Kraken announces L2, Gas limit chat and more - The Daily Gwei Refuel #806 - Ethereum Updates

Transcript

hello everyone welcome to another episode of daway refuel where Cap latest news new ecosystem I'm your host Dano the 28th of October 2024 right everyone let's get into it so once again I have to apologize for being a little bit awall over the last few days I plan to actually do an episode on Saturday or Sunday but it just didn't happen because I've had a bit of a cough for the last few days and it kind of uh turned into I think a little bit of a cold that's kind of drained my energy I am kind of on the mend right now uh but we're going to see how we go over the next few days but I figured I didn't want to keep you guys waiting any longer because I hadn't done an episode in I think a week or something now um so yeah and there's a

lot to talk about actually a ton to talk about and as you guys know I'm headed to De Devcon in like less than a couple of weeks as well so there won't be any refuels during that but I'll talk about that uh more at the end uh but kicking off today we have a little bit of a vitalic tweet thread here that I wanted to talk about briefly now as you guys know the ethereum foundation has come under Fire for not just like I guess the last few months but like years about what it's actually spending it's money on right as you guys know the ethereum foundation is funded via the E that they sell that they originally allocated um to themselves at time of I guess creation of Ethan and the time of mayet for ethereum because that was part of the Ico uh now I believe they have like

a few hundred, eth left or something like that and they sell a chunk about $100 million worth uh a year in order to fund operations now of course people take issue with this because there hasn't traditionally been that much transparency around it there's been one transparency report I believe for 2022 and there hasn't been one for 2023 yet which I believe is coming out soon though uh and obviously 2024 is not over yet so there's not one for 2024 but vitalic put together this kind of this mini tweet thread basically saying well the etherum foundation isn't just cashing this money out to go buy Lambos it's using it for a lot of different things within the ecosystem and chief of those is that uh paying researchers and developers that work at the ethereum foundation or I guess closely with the ethereum foundation or just giving

grants to um you know researchers developers and and and other people in the ecosystem via the E the eth that they sell out of their Treasury and vitalic basically uh noted here what this has actually led to over the years so ethereum hasn't been bleeding 5 million eth a year to proof of work because we're now on proof of stake and as you guys know moving from proof of work to Pro proof of stake uh reduced the eth issuance by about 90% uh the fees are lower today uh and I I think like when he says this he means on on layer twos because the ethereum foundation is responsible for obviously a lot of the layer 2 efforts uh and funding them and and also just kind of like helping them but also getting blobs over the line right uh and your

transactions getting included in less than 30 seconds instead of like 1 to 30 minutes uh because of EIP 1559 and this is on the layer one I don't know how many of you were uh transacting on ethereum layer one before 1559 went in but it was not pretty Whenever there was kind of demand spikes and stuff like that transactions would get stuck it' be a mess like espe especially I remember in 2017 during the Ico craze it was an absolute mess like transactions would get stuck for a long long time so 1559 fixed that as well as obviously burning the the fees um but there's that there and then he continued by saying um the other stuff that etherum Foundation has helped uh build and fund uh is ZK zero knowledge Tech obviously that's been a big part of the EF funding efforts for a

very long time uh can abstraction that's uh not live yet on the network but it live in some other ways um he going live local eth events worldwide including many that barely mention their foundation's name um and ethereum having zero downtime since 2016 from Doss attacks and consensus failures various security work uh and libraries and all the codes that you use for wallets defi apps Etc so yeah the ethereum foundation obviously for anyone I mean with half a brain cell knows that they've done a lot for ethereum over the years um and they've actually distributed a lot of that power out as well because as you guys know we're just talking about core ethereum work there are 10 client teams right like on the consensus layer side and the execution layer side and the eum

foundation only has one that they uh incubate in house or I guess like that's part of the etherum foundation and that's the go ethereum or gu team the rest of them are independent now of course the eum foundation helps them with funding and and has helped them with uh things like that um eth uh giving them eth to spin up validators in order to earn rewards uh kind of a program that they ran I guess guess they've been running it for a couple of years now but essentially that is a big thing that the eum foundation has has been doing here so I think vitalik you know he kind of ended these tweets off by saying show some respect I think he got pretty annoyed because who was replying to was some guy who said uh I mean I have this this account blocked but like someone said just stop stop

dumping um and we'll be all right bro and then vag's like I haven't sold a single eth in the past month the amount of eth I hold has actually gone up and then this other account asked and what about the ethereum foundation the metall's like oh my God like stop you know we've already answered this question a million times it's pretty obvious what the ethereum foundation used uses the eth four uh but yeah there's always these troll accounts on Twitter and I think valalik finally got to the point where he's like you know what like screw these guys uh I'm going to like I don't know enter some kind of like War mode and go against these guys uh not in a mean way um but essentially saying like sit down like you got no idea what you're talking about so I I was actually happy to see valal kind of

do that because as you guys know I'm one of the people that do that as well like I basically will try to fight this fud on Twitter and I I don't take either like I'm not going to sit there and and and kind of I guess massage the message I'll tell you be like hey man like you're being an idiot basically like this is the way it is if you're going to keep being ignorant to this then that's on you and I won't do it to people who are genuinely asking questions it's more the there's a lot of people out there who know better but just like like to stir the P or like to troll or like to be about things and spread fud I don't have any patience for those people I literally tell them to their fact but like you're fighting eth fighting etherum you're

spreading absolute and this is why sort of thing so I'm glad valalik did a little bit of that uh there but enough on that topic moving on to the next thing which which was nalic quote tweeting uh someone from a16 Noah I should say from a16 a16z crypto here talking about Helios now Helios is a uh light client for ethereum but it is now becoming a multi-chain light client so it will also be able to do lay layer twos on ethereum as well and vitalic um essentially T TD this and gave some next steps he said Helios or Alternatives should be integrated into user Wallets on mobile and desktop the layer 2 configs U moving on chain and Layer Two config configs including specification of State proof verification rules and uh

he links to kind of possible starting points here once those three are done we get Universal L1 and L2 light light client verification um and this was the tweet that uh I mean I just covered about the U the person asking him to stop dumping eth bro like that was on this tweet I think that's why balak also got annoyed is like he's tweeting about something completely unrelated to price and and the markets and something that he's genuinely excited about when it comes to uh when it comes to the actual technology and people are just trolling him with these with these comments basically but enough on that uh I'm super excited about light clients as well as you guys know light clients are kind of like the holy grail for verification of uh ethereum and of the layer 2s because it essentially means you get to have a full node without

having to download a full node well I shouldn't I wouldn't say you get a full node what you get is like the same guarantees like you get to basically verify the chain and verify that um the chain without relying on any kind of third parties and be able to re AO transactions um via that instead of going like a third uh going via a third party like INF fur or something like that so it's much better for user verification and it's also getting us closer to the world that that is envisioned that we have like really beefy kind of block Builders but very cheap verification now what I mean by this is essentially all of the people that will be building blocks for layer ones and layer 2os in the future will be running these really beefy machines that uh you know in data centers or like

things that just require ridiculous amount of of bandwidth especially at layer 2os but but the thing is is that that doesn't matter I mean it doesn't matter in terms of for verification if we can verify these things via light clients because it means you don't have to run the beefy Hardware yourself in order to verify this stuff where it does matter is things like censorship resistance and liveness because if there's only one let's just say there's one Builder like on one of these layer twos let's say there's only one Builder I mean a lot of them only have one Builder right now but let's say in the future they you know they say they're decentralized anyone can be a builder but let's say that like one Builder is responsible for pretty much like everything happening on the network that means that that bu build has control

over everything essentially and they can censor if they want to um and they I mean they can censor you at the L2 obviously a properly constructed L2 will be able to escape hatch out to the L1 but that's still not ideal for them to be able to censor there and then liveness as well those kind of go hand inand where essentially liveness just means that the Builder refuses to build blocks and then the blocks aren't being built anymore the network is technically offline it's the same as censorship because you're basically being um allowing intents and purposes you're basically being censored in in both scenarios so that's that's a big thing there and that's why we want cheaper verification in order to verify if this thing is happening as well but also with um with these Builders we want to make it so anyone can be a builder so we

don't need like thousands of these Builders like having 10 for example or something or having as many as we can is obviously much better than having one because it gives you better guarantees there but then the cool thing about l2s is that as I said you have that escape hatch option as well you don't have to essentially be a prisoner to this I guess like one Builder if they're censoring you if if the network if the layer 2 Network goes offline uh for whatever reason you can go to the L1 as your escape hatch and your assets uh should be F there obviously there are a lot of other intricacies that go into that such as where are the assets um where are the assets issued on uh where they where where they kind of began like did they begin at Layer Two or layer one

can they be mapped you know what assets are they obviously centralized stable coins can easily just be replaced because they're just IUS for example if there's like 10 billion usdc on a L2 that L2 goes offline well it's not like everyone loses their 10,000 USD sorry not everyone loses their usdc essentially what Circle would do is be like okay well that usdc is now invalid we're going to redistribute um the usdc to all of the um accounts that owned it because it's it's the same ethereum address across the L1 and the L2 and you'll have your usdc on on L1 essentially and yes you probably going to pay more fees but you don't lose everything because that's a centralized asset whereas with eth it's a different story if there is no escape hatch your eth is is essentially or can essentially

be locked in that um in that bridge that you basically put your eth into on L1 to go to L2 and then no one's giving you your eth back because eth is issued on the ethereum L1 it's not an IOU eth is a is a native asset it's not like there's something backing that eth in a um in a bank account right in the real world eth is settled ultimately settled on the ethereum network and and only exists on there on layer one so the same is true for like any chain that you bridge to if that bridge gets frozen for whatever reason you're never getting that eth back because that IOU that you have on the bridge two chain is essentially worthless because there's nothing backing it right so got to be careful with this a lot of intricacies but moving towards a world where we can have

light clients in phones and anyone around the world wherever you are can verify the chain without having to download a full node is the Holy Growl and it's not just the Holy Growl for verification purpose purposes and for making sure that you're not getting screwed over it's the holy grail for scalability of L1 as well because you you can imagine a world where well if you get the same guarantees and you don't need to um you don't essentially need to download a full node you can essentially make full node requirements higher and higher so you can raise the gas limit and you can scale the L1 more so this is the ideal world we want to be in and that's why this is so exciting as well is that if we get to this world where we have this client verification we essentially get to scale the L1 a lot

from here like I'm talking orders of magnitude guys which is super exciting of course and and but we get to do that without losing the properties of the L1 the decentralization the credible neutrality sensorship resistance so on and so forth right so that's that's super exciting there but enough on that you can go read more if you want to I'll link that tweet in the YouTube description below for you to do so all right so vitalic has been putting out a bunch of blog posts recently about the various ethereum road map stages that you all know as the merge The Surge The Scourge The Verge and The Purge now uh you've you've probably heard of these a million times before there's no need for me to go through each of them but suale here actually uh did a tldd tweet on vitalik's blog post which I highly

recommend giving a read so Bal did a blog post for each of these things as you guys have probably seen but what suale has done is just put together a few points about what uh each kind of I guess like phase or what like each part of the road map actually aims to do which is super useful because you can just basically bookmark this tweet and if any anyone kind of asks you hey like when are we going to scale the L1 or when are we doing kind of quantum stuff for the L1 of ethereum or what are we doing about like State expiry or what what are we doing about like full node sizes stuff like that like the very techy stuff but you can just refer back to this this tldr from suale and then you can go actually get the blog post

out as well and send that to whoever's asking you or just for your own I guess knowledge base as well there so you can go give this a a read I'll link this in the YouTube description below but I thought it was really really great I do want to just point out one thing here is that um I think uh people still get confused that they think this is kind of a a sequential thing where like the merge happens first then the surge happens then the scourge no all of this is being built in parallel because of the fact that each road map section has different eips going live at different times so it's all basically happening in parallel it's not like we're just doing the merge related eips first then the surge then the scourge and for example the uh one of the eips that's part of

the surge is is blobs right and scaling up uh blobs so we delivered that but then the merge uh we've still got other things to to essentially go with that such as um single slot finality and potentially orbit single slot finality uh and potentially like uh staking related issuance reductions and and and sort of things like that there and uh and and and faster block times right so as I said these things happen in parallel just wanted to make that clear for people but you can go give this a read I'll um I'll link it in the YouTube description below for you to do so all right so speaking of the gas limits and what I mentioned before about kind of being able to raise that in scale L1 um Tomas from here from the nether mine team put out a very simple

tweet where he said I support doubling the ethereum main net gas Target now I quote tweeted this and I said historically I've been against upping the gas limit because I don't feel like it will have a material impact on L1 scalability and we already have l2s a lot of things have changed over the last few months that have convinced me that we should increase the gas Target SL limit even if it doesn't materially impact L1 scalability now you guys know that I felt very strongly about this I think like I don't know how long ago it was now but it was a few months ago that um I don't think that raising the gas limit actually would uh materially impact L1 scalability I still don't think it would to be honest uh but that's not the reason why I'm in favor of it now uh or at least that's not the

main reason the reason I'm I'm in favor of it is more I guess like on the social side of things and the the main reason is that by by doubling the gas limit or like increasing the gas limit essentially what we do is instead of talking about in the future sometime you know raising the gas limit or scaling up L1 we essentially socially commit to doing it and we basically say okay well here's the social commitment but then here's us actually raising the gas limit to prove that social commitment because now we're just socially committing right we're just saying okay we're going to do it well cool when and then we say oh well you know when this this and this happens it's like that's all well and good but what's more powerful than just saying it like it's not like No One

Believes us but what's powerful uh what's more powerful than just saying it is actually doing it to show that we're committed to doing it and you don't have to do it in a big way you don't have to double it like I'm not going to say that we should double it from here but like we could do like a 10% incremental increase then another 10% then another 10% and that could show that we have a commitment to scaling not just the l2s but the L1 because scaling up the L1 actually scales the l2s as well not just with blobs we scaling up the gas limit because that gives l1's better uh sorry gives the l2s uh better ux and potentially cheaper fees for things like posting proofs down and stuff like that right but another big reason why it's uh potentially okay to do this now is

because we've had blobs live on the network for 6 months now right and the Network's been chugging along just fine we have a better understanding of how the network does with a bunch more load put on it we don't need to essentially have this big unknown over our heads of like how blobs are going to be utilized what that's going to look like what the bandwidth is going to look like on that we know that now and we're Gathering more data as time goes on so we have more hard data to work with rather than just like stabbing in the dark but in saying that we're also doing a lot of work to reduce bandwidth consumption too like that's a big thing for the for um the gas limit but as well as blobs is bandwidth consumption because as you guys know there's been a lot of

discussion recently about the fact that we actually do need to Define some I guess minimum uh bandwidth requirement for solo stakers for people running full nodes at home because right now I mean there's not really any high definition of this and I discussed this on one of the previous refills there's essentially well what's the lowest kind of uh I guess like powered uh node on the network like who's got the least bandwidth on the network um and it's particularly upload bandwidth and that becomes our flaw I don't think that should be the flaw because essentially you're basically letting like a handful of people dictate the whole network in that in that sense and I'm not going to say they're dictating it like on purpose or anything but what you're doing is

it's just an arbitrary thing you're just like looking at them and being like Oh well I don't want to kick them off the network which we shouldn't want to do this but at the same time there is is like a hard kind of discussion that needs to be had around having a minimum requirement here in order to keep scaling up the network but in order to I guess like have an understanding around the fact that you know we we we get that um it's hard for people to get bandwidth get more bandwidth if it's just not available to them because it's not like Hardware you can't just go outad and buy it you have to rely on um on usually your government to to kind of put in the infrastructure like here in Australia there are suburbs that have fiber right to their house and then there's a suburb

the next kind of suburb over like a 5minute drive not even that has Copper Still to to their house right so the disparity and the I guess inequality when it comes to fiber optic connections and good internet generally even in First World countries is huge so I'm not going to say that that's not an issue and that's not something that we have to take into consideration but we just can't go on like this I don't think we can't just go on and be and keep saying to ourselves that's that's the flaw no we have to define a flaw in megabits per second for upload bandwidth specifically and then we can work from there I I really don't think we should be doing it the way we're doing it right now I think it's a big mistake and I think it holds us back as as a network and as a

community but on top of that as well and the reason why I'm also in favor of a gas limit increase is because the clients have gotten a lot better and they've gotten a lot more efficient like all of them have gotten so much better and more more efficient over time not just with their bandwidth usage but just with their General stability and how they handle different things on the on the network how they handle um sinking to the network how they handle uh basically managing um storage space and managing a B obviously is the big one there so that to me is a perfect reason or another good reason why uh the gas limit increase is actually Justified here and as I said like this is Tomas from nether mind someone actually working on a client who said this so when the client teams are saying this um

not just one person obviously you want like the majority of them to be saying this I think that it's pretty safe to say that they're confident in what they've kind of built you on and they're confident that raising the gas limit is not going to result in any kind of I guess like unintended or negative consequences uh for the Network here um now also what's really cool about raising the gas limit is that it's a very easy thing to do even though we have to consider everything that I just said in terms of actually doing it it's super easy the validators just up um just essentially vote up the gas limit themselves and you say okay well the gas limit is currently set to this I'm going to manually change my um my parameter in my config file and I'm going to say I want the gas limit to be40 million or 50

million or whatever whatever you want it to be and then the whole network can slowly do that and get up there right traditionally it's been done with the I guess like soft blessing of the core devs who are saying okay you guys doing this isn't going to destroy the network which is which is pretty good right um but it doesn't require hard Fork that's that's the really cool thing about this because as you guys know hard Forks are pretty much like once a year at this point so if we had to wait for a hard Fork to increase the gas limit we'd have to wait each year and it would not it would not be very obviously not very very fast it would just be way too slow but at the same time we've actually gone longer than that since the last one I think the the last gas limit increase

was like 2 or 3 years ago so again like we're Justified again in increasing it because it's been so long Hardware's obviously gotten better um bandwidth have gotten better uh clients have gotten better I understand that there are some people on the network that cannot get access to better upload bandwidth and we should make sure that we don't negatively affect them as much as possible but as I said before there needs to be a line drawn here they can't just be a put our finger up in the air and just like get a feeling for what uh what we need to do here so that's my U my general take on that now there's also a tweet here from uh vitalic that talks about uh other things we can do you know not just increasing the gas limit but like also the fact that we can reduce

the gas costs of different evm upcodes or pretty much every evm up code that's currently in the 2 to 5 range to one and in the 6 to2 range to two so that is a pretty huge uh boost there as well uh this requires a hard Fork of course uh cut the gas gas cost of log by Forex cut the gas cost of pre pre compiles except the ones that want to retire so we can probably get a 1.5 TPS uh increase without worsening any critical worst case numbers such as Co data site and size and IO um but as I said this all requires a hard Fork so like it's not something that's going to happen just because people want it to happen it needs to go through the governance process needs to go into the network um but it seems like that is actually being

discussed at the core Dev level as well so cool to see that there but yeah that's why essentially in nutshell why I'm now in favor of increasing the gas limit I don't think we should like double it any like now like I don't think every validator should right now just go and double their um gas limit in their config that would be Reckless but I think we can gradually increase it there was actually an effort and this is the last time I spoke about this was an effort called pump the gas and I think their website's still live so pump theeg gas.org and you can actually see how this works in practice they didn't want to double the gas limit they essentially wanted to increase it from 30 million to 40 million which is like a what a 33% increase um and then essentially all you

need to do as you can see here is in your validator um clients um and on your execution client you essentially increase your gas limit so you go from 30 million to 40 million you put the number in there and they actually have the the kind of um the the the the um the lines here for you to copy paste they've also got a validat checker as well um and then it just increases as more people uh as more people kind of increase their their limit here as well uh you can go check this out it's still pretty relevant to today and I think this would be the better way to do it going in like maybe 10 million kind of increments here like 30 to 40 40 to 50 50 to 60 rather than like doubling it straight away and I think you know Tomas

and other cevs would agree with this it's a much better way to do it rather than just like yellowing and going double and then over time we obviously can increase it even more and then once we have upgrades uh like um The Verge for example and we have other ways of um and then we have like better light clients we have proper light client verification in the network then we can increase it even more and there's other things way down the line like snacker fying the base layer and stuff like that too so essentially uh we should be doing a moderate gas limit here so maybe I'll be pushing for it more you might see me pushing for it more publicly because I obviously run validators and full nodes and all that so I might change mine and then just push it for it publicly as

well but I want to see more cevs Chim in on this I want to see this discussed a bit more before I do that cuz I don't want to be Reckless with it of course but it seems like it's closer than it has ever been to be honest and I think more people are on board with it now that we're have a stable network with blobs and we have a lot of um uh improvements coming on B on the bandwidth side and the clients have gotten a lot better over time as well all right so Rocka pool has a massive upgrade that went live today called satin zero now jaspar has the thread you need to read on this which I'll link in the YouTube description below it is 42 tweets so it is not a short thread but essentially it will give you a tldd on not just Saturn zero

but like everything that's happening with rocket pool so he's calling this rocket pool reborn which is a four-step process to Rocket pool rocket pool 2.0 so constellation L2 already went live I spoke about this last week this is XR e which is the first full yield LST Saturn zero um which is eth only bonds uh that uh essentially went live uh today so you can see this here in this tweet from from jaspar Saturn 1 uh which is Leb fours so basically four eth mini Pools Plus Direct Value capture and a redesign and Saturn 2 which is sublinear bonding down to 1.58 plus an RPL buy and burn scheme now of course you can go read his thread for full explanation about all of this I'm not going to try and T it

because of the fact that you need to read the thread and I don't want to spoil the thread for you there um but yeah as I said like sattin zero went live here which is a huge upgrade because you can now stake with just eight e you don't need RPL anymore that was probably the biggest blocker to Rocka pool's growth over the last however many I guess months maybe even years at this point that it's been it has been I think the number one complaint from node operators that you needed RPL in order to spin up a mini pool uh now you don't which is obviously massive because it means that now more people can get involved with staking with setting up nodes as rocker pool node operator because they don't have to go out and buy this other token they can just bring their e which is I guess the

entire purpose of this upgrade right just making it super easy make uh to scale up the rocker pool uh ecosystem The Rocker poool node operator ecosystem here uh and remove any potential blockers which is really really great to see so I've already got a bunch of U mini pools up and running as you guys know I have a bunch of um staked on them but unfortunately like the RPL price went down so much against eth that I'm like severely under collateralized but the nice thing is is that now if I want to spin up more mini pools I don't need any more RPL so I can just leave what I have there and then just bring eth which I may just do very shortly actually I do have some e that's just lying there not staked right now and I was kind of thinking about what to

do with it and then uh I I think that this might be something that I do in the near future spin up a bit some some more mini pools here because I definitely want uh obviously my my eth to be staked and I want to keep supporting the Rocka pool effort so as I said you can go give Jasper's tweet thread a read on everything got to do with Rocka pool being reborn not just this satin zero upgrade I'll link it in the YouTube description below for you to do so all right a big announcement out of Kraken over the last week so they have introduced their layer 2 called ink now of course this layer 2 is built on ethereum it has been a long time coming I remember them teasing this quite a while ago and it's no surprise that they're building a layer too considering

the success That Bass has had because Kraken is I would say like the number two us-based crypto exchange uh in terms of uh in terms of like market share in the US here uh and the fact that they're doing their own L2 is is a no-brainer I think now there are a bunch of details about this on their website incon chain.com I actually really love the name honestly Inc like it's such a cool name because as you can see from The Branding like it lends itself to some really cool and unique branding the purple is like the Kraken purple so essentially it fits in with their overall branding scheme anyway um and yeah you can see like it just it just looks cool like I love purple purple's actually my favorite color purple and orange really I mean it's funny but behind me is not really purple and

orange but in front of me behind my U my setup here my um my monitor and everything there's orange there there's purple there like I just love it it's just such a nice color scheme and they've actually gone uh towards more the more Deen side with Inc as well like they're really trying to appeal to that more speculative side of crypto those crypto natives who really want to just get on do stuff on chain and and do it fast and not have to pay high fees so really really cool to see this here now their test Nets going live in less than two weeks and they are built of course on the super chain I say of course because the op stack is just dominating right now now Yano from blockworks did a podcast with the Inc founder uh which you can go listen to them uh to that

podcast I think it's out soon on Empire on the um the Empire podcast but he T diard essentially what um what Kraken thinking is around this new L2 so there was an 8 months from decision to launch of of Inc so I think that's when they kind of first started teasing it they're using ethereum as their data availability layer they obviously also looked at Celestia and igen but they chose ethereum which is really cool because it just shows again that ethereum da has a premium on it that's for sure and people want to use ethereum da uh they're going to be exploring L3 da for more modular not just ethereum so they might just build l3s on um uh sorry might build their La uh da with L3 uh could have more than one L2 in the

distant future not anytime soon I don't know if that'll materialize it doesn't really make sense to have more than one because it kind of shifts your focus maybe that was just an off-hand comment that was made on the podcast uh thought about building inhouse but used a rollup as a service provider instead which is gelato uh the goal is to get centralized order books on chain which is a pretty pretty big goal I think and and and pretty doable with the current L2 um infrastructure that we have um the wallet is the portal uh they thought about forking the op stack but are leveraging the interoperability of the super chain which makes more sense which actually if you re not read you don't have to read between the lines here if you're paying attention that means that Inc and bass will be able to interoperate with each other that's cool

like that is really cool like I can't wait for that to be a reality um they didn't share Revenue uh split information but that will be public soon we'll lean into Dev tooling ahead of mayet there's a thousand plus people at Kraken that are in the ink slack Channel this is obviously something that's exciting them like it's exciting me uh they hundreds of l2s are launching in the next several months so that's more of I guess like not just about Inc but just the general Trend that we're seeing right now uh it's very obvious that every app will have its own chain I completely agree with that honestly um and those chains will be within the respective super chains whether that's on op stack or somewhere else uh they launched uh with with base support which is very cool um they're going to uh launch a token for Inc if it wasn't for

The Regulators we know that bass would do the same thing like if it wasn't for the Regulators if we had like an SEC that wasn't run by Gary gendler uh Bas would have probably already had a token to be honest and Inc would definitely have a token as well because a token gives you just so much to work with right um the board members and investors like the idea doesn't think it will hurt their future IPO prospects and an unofficial vision is to have every PRD at Kraken have an onchain component to it so essentially every product at Kraken have an onchain component to it so I guess this is Kraken going head-to-head with bass honestly like that's what the comparison is that's what the comp is here and but as I said like bass and Inc are going to be interoperable with each other they're

going to be able to talk to each other there is not going to be a w Gard here so really it's going to be interesting to see like what each of these businesses do to drive customers to their L2 obviously coinbase is further ahead because bass has been live for a while they already have more Downstream products like their coinbase wallet but I think Kraken stands a real chance to compete here especially if they appeal uh from the from the very start to the more dgen crowd because that's uh oh guess like the more DJ onchain native crowd U and especially leverage their unique branding here with Inc in order to in in order to um get people on chain so just super exciting guys and I think what I agree with most on these podcast notes is that that the fact that there's going to be hundreds of l2s launching in

the next several months and that every app will have its own chain because launching a chain has become as easy as kind of just deploying a smart contract at this point and if you can launch a chain and the infrastructure costs come down because it's not just launching the chain it's also paying for like an ether scan implementation of your chain it's also paying RPC providers all that sorts of stuff right but if all of that collapses down to I wouldn't say zero but like very very low and it becomes so cheap to launch your own chain and then you can internalize a lot of your revenues and you can get the security of ethereum you can leverage ethereum for your consensus your security Your da everything like that like why wouldn't you do it and that's the vision right that really is the ethereum vision and I

think that's what we're going to see and that really is the bull case for the module of future that is the bull case for ethereum is that you're going to have all these chains that are just going to default launch on ethereum because where else are you going to go like where else is as reliable and as secure as ethereum L1 where which other L1 is actually being built for this there are some out there but they're very small I think tesos is being built to be L2 friendly but they're more focused on like the enshrined rollups which is a noble Pursuit but I think in Shrine rollups are can be limited in several ways U but in terms of like building for l2s specifically then there's nowhere else really it's just ethereum now of course you can build these on other networks because the

other networks are permissionless as well if they allow for it but if they're not specialized for it if they're not focused on that if the culture around their their chain is not built for that then I don't think they're going to get much tracks in there I don't think they're going to get much market share there whereas ethereum is specifically built for this and we are going to keep pushing the frontier here on this with blobs with other improvements to L1 in order to scale up the l2s uh and it really is a no-brainer because as I said before as italic said ethereum has never gone offline ethereum has been online the whole time it is incredibly secure it has1 billion doll worth of Economic Security in each state behind it it has tens of thousands of nodes distributed across the planet it is just so secure

so reliable right now that there's nowhere else to launch so that is really kind of a really I guess like big bull case for ethereum uh going forward there all right so Peter here who is uh doing marketing at Circle the issuers of usdc has been putting out a lot of these tweets lately about the fact that uh bass has been doing record numbers when it comes to usdc stablecoin transfers now you can see in this chart what bass looks like uh this is on a uh day so this is October 26th Bas processed $8.1 billion worth of uh usdc stable coin transfers here which is more than any other chain you can see here all the other chains listed as well it's more than any other chain any other L1 or L2

now you'll remember back to when I said that Bas had a CO Circle and coinbase had a huge opportunity with Bas to become like the de facto usdc payments layer and it was a no-brainer for them to do that considering that they they're the ones heavily invested in usdc and also Bas and well that's exactly what they've done here so this is no surprise to me that this has happened because essentially a lot of usdc transactions are free or near free on the network this transfer volume reflects that uh and I actually DMD Peter and he's going to look into this for me about uh what is actually happening with this like who's using this like why is there so much usdc stable coin transfers happening on base right now because whenever I see stuff like this especially on like really cheap chains I

take it with a grain of salt because as you guys know i' I've talked about this before if a chain is like basically free to use there's nothing stopping people from just like wash trading or Bots from like faking the metrics now I'm not accusing coinbase or Circle or anyone involved with them as of doing this but like someone else could be doing it or there could be some other reason for this activity that we just don't know yet so I like the headline number don't get me wrong it's great and it's great to see this growth but what I really want to see is like a deeper analysis on this see what's actually happening here is there real people using this for like purchases people using it within defi what are people using this for because it's like the headline number itself is kind of cool but as I said like it's not

going to tell us much right now so yeah I'm I'm looking forward to hearing back there and I'll let you guys know um how that goes there now speaking of Bas they announced something huge over the I guess like weekend or I guess no this was a few days ago now so fault proofs or fraud proofs are coming to base mayet on October 30th which is in 2 days from now this means anyone can monitor and permissionless challenge invalid withdrawals removing the need for a trusted third party the bass team has been collaborating closely with optimism to bring fault proofs to Bas and ensure a safe upgrade this I believe brings Bas over to stage one on L2 beats so if you go to L2 beat.com today and I'll bring up the website for you guys to see here you can see that Bas is at stage zero

still even though it is the number two L2 and arbitrum one is at stage one it's like sandwich between two stage ones op M it is stage one because it has fault proofs but once uh base implements them I believe they go to stage one I believe they do uh which is a pretty big upgrade because everyone keeps telling me that bass is never going to decentralize and yet they're moving closer to decentralization by the day and I just can't wait until we have uh arbitrum one uh and Bas especially cuz they're one and two at stage two cuz then that could be the day we say well look hey the l2s are decentralized there goes that fud I'm sure there's going to be some other fud but like there goes that fud we can we can do away with that uh and I obviously want to see the other l2s move

towards stage one and stage two as well but the having the biggest ones there just sets an example for the rest of the ecosystem which I think is very important so yeah looking forward to October 30th year and for base to reach stage one of the rollup Journey all right finally here this is I mentioned before uh Devcon so Devcon is coming up very very soon guys it is in like a couple of weeks I'll be leaving here to go on the 9th of November so from the 9th of November till wait the 9th is a Saturday so I guess like from the 8th of November until the let me have a look here till the 18th of November there will be no refuel so essentially 10 days without refs because I will be at Devcon now Devcon is

shaping up to be the biggest I guess like one of the biggest ethereum conferences ever definitely the biggest Devcon ever so 12,000 plus people are expected to show up that's an enormous amount of people guys I think the only other conference that had that many people was Dev uh eth Denver so uh yeah biggest Devcon yet 900 plus volunteers have signed up 300 plus volunteers have been selected and the venue is twice the size of the venue in bogatar now I didn't go to bogatar but I heard it was a really great time I heard it was a nice venue and the venue in Bangkok I believe is relatively new so it should be a worldclass venue and I'm very much looking forward to going because this will be my only major ethereum Conference of the Year very much looking forward to meeting as many of you as

possible that I haven't met before and just catching up with old friends as well I will be busy like my calendar is filling up very very quickly but I will make it a point to be at the actual conference like when the conference days are on and then of course there is the bankless summit on the 16th of of November uh which is just the day after the Devcon finishes and that's where I'll be doing my my talk at as well but I'll be there pretty much like the whole day so I'm I'm hoping to see a lot of you guys there as well I believe there are still some tickets for sale you can probably find a link to that if you just Google bankless Summit uh but yeah just wanted to give you guys a heads up that that is coming up shortly and I'll be

out um of action on the refuel uh for that period of time but hey if you find me at at Devcon uh you're probably just going to get like a refill because you can ask me as many questions as you want and I'll just answer them that's what people usually do like I meet up with people we have a little bit of a chat and then they just start asking me ethereum questions and I'm like yes give me more e questions I want to answer them I want to teach you guys like that's just what I love doing like it's kind of funny how my my my calling in life seems to be an educator doesn't matter what it is like I I I don't just know stuff about ethereum I know stuff about a lot of other things um and whenever people ask me questions of

stuff that I know about I get like super excited having being able to answer them and being able to like watch their faces as they as they basically understand what I'm saying and and learn from me but obviously I know a lot about ethereum so that's where kind of my my home base is so yeah don't be shy to to come up to me ask me questions about anything you want and just have a chat very much looking forward to all of you uh there but anyway I think on that though 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 Discord Channel and I'll catch you all uh next time