Cross-chain vs multi-chain, LFGrow finalists & more - The Daily Gwei Refuel #346 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily cardinal refuel where recap the latest news in the cardano ecosystem i'm your host charles hodgkinson and today is the first of april 2022 all right everyone let's get into it all right that's it about the news about the cardano ecosystem thanks for checking in okay okay enough enough of the jokes guys it's april fool's uh just a quick april fool's joke there i actually read a tweet from harzi before saying all the bitcoin april fool's jokes are about ethereum and all the ethereum april fool's jokes are about cardano but i had this in mind all day and before i saw that tweet before i saw the cardano april fool's jokes flying around so i'm just going to you know stay with that i think it's quite funny but uh yeah i hope you guys got a kick

out of that uh that there and you know what i actually really hate april fool's in general i think it's really silly um it i even though i know it's april fool's day and i experienced it twice because i experienced it once in australia and once in uh we know when america wakes up and when europe wakes up so it's just like a mess like 48 hours of not being able to trust anything that's why i kind of like really don't like the i mean it's not even a holiday right it's just like a gag really and uh you know there's a lot of a lot of jokes out there but i always i'm not always but sometimes i'll like look at it and be like oh god like i fell for it again right and there'd always be something that catches you it's kind of even as i said even if you

know it's april fools there's always something that catches you but uh anyway i'm gonna move from that there's a bunch of updates to get through here so i'm gonna go through them now all right just a quick shout out i'll be doing a live stream with david hoffman today uh you can check out the link here link in the youtube description this is our first live stream in a while actually so hopefully you can catch it if you can't you can obviously watch the recorded video once it's published on youtube immediately after the live stream hope to see you all there all right so uh there's this european regulation that i spoke about i think uh last week on the refuel i think it was maybe earlier this week it was recently but basically patrick hansen here who has been following this quite closely i

put out a tweet today uh yesterday saying the econ and libe committees of the eu parliament voted in favor of this uh basically new regulation that would crack down on unhosted wallets or i guess like um non-custodial wallets uh entire regulation draft to be voted on uh later today being laid up i guess on on the uh when he when he tweeted this but will certainly go through and then he kind of breaks down what this is who voted for who voted against blah blah all that sort of stuff there so this is obviously not ideal um i think that the eu has a pretty bad history of voting against kind of like technologies and missing out on technologies i've read a few people saying that the eu also missed out on the internet

because they just like were really heavy-handed early on and this seems to be following uh the kind of like pattern here uh with them doing this now uh you can as i said read this thread for more details on this but as i said like i think it was a few weeks ago now when i was discuss i was trying to like um get my point across to you guys about regulation in general and about how i think that look there's going to be shitty regulations in some parts of the world such as this and then there's going to be other regulations other parts of the world is going to be unenforceable ones like this one how can you enforce this right like how are you gonna what you're gonna make it illegal for people to withdraw funds from centralized exchanges to their own crypto wallets

well what's gonna happen is that all the exchanges are just gonna move overseas and they're just going to allow their customers to do it from overseas and it's it's just it's so unenforceable and unpleasable it's so backwards and it's so like anti-innovation that it's just insane that these things happen but they do right like they can happen for numerous reasons maybe there's some politicians that are being lobbied by the existing system and being like you know you need to shut these down or maybe other politicians just have absolutely no idea what's going on in crypto and they just see the headlines and they only know what for the scams and the get-rich-quick stuff and they think oh you know we need to heavily regulate this that happens a lot don't get me wrong guys like it's not a it's not a thing that it's a rare

occurrence it's actually a common occurrence so there's a million reasons why this stuff can happen and unfortunately it plays out like this but at the same time you need to kind of like dig deeper into this stuff as well like as patrick says here this was kind of like voted on and it kind of it's a draft it went through it hasn't become law or anything yet in the eu it's not like in a kind of like enough quite quite official regulation or anything just yet um and i think that uh it might go through if it ends up going through later in april or something like that but definitely read the thread for more kind of um i guess context yeah but i just wanted to update you guys on that and where that's going there as i said this is unenforceable unpoliceable it's anti-innovation it is

