Binance integrates Arbitrum, ETH is money and more - The Daily Gwei Refuel #256 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where i cap the latest news and ethereum ecosystem i'm your host anthony sosano today's the 19th of november 2021 all right everyone let's get into it so what a big big last 24 hours a lot to get through so i'm gonna get right into it i spoke to you guys about the constitution dao yesterday and how it was this doubt was pulling together a bunch of money in order to bid on one of 13 original copies of the us constitution that auction happened today via sotheby's and there was also another auction happening as well at uh just before that happened i think it was from prankster or something um and they were taking eighth as as bids they weren't just bidding in in fiat currency they were also using eth and then you can see here anti-pro

synthesis put put out a tweet saying aether's money with a with a screenshot of the live stream where you can see on the right hand side there's a bunch of fiat currencies and then it priced an eighth down the bottom so you know the funny thing is this brings me back to like all throughout i think it was late 2018 all throughout 2019 a lot of us hardcore 8th people back then were saying yes ethi's money like it's so obvious to us even back then that eth was money and we got so much pushback for this from everyone at the time it was quite annoying actually because there were endless debates about this and i was like what's there to debate if people use as money it's liquid um you know people are using it for multiple different things then why isn't eath money and you know

in in a piece that i wrote in january of 2019 about what made each valuable i actually included this i was like well ethi's being used for all these things of course it's money now it's pretty much undeniable right i mean ethie's not being used just within the ethereum economy as money it's being used outside of it as well sotheby's is not a small auction house they're very very large they handle obviously like very big auctions and they're pricing things in eighth which is just amazing so that's the first thing second thing unfortunately the constitution there did not win the constitution we don't know who won it but i think they hit their limit because not only did they have to pay i think it solved sold for 41 million and they had 45 million dollars but on top of that they also needed to pay kind of like the

fees and kind of um a bunch of other costs on top and it just got out of their kind of like price range there which is fair enough so unfortunately didn't win but i still stand by what i said yesterday about how this is a really really cool showcase of how ethereum can be used to formulate these dowels that allow for rapid financial and human kind of capital coordination which i think is amazing i mean that's one of ethereum's kind of like showcases uh sorry one of its main use cases and we can showcase that by doing these sorts of things now i think the cat is out of the bag for sure i think like pretty much you know i wouldn't be surprised to see all the top mainstream kind of like media websites today report on this and report on kind of like how

there was a bid from this this dow thing i don't know how they're going to going to write about it they're probably going to get it wrong because mainstream media does that um but i'm looking forward to seeing all those headlines because it really is kind of like a defining moment in in ethereum and not just in ethereum but in the dow space specifically because if you remember back you know dao's have got i don't know they got like a a mixed kind of like relationship like uh that we had the dao in 2016 mid-2016 that raised a lot of money at the time raised a lot of eth at the time um i think it was almost 20 millionth or something something crazy like that but obviously it was worth a lot less back then like 10 20 um but then you know that blew up

obviously uh it got exploited and we had the whole ethereum ethereum classic hard fork and blah blah rest is history from there then 2017 we had ico mania um which kind of like wasn't i mean there was some kind of like dow attempts but not really well there wasn't it wasn't really about the dows it was about the icos it was missing the dow portion to it and then for the last few years those have been quiet up until recently i think i've been told maybe the last 12 months ish uh they've been very quiet and even until like really recently we had like pleaser dao uh go live i guess like a few months ago bidding on nfts you know that was a big deal but that's much smaller than uh i guess like uh what this is the constitution dow and i think we're just going to create bigger

and bigger doubts like i wouldn't be surprised to see billion dollar dows that are just kind of formulated to to kind of do these sorts of things like i know that there are other dows out there that have like treasuries full of their own assets right uh obviously the e s down and you've got the unity swap down all that stuff but i'm talking about dow specifically formulated to just do something more less so than dowse that are kind of like part of a project like an existing project more in the vein of like what constitution dow tried to do so i am really excited to see what what the future holds here you know the one thing that i i kind of like dislike a bit about crypto is the lack of kind of experimentation a lot of the time because you may think that we're doing

so much experimentation so much innovation so much stuff's happening all the time but if you really boil it down a lot of it is not a zero to one innovation it is not kind of like taking us to the next level it's kind of tweaking what we already have and the reason why that happens is because it's very lucrative to tweak what we already have like look at all the evm side chains that are worth billions of dollars right um their native tokens and they've made their creators a lot of money then look at all the different kind of like uh forks of all the popular d5 projects look at the forks of om like olympus dow just you know all these money games all these ponzi's people love to play these things and the people creating them love to create them because it makes them money but they're

not innovations right they're not zero to one innovations those things require not only a kind of like special kind of founder but also require uh people to actually make the effort to do it and make the effort to get involved with it and unfortunately you know i think like over the la i mean in the short term there's just too much noise you're not going to see much of that but over the long term you'll see like all the ikea innovations as they've come along uh and you'll be able to kind of look back on them and see them all but in the short term it just feels like the space is ruled by ponzis because i mean a lot of it is right a lot of it's ruled by ponzi and scams and quick money-making schemes and to be honest i mean if there's new people coming into

this ecosystem they have no context about anything right at all they're just coming in they're like okay what am i going to do they see these things and and they kind of like get involved with them they don't know the differences between them they may not even know that it's a ponzi or that it's like a kind of money game as i've called them before so from that perspective i don't blame it but the people that have been here for a while they definitely should be doing better than what they are like a lot of them a lot of them are just like doing quick cash grabs um from what i've seen you know and i would i would like uh for there to be i guess much more innovation and much more kind of experimentation happening there and i mean at a larger scale it is happening at the smaller

scales but i want more kind of constitution dow esque things happening to put it kind of like uh put it bluntly so hopefully we can get more of that going forward but yeah it was cool to see all this cool to say that eighth is money no one can deny his money anymore like if you are denying that is money then really i don't even want to talk to you because it's just silly to deny it and on top of that uh maybe i'll just give a little jab here where's btc where's bitcoin right like you know i just when it comes to bitcoin i i don't want to make fun of it but it's just so hard not to because of the fact that it has failed at everything that it's tried to do and ethereum has basically usurped it uh like long ago and everything that

it's tried to do the only thing left is pretty much market cap and for people to keep going on about you know bitcoin's going to be the world reserve currency it's going to be money it's going to be digital blah blah blah how like where where's the evidence of this like i don't get it and i i know that people say this because they've got like a bias and i've also got a biased order theorem of course but you know they've got a bias they have like a an allegiance to it and they really want it to be bitcoin they don't want it to be ethereum and that's fine i mean if if people came along to me and said hey you know ada or cardano's no native token is gonna be like the world reserve currency's gonna be money i would tell these people to

piss off as well right but at the same time there's no evidence of ada being used as money like eth is so when you have all these evidence staring you in the face it's kind of hard to deny at the end of the day so that's kind of like my my view on that um but yeah bunch of other stuff to get through so moving on jerry bruto from coincenter i tweeted this out last night a lot of you may have missed this because it kind of came out actually no it came out at like almost midnight my time so maybe you didn't miss this but there was a lot happening but still anyway i'm going to go over it so he tweeted out gm some good news a comprehensive bipartisan bill has just been introduced in the white house to sorry in the house at the white house to

fix everything wrong with the infrastructure bill's crypto tax project provision including the unconstitutional 605 i individual reporting mandate uh section 605 i um now i've said this to you guys before on the refuel that the infrastructure bill it doesn't go live until 2023 like early 2023 live i mean like it doesn't become lauren's early 2023 and we have ample time to amend it until then right and that's exactly what's happening there are bills being introduced to amend this stuff to fix it you can see in the in the thread here the detail from jerry he screenshotted each part of the bill and kind of um uh put his own little commentary on it as well so you can go read all of this but i guess i just wanted to highlight this because i wanted to show you guys that it's not the end of the world and the market

doesn't think this either i know the market right now is kind of like in i don't know as i've said before i don't think the market's bearish is kind of like in no man's land um it seems to be bitcoin that's being weak eth seems to be gaining on bitcoin so you know this is fine um and i don't think the market cares about regulatory stuff generally like you know it's funny people always point to the china ban of um of mining as like you know the reason why we crashed in may uh i don't know if i buy that as like the sole reason if you go back and look at kind of like the the chart for bitcoin in may it had done leading up to may it had done an amazing run right it had gone basically up only from 10k to 64k with no major crashes um

from when i from from what i can remember um uh and then you know obviously like it went sideways for a bit and then eighth caught back up uh and kind of like the you know a lot of the other a lot of things in the market called back up and then bitcoin you know rolled over basically and and tanked from there people always point to things to explain i'm not saying it wasn't a factor but at the end of the day that was a huge regulatory action right that was literally china actually banning bitcoin mining um but this this stuff in the us is totally different not only because it doesn't go into law for a while but because it can also be appealed and changed and because there's a lot of money a lot of money guys like literally tens of billions if not

hundreds of billions of dollars uh on you know uh worth of kind of like capital behind a lot of the um the crypto billionaires the exchanges uh the the regulatory uh advocacy groups and all that sort of stuff they're all gonna fight for crypto they're gonna fight for us we're not a fringe thing anymore i think what ends up happening is that people still think crypto is french we're almost you know we were a three trillion dollar asset class obviously we've come down because of the the price action lately but essentially we're not a french thing anymore so there's no use thinking about it like that it's not like the us can come along and basically be like oh it's just this pesky little thing we'll just get rid of it it's fine no it's so deeply ingrained into so many people's lives now that literally we're winning on every

front pretty much and the reason they're fighting us because they know we're winning i remember listening to a podcast on bankless um kathy wood and and other people from ark were on it and kathy was saying that banks are hurting from d fight not from uh you know people kind of like i guess uh as switching so to speak but they're kind of like margins so their margins being like their new growth is actually hurting because instead of uh i guess like probably younger younger people make up a big portion of this instead of them putting their money into a bank they're putting it into defy they're putting into crypto they're buying crypto with it and we saw recently the action from the commonwealth bank in australia the largest bank in australia say that they're going to um going to kind of be supporting crypto

and in their directly in their app which is absolutely massive right and the funniest thing about this is that um you know i was talking to like the bad the guy my uh to to to the commonwealth bank and i was like this hilarious like you know they they kind of like say that crypto is risky but then they go ahead and kind of like support it and i think it's because they they're being forced to because they obviously have all the data to see how much money is outflowing from there from their bank to these crypto exchanges and they're missing out on easy revenue uh and they're going to do it right they're going to integrate it and all the all the banks are going to do it they've been doing it and more institutions are going to get involved crypto is inevitable so these that's why

i think that these regulations no matter what they are at least in the us in china it's a bit different but in the us you know western democracy in places in europe it's just very very different to uh to something like china or to russia or somewhere else where it's kind of like you know i mean not a not a democracy right where things can't really be changed very easily uh not easily but like through kind of like the democratic process so whenever i see regulatory stuff i'm like okay that you know that exists i mean it means we're winning like let's just deal with it and kind of move on so yeah anyway you can find this it'll be linked in the youtube description jerry's thread here and also the link to the bipartisan bill which i i think is really really cool this has been

introduced already so xero had shared an article uh basically saying that ethereum based holdings among institutions is up 19 in q3 but uh bitcoin holdings dip according to sec filing so this is not just zero hedge saying this i know zero hedge is a bit of a controversial source their source is actually the sec filings i remember showcasing this a little while ago and basically saying that institutions have pretty much stopped buying bitcoin um and they're buying eth now and it seems to be even more true like in q3 i think that was for q2 and q3 seems to be the same thing and all the kind of things point to this you know coin based uh eighth volume being higher uh then btc volume right eighth outperforming bitcoin i know it's kind

of like in a range right now but really i mean it hasn't broken down usually q4 is very weak uh is very weak against bitcoin no that's not happening in this q4 we're halfway through q4 guys like hasn't happened yet i don't think it's gonna happen so when looking at all that i mean i don't even you know this isn't even surprising to me because if you're an institutional investor if you're a traditional finance kind of investor and you're looking at what to invest in right btc and eth you could probably argue at this point btc have similar risk profiles in terms of kind of like investing in them yes i know people say ethereum has more execution risk because it has all these major upgrades coming but i don't actually consider that a risk to be honest i feel like that's you know it's

not to under under uh undersell like how important these upgrades are and how difficult they they are to get right but i have so much confidence in the ethereum ecosystem that i don't consider there to be a risk there and these traditional instant you know institutional investors they have to probably um no they have to definitely not probably they have to definitely take a kind of like more risk-averse view but they seem to be uh kind of like uh much more warm to ethereum these days to eat when kind of like looking at assets to buy but as i said like you take away the risk portion of it you look at bitcoin you look at ethereum right what is ethereum got and that bitcoin doesn't have everything right and not just that i'm in everything being like the fundamental value all the things building on it and everything like that

i'm also talking about the fact that these institutions can look at ether and say okay well the ethereum network is generating you know say 50 to 80 million dollars of daily fear revenue on any given day 80 or 70 80 of that is being burned which means it's literally removed from the supply and it's indirectly being fed into uh into the eighth value right over time because you're removing from from the active supply and i've spoken about this before then you look at defy you look at staking how big that is as an industry not just for ethereum but for other chains as well uh d5 you look at nfts you look at the cultural stuff you look at dows like you look at anything in crypto it's all ethereum it all roads lead to ethereum and layer 2 scaling i mean there's so

much happening that i'm even forgetting things that are happening so when you take all that as a holistic approach if you're an institutional investor traditional finance investor and you're looking into the ecosystem it's very very rare that you're actually going to be looking at much got to do with bitcoin you know bitcoin you might say oh okay they got the futures atf cool oh okay el salvador approved it for as a kind of like currency yeah i guess that's cool but uh you know what else are you hearing about it the only thing i ever hear about bitcoin and a tap root i mean no one even cares about taproot you know the the funny thing about taproot is that it was such a a a a measly upgrade that the bitcoin maximus had to actually lie about what it did they had to have to oversell it because

it actually didn't do what they said and it's ironic because they always give um have a go at the quote-unquote altcoiners for um you know deceitful marketing but you know from what i've seen and from all the research i've done on taproot it really doesn't bring quote-unquote smart contracts to bitcoin in any capacity in any practical way it does not bring it in a way that ethereum brings smart contracts to the world so outside of all that like what else is bitcoin got and i know again i don't want to just kind of trash a bitcoin in the whole the whole bloody episode today but i just i'm getting to a point now where i just i i when i see people kind of like ignoring ethereum and ignoring kind of like the theorem being the flag bearer of the crypto industry even though all the signs are there i kind of

look at that and i'm like okay well you're in denial basically and like and as i said like i get that like i have an ethereum bias obviously and if i see other things happening i may be i you know other on other chains i may be in the same position but at the same time uh you know the thing is is that it's really just like ethereum regardless of the you know people use other change because the gas fees are high well i mean ethereum is also is still the center of innovation the hotbed of innovation it's still where all the most exciting things are happening i've looked at all the other chains i actually don't really see anything in the other chains that are a zero to one innovation um that would be enough for me to kind of like dive deeper into people say oh this chain

uses this consensus mechanism like i'm sorry guys but it's not really doesn't really matter at the end of the day like it doesn't matter that much it's a marginal you know maybe it's a marginal improvement on ethereum's proof of stake which is by the way six years worth of research and development went into that consensus mechanism and people say ah there's these products that exist here that don't exist on ethereum and i'm like okay well they're just clones of ethereum apps or they're just ports of existing apps that were on ethereum and then i look at ethereum what's happening on the even in despite of the of the high gas fees and i kind of like see that and i'm like okay well ethereum is doing so much more than then is innovating so much more than any other kind of like ecosystem so why do i care

to pay attention to other other ecosystems also my time is limited so yeah anyway that's another rant i always go on these rants right and i have a lot to get through so just wanted to kind of highlight that that um you know it has a lot of institutional interest for a variety of reasons and i don't expect that to slow down anytime soon especially leading up to the merge guys we still got the merge coming that is going to be memes into like every corner of like the the finance world that a 90 issue introduction is coming for uh for a network that already burns 50 plus million dollars a day of its native asset like come on guys like how can you not be bullish either literally the best asset ever not investment advice but yeah i'm getting myself too bullish anyway more bullish stuff to

come um time uh speaking of institutional investors time uh time magazine is actually going to be holding eth on its balance sheet as part of its deal with crypto investment firm galaxy digital to educate readers about the metaverse again more institutions piling into this stuff more of them getting involved involved with ethereum i mean i didn't even mention the metaverse before when i was talking about the use cases of ethereum there's just so much i didn't even mention dao's didn't mention social tokens so much going on very hard not to be bullish and for another bullish piece of news binance who i never expected binance to do this this quickly but they have completed an integration with arbitrary one so the current arbitrary layer 2 network and have opened up to 8th deposits so you can go directly from arbitrary 1 to binance with your eighth

deposit no seven day withdrawal no going through layer one and paying gas fees you can go direct to binance to off board and they've said that they're going to be uh doing uh kind of like withdrawals soon which means you'll be able to go directly from finance at you know the biggest centralized exchange in the world to arbitrary one without paying layer one gas fees it's amazing i mean this is incredibly bullish news i did not expect finance to move this quickly on this especially because they have a competing interest in bsc which i'm going to talk about in a little bit as well but this is just i mean it's insane like i am so looking forward to the other centralized big big centralized exchanges like coinbase getting a kick up the butt to basically tell them hey finance is beating you again with what

with what they're doing please please please hurry up and do your integrations because i really do think this is a massive customer funnel getting people onto your centralized exchange to onboard onto these layer 2s and to off-board as well because if you allow them to on and off board well they're going to keep using you there's a network effect to be built there so i really i i don't understand why other centralized exchanges are dragging their feet here they should be their top priority because we haven't even scratched the surface i haven't even started with the layer 2 rollout yet we're already at 5 billion tvl and i'm telling you when arbor trim and optimism zk sync sucker when they all do their tokens it's game over there is going to be so much money pouring into these things there's going to be so much

activity happening on them and it's just going to be incredible and as i've said before they're still in their early stages it's got so much more to go of these layer two networks seriously uh the the exchanges need to do this so i'm very very happy about this like kudos to binance on this i've been very critical of binance in the past very critical of cz in the past but he you know they seem to be on the right track here caesar even tweeted about it from his own account which i thought was really cool so amazing to see i'm super pumped about that uh and speaking of uh i guess like um on and off boarding vehicles zk sync has partnered with crypto.com today so crypto. crypto.com also uh supports arbitram right now you can actually on and off board using crypto.com uh to to arbitram right now

which is really really cool they're obviously not as big as binance but still it's a way to do it and now they have zk sync on board too i mean zk6 seems to be everywhere right now i think next year is going to be a big year for them when they actually finally launch but that's amazing uh sticking with layer 2 stuff connext has a new chain alert for us optimistic ethereum is now available with connect so you can use kinect's bridging service via xpollinate.io to go from optimism direct to other l2s and sidechains so you can check out more in details in the medium post here but this is amazing uh you know this is all coming so quickly seriously guys i did not expect this to come this quickly in terms of like bridging integrations with centralized exchanges these l2s growing as fast as they have

already major upgrades like oem 2.0 and arbitrary nitro coming soon it's all happening and oh man i am ecstatic about this like i am literally so happy about this and you know the funny thing is is that like it's not just at least kind of like l2s as well uh you know even i've come around to the fact that these evm side chains they're so good for ethereum because they're still evm like ethereum is going to be scaling at layer 2 via the evm as well like obviously with arbitrary and optimism um and then evm compatible zk roll ups like zk sync and starco is going to have a transpiler that is the mode and the network effect there so even if these developers are deploying to other chains like ibm sidechains they're still using solidity they're still using the evm they're still kind of like uh there's

still a network effect forming around ethereum even though you know it's not technically ethereum it's still uh kind of like uh in that kind of world in that universe and it's still incredibly additive i think to ethereum so super excited to see that but yeah i know i'm like extra bullish today it's end of week and you know i'm just on a high really like after seeing all these news today over the last kind of 24 hours especially i watched the constitution dow bid live and that was just like a real cool community thing that happened today on twitter um but yeah great to see this integration from connext next here from alex miller from grid plus so the grip plus lattice support is now on the official metamask extension for chromium browsers and they have some more lattices in stock what this means is that if you once you update your

metamask you'll be able to use it with the lattice one which has been a pain point for users i know and now you'll be able to do it and they have more lattices in stock so if you haven't bought yours yet definitely go check it out i've spoken about the grid plus lattice a lot it is by far the most secure hardware wallet that you can get yes i know it's more clunky it's not like a little kind of usb key that you get with a ledger but it will give you like a full screen you'll be able to see what your what transaction message you're signing you're able to see what transactions you're signing in full so you can protect yourself um it has like tamper resistance i mean it has so many security features and it's insane just go look at the website

um and uh you know the fact that they've kind of like been out of stock is amazing because it means that people are actually waking up to them and and buying them and kind of like getting involved with them and now that it has metamask support i think they're going to get even more sales from this so absolutely amazing to see that really really excited about that uh two bar put out this interesting tweet today where they said uh new projects should airdrop their tokens to people who have held their uni ens etc airdrops creates an incentive for people to hold their airdrops in expectation of future rewards from other projects this is how we win together i actually think this is an interesting idea for a few reasons first reason is that i agree with tuba here it creates an interesting incentive not to dump your

tokens because you're expecting another airdrop from another project later on down the line at some time right but at the same time on the other on the other end of things it's kind of like a risk like do you take the risk that if you hold these tokens say the tokens i'm just going to pick up a random number say you get tokens turning prices 50 bucks each and say you have like 10 000 airdrop and then over the next six months the token price drops to 10 bucks your airdrop is now worth a thousand dollars but then you get another air drop on top of that and uh that air drop is worth say ten thousand dollars again yes it was better you were bet you were kind of like um uh better off holding the token that kind of lost the value right uh so that you

got um this new token but in saying that was it really worth the risk for an extra thousand dollars i don't know it's up to people to to kind of like come to terms with that themselves but at the same time you know they could work the other way where the token price either stays flat or goes up against usd over time and then in six months time you get another massive air drop and you kind of compound from there but i don't know if that's gonna i don't know if that's gonna achieve like it comes back to what goal the projects are trying to achieve like are you trying to get like alignment are you trying to get them more involved with your doubt are you just trying to kind of like make it so that people don't dump the token straight away i don't know because what's gonna end up

happening if this starts playing out is that imagine you know everyone that held their ens tokens gets an airdrop next week from some other project but then that doesn't happen again for six months in those six months people are going to keep waiting but then they're going to sell they're going to sell anyway so i don't know unless it's like confirmed that these other projects aren't going to give tokens to anyone except these people that hold these you know certain certain other airdrops i don't know how effective this will be but i still think it's a decent idea it's probably better than the way airdrops are done today in terms of a token distribution method but at the same time it can't just be to the holders of these other air drives because you can imagine that if ens only airdropped tokens to the holders of of

the of the uni airdrop well i mean there's probably a lot of people who didn't hold their uni airdrop as part of um uh and slide an ens name and they would have got nothing so it's probably not the kind of like right incentive alignment a lot of the time but there are some things you can do here and there are some synergies that i think that can be had and still an interesting idea nonetheless so ave announced that uh ave arc the first ave arc market which is the institutional arm um is uh it has been introduced here so you can go and look at this on mirror they're introducing it with fire blocks as the proposed first whitelister so you can check out in the background the fact that it's going to have kyc because it's servicing institutional clients and working with fire blocks which a lot of you may not

know what flyer blocks is but it's basically like an enterprise grade kind of infrastructure for i guess like playing with centralized exchanges playing with with all the stuff that needs uh kind of like regulations and all that sort of stuff um but yeah this is this is really cool i think there's a little bit of controversy around are they arc when they first announced it people saying if we introduce kyc into d5 it kind of defeats the whole purpose but the thing is there's room for both because just because ave arc has kyc doesn't mean that the normal rv markets will ever have kyc and then some people brought up the concern of well the liquidity is just going to go from the normal rv markets to the um to the other arc markets because they have more money because they're institutions right they're managing other people's money

yes and no i feel like you know there may be a segregation where it becomes you know the retail portion and the institutional portion but that segregation is going to exist regardless i i think in general and i think that the institutions are still going to go into the retail area because that's there's going to be money to be made there there's going to be you know lots of users there for them to tap into so i don't know i don't really think it's too much of a concern but yeah great to see avec continuing along with this um i've got a couple other things i want to get through uh just before it time's up here so i want to talk about this from our old mate edgar you'll probably remember edgar from all those kind of like real discussions about how mev and and was

