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Tiny ecosystem at that point all
the projects doing their own 

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Icos doing the 2017 phase 
started adopting this multi 

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signature wallet as well. 
In the long run these smart 

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accounts will be the solution 
and there's no way around smart 

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accounts in order to get to the 
user experience while still 

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retaining like security that is 
needed to to onboard like a 

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billion people to to or three. 
I would say when it comes to 

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cross train, smart accounts in 
the short term will bring new 

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challenges in in the long run 
will actually solve. 

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Frustrating in a way that it can
make it irrelevant in what 

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networks you interact with what 
tabs, but this can be abstracted

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away. 
This episode is brought to you 

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00:00:57,200 --> 00:00:59,880
by Gnosis. 
Gnosis builds decentralized 

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00:00:59,880 --> 00:01:03,880
infrastructure for the Ethereum 
ecosystem with a rich history 

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dating back to 2015 and products
like Safe Cow Swap or Gnosis 

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Chain, Gnosis combines needs 
driven development with deep 

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technical expertise. 
This year marks the launch of 

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decentralized payment network. 

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With a Gnosis card you can spend
self custody crypto at any Visa 

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accepting merchant around the 
world. 

21
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the stack, visit gnosispay.com. 

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There are lots of ways you can 
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Governance form, become a Gnosis

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Get started today at Gnosis dot 

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Start staking today at. 

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Chorus .1. 
Welcome to Epicenter, the show 

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00:02:54,240 --> 00:02:56,000
which talks about the 
technologies, projects and 

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00:02:56,000 --> 00:02:58,960
people driving decentralization 
in the blockchain revolution. 

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I'm Sebastian Krutio and today 
I'm all by myself. 

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I'm chatting with Lucas Shore, 
who's the Co founder at SAFE. 

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Safe is of course the leading 
smart account, multi sig 

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provider in the EVM ecosystem. 
They're securing over $100 

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billion in assets and are 
absolutely crushing it when it 

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comes to securing assets. 
We use SAFE at Interop Ventures 

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00:03:23,640 --> 00:03:26,080
and I'm sure lots of you out 
there are also using SAFE. 

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They were spun out of Gnosis a 
couple years ago. 

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And I'm going to be talking with
Lucas today about the technology

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behind SAFE, but also the 
strategy moving forward and what

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is the future of SAFE look like?
Hey, Lucas, thanks for joining 

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us today. 
Thanks for having me semester. 

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So before we get started, how 
did you become part of the Safe 

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team? 
Were you previously at Nosis or?

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00:03:52,320 --> 00:03:54,520
Yeah, because I think you're 
like a one of the Co founders of

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Safe. 
What's the story there? 

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00:03:56,760 --> 00:04:00,080
Yeah, that's right. 
So safe is the spin off from 

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from Nosis. 
I joined back in 2019 as a 

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product manager responsible for 
the that Point Nosis safe 

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project within Nosis. 
Actually I was applying half a 

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year before that to Nosis in the
in the marketing department. 

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I got rejected right away. 
That's just a fun fact on the 

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side. 
Then half a year later something

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that was more relevant to my my 
background, the product manager 

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role opened up and I was jumping
on that and that was luckily 

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successful. 
So I joined when the Nosy Safe 

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project was quite a bit early 
stages. 

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Yeah. 
Then took over together with 

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Richard and Tobias, my Co 
founders the the project 

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responsibilities and over time 
then the the project group and 

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it outgrew to some extent noses 
as in the kind of the team size 

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crew and the the the focus have 
expanded beyond what it's 

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originally meant to be and it 
became its own ecosystem. 

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And that's when we decided 
together with the Nosys team 

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that it's better off to continue
the project outside. 

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Yeah, maybe a little bit of the 
history of how this project came

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to begin with. 
So Nosys like back in 2016 was 

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was started to create prediction
markets. 

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So that's a way to financially 
incentivize participants to 

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share their knowledge in order 
to, yeah, expose that knowledge 

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to the public. 
And that's meant to be as a as a

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primitive on the film 
blockchain. 

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And Nosys went ahead and did 
Nico in order to fund the 

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project and it happened that the
ICO was quite successful. 

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Nosys had to custody a lot of 
the proceedings from from that 

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ICO and back then the entire 
self custody infrastructure was 

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quite early on, meaning that 
they had to create their own 

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solution. 
So Stefan Giorgi who's the Co 

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00:05:59,500 --> 00:06:04,000
founder of Gnosis wrote himself 
a multi signature contract which

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is a way to share the 
responsibility of a self custody

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set up with other people via 
multiple keys and that was used 

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for for the ICO funding and was 
open sourced. 

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And then it happened that all 
have the entire ecosystem at 

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that point all the projects 
doing their own IC OS doing the 

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2017 phase started adopting this
multi signature wallet as well. 

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And that's how the team was 
formed as suddenly had many 

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projects that were using this 
solution and there were feature 

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requests coming in and people 
wanted to have the project 

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maintained. 
And so the the project formed, 

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it became its own team within 
Nosis and that's roughly when 

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when I joined. 
Yeah, cool. 

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I mean I think it bears 
reminding also that like you 

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know back then like you said 
there were no good solutions for

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doing multi stakeholder asset 
custody. 

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Bitcoin had an on chain in 
protocol solution still has and 

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you know in Bitcoin you can 
create an on chain multi sig and

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you know this is something that 
a lot of people like including 

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myself have used you know with 
Epicenter we've used this also 

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quite a bit in the early days 
when we were a a Bitcoin only 

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company and but yeah the even 
even then like it's quite 

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cumbersome to set up the keys 
and and everything but Etherium 

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didn't have an on protocol 
solution. 

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Do you know why that is? 
Like why Etherium didn't go down

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the same path as Bitcoin and 
built build an in protocol way 

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to do multi stakeholder asset 
custody? 

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Yeah, I mean it's always the 
question what should be really 

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enshrined as part of the 
protocol and what should be then

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solve the layer above from the 
smart contract level. 

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It actually happened that 
Etherium originally wants to 

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have smart accounts. 
So accounts that's based on 

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logic on smart contracts have 
have this natively within the 

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theorem it was then yeah it 
turned out that this is quite 

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complex to do and the team at 
the Etherium Foundation was a 

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bit of an in a in a time rush to
to launch mainnet so that this 

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scope did last minute. 
And we since then had our have 

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all the infrastructure on 
Etherium mostly based on EO as 

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so externally owned accounts. 
These are the the accounts 

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everyone knows that are 
controlled by a single private 

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key usually derived from from a 
seat phrase, 12424 word, secret 

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phrase and that's where the the 
world infrastructure was was 

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built upon. 
I personally think that it's a 

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better pathway to solve as much 
as possible on on the smart 

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contract level there in terms of
like logic of of an account. 

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Because if you look at what you 
mentioned the the Bitcoin multi 

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SEC implementation, it it it 
works quite nicely for certain 

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00:09:03,040 --> 00:09:05,360
use cases. 
But it's quite limited because 

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you have all the logic enshrined
in the in the Bitcoin protocol. 

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And for example that means that 
certain use cases such as 

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rotating keys is not possible 
with the Bitcoin multi sig. 

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So you once can set up your 
multi signature wallet. 

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You might have a certain 
threshold of signatures required

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to make transactions, but then 
if you lose access to to one of 

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the keys or it gets compromised 
you actually have to move your 

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00:09:32,640 --> 00:09:34,760
funds to complete the new 
Bitcoin multi sig. 

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And you cannot just rotate one 
key and and continue with with 

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the same wallet. 
These things are are solved by 

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just leaving the logic up to the
smart contract level and 

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allowing different 
implementations to take 

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different optimizations and 
different yeah, technical 

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assumptions. 
And this creates much more 

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flexibility. 
Then and over time we will 

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probably see certain standards 
or certain best practices emerge

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and potentially at some point 
these can be trained again in if

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you're in protocol. 
Once once we see that these are 

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actually must have and have, the
standardization value is higher 

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than the flexibility of having 
different implementations. 

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Yeah, I think the Entrime in 
question is one that needs a lot

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00:10:25,760 --> 00:10:30,040
of of course, reflection, and we
need to be careful what we 

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enshrine into the protocol or 
not. 

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00:10:32,680 --> 00:10:36,040
But yeah, taking a step back 
from that, let's maybe dive into

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smart accounts or at least the 
way smart accounts are conceived

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of in the Etherium space. 
I think most of the research is 

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00:10:46,400 --> 00:10:52,480
around this ERC 4337. 
Yeah, Give us an overview of 

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what is ERC 4337 and how it aims
to implement smart accounts on 

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EVM chains. 
Yeah, there's actually quite 

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00:11:01,800 --> 00:11:05,680
some misconceptions still on 
what the ERC 457 is. 

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So some people think that ERC 
457 is smart accounts and all 

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the logic, all the possibilities
that are enabled through this 

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00:11:14,360 --> 00:11:19,280
standard have is is due to the 
to the ERC 457 standard. 

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While most of the features such 
as recovery or like session keys

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and so on are actually the the 
responsibilities of the smart 

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00:11:26,840 --> 00:11:29,520
accounts. 
So smart accounts have existed 

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since since years. 
We have SAFE has been around 

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00:11:32,720 --> 00:11:37,880
since 5-6 years and a lot of 
what we're now talking when we 

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00:11:38,000 --> 00:11:43,120
talk about the potential of 457 
has been possible before with 

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00:11:43,160 --> 00:11:46,920
one exception, which is actually
processing smart account 

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transactions in a trustless way.
That's a big problem that's 

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00:11:50,800 --> 00:11:56,120
solved by ERC 457. 
So as I mentioned the if you're 

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00:11:56,120 --> 00:12:00,080
in protocol like it, it has two 
types of accounts, it's EOA 

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00:12:00,280 --> 00:12:03,640
Externally Owned Account and 
Smart Contacts which can then be

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00:12:03,640 --> 00:12:08,440
used to make smart accounts. 
And yet a transaction actually 

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00:12:08,440 --> 00:12:11,680
in order to be processed needs 
to originate from an EOA. 

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00:12:12,120 --> 00:12:16,400
And that's that's a challenge 
because you have certain use 

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00:12:16,400 --> 00:12:19,080
cases of smart accounts. 
You actually might not even want

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00:12:19,080 --> 00:12:23,720
to have an EOA involved if you 
use certain like new signature 

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00:12:23,720 --> 00:12:28,960
schemes, passkeys or so on where
where there's no EOA part of the

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00:12:28,960 --> 00:12:33,880
transaction life cycle. 
Yeah, but so far how it worked 

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00:12:33,880 --> 00:12:38,840
is that you had to fulfil the 
transaction verification 

194
00:12:38,840 --> 00:12:41,800
requirements, be it in a multi 
CIC case that you collect the 

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00:12:41,800 --> 00:12:43,680
different signatures from the 
participants. 

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00:12:44,240 --> 00:12:46,920
But then still you need to have 
an EOA involved in in the 

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00:12:46,920 --> 00:12:51,200
transaction in order to actually
process that transaction on the 

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00:12:51,200 --> 00:12:54,360
FION blockchain should. 
So usually how that worked is 

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00:12:54,360 --> 00:12:56,960
that you had like everyone 
signed the transaction and then 

200
00:12:57,160 --> 00:13:00,880
the last person that was signing
was, was the poor person that 

201
00:13:00,880 --> 00:13:04,160
actually had to pay for the 
transaction fee from his EOA 

202
00:13:04,160 --> 00:13:07,720
account. 
And yeah, that's now now coming 

203
00:13:07,720 --> 00:13:11,240
to ERC 457. 
So just just one one, just the 

204
00:13:11,280 --> 00:13:14,080
kind of put a pin in that 
essentially what you're saying 

205
00:13:14,080 --> 00:13:20,320
here is that a a smart account 
like SAFE can can have multiple 

206
00:13:20,320 --> 00:13:24,680
types of signers verifying and 
executing sort of signing for 

207
00:13:24,680 --> 00:13:27,000
the for the transaction. 
But at the end of the day at the

208
00:13:27,000 --> 00:13:30,720
end of the transaction an EOA 
needs to execute that 

209
00:13:30,720 --> 00:13:33,160
transaction on chain and pay the
gas fee. 

210
00:13:33,560 --> 00:13:35,880
So like we encounter this 
basically every time we do a 

211
00:13:36,000 --> 00:13:39,920
safe transaction. 
You know all of us sign and then

212
00:13:39,920 --> 00:13:43,000
we have like one account that 
has just like a bunch of ETH on 

213
00:13:43,000 --> 00:13:44,720
it and it's just used to pay for
gas. 

214
00:13:45,160 --> 00:13:47,720
And you know that account 
basically executes the 

215
00:13:47,720 --> 00:13:49,760
transaction and sends it on 
chain and that has to be an EO 

216
00:13:49,760 --> 00:13:52,040
account. 
It can't be some other sort of 

217
00:13:52,040 --> 00:13:54,120
signer or even another smart 
account. 

218
00:13:54,120 --> 00:13:55,280
It has to be an on chain 
account. 

219
00:13:55,880 --> 00:14:00,240
Exactly, at least so far. 
And it doesn't even need to be 

220
00:14:00,240 --> 00:14:03,920
an EOA that the user controls. 
So even in the past there were 

221
00:14:04,440 --> 00:14:09,760
relayer systems like a bichonomy
or Gelato or private relayers 

222
00:14:09,960 --> 00:14:13,840
that are just Eoas that are 
funded that then are instructed 

223
00:14:13,840 --> 00:14:16,360
that once there's a smart 
account transaction that's like 

224
00:14:16,360 --> 00:14:21,120
fully verified and fully signed 
that then this relayer system 

225
00:14:21,120 --> 00:14:24,520
would would take with the EOA 
and and pay for the gas fees and

226
00:14:24,520 --> 00:14:28,920
put on chain. 
And that's where then ERC 457 

227
00:14:28,920 --> 00:14:33,360
comes in where we say that the 
idea should be that we have sort

228
00:14:33,360 --> 00:14:36,360
of like a separate man pool for 
the smart account transactions 

229
00:14:36,800 --> 00:14:40,160
where we can just add the 
smarter account transactions 

230
00:14:40,200 --> 00:14:42,800
that are fully assigned, fully 
valid. 

231
00:14:43,040 --> 00:14:46,880
And then we have a decentralized
mechanism how these transactions

232
00:14:46,880 --> 00:14:49,840
are then put on chain. 
There's actually still in EOA 

233
00:14:49,840 --> 00:14:52,240
involved. 
So that's the EOA that the 

234
00:14:52,240 --> 00:14:56,360
bundler in the in in the 
standard controls the bundlers 

235
00:14:56,360 --> 00:14:58,880
are just of collecting all the 
different smart account 

236
00:14:58,880 --> 00:15:02,280
transactions and are then 
bundling them together and and 

237
00:15:02,280 --> 00:15:06,200
put them on chain by paying for 
the gas fees and using the the 

238
00:15:06,200 --> 00:15:10,240
EOA. 
And they can then get repaid for

239
00:15:10,240 --> 00:15:13,080
this gas fee expenses by 
paymaster which is not a 

240
00:15:13,080 --> 00:15:17,600
component of this standard which
then allows that the the bundler

241
00:15:17,720 --> 00:15:21,680
isn't sitting on the cost but 
actually get out net zero or 

242
00:15:21,680 --> 00:15:26,680
ideally with with some profit. 
And exactly the the standard now

243
00:15:27,480 --> 00:15:31,280
allows that there's no 
centralized relayer involved 

244
00:15:31,280 --> 00:15:33,160
anymore. 
Users don't need to fund their 

245
00:15:33,160 --> 00:15:36,280
own EO AS, but they just trust 
that there's this decentralized 

246
00:15:36,280 --> 00:15:39,920
networks of bundlers that they 
can just throw in the 

247
00:15:39,920 --> 00:15:42,920
transaction and it gets executed
in a trustless way. 

248
00:15:44,160 --> 00:15:50,520
OK, so just to recap here. 
So ERC 4337 uses existing smart 

249
00:15:50,520 --> 00:15:54,800
account or leverages existing 
smart account infrastructure but

250
00:15:55,480 --> 00:16:00,120
offsets the execution or or 
sends the responsibility 

251
00:16:00,120 --> 00:16:01,840
execution to this bundler 
network. 

252
00:16:02,240 --> 00:16:07,120
That bundler network does the on
chain execution of any smart 

253
00:16:07,120 --> 00:16:12,440
account transaction that is ERC 
4337 compatible and that 

254
00:16:12,560 --> 00:16:16,640
therefore alleviates the 
initiators of that transaction 

255
00:16:16,640 --> 00:16:21,760
to have to a execute it and B 
pay for for the on chain gas 

256
00:16:21,760 --> 00:16:26,560
costs does ERC 4337 by bundling 
these transactions. 

257
00:16:27,040 --> 00:16:31,160
I suppose it also implies gas 
optimization because you're 

258
00:16:31,160 --> 00:16:34,000
bundling all these transactions 
together and possibly saving on 

259
00:16:34,000 --> 00:16:37,720
gas by doing so. 
There is some component of of 

260
00:16:37,720 --> 00:16:43,200
gas savings in the end. 
The ERC 457 architecture adds 

261
00:16:43,200 --> 00:16:47,320
some gas overhead itself. 
But assuming that like there's a

262
00:16:47,320 --> 00:16:50,720
lot of adoption of the standard 
over time, that overhead 

263
00:16:51,080 --> 00:16:55,080
decreases and even at some 
points that there should be ways

264
00:16:55,080 --> 00:17:00,360
to to even have better gas 
efficiency than just using like 

265
00:17:00,360 --> 00:17:03,600
a smart account natively itself.
Right. 

266
00:17:03,680 --> 00:17:08,680
And just to come back to this 
signing and execution process, 

267
00:17:08,680 --> 00:17:11,240
So what when you you know I've 
encountered this a bunch of 

268
00:17:11,240 --> 00:17:15,599
times where like we start a 
transaction and then we we 

269
00:17:16,000 --> 00:17:19,480
realized maybe the the amount 
was wrong or there's like some 

270
00:17:19,480 --> 00:17:21,400
issue with the transaction as 
we're signing it. 

271
00:17:21,800 --> 00:17:25,160
This happened recently right, 
where like I had a zero too few 

272
00:17:25,160 --> 00:17:30,800
right on in in my amount and and
so then you know you you you 

273
00:17:30,800 --> 00:17:36,200
have to go through this process 
of reverting the transaction and

274
00:17:36,200 --> 00:17:38,880
that's because because you've 
already signed part of that 

275
00:17:38,880 --> 00:17:44,720
transaction at any point in the 
future other signers could sign 

276
00:17:44,720 --> 00:17:47,200
for the rest of that transaction
and actually execute it. 

277
00:17:47,640 --> 00:17:50,920
Now when it comes to this 
bundler network, you know a 

278
00:17:50,920 --> 00:17:56,000
transaction that has been fully 
signed is basically ready to be 

279
00:17:56,000 --> 00:17:58,960
executed. 
Is there another step then that 

280
00:17:59,280 --> 00:18:04,080
the signers of that transaction 
have to make in order for that 

281
00:18:04,080 --> 00:18:06,280
transaction to be made, say, 
public? 

282
00:18:06,280 --> 00:18:09,680
Or does it remain within the 
hands of the signers and kind of

283
00:18:09,680 --> 00:18:16,080
private until an action is taken
to reveal it to anyone including

284
00:18:16,080 --> 00:18:18,440
this bundle network to then 
execute it on chain? 

285
00:18:19,360 --> 00:18:20,680
There's probably 2 steps to 
that. 

286
00:18:21,200 --> 00:18:24,920
One is that after the partially 
signed transactions can stay 

287
00:18:24,920 --> 00:18:28,520
private until it's fully signed 
and it's sent to the to the 

288
00:18:28,520 --> 00:18:32,080
bundle network, yet still like 
others that are participating. 

289
00:18:32,080 --> 00:18:35,280
For example in multi signature 
use case have access to this 

290
00:18:35,280 --> 00:18:38,080
partially signed transaction. 
So they could complete this 

291
00:18:38,080 --> 00:18:41,280
transaction and send it to the 
bundler network at the later 

292
00:18:41,280 --> 00:18:44,280
point. 
But once it is sent to a bundler

293
00:18:44,280 --> 00:18:47,240
then you need to assume that 
it's out there and they could be

294
00:18:47,400 --> 00:18:51,360
executed at any point. 
But this itself is not different

295
00:18:51,360 --> 00:18:55,840
than to how EO as work as well. 
If you sign a transaction meta 

296
00:18:55,840 --> 00:19:00,200
mask today, if you have too low 
of a gas fee and it's just stuck

297
00:19:00,200 --> 00:19:04,320
in the main pool like it can be 
executed at any point, which you

298
00:19:04,320 --> 00:19:07,560
can resolve by sending a 
transaction again with a higher 

299
00:19:08,160 --> 00:19:12,840
gas fee in order to speed up the
transaction, or by replacing the

300
00:19:12,840 --> 00:19:15,920
transaction on the same nonce 
with a different transaction. 

301
00:19:16,160 --> 00:19:18,160
So that would also be the case 
with smart accounts. 

302
00:19:18,160 --> 00:19:21,480
They also have a nonce. 
So once a transaction then is 

303
00:19:21,480 --> 00:19:24,680
executed at the same nonce, that
means that the other partially 

304
00:19:24,680 --> 00:19:27,400
signed transaction or fully 
signed transaction is not able 

305
00:19:27,640 --> 00:19:31,200
to be executed anymore and can 
be disregarded. 

306
00:19:31,880 --> 00:19:35,440
But up up in that point, when 
the nonce is still available and

307
00:19:35,440 --> 00:19:38,600
the transaction is is out there 
like it needs to be assumed that

308
00:19:38,600 --> 00:19:42,320
it can be executed. 
I guess we've clarified here 

309
00:19:42,320 --> 00:19:48,760
that your C4337 is related to 
executing transactions. 

310
00:19:49,400 --> 00:19:53,720
Is there an EOA that is creating
a standard for how smart 

311
00:19:53,720 --> 00:19:57,480
accounts should be conceived 
like in terms of the 

312
00:19:57,480 --> 00:19:58,960
architecture of the start smart 
account? 

313
00:19:58,960 --> 00:20:04,560
Or is that up to smart account 
like companies and and service 

314
00:20:04,560 --> 00:20:08,360
providers to decide? 
As long as they are compatible 

315
00:20:08,360 --> 00:20:11,120
with ERC 4337, they can do 
whatever they want on the 

316
00:20:11,120 --> 00:20:15,760
software side. 
Yeah, so ERC 457 itself has 

317
00:20:15,760 --> 00:20:19,120
already some requirements 
towards smarter cons. 

318
00:20:19,880 --> 00:20:22,240
For example that it requires 
that the smart account 

319
00:20:22,240 --> 00:20:25,680
transaction is starting from the
account itself, which is 

320
00:20:25,680 --> 00:20:29,120
relevant if you think about 
modular smart accounts. 

321
00:20:29,120 --> 00:20:33,160
So you might have different 
execution logic for an account 

322
00:20:33,480 --> 00:20:37,120
and have it depending on what 
type of transaction it would 

323
00:20:37,360 --> 00:20:40,360
require a different signature 
scheme or or so on. 

324
00:20:40,880 --> 00:20:44,280
And there the transaction needs 
to start in the account and then

325
00:20:44,280 --> 00:20:47,440
go to the to the module which 
contains the execution logic, 

326
00:20:48,000 --> 00:20:51,240
which, yeah, there's some 
details there that just define 

327
00:20:51,240 --> 00:20:54,880
how the account works. 
There's other ER CS that 

328
00:20:55,440 --> 00:20:59,840
standardize certain patterns for
smart accounts, such as proxy 

329
00:20:59,840 --> 00:21:05,160
patterns or now more recently 
again with modular smart 

330
00:21:05,160 --> 00:21:08,400
accounts. 
There's certain initiatives from

331
00:21:08,400 --> 00:21:13,600
the community that say the idea 
should be that we can create 

332
00:21:13,600 --> 00:21:16,480
these different modules, which 
you can imagine to be in a way 

333
00:21:16,480 --> 00:21:21,760
like apps on a smartphone. 
So we shouldn't go to a world 

334
00:21:21,760 --> 00:21:26,040
where you change your account in
order to kind of add a new 

335
00:21:26,040 --> 00:21:29,920
feature to it, be like a session
key recovery or something like 

336
00:21:29,920 --> 00:21:32,360
that. 
But instead it should be like 

337
00:21:32,360 --> 00:21:34,240
downloading NAP on your 
smartphone. 

338
00:21:34,520 --> 00:21:38,200
And that's enabled through these
modular smart accounts, which 

339
00:21:38,200 --> 00:21:40,640
means that you have your base 
account which actually has 

340
00:21:40,640 --> 00:21:46,080
certain default logic and you 
expand that with modules. 

341
00:21:46,200 --> 00:21:50,280
This can be validation plug-ins,
these can be certain safeguards 

342
00:21:50,280 --> 00:21:53,680
that are added to the account 
and that then extends the, the 

343
00:21:53,680 --> 00:21:56,560
logic of the account. 
And there there's no initiatives

344
00:21:56,560 --> 00:22:00,200
that say we want to have, yeah, 
certain parts of this 

345
00:22:00,320 --> 00:22:03,360
architecture of this modular 
architecture be the same across 

346
00:22:03,360 --> 00:22:05,600
different smart account 
implementations. 

347
00:22:06,200 --> 00:22:09,440
Why should we do that? 
The idea is that you then don't 

348
00:22:09,440 --> 00:22:14,040
have to create these modules for
different implementations 

349
00:22:14,040 --> 00:22:17,520
separately, but you can actually
assume that they have certain 

350
00:22:17,800 --> 00:22:20,320
standards that they comply to. 
And the modules that you create 

351
00:22:20,320 --> 00:22:23,680
for Smart Account A works the 
same way also with Smart Account

352
00:22:23,680 --> 00:22:26,160
B. 
These are yeah, there's actually

353
00:22:26,160 --> 00:22:31,520
2 standards out there. 
As always, it's not enough to 

354
00:22:31,520 --> 00:22:34,080
have one standard, to have a 
second standard and then the 

355
00:22:34,080 --> 00:22:37,600
first standard to get rid of the
other two and so on. 

356
00:22:38,000 --> 00:22:42,160
But they are the ERC 6900 which 
was started last summer by the 

357
00:22:42,160 --> 00:22:48,160
Alchemy team and you got ERC 
7579 which is a collaboration 

358
00:22:48,160 --> 00:22:52,720
between Rhinestone by Economy, 
OK X and others that define 

359
00:22:52,720 --> 00:22:55,720
different ways how these modular
smart accounts could look like 

360
00:22:56,240 --> 00:22:58,720
with some different technical 
assumptions. 

361
00:22:59,000 --> 00:23:03,720
Completely ERC 6900 bundles the 
modular architecture also with a

362
00:23:03,720 --> 00:23:05,840
permissioning system. 
So you say you have these 

363
00:23:05,840 --> 00:23:08,600
different modules and you want 
to give certain permissions to 

364
00:23:08,600 --> 00:23:10,920
these modules as a security 
function. 

365
00:23:11,120 --> 00:23:16,320
And ERC 7579 is a very minimal 
standard that really just 

366
00:23:16,320 --> 00:23:20,280
focuses on the modular 
architecture of smart accounts 

367
00:23:20,280 --> 00:23:24,640
and leaves the security, the 
permissioning system potentially

368
00:23:24,640 --> 00:23:29,520
to future ERC and just says we 
shouldn't overcomplicate things,

369
00:23:29,720 --> 00:23:31,840
we should just focus on one 
thing after the other. 

370
00:23:32,160 --> 00:23:36,560
And yeah, these standards are in
a way competing at this point 

371
00:23:36,880 --> 00:23:41,120
from the SAFE perspective. 
We actually want the SAFE Smart 

372
00:23:41,120 --> 00:23:43,720
account to be compatible with 
any standard. 

373
00:23:44,240 --> 00:23:48,080
So that's possible as SAFE 
itself has some native 

374
00:23:48,080 --> 00:23:52,680
modularity built in. 
So it already has some some ways

375
00:23:52,680 --> 00:23:55,720
you can extend the the Smart 
account and then you can just 

376
00:23:55,720 --> 00:24:00,000
add an adapter in order to be 
compatible with ERC 6900 or add 

377
00:24:00,000 --> 00:24:04,800
another adapter to be compatible
with 7579 which makes it just 

378
00:24:04,800 --> 00:24:07,640
future proof. 
It's still unclear how these 

379
00:24:07,640 --> 00:24:09,920
standards evolve. 
They're all they're quite early 

380
00:24:10,120 --> 00:24:14,840
got we have little adoption so 
far and they might still change 

381
00:24:14,840 --> 00:24:17,640
over time. 
So our philosophy there is that 

382
00:24:17,640 --> 00:24:22,360
we want to save Smart account 
really to be as have low level 

383
00:24:22,360 --> 00:24:25,240
as possible so that no matter 
how these standards evolve, we 

384
00:24:25,240 --> 00:24:28,920
can just add another adapter to 
to support them and we have an 

385
00:24:28,920 --> 00:24:32,640
account that lasts forever. 
Incredible. 

386
00:24:33,120 --> 00:24:36,360
And So what is Safe's design 
philosophy here? 

387
00:24:36,360 --> 00:24:39,200
I mean 'cause you got you guys 
have like Safecore which is the 

388
00:24:39,200 --> 00:24:42,400
the core of the of the safe 
product and and the smart 

389
00:24:42,400 --> 00:24:48,320
contract logic. 
And do you think that that this 

390
00:24:48,320 --> 00:24:53,240
should be kept as at as minimal 
as possible in terms of features

391
00:24:53,240 --> 00:24:57,480
and all extensions sort of bring
into the functionality or are 

392
00:24:57,480 --> 00:25:00,760
you more like this conservative 
approach to design or do you 

393
00:25:00,760 --> 00:25:05,160
have more of a a broader 
approach to design where this 

394
00:25:05,280 --> 00:25:09,280
core could also include other 
functionalities that are 

395
00:25:09,280 --> 00:25:12,840
currently being fulfilled by the
plug insurance or or modules? 

396
00:25:14,480 --> 00:25:20,480
Yeah, I mean there's probably 
two key philosophies for Safe. 

397
00:25:20,480 --> 00:25:24,960
One is that SAFE, as the name 
says is is very much focused on 

398
00:25:24,960 --> 00:25:28,280
security. 
So that's just the defines 

399
00:25:28,760 --> 00:25:31,800
everything we do at SAFE in 
terms of like how we approach 

400
00:25:32,160 --> 00:25:35,680
upgrades to the smart account, 
how we approach, yeah, how we 

401
00:25:35,960 --> 00:25:39,000
balance for example also 
flexibility versus security 

402
00:25:39,000 --> 00:25:43,080
versus gas efficiency. 
So we always default more 

403
00:25:43,080 --> 00:25:46,240
towards the security side. 
And the other one is that we 

404
00:25:46,240 --> 00:25:51,240
want to be as use case agnostic 
and use a group as agnostic as 

405
00:25:51,240 --> 00:25:55,400
possible, meaning that the 
account itself, the core save 

406
00:25:55,400 --> 00:25:57,720
smart account should be base 
primitive. 

407
00:25:57,720 --> 00:26:01,480
But then you can expand it 
depending on on the use cases 

408
00:26:02,120 --> 00:26:06,280
and optimize then through its 
modular architecture to 

409
00:26:06,280 --> 00:26:10,840
different yeah to different ways
to to use the smarter con. 

410
00:26:11,240 --> 00:26:16,560
And yeah that also means that we
very much depend on the 

411
00:26:16,600 --> 00:26:20,360
ecosystem and run safe. 
So that's something that was was

412
00:26:20,360 --> 00:26:24,520
was clear early on that if you 
would really want to bring web 

413
00:26:24,520 --> 00:26:28,160
free towards smart account 
adoption, if we want every 

414
00:26:28,160 --> 00:26:31,280
account to be a smart account 
which is our mission like we 

415
00:26:31,280 --> 00:26:36,520
cannot aim to do this ourselves.
We really rely on ecosystem and 

416
00:26:36,520 --> 00:26:40,160
the community of builders to to 
help us with that. 

417
00:26:40,400 --> 00:26:44,640
So what the idea is that the 
safe smart account becomes this 

418
00:26:44,640 --> 00:26:48,200
very core of of this smart 
account tradition. 

419
00:26:48,400 --> 00:26:50,760
And then we have others that are
building the different use 

420
00:26:50,760 --> 00:26:54,520
cases, speed, different types of
wallets with the asset 

421
00:26:54,520 --> 00:26:59,000
management solutions that then 
have built around this, this 

422
00:26:59,000 --> 00:27:02,080
core primitive and extend with 
what what's needed for them. 

423
00:27:02,080 --> 00:27:05,720
Is it automations, is it session
keys maybe for a gaming use case

424
00:27:06,200 --> 00:27:09,360
is it more past keys if you want
to build a retail wallet. 

425
00:27:09,600 --> 00:27:15,040
And that then have puts us into 
a role of of building this core 

426
00:27:15,040 --> 00:27:18,280
protocol and working together 
with the ecosystem through 

427
00:27:18,560 --> 00:27:24,200
ecosystem support initiatives to
to target these different user 

428
00:27:24,200 --> 00:27:28,080
groups from their perspective. 
So in Safecore, there's there's,

429
00:27:28,280 --> 00:27:30,240
there's multiple components. 
We have the smart account which 

430
00:27:30,240 --> 00:27:33,120
we've talked about. 
There's also the SDK that sits 

431
00:27:33,120 --> 00:27:35,760
on top of it, which allows like 
you said, you know wallet 

432
00:27:35,760 --> 00:27:38,320
developers to utilize the safe 
infrastructure. 

433
00:27:38,480 --> 00:27:40,840
But we haven't talked about the 
API, which I think is kind of an

434
00:27:40,840 --> 00:27:43,080
overlooked aspect of of 
Safecore. 

435
00:27:43,440 --> 00:27:46,960
And the way I understand, I mean
one of the roles of the API of 

436
00:27:46,960 --> 00:27:50,040
course is to kind of coordinate 
around the signatures. 

437
00:27:50,040 --> 00:27:55,200
So like when you're signing a a 
a safe transaction and that 

438
00:27:55,280 --> 00:28:00,000
transaction then pops up on the 
wallet of say your cosigner or 

439
00:28:00,000 --> 00:28:04,000
like another signer in the in 
the wallet configuration that is

440
00:28:04,000 --> 00:28:07,360
happening via an API that I'm 
not exactly sure how it works. 

441
00:28:07,360 --> 00:28:11,560
So I I don't know what is NOSYS 
or sorry safes the company's 

442
00:28:12,160 --> 00:28:14,360
involvement in running 
infrastructure that's going to 

443
00:28:14,360 --> 00:28:16,880
centralized infrastructure that 
makes that possible or is there 

444
00:28:16,880 --> 00:28:19,360
an on chain component there? 
I'd love it if you could explain

445
00:28:19,600 --> 00:28:23,720
how the API works and who are 
the the the third parties that 

446
00:28:23,720 --> 00:28:26,640
it may rely on. 
The smart account created, the 

447
00:28:26,640 --> 00:28:31,160
smart contact suite is the the 
core of it all. 

448
00:28:31,160 --> 00:28:34,160
But then we provide tooling for 
developers that just make it 

449
00:28:34,160 --> 00:28:36,280
more accessible. 
If you want to build an 

450
00:28:36,280 --> 00:28:39,480
application using smart 
accounts, if you want to use to 

451
00:28:39,480 --> 00:28:44,120
build a wallet, then things like
an SDK or API just make this 

452
00:28:44,120 --> 00:28:48,160
more accessible, make make the 
transition from US easier. 

453
00:28:48,880 --> 00:28:53,280
And yeah, that we we just always
evaluate what's the things that 

454
00:28:53,440 --> 00:28:57,120
we can provide to the ecosystem 
in order to make it easier to 

455
00:28:57,120 --> 00:29:00,520
build on smarter cons. 
And right now it's an SDK that 

456
00:29:00,520 --> 00:29:03,240
just allows us to have yeah to 
interact with the smarter cons 

457
00:29:03,240 --> 00:29:09,440
to craft signatures and so on, 
and to also work with the ERC 

458
00:29:09,440 --> 00:29:14,760
457 relaying network and the API
as you say, that's it's 

459
00:29:14,760 --> 00:29:18,200
essentially an indexer. 
The most part is an indexer, so 

460
00:29:18,200 --> 00:29:21,400
it just indexes all the safe 
smart account transactions out 

461
00:29:21,400 --> 00:29:23,960
there and makes them available 
for developers. 

462
00:29:24,120 --> 00:29:28,320
So you can say you can drag 
different saves for example. 

463
00:29:28,320 --> 00:29:31,160
There's also an event service to
it so you can track if there's 

464
00:29:31,160 --> 00:29:33,240
any updates to it, if 
transactions are triggered, if 

465
00:29:33,240 --> 00:29:37,120
any incoming assets and so on in
order to display this to the 

466
00:29:37,320 --> 00:29:39,400
user. 
But it also has a component of 

467
00:29:39,400 --> 00:29:42,720
the signature collection, which 
is, especially in a multi 

468
00:29:42,720 --> 00:29:45,520
signature use case quite 
critical because you don't want 

469
00:29:45,520 --> 00:29:49,800
to have every signer in a multi 
sig sign on chain, at least in 

470
00:29:49,800 --> 00:29:53,160
most cases you you might want to
save on the gas cost of signing 

471
00:29:53,160 --> 00:29:57,400
on chain and you just sign a 
signature, sign the transaction 

472
00:29:57,400 --> 00:29:59,040
off chain. 
But then you need a way to 

473
00:29:59,040 --> 00:30:01,960
exchange these partially signed 
transactions with other 

474
00:30:02,120 --> 00:30:06,840
participants of the multi sig 
and that's done also via the the

475
00:30:06,840 --> 00:30:08,520
API. 
So you can just post these 

476
00:30:08,520 --> 00:30:11,800
partially signed transactions 
and retrieve them from another 

477
00:30:11,800 --> 00:30:16,280
user and that just allows to 
exchange these transactions. 

478
00:30:16,600 --> 00:30:19,400
Technically, it would be 
possible to exchange these 

479
00:30:19,400 --> 00:30:20,800
transactions for any other 
means. 

480
00:30:21,120 --> 00:30:24,640
Yeah, also on chain signatures 
of course, but also by just 

481
00:30:24,840 --> 00:30:26,760
downloading a file and sending 
it to someone else. 

482
00:30:26,760 --> 00:30:30,600
Obviously that's not very user 
friendly, but yeah, that's why 

483
00:30:30,600 --> 00:30:33,000
we provide this service. 
It's also an open source 

484
00:30:33,000 --> 00:30:34,560
service. 
So there there are projects that

485
00:30:34,560 --> 00:30:39,520
they run it themselves just as a
redundancy and we eventually 

486
00:30:39,520 --> 00:30:42,360
also want to get to a place 
where there's actually a 

487
00:30:42,360 --> 00:30:46,200
decentralized network of of 
indexers that participate in in 

488
00:30:46,200 --> 00:30:50,680
retrieving and yeah sharing 
these partially signed 

489
00:30:50,680 --> 00:30:54,320
transactions just because it's 
it's always better to not rely 

490
00:30:54,320 --> 00:30:57,720
just on a on a centralized 
service even though like anyone 

491
00:30:57,720 --> 00:30:59,320
could run the service themselves
and so on. 

492
00:30:59,320 --> 00:31:03,040
But the the truth is that it 
probably would take quite some 

493
00:31:03,040 --> 00:31:06,360
time until some other service 
what's what's been up that has a

494
00:31:06,600 --> 00:31:10,720
similar performance that would 
then have step in if if our 

495
00:31:10,800 --> 00:31:14,720
index will be done or so. 
So drafted pathway towards this 

496
00:31:14,720 --> 00:31:18,120
decentralized index network is 
is something that we are looking

497
00:31:18,120 --> 00:31:19,880
into. 
Yeah. 

498
00:31:19,880 --> 00:31:20,640
OK. 
Interesting. 

499
00:31:20,640 --> 00:31:25,200
So, so currently for all of the 
SAFE wallet products, I guess 

500
00:31:25,200 --> 00:31:28,720
SAFE is running that 
infrastructure in a kind of 

501
00:31:28,720 --> 00:31:32,880
centralized way. 
But as a user, you can choose to

502
00:31:32,880 --> 00:31:34,520
either run your own 
infrastructure or if you're a 

503
00:31:34,520 --> 00:31:37,760
company using SAFE, you can also
run that infrastructure yourself

504
00:31:37,760 --> 00:31:40,800
for redundancy. 
But but you can also share the 

505
00:31:40,800 --> 00:31:43,400
signatures on chain, correct? 
Exactly. 

506
00:31:44,160 --> 00:31:46,400
OK, interesting. 
Now that might make sense on 

507
00:31:46,400 --> 00:31:48,640
some networks that have like 
lower gas costs, but I got 

508
00:31:48,640 --> 00:31:51,320
Etherium that might be a bit 
prohibitive. 

509
00:31:51,920 --> 00:31:57,400
Yeah, and it also makes sense as
this service is only run for a 

510
00:31:57,680 --> 00:32:02,120
certain set of of of networks. 
On that networks where the index

511
00:32:02,120 --> 00:32:04,800
is not run, you can still sign 
on chain. 

512
00:32:05,040 --> 00:32:06,960
And it also is an additional 
redundancy. 

513
00:32:07,200 --> 00:32:09,840
If the the service is not 
available then you could just 

514
00:32:10,360 --> 00:32:13,480
with some little extra gas cost 
you could sign on chain and and 

515
00:32:14,040 --> 00:32:17,560
not be dependent on. 
It OK, great. 

516
00:32:17,560 --> 00:32:19,200
This is cool. 
Thanks for clearing that up. 

517
00:32:19,200 --> 00:32:22,240
On the. 
Yeah, on the wallet side, I'd 

518
00:32:22,240 --> 00:32:25,200
like to talk a little bit about 
the the user experience here and

519
00:32:25,480 --> 00:32:27,840
what are the some of the 
challenges that you guys face 

520
00:32:27,840 --> 00:32:34,200
when building in a wallet that 
you know supports safe core. 

521
00:32:34,640 --> 00:32:37,560
And you know, I like the preface
this by saying I've had my share

522
00:32:37,560 --> 00:32:41,440
of moments using SAFE where I 
didn't really know what was 

523
00:32:41,440 --> 00:32:45,280
happening or where my 
transaction was in the queue or 

524
00:32:45,280 --> 00:32:47,600
whether like you know, trying to
sign a transaction is not 

525
00:32:47,600 --> 00:32:49,080
working. 
And I'm getting some weird error

526
00:32:49,080 --> 00:32:51,560
message. 
And I've actually talked to SAFE

527
00:32:52,000 --> 00:32:56,040
support like two or three times 
when executing transaction and 

528
00:32:56,040 --> 00:32:59,560
they've always been very helpful
and have helped to clear things 

529
00:32:59,560 --> 00:33:02,720
up. 
But yeah, how do we, how do we 

530
00:33:02,720 --> 00:33:06,080
come to a better user experience
around around these things? 

531
00:33:06,080 --> 00:33:10,600
Because it's still super 
cumbersome, I mean especially if

532
00:33:10,600 --> 00:33:14,160
you're using a Ledger and then 
you sign with Metamask and it 

533
00:33:14,160 --> 00:33:19,680
all feels very cumbersome. 
And I still like I still stress 

534
00:33:19,680 --> 00:33:23,360
every time I do a multi sync 
transaction because there's just

535
00:33:23,360 --> 00:33:26,960
all these moving parts that need
to work and it it it always 

536
00:33:26,960 --> 00:33:30,680
feels like a bit of a a lift to 
to get that transaction signed. 

537
00:33:30,680 --> 00:33:33,520
So yeah, what are your thoughts 
on on user experience generally 

538
00:33:33,520 --> 00:33:35,560
and how can we how can we 
improve all this? 

539
00:33:37,280 --> 00:33:40,840
It's actually interesting 
because there's like two camps 

540
00:33:40,840 --> 00:33:43,520
here. 
Some people say like the the 

541
00:33:43,560 --> 00:33:47,080
safe wallet interface is already
quite user friendly and and some

542
00:33:47,240 --> 00:33:50,360
still have issues. 
It's probably also to to some 

543
00:33:50,360 --> 00:33:53,640
extent if you compare where safe
wallet is today compared to 

544
00:33:53,640 --> 00:33:55,920
where where it is 2-3 years ago.
I would say there's like a 

545
00:33:55,920 --> 00:33:58,760
massive improvement in user 
experience since then, but 

546
00:33:58,760 --> 00:34:01,400
obviously it's still a long long
way to go. 

547
00:34:01,640 --> 00:34:05,120
Also challenge there is that we 
want to have safe wallet, PS 

548
00:34:05,560 --> 00:34:07,120
user group and use case 
agnostic. 

549
00:34:07,520 --> 00:34:12,120
So we cannot optimize for say 
someone that's super technical 

550
00:34:12,120 --> 00:34:16,400
that wants to see like all the 
information and always be able 

551
00:34:16,400 --> 00:34:18,880
to to look under the hood of 
everything at the at the same 

552
00:34:18,880 --> 00:34:23,040
time optimize for someone that 
is less technical that really 

553
00:34:23,040 --> 00:34:24,639
wants to have everything 
abstracted away. 

554
00:34:25,040 --> 00:34:29,040
So we always try to be somewhere
in in in the middle and then 

555
00:34:29,239 --> 00:34:32,600
actually work with the ecosystem
to provide the the best 

556
00:34:32,600 --> 00:34:34,239
experiences for the different 
user groups. 

557
00:34:34,760 --> 00:34:38,440
So for example there's and on 
chain den which specialises 

558
00:34:38,440 --> 00:34:42,239
really on multi signature in a 
in a team use case and having 

559
00:34:42,239 --> 00:34:44,679
transactions. 
They say that the the the 

560
00:34:45,239 --> 00:34:48,840
interface that allows you to 
have side transactions the the 

561
00:34:48,840 --> 00:34:53,560
fastest and they have like some 
you have some notification 

562
00:34:53,560 --> 00:34:56,280
system behind it and so on and 
some some gas abstraction and 

563
00:34:56,560 --> 00:34:58,920
they do certain optimizations 
there. 

564
00:34:58,920 --> 00:35:02,280
And then there's others like a 
Nest wallet which is optimizing 

565
00:35:02,280 --> 00:35:07,600
more for individuals and and and
retail users that allow allows 

566
00:35:07,600 --> 00:35:10,640
them to abstract a little bit 
more from the details away and 

567
00:35:10,640 --> 00:35:15,320
have like a more smooth user 
experience where maybe the trust

568
00:35:15,320 --> 00:35:17,600
team collaboration part is less 
of a focus. 

569
00:35:18,200 --> 00:35:20,800
So that's really our strategy 
that we say say for that it's 

570
00:35:20,800 --> 00:35:24,760
like a baseline, it should be 
like an interface that people 

571
00:35:24,760 --> 00:35:28,560
can start using in order to get 
experiences with with smart 

572
00:35:28,560 --> 00:35:31,440
accounts to to cover certain use
cases. 

573
00:35:31,440 --> 00:35:35,440
But then as you over time, there
should really be like a wide 

574
00:35:35,480 --> 00:35:40,360
ecosystem of of of designated 
solutions that optimize for for 

575
00:35:40,360 --> 00:35:42,720
different solutions. 
Yeah, user groups. 

576
00:35:43,880 --> 00:35:45,920
No that's cool. 
I I made a note of these I think

577
00:35:45,920 --> 00:35:47,960
I'll probably try them out as 
well this. 

578
00:35:48,160 --> 00:35:50,280
So you said on chain den and 
Nest wallet. 

579
00:35:50,960 --> 00:35:53,320
Yeah. 
I mean with like the the some of

580
00:35:53,320 --> 00:35:57,720
the issues I've faced were were 
yeah I think like ordering of of

581
00:35:57,720 --> 00:36:01,400
signing and and then you know 
not able to post a transaction 

582
00:36:01,400 --> 00:36:05,800
on chain and you know having to 
update that transaction with a 

583
00:36:05,800 --> 00:36:08,360
new nonce. 
Like these kinds of things are 

584
00:36:08,360 --> 00:36:11,240
very unintuitive I think for 
most people and even me. 

585
00:36:11,240 --> 00:36:14,880
And you know the error message 
really doesn't explain much of 

586
00:36:14,880 --> 00:36:19,280
what you need to do. 
So I think having kind of a in 

587
00:36:19,280 --> 00:36:22,880
app resolution mechanism to kind
of fix this problem you know 

588
00:36:22,880 --> 00:36:26,040
without having to reach to 
support or look you know look 

589
00:36:26,040 --> 00:36:27,840
for things online. 
And the other thing is I think 

590
00:36:27,840 --> 00:36:30,560
there's I find there's like some
inconsistencies between the way 

591
00:36:30,560 --> 00:36:34,600
the wallet, the mobile wallet 
works and the the desktop works 

592
00:36:35,840 --> 00:36:40,120
the kind of web version. 
And one thing I've never really 

593
00:36:40,120 --> 00:36:43,880
understood is with the with the 
mobile wallet and by the way the

594
00:36:43,880 --> 00:36:46,640
mobile wallet's great like I 
typically do transactions on the

595
00:36:46,640 --> 00:36:49,880
mobile wallet. 
I think that that's the best 

596
00:36:49,880 --> 00:36:53,920
user experience I think for you 
know for what we do and and we 

597
00:36:53,920 --> 00:36:56,360
have a bunch of ledgers that we 
signed with and I love that the 

598
00:36:56,360 --> 00:36:58,360
mobile wallet supports the 
Ledger and we can just like pull

599
00:36:58,360 --> 00:37:00,840
them out and get together and 
and you assign things. 

600
00:37:01,840 --> 00:37:04,120
But there's one thing I don't 
really understand is like why 

601
00:37:04,120 --> 00:37:08,520
you need to have a it. 
It seems like you need to have 

602
00:37:08,520 --> 00:37:11,360
an on device account. 
So like when you create this 

603
00:37:11,360 --> 00:37:15,800
safe for the first time you need
to have like a a seed phrase 

604
00:37:15,800 --> 00:37:16,880
that you have to store 
somewhere. 

605
00:37:16,880 --> 00:37:21,120
It's generated on the, it's 
generated in the app and I 

606
00:37:21,120 --> 00:37:24,160
haven't found a way to be able 
to sign the transactions with 

607
00:37:24,400 --> 00:37:28,120
anything else than that on 
wallet account. 

608
00:37:28,520 --> 00:37:32,440
I can't execute with the with 
the Ledger which kind of seems a

609
00:37:32,440 --> 00:37:34,200
bit backwards to me. 
If we're going to have ledgers 

610
00:37:34,200 --> 00:37:39,400
to to sign safe transactions to 
then have to have this less safe

611
00:37:39,400 --> 00:37:41,760
kind of hot wallet you know on 
the device. 

612
00:37:42,160 --> 00:37:44,880
So that's that's, yeah, I don't 
know, maybe I'm doing something 

613
00:37:44,880 --> 00:37:46,960
wrong here, but that's always 
been a little confusing to me. 

614
00:37:47,440 --> 00:37:50,560
Yeah, are you using Android? 
No iOS. 

615
00:37:50,840 --> 00:37:55,480
IOS OK because technically it 
should be possible to execute 

616
00:37:55,480 --> 00:37:58,040
also with Ledger. 
So the idea about the mobile 

617
00:37:58,040 --> 00:38:02,000
wallet is that it's it should be
just a very smooth way to to 

618
00:38:02,000 --> 00:38:05,920
cosine transactions and you can 
add any kind of like wallets to 

619
00:38:05,920 --> 00:38:08,960
to do so like Ledger via 
Bluetooth for like mobile 

620
00:38:08,960 --> 00:38:13,800
wallets via wallet connect. 
And yeah, I can look into this I

621
00:38:13,800 --> 00:38:15,680
think. 
Yeah, we'll have to talk after, 

622
00:38:16,240 --> 00:38:19,880
but yeah, so there's like these 
kind of minor UX things that I 

623
00:38:19,880 --> 00:38:21,680
find you know can be, can be 
improved. 

624
00:38:21,680 --> 00:38:25,240
But overall you're like I I 
agree with you that the 

625
00:38:25,240 --> 00:38:29,000
experience generally is, is is 
pretty good. 

626
00:38:29,720 --> 00:38:33,280
You know, compared to look like 
10 years ago Brian and I used to

627
00:38:33,280 --> 00:38:35,760
do Bitcoin transactions, 
electron wallet and we have to 

628
00:38:35,760 --> 00:38:38,800
send the partially signed 
transactions over slack and you 

629
00:38:38,800 --> 00:38:43,160
know it was a huge mess, right. 
I mean like this is definitely a

630
00:38:43,280 --> 00:38:47,200
huge leg up from having to do 
this kind of shenanigans, which 

631
00:38:47,200 --> 00:38:49,080
you know for for people who have
been in this space long enough 

632
00:38:49,120 --> 00:38:50,880
will will be, will be familiar 
with. 

633
00:38:51,520 --> 00:38:54,160
Yeah. 
And I mean that's something in 

634
00:38:54,160 --> 00:38:56,480
terms of user experience that's 
very close to my heart because I

635
00:38:56,480 --> 00:39:00,120
think in general the web free 
space like we're we're staying 

636
00:39:00,160 --> 00:39:02,880
saying things since years that 
we're still early and at some 

637
00:39:02,880 --> 00:39:06,680
point we cannot allow us to to 
say that anymore because we it's

638
00:39:06,680 --> 00:39:08,880
still quite cumbersome. 
If you want to do full self 

639
00:39:08,880 --> 00:39:12,840
custody and interact with with 
tabs and like that's still not 

640
00:39:12,840 --> 00:39:17,160
that accessible to a wide range 
of of people like in in the 

641
00:39:17,160 --> 00:39:20,600
world like even just having 
pretty much everything default 

642
00:39:20,600 --> 00:39:24,120
to English like that that's fine
for certain parts of the western

643
00:39:24,120 --> 00:39:27,880
world but we need to have more 
localized solutions but also in 

644
00:39:27,880 --> 00:39:31,960
general how the DX works of of 
wallets today there needs to be 

645
00:39:31,960 --> 00:39:35,440
so much more that that we should
do in next year's. 

646
00:39:35,440 --> 00:39:37,880
And that's also why I'm so 
excited about smart accounts, 

647
00:39:37,880 --> 00:39:40,800
because I think in the long run 
these smart accounts will be the

648
00:39:40,800 --> 00:39:43,760
solution. 
And there's no way around smart 

649
00:39:43,760 --> 00:39:47,040
accounts in order to get to the 
user experience while it's still

650
00:39:47,040 --> 00:39:51,360
retaining like security that is 
needed to to onboard like a 

651
00:39:51,480 --> 00:39:56,120
billion people to to web free. 
Yeah, I think smart accounts are

652
00:39:56,120 --> 00:39:59,760
are huge unlocked there and I'm 
really looking forward to more 

653
00:39:59,760 --> 00:40:04,600
broad adoption of passkey and 
other ways of signing. 

654
00:40:04,600 --> 00:40:06,480
So you know. 
I'll I'll tell you a little bit 

655
00:40:06,480 --> 00:40:07,920
about what's happening. 
I don't know if you're familiar 

656
00:40:07,920 --> 00:40:11,240
with this, but in the Cosmos 
ecosystem Osmosis which is the 

657
00:40:11,240 --> 00:40:14,880
major decks there are doing an 
on chain smart account. 

658
00:40:14,880 --> 00:40:16,960
Now of course the difference 
here is that they manage the 

659
00:40:16,960 --> 00:40:21,600
entire chain and they can really
build things on chain and also 

660
00:40:21,600 --> 00:40:24,640
have certain types of 
transactions be either gas 

661
00:40:24,640 --> 00:40:27,760
subsidized or gas optimized. 
And so they the idea here is to 

662
00:40:27,760 --> 00:40:32,040
do a smart account on chain that
you can set up using, you know 

663
00:40:32,040 --> 00:40:34,880
Oauth like a Twitter account or 
a Google account. 

664
00:40:34,880 --> 00:40:38,960
And then based on the on the 
value of the transactions you're

665
00:40:38,960 --> 00:40:42,880
doing or perhaps even the value 
in the on the account itself. 

666
00:40:42,880 --> 00:40:47,000
Then you you'll be required to 
add a second factor 

667
00:40:47,000 --> 00:40:49,600
authentication. 
So it could be like a passkey or

668
00:40:49,600 --> 00:40:52,440
or a secondary account to sign. 
And you know they're building 

669
00:40:52,440 --> 00:40:55,520
all of this infrastructure on 
the chain, which is, which is 

670
00:40:55,520 --> 00:40:56,640
great when you're doing your own
chain. 

671
00:40:56,640 --> 00:41:00,040
And you know brings me to 
another question I wanted to ask

672
00:41:00,040 --> 00:41:06,840
you is what's safe strategy when
it comes to building it's cross 

673
00:41:06,840 --> 00:41:09,560
chain presence. 
And by cross chain, I don't mean

674
00:41:09,560 --> 00:41:12,440
just EVM chains, which I know 
you guys are supporting very 

675
00:41:12,440 --> 00:41:17,200
well, but other ecosystems like 
Solana, like Cosmos chains, like

676
00:41:17,200 --> 00:41:21,600
the MOVE ecosystem, the, you 
know, Aptos and Sui, you know, 

677
00:41:21,600 --> 00:41:24,080
are you guys looking at those 
ecosystems at all and thinking 

678
00:41:24,080 --> 00:41:27,680
of ways that SAFE can support 
those or is your focus really 

679
00:41:27,680 --> 00:41:31,320
just the EVM and you'll stick 
to, you know, what you're great 

680
00:41:31,320 --> 00:41:34,160
at? 
I would say when it comes to 

681
00:41:34,160 --> 00:41:38,040
cross chain, smart accounts in 
the short term will bring new 

682
00:41:38,040 --> 00:41:41,720
challenges in in the long run 
will actually solve cross chain 

683
00:41:41,720 --> 00:41:47,200
in a way that it can make it 
irrelevant in what networks you 

684
00:41:47,240 --> 00:41:49,960
interact with what dabs. 
But this can be abstracted away 

685
00:41:50,640 --> 00:41:54,280
through through smart accounts. 
But yeah, in in the short term 

686
00:41:54,280 --> 00:41:57,200
there there are challenges. 
One of them is that smart 

687
00:41:57,200 --> 00:42:01,720
accounts, they are, they are 
just very unique per chain. 

688
00:42:01,840 --> 00:42:04,160
So because these are smart 
contacts, they're deployed on a 

689
00:42:04,160 --> 00:42:07,760
certain network, they have the 
logic on that network. 

690
00:42:08,360 --> 00:42:12,520
Which means that while it's 
possible to have a similar smart

691
00:42:12,520 --> 00:42:15,880
account on a different network 
with the same logic, potentially

692
00:42:15,880 --> 00:42:18,600
even the same address through 
Grade 2 counterfactual 

693
00:42:18,600 --> 00:42:21,600
deployment, they're still very 
much independent accounts. 

694
00:42:21,600 --> 00:42:26,760
Which is a difference towards EO
as which are by design because 

695
00:42:26,760 --> 00:42:30,040
it's kind of standardised 
especially in the EVM ecosystem 

696
00:42:30,280 --> 00:42:33,040
like you have a seat race and 
it's immediately and we count on

697
00:42:33,080 --> 00:42:35,960
all EVM networks. 
So that's that's going to 

698
00:42:35,960 --> 00:42:40,800
change, it has to change and 
there are solutions that are 

699
00:42:40,800 --> 00:42:44,560
being worked on in terms of like
key stores that are accessible 

700
00:42:44,560 --> 00:42:49,320
cross chain and ways to to sync 
the state across the chains that

701
00:42:49,320 --> 00:42:52,560
will eventually solve that. 
There was just recently like a 

702
00:42:52,560 --> 00:42:56,960
spec on that from Michael from 
base that goes into that that 

703
00:42:56,960 --> 00:43:00,040
that's one thing and then the 
the other challenge will be that

704
00:43:00,200 --> 00:43:03,400
smart accounts they are very 
much depend on the virtual 

705
00:43:03,400 --> 00:43:06,920
machine. 
So you can have a smart contact 

706
00:43:06,920 --> 00:43:11,560
that creates your your account 
but obviously that's very much 

707
00:43:11,800 --> 00:43:15,000
depend on what smart contact 
language you use for 

708
00:43:15,000 --> 00:43:18,880
implementation and all the 
security assumptions are depend 

709
00:43:18,880 --> 00:43:21,360
on the the virtual machine 
behind it. 

710
00:43:21,360 --> 00:43:24,960
So it's possible to create a 
similar smart account then 

711
00:43:24,960 --> 00:43:29,600
across non EVM chains like a 
Solana or or else. 

712
00:43:29,720 --> 00:43:33,960
But this will necessarily you 
remove certain technical 

713
00:43:33,960 --> 00:43:36,800
assumptions that you can take 
certain security assumptions and

714
00:43:36,800 --> 00:43:40,280
you will have to build up the 
the trust into this smart 

715
00:43:40,280 --> 00:43:43,920
account from scratch. 
So there's similar solutions to 

716
00:43:43,920 --> 00:43:47,760
save on say Solana, that's like 
a squats that have been around 

717
00:43:48,000 --> 00:43:50,160
quite a while and that do 
similar things. 

718
00:43:50,160 --> 00:43:54,920
And for safe the near to mid 
term focus will still be EVM. 

719
00:43:55,240 --> 00:43:57,480
I think there's enough that can 
be built there. 

720
00:43:57,480 --> 00:44:00,720
In terms of smart account 
adoption on DVM itself, it's 

721
00:44:00,720 --> 00:44:04,240
it's a huge ecosystem and 
there's it just allows to move 

722
00:44:04,640 --> 00:44:07,800
faster if you can make the 
technical assumptions on the VM 

723
00:44:07,800 --> 00:44:10,160
virtual machine. 
But obviously in the long run 

724
00:44:10,160 --> 00:44:15,200
this should not be limited to to
that and safe in in some way or 

725
00:44:15,200 --> 00:44:19,480
another should be also, yeah, 
available outside of the VM 

726
00:44:19,480 --> 00:44:21,360
itself. 
And whether that that means 

727
00:44:21,360 --> 00:44:24,320
integrating with some of the 
other implementations such such 

728
00:44:24,360 --> 00:44:27,720
as the squads on on other 
networks, that's yet to be seen.

729
00:44:28,080 --> 00:44:31,160
But that's definitely in the 
long term, say three to five 

730
00:44:31,160 --> 00:44:32,360
years, something that needs to 
be done. 

731
00:44:34,040 --> 00:44:38,480
Yeah, I mean I I would love to 
see safe in other ecosystems 

732
00:44:39,160 --> 00:44:41,840
been brought mostly because like
solutions I think are lacking. 

733
00:44:42,120 --> 00:44:46,880
Yeah, I I think that in the next
one to two years we'll see safe 

734
00:44:46,880 --> 00:44:51,360
competitors emerge in those 
ecosystems like native solutions

735
00:44:51,360 --> 00:44:55,560
emerge in those ecosystems which
will you know half mover, first 

736
00:44:55,560 --> 00:45:00,320
mover advantage and likely make 
it difficult for SAFE to really 

737
00:45:00,320 --> 00:45:03,640
gain a a a foothold in in those 
ecosystems. 

738
00:45:03,760 --> 00:45:06,040
Maybe you know with the 
exception of like existing 

739
00:45:06,040 --> 00:45:09,520
customers on the safe on the EVM
side that have assets there that

740
00:45:09,520 --> 00:45:11,680
want to move those assets into 
other ecosystems. 

741
00:45:12,160 --> 00:45:16,120
What when it comes to the EVM 
ecosystem and the cross chain 

742
00:45:16,120 --> 00:45:20,360
compatibility, what's the 
progress in terms of being able 

743
00:45:20,360 --> 00:45:25,080
to control cross chain accounts 
from like a single account. 

744
00:45:25,080 --> 00:45:30,040
So for example you know if you 
had assets on or you had like a 

745
00:45:30,040 --> 00:45:35,520
safe account on on Polygon and 
wanted to control assets on 

746
00:45:35,520 --> 00:45:37,560
another account by signing 
something on Polygon. 

747
00:45:37,560 --> 00:45:42,440
Like is there any progress in, 
in the in the direction of 

748
00:45:42,640 --> 00:45:44,920
Interchain accounts as we call 
them in in Cosmos. 

749
00:45:45,000 --> 00:45:48,920
So these are accounts that can 
be controlled externally by an 

750
00:45:48,920 --> 00:45:52,080
account on the other chain. 
Is that also something that can 

751
00:45:52,080 --> 00:45:54,360
exist within the safe ecosystem 
in the EVM world? 

752
00:45:55,520 --> 00:45:57,640
Definitely. 
So that's what I mentioned 

753
00:45:57,640 --> 00:46:01,520
before on key stores. 
So that's actually something 

754
00:46:01,520 --> 00:46:05,320
that was proposed by Vitalik 
Buterin last year and now 

755
00:46:05,480 --> 00:46:08,200
certain teams are are looking 
into. 

756
00:46:08,200 --> 00:46:12,080
The idea is that you should have
the ability to have multiple 

757
00:46:12,120 --> 00:46:18,040
Sparta cons but after the core 
validation logic or the the 

758
00:46:18,040 --> 00:46:21,880
logic what keys are associated 
with that account separated in 

759
00:46:21,960 --> 00:46:25,840
two separate contract which is a
key store contract which then 

760
00:46:25,840 --> 00:46:28,840
allows you to have less of that 
logic in the account itself and 

761
00:46:28,840 --> 00:46:31,520
you just say from the account. 
You then make a state proof 

762
00:46:31,520 --> 00:46:35,800
towards that key store and then 
it allows you to see what's 

763
00:46:35,800 --> 00:46:39,480
actually the the account logic 
and and proof that against the 

764
00:46:39,880 --> 00:46:43,840
the transaction and that can 
then be taken cost chain as well

765
00:46:43,960 --> 00:46:46,520
actually in via designated roll 
up. 

766
00:46:46,760 --> 00:46:49,640
So that could be like a keystore
roll up that then contains the 

767
00:46:49,640 --> 00:46:53,520
logic of your account as you 
have your sub account so to say 

768
00:46:53,520 --> 00:46:57,200
on different networks. 
Could be EVM, could be beyond 

769
00:46:57,200 --> 00:47:01,720
DVM that just allow you to use a
cross chain state proof against 

770
00:47:01,720 --> 00:47:07,240
this keystore roll up in order 
to prove what what keys or what 

771
00:47:07,680 --> 00:47:09,720
validation logic this this 
account has. 

772
00:47:10,240 --> 00:47:13,720
And then this essentially means 
that you will have cross chain 

773
00:47:13,720 --> 00:47:17,520
smarter cons that can then be 
allow you to think to to achieve

774
00:47:17,520 --> 00:47:20,560
things like complete network 
abstraction where for a user or 

775
00:47:20,560 --> 00:47:23,520
a developer it doesn't even 
matter where the transaction is 

776
00:47:23,520 --> 00:47:25,560
starting and where it's pointing
at. 

777
00:47:25,560 --> 00:47:29,560
But this is then exactly the way
by having these questions smart 

778
00:47:29,560 --> 00:47:32,480
accounts. 
I would still say it's like 

779
00:47:32,640 --> 00:47:37,200
maybe 6 to 12 months out until 
we have first production ready 

780
00:47:37,360 --> 00:47:39,400
implementations of such keystone
roll ups. 

781
00:47:39,640 --> 00:47:45,200
But there's like major teams 
working on that and I'm I'm 100%

782
00:47:45,200 --> 00:47:47,720
sure that we are going to that 
direction and it's got to be 

783
00:47:47,720 --> 00:47:51,480
first maybe optimized for 
certain sub ecosystems say the 

784
00:47:51,880 --> 00:47:54,240
optimism ecosystem or the small 
ecosystem. 

785
00:47:54,480 --> 00:47:59,040
But over time it will expand and
even go go beyond the EVM where 

786
00:47:59,240 --> 00:48:01,960
you can have like the keystore 
roll up which is based in 

787
00:48:02,200 --> 00:48:05,320
Etherium layer one but as a roll
up in order to optimize some gas

788
00:48:05,320 --> 00:48:08,040
efficiency. 
But then allows you to yeah, 

789
00:48:08,040 --> 00:48:11,520
prove that that verification 
state towards any other 

790
00:48:11,640 --> 00:48:13,960
networks. 
Very cool. 

791
00:48:13,960 --> 00:48:18,080
Yeah I mean I think that that's 
mostly like untapped kind of 

792
00:48:18,080 --> 00:48:22,760
feature in in the EVM world 
this, this ability to control 

793
00:48:22,760 --> 00:48:26,480
accounts cross chain you know 
again like in you know in Cosmos

794
00:48:26,480 --> 00:48:28,560
we have standards for this and 
and it exists and we're able to 

795
00:48:28,560 --> 00:48:33,240
do this pretty easily but but in
the EVM IT world it's I think 

796
00:48:33,240 --> 00:48:36,720
it's it's still needs a little 
bit of time in order to become 

797
00:48:36,720 --> 00:48:39,280
production ready. 
So you guys recently announced 

798
00:48:39,280 --> 00:48:42,200
this, I think it was last year 
this recovery hub. 

799
00:48:42,200 --> 00:48:46,280
So it's safe added all these 
different kind of methods to do 

800
00:48:46,280 --> 00:48:50,800
recovery and you have some 
partners there that I guess can 

801
00:48:50,800 --> 00:48:54,760
act as third party signers in 
the event of lost keys. 

802
00:48:55,320 --> 00:48:57,800
What does this look like, and 
what are the kind of trust 

803
00:48:57,800 --> 00:49:01,960
assumptions that users of SAFE 
have to make in order to be 

804
00:49:02,160 --> 00:49:07,080
using this recovery feature? 
Yeah, so the idea behind 

805
00:49:07,080 --> 00:49:11,320
recovery is that you may have 
more user friendly ways to get 

806
00:49:11,320 --> 00:49:14,320
keys into head to hand of of 
users, be it like passkey 

807
00:49:14,320 --> 00:49:19,520
signers or be it social login 
signers such as like log in with

808
00:49:19,520 --> 00:49:23,480
Google or something like that. 
But still you want to have worst

809
00:49:23,480 --> 00:49:27,680
case scenario way to recover 
access to your account and that 

810
00:49:27,680 --> 00:49:30,920
actually at least in my opinion 
it it's something that's very 

811
00:49:31,560 --> 00:49:33,920
idiosyncratic to the user 
itself. 

812
00:49:33,920 --> 00:49:36,400
So there might be different 
users that want to have 

813
00:49:36,400 --> 00:49:38,040
different ways to recover the 
account. 

814
00:49:38,240 --> 00:49:41,520
Some like trust their family and
friends. 

815
00:49:41,520 --> 00:49:44,280
They just want to have sort of 
like a multi say controlled by 

816
00:49:44,280 --> 00:49:47,280
their family and friends 
controlling their account. 

817
00:49:47,280 --> 00:49:51,840
And if they lose their own keys 
they just approach these social 

818
00:49:51,840 --> 00:49:55,160
recovery signers and and ask 
them to initiate the recovery. 

819
00:49:55,440 --> 00:50:01,000
Others may trust an institution 
such as a a bank or a notary or 

820
00:50:01,000 --> 00:50:04,880
something like that that can 
execute the recovery in certain 

821
00:50:04,880 --> 00:50:10,520
cases even in inheritance cases 
worst case and Yep there's in 

822
00:50:10,920 --> 00:50:15,880
for others that may trust some 
like decentralized network of 

823
00:50:16,800 --> 00:50:22,040
like yeah humanity doll kind of 
system that then verifies the 

824
00:50:22,040 --> 00:50:25,520
identity of of someone that then
can be used to recover the 

825
00:50:25,520 --> 00:50:28,720
account through some identity 
verification. 

826
00:50:29,640 --> 00:50:34,120
And how we're thinking then 
around what we built in terms of

827
00:50:34,360 --> 00:50:37,120
the foundations for enabling 
these use cases is that we 

828
00:50:37,320 --> 00:50:42,120
created this recovery hub which 
is very much agnostic system to 

829
00:50:42,360 --> 00:50:45,280
add different recovery systems 
and we're working together with 

830
00:50:45,280 --> 00:50:48,880
partners in order to showcase 
some of these capabilities. 

831
00:50:49,480 --> 00:50:53,240
So the very base logic of the 
recovery hub is that you can add

832
00:50:53,240 --> 00:50:55,800
a module which is like a 
separate Spark contract which 

833
00:50:56,000 --> 00:50:58,520
has access to your account as an
admin key. 

834
00:50:58,760 --> 00:51:03,920
But then you add security guards
that make sure that this admin 

835
00:51:03,920 --> 00:51:08,880
key is is somewhere some 
somewhat protected that and that

836
00:51:08,880 --> 00:51:11,560
can be depending on on what the 
user prefers. 

837
00:51:11,600 --> 00:51:16,240
It's usually like a a time lock 
so that the user can say this 

838
00:51:16,240 --> 00:51:20,200
separate contract can recover my
account but only by having a 

839
00:51:20,200 --> 00:51:23,320
time lock of like 3 months. 
So I can't really pre sign the 

840
00:51:23,480 --> 00:51:26,320
the recovery and in that three 
months I could cancel the 

841
00:51:26,320 --> 00:51:30,560
recovery if I have access to my 
keys and this then allows to 

842
00:51:30,560 --> 00:51:35,680
have less trusted system where 
am I may delegate this admin key

843
00:51:35,680 --> 00:51:39,320
to my social recovery setup or 
to this institution but still 

844
00:51:39,320 --> 00:51:42,280
have to certainly that they 
cannot go rogue and just run 

845
00:51:42,280 --> 00:51:45,480
away with the account. 
There's other ways to to add 

846
00:51:45,840 --> 00:51:49,600
security such as Signum which is
a Swiss licensed bank which is 

847
00:51:49,600 --> 00:51:52,160
building a recovery system for 
the recovery hub. 

848
00:51:52,400 --> 00:51:56,120
What they're doing is that they 
limit the capabilities of this 

849
00:51:56,320 --> 00:52:00,720
this recovery module to only 
exchanging certain signers in 

850
00:52:00,720 --> 00:52:03,640
the con. 
So the logic goes like this 

851
00:52:03,800 --> 00:52:08,080
recovery module can exchange 
signer A but not signer BC or D 

852
00:52:08,600 --> 00:52:11,920
and this can be then configured 
by the user and they can say 

853
00:52:11,920 --> 00:52:16,120
just this one signer which I 
trust signum to recover. 

854
00:52:16,640 --> 00:52:21,200
I set up and this then just 
limits what signum can do with 

855
00:52:21,200 --> 00:52:23,320
the account and again with some 
time lock. 

856
00:52:23,320 --> 00:52:25,320
So there's an additional 
protection for that. 

857
00:52:25,520 --> 00:52:28,720
But essentially the it's it's 
very open-ended what can be done

858
00:52:28,720 --> 00:52:32,280
there and there can be vast 
amounts of different ways that 

859
00:52:32,760 --> 00:52:35,240
these these recovery setups are 
being created. 

860
00:52:36,680 --> 00:52:40,880
And are there any kind of best 
practices like so if if someone 

861
00:52:40,880 --> 00:52:45,360
wanted to set up a multi sig 
account or you know a smart 

862
00:52:45,360 --> 00:52:48,280
account and then have a 
recovery. 

863
00:52:48,280 --> 00:52:51,200
I think one of the things that 
you internally we spend a lot of

864
00:52:51,200 --> 00:52:55,320
time thinking about was OK what 
is the key distribution setup 

865
00:52:55,320 --> 00:52:57,760
look like? 
Like who has keys, where are 

866
00:52:57,760 --> 00:53:00,000
they? 
Where are the seats stored? 

867
00:53:00,640 --> 00:53:03,440
You know what other third 
parties outside of our 

868
00:53:03,440 --> 00:53:07,200
organization might have access 
to these keys for backup or 

869
00:53:07,200 --> 00:53:10,280
recovery purposes. 
Does safe make any 

870
00:53:10,280 --> 00:53:13,720
recommendations or best 
practices recommend best 

871
00:53:13,720 --> 00:53:17,960
practices when it term comes to 
doing this kind of, you know, 

872
00:53:17,960 --> 00:53:20,080
smart account set up within an 
organization? 

873
00:53:21,680 --> 00:53:24,440
I mean, we usually recommend to 
use a threshold of more than 

874
00:53:24,440 --> 00:53:26,240
one, that's obvious. 
You want to have multi 

875
00:53:26,240 --> 00:53:29,880
signature, not just one out of 
five, where every one of the 

876
00:53:30,280 --> 00:53:33,240
members of the organization can 
do whatever they want, so 

877
00:53:33,240 --> 00:53:36,280
there's at least multiple people
looking over a transaction. 

878
00:53:36,520 --> 00:53:40,120
And then we also recommend to 
not use a threshold that's equal

879
00:53:40,560 --> 00:53:44,680
to the number of signers, so not
to any five out of five schemes 

880
00:53:45,040 --> 00:53:48,160
because that will mean that only
one key needs to be lost and the

881
00:53:48,320 --> 00:53:52,800
the account is not usable 
anymore in case you don't have 

882
00:53:52,800 --> 00:53:55,040
recovery. 
So that's always dependent on 

883
00:53:55,040 --> 00:53:56,520
also what the recovery setup you
use. 

884
00:53:56,880 --> 00:54:00,880
Obviously if you have a very 
trusted recovery setup then it 

885
00:54:00,880 --> 00:54:03,600
might make sense to have like a 
55 out of five if you have this 

886
00:54:04,320 --> 00:54:08,640
emergency way to to recover the 
the account, but without that 

887
00:54:09,560 --> 00:54:11,360
have at least like a three out 
of five. 

888
00:54:11,520 --> 00:54:14,520
That's enough for having 
multiple people cosign. 

889
00:54:14,920 --> 00:54:17,880
But that's also allows for some 
people to not be available at 

890
00:54:17,880 --> 00:54:22,960
certain times or also certain 
keys to be lost and in order to 

891
00:54:22,960 --> 00:54:24,720
to create key rotations 
afterwards. 

892
00:54:25,200 --> 00:54:28,320
But then that's just very basic 
recommendations I would do. 

893
00:54:28,480 --> 00:54:31,640
In general it it very much 
depends on on the specific use 

894
00:54:31,640 --> 00:54:34,240
cases and like how many people 
are involved, like what's the 

895
00:54:34,600 --> 00:54:36,600
trust assumptions between these 
people and so on. 

896
00:54:37,520 --> 00:54:38,520
Yeah, that's true. 
Yeah. 

897
00:54:38,520 --> 00:54:41,240
And there's also a kind of 
catastrophic, you know we we 

898
00:54:41,240 --> 00:54:44,600
thought a lot about this this 
catastrophic scenario where 

899
00:54:44,960 --> 00:54:48,160
since the team often travels 
together, if there was a 

900
00:54:48,160 --> 00:54:52,640
catastrophic scenario where we 
were to all perish, how would 

901
00:54:52,840 --> 00:54:55,480
you know heirs or other 
stakeholders be able to recover 

902
00:54:55,480 --> 00:54:59,200
keys in that event. 
And so we had to think about 

903
00:54:59,200 --> 00:55:03,560
safeguards there as well. 
But yeah it it's I think for a 

904
00:55:03,560 --> 00:55:06,640
lot of teams that have set up 
multi sigs and that are managing

905
00:55:06,640 --> 00:55:10,920
you know significant amounts of 
capital on on these accounts. 

906
00:55:11,040 --> 00:55:14,320
They've probably gone through 
similar reflections and you know

907
00:55:15,320 --> 00:55:16,760
thinking about the best 
scenario. 

908
00:55:17,320 --> 00:55:21,600
I yeah I I don't think there's a
one-size-fits-all solution for 

909
00:55:21,600 --> 00:55:25,640
everyone but certainly like you 
know some best practices here I 

910
00:55:25,640 --> 00:55:27,920
think generally would be would 
be useful. 

911
00:55:27,920 --> 00:55:29,960
I don't know if anyone's 
thinking about these things or 

912
00:55:29,960 --> 00:55:32,760
publishing anything about this 
but I I hadn't found anything 

913
00:55:32,760 --> 00:55:37,040
like those very useful for for 
our for our use case. 

914
00:55:37,440 --> 00:55:40,840
I wanted to also talk a little 
bit about security at Safe. 

915
00:55:41,240 --> 00:55:46,360
So you guys recently passed $100
billion in assets secured by the

916
00:55:46,360 --> 00:55:49,000
protocol. 
I I guess that's that's cross 

917
00:55:49,000 --> 00:55:53,960
ecosystem or cross cross EBM 
chains, that's a lot of 

918
00:55:53,960 --> 00:55:56,680
responsibility on on the SAFE 
team. 

919
00:55:57,160 --> 00:56:00,760
And I would argue that if 
something were to happen, if 

920
00:56:00,760 --> 00:56:05,080
there was a bug in the SAFE 
smart contract that not only the

921
00:56:05,840 --> 00:56:08,920
multi sig holders would suffer 
but I think the entire ecosystem

922
00:56:08,920 --> 00:56:10,240
would probably suffer quite a 
bit. 

923
00:56:10,600 --> 00:56:12,000
Yeah. 
What does that evoke for you, 

924
00:56:12,040 --> 00:56:14,560
and what does the process look 
like? 

925
00:56:14,560 --> 00:56:18,360
The process of making sure these
smart contracts are absolutely 

926
00:56:18,360 --> 00:56:23,000
bulletproof? 
I must say I was more worried in

927
00:56:23,000 --> 00:56:27,520
the early years of safe than I 
am now because like the the vast

928
00:56:27,520 --> 00:56:30,600
amount of the security comes 
through its linear effect. 

929
00:56:30,800 --> 00:56:33,720
So just having like a lot of 
value controlled through to 

930
00:56:33,720 --> 00:56:38,120
smart accounts over time without
there being any issues and 

931
00:56:38,520 --> 00:56:42,920
especially with like the safe 
smart accounts we we don't 

932
00:56:42,920 --> 00:56:45,600
update them that often 
intentionally because every time

933
00:56:45,600 --> 00:56:48,880
you make a change to the to the 
smart contract that means that 

934
00:56:48,880 --> 00:56:51,880
there there could be potentially
any kind of risks associated 

935
00:56:52,000 --> 00:56:55,920
with that. 
So we are not kind of adding new

936
00:56:55,920 --> 00:56:59,520
features just to the base 
contract, but we we allow this 

937
00:56:59,520 --> 00:57:03,160
with modules and then there's a 
different kind of security 

938
00:57:03,400 --> 00:57:04,800
assumptions that that's beyond 
there. 

939
00:57:05,040 --> 00:57:09,800
But yeah generally also because 
it's not just $100 billion worth

940
00:57:09,800 --> 00:57:13,360
of of assets that are secured 
but also like critical 

941
00:57:13,360 --> 00:57:17,720
infrastructure be it like cross 
chain bridges be it restaking 

942
00:57:17,720 --> 00:57:23,000
protocols be it stable coins 
that can use safe smart accounts

943
00:57:23,200 --> 00:57:26,480
under the hood in order to 
control certain upgrade 

944
00:57:26,480 --> 00:57:28,640
parameters and and so on like 
it. 

945
00:57:28,640 --> 00:57:32,200
It is quite critical that the 
the safe smart account is is 

946
00:57:32,200 --> 00:57:35,920
really bulletproof and for that 
we invest a lot into security. 

947
00:57:36,360 --> 00:57:40,320
We actually invested a lot of us
into formal verification. 

948
00:57:40,520 --> 00:57:44,480
The the very first major version
of the the Safe Smart account 

949
00:57:44,480 --> 00:57:48,720
was formally verified over a 
period of six months of of quite

950
00:57:48,720 --> 00:57:51,440
some time and and financial 
investments that went into that.

951
00:57:51,760 --> 00:57:55,200
Obviously multiple audits are 
always part of that having a 

952
00:57:55,680 --> 00:57:59,520
back bounty and the community 
back bounty challenge that is 

953
00:57:59,520 --> 00:58:02,880
associated with that and like a 
big part of security is also 

954
00:58:02,880 --> 00:58:08,080
just on like in internal 
processes and how the culture is

955
00:58:08,080 --> 00:58:10,680
around security in the team and 
and so on. 

956
00:58:10,920 --> 00:58:14,600
But yeah the the key part is is 
still like the the linear effect

957
00:58:14,600 --> 00:58:18,760
and that's something where I 
would argue at this point with 

958
00:58:19,040 --> 00:58:21,760
that much at stake if there 
would be any major issue with 

959
00:58:21,760 --> 00:58:23,880
the safe smart account, no one 
could tell. 

960
00:58:23,880 --> 00:58:28,040
But like I would assume this 
would almost be a reason to to 

961
00:58:28,040 --> 00:58:31,680
initiate a hard fork. 
And for me this is also a signal

962
00:58:31,880 --> 00:58:34,880
that if if people assume this 
would happen at some point it 

963
00:58:34,880 --> 00:58:37,760
would make sense to even make 
certain components of the safe 

964
00:58:37,760 --> 00:58:40,720
smart account to be part of the 
theorem protocol. 

965
00:58:40,960 --> 00:58:44,120
So really enshrine that and make
make it very explicit and say 

966
00:58:44,400 --> 00:58:47,920
like this is logic that we 
expect to to behave a certain 

967
00:58:47,920 --> 00:58:52,320
way and if it if it's not that 
case then it would be a 

968
00:58:53,520 --> 00:58:58,960
consensus issue and to kind of 
lead automatically to have fix 

969
00:58:58,960 --> 00:59:01,880
that or they will be like a back
in a client or something rather 

970
00:59:01,880 --> 00:59:03,440
than a back in the smart 
contract. 

971
00:59:03,680 --> 00:59:06,320
And I would assume that 
eventually we will have to to 

972
00:59:06,320 --> 00:59:09,680
move towards that if we see that
certain parts of the safe smart 

973
00:59:09,680 --> 00:59:14,400
contract are really ossified, we
don't expect them to to change 

974
00:59:14,640 --> 00:59:17,760
much in the future. 
We should just make them part of

975
00:59:17,760 --> 00:59:21,520
the protocol. 
Yeah, yeah, I agree that I think

976
00:59:21,520 --> 00:59:25,680
that would also solve a lot of 
the user experience issues and 

977
00:59:25,760 --> 00:59:30,160
and also the, you know, so the 
gas issues surrounding, you 

978
00:59:30,160 --> 00:59:33,400
know, using safe, obviously like
on Ethereum main net, like using

979
00:59:33,400 --> 00:59:36,640
safe can be quite expensive and 
having that enshrined in the 

980
00:59:36,640 --> 00:59:38,360
protocol I think would make 
sense long term. 

981
00:59:38,360 --> 00:59:41,120
And also in terms of just adding
new features and having smart 

982
00:59:41,120 --> 00:59:43,440
contracts, being able to 
leverage safes, I think there's 

983
00:59:43,440 --> 00:59:46,200
like a huge benefit of saying 
like, OK, this infrastructure 

984
00:59:46,200 --> 00:59:50,360
should be enshrined so that 
most, most new accounts would be

985
00:59:50,360 --> 00:59:54,400
smart accounts, right. 
And so let's take a step back 

986
00:59:54,400 --> 00:59:57,880
here and talk a little bit about
the Nosys ecosystem generally. 

987
00:59:57,880 --> 01:00:00,080
So obviously like Safe is a huge
part of that. 

988
01:00:00,080 --> 01:00:03,560
There's also Nosys chain, 
there's Nosys Pay and you guys 

989
01:00:03,560 --> 01:00:07,640
have lots of other products and 
teams working on all sorts of 

990
01:00:07,640 --> 01:00:10,560
infrastructure. 
How does Safe fit in with all 

991
01:00:10,560 --> 01:00:13,000
this? 
And you know, what's the long 

992
01:00:13,000 --> 01:00:15,960
term vision for? 
I don't know if you can talk 

993
01:00:15,960 --> 01:00:20,480
about like Nosys generally, but 
yeah, the Nosys ecosystem. 

994
01:00:21,360 --> 01:00:23,640
I mentioned at the beginning 
notices originally wanted to do 

995
01:00:23,640 --> 01:00:26,720
prediction markets. 
It was quite early, it was pre 

996
01:00:27,240 --> 01:00:31,760
D5 summer and there was a lot of
infrastructure missing in order 

997
01:00:31,760 --> 01:00:33,320
to even make prediction markets 
work. 

998
01:00:33,880 --> 01:00:37,480
So there was no secure way to 
serve custody assets, which 

999
01:00:37,480 --> 01:00:40,080
prediction markets would create 
a lot of assets which need to be

1000
01:00:40,120 --> 01:00:43,240
self custody. 
There was not a good way to 

1001
01:00:43,480 --> 01:00:47,800
exchange assets because the 
prediction markets would create 

1002
01:00:47,960 --> 01:00:50,640
different tokens and they need 
to be exchanged in a in a 

1003
01:00:50,640 --> 01:00:52,840
capital efficient way and 
there's like a bunch of 

1004
01:00:52,840 --> 01:00:56,680
different things that were 
missing and Nosis was basically 

1005
01:00:56,680 --> 01:01:02,840
forced to to build these things 
out themselves and that's how in

1006
01:01:02,840 --> 01:01:06,000
in the end safe was created. 
That's also how COW swap was 

1007
01:01:06,000 --> 01:01:11,960
created over the years and and 
other things also Nosis became a

1008
01:01:11,960 --> 01:01:14,120
DAO as Nosis Tao. 
So suddenly there was 

1009
01:01:14,120 --> 01:01:19,160
infrastructure needed to really 
enable have community governance

1010
01:01:19,160 --> 01:01:23,000
over nosy style. 
So that's where safe Snap was 

1011
01:01:23,000 --> 01:01:26,240
created, a way to connect a safe
smart account with snapshot 

1012
01:01:26,240 --> 01:01:29,920
space in order to have off chain
voting but have on chain 

1013
01:01:29,920 --> 01:01:32,960
execution. 
And that's then how the Nosy 

1014
01:01:32,960 --> 01:01:38,480
skill team was born as a way, as
a team that's optimising on 

1015
01:01:38,480 --> 01:01:42,760
building DAO infrastructure. 
Then Nosy style had the treasury

1016
01:01:42,760 --> 01:01:46,840
which had to be managed and 
that's where the Kabatki team 

1017
01:01:46,840 --> 01:01:50,800
was born, which is now I think 
the biggest asset manager for 

1018
01:01:50,840 --> 01:01:54,560
for Dow treasuries and they they
manage Dow treasuries like the 

1019
01:01:54,560 --> 01:01:58,880
one from Avatar or ENS like all 
these were initially internal 

1020
01:01:58,880 --> 01:02:01,480
teams but at some point became 
spin offs. 

1021
01:02:02,160 --> 01:02:05,840
But obviously it's it's very 
much still a close ecosystem. 

1022
01:02:05,840 --> 01:02:08,480
So the different teams 
collaborate quite extensively 

1023
01:02:09,120 --> 01:02:13,840
and now like the future for 
Nosis is very much centred 

1024
01:02:13,840 --> 01:02:17,560
around Nosis chain which is 
another project that was 

1025
01:02:17,560 --> 01:02:21,320
actually picked up as XI in the 
past, which then was rebranded 

1026
01:02:21,320 --> 01:02:25,120
to Nosis chain. 
It's an inside chain to Etherium

1027
01:02:25,120 --> 01:02:29,080
and it allows for horizontal 
scaling of Etherium block space.

1028
01:02:29,480 --> 01:02:34,680
And on on Nosis chain, there's 
the the payments network Nosis 

1029
01:02:34,680 --> 01:02:39,520
pay being built out which is 
really the the second focus next

1030
01:02:39,520 --> 01:02:45,160
to Internosis chain itself which
is a way to connect defy with 

1031
01:02:45,160 --> 01:02:48,000
the traditional financial 
system. 

1032
01:02:48,560 --> 01:02:52,840
Meaning that the idea is that 
you are able to really have your

1033
01:02:52,840 --> 01:02:57,880
assets on chain but able to 
spend them off chain and trigger

1034
01:02:57,880 --> 01:03:01,040
bank transfers off chain but 
then result into on chain 

1035
01:03:01,040 --> 01:03:04,200
transactions and really bridge 
the gaps between those two 

1036
01:03:04,200 --> 01:03:06,760
ecosystems. 
As a first step to hopefully 

1037
01:03:06,760 --> 01:03:10,360
then have more and more of the 
the payment ecosystem actually 

1038
01:03:10,360 --> 01:03:14,560
move on chain and not be yeah 
rooted still in the traditional 

1039
01:03:14,560 --> 01:03:18,520
financial systems but then get 
replaced over time with really 

1040
01:03:18,520 --> 01:03:21,760
true untrained systems. 
So they're also safe plays a 

1041
01:03:21,760 --> 01:03:25,800
very critical role in in Nosys 
Pay as it's the underlying 

1042
01:03:26,760 --> 01:03:31,000
account standard for for Nosys 
pay because something like Nosys

1043
01:03:31,000 --> 01:03:33,600
pay actually needs smart 
accounts in order to work 

1044
01:03:34,000 --> 01:03:37,680
because it's it is meant to be 
like self custodial account 

1045
01:03:37,680 --> 01:03:42,120
which then still allows you to 
have like a card like a 

1046
01:03:42,640 --> 01:03:45,080
traditional Visa card associated
with it which you can use to 

1047
01:03:45,080 --> 01:03:47,960
spend off chain. 
And in order to bridge these 

1048
01:03:47,960 --> 01:03:52,120
assets off chain you need to 
have a way that they can be 

1049
01:03:52,200 --> 01:03:55,360
taken from the account and then 
put into the Visa network. 

1050
01:03:55,760 --> 01:04:00,160
But still you don't want to just
give like unlimited access of 

1051
01:04:00,160 --> 01:04:03,480
your of your assets to some to 
the Nosys pay network there but 

1052
01:04:03,480 --> 01:04:06,200
they actually want to limit that
and that's that requires smart 

1053
01:04:06,200 --> 01:04:10,720
accounts so that every Nosys 
card actually is associated with

1054
01:04:10,720 --> 01:04:14,960
a safe smart account which has 
like a yeah a daily limit 

1055
01:04:14,960 --> 01:04:18,760
associated with that where any 
transactions that are below this

1056
01:04:18,760 --> 01:04:23,000
daily limit can be put into the 
the Noses pay network and and be

1057
01:04:23,000 --> 01:04:24,960
used to to pay at the merchant 
store. 

1058
01:04:25,400 --> 01:04:31,160
But it's it's in a way that it's
still the vast majority of your 

1059
01:04:31,160 --> 01:04:35,840
assets are self custodial and 
it's just yeah this daily limit 

1060
01:04:35,840 --> 01:04:39,360
that you get then give. 
And yeah the the long term 

1061
01:04:39,360 --> 01:04:43,600
vision is really that Nosys is 
focusing on on building out like

1062
01:04:43,600 --> 01:04:47,120
this decentralized payment 
network that then leverages 

1063
01:04:47,120 --> 01:04:51,800
things like safe leverages 
things like cow swap for for 

1064
01:04:52,000 --> 01:04:55,400
exchange of assets and and other
parts of the Nos Eco system. 

1065
01:04:55,640 --> 01:04:58,680
That becomes really this 
combination of of the different 

1066
01:04:58,880 --> 01:05:01,840
infrastructure that was built 
over the last years and builds 

1067
01:05:01,840 --> 01:05:05,440
really something that can then 
bring as as much as possible of 

1068
01:05:05,440 --> 01:05:08,200
of today's payment volume on 
chain. 

1069
01:05:09,480 --> 01:05:11,280
Great. 
Well, Lucas, thanks so much for 

1070
01:05:11,280 --> 01:05:13,920
coming on the podcast today. 
It's been great learning about 

1071
01:05:13,920 --> 01:05:19,760
SAFE, understanding the the 
technical implementation of SAFE

1072
01:05:19,760 --> 01:05:23,640
and also how it fits into the 
broader Nosys ecosystem. 

1073
01:05:24,080 --> 01:05:26,560
So thanks so much for coming on 
and look forward to having you 

1074
01:05:26,560 --> 01:05:29,240
back on the future. 
Yeah, it was a pleasure. 

1075
01:05:31,440 --> 01:05:33,200
Thank you for joining us on this
week's episode. 

1076
01:05:33,560 --> 01:05:35,120
We release new episodes every 
week. 

1077
01:05:35,800 --> 01:05:38,560
You can find and subscribe to 
the show on iTunes, Spotify, 

1078
01:05:38,600 --> 01:05:41,600
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1079
01:05:42,040 --> 01:05:44,760
And if you have a Google Home or
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1080
01:05:44,760 --> 01:05:47,840
To listen to the latest episode 
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1081
01:05:47,840 --> 01:05:50,960
epicenter.tv/subscribe for a 
full list of places where you 

1082
01:05:50,960 --> 01:05:53,200
can watch and listen. 
And while you're there, be sure 

1083
01:05:53,200 --> 01:05:55,680
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1084
01:05:55,680 --> 01:05:58,760
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1085
01:05:59,080 --> 01:06:01,480
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1086
01:06:01,480 --> 01:06:03,360
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1087
01:06:03,360 --> 01:06:05,000
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1088
01:06:05,240 --> 01:06:06,360
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1089
01:06:07,160 --> 01:06:09,720
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