EIP-1559 turns 1, Coinbase partners with BlackRock - The Daily Gwei Refuel #422 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the delegate refuel where i cut the latest news in the ethereum ecosystem i'm your host the anthony's assigned to the 5th of august 2022 right everyone let's get into it okay so it is the fifth of august which means it is the one-year anniversary of eip1559 going live on the ethereum network now since then we have burned 2.1 percent of the eat supply which is very very cool obviously we had a bull market during that time so the kind of amount of fees paid was was pretty high these days nowhere near as high but still up there we're still burning heat we've still been burning millions of eats a day which is really really cool um and i know some people thought that one five five nines anniversaries yesterday august 4th well it's technically august 5th that's actually

when it went live i mean depending on the time zone that you look at but the times are measured in utc uh usually when these kind of like things happen so uh august 5th is definitely the day that it that it kind of went live there i remember being on kind of like the the live stream for it was very very cool i mean after two and a half years of waiting for it to go live it was it was a huge kind of like moment for me personally just like when the beacon chain went live as well on december 1st 2020 and i'm sure i'm gonna feel the same way around the merge probably even more like excited about the merch that i was about one five five nine and the beacon train going live probably put together honestly i just cannot begin to describe

my excitement about the merge and you guys know that but yeah i think um you know for all the i guess like concern around eip1559 that people brought up things about kind of like oh miners are going to leave in droves or they're going to fork the chain because we're basically giving them a pay cut that never ended up happening people said that gas fees would go up because of 1.559 that didn't happen because of the fact that it had no effect on the gas prices kind of like going up or down but it did smoothen out the gas prices it made inclusion better for the rest of the network for the for the entire network so that ended up playing out we've got a year's worth of data to look back on now we can actually see that playing out and we got that awesome burn right i

remember when it first went live people were so shocked by the amount of eat that we were burning and i was like well i mean you guys were complaining that the fees were high and now you're shocked that we're burning this that we're burning this much earth like this didn't really make sense to me uh but yeah we've burned 2.57 million eighth which is 2.1 percent of the eat supply uh right now and even at current kind of gas prices i think you know post-merge we're going to be pretty much still net deflationary every year which is very very cool but we're not obviously in net deflationary right now because i'm the proof of work we're issuing a lot more eth but uh but yeah we're gonna have eip1559 for forever hopefully i mean it can be changed people have said it said before it's like oh okay we're just going to

burn each forever and i'm like well okay there's a 99.9 chance we're going to burn eight forever but there's always that small chance that for some reason maybe 50 100 years in the future the network doesn't want to burn underneath anymore and we kind of like turn the burn off so to speak like technically anything can happen on the network but it's all about i guess like the social contract it's all about what people want uh and that's basically the entire network and every blockchain really they're all social systems and they're all kind of like human run systems as much as people will try and kind of like uh i guess ignore that fact it's really all just human consensus at the end of the day and the only reason why we got eip159 is because we had so much human consensus behind it it actually kind of

went into limbo for quite a while there six to 12 months because no one was really being a champion for it and then tim baiko came along started coordinating the effort and we got this to mainnet uh in august on august 5th 2021 which was very very awesome so yeah this screenshot comes from the ultrasound money website obviously this is the ultrasound money twitter account here a great website for tracking all things got to do with the burn and a bunch of other metrics as well so definitely check that out if you haven't yet uh and uh yeah i guess congrats to oh yeah b1559 on turning one all right so the prado girly has been uh kind of test nets have been upgraded to bellatrix uh and it went okay network participation dropped from 89 to 80 due to inactivity inactive nodes which is

expected for an unincentivized test net uh the girl emerged next week so yeah we're about five six days away from the girly uh merge here and uh i think terence kind of like followed up on his tweet here and said he wants to add a bit more details there was a peering issue between prism and tekku prism's latest multiplexer libraries updated incorrectly marked yemek's as default which made it hard to appear with teku the issue is now fixed and will be in in the next prism release so these are the kind of like edge cases that will pop up from time to time but the beautiful thing is and as i talked about yesterday we have that client diversity right like if there is a an issue and you just want to kind of like be on top of it you can just change or have a fallback client so

that you don't have to wait for the client to fix the issue you can just fall back to something else and then and then switch back once it's been fixed and it's good for the network as well like say 10 of the validators fall offline well if you've got like a fallback client that you're that you can kind of like fall back on we can get that percentage up really quickly before the bug is kind of like fixed and and patched and things like that so really cool to see that but also as terence mentions here this is an unincentivized test net there is no actual money at stake here and that's why i think like the merge on main net we may for some reason i see a kind of like participation drop off because there's kind of like peering issues or there's a

or there's like a bug all this kind of like um configuration issues but i feel like that it's gonna i mean especially in the in the um the sense of a configuration issue that's gonna get fixed really really quickly uh there's like it because there's real money on the line right it's not going to be this thing where it takes a few hours for us to diagnose it on the test net and then kind of like send the fix out and everything like that no it's going to get fixed extremely quickly and people are going to update their nodes and make sure they're working extremely quickly because they don't want to be losing money here so so yeah anyway cool to see this uh happening here and uh yeah the girl emerge is a coming all right so the akula kind of ethereum client is now officially i guess like in

production it is now listed on the ethereum.org website so this is an execution layer uh kind of like a client here and you can go to the ethereum.org website and kind of check out the clients i should actually click on this link yeah check out the clients here the clients page basically you have uh i guess like uh the nodes and clients kind of section on the ethereum website under developers and then you can kind of like scroll down and you'll find kind of like all the information around that so very cool to see another other here's the table here another execution client that's built in rust i think the first execution client that's built in rust here uh runs on linux only at the moment but supports mainnet gurley rinkeby and robsten and has a full sync capability there and that's really cool i think you

know there are there are um there is an implementation of a consensus layer client in rust a lighthouse as we all know but there hasn't been an execution layer client in rust yet and now we we have one which is very very cool to see it's always great to see more clients being added to production ready status here and making client diversity a kind of like much more a much better thing on on ethereum all right so tog royal here from scroll put out a tweet yesterday where he said hey ethereum proof of work community if you're not sure what to do with your gpus after the merge but still want to be part of the larger ethereum community dm me scroll might need you so this is basically i guess what i've been talking about when it comes to zk stuff where these gpus can be used within like the

zk context to do proving and things like that and and i've seen some people kind of like push back on that and say oh great like we're just replacing proof of work on layer one with proof of work on layer two no they're totally different things like it's got nothing to do with uh kind of like um a proof of work it's a totally different thing it's basically using the gpus to compute proofs and actually do useful work but it doesn't scale kind of like linearly like proof of work does right where obviously as uh kind of like the price of the asset goes up more miners come online the more difficult they can get kind of gets to mine and the more miners you need to to kind of like mine at the same profitability as before whereas it doesn't work like that for uh kind of

like these provers it's completely different like you can literally use these things in kind of like parallel and prove things much quicker and there's no kind of like monetary incentive tied to it either in terms of uh a gun well there is there could be a monetary incentive tied to it sorry i should say but it's not it's something intrinsically linked where the more kind of like power and the more kind of hardware you throw at it the more uh i guess like of the share of the kind of i guess like block reward you would get that's that's not how this kind of like works here so uh and as togel mentions in his reply you know we don't need these gpus for proof of work we need them for computing validity proofs so yeah uh basically there's a few more replies in here

around um uh from from kind of like toggle and a few other people here are explaining that but yeah i just wanted to kind of clear that up that misconception up we're not taking all the i mean and and okay the way i can frame it is say we have like a million gpus which i probably think it's more than that mining ethereum right now but for sake of argument say we have a million gpus it's not like a million gpus are going to be able to be economically used for proving these sorts of things the demand isn't there and it won't be for a very very long time if ever so this call-out here is really just for any miners that have a gpu that they kind of like don't even want to care about selling but really care about continuing to add value to the ethereum

community and ecosystem it's really for them so i think toggle mentioned that he got over 40 dms which is really cool to see uh but yeah guys like even even kind of like the sense of scale here is completely different like and and and energy use while obviously will be more than zero because you're using kind of like hardware right um it's not going to be like proof of work at all so yeah and if you ever see people kind of like talking about that you should maybe kind of like uh correct them and say to them well no it's not the same kind of like system it's not going to be like that at all it's basically akin to how you have gpus kind of like running in your computer at home for example like my gpu behind me running here powers my screens but you

