The Daily Gwei AMA Series #13 - 30th of October, 2021

Transcript

all right everyone welcome to the 13th daily way ama series hope you're all doing well um this series uh sorry this today's episode's a bit a bit different we actually have a pop-up available or we'll have a pop-up available for today's episode um davey was kind of organizing that so hopefully there'll be a link around soon to claim that so really really excited to see that um uh uh kind of like shared uh and obviously everyone loves to collect pops right uh so for those of you who haven't been to the ama before if you want to ask a question you can raise your hand and i'll see it come up on my on my request here or you can ask the question in the ama series channel and i'll get to it towards the end uh but this will be recorded and uploaded to youtube so if

you have to leave early you can watch it on youtube and there'll be timestamps and everything like that to get through all of them uh and on that note i think i'm gonna get started with questions from the ama series channel and at any time if you have a question feel free to raise your hand so the first question here comes in from md888 who asks when arbitrarily and optimism release their native tokens will that contribute to the security of the network uh what factors contribute to the security of these l2s does tvl affect security so though i guess like taking a little bit of a step back here the beautiful thing about these l2s and these roll ups is that the secure their security is actually ethereum layer one security so they directly inherit the ethereum a

layer 1 consensus so essentially we currently are on proof of work consensus and then we'll move to proof of stake once the merge happens but their security is tied to ethereum layer 1. so when they you know issue a token and and decentralize out their validators and sequences that is not for security that is more so for decentralization because and for reliability because right now both arbitrage and optimism have a what's called a centralized sequencer and a centralized validator where basically all the transactions that you do on those networks run through those those kind of like validates and sequences and if they were to go kind of like offline then you wouldn't be able to do any transactions on the layer 2 you would still be able to get your

funds back from layer 1 because of the fact that that's just the way the um the layer 2s work they're secured by ethereum but you know that's why you know when they do a token that will contribute to the decentralization because you can imagine people wanting to spin up their own validators and their own sequences to capture the fee revenue from the network and they'll probably probably need to stake the token in order to do that so for processing transactions for doing the work or uh for the layer 2 network they'll be able to to kind of like earn uh fear revenue for it which which i think is pretty cool uh and you know there's also kind of like um in some of these l2s not not so much arbitrary optimism but some other ones where the token not only uh leads to kind of like

decentralizing out the the kind of validators and sequences but it also leads to uh kind of like having other features like slashing so you can actually slash a validator if they were to do something kind of like malicious or not you know or not be as reliable for these off-chain kind of like data availability committees so you'll have heard me talk about a lot on the refill before like volidium from stockwear and zk porter from zksync these they still inherit their security from ethereum but they keep the data off chain now if you want to incentivize people to like keep data for longer you obviously have like a token and they can stake this token and earn fees for keeping for keeping the data available and making sure people can always kind of access that data but also you would like

to punish people who do something malicious like withhold the data from users or kind of like sensor users and stuff like that so there are other uses for the for the token there of course as well and then you know some of these l2s may decide that their token is a governance token right and say well basically we still need to be able to upgrade the the chain and add new kind of like functionality to it so let's just have a token that acts as a governance token as well now i don't know if any of the l2s will be doing governance with their tokens i am just like saying that that could be a use case uh but i haven't seen anything from any of the l2s yet uh and you i mean you ask what factors contribute to the security uh basically ethereum layer 1

when the l2 is constructed correctly of course it can be constructed incorrectly where the l2 could basically not post fraud proofs to layer 1 which means that it is not secured by ethereum so uh and i think optimism doesn't post fraud proofs right now i think they will in the near future but they just don't do it right now and i've mentioned before how arbitrary optimism in their current states are pretty centralized like they're they're in beta they're at really early stages and they're keeping it quite centralized because of that and you know they're they're pretty open about that as well they're not trying to hide that or anything like that so but that's just the current iteration obviously as we move uh through the rollout of these things and the adoption of it they'll decentralize uh over time as well and then your last question does tvl

affect security um i mean not directly in a roundabout way i mean it pro it might because i guess like something with a high tvl has like uh you know it's a it's a kind of bigger honeypot for attackers so you know if an attacker says well okay there's like a billion dollars in this in this l2 is there any way to kind of exploit this to to drain these billion dollars now they probably wouldn't put in the same effort for an l2 that had like 10 million dollars in it or something like that right so i guess like the bigger the honey pot the more ephetone we'll put in to try and exploit it but the it doesn't affect security in the sense that you know it doesn't matter how much tvl you have you would still be inheriting ethereum security as an l2

so hopefully that that answers your questions md triple eight all right next question comes from next tech who says when referring to smart contracts on ethereum as money legos does that mean that any smart contract can interact with any other smart contract permissionlessly or would a newly built smart contract still need to have some form of permission to interact with a different one i'm trying to wrap my head around web3 apis and it would help if you could give an overview as to how smart contracts from different teams can interact with each other so the term money logos describes exactly what you said basically means that all these smart contracts specifically d5 smart contracts can interact with each other compose with each other and interoperate with each other now they can do this permissionlessly only

if the other contract doesn't have like a white list so for example there are some protocols that will have a white list of which um contracts can can um interact with them uh an example of this would be something like the iron bank that that uh that the um the urine ecosystem had where basically they allowed certain protocols to borrow under collateral to take out under collateralized loans from from cream and other protocols couldn't do that so i think that i think alpha finance was able to do it but other protocols weren't so there are instances where the protocol will basically say well we're not totally permissionless for other other ones to interact with and we have like a white list or something like that but in the normal case you know mostly everything is is kind of like interoperable and

composable with each other and the perfect example of this is you know uh for example using uni-swap lp tokens as collateral in maker to to draw die that's an example of composability um and you know actually now that i think of it the perfect example is something like a flash loan where essentially you can basically borrow funds from a money market and you know that enables flash loans such as aver borrow those funds and use those funds to do whatever you want on ethereum and as long as you pay those funds back in the same block uh you you'll be able to kind of like take that loan without putting up any collateral so for example you'd be able to borrow like half a billion dollars from rv do whatever you want with that half a billion dollars on the chain you could do arbitrage

transactions you could do an exploit of course uh you could do a bunch of different things and as long as you're able to pay back that full amount in the same ethereum block uh and and the fee there's a little bit of a fee uh kind of like associated with it then you are basically able to take that out completely with zero collateral because essentially what happens is that if you don't repay it in the same uh in the same ethereum block then the entire transaction reverts and flash storage to this day is still one of the coolest things i think that ethereum has and one of the coolest ways to show ethereum's composability uh as well so the the kind of like i guess um uh comparison to like uh apis in general is that like if if something isn't like an open api then obviously anyone can

build on it and and kind of like interpret with other things built on it but unfortunately a lot of apis these days are closed off or require kind of like subscriptions or a rate limited or kind of stuff like that um you know facebook is pretty famous for basically kicking developers off their their apis and killing a lot of the early facebook apps that were built on there because facebook was basically like well we don't want this because we want to we want to um you know centralize everything within us whereas on ethereum everything can be built permissionlessly and everything can just like leverage everything else uh which i think is really really cool so yeah hopefully that kind of like sheds some high level light on i guess composability money legos within ethereum and how they all kind of like

work together and play together all right a question here from who hey anthony have you considered short have you considered shorting every time you're about to tweet something euphoric about eve it's amazing that it seems to dump every time you do no i haven't considered shorting eth i don't think i could physically bring myself to short eighth no matter what even if i was convinced eighth was gonna drop in price for whatever reason i don't think i could i could short ethan it's funny like uh there there's a book by nassim taleb called fooled by randomness and i think it applies like so perfectly to um that my tweets because like i tweet a lot about i guess like the eighth price and stuff like that and if you actually map them out on the chart a lot of the time it doesn't actually affect the price at all but because i

usually am tweeting out something really bullish when the price of eighth is going up there's it's more likely than not that the price is going to come down after that because the price has already been going up like for example i tweeted the other day when ethe first kind of touched all-time high it was more likely that eth was probably going to dump off all-time high after it had just run up to it then uh you know if i tweet when atheists kind of tweet something really bullish when eth is kind of like dumping in price for example so i think that's why that that sort of stuff happens but it is amazing uh the hit rate there i think maybe just in general i need to uh not post anything when eighth is going up in price it's hard though because i like it when ether is going up in price

i i like celebrating um all-time highs and stuff like that but uh yeah no definitely haven't considered shorting one here from handassa attack who says why is everyone on twitter asking you to dance so this is another one uh another thing i uh that um that i kind of like uh promised or kind of like did around 8th price movements that i kind of like regret now so there's this um woman who did a a dance about bitcoin called the bull ball bull dance or something like that and it was like some some really i mean i i i watched the and and i i felt a little it was a little bit cringy she basically sings about bitcoin and about how like michael sailor is bullish and it was just really awkward and cringy and i

think that was done on purpose and uh one night i was lying in bed and eth was uh what what was it it was like 700 or something like that and i think or 800 or something um or maybe a bit more than that i can't remember the exact price but it was january of this year and i basically said if eighth gets to its all-time high in january uh which was 1400 or 1420 i'll do that dance and i'll basically sing and dance like that that woman did and and of course eth got to all-time high in january uh and and i didn't do the dance and now everyone has been bugging me about it for for a long time now because they want me to do it uh maybe one day i'll do it i just haven't done it it's it's i can't bring

myself to do something so awkward and cringy but i'm gonna have to do it and maybe maybe i'll do it when atheist 10k or something like that but that's the context around why everyone keeps bringing that up i know i'm never gonna live it down as well and and that's the thing i should just do it and get it and get it out of the way but you know if you actually saw the dance that the woman did and what she did in that video it's very cringy and very awkward so you probably understand why i don't want to do it but hopefully that gives the context there so your second question hundasser you ask dankrid feist uh on zero on the zero knowledge podcast has mentioned that after stateless statelessness ethereum would probably become more centralized because very few individuals will be incentivized to run a block builder node