really really stupid it's gonna get challenged in the courts it's it's a losing proposition really it just these sorts of things are just a waste of time at the end of the day because i look at this and i'm like how much time is now being wasted thinking about this covering this you know having to fight this just because some politicians either don't understand what they're kind of i guess i'm voting on or trying to push through uh or they're just in the money of oh sorry they're in the pocket of the the um the existing industries which i mean both things play there or maybe they just hate crypto in general right there's that there's that aspect to it as well but definitely check out this thread i'll link it in the youtube description uh for you to do so all right so the ethereum dot org

website has a new layer two section which is absolutely awesome i mean guys like as i said to you i i think yesterday the day before ethereum.org is like the one-stop shop resource now for everything you need to know about ethereum at this point and here's a layer two page for you to kind of like dig in deeper with everything layered so obviously l2 beat is already out there and that's an incredible resource but this is just another one for you to dig your teeth into now you could spend so much time on this i mean look at this like you're scrolling down there's links to everything more on zk roll like go to optimistic follow-up zk roll ups here are the pages read all about optimistic roll-ups have links to everything else look at the amount of links that are here same with zero knowledge roll ups pros

co i mean there is so much here guys this is an awesome resource and i'm sure they're going to keep updating it you can explore all the um the current kind of like generalized layer twos our specific layer twos uh you know side chains validiums alternative blockchains all this sort of stuff here so very very cool to see this uh i'll link this in the uh in the in the youtube description below you can go check it out and actually i just noticed this there's actually a how to get onto a layer 2 section as well where you can kind of select from this drop down menu if you want to go to optimism you go it'll link you to the optimism bridge you want to go to arbitrary one i'll link you to the arbitrary bridge that is really cool and you know getting funds

off of an exchange as well uh you know onto a layer two that they kind of list the supported exchanges here that's actually a really cool feature so kudos to the ethereum.org team for putting this out is very very cool all right so eduardo here from the dap node team has shared an update that they have pushed to uh kind of like the dap node software here where basically you can change your eth2 client or validator uh on on the fly here or the the one that kind of like listens to requests from so you can see here in the video that they're going from lighthouse to prism in a click of a button they're going update yeah it's kind of funny that you know they've gone from lighthouse to prism when we've been trying to get everyone off prison because it's the majority client but uh but obviously you

can go from any client to any client here which is very very very cool i wrote the delight newsletter about this today and about how we need to really make ethereum staking much more simple but not only staking your eighth but also doing everything got to do with with kind of like staking your eats such as managing your validators and and beacon nodes uh being able to change your kind of like client on the fly without having to go through all the complicated stuff and and be at risk of slashing uh you know protecting yourself from being a slash maybe one if you want to set up redundant setups and stuff like that there's i mean there's a lot that goes into this i think that as long as we can make it super easy for people to stake their eat whether it's on their own or through a pool in a

decentralized way where we've done enough but you know as people will say okay well it's already really easy to stake with rocket pool or with with lido and i kind of like say okay yeah i mean it is to an extent like if you don't have 32 eth um and if you do if you okay so if you have 32 it's actually not that easy to stake on your own you can either do it from scratch which means you're setting up your own hardware setting up all their own software or you can do it using something like dap node which is actually pretty easy um but i say easy when i say like dead simple i mean like click of a button sort of thing and that's basically what centralized exchanges offer and that's why they're so popular because they'll just have a button all the user has to do is click it and

their eighth is staked essentially everything happens in the background now i don't know if we can get to that point for solo staking i don't think we can because solo staking is definitely more involved like you there are there are things you have to do as a solo staker to get into staking that are just unavoidable you can't have a one-click thing there but you know if you have 32 ether steak i would assume that you would be wanting to stake it on your own instead of going into a pool and you'd be putting up with a little bit more work you have to put in in order to stake now we can make that whole process easier mind you it doesn't have to be all command line we can make nice graphical use interfaces things like that um but if you have less than 328 even getting into rocket pool