know lets me do my gaming and all that sort of stuff it's basically akin to that in terms of in terms of energy usage so it's basically like a consumer pc at the end of the day right rather than me having like this whole room full of gpus like you know 100 gpus mining ethereum to inch out that profit and having to throw more and more gpus at it if i want to keep my share of the profit the same as more and more people join the network and as the price of eth goes up because you know and and the hash follows that price whereas with approver it does doesn't doesn't kind of like work like that or using gpus as approver does not work like that so yeah just wanted to clear up that there but if you are someone who is mining on ethereum and you watch the

refuel i know i've been harsh on miners before but maybe you don't hate me yet you can definitely uh dm tog roll here and uh and see what you can do with scroll all right so a big announcement out of coinbase today or i guess yesterday uh they announced a partnership with blackrock so blackrock's aladdin clients will now have direct access to crypto markets through coinbase prime now for those of you who don't know who blackrock is they are one of the biggest asset management managers in the world if not the biggest i can't remember if they're the biggest or not there are two major asset managers there's blackrock and uh the name of the other one eludes me um but they're definitely absolutely massive right like trillion dollars kind of like trillions of dollars of aum sort of thing so absolutely massive very very

well known within kind of like the um the finance world the traditional finance world very very respected and as i said trillions of aum there so now that coinbase has a partnership with them through their coinbase prime product which is kind of like the institutional product uh the aladdin clients of blackrock can now access the crypto markets directly now does that mean they're going to be buying all our favorite coins probably not right i would wager that they're going to be buying btc and 8th first uh they're definitely not going to be going down the risk curve probably anytime soon they may kind of like do staking on eth because we we saw coinbase announced institutional staking the other day so i think that they may kind of like put it to work which would be really really cool and obviously on sell it to their

customers and things like that but on top of this i think the timing is also pretty funny here i mentioned i think yesterday the day before around the cftc wanting to classify btc and eth as commodities instead of securities i don't know like the um i guess the person in in me who connects the dots seems to think that this is that curious timing here coinbase is partnering with one of the biggest asset managers in the world uh and and they want and and they would obviously have an incentive for uh ethan btc to be kind of like listed or regulated as commodities rather than securities because it simplifies the whole process there and they can wrap them up in a bunch of different products and things like that and sell them to their customers so yeah the timing is is really cool here coinbase is making big moves you know

what i find hilarious i think someone tweeted this out today but i can't find the tweet but what i find hilarious because i was thinking about this too is that like a few weeks ago people were kind of like fighting coinbase being like coinbase is insolvent right because they've stopped doing their referral program or something like that uh and coinbase is gonna is the next kind of like exchange to blow up and i remember pushing back on this saying like guys like there's a lot of issues with coinbase like don't get me wrong they're not perfect right they had their insider trading thing they list the some of the shittiest assets i've ever seen but they also do a lot of good they're a massive company so there's expected to be good and bad from from them and they're definitely not insolvent it's just insane that people were saying that

and then i saw this announcement today and i just had i just just laughed i'm like blackrock wouldn't be partnering with coinbase if coinbase was going to be insolvent right and on top of that we can actually sell their financials because they're a publicly traded company so i just i don't know i just still thought that was insane and it's funny how those voices have kind of like completely gone it feels like the bears are getting slaughtered every day that we just don't go back down now i'm not saying that there's no chance that we can go back down from here but we just keep kind of like i guess ranging we are ranging still but we do keep kind of like bucking the bears like the bear's like ah we're gonna get go to new lows now and we just not we don't do that right and i don't

see any bulls calling for well there may be maybe some here and there but there's no one really calling for new highs or anything like that yet because we all are well aware of the fact that this could still be a bear market rally we could still go back down um but at the same time we have those kind of like major catalysts obviously with the merge and stuff like that but i guess that's going a bit off topic there i think that you know this is really cool from coinbase they're bringing on more institutional clients into crypto uh and this is going to be very big like i can't actually kind of like overstay how big this is because of the fact that blackrock has so much money under management and so many kind of like tendrils in the traditional finance system uh they're

going to be bringing a lot of money eventually probably they're not gonna okay they're not gonna put a trillion dollars into crypto like overnight guys like maybe in the long long run they'll probably have like uh you know trillion dollar worth of uh uh kind of um crypto exposure but they're not going to be doing that they're obviously going to be taking it step by step taking it slowly uh but i think they're going to be doing ethan btc definitely first and we'll see what else they they want to do right maybe they kind of like go down the risk curve a bit and and start buying other things but i'm not sure what else there is like if i look at like the the top 20 top 30 on coin get go it's still a disaster like i look at it and i'm just like how is xrp

still in the top 10 for for starters right i can understand some of the others that i in kind of like top 10 that i disagree with such as kind of like cardano um and some of the the other ones like solana and polkadot but i just don't understand xrp at all because it just hasn't done anything in so many years it is just pretty much a scam and it has been basically delisted from like major exchanges because of the ongoing securities uh the ongoing sec kind of like lawsuit and yet it just doesn't budge so either no one's selling because no one has any xrp anymore it's literally just kind of like ripple that has all the xrp uh and maybe just like a bunch of whales which i think is actually the case um or something else is going on but regardless of that i

think that you're going down the risk curve you have to go pretty far to find something or something kind of like worthwhile i think you have to go outside of the the top ten besides btc and eighth i wouldn't touch anything else in the top ten that's for sure but that's just me right not investment advice but that's just kind of kind of me there uh but yeah cool to see this partnership with blackrock from coinbase all right so john here from uh i guess i think he's at delphi digital here his bio says crypto research at new york post allegedly no he's from delphi digital uh he put out a i guess like guide to ethereum's roadmap a little while ago maybe a few months ago and i highlighted it on the reef it was a very comprehensive guide pretty much the best that i've seen

well he's back at it again with something he's called an incomplete guide to rollups um oh sorry he's called a complete guide to roll ups because vitalik had an incomplete guide to rollups that he wrote a blog post about um so this is an 86 page report on rollups now it doesn't just cover ethereum it also covers celestia but it's all about rollups now i obviously have not read this yet because it is only it has only kind of like been i've been coming out today uh but at 86 pages i think i'm gonna learn a lot from this there's not usually a lot of these stuff that i read about rob's because i already like know like a lot about roll ups but i think if with an 86 page kind of report here there's definitely stuff in there that i

don't know which is just crazy this this guy is absolutely insane there's no way in how i'd be able to do something like this i mean i was talking to a friend about this earlier i'm just like how does someone do this like i mean and so quickly too it's i i doubt this was something that has been kind of like worked on for for very long because he had the original guide that he did and if you started working on this after that it was probably on the last kind of like few months um which is just absolutely crazy to me when i think about it there's no way i'd be able to do this i talk about all these sorts of stuff on the review and i wrote my newsletter but writing a report of this length is definitely something that i i wouldn't

be able to do and it's funny because i left uni like i never finished uni because i was just sick of the amount of kind of like i guess structured work that i had to do i'm not really someone who likes structured work i i find it very hard to focus on things so i give a lot of credit to people who can do that and that's why i wanted to highlight this report from john and obviously i think you should give it a read it is probably the definitive guide to rollups i haven't seen anything this comprehensive before so it's it's said here 83 minute read it calculates yeah so this is a good thing to set in maybe on on the weekend right we're at the weekend now and just kind of like maybe load it up on your kindle or something go grab a coffee or go grab a tea and go

give this a read like that's what i'm going to do like i literally just describe what i'm going to do i'm going to read this over the weekend in my backyard or something with a cup of coffee cup of tea because yeah it is about an hour and a half right here uh but i i'm really looking forward to learning something from this so i just wanted that's all i wanted to do i wanted to say that highlight this for you guys i think you should give it a read um because i think by the end of it you'll probably understand all the differences between roll-ups or at least have a good understanding of all the difference between roll-ups differences between sorry the different roll-ups how they work you know on not just ethereum but like on celestia and stuff like that as well so yeah definitely check this out i'll

link it in the youtube description all right so asn here who i believe works at the ethiopian foundation i'm i don't know if that's confirmed or not but they put out a post uh with it with a kind of like tweet caption saying fresh work on effectively verifying large amounts of kg kzg multi-proofs in the context of ethereum's data availability sampling research conducted with the impeccable uh enz guy this is anne's guy here and dan cradfeist of course now you can check out this eighth research post if you want to this is quite technical like very technical actually so i mean it talks about things like polynomials so if you don't know what a polynomial is then you're probably not going to be able to follow this post i can't follow it either but what i wanted to say is that this is the kind of work

that needs to be done to do things like dank sharing right like data availability sampling is key to the dank sharing kind of like rollout here it's what makes it work or what it's what makes it tick now how this differs to proto dang charting is that we don't need data availability sampling for prototank sharding because it's a much simpler implementation and we've also got that kind of like expiry going on every month of of those blobs there whereas full dank sharding the kind of like holy grail here requires a lot more research and development to happen and that's why we're not getting it you know you know we're not getting it in the next six months so to speak right so yeah if this is the stuff that you're into if you can read this stuff if you can make sense of any of the stuff

that's on my screen right now you should definitely go check this out i think there's also a little bit of a thread here no it's not not much in the thread either it's still pretty technical in the thread but essentially this is vital work being done to make sure that we can get dank sharding shipped obviously and shipped in a timely manner because at the end of the day it's all well and good to kind of like keep researching this keep developing this but if it's gonna take another five years probably going to be too long so we want to get this out there you know as soon as possible and that's you know one of the motivations behind prototank sharing is to get this stuff out there as soon as possible so great to see this kind of like research continue here check you can check this

out i'll link it in the youtube description below alright some big news out of arbitram today they finally announced a date for nitro now this is a bit later than what i thought it would be i thought that would be kind of like early to mid august but it will be happening on august 31st which is the year and a one-year anniversary of when arbitration one went live last year so pretty cool i guess they chose this date uh not not only because of that but that was definitely a factor into this but that isn't far away at all guys like i mean august 31st it's august 5th right it's like 26 days away it's very very close uh which is absolutely awesome like and for kind of like a refresher on what nitro brings with it they have like a few dot points here it's got advanced

core data compression which is going to drive down transaction costs ethereum l1 gas compatibility bringing pricing and accounting for evm operations perfectly in line with ethereum which is obviously better for user experience additional l1 interoperability including tighter synchronization with l1 block numbers and full support for all l1 cr pre-compiles uh a couple of things for debs here i think uh safe retriables geth tracing and many many more changes as they kind of list here so so yeah august 31st is the date for nitro i'm hoping that like as i said last time within a few days they re-enable odyssey because look the funny thing is right now optimism the optimism ecosystem is getting a lot of attention a lot of usage a lot of traction because they have the op incentives going live for a

lot of apps i i think uh arves op incentives went live vop token also went up in price people are saying it's like an optimism summer right now but uh you know and the funny thing is is that arbitration doesn't have a token yet so i don't know like when they're going to do their token right but i kind of like wonder what it's going to look like because i've said before that i think you know when rollups have their tokens and they apply it the uh kind of like uh to liquidity incentive and things like that it's going to be the same playbook we saw play out with the l1 there's going to be a flood of capital coming in it's going to be a lot of usage there you know a lot of it probably won't be sustainable but i'm curious to see what kind of like

the narrative is around these different platforms like i don't want to kind of like personally pick winners or anything like that like i don't think there's you can pick winners at this stage but i'm not biased towards any 1l2 but it's kind of funny to see like you know arbitrary and optimism are pretty much kind of like compared to each other because they're both optimistic roll-ups they're both generalized they're both pretty close in terms of kind of functionality at this stage nitro is going live on august 31st bedrock optimism's major upgrade isn't going to be live until q4 20 uh q4 this year so they're betting to the punch there but optimism has a token right to do the incentives arbitration does not but arbitrary i think has more of an ecosystem than optimism right now and has more users right now but you know

these kind of like things can change so are we going to see maybe an ebb and flow here or kind of like a balancing act where maybe optimism up uh kind of elite props arbitration for a bit and then arbitrary comes back with the vengeance and then kind of having this stuff go go back and forth so we'll see i mean it's kind of like an apples to oranges comparison to an extent because of the fact that one has a token and one doesn't and i really do think a token influences a lot of things some people may say it doesn't but it does like it really does and we have plenty of evidence of that but it more so influences things in like the short to medium term rather than the long term as we've seen with the ultel ones you know they're like they're

they're all sensitive the incentive programs and they're kind of like um their tokens didn't really save them at all from the kind of like bear market right and i think their user bases are down like dramatically like really dramatically and meanwhile l2s continue to grow continue to get more adoption so yeah we'll have to see how that all plays out maybe uh after nitro is live and kind of like obviously goes live again maybe arbitrary announces their token plans i don't know i have no knowledge here and i mean you guys know i'm an investor in both optimism and arbitrary so as i said like i'm not picking winners here like i have skin in the game for both of them i've skin in the game pretty much every l2 a direct skin in the game for every l2 except starkware um but i still like talk about

starkware all the time right like i still promote them so for me the way i look at the l2 space is i just want to put my energy behind all of them and all the ones that i think i consider particularly legit and considered to be really exciting and just highlight their their updates and kind of like give my honest opinions on where each of these things go leaving it at that couple of last things to get through so uni uh i guess like had a governance proposal here which was a temperature check for something called a unisop foundation that once that that kind of like a bunch of people want to create here now you can go read this i'll link it in the youtube description below but the tldr is to create a unisoft foundation that would be a major protocol to go through be the first

major protocol to go through the community governance process and will support the protocols decentralized growth reinvigorate governance and serve as a protocol advocate the team will be a team of of 12 with a couple of kind of um directors here sorry executive director and head of operations and a team of 12 so i think it's 14. they're requesting a 14 million operating budget for a full team of for three years and a 60 million dollar unisop grants uh program budget to cover three plus years to give grants out so they're requesting 74 million dollars from the uni dial which will be broken into two different disbursements with a first disbursement of 20 million dollars look i think this is a really cool idea what they're trying to do but the money that they're

requesting is quite high and quite insane i think that they should have should request less money and should also be kind of like broken up into more than two disbursements you can do kind of like an ongoing thing so that you basically prove that you can deliver on what you're saying and you're kind of like spending the money right before you get you get like a chunk of money now obviously it's back weighted here or back loaded here because they're only asking 20 million in the first disbursement and they'll then they want 54 million in and the second one but i think it should be more than two disbursements here that's my main issue with this thing i think the rest of the stuff that they're trying to do is really cool but that's a lot of money to take from the uni treasury are kind of like all at once

here for one initiative so to speak right but it is a pretty detailed proposal these people have been doing this sort of stuff with unisop grants for a while now so it's not like some randoms coming in requesting all this money um but at the same time i believe that uh you know they're obviously trying to budget these things and things like that it's fine to request like the money that you need but they it should be dispersed in a way that is kind of like fair and in a way that can be measured more than just two disbursements maybe maybe you do it like once every three months or something i know there's overhead the more frequently you do it because governance is a slow process and especially uni swap governance is a bit of a mess still but i think you know doing more than two

over three years would make a lot of sense but uh but yeah you can go read the kind of i guess uh uh replies here i think people are in favor of this kind of like proposal uh for kind of like creating the foundation and what they want to focus on um but i don't know uh if they're kind of like in favor of kind of the money side of it and how much money these things are getting but there's a lot of there's a lot of replies here right like you can see just scrolling down people have a lot of different opinions on this sort of stuff so you can definitely go read that uh but yeah that was my kind of like opinion on it is more i would rather see like a better structured kind of like i guess uh package here around the money

that's going to the this kind of like uh potential team and this is just a proposal right now it hasn't passed or anything like that it's literally just a temperature check to see how people think and give their opinions and that's exactly what i'm doing uh but yeah i just wanted to highlight this for you guys definitely check it out i'll link it in the youtube description all right so a git pop today announced a partnership with lens protocols so all git pop holders are now eligible to mint lens profiles so if that is you if you are eligible you can go meet your lens profile now i have mine i have the kind of like sassel uh profile on there which is really really cool that i got that um but yeah if you've been waiting to kind of like get yours you can you can now do

it if you have a git power up so you can basically just kind of like claim handle up here and with the address that you obviously want to kind of like claim it on and and you have your git pop on and get pop on and it should work just fine for you so just wanted to highlight that for you guys there today but i think that's going to be it uh for today so 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 the newsletter join the discord channel and i'll catch you all next week thanks everyone