20mil ETH staked, Zora chain launched and more - The Daily Gwei Refuel #609 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of The Daily Review World Cup latest news in ethereum ecosystem I'm your hosting and it's Asana it has the 22nd of June 2023 alright everyone let's get into it so I'm sure you guys have seen over the last few days and as I discussed yesterday all of these kind of Trad fire institutions getting more involved with crypto well yesterday we uh saw a Jerome power I'll actually make a few positive comments about crypto uh in one of his um I guess like uh hearings with the I think it was the house or something in in the US uh so you can see here uh Powell actually said that the FED sees stable coins as a form of money and he also said that crypto assets are a um an asset class that has

uh staying power so those are pretty big comments coming from uh drone power there of the fed he's one of the most uh I guess like powerful people in the US at this point um uh and obviously Jeanette Yellen at the treasury and Gary ganza at the SEC they're they're the other powerful people but it's interesting to see how quickly the tone has changed from I guess the SEC having this war path against crypto so now all these big financial institutions uh are kind of applying for Bitcoin ETFs like BlackRock for example and a bunch of other ones they're they're opening exchanges uh there's an exchange called edx I think it's like an OTC um trading desk there that's going to be trading uh a various different crypto assets uh between and

is backed by these uh these big Trad fire players so it does seem like the tide is turning here and I think that's obviously a narrative of that people have lashed onto on a trading around uh but I mean I don't really see a negative to this I think that there are a few conspiracy theories floating around right now where people are like oh you know uh the um Trad fire overlords uh got the SEC to go after coinbase and binance and then they can come in and swoop in and basically get market share or swoop in and and uh buy these competitors and stuff like that I don't know how much stock I put in it obviously the timing is is uh you know very coincidental here and the timing is is very funny generally but I think Occam's razor basically says that Trad

fire they've been dabbling in crypto for quite a while now I think that they're better better um time for them to get involved with crypto is definitely when the Market's quiet rather than when the Market's hot we're pretty much like you know we're we're already Bottoms in the the crypto Market already bottoms but now we're in this kind of crab phase where essentially a lot of evaluations have come down it's much easier to enter this Market than it traditionally has been and I think these Trad fire extrusions are laying those foundations you know as I discussed yesterday to to basically do that so just a I guess um promising thing to see that power has made these comments about stable coins and about crypto assets more generally and there's also an article uh From the Block here that the U.S House committee

is voting on crypto and stablecoin legislation in July so this was that bill that was put forward by a couple of uh I believe um House Representatives CR uh Republican House Representatives I believe yeah you can see here the house Financial Services committee chair Patrick McHenry uh you'll remember him from the grilling he gave Gary Gensler that um that you would have seen the video uh floating around on Twitter there uh this is pretty early being voted on in July I mean we're not very far from July I think it's going to be the first or second week of July here now from my understanding it gets voted on in the house and then it goes to the Senate and then if it gets pushed through the Senate it becomes uh law basically but there is this kind of thing where a lot of things pretty much

go to the Senate to die right there are very few things that actually pass the Senate but still I think what ends up happening is that you get these these kind of Wheels moving here you get these things moving you get these bills kind of drafted up you get this legislation drafted up it gets voted on it it enters kind of like the the conscious of these politicians it enters the Zeitgeist and then something eventually goes through and and obviously it tends a signal to the crypto market and to uh the crypto ecosystem generally that there are politicians that do want to set up you know the right regulations set up the right Frameworks so that crypto can play by the rules and crypto can keep flourishing in the US which is obviously a positive sign as well so I'll keep you guys updated on how this vote goes I'm

expecting it to probably pass that the house here uh to pass the house committee and go go to the Senate but yeah I mean I'm not that verse on us uh us politics um and and how this all works in the U.S system so if someone as someone else is please do enlighten me in the YouTube comments or Discord Channel but yeah it's never easy to get new legislation passed especially legislation that may be divisive obviously we know that the high-ranking Democrats don't like crypto I don't know if their tune has changed over the last couple weeks with all these tradify stuff going on because people say oh Larry Fink the CEO of BlackRock is a huge you know Democrat he's a big donor he's got sway there he does have suede like don't get me wrong he definitely has sway but at the same time uh there

are a lot of people who have sway with with um with politicians right and it just depends on who they basically want to uh want to essentially listen to or want to essentially uh kind of like do a favor for so it remains to be seen how that's all going to play out there um and you know it's going to be interesting to see who the SEC goes after next because obviously they've still got their lawsuits against coinbase and binance and it actually came out yesterday that that um the SEC I don't know if they lied but they misrepresented a lot of uh stuff that they accused binance of doing such as keep it such as co-mingling assets between binance Global and binance US Apparently that is totally false so yeah it remains to be seen if the SSC is actually going to um going to be going