or or lido with uh st or r8 that's still not dead dead simple like i think the simplest way it could be is if you had like a centralized exchange integration with it where people could just buy r8 or st on a centralized exchange that would be like with fiat that would be the simplest way but there are other ways to do it like um argent uh the the wallet supports it uh but again arjun is is very simple to use but it has a much lower customer base right now and it is also uh you know i guess like i i don't know it's it might be harder to use for some people or they might not they might not trust it as much as something like a coinbase for example so anyway there's a lot of work to do here the the east taking industry is going to

be massive guys i don't think people have really digested how big this industry is going to be we're going to see a lot of eighth state i mean the validator queue leading up to the merge now is already you know i mean still at 12 000. there are still lots of eth being staked each day because i think people finally clued into the fact that you know the merge is coming and that means yields are going to spike up a little bit there and uh you're going to be you know obviously earning more eighth and it's going to be really bullish going into the merge i think just more and more people have woken up to staking their eighth and that validated queue right now is i mean 12 thousand validators that that puts the q at uh geez what is it like two weeks or

something like that if i'm doing my head math correctly um that's you know then that means like if you were to put in your east today you'd have to wait uh two weeks to to get your validator active and to start earning rewards so yeah i just and i and i feel like you know even if there isn't a validated queue there's going to be tens of millions of each day i mean there's already over 10 million each state i feel like we're going to teleport to 20 million eighth leading up to the merge and then after that if the rates uh the staking rates are over ten percent or something like that because the fee revenue the unburned fee revenue is quite high and maybe mv and stuff like that we're going to see a flood of eighth coming guys like i i could

actually see 30 million each staked within the next year or so to be honest but we'll have to see uh you know depends on the eighth price as well i mean look if we got really bullish i mean imagine eath going to like 20 000 and then you wanted to stake with 32 eth that's a lot of money right that's uh that's 640 thousand dollars just it's just this take on your own so when you when you think about it that way it gets it gets quite quite crazy but uh we'll have to see what happens but cool call for dap note to make it just really easy to switch clients here uh which obviously is very very good for client diversity all right another banger thread from pseudo theos today talking about how he believes that cross chain is a technological dead and a dead end either

the future is mostly secured on ethereum with roll-ups or multi-chain a long but worthwhile threat now it is a long thread here uh basically sort of theos going through you know why they think cross chain is not the future and is it technological dead end why it's insecure i mean very similar to vitalik's blog post about this that a lot of people have shared and i'm sure you've read it at this point uh and how kind of like the future is probably going to be mostly secured on ethereum with roll-ups or multi-chain now i totally agree with this i think that um roll-ups today with their bridges and everything aren't where we want them to be obviously they've still got centralized controls in them in place and stuff like that but once they they have it once they're in their kind of like steady state in their end state

they are much better than these really shitty bridges that we have going to other ecosystems in a cross-chain way they are much more secure they're much easier to reason about and i've obviously i've talked about this a lot um a lot in the past and i think that look as much as i think that the cross chain stuff might be a technological dead end there are still going to be people that use this stuff there's still going to be ecosystems that form that aren't secured by ethereum and i think that's okay as long as the risks are understood um and you know arjun here from connex has been a big kind of proponent of this and he wrote a um a blog post uh today about optimistic bridges and what he's calling a new paradigm for cross-chain communication so uh he thinks it's you know questioning

communication can actually be done in a secure way and he's obviously building a protocol around that with connext i definitely recommend reading this blog post for a different take as opposed to what pseudo-theos and and maybe vitalik was arguing because it's always good to get both sides of the argument but for me as well like it's not just the bridge thing when i say that i believe the future is going to be basically ethereum with rollups it's also a scalability thing because as i've explained to you guys before i believe the modular way to scale a blockchain is the best way forward and i believe that ethereum is basically at the forefront there in terms of uh having i guess like the demand right to use its blog space at block space having the community having all the smartest people working on this sort of

