$2 million bug bounty, IMX token split and more - The Daily Gwei Refuel #236 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the deadly grey refuel where recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today's the 22nd of october 2021 all right everyone let's get into it so funny little uh kind of meme here about something called world claim which i'm sure a lot of you have kind of like heard about over the last few days a new kind of like cryptocurrency that's aiming to i guess like uh salt just maybe maybe using the term soul wealth inequality isn't the right one but they're aiming to kind of like rectify wealth inequality at least fix it or make it better by issuing this new cryptocurrency called world coin and distributing it to the world's population uh and the way they're going to be doing kind of like civil resistance here in terms of being able to kind of like

weed out any bots or anyone trying to game the system is that they've got this thing called the orb that scans people's kind of like eyeballs right and puts like a unique hash of uh their iris on on chain and that's kind of like your proof of humanity or proof of identity sort of thing now there was a bit of discussion about this in the discord channel today i'm not really a fan of this project 20 i think around 20 of the of the kind of like coin supply is going to insiders and team so already it just seems very kind of like once uh very uh uh insider kind of like team heavy for something that he's trying to i guess combat wealth inequality um and also kind of like the the eyeball scanning is kind of dystopian when you think about it right putting that on chain i know

it's just the hash of it but again like that none of this is open source or anything like that so we don't know what it kind of is yet but what i found really interesting about this project is the fact that it's actually building as an optimistic role up on top of ethereum so it's not it's kind of like our own chain or anything like that and as i said to you guys i don't expect people to start creating their own layer ones uh from from here on out because it just makes much more sense to create your own layer too and there's a bit more details about this here um remquo remco tweeted out about how hubble which is i guess like what they're calling their um uh uh their l2 their optimistic roll-up is much it seems to be considerably cheaper than all the existing kind of i guess like uh

roll-up solutions out there both zk and optimistic roll up so you can see here remco says um numbers from back when l1 erc 20 token transfers were 10 hubble l1 verification costs can probably be gas golf down quite a bit so you can see here that ethereum you know when if it cost you ten dollars to chance for a token on ethereum on albertum it's a dollar ninety on optimism it's uh ninety seven cents zk sync 31 cents loopering 20 cents homes 25 cents and hubble claims to do it with six cents now i'm not aware of hubble being live on mainnet yet so until i and it's not open source either so until i see kind of like a production style system here i'm going to take these numbers with a grain of salt but still i mean if these are actually true

numbers then that's amazing like as i said like i'm not a fan of the world coin project itself but the tech that they produce can still be really really awesome like if they can actually get the cost of an optimistic rollup down this much uh it's quite incredible and you know tuba followed up here and asked you know why is hubble so much cheaper than optimism and arbitrary and rimco goes on to say uh erc20 call data plus evm signature has a lot of data to store on l1 hubble uses bls signature aggregation plus compressed transactions to save on call data uh polyno is of course in here and they they go on to say you know this is where i expect transfers for most optimized roll-ups to land my question though is is your hubble fork already fully optimized with a six-cent fees or is

this a projection once the work is done i get why using your own wallet will help with bls signature aggregation so he didn't answer this uh yet uh remco didn't answer this yet but still i mean uh you know if this is possible it's it's amazing like this is actually going to bring even further improvements to i guess the roll-up world here not just optimistic but also zk and i think this is already on the roadmap for a lot of these roll-ups anyway um because as i've said before the iterations that we have today of both the optimistic and the zk stuff is really just like the first version of of what's possible there it is definitely not the final state uh you know i know it's still expensive today uh but it'll get cheaper over time especially as the costs become amortized across uh across

different transactions and and the cost gets shared on these roll-ups as well so yeah it's cool to see this uh i mean it's just cool to see someone else i guess like building a roll-up on ethereum and basically validating my thesis around the fact that um i you know i've said multiple times now in the past that i just do not see people spinning up l1 anymore it's just it doesn't make any sense compared to spinning up your own l2 and this is probably the first of many um but yeah i guess like on that note i still i mean i i wouldn't say like i know i said i'm not a fan of the world coin project i'm just not a fan of the way they're doing a lot of different things it really kind of just gives me a bad vibe right now

but who knows it may turn into something better as time goes on like it's very early days for the project we'll see how it all pans out but uh right now the only thing i'm really a fan of is their the fact that they're using an optimistic role up on top of ethereum but even then like it's not open source we don't know what it looks like just yet we don't know kind of what trade-offs they've made or any track you know if they've made any trade-offs uh we definitely want to see that kind of open source everyone can kind of pull it apart and look at it but uh still good to see uh that it's building on ethereum there uh if you do want to kind of guess i guess learn more about world coin um you know you can just go to their twitter page here world coin

i'm sure they've got a website worldcoin.org and see what they're all about um but i mean as i said my opinion he's not a fan i'm just gonna wait and see uh wait and kind of like see how this pans out what other people kind of think of it i think you know the funny thing is it seems like twitter's a bit a bit split on it like there's i mean i don't even know if it's half and half but there's people like that that are big fans of it they think it's a great project they think that um it can actually work decide to solve kind of like the super resistant problem and there's other ones out there who think it's really dystopian it doesn't really make much sense why do we need another cryptocurrency for this sort of stuff and i get it um but you know for

me crypto was never really about solving wealth inequality um maybe some people thought it was i don't think it can like i i really think that wealth inequality is much more complex than anything that we can do within crypto uh it's just such a broad problem it doesn't it doesn't it doesn't just kind of like pertain to something like a distribution of a coin for example it pertains to so many real-life related things that are completely outside of the scope of what crypto can do for me crypto has always been about just making a fairer system you know basically collapsing the the costs of interacting with that system making it so that everyone in the world can interact with their own equal footing it was never about solving wealth inequality because i mean just to give you a prime example here of something where the rich you know in a capitalist

system the rich get richer because the more money you have the more money you can make right or the more money you can risk without having you know on on something and even if you lose that it's not a big loss to you for example if you have like 10 grand and you want to risk like a thousand dollars of it like just 10 percent of it on an investment um and then you're okay you know you're okay with losing that you've just lost 10 of your your kind of like money but you're okay because it was only um 10 it's all good but that's still a thousand dollars now imagine if you're someone who only has a hundred dollars of disposable income uh and you you know you that's part of your savings and you're like okay well now i've only got ten dollars

to invest sort of thing so obviously the person with the one thousand dollars can compound their wealth if they make it two times they'll make another thousand dollars if you make a two if that person with ten dollars makes it two times they'll make 20 bucks and then you have to go into the complexities of like investing itself and and kind of like uh the different jobs people work and and where they're born like a geographic location the opportunities there it's just such a much broader problem than crypto and that's another problem i have with world coin is that i don't think you can just like fairly distribute a token um or at least like come up with the most fair way to distribute a token to everyone as kind of like some universal basic income thing and then expect everything to be okay maybe maybe

they haven't said that i don't think they've actually said that where they've basically gone and said well we expect everything to be fine and we're gonna solve kind of like all the wealth inequality problems in the world i don't think they've said that but at the same time i just you know if this is some sort of ubi thing then fair enough like you're pretty much just giving away money to people subsidized by others because the only reason why the token would be worth anything is because people are willing to pay for it now i'm not sure why they would be willing to do that i haven't you know i'm not sure if that's even public yet or or maybe i just haven't looked too deeply into it but at the same time i guess like it would be a wealth distribution more than a uh i i guess

like um a new wealth creation because essentially the wealth would be coming from uh people who are buying or bidding up this world world coin and bidding it up to you know say it reaches like a billion dollar market cap or whatever um that would be coming from other people wanting to buy it now why would they want to buy it maybe speculation maybe some other kind of stuff going on there maybe it's it you know it's something that people want to use or whatever i don't i don't know why they would want to use it but maybe it is um and it just goes yeah it gets pretty complicated from there as well and it's like okay well where's the value coming from it doesn't just get created out of thin air it's actually coming from somewhere okay like is this wealth uh this is kind of

like some wealth redistribution happening here but how concentrated does it get because a lot of the cryptos out there right now have a really really horrible gini coefficient even even bitcoin and ethereum compared to nations uh um you know that exist in in the kind of like real world and fiat currencies and stuff like that but at the same time like it's hard to get an accurate picture because of exchange balances and and people just putting uh a i mean especially exchange balances but also things like people putting their funds into like defy into that contract into staking it's like all pulled together and stuff like that so it's hard to get a a picture there but still the the unique coefficients of um the gene coefficient for those who don't know is a way of measuring kind of like the distribution of a of a currency

essentially or of an asset i guess like um uh if you if you want to kind of like use that terminology there i'm i'm just not sure so it's a bigger problem i think then crypto can solve like wealth inequality definitely uh not something that we're going to uh to be able to solve but i think i like seeing the ubi experiments play out and seeing where they are where they all land you may have a different opinion um you can jump in the discord channel we were discussing it in there earlier today but i'm happy to keep discussing it it's definitely interesting thing to think about all right so immune phy uh made a huge announcement today that they have and this is this is pretty pertinent and great timing actually but um they announced that uh gerrard here found a bug in polygons plasma bridge that could

have resulted in an 850 million dollar loss if exploited so the bounty that was paid out is the largest ever at two million dollars so this person made two million dollars for discovering this bug so any uh people out there that are budding kind of i guess like code reviewers or security auditors or whatever it's a very lucrative job right you can find these bugs and get like a nice payout and this is all totally legal like some people might say oh you know well they could have just like exploited the bug as a black hat and got an 850 million dollars instead well i mean there's a very small chance you'd be able to actually get away with that and you wouldn't even be able to cash it out it'd be very very hard to so taking the two million dollars just from a kind of

like incentive standpoint is is the better kind of play here but also from like an ethical standpoint it's obviously a lot better as well but the reason why i think this is timely and pertinent to discussions that i've been having on the refuel lately with you guys is around bridges and i've warned you guys how these bridges they hold a lot of value in them and they're not foolproof they're not going to be bug-free there are going to be bugs they're going to be centralized points of fire there is going to be exploits that happen and you really really need to understand the risk that you're taking when you put your funds into a bridge um because as i've said before the the bridge isn't literally a bridge it's basically just gives you an iou uh and your real assets still live on ethereum like when you bridge over to

a lot of these chains from ethereum your actual assets are only secured by that contract on ethereum if those assets get exploited on ethereum then uh your assets on the uh the chain that you bridge to pretty much uh are worthless unless there's some kind of like centralization in there that allows them to like reissue the the um the tokens such as usdc or usdt or something like that but say it's your eth i mean you ain't getting that eighth back if they're lost on uh for whatever reason on the um the chain that you bridge to then you have no way of unlocking your tokens on on um ethereum unless that smart contract sorry unless the bridge contract on ethereum has a centralized control and that centralized control is used to i guess unlock the funds but you know just generally you just really

don't have any way to to kind of like bring up to bring it back there so yeah bridges a lot a lot of bridges out there these days uh i don't expect everyone to know i guess like every bridge out there and the trade-offs that they take and everything like that but i do want to just like make sure that people are aware that these risks are out there and to and to essentially be aware uh be wary of them and uh you know don't be surprised if this if you know this keeps happening i i i definitely think that the largest hack that we'll ever see will have will be will have to do with something with a bridge i think it already did with the i think it was the poly network it had nothing to do with polygon but it was called poly network

and that was like a bridging kind of thing there i think that you know that was what 800 million or something i think the funds were returned i think was 600 million actually um and that was actually exploited but i think that we're gonna see multi-billion dollar exploits happen in the future and we may get to a point where they don't actually get returned right um and these funds just are gone forever for whatever reason uh and it's just not a good time for people kind of bridging across now you know you may be wondering what about layer twos you know what about the bridges there as i've said before the layer twos are also in the same kind of bucket because um there's two types of bridges into layer twos i guess like probably there's more than two ties because there's like subcategories but

in the way i think about it is that there's the official bridge right where you go from like layer one ethereum to the layer two through the arbitrary bridge or the optimism bridge and then there is the other bridges like um connext or hot protocol and things like that that are essentially cross chain exchanges um they're not actually like the bridge contract that you would normally use now um they're a lot riskier i would say than using the official kind of like bridges and at the same time um uh there's there's other risks involved as well with uh kind of like how those assets are backed up and how those assets are you know how those bridges are are kind of like designed too so the l2s i mean i always use the official bridge but you know for depositing but i guess for withdrawing

you don't want to wait seven days so you use one of these other bridges but they definitely hold more risk and you're definitely taking on more risk by doing that uh but in the normal case you're probably not going to worry about if we're not going to notice anything but there will come a day where there's like a reckoning here and i just want you guys to be aware of that so you're not caught off guard by it uh but i think a lot of people will be unfortunately i just think it's inevitable because there's so much value at stake here and i think a lot of um teams are playing uh hard and loose with with bridging protocols because they're just trying to meet the demand because there's a lot of demand for this right now and they may be thinking of security as

secondary uh that's not to say that that's what polygon did here but um you know there are gonna be bugs no matter what so just just good to keep in mind there i think all right so speaking of polygon uh iman here announced that they have launched a polygon ecosystem index called pekko or pico a single token that captures the best native projects on on polygon so it's available now at amman.com hopefully i'm saying that right um and sushi swap so what the i guess index consists of uh if i go down here uh the index composition you can see here it's 50 matic 26.1 percent quick and then a bunch of others in there such as are they gotcha ghosts adaments uh

diffein d finn yeah and and qi dao so if you want to go along i guess the polygon native ecosystem this is probably something of interest to you um you know i'm pretty sure they uh they kind of yeah they have their methodology methodology here as well like what uh what kind of the requirements are and kind of like a simple how to buy as well i mean you know you can just literally go and buy it on sushi swap on on polygon i believe i think they've got a breakdown here and you can like mint it as well and things like that as well and they've got links to the pairs so yeah i mean this is cool to see that there's a kind of like index product that allows you to capture uh some of the stuff going on in the polygon ecosystem um and

you know this is funny because like there's the index cop which i talk about a lot that does index products but this just seems to be it's standalone index products so i guess a little bit of competition there maybe for the index co-op they're not on polygon though they're just on ethereum so maybe this will uh incentivize them to move over but um yeah cool to see this from from aman here so immutable has announced that they are doing a supply split of the imx token uh before it launches so they've done 100 times increase in the total supply from 20 million to 2 billion and if you had uh one token for example you'll now receive 100 instead now this is just a shift in the token supply amount this is not a uh this does not mean that you

automatically have a hundred times more worth to your token um it just means that uh the the token supply has has been readjusted now you know i i just i disclose you i'm an investor and immutable but i think i can be honest here in saying that whenever i see a team do this or ever i see a project do this i think it's because uh i mean they did say that they want to make the network more accessible here to bring the masses to the metaverse i think by increasing the tokens supply to something you know really high like two billion it does two things one it makes it so that your token has a really low unit price so you know we all know that the lower unit price tokens within crypto uh do better you know market uh mostly do better price wise

because uh newer newer investors to the ecosystem don't understand market cap and things like that they just see like a cheap token i'm like oh my god i can buy like so many of these tokens and you know if they go to this price then they're worth this much blah blah blah so that's one aspect to it and that's obviously a big aspect um but secondly i actually do think that it's better to have it like uh have it so that people can feel like they they have a lot more like a lot of token so they don't have to kind of have like 0.001 of a token even though it's worth like 10 000 for example um they have to have like 0.001 of it something like bitcoin today um i know bitcoin has like sats and they're trying to denominate in that um but i

think doing it from doing it on the core protocol side or i guess like the core uh token side from the get go is probably the best way of doing it so now instead of users being like oh you know if if the imx price at a 20 million supply say say the imx market cap was 1 billion and you had a 20 million supply while the price would be what five uh if i'm doing my math correctly it would be fifty dollars right uh for one token now times up by a hundred the same market cap will be fifty cents uh instead of kind of like uh instead of uh 50 dollars there with with this new token supply so you can see how people will be able to buy a hundred times more uh or feel like they have a hundred times more tokens

than what they really have so so yeah just giving a heads up to people who are able to participate in the imx sale or have an airdrop coming um don't be surprised when you have a lot more tokens but also keep in mind that those tokens it's not like you've got extra money it's just that you got like um you got redenominated essentially all right so lucas shaw here from uh nocess put out a tweet saying that the gnosis safe is the smurfs first first smart contract used to secure 100 billion dollars in digital assets so for those of you who don't know a nurse's safe is a multi-seek wallet that pretty much everyone uses i have a bunch of different nurses safe wallets that i use on there it is uh probably the safest

multi-sig uh on ethereum um and you know that's why everyone uses it obviously it's a winner takes most market when it comes to these things because if you're using a multi-sig uh smart contract you want it to be safe you want it to be bulletproof you want it to be uh have been in the market for quite a while you wanted to have all those nice features so a hundred billion dollars is huge i mean this is ethan and i see 20 tokens but that's absolutely massive and someone put a tweet out saying you know what what if um uh gnosis starts taking like a fee on this because it's apparently free to be on there but they could do like a really really small fee like 10 bips or something like that like a 0.1 percent annual fee on on on this and you

know 100 billion dollars you do 0.1 percent of 100 billion dollars if i'm doing my math correctly that's 100 million a year right um so 100 million dollars a year for just storing assets and this is going to keep growing over time but 100 million dollars a year that's for literally just having like a contract out there that essentially um holds these assets and keeps everyone's assets safe and you know this could grow to a trillion dollars in assets you know rather soon that would be a billion dollars of um of revenue a year for gnosis uh so yeah i don't know if they will do that i feel like putting a fee on it may get people kind of like withdrawing their assets out of there i personally wouldn't like a think about a 0.1 percent fee is basically nothing uh at the end of the day like a yearly fee

i just really don't think it's it's a big deal and i think most people would pay for it for the fact that they actually get to secure their assets in this battle kind of like hard and smart contract so love to see how pan's out there i think you know gnosis has a lot of different products they have notices safe they have the gnosis kind of like um prediction marker platform they have cow swap uh and you know they have a bunch of different things going on i think counsel might be spinning out of gnosis though but they've been like a builder within the ethereum ecosystem for quite a while now so it's great to see them having success with with things like gnosis safe which has incredible product market fit i mean multisig wallets are like the lifeblood of a lot of this industry not just for protocols but also

for groups of people and individuals who want to have a multi-sig like even if it's just a three or five or something like that uh it's definitely needed so yeah great to see them having success here so danny ryan put out a tweet saying that that looks like 62 percent of nodes have upgraded for altair um and this does not reflect one to one on stake weight that is upgraded will will not know that until the upgrade itself uh there's still six days to go so if you haven't updated yet be sure to do so uh lteb just a quick reminder is the eth2 network upgrade that's coming on october 27th if you're a solo staker definitely make sure to upgrade your nodes so that you're not left on a minority chain and you don't kind of like

suffer any kind of inactivity penalties on your stake or anything like that but yeah i mean 62 percent so far is is really great uh you know it's funny because usually people wait till like the last minute to do it uh and then some people get left behind like it's usually and we've seen this happen on eth1 a lot of times before and people quickly update as they realize that they're on the wrong chain uh and i think people will actually be either quicker to update or will get like a much higher percentage just before the upgrade goes live with eth2 because you stand to lose your stake if you don't update we thought and if you're in full node if you don't update then if you're a miner and you're mining on the wrong chain well you've just got some opportunity cost there you may have

paid a little bit in electricity to mine the wrong chain but it's not like a huge deal with uh with eth2 i mean you you are in you know and uh leaking out from an activity but i'm not sure if i'm not sure if this is true but i feel like there is a risk of getting slashed as well um but i have to double check on that but uh yeah i mean it's just good to upgrade anyway so definitely go upgrade if you are running nodes here so optimism have announced that they're delaying their main net launch of the evm equivalence upgrade by two weeks to november 11th 10 am pst so they say here they're on track to deploy their main net staging environments tomorrow uh after discussing with partners we're extending its trial period to ensure a smooth transition in the uh and yeah and

just more details about that here so essentially what's happening is that uh it is going live on main net uh staging tomorrow uh uh which is i guess like uh sorry tomorrow yeah tomorrow um but like the the main nets uh for optimism for ovm 2.0 is being delayed to november 11th here look as i said before i'm all for things getting delayed if it's for like i guess um security reasons and network health reasons and making sure everything goes smoothly um but at the same time the first thing i thought even though i love optimism the first thing i thought here was like ugh another optimism delay right because unfortunately optimism has been like the have been suffering from this for quite a while i mean there was the infamous delay in march where they

basically said that they would be going live in march and then they kind of delayed themselves and went live in in kind of like july with with uni swap and have been adding protocols over time and they had this massive upgrade going live for you know uh it was supposed to go live on october 28th now it's been delayed by two weeks of november 11th but i'm sure they have a good reason to do this and obviously i'm still kind of like bullish on optimism and all that they're building here but uh you know i i i that was the first kind of like thing i i thought unfortunately i still love you guys right still love everything you're doing but um unfortunately that was that was what came to mind but yeah uh i guess like once this is done again i'm expecting the white list to be removed on

optimism's network i um i really want to see them catch up to to arbitram because as much as i love arbitram and i'm an investor in arbitram i am a firm believer in competition being the best kind of like i uh best best thing for this ecosystem especially amongst the l2s we can't have just one l2 dominating we need everyone to be competing with each other to keep uh i guess like improving over time because the l2s are not only competing with each other for market share they're also competing with the other l1s and they actually play a huge role in in kind of like keeping everyone on ethereum and keeping ethereum's dominance uh kind of like in in play and i really i think that competition at the l2 space will just kind of keep that chugging along so

i'm wishing for the success of all these different l2s out there so so yeah i mean i'll keep you guys updated on optimism's kind of um regenesis thing here and there ovm 2.0 upgrade as well so obel network shared they uh shared uh sorry that announced today that uh uh the genesis community along with their guiding mission vision and values on their path to securing the decentralization of proof-of-stake ethereum so uh you can see here that uh their genesis i guess like community consists of uh advisors so the advisors that they have on board are a bunch of different people within the ethereum ecosystem you can see here they all work you know in ethereum in some capacity there's a few eth2 uh core uh developers in there and researchers and things like

that uh there's a few people from other kind of like places like jack here from scale network if i'm just i'm just scrolling over random names here people from like staking companies and staking service providers like chorus one and stuff like that um and then you know they go on to explain their mission which is to use and evolve the ssv shared circuit validator building block by creating a cryptoeconomic protocol and diverse community that can enable the primitive to become a sustainable public good increasing the security and resiliency of blockchain networks so you can see here i mentioned the other day that the current ie2 architecture lends itself to an active passive redundancy single operator which basically means that you can have one key online one validator offline and then you have like a validator with a um being offline as like your backup uh but

that has to be offline to be your backup or otherwise otherwise you suffer from things like um double signing whereas with oball and their a2 architecture you can have active active redundancy as a multi-operator so you can have validated clients in multiple places i'm talking talking to an oval node but you can have them all online at the same time so if something happens the other ones will kind of like keep going keep validating for you so you never miss uh kind of like attesting to a block you never miss proposing a block which is obviously huge especially for enterprises that want to get involved with staking and running run their own kind of like um set up as well so um yeah and then they go on about their vision they believe in a more robust and secure ethereum and kind of like how that how

the kind of like cluster works and and kind of like you can see here that they've got like um oval clusters with different nodes running so like client diversity something that i've been talking about a lot lately you can see on the left here they have a different um eth1 different a2 client running or consensus layer and um and should i say execution layer running and then in each kind of like cluster they have they have different ones uh running in different kind of like staking service providers running as well so this is really cool and opal kind of like sits in you know as as kind of like the bedrock there as kind of like the middleware there so if you want to learn more about them definitely check out this thread they've got like a great explanation here of everything that they're doing and i mean they have a

killer advisor public advisor kind of like set up here with these people um i mean they are on the forefront of staking both on ethereum and other networks out there so this is really really bullish for ebal i think and disclosure i'm an investor in obale but that's because i mean big fan of proof of stake big fan of ethereum it was just like it made a lot of sense for me um but i think yeah i think on that note i'm going to end it there for today so yeah thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give the video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all next week see everyone