Several authors have conjectured that Conways field of surreal numbers, equipped with the exponential function of Kruskal and Gonshor, can be described as a field of transseries and admits a compatible differential structure of Hardy-type. In this paper we give a complete positive solution to both problems. We also show that with this new differential structure, the surreal numbers are Liouville closed, namely the derivation is surjective.
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