after anyone else in crypto for the time being or any other big names I expect them to keep doing their enforcement actions against various scammers and grifters and promoters within within crypto but in terms of big names yeah I don't know maybe that gets put on pause maybe they uh they are being told by their overlords hey you need to slow down here uh you know this is this is not on but we'll see right I I'm not one that delves too too much into conspiracy theories I'm someone who likes to just look at the incentives and look at the relationships between different and people in entities and I don't think it's a conspiracy theory to to think that Larry Fink who is a prominent you know obviously uh Democrat and the CEO of BlackRock and has a lot of sway I don't think it's a conspiracy to think

that he is either talking to the politicians about this or just sending messages by filing for the Bitcoin ETF and stuff like that you know I don't think that's a conspiracy I think that's just following the I guess incentives and relationships between all the different players in the in that ecosystem there but anyway I'll keep you guys updated on all of this as more news comes out all right so Tim baiko shared a new I think this is a new website I hadn't seen it before uh call uh called vertical dot info with which redirects to a notion document here so basically this has all the relevant information on vertical trees which is the next major upgrade that is probably going to go into the network after dencoon so you can expect this probably I think in the first half of next year and it is a

pretty major upgrade to the network it's changing uh the the ethereum network over from Miracle trees to Vertical trees here or vertical tries whichever way you pronounce it there and this unlocks a bunch of uh of different things now this is very technical I'm still behind on my knowledge here and I'm definitely going to be using this resource uh to to learn more about it but essentially what I um think it allows us to do is it uh from a practical kind of user-facing point of view it allows us to raise the gas limits um to hire them where it is now in a safe and secure manner so I don't know how much we could raise the gas limit by vertical trees were put into the network but even you know even if we do are able to raise it by like a double or three or

four x I've explained before how that's obviously not enough that will get filled very quickly um and you know it's not something that we should be relying on but at the same time it's still something that helps right every little bit helps and it definitely helps things like l2s so yeah I'm all for that but there's more than that to it uh there's more than that uh so there's more benefits to the uh to getting vocal trees into the network than just a scalability I believe it's uh there's benefits in security and stability and and especially for things like like clients as well and I think that the vehicle tree roadmap goes hand in hand with like statelessness and state expiry and and stuff like that so yeah anyway you can learn all about this of yourself I just wanted to hire this website for you guys

at vertical.info because it's got a lot of really great information here to learn all about a vertical trees all right speaking of core Dev related things uh light clients here has shared a pull request or has opened a pull request to take the first step toward realizing the goal of separating the core EIP process from the ERC process so for those of you who don't know uh the IP and ERC process are different things in that eips are typically things that require uh you know a hard Fork to go into the network they're called ethereum Improvement proposals and uh if we want to see one go live on the network it requires a hard fork or a network upgrade and it basically changes the rules of the ethereum protocol and

upgrades it with various different things whereas an ERC it stands for ethereum request for comments is a standard so there are different ercs that exist today that are very popular such as erc20 which is the token standard that's uh that is used by basically the majority of tokens out there but uh and the number is kind of arbitrary it was literally just the 20th ERC so it could be erc50 and it could be the same standard so then number is kind of irrelevant just like the EIP numbers aren't that you know doesn't dictate what the what the upgrade is uh but yeah this kind of proposal here from light client is to separate out the processes between eips and ERC so you can go read his proposal on GitHub here along with a bunch of replies but I think it makes a

lot of sense to separate these these um these things out because the Erp process alone is already very I wouldn't call it convoluted but it is complex because the thing with with eips is that they have to go through the entire ethereum governance process to even uh get to even make uh have a chance of going into the network right and that governance process is very long it has a lot of different stakeholders involved with it um it is something that uh is is sometimes very frustrating to deal with especially for upgrades that people don't want to go in for for very good reasons and then other people wanted to go in to something like progpow for example for those of you who don't know what progpow was it was a change that was meant to be made uh and it was I

think it was like two or three years ago now probably longer than that it was a change that was proposed to basically make it so that um Asic miners uh couldn't uh couldn't uh basically uh uh exist on the ethereum network and and only GPU miners could but there was a lot of people against it and a lot of people for it so a lot of drama ensued But ultimately it didn't end up going into the network because it wasn't viewed as an upgrade that was worth it especially given the fact that we were changing the proof of stake uh and it didn't matter how long it was until we changed the proof of stake uh but uh but yeah I think that when you when you look at it from that perspective the IP process generally is not something that um that you think is uh that that is