stuff and also having the the roll-ups maturing at a rapid rate that are all based on ethereum right now and i just think that that they're going to win just based on having better technology at the end of the day than these monolithic chains and cross chain just and also cross chain is very it's harder to reason about uh and it's also the fact that it's uh it's less composable like uh polynomial goes on about this a lot but when we're in the steady state when we have like dank sharding and blob carrying transactions and we can share state between the roll-ups through dank sharding you basically have a multi-chain world but you have them sharing state which means they can actually compose with each other and talk to each other and interpret each other with relative ease and you don't get that from cross chain crosstraining

is actually much harder to do i know there's other projects like layer zero focusing on this but i mean they've got a lot of big promises and we're gonna have to see if that pans out but from what i've seen from the smart people that i follow they think layer zero's approach is interesting but also it may not be enough to kind of like get rid of all that complexity that we're used to in the cross chain world so we're gonna have to see how it plays out this is not something that's gonna happen overnight uh i think we'll see this play out over the next few years to see who's right and who's kind of like thesis was right and and in the steady state like bridge hacks right now i don't think are enough proof to pro to prove the fact that that cross chain is is um

necessarily like maybe a dead end or completely kind of um you know out of the realm of possibility of getting adoption uh because these bridge hacks can happen to layer twos as well because for example uh if a rollups keys were compromised right the centralized keys that the team owns were compromised well then the same thing could happen if that function existed so i mean in the as i said in the steady state roll-up bridges in i mean in theory and in practice should be more secure than across chain bridge but we're not there for most of these things today so something to keep in mind definitely read uh pseudo-theosis thread and arjun's blog post i'll link them both in the youtube description so a polynomial protocol announced today that they have launched polynomial urn on optimism mainnet which is built on

lyra finance and synthetics synthetics have had a renaissance lately guys i don't know if you have noticed not just the price of the snx token but the whole ecosystem there on optimism seems to be doing very very well and it's awesome to see because of the fact that synthetics didn't do very well for a long time because they were limited by layer one right the scalability really hurt them but now they're on layer two and they don't have to worry about that anymore they've got like lots of scale it's really cheap to do everything on there and uh there's a lot of projects building on synthetics right now so it's just really cool to see this but what uh polynomial launched today with polynom polynomial earn is it's the first d5 options vault project to execute on-chain via an amm or with the speed and cheap transaction powered

transactions powered by optimism so today uh they launched ste also s eth covered call and cash secured put selling volts with a cap of 300 s eight and one million s usd respectively uh and you know starting this friday the volts will start selling options directly to lyra finance amm in batches so it's all composable within the synthetics ecosystem here this is really cool i think this was the original synthetics vision and the original vision kane had and as i said it just couldn't play out on layer one but we're seeing it play out on layer two so i mean i'm very bullish on the synthetics ecosystem guys espec and obviously the optimism ecosystem but i think that it's really proving to people that d5 or a lot of d5 was limited by layer one and once they get started to get going on layer two once people actually

realize that these things are super cheap to interact with now compared to layer one ethereum really magical things are going to happen and i've spoken about this before where i said that there were just a lot of things that were not possible on layer one due to both the costs and the the speed i mean the fastest transaction you can do on layer one is in one ethereum block in 13 seconds right the fastest transaction you do on a layer two i mean it's already about one second but apparently um arbitrary nitro they're promising even faster than that and i'm sure optimism has speed improvements up their sleeve as well it's basically instant so when you take all that into account it's no wonder that these things uh like synthetics and other apps are kind of like having a bit of a renaissance here um and i hope you