compared to a block proposal do you think that is worrying so i haven't listened to that podcast actually myself and i wouldn't consider myself to be um you know as up to speed on stateless ethereum as i would like to be there's a lot of moving parts to it there's a lot of ongoing research i would i would kind of like say that take anything that researchers kind of like say around stateless ethereum right now with a grain of salt because a lot can change um you know a lot has already changed with other parts of ethereum for example with sharding for the longest time people thought that we were going to do execution sharing now that's kind of like off the road map and we're just doing data sharding so just as an example of things being of things changing quite quickly in this ecosystem so i

would say that uh just maybe keep up to date with the research going on with stateless ethereum maybe get involved even if you'd like but uh i just generally haven't kept up as much as i would want to i think that's also because i know that it's rapidly changing and for someone who obviously isn't working full-time on stateless ethereum it doesn't really make much sense for me to pay attention to it uh like so granularly because i know that things are going to change and it just i i just feel like it's it's not really a good use of my time to follow along with stuff that's just gonna change rapidly so i haven't really paid too much attention there and as i said haven't listened to that podcast yet so i mean hopefully that gives you a bit of color around the around that but i'm not sure

about the actual question itself uh about kind of like these um ethereum becoming more centralized because uh only only very few individuals will be incentivized to run a block builder node um i think in the current state that might be true but there's probably going to be a different state once it once it gets to mainnet because i think stateless ethereum won't be you know even considered for mainnet until 2023 at the earliest and it might even push into 2024 we have to see how it all plays out uh that like that but you know i think that if it does go to mainnet in this iteration where it can centralize within a within very few individuals then yeah it becomes worrying right but i think that just based on obviously all the past research developments happen within ethereum the developers and the researchers

definitely want to find a solution that doesn't centralize things but there are trade-offs as well at the end of the day so yeah hopefully that kind of like gives a bit of color there sorry i couldn't totally answer the question for you so a couple of questions here from yon the thorn who says you mentioned you use nurses safe and have a bunch of multi-sig wallets would you mind explaining why you have so many wallets in general could you give an example of why you would want to create a multi-sig wallet so uh the the main use of kind of like gnosis safe uh for me right now and why i am on so many multisig wallets is because there are various kind of like projects in the ecosystem that i'm a sign up for so i'll kind of like sign a transaction or sign something sign a message a

message or whatever as part of like these dows and stuff like that um and you know i have like a multi-seat wallet for ethub with with eric connor he's my co-founder we have kind of like funds in there and obviously it's a multi-sig because there's two of us uh so i guess that answers your probably answers your second question as well i was like why you would want to create a multi-sig wallet well if you have like a wallet with funds in it that are shared between various people or if it's shared between like a dao for example which is obviously um more than just a few people it's it's it's a lot of people you would want there to be a multi-seat on there to ensure that um not one person could just like drain the funds and there's different ways to do multisigs you can

do like a two of three where only you can have three signers on the multisig wallet but only two of them need to sign transactions or messages for them to be executed or you could have like a five of seven or like an eight of ten or whatever i'm pretty sure you can construct it in any which way that you want and you can probably you can go pretty uh pretty hard with it as well like i'm i think the wbtc smart contract has like 21 signers on it or something like that um if i mean i i think it's 21 because if you get the reference referencing 21 million bitcoin um but uh you know then it becomes really hard to kind of like coordinate right like if you've got 15 of 21 you have to coordinate 15 people to sign a transaction and it just

becomes you know a little bit difficult to do that like that so yeah that is why you would want um uh to have a multi-sig wallet and yeah the reason i have i'm on so many is because i i kind of like help out different ecosystem projects and i guess like i'm a trusted and known community member so they would rather have people like me on the multisig rather than um you know just a random person really uh your second question an l2 index token um seems like the perfect player for your theory about l2s being one of the best investments you could make in the next five ten years any ideas if index cobb has it in the product roadmap um i don't know if they've got it in the product roadmap i would assume that they're thinking about it for sure because it is something that

definitely is going to interest a lot of people but the problem is is that obviously a lot of the l2s don't have tokens right now uh there's very few of them actually that have tokens and there's very few of them that have tokens that are there's even fewer of them that have tokens that are actually performing well uh because obviously when you want when you want to buy an index or want to buy one of these tokens you want things that at least perform kind of like well over over time so i would say that we would have to wait for more of these l2s to release tokens you did notice note that here in your question as well you say once more l2's release tokens so i think that uh it will come once once at least i mean i don't know how many you want like if you say

arbitrarium optimism zk sync stockwear this i mean polygon already has a token obviously with matic you you know that's five right you could probably go with five but there's others out there that already have tokens as well that are just smaller like for example you've got um i guess like you've you've got immutable x that are going to be coming out with a token uh a very very soon imx um dydx has a token as well but it gets a bit different because imx could be considered like an nft token for example right rather than an l2 token and then you have dy dx which could be considered a defy token instead of an l2 token um and this loop ring which is again more more d5 than l2 diversify more d5 than l2 so i would say that you would

want to stick to that the infrastructure itself where you know i i feel like immutable x could still fit into that but general gen i'm just looking at the list now like you could say that what is there uh seller network um with um kind of like their bridging and stuff like that and you have like i mean yeah could you include the bridges in that as well like bridges are a big part of the l2 ecosystem yeah it just becomes a little bit murky there what tokens you would include but i would say it would make a lot more sense once those kind of like five premier uh l2 um generalized platforms had tokens so so yeah i i assume index cop is going to do it once there's more tokens to put into there all right a question here from uh kirag who says can you share some context on

scott lewis and monet supplies comments on usd ust and terror haven't i haven't seen the community public publicly call out tara before so i was a bit surprised and you're referencing this tweet from scott lewis who is i guess quote tweeting monet supply who says ust is fundamentally broken and everyone's chilling it is going to end up looking either incompetent or shady in hindsight so i don't i'm not going to put words in monet supply or scott lewis's mouth here i'm not going to speak for them i am going to try and figure out sorry try and explain where i see kind of like the issues with ust that i've seen other people talk about and and kind of like articulate them so i think the biggest

issue people have is that it is an algorithmic stablecoin obviously we've seen a lot of algorithmic stablecoin projects play out over the last i guess 12 months and pretty much most of them have either gone to xero or like you know there was very popular ones like esd and and dsd and stuff like that that didn't work at all or are there a lot of them that actually aren't stable at all right they some of them don't advertise themselves as a stable coin other ones do but i don't think that applies to ust right now because ust from what i've seen is is pretty stable uh and it works quite well but i think the issue becomes is that the way ust minting and uh kind of like redeeming works is that you have to basically uh i guess technically they

call it like a burn but i don't really like calling it a burn but essentially what you have to do is you quote unquote burn luna to mint ust and then if you want to get it back you can kind of like do a do a redemption now i'm not across like all the intricacies of the system that is kind of like a very high level from from how i understand it now where this becomes a problem is that if there's say like a massive kind of like bank run on on the stable coin or if the price of luna drops really rapidly it could lead to a a depending event for ust and it could lead to a lot of instability within ust as a stablecoin now we've actually already seen this happen once before and it happened back when um the may

may 2021 crash happened where we had that massive crash where everything came down there was a massive deleveraging event and i think luna uh the token crashed pretty hard and because of that uh you know people were kind of like trying to to to to do arbitrage and to redeem and to and to kind of like uh uh uh do sorry arbitrage against ust and the peg broke pretty heavily i think it went down to either 60 or 70 cents or something like that because uh there was like a it was there was too much kind of instability because the market just went absolutely crazy now people were saying you know this could lead to a death spiral when this happens where it just basically feeds in on itself in a negative feedback loop it didn't lead to that um from what i saw

uh and you know it seems to have recovered quite well but then there's been other concerns around you know who's market making ust is it like uh is there only a centralized group of people that are market making this thing and without them would the ust peg also falter it could be that i don't know i haven't looked into that but as i said i'm just bringing up the concerns that i've seen raised before i don't think monet supply ever um followed up on their tweet with what is actually fundamentally wrong with it and they do kind of like work i think they do they are pretty active within the maker ecosystem so you know some people will say oh that's it you know it's just a conflict of interest there it's just people trying to fud uh ust and terror and things like that i

don't know as i said i want to put words in anyone's mouth here but those are the concerns that i've seen uh brought up over over time about it and who you know i mean it seems to be working right right now who knows if it's going to work long term i mean the best we can do is just wait and see there's literally uh for a lot of these things you know they can work for a very long time and then one day they can just stop working uh so we'll have to just see how that plays out in the future so hopefully that gives you a bit of color around that um and you know maybe you can i guess tweet at monet supply or maybe uh kind of like ask around in the terra ecosystem and see if you could get any kind of like actual bear cases for

the for for ust and how it's fundamentally broken and and things like that so so yeah all right a question here from sponge who says can you give a trd on token toke mac i think that's how you say it please and maybe how it relates to uh om and or protocol owned liquidity so i would say that i'm not the best person to ask about tokemak and to get a tldr or an explain like i'm 5 about um from what i know it's basically a way to at least from a high level it's it's it's trying to reverse the i guess like liquidity incentive mechanism so that it goes from being mercenary to actually beneficial to to a project now an example of this is as you mentioned protocol owned liquidity where instead

of a protocol paying out massive token incentive rewards for liquidity they instead sell tokens in um like what olympus pro does with their bonds for example and they sell tokens for lp for for lp tokens so essentially the protocol starts owning their own liquidity provider tokens which means they're they're in their own liquidity and they don't have to pay out as much to bootstrap that liquidity because obviously when you're when the when the dow or the protocol owns its own liquidity it can just keep it in there indefinitely if it wanted to and it doesn't need to worry about the liquidity being pulled uh pulled out out of the um the different pools because of the fact that there's no token incentives being paid out or in permanent loss or whatever or anything like that i mean obviously it's going to suffer in permanent loss as well but you

know if you're the dow the treasury you don't really care as much as an individual for example so that's i mean i'm actually really really bullish on protocol own liquidity as a concept generally i think it is the most quote unquote defy 2.0 thing in d5 2.0 i don't really you know i i hate the term really because it's just a marketing term but i would say that protocol owned liquidity is one of the most innovative things that i've seen in the d5 space in quite a quite a while now and i think that a lot of projects should be at least experimenting with it as part of kind of like the liquidity bootstrapping and i think that's and i think that's what tokemak offers projects as well just an easy way to do this and i know a lot of people are excited about that