very easy whereas the ERC process it has different I think um different challenges with it because if you want your ERC to be adopted you kind of have to go out there and get the network effect around it so if you want to create a new token stand that everyone uses you would have to convince all the existing tokens or at least all the popular ones to convert somehow convert their token over to your stand they write your newsstander let's call it erc50 for example um and and and you can come up with I mean there is already other token standards out there that are better than erc20 in terms of uh technical uh technical capabilities but the reason why they're not used is because erc20 has such a strong Network effect so to get a network effect around a new token standard will be very hard uh in saying

that token standards aren't the only thing that exists also the account abstraction standard standard which I believe is ERC 4337 that one uh is you know there's a lot of people getting um together to make that a stand that everyone uses and that everyone adopts so the network effect that happens around that but yeah those that's the kind of main issue I think you have with erc's is that it's all well and good to spec it out uh and basically uh uh uh kind of like uh um tell people about all the benefits uh along uh that come along with it but the problem is is getting people to actually use them to actually adopt it because it is an optional thing it's not like an EIP where essentially um you know eips that have been accepted into a network upgrade have already gone through

um the governance process they get accepted and then by default everyone using the ethereum network adopts it because a hard Fork is a non-uh backwards compatible change right so for example Erp 1559 there is no ethereum network that exists without 1559 unless it's a fork of ethereum so the real ethereum Network the actual ethereum Network um has yeah p15 59 uh in on it and you can't use ethereum without it if you are you're using a fork of ethereum that doesn't have it because obviously it's not the real ethereum there whereas you know you can use erc20 tokens but you don't have to you can use ERC 50 tokens for example instead of erc20s so there are those differences there but yeah anyway you can check out this pull requests from like clients about

separating all of this I'll link it in the YouTube description below all right so 20 million each stake so uh as of I guess today there are there's 20 million each staked on uh the beacon chain with 2.9 Million each queuing to stake so that 20 million each actually staked actually activated on the beacon chain here not in the queue and that's 38 billion dollars worth of eth but what's more impressive is the fact that there's 2.9 Million uh eighth or 5.5 billion dollars in queue to stake here and that queue uh even though it is it has gone down a little bit it is still over 90 000 and I was looking at it just before it's at 91 164 and the execute really is mostly

empty some days it'll Spike up to like 1 or 200 validators exiting or something like that those get cleared very quickly because um it doesn't take very long to clear out that many validators in the entry or execute but yeah the entry queue has just been up only here and it is quite amazing to see the fact that uh all these eth is just continually uh getting staked here and what I really love about it is the fact that these numbers are just crazy I mean if you uh add up the staked eat and the cutest steak eat you've got 44.5 billion dollars and uh sorry 43.5 billion dollars uh here uh and if you look at the total market cap of every other coin out there if we add up um uh the as I said if we add up

these things here then the market cap of the eighth state is larger than the market cap of every single other L1 out there uh including BNB now I've argued before that I don't think BNB should be considered just an L1 because obviously it's tied to binance a lot of its values tied there but every other L1 or smart contract L1 obviously excluding Bitcoin here the amount of each stake dollar value is bigger than all the other market caps and soon it will be bigger than all of them combined which is just a crazy stat and it really shows the difference between the value of ether's an asset and the value of all these other um uh l1's assets right which are obviously much uh much uh more uh much worth much less sorry I should say there but yeah just a cool start here we'll be

keeping an eye on it of course and we'll be reporting on it from time to time all right so a massive announcement out of Azora today so they have announced that they are creating their own app chain using the op stack so this of course is an L2 on ethereum uh using the op stack integrated directly into all existing Zora tools uh and is live today so it this isn't just an announcement that it's coming this is live right now on zora.co yeah so you can go to that website you can of course connect your wallet here I've got sasol.eath connected and you can bridge in assets and everything like that uh to it as well obviously because this is a separate Network to mainnet now uh which

is very cool to see so this just continues the trend of more and more uh app specific l2s being spun up and I've said before that I expect a lot of these things to be spun up over time uh whereas only a handful of generalized l2s will will actually exist in in a kind of successful economic activity capacity over time there's going to be just plenty of these app chains that basically all interact with each other now I think there was something about Zora using uh I don't know if they're using the op token in any uh in any capacity here I think they're maybe using their own sequences or something like that not exactly sure on the actual makeup of it but uh uh I think uh there might be some information on their website I haven't I haven't seen anything yet but uh uh but yeah I think

there was uh there was some uh information about them basically not uh being able to be compatible with the op super chain but maybe they will be in the future uh but for now they're basically a standalone L2 on top of ethereum and for those of you who don't know what Zora is it's basically an ecosystem for creators essentially so there's a bunch of creative tools on there whether it's nfts uh like uh like art nfts or Collectibles or things like music nfts stuff like that like all and and I guess like one of ones and and uh and Dows and things like that that's what Zora is basically a collective for all these communities to come together and create together so it's great to see them launch their own L2 here and I'll be keeping a close eye on this to see

how it evolves over time I'm very curious to see what kind of activity they see on this L2 all right speaking of optimism they have announced retroactive public goods funding around three so round three we'll have a 30 million op uh kind of uh uh Grant Pool to to pull from here which is a lot of money in US Dollars I'm going to quickly look up what it is because I don't know exactly what the price of op is right now uh I think the price of op is what what a dollar fifty or something uh went down a little bit so it's about a dollar 37 so if we do like a quick math here 30 million times 1.37 we get to 41 million yeah 41 million dollars that's a crazy amount of money that is

being distributed to public goods here or to basically not just public goods but it's anyone building within the ethereum and optimism ecosystems and for those of you who aren't aware of how this works basically there are a bunch of badge holders in the optimism ecosystem that uh I guess uh propose uh different people to or different entities different people different different projects to to distribute this op to it and then they all vote on it and then it gets distributed at the end of of that kind of um of that round there now last round was 20 million op token so it was a small a smaller round potentially but op I think was worth more I think op was worth two dollars so I think that uh in terms of dollar value this round is worth the same as as the last round but dollar value is kind of

hard to to say because of the fact that uh eight o'clock jokes so much obviously because the op token uh fluctuates in price a lot but uh but still this is a huge amount of money and I just do Wonder like what the distribution is going to look like because last distribution actually gave a lot of money to to a lot of different people even the ones that got the smallest grants uh got a lot of money and I'm not saying that's a bad thing or anything like that um but it's just crazy thinking about how far the public goods funding ecosystem has come or I guess like the the general funding ecosystem has come because I remember when uh you know the coin grants first started out the dollar values were absolutely tiny guys like I think the biggest Grand Scotland and these are the biggest grades not the

smallest grants I think they um they got maybe like 40 or 50k uh maybe that I can't remember the first few rounds of it but it was very very small uh whereas the biggest grants um in uh the round two of retro public goods funding here got over a million dollars I believe and of course the biggest ones are mostly projects and things like that with multiple people in them and so terms of individuals I think Zac xbt got I can't remember how much he got but I think he got a bunch uh you know a bunch for all his work that he was doing that he's been doing uh to expose scammers and and I can't remember any uh the other people that got um got op here but I'm very curious to see what this next distribution looks like because yeah again it's a lot of money

it's 40 million dollars worth at current prices so I'm wondering how many projects there will be I think the last time there was over 200 projects uh well 200 entities or in um project individuals that got uh the funding here so I'm curious to see what it looks like what the makeup looks like in round three but anyway you can check out all the details for yourself I'll link this in the YouTube description below all right off-chain Labs has uh today announced that they're releasing tooling that will make building your own arbitrim orbit chain easier than ever to start they're providing a quick start guide and tools to help you with building your orbit devnet chains you can start building at this docs uh website here I'll basically read it and see what's going on and for

those of you who don't know what orbit chains are they're basically l3s on top of the arbitrim uh one and Nova Networks you can see the little graphic here that shows what this looks like you have ethereum L1 at the bottom and then you have arbitrim at L2 arbitrine one and arbitrim Nova and then you have orbit chains that sit on top of that and this makes them obviously a very scalable this makes it so that they tap into the ethereum and arbitrim1 ecosystem CR and it's something different I think to what optimism has with OP stack because obviously with OP stack it is starting your own L2 that is more like starting your own I guess like Cosmos chain and you have uh the um the choice of uh feeding into the op super chain or not

but obviously as an L2 you you settle down to ethereum uh whereas something with the whereas something like the orbit chains they exist on top of arbitrim uh arbitrum one or arbitrum Nova so they're technically considered I guess like an L3 right so they settle down to an L2 which settles down to an L1 now where this stuff gets really crazy is it is building on top of the orbit chains and going to like L4 right and I do wonder how far we're going to take this thing and and what the kind of security trade-offs and scalability trade-offs look like uh depending on how far we take it but I'm sure that we're not just going to stop at L3 that's that's for sure right but anyway if you're a developer or just generally interested in learning more about this I'll link this in the YouTube

description below and you can go check this out for yourself all right so the finalists from the hack FS 8th Global event have been announced so there's nine finalists here and they're all detailed in this Twitter thread as I've said before eth Global hackathons a pro are probably the best place to uh I guess learn about new and upcoming projects that may end up being the next billion dollar unicorn within crypto but also new and upcoming categories and things that people are experimenting with because I think these hackathons what they do is that they look for the most Innovative and experimental and just out their ideas and uh and you know and things that incorporate New Primitives rather than

existing things uh so that we can obviously push Innovation forward and reward these builders for for doing so here so I'll link this uh tweet thread in the YouTube description below for you to check out I haven't had a chance to check it out myself yet so I can't tell you which projects are my favorite here but I'm sure they're all really great uh because there's usually uh there's usually a lot of projects uh that that um people do at these hackathons and then there's obviously a bunch of finalists that come out that come out of come out of it which you can check for yourself in the YouTube description below all right Aztec has detailed uh the next stop stage of their decentralization roadmap which is all about upgrade mechanism so they're inviting the community to help the Aztec team

determine determine the best way to coordinate upgrades and Achieve consensus on implementing Network changes so the details on how you can get involved are in this Twitter thread here uh which I'll link in the YouTube description below but it's great to see them talking about this so early uh you'll remember that Aztec is building a brand new um L2 uh that's basically privacy first so privacy by default um and obviously as at being an L2 they have to think about things like upgrade mechanisms and admin keys and decentralizing out sequences and stuff like that and they're getting the conversation started already around all of this before they're even live with the L2 to make sure that they can bring on a you know a community that actually cares about this stuff and can handle it without the core team needing to hold the hands of everyone here so if you're

interested in something like that I'll link as text thread in the YouTube description below and you can go check that out for yourself all right so I just wanted to give a quick shout out here to a uh article that uh was posted on Forbes that I helped with so you can see ponzypatty here shared this article uh and it's basically titled ethereum price prediction can crypto's bridesmaid stake its claim and it's written by Patrick mcgimsy and Joanna leg out here uh with um my input I I gave them uh basically a bunch of uh dot points with different very you know different things about ethereum from ethereum's Price history to what what how I think ethereum is going to perform in 2023 or the price of

eighth you know the ball case the bear case all that sorts of stuff there if you've listened to the refuel long enough none of this will be new to you but maybe it's still worth the read so that's why I'm I'm highlighting it here but the reason why I was excited to be a part of this is because it is uh published in in Forbes yeah which obviously is a non-crypto publication so there are going to be people reading this that don't um they don't normally read about crypto and uh and there's a lot of great information in here I basically when talking about the price I talked about ethereum's price history and how it like went up a lot went down a lot went up again again went down a lot again and then I gave the bull case you know I actually talked about things

like um potentially uh Mev burn going live Layer Two summer that sort of stuff right real world assets and the bear case I didn't really give a bear case because I can't really think of one um I really just said that maybe General macro stuff uh could be a potential bear case but you guys know I don't really care about the macro when it comes to crypto um I just threw that in there because maybe that's something that the Forbes readers um resonate with and then uh yeah I didn't really say much else about the bear case here but uh but yeah I ended up by saying you know I continue to believe that Heath is the best risk best risk adjusted investment across any asset class for the long term um specifically staked eth I guess as well there uh but yeah go give this a

read if you're interested in it I'll link it in the YouTube description below alright so last up here is uh I guess like a spoiler alert or a a bit of an alpha leak here from David Hoffman men that I'm going to be on the uh weekly roll up again of the bankless weekly roll up uh for the next well I'm going to be on the one that's uh happening today so I'm actually recording it soon uh and then I'm going to be on twice in July now the one that I'm doing today I'm actually doing with Ryan and not David I usually fill in for for Ryan but I'm actually filling in for David today because I think he's climbing a mountain or something so that's going to be an interesting dynamic because I've never done one with Ryan before but I love Ryan he's a great guy

um you know he built Bankers from scratch he actually started Bankers before David jumped on board I remember talking to him in the early days about it and being like dude you're killing it right this is this is awesome so yeah me and Ryan are really great friends so I'm just very much looking forward to recording with him uh but that'll be live uh you know at the normal time that the roll up goes live at the bankers weekly roll up goes live um so hopefully uh you guys can tune into that once it's live and I'm very much looking forward to it but yeah on that note that's going to be it for today's episode so thank everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it thumbs up subscribe to newsletter join the Disco Channel and

I'll catch you all tomorrow thanks everyone