Markets are rising again. So are the noise levels. Discussing the past, present, and future with veterans is a great way to cut the clutter and focus on signals.
I got along with Ternoa CEO, Mickael Canu for a chat on Ethereum L2 scaling, security, and the future of on-chain proofs. We discussed the focal points for the current market phase, the challenges thereof, and how we can bolster security.
Mickael left us with wisdom nuggets from 20+ years of experience, especially for newcomers. Learn and enjoy.
Welcome Mickael. I’m excited for this chat. Tell us a bit about yourself to begin.
I’m excited too. Thanks for having me.
I’m a serial entrepreneur who built and scaled multiple businesses, across industry verticals, in the past 20+ years. From a web agency to bid data and SaaS in real-estate and, now, blockchain with Ternoa.
I’ve gained a lot of hands-on experience in the process. It helps a lot in my current mission to build a secure, scalable digital future for everyone.
Plus, as a tech enthusiast, I’m always looking for exciting new technologies. That’s how I got into the blockchain industry. I started using smart contracts around 2017, as the CTO at Syment, a startup offering digital condo management platforms.
Bitcoin having is around the corner, institutional adoption is rising, and the bull market is here. What’s mission-critical for this phase?
Two things: security and scalability.
If you look at global aggregate TVLs today (and this statement was true before this new bull season), you can only notice one thing: Bitcoin’s TVL accounts for about 50% of the space. Ethereum + ecosystem’s TVL accounts for another 20-25%.
Even if the industry is still young and we can expect new infrastructures and projects to rise, one must acknowledge the dominance of these two ecosystems today because TVL creates yield and opportunities. This brings us to the first challenge of scalability. Hence, the emergence of rollups, first on Ethereum and now on Bitcoin, to scale these huge, rich infrastructures.
Scaling infrastructures can create concerns, for instance, regarding decentralization. This is why security is crucial to this new phase. Hence, the fast emergence of ZK has seen extremely fast R&D progress over the last five years. FHE is coming next. Overall, we need to rethink our infrastructures to better address secure scaling going forward.
Right. What are the biggest security and scalability challenges now?
It’s funny, actually. What Vitalik called the Scalability Trilemma is still the determining challenge. We still haven’t perfectly balanced security, scalability, and decentralization.
We’ll get there soon. Ethereum’s PoS mechanism has significantly improved its security, interoperability, and decentralization. Using GHOST, LMD, and other modules like that, it sets new standards in on-chain security incentivization.
L2s, on the other hand, have successfully achieved higher transaction speeds and throughput for lower costs. While inheriting the underlying L1’s security. But they’re mostly Rollups, using either validity proofs or invalidity proofs.
Both have integrity issues and specific problems: long confirmation time, higher proof-generation costs, etc. Plus, zkEVMs are highly complex, meaning they’re highly prone to bugs and lapses.
Relying on single proofs is thus not enough. We need multi-proof methods to securely scale at desired levels. That’s what we’re optimizing for, with Ternoa’s dual-layer framework.
Tell us more about Ternoa. It’s a Layer-1 key management framework, right? With a Fortress.
We started as an L1 key management system helping developers build secure dApps to scale Web3. You’re right about that. But we’re now growing our reach and developing new use cases for our TEE-based tech stack.
The Fortress is a core element of our TEE-based security architecture. With functionalities like ‘Secret’ and ‘Capsule’, it’s an open-source means for developers to encrypt, safeguard, store, and transfer digital assets or sensitive data.
Now, as multi proofs become imperative, we’re doubling down on our dual-layer framework. It combines zkSNARKs and a unique Trusted Execution Environment (TEE) technology. We’re using an alternative proof system for this, aka SGX Proofs.
It lets you verify the proofs generated by our zkEVM. Think of it as double-checking the results before pushing them to the L1 for finality. I won’t go into the details. You can read our extensive Medium articles
We partnered with Intel and Avail to implement our ideas. Although SGX faced issues like side channel attack vulnerabilities, etc., in the past, working with leaders like Intel helps us mitigate such risks. Avail DA is the only solution with DA Sampling and Validity Proofs combined. The obvious choices for us.
Ternoa’s L1 Substrate core supports 50+ applications and 600,000+ on-chain events weekly. We have 80+ builders and partners, 300+ nodes, 2000+ nominators, and a 200K+ community on social media. So we’re making solid progress and heading in the right direction to make Ternoa a global leader in web3 security and scalability.
Absolutely! I’ll mirror Avail CEO, Anurag’s view and say you’re establishing benchmarks for future rollups. So, before we wrap, what’s your best advice for the ‘next wave’ of newcomers?
For businesses and entrepreneurs, I’d say be resilient and keep building. Invent solutions and deliver real value through your products. Find your market. Never give up.
And for users, try new things. Don’t let fear and uncertainty stop you. Embracing innovation is the only way forward. Even if the challenges are huge. But most importantly, DYOR! Peace.