ETH ETF news, EigenLayer on mainnet and more - The Daily Gwei Refuel #762 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the delway refuel where up the latest news e EOS system I'm your host and this is and the 10th of April 2024 all right everyone let's get into it so sorry for missing yesterday's episode everyone another rug fuel I hope you enjoyed the meme that I actually put in the deadly great Discord Channel when I announced that I wasn't doing a refuel uh just something fun there to tide you over but back today with a bunch of stuff to get through so first off we're starting off with some new ETF news I guess or like rumors SL news um but generally it's not positive I guess but I'm going to talk through exactly what it is so there's two tweets here the first one comes from Nate actually both of them come from Nate here where he

tweeted out several ETF issuers have met with the SEC with regards to the spot e ETF but according to Barons which is a uh media uh website those and I quote those discussions have largely been one-sided without the agency giving companies critical feedback in needed to finalize their products End quotes uh and the May 23rd deadline is quickly approaching now of course we all know that the main reason the Bloomberg guys are bearish on the eth ETFs is because there hasn't been this back and forth and as I've discussed before I don't believe there really needs to be much back and forth because of the fact that the E ETF is a copy paste of the BTC ETF uh but at the same time there has to be some back and forth right there has to be the paperwork uh done in time for these things to get approved on May 23rd

now Nate put out another tweet uh just today where he was quoting the Vanek CEO saying that they believe believe that the E ETF will probably be rejected in May and the full quote is and this comes from the vanex CEO where they say we were the first to file as well for ethereum in the US and we and Arc invest Kathy Wood uh are kind of the first in line for May I guess to probably be rejected uh so and then I think they continue uh vanex CEO continues and says the way the legal process goes is The Regulators will give you comments on your application and that happened for weeks and weeks before the Bitcoin ETFs and right now pins are dropping as far as ethereum is concern concerned and obviously using the pins are dropping to say that there's Silence from the SEC on

this but as I just mentioned you know I know that this is obviously the van XO one of the issuers saying this but as I just mentioned like there doesn't seem to be any reason for there to be much back and forth here on this but there is a deadline here it's like mid to late April I guess is like the deadline here in terms of just getting the paperwork done in time so overall you know not bullish news I guess or not bullish approval news on on this right now it seems that the you know as I've said before the market and and in general people have fully priced in a May 23rd denial here uh from both from like a sentiment perspective but also from a price perspective but at the same time I think that either way it's going to be very interesting to see what happens on

May 23rd right like as I've discussed before and approval obviously is going to be super interesting because it'll be completely against the consensus take right now uh and it will be completely against I guess like what everyone has been saying for a few weeks now is that the ETFs are going to get denied based on the fact that there's not that back and forth with with kind of the paperwork there not that back and forth between the issuers in the SEC which would have implications for future ETFs um you know crypto and non- crypto and how the SEC maybe taking a different approach now to any ETF that looks even a little bit hyped up because they don't want to create a circus around it they don't want to create noise around it so that would be an interesting application there and then of course it'll be

interesting to see what kind of flows eth gets because obviously uh Eric one of the Bloomberg guys has said that he does he believes eth is Small Potatoes compared to BTC and the flows won't be that large so it'll be interesting to see if that is true or not but then I think it's even more interesting to see what happens when the eth ETFs get denied because it's going to be uh I guess like what reason is the SEC going to deny these things because there as I've discussed before the the two main reasons that people think that the SEC are going to use is one they're going to say that ether is a security or they believe eth is a security or they're unsure of eth status as a security or commodity and because of that they are denying the eth ETFs or two they deny

based on weak correlation between spot and Futures either of those reasons to me are you know scorched Earth approach very weak they're going to get sued over it you know so on and so forth but I think that's the way we're at right now people are convinced that they're going to get denied and they just waiting for the reason as to why they're going to get denied here like what reason is the SEC going to use because that again has broad implications for all of crypto basically but it's broad implications from the for the SEC I think broad implications for ginla uh and we're going to see lawsuits following that of course you know no matter what reason they used to deny the EFS I think there's going to be lawsuits regardless of the reasoning given here but it's going to be interesting to to see how

that shakes out and unfortunately there's still six weeks left of this circus and all of this could change like let's say in the next couple of weeks we start we start seeing some actual back and forth between the SEC and the issuers then all of this changes overnight basically and I I think that uh people would immediately get bullish on the E ETFs being approved because as I said the main reason that they're bearish on it is because there hasn't been this back and forth yet even though they're kind of has been I mean it's kind of funny that the uh the issuers are actually meeting with the SEC uh and it's been one-sided so what does that meeting actually look like do they just sit in the meeting and the SEC people just sit there and say nothing and just stare blankly at the walls or something

like I I don't know what that actually means because it wasn't uh coming from I guess like anything but this this media article here which was based on quote unquote sources right we all know what that means you know they're not going to reveal who their sources are here but what does that meaning actually look like you know is the SEC just completely stonewalling like the issuers are kind of talking to them saying hey you know what do you need from us to get this over the line and the SEC is just staring back at them with a blank face like can't imagine that's actually what's happening but I'd be very curious to know what is happening there you know what the SEC is saying or what they're not saying because they can't really you know say things that they're not you know supposed to say or not allowed to

say that it can't really give confidence when there isn't confidence but at the same time are they taking this very kind of brutal and Stonewall approach because of the fact that they hated how the BTC ETF circus went the fact that there was so much hype around it so much media attention on it and the fact that you know you had the fake news from the coin Telegraph in turn and then you had the sec's Twitter account getting hacked on January 9th you know a day before the BTC atfs were approved uh you know did that uh kind of like stir the pot too much did that did that wake up the hive too much and caused too much of a Ruckus and that's why they're being so Stonewall about it so maybe that's hopium some people will call that hopium but I'm just trying to run through all

of the different I guess like facets to this because there are so many different things that go into this uh because we're really just speculating on on really nothing at the end of the day we're speculating on little bits of information that we get here and there we're speculating on what's happened in the past we're speculating on people's different opinions on these things and then ultimately we're speculating on what the market impact for eth will be uh whether it gets denied or approved I actually think both things are going to be bullish for eth I think the denial has been priced in already so by the time it actually does get denied I don't think there's going to be anyone left to sell really uh but then an approval will be a surprise as well people will be like oh okay they actually got approved

and that will be bullish too because no one was expecting that so either way I actually think it's going to be fine for for eth over you know I mean Maybe not immediately you obviously Traders do their thing if it gets them I Traders like ah time to short eth right time to sell off eth but I don't think that's going to be a lasting thing at all I really do think that uh you know in general kind of eth uh the the denial has been uh you know uh priced in at this point and the last thing I'll say on this with regards to Market impact if you go back and look at what happens to uh BTC before it even got an ETF it actually grew in market cap uh the same size as e market cap so its market cap went up by you know hundreds of billions

of dollars you know basically the same size as e current market cap and that was not ETF flows that was flows outside of the ETF so anyone saying that oh eth can't go up without the ETF I think that's completely wrong eth can can very easily go up without the ETF I mean there are many many different reasons people buy eth and speculate on eth and speculate on assets generally but I think it's wrong to say that eth can't go up without the ETF flows yes it'll probably have a harder time uh especially going up against like Bitcoin you know the E BTC ratio and things like that that may be harder because of the fact that it can't compete with BTC flows but at the same time I don't think needs an ETF to go to like that 152k price that I've been saying this cycle I

think that it can go there just as easily with or without the ETF the ETF is not just some magic money printer guys it's not some magic thing that's going to uh basically Moon any asset that that kind of has an ETF what it does is create a really bullish narrative and as you saw the narrative trade play out of BTC going from like 25k to you know whatever it was like 50k or something before the ETFs were were approved or maybe even higher than that uh and you saw that kind of play out there that was a doubling of BTC at least that was a doubling of its market cap which uh I went back and looked I think was around $400 billion worth of market cap which is its current market cap uh I think yeah its current market cap is about 420 billion so when you

