 --> 00:37:43.731
Yeah, yeah, it's essentially like hyper liquid with some bridge components underneath it.

00:37:43.731 --> 00:37:53.586
I guess is kind of like their goal outside of defy, and like privacy also is one that makes a lot of sense too, because you control like the actual environment.

00:37:53.586 --> 00:38:02.619
But I think it's like also I think it's going to be interesting to see like what, how do Solana developers like the most popular Solana applications like?

00:38:02.619 --> 00:38:06.471
Will they decide to go the modular route at some point?

00:38:06.471 --> 00:38:09.460
And to me I think it's pretty logical.

00:38:10.242 --> 00:38:46.568
But I think also that's kind of where the mantra of Solana sort of comes from is like we built a bunch of chains in Cosmos and like people really only use two of them, so we had like a lot of empty block space, whereas then on solana you have like a lot of apps and like a handful of network extensions, but they're still apps and so like for us you know why we have a network extension is we're operating sort of like a dark pool for like mev resistant intent based swaps on sol and like that's a specific use case, but like I don't see, for instance, pumpfun launching a chain.

00:38:46.568 --> 00:38:51.771
Maybe they will, though I think that's going to be really interesting to see like over the next couple of years.

00:38:52.313 --> 00:38:54.400
A couple of things in response to that.

00:38:54.400 --> 00:39:05.856
Like one is that I do think for now, the overhead of launching a roll-up or a chain is significantly higher than deploying a smart contract.

00:39:05.856 --> 00:39:11.932
I think there's actually some models in which that could be flipped on its head.

00:39:11.932 --> 00:39:34.052
One of our engineers is spinning out to build something called Prism, which is this really cool thing, but basically it solves this core problem in end-to-end encryption where you need, like a certificate authority or like basically someone to tell you the right public key for a specific person, but they can man in the middle attack.

00:39:34.052 --> 00:39:35.869
But anyway, I was talking to him.

00:39:35.869 --> 00:39:36.572
His name is Ryan.

00:39:36.572 --> 00:39:49.416
He was describing how he's been just playing around building based roll-ups on top of Celestia and he says it's actually easier than building a smart contract because you just write code natively in Rust or whatever.

00:39:49.416 --> 00:39:57.594
It can even be JavaScript, it can run in your browser and it just has a light node, a Celestia light node that pulls the data and executes it locally.

00:39:57.594 --> 00:40:06.260
And that's all you did, and I don't fully understand why he thinks it's easier than building a smart contract, but he thinks it does, it is, and so that I think there's a.

00:40:06.260 --> 00:40:11.360
There could be a world in the future where actually building a roll-up does become slightly easier.

00:40:11.360 --> 00:40:20.525
But yeah, you do run into all these problems of like block explorer, support indexers, um, like wallets, all those things you talked about, and so that that's that's.

00:40:20.525 --> 00:40:21.987
That's a difficulty for sure.

00:40:21.987 --> 00:40:33.224
That's one of the beauties of cosmos, I think, is that like they had all these like because it was a standard, like everyone, like it was easy for validators to let's like, okay, I'm gonna run another tendermint node.

00:40:33.224 --> 00:40:35.632
Oh, I'm just gonna integrate with consultation.

00:40:35.632 --> 00:40:37.057
It like takes no time.

00:40:37.057 --> 00:40:39.063
Oh, kepler, like just works out of the box.

00:40:39.063 --> 00:40:43.492
You just change, change the chain ID or whatever, right, but yeah, I think that's still a problem.

00:40:43.599 --> 00:40:52.755
Now, what I will say is that to me, the App Chain thesis is not that every single app is going to be built as its own chain or its own roll-up.

00:40:52.755 --> 00:41:27.510
What the App Chain thesis is is that the most ambitious builders building the most powerful applications are going to want this full stack customizability, and I think that thesis has been verified over time again and again with all the examples you guys mentioned of like Unichain, right, or I mean Hyperliquid is a really great one, and all these applications that start as smart contracts on shared L1s, execution L1s can migrate and probably will migrate eventually, depending on, like is there a strong enough reason for them to do so?

00:41:27.510 --> 00:41:38.652
And usually, like, the trade-offs for now are like okay, there's more engineering overhead, right, that's like operationally more difficult to launch and build your own chain.

00:41:38.652 --> 00:41:41.288
But one of the big ones really is distribution.

00:41:41.288 --> 00:41:44.028
That's where the modular ecosystem, I think, is really.

00:41:44.028 --> 00:41:46.407
That's like the weak point, essentially.

00:41:46.407 --> 00:41:50.826
Like, if you launch your own chain, it's like okay, well, how am I going to get the users on there?

00:41:50.826 --> 00:41:53.166
Right, they might not use the wallet that I have.

00:41:53.166 --> 00:41:58.202
They're not going to have any funds on there by definition, so I'm going to have to figure out a way for them to bridge.

00:41:58.202 --> 00:41:59.164
They're not going to want to bridge.

00:41:59.164 --> 00:42:11.831
It's going to be a pain in the ass because we're going to be slow and you know, like there's just so many barriers to entry Whereas, like you just launch your smart contract with Solana, they already have, you know, the backpack, they already have their funds there.

00:42:11.831 --> 00:42:13.016
Boom, everything just works out of the box.

00:42:13.016 --> 00:42:23.514
That's one of the challenges that really has to be overcome and I think it's very much possible to overcome, but it's been honestly slower than I expected to solve.

00:42:23.514 --> 00:42:26.748
I think we all know how to do it in theory and I think we will get there.

00:42:27.353 --> 00:42:28.059
It's a tricky problem.

00:42:28.059 --> 00:42:41.208
It's something that Celestia is working on with something called lazy bridging, where we're trying to facilitate sort of like a sort of like liquidity routing and, like asset yeah, asset routing, I would say within the L1.

00:42:41.208 --> 00:42:44.163
Like asset yeah, asset routing, I would say within the L1.

00:42:44.163 --> 00:42:44.483
So it's easy.

00:42:44.483 --> 00:42:51.146
It's not mandatory, but if you want to, you can opt into verifying your chain on Celestia in a way that gives you accessibility to anyone else who's also doing so.

00:42:51.768 --> 00:42:53.780
But I mean, there's so many other pieces to that puzzle.

00:42:53.780 --> 00:43:01.782
To solve it, you need, like you know, the actual, the ways in which you send messages across chain and verify them right.

00:43:01.782 --> 00:43:15.407
You also need potentially these like liquidity providers and solvers to make that settlement happen faster, you know, for a fee, so that the UX can be snappy, and this team is working on all these different things.

00:43:15.407 --> 00:43:31.228
But, like there's so many more pieces to the puzzle, my mental model for like a modular thesis is like it is more complicated in a lot of ways, so it'll take time to like fall into place, but when it does, it will be like really beautiful and kind of like.

00:43:31.228 --> 00:43:32.711
It is the end game, in my view.

00:43:33.940 --> 00:43:42.208
I do think you hit the nail on the head with some of those challenges, because you know it's kind of like Omar was talking as you were kind of joking of like hire two devs and then launch, you know, pumped up fun.

00:43:42.208 --> 00:43:46.822
But now it's actually kind of even if you think about what meme coins are.

00:43:46.822 --> 00:43:49.309
They're just using, you know, the standard.

00:43:49.309 --> 00:43:52.686
I guess they're using the Metaplex token standard, which I dislike.

00:43:52.686 --> 00:43:57.081
You can think of that as like an app right that they can just deploy without writing any code.

00:43:57.081 --> 00:44:04.355
They can then get, you know, billions and billions in market cap and millions of users in 24 hours.

00:44:04.355 --> 00:44:06.246
They just attract enough attention.

00:44:06.246 --> 00:44:09.349
And the same goes for any app builder if they build an interface.

00:44:09.349 --> 00:44:13.000
And that's because the money moves at the speed of light.

00:44:13.000 --> 00:44:18.132
We already have Phantom and Backpack and all these things, that those tokens are supported out of the gate.

00:44:18.132 --> 00:44:27.583
And if you want to build a UI for some kind of application that uses Trump coin or whatever it might be, you know you just build it, there's a SDK you can plug into and phantom will just work.

00:44:27.583 --> 00:44:31.072
So the barriers to entry are just like super, super, super low.

00:44:31.501 --> 00:44:35.632
And it was one of the things like early on when I, when I first joined Solana in 21,.

00:44:35.632 --> 00:44:44.713
I've looked at Polkadot pretty heavily and they're essentially app chains, right Like, and the big thing that I ran into there was just the cost I was really focused on.

00:44:44.713 --> 00:44:49.588
Like you know, you had to bond all this money in order to secure your app chain and I was like no way.

00:44:49.588 --> 00:45:03.809
But it actually is even less than that, right Like, even if you didn't have that barrier, just this barrier of like launching an app chain and getting the users, the money is a huge one, but I think these things meet in the middle somewhere, right like.

00:45:03.809 --> 00:45:05.893
That's my, my, hypothesis.

00:45:05.893 --> 00:45:07.255
Like they meet in the middle somewhere.

00:45:07.255 --> 00:45:18.025
Some of these technologies sort of like cross paths and like integrate or like cross pollinate or something, and then you end up getting the frictionless liquidity that bootstraps this stuff, or hey, we're at the top of the show.

00:45:18.025 --> 00:45:20.637
Thank you so much for for taking the time to be here, nick.

00:45:20.637 --> 00:45:21.465
I really appreciate you.

00:45:21.431 --> 00:45:22.554
Yeah, this is a fun conversation and big fan of the show.

00:45:22.554 --> 00:45:23.019
Thank you so much for taking the time to be here, Nick.

00:45:23.019 --> 00:45:23.282
I really appreciate you.

00:45:23.282 --> 00:45:32.307
Yeah, this is a fun conversation and big fan of the Solana ecosystem and looking forward to like cross-pollinating and hopefully building with a lot of the Solana builders as you guys explore modularity.

00:45:32.307 --> 00:45:39.009
And so you'll feel free to reach out to me on Twitter my DMs are open and I really appreciated hopping on with you guys.

00:45:39.590 --> 00:45:39.811
Awesome.

00:45:46.639 --> 00:45:46.760
Thanks.

00:45:46.760 --> 00:45:48.067
I really appreciated hopping on with you guys Awesome Thanks.

00:45:48.067 --> 00:45:50.940
You just listened to the Index Podcast with your host, alex Cahaya.

00:45:50.940 --> 00:45:57.974
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00:45:57.974 --> 00:46:00.487
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00:46:00.487 --> 00:46:01.920
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