Transcript — AMA with Kåre Kjelstrøm, Concordium’s CTO
On Monday, 22 Aug 2022, Concordium’s CTO, Kåre Kjelstrøm (KK) took over the official Concordium Telegram to tell us all about our technical roadmap, what’s new and what the tech team is working on.
Introduction from the Marketing Director (Maria Rojas)
Hello everyone, thanks for joining us in today’s AMA with our CTO and thanks Kåre for taking the time to speak with us. For those of you who don’t know him yet, Kåre is currently leading the development of our blockchain.
Before joining Concordium, Kåre worked at a Silicon Valley-based, stealth mode startup, as manager of the Core Infrastructure group: storage, compute, network, and SRE. He helped the company expand across 15 time zones, create high performance teams, and launch offices in Denmark and Lithuania.
Kåre previously worked at Uber as a manager of storage, where he built highly scalable distributed ledger and database solutions from Denmark and then Toronto, Canada. He has 10 years of entrepreneurial experience, having co-founded consulting company Silverbullet. At Silverbullet, he accelerated digital transformation in the Danish public sector — focusing on security in systems-to systems communication with PKI.
So Kåre, let’s dive into the questions our community sent.
Now that Sirius is out! (Congrats on the milestone 🥳) our community has been really interested in knowing what the timeline for Vega is. As this is a big question, let’s take each area 1 by 1. Let’s start with additional key management features and account policy. What can you tell us about that?
KK: In September we will release the second generation of the Concordium Mobile Wallets for iOS and Android. This version will use a secret recovery phrase for key generation, effectively making it possible to set up your Concordium accounts on multiple platforms. At the same time, the under-construction Chrome plugin web-wallet will also have this capability.
Next area in the roadmap is tools for decentralised node governance
KK: We’re aiming to become a fully decentrally governed blockchain down the road and are now taking strides to define exactly what that means in collaboration with professor Hans Gersbach of ETH. The science team in Zurich and Hans are focusing on the governance structure as well as the elements that the governance committee will be voting on. Q3 will see white papers published on this.
What about a token swapping mechanism and a bi-directional bridge — connecting CCD to the wider ecosystem and bringing stablecoins to Concordium?
KK: The first bridge on Concordium, named “Cornucopia” (horn of plenty) has been built and we are in the process of security auditing the code and the smart contracts. The bridge is centralised so in parallel, we’re in discussions with a number of companies to sign a deal for operating the bridge outside of Concordium.
In the first version, Cornucopia will support bridging ETH to WETH and vice versa, effectively allowing this key token to provide liquidity to our chain. We already have parts of the smart contracts written for the next step, CCD to WCDD and vice versa, which will be launched shortly after the bridge goes online. Expected ETA is before the end of Q4.
Going forward, the bridge will add a stablecoin, most likely USDC and potentially also USDT, then focus on other high-profiled ERC-20 tokens before bridging onto other chains and looking into decentralisation.
Are we thinking about oracle support — connecting CCD to mainstream finance?
KK: Yes, we are in discussions with various vendors to strike a deal.
Now, one that has been requested a lot, the web based wallet, where do we stand?
KK: The web wallet for Chrome will be released at the end of Q3 with support for building dApps. Going into Q4, the wallet will iteratively get more and more features around using the ID with zero-knowledge proofs allowing dApps to ask questions of the user: “Are you older than 18?”, “Which country are you from?”, “Are you not from North Korea?”, and more. This opens up a vast range of applications that are unique to Concordium!
What about the local development environment for smart contract development? Is it a priority?
KK: This is a medium priority for us, we will likely not make it in Q3 though, but push it out to Q4.
The main focus areas for Q3 and Q4 are Developer Experience and Scalability. The epics we’re executing towards will make it easier for developers to build on Concordium and with the expected added traction, the chain must be able to support orders of magnitude more traffic and accounts.
Ok, so the same with the Smart Contract Development framework — compile, test, deploy workflow?
KK: Yes, this is currently on hold as we focus on dApps development. We will revisit this when we start Q4 planning in 2 weeks.
In the roadmap we also mention an extensive web3.js library, when are we releasing these?
KK: This is part of the web wallet for Chrome and will be released at the end of Q3.
Smart contract libraries?
KK: We have already released an update to the algorithms that are available in the smart contracts so we are now on par with what can be done in Ethereum. At the same time, we’re currently augmenting our existing smart contract libraries to account for the features required to implement the next version of dApps with identity in Q4. These are features around zero knowledge proofs.
What about updating the developer portal upgrade?
KK: We are constantly adding new content to the developer portal. Most recently we released an Ethereum developers FAQ for building smart contracts on Concordium. The vision for the developer portal is to provide a one-stop shop to everything you need to get going with Concordium development whether you’re completely new to us or a seasoned developer.
Next in the list is smart contract reference implementations
KK: The Concordium engineering team will host an internal hackathon at the end of September which will yield dApps with smart contracts that will subsequently be turned into reference implementations; the canonical wrapped CCD is poised to be deployed on Concordium in Q3 pending security audits and is also a great example of a smart contract reference implementation.
Can you tell us more about the plans for scalability through sharding?
KK: Q3/22: A prerequisite to doing full-fledged sharding is updating the consensus protocol. The science team has evaluated the available options and have decided to augment our current protocol with features from the “Hotstuff” protocol. We’re currently updating our blue papers to make sure the engineering team will build it correctly.
Q4/22: The Science Team will be writing the blue paper for the actual sharding protocol updates and publish that towards the end of the quarter.
Q1/23: Coding for Sharding starts and the exact scope is TBD.
Are we working on Standardised Cloud and IPFS storage integrations?
KK: Our team has constructed an NFT minting tutorial with IPFS and Pinata which demonstrates both how to mint NFTs on Concordium, and also a simple IPFS storage integration. It will be published real soon — going through reviews at the moment.
Ok, with that we have covered Vega. Let’s discuss the other questions from the community: “Is Concordium doing this specifically in order to pick up ALL the ETH-Devs. that will leave when their merge explodes in about 1 months time?”
KK: It’s anybody’s guess what will happen when Ethereum moves to a Proof-of-stake model, supposedly mid-September. Our focus is to make it super easy to build on Concordium regardless of how Ethereum develops in the future and to position ourselves as the blockchain that corporations trust with their business because of the rock solid implementation, extremely approachable developer platform, and the built-in identity at the protocol layer. The Ethereum Developers Guide to Concordium is a great example of one step we’ve taken to make it easier to come to us.
Will we have a browser-based wallet?
KK: Yes, it is coming in October. The first version will let you do everything you can with the mobile wallets. We will then proceed to add identity functionality into the wallet to allow decentralised applications to use zero-knowledge proofs to interact with a user.
A community member is also asking if we can share more details about the Greenland use-case mentioned in a recent interview?
For that I can say that we will share more details soon via a joint press release with the partners.
Next question from our community, I quote: “can you explain more about bridges. Can a bridge bring “dirty” money into Concordium? I mean isolated on Concordium everything can be tracked by ID, but what happens when we bridge to anonymous chains?”
KK: A bridge is a type of application, which connects to two blockchains simultaneously and allows tokens on one chain to be represented as IOUs on the other chain with a 1:1 representation of the value. On each chain, the bridge operates a number of smart contracts which will allow locking tokens on a source chain and mint IOUs on the destination chain or to burn IOUs on the destination chain and release the actual tokens on the source chain.
Cornucopia, our chain, is implementing smart contracts to support any ERC-20 token to be locked on Ethereum and IOUs to be minted on Concordium. The bridge operator will perform a due diligence of every single token we decide to bridge in order to avoid bad actors.
The bridge will keep a log of the transactions it performs and the accounts involved on the Concordium and Ethereum sides. So when someone uses the bridge, it will actually relate a Concordium account to an Ethereum account and if illegal transactions are suspected by law enforcement on an Ethereum account that was involved in bridging to Concordium, the anonymity of the Concordium account can be unlocked, effectively making it possible to do forensics also on the Ethereum account.
How much of your roadmap is driven by specific projects / customer requirements? Or do you just build what you and Concordium think is what businesses need in the near future?
KK: I love this topic. We use a planning method called top-down and bottom-up which mixes functional requirements (top-down) with features and suggestions provided by the engineering team (bottom-up).
The product team owns a number of product roadmaps for key blockchain product areas and critical ecosystem verticals. These roadmaps focus on the functional aspects, ie. what should the product be able to do or what products we should make sure to build. We get the input to these vertical roadmaps from our customers that are collaborating with the product team and our commercial team as well as from market research. Product roadmaps extend multiple quarters into the future and are constantly evolving as the blockchain world around us moves. We have roadmaps for the core blockchain, for developer experience, DeFi, gaming, metaverse, ESG, and much more.
But the engineering and the science team also have a thing or two to say about priorities. Our engineers often suggest a logical next level feature to focus on, have suggestions for code that needs to be refactored or could be implemented faster with a better algorithm. These product suggestions are factored in as follows.
Three weeks in advance of a new quarter, the product and engineering teams come together to focus on the next set of features to build. We call them epics. Product suggests features, engineers and science suggest more low-level epics. During the next couple of weeks, the team details suggestions, prioritises epics based on criticality from the market, for the product’s ability to scale or be robust, etc. The quarterly roadmaps are then finalised the week before we go into the new quarter and the engineering team is ready to start coding the next set of key epics.
The next question is “regarding the file-based account system that CCD uses now, and how to get CCD on normal wallets TrustWallet”.
KK: In order to use Concordium you will have to download one of our wallets and use that. It is true that the current version of the mobile wallets require you to make file-based backups of your private keys, and as mentioned earlier, we’re implementing seed-phrases into the web wallet and the mobile wallets to make it easier to use your accounts on a new device. There are no plans to integrate with TrustWallet at this time, but I won’t rule it out for future collaboration.
Comparison of Concordiums Web3 ID with other protocols
KK: The implementation we’re building will stand on top of established standards in the industry, W3C specifications for instance around decentralised identifiers or DIDs for short as well as verifiable credentials. Our Web3 ID will use our blockchain to control the life cycle of these verifiable credentials, effectively implementing soul-bound tokens as coined by Vitalik Buterin. We’re striving to make our implementation as open and integratable by 3rd party applications as at all possible, opening up for exciting new applications with ID support in the future.
When can we get an updated timeline of the technical roadmap?
KK: We’re finalising our long-term product roadmaps by October 1st and will then proceed to update our website with details on what our plans are for key product areas and ecosystem verticals.
Is Concordium working directly with the Chainlink Developers or will the price feeds be bridged in from EVM networks?
KK: We’re currently working with various Oracle providers on making their services available on Concordium. It’s too early to go any further into this topic.
Will the wallet eventually have an internal Web 3.0 browser? If so, when?
KK: There are no plans for this. Instead we are implementing Wallet Connect for the iOS and Android wallets and web3.js support for the Chrome wallet. This will allow applications to use the wallets and IMO provides a superior user experience from embedded browsers.
Is anyone allowed to launch a DAPP or DeFi project on Concordium or is there a centralised control on who can launch projects on Concordium?
KK: It is a public, permissionless, decentralised blockchain so anyone can launch projects using Concordium.
When can we see the importing of a whole wallet from desktop to mobile or vice versa?
KK: We’re currently focused on implementing seed phrases from mobile and web wallets. Desktop wallet support might come in Q1/2023.
Someone asks, “In passive delegation where do the tokens get locked? As there is no specific pool”.
KK: The tokens are always locked in your own wallet, whether you are delegating to a pool or doing passive delegation. Hence, no one can ever steal them via delegation, since they never leave your wallet.
The difference is that if you delegate to pool A, then the value of your tokens is added to the value of all other people delegating to pool A to determine the lottery power of A. When A wins the lottery, the rewards are shared amongst all delegators to that pool according to their stake. And if you delegate to passive delegation, then you get rewards as if you had split your stake amongst all pools proportionally to the pool sizes (except with a higher commission). Splitting stake amongst all pools proportionally to the pool sizes does not influence the lottery power, so with passive delegation there is no need to first update the lottery power of the pools.
Moby shared several questions, first, What makes you excited about Concordium?