project uh right now because of that so so yeah i guess like that's an overview there for you as i said not an expert on tokmak but there are a few experts actually in the discord channel so if you ask around maybe in the d5 channel someone may may answer your question there as well all right one here from project2501 who says off topic but what was the first thing you did after escaping lockdown so i haven't actually done anything yet so um i think my fiance went back to work because she works in hospitality uh and you know obviously restaurants and stuff opened up after lockdown but i haven't actually done anything uh i i plan to do something i plan to go into the city you know sometime soon but really uh my

whole life is is basically at my pc because obviously i work um from home i work in the ethereum ecosystem i do a lot of stuff online and i don't really have too much of a reason to to leave the house i mean i went and saw my mum the other day and my dad comes over from time to time um but you know uh and actually you know that was that was probably the first thing i did after escaping lockdown but that was like a week after lockdown ended which was funny enough so you haven't really done much there maybe maybe i'm just a boring person but for me i prefer to travel kind of overseas rather than within the country i've already done a lot in in melbourne like over the years and not to say it's a boring city but like i love

traveling especially going to like 8th conferences and stuff like that so i'm just waiting to be able to do that which will probably be next year at this stage um i don't believe there's any conferences besides nft nyc which i won't be able to get to as that's early november and i don't think international travel opens um until like probably just after that conference uh last time i saw like fifth in november or something like that uh but i'm definitely going to go to 8th denver in february i'm really really looking forward to that one funny enough that was the last conference i went to before covert hit so i've gone through the whole bull market in my little study here that you guys watch on the refuel and i'd be really really fun to meet all the people that uh that i've become friends with over the last two years so

so yeah all right so uh midi has a few different questions here uh how are exchanges going to offer ethereum via l2s are they covering the bridging costs from l1 to l2 or will they be will buying eight be a bit more expensive on coinbase once they had support for l2s so i don't know the specific implementations that they're going to be using but here there's a couple of different ways they can do it so they're going to have to bridge from uh from from l1 to l2 uh if okay so they don't they don't have to do that so maybe i should just go through the options they can either bridge from l1 to l2 uh for their users they can have a reserve on l2 that they basically um uh have like a pool of capital uh that's like in the coinbase account on

l2 and then they just kind of like do some off-chain accounting where they where a user basically says hey i want to withdraw you know one eighth from coinbase to optimism and then coinbase basically deducts that 18th from the user's uh balance on coinbase and credits them on optimism using coinbase's eighth you know they're each stash on optimism already so they don't have to have like a e stash on on layer one it can be on layer two and that'll be that they're kind of like hot wallet that they use for users um or they can bridge directly obviously from l1 to l2 which is not capital efficient at all so i actually think they're going to go the path of just having a reserve on l2 and being able to do it that way or they can do batch transactions where they can basically pull all the user withdrawals

together if there's enough of them and they'll only have to pay kind of like one transaction fee on layer one and this is what seller network does actually with their public transportation system that they're calling it uh and then you know bring it to l2 and then distribute it out on l2 i think the path of least resistance is probably just going to be that reserve where essentially coinbase says okay well we're going to send like a hundred thousand of our hot wallet eth to l2 because we see you know the to you know to optimism for example because we see optimism has a lot of users that want to go in and out and we're just going to do the accounting through our own systems to keep track of like you know where which eath is going where and who's got what eighth so

that is pretty much a solved problem i think it just requires the exchanges to to build this stuff and to build the systems and to have the infrastructure in place and you know coinbase has already uh said that they're going to be supporting the polygon pos chain as a first kind of like scalability solution and then supporting the other l2s like arbitram optimism i think they said starkware and i'm sure they're going to support others as well there so so yeah that's that's how i kind of like envisioned them doing it uh and your second question any thoughts on atomic composability issues i've read a little bit on on it and how the layer method of scaling can make it much more difficult to do things like defi as it can cause transactions to simply be dropped in their current state rather than reverted this can result in users

holding asses in places they otherwise wouldn't want to i'm specifically trying to wrap my head around this price from vitalik which is uh on eighth research called cross shard d5 composability apologies if this is obvious to other people but would an eth2 erc20 token as you envision it require a copy of the contract to exist on every shard or is there some technique i've overlooked for supporting a token on all chains with only a single contract on one shard so the post that you're reading i remember this post vitalik posted this when uh defcon osaka was going on i remember reading this this is old it doesn't apply to sharding as it exists as it will exist in ethereum so the process you were referring to was when there was like execution charting on the roadmap

now that's completely off the roadmap as far as i know i don't think that's going to be a thing so we only have data sharing on on uh coming to ethereum what that means is that there are going to be no kind of like smart contracts or execution happening on these shards the shards will basically be data availability layers for layer twos so the layer twos will be where things like erc20 contracts and uh and kind of sorry and tokens and kind of like all that or defy contracts and all that sort of stuff happen so uh you know what you're kind of like referencing here as i say is is an older post and it doesn't it doesn't apply to the theorem going forward but also you're kind of like talking about i guess composability across not just you know sharding but layer twos and i

think there are a few different solutions for this there are the bridging protocols obviously which help a lot with that but there's also the arbitrary message relay protocols like uh rari capital is building nova and starkware is building the damm and there's a few others out there as well um i think that are coming online now and basically what they allow you to do is that they are allowed to send arbitrary messages across l2s so you can imagine being able to send a message from optimism and say hey i want to trade uh x amount of eighth x amount uh uh uh you know in on uni swap but i want to source the liquidity from arbitram instead of instead of optimism so essentially you can execute a trade from optimism using liquidity in arbitram and then it all

settles back on optimism for you which i think is awesome and i think is actually mind-blowing because that does rectify the composability issues that happen when you start splitting up liquidity and splitting up contracts like on on the l2 so yeah hopefully that that answers that part of your question but as i said the pros that you're referencing if i've got it right like if i just bring up the post i just want to make sure like i'm pretty sure i'm right about this but uh yeah october 2019 it's exactly def con osaka uh yeah this this post is is is not it doesn't it doesn't apply to to ethereum uh two sharding on a as it will exist on ethereum in the future uh another question here from you on the phone uh what is the island boy meme and what does it have to do with crypto uh i

don't think it actually has anything to do with crypto i think it was just one of those kind of like tick tock things where people could maybe just like pay them to do a dance or like some some i don't know some kind of like song and people pay them to do it about crypto uh as far as i know it it just kind of like has nothing directly to do with crypto but i'm i'm maybe i'm wrong but that's kind of like my impression of it i didn't really look into it because it felt it felt a little bit silly it felt like it's a bit of a silly meme uh but yeah hopefully that answers that all right uh a few here from javier lux who says questions about nfts for business all of us were shocked by the august nft storm in ethereum it was

great to see such massive uses of the network done by these nft for artists since then i'm very interested in nft for businesses i saw some very promising projects and i'd like to know your opinion about them so you list a few projects here i haven't a couple of projects i haven't looked into either of these so you've listed both on protocol um and you've listed cargo x so i think cargo x is what is what is cargo xcr actually i should go over boston protocol first let me just let up the website so i can know what i'm talking about here so it calls itself the decentralized network to enable future commerce uh i think i actually know i think i've seen this before i'm not exactly 100 sure what they do so i can't really answer that um i think they may kind of like sell

different kind of like services and stuff like that as well um and then your second one here is cargo x which if i'm correct it should be a supply chain uh kind of like protocol or something like that so uh no it's okay okay it's document transfer okay um all right so i guess like i should focus on basically just the the meta topic here which is nfts for businesses and how businesses can tap into this stuff i think so i mean we can define what an nft is right non-fudgible token it is basically a representation of a unique thing and business level businesses have lots of unique things right like documents as you've got in the cargo x thing here data like a hash data that is that is unique and stuff like that so i think

that the the kind of like use cases there are you know pretty obvious and i think that we're going to see more and more of these businesses kind of use this stuff they do need the infrastructure as well they need kind of like um uh probably layer two stuff they can't do this stuff on layer one so and then they need purpose-built infrastructure as well from from what i can tell so maybe something like what ey built with nightfall which is like a purpose-built kind of enterprise-grade privacy roll-up uh i think that's something that they would need for nfts for these businesses and stuff like that but i'm not yeah i just i'm not familiar with the project that you've listed and i haven't really paid too much too much attention to this stuff i think there hasn't really been any major success story yet and i think

that's why people aren't really paying too much attention is because the model still needs to be proved and like the demand still needs to be proved like is there actually a demand for businesses to do this i think there will be i just think that we're still pretty early in kind of like this area so i will be keeping an eye on it for sure but definitely not something that i've kind of like looked into too deep deeply at this stage um and yeah your third question was are you aware of any nft for business projects getting traction now or soon that you think we should pay attention uh yeah as i said like i'm not aware of any that have kind of like gotten a lot of traction yet or or kind of or at least has come across my radar but i'll definitely keep an eye out for you

all right one here from bohus.eth who says you often talk about the data availability scaling via shards and the possible number of shards basically depends on the decentralization of the network ak the number of validators but is it the only requirement that enables adding more shards what about the beacon chain would there be a bottleneck i actually don't know it just seems like magic that we actually can scale that way this is the funny thing it actually does seem like magic right it we spoke about like the i guess like the ecosystem in general spoke about the uh uh scalability trilimo for a long time all right where you couldn't get all three uh scaling uh security and decentralization but with the uh with kind of like what ethereum is doing with sharding you can't you can get all three you can

invert that trilemma and basically be able to get uh more scale with the more decentralization that you have so essentially the way it works is that sh when data sharding is is kind of like putting to the network validators will be shuffled randomly across all the shards in groups and i can't remember the exact number of validators that will be able to that will be assigned to each shard but i think the more the the merrian i i'm not sure if the final num the numbers have been finalized yet but you can see how that extends to if we have more validators then we can have more shards right like if we have say you know we have a quarter of a million validators today say that can support 100 shards for example now what happens if we double the amount of validators on the network well that