can see this continue for other d5 apps out there so definitely go check out polynomial uh protocol here and then with the new earn feature uh it'll be linked in youtube description so i missed this the other day but balancer have announced that they've uh uh got a new ve bail token which is live and the new ve bail governance system has also kicked off so this is following on from a lot of these kind of like ve token schemes that uh i think a curved pioneer and there was a bunch of others out there that have been doing this and basically a way to i guess lock up the the kind of like tokens and and basically drive more value to the token and have more participation in in governance as well so uh you can read the thread for uh for a description here

and read the blog post for it for a deeper dive but basically what battle holders can do is lock their battle to receive ve bell and get a host of benefits uh such as long term alignment with the balance of protocol users fully automated balancing um protocol revenue distribution and plug and play compatibility with curves ecosystem so more details are available in the blog post on this but yeah if you're a bellholder you should definitely be checking this out i think the funny thing is about a lot of these ve tokens is that it doesn't make much sense if you plan to hold them for the for like a year or two years it doesn't make any sense for you not to lock for that long like if you've actually said to yourself okay i'm going to hold this for at least a year uh and before i'm

i'm not even going to think about selling it well then you should lock it up i think the problem becomes when people start locking up these things and then they go down like 90 and then they're like oh oh i didn't plan to hold it for this long now i can't sell so yeah there's always the kind of like trade-off there you get the benefits but i mean some of these tokens like have gone down a lot uh uh you know maybe since you locked them and you kind of like locked into a position here but if you do believe in balance out balance is a great project and if you do believe that bal is going to go up in value then it makes sense for you to lock it here so i mean not not investment advice guys but yeah definitely check out this blog

post for a um a deeper dive on all that and how it all works all right so a big announcement out of maker today so the first real estate deal of uh of uh from 6s capital llc with tesla involving a dialogue to a maker vault to fund the project so i think what's happening here is that tesla is basically as uh as as toucan spam says here tesla's renting this real estate which was originally purchased via a dialogue through maker so this is cool i mean like it's it's it's really cool because we're blending the real world with kind of like the the crypto world right now i mean make has been a pioneer here of this they've been wanting to do this for quite a while blending in uh real world assets into into d5 protocols obviously there are things that need to be worked

out before these thunk these things can be done like at scale obviously like how do you secure the real world asset because it's still secured by the contracts in the real world right and then you have to kind of like have it in the contract that says that this is going on in d5 with that blah blah but you know there are people working on this there are organizations working on this and it's really cool to see it just out in the wild and it's really cool to see that um that uh uh tesla's basically the tenant here from what i understand so yeah see it says yeah tesla as a tenant as a collision center this 7.8 million closing was financed by 6s capital partners with a series a uh and they closed the the deal we paid the loan and sold the project to an investor with an

expected exit cap rate so they've actually repay the loan from what i understand as well after buying this real estate very very cool uh i think i think we're going to see more of this as time goes on for sure as i said scaling it is kind of hard but i think if anyone's going to do it it's going to be makeup there you know the thing about maker is that they're such a core and important protocol of ethereum d5 but they don't get much attention or love because the mkr token doesn't really do anything and i mean i get it but at the same time like regardless of what the token is doing you should definitely be paying attention to what maker is doing as a project how they're kind of like pushing d5 forward especially with real world assets and and things like that

all right so 8th global has announced the 12 lf grow finalists here so there's a thread here of all the projects and kind of like what they are i haven't had a chance to go through them just yet but uh they look quite cool here so there's projects like mad finance which is uh basically i mean the lf grow uh uh hackathon was for web 3 protocols guys so you're going to see a lot of web 3 stuff here this this is mad finance which is the a lens reference module that enables real-time monetization of your content so kind of like as blending defined web 3 there uh there's iris yell which is a messenger of the gods twitter x patreon x twitch x tick tock built on lens so lens protocol being the protocol out of arved for decentralized social

media that i've talked about before uh lens collect auctions run dutch decreasing in english increasing bids auctions for collecting lens posts i mean this is really cool guys like i think i'm pretty sure all of these were built on lens from what i can see or at least most of them were but i i definitely recommend uh checking out um uh checking out this thread and kind of like reading through each of these projects and checking them out yourself and going and using them because these hackathons usually give birth to the next billion dollar protocol so if you want to see what's coming down the pipeline if you want to be ahead of the curve when it comes to what projects are actually going to be you know coming to ethereum other than maybe d5 projects but more specifically in the web 3 space you should definitely pay attention to

each global uh finalists and uh and just people building in youth global in general so definitely check this out so element finance today have announced the launch of the element dow and the distribution of their alfie tokens so claiming we'll go live at different block name number uh 1 14 496 2292 at approximately 4 p.m et now i don't know what the current block number of ethereum is i don't know if we're at that block number let me have a quick look for right now uh yeah we've actually passed that block number so claiming has already gone live i don't believe the tokens are liquid yet you can't trade them or anything but if you were part of the initial airdrop you can you can um you can claim it and the first 2000 claimants uh and that dedicated their voting power was

actually able to mint the alfie verse nfts that i covered the other day as well so very very cool to see this and i should disclose here guys i'm an investor in element finance as part of their last round their series a so um i don't have my tokens or anything they're all vested and stuff like that but i just wanted to to disclose that there for you guys but i mean you guys know i've been a big fan of the element finance project for a while now i actually really like the way that they're handling their dowel on how they're kind of going about it which you can read more about in this blog post um if you want to kind of learn how they're they're doing it with like a governance steering committee and kind of like having a council and just basically

doing it right from day one i think a lot of projects think of dows as kind of like a it's something they can deal with later and after thought when in reality it should be the something that you're thinking about from the very very start especially if you're kind of like going to be governed by by token holders because you need to make sure that you build a really healthy and and sustainable community from the start you need to make sure that your token distribution is healthy and sustainable um and you need to make sure you have good governance participation for your doubt to actually work so cool to see this definitely give this blog post to read i'll link it in the youtube description all right finally here we have another thread from trent van epps this time talking about rewards and penalties in

ethereum proof of stake there's more than just slashing now i've spoken about this before guys there's slashing there's inactivity leaks there's um inactivity being the offline kind of like leagues there are uh kind of like um different uh levels of kind of i guess like leaks depending on if you know if most of the network is offline you're gonna lose more than if just you are offline and uh same same goes with slashing and then when it comes to rewards you actually get like a bigger reward the more uh kind of like um sorry the better your validator is doing so uh if your validator is uh getting the information out the fast as it can if it's got like you know 95 plus percent i think um uh uh and not sorry 95 plus percent uh

uh uh uh efficiency efficiency i should say then you'll get uh you get the full reward i believe uh and there's a bunch of you know more information from trent here as well you should definitely check out this uh this thread but uh also people get uh uh rewards for whistleblowing as well uh as part of kind of like slashing and things like that so yeah this is really good i mean the funny thing about a theorem proof of stake is that it's actually a complex system in that there's a lot of moving parts to it but it's very elegant in its design and if you want to learn more about it this i mean about the rewards and penalties this is the thread to read but you can go deep with this sort of stuff and this is why i'm looking forward to to fully reading ben

edgington's kind of like book that he's doing on the beacon chain because there's so much that goes into it like as i said guys this was like the the bigger chain is a result of so many years of research and development and not just research and development for the sake of it but trying to build something that is a truly decentralized sustainable healthy steak protocol not just at the technical level but at the social level as well and that's what gets me most excited about ethereum to be honest guys like that like that kind of dedication to the core protocol really does breed uh greatness and you know extra protocol whether that be at layer 2 whether that be within d5 nfts web 3 the community in general anything at the end of the day i think that as long as you know the fact that we have it coming from like

the ground up the fact that it's kind of like a bottoms-up approach instead of a top-down approach is very very healthy but uh i'll link this thread in the youtube description for you to check out uh and i think that's gonna be it for today so thank 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