going to reorg ethereum and whatever i talked about that like a few months ago but he shared a link today to a github issue where he said there's an incredible thread of bsc or binance smart chain validators threatening to dump the whole chain and move on because the bsc devs just merge to master which means they merge any kind of like updates to the the protocol to the master branch which is like the mainnet branch don't test anything and the validators can't keep in sync and then they're like all kind of like blaming binance for not kind of like fixing it i this is my shocked face guys like i warned about this such a long time ago all bsc did to achieve their scalability was reduce block times up the gas limit and make it seriously expensive for uh

validators to run the run the kind of like software uh because of the fact that it's the state is growing at an unmanageable an unmanageable pace and you know you can see here there's a lot of people complaining about this they're saying you know i'm tired of trying to keep my node synced even with nvme which is ssd 196 gig of ram all possible configurations in sick mode my node loses sync very quickly so that means that the hardware requirements for bsc are like you know above this and you remember that celina has similar requirements in terms of ram and the reason why they work is because they're in massive data centers and that's still just as expensive if not more expensive than bsc and this comes back to what i've been saying like for so long is that the reason why ethereum isn't just

going to increase the gas limit to juice out more scalability isn't just going to reduce the block times isn't going to make it really hard for people to run nodes is not only because we want to preserve decentralization but also because we want to preserve network health like if you can't even sync the chain like any if no one can sync the chain if no one can actually run the chain then the network falls over and dies and then what ends up happening is that you need to do what's called a regenesis which means you remove all the old state and start again but that's not a solution that's like a you know it's not it's not like a long-term viable solution it's literally a very a huge centralization vector um so yeah i mean you can read through this and see all the comments here i just thought i'd

highlight it because it's just so many people warned about this like so many people and at the time we were ignored and scoffed out and laughed at because there was money being made but this is exactly why ethereum is being developed the way it is um and this is exactly why we've chosen to keep ethereum layer 1 expensive to use because we want to be able to verify the chain we want to be able to keep the network alive you know 100 of the time we want it to be healthy and then we'll just do all the scaling at layer 2. it's fine like it's no issue and you know i said in the discord channel today i'm like i wonder if bfc becomes a roll-up imagine they do that imagine they just kind of like convert their chain to a roll up they fork opt

optimism or arbitram maybe they fork one of the zk stuffs and they call it binance smart chain roll up edition or something and then they could continue on their merry way that would be fine they'd get all the ethereum community on board as well no one would hate bsc anymore uh because it would basically be something that was paying ethereum for its security you know using eight they could even keep they could still keep bnb and all that sort of stuff and they would be kind of like symbiotic instead of parasitic to ethereum so i'd be interested to see if they do that i actually think as i said before the the evm sidechain layer ones are a higher chance of becoming a roll-up than like the standalone layer ones like solana and and cardano and and um a few others out there like polkadot and stuff

like that i mean then i mean i actually don't think polkadot would ever become um a roll up or over or anything like that celina maybe i mean i don't know it kind of like it gets a bit murky but they're actually they could actually work well as an execution layer as i've explained before but then a bunch of the other ones out there cardano no that's never happening their cult is too strong they don't want to they don't want to do that um and charles would never whatever before that but i i do think you know bsc could do that so i'm interested to see if they they pivot to this because it gives them way more scalability they don't have to worry about all these issues they have to worry about here they don't have to worry about consensus or uh giving keeping into consensus

liveness all that sort of stuff they can simply outsource that stuff to ethereum just pay mainnet with the fees generate uh sorry pay main there for fees and then just worry about doing the execution they can still have an evm kind of like uh implementation and everything that'll be fine as i said they probably just fork optimism or arbitrarium it's a free world everyone can they've already been forked so you can just keep forking them if you want um so yeah i'm curious to see how that plays out uh and i guess i'm wrapping up on time here so last thing so the second merge community call will be held on december 3rd at 1400 utc or pm eastern time eastern u.s time um so trent says here that they'd love to hear from apps wallets explorers and infrastructure providers and there may be some content

overlap from the first call so if you fit into any of those categories definitely go check out this link which i'll put in the youtube description for you um cool to see you know the most just plucking along i know it doesn't make too much noise about the merge lately but that's good it means you know progress is being made in the background when there's major updates to kind of like be announced and be put out there into the ecosystem they will and i will for sure cover them on the refuel but for today that is it so 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 thanks everyone