means we can support 200 shards right and we can essentially double the capacity uh the data availability capacity for layer twos now i don't think it's like that simple i don't think it's like one to one mapped i do think you can play around with the validator numbers and how you know how many validators actually need to be validating shards over time um but that's essentially how it works so it yeah it's not magic it actually works like on the technical level it makes sense on the technical level as well uh and the bacon chain basically coordinates all of this and i think the reason why you would want more validators and you just you don't want to spread the validators out too thin is it's got to do with um not overloading the beacon chain as well because the beacon chain keeps kind of like a track

of all of this sort of stuff we want to be able to keep the chain in consensus and make sure that there's no instability there so we want to uh be able to have like as many validators per shard as as possible um and then go from there so hopefully that answers your question uh i'm going to take a quick break guys i'll be back in a minute or so three all right on to the next question so uh

one here from dom who says when do you think one grey will be worth one usd um if i'm doing my math right here and if i'm remembering correctly uh one guy is like one billionth of an eighth which means that for one way to be worth one usd eighth would need to be a billion dollars so if i'm doing my math correctly and if i'm on if i'm remembering correctly there so i don't know if the usd collapses and hyperinflates maybe eighth goes to a billion dollars and then and then one grade becomes worth one usd all right a couple of questions from max invest uh first one what are the risks on using hot protocol if i withdraw my funds from the l2 onto the l1 using hop are they totally secure once they reach

the l1 so the way hot protocol works is that essentially it gives you kind of like uh a a it kind of like has a liquidity pool that sits between the l1 and l2 and different kind of like l2s and you kind of go through this liquidity pool and uh essentially you get like issued these h tokens which is like basically an iou on on the token um and then you get kind of like issued the token on uh the chain that you're transferring your your assets to for example um i guess the risks would be that like hmm the risks i i i'm pretty sure a hot protocol would have centralized controls in place right now so that's a risk of course uh they probably have like a multi-sig or something like that

considering it's really early another risk would be that maybe your trade or guess your your exchange gets front run or sandwich attacked and you you lose out on kind of like slippage and stuff like that because as i said like it is a decentralized extra sorry an exchange between um different layers there but i'm not too up to speed on on hops architecture itself and what other risks kind of like are present there but generally with these kind of like bridges most of them have like centralization risks around the fact that they have like multi sigs and things like that so i'm not but i'm not 100 100 sure on hop so so yeah hopefully that gives you a little bit of an overview there uh second question can you explain uh ohm to me like i'm five well i i think i

touched on it just earlier about ohm and kind of like protocol own liquidity and things like that but essentially uh om i mean i touched on their product before olympus pro which which basically allows projects to sell bonds in order to uh you know in order to kind of like bootstrap their liquidity and and and get their liquidity into their protocol into their treasury so they could have protocol and liquidity but the way home works itself and i may be wrong here but uh i'll do my best to explain it like like i'm five it's a it's a rebasing token so basically every time it rebases it essentially rebases uh and and puts its kind of like uh the the the uh the difference in the in the rebase or like it's like a profit i guess you could

call it into it into its treasury so it basically has like a treasury that acts as um the final backstop so you could basically say well if the treasury has like 500 million dollars in it which i think it does actually last time i checked it had a lot of money in it actually you could say that you could always redeem uh you know uh the entire kind of like supply of home for for that so there is kind of like a flaw on the price now i think the the kind of like fully diluted value of ohm is four billion dollars or something like that so there's a premium there right compared to what's in what's in the treasury and that premium gets rebased uh um rebased away over time but you know as long as the demand keeps coming as long as people keep buying it then

the premium can stay very very high so hopefully that that explains it like i'm five hopefully i didn't get that wrong or butcher that as i said i'm not an expert on on olympus or ohm um i also think that there's a lot of criticism that gets lobbied towards them as well about this mechanism saying that it's unsustainable that it's ponzi-like i don't really know or buy into that like i don't know enough about it to have like a strong opinion either way it does seem a little ponzi-like at first but i think that it's been around for a while i mean the other day actually was funny we there was a um there was kind of like a crash where basically it was a massive negative feedback loop that crashed the price of arm pretty quickly uh but then it came back up because people just came

in and bought it so i think it has like similar market dynamics to just like any token but also has like the um interesting kind of rebasing mechanism that puts the liquidity and kind of puts the um uh the value into the treasury as well so it builds like a really really strong treasury over time which i think is pretty cool i mean there are a lot of forks of ohm now that they try to do that too um there's obviously klima dow which i've talked about before on the refuel that is trying to basically use that mechanism for good and it was funny we were actually talking about this in the discord channel it's um one of one of the discord channels the other day i think it was yesterday about making like an om fork that basically collected things into collecting collected um tokens into its treasury

and then paid these tokens out to like ethereum core developers so that's what i like about the idea as well is that if people want to play these djen games all these kind of like uh money games as i like to call them um and you know they can like there's nothing wrong with it but let's like see if we can do it for good like let's let's put this money towards something good instead of just uh instead of just speculation so i'm that's that's actually one thing i'm really interested in when it comes to oman and olympus in general is kind of like harnessing that and there's not there's nothing saying that olympus can't use their treasury for that either that'd be really cool if they did that if they put some money towards things like ethereum public goods and ethereum core developers uh

but yeah i think the reason why it's so popular is because it's the the game is very reflexive in either direction uh so you know reflexive being like it can go up really quickly um and you can have like people advertising 100 000 apy because uh you know the value kind of gets fed back into token holders uh as well as kind of like the um the treasury and and then you can have the other way where it's kind of like it can crash really really quickly because people just like exit and then it kind of like goes into this negative feedback loop as well so i mean maybe that's not an explanation five explanation as i said like i don't think i'm i i'm um up to speed with it enough to explain it like on a very very simple level um but i'm

sure you know if you're asking the d5 discord channel or something like that someone more experienced than me can definitely help you there and and probably answer it better than i can um all right so a related question actually from a rob dog who says what are your thoughts on the regenerative climate cl climate finance ecosystem emerging in web 3. last week toucan bridged over 8 million uh tons of co2 into web 3 to support climate and carbon is now being integrated into all the t1 protocols crypto solving climate change seems like a good way to change the narrative and fend off regulation so i don't think crypto will solve climate change i don't think like any one individual or kind of entity will solve climate change i think what crypto can do and as i was alluding to before

and saying saying before is that crypto can basically uh redirect a lot of the degenerate gambling activity and or speculation that exist within the ecosystem to things like public goods or to fighting climate change or to donating um funds to you know political parties and to advocating and lobbying and and bribing and stuff like that that can definitely happen and we've seen it happen in pockets across the ecosystem like obviously git coin plays a big role there we've seen it happen with uh uh optimism donating all the profits from their uh sequencer to public goods and they're donating a million dollars right now and there's more to come from from when that where that came from uh klimer

obviously forked olympus and is uh is um kind of like trying to fight off climate change and trying to get more people who kind of like involved there and i mean i'm just really bullish on that concept in general i i think i wrote about this a while ago actually in the newsletter i think i called it like ethereum money games or something where i basically argued that uh we could basically we could use all these games and i think it was around the time of d5 summer when people were obsessed with these rebasing tokens like esd and stuff like that i think i basically said well a lot of these things really do look like unsustainable ponzi's so while the people play the game why not take a percentage of the value that's generated by the the treasury or the dow itself and just donate it to public goods so at

least if this thing collapses um it did some good for the world rather than just like fill the pockets of some you know some kind of like very centralized uh uh people like maybe a few people the core team or whatever or maybe even the core team loses all their money or something like that so i think from that perspective i uh my view and my thoughts on that is just a very very positive way to do these things but it needs to be sustainable as well you can't basically just say well we're going to spin up this kind of like ponzi game it's going to collapse in a week but in that week we're going to try and collect as much money as possible and then donate donate it to public goods that's okay i guess but then eventually people kind of like clue into that and say well i'm not

going to play this game if i know i'm going to get absolutely you know wrecked within a week maybe they will i don't know maybe maybe people are just so dj and i don't even know anymore but i think like having a sustainable way to do it and having like a road map and having people actually um working on things outside of just getting the money uh is is really positive so that's why i was really excited about clear minds i still am excited about climate but it's going to have to kind of like have their model proven out over time and see kind of like what happens i know the token price itself has been incredibly volatile and i've warned you know i've warned about that a lot on both the refill and the discord channel where i basically said like expect this thing to

be volatile because as much as it's doing good it's still a kind of like money game using rebasing it is still going to be very volatile and be subject to the same kind of whims of that reflexivity that pretty much like every rebasing token is is subject to so so yeah hopefully that that answers your question there rob dog all right a long one here from patrick who says you mentioned a couple of times that you were interested in an ethereum bear case i don't have a clear bear case but i do have a bare thought i would love to hear your thoughts about it especially because you and bankless and some others are talking a lot about modular blockchains so here it goes i'm researching the solano ecosystem right now and as you know they put a lot of emphasis in their marketing around their

capabilities to scale and as you also know they had the approximate 17 hours outage the other day are you aware that they had something similar a couple of days ago again when the ori ico started why do i bring this up to bashan solana no since you're talking so much about modular blockchains you're basically talking as far as i understand about the fact that those blockchains will be able to execute on the need for high amounts of transactions so my bare thought is what if those blockchains fail to deliver those higher transactions and they go offline or down just like solana remember solano is placing a big big big bet on their transactions advantage why would any other blockchains be able to handle it if a really well-funded blockchain company is not able to make it with a war chest of multiple billions thank you

so i actually wasn't aware that celina went down the other day due to the auri ico i i i don't even know if that happened i have to double check on that i do remember that the um solana team basically telling uh uh maybe it was the auri i said maybe it was another one not to not to go live because they were scared it was gonna crash the network but i'll have to check on that but i think what you may be getting confused about here is comparing a layer one and a layer two so the reason or at least like one of the reasons or a major reason why um solana at layer one with all their capability went offline is is i mean and and to be clear this can happen at layer 2 as well but essentially what they're doing is

they're trying to do everything they're trying to do consensus they're trying to do a transaction kind of like sequencing and execution just like ethereum is doing at layer one today but they don't have or they didn't have any way to throttle the demand because they say oh we can do 50 000 transactions per second the transactions are really really cheap uh you can just kind of like flood the chain with transactions to try and you know and it won't break essentially well it did break because what ended up happening was that the bots flooded the kind of like sauna doesn't have a mempool but essentially the bots flooded the network and basically caused the validators to go offline because they were essentially denial of service attack they couldn't handle the load they couldn't process everything

they couldn't process the consensus executing the transactions because there was just such a huge burst of it that it kind of like sent the network offline now to be clear this can happen on layer two and it actually has happened i think before or at least um arbitrary did go offline they sequence it did go offline i don't know if it was because of a similar kind of like consequence of transactions flooding the chain but it definitely can happen it's more expensive on arbor trim because of the fact that uh arbitrary sorry on layer two in general because of the fact that layer twos have to post cold data to ethereum so they have a fixed cost anyway and you will have noticed that layer twos aren't as cheap as something like solana but the way solana has kind of quote unquote fix this is that one they've said to

validate as well you you need better hardware right because if you have better hardware it's less likely that your validator is going to be kicked off the network or golf line will be you know or be overloaded uh okay cool that i mean the hardware requirements were already insane but now it's even more insane and two i don't know if it's implemented yet but they were talking about implemented implementing a quality of service control which essentially what it does it looks for what the network dims to be spam transactions and drops them because what ended up happening with when it went offline was that a bot basically um sent like a lot of transactions to try and get into i think it was like an ideo or something like that and it sent like 400 000 transactions and that's what overloaded the network so essentially what this q quality of

service or qos would do would be to drop transactions that it suspects a spam but by doing that essentially what it's doing is it's censoring because you're basically or you know it's not direct censoring because it's not someone they're you know pushing the button and doing it uh uh in in a kind of like central in a totally centralized way but what you're doing is you're choosing which transactions can and can't be processed or cannon can't be executed because you suspect that you know some of them are spam i i honestly don't like that i think that it is something that works really really well in a centralized ecosystem like for example a lot of um databases or a lot of kind of like websites they use quality of service like this you know you'll probably see something like cloudflare you know they do this to

prevent dos attacks because obviously you don't have to pay anything to access these websites so botnets can typically come together and basically spam a website with um with uh with hits and what cloudflare tries to do is is detect that and drop that and make sure that those things uh those kind of things can't hit the website now obviously uh if you try to do that in a decentralized ecosystem it's a bit different because if you're trying if you're claiming that you're you're you know fully censorship resistant well i mean are you if you're basically um indirectly censoring transactions trying because of your quality of service mechanisms um so so yeah that's kind of like the background on that and like what what i've seen in terms of fixes

but just to your point about like why would would this happen at layer two it can but the thing is is that if the layer two goes offline this is the beauty of the layer one layer two um kind of uh kind of like um thing here uh architecture i should say is that if the layer two goes offline if it goes completely offline and never comes back online and and it's architect architected correctly you can still withdraw your funds from layer one uh and and you know we've seen this play out before as i said like arbitrary offline uh or at least their sequencer went offline they valid validators didn't so you what you could actually do is you could either you could either withdraw your funds from layer one ethereum or you could submit transactions to the um the they call it the inbox the arbitrary inbox on layer

one and those transactions would still be executed as part of the arbitrary system because their validators were still online but you would be you would be paying layer one gas fees instead of uh layer two for example so you'd just be paying normal layer one fees and you can't that's the beauty of that system so you're basically separating the concerns right because layer twos don't have their own consensus they're using ethereum for consensus and ethereum is very very limited at layer one so it's very very very hard um it's not impossible but it's very hard to knock the ethereum network offline with a dos attack ethereum has suffered these things before like the shanghai dos attacks in late 2016 was it was a dos attack that didn't take the ethereum network down but slowed it down a lot and and

basically it made the ethereum network pretty unusable for a little while it was still online but it was very slow to process blocks and things like that so it can happen but but as i said that's why ethereum is scaling in this layered approach because we can keep layer one ticking we can keep the settlement layer the kind of like security layer ticking no matter what and even if there's l2's go offline or fall over it doesn't matter so whereas with solana it went offline for as you said like 17 18 hours you couldn't do anything you couldn't withdraw your funds you couldn't kind of like uh access your funds you couldn't do any d5 transactions nothing nothing at all and that is not what you want that is not what you want from a global settlement layout that is not what you want from an

ecosystem that settles trillions of dollars of value a year um having anything kind of like fall over for for that long a period of time is is not good uh and ethereum has always favored liveness and even the eth2 design favors liveness and what i mean by liveness is basically having the network up and online for uh you know as much as possible so yeah hopefully that gives you background on all of that and answers your questions around around that um i think that you know this falls into obviously the modular blockchain stuff that i've been talking a lot about and why that design is really the future and why it allows us to have the best of all worlds so so hopefully that answers your question patrick got one here from apollo i'll invite you on stage apollo and you can ask your question

hey anthony how's it going hey mate what's going on yeah uh um not too much so i had a question about um i guess the curation of like crypto jobs and um like dows and endow contributor positions um so i feel like there's just so many like different opportunities right now in in crypto um that i'm kind of like overwhelmed with the amount of choice um so i'm like finding it hard to to pick a single dow that i want to contribute to so um i guess my question would be what do you think do you have any advice for like the best way to um evaluate like different dows and different opportunities yeah i mean i i i think i'm with you in

that like i see all the opportunities right now i see all the dows and all the teams and and obviously it can be very very overwhelming i mean as someone who keeps up with the ecosystem i know exactly how much is going on and yeah it's totally overwhelming but i think in terms of deciding which dow you want to be a part of what team you want to work for what project you want to work on it really just comes back to you know what do you want to do like what have you done you know in before crypto what have you kind of like been drawn to within crypto what do you have fun doing uh what are you what you know those kind of questions are obviously very personal and you have to kind of like ask yourself those sorts of things and then

once you have maybe an answer to that or at least like an idea about it you can start looking for projects that match that and you know say you you want to be part of a a truly kind of like decentralized uh organism uh oh or sorry i should say organization such as i mean i know i talk about the index cop a lot but essentially they are a pretty strong dow with a lot of moving parts going on uh then maybe that appeals to you and maybe you want to work on on defy and index products and stuff like that but maybe that doesn't matter maybe uh you know that doesn't appeal to you maybe you would rather work with more early stage dow something that basically just has a core team of people that uh are in the process of becoming a down a process of decentralizing over

time and you enjoy the bootstrapping phase more than you enjoy the maturation stage so there's that aspect as well or maybe you don't want to work for a dow at all right now maybe you just want to work for a centralized team building something that's another option uh there's a lot of those teams still out there there's a lot of new teams i mean i think another question to ask yourself would be what stage of a project do you want uh to to join do you want to join like a brand new project that just raised the seed round that is just really getting started there's only like there's less than five people on the team or do you want to join a mature project that has billions of dollars of kind of like tbl and has a token already and has like a massive

community and is in the process of like making sure their dow can tick uh long term and stuff like that so yeah those are i guess like a bunch of questions i would i would ask yourself before really trying to trying to find what you're what you're into or diving into it because once you have the answers to those kind of questions you can essentially map it to the projects out there and then you'll have probably a much easier time filtering through which projects appeal to you and which ones don't uh so yeah i mean hopefully that that that's at least what i would do uh if i was in your position so i'm not sure on your background what you've kind of done before crypto but that would obviously play a big part into it as well like for example i um it's funny

because like i actually came from a technical background before i joined um set but i joined as a product marketing manager because essentially what i had been doing before i joined set was a lot of i guess like marketing of myself on twitter and growing myself on twitter growing my growing eth and things like that so i actually found out that i really enjoyed the marketing community side of things whereas i was just like i was actually working in cyber security before i joined set so very very different field obviously um and then you know i personally wouldn't you know i love d5 and i love finance related things but i don't know if i would work in another kind of like default company maybe i want to work in something with web3 or maybe i would want to work in uh something with like

the social tokens or stuff like that so yeah it really just comes down to what you want to do because i've written about this in the newsletter before if you you know being passionate about something allows you kind of to really enjoy your work and really be motivated to do the work and get a lot more out of it but if you if you're working on something that you just aren't having fun with and aren't passionate about it just becomes very you know hard to to motivate yourself to do anything and a little bit depressing and i've seen people kind of like fall into that even though they love crypto they end up working for you know a team or a project that just doesn't drive with them and and they have to kind of like start from scratch again so i think just asking the

questions making sure that you understand where you actually want to go and what you actually want to do and interested in before trying to find a team or a dow is probably the best path forward yeah for sure yeah that's very helpful thank you awesome thanks mate all right back to the sheet here so uh project 2501 uh ask is asking another question here appreciate that there are risks with using bridges and that each bridge has its pros and cons and risk level but would be grateful to know what the risks are for using the direct arbitrary optimism bridges as opposed to say connext and hop under arbitrary optimism the closest you can get to risk-free bridging currently i would say yes i would say the native bridges for these

l2s are the closest and will probably forever be the closest you can get to a risk-free bridge because as i've mentioned plenty of times the other bridges all have their own way of doing things they either do a cross-chain exchange they either do a kind of like message relay relaying protocol or they do um you know i mentioned it on the refill of the day across network which is doing like short-term loans for bridging they all have their own trust assumptions trade-offs risks associated whereas the official bridges will always be more secure than than those kind of things and right now as i mentioned before arbitrage and optimism are very centralized they have centralized controls and multi-sigs and admin keys all that sort of stuff i don't know how

much that applies to the bridges bridge contracts i'm sure it does apply in some way but i don't know what what kind of control they have over it but assuming that it's in their final state where they don't have any kind of like multi-sig and no admin keys then yes it would be the most risk-free way to do it but obviously there's a drawback here with the arbitrary optimism bridge it is a seven day withdrawal period um with uh the zk roll ups and and things like that um you don't have that seven day withdrawal period but you you still have a longer withdrawal time uh then it's still longer than instant right it varies from kind of like zk roll up to zk roll up and it varies even more with things like validiums and stuff like that um i think on immutable it's

taking me probably up to 12 hours sometimes to withdraw to l1 which is a uh immutable is a validium so and i think it also depends on a variety of factors as well like how much uh activity is happening because obviously when you withdraw you have to kind of like pay fees and stuff like that so how much activity is happening um you know when's the last time they posted like a batch to out to l1 all that sort of stuff kind of kind of comes into it but yeah i mean to answer your question the most risk-free way is always going to be the optimism sorry the the official kind of like bridges or the native bridges all right uh question here from axiomatics who says do you think cbdc's are likely to come and if so do you see

them deploy deploying using centralized or decentralized tech slash ledger and what effects might this in turn have on our current stablecoin and d5 ecosystem and then you link to an interesting take by uh the reserve banking bank of australia here which obviously i'm not going to read out but so i mean cbdc is already here china has a cbdc and it's been using it for quite a while uh the us is very interested in it europe is interested in it australia has talked about it um so i don't think it's a matter of like are they likely to come or not it's they're already pr and they're coming um so you know to your second point do i see them deploying using centralized decentralized tech i mean i think the answer is pretty obvious it's pretty much going to be centralized but

where different kind of like countries diverge here is that i think china's cbdc is going to be like 100 centralized forever they're not going to allow you to do anything with it besides kind of like um interacting with it on the rails that they control whereas a cbdc in maybe a western democracy such as the us or somewhere in europe or australia maybe they basically say well you you can use this cbdc on any network you want to you can bridge it to ethereum and use it on ethereum right for example but i don't think the actual cbdc itself is going to be native to ethereum i think it will be built on um some kind of like centralized servo database and you'll be able to kind of have like an ou on ethereum for it maybe they do a roll up or something that

would be amazing actually if they did a roll up it'll make everything so much easier um and then yeah if it was on ethereum you'd be able to use it within d5 of course and it would be a challenger to other stable coins and stuff like that but i mean most of the other stable coins are already centralized like usdc and usdt completely centralized stable coins you know paxos stuff like that i think paxos renamed themselves to like usdp or something like that or um but yeah i mean that would just compete with those those kind of things there now could they be bigger i mean of course they could like and you know maybe maybe the um the central banks and the governments basically say well you can't issue stable coins that uh that are tied to our native fiat currency uh because we're doing that and basically kill the

competition i don't know if they would do that i don't maybe some of the countries will but i don't imagine somewhere like the us doing that uh because it would just like i mean not only would it push a lot of innovation away from the us but it would also kind of go against their stance so far where they seem to be i mean they're not taking a hands off approach but they seem to be kind of like talking a lot about doing a lot of things but not actually actioning on it uh because it's just so much i mean within the us there's so much kind of liberation that has to happen on these things and there's so many people pulling it in different directions so yeah it remains to be seen kind of like what that's going to look like but i would i would

just like i think it's safe to assume that cbdc is generally are just going to be totally centralized i mean it's called central bank digital currency right that's in the name so yeah that's that's kind of like what i what i would assume going forward i'll just take a quick drink break here guys uh all right going through the questions so

uh you're on the phone ask is it fair to say that loot is the first metaverse nft um i think all nfts are metaverse nfts right i mean that's the whole point is that you can kind of basically take your nft as it exists on ethereum and place it into any kind of like metaverse that gets spun up uh whether that be something like i don't know decentraland or uh uh then there's a few others right now there's also like galleries and stuff like that so i would say that in maybe maybe you're kind of like referencing the fact that loot kind of like lends itself to having a world built on top of it and that means that that world could be like a metaverse or something um maybe maybe i'm i'm you know i i think that if you take that view it could be considered

the first kind of quote-unquote metaverse nft but i think all nfts are metaverse nfts to be honest so yeah hopefully that answers your question all right uh one here from andreas who says a multinational that for almost two decades was considered the online public square with quantifiably negative results has in an active evil genius co-opted the meta cultural meme but copyrighting the word uh and associating with a corporation actually is a form of cultural occupation as they effectively just laid legal claim to the metaverse as a form of virtual reality should the community try and reject the word or just accept that their subculture's hangout spot just got turned into a mcdonald's this is interesting i hadn't thought of this before this is this is gonna um be an interesting one to answer

so i think that the i don't think within crypto we've ever called it meta right we've always called it metaverse so if they've copper copyrighted the term meta then i don't think that's actually like a big deal because i don't see the crypto community ever using the term just meta but obviously there is going to be a connection between that term and the term metaverse but there were some people that kind of like reacted to this and said well okay instead of calling it the metaverse let's call it the hyperverse instead i think dom the original creator of lute said this i don't know if hyperverse would catch on i think terms like this once they're ingrained into people's minds they just take a life of their own and it's very very hard to change them uh so i would i would say that metaverse is probably

here to stay i don't think that facebook is going to be able to co-opt this i think that the it's kind of it's kind of like a weird thing to think about right because it i mean if if they do co-opt it it means that their metaverse kind of ecosystem has uh has basically been very successful they've been able to kind of like onboard their billions of users into it and they've been able to convince them that you know the facebook metaverse is is kind of like the metaverse there's none other there's no other meta verses out there and facebook is basically the driver of of the metaverse ecosystem it'd kind of be like people saying well or some people saying you know uh the internet is is facebook to them because maybe all they use is like facebook maybe all they use is like a couple of

other websites and that's that's quote unquote the internet to them but really we all know the internet is actually you know a bunch of different things not just facebook or not just one or a handful of websites so just like uh maybe that that's what's going to happen with the with the um the term metaverse or with kind of the narrative surrounding that but it's very very hard to tell um i don't think facebook is going to be the only company for the only major company focusing on this i'm sure a lot of the other ones uh have seen this and are kind of thinking to themselves well we have to get involved with with the metaverse and there's already been some of them like epic games for example have have been kind of like uh talking about this for for a little while there

are a lot of big companies getting involved with the nft scene like for example tick tock and esl with immutable x and there's a bunch of others that i'm you know disney as well actually so when you think of it from that perspective i would say that maybe facebook is trying to call up the term because i mean we you know i think a lot of people agree that facebook as a company is pretty pretty shitty and pretty evil um but i would say that it's gonna be hard for them to kind of like unless their metaverse is extremely successful i think it's gonna be hard for them to convince enough people to kind of like a view um you know meta as like the dominant metaverse and and and you know kind of like i guess like what's the term looking for i think i guess like co-op is probably

the right term here but yeah as i said it's hard to know right now it's too early to tell i think but those are probably just my general thoughts on on that topic all right so uh one here from dom who says it seems like a higher eighth price equals more on chain activity equals more gray per gas equals even more usd per usd per transaction for example if a transaction costs fifty dollars now and the price of eth doubles is there any reason to think the transaction will still cost fifty dollars or will also double to one hundred dollars so this is a common misconception that people make on how the the gas fee market works on ethereum it doesn't work off of the ethereum price yes ethereum price being volatile in either a direction will cause on-chain activity to spike which

means that the fees will logically go up but that that is kind of like what causes the fees to go up the activity the on-chain activity so the more demand there is to use the network the kind of like higher the gas prices go now the perfect example of this is like an nft drop when an nft drop happens the eighth price could either be flat or going down but gas prices shoot up right so it's got so it it's got nothing to do with the actual eth price and that in that context but if if for example the eighth price doubles and then and say the the gas price stays at a hundred grade say the eighth is four thousand dollars gas price hundred way it is eight thousand dollars gas price hundred gray then yes in usd terms the gas price will go from

you know if it was fifty dollars it will go to a hundred dollars be about the eighth price the eighth denomination will stay the same so the amount of eth you will pay for that transaction will be exactly the same but because the eighth price has gone up yes you will be paying in usd denomination more now in saying that it could happen in the opposite direction as well if the eighth price doubles but network activity halves you will be paying the same fee that you are paying right if eth goes to eight thousand dollars and you're paying a fifty dollar fee at four thousand dollars and the network activity hubs you'll be paying fifty dollar fee at eight thousand dollars because as i said network activity is detached from the eth price it is measured in eth terms not the eth usd price and it is dependent on you know

what's happening on the network at any given time so hopefully that kind of like clears that up i know it's kind of it can be counter-intuitive and it can be something that trips a lot of people up but it's probably you know it's funny i think it's got to do with a lot of the um not a lot like all of the gas uh i guess like um websites basically showing the usd denomination because if you look at gwei gray is obviously not eighth grade is a billionth of an eighth so if you look at gwei and say okay well this transaction is 100 way you don't know what that is in eth and you don't even know what that is in usd but the sites will show you this is what it is in usd but a lot of them won't show you what it is denominated in

eth because most people just don't think like that whereas if you start thinking of gas fees in an eighth denomination then the price of eighth becomes irrelevant to that so i think i don't know if that's the right way to think about it or if it's the wrong way to think about it but it is the way the network thinks about it because the network doesn't know what usd is the network knows what eth is and that's how it denominates gas prices and as i said on-chain activity is what um causes gas prices to uh to go down oh sorry demand for for for ethereum block space is what causes the on-chain activity to go up or down which means the fees go up or down there all right a question here from brian peace who says i sometimes hear discussions or debates about ethereum's level of

decentralization at the networking layout for example our inferior and alchemy potential points of centralization are ipfs and file coin alternatives to aws uh or more broadly what does the ideal end state look like for a maximally decentralized network and what are the biggest hills we still have to climb to get there so i would say that infurer and alchemy are points of centralization insofar as they're just like transaction relay so for example metamask defaults to inferior whenever you send a transaction with metamask it is using the infuria infrastructure to relay that transaction to the network so what can infuro do well they can sense you right they can basically say well i don't want to process this transaction from this address i'm going to censor it

they can also go offline and that means you won't be able to do any transactions unless you change your rpc on metamask to your own full node or to another provider you won't be able to get transactions through because your p backing off another node for example um and the same applies to alchemy and all the other similar providers of course um but uh and then you ask ipfs and filecoin alternatives to aws um on the data storage side yes on the compute side no so aws i guess is the data data storage and compute um i don't know i i i mean i think file coin wants to do compute but right now it's more of just like data storage so i would say that like it's more of an alternative to something like a dropbox uh than an aws um and then you said or more broadly

what does the ideal end state look like for a maximally decentralized ethereum network the ideal state for us for ethereum to be maximally decentralized is for every user to run their own full node and to use their own full node to process their transactions now of course this is not um viable this is not practical this is not something that should be expected of of end users and then so okay so what's the next best thing if we can't get every user to run a full node run a like client runner and and what what's a like client well our light client which is coming with stateless ethereum and is part of like an effort that ethereum is going through right now what this does is it allows you to still make ensure that you get like a similar security

to a full node without having to download and keep the stat the whole kind of like active state of a full node in place so it's very very lightweight and you know in terms of teams working on this there is obviously the ethereum core research and dev team itself working on it as part of the stateless ethereum roadmap but lodestar from from chainsafe is is trying to be a client that you can be run as a light client um and be on right on kind of like hardware such as a smartphone so the ideal end state is basically having a robust light client ecosystem that allows you to have similar security properties and guarantees to running your own full node without having to run your own full node um and being able to relay your transactions using that instead of relying on a uh

infrastructure provider such as infuria um so yeah that's that's kind of like what it looks like and and how i guess like infuria and alchemy and those services relate to centralization and decentralization all right uh one here from amit23 uh hey anthony in the daily grey refill you mentioned that you run multiple nodes to stake your eighth and it's the most secure and trustless method i'm interested in setting up and maintaining self-host self-hosted ethereum nodes i wanted to check and what are the best options available to get started with this i've set up my own bitcoin note on raspberry pi in the past using um rule is there an umbral-like solution available to run a node for ethereum network on raspberry pi so for those of you who don't know ambrose is like a private server that you can have um and

there is a kind of like thing that is very similar to umbral within the ethereum ecosystem called dap node so what dap note is it's basically a thing that you can install on i mean you can install it on anything really um and kind of like run it and then you'll be able to kind of like have a nice little graphical user interface that allows you to essentially have like a one-click deployment of nodes so you could one-click deploy in ethereum full node an eth2 validator an e2 beacon node um and i'm pretty sure you can do that on a raspberry pi as well um i have to check if that you know i'd have to check if they support raspberry pi's um but yeah that that node is similar software to to umbral so uh and yes you can run validators on raspberry pi's as well

within within um eth2 which is really really cool too so yeah hopefully that answers your question but also if you want more color around kind of like all the options to you there's a really great article in bankless um i i think it's titled running an eth2 validator for the barely motivated by justin larue if you want to just google that you'll be able to come across it uh and it's in the bankless newsletter it was really great read about i guess running these two validators on different hardware and running you know running different validators and kind of like i think that there's a dap node guide in there as well all right a question here from marquis who says along the theme of monolithic modular blockchains it seems that you could already build adapt a layer to scaling solution using the beacon chain as the consensus layer why are the

current l2 projects arbitrary optimism zk sync et cetera are not doing this or maybe they currently are developing and testing this or maybe there is some fundamental technical problem now the beacon chain is stable l2 project should be using it to provide the consensus layer why do we have to wait for the merge to occur maybe this has already been discussed but would like your views on this so it's not currently possible because all the beacon chain is doing right now is coming to consensus on itself really um coming to consensus on uh you know just empty blocks because there's no transactions being processed nothing because they can't be it doesn't have a virtual machine it doesn't have a way to um store call data you can't store kind of like cool data on on the beacon chain itself and you can't uh store proofs on the beacon chain so

you can't use the beaker chain as your consensus layer for uh for kind of like these l2s you need like an execution environment for example um so from that perspective could we do it could we add like an execution environment to the beacon chain yes you could you could enshrine an evm or a light evm in the beacon chain to be able to uh directly like bypass i guess like eighth one uh the eth1 chain altogether and just use the beacon chain this is an idea that's actually been discussed i'm pretty sure there's an eighth research post about it but i don't see it happening until after the merge to be honest and maybe it doesn't happen at all because maybe it adds too much overhead to the beacon chain because the whole point of separating out the consensus layer and the execution layers is that we want the

beacon chain to be as lightweight as possible because because the bigger chain already has a lot to deal with and a lot to keep track of and we don't want to add more complexity and load to it that is necessary so it may not happen but it's definitely an idea that's been floated around already but yeah it's not possible today unfortunately all right a question here from tom descent who asks with immutable x if they crash or go offline can items be recovered via some escape hatch i understand that they store some data off chain but is the data required to prove ownership or just extra metadata if items can't be recovered is it an l2 secured by ethereum so as i mentioned before immutable x is a validium which means it stores its data off chain if they're off chain data availability or wherever they're storing their data off

chain if that goes offline and you can't access it then you can lose your funds in that your funds will be frozen because you won't be able to use that escape hatch on layer one because you don't have the necessary data to use it so yes this is why people are calling a volidium not a true l2 because a true l2 by the classical definition always allows the user to withdraw their funds from layer one they don't need any extra data from any other sources um whereas with the validium you do obviously because the data is stored off-chain so um while the data is available to you of course you can use that escape hatch you can withdraw to layer one but uh if yeah if you're um if if that data kind of availability committee goes offline then you won't be

able to unfortunately so that's the trade-off and the trade-off is made because you want to achieve more scale right like you still get this do you still get some security from ethereum because you're posting the transaction proofs um the batches to to layer one so it's still better than like a different chain for example but the trade-off is that you get massive scalability at the cost of you know security uh maybe not maybe security is the wrong term but i guess like the cost of basically being able to to withdraw your funds at any time because if it went offline then you'd have to wait for it to come back online to get that data or you know if if someone else had the data and they would be withholding it from you then they could be censoring you stuff like that but in return you get

basically free transactions like immutable x is free because they cover the gas cost because they're so low because the most expensive part of a layer 2 securing itself on ethereum is posting call data the the posting the batches of the transactions is extremely cheap and they can get cheaper over time because you can compress those and um with bls signal signature aggregation and similar techniques whereas the cool data the only way to get more uh to get that uh to have cheaper cool data costs is sharing and obviously that's not coming for a little while so i would say that validium and similar constructions are maybe short to medium-term solutions until we get to a point where we have enough shards to basically make it so that storing call data is trivial on on on layer one uh but uh yeah that's the

kind of like the trade-offs there and also you should go to l2b.com they explain everything about the trade-offs the security concerns everything for every l2 they are amazing so definitely go check out l2b.com and you know you'll get a full breakdown there of everything all right last question from adam ross on the sheet here then i'm going to check the ama series channel for additional questions um from listening i know that bridging exposes you to the bridge contract my question is if from mainnet you use binance bridge to bsc then use connects to bridge from bsc to arbitram then seller to mainnet if say connex gets hacked or are your funds at risk still or is it only based on the last bridge you used

so this is where things get a little bit murky with bridges and complex i think the simplest way to explain this is basically explaining um how kind of like native assets differ from foreign assets so for example ethon ethereum is native right eth is issued and secured by the ethereum network it is native to ethereum and any eth that gets taken off of ethereum to go to another network is considered foreign either so for example when you send your eth to bsc or to the polygon pos chain onto or even to a layer two it is foreign to that network it is not native so let's use a simpler example than your your example and then i'll kind of like dig into yours just to illustrate my point here if you bridge across your eth to the

polygon pos chain um that eth is not technically bridged it is an iou you lock your eighth in a bridge contract on layer one ethereum then you get minted these iou eth on the polygon pos chain and you can go do whatever you want with it from there but the thing is if the ether in the polygon pos chains contract was to get drained or stolen or if the contract was for some reason to bug out and just get frozen and no one could interact with it anymore your eth on the pos chain but logically should be worth zero because your ether on the pos chain isn't is an iou it is not your actual eth it is not recognized by the actual market now you know what's gonna so now would it actually go to zero maybe not it would

probably be valued at some premium on the on the pos chain but the thing is is that you can never bridge that either back to ethereum from the pos chain to get native e you'd always be stuck with this derivative this iou that you bridge it across because you can't actually unlock the official eth or the native eighth on the layer one chain on on the ethereum layer one so from that perspective that's just like a basic example of of why it's not actually a bridge it's more like i mean i don't even know what the right analogy is to be honest because a bridge literally means you're crossing the bridge you exist in one state on at the start of the bridge and then you bridge to the end you show you walk across the bridge and then you're at the end of the bridge and you exist in

another state whereas the way kind of like uh the bridges in crypto work is that you're basically saying that okay well i'm going to you know stay at the start of this bridge but then i'm going to basically clone myself to the other side of the bridge but my the the the myself at the start of the bridge isn't able to move unless the the clone comes back and kind of like merges with me maybe that's not the greatest example analogy but that's what i'm coming up with at the top of my head so to your question about like bridging from kind of like from binance to bsc then from connext to sorry then using connects to bridge from bsc to arbitram and then seller to mainnet it depends on what asset you've breached so main that i'm assuming i'm assuming

you mean ethereum mainnet if you're the last asset that you got was eth on ethereum then you're you're not at risk at all because you have native eighth on the ethereum chain the risk is somewhere else the risk is whoever's got like ethan maybe the connects kind of like pools or somewhere else on one of the other networks or whatever else or maybe they've locked it in some other contract but if you've just got vanilla ether it's not in a smart contract it is literally vanilla eighth in a normal ethereum wallet an externally earned account eoa normal ethereum wallet then there is nothing that can happen to that that can't be taken from you it can't the transactions can't be reversed you can't be exploited or hacked or anything um obviously uh you can be hacked and you're in the normal case where your it can be

stolen maybe your um seed phrase gets uh gets compromised but in terms of the bridges no they pose no risk to you anymore if eth was the final asset that you received now if things get get murkier it's like okay what asset did you finally receive did you receive on each mainnet even if you received something that is is native to native to eth mainnet such as usdc if something happens usdc circle the issuers of usdc have centralized controls which means that say there's a massive kind of exploit a billion dollars of usdc gets um gets kind of like uh gets frozen or gets kind of like hacked um that you the um circle the issuer can do one of two things they can freeze those funds and then just

reissue the usdc which is probably the path of least resistance or they can socialize the losses across all usdc holders and essentially you might take a haircut now i don't think that would happen i think the formal case would happen where they would just freeze the funds and reissue the usdc and then it'd be fine like everything would be one to one backed again so um but then you know say you you you kind of like bridge a native asset from another chain onto ethereum so you're going kind of like uh going backwards here so say you i don't know if i don't know if this is possible i think it is say you bridge across avax from avalanche to ethereum and you'd get something like a wrapped avax well if the bridge on the avalanche side is compromised for whatever reason

or frozen then your avalanche or your avax sorry or that's wrapped on ethereum then it because it's not native to ethereum it's in the same kind of like boat it becomes either worthless or it loses a lot of its value because of the fact that you can no longer redeem it for the actual avax on avalanche so i guess like the tldr is that it all depends on what the asset is and is it native to the chain do you actually have control over it or is it still stuck in a smart contract like for example if you have ether and a smart contract on ethereum well the eighth isn't under your control it's under the smart contracts control yes you're the only one who can withdraw it from it but that's in the in the um the the uh the honest case like the um the proper case

say the smart contract has a vulnerability that gets exploited and your earth gets stolen out of it well then it's not your 8th anymore is it it's someone else's eth right so unless they return it so it's kind of like just all comes back to the fact that native assets uh are always kind of like um secured by their native chain so if your eighth is on ethereum in your own account nothing can happen to that in terms of like bridges being exploited or any or any or anything around that but if your ether is on another network you're reliant on the bridge's security at the end of the day and you're also relying on the other network security too uh for example like if for example the polygon pos chain was to go offline i'm pretty sure this is how this is how the pos chain works maybe

the pos chain isn't the best example because i'm not totally sure but for example bsc if you bridge your east to bsc and the b and and bsc goes offline you can't get your eth back to nate you can't unlock it on the ethereum side so you're at the at the mercy of the bsc chain uh and and like similarly for like pretty much most of these side chains so that actually differs from layer twos uh if you actually use the native bridge to go from layer one to layer two then you're only at the mercy of the of the native bridge and you can always get your funds back out but if you were to use one of these other bridges it gets even murkier because say you kind of like bridge into um layer 2 via i guess like connect store hot protocol something

like that depending on the asset again um and and and and depending on kind of like uh the the bridget you're using there could be some kind of like uh exploit that happens or there could be somewhere you could lose your funds or lose the value of your funds so yeah hopefully that gives you an overview this sort of stuff gets very complex because of the fact that bridges can talk to other bridges can talk to other networks can talk to l2s can have different assets can have non-native and native assets and it's a very big mess and that's why bridging is both really important to get uh to get right from a usability standpoint but also from a security standpoint because i do suspect that one of these things are going to get exploited in a really big way one day it's just in my mind it's inevitable

and i think we're gonna see what happens in that case like and and does you know does the exploited funds get frozen if they centralize assets and get reissued um how you know do do the bridges kind of like exercise centralized control and kind of like try and retrieve some of the funds uh how many users get hurt like what happens to the actual native assets it becomes a bit messy so i think you know it's still early days for bridges we're going to see how that all plays out but uh yeah definitely something to keep in mind for sure all right i think someone in the audience wants to ask a question sponge i'll invite you up hey anthony all right hey going i was just wondering

i was just wondering if you hadn't explained it like i'm five for our schools thank you for what sorry rory's fuse pools oh um rory yeah yeah yeah yeah i got you um i i guess which por which part of it like i i mean i'm not too up to date with rari but i know the fuse pools are basically um are there money markets or yield aggregation pools uh i'm getting maybe i'm getting confused here maybe maybe it's best if you explain to me kind of like your understanding of it and maybe i can fill any gaps that you have with your knowledge uh i just thought it was like um personal money markets like how tetranode created uh

his own money market yes yeah yeah yeah no i think so i think you've got it right it's basically personal money markets and you know being able to to play around with arbitrary assets without having to br to basically get them approved as collateral on other money markets like rv and compound that's that's pretty much the limit of my knowledge on on rari's fuse pools unfortunately i haven't i think that's been in my backlog for a while to looking more into it because i've i have seen tetranode posting about it but um maybe it's worth asking tetranode i don't know if he responds to dms but i'll look into it more and hopefully have more color uh and maybe talk maybe you can even ask in the discord channel as well in the d5 channel someone will be able to answer you better than i can

maybe all right uh on to the questions in the ama series channel then i'm going to wrap this one up so one here from a dj who says what will happen to the price of eight after validators cannons take their 32 eighth um so the so okay maybe i don't know if if uh if if this is something that that you're confused about but i see there's something this kind of like point of confusion a lot on the ecosystem the merge so the eighth one to eth2 merge or the consensus execution layer merge doesn't enable withdrawals withdrawals come after the merge probably two to three months or something like that after the merge um and and you know that

when the merge happens no no withdrawals can happen at all um for staked eath and also no withdrawals can happen for any of the new eth that is being uh that is being issued to stakers and also none of the fees can be can be withdrawn either so no withdrawals at all but when the merge does sorry when the withdrawals are enabled about three months after the merge there is actually a hard limit on how many eth can be withdrawn from the validator sets per day it is currently just under 30 000 eth per day can be withdrawn and it goes into a queue and you can see this queue it's fully transparent you can see how much ether is kind of like being withdrawn now obviously a lot of people would assume that anyone withdrawing the eighth from staking is going to sell it

i wouldn't be so quick to assume that i would think that maybe you know some of these people just uh either you know some i mean a lot of them would probably sell it right a lot of them probably withdraw to sell but there are other uses for your eth right maybe you want to put it in defile something like that maybe you want to restake using one of the staking derivatives because you want to get like uh st for example and then use that within d5 so i don't know what's going to happen to the price to be honest i think that it's just going to depend a lot on what the market's like at the time like you know for example if has the eighth price gone really crazy i'll be at something like twenty thousand dollars before withdrawals are enabled and um was it just gonna crash

anyway regardless of of of withdrawals being enabled it's it's very very hard to tell because we don't know exactly when withdrawals are gonna be enabled i would say that i mean if we get the merge in june um i'm just saying june don't quote me on that please but i'm i'm speculating here but i'm just trying to give a bit of dates here if we if we got the merge in june and then like three months later we got withdrawals being enabled you know maybe uh maybe it could crash because maybe we went up a lot in price i i don't know it's very very hard to tell so um hopefully that gives a bit of color around what withdrawals actually look like though all right last question from crypto bunker i want to know the best way to persuade someone who has never touched

crypto to create an ethereum address nothing to do with investing but just to make an address on metamask what are the best reasons to do that now um i think the best reason for like a totally new person to crypto uh it depends what they're into are they you know do they want to kind of like uh like maybe it's a bit difficult because without knowing what the person's into it kind of like becomes hard to to know what to suggest to them but i would say that if they want to say have you know say they have like a bunch of money in their savings account and right now they're not earning uh a yield on their on their savings right because the yields are very very low in the traditional system and say they want to like earn a higher yield well you can get 10 plus on

stables in in low risk farms within d5 so that would be something that might be interesting to them and might get them to start you know and create an ethereum address um the nft ecosystem are they into art are they intercollectibles do they like digital collectibles specifically do they do they want to get more involved in that kind of scene are they into um human coordination like dows and stuff like that are they into social tokens are they are they into being into different communities within crypto that could be something they're interested in uh do they do they like the maybe the decentralized website of things like you can try to explain to them hey you know there's this you know there's this whole kind of like movement to build decentralized web uh sorry the decentralized web out and web3 and this this thing you can get where you can set

up your ethereum address and then you can create an ens that allows you to assign your kind of like name to to your ethereum address and basically have that as like your on-chain identity or online identifier so there are a few different things there that that people might be interested in but as i said without knowing what the individual is interested in it's hard to suggest something specific but i would find out what their what you know what they're interested in and then find something on ethereum or an app on ethereum that they can use to get the most value out of i think you know as i've said before plenty of times nfts are definitely going to appeal to the widest set of people but i do still think that defy once people realize the yields that they can get in in low risk kind of places

especially you know some of these apps are offering like easy ways to onboard into these low-risk yield farms or whatever you want to call them i think that appeals to a lot of people as well and you know they may say oh that's too good to be true and then you just you can explain to them well no it's not it's just this you know new finance eco-financial ecosystem here that we have and it's it's it's not part of the banks and you know sometimes it's a bit hard people to grok that as well they basically say well i don't trust that because um you know what happens if i lose my money blah blah what are the protections in place so from that perspective we probably still have a very long way to go to to kind of like be more normally friendly i guess so to speak uh but yeah

first step would be figuring out kind of like what they're into at least loosely and then trying to find something in ethereum that maps to that because i think there is pretty much something for everyone at this stage um all right last question here from uh i think this is rl is your name or ri or r0i um the btc eth bankless episode raised counter argument suggesting keeping ethereum l1 power as simple as possible which eases running a node probably by sacrificing sharding on pos and other heavy data storage activities how would you approach this question um i would say that this is this is wrong um i don't really know what power and pos and consensus mechanisms have to do with uh the ability to run a node it is more about um

kind of like as you mentioned like data storage or i guess like the block size the gas limit um than it is about the consensus mechanism so yeah i don't know if maybe maybe you maybe you're kind of like mistranslating the question or maybe that was kind of like what they said because i i know what debate you're talking about and honestly the two people on the bitcoin side don't really know much about ethereum so i don't know if i'd really listen to them when it comes to these sorts of things but uh i mean you you mentioned sacrificing sharding as well well as i talked about before the ethereum network actually gets more decentralized sorry it gets gets more scalable with the more decentralized it gets and we only add more shards if we have more validators so from that perspective i don't know i

don't i don't see why it's uh why would we we would stay on proof of work um and i mean that's a deeper question as well like proof of work versus proof of stake stuff like that but really the um the cost of running a full node is more about the the state size which comes back to gas limit and more about kind of like the the heaviness of the chain than it is about what consensus mechanism you use so yeah hopefully that answers your question there but i think yeah i think i'm at the end so if unless anyone else has a question in the audience i'm going to end it there for today all right cool well yeah thank you everyone for joining another daily great ama as i said this has been recorded it will be uploaded to youtube within 24 hours it'll have timestamps and

everything attached to it and we'll do this again in two weeks uh and i'll chat to you all on the discord channel thanks everyone