look at it like that yeah I mean there's plenty of money out there there plenty of money that speculates on things for different reasons so that's my general view on the the market impact there but yeah another 10 minutes of a refill talking about the ETFs hope it was insightful though as usual but as I said we still have six weeks left of this circus unfortunately uh and I'll be covering it as best I can can uh I think it's just critically important to cover this stuff and and to to make sure people are educated on this um and yeah we'll see what happens over the next uh few weeks all right moving on to some ethereum specific news on the technical side of things vitalik shared This eth research post that was put together by Tony here uh analyzing uh what we're calling correlated attestation penalties

which is a recent proposal from vital which if you can scroll up to the top here he proposed this about 2 weeks ago where he titled this supporting decentralized staking through more anti correlation incentives so you can go read this post for yourself I think I may have highlighted it on the refill at the time but the gist of this post is to basically try and identify which validators are part of pools and which validators are part you know solo staking which are smaller operations so on and so forth and the way that you would do this is by looking at the correlation kind of penalties between validators so essentially for example if a validator was to miss an attestation but then that validator is not alone like let's say maybe a better way of explaining this is let's say you know coinbase is validators they have 100,00

of them whatever it is and then one of them or a bunch of them Miss attestations at the same time well you can correlate that you can basically say okay well these validators are all part of the same node operator set they're all run by the same person because typically the validators will be run on the same full node or will be segmented into like certain chunks that will be run on the same full node you know talking to the same full node and run on the same inv structure so essentially you have a way to correlate there whereas for example if my validator misat stations you can correlate that to me as a note operator but like I don't have hundreds of thousands of validators right I mean I wish I did but I don't have that many validators so you can basically say that well you know it

looks like this person is more of a solo stake up because they've got tens of validators or or you know maybe less than 10 validators right so there are Solo Staker there whereas if you start seeing correlation between tens of thousands of validators then you could be like okay well this is a staking pool right this is a staking service so the whole idea is to use this information to potentially improve uh ethereum's decentralization of their validator set and basically make it um you know less punishing for solo stakers to be correlated and more punishing for pools to be correlated so that's not at least that's my understanding of how this works here now as I said vitalic proposed this two weeks ago it's just a proposal it's not an EIP or anything like that it's not a change that's going into the network anytime soon from what

I've seen um but yeah you can go read that proposal there but then the analysis that Tony did was basically putting some hard numbers on this and he's got a bunch of nice uh diagrams and charts you can look at in this post which I'll link in the YouTube description below and from my understanding basically what he showed is that metallic research uh was true you can actually correlate or you can actually basically study the data and see that uh when um validators Miss attestations uh they see they tend to do it as part of a group so if the validators are all part of the same group then they'll miss those same attestations uh based on on the same kind of like uh reasoning that the other ones miss the attestations they all kind of correlate there so you can go check out the data for yourself I mean I'm

still ingesting this overall there are back I mean there is back and forth on the thread about uh whether this is actually you know data that's good enough to identify these things whether we should be using this to inform decisions around um you know increasing penalties for pools or decreasing penalties for solo stakers and so on and so forth um there's lots of information here to unpack there's lots of back and forth to unpack and obviously there's lots of different incentives that play as well because at the end of the day the incentive for I guess like bigger pools is to essentially cast doubt on This research and cast out on on this generally because for them if we were to implement something like this it would basically make their overhead uh larger so they would have to essentially if they wanted to mitigate this they would

have to split up their um their staking operations into more segmented places so for example right now if coinbase is running all of their staking on one data center or one kind of like uh you know AWS or or Google cloud or whatever it is they would have to change that and basically split that up and split that up into not just different Cloud instances but different kind of places all together so let's just say coinbase was to run their validator you know a bunch of them in uh the US a bunch of them in Europe a bunch of them somewhere else so that there wouldn't be that correlation between them there now obviously that's better for the decentralization of the network and that tends to kind of I guess like dissuade pulling of assets into just like one uh you know one place essentially so