KK: You’ve likely heard me speak about the ID already. The fact that we have a science founded, rock solid blockchain with identity built into the protocol layer is a fantastic foundation for providing businesses with a platform they can build regulatory compliant applications on. As we progress over the next quarters you’ll see us refining this mission on multiple fronts and continue to iterate on security, safety, user and developer experience while we onboard more and more customers. To that end, I’m thrilled that there’s a DEX underway and that we’ll launch a bridge soon: these types of systems will provide the basic DeFi building blocks that will let others build a business on Concordium.
What is currently the ideal customer profile?
KK: Anyone with a solid understanding of what’s required to build a thriving business with blockchain technology. Concordium is looking to provide a platform for serious business that can support existing workflows and foster new ones that we didn’t even dream about yet, but which will be made possible by a public, permissions blockchain with identity built in at the protocol layer and made available for anyone to use.
What product manifesto message have you formulated and will be effective going forward?
KK: Our product is described in the Concordium whitepaper, which we will be updating soon, specifically with the vision for how identity will be usable on Concordium.
You mentioned in the Future of Finance video that you see Concordium as a Blockchain for Open IT as opposed to an ETH killer or Blockchain for the Blockchain ecosystem. Why?
KK: We’re certainly in competition with every other blockchain out there, but we’re also a chain with a unique value proposition. Our solution to providing a platform for regulatory compliant business is something we’re looking to make available for not only our customers, but anyone who needs it. This makes us potentially attractive for partnerships and I believe it’s a great opportunity for us to white label and integrate our blockchain with others for more traffic, liquidity and ultimately more business.
What value does White Labelling Concordium bring, and will this result in benefits for CCD token holders for example due to fixed staking requirements for White Label parties?
KK: I believe in white-labelling the identity solution and providing Identity-as-a-Service built on Concordium for anyone to use. This will bring more traffic to our chain, more awareness and ultimately more business. I don’t really see a use case for white labelling the chain itself: instead we’re building it out to make sure it meets the needs of our customers who can then build upon it.
Currently Concordium has 12 sec finality time. What is the target metric and is there work done right now to get there?
KK: We are currently redesigning the entire consensus and finality and will implement the changes in Q4. The main goals are making it compatible with sharding, increasing TPS and reducing latency. The finality time should substantially improve and we will measure the actual gain as soon as we have the MVP ready.
Does Concordium plan to add an MPC Layer to the blockchain?
KK: We’re currently investigating where MPC might benefit Concordium users in areas such as key management, identity, and privacy.
Are private smart contracts and NFTs (e.g. private metadata) on the roadmap?
KK: Private smart contracts allow for use cases where the input is not publicly readable on the blockchain. We’re constantly adding new features to Concordium, but always prioritise the most sought after first. At this time, we’re investigating how MPC might benefit Concordium, and private smart contracts is one such potential area.
When will private transfers from account A to B be available? will they only include $CCD or other assets like NFTs and stablecoins?
KK: Concordium supports shielded transfers which allows a user to send CCDs to another account without revealing the amount on-chain. Our roadmap contains an evolution of this which will shield the account numbers as well, but it’s currently not decided when we will implement it. We don’t currently have plans for private transfer of NFTs, but if our user base needs it, we will prioritise.
Will the web3-ID framework be able to transfer encrypted data next to zk-proofs? (e.g. I want to pass my address to an online shop for shipment that only the shop should see)
KK: The Web3 ID ZKPs will by default be transferred between two participating processes and the proofs will not be stored on-chain. But the evidence needed to validate the proof will, so the interaction is already private and can be secured using transport layer security.
What are the technical benefits of ID at L1 that cannot be done on a L2 ID solution on other networks from a CTO perspective?
KK: Concordium bakes an encrypted reference to a user’s identity into every single transaction, which can be revealed if law enforcement requires it. It’s in the DNA of our chain and cannot be tampered with. We’re building our self-sovereign identity infrastructure on top of this rock solid foundation which will provide businesses and users with the platform they need to do business in a safe and trusted way.
Conclusion
Thank you! By the way, an amazing AMA with Mark last week. Congrats, what you guys are doing is great!
Thank you so much Kåre and thanks to the community for joining us!
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