The following is the full text of the speech:

The following is the full text of the speech:

Hello everyone! I'm Gavin Wood, founder of Polkadot and Parity. He is also the founder and president of the Web3 Foundation, and the co-founder and former CTO of Ethereum.

Sorry, I can't be there in person due to the restrictions caused by the novel coronavirus. Coming over will be difficult. But what I want to say is that I miss my visit to China last year very much, and I look forward to returning as soon as possible.

So then I think it's important to state what we, the Web3 Foundation, and Parity Technologies are doing. It is mainly the development work of Polkadot (referring to the overall development), and some other projects that are being followed up. Frankly, we believe in a free and decentralized internet, which we believe is very important to the world. We also believe that the barriers to entry and innovation are very low or nonexistent. From the perspective of the Internet, this free and decentralized Internet allows users to control their own data and identity information, which is very important. In a sense, they took the initiative, which has always been our mission. And, it has been my mission since Ethereum started in 2013.

I would say that Polkadot is the next generation of blockchain technology that brings many new features and possibilities that have not been fully implemented in any blockchain before. Just as Ethereum brought considerable progress compared to Bitcoin back then. Ethereum has a shorter block time, adopts a POW proof-of-work mechanism that can resist hardware optimization, and of course introduces a more complex scripting language. In the early days, it was called Etherscript, of course, it was renamed later. I renamed it EVM, the Ethereum Virtual Machine, which facilitates the development and deployment of all kinds of more interesting and complex smart contracts on Ethereum.

There are some other important changes to Ethereum, and Polkadot is the next step in the evolution. In terms of its underlying technology, Polkadot brings a higher level of abstraction and generalization, and it brings real innovation. So in the future, how upgradeability and governance of the chain evolves over time, I want to discuss later in this talk. I think this is a very significant improvement. In addition, Polkadot has also brought a new consensus mechanism, the NPOS nomination proof-of-stake mechanism, which is one of the changes we made before.

So first, I want to talk about Substrate, because Substrate is both under Polkadot and above Polkadot, which is a very interesting sandwich system. So what is Substrate? This is a modular blockchain framework, so it is a blockchain programming framework that includes various tools, various supporting infrastructure (tutorials, videos, workshops, documentation, etc.), specifically for building blockchains design. These blockchains, these are blockchains that may actually have nothing to do with Polkadot. Substrate is the first framework for building blockchains that can be completely self-contained, just like the Polkadot relay chain, they can exist independently and complete specific tasks.

The great thing about Substrate then is that it's modular, so you can do a lot of other things by basically creating new modules and plugging them into very complex environments. Without modularity these things would be very difficult. In this way, these different functions can be combined and composed very efficiently. It's important for Substrate to be written in Rust and to write new things in a way that ensures it's fast, safe, reliable, and relatively easy and painless. Because not every blockchain is right for every utility, we are often stuck between having to make design decisions with blockchains.

Typically, like Ethereum, we design a general-purpose blockchain but that is costly and inefficient compared to having a generic, domain-specific blockchain that can serve other identical purposes. Essentially, there is a lot of cost to having a general purpose blockchain, even though it does make many different things possible, now, the benefit of having a general purpose blockchain is that you can compose a solution from many different pieces, there Smaller solution composition. You can combine different smart contracts with various communities and create a comprehensive solution from them. But as I said, it's very expensive in terms of generality, and that's just technical design, and there's a tradeoff between generality and optimality.

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So who is using Substrate?

There are already many developer teams using Substrate. Our funding team told me that the number has reached three digits, and a lot of projects are developed based on Substrate, covering a variety of uses, including enterprise chains, as well as free home programmers, dedicated to creating the next Facebook.

Just a quick chat about Kusama. Kusama is very similar to Polkadot on a technical basis, they share 95% of the code. But Kusama has something different where there are some extra modules or they are configured differently. But largely, it is the same technology as Polkadot. Now that Polkadot is launched, Kusama is not gone, and never will be. Kusama will always serve as a long-term network, fighting side by side with Polkadot, and taking the lead in experimenting with some new ideas and conducting various technical tests. We hope that the various projects and products that eventually move to Polkadot will at least better have real value that people use to fill real-life needs.

Kusama it integrates new technology that may still be at risk until it is 100% ready for production and then it may not be reviewed. This means that Kusama will grow wildly. This will be an advanced cutting edge network with all the latest and greatest technology, we cannot guarantee that it will not fail, we can only show our dedication to make sure it is done and we will do our best to build on top of it to perfection.

I hope I described Substrate and Kusama clearly. These are the tools or building blocks of Polkadot, Substrate is the framework for building Polkadot, and Kusama is our means, or one of the means to ensure that the systems we deploy to Polkadot are safe, reliable, secure, and robust.

So we launched Polkadot in May 2020. In fact, it is unique so far, and before it came out, there was no one of its kind, not just in terms of deployment, but in all ideas and presentations for the first time.

Polkadot is a heterogeneous multi-chain. What does that mean? It means that it is a shard network, a network composed of multiple blockchains, and all blockchains are in the Polkadot system, sharing the validator set, this is a shard network, which is what I think expressive. But at the same time it is a heterogeneous shard network. What does this mean?

This means that each shard itself is highly customizable. So they will be more efficient at performing certain tasks, which is essentially a more complex design than the standard isomorphic sharding networks that some other blockchains are developing. In principle, Polkadot could also be homogeneous, all we need to do is make these shards all of the same type, but we choose to make it heterogeneous to facilitate all kinds of new domain-specific use cases that would otherwise be very complex. Difficult, or will again encounter the trade-off between generality and performance I mentioned earlier.

Yes, we all want it, and you can make it special-purpose by making sharding it. But at the same time, they all operate under the same system. Now, the first blockchain with real proxy, what does proxy mean?

Essentially, this is a combination of stakeholder, manageability and upgradability, the ability to change itself in any way in the future. This means that the blockchain can be said to be an economic actor in itself, in the sense that by leveraging its stakeholders and the algorithms that drive them, binding them together, making its own decisions about where it goes and what it will do what. So what are we delivering? In a nutshell, with Kusama and Polkadot, what we're looking at is building an innovation platform that allows us to innovate quickly, but also have many teams, many projects, and many utilities, all under one economy.

Now, we can look at this in a few ways, one of them is, we want to have more scalability and at the same time we want to do more work in the same economic framework with more transactions, which is basically It's what we call scalability. This comes in several other forms as well, for example we can describe scalability in terms of shared security, if you can't do everything under the same economic framework, then scaling is not good. Because otherwise, you're competing for the capital and validators to assume the security of a single network, which allows us to parallelize transactions, and the impact that the different shards of these different chains end up feeling is that transactions are faster, cheaper, This is what really gives us scalability.

Now Polkadot can handle about 100, which is our goal, and handle 100 parallel chains at the same time. These 100 parachains execute transactions simultaneously with each other, depending on the type of transaction. These parachains in our initial benchmarks could probably perform about a thousand transactions per second. Obviously, if they were simpler transactions, it might even exceed a thousand transactions per second. If they were more complex transactions, then it might be lower. But in terms of computation, about a thousand transactions per second, is the amount that Substrate can handle (especially Substrate which will run parachains). However, under the same security system of Polkadot, we have a hundred different parachains at the same time, we must multiply these 100 by a thousand, so that we can complete about 100,000 transactions per second, which we are sure of: Polkadot can provide this much transaction volume once the parachain scales.

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So what is a parachain?

Parachains are essentially shards owned by Polkadot, and they can be very specific to the domain they want to execute on. We can have a shard that is really good at payments, we can have a shard that is general and handles smart contracts, we can have a shard that is good at doing registration or permissions, we can have a shard that handles governance — depending on By analogy, the security of these parallel chains is now assembled by the validators of the Polkadot network relay chain. Parallel chains share security in the Polkadot network. They can also connect to external chains through bridges. Polkadot relies on creating and A very specialized approach to deploying parachains is relatively unique in enabling bridges without some of the functionality deployed in expensive general-purpose smart contract environments. The interaction of parallel chains can be processed in parallel. Parallel chains exist in their own special individual execution environment, but at the end of the block, the message is passed between the parallel chains through the security mechanism of the relay chain, so as to ensure the integrity of the parallel chains. The message must reach its destination.

Now, because of these transactions, because the parachains exist independently of each other, but execute in parallel, we can scale up the number of transactions. Because each parachain can execute transactions simultaneously with other parachains, and, since parachains are not universal because they are not isomorphic, but they are heterogeneous, they are able to process their own transactions very quickly, which is faster than both It is much faster to shard smart contracts. This means a parachain, which can process its various transactions very quickly, and then send messages as needed to other parachains, which can process their various transactions independently, faster, and faster.

The Polkadot ecosystem in China is growing rapidly, and it's amazing to see so many teams, really committing to using Substrate and really developing these solutions (from bridges and DeFi to tools, infrastructure, websites, etc.). We have been paying attention to the projects that we believe are really promoting the development of the entire ecosystem, just to name a few:

Acala，Advanca，Bifrost，ChainX

Crust, Darwinia, Hashquark, MathWallet, Phala, and Stafi

ChainX, Crust, Darwinia, Hashquark, MathWallet, Phala and Stafi.

It's been inspiring to see so much great engineering being done on the platform that we've been pouring our heart and soul into it over the past three years.

So, how do we intend to support the future development of (teams/projects) in China?

This month we launched a six-month Bootcamp in Shanghai to accelerate blockchain projects in the ecosystem, and the first batch of people who passed this bootcamp graduated this week. This achievement depends on multiple institutions and teams , Web3 Foundation, and of course Parity and Wanxiang Blockchain Labs. We are very grateful for their support and we have trained 15 different teams in various aspects that we think will lead them to success including Substrate architecture, product design, legal and accounting, and investor development. Now, we are looking forward to the first Web3 Forum in Shanghai this week, with the aim of really promoting a well-functioning and user-friendly Web3 platform, the next generation Internet. We can develop and deploy applications in an environment with low or zero barriers, so this is truly a blockchain without limits.