overall better for decentralization but at the same time it does increase operator overhead I mean not probably not that by that much to be honest but it does generally increase the the overhead here I then you think about the implications that it has when Max EB goes live obviously with Max EB going live there's going to be a lot less validators on the network so your correlation will be done uh based on less validators so uh yeah I mean it's based on the amount of e Stak as well like obviously less validators uh you know once you consolidate with Max EB doesn't mean that the eth stake is going to go down like if you have you know 32 eth uh on 10 validators so 32 e each on 10 validators you have 328 total staked and then you consolidate that down to one validator you still have 3 28th

state so it would be based on I imagine the Stak eth and not so much the validat as the the correlation penalties themselves but then it becomes the question of okay what what is that going to look like are people going to essentially uh uh forgo consolidating because they want to be able to split up their their operation more are they going to use DBT uh to split that up as well uh that's at least from my understanding but this is a very fresh kind of research proposal two weeks ago by balic and this analysis was only done today so yeah I mean that's my kind of I guess like um I'll read on it and Tony's conclusion in his post was that implementing anti-correlation penalties is a great way to counter economies of scale without requiring the protocol to differentiate between individual validators while this analysis looked

and uh and staking at staking operators and and consensus layer clients there are many more properties to analy such as hardware setup execution lay clients geographical location ISP provider Etc finally anti-correlation penalties are a great way to improve decentralization and the ethereum community should definitely definitely consider it in future updates I will talk to the first part of this where he said that it's basically a way to counter economies of scale I think I didn't really directly mention that but I mean that's one of the the big points here is that essentially staking pools have these economies of scale that they can take advantage of by basically centralizing all of their operations and this is a way to force them to decentralize their operations force them to not uh use economies of scale to their advantage which is a pretty good way to I guess

like mitigate that uh sorry it's a pretty good uh Target to mitigate but at the same time I think the debate is around you know whether this actually mitigates or not so we're going to be doing more analysis on this there's going to be more data coming out and there's going to be a lot of discussion around this so I encourage getting involved in those discussions if you're interested if you're a solo Staker as well he definitely in your interest to do this uh but great work here both from obviously vitalik but also Tony for putting data to this all right so a big day for Igan layer so they have launched their main net just randomly there's no announcement that it's coming soon or no announcement of a launch date they've just launched it today and with that came their Flagship product which is

Igan da you can actually go to app. .xyz go to the ABS dashboard and you can see that the currently live ABS uh is Igan da and you can click into that and then you can see a bunch of stats around this so you can see the amount of e that they've got uh staked against the Igan da the operators running the actual I da like they're all kind of um listed here uh you know familiar names like Pier 2 and uh I guess like all noes and lugan noes and Stak you've seen these across other providers there um but yeah I mean the only ABS that's live today's IG da you can go to operators and you can see which operators are currently running on as part of IG layer which I spun up to run with IG layer and then you've got the usual kind of dashboard uh and and

the restake dashboard here to to restake uh if you want to uh as part of the IG layer effort here but the full information about everything is in this Twitter thread which I'll link in the YouTube description below uh I'm very excited to see Ian da go live in particular because I really want to see projects start us utilizing IG da and see how scalable they can become because as you guys know rollups use ethereum L1 for da they're currently using blobs they were using call data but with igen da now uh layer twos as a general term get to use a you know in my opinion a very secure uh and very economically secure offchain da solution with IG da now of course if they're using offchain DA they are not a rollup like a rollup has a very strict definition that you

have to use the same layer or the same settlement layer the same root of trust for both your kind of proofs uh and and and and your data essentially uh and I think that uh the ler 2 definition is a bit more loose about it I know that some people disagree with me on this I think even vitalic doesn't refer to uh what we call validium as layer 2s but validium is basically a construction that uses you know it still uses ethereum L1 for its proofs for its bridging and all that but it uses a offchain or a non- ethereum L1 data availability Network so there are many of these things obviously Celestial went live recently you have a veil going live soon IG da went live today you have data availability committees that are just made up of a bunch of permissions kind of operators

that aren't part of any any project here they kind of like their own thing but as I've discussed before I I truly believe that Igan da is the I mean it's not the gold standard ethereum L1 da is the gold standard but IG da is the next best thing I do believe that the fact that it has you know similar node operators to what ethereum has it has uh e economic uh security behind it with reak eth um and it at the end of the day I think it's even more scalable than any of the other da there right now I think that IG da is the uh the golden Choice after ethereum L1 for your da now of course IG da because of the fact that it is uh you know purpose built to be a DA layer uh and it is not like ethereum L1 it is not

you know as limited as ethereum L1 it has more throughput it's going to offer cheaper costs on the Da Side for these I guess l2s but in saying that right now we aren't even at capacity for for blobs right we were for a little bit because of blob scriptions or inscriptions on there but right now we're not really at Capac on the da side of things but that can change very very quickly uh obviously with um some of these more I guess like inherently scalable l2s like eclipse going live they're using the svm which can do I guess like more TPS and more scalable than the current crop of evm l2s uh there's fluent there's move there's a bunch of them kind of going live here they're not going to as far as I uh kind of know going to use blobs from the get-go they're going to use

offchain da and I think that they should be choosing IG da here I think that that that is the best best solution for them or the best choice for them uh and I'm great to you know I'm very very happy to see this all live here today because it now gives those uh I guess Builders the option so as I said there's a long thread here from the IG layer account on Twitter that discusses exactly what went live today there's uh no slashing live yet I believe uh if you actually go there's one tweet in particular where they say um there's no slashing live I'm trying to find the Tweet here uh where is it I should have had it up before uh but yeah there's no slashing live today none of that sort of stuff and I think the yields are definitely not going to

be oh yeah here they they say it uh this main net launch does not include in protocol payments from avss to operators and slashing so we are allowing the IG layer Marketplace to develop and stabilize before introducing in protocol payments and slashing to main net later this year so essentially it's I mean it's basically in in beta right now this is not like I mean it's on mainnet but it's not like a full kind of product launch uh there's no yeah there's no payments from ABS operators right now and slashing isn't implemented at all so it is that kind of soft main net launch that they're doing here in order to bootstrap this Marketplace in order to bootstrap the ugan ecosystem which I think is a fair play um but yeah if you are interested in I guess becoming an operator you can register with IG lay

and opt into running avss uh if you are part of a pool such as like ethery or swell or you know whoever else they will be doing that on your behalf they'll becoming operators of these um of IG layer on your behalf there so you can kind of get involved and see what those uh what those communities are are doing there but yeah anyway you can go read this for yourself I'll link it in the YouTube description below for you to do so all right speaking of data we have a nice little recap of EIP 4844 blobs uh one month on now I did say to you guys that I'd love to see data coming uh as the months went on from when blobs went live because of the fact that we're not going to get good data unless we wait a while and so we have really great data

here so Liam who is one of the uh cor people as part of optimism put out a tweet with four charts so you can see here that the median gas Med Ian gas fees have lowered by 10 times from 50 cents to 3 cents blobs are meeting L2 demand despite inscriptions the optimism Collective profit is at record highs and l2's seeing all-time high record usage are five times in demand now for anyone who's been following the refuel and anyone's been following you know a lot of people's tweets and and casts on faras are there uh this comes as no surprise to you and anyone who's been using these networks I mean you feel the cheaper fees right so overall cheaper fees more scalability more usage and just a huge boom to the ethereum ecosystem and especially on the revenue

side which is something that people don't talk about a lot these l2s are making a lot of Revenue right now now of course that is because of the fact that we lowered the cost of data and they're getting basically I wouldn't call it like a rebate but they're getting basically some kind of it's maybe akin to like tax incentives of um you know when when when when kind of governments give tax incentives to businesses to build within their kind of like country or to build within within a city for example it's the same thing with ethereum we're basically given like these I guess like incentives to the L2 to the Roll-Ups to build and to scale up themselves because of given them cheap da so they don't have to worry about da cost anymore now they have to worry about the execution layer side of things

so they scale up themselves as we've seen you know Bas is doing but arbitrum is doing it as well with stylus and there's a bunch of other ones doing it too so essentially it acts as like an economic stimulus package for these l2s which has been great to see so I do expect those L2 revenues to level out over time I I do expect them to still be high because the l2s are going to be capturing a lot of Fe revenue from their users but at the same time the data costs are going to go up as well they're not just going to be at Rock Bottom because as demand goes up on the execution side the data uh consumption goes up on the on the on the blob side and then eventually you reach a point where uh blobs start kicking in the usual fee market like they did when

inscriptions was taking up a lot of blobs and then we have to increase the blob capacity so it is that as I mentioned before cat and mouse game of chasing data chasing the execution scaling and just basically uh ping ponging off of that there but you can go check out these charts for yourself I'll link them in the YouTube description below for you to do so right taking on the layer 2 topic Jesse Pollak here uh tweeted out or casted out on on farter that there was a few minutes of 300 to 400 transactions per second on base with no issues now I do want to talk a little bit about this because uh I think that when he says no issues here he's maybe being a little bit generous uh because there were a bunch of failed transactions in this now of course when

you talk about failed transactions uh it's different to I think C salana handles failed transactions it's not an Apples to Apples comparison here but at the end of the day like when you're talking about real TPS that has been landed on chain I don't think it was 3 to 400 and also this is like extrapolating it out from a few minutes of activity which probably isn't the best way to do this either and this is again why TPS is a really really measure of activity in my eyes I don't think it's something that we should be targeting at all I really think that overall we should be targeting uh you know the other metrics maybe maybe not tvl cuz I also think tvl is isn't great but things like fear revenue for these l2s which again isn't perfect but it is a better metric I believe than TPS uh

gas used as well uh um and and beyond that like the active addresses on the network too I know that doesn't map one to one with users but like active addresses is still I think better than than TPS overall I just don't think that TPS is the best metric out there and I don't think that we can be kind of extrapolating you know 3 to 400 TPS from just a few minutes of activity and then when you actually look at the real underlying landed on chain TPS actual process TPS is going to be lower than that because I think it's a bit hypocritical of the ethereum ecosystem to I don't know make fun of salana or say oh look at all the failed transactions on salana and then the salana people trying to do mental gymnastics and say well we have failed transactions because we've got so much

demand when in reality it's just a lot of spam I mean you don't really I mean to me it's not like it's not good demand it's just like spam like yes okay there's a permission that's environment and anyone can can do what they want on them but doesn't mean that us as humans have to Value every every little bit of activity the same way we can have subjective values about it and at the end of the day I think we can all agree that pure span that adds no value to the network is uh is useless and should not be encouraged on even on a permissionless network and we should find ways of mitigating that or making it costly to spam the network I mean we've already done that on ethereum since day one we have priority fees right we have a way to meter that where

essentially if you want to spam the network go ahead it's a permissionless environment but hey you're going to pay for that you know you're and you're going to pay dearly for that so L1 deals with that with high fees and it kind of dis that but when you come to L2 they now have to deal with the similar things that salana has to deal with whereing that they have cheap fees so they're they're prone to spam or they're prone to you know failed transactions so I don't think that we should be kind of a grave dancing or anything like that as I've always said l2s compete with these monolithic chains like salana like they are execution environments L1 ethereum does not so L1 ethereum doesn't have to worry about th those issues of spam and fail transactions because it's costly to do that but in at the same in the in in

the same vein as I said like you you can't be comparing ethereum L1 to salana because ethereum L1 is um is not an optimized execution environment is not trying to be super scalable you know it does like 15 TPS I know I said that TPS isn't the best measure here but that that's like capacity for ethereum I mean I think if all of the transactions were eth transfers we could probably hit like 60 TPS right so yeah I mean when you look at it from that perspective if you want to use TPS as a metric here there is a very strong kind of argument to be made around the fact that you know there's real TPS versus fake TPS or like I guess like non onchain or non-landed TPS and all that sorts of stuff but yeah I mean the real issue at the end of the

day is that when it's cost when it's it doesn't cost much to spam you're going to see spam especially in an environment like a permissionless blockchain where there is financial incentive to spam because for example if you're trying to do meev and then you're trying to beat all the other people trying to do meev and it's cheap for you to do that you're just going to keep spamming the chain which degrades the user experience for everyone so I I just think I wanted to make it clear that uh you know even though salana is having these issues it's not exclusive to salana it's going to happen on the l2s but again this goes back to why I say that having an L1 be a monolith and having to deal with these issues uh and and try to scale up execution with while keeping fees low at

layer one I've always believed for many years now this is the wrong approach this is the wrong way of doing things and I believe it's not sustainable or scalable long term and I think I've been Vindicated on that I think that is playing out and sure they're going to implement fixes they're going to implement ways of um of of of making the network better but at the end of the day like I think it's a fundamental thing where essentially it's not really based on technicals it's more based on on the economics behind it the game theory behind it and the fact that uh even when it comes into the technicals there is a kind of sealing here on this or there is kind of like a limit to this whereas at the l2s they do have to deal with this issue but they deal with it in kind of

like a contained way L1 ethereum doesn't have to deal with this it has to deal with me but it doesn't have to deal with the issue of spam because we have a mitigation there with high fees yes there's a trade-off here in that ethereum L1 has high fees but then the l2s all get to experiment on different ways of dealing with this sorts of stuff all get to handle it in different ways and then we have many l2s so it's not just like if you're on you know one of these l2s uh you're trapped there basically uh if it becomes you know if it becomes bogged down or if it becomes uh or if it comes out that okay well they can't scale because of some fundamental flaw or something like that there are other experiments playing out and at the end of the day in a properly

constructed L2 you're always able to exit your funds on Main net so from my understanding even if if you were to uh not be able to get your transactions through on uh the L2 itself because the sequence is offline or getting spammed you could still pay the fee on L1 ethereum and uh do that what is it called there's a there's a technical term for it escape hatch you can still Escape back to L1 and get your funds out even in the worst case scenario so that's a really unique and and nice property of rollups here but we'll have to see how this all plays out guys I think that anyone claiming to have scaled at this point is lying l2s l1s doesn't matter we haven't scaled yet we are in the process of scaling we are at the start of the journey here and we're

going to keep scaling from here but all these grandio promises of you know hundreds of thousands millions of TPS and all that like as I've said before narrative is narrative reality is reality and the reality is is that none of this stuff is scalable still right now we're in the process of doing it ethereum is doing it at one way other chains are doing it other ways and we'll see which way wins out long term I mean I truly believe that the ethereum rooll up Centric road map the modular approach is the winner and will continue to be the winner from here going forward but it's a winner in relation to the monolithic approach it is not the the winner in relation to what scale we need to be at yet we still need to scale from here thousands of times guys like there is still so much work to do but I'm very

confident that we're going to get there so yeah anyway just wanted to have a little bit of a rant about that one there and last thing I wanted to highlight was just this video here that was shared by Taki or Taki sorry if I've said your name wrong there um from this conference that took place in New York recently so this is Nick shal basically giving a 7 minute Spiel on what makes eth and ethereum valuable and what it enables for tradire institutions and institutional investors generally I think this is a really great clip it's probably not news to any of us but I think that you should be sharing this clip with anyone that may be on the fence about ethereum or eth and doesn't understand it this is really great so definitely go watch this video If you haven't yet just wanted to give a shout

out there I'll link it in the YouTube description below but I think for today that's going to be it 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 newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone