Ethereum chain split explained, Arbiscan live & more - The Daily Gwei Refuel #197 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel raricap the latest news in ethereum ecosystem i'm your host anthony sosano and today's the 30th of august 2021 all right everyone let's get into it so a big kind of friday night i think friday night for me anyway after i recorded last week's last refuel uh just after kind of i guess midnight or around midnight my time there was a uh a chain split on mainnet for ethereum uh now if you want a full breakdown of exactly what happened and the technical details as well you can read this amazing thread from calvin victor who works with the optimism team he broke it down really great in this way i mean it's a long thread but he goes through the technical details from like a higher level and i was able to understand it uh and he kind

of like explains it really well so that's kind of the technical breakdown there but if you want just i guess the high level stuff i'm your guy so i'm going to explain it to you now so essentially why we had a chain split on mainnet was because there was an exploit found in an old geth version the version 1.10.7 uh and then there was a a fix issued for this once the exploit was found uh in in version 1.10.8 of get of go ethereum or geth um and then by up updating to this version you were protected against this exploit if you were running like a full node or you're a miner whatever whatever kind of like uh i guess like uh node you were running there um but essentially what ended up happening was that the announcement was made and in the announcement the kind of like all

developers said well this is a critical upgrade because there's this exploit and if you don't upgrade this is really bad for the network essentially i mean they didn't exactly say that but you could read it like that and i remember on the refuel i also kind of like signaled to you guys that if you were running nodes you should definitely upgrade to version 0.8 here um but essentially why there was a chain split was because the the exploit that was able to kind of like be activated on i guess like on main net against the old clients uh caused both of uh caused the chain split because it basically messed with the state of the chain from that's the kind of like what i got from from calvin's thread here and it made it so that the old clients and the new clients weren't agreeing on what the head of the chain

is and the head is basically the latest block of the chain or another name for it is the canonical chain now the good thing about this is that most of the miners or the heavier nodes so i mean i should explain this before i kind of like go into this uh not all full nodes are created equal on a theorem right like the full node that i run the full node that you run at home it is not the same thing as a full node that someone like infuria or alchemy runs or an exchange runs or uh the miners kind of like talk to or run themselves this is because there's more transactions passing through those things or using them as kind of like relay networks or kind of talking to them for example when you use metamask the default full node that you're talking to

is in fuhrer so the infurious system they're running their own nodes now if infurial was running on the old chain or sorry on the old client the 0.7 version of geth then what would happen is that your transactions that you were submitting via metamask would go to the chain that had forked off because we had the chain split between 0.7 and 0.8 your your transactions would have ended up on the non-canonical chain instead of the the canonical chain which is the the real i guess for lack of a better term the real chain the one that's actually the real ethereum the one that most of the network agrees on now thankfully most of the miners you know the uh inferior and alchemy i'm pretty sure most of the exchanges as well had all updated and were on the correct version so that basically the heaviest chain or

i guess like the the canonical chain was the correct one right um and the miners that weren't well they were mining like a stale chain for a little bit there were still transactions being processed in there if those transactions were being relayed via a chain that wasn't on sorry via nodes that weren't on the 0.8 version but generally it seems like we dodged a bullet here now the reason why this was able to be exploited was because it was a public announcement and the exploit wasn't like i mean the the core devs didn't give the exploit to to people to kind of like uh use on the network right they didn't just say oh here upgraded or well by the way this is how you exploit it what ended up happening is that people like smart people can basically look at the code difference between 0.8

and 0.7 right of the client and basically say okay this is what they changed okay so why do they change this what can this lead to and essentially the the um the exploit was reverse engineered uh and basically used on on my own ethereum mainnet and also used on other evm chains such as what wasn't used but it was it could have been used against other evm chains like polygons pos chain they had updated so they were all good but binance bsc i don't think they had updated their change so there was kind of like a bit of a mess there but you know i'm not sure kind of what the goalie's there i mean i think cz runs all the nodes anyway so you probably just like told these minions to go update the nodes but anyway um and then even like i think avalanche they

had to write an evm compatible chain uh using this sort of stuff so they had updated as well but essentially uh this was kind of like really wild because as the kind of like first chain split happened uh sorry on ethereum because this exploit was kind of like um it was activated it was kind of like i mean for lack of a better term was kind of like watching blockch a blockchain kind of like terrorist attack where you had like the city and then all these blockchains in here and then like you had like a i guess like a bomb go off in one of the chains that split the chain off so you had the bomb golf and ethereum then you had like an attempted bombing on another chain an attempted one another one i don't know just the way i thought about it was kind of crazy when i was watching

all this happen in real time where people were like scrambling being like you know what happened how did this you know what happened with why did the chain split you know what other networks are kind of like vulnerable like we have to warn them sort of thing so it's kind of really wild when uh going through that but luckily uh they already kind of knew what the exploit was because of the fact that um they were able to quickly discern uh what you know what transaction hash the expo belong to and okay what did it actually exploit oh okay well that was it and that was part of the bug so everyone just like update their nodes and we're all good now the the downside here i mean i guess like the the downside uh was limited because of the fact that most people had most of the um

heavier economic nodes had upgraded but if they hadn't if most of the network was still on point seven this would have been really really bad um i think i i think like there would have been much more of people's transactions going to the quote-unquote wrong chain or going to the kind of one that the exploited chain or whatever and this would have maybe required like a rollback or something like that or at least in a regular state transition or state change and those are always really messy um and there's only i mean that's only happened once during the dao from memory um but yeah we definitely lodged a bullet now you know martin here is one of the core devs he went on to say in another tweet after announcing kind of like uh this kind of chain split here he said this concludes our experiment with

public announcements for hot fixes now what he means by this is that i i mentioned that they publicly announced and and you know made noise about the fact that hey you need to update to this new client because there's an expert in the old one usually when you kind of like notif when you i guess like notify people about an exploit you do what's called responsible disclosure so this is carries over from the cyber security world but essentially what you do is you contact all the relevant kind of like big name parties that are running your software or running the software and tell them hey you need to update because there's this exploit here we're going to try and keep it under wraps you know for as long as possible but eventually it's going to get out and it's going to be in the wild and people will be able to

exploit it so i mean what the what the um the geth devs did this time was was experiment which is like totally public kind of like disclosure um basically saying here like we haven't kind of like um uh we haven't hidden i mean they're not hiding it but you know what i mean like that i haven't kind of like gone through that whole process they've just basically said everyone needs to update because there's this kind of exploit there but that basically gives the attacker an advantage too um so there's kind of like the debate whether they should keep not keep it to themselves but they should contact all the the bigger kind of nodes first like infuria you know alchemy all the exchanges the miners and stuff like that um to implement this hot fix but then it kind of delves into oh wow that

feels a little bit back room right that that goes against the the ethos of ethereum being open and decentralized but it's kind of a balancing act because if they don't do that well you see what happens right like i mean it's really amazing to me that um this actually happened on the ethereum main net and the wallet that actually did this or the address that actually did this was funded by a tornado cache so these guys weren't exactly amateurs they kind of like hid their their trail well here but it just shows that these public networks are incredibly adversarial and as soon as you have a window of opportunity for someone to exploit it they take it and we've seen this with d5 right plenty of times all the default protocols getting exploited over time but really um this is i i i think this

is the first uh uh thing that's led to a chain split there was other attacks on ethereum like the ddos attacks uh the um in late 2016. um the dow wasn't i mean the dow wasn't attacked but it wasn't on ethereum itself was on a smart contract level um then there was the um i guess the inadvertent kind of like chain split that happened with uh the optimism team accidentally kind of like triggering uh triggering one on main net uh that kind of like messed with infuria but that was all right as well so these things do happen semi-regularly i guess but this is just kind of like the trade-off because ethereum evolves so fast and it moves much faster um i guess you know and embraces hard forks and all that sort of stuff but generally yeah there's still this kind of debate about whether

we should do this public announcement or kind of like keep it hush for a little bit get the major economic notes to upgrade and then do a public announcement um but then martin goes on to say here you know the public announcement experiment was successful insofar as most miners had upgraded in time so the canon chain became longer than the bad chain but it was a really close shave so i mean maybe this public uh kind of like announcement experiment doesn't have to stop because maybe now more people realize hey you know when we do these public announcements just upgrade like asap don't don't dawdle here because the miners that didn't upgrade they actually lost out on revenue during that period of time until they actually switched to mining the correct chain um and you know some of the transactions would have been lost on

the old chain because they weren't part of the canonical chain people's transactions would have been reverted or whatever not reverted but like not obviously not part of the main chain so yeah it led to a bit of disruption i would imagine but if you want further details on this you can read calvin's thread here which again i highly recommend because it's a really great thread but hopefully that kind of gives you a high level overview of what happened and how these things are kind of like a bit technical to kind of uh i guess wrap your head around but at the same time it's it's not too i guess not too complicated i don't think i think really i mean if i had to kind of describe it in like one sentence what a chain split is it's basically uh i guess two or more

parts of the network disagreeing on what the current state of the network is and this can happen for you know a bunch of different reasons in this case it happened from with some kind of like uh exploit involving whatever it is i i don't even remember here like this is this is very technical i read it uh the other day but if you read this thread it'll explain exactly what happened here um but essentially uh you know one part of the network went off on one direction the other part of the network went off in another one and one that was kind of like the heaviest chain aka had the most kind of like mining power on it the most kind of like economic node power behind it was considered the canonical chain or the actual ethereum chain and then the ones that was like the weaker the weaker

chain um was considered like a dead chain and just like let's let's ignore that and uh that's basically how it ended up so yeah everything's fine now i mean it's funny the market didn't even react to this at all it actually price actually pumped at the time which was i mean this is crazy the markets are so inefficient like every day you just see more and more how these markets are like super inefficient but i think that on the flip side the market may have been smart enough to know that this wasn't actually like a huge deal uh because it hadn't affected the majority of the network but i think that it didn't really get any press coverage until about half an hour after it happened and by that point it had already been figured it out i figured out that everything was okay uh and that it

wasn't as bad as we as as it could have been so maybe you know the market not reacting or just like pumping a little bit on that didn't it didn't really matter it was just like kind of inconsequential there um but yeah just generally markets just love to be uh to do their own thing i think and don't really pay attention to these day-to-day things but anyway hopefully that explains that i'm gonna move on to the next stuff because there's a lot to talk about so i put out a tweet earlier today where i said this week in crypto is going to be very fun now i mean there's a few reasons why uh one crypto's always fun i mean really like it's never really a boring day to be in crypto two i expect the nft mania to continue i mean i don't think that's

slowing down maybe the speculation slows down but we're going to keep seeing many many many many projects spin up in that area there's going to be much more people coming into the ecosystem it's just going to be crazy right um three i mean i didn't really talk about the prices too much but like i feel like i don't know we've been the prices have been going sideways for a little bit maybe this week is the week that we kind of like uh have a bit of a have a bit of a breakout and maybe uh have some positive price movement but we'll have to see but anyway the major reason why i said this is because abertrum now arbitram remember said that they were going live in august i mean we're almost at the end of august it is the 31st tomorrow that's the deadline

for them i mean i'm betting they're going to go live on the 31st already um but they announced today that rb scan is now live so this is their um a block explorer they eat the scan like block explorer that pretty much every scaling solution has or is going to have obviously optimistic ethereum has it already called optiscan uh but this is really great to see i think this is one of the major things that they were waiting for they probably didn't want to go live with their network before this was out because of the fact that it would have been uh really hard for people to kind of like look at their transactions on the existing explorer that they had which is quite basic and people won't use that interface would be confusing for them so i think what arbitrary wanted to do was offer the best

experienced users as possible from from kind of like the get-go and you know it's a close shave right they're coming cutting it very close here but i do expect them to go live on the 31st now i don't know in what capacity they're going to go live in i don't know what guard rails are going to have in place i would suspect it's going to be similar to how optimistic ethereum launched or at least sorry optimism launched the optimistic ethereum with 50 000 transactions per day limit but i don't know if it's going to be that limited because if you remember optimism only had like two apps live during that and now they have three with lyra but they had synthetics and uni swap v3 and arbitrary is launching with a lot more than two or three apps it's launching with like a whole ecosystem of

them and there's gonna be bridges already from some centralized exchanges i think ok x has a bridge in um i wouldn't be surprised to see coinbase support it either which i'm actually going to talk about in a bit um but essentially i i yeah i'm just not sure what garages are going to have in place if it is a 50 000 transactions per day that's going to feel very quickly in my eyes i think the amount of hype behind arbitrary and people are going to be bridging in they're going to want to experience layer 2 on ethereum there's already kind of like these solutions with the bridges as well with with hop and connects and stuff like that that are going to support instant withdrawals and stuff so yeah i i expect this week to be really fun with with arbitrary going live but i will maybe

caution a little bit of i guess like maybe i mean i i tend to get like overly excited myself maybe you don't get your hopes up too much just in case the guard rails they've put in place are quite limiting because that might kind of like put a little bit of a i guess like a damper on on a short-term adoption because if it's only 50 000 transactions per day i mean that's not very many at all the ethereum network does 1.1 million at the moment it can go up to like 1.6 ish before i mean the block's always full right so i mean it's based on the gas limit and so i'm going to go into that right now but essentially 50 000 transactions um a day isn't very much it's gonna get filled very quickly especially for uh something launching with an ecosystem

that arbitrary is launching with so we're gonna have to see how it plays out but hopefully tomorrow on tomorrow's refuel that the day after is refuel i'll be able to kind of i guess go through that uh you know the fact that we have arbitrary live and see what's live on there you know maybe maybe i'll have you i'll definitely have used it by then and bridgette and everything like that but this is just cool like this is the main reason why i put out you know this week in crypto is going to be very fun is because of this and obviously optimism is still continuing on with their launch as well i've been playing around with all the apps on there too which has been super fun and all the other l2 is still going live and and kind of like coming soon as

well i mean but i think this week is definitely going to be a lot of noise about albatroom because it's been hyped up for months now and and i'm really looking forward to seeing it but anyway we'll have to see how that goes i'm going to move on for now uh speaking of actually the layer 2 ecosystem this flew under the radar during the week and i don't know why it did but essentially coinbase put out these blog posts saying uh coinbase protocol team advances crypto community which is the trdr is that they've put out a basically a um i guess like an announcement saying they're hiring for their protocol team to help scale blockchains and contribute to the broader developer ecosystem now one snippet that really stood out to me was this little paragraph here where they basically go over integrating with ethereum scaling solutions down here

they said that just as they we announced support for the polygon network for both coinbase wallet and the extension we plan to integrate polygon as our first scaling solution for coinbase so i'm assuming this is the pos chain and then they say our goal is to explore similar scaling initiatives with l2 such as optimism arbitrary and starkware over time i don't know how this flew under the radar because this even for me like this is absolutely massive right because i've been going on on the refilling of my newsletters i mean everywhere for a long time now that the way we get people on to l2 is through these uh centralized exchange services uh because they are the on-ramps they're like we can't have people users on ramping to ethereum layer one and then going to layer two because it is very expensive to do that

still like just um depositing into the bridge is still you know it could be like ten plus dollars just to do that and if we want users to experience like a low fee kind of solution we need to bridge them directly into the layer twos so i'm just like super super excited to see that not only i mean not only are they supporting kind of like layer twos here but they're actually supporting other scaling in solutions like polygon and i think that it's going to be interesting to see which ones they support first right because they can kind of act as a little bit of a king maker here at least for short-term adoption because if they support optimism instead of arbitrary first well you know that means that optimism is going to get the network effect from coinbase first before arbitram which many people will maybe people will call

unfair they'll say there's a bias there because i think you know optimism and and and uh and coinbase share investors but i think avatram and um and coinbase would probably share investors somewhere too so maybe that's not and definitely stockwear as well maybe that's not a big concern um but generally maybe they just do it all at once like i think having probably the polygon plus chain go first is fine um but then with the l2s maybe just launching support for all of this at once would make a lot of sense i definitely think they're going to support direct offboarding onto dydx because uh diy dx is actually created by one um one or two i think of uh people that worked at coinbase really early on um and coinbase can't actually offer perpetuals and kind of like leverage trading because of regulations so this

could be the way for them to do that for their customers maybe they don't get anything out of it um in terms of like a cut but they they act as like um onboarding funnel into into diy dx so we'll have to see how kind of that goes there but generally i think that this is obviously very very positive and as i've said plenty of times before this is the way we're going to get mass adoption on l2 there is no i mean we can go from l1 but that's just going to take much longer i think if we can get users avoiding our l1 ethereum as much as possible these days the better because i understand that a lot of new users just they don't understand how people are paying these fees they don't want to pay these fees i think it's ridiculous and

that's fine like i totally get that so if a user is just starting with a thousand dollars well ethereum layer one is just not for them these days unfortunately um and i don't think it ever will be i think as i've said plenty of times before layer two is where most users most if not all users are gonna sit in the future so the quicker we onboard them to layer two the better ethereum's kind of like narrative is around scaling especially and the quicker we kill the you know ethereum has high gas phase just for the rich kind of narrative i i i mean at this point i'm like i'm like so over that i'm sorry every time i talk about anything got to do with ethereum and it's fear revenue and whatever getting replies on twitter with people complaining about it i mean i get it

like i really do but i you know if you haven't tried out these l2s then definitely go do so and i mean on that note i even put out like a thread here over the weekend where i said there's a lot going on in the ethereum scaling ecosystem across l2s and side chains and bridges so you can go and check out this thread it's got links to pretty much like most of the stuff that's live i mean people have kind of like um uh kind of i guess like showed me what what i didn't include in my my kind of like thread here um but a lot of it didn't actually have anything to do with ethereum people just chilling their bags or whatever i knew that was gonna happen but you know you can go through my thread here and see all the all the l2s

that are live today all the bridges you can use and and ones that are coming soon as well so there's a bunch of in here that are coming soon too uh but yeah i mean the l2 space is just getting hotter and hotter as we go on and i'm definitely looking forward to arbitram week um but speaking of i guess like the bridges with l2s hop protocol which is a bridge solution that i've discussed a lot on the um the refill before is doing about the same amount of volume as as thought chain was before the recent hack for thor chain and there's no token or army of shills as richard here calls it just the missionary team heads down focused on building uh kane kind of like said here uh lol 2018 called they want their dumb anti-token narrative back and i kind of

like pushed back and i said eh i think it's more about the fact that hop has this growth without native token incentives right not that tokens are necessarily bad uh at least that's my read on it and i mean hops gonna have a token like i mean i don't know like that for sure i haven't got any any insider knowledge here but it's my rule again everyone like everything's gonna have a token so you know hob's gonna have a token but the point is is that when you have this kind of like organic usage without token incentives or at least native token incentives it's incredibly powerful and it shows incredible product market fit i mean to me bridges are like obvious it's obvious that they're going to have product market fee it's obvious that they're going to be big i mean it's why i invested in connext um

as kind of like a series a investor there i have zero doubts in my mind that bridges are going to be the biggest thing within the ecosystem very very shortly and pretty much like i mean they're already becoming some of the biggest things but there's going to be a war between them you know there's going to definitely going to be a liquidity wars uh tokens are probably going to be spun up to to siphon off liquidity from other solutions and all that sort of stuff but at the end of the day i don't think it's zero sum i think there's definitely going to be a handful of solutions and i i mean i went through the solutions here on my on my thread you know there's hop this connects the cellar uh there's bi economy's high fan there's maker dale's die bridge then there's the l1 to l2

asynchronous communications like nova that i spoke about last week the damn from starkware that i've spoken about before uh i think they're all gonna get pretty heavy usage but it's gonna be interesting to see because with the bridges i think there's two moats here speed at the the bridge speed is gonna matter the most and people are going to use the fastest bridge um and also the trustlessness of it like there are some bridges that are totally centralized there are some that are a little bit centralized and there are some that are that claim to be fully decentralized and trustless and maybe they are but they're a lot slower so i think the holy grail is basically getting a decentralized and trustless bridge with fast transfers between the different layer 2s and sidechains and all that sort of stuff there so love to see how that pans out

but really cool to see hot protocol i like growing here and you can visit this donated licks dashboard to kind of get a breakdown of this as well i'll link this in the youtube description for you to do so uh speaking of doing analytics they posted a dashboard here um about open c today so open c's monthly volume was three billion dollars in august and you can see the growth here compared to i mean the rest of the rest of the time in the year like look at this this is insane on the right hand side of the chart here um you know in february what what i mean just eyeing the charts maybe what aha god i can't even see it really because there's no the axis isn't really labeled very well here maybe on the chart it's a bit better if i load up the dune chart

and see it here but i think uh where is it yeah okay i can see it here so it was a hundred million dollars in in february uh in march it was 150 million and then it kind of stayed around that that until july it started spiking so it spiked from june 150 million to 325 million in in july so pretty much over double there and then from 350 million to 3 billion in one month right that is a 10x increase or almost a 10x increase which is absolutely insane like that is just i mean for anyone who's paying attention to paying attention in the last few weeks you'll know that the um nft mania has just been absolutely you know insane like just crazy and you can see here the monthly nft sold uh 1.5 million nfts

this month only 458 000 nfts last month the monthly fees i mean the money that openc's making is incredible they made 215 million dollars this month just off fees absolutely incredible i mean then you can see all these other charts here the growth is it just speaks for itself so i mean congrats to openc on this i mean they're either going to go public soon or do a token soon or something they're going to get some really really out there evaluation it's going to be absolutely crazy to see um but like on the flip side i hope they see more competitors because there's definitely going to be people seeing this and being like wow okay open c is huge it's like the ebay of nfts how can we compete here but i mean there's ebay and amazon and then there's really like everyone else in terms of marketplaces

so who's going to be the amazon of nfts i don't know and maybe you know what i wouldn't even say amazon and ebay are really kind of like comparable to be honest so maybe there's other marketplaces that find their niches which i think there will be because there's already ones like super rare and foundation which are focused on the one-on-one art market um opens not really focused on that at all they're all about kind of like the different sets and collectibles and all that sort of stuff uh but still i mean that is just like absolutely staggering growth here and who knows will it continue into september will we see a bit of a calm down in the nft or cool down sorry i should say in the nft market because it's been so crazy lately i don't know we'll have to see i think we've still

got plenty of options left to go but there's always a short-term cool-off periods especially after growth like this that's for sure so uh xiaowei wang from the ethereum foundation uh gave a i think they gave a presentation or sorry she and danny ryan i gave a presentation uh last night or yesterday on the merge and you can see here basically some notes about the merge i'll link this in the youtube description but this meme here i thought was really really great you can see eth1 and eth2 has different kind of like uh like bears here basically uh fusing uh into each other and they've been renamed to execution layer and consensus layer then they fuse and they become ethereum now for anyone who's a dragon ball z fan it's a popular anime you know exactly what this is kind of mirroring it's

mirroring gohan and trunks fusing together i think that's that's the right kind of thing though i stopped watching dragon ball z a long time ago but i think that's what this is kind of like um kind of like uh paying homage to here and then we just become one ethereum so i thought this was awesome because it does a really good job of explaining you know what exactly where we are right now we're in the phase where we have these two ethereums that are waiting until the merge happens and then we just have one ethereum that turns into this panda bear right like black and white together because we still have as i've explained before the consensus layer which sits basically i guess you can visualize it with that sitting kind of like on top which is the proof of stake beacon chain then you have the execution layer which

is essentially what eighth one is today but rip out proof of work so those are still they're still living in harmony you're still running at each one client and then like an eth2 client and validator it's still doing all that kind of stuff there but uh instead of proof of work verifying the eighth one or execution layer it's proof of stake the consensus layer um the new consensus layer uh verifying the blocks and kind of like all that sort of stuff and producing them and stuff like that so yeah i just thought this was a great image that kind of described that and i hope they they end up entering this because i would definitely buy one i think it's really really cool uh but speaking of nft things um in i guess ethereum core protocol development danny ryan uh launched his experiment for public goods funding where he said

um you can celebrate the merge and help support the final development push by collecting your favorite when merge nft so you can see here that uh basically a bunch of nfts from his presentation were i kind of put out here i bought the post merge block here um which was 0.05 when i bought it and it's kind of like gone up a bit since then but there are a bunch of others here that you could buy as well on the most expensive one being 256 eth i don't expect that one to sell maybe not even the 32 eighth one to sell but i think like these other ones definitely would make sense too i think dc investor bought like the first six or something like that so he's definitely getting into it but the cool thing is is that uh actually in the first kind of like i

guess couple of hours 32 eth was raised and then uh i think we're up to 33 8th now which is which is really cool but i'm not sure if they've got like double two addresses here where they're it seems like they've got a couple of addresses where essentially they're taking money into one and then putting it into the other so i'm not sure if it's 27 eighth plus 33 ether um but you know essentially even if it's just 33 that's over 100 000 raised for public goods funding which i thought was really cool uh it kind of like falls into i guess like the git coin public goods caught a sort of stuff going on there and how they did the git bot stuff last week where there was a profile picture bitcoin bots you could buy them and all that money i think was over a million

dollars 1.7 million or maybe even 2 million dollars went to public goods funding which was amazing you know harnessing the degeneracy of nfts for regenerate finance as a wookiee from bitcoin likes to call it but anyway i'm running out of time here so i'm going to move on justin drake had a great little tweet here where he said monetary premium um handshake with economic utility which basically means they work together money versus tech is a false dichotomy and i agree with him because there's typically these kind of like two two kind of like schools of thought or at least like people try to push this narrative that you can you can either be like money or tech you can't be both right as a platform i think ethereum is definitely both because eath the money ether the collateral ether uh the the ass the collateral asset the

trustless story of value works to power the technology and you can see in this kind of like flow chart here eth having a monetary premium adds more economic security to the network with proof of state under proof of stake because of collateral but even under proof of work because the more uh the higher the price of i guess eighth goes the more power we get into the network and then it kind of on flows effects from there with which adds to its economic utility which um uh in addition to that we also have like the economic bandwidth so the the higher the um the price of eth goes the more kind of like valuable ethers the the higher the economic bandwidth within d5 is so we can have more d5 stuff going on that again fits into ethereum's economic utility then that feeds back to monetary scarcity via the

fee burn because there's more stuff happening on the network which feeds back into its monetary premium right and you see how this kind of like goes in circles here and on top of that you have monetary cohesion with liquidity and composability so that the whole ecosystem is centered around this one asset that being eighth the most liquid kind of like decentralized trustless asset on ethereum and you can see how this just feeds back into each other it just keeps going around and around around creating this perfect feedback loop which i think just justin did a really great way of explaining this but this is money and tech working in harmony this is not money or tech which i always hated because this is the bitcoiner kind of school of thought where they said you know the network should only exist to serve the asset because the asset is the real innovation

the money is the real innovation the tech is just like garbage that's that's their school of thought and i don't describe to that uh uh describe to that at all i firmly believe that we can harness this monetary premium as justin describes it here of eth to power the technology and we have been doing that and that's why we have things like d5 and nfts and dows and all that sort of stuff just taking off on ethereum is because eth has this strong monetary premium that feeds into all of this and then feedbacks loop through its economic utility into it again and you've got this kind of like beautiful symbiotic relationship going on between the money versus tech stuff here so yeah great way to explain it there justin um seb from zappa is teasing that they're working on a wallet so i didn't even

know about this i'm a as you guys know i'm a seed investor in zappa but i didn't even know that we're doing this so this was this is really cool i loved seeing this because i don't know what they're going to be building but i'm assuming it's going to be awesome because i love using zappa so i'm really excited to see what they do here they have been teasing a zapper mobile app for a while so i'm sure it's got something to do with that but we'll have to wait for more details here but they did say or seb did say that it won't be a browser extension so i'm thinking it's probably going to have a lot to do with the mobile app but we're going to have to wait and see there um while i was thinking about nfts during the week i put out this kind of

like tweet thread where i basically said um uh the digital renaissance is well and truly upon us we're literally living through a major part of history right now and it's absolutely wild make the most of the opportunities that are available it will probably change your life and i was thinking about like this concept of a digital renaissance because if you think about the original renaissance it was basically centered around a lot of people made a lot of money and then they were like okay what do i do with this money let's speculate on art essentially that's exactly what's happened right now a lot of people made a lot of money in crypto we have this bustling kind of like nft scene which isn't just art it's collectibles as well and all these people who made that money and they're like okay well i'm going to

speculate on these things or i'm going to put money into these things so that's why it's this digital renaissance and we have all this kind of like culture behind it as well and everything like that but essentially this is gonna be in the history books guys like it's literally gonna be in uh you know uh in history books in hundreds of years from now that high school students are gonna be looking at and being like oh do i really have to read this but you know for us experiencing it it's super super exciting and if you want to be part of that history and like truly be part of it make the most of the opportunities that are available there are plenty out there right now you just have to do the digging look around and you'll find them i truly believe that i'm not going to

tell you what nfts to buy or you know what tokens to buy or whatever you have to find that yourself but i will keep putting like a spotlight on all the most exciting stuff in this ecosystem as i usually do on the refuel and elsewhere um but yeah that was that tweet there there was there was this interesting blog post from nansen uh basically titled uh oh actually i can't remember the title here let me load it up for a second um do i think it was called do nft projects dump your ether so they're basically doing a study into if you send eth to these nft projects when you mint it do they send it to an exchange because what happened with i mean this happened after they published this article but it was funny like i think a couple days ago uh the board ape yup

club did a um new nft meet called mutant yacht club that's hard to say uh where they raised about 100 million dollars of each and they sent that eighth straight to an exchange so people were like okay well they're obviously dumping it but i mean you don't really know what they're doing with it they're obviously gonna dump some of it or maybe even half of it because of taxes like depending where they are the taxes are gonna probably be pretty brutal for them um but essentially i i think that spoke to this article that came from nansen where i i quoted it here saying approximately 52.3 percent of the eighth from primary nft sales is still circulating among among non-entity wallets 10.4 percent have been used on a decks either as liquidity or for swaps 3.6 have been deposited on a centralized exchange while 17.7

is poured back into nft projects so essentially uh most of it is staying within the ecosystem this is not including the mutant 8 job club as i said this was done before that launch happened so this is just including all the other nft activity through august especially uh nansen is basically um a an analytics website where they kind of like do a bunch of on-chain analytics and stuff like that but essentially this is really cool to see i love seeing the money stay within the ecosystem i don't want it going out and flowing out into like fear or whatever i want it to stay within you know it doesn't have to stay within ether can even be swapped for stable coins if you want to protect your downside or whatever but keeping it within the ecosys system especially within the d5 ecosystem would be really

really positive and you know i'd be pretty excited to see that play out all right final thing here we had uh i think this is a record um over the weekend with all these kind of like nft mints going on we had two days of proof of stake issuance burned in one hour which is ultra mark 50 according to the ultrasound money account here so to explain this essentially the proof of stake issuance right now is around about 0.6 i believe so 0.6 percent on top of whatever the e supply is right now it's like 117 million or something like that um the current supply should say uh and that was basically burned uh so it's two days worth of that issuance was burned in one hour because of these nft mints so absolutely crazy and you know if we

were only on proof of stake right now and not in proof of work we would be net deflationary by 1.3 so negative 1.3 i believe which is crazy i mean we will be burning so much heat that it's just like making up for all the issuance that we're paying out and i've gone through this plenty of times before but i'm really looking forward to when that happens uh you know when the merch happens hopefully early next year but anyway just wanted to point that out but i think that is it for today everyone so thank you for uh listening and watching if you haven't done so yet be sure to subscribe to the channel give that video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone