Ethereum's regulatory unlock, EF report and more - The Daily Gwei Refuel #807 - Ethereum Updates

Transcript

hello everyone welcome to another episode of daway refuel R up the latest news in ether maker system I'm your host Dan to the 8th of November 2024 all right everyone let's get into it so apologies for being kind of Mia for the last week and a half I guess I think the last time I did an episode was last Monday and of course after today's episode I will be Mia again uh until the 18th uh mon of November which is a Monday as well because I'll be in Devcon now obviously I'm super excited to go to Devcon super excited to see all of you uh but yeah preparing for that with all the election noise over the last few days just meant that I was just way too busy uh to be able to do an episode but I'm back today I'm doing an episode

today this will probably be longer than the normal episode as you can see I have a lot of tabs open a lot of things to discuss today uh but yeah as I said there'll be no refills until at least the 18th of November I'm not going to promise one for the 18th of November I've kind of taken the approach with the refill now of just doing one when I feel like it uh not because there's not nothing uh not because there's you know not anything to talk about not because of really any reason just more of the fact that like uh I kind I kind of struggle to stick to a regular Cadence these days and I don't want it to be kind of like I promis that I'll do an episode on this day and then I miss that day and then I feel bad and you guys

feel bad it's more of I'm going to do it when I feel like it now I'm going to try to do more more than like once a week obviously uh but that's just how I'm playing it now and there're probably going to be like weekend episodes instead of weekday episodes as well we'll see how I go with that but anyway enough about that as I said looking forward to seeing you all in devc con but I'll talk about that uh towards the end some more going to jump straight into the news and I think the biggest piece of news over the last week and a half the thing that we must discuss is the presidential election now of course uh Trump won the election uh beat out Cala Harris there it's funny in the Discord Channel actually a couple weeks ago I said that I think Cala Harris is

going to win I have no real insight on us politics but I just kind of threw that out there because I knew that all of the well most of the crypto ecosystem is like pretty heavily um in favor of trump winning or uh because of the the crypto side of things obviously the Democrats have been extremely hostile towards crypto and I've given my thoughts on that over the last I guess like couple of years now pretty much but of course Trump won which means everyone thinks it's going to be a golden age for crypto and honestly I don't think that's a wrong kind of thing to think because if you look at the last maybe two years I guess of of um politics in crypto the Democrats have been extremely hostile towards crypto yes we've made progress we got the ETFs approved a lot of

stuff's uh kind of been happening but it's like we've been doing it with two hands tied behind our back right because you had lawsuits lobbied from the SEC against things like uh against exchanges like coinbase Kraken and binance uh you had the doj go after binance which I actually think was somewhat Justified given that I guess binance had been operating as Cowboys for so long but at the same time they paid their fine and now and and you know now they're basically just continuing on as an exchange CZ went to jail for a few months but seems like uh he enjoyed it from his tweets since he's been out but yeah bit bit a bit bizarre there but I I I can understand it I guess it's only a few months you go in and you're probably in like a Cush prison because you're not

you're not a violent criminal or anything like that uh being CZ but anyway other than that yeah the Democrats generally especially the SEC obviously has been extremely hostile towards crypto so obviously with now a trump admin uh in I guess January when he gets inaugurated here uh people are expecting a lot more positivity towards crypto generally and I think that if you look at what's going to happen Gary gensight himself will he can't technically be fired until he's I mean I guess he's got his term till 2026 so he can't technically be fired by Trump but it is customary for the SEC chair to resign if they're part of a different party and then someone else will become chair it's looking like not H the Pierce but one of the other Republican um people uh in in the SEC will become the

chair once uh I guess like Trump is inaugurated there so from from that perspective that's already incredibly bullish so if we only had that right if that's all we have a gzel stepping down a uh Pro crypto Republican stepping up to be chair of the SEC that would be uh you know that would be enough like enough to kind of offset the last at least two years of hostilities because of the fact that the SEC has been Public Enemy Number One for for crypto but it goes way beyond that because not only did um you know Trump get elected but also a lot of people that were Pro crypto a lot of uh a lot of politicians that were Pro crypto also got elected and beat out anti-crypto politicians so there's been a huge kind of shift and I don't know if like the crypto vote was

responsible for this as much as just general politics was but there's been a huge huge shift in the US government now towards Pro crypto candidates now of course obviously they're still politicians we can't trust them on their word we have to hold them to account we have to make sure that they do what they say but as I said because the Democrats have been so hostile anything's better than that and just the SEC chair being replaced is an absolutely massive uh massive I guess like win for crypto I'm very curious to see if the lawsuits against coinbase and Kraken and binance and so on and so forth like Unis spop Labs all that are withdrawn with a new SEC chair the the person um I can't remember his name I think his name is Mark um that the person who who is likely to become SEC chair has already

made statements I believe today or yesterday saying that if he was to become chair he would pause all enforcement actions so that's technically not withdrawing the already I guess like put forward actions because that's got a bit more complications with it but pausing until there's proper regulatory re uh regimes and Regulatory kind of Frameworks put in place for crypto I can't even begin to tell you guys how much of an a massive unlock that is for crypto generally I think that this is a bigger win for crypto than the betc and E atfs because now we don't have to essentially I guess try and build with two hands time behind our back you're going to see things like def protocol switching on their fees you're going to see things like teams doing icos again you're going to see things like uh tokens being being more fairly

launched all because of the fact that the SEC I mean is like very likely to be way way friendlier than it has been in in the US and you're going to see crypto conference is in the US now like I I can imagine maybe that Devcon being in the US uh that's how I guess like different the I guess political landscape is but I don't know maybe maybe we won't see that but uh that that's how different it now is or is is is is going to be uh and we're going to hopefully get regulatory Clarity because then the tradire ecosystem can get even more deeply involved they're already involved obviously you have like Black Rock and others tokenizing things doing uh treasuries on CH on chain all that good stuff there but we're just going to take this to the next level like I I honestly

can't stress enough like how much of an unlock this is here regardless of your politics like I know people I mean I'm in Australia I don't have any say on us politics I can't vote right it doesn't really it doesn't affect me directly of course except in the crypto context here um but but I think regardless of of politics you know take all of that out just look at the crypto side of things this is objectively better for crypto than what the Democrats have been I think like you you'd be insane to I guess like fight against that and it's not to say that you agree with every policy of of trump or every policy uh sorry of the Republicans every policy of the Democrats it's got nothing to do with that it's more I think you know in this context like who's better for

crypto and I think objectively at this point uh because the Democrats have been so hostile even if as I said nothing else is done even if only we get a new SEC chair that is objectively way better than what we've had in the past new Pro crypto uh chair here at least that's my my view on things there but I know you know there's different feelings from different people in the ecosystem with regards to the election I understand that my U my listeners and viewers on the refuel are from all kind of walks of life uh not just in the US but in Europe and you all have different political views I uh try my hardest not to not to give my political views on this or try to get too political with these things unless it's in the context of crypto because what I care about and what

affects me is that as I said I can't vote I can't change anything I'm not a US citizen I don't live in the US I don't have a plan to live in the US like it doesn't affect me directly what happens there in um for most issues except crypto crypto obviously affects me uh it's my whole life like I'm heavily invested in it so uh for me I I consider this a a positive personally um but everything else I'm not making any comments on that you guys can have your own views on that it doesn't it doesn't bother me um that there I do think generally though that uh like if I if I would dive into politics a little bit uh I do think generally it's it's kind of uh insane how much of a circus it is in the US in terms of how long the

campaigning is it's like what almost two years of campaigning it's it's absolutely insane right like you spend basically half of your I guess term in office just campaigning like if you're the existing president and you want to go for re-election you essentially spend two years so half of your of your term just campaigning to be voted in again and during I guess like at least a year of that nothing really gets done it's kind of gridlock because you're basically focusing on the on on the campaign stuff so I do think that is insane especially in Australia where our campaign kind of I guess uh time uh the time spent on campaigns is like six weeks so it's completely different it's just it's insane to me but it is what it is and and that that's that's just the way the system is there but yeah anyway

uh quite a positive development for crypto generally the markets have obviously uh reacted in um in accordance with that and specifically for ethereum this is a huge boom because of the fact that ethereum had been the main target of all this regulatory action the ethereum ecosystem I should say not just with the E ETF stuff which ended up getting approved of course but obviously there was a lot of drama around that but within the defi protocols within on ethereum like Unis swap I saw even um other projects like IM mutable got Wells notice from the SEC coinbase is is huge into the etherum ecosystem with base and so on and so forth so this is I think a huge thing for the ethereum ecosystem specifically and a huge unlock for it and I think the eth price has reacted to that uh in a positive way not just

against USD but against other assets especially Bitcoin I think that you know that regulatory kind of I guess foot on our throat is is off now and and the market will definitely I believe and you know not trade away but I mean obviously this week's been good but it's not always going to be like that but I do think the market will will price that in and I do think uh you know the e e having an ETF is a huge Boon because it means that the more traight players can get involved with with eth now as well without having to worry about any of the the regulatory stuff uh there so anyway that's enough on that moving on to the next bit of news here I guess this is related to what I was just talking about but I did want to give a shout out to

poly market so poly Market is the prediction Market that everyone was looking at when it comes to the elections obviously it had been pretty popular for the last few months in people betting on who they thought was going to win there was a lot of um news I guess like articles about it there was a lot of of focus on it I believe even kind of trump made comments about it or the Republicans made comments about it so there was a lot of focus on it now um of course I think I don't know if I've given this opinion on the refi before but I've given it in the Discord Channel I I think the term prediction Market is I mean I'm not going to say like misleading but it's just just kind of the wrong term because in my eyes when I look at these markets I don't look at

them as being necessarily predictive like and and the thing is is that you can there's there's many examples of these markets that have not been able to predict anything like for example the E ETF is the extreme example you can go look at that market it was basically down to under 10% chance and they went straight to like 100% uh 3 days before they were approved so the market uh and and and honestly like I thought I I I thought that was like completely underpricing it at that point because of the fact that all all the facts I outlined leading up to the eth ETF being approved so so just that as the extreme example it wasn't predictive of anything really uh and then you can actually look at other things as well like on on the presidential election it got it right to an extent where essentially uh Trump I

think was like 60 65% odds a few days before the election um and it got it right there uh but then you had the other I guess political races um such as winning the popular vote I think uh Trump was like 30% or something chance to win the popular vote or maybe even less than that um and then and it seems like he's won the popular vote I think the vote counting is not done yet uh but yeah it seems like he he may have won that uh same with the the other kind of things like winning the Senate winning the house stuff like that so not just within politics but within everything I just don't think that these things are necessarily too predictive it's more just like a traditional betting Market you're basically just betting on what you think's going to happen so I think

calling them a prediction Market may be just like the wrong way to go about it but it's beyond me now like that's just my personal opinion on these things but another reason I bring it up is because there was some I guess discussion around if poly Market is built on ethereum or not because technically poly Market is built on the polygon proof of stake chain which there's been many debates over the years about if the proof of stake chain is a layer two or not I don't think the proof of stake chain is a layer 2 in its current construction it does want to get upgraded to a a layer two probably next year at this point but as it currently exists it's it's I mean at best a side chain um at at worst a different layer one so while you could say it's built within the ethereum

ecosystem because polygon is extremely close to to ethereum and obviously building within it building l2s on it and and the AR layer and all these different things here um I just don't necessarily think it's accurate to say that it's built on ethereum but in saying that uh the poon proof of stake chain handled all this traffic like a champ obviously poly marker had a lot of traffic heading into the election and handled it like an um like an absolute champ and honestly like the proof of stake chain today is more decentralized than a lot of the layer 2s because it has a decentralized validator set it doesn't have admin keys and stuff like that so really I don't think this should be something that we don't celebrate just because it's not a official layer to on ethereum right so yeah I just wanted to I guess shout out that there

because there's a tweet here from sand deep which you can check out I'll link it in the YouTube description below um but yeah that was that was great to see that they were able to handle that there all right so moving on to some quite bullish news here so Matthew seagull here or SLE from Van e tweeted out that the state of Michigan has filed a disclosure here about their new eth ETF Holdings so they are a top five holder of eth and eth E so this is um the ETF tickers and they actually own more eth than they do BTC in dollar terms and that was before I believe the recent runup e so it's probably worth even even more now uh but this is this is crazy guys I mean this is what I said the ETFs unlock it unlocks uh entities like State

Pension funds to be able to invest in this stuff and the fact that they've invested more in eth and BTC is is is surprising honestly because as I've said before like you would expect them to go either 50/50 or market cap weighted well it seems like they've just like eat more than BTC right which I mean I understand totally because I like e more than BTC but it's great to see that these Pension funds aren't just buying BTC are buying eth so it really validates that thesis that eth is going to get a bid here from these ETFs I mean as I said before E ETF inflows are starting to ramp up and I think that once eth gets into the 3000s they're really going to start ramping up because if you actually go back and look at when the eth ETF launched what the

price of eth was it was around 3600 I believe and then from there it actually went down to 2,000 so if you had bought an ETF during that time you weren't doing very well and especially against BTC that's why you've seen a lot of influence into BTC versus e cuz BC had just been performing better but now the trade is well all this regulatory kind of crap is off eth eth is is is down like pretty bad against BTC I could say it's still very far from all-time high even though um BTC is like in price Discovery basically so the better trade is to buy eth instead of BTC here and I think that's why you're going to keep seeing more and more of I guess like um eth inflows Coming yes the BTC inflows are very strong it has had one of its strongest if not strongest days ever

today I believe black rock talking over a billion which is just insane for a kind of daily intake there but I I really do think we're going to start seeing these eth um inflows ramp up aggressively as we move into the 3000s 4000s uh and alltime high and Beyond of course I mean I'm still as bullish as ever on eth going to 152k this cycle I haven't changed my opinion on that you know I actually may have become even more bullish on that given that um that the regulatory regime has now completely shifted it literally did a 180 it is completely opposite to what we've had the last 2 years so if eth is this beaten down because of that and I'm not saying it's only because of that but that is a big reason then imagine eth in a in a regime a regulatory regime that

is extremely positive that is the complete opposite of what we H what we've had so I I I do believe that it could go uh that high now obviously that's not investment advice I don't think that you should aim for that for your own personal targets if you have um you should definitely play it safer than that you shouldn't just like risk it all and wait till 20K or anything like that I I wouldn't I would never do that something like that but at the same time I just look at everything I look at the fact that the E ETF hasn't really even had the inflows yet uh and eth is where it is it's still worth over $300 billion it's almost worth $350 billion today even without good ETF inflows so if we do get those good ETF inflows which I expect we will and BTC is also like

absolutely roaring the whole Market's on fire next year because just everything is is up only due to the new regulatory regime and it's just pricing all of that in and we're in a proper crypto bull market which I actually think started the other day like I think we're in the proper crypto bull market now like the the one where retail will actually come back and Bitcoin dominance will go down that's a key indicator to me and everything else will start going up again if we take all of that into account and and uh and and look at just the market cap as well like I I truly believe that eth can go to 15 to 20K as as a cycle top and we'll see maybe maybe it only goes to 15 instead of 20 that's fine too it's still within that range uh but I'm personally most excited for 10K

because I've been calling for 10K since 2019 uh and I have a thing where when Once eth hits 10K I'm actually going to get an ethereum tattoo I haven't got an ethereum tattoo yet but that was my thing I actually said this all the way back in like 2019 I said you know what if eth gets to to 10K I'll get a tattooo and I've just wanted to get it because ethereum has been such a huge thing for my life such a huge impact on my life it's not going to be some cringe thing like uh what um Mike over's got the Terra Luna tattoo like that's really bad because of the fact that uh Tera collapsed obviously like I don't think ethereum is going to collapse or anything like that uh but it had you such a huge effect on my life not just

from the investing in E side of things but everything else like it really did change my life there but anyway enough enough on that I'm rambling moving on so uh this has been a long time coming this has been something that the community has been asking for which is a new transparency report from the ethereum foundation about what they're up to so as you guys know the eum foundation is a bit of a black box we don't really get much insight into what's happening there outside of some posts about what they're funding in terms of grants that they're giving out and uh posts from core devs and core researchers but as of today a the uh executive director of the etherum foundation has shared this on Twitter which is basically the eum Foundation report for the years of 2022 and 2023 this is really worth the read guys

it's not too long um and it's it's just really worth the read because it really does detail what the EF has been doing and what they're doing what they're doing into the future and the fact that they're not just sitting on their hands doing nothing they're playing an absolutely massive role within the ethereum ecosystem but they're just doing it from behind the scenes here now what I think most people were concerned about was where all the money was going so essentially the EF budget per year is between 100 and $150 million you can see here in 2023 it was $134 $135 million and then they break down where this money actually went so I mean a Hu a pretty large chunk of it about a quarter of it went to L1 research and development so that's about $35 million there uh new institutions got almost $50

million and Community Development was about 17 million now interesting enough they they spent about 15 million on applied zero knowledge so applied ZK here which is which is great and then you can see the breakdown between internal and external but I'm not going to spoil this report for you guys I want you to go check it out I'll link it in the YouTube description below and they also detail how much money they have currently so they currently have about $180 Million worth of non- crypto assets so Fiat and Fiat equivalence and then they have about uh $800 million worth of crypto assets almost all of it is in eth and that is verifiable on chain you can actually see their eth address on chain so that is not a secret there uh and then also I just wanted to give a massive shout out to all of this art so

as you see me scrolling through here this art is just so cool like this is art that I haven't seen before so I think this was spefic specifically made for this report and honestly like I hope I can use this for maybe even my presentation at the bankler summit cuz I was struggling to get art for it I was just using AI to generate it I don't know if these are AI generated or not they may be but they're awesome and for those of you listening to the podcast I'll link this in the YouTube description below you can go check it out for yourself but yeah I just thought that was really cool it's a nice touch to this report here but one thing I did want to mention is how funny it is how this was like the main concern two months ago from people this is like the

main source of fud it's like oh what's the ethereum foundation spending money on you know it's down bad because the EF is just so so badly organized we need more transparency and this comes out today and there's freaking crickets like I'm not even seeing anyone talk about this outside of core ethereum people like all the people that were fighting it aren't talking about this anymore and also most if not all of the eth fud has just completely evaporated simply because ether's gone up in price and I I think I've been pretty adamant about this over the last few months even years and I've repeated myself so much on this and and and and gr attack one of the um daily way Discord uh uh veterans or very active daily way Discord person kind of calls it a sermon that I give where I come on here and I tell you guys that

the only reason that um eth and ethereum get so much hate is because of the price like I mean not the only reason but like the N 90% of the reason is because of the price action if eth is doing well in price action all that fud will magically disappear and then one and I give that that kind of sermon as you will and then um you guys feel good about it for for a couple of days but then all the fud gets uh gets uh you know spread again and you kind of start feeling bad about it and then I have to give the same sermon again so as I said I feel like a broken record I've talked about this so much before but essentially when when you kind of look at the facts here and look at the way the ecosystem is narrative

follows price that is like my my Mantra this is something that I've talked about for so long now Nar follows price so the fact that like I'm seeing no one really talk about this outside of ethereum circles this ethereum Foundation report the fact that most of the eth F evaporated just again verifies or or validates that thesis that narrative follows price and it should be obvious at this point that that's what happens so I'm I'm glad that we're probably going to get like a reprieve from a lot of this eth fud for a while especially because we have l2s now so essentially we have an answer to the high gas fee thing because L1 gas fees are already going up and they'll just keep getting higher and higher due to uh due to activity going up due to eth price going up and I'm going to talk about L2 fees

and blobs and all that in a sec or I guess later in the episode um but yeah anyway enough ranting about that you can go check out the ethereum foundation report I'll link it in the YouTube description below for you to do so all right all right moving on so as you guys know inclusion lists has been a huge road map item for ethereum for quite a while now and basically became a main focus after tornado cash was sanctioned back in how long ago now August of 2022 so it's been over two years since that happened and of course censorship resistance on ethereum has been an an open question it's like how censorship resistant are we how can we make censorship resistance better like how do we basically re in the tyranny of the builders and the relays and so on and so forth so there's been just a ton of work

done in on inclusion list for quite a while now um but as of what day was this I think this was the 6th of November so as of a couple of days ago a few days ago uh an EIP was officially uh put forward for something called uh focal or f c l which basically details a path to inclusion lists in the network so this is EIP 7805 and so spoke here shared this on on Twitter where he said today block production on ethereum is centralized two block Builders are responsible for constructing more than 85% of all blocks this is obviously an issue that needs to be um uh needs to be uh rectified here so essentially what focal does or FAL I don't know how they're pronouncing it but I'm just going to say focal uh

allows multiple inclusion list proposers chosen randomly from the decentralized set of validators to impose constraints on Builders blocks Builders must either include the transactions selected by the inclusion list proposers or have their blocks deemed invalid by a testers this is a really cool way to do inclusion list because it essentially means that because and this really only works I think because ethereum has such a wide validator set and such a distributed validator set and it has a lot of solo stakers but essentially it means that uh these blocks will not be able to be attested to so like I I don't want to get this this wrong here you should actually read the um the EIP for yourself because it it gets quite a bit more technical than what I'm going to talk about here but essentially what this does is it turns it on its head and

does exactly what we want to do which is give power back to the validators so the builders are extremely constrained in this world if this gets approved and put into the network the builders are extremely constrained in this world they can't just uh essentially censor willy-nilly or censor as they see fit because they they there's a risk of their blocks being deemed invalid by the network which means they're going to potentially lose uh money that they would have otherwise made and as I've argued before I think that the The Bu the top Builders are always going to be the ones that are able to make the most money right because they're the ones that are able to pay the most money to validators to get their blocks included here so this just a really really nice solution to the I guess like issue of censorship on ethereum we can never 100%

solve it like these networks are not censorship proof they're censorship resistant and this goes for pretty much every crypto Network except maybe the fully private ones but I don't expect ethereum L1 to ever be fully private for a bunch of different reasons the the the the biggest reason is the fact that critical bugs in the I guess core protocol become harder to deal with especially when it comes when it's related to like inflation bugs so yeah and and it also is more expensive to do private transactions and especially on ethereum L1 which is already expensive maybe down the line we get it when we kind of snarfy the base layer and put more kind of ZK Tech into the bass layer but yeah not not for not anytime soon um but but but focal here aims to address most of I guess the issues we see with

censorship on the network today so just great to see that this has been officially proposed as an AIP here you can go check this out for yourself for more details I'll link it in the YouTube description below uh for you to do so but I just want to give like a shout out to the people who worked on this you know this kind of stuff is not easy guys like this is really difficult this is the result of potentially thousands of tens of thousands of hours of collective work done by some of the smartest people in this entire ecosystem and they they're doing it for the benefit of ethereum like yes okay they're paid to do it by the eum foundation but you guys know that these people aren't paid like millions and millions and millions of dollars to do this like they're doing it

for the game for the Love of the Game essentially right and and the fact that they're doing it from that lens means that we get better Solutions I believe like I'm not to say that I don't think people should be paid more of course they should especially where ethereum researchers and and core developers here but I think the point is is that this stuff is really hard to do it nerd Snipes the smartest people in the ecosystem and smart people aren't necessarily driven by by money they're driven by hard problems like they want to solve hard problems and ethereum has an endless list of hard problems to solve and inclusion list was one of them so if this is as good as um it seems to be on the surface and it gets included in the network we we after you know more than two years of research into this we

finally get something that can constrain Builders which is again on the ethereum road map and has been on the ethereum reant for years now and he's part of the endgame of ethereum there but anyway you can go check this out for yourself I'll link it in the YouTube description below for you to do so all right moving on so I just wanted to share this quick tweet thread here so you've heard me talk about eof for a very long time now the evm object format which is a bunch of eips that have been slated to go in every hard fork for like the last I guess like three hard Forks and have just been pushed out due to various different reasons you know I'm not going to go through all the reasons but like the main reason is essentially that they uh were deemed as important as

other eips and they've been pushed out here but a lot of people were asking you know what's the benefit of eof like what do we actually get out of this well Cairo here put together a really really great tweet thread going through and putting the numbers on what benefit we get so essentially here says at at ccent lab's residency um their benchmarks revealed that ZK proving EOS is three times more efficient and runs 2.69 times faster than the current evm version so essentially we get a massive Improvement in ZK proving like so so just that like just taking that on the surface not even looking at the numbers outside of that not looking at the details of that you can already tell why that's a huge unlock because eof does not just apply to layer one it also applies to layer

twos and layer twos are building evm so if the layer 2os get cheaper ways to prove um prove ZK then the layer 2os get better the layers the layer 2os get cheaper for users so this has massive I guessing imp implications for the entire ethereum or evm ecosystem here at layer 1 layer twos and even side chains and other chains right so when you look at it from from kind of that perspective and you and you read this thread you can actually see the I guess like benefits of eof now instead of me just telling you that it's cool and it's getting included and instead of other people telling you that there are actually hard numbers put to this now so you can go check out this tweet thread for more details on that but I thought it was worth highlighting for you guys there

all right so there is a shortlived Petra test net now live called meong or meong so this is a preev con treat as Tim Biko likes to say here you can use it to try out all of the eips that are going into uh Petra which is I believe still due for uh I guess uh uh going live on the network by March of next year uh but this includes obviously Max EB and a bunch of e EIP other eipc you guys know that my uh Mo most one of the most anticipated eips for me is Max EB cuz I would love to see the network consolidate their validators I would love to see overall bandwidth on the network come down so that we can keep scaling up blobs especially uh but yeah if you want to get involved with this test net you can I'll link this in the

YouTube description below for you to check out how to do so but yeah we're in test net season for uh Petra which is which is great but um yeah it does seem like we won't get it live on the network till March but that's okay we were expecting that there's literally nothing no no no surprise there it could even happen as late as April we don't know as as as per usual it's dependent on the testing if things go wrong if things need to change so on and so forth but currently I'm targeting March in terms of my estimates here my personal estimates not estimates of the core devs from what I've seen uh but yeah exciting times there all right so nethermind has announced something interesting over the last couple days which is their own rollup so this is going to be a based

rollup on ethereum of course not anywhere else why would you launch a base roll up anywhere else it's not that doesn't make any sense right ethereum is the best place to launch it but but essentially this is like the Holy Grail of rollups and um it it obviously isn't like a silver bullet but it's basically what like every rollup should aim to be so the details of this is that the nethermind I guess it's it's not called the nethermind rollup it's called um it's called surge which is essentially just the name that they've given to it here and you can actually see all the details on the website which I'll link in the YouTube description below but essentially um it's it doesn't Target um I guess like regular users which is an interesting kind of differentiation Point here it's targeting um uh AI agents U um and Builders and devs to

explore the boundaries of of ethereum so basically it's meant to be a testing ground for pushing ethereum as hard as as hard as um can be pushed essentially because nethermind has been working on that with their client software as well uh they're going to be staged two at launch which is a a pretty big promise because there are no I guess like rollups today that are staged two besides a couple that have basically no usage as you guys know um uh Bas is still stage zero they're almost at stage one Arbitron 1 is at stage one but most is at like stage zero essentially still so this launching at at stage two uh is is is a pretty big deal I think but we'll have to see once they go live how they actually how they actually launch if they're actually truly uh stage two

L2 be will be the ultimate Arbiters of that uh but they're also launching as a based rollup which uh there was an episode the other day on Bank list with Justin Drake as you go check out base rollups as I said not a silver bullet but like they are maybe the Holy Grail of rollups in terms of what you get out of it use the L1 as a sequencer get interoperability with other based Roll-Ups basically be very tightly coupled with ethereum L1 while still being able to to move fast as a as a rollup here and still being able to have your own I guess kind of um things like your own uh different virtual machines your own different developer environments your own culture stuff like that but but being based uh and they're using eth for gas without any native tokens obviously a no- brainer there to

do that and they're part of the gigas era of ethereum or or I guess like the the um the l2s that are targeting Giga gas which is BAS rise Mega eth a bunch of others out there uh but essentially they're leveraging their own client so NE nevermind client to uh basically achieve this here so I'm very interested to see what happens with this because if they're specifically targeting things like ai ai agents and Bots and Builders building for those agents and not necessarily uh targeting um you know regular users I guess you could say like real human users and they've got all these other goodies like uh the stage 2 at launch uh being based you know um basically targeting gigas so just scaling up as much as humanly possible

it's going to be interesting to see see what happens here and I should mention this is also built on the Tao stack so Tao has been the leaders in base rollups for quite a while now so U this is you know the surge is is built on that there and they're also going to have a bunch of other goodies as well if you scroll down to the bottom of the website you can actually see this they're going to have pre-c confirmations so no need to wait for 12C ethereum blocks you're pretty much going to get very very fast uh transaction I guess pre-inclusion you could call it or pre information um they're going to be proving it using a te proving infrastructure from rollup boost they're going to be U doing block production and sequencing with the nethermind client and rollup boost and they're going to be seamlessly

integrating all of their layers for unified liquidity so yeah as I said a lot of promises here uh a lot of promises that sound extremely exciting but if there was any team that I'd trust to deliver on this it's definitely the nethermind team they they're absolutely awesome they've just gotten better over time their client is just amazing honestly like I use it and it's been great I haven't had any issues with it there uh but yeah I'm curious to see what happens with this but you can go check out their website and the Twitter thread here for all the details uh but I'm super excited about that there all right so speaking of bass they have their fault proofs now live on Main net so this hasn't brought them up to stage one just yet uh as a stage one roll up just yet they're still stage zero but

this basically gets them all almost there and this is something that has been requested for a very long time from the community you know when fault proofs when for proofs cuz without them it's kind of useless right you're not really an L2 at all if you or an optimistic rollup L2 at all if you don't have these things but as of this was actually a while ago now over a week ago as of October 31st fault proofs are now live on the Base main net so you can go check out the blog post for all the details on that I'll link it in the YouTube description below for you to do so but I just realized I'm already at 35 minutes and I have more than about half of the content still left to go so I'm going to just um run through some of these rather

quickly uh moving on so something interesting from the swell ecosystem so swell L2 is being migrated to optimism so I believe that they're originally building an L2 as part of the polygon ecosystem uh and using the poly polygon cdk but they're actually moving over to the optimism super chain and we'll be building as an optimistic rollup built on the op stack so very interesting move here don't know if it's going to be the right or wrong move yet obviously this is all very early very new um but one thing I will say is that this is the value of building a super chain because what this does is it essentially gives a network effect to the I guess stack the op stack the polygon cdk stack the Alum

orbit stack by building in that ecosystem there you essentially get access to the rest of the ecosystem that's already built and that again is why I believe a lot of these rollups are going to become based on ethereum because if you want to get access to all of ethereum then you need to basically be based so you need to be able to do things in interoperable way which means essentially you need to swallow your pride as an ecosystem and say okay well we we are a huge ecosystem but at the same time we don't want to be isolated from everything you can actually think of this like countries so imagine if the US was just isolated on its own it had no trade agreements with other countries it didn't do any trade with other countries it its ports were closed everything was closed like it airports

were closed its sea ports were closed it was just its own economy right it's basically like a fully circular economy it could still be massive it could still be big they could still be doing a lot of um a lot of um Commerce right and still have huge GDP numbers but they could have more right it would be it would be much smaller than what they have um because everything would have to be done in house so it's the same when it comes to these super chains when it comes to these different l2s if they want to grow as big as possible then it's better to have um a bigger a bigger slice of a huge pie than the whole pie because the whole small pie because you have like a way bigger pie to choose from here so if you think about it from

that perspective I do think that all of these things all the lines here are going to be blurred and all of them are going to play with each other nicely doesn't matter if they're part of the optimism super chain or the polygon one or the Arbitron one I do believe they're all just going to eventually play very nicely with each other because it's just the network effect you want to get access to that liquidity you want to get access to that user base you want to get access to that infrastructure and it's the same is true for international trade between different countries the ones that have closed themselves off are the very poor ones right like they're not the rich countries the richest countries in the world are the ones that have free open very um you know efficient very um very big trade deals with all other

countries and being able to balance that with producing your own kind of things but also importing what you can't produce or or importing things that are too expensive to produce and then just like leveling up your economy that way uh there but yeah interesting to see where this goes with swell but that's uh not the first but like one of the first I guess major migrations that's happened within the ethereum ecosystem in terms of like L2 hopping I guess you could call it so yeah interesting but anyway moving on to the next thing eclipse's main net is now live so this is their public main as you guys know eclipse is building essentially salana on ethereum because it is an svm L2 they are essentially trying to bring the salana apps and ecosystem and and the svm over to ethereum as an L2 and this again is

just like the beauty of ethereum um and the roll and the rollup Centric road map where essentially you can build anything you want as a rollup you don't have to build an evm rollup you can build an svm rollup a move roll up a WM rollup whatever you want you can build that on ethereum as an L2 and that's exactly what Eclipse has done here so I'm most curious as I've said before to see how Eclipse does uh compared to salana main net or salana L1 I guess you could call it because obviously like these things come down to liquidity Network effect culture the apps that are deployed there so on and so forth so will you know dgen culture or like mcoin culture take off on Eclipse like it has on salana L1 will uh the eclipse have different apps to salana L1 will people use it differently

because it's on ethereum because it's a different culture different ecosystem I don't know it remains to be seen but I do think this is like a really interesting uh thing to keep an eye on going forward because it will be a example for other builders as well people building things other than the evm to essentially keep building what they're building because right now the evm is just so dominant within the ethereum ecosystem within the crypto ecosystem the evm is just incredibly dominant and it's not perfect it has its flaws uh and it's definitely not going to appeal to everyone because not everyone wants to learn solidity not everyone wants to play around with the M because it's there's a lot of intricacies to it it's like web developers not wanting to use um JavaScript but hey like you're using it because it's got the huge Network effect

there's so much documentation for it there's um there's decades worth of uh of network effect around it so I think the same is going to be true for solidity in the evm but that does not mean that other things can't succeed so I'm going to keep a close eye on Eclipse myself you can go play around with this if you want I do want to caution with these new launches again that you got to be wary of the risks as well like these new kind of platform are way riskier than the existing ones of course I think recently on fuel Network they launched their mayet and there was a few projects that were a little bit dodgy that may have rugged I didn't pay attention to it too closely but there was people in the daily great Discord channel that had some issues there so yeah always good to

keep in mind that um these things are new you know there could be bugs there could be things that go wrong with it but definitely you just need to uh keep that in mind when when uh putting money into these things but yeah congrats to eclipse for launching here excited to see where they go with this all right so I'm going to be talking about blobs for a little bit now so blobs ethereum blobs they have reached Target and they've been at Target for over a week now so as you guys know the blob Target is three blobs per slot uh and we've been at that Target as I said for I mean more than a week like since October 29th about and you can see it in Hill Dobby's chart here uh on the green line we've basically been there which means that we're actually earning fees from blobs

now and I think we're actually burning eth from blobs now which is really really cool um to to see here but essentially uh it's it's basically hung around that line it hasn't really gone above that and and it hasn't really been like a bidding W for blobs just yet but with other l2s coming online especially uni chain which uh obviously unop announced a couple of weeks ago building their own chain here they're going to be using blobs uh and then more rollups coming online like base rollups and and so on and so forth using blobs and the fact that we're not getting a blob increase until potentially Petra and that's only going to be like from 3 to four or maybe 3 to 5 probably not going to be a huge I'm not going to get Pier Das until end of next year I fully

expect blob to be in some kind of price Discovery now what this means for L2 fees is a different story you know how high do L2 fees go because as you guys know the costs end up being kind of passed on to the user the the the more the l2s are paying for blobs the higher the fees are for the end users but the things that the l2s can do when it comes to when it comes to blobs is that they can actually delay posting them as well they don't have to post blobs every slot they can delay it yes you get worse security guarantees or Worse transaction inclusion guarantees because you're waiting for that blob to be posted here but they can they can wait and they can essentially um wait maybe not as long as they want there is kind of a limit to it

here but they can wait a little while they can wait minutes or tens of minutes or hours and that would save them money and that's why you basically see or one of the reasons why you see that uh it's it's like this essentially where the line it it's straddling the green line here the the the blob Target it's not like spiking hugely above it and staying up there but again this is a temporary phenomenon because you can see uh hobby here shared that uni chain has already started posting blobs which means it's probably launching a Devcon which means that the blood Market is just going to keep getting more and more competitive and essentially what happens here is that yes they can delay their blood posting but at the same time like if there's so many kind of l2s posting blobs and all of them are trying to

delay it like you you you kind of have a game where well one will delay it but then the other one won't delay it because they're like well blobs are free right now I'm going to I'm going to put my blob in because uh it's really cheap I'm going to do it but then if everyone's doing that the prices inev inevitably going to go up so it becomes a game of I guess like chicken and then and then it's done and then you're in price Discovery permanently not permanently but I guess like until more bulb capacity is added until pias so on and so forth here so it's going to be very interesting to see what happens with this and how the ecosystem reacts to this and what the fees are going to be like on on l2s but as actually Brad here says in a reply things are going to

get weird with blobs because we haven't seen this before there's a lot of fud around blobs being free well prepare for the fud to be from like blobs being free to blobs being too expensive like it's I mean there's always fud right but like prepare for the fud to kind of change to that it's going to be very funny to see how the ecosystem reacts to that uh there but speaking of blobs one last thing I wanted to talk about was this new tool that Tim Robinson who is the head of crypto research at blueyard uh put out so this is a tool that allows you to essentially play around with blobs uh what it looks like with um with blobs being posted down what the you know what it looks like uh based on a bunch of different variables I'll actually load this up for you um here I

think the Link's that actually at the end of his tweet yes so this is a a website you can go to yourself and what you can do is you can essentially adjust things like the number of rollups that are live the TPS per rollup the target blobs per block so right now it's three max blobs is six um the eth price uh and the transaction uh bytes yeah so I'm just leaving it on the default settings 20 rollups 10 TPS per rollup three um Target per blobs per block is three which are currently is and and and Max six blobs per block and you can see that the average transaction price is essentially you know almost zero um and the total eth burnt per day is only 33 but if we match this up if we we kind of like put this out and we go okay well

the TPS per rollup will be a lot higher let's just say the TPS per rollup is like I don't know let's let's go to 500 maybe I yeah let's go to the max 500 that's that's all right TPS per roll up and let's say 10 rollups are doing that and then let's say the target blobs per block are are a lot higher let's say at like uh you know 20 Target blobs per block with a Max of 4 40 and let's just say the eth price is like I don't know $6,000 you can see here that the average transaction price is still under a dollar obviously it is um it is not like as cheap as it is as I said uh fees tend to go up as as these things are kind of I guess roll around here um but it's still still under a dollar and the the

total eth burnt per day is now at 14,600 which is $88 million of eth burnt per day I I know I've gone a little bit bullish and obviously we we don't want fees to be this High because the the average transaction price is almost a dollar here but like that that's how crazy it can get even crazier than that but that's how crazy it can get with fees still being under a dollar so if we adjust this back let's just say the the TPS per rollup is is is about what uh let's have 162 TPS per rollup which means an average transaction price of about 10 cents that's still pretty palatable I think for for for most people when it comes to to the l2s and the target per block let's say that the same at 20 uh and then Max is 40 and

that's coming with pias by the way guys we're going to scale blobs up so massively here but if we look at that we can still see that there's 11 million USD per day burnts uh of eth so like it's still a lot of eth being burned per day a lot of fees being paid per day even if even though the average transaction fee is only 10 cents and this is just blobs this is not the normal L1 fee Market which is also burning fees every day also generating a lot of um a lot of Revenue every day so if you think that it's bearish you know right now because blobs have historically been free and they're kind of like not really in price Discovery or anything like that we we don't necessarily even need that we just need I mean obviously the E price is is

higher here it's at 6,000 USD but like I feel like if we got that much activity on rollups um and and and and essentially ethereum is this successful the eth price is going to be higher anyway so even if we adjust the eth price down to 3,000 it would just basically uh it would it would basically put the uh total USD burnt per day and essentially the same uh the kind of like the same number here so yeah I mean even adjusting the USD price uh is kind of funny because like the average transaction price the total eth per burnt per day goes down but then the total the USD um burnt per day stays around the same so yeah you can play around with this for yourself I'll link it in the YouTube description below but if you want to kind of I guess even go

like to 500 um TPS per roll up and and we go to like a what is it uh let's say 60 Target blobs per block I'm just playing around with this live on the stream here 60 blobs per block um the average transaction price stays around the same but then the total eth burnt per day is just massive like it's just I don't think people realize how good blobs are and how we can still keep frees fees cheap at L2 are relatively cheap maybe not like under a cent but like even at 10 cents um you know across 10 different Boll UPS CU if I adjust this down and I just put this to like five rollups like you know what I mean like the and you can adjust kind of I guess the the blobs per block down accordingly it's still just crazy like

you you can go play around with this I'm not going to spend the whole episode playing around with this but yeah this is a really great tool and big huge shout out to Tim for putting this out there and I hope more people are are paying attention to this and going to play around with that there all right L2 beat has a new resource called da beat or data availability beat that you can go check out uh if you would like to see all the different da layers now this is funny because if you actually go to the website here I think this is the website I mean it's on the L2 bit website I believe just a different section it's not a new website um but you can see that they're tracking all the different da layers they're not tracking blobs here or ethereum L1 da because this is

supposed to be da outside of ethereum L1 and they're tracking um Celestia maida near da aan da and Avil uh as the public da networks and also they've got a a custom da uh tab here which basically shows you all the private ones um and all the ones are like data availability committees so in the public one they break it down so if I'm just focusing on Celestia here you can see the risks of The Da so essentially what is the economic security staked assets what's the fraud detection data data availability um a sampling here uh What's the total value secured by Celestia it's about 745 million slash Stakes about 2.5 billion is there u a bridge um no Bridge or blob stream

Bridge um so so they've got they got two different versions no bridge and blob stream what are the bridge risks so um there's the risk of upgradability there's no delay on that the Reay failure there's no mechanism for that and uh no uh scaling projects using blob stream right now from Celestia there are a bunch using the the um the no Bridge version of Celestia here and you can just go down the the list and see what and see all of the the different I guess like information about this so just great to see l2b launch this because as I said to you guys before not all da is created equal it may seem like it is but it is definitely not and as I said ethereum da is not on here because it is really the gold standard ethereum L1 da blobs like it's it's basically I mean if

you were to check out the da risks it would just be the same as ethereum L1 the total value secured is is just basically what's on L2 beat under rollups slash stake is massive on ethereum L1 uh and then there's there's essentially the bridge risks are just um the L2 Bridges not the da Bridge the actual rollup Bridge itself the bridge contracts but that's all detailed on the L2 be website already there so that's why blobs aren't here yet but you can go check this out for yourself I'll link it in the YouTube description below for you to do so all right so last up just three quick shout outs first one I was on bankless uh last week or this week I think I recorded it last week went live this week they actually put this episode live on Election Day which I was like come on

guys like you could have waited one more day because it would have gotten kind of more attention because everyone obviously was focused on the election but that's fine I'm sure everyone who needed to watch it watched it but this episode was an eth bull case an ethereum bull case uh for the next I guess like few years at least and we talked about a lot of different things we we talked about a lot of the ethereum fud that's been going around rollups Bas rollups ether's money so on and so forth I mean it really was just me David and Ryan being eth Bulls at the end of the day uh so if you want to be even more bullish on eth than you already are you should go check that one out there I'll link it in the YouTube description below uh second thing was that I'll be on a panel

on the main stage at Devcon this will be taking place on the 13th of November at 300 p.m. to 4pm uh the panel title is are blobs good for ethereum you guys know that I've been talking about blobs for a very long time now I obviously think they're good for ethereum but we have a great uh panel of guests here Anar who is a researcher at the ethereum foundation I've talked about him before zerox breed guy who is now working at Mega eth actually but has done a lot of great research around blobs and Tim Robinson the guy who created that blob Tool uh that works as head of research at Blue yard that I talked about um before we're going to be having a debate it is not going to be a circle jerk panel where we all say blobs are amazing for ethereum no I'm going to be

moderating it and there's going to be a a debate essentially about if blobs are good for ethereum what are the different tradeoffs what do they mean for eth Value acral so on and so forth so I hope to see a lot of you there if you are at Devcon I hope to see you at the at the panel here uh this is one of the only panels that I'm on I believe I think it's the only one at Devcon I'm on um I have a lot a bunch of other stuff that I'm doing I'm just quite busy it looks like a Deon I looked at my calendar before and I was like oh my God uh but yeah anyway you can go uh uh kind of look at the Tweet or kind of find this on the um devcom website and add it to your calendar I'll link it in the

YouTube description below and last up here I just wanted to give a shout out this is a very late shout out because I haven't done a refuel but there is an ethereum Enterprise or sorry an Enterprise ethereum Alliance day happening um in Bangkok on the 11th of November so 3 days from now uh this is a one-day conference basically a side event before Devcon that you can buy tickets to it is going to be covering everything happening in the Enterprise ethereum um world speakers include Paul Brody from E uh and he's the chair of ea uh Karen here is the executive director director of EA and vitalic is going to be there and a bunch of other people you can see here Sandy from scroll there's um there's a few a few other familiar names here from different um different projects you've got like Nina wrong here

from the arbitrum foundation uh Paul from Gauntlet so on and so forth I'm not going to read out everyone's name obviously run from from maker which is now Sky which might be maker again soon but anyway uh you can see the full list of um of speakers and attendees here I'll link it in the YouTube description below but you can go buy a ticket to that if you want to um but I think on that note that is going to be it for today an extra long episode hopefully that makes up for the fact that I haven't done an episode in a week and a half uh super excited for Devcon as I said before hope to see many of you there the next episode will at earliest be on the 18th of November but if you are at devcom please come up and say hi

I'm very easily recognizable I will look exactly the same as I do now I have my little hat on I'm not shaving the beard this time the beard stays on until eth is at like I don't know I'm not even going to promise shaving my beard beard stays on um until eats uh I guess like 100k let's say that I'm not going to shave my beard again whenever I shave my beard it's not good having the beard is good but anyway please do come up and say hi don't be shy I'm always happy to to meet as many people as possible while I'm at these conferences especially if you're a daily guay listener and enjoyer but on that note that's going to be it 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

newsletter join the Disco Channel and I'll catch you all uh soon thanks everyone