Dencun is coming, Rocket Pool roadmap and more - The Daily Gwei Refuel #650 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of The Daily refuel where he kept the latest news in ethereum ecosystem I'm your host and this designer and as the 4th of September 2023. all right everyone let's get into it so I've been away since Wednesday uh that was when the last refuel was I did say that I would do one on a Saturday uh but unfortunately had to had to kind of skip that one there so there is a lot of news to get through as you can see from all of the tabs I have opened so I'm super excited to get into today's episode but before we do just wanted to give a quick shout out here that I'm going to be attending uh and a Meetup hosted in Melbourne on a Wednesday night called liquid staking for dummies this is going to be a lot smaller than the

previous meetups that I've been to if some of you have been there but if you're interested in this I'll link it in the YouTube description below but yeah it's it's based in Melbourne obviously where I live so not sure how many of you are based in Melbourne as well but I'm going to be speaking there um about liquid staking alongside uh some other folks so it should be a really great a little meet up there so as I said it will be smaller you do need to RSVP um on the website here which I'll link a new description below we just wanted to give a quick shout out there and that that's happening on Wednesday all right so we had all the ETF news right last week with the the grayscale stuff where grayscale won their lawsuit against the SEC and then price went nuts

and everyone started getting really bullish again and I think I remember saying at the time that I expected the price to sell back down because I don't think there's any new money still in the ecosystem right now I believe that it's just Traders playing the games uh and of course if it's just the same money sloshing around then we're not going to have any sustained pumps and that's exactly what's been happening for for quite a while now and you guys will recall that I've been saying that I thought the rest of the year or basically all of 2023 would just be sideways crab market action which is basically what it is and obviously there's still four months left uh wait yeah four months four months I'm doing my math correctly there uh four months left of the year so you know things can happen things can change things can

happen quickly maybe in December we have like a pump and we break out of our crab range but I don't know I'm not necessarily feeling that I I'm still feeling like q1 Q2 kind of thing of when when that starts to happen uh next year uh but the reason why I bring this up again is because all of the our ETF applications got delayed last week so this was not unexpected for them to get delayed there was no way the SEC was going to approve them especially after they just got egg on their face uh about uh from losing that grayscale case and as I mentioned last week there's a bunch of speculation about what the SEC is going to do now and it seems like they're just going to keep delaying they may just delay until the final deadline as you can see here on this screenshot

which I'll link in the YouTube description below the final deadline for all of these ETFs basically Falls in March of next year except for the arc one which is on January uh 10th yeah I believe yeah sorry I'm trying to read the dates here but it's American dates and it's like backwards it's hard for me to read it sometimes but um yeah so 10th of of January is the final deadline for the arc Bitcoin ETF Bitcoin spot ETF the rest of them have deadlines ranging from the 15th of March uh to the 19th of March and there's one that has a deadline of the 19th of April and the 11th of of may now obviously all of these these can be just approved together there's no need to wait for any of these deadlines to to approve it but

if the SSA really wanted to be Petty they would basically wait until the final deadline and then just approve them all at once now the thing is is that obviously Arc has a deadline of the 10th of January which is two months before the rest of them uh it's two months before you know the majority of them here so it remains to be seen what the SEC is going to do are they going to just approve them all in January or are they going to forced Arc to refile and then approve them all in the middle of March there either way I feel like we're going to get an approval I I'm very bullish on that uh and as I've said before they have to approve all the ETFs at once else they'll probably open themselves up to even more lawsuits that they stand to lose so yeah it's either

going to be in January or March probably if they do deny them all on the final deadlines and and deny them all in March then they all have to refile and again that gives the SEC um you know another kind of whatever it is uh six eight months or whatever I don't know how long the the period is here in order to approve them all again so that might mean that they improve them all at the next year but in terms of timing and in terms of how I think about these things as I've mentioned before the Bitcoin harvesting is in April next year so how like uncanny would it be if all of these ETFs just get approved in March right so like literally a month before the harmony oh sorry two months before the hardening um uh no no no no it's a month sorry I was

thinking I was thinking of May there so a month before the harvesting happens I it's just you know it's too it's too perfect to be coincidence and I don't know I I don't want to fall for any conspiracies or anything like that but if you were you know having a Bitcoin ETF uh and you wanted to get there's many inflows as possible as fast as possible it'd probably be better for it to be approved at a time when the narrative starts picking up again obviously around the Bitcoin harvesting The Narrative definitely picks up again and I think a lot of the ecosystem is expecting 2024 to be just a much more positive year for crypto so it seems like that that might happen there so yeah these delays uh kind of expected at this point um and as I said the final deadline ranges from January to ma to

May next year but the majority of the ETFs are in March but uh they could just approve arcs on the you know by the 10th of January and then also approve all of the rest of the ETFs at the same time and so we could get the approval as early as January or they could just approve them all this sometime this year right so love to keep eye on that but as I said like delays are expected at this point in time but we're getting closer as time goes on all right so the uh Department of Justice uh uh their tornado cash indictment apparently got the law wrong that's according to a new report published by kravathyar which is a working paper uh written by their lawyers uh which examines fincen's 2019 guidance on money transmitters in the

context of the tornado cash indictment and now Jake chavinsky quote tweeted this and said this paper does an exceptional exceptional job explaining how the Department of Justice ignored fincen's guidance on the definition of a money transmitter if Vincent's guidance was right the Department of Justice can't win on this charge now I think that's kind of like the general maybe kind of gist of it when it comes to this tornado cash indictment against the um the developers they're trying to get after them for like money laundering and knowingly profiting for money laundering because they were they consider them a money transmitter and as Jake says here if the Department of Justice loses based on fincen's guidance young loses that point then a lot of their case starts to fall apart very quickly so we'll have to

keep an eye on that but that is definitely a positive in the face in favor of the tornado cache developers here but it remains to be seen how this shakes out obviously the US uh really wants to build a strong case here because they need to present a strong case for why they also sanctioned tornado cash as well uh and and also dissuading anyone from building similar tools that's kind of like their ultimate goal right if they're sweating people from building similar privacy tools um in the name of I guess like protecting their sanctions against countries like North Korea and anti-terrorism financing and all that stuff there but you know the the I guess like cynic in me thinks it's also because the US just doesn't like privacy right they don't like it when people have privacy I mean no government really likes when people have

privacy and especially not when they have Financial privacy which is exactly what tornado cash offered and they realized that tornado cash was quite literally Unstoppable and the only thing that they could do was sanction it they couldn't shut it down sanctioning it did Kill A lot of it right they had that chilling effect there where a lot of the usage was was kind of drowned out because obviously if you're a US citizen or or person then um you could face up to 30 years in prison massive fines if you were to use Toyota cash today so it's had that massive chilling effect but it still exists right it's still on the Chain you can still interact with it you know I think the current um censorship on the relay level is at like 50 or 40 or something so you still have a greater than 50 chance per block

to get your transaction included so you know the sanctions while they did chill a lot of the usage here they didn't have the effect of shutting it down completely which is just Testament you know a massive Testament to ethereum censorship resistant capabilities uh yeah but you yeah you can read this report for yourself I'll link it in the YouTube description below uh for you to do so all right another big win in the U.S courts was a a case that was uh against uni swap being thrown out completely so you can see here that the judge in the southern district of New York uh throughout this case on August 29th against uni Swap and also found that ethereum is a commodity not a security so just another precedent uh building

kind of exercise here that labels ether commodity and not a security which is very very cool to see um and it also implied that Raptor BTC is a commodity um but but apparently that's much clearer less clearly stated now for the case against unisop itself Hayden put out a tweet Thread about it um and and and and basically describes exactly what the um the logic was here I think the original case was that they were suing for damages or something uh so these plaintiffs here you can see at the top here we're suing uh unisop Labs or I guess their official company name is Universal Navigation Incorporated um they were suing them uh I think because they wanted to get some kind of like recourse for something that

happened in the unisoft smart contracts but as Hayden says here um the uh basically the court found that the smart contracts were immutable um the uni swap team doesn't have any control over them and doesn't actually have any any direct uh I guess like um uh workings within them they're not uh money transmit or anything like that and yeah I mean you can see the full breakdown here in Hayden's uh tweet thread but what's really positive about this and maybe you missed this is that the judge presiding over this case uh Catherine uh failure here failure uh Polk failure here um she is the judge that has been assigned to the coinbase versus SEC case so it seems that she understands how this technology Works which is obviously a huge positive for

coinbase because obviously the coinbase versus SEC case is a lot larger than this case and has a lot more implications so it's great to see that a judge uh that knows what she's talking about has been assigned uh to this year but yeah as I said you can read Hayden's Twitter thread I'll link it in YouTube description below it's got full details on the unisop case itself and the best juiciest bits from the chord documents here all right so just something I came across here that uh eathprofit.eath tweeted about so apparently the Colorado Department of Motor Vehicles now accepts eth for online services you can pay in eth uh for basically I guess renewing your registration and renewing your license and all that stuff there and you

can see here that uh that cryptocurrency is an additional form of payment for for this year and I'm not sure what crypto's they they support I would assume BTC and eth are first on the list I'd be wondering if they support stable coins but I haven't checked it out myself no surprise here that Colorado is I guess like Progressive considering that East Denver is one of the biggest ethereum events and it's host it's hosted right in the heart of Colorado here so yeah I wasn't surprised by this but generally just really great to see this so yeah if you want to pay for I guess your your registration and your license renewal and things like that or even potentially uh fines I guess like speeding fines and things like that and I'm not sure how it works in the in the US here um you can pay them using eth today

which is very very cool all right so we had another fresh all call devs update from Tim baiko on September 1st here going over everything I guess that happened on the call the meaty part of it was this tweet here that uh where Tim says once we're happy with the testing on devnet 8 we'll launch devnet 9 which includes the final spec changes for the upgrade most notably they're pre-compiled to regular contract change for Erp 4788 um and here's the the work in progress spec so dencoon is coming guys uh I have had no reason to change my November timeline estimate here obviously we have the new uh whole ski test net a whole ski test net going live or September 15th which is fast approaching it's 11

days away right now and that is the merge anniversary by the guys by the way guys um it has almost been a year since the merge can you believe it like I can't honestly it's it it felt like just yesterday that we did the merge but yeah the year anniversary is coming up that's when that new test net will launch this devnet 9 I think is launching this week uh to be honest I haven't seen any tweets about it yet and about kind of like um uh when exactly it's going to be launching but it's going to be launching very soon I would assume that there may might be one or two at most more devnets after this and then it seems like they're just going to be going along to to test Nets because as you can see here pretty much everything is done

everything is merged they're just doing the devnets like in terms of the pull requests and all the EIP stuff um it's all done uh and these yeah I think they'll be devnet nine and devnet 10 potentially maybe diving at 11. I don't know I I feel like two at three at most more devnets but these devnets are usually done pretty quickly and then we're going to move on uh to the test Nets obviously doing sapolia probably first and then doing holeski uh next that brings us into probably October sometime and then November for mainnet that's that's the kind of timeline from here guys so we are well on track in my mind to get Den Kun in November which obviously includes aip4844 which is Proto dang shining which we're all very excited about but there are a bunch of other eips in this app upgrade as well

and that will round us out for the year and I would assume the next upgrade will probably be sometime in April or May next year or something like that it it may be so I guess like if you if you take it as like a six-month Cadence of network upgrades you would have to say yeah basically May next year would be the would be the next upgrade um and but I think that the next upgrade is probably not going to be vertical trees or statelessness I feel like that is probably going to be towards the end of the year so if you say that may will basically be a collection of eips that have been kind of pushed out since the merge and and they haven't been included yet but they're ready to go you could see it we could potentially see the next upgrade in April and the next upgrade

already has a name uh I think it was called like Electro or something like that um or there was kind of like a a ethereum magician's thread on on naming conventions here but that's already being worked on in the background so yeah I reckon April probably May for that and then hopefully uh Again by the end of the year we'll have like a November bar kind of vertical trees or something like that um which kicks off The Verge obviously uh there but yeah very very close to dencoon now all right speaking of ethereum call Dev related things Mike noodle has a new eth research post all about slashing in ethereum so this is a a new AIP called eip7251 and the TR um and the slashing penalty analysis

that Mike muda has done is that he says the primary concern around the proposal to increase the max effective effective balance which is Erp 7251 so that's the Erp that I've talked about before where essentially you would increase the um effective balance per validator from 32 8th to 2048 each so that um you could basically stake with anywhere from 32 East to 2048 each per validator which will allow us to consolidate validators but still give us the same security guarantees because it's the same amount of each stake TR um so one of the I guess concerns is the increased slashing risk taken on by validators with large effective balances and so this document that Mike has published explores the four types of penalties incurred by a slash validator and how these penalties scale with

effective balance with the effective balance so they propose two things the initial penalty is fixed to a constant amount or modified to scale subliminally and the correlation penalty is modified to scale quadratically rather than linearly so you can read this for yourself I'll link it in the YouTube description below but it really feels like we're gonna get this EIP um I'm not sure when it could happen in that upgrade that lecture upgrade I was just talking about but if it doesn't it could happen by the end of the next year but it feels like uh the concerns around it are getting ironed out it feels like something that the core developers in researchers definitely really want it's definitely something that I see the community uh uh I guess like generally wanting there are concerns obviously one

of the concerns is being addressed in this research post here and I've gone through them before but I think that the benefits I outweigh the concerns at this point and the major two benefits really are uh basically um console adding consolidating valid is validators so that everyone's bandwidth usage goes down which is obviously uh great for for um you know individual kind of solo stakers and people that have limited bandwidth and the other one is just better I guess like Network stability and health better overall kind of um ethereum Health but also the fact that you'll be able to compound your stake a lot more efficiently as a solo validator and so instead of having to wait for another 32 to build up you could just add your steak um you know periodically to your effective balance uh sorry add your stake rewards periodically to your

effective balance here up to 2048 each which will pretty much cover most solo stakers I don't imagine there's that many solar stickers that have more eth than that at stake um uh there's it's definitely kind of like a power law thing so obviously that that makes for for a good uh a good kind of um Capital efficiency there but also for staking pools and things like that it also matters a lot but anyway you can go check out this uh slashing penalty analysis um from Mike nudar I'll link it in the YouTube description below for you to do so all right so Tony uh from the Mev Boo stoppix website that I have talked about a bunch of times on the refill before has published a quick add-on proposal to Mike and Mike neuters and vitalik's inclusion lists design so the tldr here

is that by making sure that there are many potentially chubby sensor transactions in the mempool while enforcing their inclusion via inclusion lists censoring parties can be completely kicked out of the ecosystem or at least their life becomes much worse so this is work that goes into a lot of the work that's being done around PBS and extensive resistant lists or inclusion lists that vitalik has spoken about before and this is like an add-on to that that that um that is that Tony has come up with here so you can go check this out for yourself I'll link in the YouTube description below but this is another thing that I Rec I reckon like PBS and stuff will probably get punted out to 2025 I think that it's not ready yet and I think there are higher priority things that need to go live before it before it

does and a lot of it is still in in deep research so yeah if I was to give a timeline on PBS and and Mev burn and anything related to to that will probably be 2025 at this point because it is critical to ethereum but it is not like time uh I guess it's not as critical as other things in terms of things that need to be delivered and shipped onto onto mainnet here and as I said a lot of this is still in research phase so you can go check out this post I'll link it in the YouTube description below for you to do so all right so a cool little tweet that I came across from ether dot Phi over the weekend so this map that they've posted shows the locations of solo stickers who are helping to decentralize the ethereum network one attestation of a time at a

time so this is the operation solo Staker that I've talked about on the refill before and this is basically where their nodes are around the world so you can see that it's actually got like a pretty great distribution there are unfortunately no nodes in Australia right now from what I can see on this map and I think New Zealand has been completely cut off of this map as well so I doubt there's any nodes there but you can see that it basically covers a lot of a lot of the globe obviously very heavy concentration in Europe right now but there is one in um in the US I believe oh actually no that might be Canada there so there is none in the US right now but there's one in Canada um there is none in Mexico but there are a bunch of uh there there are three in

South America uh you've got uh sorry four in South America I should say here and then you have uh one in Kenya it looks like as I said a bunch in Europe one inch Kazakhstan one in Thailand one in Malaysia and one in I believe China there as well and then yeah uh uh a bunch of others just scattered around here so good to see that uh there isn't just concentrated in one location obviously the US usually has a high concentration of these things but it doesn't seem like they have any uh representation yet so cool to say that just something that I wanted to wanted to show to you guys but this map is going to get more filled out over time as operation solo sticker continues to get traction all right so I spoke last week about the

I guess concerns people had around the new data that was present on clientdiversity.org around execution layer client diversity and I explained the difference between the execution diversity.info data and the ethernet's data now the ethernet data has actually been removed from client diversity.org completely which I don't necessarily agree with um to be honest I I as I explained last week the data sets are completely different and I'm not sure why ethernodes was was I mean I know why Ethan Rhodes was removed but I'm not sure I agree with that but at the same time I think this is just part of a larger effort to get a more accurate picture on exactly where uh client devices diversity matters most which is the you know a lot of people believe it

matters most in where the which um nodes the validators connect to which makes sense and in this blog post here today the East Area Community actually explains this um and explains the execution diversity data so I'll link this in the YouTube description below uh for you to check out um but then also raider.network uh had um has updated their client distribution page as well and they're using ethernet's data so they're not using the new data from execution um sorry sorry this data here from execution diversity.info they're using ether nodes data so we've kind of got a split here I guess on different data sources and as I said I explained it to you guys last week about what the differences are here

um and if ethernet's data makes Geth look a lot better here it's only at 58 whereas with the client the execution diversity.info data it's at 84 and if you want to if you want to get a full breakdown of what the differences are here you can check out this blog post from e-staker it is not a long post I'll um I'll link it in the YouTube description below for you to check out all right so rockapool is undergoing two major upgrades over the next I think like few years I think I think this might be like a one to two year roadmap here so these two major upgrades are called Houston and Saturn now of course Jasper one of the biggest rock-a-pull Maxis that I know has a great tweet thread explaining all of this so the high level summary is that there is a

complete architecture redesign that is going um forward with rocketpool right now which is going to lead to a 10 times scalability increase they're going to be um doing more things around on-chain governance they're going to be birthing rockapool layer twos and they're going to be switching to a bonding curve mechanism for mini pools which could get the mini pool requirement down to as low as one dot x a DOT XE requirements now this is quite a long uh tweet uh thread from Jasper's 30 tweets long but if you are at all interested in rocketpool and how they plan to actually scale I highly recommend giving this tweet thread a read I'll link in the YouTube description below and also just a quick shout out here this is Jasper's new Twitter account his old one got banned so if you haven't followed him on his

new Twitter account yet be sure to do so um unfortunately I don't know the chances of him getting back his old account here so his new account is the one that he's going to be tweeting from now I do want to have a little bit of discussion here around East taking generally and lsts generally because I I guess lately over the last couple weeks people have been bringing up lato's dominance again and there's been a lot of noise around um you know protocols self-limiting and things like that so I want to talk about two things yeah and some of these things might be controversial some of these things might be unpopular opinions but I I I've been saying these things for quite a while now so the first thing I want to talk about is that self-limiting stuff so just for context here there is

a push from various community members to get different staking providers to self-limit the amount of each stake that they would uh sorry the amount of share of the network that they would get and the the share of the staking Network that they would get and the limit is 22 now I got a few issues with this one I understand the social signaling that this does but I don't think it actually relates or translates to anything practical so when you look at the current landscape of of the staking landscape so let's go to the raider.network website and let's look at who's actually at 22 or anywhere near it there's only one entity that's near it and that's Lido of course they have 32 percent okay so if Lido agreed to limit to 22 percent they would have to unwind

Force unwind 10 of their net of their of their validators right so 10 of their market share they would have to force unwind okay that's a pipe dream like I'm just going to be honest yeah that's a pipe dream that's not going to happen Lido as an ecosystem are for profit there is a token there well what do you think would happen to the token's price if Lido was to force exit 10 of their market share the price would tank so the Lido token holders have absolutely no incentive to do this right so that's one thing one part of it the other part of it is that realistically no other stacking provider is probably ever going to reach 22 it's too hard now Lido was able to reach this market share for a few different reasons one that were

first mover that's a huge Advantage right they were first mover in the LST space and they offered a really great product to people which was St and and easy staking when really no one else was doing it so that's that's their main advantage there so that's not to say that that their Network share isn't going to come down naturally over time I think it will but how is that going to happen it's going to happen through more competition from the different providers obviously the competition has to come from uh that coinbase and binance and Kraken and rocker pool and other such providers out there and it will come from there but generally lighter's market share is only going to go down uh from that I think that it remains to be seen what happens in a bull market as I've explained before what happens if

Ste uh um you know loses its fair value goes like 10 below fair value uh I think there's going to be a lot of people are being that and and they'll be withdrawing from Lido you know and then Lido's market share will go down like that but but in the steady state of things where things aren't crazy people have no uh I guess like opportunity to Arbitrage it because the secondary Market is so efficient and so liquid and there's no craziness going on there so generally I've always said that I think that the way to reduce Lido's dominance is not this social signaling stuff it's to build a better product it's to compete with them it's to vampire attack them is to do all that sorts of stuff um which I think a lot of the different entities are beginning to do and we'll be doing into the future and also on

that self-limiting talk as well it's very easy for the uh the protocols that have like less than five percent of market share to say that they're going to limit the 22 percent because one I think that they realistically know that they're probably never going to get to 22 percent and two they're not even near it so it's just like free publicity for them to socially signal signal this to The Wider market and as I said I I don't think it actually translates to anything practical it's just like a feel-good fuzzy thing that people want to do and if you want to do that they can do that but I'm more interested in the Practical stuff here I'm an audio log as much as the the next person is when it comes to keeping the Big Chain decentralized and making sure that no one entity has too

large of a share but I'm also very uh acutely aware of the Practical uh implications of each of the different ways of doing things and as I said before I think the most practical way to get Lido's dominance down is to just compete with them it's not to soft signal this kind of I guess like um social signaling stuff I don't think that actually translates to anything uh uh practical there but anyway you can go give it Jasper's tweet threader read on the rockapool stuff and how rocketpool is going to grow and make their ecosystem better in order to compete with outfits like Lido I'll link the Tweet thread in the YouTube description below for you to check out all right so Ryan Sean Adams from bankless published a or not published she shared uh I guess screenshots from a publish a publication that was put out

by Fidelity digital Assets in August of uh of 2023 called the ethereum investment thesis ethereum's potential as digital money and a yield bearing asset so you can see here that the world's third largest asset firm with 4.2 trillion dollars in assets released this um this thesis for ethereum and the thesis was basically bucketed into three different things eth as an inspiring as an aspiring money eighth is a story of value in eighth as a yield bearing asset and you can see the screenshots here now you can go give this a read I'll link in the YouTube description below now this was funny that it came out very shortly after I went on bankless uh I guess like uh bankless weekly roll up last week and I said to Ryan because Ryan was the was the host with me this time instead of

instead of David how he usually is but I said to Ryan I said what do you think is going to happen with these these outfits that have ETF applications in place for BTC they're going to start publishing reports about BTC and about the investment case because they want to bring money in but of course they're going to do the same thing for eth because they also have eat ETFs that they've filed start with Futures and then they're going to file for spot ETFs and if you are filing these things you obviously want to get as much market share as you can so you're going to be putting out these investment thesis and you're going to convince your clients about why they should be investing in these assets and in my mind each has the best investment thesis right now as a money as a store of value and as a yield

bearing asset obviously with staking but there's so much more than that and the fact that Ryan says here they even referenced the ultrasound money website as you can see here the supply change um that's just awesome to me and I think that that deflationary narrative is also going to play a huge part in ethereum's or its investment thesis in the tradify world because Trad fire I think loves yield the most definitely they're all about the yield right they also love assets uh when it comes to like store value they love predictable as assets but they also love the the narratives of deflationary assets too and I think that once it's explained to people about how eth can offer a yield while also being deflationary while also being a money and a store of value that is an

incredibly powerful thesis that I think a lot of people are going to latch on to especially when they can buy Eve in with their brokerage accounts as an as an ETF so they can get tax advantage treatment of it I think that's going to be big and you can you should you really need to only look at grayscales gbtc and ethi products to see just how much demand there is for those types of products so yeah I do think that both BTC and each spot ETFs are going to get a lot of demand but I do think that the investment thesis is very easy to sell at this point I think that these reports are going to be more common I think they're going to be in influenced a lot by what we say on crypto Twitter what I you know I'm not to take credit here but

what I've been saying on the on my show for a very long time maybe there's someone out there who works at Fidelity or one of these big outfits who watches the review I would love that because please do these the kind of reports put these out there educate your your client base on what makes if a really really great investment because at the end of the day I truly believe eath is you know still and for the foreseeable future going to be the best long-term investment in crypto that you can make especially uh from a from a story value wealth preservation perspective versus anything else including BTC but you guys already know that I'm preaching to the choir but yeah you can check out the screenshots here I'll link them in the YouTube description below and the report is also linked here by Ryan uh I'll link

that for you there all right so channeling God published something from uh I guess like shared a publication that was published by Swift uh over the weekend here so this was a a report that was published in August 2023 titled connecting blockchains overcoming fragmentation in tokenized assets Swift's interoperability experiments connecting to public and private blockchain Network now channeling God says here Swift published a new results report about their recent collaboration with chain link and 12 of the largest financial institutions on using ccip for blockchain interoperability so ccip connected existing Swift infrastructure to multiple public private blockchains this is really really cool I I've been trying to tell you guys you need to be paying more attention to what channel

link is doing here with ccip because if we're going to have we are going to have we already have an interconnected network of different uh blockchains primarily ethereum and l2s and maybe even some private blockchains that use ethereum's technology we're going to need a way for them to communicate with each other now of course there are different ways of doing this communication there are bridges obviously that's a different type of communication to what ccip is here but Bridges is more about communicating uh I guess like not so much communicating but like bridging assets between chains but when you want to do actual communication between different chains and between different networks like the Swift Network and blockchains you can see here in this screenshot what that might look like it might look like Swift talking to

channeling ccip with signed messages and then chain link talking to uh you know the blockchains generally whether it be ethereum or l2s or whatever else and then sending the those that kind of data and that those those updates of those status updates back to Swift so it works in in an interoperable way and it can work in a way that's secure and trustless as well so very very cool to see this report I mean this is the stuff that we need guys I mean it's actually um named TR uh you can see here Swift talking to channeling ccip talking to the public ethereum chain they've also got Avalanche for some reason I don't know why Avalanche is there I mean I I don't imagine they're going to be talking very much too to Avalanche um but they've also got Quorum which is a private chain which was um a private uh

a fork of ethereum that was built uh I think I Believe by JP Morgan uh to to kind of like um appeal to these kind of groups like Swift and Banks and stuff like that there but uh trailing God has the the report linked here you can go check it out I'll link it in the YouTube description below but very exciting stuff happening and I know this might not seem exciting to crypto natives because you know we're all about crypto native stuff um we're all about like djenning and things like that but this is the stuff that leads to mass adoption guys like obviously the Swift network is absolutely massive in in the real world and they it is it is massive but also slow clunky inefficient and they obviously want to make it more efficient more effective and what better way to do that than working with the leading uh

Oracle provider and the leading kind of like data uh provider um and and kind of bridging provider in chain link and uh talking to all these different blockchain ecosystems yeah so you can go check this out I'll link it in the YouTube description below for you to do so all right so arbitrim had a big announcement over the weekend or at least on August 31st which was their anniversary so they call it Arboretum day so this was the uh at the the day that arbitrim went live but also last year on uh the 31st of August arbitrim Nitro went live so they announced that they are taking a big leap with the release of the code and public test net for arbitrim stylus so I talked about stylus for a lot uh a lot on the Regal before it's basically this concept of allowing anyone to uh sorry allowing

people to program in basically any language that they want on evm and in wasm as well so you can see here this is what it basically looks like so the evm allows you to if this picture wants to load yeah the evm allows you to code in solidity compile down to evm byte code and then to uh on arbitrim Nitro evm and then have all the smart contracts below that but with evm plus you get solidity to evm you still get that but you also get rust C C plus plus and other languages down to wasm which then compiles down to to the wasm VM which exists as part of exists in the same kind of bucket as arbitrim nitro uh sorry as the evm which is the arbitrary Nitro bucket which then becomes smart smart contracts here and as off-chan lab

says in their tweet the evm and wasmvm are fully interoperable stylus and solidity contracts are composable in solidity developers can call a rust program or allow dependencies in a in another language in rust or solidity functionality is accessible out of the box I don't think people realize just how big of a deal this is the fact that not only can you code up smart contracts in languages other than solidity but also that they're going to be interoperable with the evm so everything on the arbitrim uh one chain for example um will be interoperable here and we'll be able to talk to each other but not only that uh Rachel here who is the tech lead of Chan Labs mentions that arbitrim stylus slashes fees across four categories so compute becomes 10 to 100

times cheaper memory becomes 100 to 500 times cheaper storage via caching VM affordances like Keck and reentration re-entrancy detection um and also she put together a thread here on how to get the most out of your stylus contract so just think about this for a sec guys if if arbitrim uh if these new contracts these stylish contracts uh just at bare minimum 10 times cheaper than the existing contracts on arbitrim1 today then throw in erp4844 then throw in any more performance improvements that arbitrim that option Labs makes to arbitrine one we are quickly entering the world of sub-sense uh transaction fees on layer 2 here guys and this is not a ZK VM right

this is a optimistic roll-up something that people said we're going to be more expensive or more clunky or whatever than zkrottle apps or zkavms which isn't the case here arbitrim is really killing it on the execution side here in terms of onboarding and getting more developers to to kind of build on the ecosystem but also making things just like vastly more cheaper so even if it is only 10 times at minimum cheaper um and you as I said you throw an erp48 44 and then you get the subset transaction fees on layer twos and uh and I think that's going to lead to as I've been calling for for a while now that layer 2 summer right that that kind of like layer 2 someone where we get a lot of new money a lot of new users coming on chain onto these l2s not just

arbitrine one obviously but a bunch of the other l2s as well and they get to experience the joys of using ethereum but with just like the fraction of the cost right subset transaction fees on ethereum that has been the dream since like day one of ethereum right guys and we're almost there we're so close we're literally only a few months out from this that's a amazing to me so yeah I'm definitely uh very excited for that I'm very excited to see the fees once erp4844 goes live and these layer twos start taking advantage of the new blob style transactions all right so Sunday from polygon here I had an interesting tweet over the weekend talking about how polygon has basically had a lot of strong brand building on its ecosystem and the latest is Lufthansa here which is a loyalty

program with 36 million members that have joined the polygon ecosystem so other I guess like big Brands include Nike McDonald's Reddit Coca-Cola uh and many more actually that have been building on polygon here in the Starbucks as well now the reason I bring this up and you guys know I'm an advisor to polygon here I just want to disclose that but the reason I bring this up is because it goes back to what I was saying before about how this may not be interesting to crypto natives but this is the kind of stuff that gets more and more people on chain right gets more and more people involved with web 3 with crypto gets them using the technology that we've been building for so long and I I you know I think I mentioned maybe a couple weeks ago when I went to that Meetup and there was an nft panel

talking about how all these brands are working with nfts and they're really excited about them because they're able to get their I guess physical products into the digital realm like for example with Nike they have this dot swoosh thing on polygon that is huge where essentially they thought to themselves well people are playing video games like they're playing their favorite video games but they're not going to wear their favorite sneakers or apparel uh while they're playing these video games right and they're still like a streamer or something like that just the Casual um player is not going to do that so how does Nike get their products into the game well they do it via digital products via nfts they basically um you know have these sneakers that are nfts that people can buy and they can wear

them on their characters in game and that's how Nike basically captures the Sneakerhead Market in the digital realm and there's so many more examples of this and I think it's really cool to see Brands just getting more involved here and bringing more people on chain and exposing them to these things I know that nfts are generally still hated with like the gaming crowd and things like that but I think that's just like a loud minority to be honest I think that the that the the loud minority of Gamers have been loud about lots of different things that they've been wrong on because the companies are making a lot of money from doing this stuff and they're going to keep doing it and it's very very successful for them so I wouldn't worry about that that kind of noise there but yeah I guess like congrats to the polygon on Landing

another Big Brand uh as part of their kind of ecosystem umbrella here all right so there is a wait list for fire Caster now so I've said to you guys before that firecaster is opening to the public shortly with uh five dollar a year kind of like um a fee to to all users uh but if you want to get on the wait list you can I'll link it in the YouTube description below but it is a very big wait list right now so apparently there has been 80 000 signups uh since September 1st so I guess like that was uh four days uh and uh averaging roughly a thousand an hour now of course a bunch of these are going to be cyballs and things like that because people are going to be expecting an airdrop um or or stuff like that but there was

also more information shared by Dan Romero on firecaster actually which I'm going to bring the tab over here so this I think this is like the first tab of firecaster that I've showed on the refill but this is um this is Dan just adding more more information here where he says 100 of the 80 000 sign ups were within ethereum address 80 with a Twitter account and 60 of the ethereum addresses had more than a zero eth balance and that's pretty pretty cool because it means that you know there is maybe like a high a high percentage of sorry a high chance at 60 of those are actually not kind of airdrop Farmers or at least like a decent chunk aren't airdrop Farmers or anything like that but yeah there's a lot of people signing up for firecaster right now so if you want to do so I'll

link the sign up link in the YouTube description below uh for you to check out all right so I you guys might have thought that I wasn't going to talk about this but I am going to talk about this for a little bit so you guys know that over the weekend roon uh the founder or one of the co-founders of maker Dao tweeted out a new kind of like Forum post about maker where he said the last phase of end game is the launch of a native blockchain for maker with the code name new chain it will make the ecosystem more secure and efficient then he says after some research I believe the Solana code base should be considered as the basis for new chain now I want to quickly describe exactly what roon was proposing here he's basically proposing a new L1 chain using

Solana's technology so basically forking Solana as a new L1 chain called new chain or I mean that's that's a placeholder name for now where essentially governance could kick in and Fork the chain at any time uh to deal with big issues with things basically I don't know if there was a hack or something like that or some other some other kind of like undesirable Thing Happened on the Chain now just Justin LaRue here quote tweeted this and said that basically what roon wants or what he's advocating for is a privately controlled app chain to use hard Forks to gracefully recover from the most severe form of governance attacks or technical failure which completely negates all legitimacy achieved by initially building makerdale on a public

blockchain and from my view what roon really wants is his own private little playground that he can he can control because roon from the last time I checked is one of if not the largest holders of mkr tokens which means that he has the most influence over Mega governance so he pretty much already has um you know total control over maker or at least near total control over maker but what he doesn't have control over is the fork choice of ethereum so essentially what he wants is that he wants to make ecosystem to be on its own chain where he can actually control the outcome of a fork essentially that's that's my read of it maybe that's a cynical read but that's my read of it here and it's funny because he says that he did research on this but it doesn't

seem like he did much research at all because he actually didn't just mention Solana but he mentioned other blockchains as well uh he mentioned say I believe and and Aptos what he was really just looking for was like a high performance kind of I guess chain for him to build this new version of maker on but it was not very clear exactly what he wanted out of this and he also said that and he also looked at Cosmos by the way but he also said this this is several years out so for him to be making a technology decision for something that potentially won't launch for several years if ever seems kind of weird to me so this whole post was just very weird and I'm not just saying that because it was Solana I've praised Solana before in the past for its Tech I've said that Solana's Tech is great

right they've got nothing against it it's Tech itself I just think that it's implementation as an L1 leaves a lot to be desired a number of different uh kind of like um a number of different ways I'm not going to rehash that here but yeah generally what roon posted here just didn't really make me bullish on anything at all honestly if I had mkr if I was holding MK I would have sold it and vitalik actually did sell his mkr after this announcement which is a pretty funny kind of signal there because he vitalik actually didn't need to say anything all he had to do was sell his mkr on one of his publicly known addresses and everyone latched onto it and everyone knew what that was it was basically vitalik saying that I don't agree with the direction that maker Dao is taking uh right now

um not just with I guess like this new chain thing but with a bunch of other things as well but yeah this was obviously very controversial I don't think it was controversial because roon chose the Solana code base I think for ethereans it was very controversial because it goes against exactly it go it further kind of like I guess like uh takes maker away from where it originally was and it basically makes make her into this new thing this new chain thing where essentially it becomes uh runes playground from from the outside looking in at least it does uh to me here and I think yeah Justin LaRue had the best take here where it basically this basically makes it a privately controlled app chain and then what's the point really at the end of the day if it's just privately controlled if it's just like completely

centralized then really what is the point I don't I don't see the point here but yeah you guys might have different thoughts on this we did discuss it a bit in the delegate Discord Channel but if you want to jump into the discussion again feel free to do so all right finally here this episode's gone for 47 minutes but coming up on the longest ever refuel episode besides the one I think I did after I was in Amsterdam last year uh but this tweet I said late stage crypto crab markets are worse than the bear market for most people it's the what if there's never another bull market phase of the crypto cycle and it's where even multi-cyclers get shaken out and start to lose Faith ironically this is usually when the bull market returns so I'm sure you've seen this lately where essentially a lot of

people are in the Deep apathy phase right now because prices are doing literally nothing good we pump off of good news right but really that's just a very short-term pump and the entire pump gets sold back down every single I guess like altcoin out there have retraced their entire 2023 pump uh if not gone lower than their 2023 uh starting price Ethan BTC have been range bound they have been trading like coins for a while now they're not doing anything good this leads as I said to apathy it leads to multi cyclists starting to doubt that the bull market will ever return right they start kind of losing faith they start potentially getting shaken out this is the exact same thing that happened in 2019 guys in late 2019

I can't even begin to describe how exactly the same this is I mean I could go and dig out tweets from back then if I really wanted to put in the work but I don't think I need to because I I know for a fact based on my own experience with this is that this is exactly the same thing that happened back then people were losing faith especially when it came to eat because eth was getting slaughtered I remember even me in January of 2020 I think it was January 4th 2020 I sent the message to some friends saying that if if BTC because e3c got crushed right if BDC didn't start going up it didn't start going up uh from where it was that uh you know I I was I was losing faith that it ever would even me who has been an eighth

permeable for such a long time Jan 2020 I I wouldn't say I lost faith but I was like right on the Cliff's Edge there and what what do you think happened after that I remember the date because I remember just laughing to myself that what happened after that January 4th 2020 you can go look at the chart for yourself but I'll bring it up on my screen just just to illustrate exactly how perfect this was January 2020 uh January 4th I'm gonna go to the exact day on my chart here because I want to tell you guys what the price was on January um 24th I should have had this up before but you got you guys can't see my screen here but it's on one of my other tabs January 4th 2020 the price of eighth was uh not the exact bottom here it was a hundred and thirty three

dollars right 133 dollars it had done nothing good in 2019 it had gone to 360 and then sold back to 130 it basically sold back to where it was at the beginning of of 2019 almost the beginning of 2019 here and I posted on that day that I was very kind of not not bearish but like I was losing faith that we would ever have another bull market guess what happened after that from January 4th right from January 4th to February 14th so over the course of five or six weeks eth went up 116 percent in 41 days it doubled it went to 290 now of course it came back down after that and dumped really hard and went to like nine dollars but that was the cover dump that

was a Black Swan event right but but then we continued after that we just kept going up again and we started a new bull market so what I'm trying to tell you is that when even the multi-cycler OG permeables get bearish and start to lose faith that is usually the Pico bottom that is usually the end of the crab market and I'm seeing some of it right now I'm not seeing all of it as I've said I still think that we could go lower and into the end of the year on Ethan BTC and obviously the other coins as well but I just wanted to illustrate just how perfect that was because I I think I have a screenshot of that message somewhere because I don't have the the message history to look back on right now to to my friends that I said this to but I always look back on that

and laugh I laugh that me the Perma ball was starting to lose faith and literally because I had it Las Vegas during the whole bear Mark I was stacking eighth I hadn't lost faith on on Eighth at all I was really really bullish on Eighth but at that moment I had like a moment of weakness where I was just like you know come on like how much more you know brutality can ease take here it's nuked off eight BTC it's now 90 against BTC it retraced its whole 2019 pump like come on something's got to give here and I was right on the Cliff's Edge and then from the next day literally the next day East went up only until the covert dump right I mean it only took like 41 days for eth to pretty much like go up 2x which was amazing to me and honestly

when I look back on that I just think to myself that is like the best lesson and that is a very similar feeling to what I'm feeling now I'm not feeling that guys like I I don't think I'm going to be pushed to that point at that in this market it's just a very different market for me now and it's a very I mean I'm in a very different position than I was back then I mean back then I I I I think I had like oh man I think my portfolio was maybe like 20 grand back then uh 20 000 and that was after putting in extra money during the the bear Market to to buy more eighth I I really did not have much money in crypto at all at that time and um you know I remember just thinking that and and yeah I just wanted to

illustrate that for you guys because it's just finally looking back on that now and I'm seeing the same thing happen so ironically when you say those ogs start to capitulate that's probably when the bull Market's coming back but as I said I still maintain that 2024 is going to be a very healthy year I have relative confidence that we're going to see new all-time highs in the second half of next year but we'll have to see how that shakes out and I'm sure people are going to get wrecked for the remainder of this year because they're gonna get shaken out on the last ditch of the crab market action and then next year probably going to be another bull market at least in my view anyway we're at the 52 minute Mark here so I think I'm gonna end it there I'm out of content for today but thank you everyone

for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subscribe to newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone